LGS 200 Chapter Notes - Chapter 4: Jeremy Bentham, Profit Maximization, John Stuart Mill
21 Mar 2017
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Document Summary
Ethics- the study of what constitutes right or wrong behavior. Business ethics- the decisions businesses make or have to make and whether those decisions are right or wrong. Triple bottom line- a corporation"s profits, its impact on people, and its impact on the planet. When making decisions, a business should evaluate: the legal implications of each decision, the public relations impact, the safety risks for consumers and employees, the financial implications. Long run profit maximization vs. short long profit maximization. Moral minimum- compliance with the law, if people and entities merely comply with the law, they are acting at the lowest ethical level of society will tolerate. Most companies attempt to link ethics and law through the creation of internal codes of ethics. (codes of conduct) Ethics can be a difficult subject for corporate officers to understand. It can change over time and highly subjective. Ethics is based more on judgment than research.
