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Business Ethics

This document discusses business ethics and values. It defines business ethics as moral principles that guide behavior in a business setting. Some key values discussed include integrity, responsibility, respect, fairness, and excellence. The document also outlines factors that influence ethics, sources of ethics like religion and culture, and ethical issues in business regarding honesty, fair competition, compensation, and respecting rights. It emphasizes treating others the way you want to be treated and how values are important beliefs that shape attitudes and actions.

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100% found this document useful (1 vote)
1K views84 pages

Business Ethics

This document discusses business ethics and values. It defines business ethics as moral principles that guide behavior in a business setting. Some key values discussed include integrity, responsibility, respect, fairness, and excellence. The document also outlines factors that influence ethics, sources of ethics like religion and culture, and ethical issues in business regarding honesty, fair competition, compensation, and respecting rights. It emphasizes treating others the way you want to be treated and how values are important beliefs that shape attitudes and actions.

Uploaded by

thisisshruti
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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BUSINESS ETHICS

Moral principles of duty and virtue that prescribe


how we should behave;
behave the foundation of our
internal control.

Integrity
Responsibility
Respect
Fairness
Excellence
Objectives of Ethics

 Study of human behaviour and makes evaluative assessment


about that as moral or immoral.

 Establishes moral standards and norms of behaviour.

 Makes judgment upon human behavior based on these


standards and norms.

 Prescribes moral behaviour and makes recommendations


about how to or how not to behave.
Ethics will be different at
different levels
 At the basic level, it is about discipline, i.e.. to
maintain punctuality, coming to work on
time, behaving properly with superiors,
colleagues and subordinates and not wasting
time during working hours.

 At the top level, it is about commitment and


Protecting the interests of the organization.
Factors Influencing Ethics

Individual Organizational Environmental

o Values oTop Level Mgmt. oCompetition


o Work Philosophy
oEconomic
Background
oThe Firm’s Reward Conditions
o Family Status System
oSocial/Cultural
o Personality oJob Dimensions Institutions
Sources of Ethics

1. Genetic Inheritance : the qualities of goodness is a product of


genetic traits strengthened over time by the evolutionary process.
2. Religion : religious morality is clearly a primary focus in shaping our
societal ethics.
3. Cultural Experience : individual values are shaped in large measure
by the norms of the society.
4. The legal system : laws represent a rough approximation of
society’s ethical standards.
5. Codes of Conduct : three primary categories of codes, a) company
codes, b) company operating policies, c) codes of ethics.
Code of Ethics – American Marketing
Association
• Responsibilities of Marketer :
a) not to do harm knowingly,
b) to adhere all applicable laws and regulations,
c) the accurate representation of their education, training and
experience,

• Honesty and Fairness :


a) being honest in serving consumers, clients, employees, suppliers,
distributors and the public.
b) no knowingly participating in conflict of interest without prior notice
to all parties involved,
c) establishing equitable fee schedules including the payment or receipt
of usual, customary and/or legal compensation for marketing exchange.
Code of Ethics – American Marketing
Association

 Rights and Duties of parties :


a) products and service offered are safe and fit for their
intended use,
b) communications about offered product and services are
not deceptive,
c) all parties intend to discharge their obligations, financial
and otherwise, in good faith,
There is a big
difference Righ
ts
between what
you have a
right to do and
what is right to
•It’s not about what we say, or intend, nor
is it simply a written code or a framed
credo.
FAIRNESS
FAIRNESS
• Process
• Process
• Impartiality
• Impartiality
• Equity
• Equity

CARING
CARING
• The heart of ethics
• The heart of ethics
• It is scarcely possible to be
• It is scarcely possible to be
truly ethical and yet
truly ethical and yet
unconcerned with the
unconcerned with the
welfare of others
welfare of others

CITIZENSHIP
CITIZENSHIP
• Duties that prescribe how
• Duties that prescribe how
we ought to behave as part
we ought to behave as part
of a community.
of a community.
Foundations of Ethical
Behavior

 Treat others as you would be treated :-

 Respect

 Honesty

 Trust
Taught in All Cultures

Judaism: What you hate, do not do to anyone.


