{"id":68,"date":"2026-02-05T19:07:00","date_gmt":"2026-02-05T19:07:00","guid":{"rendered":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/?post_type=chapter&#038;p=68"},"modified":"2026-08-17T22:18:02","modified_gmt":"2026-08-17T22:18:02","slug":"ch-13-ethics","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/chapter\/ch-13-ethics\/","title":{"rendered":"CH 13 &#8211; Ethics"},"content":{"raw":"<h1>INTRODUCTION<\/h1>\r\n[audio mp3=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/02\/acoust_Proj_4_25_2026-2026-04-26T14_48_38.mp3\"][\/audio]\r\n<h2>Doing the right thing .... even when it's hard<\/h2>\r\n<div class=\"textbox textbox--sidebar\">\r\n<p data-start=\"1495\" data-end=\"1580\">Every business decision has two questions:<\/p>\r\n\r\n<ol data-start=\"1581\" data-end=\"1663\">\r\n \t<li data-section-id=\"fwtjpp\" data-start=\"1581\" data-end=\"1599\">Can we do it?<\/li>\r\n \t<li data-section-id=\"tvml1m\" data-start=\"1600\" data-end=\"1663\">Should we do it?<\/li>\r\n<\/ol>\r\nThis chapter is about the second question.\r\n\r\n<\/div>\r\nWelcome to the most 'expensive' chapter in this course. While accounting teaches you how to count the money and marketing teaches you how to get the money, Ethics teaches you how to keep your reputation, your employees, and your freedom.\r\n<p class=\"indent hanging-indent\">Let\u2019s be honest. Most of you have already faced an ethical decision this week.<\/p>\r\n<p class=\"indent hanging-indent\">\u00a0 \u00a0 Do you share answers on a homework assignment?\r\nDo you split work evenly in a group project?\r\nDo you take credit for something you didn\u2019t fully do?<\/p>\r\nBusiness ethics is the same thing\u2026 just with higher stakes, more money, and more people affected.\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/14-1-wait-what-even-is-ethics\/\"><strong>Section 1: Wait, What Even <em>Is<\/em> Ethics?<\/strong><\/a>\r\n<ul>\r\n \t<li>Ethics vs. morals - they're not the same thing<\/li>\r\n \t<li>Why the definition gets murky<\/li>\r\n \t<li>When your personal morals clash with your workplace's ethical standards<\/li>\r\n<\/ul>\r\n<div align=\"center\"><\/div>\r\n<a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-2-ethics-vs-the-law-not-always-the-same-thing\/\"><strong>Section 2: Ethics vs. the Law - Not Always the Same Thing<\/strong><\/a>\r\n<ul>\r\n \t<li>Differences \/ similarities<\/li>\r\n \t<li>Laws update<\/li>\r\n<\/ul>\r\n&nbsp;\r\n\r\n<a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-3-real-dilemmas-real-consequences\/\"><strong>Section 3: Real Dilemmas, Real Consequences<\/strong><\/a>\r\n<ul>\r\n \t<li>What an ethical dilemma actually looks like at work<\/li>\r\n \t<li>The dangers of an \"it depends on the situation\" mindset<\/li>\r\n \t<li>The slippery slope of rationalizing small ethical violations<\/li>\r\n<\/ul>\r\n<div align=\"center\"><\/div>\r\n<a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-4-setting-the-tone\/\"><strong>Section 4: Setting the Tone: It Starts at the Top<\/strong><\/a>\r\n<ul>\r\n \t<li>How organizations shape employee decisions<\/li>\r\n \t<li>The \"tone at the top\" concept<\/li>\r\n \t<li>Why company culture and individual ethics are deeply linked<\/li>\r\n \t<li>Codes of conduct<\/li>\r\n<\/ul>\r\n<div align=\"center\"><\/div>\r\n<a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-5-business-and-society-the-bigger-picture\/\"><strong>Section 5: Business and Society: The Bigger Picture<\/strong><\/a>\r\n<ul>\r\n \t<li>Consumerism and the four basic consumer rights<\/li>\r\n \t<li>Social audits<\/li>\r\n \t<li>Who holds businesses accountable?<\/li>\r\n<\/ul>\r\n<div align=\"center\"><\/div>\r\n<a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-chapter-wrap-up\/\"><strong>Chapter Wrap-Up<\/strong><\/a>\r\n<ul>\r\n \t<li>Key takeaways in plain language<\/li>\r\n<\/ul>\r\n\r\n<hr \/>\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<header>\r\n<h1 class=\"entry-title\">13.1: Wait, What Even Is Ethics?<\/h1>\r\n<\/header>\r\n<div class=\"textbox\">\r\n\r\n<img src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/daraprim-300x200.png\" alt=\"decorative\" width=\"300\" height=\"200\" class=\"size-medium wp-image-831 alignright\" \/>\r\n\r\nIn 2015, a pharmaceutical executive named Martin Shkreli<span>\u00a0<\/span><a href=\"https:\/\/youtu.be\/rQXPen97wjQ\">made headlines<\/a><span>\u00a0<\/span>when his company raised the price of a life-saving drug called Daraprim overnight from $13.50 per pill to $750. That\u2019s a 5,000% increase. The drug had been around for over 60 years. Nothing changed about it. It didn\u2019t get better. It wasn\u2019t reformulated. The only thing that changed was who owned the patent.\r\n\r\nWas it legal?\r\n\r\n<em>Yes.<\/em>\r\n\r\nWas it ethical?\r\n\r\n<em>Most people would say absolutely not.<\/em>\r\n\r\n<\/div>\r\n&nbsp;\r\n\r\nThat gap between what you can do and what you should do is exactly what this section is about. Business ethics isn\u2019t just a feel-good subject or a box to check before you graduate. It shows up every day in real decisions, at every level of every organization. From a manager deciding whether to hire a friend, to a CEO choosing between profit and people\u2019s lives,<span class=\"pullquote-left\">ethics is everywhere.<\/span>\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n<img src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics4.png\" alt=\"ethical dilemma examples\" width=\"733\" height=\"412\" class=\"aligncenter wp-image-842 size-full\" \/>\r\n\r\nAnd here\u2019s the thing: most people don\u2019t set out to be unethical. They make small compromises, tell themselves \u201ceveryone does it,\u201d or follow the rules while ignoring the spirit behind them. That\u2019s how scandals are born: one rationalization at a time.\r\n\r\nSo, how do you navigate the messy gray areas you\u2019ll face in your own career?