BUSINESS ETHICS &
STANDARD OPERATING
PROCEDURE
Catalyst that causes managers to take socially responsible
actions
Critical component of business leadership
Ability and willingness to reflect on values in the course
of the organization’s decision-making process, to
determine how values and decisions affect the various
stakeholder groups, and to establish how managers can.
Use these precepts in day-to-day company operations
Fairness and justice within the confines of management
practices Sound Management practices
BUSINESS ETHICS AREAS
1. Productivity
2. Positively Affecting Outside Stakeholders
3. Minimizing Regulation From Government Agencies
PRODUCTIVITY
The employees of a corporation are stakeholders
who are affected by management practices. When
management considers ethics in its actions toward
stakeholders, employees can be positively affected.
Employee advisory programs (EAPs)
POSITIVELY AFFECTING OUTSIDE
STAKEHOLDERS
Suppliers and customers
E.g. Manufacturer of baby products carefully guards
its public image as a company that puts customer
health and well-being ahead of corporate profits
MINIMIZING REGULATION FROM
GOVERNMENT AGENCIES
Where companies are believed to be acting
unethically, the public is more likely to put pressure
on legislators and other government officials to
regulate those businesses or to enforce existing
regulations
1990 hearings were held on the rise in gasoline and
home heating oil prices following Iraq’s invasion of
Kuwait, in part due to the public perception that oil
companies were not behaving ethically
CODE OF ETHICS
Formal statement that acts as a guide for how
people within a particular organization should act
and make decisions in an ethical fashion
Ninety percent of the Fortune 500 firms, and almost
50 percent of all other firms, have ethical codes
Effective and efficient means of encouraging ethical
practices within organizations (Ross, 1988)
Commonly address such issues as conflict of
interest, behavior toward competitors, privacy of
information, gift giving, and making political
contributions
ETHICAL STANDARDS
• Two practices that commonly inspire unethical
behavior in organizations
1. Giving unusually high rewards for good performance
2. Unusually severe punishments for poor performance
CREATING AN ETHICAL WORKPLACE
Creating, distributing, and continually improving a
company’s code of ethics is one usual step
managers can take to establish an ethical
workplace
Creating a special office or department with the
responsibility of ensuring ethical practices within
the organization
The Ethics office is a tangible sign to all employees
that management is serious about encouraging
ethical practices within the company
Providing the workforce with appropriate training
ETHICAL STANDARDS
1. The Golden Rule: Act in a way you would want
others to act toward you.
2. The utilitarian principle: Act in a way that results
in the greatest good for the greatest number.
3. Kant’s categorical imperative: Act in such a way
that the action taken under the circumstances could
be a universal law, or rule, of behavior.
4. The professional ethic: Take actions that would be
viewed as proper by a disinterested panel of
professional peers.
5. The TV test: Always ask, “Would I feel
comfortable explaining to a national TV audience
why I took this action?”
6. The legal test: Ask whether the proposed action or
decision is legal. Established laws are generally
considered minimum standards for ethics.
7. The four-way test: Ask whether you can answer
“yes” to the following questions as they relate to the
decision: Is the decision truthful? Is it fair to all
concerned? Will it build goodwill and better
friendships? Will it be beneficial to all concerned?
CODE OF ETHICS FOR PHARMACISTS
A pharmacist respects the covenantal relationship
between the patient and pharmacist.
A pharmacist promotes the good of every patient in
a caring. Compassionate, and confidential manner.
A pharmacist respects the autonomy and dignity of
each patient.
A pharmacist acts with honesty and integrity in
professional relationships.
A pharmacist maintains professional competence.
A pharmacist respects the values and abilities of
colleagues and other health professionals.