Islam: No one of you is a believer until he loves for his brother what he loves
for himself.
Hinduism: Do nothing to thy neighbor which thou wouldst not have him do to
thee.
Sikhism: Treat others as you would be treated yourself.
Buddhism: Hurt not others with that which pains thyself.
Confucius: What you do not want done to yourself, do not do to others.
Aristotle: We should behave to our friends as we wish our friends to behave to
us.
Plato: May I do to others as I would that they should do unto me.
TREAT PEOPLE THE WAY
YOU WANT THEM TO TREAT YOU
Ethical Issues Relating to
Business
 Honesty—communication and behavior consistent with facts
 Disclosure of information
 Promises/commitments
 Laws and professional standards
 Representation of others like shareholders
 Unfair competition
 Refrain from bribes and excessive gifts
 Comply with “anti-trust” laws
 Just compensation
 Respect intellectual property
 Treat employees fairly
 Respecting rights of others
 Treat others with fairness and respect regardless of age, religion, ethnic
group, sex, economic status, etc., especially children, women, and
subordinates
 Respect others and future generations by treating the environment well
Values are important beliefs
and desires that shape
attitudes and motivate
actions.

2000 Josephson Institute, Ethics in the Workplace


Values
 Values are general terms referring to those things which
people regard as good, bad, right, wrong, desirable, justifiable
etc.

 Business is driven by values.

 Managerial values are e.g. importance of good in organizations


(like productivity, profit maximisation, employee welfare,
industry leadership, organisational stability, organisational
efficiency, organisational growth, social welfare etc.), groups
within organisations ( like employees, customers, co-workers,
superiors, subordinates, stock-holders etc.) and the personal
goals of individuals.
Core Values
 Honesty Being straightforward, sincere, truthful, free of fraud,
deception or misrepresentation

 Respect To give particular attention to, show consideration for, or


hold in high or special regard
 Responsibility Moral Leaders take responsibility for their own
actions/failures . Involves a commitment to give a quality performance
and not making promises that cannot be kept, such as committing to
unrealistic delivery dates. Also calls for acknowledgment of implicit
commitments, such as the protection of confidences

 Fairness Involves a elimination (or at least a minimization) of one's


own feelings, prejudices and desires, so as to achieve a proper balance
of conflicting interests.
Relevance of Values in
1. Knowledge of business ethics will help managers in resolving ethical
Managersas they arise.
issues/dilemmas

2. Knowledge of values will help managers in setting highly responsible


tone for the organization - in individual judgments and decisions
whether ethical or not.

3. It helps manager to realize their social responsibility. Many


organizations find it wise to go beyond their primary mission and
take into the needs of the community. Business ethics make
managers more accountable for social responsibility.

4. Knowledge and awareness of the concept and practices of business


ethics is equally helpful to practicing managers in managerial
conduct and decision-making.
Types of Values
VALUES
TERMINAL INSTRUMENTAL

refers to desirable refers to preferable


end-states of modes of behavior, or
existence, the goals means of achieving
the terminal values.
that a person would
like to achieve
during his/her
lifetime.
Importance of Values
1. Values lay the foundation for the
understanding of attitudes and motivation
because they influence our perceptions.
2. Individuals enter organizations with notions of
what is right and wrong with which they
interpret behaviors or outcomes
3. Values generally influence attitudes and
behavior. Does your values match with your
Job/Organization? How you will react?
Professional Values
Serving with
Continual
Working competence
improvement of
within excellence
quality of service,
the laws efficiency
Respecting all
of India objectivity
stakeholders
impartiality

Ensuring
Ensuring Upholding
proper,
the means are transparency in
effective
as functioning while
use of
important as the respecting
company money
ends confidentiality
Ethical Values