\r\n\r\n<img src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics2.png\" alt=\"Defining Ethics\" width=\"561\" height=\"316\" class=\"alignnone wp-image-840 size-full\" \/>\r\n<h5><strong>Wait, Still Confused... What Even Is Ethics?<\/strong><\/h5>\r\nLet\u2019s start with the basics; except they\u2019re not as basic as they seem. Most people use the words \u201cethics\u201d and \u201cmorals\u201d like they mean the same thing. They\u2019re close, but there\u2019s an important difference, and understanding that difference will save you a lot of confusion down the road.\r\n<h2><strong>Morals vs. Ethics<\/strong><\/h2>\r\n<ul>\r\n \t<li><strong>Morals<\/strong><span>\u00a0<\/span>are personal. They\u2019re the beliefs you hold about right and wrong shaped by how you were raised, your religion, your culture, your experiences. Think of morals as your internal compass. For example, you might personally believe that lying is always wrong, no matter what.<\/li>\r\n \t<li><strong>Ethics<\/strong><span>\u00a0<\/span>are more like the rulebook for a group. They\u2019re the shared standards that a profession, organization, or society agrees to follow. Ethics are often written down in codes of conduct, professional guidelines, or laws.<\/li>\r\n<\/ul>\r\nFor instance, a journalist might personally feel uncomfortable withholding information from the public. But journalistic ethics might say it\u2019s acceptable, even required, to protect a source\u2019s identity or keep certain details private for safety reasons.\r\n\r\nHere\u2019s a simple way to remember it:\r\n<ul>\r\n \t<li><strong>Morals:<\/strong><span>\u00a0<\/span>\u201cLying is always wrong.\u201d<span>\u00a0<\/span><em>(Personal belief)<\/em><\/li>\r\n \t<li><strong>Ethics:<\/strong><span>\u00a0<\/span>\u201cIn some situations, a journalist may ethically withhold certain information to protect someone.\u201d<span>\u00a0<\/span><em>(Professional standard)<\/em><\/li>\r\n<\/ul>\r\n&nbsp;\r\n<h2><img loading=\"lazy\" src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics3.png\" alt=\"morals v ethics\" width=\"566\" height=\"319\" class=\"aligncenter wp-image-841 size-full\" \/><\/h2>\r\n&nbsp;\r\n\r\nIn the real world of business, you\u2019ll often find yourself in situations where your personal morals and your workplace\u2019s ethical standards don\u2019t perfectly line up. That tension is totally normal, and learning to navigate it is a core professional skill.\r\n<h2><strong>Why Ethics Is Harder to Define Than You\u2019d Think<\/strong><\/h2>\r\n<img loading=\"lazy\" src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ChatGPT-Image-Apr-24-2026-02_19_55-PM-1024x683.png\" alt=\"Farmer vs. Animal Rights Activist\" width=\"1024\" height=\"683\" class=\"alignleft wp-image-832 size-large\" \/>\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\nHere\u2019s a scenario: A farmer raises chickens. Most male chicks in the egg industry can\u2019t lay eggs and aren\u2019t the breed raised for meat, so they\u2019re typically disposed of shortly after hatching. To the farmer, this is just standard practice a routine part of running the operation. To an animal rights activist, it\u2019s deeply wrong.\r\n\r\nSame action. Completely different ethical conclusions.\r\n\r\n<em>Who\u2019s right?<\/em>\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\nThis is exactly why ethics can be so tricky. It\u2019s not always a clean answer. It\u2019s important to also note that not every decision you make at work has an ethical dimension. Choosing which font to use in a presentation? That\u2019s just a preference. Choosing whether to falsify a report to make your numbers look better? That\u2019s an ethical decision with real consequences. The key is learning to recognize the difference.\r\n\r\n<hr \/>\r\n\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\" style=\"text-align: left\"><header>\r\n<h1 class=\"entry-title\">13.2: Ethics vs. the Law \u2013 Not Always the Same Thing<\/h1>\r\n<\/header>You might assume that if something is legal, it must be ethical.<span>\u00a0<\/span><em>If it were that simple, this would be a very short chapter.<\/em>\r\n\r\nA country\u2019s legal system is actually a pretty good starting point for understanding ethical standards. Laws reflect society\u2019s shared values, set a baseline for acceptable behavior, and come with real consequences when broken. But they\u2019re just a floor, not a ceiling.\r\n\r\nEthical behavior often goes way beyond what the law requires. And in some cases, the law actually lags behind ethics, especially in fast-moving fields like artificial intelligence, bioethics, and data privacy. By the time lawmakers figure out how to regulate something, companies and individuals have already been making ethical decisions (or not) for years.\r\n<h2><strong>Real-World Examples of \u201cLegal but Questionable\u201d<\/strong><\/h2>\r\n<ul>\r\n \t<li><strong>Sweatshop Labor:<\/strong><span>\u00a0<\/span>In some countries, it is completely legal for businesses to employ workers in poor conditions, paying rock-bottom wages with minimal protections. From a legal standpoint, the company is doing nothing wrong.\r\n<ul>\r\n \t<li>Legal? Yes, in many places.<\/li>\r\n \t<li>Ethical? Most would say no. It exploits vulnerable workers and violates basic principles of human dignity and fairness.<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li><strong>Pharmaceutical Price Gouging<\/strong>: Pharmaceutical companies can legally charge extremely high prices for medications especially if they hold exclusive patents. The market allows it, but that doesn\u2019t mean people have to feel good about it.\r\n<ul>\r\n \t<li>Legal? Yes.<\/li>\r\n \t<li>Ethical? Most people would argue that putting life-saving medicine out of reach for profit is a serious ethical problem.<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li><strong>Environmental Exploitation<\/strong>: A company might legally clear-cut a forest, drain a wetland, or dump pollutants within the limits allowed by environmental regulations.