2. I. Why Should We Study Business
Ethics?
1) Studying business ethics is very
important because in it lies the
success of a corporation, company
school or organization
• 2) These guidelines will help you
how to establish
a business or decide whether to join
a company or not or continue
working for a company or not

3. I) A good businessman takes care of people working for him
A) The most important resource is
human resource

4. Story
Sometimes happiness takes the form of a goldfish. When a
travel-weary family of four checked into Chicago’s Hotel
Allegro in the middle of the night, the two boys, both under
10, asked hopefully at the front desk about the possibility of
a goldfish for their room.

5. It wasn’t as odd a request as it sounds—the Allegro
is a part of the Kimpton chain, which makes
goldfish available during a guest’s stay at some
locations. But unfortunately for the parents, the
Allegro is not one of them

6. Linton Murphy, a bellman at the
property, overheard the crestfallen
kids. He set out immediately on a 10minute walk to the chain’s Hotel
Monaco, which does have goldfish for
guests, and talked the night manager
into loaning one out. Not long after,
Murphy appeared at the door of the
beleaguered family, pet in hand—along
with a note from the fish that gave it a
name and a back story.

8. 1) Happy employees make
happy ________________

9. 2) Employers should _______ the morale of
employees to ensure that they give their full
________ in their work because of the sense
of fulfillment and support they get out of it.

10. 3) Nothing will take away the inspiration,
___________, enthusiasm and loyalty of
employees more than derogatory or insulting words

11. 3) Nothing will take away the inspiration,
___________, enthusiasm and loyalty of
employees more than derogatory or insulting words

12. 4) The most ________ and stressed employers are those who have a
fast turn over of employees, those who are fast to hire and fire
because of the never ending process of dealing with employee
inexperience, periods of adjustment, customer complaints, etc.

13. 3) Nothing will take away the inspiration,
___________, enthusiasm and loyalty of
employees more than derogatory or insulting words

14. 5) Employee __________ is very costly and stressful. The company,
school or any business establishment will never reach competitiveness if
the workers are always new and are just trying to adjust or survive. It is
very stressful because of the never-ending hiring and firing system.

15. 6) The success of any company lies in the ____________ who work
for them. If the workers have a sense of loyalty because of the
excellent working conditions then the employees who do the
decision making, promotion and thinking of strategies will work
with full potential.

16. 7) Likewise, the people who give services or
take care of customers will do a great job to
maintain the company’s good

17. 8) If the employer takes care of the
employees then the employees will give the
best _________________

18. 9) Happy? Don't dismiss the sentiment as soft. Experience shows
that happy employees equal ___________ customers. That means
everybody else-including the boss and the shareholders-will be
happy, too.

19. ‘
10) Employee benefits
Good basic pay, bonuses, paid ________, all-expenses paid
holidays trips, good working conditions: comfortable
workplace, good lighting, ventilation, equipment

20. Free lunch, _________, party give-aways, medical and life
insurance, disability, retirement benefits, leaves, pleasant
working atmosphere, opportunity for training and
promotion, perks

21. 11) In a recent study, American Express reported that US customers
will spend 9% more with companies that provide great
________service. Research by Right Now says 85% of customers are
willing to spend more over the standard price to ensure a superior
customer experience.

22. 12) The establishment should hire the most qualified and skilled,
competent, trustworthy workers and let them undergo as many ________
as they can provide. Employers should be considerate enough to
understand initial mistakes due to inexperience since the person is still
trying to adjust and learn about the type of work, the workplace, the
colleagues, etc.

23. 13) An employee made a mistake that cost the company 3 million
dollars. She expected to be fired but the boss did not fire her. The
boss said they spent a lot for her to learn a very valuable lesson so
why should they fire her?

24. B) Labor Law Violations
1) McStrike: Old McDonald had a strike, E-I-E-I-O
a) Not paying the wages of the workers
b) Not giving overtime pay
c) Understaffing
d) Making the employees work on legal holidays

25. 2) Coca-Cola has allegedly violated a number
of California Labor Laws in a case involving
roughly 1,500 workers, with potential financial

27. a) Coca-Cola kills union
leaders in Colombia
C

28. b) Coca-Cola Accused of Using Death Squads to Target Union
Leaders
By Garry Leech · July 23, 2001 · Save & Share
A lawsuit filed in U.S. District Court in Florida accuses the
Coca-Cola Company, its Colombian subsidiary and business
affiliates of using paramilitary death squads to murder,
torture, kidnap and threaten union leaders at the
multinational soft drink manufacturer’s Colombian bottling
plants. The suit was filed on July 20 by the United
Steelworkers of America and the International Labor Rights
Fund on behalf of SINALTRAINAL, the Colombian union that
represents workers at Coca-Cola’s Colombian bottling plants;
the estate of a murdered union leader; and five other
unionists who worked for Coca-Cola and were threatened,
kidnapped or tortured by paramilitaries.