Conserving, Resolving
public trust in official duties vs
the integrity, private interest
objectivity and conflicts
impartiality in favour of the
of government public interest

Taking
Acting at all times all decisions
in such a way as to in the
uphold the public interest
public trust
People Values

Exercising Demonstrating Leading by


authority respect, fairness participation,
and responsibility courtesy in all openness and
with dealings with citizens communication,
respect for and fellow with respect for
human dignity public servants diversity

Treating Fundamental in
people with Basing appointment recruitment
fairness and decisions on merit evaluation
civility at promotion
all times
Drivers of Values & Ethics
Performance
RESULTS

Leadership Achieving High


Levels of
Values and
People Ethics
Performance
Drivers Organizational Culture

Preventing and
Risk Assessment,Controls Managing
Values and
Standards Ethics Problems
The Three Pillars of High
Performance
Achieving high levels of positive values and ethics
performance for an organization involves three
foundation pillars:
Leadership
Organizational Culture
People Management

Achieving high levels of ethics and values performance


can lead to higher levels of public trust and confidence.
Shared Values

Integrity
Fairness
Doing the right thing when
(Safety & Trust)
no one is looking

Individual & Collective Respect and Appreciation


for the individual
Accountability
One’s expertise
To ourselves & our profession
One’s opinion
To each other
A person’s uniqueness
To management
Reciprocal generosity
To the Laboratory
-We encourage responsible &
informed risk taking (judgment)
Why Ethical Behavior Adds
Value
 Better information
 Trust from investors
 Better allocation of resources
 Customers will be more loyal

 Fair competition
 Lowers cost of business in economy
 Leads to better decision-making (do what’s best for
firm, not one individual)
 Improves competitive nature of a country’s economy
Why Ethical Behavior Adds
Value
 Just compensation
 Attracts and retains better employees

 Rights of others
 Draws upon talents of wider set of individuals
 Develops long-term respect from the community
 Maintains the environment for long-term value to all

 It’s the right thing to do!


Can Ethical Values be Taught?
Level 1: The Foundation

Personal
PersonalEthical
EthicalUnderstanding
Understanding
Right/wrong,
Right/wrong,Fairness,
Fairness,Honesty,
Honesty,Personal
PersonalIntegrity,
Integrity,Respect
Respectfor
forOthers
Others
Personal Ethical Understanding

 Concepts of right and wrong, fair play, respect


for rights of others, honesty, personal integrity

 Best learned in the home at an early age—and


follow-up is needed throughout life

 Institutions (churches, schools, etc.) can help


Level 2: Application to
Business

Application
Applicationof
ofEthics
Ethicsto
toBusiness
BusinessSituations
Situations
Fraudulent
FraudulentPractices,
Practices,Misleading
MisleadingAdvertising,
Advertising,Unfairness
Unfairness

Personal
PersonalEthical
EthicalUnderstanding
Understanding
Right/wrong,
Right/wrong,Fairness,
Fairness,Honesty,
Honesty,Personal
PersonalIntegrity,
Integrity,Respect
Respectfor
forOthers
Others
Application of Ethics to
Business Situations
 Fraudulent practices, misleading advertising,
unfairness
 Can be taught in management education and
organizations—provided students have a
personal understanding of ethics
 Can be reinforced by policies, codes of ethics,
training
Application of Ethics to
Business Situations

“Companies also have to further strengthen


ethics management and social responsibility
activities to improve their public image’’
Level 3: Ethical Courage

Ethical
EthicalCourage
Courage
Willingness
Willingnessto
toPay
Paythe
thePrice
Pricefor
forEthics
Ethics

Application
Applicationof
ofEthics
Ethicsto
toBusiness
BusinessSituations
Situations
Fraudulent
FraudulentPractices,
Practices,Misleading
MisleadingAdvertising,
Advertising,Unfairness
Unfairness

