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Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
Notes be module 2
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  • 1. NotesModule 2Business EthicsIntroductionPeople need some sort of a moral guide through life. Many may think that they can get by without onebut chances are that they are egoists and do have a principle which is guiding them. If it makes me feelgood, if it makes me happy, if I like it and can live with it then it is all right for me to do it. That may seemlike an attractive principle by which we can make decisions until one starts to think about it. As a guidefor all people that principle would lead and does lead to many conflicts. What is needed in a moral codeis something that will enable humans to live with one another in an order rather than in chaos of self-interested action. A persons Ethics is the moral standard that a person uses in choices of what is Rightor Wrong. Not all choices are ethical ones.What is 2 +2 is not an ethical issue. Nor is the answer to the question. Or what is the speed of light?Many solutions are known or can be tested through an accepted formalized logical system such asmathematics or scientific methods. Derived from the Greek word ethos which means character likewiseethics is Our Character. It is how we judge our and others choices regarding behavior to one another.Ethics applies to social action, the correctness of which can be tested only by knowing the standard thatis applied. Ethics also applies to Choice, so the absence of any ability or opportunity to make a choiceargues that behavior that is compelled or made in ignorance may not fit the notion of ethical behavior.Although we may not be aware of them, when we make choices there are competing standards orethical perspectives that govern peoples behaviorQ. Describe the categories of ethical perspectives? (2 marks)The categories of ethical perspectives are:• Egoism or self interest - the standard is my interests• Social relativism - the standard is the interest of my friends, group, or community• Cultural relativism - the standard is my cultural or legal system of values• Utilitarianism - the standard is Most People or experience with consequences• Deontology - the standard is an obligation to do the "right" thingQ. What is egoism?(2 marks)Egoism or self-interest ethics assumes that individuals or businesses have an obligation to guide theirconduct by a rational calculation of ones own interests.
  • 2. Conduct is Right when it advances personal interests. This is not Greed because greed shows Excess ordemanding more than one is entitled to. Egoism assumes that there is no Entitlement, others also haveinterests, and interests can and should compete. No one is more deserving than another. Egoism makesno assumption that one persons interests are in any way Superior. Indeed, at the basis of thisperspective is the view that all people are Equal, Free and should enjoy the unrestrained liberty topursue self-interests.Q. What is social group relativism? (2 marks)Social group relativism is a view that assesses what is a proper conduct by understanding what our socialgroup expects of us. While the term relativism has come to imply that anything goes, here the termsimply means that standards of conduct in our personal life and in business are governed by theexpectations of others on our behavior.Q.What is cultural relativism? (2 marks)In the cultural relativism perspective the ethical standard is culture which is not universal nor is it fixedand has widely shared values. They are formalized into law when compliance is especially important tosociety. For Example, the right to vote, however, is a core value that has progressively becomeformalized into the legal system. If someone attempted to obstruct the exercise of this value, thisconduct would be seen not only unethical, but also illegal.Q. What is Utilitarian view? (2 marks)Utilitarianism sometimes called Situational Ethics is of competing obligations that are prioritized bysome contextual standards. The Right thing to do depend not so much on an ethical standard but on anappraisal of the situation, the alternative courses of act available and the consequences of the choicesavailable.Q. What is deontology ? (2 marks)To many religious people this will sound like Theology, but deontology as a field of ethics attempts toforge a concept of Right that is more universal than a religion. Each of these categories identifies adifferent kind of standard for making choices, and refers to some interest that is valued or preferred.The implication of this is that most ethical choices benefit someone or satisfy some interests that YOUhave. We may not share the same interest or preference, so there can be a temptation to judge othersethical choices as Wrong. The exercise here is not to judge, but this is not an argument for what some-call situational in ethics. Ethical behavior may or may not differ with circumstances but since decisionsoften are made on the basis of an ethic perspective it is useful to understand how we discriminatebetween the Right and the wrong.Questions on Philosophy of ethicsRealism and anti-realism Philosophical theories on the nature and origin of morality i.e.., theories ofmeta-ethics are broadly divided into two classes:
  • 3. • Moral realism is the class of such theories which hold that there are true moral statements that reportobjective moral facts. Example, while they might concede that forces of social conformity significantlyshape individuals Moral decisions, they deny that those cultural norms and customs define the morallyright behavior.• Moral anti-realism on the other hand, holds that moral statements which either fail or do not evenattempt to report objective moral facts. Instead, they hold that morality is derived either from anunsupported belief that there are objective moral facts. The moral relativist holds that there is nocorrect definition of right behavior, and that morality can only be judged with respect to the standardsof particular belief systems and socio-historical contexts. The Kantian theory considers the origin ormorals and morality and concludes that reason is the final authority for morality. Blind beliefs or ritualscannot be the foundations for morality. He emphasized that the basics of ethics are those actions thatare taken by a sense of duty and dictated by reason are moral.Q. Elaborate on Anthropological perspective (2 marks)The perspective of tribal and territorial moralities characterizes the latter as predominantly negative andproscriptive. It defines a persons territory, including his or her property and dependents, which is not tobe damaged or interfered with. Apart from these proscriptions, territorial morality is permissive,allowing the individual whatever behavior does not interfere with the territory of another. By contrast, tribal morality is prescriptive, imposing the norms of the collective on the individual. Thesenorms will be arbitrary and culturally dependent as well as flexible whereas territorial morality aims atrules which are universal and absolute. Through In-group and Out-group, some observers hold that individuals apply distinct sets of moral rulesto people depending on their membership of an In-Group (individuals and those who believe to be ofthe same culture or race) or an Out-Group (people not entitled to be treated according to the samerules. Some biologists, anthropologists and evolutionary psychologists believe this In-group/Out-groupdiscrimination has evolved because it enhances group survival.It is also argued that nationalism and patriotism are forms of this In-group/ Out-group boundary.Peterson and Seligman approach the anthropological view looking across cultures, geo-cultural areasand across millennia, i.e.. through comparing cultures. They conclude that certain virtues have prevailedin all cultures they examined. The major virtues they identified include wisdom I knowledge, courage,humanity, justice, temperance, and transcendence. Each of these include several divisions. For instancehumanity includes love, kindness, and social intelligenceQ. Explain the Evolutionary Perspectives (8 marks)The development of modern morality is a process closely tied to the Socio-cultural evolution of differentpeople of humanity. Some evolutionary biologists, particularly socio-biologists, believe that morality is a
  • 4. product of evolutionary forces acting at an individual level and also at the group level through groupselection, though to what degree this actually occurs is a controversial topic in evolutionary theory.Some socio-biologists contend that the set of behaviors that constitute morality evolved largely becausethey provided possible survival and/or reproductive benefits i.e. increased evolutionary success.Humans consequently evolved "pro-social" emotions, such as feelings of empathy or guilt, in responseto these moral behaviors.Here it is found that morality is not absolute, but relative and constitutes a set of behaviors thatencourage human cooperation based on their ideology to get ideological unity. Biologists contend thatall social animals modify their behaviors by restraining selfishness in order to make group livingworthwhile. Human morality though sophisticated and complex is relative and is essentially a naturalphenomenon that evolves to restrict excessive individualism and foster human cooperation. On thisview, moral codes are ultimately founded on emotional instincts and intuitions that were selected for inthe past because they aided survival and reproduction. The phenomenon of Reciprocity in nature is seenby evolutionary biologists as one way to begin to understand human morality. Its function is typically toensure a reliable supply of essential resources, especially for animals living in a habitat where foodquantity or quality fluctuates unpredictably.Q. Explain the Neuroscientific Perspectives (2 marks)Here we see Mirror neurons which are neurons in the brain that fire when another person is observeddoing a certain action. The neurons fire in imitation of the action being observed, causing the samemuscles to act minutely in the observer as are acting grossly in the person actually performing theaction. They have a role to play not only in action understanding, but also in emotion sharing empathy.The inability to feel empathy is one of the defining characteristics of psychopathy. Also neuro-imagingand stimulation show the explicit making of moral right and wrong judgments coincides with activationwhile intuitive reactions to situations containing implicit moral issues. Stimulation shows the change inmoral judgments of human subjects. Q. Explain the Psychological Perspectives (2 marks)In modern moral psychology, morality is considered to change through personal development. Anumber of psychologists have produced theories on the development of morals, usually going throughstages of different morals. To a few theorists, morality forms in a series Of constructive stages ordomains. Social psychologists emphasize social and emotional development based on biology, such asempathy. Moral identity theorists, see moral commitment as arising from the development of a self-identity that is defined by moral purposes. This moral self-identity leads to a sense of responsibility topursue such purposes. Of historical interest in psychology are the theories which believe that moraldevelopment is the product of aspects of the super-ego as guilt-shame avoidance.
  • 5. Q. Explain Teleology (12 marks)Teleology and ethics are connected in business ethics to assess the individual and organisationalbehavior. Teleological moral systems are characterized primarily by a focus on the consequences whichany action might have, for that reason, they are often referred to as consequentalist moral system.Thus, in order to make correct moral choices, we need to have some understanding of what will resultfrom our choices. When we make choices which result in the correct consequences, then we are actingmorally, when we make choices which result in the incorrect consequences, then we are actingimmorally. The term Telos means the end. The teleological theory of ethics is based on the end results of the consequences. The teleologicalmorality is based on measuring the probable outcomes of the consequences of the decision taken. Thistheory on the surface appears easy and simple to apply with a majority rule or profit. While taking suchdecisions there are various stakeholders and the happiness of one may result in the unhappiness tomany. The question arises as to how to measure happiness, who should b the beneficiary and whatshould be the measurement yardsticks.The most representative of teleological ethical system is Utilitarianism which seeks for utility of goods ofgreatest number. Utilitarianism is liberal and helps in resolving the differences in opinion. It is able todescribe much of the process of decision making of managers. In the utilitarianism concept some sectionof individuals may suffer great harm while others receive some benefits. Distributive is the secondteleological approach to ethical decision making which is based on the concept of fairness. This theorybasically states that there should be an equitable distribution of goods and services. In the utilitarianand the distributive concepts every person is counted equally and all should be considered important Ihappiness or unhappiness.Teleology is the approach to determine the ethics of an act by looking to the consequences of thedecision (the ends) It is the doctrine of final causes of things. Teleological theories deter-mine the ethicsof an act by looking to the consequences of the decisions or the ends. The teleological morality of adecision is determined by measuring the possible outcome or consequences. The theory mostrepresentative of this approach is the utilitarianism, which seeks as its end the greatest good or utilityfor the greatest number.Q. Explain deontology a relativist perspective (8 marks)The word deontology comes from the Greek roots deon, which means duty, and logos, which meansscience. Thus, deontology is the "science of duty." The deontological perspective is sometimes stated simply as: "Do to others as you would have them doto you." The root word deon is from the Greek meaning "obligation" or "commitment".The philosophical theory of deontology is identified that the basis of ethics is the obligation or the dutyto do what is "right". What is "right" comes from an idealized notion of what a better world ought to be.
