Business Ethics
Business Ethics
Integrity
Responsibility
Respect
Fairness
Excellence
Objectives of Ethics
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
Respect
Honesty
Trust
Taught in All Cultures
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
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
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
Integrity
Fairness
Doing the right thing when
(Safety & Trust)
no one is looking
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
Personal
PersonalEthical
EthicalUnderstanding
Understanding
Right/wrong,
Right/wrong,Fairness,
Fairness,Honesty,
Honesty,Personal
PersonalIntegrity,
Integrity,Respect
Respectfor
forOthers
Others
Personal Ethical Understanding
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
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
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
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
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
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
Purpose
Persistence
Pride
Perspective
Patience
Five P’s of Ethical Power
PURPOSE:
I see myself as being an ethically sound person.
PATIENCE:
I believe that things will eventually work out well.
PERSISTENCE:
I stick to my purpose, especially when it
seems inconvenient to do so.
PERSPECTIVE:
I take time to enter each day quietly
in a mood of self-reflection.
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
Child labour
Discrimination
Environment
What causes unethical
behaviour
Stress
Confusion
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