Personal
PersonalEthical
EthicalUnderstanding
Understanding
Right/wrong,
Right/wrong,Fairness,
Fairness,Honesty,
Honesty,Personal
PersonalIntegrity,
Integrity,Respect
Respectfor
forOthers
Others
Ethical Courage

 It is not sufficient to simply understand ethical


principles

 One must have the courage to pay a price for


being ethical

 Examples can be helpful—case studies showing


people willing to stand up for ethical principles
Level 4: Ethical Leadership

Ethical
EthicalLeadership
Leadership
Helping
HelpingOthers
Othersto
tobe
beEthical
Ethical

Ethical
EthicalCourage
Courage
Willingness
Willingnessto
toPay
Paythe
thePrice
Pricefor
forEthics
Ethics

Application
Applicationof
ofEthics
Ethicsto
toBusiness
BusinessSituations
Situations
Fraudulent
FraudulentPractices,
Practices,Misleading
MisleadingAdvertising,
Advertising,Unfairness
Unfairness

Personal
PersonalEthical
EthicalUnderstanding
Understanding
Right/wrong,
Right/wrong,Fairness,
Fairness,Honesty,
Honesty,Personal
PersonalIntegrity,
Integrity,Respect
Respectfor
forOthers
Others
Ethical Leadership

 The ability and willingness to encourage others


to behave ethically

 Includes
 Developing an organizational climate that fosters
ethical behavior
 Structuring policies that encourages ethics
 Behaving ethically while facing the pressures of
leadership
The Importance of Ethical
Leadership

Honest
HonestEmployees
Employees Dishonest
DishonestEmployees
Employees
Will
Willbe
beHonest
HonestAlways
Always Swing
SwingGroup
Group Policies
PoliciesWon’t
Won’tHelp
HelpMuch
Much
Could
CouldGo
GoEither
EitherWay
Way

Ethical Leadership will significantly impact an organization since the


vast majority, in this view, can be influenced to behave ethically.
Importance of Ethical
Leadership

Honest
HonestEmployees
Employees Dishonest
DishonestEmployees
Employees
Will
Willbe
beHonest
HonestAlways
Always Policies
PoliciesWon’t
Won’tHelp
HelpMuch
Much
Swing
SwingGroup
Group
Could
CouldGo
GoEither
EitherWay
Way

Strong Ethical Leadership—induces the group to behave as


if they were the honest employees.
Importance of Ethical
Leadership

Honest
HonestEmployees
Employees Dishonest
DishonestEmployees
Employees
Will
Willbe
beHonest
HonestAlways
Always Swing
SwingGroup
Group
Policies
PoliciesWon’t
Won’tHelp
HelpMuch
Much
Could
CouldGo
GoEither
EitherWay
Way

Weak Ethical Leadership—permits group to behave as if they were


the dishonest employees.
The work ethos is the prevalent outlook
towards work or the value system with regard
to the working environment and community’s
value system, whether it is of an individual or
a work group.
NEED AND IMPORTANCE OF BUSINESS
ETHICS
I. Protection of Consumer rights:
Consumer is the centre of all business activities. In fact, business is essentially meant for
satisfaction of consumer wants. Unfortunately, consumers are the most neglected and
exploited group. The application of business ethics will help to confer and implement
consumer rights. Business ethics can be used to check malpractices like adulteration, unfair
trade practices and to make the working of business consumer oriented.
II. Social Responsibility:
Business ethics is a means of making business socially responsible for its actions.
Exploitation of consumers, employees, discriminate use of natural resources, etc; is quite
common in all types of business. Compliance to ethical standards will ensure (a) protection of
consumer rights, (b) public accountability, (c) protection of worker’s interests, and (d) proper
utilization of natural resources.
III. Concept of Socialism:
The concept of socialism in business states that gains of a business must be shared
by all and just by the owner of business. Profit is a sing of business skill and talent. Profit is
also a result of group efforts. Employees, shareholders, consumers, Suppliers and others
contribute to the success of the business. Therefore, success should be shared by all concerned.
Contd……
IV..Consumer Movement:
The growth in consumer movement is also another important factor
that has necessitated the need for business ethics. The spread of
education and awareness among consumers about their rights has
made the business community to conduct business on ethical
principles.