\r\n<ul>\r\n \t<li>Legal? Yes.<\/li>\r\n \t<li>Ethical? When long-term harm to ecosystems and future generations is considered, many see this as deeply problematic.<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<span>The bottom line:<\/span><span>\u00a0<\/span>\u201cIt\u2019s legal\u201d is never the end of an ethical conversation. It might be the beginning.\r\n\r\n&nbsp;\r\n\r\n<img src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics5.png\" alt=\"ethical situations\" width=\"633\" height=\"356\" class=\"alignnone wp-image-843 size-full\" \/>\r\n\r\n&nbsp;\r\n<h2>\ud83d\udd25<span>\u00a0What\u2019s happening\u00a0<em data-start=\"231\" data-end=\"242\">right now<\/em>\u00a0(2025\u20132026 trends)<\/span><\/h2>\r\n<h3 data-section-id=\"r30afr\" data-start=\"263\" data-end=\"307\">AI + Ethics = the biggest new frontier<\/h3>\r\n<span class=\"pullquote-left\">\ud83d\udc49 \u201cIs it ethical if an algorithm discriminates\u2026 even if no human intended it?\u201d<\/span>\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n<ul data-start=\"308\" data-end=\"617\">\r\n \t<li data-section-id=\"7dmpoy\" data-start=\"308\" data-end=\"379\">Governments are pushing companies to disclose AI risks honestly<\/li>\r\n \t<li data-section-id=\"1k3dhvl\" data-start=\"380\" data-end=\"484\">The<span>\u00a0<\/span><span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">U.S. Securities and Exchange Commission<\/span><\/span><span>\u00a0<\/span>has<span>\u00a0<\/span><a href=\"https:\/\/www.sec.gov\/newsroom\/press-releases\/2024-36\">warned companies<\/a><span>\u00a0<\/span>about misleading AI claims in reports<\/li>\r\n \t<li data-section-id=\"1w6ykvi\" data-start=\"485\" data-end=\"617\">New laws (<a href=\"https:\/\/artificialintelligenceact.eu\/\">especially in the EU<\/a>) require companies to explain how AI decisions are made<span class=\"\" data-state=\"closed\"><\/span><\/li>\r\n<\/ul>\r\n&nbsp;\r\n\r\n<hr data-start=\"1398\" data-end=\"1401\" \/>\r\n\r\n<h3 data-section-id=\"59ki8i\" data-start=\"1403\" data-end=\"1461\">Workplace ethics + misconduct are under a microscope<\/h3>\r\n<span class=\"pullquote-left\">\ud83d\udc49 Ethics isn\u2019t just \u201ccompany vs customers\u201d \u2013 it\u2019s internal too.<\/span>\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n<ul data-start=\"1462\" data-end=\"1691\">\r\n \t<li data-section-id=\"18unaev\" data-start=\"1462\" data-end=\"1537\">Ongoing scandals around discrimination, harassment, and misuse of power<\/li>\r\n \t<li data-section-id=\"1a0vu\" data-start=\"1538\" data-end=\"1691\">Example:\r\n<ul data-start=\"1567\" data-end=\"1691\">\r\n \t<li data-section-id=\"1g09gv1\" data-start=\"1567\" data-end=\"1691\"><a href=\"https:\/\/www.reuters.com\/legal\/government\/us-eeoc-chair-violated-ethics-rules-halting-lgbtq-cases-complaint-alleges-2026-04-23\/\">EEOC leadership accused of ethical violations in handling discrimination cases<\/a><span class=\"\" data-state=\"closed\"><\/span><\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n<hr data-start=\"1774\" data-end=\"1777\" \/>\r\n\r\n<h3 data-section-id=\"1jn8nin\" data-start=\"1779\" data-end=\"1830\">Corporate decision-making = reputational risk<\/h3>\r\n<span class=\"pullquote-left\">\ud83d\udc49 Even if something is legal, public opinion can still punish you.<\/span>\r\n<ul data-start=\"1831\" data-end=\"1992\">\r\n \t<li data-section-id=\"1kklge4\" data-start=\"1831\" data-end=\"1992\">Example:<span>\u00a0<\/span><a href=\"https:\/\/interestingengineering.com\/videos\/french-tech-giant-sells-subsidiary-exposed-with-ties-to-ice\">A major firm divested a business unit after backlash over government contracts tied to immigration enforcement<\/a><\/li>\r\n<\/ul>\r\n<\/div>\r\n&nbsp;\r\n\r\n<hr \/>\r\n\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\" style=\"text-align: left\"><header>\r\n<h1 class=\"entry-title\">13.3: Real Dilemmas, Real Consequences<\/h1>\r\n<\/header>Ethical dilemmas aren\u2019t just things that happen to big corporations or famous executives. They pop up in everyday workplace situations.\r\n<div class=\"textbox textbox--examples\"><header class=\"textbox__header\">\r\n<h3 class=\"textbox__title\">Example: The Hiring Manager's Dilemma<\/h3>\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n\r\nImagine you\u2019re a hiring manager, and your cousin just applied for an open position. Your cousin is qualified and needs the job, but your company has a clear policy against nepotism.\r\n<ul>\r\n \t<li>Your morals say: \u201cI want to be fair and help family\u201d.<\/li>\r\n \t<li>The company\u2019s ethics say: \u201cYou are not allowed to hire family members, period\u201d.<\/li>\r\n<\/ul>\r\nThis is a classic ethical dilemma not because either side is evil, but because two reasonable values are in conflict. Following the ethical standard, even when it\u2019s uncomfortable, is what moral courage looks like.\r\n\r\n<\/div>\r\n<\/div>\r\n&nbsp;\r\n<div class=\"textbox textbox--sidebar textbox--examples\"><header class=\"textbox__header\">\r\n<h3 class=\"textbox__title\">Example: The Friendly Inspector<\/h3>\r\n<\/header>\r\n<div class=\"textbox__content\">ODOT inspectors take ethics training to understand the difference between a friendly interaction and a bribe. (There is roughly a $20 limit.) A contractor can buy the inspector a cup of coffee, but a full lunch starts to cross a line. Once you start accepting small gifts, it becomes easy to rationalize bigger ones until judgment is compromised.<\/div>\r\n<\/div>\r\n&nbsp;\r\n<h2><strong>The Slippery Slope of \u201cIt Depends\u201d<\/strong><\/h2>\r\nOne of the most dangerous habits is having different standards for different situations. \u201cIt depends\u201d can quickly become a way to justify doing the wrong thing when it\u2019s convenient. These small exceptions are where ethical failures begin.