Objectives

• To distinguish between ethical/unethical

and legal/illegal business practices.
• To list the ethical/unethical practices in
agribusiness.
• To relate the ethical decision-making
process to business situations.

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 Main Menu

• Ethics in Business
• Ethical Decision Making Process
• Agribusiness Ethics

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 Business Ethics
• Are professional standards of conduct
• Are based on moral principles and values,
guiding decision making processes and
actions
• Are expressed through
the employer
“Code of Ethics” in an
employee manual

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 Business Ethics
• Play significant roles in the
workplace, such as:
– enhancing the image of a
business
– inspiring leaders and
employees to do the right
thing
– encouraging organizations to take
responsibility and to make a difference
– helping lead a business to success

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 Ethical Behavior
• Is conduct in accordance with what a
person determines is right or wrong
• Is an action guided by a set of principles of
morality, such as:
– trust
– fairness
– responsibility
– integrity
– respect

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 Legal Behavior
• Is based on or authorized by law
• Is established by society to maintain order
and protect people and properties from
harm
• Must override personal ethics and morals
for the greater good
of upholding a justice
system

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 Unethical Behavior
• Can devastate any business or
organization
• Can hurt other people and organizations,
and in turn become very costly for the
business itself

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 Types of Unethical Behavior
• Include:
– discrimination
– workplace harassment
– confidentiality breaches
– unfair treatment of staff
– personal use of
company property
– inaccurate
maintenance of
records

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Reasons for Unethical Business Practices
• Include:
– low morale or lack of care
for company
– desire to succeed or
advance career
– extreme pressure to meet schedules and
deadlines
– unrealistic expectations set by upper
management
– inadequate training, background or
explanation of company policy
– desire to steal from or harm a company
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Effects of Unethical Business Practices
• On business:
– decreases profits and drops
stock value
– increases legal proceedings
• On employees:
– decreases loyalty and faith in company
– decreases employee morale and job
satisfaction
– decreases retirement benefits based on stock
• On consumers:
– decreases confidence in company
– increases prices
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Business Social Responsibilities
• Are duties and obligations
of businesses which
contribute to the
well-being of society
– for example:
• providing help to the poor
• promoting agricultural
sustainability
• supporting the field of education

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Ethical Decision Making Process
• Includes:
– defining the problem
– listing all possible alternatives and the
consequence of each
– selecting the best choice
– acting on the decision
– evaluating the decision

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 Step 1: Defining the Problem
• Includes:
– devising an accurate
problem definition
• exclude irrelevant and
unimportant information
– being as exact as possible
– ask questions, such as:
• What is the problem?
• What causes the problem?
• Who is involved?

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 Step 2: Listing All Alternatives &
Consequences
• Includes:
– creating a list of the
alternatives and
consequences of each
decision
• include at least three alternatives
– asking the following questions about each
alternative:
• Is it legal?
• Does it fit company values?
• Does it fit in my personal values?
• Who will be affected?
• How will it look from other’s point of view?
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Step 3: Selecting the Best Choice
• Includes:
– reviewing alternatives and consequences
– selecting the most appropriate alternative
based on the following:
• benefits the most people
• benefits the company
• maintains moral principles and values

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Step 4: Acting on your Decision
• Includes:
– being confident in the choice
– taking action

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Step 5: Evaluating the Decision
• Includes:
– reflecting on the decision and the implications
it has on the following:
• the company
• yourself
• others involved
– repeating the process
if it is not the best
decision

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 Agribusiness Ethics
• Involves choices for people engaged in
agriculture either directly as producers, or
indirectly as consumers
• Examples include:
– food production
and safety
– animal welfare
– environmental
protection
– sustainability

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 Food Production
• Presumes the necessity of providing
everyone with the means to obtain food
• Enables those who are unable to feed
themselves to receive food directly
– failure to do so is seen as an injustice and an
unethical act
• Includes:
– raising levels of nutrition
– improving the efficiency of the production and
distribution of food and agricultural products
– bettering the condition of rural populations
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 Food Safety
• Is handling, preparing and
storing food to prevent
contamination and
foodborne illnesses
• Includes the Food Safety
and Inspection Service (FSIS)
– public health agency accountable for ensuring
the country’s commercial supply of meat,
poultry and egg products are safe, nutritious
and correctly labeled and packaged
– provides information on food safety
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 Ethical Concerns in
Food Production & Safety
• Examples include:
– genetically modified foods
(GMOs)
– food additives
– antibiotic use
– pesticide and herbicide use