  • 6. But, if asked, "What is the right thing to do"? Then it is a bigger question to be answered. Telling thetruth, for example, is a moral obligation, not because it may be instructed by religion. Truth telling is aduty because we understand what it is like to be lied to. We can imagine that universally others sharethis dislike of being lied to. Falsehoods create distrust, undermine relationships, and if acted on, can leadto disaster. To the deontologists, this is not a utilitarian value - tell the truth only when it serves "good"purposes.To deontology, truthfulness is simply "right" as an ideal; and, we assume the obligation to commit to theIdeal as something of value in, and of itself. We opt to tell the truth because we understand that it is the"right" thing to do. Deontology suggests that there is a universal Ethic that is available to all of us.This is an empirical problem and just as it is not possible to "prove" the existence of God, it is notpossible to "prove" the existence of universal truths not rooted in scientific inquiry. There are manycases of business decisions based simply on doing the "right" thing. Deontology is the approach todetermine the ethics of an act by looking to the process of decision (the means). It is the science of duty.A deontological system is based on rules or principles that govern decisions.A German philosopher Immanuel Kant developed perhaps the most persuasive and a fully articulatedversion of ethics further measured by the rightness of rules, rather than by the consequences. In thisformalistic view of ethics, the rightness of act of act does not depend on all the results of the act. Kantbelieved in the key moral concept of goodwill.The moral person is one of the goodwill and that the person renders ethical decisions based on what isright, regardless of the consequence of the decision. Moral worth springs from ones decision todischarge ones duty. The next question arises as to how does a person of goodwill know that what isactually right? Here Kant says that it will be in accordance with the categorical imperative or he as arational person would prescribe as universal law to be applied to the whole of mankind. Categoricalimperative is a notion that every person should act on only those principles that they as a rationalperson would prescribe as universal laws to be applied to the whole of mankind. The moral rule is categorical i.e.. it prescribes a rule for the means without concern for the end itproduces. To Kant, what is right for one is right for all and each of us can discover that right byexercising our rational faculties. Kantian rules recognize universal rights such as freedom of speech andexpression, freedom of consent and right to privacy. Another deontological approach is fro theperspective of religion. No theory or approach to the evaluation of actions is more of rule based thanreligion based. Faith rather than reason and intuition or secular knowledge provides the foundation for amoral life that is built on religion. Finally some philosophers have also argued for virtue ethics in recentyears claiming that the key to good ethics lies not in rules, rights and responsibilities but in the classicnotion of character. Virtue ethics applauds the person who is motivated to do the right things and whocultivates that motivation in daily lifestyle or conduct.
  • 7. Q Describe Types of Deontological Ethics (12 marks)These theories of the GOOD hold that actions are intrinsically right or wrong. They are right or wrong inthemselves and irrespective of their consequences. Deontologists hold that one cannot undertakeimmoral acts like torture of spies even if the outcome is morally preferable, such as the early ending of awar.It is contrasted with Teleological / consequentialist ethical theories. In a `Deontological system of ethicsthe consequences of an action are generally irrelevant to moral assessment. Rather, morality comesabout from a rational agents recognition of its duties toward others and these duties can be groundedin different ways, from divine revelation to objective rational principles. While each type ofDeontological theory finds the locus of our moral obligations in different places, they all contend thatgoodness resides in our ability to recognize and keep moral obligations; the consequences of ouractions are of only secondary concern, if at all.Divine Command: The most common forms of deontological moral theories are those which derive theirset of moral obligations from God. According to many Christians an action is morally correct whenever itis agreed with the rules and duties established by God.Duty Theories: According to this theory, an action is morally right if it is in concurrence with a set of listof duties and obligations, specific to be adhered.Rights Theories: In this theory, an action is morally right if it adequately respects the rights of all humansor members of society. This is also sometimes referred to as Libertarianism, the political philosophy thatpeople should be legally free to do whatever they wish so long as their actions do not interrupt upon therights of others.Contractarianism Theory: This theory speaks about any action that is said to be morally right if it is inaccordance with the rules that rational moral agents would agree to observe upon entering into a socialrelationship or a contract for the mutual benefit. Monistic Deontology Theory: This is a theory of anaction which is morally right if it agrees with some single deontological principle which guides all othersubsidiary principles.Q. Describe the Problems with Deontological Ethics (8marks)Deontological moral systems are characterized primarily by a focus upon adherence to independentmoral rules or duties. Thus, in order to make the correct moral choices, we simply have to understandwhat our moral duties are and what correct rules exist which regulate those duties. When we follow ourduty, we are behaving morally. When we fail to follow our duty, we are behaving immorally. A commoncriticism of deontological moral systems or theories is that they provide no clear way to resolve conflictsbetween moral duties.Some critics argue that deontological moral Systems are, in fact, consequentialist moral systems indisguise. According to this argument, duties and obligations which set forth in deontological systems areactually those actions which have been demonstrated over long periods of time to have the best