\r\n\r\n<\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\">\r\n\r\n<hr \/>\r\n\r\n<\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\" style=\"text-align: left\"><header>\r\n<h1 class=\"entry-title\">13.4: Setting the Tone<\/h1>\r\n<\/header>\r\n<div class=\"textbox textbox--sidebar\"><span class=\"pullquote-right\">Research consistently shows that ethical behavior at work is shaped more by the culture than by personal values.<\/span><\/div>\r\n<h3>The<strong><span>\u00a0<\/span>\u201cTone at the Top\u201d<\/strong><\/h3>\r\nWhen leaders are honest and transparent, it sets a standard for everyone else. But it\u2019s not just about what they say; it\u2019s about what they do. If a CEO preaches honesty but cuts corners on safety, the message is that the corners are the real policy.\r\n\r\n<hr \/>\r\n\r\n<h2><strong>Codes of Conduct: Helpful But Only If They\u2019re Enforced<\/strong><\/h2>\r\nA code of conduct doesn\u2019t change behavior on its own. They work best with:\r\n<ul>\r\n \t<li>Monitoring: Someone is paying attention to whether standards are met.<\/li>\r\n \t<li>Enforcement: There are real consequences for violations.<\/li>\r\n \t<li>Commitment to solutions: Leadership is invested in approaches that work for everyone.<\/li>\r\n<\/ul>\r\n<\/div>\r\n\r\n<hr \/>\r\n\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\" style=\"text-align: left\"><header>\r\n<h1 class=\"entry-title\">13.5: Business and Society: The Bigger Picture<\/h1>\r\n<\/header>Business ethics ripples outward to customers, communities, and the environment.\r\n<h2><\/h2>\r\n<h2><strong>Consumerism and Your Rights<\/strong><\/h2>\r\nConsumerism recognizes four fundamental rights:\r\n<ul>\r\n \t<li>The right to be safe.<\/li>\r\n \t<li>The right to be informed.<\/li>\r\n \t<li>The right to choose.<\/li>\r\n \t<li>The right to be heard.<\/li>\r\n<\/ul>\r\n<h3><\/h3>\r\n<h2><strong>Social Audits<\/strong><\/h2>\r\nCompanies increasingly use social audits as a systematic internal evaluation of how well they are living up to social responsibility goals. They track progress against a<span>\u00a0<\/span><strong>double bottom line<\/strong>, measuring success by both profit and social\/ethical impact.\r\n<h3><strong>Who Holds Businesses Accountable?<\/strong><\/h3>\r\n<ul>\r\n \t<li>Activist customers.<\/li>\r\n \t<li>Investors (ESG investing).<\/li>\r\n \t<li>Unions and employee groups.<\/li>\r\n \t<li>Environmental organizations.<\/li>\r\n \t<li>Government regulation.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\">\r\n\r\n<hr \/>\r\n\r\n<\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\" style=\"text-align: left\"><header>\r\n<h1 class=\"entry-title\">Chapter Wrap-Up<\/h1>\r\n<\/header>\r\n<h3><strong>The Takeaways<\/strong><\/h3>\r\n<ul>\r\n \t<li>Morals are personal; ethics are shared standards.<\/li>\r\n \t<li>Legal doesn\u2019t always equal ethical. The law is a floor, not a ceiling.<\/li>\r\n \t<li>Ethical dilemmas are everywhere.<\/li>\r\n \t<li>Culture shapes behavior. The tone at the top matters most.<\/li>\r\n \t<li>Businesses are increasingly held accountable by outside forces.<\/li>\r\n<\/ul>\r\n<span class=\"pullquote-left\">The goal isn\u2019t to have all the answers right now \u2026. it\u2019s to start building the habit of asking the right questions.<\/span>\r\n\r\n<\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n<div align=\"center\"><\/div>\r\n&nbsp;\r\n<div class=\"textbox shaded\">\r\n<h1><strong>Key Terms to Know<\/strong><\/h1>\r\n<ul>\r\n \t<li>Ethics, Morals, Ethical Dilemma, Consumerism, Social Audit, Code of Conduct<\/li>\r\n<\/ul>\r\n<\/div>\r\n&nbsp;\r\n<div align=\"center\"><\/div>\r\n<div class=\"textbox textbox--key-takeaways\"><header class=\"textbox__header\">\r\n<h1 class=\"textbox__title\"><strong>Discussion Questions<\/strong><\/h1>\r\n<\/header>\r\n<div class=\"textbox__content\">\r\n<ul>\r\n \t<li>Can you think of something legal that feels unethical to you? What makes it feel that way?<\/li>\r\n \t<li>Have you ever faced a situation where your personal values clashed with rules you were supposed to follow?<\/li>\r\n \t<li>Where do <em>you<\/em> draw the line between a friendly gesture and a bribe?<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n&nbsp;\r\n\r\n&nbsp;","rendered":"<h1>INTRODUCTION<\/h1>\n<p><audio class=\"wp-audio-shortcode\" id=\"audio-68-1\" preload=\"none\" style=\"width: 100%;\" controls=\"controls\"><source type=\"audio\/mpeg\" src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/02\/acoust_Proj_4_25_2026-2026-04-26T14_48_38.mp3?_=1\" \/><a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/02\/acoust_Proj_4_25_2026-2026-04-26T14_48_38.mp3\">https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/02\/acoust_Proj_4_25_2026-2026-04-26T14_48_38.mp3<\/a><\/audio><\/p>\n<h2>Doing the right thing &#8230;. even when it&#8217;s hard<\/h2>\n<div class=\"textbox textbox--sidebar\">\n<p data-start=\"1495\" data-end=\"1580\">Every business decision has two questions:<\/p>\n<ol data-start=\"1581\" data-end=\"1663\">\n<li data-section-id=\"fwtjpp\" data-start=\"1581\" data-end=\"1599\">Can we do it?<\/li>\n<li data-section-id=\"tvml1m\" data-start=\"1600\" data-end=\"1663\">Should we do it?<\/li>\n<\/ol>\n<p>This chapter is about the second question.<\/p>\n<\/div>\n<p>Welcome to the most &#8216;expensive&#8217; chapter in this course. While accounting teaches you how to count the money and marketing teaches you how to get the money, Ethics teaches you how to keep your reputation, your employees, and your freedom.<\/p>\n<p class=\"indent hanging-indent\">Let\u2019s be honest. Most of you have already faced an ethical decision this week.<\/p>\n<p class=\"indent hanging-indent\">\u00a0 \u00a0 Do you share answers on a homework assignment?<br \/>\nDo you split work evenly in a group project?<br \/>\nDo you take credit for something you didn\u2019t fully do?<\/p>\n<p>Business ethics is the same thing\u2026 just with higher stakes, more money, and more people affected.