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Genetically Modified Foods (GMOs)
• Are food products produced
from organisms which have
been altered using genetic
engineering
techniques
• Advantages include:
– providing more nutritious foods
– creating insect resistance
– increasing environmental
protection

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Genetically Modified Foods (GMOs)
• Disadvantages include:
– allergic reactions
– decreased antibiotic efficiency

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 Food Additives
• Are substances added to
food during processing,
storage or packaging
• Must be disclosed to the
consumer
• Advantages include:
– providing nutrition
– keeping the product fresh
– making food more flavorful
and appealing

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 Food Additives
• Disadvantages include:
– allergic reactions
– long-term risks which are not fully understood

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 Antibiotic Use
• Is the appropriate use of
antibiotics in food animals
for the treatment, control
and prevention of certain
diseases
• Advantages include:
– decreasing animal illnesses
– increasing efficiency and
growth rate
– increasing production from limited feed
resources
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 Antibiotic Use
• Disadvantages include:
– long-term risks which are not fully understood
– drug resistant pathogens

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 Pesticide & Herbicide Use
• Plays an important role in
food production by protecting
food and crops from pests
and weeds
• Advantages include:
– producing larger crop yields
– increasing food production
– supplying wider food
selections at lower costs

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 Pesticide & Herbicide Use
• Disadvantages include:
– long-term risks which are not fully understood
– harmful to the environment if not administered
properly

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 Animal Welfare
• Is the well-being of animals; protecting
their physical and mental needs
• Includes standards which are under
constant review and are debated, created
and revised by animal welfare groups
• Is addressed by the Animal
Welfare Act of 1966
– regulates the treatment
of animals in research,
exhibition, transport
and by dealers
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Ethical Concerns in Animal Welfare
• Examples include:
– confinement
– genetic engineering/cloning
– transgenesis
– research

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 Confinement
• Is any structure of raising farm animals in
which the animals are kept from contact
with their surroundings
• Advantages include:
– increasing sanitary measures
– providing more consistent production at a
lower cost
– increasing disease
control

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 Confinement
• Disadvantages include:
– space restrictions for animal
– possible disease outbreaks

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 Genetic Engineering/Cloning
• Is a targeted and powerful method of
introducing necessary characteristics into
plants and animals using DNA technology
• Advantages include:
– developing new species of plants and animals
– increasing productivity
– enhancing food quality

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 Genetic Engineering/Cloning
• Disadvantages include:
– disturbance of biodiversity
– long-term statement

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 Transgenesis
• Is the relocation of
cloned genes into a
different breed or
species
• Advantages include:
– targeting specific traits
– increasing production
– providing humane welfare

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 Transgenesis
• Disadvantages include:
– changes in environmental cycles
– production of harmful compounds

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 Research
• Is the need to identify and manipulate
factors affecting disease resistance,
growth and other economically important
traits in plants and animals
• Advantages include:
– benefiting human health
– increasing knowledge
of plants and animals
– developing new
production techniques

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 Research
• Disadvantages include:
– animal welfare concerns
– costs

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 Environmental Protection
• Is the ethical commitment to protect and
maintain the natural environment
• Includes:
– treating plants, animals and humans with care
and respect
– having rigorous knowledge and respect for
nature
– having the highest
concern for quality of
the environment

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Ethical Concerns in the Environment
• Examples include:
– climate change
– animal waste
– industrial agriculture
– water pollution
– air pollution

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 Climate Change
• Is the change in weather patterns over an
extended period of time
• Can be caused by agricultural gas
emissions and land use

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 Climate Change Impact
• Examples include:
– productivity
• quantity and quality
– agricultural practices
• changes in water use (e.g., irrigation) and
agricultural applications (e.g. herbicides,
insecticides and fertilizers)

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 Climate Change Impact
• Examples include:
– environmental effects
• occurrence and amount of
soil drainage, soil erosion
and decline of crop diversity
– rural space
• loss and gain of cultivated
lands
– adaptation
• organisms becoming more or less competitive
(e.g., insect resistant plants)

