Business Ethics Chapter is Prepared based on the Syllabus of Rani Channamma University, Belagavi

1. Vishwanath Bhanuse
Teaching Assistant,
Dept. of Studies in Commerce,
R.C.U PG Center, Jamkhandi

2. The term ethics may refer to the philosophical study of the concepts of
moral right and wrong and moral good and bad, to any philosophical theory of
what is morally right and wrong or morally good and bad, and to any system or
code of moral rules, principles, or values. The last may be associated with
particular religions, cultures, professions, or virtually any other group that is at
least partly characterized by its moral outlook.
ethics, also called moral philosophy, the discipline concerned with what is
morally good and bad and morally right and wrong. The term is also applied to
any system or theory of moral values or principles.

3. Meaning:
The word Ethics is derived from the Greek word ‘ethos’ which means character or conduct. Ethics is also called as
moral philosophy or philosophical thinking about morality. This morality has been further elaborated as action and
behaviour which is concerned with ‘good’ or ‘evil’, of particular traditions, groups or individual.
The term ‘moral’ and ‘ethical’ is often used as equivalent to right or good as opposed to ‘immoral’ and ‘unethical’.
It doesn’t mean morally right or morally good but it definitely pertains to morality
Definition:
According to R. wayne Mondy, ‘Ethics is the discipline dealing with what is good, and bad, or right and wrong, or
with moral duty and obligation’.
According to concise Oxford Dictionary, ‘ethics’ is relating to morals; treating of moral questions; morally correct;
honorable.

4. How should we live? Shall we aim at happiness or at knowledge, virtue, or the creation of beautiful
objects? If we choose happiness, will it be our own or the happiness of all? And what of the more
particular questions that face us: is it right to be dishonest in a good cause? Can we justify living in
opulence while elsewhere in the world people are starving? Is going to war justified in cases where
it is likely that innocent people will be killed? Is it wrong to clone a human being or to destroy
human embryos in medical research? What are our obligations, if any, to the generations of humans
who will come after us and to the nonhuman animals with whom we share the planet?
Ethics deals with such questions at all levels. Its subject consists of the fundamental issues of
practical decision making, and its major concerns include the nature of ultimate value and the
standards by which human actions can be judged right or wrong.

5. The terms ethics and morality are closely related. It is now common to refer
to ethical judgments or to ethical principles where it once would have been more accurate to speak
of moral judgments or moral principles. These applications are an extension of the meaning of
ethics. In earlier usage, the term referred not to morality itself but to the field of study, or branch of
inquiry, that has morality as its subject matter. In this sense, ethics is equivalent to moral philosophy.
Although ethics has always been viewed as a branch of philosophy, its all-embracing practical
nature links it with many other areas of study,
including anthropology, biology, economics, history, politics, sociology, and theology. Yet, ethics
remains distinct from such disciplines because it is not a matter of factual knowledge in the way that
the sciences and other branches of inquiry are. Rather, it has to do with determining the nature of
normative theories and applying these sets of principles to practical moral problems.

6. Ethics
Systematic study of moral
conduct
Normative ethics
Study of moral standards to
determine right and wrong
Scope: General moral science
Applied ethics
Study of special issues-
business ethics
Scope: Specific human action
Meta – Ethics
Cognitive study of the
ultimate principles of ethics,
their origin and meaning
Conceptual Scope: Philosophy

7. 1. Normative ethics :
Normative ethics Norms or standards are also known as values or codes. Norms set clear
guidelines for social interaction in a community. Normative ethics is a subject of study
wherein students study moral standards. These moral standards can be applied to human
actions to judge their moral character, that is, whether they are right or wrong.
Examples of some of the moral standards are utility, duty, conscience, use of right means
for right ends, justice, prudence, and stewardship. Just as there are several standards to
measure distance, such as meter, yard, mile, etc., so also there are several standards to
judge an action right or wrong.

8. Applied ethics Business ethics comes under the classification of applied ethics because it
concerns itself with the special application of ethics to problems relating to a definite field of
human relationships. Normative standards of moral judgment are applied by business
managers to the business decisions they take. The ethical element is part and parcel of the
integral process of decision making on a business management problem. Business ethics,
therefore, deals with the application of normative standards to specific business experiences.
The study of business ethics is as essential for a businessman as the study of professional
norms for a medical practitioner. We expect a doctor to diagnose correctly so that the right
medication is given. There are chances that he could diagnose a simple ailment but report it as
a serious one in order to exploit the patient financially. Likewise, a client places trust on a
businessman for a transaction and hopes that the latter does not deceive. Thus, applied ethics
is strictly professional ethics.