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/14-1-wait-what-even-is-ethics\/\"><strong>Section 1: Wait, What Even <em>Is<\/em> Ethics?<\/strong><\/a><\/p>\n<ul>\n<li>Ethics vs. morals &#8211; they&#8217;re not the same thing<\/li>\n<li>Why the definition gets murky<\/li>\n<li>When your personal morals clash with your workplace&#8217;s ethical standards<\/li>\n<\/ul>\n<div style=\"margin: auto;\"><\/div>\n<p><a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-2-ethics-vs-the-law-not-always-the-same-thing\/\"><strong>Section 2: Ethics vs. the Law &#8211; Not Always the Same Thing<\/strong><\/a><\/p>\n<ul>\n<li>Differences \/ similarities<\/li>\n<li>Laws update<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-3-real-dilemmas-real-consequences\/\"><strong>Section 3: Real Dilemmas, Real Consequences<\/strong><\/a><\/p>\n<ul>\n<li>What an ethical dilemma actually looks like at work<\/li>\n<li>The dangers of an &#8220;it depends on the situation&#8221; mindset<\/li>\n<li>The slippery slope of rationalizing small ethical violations<\/li>\n<\/ul>\n<div style=\"margin: auto;\"><\/div>\n<p><a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-4-setting-the-tone\/\"><strong>Section 4: Setting the Tone: It Starts at the Top<\/strong><\/a><\/p>\n<ul>\n<li>How organizations shape employee decisions<\/li>\n<li>The &#8220;tone at the top&#8221; concept<\/li>\n<li>Why company culture and individual ethics are deeply linked<\/li>\n<li>Codes of conduct<\/li>\n<\/ul>\n<div style=\"margin: auto;\"><\/div>\n<p><a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-5-business-and-society-the-bigger-picture\/\"><strong>Section 5: Business and Society: The Bigger Picture<\/strong><\/a><\/p>\n<ul>\n<li>Consumerism and the four basic consumer rights<\/li>\n<li>Social audits<\/li>\n<li>Who holds businesses accountable?<\/li>\n<\/ul>\n<div style=\"margin: auto;\"><\/div>\n<p><a href=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/part\/13-chapter-wrap-up\/\"><strong>Chapter Wrap-Up<\/strong><\/a><\/p>\n<ul>\n<li>Key takeaways in plain language<\/li>\n<\/ul>\n<hr \/>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<header>\n<h1 class=\"entry-title\">13.1: Wait, What Even Is Ethics?<\/h1>\n<\/header>\n<div class=\"textbox\">\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/daraprim-300x200.png\" alt=\"decorative\" width=\"300\" height=\"200\" class=\"size-medium wp-image-831 alignright\" srcset=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/daraprim-300x200.png 300w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/daraprim-1024x683.png 1024w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/daraprim-768x512.png 768w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/daraprim-65x43.png 65w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/daraprim-225x150.png 225w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/daraprim-350x233.png 350w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/daraprim.png 1536w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>In 2015, a pharmaceutical executive named Martin Shkreli\u00a0<a href=\"https:\/\/youtu.be\/rQXPen97wjQ\">made headlines<\/a>\u00a0when his company raised the price of a life-saving drug called Daraprim overnight from $13.50 per pill to $750. That\u2019s a 5,000% increase. The drug had been around for over 60 years. Nothing changed about it. It didn\u2019t get better. It wasn\u2019t reformulated. The only thing that changed was who owned the patent.<\/p>\n<p>Was it legal?<\/p>\n<p><em>Yes.<\/em><\/p>\n<p>Was it ethical?<\/p>\n<p><em>Most people would say absolutely not.<\/em><\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p>That gap between what you can do and what you should do is exactly what this section is about. Business ethics isn\u2019t just a feel-good subject or a box to check before you graduate. It shows up every day in real decisions, at every level of every organization. From a manager deciding whether to hire a friend, to a CEO choosing between profit and people\u2019s lives,<span class=\"pullquote-left\">ethics is everywhere.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics4.png\" alt=\"ethical dilemma examples\" width=\"733\" height=\"412\" class=\"aligncenter wp-image-842 size-full\" srcset=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics4.png 733w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics4-300x169.png 300w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics4-65x37.png 65w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics4-225x126.png 225w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics4-350x197.png 350w\" sizes=\"auto, (max-width: 733px) 100vw, 733px\" \/><\/p>\n<p>And here\u2019s the thing: most people don\u2019t set out to be unethical. They make small compromises, tell themselves \u201ceveryone does it,\u201d or follow the rules while ignoring the spirit behind them. That\u2019s how scandals are born: one rationalization at a time.<\/p>\n<p>So, how do you navigate the messy gray areas you\u2019ll face in your own career?<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics2.png\" alt=\"Defining Ethics\" width=\"561\" height=\"316\" class=\"alignnone wp-image-840 size-full\" srcset=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics2.png 561w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics2-300x169.png 300w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics2-65x37.png 65w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics2-225x127.png 225w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics2-350x197.png 350w\" sizes=\"auto, (max-width: 561px) 100vw, 561px\" \/><\/p>\n<h5><strong>Wait, Still Confused&#8230; What Even Is Ethics?<\/strong><\/h5>\n<p>Let\u2019s start with the basics; except they\u2019re not as basic as they seem. Most people use the words \u201cethics\u201d and \u201cmorals\u201d like they mean the same thing. They\u2019re close, but there\u2019s an important difference, and understanding that difference will save you a lot of confusion down the road.