29. II) A)All transactions, all
procedures should be ______

30. B) All employees must be qualified and highly
______. Do not hire people just because they are
your relatives. It will lessen the quality of your
product or service.

31. C) Avoid Machiavellianism
1) Niccolo Macchiavelli
was an Italian
diplomat and writer.
The political doctrine of
Machiavelli is one
which denies the
relevance of morality in
political affairs and
holds that craft and
deceit are justified in
pursuing and
maintaining political
power.

32. 2) Macchiavellianism
definition:
Activity characterized by
subtle cunning (deception ),
duplicity and bad faith
 “The end justifies the
means.”
It means that the process
how a person became
successful in not
important as long as he is
prosperous, rich and lives
comfortably.

33. 3) All transactions should be legal and clean if you plan to
make the company a big and a successful one. Any illegal of
shady business will surface especially if the company has
become famous. Any issues like this will give ______________
publicity to the company which can cause the downfall of the
company.

34. 4) The company should not _______ the health of the consumers.
If the product will be proven dangerous to the health of the
consumers then sooner or later, the company will go out of
business.

35. Ex.: Coca-cola
Soft drink users have a lower intake of calcium, magnesium, ascorbic acid, riboflavin and vitamin A.
-use of caffeine and MSG which makes it addictive
-Osteoporosis in women because of the presence of phosphoric acid
-stomach hyperacidity
-tooth decay
-High fructose corn syrup (GMO which is linked to obesity and diabetes)
-Using aspartame which is the most dangerous food additive at present which gives a lot of side effects
-Coccaine: the extract from the coca leaf

36. Man who drank eight litres of cola a day loses all his teeth – and he’s still
only 25
William Kennewell has had a full set of dentures fitted to replace his teeth
The Australian drank six to eight litres of cola each day
His addiction to the sugary drink even left him with blood poisoning

37. A 31- year old New Zealander named Natasha Harris who is a mother of 8 kids died of
overconsumption of coke. She consumed 2.25 liters of coke and drank no other beverage.
She suffered hypokalemia, had an enlarged liver, and had deposits of fat in her liver. She
died of a cardiac arrest caused by too much consumption of sugar. She had no teeth and no
energy.She died in February 2010.
Coke was the leading drink in India until 1977 when the company refused to reveal their
secret formula. Coca-cola went back to India only in 1993 after the introduction of the
Liberalization policy.
Pesticides were discovered in Coca-cola by Indian and European scientists

38. Mcdonald’s has been known to put ingredients
that are _________ to the health of

39. The beef from which the patties are made are from
animals that did not grow naturally. They are from
animal farms with very bad living conditions or CAFO
(Concentrated Animal Feeding Operations)

40. These cows are not fed with grass but with corn, chicken feathers
and animal byproducts, are given hormones and antibiotics for
them to grow faster. Most of the cows are sick : they have ulcers,
major infections and liver failure

41. The bun will not decompose even for years because of the chemicals and preservatives.
Enriched flour (bleached wheat flour, malted barley flour, niacin, reduced iron, thiamin
mononitrate, riboflavin, folic acid, enzymes), water, high fructose corn syrup, sugar, yeast,
soybean oil and/or partially hydrogenated soybean oil, contains 2% or less of the following:
salt, calcium sulfate, calcium carbonate, wheat gluten, ammonium sulfate, ammonium
chloride, dough conditioners (sodium stearoyl lactylate, datem, ascorbic acid,
azodicarbonamide, mono- and diglycerides, ethoxylated monoglycerides, monocalcium
phosphate, enzymes, guar gum, calcium peroxide, soy flour), calcium propionate and sodium
propionate (preservatives), soy lecithin.