V. Better Relations With the Society:


Business ethics is needed to develop good relations between business
and society. The relationship of business with society has various
dimensions such as its relations with shareholder, employees,
consumers, distributors, competitors and government. Business ethics
will help to promote and protect the interest to various groups.
CONCEPT OF BUSINESS ETHICS

1. Business Ethics towards Employees:


• Payment of right wages and salaries.
• Provision of proper facilities.
• Proper personnel policies relating to promotion, performance appraisal,
transfers etc;

2. Business Ethics Towards Customers:


• Right pricing.
• Ethical promotion including advertising.
• Provision of proper information about products etc.

3. Business Ethics Towards Competitors:


• Fair competitive practices.
• Restraining from instigating employees, suppliers or dealers or competitors
etc.
Contd…….
4. Business Ethics Towards Government:
• Timely filing returns and other records.
• Payment of proper dues including taxes.
• Supporting Government in social development activities, etc;

5. .Business Ethics Towards Suppliers:


• Proper supply contact.
• Timely payment of dues.

6. Business Ethics Towards Dealers:


• Timely delivery of products.
• Proper dealer’ contact.
Contd…..

7. Business Ethics Towards Shareholders or


Stakeholders:
• Provision of proper information.
• Timely payment of dividend.
• Restraining form insider trading on the stock
markets, etc;

8. Business Ethics Towards Financial Institutions:


• Proper information about firm’s financial position.
• Timely repayment of advances and interest, etc.
Ethics @ Workplace

 Ethics in the workplace in its simplest terms


means doing the right things that guide your
behavior at work.
On-the-Job Ethical Dilemmas

Telling the truth and


Situation in which
adhering to deeply felt
a business decision
ethical principles in
may be influenced
business decisions.
for personal gain.

Employee’s disclosure Businesspeople expect


of illegal, immoral, or employees to be loyal
unethical practices in and truthful, but ethical
the organization. conflicts may arise.
Golden Rules of Ethics @ Workp
lace

 Avoid Creating Disturbance


 Trust & Respect for Others Work
 Don’t Interfere In Others Work
 Respect the Privacy of your Co-workers
 Avoid Gender Biasness
 No/Least Personal Work During Work Hours
Five P’s of Ethical Decision-making

Purpose
Persistence

Pride
Perspective

Patience
Five P’s of Ethical Power

PURPOSE:
I see myself as being an ethically sound person.

I let my conscience be my guide.

N o matter what happens, I am always able to


face the mirror, look straight in the eye, and
feel good about myself.
Five P’s of Ethical Power
PRIDE:
I feel good about myself.

I don’t need the acceptance of other people


to feel important.

A balanced self-esteem keeps my ego


and my desire to be accepted from
influencing my decisions.
Five P’s of Ethical Power

PATIENCE:
I believe that things will eventually work out well.

I don’t need everything to happen right now.

I am at peace with what comes my way!


Five P’s of Ethical Power

PERSISTENCE:
I stick to my purpose, especially when it
seems inconvenient to do so.

My behaviour is consistent with my intentions.

As Winston Churchill said,


“Never! Never! Never! Never! Give up!”
Five P’s of Ethical Power

PERSPECTIVE:
I take time to enter each day quietly
in a mood of self-reflection.

