Pamela Joyce B. Locsin                                                                              January 22, 2008

ITETHICS OOA/ 10561285/ BS-IM                                                            Mr. Paul Pajo

BUSINESS ETHICS

By: Elizabeth P. Tierney

Chapter 1: WHY CREATE AN ETHICAL WORKING ENVIRONMENT

            Establish Ethical Standards

            With Yourself: The importance of ethics in the office is not about adding sections or language to handbooks. Increasing awareness about creating an ethical environment begins with you, the manager.

            The values of the manager will reflect on what kind of values will the organization have.

            With Time: Ethics is an essential to the business, the manager need to devote more time to think about it. Finding that time isn’t easy.

            With Reflection: Devoting time to thinking rather than to doing is an important element on the manager’s role.

Chapter 2: WHY DO PEOPLE MAKE UNETHICAL DECISIONS?

            We Are Human

            As a young individual, we have our standards set for us by people we respect. Each one of us is different; we have our own complex combination of fears and doubts, of hopes and dreams.

            Motivation theories help us to understand ourselves

            These theories are not absolute laws; it provides us information about why we do what we do or what percentage of our behavior is based on heredity. One example of these theories is Abraham Maslow’s hierarchy of needs. Which in the lowest part of the hierarchy is Physiological needs then Security then Social then Self- Esteem then Self-Actualization.

Chapter 3: WHAT DOES UNETHICAL BEHAVIOUR COST?

            The costs of being unethical in business are significant

            Loss of Trust

            Successful Business relationships are built on the conviction that each party believes that what the other person is saying is true. If there is no trust between two people then the project won’t be successful. It means no money for the organization.

            Loss of one’s good name

            Another cost associated with unethical behaviors or practices resulting from loss of trust. Unhappy consumers tell more people about the bad service rather than the good service. In that way, a fine reputation can be replaced with a very bad one.