BUSINESSENVIRONMENTBUSINESS ETHICS
BUSINESS ETHICS Definitions:   The term ‘ethics’ is generally used to refer to    the rules or principles that define ri...
BUSINESS ETHICS “Business ethics is concerned with truth and  justice and has a variety of aspects such as the  expectati...
BUSINESS ETHICS   Theodore and James Weber suggested three ways for    applying and integrating ethical concepts with dai...
Types of Managerial Ethics   Archie B. Carroll, an eminent researcher in the area    of social responsibility, identified...
Types of Managerial Ethics   Moral management strives to follow ethical principles and    doctrines. Moral managers striv...
Amoral management   This approach is neither immoral nor moral. It    simply ignores ethical considerations. Amoral    ma...
Immoral management   Immoral management not only ignores ethical concerns, it also    actively opposes ethical behavior. ...
Types of Managerial Ethics
Factors that Influence EthicalBehavior
Stages of Moral Development
Implications of six stages   The following conclusions can be drawn from the    study of the six stages of moral developm...
Best Practices in Ethics andCompliance Risk Assessment—create priorities; words  and actions always consistent Value-bas...
The Ethical Organization1.   Clear Set of Values2.   Open and Effective Communication of     Values3.   Leaders Exhibit th...
Ethical Guidelines forManagers Obeying the law Tell the truth Uphold human dignity Adhere to the golden rule Allow ro...
Ethics committee   Ethics committees perform the following functions:   Organizing regular meetings to discuss ethical  ...
Ethics audits   Ethics audits involve the systematic    assessment of the adherence of employees    to the ethical polici...
Benefits of Managing Ethicsin the Workplace   Attention to business ethics has substantially    improved society.   Ethi...
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Business ethics

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Business ethics

  1. 1. BUSINESSENVIRONMENTBUSINESS ETHICS
  2. 2. BUSINESS ETHICS Definitions: The term ‘ethics’ is generally used to refer to the rules or principles that define right and wrong conduct. In Webster’s Dictionary, ethics is defined as “the discipline dealing with what is good & bad and with moral duty and obligation.”
  3. 3. BUSINESS ETHICS “Business ethics is concerned with truth and justice and has a variety of aspects such as the expectations of society, fair competition, advertising, public relations, social responsibilities, consumer autonomy, and corporate behavior in the home country as well as abroad.” -Clarence D. Walton
  4. 4. BUSINESS ETHICS Theodore and James Weber suggested three ways for applying and integrating ethical concepts with daily actions 1) Establishing a company policy regarding ethical behavior or developing a code of ethics (2) Appointing an ethics committee to resolve ethical issues, and (3) Teaching ethics in management development programs
  5. 5. Types of Managerial Ethics Archie B. Carroll, an eminent researcher in the area of social responsibility, identified three types of management, depending on the extent to which their decisions were ethical or moral: Moral management Amoral management Immoral management
  6. 6. Types of Managerial Ethics Moral management strives to follow ethical principles and doctrines. Moral managers strive to succeed without violating ethical standards. They seek to succeed while remaining within the bounds of fairness and justice. Such managers undertake activities which ensure that even though they engage in legal and ethical behavior, they continue to make a profit.
  7. 7. Amoral management This approach is neither immoral nor moral. It simply ignores ethical considerations. Amoral management is broadly categorized into two types. Intentional and Unintentional.
  8. 8. Immoral management Immoral management not only ignores ethical concerns, it also actively opposes ethical behavior. Organizations with immoral management are characterized by: Total concern for company profits only. Stress on profits and company success at any cost. Lack of empathy – managers are hardly bothered about others’ desire to be treated fairly. Laws are regarded as hurdles to be removed or eliminated. Strong inclination to minimize expenditure. The basic principle governing immoral management is: “Can we make money with this action, decision, or behavior?” Thus, in immoral management, ethical considerations are immaterial.
  9. 9. Types of Managerial Ethics
  10. 10. Factors that Influence EthicalBehavior
  11. 11. Stages of Moral Development
  12. 12. Implications of six stages The following conclusions can be drawn from the study of the six stages of moral development of managers: Individuals move up these stages in a sequential manner. The moral development of an individual may stop at any stage. Most managers are at Stage 4 of moral development.
  13. 13. Best Practices in Ethics andCompliance Risk Assessment—create priorities; words and actions always consistent Value-based, compliance-supported materials and activities On-going, highly interactive, work group- based education and training Everyone held accountable—rewards and punishment are made transparent
  14. 14. The Ethical Organization1. Clear Set of Values2. Open and Effective Communication of Values3. Leaders Exhibit the Values4. Values embodied in policies and procedures5. Open dialogue about value decisions6. Accountability: everyone held to these values7. Consistency: words and actions in sync
  15. 15. Ethical Guidelines forManagers Obeying the law Tell the truth Uphold human dignity Adhere to the golden rule Allow room for participation Always act when you have responsibility Build a ethical culture by example setting
  16. 16. Ethics committee Ethics committees perform the following functions: Organizing regular meetings to discuss ethical issues. Communicating the code to all members of the organization. Identifying possible violations of the code. Enforcing the code. Rewarding ethical behavior and punishing those who violate the organization’s code of ethics. Reviewing and updating the code of ethics. Reporting the activities of the committee to the board of directors.
  17. 17. Ethics audits Ethics audits involve the systematic assessment of the adherence of employees to the ethical policies of the organization. They aid in better understanding of the policies and also identify the deviations in conduct that require corrective action.
  18. 18. Benefits of Managing Ethicsin the Workplace Attention to business ethics has substantially improved society. Ethics programs help avoid criminal acts “of omission” and can lower fines. Ethics programs cultivate strong teamwork and productivity. Ethics programs promote a strong public image.
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