Chapter 2

Focuses on what constitutes ethical behavior in the world of business.

Why is studying business ethics important?

Answer explanation

An understanding of business ethics is important to the long-run viability of a business, the well-being of its officers and directors, and the welfare of its employees, and costumers.

To maximize profits and indicate good corporate citizenship, businesses should evaluate a decision's

• Legal implications

• Public relations impact

• Safety risks for consumers and employees

• Financial implications

• All of the above

Involves incorporating a commitment to good citizenship, with a commitment to making ethical decisions, improving sociaty and minimazing environmental impact.

According to the principle that persons have rights (to life and liberty) a key factor in determining whether a business decision is ethical is how that decision affects the rights of others, including employees, consumers, suppliers, the community and society.

Focuses in the consequences of an action, not its nature or a set of moral values or religious beliefs.

An action is morally correct, or "right" , when it produces the greatest amount of good for the greatest number of individuals

Requires firms to set up confidential systems for employees to report suspected illegal or unethical financial practices