Text6 Business Ethics and Etiquette

Ethics is the system of moral principles, rules of conduct, and morality of choices that individuals make.

Business ethics is the application of moral standards to business situations. Business ethics has become a matter of public concern.

All business people face ethical issues daily, and they stem from a variety of sources. Although some types of issues arise infrequently, others occur regularly. Let’s take a closer look at several ethical issues:

1. Fairness and Honesty. Fairness and honesty in business are two important ethical concerns. Besides obeying all laws and regulations, business people should refrain from deceiving, misrepresenting, or intimidating others.

2. Conflict of Interest. Conflict of interest results when a business person takes advantage of a situation for his or her own personal interest rather than for the employer’s or organization’s interest.

3. Communications. Business communications, especially advertising, can present ethical questions. False and misleading advertising is illegal and unethical, and it can infuriate customers.

But there is some difference between business ethics and etiquette. Etiquette means rules for formal relations or polite social behavior among people in a society or a profession. If you are a manager you should stick to the following rules in your everyday activities:

Don’t order, ask and be polite.

Remember that people work with you, not for you. They like to be treated as associates, not slaves.

Keep your promises, both important and less important promises.

Criticize, if you must, only in private—and do it objectively.

Never criticize anyone in public or in anger.

1. What is ethics?

2. What is business ethics?

3. What ethical issues do you know?

4. What is the difference between business ethics and etiquette?

5. What rules should a manager stick in his everyday activities?

6. Do some types of issues arise infrequently?

7. What advertising is illegal and unethical?

8. What is conflict of interest?

9. Has business ethics become a matter of public concern?

10. What are two important ethical concerns?