<\/p>\n<h2><strong>Morals vs. Ethics<\/strong><\/h2>\n<ul>\n<li><strong>Morals<\/strong>\u00a0are personal. They\u2019re the beliefs you hold about right and wrong shaped by how you were raised, your religion, your culture, your experiences. Think of morals as your internal compass. For example, you might personally believe that lying is always wrong, no matter what.<\/li>\n<li><strong>Ethics<\/strong>\u00a0are more like the rulebook for a group. They\u2019re the shared standards that a profession, organization, or society agrees to follow. Ethics are often written down in codes of conduct, professional guidelines, or laws.<\/li>\n<\/ul>\n<p>For instance, a journalist might personally feel uncomfortable withholding information from the public. But journalistic ethics might say it\u2019s acceptable, even required, to protect a source\u2019s identity or keep certain details private for safety reasons.<\/p>\n<p>Here\u2019s a simple way to remember it:<\/p>\n<ul>\n<li><strong>Morals:<\/strong>\u00a0\u201cLying is always wrong.\u201d\u00a0<em>(Personal belief)<\/em><\/li>\n<li><strong>Ethics:<\/strong>\u00a0\u201cIn some situations, a journalist may ethically withhold certain information to protect someone.\u201d\u00a0<em>(Professional standard)<\/em><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics3.png\" alt=\"morals v ethics\" width=\"566\" height=\"319\" class=\"aligncenter wp-image-841 size-full\" srcset=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics3.png 566w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics3-300x169.png 300w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics3-65x37.png 65w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics3-225x127.png 225w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics3-350x197.png 350w\" sizes=\"auto, (max-width: 566px) 100vw, 566px\" \/><\/h2>\n<p>&nbsp;<\/p>\n<p>In the real world of business, you\u2019ll often find yourself in situations where your personal morals and your workplace\u2019s ethical standards don\u2019t perfectly line up. That tension is totally normal, and learning to navigate it is a core professional skill.<\/p>\n<h2><strong>Why Ethics Is Harder to Define Than You\u2019d Think<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ChatGPT-Image-Apr-24-2026-02_19_55-PM-1024x683.png\" alt=\"Farmer vs. Animal Rights Activist\" width=\"1024\" height=\"683\" class=\"alignleft wp-image-832 size-large\" srcset=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ChatGPT-Image-Apr-24-2026-02_19_55-PM-1024x683.png 1024w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ChatGPT-Image-Apr-24-2026-02_19_55-PM-300x200.png 300w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ChatGPT-Image-Apr-24-2026-02_19_55-PM-768x512.png 768w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ChatGPT-Image-Apr-24-2026-02_19_55-PM-65x43.png 65w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ChatGPT-Image-Apr-24-2026-02_19_55-PM-225x150.png 225w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ChatGPT-Image-Apr-24-2026-02_19_55-PM-350x233.png 350w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ChatGPT-Image-Apr-24-2026-02_19_55-PM.png 1536w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Here\u2019s a scenario: A farmer raises chickens. Most male chicks in the egg industry can\u2019t lay eggs and aren\u2019t the breed raised for meat, so they\u2019re typically disposed of shortly after hatching. To the farmer, this is just standard practice a routine part of running the operation. To an animal rights activist, it\u2019s deeply wrong.<\/p>\n<p>Same action. Completely different ethical conclusions.<\/p>\n<p><em>Who\u2019s right?<\/em><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>This is exactly why ethics can be so tricky. It\u2019s not always a clean answer. It\u2019s important to also note that not every decision you make at work has an ethical dimension. Choosing which font to use in a presentation? That\u2019s just a preference. Choosing whether to falsify a report to make your numbers look better? That\u2019s an ethical decision with real consequences. The key is learning to recognize the difference.<\/p>\n<hr \/>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"text-align: left; margin: auto;\">\n<header>\n<h1 class=\"entry-title\">13.2: Ethics vs. the Law \u2013 Not Always the Same Thing<\/h1>\n<\/header>\n<p>You might assume that if something is legal, it must be ethical.\u00a0<em>If it were that simple, this would be a very short chapter.<\/em><\/p>\n<p>A country\u2019s legal system is actually a pretty good starting point for understanding ethical standards. Laws reflect society\u2019s shared values, set a baseline for acceptable behavior, and come with real consequences when broken. But they\u2019re just a floor, not a ceiling.<\/p>\n<p>Ethical behavior often goes way beyond what the law requires. And in some cases, the law actually lags behind ethics, especially in fast-moving fields like artificial intelligence, bioethics, and data privacy. By the time lawmakers figure out how to regulate something, companies and individuals have already been making ethical decisions (or not) for years.<\/p>\n<h2><strong>Real-World Examples of \u201cLegal but Questionable\u201d<\/strong><\/h2>\n<ul>\n<li><strong>Sweatshop Labor:<\/strong>\u00a0In some countries, it is completely legal for businesses to employ workers in poor conditions, paying rock-bottom wages with minimal protections. From a legal standpoint, the company is doing nothing wrong.\n<ul>\n<li>Legal? Yes, in many places.<\/li>\n<li>Ethical? Most would say no. It exploits vulnerable workers and violates basic principles of human dignity and fairness.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Pharmaceutical Price Gouging<\/strong>: Pharmaceutical companies can legally charge extremely high prices for medications especially if they hold exclusive patents. The market allows it, but that doesn\u2019t mean people have to feel good about it.