Meaning, importance and need of Business Ethics

2. Presented by: Garima Singh
CEO, Career Banquet

3. Meaning
Greek word ETHIKOS
Means CHARACTER

4. What is Ethics ?
 Fundamental principles of
decent human conduct
 Standards of right and
wrong
 Study of Behaviour
 Branch of Philosophy
 Science of morals principles

5. Ethical / Unethical
• Operating cancer
treatment centre with
tobacco company
• A man breaks into a
pharmacy to get medicine
for his dying mother

6. Differences
MORAL ETHICS
 Latin word “MOS”
 Social in Nature
 Based on Customs
 Accepted by religious/
cultural institutions
 General principles(Friends
& Family)
 Narrow Scope
 Greek word “Ethikos”
 Personal in Nature
 Based on Personal Aspects
 Personally accepted
 Personal principles(own)
 Wider scope

7. Fundamental Principles of
Ethics
 INTEGRITY
 OBJECTIVITY
 CONFIDENTIALITY
 PROFESSIONAL COMPETENCE
AND DUE CARE
 PROFESSIONAL BEHAVIOUR

9. What are Business Ethics ???
Business ethics can be defined as written
and unwritten codes of principles and values
that govern decisions and actions within a
company.

10. Making Ethical Judgments…
Prevailing
norms of
acceptability
Value judgments
and perceptions
of the observer
compared
with
Behavior or act
that has been
committed

11. Warren Buffet’s rule of
thumb for ethical conduct
[Berkshire Hathaway’s code of ethics]
“…I want employees to ask themselves (when they are in
doubt about whether a particular conduct is ethical or not)
whether they are willing to have any contemplated act
appear the next day on the front page of their local paper
to be read by their spouses, children and
friends – with the reporting done by an
informed and critical reporter.”

12. In many situations lines between
right and wrong are blurred
When faced with ethical dilemmas, it’s important
to consider outcomes of the decision-making
process. One way of dealing with ethical
dilemmas is by using the four way test to
evaluate decisions.
This test involves asking four questions :
• Is my decision a truthful one?
• Is my decision fair to everyone affected?
• Will it build goodwill for the organization?
• Is the decision beneficial to all parties who have a
vested interest in the outcome?

13. BUSINESS EthIcS…
• Ethics influence and contribute to: Employee
commitment.
• Investor and customer loyalty and confidence.
• Legal problems and penalties.
• Customer satisfaction.
• The ability to build relationships with stakeholders.
• Cost control.
• Performance, revenue, and profits.
• Reputation and image.
Why isit important ?

14. Ethical climates in organizations
provide platform for :
 Efficiency
 Productivity
 Profitability