9. Meta-ethics is the Greek word meta stands for beyond. Thus, meta-ethics literally means
beyond ethics, suggesting an in-depth study of the discipline. In other words, it is a scientific
study of the concepts of ethics in itself. You may not find these concepts practical, because
nowhere in the world will you find a perfect human being who is perfectly good, perfectly
happy, perfectly duty-bound, and so on. These are abstract ideas that are considered as supra-
standards, and are concepts that can be conceived as perfectly as perfection itself. We study
these concepts as ultimate principles-principles such as good and evil, right and wrong. We
study them just the way we study theoretical physics when dealing with the principles of
gravitation, energy, or light. The character of these principles is universal in nature. For
instance, if we handle 'duty' as an ethical principle, it would be applicable as a standard of
ethical judgment in all the cases of duty. Hence, meta-ethics is a study of the general
principles that govern right and wrong human actions.

10. • Ethics isn’t a new concept.
• It has been with us for thousands of years, except that its
importance is dawning on us only now.
• Our ancient literature: Vedas, Puranas, Ramayanas, Gita,
Bible, Guru Granth Sahib and the Koran all are full of
moral values and ethical code of conduct.
• “Ethics is thinking in terms of the larger picture, not
ignoring or neglecting ones own interest and well being but
not over-emphasising ones own interests either”

11. • Ethics deals with human beings
• Ethics is more a science than an art
• Ethics is normative science
• Ethics deals with human conduct
• Ethics is a field of social science

12. • Ethics deals with human behavior & makes evaluation
assessment
• To establishes moral standards and norms of behavior
• To judge human behavior and express an opinion or attitude
about the behavior
• To assess human behavior
• To set a behavior stds and make recommendations about the
desire behavior

13. • Sale of branded products through unauthorized dealers.
• Electronic good piracy
• Piracy in software, music & film industry.
• Ordinary water being sold as mineral water under fake logos
and seals.
• Soaps and cosmetics being sold in the empty packs of
reputed brands.
• Inadequate or vague guarantees & warrantees.
• Use of non-biodegradable packaging material.

14. • Shoplifting
• Changing price tags
• Abusing products and returning them as damaged goods.
• Reporting lost items as stolen to insurance companies.
• Lying about a child’s age to get a lower price.
• Moving around casually out of the office during office
hours.
• Accessing private computer files without permission.
• Listen to private cellular phone conversation.
• Sabotage systems/data of other employees.

15. • Abusive or intimidating behavior.
• Theft or fraud.
• Sexual harassment
• Taking harmful decisions.
• Resorting to dishonesty, trickery,
deception.
• Distortion of facts to mislead or confuse.
• Window dressing.
• Lack of transparency & resistance to
investigation.

17. Sources of
Ethics
Most preferred aspects
1. Genetic inheritance
2. Religion
3. Philosophical system
4. Code of conduct
5. Legal system
6. Cultural background
Special reference of a
Country
1. Corporate experience
2. Economic situations
3. Type of economy
Special reference to
individuals & business
1. Management and
employees
2. Inner promptness
3. Leadership
4. Environment of
business
5. Competition.

18. • Many of the basic qualities like courage, cooperation,
goodness, sympathy, generosity come to man from
inheritance by their forefathers. The son or grandson of a
businessman will get their qualities while operating
business.
Examples:-
1. The owner of “TATA group of industries”, Mr. Ratanji
Tata is following his forefathers view that ‘less to me,
more to society’.
2. The Ambani brothers believe that, to run business we
should keep ‘power’ in our hand.

19. • Religious morality is clearly a primary focus in shaping
societal ethics. Religion provides ethical principles and
standards to all humans. The religious beliefs of what is
right and what is wrong are coming to us from generation to
generation. The books are read through many centuries and
are followed.
For Hindu’s- Bhagawad-Geeta, For Christians-Bible,
for Muslims- Quran.
Examples:-
We cant find alcoholic industries in Tirupati, Puttaparti
is not having any meat shops/hotels, McDonalds produces
food without adding beef & fork in India, Brahmins doesn’t
own footwear shops.

20. • The quality of pleasure to be derived from an act was the
essential measure of its goodness. The philosophical base of
the society we live in add to the thinking and decision
making process.
Examples:-
1. some peoples view is- act good
2. Indians- Ahimsa, don’t cheat, don’t kill.
3. Modern business thinkers- Hard work & efficiency
4. Abdul kalam – Don’t keep more than you need.
5. Muslims- Make strong your neighbor also.

21. The code of conduct refers to the actions made, the
manner of action, the rules & beliefs followed in a
particular aspect. The codes of conduct are in various
types. Company code of conduct, company operating
methods, industry principles, etc. these are some types
of codes of conduct.
Examples:-
Rules of Infosys ltd, Principles of TATA group of
industries.