\n<ul>\n<li>Legal? Yes.<\/li>\n<li>Ethical? Most people would argue that putting life-saving medicine out of reach for profit is a serious ethical problem.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Environmental Exploitation<\/strong>: A company might legally clear-cut a forest, drain a wetland, or dump pollutants within the limits allowed by environmental regulations.\n<ul>\n<li>Legal? Yes.<\/li>\n<li>Ethical? When long-term harm to ecosystems and future generations is considered, many see this as deeply problematic.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>The bottom line:\u00a0\u201cIt\u2019s legal\u201d is never the end of an ethical conversation. It might be the beginning.<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics5.png\" alt=\"ethical situations\" width=\"633\" height=\"356\" class=\"alignnone wp-image-843 size-full\" srcset=\"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics5.png 633w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics5-300x169.png 300w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics5-65x37.png 65w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics5-225x127.png 225w, https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-content\/uploads\/sites\/209\/2026\/04\/ethics5-350x197.png 350w\" sizes=\"auto, (max-width: 633px) 100vw, 633px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2>\ud83d\udd25\u00a0What\u2019s happening\u00a0<em data-start=\"231\" data-end=\"242\">right now<\/em>\u00a0(2025\u20132026 trends)<\/h2>\n<h3 data-section-id=\"r30afr\" data-start=\"263\" data-end=\"307\">AI + Ethics = the biggest new frontier<\/h3>\n<p><span class=\"pullquote-left\">\ud83d\udc49 \u201cIs it ethical if an algorithm discriminates\u2026 even if no human intended it?\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<ul data-start=\"308\" data-end=\"617\">\n<li data-section-id=\"7dmpoy\" data-start=\"308\" data-end=\"379\">Governments are pushing companies to disclose AI risks honestly<\/li>\n<li data-section-id=\"1k3dhvl\" data-start=\"380\" data-end=\"484\">The\u00a0<span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">U.S. Securities and Exchange Commission<\/span><\/span>\u00a0has\u00a0<a href=\"https:\/\/www.sec.gov\/newsroom\/press-releases\/2024-36\">warned companies<\/a>\u00a0about misleading AI claims in reports<\/li>\n<li data-section-id=\"1w6ykvi\" data-start=\"485\" data-end=\"617\">New laws (<a href=\"https:\/\/artificialintelligenceact.eu\/\">especially in the EU<\/a>) require companies to explain how AI decisions are made<span class=\"\" data-state=\"closed\"><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr data-start=\"1398\" data-end=\"1401\" \/>\n<h3 data-section-id=\"59ki8i\" data-start=\"1403\" data-end=\"1461\">Workplace ethics + misconduct are under a microscope<\/h3>\n<p><span class=\"pullquote-left\">\ud83d\udc49 Ethics isn\u2019t just \u201ccompany vs customers\u201d \u2013 it\u2019s internal too.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<ul data-start=\"1462\" data-end=\"1691\">\n<li data-section-id=\"18unaev\" data-start=\"1462\" data-end=\"1537\">Ongoing scandals around discrimination, harassment, and misuse of power<\/li>\n<li data-section-id=\"1a0vu\" data-start=\"1538\" data-end=\"1691\">Example:\n<ul data-start=\"1567\" data-end=\"1691\">\n<li data-section-id=\"1g09gv1\" data-start=\"1567\" data-end=\"1691\"><a href=\"https:\/\/www.reuters.com\/legal\/government\/us-eeoc-chair-violated-ethics-rules-halting-lgbtq-cases-complaint-alleges-2026-04-23\/\">EEOC leadership accused of ethical violations in handling discrimination cases<\/a><span class=\"\" data-state=\"closed\"><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr data-start=\"1774\" data-end=\"1777\" \/>\n<h3 data-section-id=\"1jn8nin\" data-start=\"1779\" data-end=\"1830\">Corporate decision-making = reputational risk<\/h3>\n<p><span class=\"pullquote-left\">\ud83d\udc49 Even if something is legal, public opinion can still punish you.<\/span><\/p>\n<ul data-start=\"1831\" data-end=\"1992\">\n<li data-section-id=\"1kklge4\" data-start=\"1831\" data-end=\"1992\">Example:\u00a0<a href=\"https:\/\/interestingengineering.com\/videos\/french-tech-giant-sells-subsidiary-exposed-with-ties-to-ice\">A major firm divested a business unit after backlash over government contracts tied to immigration enforcement<\/a><\/li>\n<\/ul>\n<\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"text-align: left; margin: auto;\">\n<header>\n<h1 class=\"entry-title\">13.3: Real Dilemmas, Real Consequences<\/h1>\n<\/header>\n<p>Ethical dilemmas aren\u2019t just things that happen to big corporations or famous executives. They pop up in everyday workplace situations.<\/p>\n<div class=\"textbox textbox--examples\">\n<header class=\"textbox__header\">\n<h3 class=\"textbox__title\">Example: The Hiring Manager&#8217;s Dilemma<\/h3>\n<\/header>\n<div class=\"textbox__content\">\n<p>Imagine you\u2019re a hiring manager, and your cousin just applied for an open position. Your cousin is qualified and needs the job, but your company has a clear policy against nepotism.<\/p>\n<ul>\n<li>Your morals say: \u201cI want to be fair and help family\u201d.<\/li>\n<li>The company\u2019s ethics say: \u201cYou are not allowed to hire family members, period\u201d.<\/li>\n<\/ul>\n<p>This is a classic ethical dilemma not because either side is evil, but because two reasonable values are in conflict. Following the ethical standard, even when it\u2019s uncomfortable, is what moral courage looks like.<\/p>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<div class=\"textbox textbox--sidebar textbox--examples\">\n<header class=\"textbox__header\">\n<h3 class=\"textbox__title\">Example: The Friendly Inspector<\/h3>\n<\/header>\n<div class=\"textbox__content\">ODOT inspectors take ethics training to understand the difference between a friendly interaction and a bribe. (There is roughly a $20 limit.) A contractor can buy the inspector a cup of coffee, but a full lunch starts to cross a line. Once you start accepting small gifts, it becomes easy to rationalize bigger ones until judgment is compromised.