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Pressures influencing ethical decision making

1. 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.

2. Business ethics. Although there are exceptions, it is rela­tively easy for management to respond in an ethical manner when business is good and profit is high. However, concern for ethics can dwindle under the pressure of low or declining profit. In such circumstances, ethical behavior may be compromised.

Expanding international trade has also led to an ethical dilem­ma for many firms operating in countries where bribes and pay­offs are an accepted part of business. In the U.S. government agencies have prosecuted several companies for "illegal payoffs", in spite of the fact that there is as yet no international code of busi­ness ethics. Until stronger international laws or ethics codes are in place, such cases will be difficult to investigate and effective pros­ecution is not possible.

III. Find the English equivalents:

принимать финансовые решения, повышать продажи, увеличивать прибыль, безопасный и надежный, по приемлемой цене, обращаться справедливо, платить вовремя, финансовые бумаги, давать достоверную информацию о продукции, довольно просто, соответствовать этическим нормам, низкая или уменьшающаяся прибыль, при таких обстоятельствах, расширение международной торговли, неотъемлемая часть бизнеса, несмотря на тот факт, что, трудно расследовать.

IV. Complete the sentences.

1. Business ethics involves …

3. Investors want management to make …

4. Although there are exceptions, it is …

5. In such circumstances, ethical …

6. Expanding international trade …

7. Until stronger …

V. Agree or disagree to the following.

1. Business ethics involves only relations between a firm and its customers.

2. Customers expect a firm’s products to be safe, reliable and reasonably priced.

3. Employees want to be treated fairly in hiring, promotion and compensation.

4. Creditors are interested only in sales and profits.

5. Competitors expect the firm’s marketing activities to portray its products untruthfully.

6. It is difficult for management to respond in an ethical manner when business is good and profit is high.

7. Concern for ethics can dwindle under the pressure of low or declining profit.

8. There are countries, where bribes and payoffs are an accepted part of business.

VI. Continue the chain.

1) investors, customers, employees, creditors, …

2) …, reliable, reasonably priced

3) hiring, …, compensation

VII. Choose the right word.

1. Each group ______ specific concerns.

has, have

2. Concern ______ ethics can dwindle under the pressure of low or declining profit.

for, of

3. In such circumstances, ethical behaviour may be ______.

compromise, compromised

4. ______ international trade has also led to an ethical dilemma.

expanded, expanding

VIII. Read and translate the text.