  • 8. consequences. Eventually, they become protected or preserved in custom and law and people stopgiving them or their consequences which are much thought that they are simply assumed to be correct.Deontological ethics are thus ethics where the reasons for particular duties have been forgotten, even ifthings have completely changed. A second criticism is that deontological moral systems do not readilyallow for grey areas where the morality of an action is questionable. They are, rather, systems which arebased upon absolutes both principles and conclusions. In real life, however, moral questions more ofteninvolve grey areas than absolute black & white choices.We typically have conflicting duties, interests, and issues that make things difficult.Another common criticism of deontological ethical theories is the question to justify which duties qualifyand those which we all should follow irrespective of the consequences. Duties which might have beenvalid in the 18th century are not necessarily valid now, but who is to say which ones should beabandoned and which are still valid? And if any are to be abandoned, how it can be said that they reallywere moral duties back in the 18th century? If these were the duties or obligations created by God, howcan they possibly stop being duties today?Many attempts to develop deontological systems focus on explaining how and why certain duties arevalid at any time or at all times and how to know or understand the same. Religious believers are oftenin a difficult position of trying to explain how believers of the past treated certain duties as objective.These are all reasons why irreligious atheists rarely subscribe to deontological ethical systems though itcannot be denied that they can at times have ethical insights to offer.Q Give an account of virtue theories (8 marks)Virtue ethics goes back to the ancient Greek philosopher Aristotle. According to virtue theory, ethics isprimarily about agents, not actions. Being good is thus seen as primarily a matter of character ratherthan of deeds. In general terms, virtues are character traits, dispositions to act in certain ways which isgood to possess. They are to be contrasted with vices, character traits that are bad to possess. OnAristotles account, virtues always fall between two extremes, vices of excess and deficiency. The virtuecourage thus falls between foolhardiness which is a vice of excess and cowardice which is a vice ofdeficiency.Virtue theory or normative ethical theory concentrates on the moral character of the agent i.e..,individual or an organization. According to this theory, we ought to have certain character traits likecompassion, courage, generosity etc and these tend to be visible in our actions. We therefore should actin ways that exhibit the virtues even if that means doing what might generally be seen as bad or bringingabout undesirable consequences or results.Virtue ethics or virtue based ethical theories place much less emphasis on what rules people shouldfollow and instead it focuses on helping people to develop good character traits, such as kindness andgenerosity. These traits will in return allow a person to make correct and proper decisions later in life oran individual and the organization.
  • 9. Virtue theorists also emphasize the need for people to learn how to break bad habits of character, likegreed or anger. These are called vices and stand in the way of becoming a good person. Virtue ethicsdescribes the character of a moral agent as a driving force for ethical behavior which derives rightnessor wrongness from the outcome of the act itself rather than character.The difference between these three approaches to morality tends to lie more in the way moraldilemmas are approached than in the moral conclusions reached. For example, in an argument that lyingis wrong because of the negative consequences produced by lying, though a consequentialist may allowthat certain foreseeable consequences might make lying acceptable.A deontologist might argue that lying is always wrong, regardless of any potential Good that might comefrom lying.A virtue ethicist, however, would focus less on lying in any particular instance and instead consider whata decision to tell a lie or not tell a lie said about ones character and moral behavior.As such, lying would be made in a case-by-case basis that would be based on factors such as personalbenefit, group benefit, and intentions. Virtue theorists argue that developing morally desirable virtuesfor their own sake will help aid moral actions when such decisions need to be made. Virtue ethics refersto a collection of ethical philosophies that place an emphasis on being rather than doing.Q.Give an account of Justice and fairness (2 marks)Justice means giving each person what he or she deserves or, in more traditional terms, giving eachperson his or her due. Justice and fairness are closely related terms that are often today usedinterchangeably. While justice usually has been used with reference to a standard of rightness, fairnesshas been used with regard to an ability to judge without reference to ones feelings or interests; fairnesshas also been used to refer to the ability to make judgments that are not overly general but that areconcrete and specific to a particular case.According to the Distributive Justice theory two things must happen: (a) the act should be ethical and (b)the act should lead to an equitable distribution of the outcome that is goods and services. Thephilosophy is aimed at enhancing the good of all the society members and for mutual advantage.Q. Explain the Principle of Max-Min (2 marks)The Maxi-Min Principle is the Principle of the GOOD, i.e.. MAXIMIZE Liberty (opportunities) andMINIMIZE Inequalities (differences, disadvantages)The most widely discussed theory of distributive justice in the past has been The Theory of Justice whereRawls proposes the following two principles of justice:1. Each person is to have an equal right to the most extensive total system of equal basic libertiescompatible with a similar system of liberty for all.
