Ethics and the conduct of business 8th by john boatright and smith 2017 chapter 5

• Introduction: Business Information and Conflict of Interest • 5.1: Confidential Information • 5.2: Proprietary Information • 5.3: Conflict of Interest • Conclusion: Business Informatio

Ethics and the Conduct of Business

Eighth edition

Chapter 5

Business Information and Conflict of Interest

• Introduction: Business Information and Conflict of Interest

• 5.1: Confidential Information

• 5.2: Proprietary Information

• 5.3: Conflict of Interest

• Conclusion: Business Information and Conflict of Interest

Learning Objectives

• 5.1: Identify the competing rights and considerations of

fairness for employers and employees seeking to protect or use confidential information

• 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

• 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

Introduction: Business Information and Conflict of Interest

• Information valuable asset that companies protect

• Conflict of interests should be managed

• Confidential information is internal information

• Proprietary information said to be owned in form of

property

• Intellectual property includes trade secrets, patents,

trademarks, copyrights

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

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

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

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

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

Figure 5.1: Business Information

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

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

Conclusion: Business Information and Conflict of Interest

• Ethical issues involves a delicate balancing

• Arguments about rights, duties, and fairness

• Language of duties and rights has dominated the

discussion

• Conflict of interests involves concept of duty