Ethics and the Conduct of Business Eighth edition Chapter Business Information and Conflict of Interest Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Modules • 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 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 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved ... 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:... 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 Copyright © 2017, 2012,... 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