•Introduction- Ethics•Ethics in business•Business ethics and social responsibilities• Ethical Dilemma and Cases
“ Ethics has to do with what my feelings tell me is right or wrong.”“ Ethics has to do with my religious beliefs.”“ Being ethical is doing what law requires.”Ethics consists of the standards of behavior our society accepts.
Ethics is …. ◦ Not just feelings or conscience ◦ Not the same as religion ◦ Not just following the law ◦ Not following “what everybody does” ◦ Not technology or science – what can be done
In simple words it defines “The rules and principlesthat define right and wrong conduct”Ethics refers to well-founded standards of right andwrong that prescribe what humans ought to do.
It is the study of standards of business behavior which promote human welfare and the good.Ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass.
Ethics can be thought about ◦ how we act as individual ◦ How we structure our organization and their work ◦ How we structure our society, our laws , our systems
Utilitarian Model ◦ Ethical decisions are made on the basic of their outcomes or consequences Moral Rights Model ◦ respects and protects individual liberties and privileges Justice Model ◦ managers impose and enforce rules fairly and impartially
Recognize an ethical issue or situation Get the facts Evaluate alternative actions Make a decision and test it Act and reflect on the outcome
◦ “Good ethics is good business. Non- corporation with the evil is as much a duty as is co-operation with good “ Mahatma Gandhi◦ “Price is what you pay. Value is what you get “ Warren Buffet
1. Hire individuals with high ethical standards.2. Establish codes of ethics and decision rules.3. Lead by example.4. Provide ethics training.5. Conduct social audits.6. Provide support for individuals facing ethical dilemmas.
Develop a code of ethics as a guide in handling ethical dilemmas in decision making. Communicate the code regularly to all employees. Have all levels of management continually reaffirm the importance of the ethics code and the organization’s commitment to the code. Publicly reprimand and consistently discipline those who break the code.
Managers must provide a good role model by: ◦ Being ethical and honest at all times. ◦ Telling the truth; don’t hide or manipulate information. ◦ Admitting failure and not trying to cover it up. ◦ Communicating shared ethical values to employees through symbols, stories, and slogans. ◦ Rewarding employees who behave ethically and punish those who do not. ◦ Protecting employees who bring to light unethical behaviors or raise ethical issues.
1. Developing codes of Ethics.2. Resolving Ethical Dilemma and making ethical decision.3. Assessing and cultivating ethical culture.4. Ethics Training.
Managerial Ethics and CorporateSocial Responsibility
Domain of Domain of Domain of Codified Law Ethics Free Choice(Legal Standard) (Social Standard) (Personal Standard) Amount of Explicit ControlHigh Low
What is social responsibilityof an organization Organization is a Social-technical System Social System -Consists of Individual who are member of society and the interpersonal relation among them Technical System ◦ Consists of techniques, activities, process and methods to procure ,input and convert to output
What is social responsibilityof an organization Old concept ◦ To make profit New concept/ Modern concept -to conduct business transaction in a society. -to fulfill the demand and supply in a society. -Thus it has been thought as consumer oriented entity.
A situation that arises when all alternative choices or behaviors have been deemed undesirable because of potentially negative ethical consequences, making it difficult to distinguish right from wrong.
Your company has a firm policy regarding cases of theft of company property. Used company equipment is on a table to be sold by bid each month. You see a valued employee who is 2 months from retirement slip an electric drill from the table and put it in his car before the day of the sale. What so you do?
You are Account Manger in you r office. YourDistrict Manager enters your office and asks youfor a check for Rs. 10,000 for expenses he tellsyou he incurred entertaining a client last night.He submits receipts from a restaurant andlounge. At lunch your supervisor’s girlfriendstops by to pick him up for lunch and youoverhear her telling the receptionist what a greattime she had at dinner and dancing with yoursupervisor the night before. What do you do?
Suppose, you are a real state businessman. A young boy from Bhaktapur calls you to list her deceased parent’s home in Liberty. He is not sure what it is worth, but says he will be happy to get Rs. 5,000,000 for the home. You look at the home and feel it is worth at least Rs. 8,000,000. What do you do?