<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<h2><strong>The Slippery Slope of \u201cIt Depends\u201d<\/strong><\/h2>\n<p>One of the most dangerous habits is having different standards for different situations. \u201cIt depends\u201d can quickly become a way to justify doing the wrong thing when it\u2019s convenient. These small exceptions are where ethical failures begin.<\/p>\n<\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\">\n<hr \/>\n<\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"text-align: left; margin: auto;\">\n<header>\n<h1 class=\"entry-title\">13.4: Setting the Tone<\/h1>\n<\/header>\n<div class=\"textbox textbox--sidebar\"><span class=\"pullquote-right\">Research consistently shows that ethical behavior at work is shaped more by the culture than by personal values.<\/span><\/div>\n<h3>The<strong>\u00a0\u201cTone at the Top\u201d<\/strong><\/h3>\n<p>When leaders are honest and transparent, it sets a standard for everyone else. But it\u2019s not just about what they say; it\u2019s about what they do. If a CEO preaches honesty but cuts corners on safety, the message is that the corners are the real policy.<\/p>\n<hr \/>\n<h2><strong>Codes of Conduct: Helpful But Only If They\u2019re Enforced<\/strong><\/h2>\n<p>A code of conduct doesn\u2019t change behavior on its own. They work best with:<\/p>\n<ul>\n<li>Monitoring: Someone is paying attention to whether standards are met.<\/li>\n<li>Enforcement: There are real consequences for violations.<\/li>\n<li>Commitment to solutions: Leadership is invested in approaches that work for everyone.<\/li>\n<\/ul>\n<\/div>\n<hr \/>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"text-align: left; margin: auto;\">\n<header>\n<h1 class=\"entry-title\">13.5: Business and Society: The Bigger Picture<\/h1>\n<\/header>\n<p>Business ethics ripples outward to customers, communities, and the environment.<\/p>\n<h2><\/h2>\n<h2><strong>Consumerism and Your Rights<\/strong><\/h2>\n<p>Consumerism recognizes four fundamental rights:<\/p>\n<ul>\n<li>The right to be safe.<\/li>\n<li>The right to be informed.<\/li>\n<li>The right to choose.<\/li>\n<li>The right to be heard.<\/li>\n<\/ul>\n<h3><\/h3>\n<h2><strong>Social Audits<\/strong><\/h2>\n<p>Companies increasingly use social audits as a systematic internal evaluation of how well they are living up to social responsibility goals. They track progress against a\u00a0<strong>double bottom line<\/strong>, measuring success by both profit and social\/ethical impact.<\/p>\n<h3><strong>Who Holds Businesses Accountable?<\/strong><\/h3>\n<ul>\n<li>Activist customers.<\/li>\n<li>Investors (ESG investing).<\/li>\n<li>Unions and employee groups.<\/li>\n<li>Environmental organizations.<\/li>\n<li>Government regulation.<\/li>\n<\/ul>\n<\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\">\n<hr \/>\n<\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"text-align: left; margin: auto;\">\n<header>\n<h1 class=\"entry-title\">Chapter Wrap-Up<\/h1>\n<\/header>\n<h3><strong>The Takeaways<\/strong><\/h3>\n<ul>\n<li>Morals are personal; ethics are shared standards.<\/li>\n<li>Legal doesn\u2019t always equal ethical. The law is a floor, not a ceiling.<\/li>\n<li>Ethical dilemmas are everywhere.<\/li>\n<li>Culture shapes behavior. The tone at the top matters most.<\/li>\n<li>Businesses are increasingly held accountable by outside forces.<\/li>\n<\/ul>\n<p><span class=\"pullquote-left\">The goal isn\u2019t to have all the answers right now \u2026. it\u2019s to start building the habit of asking the right questions.<\/span><\/p>\n<\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<div style=\"margin: auto;\"><\/div>\n<p>&nbsp;<\/p>\n<div class=\"textbox shaded\">\n<h1><strong>Key Terms to Know<\/strong><\/h1>\n<ul>\n<li>Ethics, Morals, Ethical Dilemma, Consumerism, Social Audit, Code of Conduct<\/li>\n<\/ul>\n<\/div>\n<p>&nbsp;<\/p>\n<div style=\"margin: auto;\"><\/div>\n<div class=\"textbox textbox--key-takeaways\">\n<header class=\"textbox__header\">\n<h1 class=\"textbox__title\"><strong>Discussion Questions<\/strong><\/h1>\n<\/header>\n<div class=\"textbox__content\">\n<ul>\n<li>Can you think of something legal that feels unethical to you? What makes it feel that way?<\/li>\n<li>Have you ever faced a situation where your personal values clashed with rules you were supposed to follow?<\/li>\n<li>Where do <em>you<\/em> draw the line between a friendly gesture and a bribe?<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"author":583,"menu_order":12,"template":"","meta":{"pb_show_title":"on","pb_short_title":"Accounting ","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-68","chapter","type-chapter","status-publish","hentry"],"part":3,"_links":{"self":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/pressbooks\/v2\/chapters\/68","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/wp\/v2\/users\/583"}],"version-history":[{"count":16,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/pressbooks\/v2\/chapters\/68\/revisions"}],"predecessor-version":[{"id":1176,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/pressbooks\/v2\/chapters\/68\/revisions\/1176"}],"part":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/pressbooks\/v2\/chapters\/68\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/wp\/v2\/media?parent=68"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/pressbooks\/v2\/chapter-type?post=68"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/wp\/v2\/contributor?post=68"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ulib.csuohio.edu\/business-essentials-for-future-professionals\/wp-json\/wp\/v2\/license?post=68"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}