Ethics of business

The principal purpose of any business is to maximize returns to its owners. Thus, under this view, only those activities that increase profitability should be encouraged. Some believe that the only companies that are likely to survive in a competitive marketplace are those that place profit maximization above everything else. However, some point out that self-interest would still require a business to obey the law and adhere to basic moral rules, because the consequences of failing to do so could be very costly for a company reputation.

Many companies have formulated internal policies pertaining to the ethical conduct of employees. These are detailed policies containing specific behavioral requirements (typically called ethical codes). It is hoped that having such a policy will lead to greater ethical awareness, consistency in application, and the avoidance of ethical disaster.

An increasing number of trading companies requires employees to attend seminars regarding business conduct, which often include discussion of the company’s policies, specific case studies, concerning the protection of the company’s trade secrets, and legal requirements. Some companies even require their employees to sign non-disclosure contracts and agreements stating that they will abide by the company’s rules of conduct. In such a way a company can protect its commercial or trade secrets.

A trade secret is a formula, practice, process, design, instrument, pattern, or compilation of information used by a business to obtain an advantage over competitors within the same industry or profession. The precise language by which a trade secret is defined varies by jurisdiction (as do the particular types of information that are subject to trade secret protection). In some jurisdictions, such secrets are referred to as ‘confidential information’, while in others they are a subset or example of confidential information.

However, there are three factors that are common to all such definitions. A trade secret is some sort of information that:

· is not generally known to the public;

· confers some sort of economic benefit on its holder;

· is the subject of reasonable efforts to maintain its secrecy.

Trade secrets are by definition not disclosed to the world at large. Instead, owners of trade secrets seek to keep their special knowledge out of the hands of competitors. In exchange for the opportunity to be employed by the holder of secrets, a worker will sign an agreement not to reveal his prospective employer’s proprietary information. Violation of the agreement generally carries stiff financial penalties, agreed to in writing by the worker. Similar agreements are often signed by representatives of other companies with whom the trade secret holder is engaged.

Companies often try to discover one another’s trade secrets through illegal methods. The holder of the trade secret is obliged to protect it.

Assignment 3. Answer the following questions.

1. What is the principal purpose of any business?

2. What points of view exist concerning the success of companies in a competitive marketplace?

3. What kinds of internal policies have many companies formulated?

4. What do trading companies require their employees?

5. How would you define the term ‘trade secret’?

6. How is ‘trade secret’ defined by some jurisdictions?

7. What are the factors that are common to all definitions of ‘trade secret’?

8. What do owners of trade secrets seek?

9. What are the consequences of revealing a trade secret?

10. What is the holder of a trade secret obliged to do?

Assignment 4. Match the terms with the appropriate definition and learn them.

Ethics	A set of rules that people in a particular business or profession agree to obey.
Business ethics	Moral rules or principles of behaviour for deciding what is right and wrong.
Code of ethics	Moral rules relating to a particular profession.
Trade secret	A secret that someone tells people, or the act of telling this secret.
Disclosure	A piece of secret information about a particular business, that is only known by the people who work there.

Assignment 5. Indicate by circling the appropriate response whether each of the following statements is true (T) or false (F). If it is false, say why.

T F 1. The principal purpose of any business is to minimize returns to its owners.

T F 2. Many companies have formulated internal policies pertaining to the ethical conduct of employees.

T F 3. Some companies require their employees to sign non-disclosure contracts.

T F 4. There are no common factors to definitions of a trade secret.

T F 5. Trade secrets are by definition disclosed to the world.

T F 6. Violation of the agreement generally carries stiff financial penalties.

T F 7. Companies often try to discover one another’s trade secrets through legal methods.

Assignment 6. Complete the following sentences.

1. The principal purpose of any business is …. 2. Some economists believe that the only companies that are likely to survive in a competitive marketplace are those that …. 3. It is hoped that having detailed policies containing specific behavioral requirements will lead to …. 4. Some companies require their employees to sign …. 5. In some jurisdictions trade secrets are referred to as …, while in others they are …. 6. Owners of trade secrets seek to keep their special knowledge out of …. 7. Violation of the agreement generally carries …. 8. The holder of the trade secret is obliged to ….

Assignment 7. Translate into Ukrainian.

Under this view; activities that increase profitability should be encouraged; the only companies that are likely to survive in a competitive marketplace; to place profit maximization above everything else; self-interest; to adhere to basic moral rules; consequences of failing to do so; to be very costly for a company reputation; consistency in application; avoidance of ethical disaster; to sign non-disclosure contracts; tovary by jurisdiction; a subset of confidential information; the subject of reasonable efforts to maintain its secrecy; notdisclosed to the world at large; to keep special knowledge out of the hands of competitors; prospective employer’s proprietary information; to carry stiff financial penalties; with whom the trade secret holder is engaged.

Assignment 8. Translate into English.

Максимально збільшувати прибутки;деякі вказують на те, що…; вимагати від фірми дотримуватися закону; визначати внутрішню політику; що стосується етичної поведінки; вимоги щодо поведінки; кодекс етики; вимагати від працівників відвідувати семінари; дослідження певних випадків; дотримуватися правил поведінки компанії; збір інформації; надавати якусь перевагу власникові; в обмін на можливість бути найнятим; підписувати угоду; порушення угоди; узгоджений у письмовій формі; розкривати комерційну таємницю незаконними методами; бути зобов’язаним зберігати комерційну таємницю.

Assignment 9. Consult the dictionary and give as many synonyms as possible to the following words. Some of them are in the text.

Returns, to point out, to disclose, reasonable, to confer, holder, precise, subset, compilation, stiff, violation, penalty, to discover, to oblige, confidential, illegal, to adhere, to refer, conduct, disaster, to contain, awareness, consistency, to obtain, benefit.

Assignment 10. Paraphrase the underlined words using the synonymous words from as.9. Translate the sentences.

1. The breach of the agreement generally carries stiff financial fines. 2. Mr. Black is the owner of securities. 3. A trade secret is a formula used by a business to get an advantage over competitors. 4. Companies often try to reveal one another’s trade secrets. 5. One of the basic steps in conducting marketing research is data collection.

Assignment 11. Match the opposites. Use any 5 words in the sentences of your own.

A: illegal, returns, likely, to obey, awareness, precise, consistency.

B: imprecise, inconsistency, ignorance, legal, expenses, to disobey, unlikely.

Assignment 12. Substitute the underlined words for their opposites from as.11 so that the sentences make sense. Translate the sentences.

1. Ethical awareness may lead to business failure. 2. Every employee must disobey behavioral requirements of the company. 3. The principal purpose of any business is to maximize expenses to its owners. 4. He tried to discover the company’s trade secret through legal methods. 5. She is likely to become bankrupt because she has paid all the debts in time.

Assignment 13. Generate other forms of the following words.

Дата добавления: 2014-11-29