Ethics Issues Shawnez M. Mckenzie MGT/216 August 12, 2010 Carrie Baird Ethics Issues The nature of business ethics is described as, what is fair, and just. According to Jentz, Miller, and Cross (2002) states, business ethics concentrates on the beliefs, which is right and wrong actions in the business world and the philosophy of morality and how moral principles are consequentially applied to a person’s daily life in the business or social environment. Although some issues seem unethical, it is not necessarily illegal (Rainer & Turban, 2002, p. 2) Society states the terms ethical and moral are not the same and used interchangeably. Here are three specific examples of ethical issues within today’s businesses. Bribery, embezzlement and deceptive advertising can be defined and discussed in this essay. Bribery is considered offenses related to the improper influencing of people in position of trust. Bribery is a white-collar crime, intentions must be clear and verified, and the crime of bribery must occur when the bribe is offered. Bribery can affect the local legal system, which can leave the citizens in doubt of who is trustworthy in maintain the laws.
An example of bribery would be to influence a public official to act in a manner that services a particular private interest. Bribery affects communities with dishonesty and mistrust of authority in any business or organization. Second, is embezzlement it is the act of stealing funds from a business or organization that was entrust to safeguard, and fraudulently mislead financial records. Embezzlement affects the community and people when a banking intuition is involved. According to Fridell (2009), two bank employees embezzled 1. 3 million dollars over the course of four years, by using hundreds of separated banking transaction.
The two women cost six victims their homes, savings and investments by pocketing the funds from the bank and going on lavished vacations. The act of embezzlement can financially affect the lives of others as well as the business. It could leave any company with shame and humiliation, if proper protocol or policy was not enforced or in place to avoid such a crime. However, the act of betrayal within any business, the organization needs to rebuild the trust of the community. Last, is deceptive advertising, is considered when businesses are misleading or making false statements regarding a product to mislead consumer.
The purpose of the advertising are hopes that advertising would convince consumers to purchase their products. The Federal Trade Commission states, advertising must be truthful and non-misleading, advertiser must be able to support their claims; and advertisement cannot be dishonest with consumers. Under the FTC Deception Policy Statement, an ad is deceptive if it contains a statement or leave out information that is; likely to misinform consumers acting convincingly under the circumstances and “material” that is vital to a consumer’s decision to purchase or use products.
Deceptive advertising as a personal consumer can be overwhelming, hoping that ethically products and services are genuine and the business are trustworthy, which can affect how consumers and the community view unethical issues. In conclusion, business ethics focuses on what makes up the right and wrong theory in the business and how ethical principles and morals are useful by business people. More important, ethical or moral standards guide our behavior, as parents, children, or students who apply to our everyday lives in the business or social profession.
As current members of the business world, we have a moral and business obligation to be ethical in how we deal with others, no matter in what capacity. References Federal Trade Commission, Inc. (2010) Consumer Protection. Retrieved from http://www. ftc. gov. gov Gaylord, J. , Miller, R. , Cross, B. F. (2002). West’s Business Law. USA. Rainer, K. , & Turban, E. (2008). Introduction to Information Systems. Hoboken, NJ: John Wiley & Sons. Fridell, Z. (2009). Effects of embezzlement still felt as families, bank rebuild. Steamboat Today. Retrieved from http://www. steamboatpilot. com