22. • Laws are defined as a consistent set of universal rules that
are widely published, generally accepted and usually
unforced. These are based on societal rules, these rules are
made by the authority to the proper regulation of a
community.
Examples:-
Tobacco, Gutka are banned in Andhra Pradesh, Obama
decreased the level of number of employees who are
Indians, government refused to give loan to Kingfisher
airlines, Samsung company punished due to copying Apple
company products.

23. Customs, beliefs and standards that are transmitted
from generation to generation act as guides to
businessman in decision making. Individual values are
shaped by the society where we grow and live in.

24. A country’s corporate experience refers to the
ethics, rules followed in the corporate segment. The big
business concerns will show the way of action to other
companies of the country, the actions were sometimes
good and sometimes bad even.
Examples:-
The achievements of Tata and Infosys company.
The scandal of Sahara groups of companies, the 2G
spectrum scam, the earnings and awards rewards to the
companies.

25. • Economic situations of a country refers to the rise and falls
of the economic strength. The declining economic
situations may push the companies to unethical practices,
the rising economy will give rise to good competition and
good ethical practices.
Examples:-
Dumping activity of China in India,
Type of economy: There are three types of economies, those
can be the source of business ethics.
1. Capitalistic economy
2. Socialistic
3. Mixed economy

26. Meaning:
Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics, that examines
ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of
business conduct and is relevant to the conduct of individuals and entire organizations. These ethics originate from
individuals, organizational statements or the legal system. These norms, values, ethical, and unethical practices are
the principles that guide a business.
In short, business ethics means to conduct business with a human touch in order to give welfare to the
society.
So, the businessmen must give a regular supply of good quality goods and services at reasonable prices to
their consumers. They must avoid in unfair trade practices like adulteration, promoting misleading advertisements,
cheating in weights and measures, black marketing, etc. They must give fair wages and provide good working
conditions to their workers. They must not exploit the workers. They must encourage competition in the market.
They must protect the interest of small businessmen. They must avoid unfair competition. They must avoid
monopolies. They must pay all their taxes regularly to the government.

27. 1. According to Andrew Crane,
“Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are
addressed.”
2. According to Raymond C. Baumhart,
“The ethics of business is the ethics of responsibility. The business man must promise that he will not harm
knowingly.”
3. According to Adam Smith in 1776,
"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a
conspiracy against the public, or in some contrivance to raise prices”.
4. According to John Donaldson,
Business ethics, in short can be described as the systematic study of moral (ethical) matters pertaining to
business, industry or related activities, institutions, or practices and beliefs. It can also refer to the actual
standards, values or practices or beliefs (An example of the latter use is seen in the title of Max Weber's book, The
Protestant Ethic and the Spirit of Capitalism'). Business Ethics is the systematic handling of values in business
and industry.

28. The characteristics or features of business ethics are:-
1. Code of conduct : Business ethics is a code of conduct. It tells what to do and what not to do for
the welfare of the society. All businessmen must follow this code of conduct.
2. Based on moral and social values : Business ethics is based on moral and social values. It
contains moral and social principles (rules) for doing business. This includes self-control,
consumer protection and welfare, service to society, fair treatment to social groups, not to exploit
others, etc.
3. Gives protection to social groups : Business ethics give protection to different social groups
such as consumers, employees, small businessmen, government, shareholders, creditors, etc.
4. Provides basic framework : Business ethics provide a basic framework for doing business. It
gives the social, cultural, economic, legal and other limits of business. Business must be
conducted within these limits.
5. Voluntary : Business ethics must be voluntary. The businessmen must accept business ethics on
their own. Business ethics must be like self-discipline. It must not be enforced by law.
6. Requires education and guidance : Businessmen must be given proper education and guidance
before introducing business ethics. The businessmen must be motivated to use business ethics.
They must be informed about the advantages of using business ethics. Trade Associations and
Chambers of Commerce must also play an active role in this matter.
7. Relative Term : Business ethics is a relative term. That is, it changes from one business to
another. It also changes from one country to another. What is considered as good in one country
may be taboo in another country.
8. New concept : Business ethics is a newer concept. It is strictly followed only in developed
countries. It is not followed properly in poor and developing countries.