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 Climate Change Management
• Includes:
– soil fertility management
– improved seed
– low-energy irrigation
– conservation tillage/
residue management
– improved fallow

Fallow: plowed farmland left unplanted for a period of time in order to

restore fertility
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 Animal Waste
• Can be a valuable resource, (e.g., plant
nutrients), if properly stored and managed
• Can also be a threat to air and water
quality

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 Animal Waste Impact
• Examples include:
– drinking water
• amount of nitrate in
ground water supply
can reach unhealthy
levels
– rivers and streams
• ammonia is highly toxic to fish
• blocking waterways
– environment
• methane and nitrous oxide release
• odor

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 Animal Waste Management
• Includes:
– manure management
– odor management
– precision feeding
– processing by-products

By-product: secondary product made in the manufacture of a primary

product
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 Industrial Agriculture
• Is characterized by a low fallow ratio and
higher use of crop and animal production

Low Fallow Ratio: smaller quantities of land left untouched

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 Industrial Agriculture Impact
• Examples include:
– environment
• pollution
• climate change
– human health
• antibiotic resistance
• air and water pollution
– rural communities
• degradation
• factory farms

Degradation: to break down

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 Industrial Agriculture Impact
• Examples Include:
– workers
• accidents or injuries
– animal welfare
• breeding and growth
• slaughter
• housing

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Industrial Agriculture Management
• Includes:
– rotate grazing
– rotating crops
– promoting small farms
– preventing erosion
– planting trees and gardens

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 Water Pollution
• Can occur in many different ways, such
as:
– animal waste deposits
– fertilizers and pesticides
– runoff from factories

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 Water Pollution Impact
• Examples include:
– aquatic habitats
• degradation
– drinking water
• chemicals from fertilizers
and pesticides can make
their way into groundwater
– diseases
• from eating contaminated seafood
– ecosystem destruction
• soil quality and erosion

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 Water Pollution Management
• Includes:
– promoting water efficiency
strategies
– ensuring waterways have
enough water to support
aquatic life
– establishing water quality
monitoring systems
– preventing soil runoff
– disposing of waste properly

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 Air Pollution
• Can be produced by
factory farms emitting
harmful gases and
particles
• Can contribute to
global warming
• Results from:
– overuse of machinery
– mismanagement of manure
– irresponsible feeding practices

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 Air Pollution Impact
• Examples include:
– higher temperatures
• greenhouse gases
which can be caused
by agriculture and
farming
– agricultural crops
• reduced growth and yield
– animals
• reduced production because of metabolic
changes

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 Air Pollution Management
• Includes:
– managing farm factory air emissions
– maintaining soil surface cover
– creating wind barriers
– limiting burning
– modifying equipment

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 Sustainability
• Is the manufacturing of food, fiber or other
plant or animal goods using farming
methods which protect the following:
– environment
– public health
– human communities
– animal welfare

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 Sustainable Agriculture
• Is a type of agriculture concentrated on
producing long-term crops and livestock
while having minimal effects on the
environment

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 Sustainability Advantages
• Include:
– preserving ecological system
– conserving water
– reducing use of fertilizers and pesticides
– promoting biodiversity in crops
– benefiting human health

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 Sustainability Disadvantages
• Include:
– reduced food production when compared to
industrialized agriculture
– conversion expenses
– lack of support
– costlier products

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 Sustainability
• Can be unethical if a
company exaggerates
or falsifies sustainability
practices
– companies may lie about
being a sustainable output source to
promote a good company image, but not
follow through with these practices due to
high costs

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 Resources
• Center for Ethics and Business at Loyola Marymount
University 2015 http://www.ethicsandbusiness.org
• E-center for Business Ethics at Colorado State University
2015 http://e-businessethics.com
• Ethics Resources Center 2015 http://ethics.org
• Markkula Center for Applied Ethics 2015
http://www.wcu.edu/ethics
• Ethics in Food and Agriculture 2015 http://www.fao.org
• Agriculture in the United States http://www.usda.gov

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 Acknowledgements
Production Coordinator
Stevi Huffaker

Graphics Designer
Melody Rowell

V.P. of Brand Management Executive Producer

Clayton Franklin © MMXV Gordon W. Davis, Ph.D.
CEV Multimedia, Ltd. 69