This helps me to get myself focused and


allows me to listen to my inner self and
to see things more clearly.
Decision-Making

 Ethical decision-making involves the ability to separate


right from wrong along with the commitment to do
what is right

 Decision-Maker’s Personal Moral Philosophy (Moral philosophy


involves systematizing, defending, and recommending
concepts of right and wrong behavior)
Ethical Decision Making
Process
1 Recognizing a Problem & Define the problem
2 Identify the underlying principles, legislation
and policies
3 Identify and consider the options
4 Choosing a Solution
5 Implementation
6 Evaluating the Solution
Define the problem
Gather as much information as you can that will illuminate
the situation. In doing so, it is important to be as specific
and objective as possible. Writing ideas on paper may
help you gain clarity. Outline the facts, separating out
assumptions, hypotheses, or suspicions. There are several
questions you can ask yourself:
 What is difficult about the situation?
 What other factors are involved (e.g. whole of
government policy)?
 Who else is involved and what are their points of view on
the matter? Is there a need to work cooperatively?
 What effect does your behaviour have on them
Identify the underlying
principles
After you have clarified the problem, refer to the Code of Ethics to see if the
issue is addressed there. If there is an applicable standard or several
standards and they are specific and clear, following the course of action
indicated should lead to a resolution of the problem. To be able to apply
the ethical standards, it is essential that you have read them carefully and
that you understand their implications.
If the problem is more complex and a resolution does not seem apparent, then
you probably have a true ethical dilemma and need to proceed with further
steps in the ethical decision making process. The following area can help to
understand the Underlying Principles

 Do your personal interests conflict, or reasonably appear to conflict, with


the public interest?
 What are your duties as a public sector employee?
 Does the Code of Conduct require you to behave in a certain way?
 Is there a relevant guideline, determination or policy?
 Are there any legal implications? Where necessary, seek legal advice.
Identify and consider the
options
List all alternative options. For each option apply risk
management principles to identify the impact on
different stakeholders, the legal implications and the
relevant principles of the Code of Conduct.
For decisions that could have a large impact, or if you
are still unsure as to the preferred action, get a
second opinion from an independent, trusted
person.
Where necessary, seek advice from manager,
organisation’s human resources unit or ethics
advisor, or other agencies.
Choosing a Solution
Considering the information you have gathered and the priorities you
have set, evaluate each option and assess the potential consequences
for all the parties involved. Ponder the implications of each course of
action for the client, for others who will be effected, and for yourself
as a counsellor. Eliminate the options that clearly do not give the
desired results or cause even more problematic consequences.
Review the remaining options to determine which option or
combination of options best fits the situation and addresses the
priorities you have identified.
 What would your family or chief executive say if your actions were
reported on the front page of a newspaper?
 How will this decision be viewed by future generations?
 Would you be happy if this action was performed on you?
Implementation
 Create a detailed, step-by-step plan for implementing the
solutions you choose
 Who will do what, when, how?

This should include a means of evaluating the solutions


effectiveness by following ways
 Your choice of action must be within the legislation,
policies and guidelines both for your organisation and the
whole of government.
 Your behaviour must reflect the Code of Conduct.
 You must be able to justify your course of action.
Evaluating the Solution
This is done after the solution has been implemented and
involves comparing the results of what happened to
what you expected to happen.

In addition, you would want to consider what you might do


differently if the situation were to occur again.
Benefits of Ethics
The list of potential benefits:

 Fostering a more satisfying and productive working


environment
 Building and sustaining Organisation reputation
 Maintaining the trust of staff to ensure continued self-
regulation
 Providing ethical guidance for employees prior to making
difficult decisions
 Increased employee loyalty, higher commitment and morale as
well as lower staff turnover
 Reputation benefits (customers and suppliers)
 More open and innovative culture
 Generation of good-will in the communities in which the
business operates
HOW ORGANIZATIONS SHAPE ETHICAL CONDUCT
 Ethical Awareness
Code of Conduct Formal statement that defines how the organization expects and
requires employees to resolve ethical questions.

 Ethical Reasoning
Codes of conduct cannot detail a solution for every ethical situation, so corporations
provide training in ethical reasoning.

 Ethical Action
Helping employees recognize and reason through ethical problems and turning them
into ethical actions.