29. Ethics issues exits at all levels of business activities:
1.Societal level:
- Concern for poor and downtrodden
- Concern for clean environment
- Preservation of scare resource for posterity
- Contributing to better quality of life
2.Internal policy level:
– Fair practices relating to requirement compensation, layoffs, perks,
promotion etc.
– Transformational leadership
– Better communication at levels

30. 3. Personal policy level:
- Not to use office car, money etc., for personal use
- not to misuse others for personal
- not to spoil promotional growth
-promise keeping and mutual help
4. Stakeholders level:
a. Employees level- 1. Security of job 2. better working condition 3. better recommendation 4.
participative management 5. employees welfare.
b. Customers: 1. better quality of goods 2. reasonable price 3. not create discriminatory pricing 4.
misadvirtising
c. Shareholders: 1. ensuring capital appreciation 2. ensure steady and regular dividend 3. faire
disclosure 4. protect minority shareholders’ interest 5. not window dressing balance sheet 6. protect
interest in times of mergers, acquisitions and turnover

31. 5. Organizational level:
- Right business decisions
- no hazards activities
- proper code of ethics about business
- better working environment
- equal pay for equal work
- to protect and ensure interest of stakeholders
- to reduce malpractices and whistle blower activities
- to avoid window dressing activities in financial disclosure
- formulate proper objectives
- develop organizational culture
- transparent and accountability for fair business strategies

32. 1. Improved employee retention
Strong business ethics often encourage managers to show appreciation for an employee’s hard work. As a result,
team members may be more loyal to the company and strive to be more productive. It also means employees at all
levels are less likely to be let go for reasons related to unethical behavior.
2. Stronger collaboration
Team members who practice business ethics have respect for one another and work well together. This camaraderie
not only fosters a pleasant work environment but also helps with team collaboration and productivity.
3. More effective leadership
When a manager follows business ethics, they’re more likely to treat employees well. As a result, teams are more
inclined to follow their lead. This minimizes discipline issues and teams’ trust in managers and supervisors when
tough decisions need to be made.
4. Increased professional value
When you have a positive attitude toward your work and those you work with, you can increase the quality of your
work. It also increases your value to your team and the company as a whole.
5. Report conflicts of interest
Many organizations have a policy regarding receiving gifts from clients or other external parties. Some may even
have rules about part-time work, freelance opportunities and other side jobs. In all cases, these rules are meant to
ensure employees operate within the limitations of conflicts of interest, which can impact an employee’s integrity.

33. 6. Take care of company property: You’re likely to use tools, technology, equipment and
supplies provided by your employer. These items are typically reserved for work use only.
Follow any rules related to the use and maintenance of these items to ensure you are using
company property respectfully.
7. Lawfulness: Business ethics also include abiding by legal regulations and obligations
regarding their business activities like taxes, worker safety and employment and labor laws.
Companies that work within the boundaries of the legal system are more credible and
honorable, which can establish a strong positive reputation as an employer that encourages
high-quality candidates to apply for roles.
8. Use discretion with sensitive information: Some workplaces and roles may interact with
sensitive data or materials, which requires employees to practice discretion through careful
organization, the use of passwords and other security measures. Consult your code of conduct
to understand the stipulations of discussing and handling sensitive information in the
workplace.
9. Practice integrity: Hold your work to a high standard of fairness, honesty and quality. You
should be transparent in how well you’re doing and areas you may be able to improve. Own
up to your mistakes, and work to correct them as soon as possible. Keep your team and
supervisors informed of mistakes and progress to ensure everyone is updated.
10. Keep a high attendance: Your workplace may have an attendance and tardiness policy to
hold employees accountable for going to work and being on time. Showing up for work when
you are expected demonstrates respect for your colleagues as well as your employer.
11. Respect coworkers and other office personnel: You can communicate respect for your
colleagues by treating them professionally and as you would like to be treated. Workplaces
typically abide by anti-harassment laws established by the federal government. Review these
behavior limitations or discuss the policies with your employer or human resources
department should you have questions.

34. 12. Follow dress code: The way you dress can impact the work atmosphere and the
way people relate to you. Make sure your clothing choice follows the company’s
dress code to ensure professionalism with coworkers and external parties as well as
safety and comfort while on the job.
13. Discuss issues with management: There may be times when you face an
ethical dilemma at work, and this particular type of issue may not be covered
adequately in the employee handbook or your training. For situations like this, you
can consider discussing the issue with your supervisor, the human resources
department or, if the company has one, an ethics officer. Working with someone
familiar with the company’s ethical standards can help you resolve these situations
appropriately.
14. Workplace Diversity: A business might express fairness by placing a high
importance on having a diverse workplace. Achieving a diverse workplace means
using recruiting practices that give equal opportunity to people from different
ethnic, gender and social groups. Employing a diverse range of people gives the
business the benefit of different perspectives and demonstrates that the company is
serious about equality and treating all people with respect.
15. Seek further ethics training: Should you need more guidance on ethical
behavior at work, your company may offer further training via seminars or online
courses. These can help reinforce the points made in the company’s handbook. If
you are required to take ethics training annually, be sure to do so. Over time, these
points will become familiar and will shape your business conduct.

