Emerging Business Ethics Issues
Recognizing an Ethical Issue
• Recognizing an ethical issue is difficult
• Is business a game?
• National Business Ethics Survey (NBES)
• Abusive or intimidating behavior
• Lying to various stakeholders
• Conflicts of interest
• Is business a war?
What do you see as some of
the causes of unethical behavior?
Specific Types of Observed Misconduct
Causes of Unethical Behavior
• Meeting overly aggressive financial or business objectives
• Meeting schedule pressures
• Helping the organization survive
• Rationalizing that others do it
• Resisting competitive threats
• Saving jobs
Issues That Affect Corporate Shareholder Value
Abusive and Intimidating Behavior
• What constitutes abusive or intimidating behavior?
• Bullying in the workplace
• Bullying between companies
• Lying by commission
• Lying by omission
• What constitutes bribery?
• Active bribery
• Passive bribery
• Facilitation payments
• Are some bribes acceptable?
• Trade secrets
– System hacking
– Remote hacking
– Physical hacking
• Dumpster diving
• Phone eavesdropping
• Social engineering
• Password guessing
• Shoulder surfing
• Discrimination on the basis of race, color, religion, sex, marital status, sexual orientation, public assistance status, disability, age, national origin, or veteran status is illegal in the U.S.
• Discrimination on the basis of political opinions or affiliation with a union is defined as harassment.
• Equal Employment Opportunity Commission (EEOC)
• Age discrimination
• The Age Discrimination in Employment Act
• Affirmative action programs
– Efforts to recruit, hire, train and promote qualified individuals from groups that have traditionally been discriminated against based on race, gender, or other characteristics
• Title VII of the Civil Rights Act of 1964
• What constitutes sexual harassment?
• Hostile work environment
• Inappropriate relationships
To Avoid Sexual Misconduct You Need
• A statement of policy
• A definition of sexual harassment
• A non-retaliation policy
• Specific procedures for prevention
• Establish, enforce, and encourage
• Establish a reporting procedure
• Make sure that the company has timely reporting requirements to the proper authorities
Greatest Fraud Risk for Companies
• Environmental issues
– Kyoto protocol
– Water pollution
– Waste management
– Green revolution
• Intellectual property rights
– DMCA and DTDC Acts
• Privacy Issues
– Establishing policies governing the use of the Internet on company time
– Electronic monitoring
– Consumer privacy
Observed Frequency of Specific Misconduct by Employees