42. 1)Amonium chloride: found in fireworks,
safety matches and explosives
2)Ammonium sulfate: an artificial
fertilizer
3)Soybean and Canola oil are probably
GMO
4)High fructose corn syrup (HFCS) is GMO
5)Malathion – is a poisonous pesticide
6)Chloroform – causes unconciousness
7) Diazinon-pesticide to kill cockroaches

43. 8) Dicamba: a herbicide that kills weeds
9)Iprodione: herbicide, kills fungi

44. McDonalds and other fastfood restaurants
A study done in Jeddah has shown that current fast food habits are
related to the increase of overweight and obesity among
adolescents in Saudi Arabia. [26]

46. Gummy bears are made from the left
over bones and muscles of dead animals

47. Products from China: poisonous powdered milk, radioactive
drywall, toxic dog food, dangerous candies (with melamine and
formaldehyde), toxic toothpaste, ginger with pesticides, cancercausing fish(fed with pig and chicken feces, toys with lead paint

48. dangerous candies (with melamine and
formaldehyde), toxic toothpaste, ginger with
pesticides, cancer-causing fish(fed with pig and
chicken feces and , toys with lead paint

49. 5) Operations of the company should observe and perform operations in an
acceptable way
Example: Making sure that animals are given good living conditions because
if not then it will always have a negative impact on people

50. Chickens are scalded alive. Brutal treatment and neglect
of the living conditions of chicken resulted in the bird flu
epicemic in that lead to almost 100 million deaths.

51. Pigs living with their excrement have respiratory disease because of the
ammonia that comes from the excrement. They live in dark and damp rooms
that do not get any sunlight which has UV rays which can kill germs. Animals
living nose to nose spread disease very quickly and viruses mutate because of
these torturous and inhumane living conditions. Antibiotics are injected to the
animals to keep them from diseases but this can be detrimental to human
health. Bird flu, swine flue, H1N1 originated from CAFO’s .

52. 6) Make sure your business does not destroy
the environment
Example: KFC is causing deforestation in
the Amazon ( Brazil) because they use soya
as chicken feed which are grown there

53. a) Air pollution

54. b) Water Pollution

55. c) Land Pollution

56. d) Should not pollute the mind:
1)liquor stores

57. Should not pollute the mind like night clubs
2) Night clubs

58. 3) Stores selling pornographic books, magazines,
sex toys and videos

59. 4) casinos

60. video arcade
5) Video arcades

61. 7) Advertizing Fraud: Promotion Methods should not be
deceptive
Truth in advertizing: misuse of the word, “sale”,buy 1 get 1 free, clearance
sales, oversized packaging, oversized pictures, fillers(injecting water to
chicken), , hidden ingredients(chalk in soap), manipulation of words like
“organic,” angel dusting-whitening creams, bait- and –switch ( limited supply) ,

62. 8) Accounting Fraud
Enron Corporation: An American energy, commodities and service
company based in Houston, Texas founded in 1985 by Kenneth
Lay. It produced electricity, natural gas, communications and pulp
for paper. It had a beautiful building with 20,000 staff. The
company has revenues of $101 billion dollars in 2000. It was held
by the magazine Fortune as the “Most Innovative Company” for 6

63. Kenneth Lay hired Jeffrey Skilling a graduate of Harvard University as the
Chief Executive Officer or CEO. Their scheme was to make accounting books
for projects which are still in the making. And they would hide losses by
passing the books to some of their smaller companies so there were no
records of their losses. The result was that t they did not try to solve any
financial losses because they were all hidden. So on December 2001, Enron
declared bankruptcy. 20,000 people lost their jobs, savings and benefits.
They protested in the streets naked as a show of their hatred for the
company. Many investors lost their money. Enron was declared as the
largest bankruptcy and the biggest auditing failure.

64. Kennedy Lay was charged with 11 cases. He died
before he could serve his sentence at the age of 64.
Skilling was sentenced to 24 years in prison and has to
pay $45 million dollars. He is serving his sentence until
now.

65. 9) Tax Evasion
Declaring less income, profit or gain than what is actually earned which includes
dishonest tax reporting or overstating deductions. (Illegal)
Tax Avoidance – it is legal. Passing the tax to the costumers example : VAT in
restaurants, malls, etc.

66. 10) Child Labor
The full-time employment of children
who are under a minimum legal age.

67. 10) Prison Labor
Prisons are supposed to be where criminals are reeducated. But
risoners engage in work, typically manual labor or factory work
where the prisoners become exploited.

68. . Kennedy Lay was charged with 11 cases. He died before he could serve his
sentence at the age of 64. Skilling was sentenced to 24 years in prison and has to
pay $45 million dollars. He is serving his senctence until now.