 Ethical Leadership
Executives must demonstrate ethical behavior in their actions.
Personal Traits

Three personal traits act as moderators of an


individuals personal values in decision making
activities. They are
 Ego strength
 Field dependence and
 Locus of control
Ego Strength

Ego strength is actually another term for self-


confidences. Ego strength is associated with
personal beliefs.
A person with high ego strength would be
expected to rely more on his own personal
values and beliefs of what is right and what is
wrong and be less influenced by others.
Field dependence

The tendency to rely on oneself or the field as the


primary referent for behavior is field dependence.
People who have a tendency to rely on self as a
primary referent for their behavior are field-
independent people.
They are relatively cold and distant in relations with
others, and more able to separate themselves from
others and the environment. However, they have
greater accuracy in personal perception, have a
more articulated body concept, and have higher
restructuring ability.
Locus of Control
The degree to which people believe they are masters of their own
fate.

Internals (Internal locus of control)


Individuals who believe that they control what happens to them.

Externals (External locus of control)


Individuals who believe that what happens to them is controlled
by outside forces such as luck or chance.
Morality
Morality can be explained in all these ways:

 Morality can be defined as the standards that an


individual or a group has about what is right and wrong,
or good and evil.
 Moral quality or character; rightness or wrongness, as of
an action; the character of being in accord with the
principles or standards of right conduct.
 Morality is an informal public system applying to all
rational persons, governing behavior that affects others,
and has the lessening of evil or harm as its goal.
Stages of Moral Development

There are six stages of moral development and an


individual develops sequentially through the stages.
 Stage one: actions that avoid punishment.
 Stage two: actions that serve one‘s needs
 Stage three: actions that gain approval from others;
 Stage four: actions that abide laws and authority;
 Stage Five: actions taken to abide by social contracts
and
 Stage six actions supported by universal principles.
All six stages provide a rational moral Action
Moral Judgments
The Moral judgments should be
(i) logical, ( Moral judgments should be able to support our
Moral judgments with reason and evidence. )
(ii) based on facts. ( Moral judgments should be based on
facts. Adequate moral judgments cannot be made in a
vacuum. We must collect as much relevant information as
possible for making them.)
(iii) based on acceptable moral principles.
Global Ethical Issues
Wages and hours

Child labour

Discrimination

Legal and ethical business practices

Product safety and quality

Environment
What causes unethical
behaviour
 Stress

 Confusion

 Pressure to perform at expected levels

 Competition within the industry

 No knowledge
Some of the Unethical
Business practices are :
 Cutting corners on quality
 Covering up incidents
 Abusing or lying
 Lying customers
 Stealing from the company
 Taking credits from co-workers ideas/work
 Taking or giving bribe
Unethical business practices
(contd)

 Government corruption
 Financial scandals
 Product safety
 Discrimination
“What’s in it for me to be
ethical?”
A more accurate perception of the world around you, follow your
-
conscience.

-Have the courage to do what is right and do try new things even
when it is hard or costly.

-Don’t loose heart if you fail or don’t get what you want

-A stronger personality, and greater likelihood of being happy in life


CONSIDER CONSEQUENCES
 IS IT ETHICAL ? Is it fair ?

 IS IT LEGAL ? Does it hurt anyone ?

 IS IT OK ? Have I been honest with


those affected?
 IS IT RIGHT ?
Can my conscience live
with this decision ?
5 Part Structure of Business
Ethics

 Specifications of moral judgment


 Moral judgments and moral standards
 Justification of moral judgement
 Logical reasoning and moral judgement
 Moral judgement and moral responsibility
ETHICAL RELATIVISM

The theory that suggest what is right is


determined by what a culture or society says
what is right.
CONCLUSION

In the last few years we have seen a drastic


change in society as well as in all facets of the
business world. The consumer, today, is more
aware of his rights and his requirements. He
demands the best quality at the regular prices.
Companies today need to incorporate a strong or
responsible culture to face the instance reaction
of the consumer.

Today’s market calls for stringent business ethics


to be imposed in the corporate world.
Which Way Will Your
Organization Swing?
“Good Ethics Means
Good Business”

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