Business ethics: Right or wrong in the workplace

1. Business Ethics
Business ethics is a set of
laws about how a business
should conduct itself.
Right or wrong in the
workplace
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2. Ethics
 The study of moral obligation
involving the distinction between
right and wrong.
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3. Common Misconduct
in Organizations
 Misrepresenting hours worked
 Employees lying to supervisors
 Management lying to employees,
customers, vendors or the public
 Misuse of organizational assets
 Lying on reports/falsifying records
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4. (Cont’d)
 Sexual harassment
 Stealing/theft
 Accepting or giving bribes or
kickbacks
 Withholding needed information
from employees, customers,
vendors or public
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5. Common Causes of
Unethical Behavior
 Pressure
 Fear
 Greed
 Convenience
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6. Ethics as GoodEthics as Good
BusinessBusiness
 Unethical business practices can
affect your business indirectly.
 The amount you make in profits
from one unhappy customer can
translate into a lot more lost
because of missed repeat
business.
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7.  Mistreating employees leads to a
high turnover rate. This increases
the cost of hiring and training new
employees.
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9. Benefits of Managing
Ethics in the Workplace
 Improves society.
 Farm employee teamwork,
productivity, morale and
development.
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10. Benefits of Managing
Ethics in the Workplace
 Establishes values for quality
management, strategic planning
and diversity management.
 Promotes strong public image.
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11. Business Ethics - Issues
A business cannot claim to be ethical
firm if it ignores unethical practices
by its suppliers – e.g.
 Use of child labor and forced labor
Violation of the basic rights of
workers
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12. Pressure for businesses
to act ethically
Pressure groups are external
stakeholders they:
 Tend to focus on activities &
ethical practice of industries with
ethical issues
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13. Direct consumer action
Consumers may take action against:
 Businesses they consider to be
unethical in some ways
 Business acting irresponsibly
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14. Advantages of ethical
behavior:
 Higher revenues-demand for
positive customers/consumer
support
 Improved brand and business
awareness and recognition
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15. Business Ethics in Islam
 Freedom of Enterprise:
 Each individual in an Islamic
society enjoys complete freedom in
the earning of his livelihood.
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16. Islamic Doctrine Concerning
Business Transactions:
 Keenness to Earn Legitimate (Halal) Earnings
 Trade through Mutual Consent
 Trustworthiness in Business Transactions
 Generosity and Leniency in Business
Transactions
 Honouring and fulfilling Business Obligations
 Fair Treatment of Workers
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17. Prohibited Matters in
Business Transactions:
 Dealing in Prohibited (Haram) Items
 Hoarding of Foodstuff is not allowed
 Exploitation of one’s Ignorance of Market
Conditions
 Cheating and Fraud in Business Transactions
 Giving Short Measures
 Dealing in Stolen Goods
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18. Thank You
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