Text 3. Business Ethics

Ethics is the system of moral principles, rules of conduct, and morality of choices that individuals make. Business ethics is the application of moral standards to business situations. Business ethics has become a matter of public concern. All business people face ethical issues daily, and they stem from a variety of sources. Although some types of issues arise infrequently, others occur regularly. Let’s take a closer look at several ethical issues.

1. Fairness and Honesty. Fairness and honesty in business are two important ethical concerns. Besides obeying all laws and regulations, business people should refrain from deceiving, misrepresenting, or intimidating others.

1. Organizational Relationships. A business person may be temped to place his or her personal welfare above the welfare of the organization. Relationships with customers and coworkers often create ethical problems – since confidential information should be secret and all obligations should be honored. Unethical behaviour in these areas includes not meeting one’s obligations in a mutual agreement, and pressing others to behave unethically.

2. Conflict of Interest. Conflict of interest results when a business person takes advantage of a situation for his or her own personal interest rather than for the employer’s or organization’s interest. Such conflict may occur when payments and gifts make their way into business deals. A wise rule to remember is that anything given to a person that might unfairly influence that person’s business decision is a bribe, and all bribes are unethical.

3. Communications. Business communications, especially advertising, can present ethical questions. False and misleading advertising is illegal and unethical, and it can infuriate customers. Sponsors of advertisements aimed at children must especially careful to avoid misleading messages. Advertising of health-related products must also take precautions against deception.

4. Relationships. Business ethics involves relationships between a firm and its investors, customers, employees, creditors, and competitors. Each group has specific concerns, and each exerts some type of pressure on management. Investors want management to make financial decisions that will boost sales, profits, and returns on their investments. Customers expect a firm’s products to be safe, reliable, and reasonably priced. Employees want to be treated fairly in hiring, promotion, and compensation. Creditors require bills to be paid in time and the accounting information furnished by the firm to be accurate. Competitors expect the firm’s marketing activities to portray its products truthfully.

Task 1. Find the English equivalents:

Система моральных принципов; проблема общественной важности; сталкиваться с этическими вопросами; справедливость и честность; законы и постановления; личное благосостояние; деловая этика; конфиденциальная информация; неэтичное поведение; конфликт интересов; воспользоваться ситуацией в личных интересах; взятка; ложное и вводящее в заблуждение рекламирование; принимать меры предосторожности; принимать финансовые решения; относиться честно; правдиво отображать.

Task 2. Translate into English:

1. Деловая этика – это применение моральных стандартов к деловым ситуациям.

2. Справедливость и честность в бизнесе являются двумя важными этическими вопросами.

3. Деловой человек не должен ставить свое личное благосостояние выше благосостояния других или благосостояния организацию

4. Когда деловой человек пользуется ситуацией для своих собственных личных интересов, это приводит к конфликту интересов.

5. Все, что дается какому-либо лицу и может несправедливо повлиять на деловое решение этого лица, является взяткой.

6. Взятки противозаконны и неэтичны.

7. Ложная и вводящая в заблуждение реклама является противозаконной и неэтичной.

8. Открытость часто создает доверие и помогает строить прочные деловые отношения.

Task 3. Speak about business ethics, its basic principles and its importance in the world of business: