Business Ethics

3. Name Roll No.
Ayesha Yaseen Group Leader 36
M. Akthar Farhan 02
Mubashar Ali 23
Sidra Kanwal Kiran 11
Habib Ur Rehman 17
MBE-4th Semester(Session-2013-2015)
Department of Economics
BZU Multan

4. Ayesha Yaseen
Roll No.36

5. Ethics Policy
 Avoidance of conflict of interest at all levels.
 Honesty and integrity.
 Fairness in dealing with everyone.
 Acting in good faith.
 Compliance with law.
 Encouraging ethical reporting: whistleblowing.

6. Pakistani Scene
 Companies are not willing to be ethical.
 Those that are willing cannot afford to be ethical.
 Those that can afford, are not allowed by the situation.
 One has to bribe even to get one’s rights.

7. Rectifying The Situation
1. Principal Causes:
 Company policies
 Unethical industrial climate
 Rampant corruption in government
2. Solution:
 Bigger companies should start; others will follow.
 Gradually the business climate will change.
 Once business is honest; government will have to get honest.

8. Muhammad Akhtar Farhan
Roll No: 02

9. How to Enforce Ethics
Law
Industrial and professional codes
Internal codes
Wanting to be ethical

10. Law
Words of law and spirit of law.
Law cannot create honesty.
Law cannot cover everything.

11. Professional Codes
 Lesser force than law.
 Professional associations e.g. ICAP force their members
to follow ethics, or face expulsion.
 Professionals work for companies and force companies to
follow ethics.
 Industrial associations also exhort their members to be
ethical.

12. Internal Code
 The most compelling reason for a company to be ethical is its
own board.
 A company can become ethical only if its board is willing to face
the consequences and pay the price of honesty.
 Setting up a formal policy on ethics is essential.
 Ethics should be part of everything that a company does.
 Doing certain things in name of ethics is not enough.

13. Mubashar Ali
Roll No: 23

16. Evolution of Business Ethics
1.Business
Historically not known to be ethical.
Profit before any thing else.
2. Ethics
Religious influence.
Social influence.

17. Why Business is Being Ethical
Now?
Stricter laws and regulations.
Watch dogs.
Realization that ethics is profitable.

18. Sidra Kanowal Kiran
Roll No.11

19. Handling These
Causes
1. All these causes can be handled by a good management team
by:
Fairness and equal treatment of all employees.
Reasonable load of work.
Reasonable targets.
Good HR practices.

20. Aspects of Corporate
Unethical Behavior
Bribery
Coercion
Conflict of interest: company & others
Tax evasion
Insider trading
Lack of regard for the society

21. How to Enforce Ethics
in a Company?
Decide to be ethical.
Ethical decision making as norm for all
operations.
Draw up a formal Ethics Policy and let it be part
of normal operational manuals.

22. HABIB-UR-REHMAN
ROLL NO.17

23. ADVANTAGES OF BUSINESS ETHICS
 Improve in image
 Higher productivity
 Access to more and cheaper capital
 Helps society; society helps company
 Every one is a winner

24. IMPACT ON EMPLOYEES
 If the company is honest, employees tend to be honest as
well. This means better work environment, better
productivity, higher efficiency.
 Honest companies have lesser frauds and thefts.
 Ethical companies attract better quality of staff.
 Ethical companies are able to retain good staff.

25. CHARACTERISTICS OF AN
ETHICAL ORGANIZATION
 Formal code of ethics.
 Regular interaction with stakeholders.
 Obsessively fair to all.
 Managers responsible individually; do not hide
behind collective responsibility charade.
 Employee see a purpose in their work.
 Non-bureaucratic procedures.

26. ROOTS OF INDIVIDUAL UNETHICAL
BEHAVIOR
 Pressure of work and family life.
 Poor communication between company and employees.
 Poor leadership of the company.
 Heavy work load; long working hours.
 Undue pressure / targets.
 Politics, favoritism.
 Personal traits & circumstances.