  • 10. 2. Social and economic inequalities are to be arranged so that they are both: (a) To the greatest benefitof the least advantaged, consistent with the just savings principle, and (b) Attached to offices andpositions open to all under conditions of fair equality of opportunity.Q Explain the Four Types of Justice (2 marks)1. Distributive justice is concerned with the fair distribution of societys benefits and burdens.2. Retributive justice is concerned with the just imposition of punishments and penalties on those whodo wrong.3. Compensatory justice is concerned the just way of compensating people for what they lost when theywere wronged by others.4. Procedural Justice is a fair decision practice with rules and processes to be fair.Q. Explain the Due Care Theory (12 marks)This theory is all about what the company owes to its customers based on ideas that would interestbuyers and customers and are susceptible to company purposes.Because of producer in the good position, the consumer interests will not lose its benefits or productofferings that will not differ for the customer.Here customers must depend on the producers ability so that they not only they get the appropriateproduct that they claimed but also it is quite necessary to create awareness to retain the merit of theproduct even though the company would not take the responsibility and the customer would alsoaccept with the products offerings and rejections.The theory speaks about somebody working to understand the needs and requirements of thecustomers so that it can be used in offering and meeting the customers’ expectations. A manufacturerhas a duty to take any reasonable precaution against a product having a defect that is likely to causeharm. A justification is that the manufacturer must take care due to his advantaged position (greaterknowledge). The idea is that the stronger have more duties. So, if a manufacturer fails to do this, he isliable for damages with harmful results.The Conventional ethics speaks about Play to Win. Occasional bluffing is ok on ethics of a particulargame and warranted interns of economic necessity.Doctrine of Means says that only man who has both consciousness and reason, is capable of happinesswhich gives a conscious performance of a higher purpose.The highest purpose of man is to imitate God. Specific virtues Aristotle listed those values by his cultureand time. They are courage, temperance, liberality, self respect, friendliness and justice. Aristotlestressed motive and also suitability of action to circumstances. The Entitlement theory is the theorywhich gives all individuals contractual freedom.
  • 11. Any interference in the freedom of the individuals would amount to unethical practice. Every individualhas right for self development and self fulfillment.The theory of Aristotles ethics is based on the concept of virtue which claims that the key to good ethicslies not in rules, rights and responsibilities but in the classic notion of character. As Aristotle contendsour attention should be given to strategies for encouraging desirable character traits such as honesty,fairness, compassion and generosity.Virtue ethics applauds the person who is motivated to do the right things and who cultivates motivationin daily conduct. One would know the right things by exercising judgments rather than by applying auniversal set of rules. Aristotelian Moral Virtues are :• Courage,• Self Control,• Generosity,• Magnificence,• High Mindedness,• Gentleness,• Friendliness,• Truthfulness,• Wittiness,• Modesty.Virtue ethics necessarily presupposes a view about human nature and the purpose of life. It needs somecontext. This point is worth stressing the possibility of applying virtue ethics to business depending on acontext that includes some conception of the nature and purpose of business.Q.Explain the integration of various perspectives (8 marks)Different perspectives have given different meanings and diagonals of studying the situation along withbetter and ethical ways of dealing with it in the society. The relationship between ethics and businessmanagement has been debated since the industrialization period as many management thinkers arguedthat business has nothing to do with ethics.The church or temple had say in all spheres of human activity including business, and business whetherit was part or different from society had different viewpoints and perspectives.The Integrated View speaks that by integrating business and ethics, it exists as an economic activitymaking profits for its own survival and growth. The business or industry which exists in the society has to
  • 12. be responsible and meet its obligations and meeting profits through ethical means. Society has anumber of subsystems; some are interlinked, interdependent and overlapping.The Separatist View speaks that business should concentrate in business activity of production, profitcosts. Certain social issues like government and society has to be ignored to an extent. Thinking toomuch of ethics in business may perhaps take one to olden church and temple days. The efficiency ofindustry and business will go down. Business should only obey laws of the land and achieve its economicgoals and business goals should dominate the social values. This view shows the interaction betweenbusiness and ethics.The Unitarian View considers business as a subsystem of a society hence business has in it the morals ofthe society. In medieval era the churches prescribed that business must do well to the society. Thusbusiness is the subset of moral structure of society.Key considerations in Globalization:Execute and Integrate: Strategize, Plan, Execute and Integrate;Organize and mobilize leadership team with international experienceDefine details of the operating model, organization, branding and PracticesAlign leadership and middle managementAcknowledge and realize the value in diversityCommunicate with EmployeesMaintain momentum and speedCommunicate with Customers / ShareholdersPlan and execute integration to realize synergiesFormulate to-be corporate culture and plan for change initiativesIntegrate and implement operating modelQ. Explain the concept of cognitive moral development (12 marks)Educators can utilize that has been demonstrated to enhance students moral development. The hope isthat by practicing ethical dilemma there will be more likelihood to behave in a The epistemology ofethics divides into cognitive and non-cognitivitsm.The distinction professional manner when faced with ethical dilemmas in the work place. that is oftenperceived as equivalent to that between descriptivist’s and non-descriptivist’s.Code of ethics are statements of values and principles which define the purpose of the
  • 13. Non-cognitive may be understood as the claim that ethical claims reach beyond the scope of company.These codes seek to clarify the ethics of the corporation and to define its responsibilities humancognition or as the (weaker) claim that ethics is concerned with action rather than to different groups ofstakeholders as well as defining the responsibilities of its employees. with knowledge.Cognitive can then be seen as the claim that ethics is essentially concerned Psychologist LawrenceKohlberg built a comprehensive theory of moral development claiming g . with judgments of the samekind as knowledge judgments namely about matter of fact.Non- Kohlberg via interviews with children as they aged, was able to identify moral development thatmoral judgment evolves and improves primarily as a function of age and education. descriptivist’s andnon-cognitivists will generally tend to argue that ethics do not require a specific deontology since ethicalpropositions do not refer to objects in the same way that descriptive, as a movement through distantstages, with the later stages being viewed as more advanced propositions do. Such a position maysometimes be called anti-realist.Realists on the other than the earlier ones. He identified six universal stages grouped into three levels;hand are left with having to explain what kind of entities, properties or states are relevant for Level1 : Preconvention Level whereby the individual is responsive to the cultures rules ethics, and why theyhave the normative status characteristic of ethics. and labels of right and wrong, but interprets theselabels in terms of physical or self indulgent consequences to the individual or in terms of the physicalpower of those who enforce the Cognitive moral development is cognitive wherein it attempts toexplain how a person thinks in contrast to an emphasis on emotions or learned associations 2 : Conventional Level which confirms the individuals focus on maintaining the levels. Kohlbergs theoryof moral development posits that individuals advance along a stage expectations of the family, group orculture regardless of the consequences. This attitude is sequence continuum that represents a series ofcognitive levels. Most individuals move upwardly one of the conformity and loyalty. It is to meet theexpectations of others, pleasing others and through these developmental levels beginning with what istermed "pre-conventional morality" adhering to stereotypical images and states that doing right is onesduty, hence uphold the social contract and order. to the second, termed "conventional morality" andsometimes to the highest level, called "post- conventional morality." Each level has two developmentalstages, and individuals progressLevel 3 : Post Conventional Level wherein current laws and values are relative, laws and upward in ainvariant sequence. In other words, individual progresses from stage to stage duties are obeyed onrational calculations to serve the greatest number. It also follows self in a logical sequence.Theoretically, stages cannot be skipped. Rest states that one way in chosen universal ethical principlesand in the event of conflicts, principles override laws which to view the stages of cognitive moraldevelopment is to view them as six conceptions of Contrary, at the post conventional level, theindividual is able to reach independent moral judgment that may or may not confirm to conventionalsocietal wisdom.
  • 14. Thus the level 2 how best to organize social cooperation in society. Cognitive moral development isdevelopmental in that thinking skills require advancement along a stage sequence continuum ofcognitive manager may refrain from sexual harassment because he has to obey the law whereas, at level3, the manager might refrain from doing so as his decision is based on self chosen universal levels.Often, the best way to understand the dilemma approach is to practice leading a small group of studentsin discussing an actual dilemma.Q What Are The Ethical Issues Helping In Affective Decision Making: (8 marks)Ethical decision making affects more than our working life. It is a tricky business, but we can situation,develop several options, evaluate and assign a value to each option, select make it more palatable,workable decisions if we follow these five simple steps;1. Think — Is it an ethical issue? Being ethical does not always mean following the lay and just becausesomething is possible does not mean it is ethical, hence there is global debate on biotechnologyadvances as cloning. Ethics and religion do not always concur. Listen to your instincts if it feelsuncomfortable making the decision on you own, get others involved and use their collective knowledgeand experience to make more considered decision.2. Get the facts — It is very important to gather facts from different sources before w( self rely andproceed with our own beliefs. Reconsider on what you know and what you dont know? Who are thepeople affected by your decision? Have they peer consulted? What are your options? Have youreviewed your options with someone you respect and adhere on?3. Evaluate alternative actions — There are different ethical approaches which may help you make themost ethical decisions. Utilitarian Approach — which action results in the most good and least harm? *Rights best approach — Which action respects the rights of everyone involved? * Fairness or justiceapproach — which action treats people fairly. * Common good approach — which action contributesmost to quality of life of affected people? * Virtue Approach — Which action embodies the characterstrengths that you value?4. Test your Decision — Take time rather than a faulty or a hurried wrong decision. Evaluate — couldyou comfortable explain your decision to your mother? To the man in the street? On television? If not,you may have to rethink your decision before you take any action.5. Just Do it — But what did you learn? Once you have made the decision, then dont waste time inimplementing it. Set a date to review your decision and make adjustments if necessary. Often decisionsare made with the best information to had at that time, but things do change, and your decision makingneeds have to be flexible enough to change too.
  • 15. Q. Explain the Role of Corporate Culture and Leadership for business ethics.(8 marks)A companys culture can have an effect on the quantity and quality of the new product that it develops.Every organization has a culture which is represented by a shared pattern of beliefs, expectations andmeanings that influence and guide the thinking and behavior of the members of an organization or agroup.A firms culture can be its sustainable value which offers its direction during challenging times. Thoughsomewhat ethereal, it is important to consider the cultures of firms because it is the culture thatencourages and influences decision making. Consider a firm with a culture to Play throughout the daywith Ping Pong tables in the offices and a cafeteria replete with board games and other distractions, buteveryone is also expected to remain in the office until all work is complete for that day, no matter howlate that goes. If you enter that firm with a 9 to 5 attitude where you intend to give your best to workthroughout the day but then to leave as the clock strikes 5, you might not have the Fit or suitability forthat company or culture.The same might hold true for a firms value. If you join a firm with a culture that supports other valuesthan those with which you are comfortable, there ought to be values conflicting for better or for theworst. Usually there are no cultures which can be pointed out as most effective or ineffective, it is self-reinforcing and socially learned. Strong and cohesive cultures are like double edged swords which arelinked to organizations performance. Cultures are rooted in successful problem solving and actions and its influence operates outside ourawareness with changes that takes time and involves multiple strategies. Consider a firm that haslingered for decades under weak management, a lack of any internal corporate control, a little oversightand on the other hand a sales performance based significant bonus plan and a product that has beensuccessful because it has suited the needs and now that the need has changed slightly and the firm isunder pressure to survive.Here considering the way that we have always done it, employees may have the opportunity to cutcorners and make decisions that would never be tolerated in another culture. When you have got theincentives in the form of higher pay for higher profits taking the risk, the system ought to atleast throwup some red flags.People are going to over-compete, take risks and sometimes break laws, this is precisely theenvironment at many organizations. Does a companys culture affect the quality and quantity of newproduct ideas that it generates? For example, if a company is focused on meeting customer needs, doesthat mean it will be less capable of churning out game-changing products? To understand the role thatcorporate culture plays in new product development we made a survey from companies in theconsumer packaged goods industry. Globalization is the process of change seen with increasinginterdependence, integration and interaction among people and companies in disparate locationsaround the globe. Globalization strategies take different forms for different companies andMultinational companies with specific strategies and operate for each different country
  • 16. Transnational companies implement strategies to gain worldwide efficiency and local advantages.International companies with a global strategy but with local adaptations Worldwide for companies witha "one-size-fits-all" strategy in all the different countries. There are various examples of individual CEOsand their companies addressing some or all of the points outlined in the Framework for Action.Collective Leadership at national, global or industry level, involves not only in private sector but also inthe public sector and civil society organizations.Q. Comment on Individual and Organizational factors in terms of business ethics (8 marks)People perceive that the ethical leaders goal is not simply job performance, but performance that isconsistent with a set of ethical values and principles. And ethical leaders demonstrate based on needsthen the steps following become simple and effective.To understand what a caring for people or employees and external stakeholders in the process.However all of this relationship is, how to bring one about, how to enhance one, and why relationshipsare traits and behaviors must be visible. If an executive is quietly ethical within the confines ofdiminished and lost, one must understand the power of a persons needs. The most important the topmanagement team, but more distant employees dont know about it, they are not likely things in theworld are the things we believe that we needs which affect opinions, attitudes to be perceived as anethical leader.Traits and behaviors must be socially visible and understood and viewpoints. Generally we are moreaware of unfulfilled needs than the ones that are in order to be noticed and influence perceptions.People notice when an executive walks the consistently met. Fundamental life needs in particular are socommonly accepted that we talk and acts on concerns for the common good, society as a whole and thelong term because usually overlook them. No one is aware of the air breathed, the ground walked on,the water executives are expected to be focused on the financial bottom line and the short termdemands drunk, and yet these are the needs we miss most when gone.The key to a good interpersonal of stock analysts. When they focus on these broader and longer termsconcerns, people notice, relationship is simple, once we understand the role that needs to be played inmaking a Finally making courageous decisions in tough situations represents another way how ethicalrelationship weak, moderate, average, or strong. Leaders get noticed. Lets give the word relationship adifferent definition from the dictionaries. To unlock the root of corporate culture is the organizationsbeliefs and philosophy about how its meaning of the word often leads to greater understanding. "Agood relationship is mutual affairs ought to be conducted. The reasons why it does things the way itdoes.A companys filling of needs. When two people have strong needs and each fills the others needs, thereis a culture is manifested in the values and business principles that management preaches and powerfulinterpersonal relationship.When two people have weak needs and each fills the practices in its ethical standards and officialpolicies in its stakeholders relationships. In the others needs, there is a mild relationship. When either
  • 17. person has strong needs or those needs traditions the organization maintains in its supervisory practicesin employees attitudes and that are not being filled, there is a poor relationship.When either has weak needs and those behavior in the legends that people about happenings in theorganizations in the peer pressures needs are not being filled, there is a mild relationship." When a weakneed is not being filled, that exists in the organizations politics and in the chemistry and the vibrationsthat permeate there isnt much caring either way. To enhance any relationship is quite simple, just find out the work environment. Beliefs and practicesthat become embedded in a companys culture what the other person needs and then fill that need. Toend a relationship the reverse is true. can originate anywhere from one influential individual , workgroup, department or division Find out what the other person needs and keep those needs unfilled.Yes it sounds as simple as from the bottom of the organizational hierarchy or the top. /very often manycomponents of that. The great principle of correspondence states, "As above, so below, as below soabove." the culture originate from a founder or certain strong leaders who articulated them as acompany When we know the key to happiness we can also see in reverse the key to unhappiness.Philosophy or as a set of principles to which the organization should rigidly adhere or as Withoutrealizing it, when we know how we be a failure, we also know how to be a successful. company policies.When we are successful at failing in interpersonal relationships, we also know how to beQ How Do Interpersonal Relationships in Organization Play a Major Role (8 marks)As the child grows needs also change. Hence it is essential that the parent recognize theProper communication, understanding and mutual efforts are the binding basis of any relationship tosustain and grow and same is the case with the interpersonal relationships between the employees in aworkplace. There is cutthroat competition in any and every field of work. With the market expectationsand criteria for growth and development, one cannot afford to let deviations and hurdles like conflictamong employees to spring up in ones organization.It is quite essential to have a healthy and friendly environment at work. A conflict-filled environment willnot only hamper the output but will also affect the quality of the employees work and their morale.When it is realized that interpersonal relationships are changes.As it is with the child to the parent, so it is with the parent to the child. When you ask, "How can I helpbetter this relationship?" you are asking a wrong question. To get the correct answer we have to ask theright question. A better question would be, How can I fill this persons needs? How do I discover andrecognize needs? It is sometimes easier to recognize another persons needs while our own needs areoften hidden by fear, guilt, and programming.An interpersonal relationship is a relatively long term association between two or more people. Recentideas on emotional intelligence and servant relationship have identified the quality of interpersonalrelationship as a key factor affecting management and organizational performance. Develop a writtenagreement: If the parties come to agreement or consensus, the agreement(s) should be written and
  • 18. shared with each party. Set a date for follow-up: Deadlines for action and follow-up are part of thewritten agreement. Follow-up might be a meeting interaction, telephonic call or an event during whichboth parties can report about how the agreement is working. Case Article for Analysis:Q. Give an account on Justice and Fairness (8 marks)Developed by Maziuel Velasquez, Claire Andre, Thomas Shanks, S.J., and Michael J. Meyer WhenBeatrice Norton was fourteen, she followed in her mothers footsteps and began working in the cottonmill. In 1968, after a career in the mill, she had to stop working because of her health. Years of exposureto cotton dust had resulted in a case of "brown lung," a chronic an sometimes fatal disease withsymptoms similar to asthma and emphysema.In 1977, she testified at a congressional hearing, asking that the government require companies toprovide disability compensation for victims of the disease similar to the compensation companiesprovided for other similar diseases. I worked in the dust year after year ... I got sicker and sicker. In 1968I suddenly had no job, no money, and I was too sick to ever work in my life again.State legislators have proven in two successive sessions that they are not going to do anything to helpthe brown lung victims, so now we come to you in Washington and ask for help. Weve waited alongtime, and many of us have died waiting. I dont want to die of injustice. Another woman, Mrs. VinnieEllison, spoke bitterly about the way her husband had been treated when the illness caught up with himafter twenty one years at a cotton mill: In the early sixties he started having trouble keeping up his jobbecause of his breathing.In 1963 his bossman told him that he had been a good worker, but wasnt worth a damn anymore andfired him. He had no pension and nothing to live on. My husband worked long and hard and lost hishealth because of the dust. It isnt fair that the mill threw him away like so much human garbage afterhe couldnt keep up his job because he was sick from the dust.To Mrs. Norton and Mrs. Ellison, receiving compensation for the debilitating effects o brown lung similarto that given to other diseases was a simple matter of justice. In making their case, their argumentsreflected a very long tradition in Western civilization. In fact, no idea in Western civilization has beenmore consistently linked to ethics and morality than the idea of justice. From the Republic, written by the ancient Greek philosopher Plato, to A Theory of Justice, written bythe late Harvard philosopher John Rawls, every major work on ethics has held that justice is part of thecentral core of morality.Justice means giving each person what he or she deserves or, in more traditional terms, giving eachperson his or her due. Justice and fairness are closely related terms that are often today usedinterchangeably.There have, however, also been more distinct understandings of the two terms. While justice usually hasbeen used with reference to a standard of rightness, fairness often has been used with regard to anability to judge without reference to ones feelings or interests; fairness has also been used to refer to
  • 19. the ability to make judgments that are not overly general but that are concrete and specific to aparticular case. In any case, a notion of desert is crucial to both justice and fairness.Kinds of JusticeThere are different kinds of justice. Distributive justice is a teleological approach to ethical decisionmaking that defines ethical acts as those that lead to an equitable distribution of good, and services. Itrefers to the extent to which societys institutions ensure that benefits burdens are distributed amongsocietys members in ways that are fair and just. When the, institutions of a society distribute benefits orburdens in unjust ways, there is a strong presumption that those institutions should be changed. Forexample, the American institution of slavery in the pre-civil war South was condemned as unjustbecause it was a glaring case o treating people differently on the basis of race. A second important kindof justice is retributive or corrective justice.Compensatory justice and Retributive justice are concerned with rectifying the wrongs. Generallycompensating the victims is the just way of correcting wrongs in private dealings such as losses resultingfrom accidents and the failure to fulfill contracts whereas retribution that is punishment is the justresponse to criminal acts such as assault or theft. It other words, it refers to the extent to whichpunishments are fair and just. In general, punishments are held to be just to the extent that they takeinto account relevant criteria such as the seriousness of the crime and the intent of the criminal, anddiscount irrelevant criteria such as race. It would be barbarously unjust, for example, to chop off apersons hand for stealing a dime, or to impose the death penalty on a person who by accident andwithout negligence injured another party. Studies have frequently shown that when blacks murderwhites, they are much more likely to receive death sentences than when whites murder whites or blacksmurder blacks. These studies suggest that injustice still exists in the criminal justice system the UnitedStates. Yet a third important kind of justice is compensatory justice. Compensatory justice refers to the extent to which people are fairly compensated for their injuries bythose; who have injured them; just compensation is proportional to the loss inflicted on a person. This isprecisely the kind of justice that was at stake in the brown lung hearings. Those who testified at thehearings claimed that the owners of the cotton mills where workers had been injured shouldcompensate the workers whose health had been ruined by conditions at the mills.The foundations of justice can be traced to the notions of social stability, interdependence, and equaldignity. As the ethicist John Rawls has pointed out, the stability of a society—or any group, for thatmatter—depends upon the extent to which the members of that society feel` that they are beingtreated justly. When some of societys members come to feel that they are subject to unequaltreatment, the foundations have been laid for social unrest, disturbances, and strife. The members of acommunity, Rawls holds, depend on each other, and they will!) retain their social unity only to theextent that their institutions are just.Moreover, as the philosopher Immanuel Kant and others have pointed out, human beings are all equalin this respect: they all have the same dignity, and in virtue of this dignity they deserve to be treated asequals. Whenever individuals are treated unequally on the basis of characteristics that are arbitrary and
  • 20. irrelevant, their fundamental human dignity is violated. Justice, then, is a central part of ethics andshould be given due consideration in our moral lives. In evaluating any moral decision, we must askwhether our actions treat all persons equally.

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