36. Meaning: the regard that something is held to deserve; the
importance, worth, or usefulness of something.
Values -- an individual's accepted standards of right or wrong
In other words Values can be defined as those things
that are valued by someone. In other words, values are
what is considered ‘important‘ by an individual or an
organization. Examples include courage, honesty, freedom,
innovation etc.
The major differences between Ethics v/s Values are:

37. Ethics Values
Ethics refers to a system of moral
principles
Values are associated with the thought
process, a person’s sense of what is wrong
and what is right.
Ethics aligns with a professional setup Values are associated with personal
aspects of a person
Ethics has 3 major areas of study – Meta-
Ethics, Normative Ethics, Applied Ethics.
Different types of values are moral values,
social values, religious values, political
values etc.
Ethics will be consistent within a
professional setup but would vary between
2 different organizations or institutions.
Values vary from person to person, it need
not be consistent.
Ethics are determined by an institution,
organization and varied professions.
Ethics that are followed by medical
professionals will be different from ethics
followed in the public administration
domain
Values formed in a person are determined
by family values, religion, culture,
community etc.

38. 1. Integrity:
Knowing and doing what is right
A. Be Committed: Set high standards for your behavior and stick to them
even in difficult situations.
B. Be Courageous: Stand up for what you believe is best and good.
C. Be Honest: Choose words and actions that are sincere, not misleading.
D. Be Disciplined: Remain dedicated and self-controlled, even when
challenged.
C. Be Resilient: Learn from mistakes and losses; seize the opportunity to
improve.
2. Responsibility:
Embrace opportunities to contribute
A. Be Helpful: Understand and advice the group's positive goals.
B. Be Conscientious: Be aware and careful of the choices you make.
C. Be Accountable: Accept that your actions impact everyone around you.
D. Be Persevering: Work through difficulty and discouragement in pursuit of
individual and team objectives.
E. Be Reliable: Prove that others can depend on you.

39. 3. Sportsmanship:
Bring your best to all competition
A. Be Cooperative: Join teammates, opponents, coaches and officials in mutual quest
for excellence.
B. Be Fair: Compete skillfully, guided by the letter and spirit of the rules.
C. Be Gracious: Savor the challenge of a tough competitor and meet it with your finest
performance, win or lose.
D. Be Honorable: Respect the game and everyone's contributions.
E. Be Humble: Take success in stride - share the credit.
4. Respect:
Treat others the way you wish to be treated
A. Be Accepting: Support everyone's worth and dignity, regardless of background,
abilities or beliefs.
B. Be Considerate: Always be aware of and honor others' rights and feelings.
C. Be Attentive: Be ready to learn from coaches, officials and other contestants.
D. Be Encouraging: Demonstrate concern for the growth and development of all others.
E. Be Appreciative: Value the guidance of supportive adult and student leaders.
5. Servant Leadership:
Serve the common good
A. Be Empowering: Inspire and help others to grow, succeed and lead.
B. Be Visionary: Raise expectations for yourself and the team.
C. Be Interconnected: Recognize the vital link between individual effort and group
achievement.
D. Be Generous: Freely contribute hard work and support to reach the team's goals.
E. Be Energetic: Initiate action - do what needs to be done.

40. Ethical
Values of
organization
Commitmen
t to
Excellence
Law
Abiding
Honesty
Respect for
Others
Loyalty
Accountabi
lity
Reputation
& Morale
Leadership
Fairness
Concern
for Others
Integrity
Promise
Keeping

43. Culture describes a collective way of life, or
way of doing things. It is the sum of attitudes,
values, goals, and practices shared by
individuals in a group, organization, or
society.
The beliefs, values, behavior, and material
objects that constitute a people's way of life.
Culture reflects the moral and ethical beliefs
and standards that speak to how people
should behave and interact with others.
•Culture can obstruct progress, but it can
nevertheless be a tool for emancipation.
•Culture is also a goal in itself: it gives meaning to
our existence.

47. Overview of culture and ethics
1. Clear Expectations for What is Okay and
Not Okay
2. Modeling Desired Behavior (especially
from organizational leaders)
3. Reinforce the Behavior You Want, and
Don’t Reinforce the Behavior that You
Don’t Want
4. Focus on Skill Building and Problem
Solving
5. Provide the Tools, People Need to Act
Ethically
6. Provide Corrective Feedback

48. •Determines how people communicate
•Determines how people interact
•Determines how people relate to one another
•Guides day-to-day working relationships
•Determines what is appropriate behavior
•Determines how power and status are allocated

49. 1. Different cultures have different rules
of conduct.
2. Some cultures view certain ethical
practices with different levels of
condemnation.
3. The more serious problem concerns
two different ethical standards meeting
in a business transaction. e.g.-US vs.
Russian
4. This situation is characterized as
cultural conflict

50. Business culture refers to the set of behavioral and
procedural norms that can be observed within a company —
which includes its policies, procedures, ethics, values,
employee behaviors and attitudes, goals and code of
conduct. It also makes up the “personality” of a company
and defines the work environment (e.g., professional,
casual, fast-paced).
Other elements that make up company culture
include management style, expectations, company goals,
local and national government policies, benefits/perks,
opportunities to advance, the way employees feel about the
work they do and disciplinary action methods your business
uses.

