Ethics and the conduct of business 8th by john boatright and smith 2017 chapter 5
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Ethics and the Conduct of Business
Eighth edition
Chapter 5
Business Information
and Conflict of Interest
Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved
Modules
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Introduction: Business Information and Conflict of Interest
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5.1: Confidential Information
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5.2: Proprietary Information
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5.3: Conflict of Interest
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Conclusion: Business Information and Conflict of Interest
Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved
Learning Objectives
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5.1: Identify the competing rights and considerations of fairness for employers and employees seeking
to protect or use confidential information
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5.2: Explain the concepts of intellectual property and trade secrets; the arguments surrounding
questions of ownership, protection, and collection; and how these issues affect the employer-employee
relationship
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5.3: Describe the meaning of conflict of interest, the different types of conflict of interest, and ways by
which business firms can manage these situations
Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved
Introduction: Business Information and Conflict of Interest
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Information valuable asset that companies protect
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Conflict of interests should be managed
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Confidential information is internal information
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Proprietary information said to be owned in form of property
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Intellectual property includes trade secrets, patents, trademarks, copyrights
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5.1: Confidential Information (1 of 2)
Objective: Identify the competing rights and considerations of fairness for employers and employees seeking to protect or use confidential information
5.1.1: Duty of Confidentiality
Justifying the duty
Confidentiality agreements
5.1.2: Competitive Employment
Noncompetition agreement
Features
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5.1: Confidential Information (2 of 2)
Objective: Identify the competing rights and considerations of fairness for employers and employees seeking to protect or use confidential information
5.1.3: Impact of Restrictions
Imposition of noncompetition agreements
Noncompetition agreements
Drawbacks of noncompetition agreements
Test to determine noncompetition agreements
Factors in determining restrictions
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5.2: Proprietary Information (1 of 3)
Objective: Explain the concepts of intellectual property and trade secrets; the arguments surrounding questions of ownership, protection, and collection;
and how these issues affect the employer-employee relationship
5.2.1: Intellectual Property
Patents and copyright laws
Creators have property rights in ideas
Legal protection drawbacks
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5.2: Proprietary Information (2 of 3)
Objective: Explain the concepts of intellectual property and trade secrets; the arguments surrounding questions of ownership, protection, and collection;
and how these issues affect the employer-employee relationship
5.2.2: Defining Trade Secrets
Examples of trade secrets
Examples of confidential business information
Factors that determine trade secrets
Economic Espionage Act of 1996
Arguments for trade secret protection
5.2.3: Property Rights Argument
Who owns the product?
The Wexler case
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5.2: Proprietary Information (3 of 3)
Objective: Explain the concepts of intellectual property and trade secrets; the arguments surrounding questions of ownership, protection, and collection;
and how these issues affect the employer-employee relationship
5.2.4: Fair Competition Argument
Fairness of trade
Right to compete
5.2.5: Competitor Intelligence
Collection practices
Unethical methods
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Figure 5.1: Business Information
Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved
5.3: Conflict of Interest (1 of 2)
Objective: Describe the meaning of conflict of interest, the different types of conflict of interest, and ways by which business firms can manage these
situations
5.3.1: Defining Conflict of Interest
Occurrence
Benefits
5.3.2: Some Relevant Distinctions
Actual and potential conflict of interest
Personal and impersonal conflicts of interest
Individual and organizational conflict of interest
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5.3: Conflict of Interest (2 of 2)
Objective: Describe the meaning of conflict of interest, the different types of conflict of interest, and ways by which business firms can manage these
situations
5.3.3: Kinds of Conflict of Interest
Biased judgment
Direct competition
Misuse of position
Violation of confidentiality
5.3.4: Managing Conflict of Interest
Not merely a matter of personal ethics
Means of managing conflict of interest
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Conclusion: Business Information and Conflict of Interest
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Ethical issues involves a delicate balancing
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Arguments about rights, duties, and fairness
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Language of duties and rights has dominated the discussion
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Conflict of interests involves concept of duty
Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved
