{"id":2923,"date":"2023-02-19T16:11:08","date_gmt":"2023-02-19T16:11:08","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-6-1-ethical-vs-legal-behavior\/"},"modified":"2023-07-21T13:16:16","modified_gmt":"2023-07-21T13:16:16","slug":"apply-it-6-1-ethical-vs-legal-behavior","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-6-1-ethical-vs-legal-behavior\/","title":{"raw":"Apply It 6.1: Business Ethics","rendered":"Apply It 6.1: Business Ethics"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Distinguish between ethical and legal behavior&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Distinguish between ethical and legal behavior<\/span><\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Explain what business ethics is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15171,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;9&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Explain what business ethics is<\/span><\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what a corporate code of ethics is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15171,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;9&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what a corporate code of ethics is<\/span><\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand a manager's role in setting ethical standards&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15171,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;9&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand a manager's role in setting ethical standards<\/span><\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Business Ethics<\/h2>\r\n<section class=\"textbox example\">\r\n<h2>Smokers Need Not Apply<\/h2>\r\nCosts are driving the trend not to hire smokers. According to the CDC, a smoker will have 50 percent higher absenteeism, and, when present, will work 39 fewer minutes per day because of smoke breaks, which leads to 1,817 lost hours of annual productivity. A smoker will have higher accident rates, cause $1,000 a year in property damage (from cigarette burns and smoke damage), and will cost up to $5,000 more a year for annual insurance premiums.\u00a0American Express, a financial services company, found that smokers were costing the company $5,000\u2013$6,000 more per year than nonsmokers.\r\n\r\nNationwide, about 6,000 companies refuse to hire smokers. In 2020, U-Haul joined those companies and implemented a nicotine-free hiring policy in the 21 states where it is legal to discriminate on the basis of nicotine use.[footnote]U-Haul International. \u201cU-Haul to Implement Nicotine-Free Hiring Policy for Healthier Workforce,\u201d December 30, 2019. https:\/\/www.uhaul.com\/Articles\/About\/U-Haul-To-Implement-Nicotine-Free-Hiring-Policy-for-Healthier-Workforce-19926\/[\/footnote]\u00a0Few people would fault a company for trying to control costs and maintain a productive workforce, but the question is how far should a company go in pursuit of these goals? If companies begin by discriminating against smokers, they might\u00a0next discriminate against people who are overweight in order to cut costs.\r\n\r\nSuppose you are an executive at a company located in a state where you can legally decide not to hire nicotine users, would you implement such a policy to save costs?\r\n[reveal-answer q=\"357283\"]Click to Show Sample Answer[\/reveal-answer]\r\n[hidden-answer a=\"357283\"]Opinions will vary depending on your analysis of ethics. As a manager, you have to consider both ethics and social responsibility. Ethical decision making is concerned with doing right and avoiding wrong. Social responsibility is a broader goal to pursue policies that benefit society. Should you protect an individual's right to smoke if it places a burden on society? Is it ethical to promote society's rights if it infringes on the rights of the individual?What about the interests of shareholders?[\/hidden-answer]\r\n\r\n<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Distinguish between ethical and legal behavior&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Distinguish between ethical and legal behavior<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Explain what business ethics is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15171,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;9&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Explain what business ethics is<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand what a corporate code of ethics is&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15171,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;9&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand what a corporate code of ethics is<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand a manager's role in setting ethical standards&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15171,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:16777215},&quot;9&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand a manager&#8217;s role in setting ethical standards<\/span><\/li>\n<\/ul>\n<\/section>\n<h2>Business Ethics<\/h2>\n<section class=\"textbox example\">\n<h2>Smokers Need Not Apply<\/h2>\n<p>Costs are driving the trend not to hire smokers. According to the CDC, a smoker will have 50 percent higher absenteeism, and, when present, will work 39 fewer minutes per day because of smoke breaks, which leads to 1,817 lost hours of annual productivity. A smoker will have higher accident rates, cause $1,000 a year in property damage (from cigarette burns and smoke damage), and will cost up to $5,000 more a year for annual insurance premiums.\u00a0American Express, a financial services company, found that smokers were costing the company $5,000\u2013$6,000 more per year than nonsmokers.<\/p>\n<p>Nationwide, about 6,000 companies refuse to hire smokers. In 2020, U-Haul joined those companies and implemented a nicotine-free hiring policy in the 21 states where it is legal to discriminate on the basis of nicotine use.<a class=\"footnote\" title=\"U-Haul International. \u201cU-Haul to Implement Nicotine-Free Hiring Policy for Healthier Workforce,\u201d December 30, 2019. https:\/\/www.uhaul.com\/Articles\/About\/U-Haul-To-Implement-Nicotine-Free-Hiring-Policy-for-Healthier-Workforce-19926\/\" id=\"return-footnote-2923-1\" href=\"#footnote-2923-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a>\u00a0Few people would fault a company for trying to control costs and maintain a productive workforce, but the question is how far should a company go in pursuit of these goals? If companies begin by discriminating against smokers, they might\u00a0next discriminate against people who are overweight in order to cut costs.<\/p>\n<p>Suppose you are an executive at a company located in a state where you can legally decide not to hire nicotine users, would you implement such a policy to save costs?<\/p>\n<div class=\"qa-wrapper\" style=\"display: block\"><button class=\"show-answer show-answer-button collapsed\" data-target=\"q357283\">Click to Show Sample Answer<\/button><\/p>\n<div id=\"q357283\" class=\"hidden-answer\" style=\"display: none\">Opinions will vary depending on your analysis of ethics. As a manager, you have to consider both ethics and social responsibility. Ethical decision making is concerned with doing right and avoiding wrong. Social responsibility is a broader goal to pursue policies that benefit society. Should you protect an individual&#8217;s right to smoke if it places a burden on society? Is it ethical to promote society&#8217;s rights if it infringes on the rights of the individual?What about the interests of shareholders?<\/div>\n<\/div>\n<\/section>\n<hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-2923-1\">U-Haul International. \u201cU-Haul to Implement Nicotine-Free Hiring Policy for Healthier Workforce,\u201d December 30, 2019. https:\/\/www.uhaul.com\/Articles\/About\/U-Haul-To-Implement-Nicotine-Free-Hiring-Policy-for-Healthier-Workforce-19926\/ <a href=\"#return-footnote-2923-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":21,"menu_order":7,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Ethical and Legal Behavior\",\"author\":\"Robert Carroll\",\"organization\":\"Montgomery College\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Revision and adaption\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":2916,"module-header":"apply_it","content_attributions":[{"type":"cc","description":"Ethical and Legal Behavior","author":"Robert Carroll","organization":"Montgomery College","url":"","project":"","license":"cc-by","license_terms":""},{"type":"cc","description":"Revision and adaption","author":"Linda Williams and Lumen Learning","organization":"","url":"","project":"","license":"cc-by","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2923"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":5,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2923\/revisions"}],"predecessor-version":[{"id":5546,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2923\/revisions\/5546"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/2916"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2923\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=2923"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=2923"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=2923"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=2923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}