bss ethics

1. THE ETHICAL DIMENSION
OF BUSINESS
CHAPTER 4 1BUSINESS ETHICS
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2. LEARNING OBJECTIVES
At the end of this chapter students will be able to
discuss and illustrate the:
1. Major domains of economic activities
2. Characteristics of each domain of economic
activities
3. Relationships that exist between each domain
4. Application of business ethics in each domain
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3. INTRODUCTION
In unravelling the myths outlined in the previous
chapter we saw how business cannot survive without
ethics
This is demonstrated in relation to the three domains
of economic activity distinguished earlier,
1. The Macro Economic Dimension,
2. The Meso Economic Dimension
3. The Micro Economic dimensions.
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4. THE MACRO DIMENSION:
ECONOMICS AND ETHICS
The macro dimension of economics deals
with the economic systems and macro-
economic strategies within which
business activities operate
The origins of both capitalism and
socialism can be traced back to ethical
concerns.
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5. CAPITALISM
 Capitalism, or the tradition of the free market economy,
 Is generally associated with Adam Smith,
 Find a way to better the human lot through greater economic
prosperity.
 He concluded that the key to economic prosperity lay in the
amount of state interference in the economy. The countries with
lesser state interference in the economy performed better than
those countries in which there was greater state interference
 He proposed that macro-economic strategies that emphasize
private initiative and that curb state interference in the economy
are those that best serve the interests of society
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6. SOCIALISM
the tradition of the centrally planned economy
Is associated with the name of Karl Marx
Concern for the lives of ordinary workers
His remedy for this situation was the so-called
classless society with its socialist form of production.
This alternative, he believed, would better serve the
human condition and would create conditions in
which individuals would be able to fulfil their true
potential
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7. THE MESO DIMENSION:
BUSINESS AND SOCIETY
 What is true with regard to the macro dimension of economics
also applies to the meso dimension that concerns itself with the
relationship between business and society
 Business never exists in isolation. It is always embedded in a
wide web of relationships. It constantly affects and is affected by
others
 Ethics plays an essential role in relations between business and
society
 Ethics is implied in business
 Ethics confers legitimacy
 Business survival and success depends on ethics
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8. ETHICS IS IMPLIED IN
BUSINESS
A business needs to serve the needs or interests
of those outside the confines of the business.
In this way ethics, which is premised on
consideration for the interests of others, is
ingrained in the very idea of business
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9. ETHICS CONFERS LEGITIMACY
A legitimate business can be defined as an
enterprise that makes profit by providing
goods and services in such a way that it
respects the interests of society. It therefore
does not surprise that businesses are often
referred to as corporate citizens and are
required to act as such.
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10. BUSINESS SURVIVALAND
SUCCESS DEPENDS ON ETHICS
Business has a role to play in maintaining and
bolstering the social fabric of society.
It benefits from an effective regulatory
framework, a decent infrastructure, a well-
educated population, and a safe natural
environment. It makes sense for business to
play its part in maintaining these things
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11. THE MICRO DIMENSION:
WORK AND ETHICS
For most people work occurs within a
specific organization and the business
practices of that organization affect their
lives. The ethical nature of work is firstly
evident in the
The co-operative nature of work
The impact of work on people
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12. THE CO-OPERATIVE
NATURE OF WORK
Working within a business means working
with other people. This is true for even the
smallest of businesses. It is true even of the
one-person business that starts up with no
outside funding.
That one-person business will still find itself in
a relationship with at least one supplier and/or
client.
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13. THE IMPACT OF WORK ON PEOPLE
There is even a more profound sense in which ethics
and work are entwined. This has to do with the
impact of work on people: people not only produce
work; work also produces people
 The objective meaning: Refers to what work produces.
Work can produce a product or a service for a business and
produce an income for the employee or a profit for the
business.
 The subjective meaning of work can differ from person to
person. Many do it because they have to earn an income.
Some do it for the prestige it awards.
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14. CONCLUSION
The moral dimension of work places a huge
responsibility on employers and managers.
In situations of high unemployment, people are
forced to take whatever work is available, without
being awarded the luxury of deciding whether it
really fits them or whether it will be challenging.
People might find themselves in jobs that are
uninteresting, repetitive, and depressing – without
being in a position to change anything about them.
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