Business Ethics Notes from Daniel Terris’
Ethics at Work, 2005

Business ethics includes:

• The character of the CEO and other executive leaders (most important point)
• Rules of the industry
• Treatment of employees
• Social responsibility
• Awareness of the pitfalls of the profit motive
• Practices of both the individual and the company (154)

Questions to ask:

• Does the business engage in anti-competitive practices?
• Does it seek unfair advantage through immoral arrangements with suppliers or public officials?
• Does it adhere to the regulations of industry issued by federal and state government?
• Do its financial reporting processes adequately inform its investors? (33-34)

Incentives for a business to give attention to ethics:

• Improved public image
• Reciprocal good will of customers
• Long-term efficiencies from eliminating waste and fraud
• Promotions for employees
• More business
• Better employees who are attracted to the company’s reputation for integrity
• A sense of mission and meaning for the company (82)

Principles of business ethics undertaken by General Electric in 1986:

• To develop and adhere to codes of ethics
• To train employees in the codes
• To encourage internal reporting of violations
• To implement systems to monitor compliance
• To share “best practices” with competitors
• To be “accountable to the public”  (67)

A code that seeks to develop an “ethical culture” contains these principles:

• Honesty with colleagues, customers, shareholders, suppliers, the community
• Fulfillment of commitments
• Respect and appreciation for each member of the company
• Trust fostered through teamwork and open communication
• Responsibility for one’s actions and the company’s actions (includes reporting concerns and violations, seeking guidance)
• Citizenship (obeying laws of our country, countries we do business with, and our communities) (84-85)

Characteristics of a solid business ethics program:

• Breadth: reaches everyone
• Creativity: arouses interest, engages employees
• Internalization of values: empowers good decision making
• Strong endorsement from leadership: enables the program to thrive
• Continuous evaluation and improvement: builds on strengths, faces shortcomings (114-115)

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