51.  Leadership company culture: A business with a leadership-focused company
culture supports employee growth and focuses on helping them succeed in their
field. They tend to have great mentorship and coaching programs in place to
help employees develop their skills and offer opportunities for advancement
(e.g., internal promotions, job rotation programs, tuition reimbursement,
seminars and workshops).
 Traditional company culture: In a traditional business culture, everyone is
typically expected to adhere to strict rules set by the company, including dress
codes, company procedures and organizational hierarchy. As opposed to a more
casual company culture, traditional company cultures are often more formal
and corporate in nature (e.g, suit and tie).
 Innovative or adhocracy company culture: Innovative or adhocracy
company culture focuses on development and innovation. Tech startups are a
great example of this type of company culture. It sets aside the strict pattern of
communication in traditional cultures, implements easy communication of
ideas and accepts individuality and ingenuity from all parts of the company.
People with strong creativity often work well in this kind of business culture.

52.  Purpose culture – Company leaders and employees share altruistic values of changing
the world and ensuring global resources are shared with those who live the margins.
 Learning organizational culture – Focuses on research, innovation, creativity, learning
and development.
 Enjoyment organizational culture – Having fun and a sense of humor is what defines
this culture.
 Results organizational culture – Characterized by meeting targets, achieving goals,
and is performance-driven.
 Authority organizational culture – Is defined by strong leadership and confident
employees. It is a competitive working environment where employees strive to be the
best in their field.
 Order organizational culture – Is usually defined by rules, procedures and where
employees have very defined roles.
 Caring organization culture – Will be characterized by an environment that cares for
its employees and where there may be strong engagement and loyalty.
 Safety organizational culture –

53. 1. Develop your vision, mission and goals: Businesses often have a mission, vision and goal
statement that serves as their guiding principle when deciding what direction they want to
take their business in. It also helps customers understand the purpose of the organization and
guides employee behaviors.
Start by identifying what you want your brand to be known for and what kind of employees
you want to attract.
2. Identify your company values: Company values are the center of a company’s culture. While
the mission, vision and goal express the purpose of the organization, values serve as
behavioral guidelines and shape the mindset of your employees, giving them a purpose.
When brainstorming company values, make sure they’re inclusive of all members of
your organization. They should also be simple, easy to remember, concise and authentic. Your
list of values doesn’t need to be lengthy, but needs to cover the core of how everyone should
behave at your company.
3. Live by your company values: Company values shouldn’t just be buzzwords listed on your
website or posted on your office walls — they should be actionable and integrated in your
employees’ regular activities. In other words, your company values should be visible in the
day-to-day operations of your company.
4. Hire the right people: The most important part of building and maintaining a positive
business culture is to employ the right people. Skills and talent are just a few things you
should look for when screening applicants. It’s also important to look at the applicant’s ability
to adapt to and embrace your company’s values. More importantly, most people have the
tendency to cooperate and work well with people they agree and share similar personal values
with.

56. Basis For Comparison Law Ethics
Meaning The law refers to a systematic
body of rules that governs the
whole society and the actions of its
individual members
Ethics is a branch of moral
philosophy that guides people
about the basic human conduct.
What is it? Set of rules and regulations Set of guidelines
Governed By Government Individual, Legal and
Professional norms
Expression Expressed and published in
writing.
They are abstract.
Violation Violation of law is not permissible
which may result in punishment
like imprisonment or fine or both
There is no punishment for
violation of ethics.
Objective Law is created with an intent to
maintain social order and peace in
the society and provide protection
to all the citizens
Ethics are made to help people
to decide what is right or wrong
and how to act.
Binding Law has a legal binding. Ethics do not have a binding
nature.

57. The major differences between law and
ethics are mentioned below:
1.The law is defined as the systematic
body of rules that governs the whole
society and the actions of its
individual members. Ethics means the
science of a standard human conduct.
2.The law consists of a set of rules and
regulations, whereas Ethics
comprises of guidelines and
principles that inform people about
how to live or how to behave in a
particular situation.
3.The law is created by the Government,
which may be local, regional,
national or international. On the other
hand, ethics are governed by an
individual, legal or professional
norms, i.e. workplace ethics,
4. The law is expressed in the
constitution in a written form. As
opposed to ethics, it cannot be found
in writing form.
5. The breach of law may result in
punishment or penalty, or both which
is not in the case of breach of ethics.
6. The objective of the law is to maintain
social order and peace within the
nation and protection to all the
citizens. Unlike, ethics that are the
code of conduct that helps a person to
decide what is right or wrong and how
to act.
7. The law creates a legal binding, but
ethics has no such binding on the
people.

