Business and Professional Ethics: Responsibilities and Dilemmas

Essentials of Business and Professional Ethics

1. Ethical Responsibilities of a Business

   • To the general public: Avoiding adverse effects on public health, the environment, and philanthropic efforts.
   • To customers: Ensuring informed choices, the right to be heard, and customer safety.
   • To the workforce: Providing a safe workplace, preventing harassment and discrimination, ensuring equal opportunity, and offering a chance for a quality life.
   • To investors: Practicing good accounting, and providing an accurate portrayal of the firm's financial resources and conditions.

Basis for Ethical Business Organizations

1. Ethical Awareness

   Implementing a code of conduct for all employees and managers.

2. Ethical Reasoning

   Providing ethics education for employees and managers.

3. Ethical Action

   Establishing structures to support ethics and resolve dilemmas.

4. Ethical Leadership

   Leaders' commitment to truthfulness, responsibility, admitting mistakes, and punishing wrongdoing.

Dilemmas in Business and Professional Ethics

What is a dilemma? The word originates from ancient Greek, likely from early realizations about human freedom. A dilemma is a choice between equally desirable alternatives or a perplexing situation necessitating a choice.

Types of Business/Professional Ethics Dilemmas

1. Conflict of Interest

   Dilemmas occur when personal gain opportunities conflict with group or social interests.

2. Honesty and Integrity

   Honesty is truthfulness; integrity is keeping promises and accepting responsibility. Dilemmas arise when benefits are obtained at the expense of these values.

3. Loyalty vs. Truth

   Dilemmas occur when organizational loyalty demands conflict with personal principles of honesty and integrity.

4. Whistle-blowing

   Dilemmas occur when disclosing illegal, immoral, or unethical practices conflicts with the self-interest of remaining silent.

Anthony Weston notes that both businesses and professions have ethical responsibilities, an idea tracing back to Aristotle. A professional's ethical responsibility is to what and to whom?