Business Ethics _MBA

1. - DR. TRILOK SHARMA
- 9081900911 / drtriloks@gmail.com
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2. Where we were?
 Ehtics is the study of understanding whether what we do is good and
right.
 Business Ethics is a subset of Ethics in General.
 Even though it is individuals who take decisions, they do so under a
framework laid down by corporations, and hence business or
corporate ethics becomes a separate field of study.
 It is assumed that business can and should be run Ethically, and we
need to work on the issues involved
 Running a business ethically may be better in the long run, because:
a. it enhances the credibility of the management
b. it enhances trust reposed in the management; and
c. it can reduce costs, especially the transaction costs involved in
drawing up elaborate contracts and fighting expensive court battles.
 The top Management plays a role in creating an ethical climate in the
organization and sending the right signals.
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3. Philosophical Foundations
 Can you analyze an ethical issue in a way that you can
justify to others?
 Today we will learn some ways of doing this.
 Always remember, Ethical issues and their solutions are
not like solving mathematical problems with a single
solution. There could be multiple right answers.
 “Theories of Ethics” are the outcomes of the thinking of
different Philosophers who tried to grapple with the
basic question, How do you know that what you are
doing is right???
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4.  The case of Dying Fish (page 22) gives us 3 different theories to
deal with an ethical issue:
Consequentialism Or Utilitarianism:-
Principle of Greatest good for the
greatest number. (which focuses on
Consequences)
Principle of Duty, Right and Justice
Universal Principles, Theory of Moral
Instinct
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Philosophical Foundations

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Philosophical Foundations

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Philosophical Foundations

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Philosophical Foundations
Duties, Rights & Justice
According to John Rawls
 Equitable distribution of goods and services
 “Veil of Ignorance”
 Legal rights and moral rights
 Conflicts & hierarchies
To do in a particular situation:
1. Who is affected by my action?
2. What is my duty towards each person? What are my priorities?
3. If I apply these priorities, does this lead to any injustice or unfairness?
4. Act as per the duties set out in item-2 above, unless the answer to
item 3 is yes. In that case, modify to eliminate unfairness.

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Philosophical Foundations
Richard De George…..on Justice
 Compensatory Justice
 Retributive Justice
 Distributive Justice
 Procedural Justice

9. Theoretical positions
 Soul based school
Universal codes possible – Take recourse to spirituality
– Vedanta, Hindu, Christian / catholic scriptures, yoga
and meditation
 Mind based school
Choice and rationality – Inherent goodness of
mankind – Soul a metaphysical construct
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Philosophical Foundations

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Philosophical Foundations
Theoretical
Underpinnings:-
 Teleological
Theories
 Deontological
Theories
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Do ends justify means ?

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Philosophical Foundations

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Philosophical Foundations
Teleological Approach

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Philosophical Foundations
Religious Perspectives
 Faith & intuition (rather than reason or
knowledge) provide the foundation of
moral life.
Ten Commandments
Confucius Maxims
“Dharma”

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Philosophical Foundations
TEN COMMANDMENTS OF SANATAN DHARMA
 In Ashtanga yoga part of the Patanjali Maharshi’s yoga sutra, 10
commandments are given as primary requirement for learning
and teaching yoga. But these commandments are essential
qualities of all persons and can be applied in his/ her daily walks
of life.
 These commandments can be learnt under two headings:-

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Philosophical Foundations
Yama are ethical discipline
transcending creed, country, age
and time. These commandments
are rules of morality for the society
and the individual.
Niyama are rules of conduct that apply
to individual and are self-purification by
discipline.
Five niyamas are:-
1. Ahimsa (non violence)
2. Satya (telling and doing
truth)
3. Asteya (stealing)
4. Bramahmacharya
5. Aparigraha (non-coveting)
1. Shaucha (purity)
2. Santosha (contentment)
3. Tapas (ardour or austerity)
4. Swadhyay (study of self)
5. Ishwara pranidhana.(sakshi
bhav)

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Philosophical Foundations
Let us look back:
1. It is possible to reason, up to a point, the ethics of a decision.
2. There are multiple approaches that needs to be utilized. They may
lead to different conclusions. Again, you need to apply your value
system to make a choice.
3. No matter what approach you take, ethical decisions are not like
engineering problems where some formulae can be applied. The
context is always important.
4. Appreciation of how to apply the principles in a context can be
done only by reflection and development of your personality and
character.