58. • one will not get punished for not following social ethics, but
will rather get socially isolated, whereas one will get punished
for not following the law. Moreover, ethics stand as the
fundamental principles for laws in a country.
• Ethics is subjective and flexible, while law is objective and
assertive.
• Ethics does not require physical evidence in the verdict; law
requires physical evidence in the verdict.
• Ethics provides guidance, while law is demanding.
• Ethics does not require tools to ensure the implementation;
law requires enforcement agencies for implementation.

59.  Both aim at creating a society where
everyone has better quality living
 Accordingly, they aim at guiding people on
how to behave in a manner that will benefit
themselves as well as others around them.
 As tools to set the order in society.
 Learn and make human behavior as the
object.
• Give space limitation for the right authority
of a person in social life in order not to
adverse each other.
• The source is from thought and experience.
• Arouse human awareness.

60. • 1. Ethics are rules of conduct. A Laws are rules developed by
governments in order to provide balance in society and
protection to its citizens.
• 2. Ethics comes from people’s awareness of what is right and
wrong. A Laws are enforced by governments to its people.
• 3. Ethics are moral codes which every person must conform to. A
Laws are codifications of ethics meant to regulate society.
• 4. Ethics does not carry any punishment to anyone who violates
it. A The law will punish anyone who happens to violate it.
• 5. Ethics comes from within a person’s moral values. A Laws are
made with ethics as a guiding principle.

61. Types of
Ethics
Supernaturalis
m
Subjectivism
Consequentiali
sm
Intuitionism
Emotivism
Duty-Based
Ethics
Virtue ethics
Situation ethics

62. This theory makes ethics depend on God. It teaches that:
• the only source of moral rules is God
• something is good because God says it is
• the way to lead a good life is to do what God wants
Can God be the ultimate source of good?
Throughout history one puzzle has made it difficult to base ethics on God:
Is a thing good because God desires it?
or
Does God desire a thing because it is good?
The Ancient Greek philosopher Plato concluded that God desires a thing because it is good. God's
desire doesn't make a thing good - the thing would be good regardless of God.
If Plato is right then the supernaturalism theory is pretty unhelpful, because it doesn't reveal what makes
something good or bad.
God's desire would be at best a useful way of discovering what is good and what is bad, but wouldn't
tell us anything more than that.
And here's another problem:
If God desired something that everyone thinks is bad - would that make it good?

63. Subjectivism teaches that there are no objective moral truths out there.
 There are no objective moral facts. Therefore 'murder is wrong' can't be objectively true
Many forms of subjectivism go a bit further and teach that moral statements describe
how the speaker feels about a particular ethical issue.
 Moral statements are just factual statements about the attitude the speaker holds on a
particular issue
Some forms of subjectivism generalise this idea to come up with:
 Moral statements are just factual statements about the attitude normal human
beings hold on a particular issue
And this may ultimately lead us to this conclusion about moral truths:
 Moral judgements are dependent on the feelings and attitudes of the persons who think
about such things

64. Consequentialism is based on two principles:
 Whether an act is right or wrong depends only on the results of that act
 The more good consequences an act produces, the better or more right that act
It gives us this guidance when faced with a moral dilemma:
 A person should choose the action that maximises good consequences
And it gives this general guidance on how to live:
 People should live so as to maximise good consequences
Different forms of consequentialism differ over what the good thing is that should be
maximised.
1. Utilitarianism states that people should maximise human welfare or well-being
(which they used to call 'utility' - hence the name).
2. Hedonism states that people should maximise human pleasure.
3. Other forms of consequentialism take a more subtle approach; for example
stating that people should maximise the satisfaction of their fully informed and
rational preferences.

65. This far-fetched example may make things clearer:
 Suppose that by killing X, an entirely innocent
person, we can save the lives of 10 other innocent
people
 A consequentialist would say that killing X is
justified because it would result in only 1 person
dying, rather than 10 people dying
 A non-consequentialist would say it is inherently
wrong to murder people and refuse to kill X, even
though not killing X leads to the death of 9 more
people than killing

66. Intuitionism teaches three main things:
 There are real objective moral truths that are independent of
human beings.
 These are fundamental truths that can't be broken down
into parts or defined by reference to anything except
other moral truths.
 Human beings can discover these truths by using their
minds in a particular, intuitive way.
Intuitionism does not mean that all moral decisions are
reached by relying on intuition. Intuition enables the
discovery of the basic moral truths, and everyday moral
decision-making then involves thinking about the choices
available and making moral judgments in an ordinary sort
of way.

67. 1. they don't think that objective moral truths exist
2. they don't think that there is a process of moral
intuition
3. there's no way for a person to distinguish between
something actually being right and it merely seeming
right to that person
4. if intuitionism worked properly, everyone would
come to the same moral conclusions, but they don't

68. In Emotivism a moral statement isn't literally a statement about the speaker's
feelings on the topic, but expresses those feelings with emotive force.
When an emotivist says 'murder is wrong' it's like saying 'down with murder' or
'murder, yecch!' or just saying 'murder' while pulling a horrified face, or
making a thumbs-down gesture at the same time as saying 'murder is wrong'.
Emotivists teach that:
 Moral statements are meaningless.
This means that the first half of the statement 'it was wrong to murder Akash'
adds nothing to the non-moral information that Akash has been murdered.
 Moral statements only express the speaker's feelings about the issue.
Later emotivists added this idea to Emotivism:
 By expressing the speaker's feelings about a moral issue moral statements may
influence another person's thoughts and conduct.

69. Deontological (duty-based) ethics are concerned with what people do, not with the consequences of their
actions.
 Do the right thing.
 Do it because it's the right thing to do.
 Don't do wrong things.
 Avoid them because they are wrong.
The word 'deontological' comes from the Greek word deon, which means 'duty'.
Duty-based ethics are usually what people are talking about when they refer to 'the principle of the
thing'.
Duty-based ethics teaches that some acts are right or wrong because of the sorts of things they are, and
people have a duty to act accordingly, regardless of the good or bad consequences that may be
produced.
Deontologists live in a universe of moral rules, such as:
 It is wrong to kill innocent people
 It is wrong to theft god statue
 It is wrong to tell lies
 It is right to keep promises

70. Virtue ethics is person rather than action based: it looks at the virtue or
moral character of the person carrying out an action, rather than at
ethical duties and rules, or the consequences of particular actions.
Virtue ethics not only deals with the rightness or wrongness of
individual actions, it provides guidance as to the sort of characteristics
and behaviours a good person will seek to achieve.
In that way, virtue ethics is concerned with the whole of a person's life,
rather than particular episodes or actions.
Principles
 Virtue ethics teaches:
 An action is only right if it is an action that a virtuous person would
carry out in the same circumstances.
 A virtuous person is a person who acts virtuously
 A virtue is a moral characteristic that a person needs to live well.

71. In situation ethics, right and wrong depend upon the situation.
There are no universal moral rules or rights - each case is unique and
deserves a unique solution.
Situation ethics rejects 'prefabricated decisions and prescriptive rules'.
It teaches that ethical decisions should follow flexible guidelines rather
than absolute rules, and be taken on a case by case basis.
So a person who practices situation ethics approaches ethical problems
with some general moral principles rather than a rigorous set of ethical
laws and is prepared to give up even those principles if doing so will
lead to a greater good.

72. o Moral judgments are decisions, not conclusions
◦ Decisions ought to be made situationally, not prescriptively
◦ We should seek the well-being of people, rather than love principles.
o Only one thing is intrinsically good, namely, love: nothing else
◦ Love, in this context, means desiring and acting to promote the wellbeing of
people
◦ Nothing is good or bad except as it helps or hurts persons
◦ The highest good is human welfare and happiness (but not, necessarily,
pleasure)
◦ Whatever is most loving in a situation is right and good--not merely
something to be excused as a lesser evil
◦ Moral theology seeks to work out love's strategy, and applied ethics devises
love's tactics.

73. Corporate
Responsibility
Economic
Responsibility
Technical
Morality
Loyalty Towards
Organization
Personal
Responsibilities
and Loyalties
Official
Responsibilities

74.  Corporate Responsibility: The organization works as a separate legal entity with certain moral
and ethical obligations. Such ethics safeguard the interest of all the internal and external parties
associated with the firm. This includes the employees, customers, and shareholders.
 Social Responsibility: Making profits should not be at the cost of society. Therefore, corporate
social responsibilities (CSR) have been a common practice where businesses work towards
environmental protection, social causes, and spreading awareness.
 Personal Responsibility: Employees are expected to act responsibly with honesty, diligence,
punctuality, and willingness to perform excepted duties. Individuals should settle dues in time
and avoid criminal acts.
 Technology Ethics: In the 21st century, companies have adopted e-commerce practices.
Technology ethics includes customer-privacy, personal information, and intellectual property fair
practices.
 Fairness: Favouritism is highly unethical. Every individual possesses certain personal bias. But
at the workplace, personal beliefs and biases should not affect decision-making. The firm has to
ensure fair chances of growth and promotion for all.
 Trustworthiness and Transparency: Businesses should maintain transparency in business
practices and financial reports.