Introduction to Business Ethics

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Introduction to Business Ethics.

My Lecture to MBA students 2013

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Introduction to Business Ethics

  1. 1. Dhananjay Parkhe Business Ethics 1
  2. 2.  Prof. Dhananjay Parkhe ‘Jay’  B.Sc(Agri. Hons),( University Top 5) M.A. Econ. PGDMM ( Topper) , PGDBM ( Incomplete)  Certified Independent Director, Executive Coach, C Suite Mentor,  Certified Excellence Assessor. CII EXIM BANK EXCELLENCE AWARDS. Certified Assessor – ISO 9001, ISO 18001, ISO 14001, SA 8000, Investor in People  Retired MNC Director – CSR, INTEGRITY, SECURITY, PUBLIC AFFAIRS AND FRAUD INVESTIGATIONS, Quality Management Systems Over 5 Billion Euros Dutch MNC. Indian Business turnover – Over 1000 Crores .Ex-Chairman – Disciplinary Action Committee, Ethics and Compliance Committee. EX- Regional Director/ Regional General Manager – Profit Centre Head Over 150 Crore Business Responsibility  Ex-Governing body member – Indian Institute of Foreign Trade, New Delhi. Ex- Advisory Panel Member – Central Board of Film Certification, Mumbai. Ex- Board Member – Express Industry Council of India. Ex- Core Committee Member – CII Road Safety Committee. Life Member – National HRD Network
  3. 3.  Prof. Dhananjay Parkhe ‘Jay’  Advisor – Corporate Executive Education and External Affairs AND Academic Council Member – Samvit School of Infrastructure Business, Pune ( Affiliated to Mysore University).  Failed Entrepreneur ( Courier, Logistics, Headhunter, International Trading, Consulting, Training and Development)  Worked with Bank of India, Madras Fertilizers Limited ( Both Public Sector). Hico Products Limited ( Industrial Chemicals and Agrochemicals), Skypak Couriers Ltd, TNT INDIA PVT LTD.  Associated with CII, FICCI, ASSOCHAM, BCIC, DMA, BMA, EUCCI, ECGI, EAIE, BCAI, etc.  Associated with Symbiosis since 2000. Off and On Guest Faculty at SIBM Pune, MET Mumbai, MERC Pune, Khalsa IBM, Mumbai, Academy of Excellence, Mumbai etc.
  4. 4.  I treat Mentoring as my personal CSR. My personal - Giving back to the Society.  The Society, and the helpful people who helped me to come up this far.  From humble beginnings, studying with the help of Educational Free- ship by charitable people, Merit and Merit cum poverty scholarships; to allowing me to work and earn while keeping my focus on learning, (Child labor was not a bad thing in the ‘60’s and ‘70’s) by doing part- time jobs, I feel that I owe it to Society and do something. Mentoring is a subject close to my heart.  I had some great mentors myself, early in my career, and in recent past I've been devoting well over half of my time to mentoring others.   First, I think you should never have to pay a mentor. An adviser who asks to be paid is not a mentor. He or she is a consultant, and the relationship is a commercial one. ( I do Pro bono Consulting as well. This is different from my mentoring.) Business Ethics 6
  5. 5.  To me, mentoring relationship is based strictly on mutual respect. As a mentor I am motivated by nothing more than the desire to help. The person receiving the mentoring should be there to learn from my experience and advice.  Second, a mentor's role is not to advise you but rather to give you a different way of thinking. I often have to remind my mentees that I'm not telling them what they should do. I'm simply offering another perspective, based on my experience. It's critical that they consider what I say to them, but then make their own decisions.  Otherwise, if things don't work out, they will blame my advice—and miss out on the opportunity to learn from the best teacher of all: experience. A mentor is not so much an adviser but a sounding board.  As for finding a mentor, there is no particular formula. from my family members, Teachers, Spiritual Gurus, Political leaders, Religious leaders and Bosses.  My mentees have also come from various sources—requests from students, friends, past colleagues, meetings, conferences, my Networks, my Linkedin Groups, , as also calls out of the blue.   You can reach me on prof_jay@hotmail.com Business Ethics 7
  6. 6. Then Satan said, "Let there be math."
  7. 7. 1- 10
  8. 8. Immanuel Kant
  9. 9. The meaning of "ethics" is hard to pin down, and the views many people have about ethics are shaky. Business Ethics 21
  10. 10. Business ethics is not about scolding, moralizing, or telling people to be nice It can’t just be dismissed altogether because ethics in business is unavoidable You can choose to not understand the ethics you’re doing (you can always keep your eyes and ears 1-23
  11. 11. This SIBM Course in Business Ethics and Social Responsibility delves into issues which are now very current, but which have far-reaching consequences for businesses, stakeholders and the communities with which it interacts. The course is suitable for any type of business or organization because it begins with a philosophical base. This understanding can then be applied to any specialization of business. Business Ethics 26
  12. 12.  Business Ethics: The application of ethical standards to business behavior.  Code of Ethics: A company’s written standards of ethical behavior that are designed to guide managers and employees in making the decisions and choices they face every day.  Corporate Governance: The system by which business corporations are directed and controlled.  Ethical Dilemma: A situation in which there is no obvious right or wrong decision, but rather a right or right answer.  Oxymoron: The combination of two contradictory terms, such as “deafening silence” or “jumbo shrimp.”  Stakeholder: Someone with a share or interest in a business enterprise.
  13. 13. Session/ Chapter Outline Session Key Terms and Definitions Main Lecture Slides Session / Lecture Notes Session Exercises Session Quiz / Discussion/ Question Answers Session Related Resources Folders – Docs, pdf, ppt Business Ethics 30
  14. 14.  Students are assessed continuously throughout the Course (i.e. per module). Students are required to submit:  Two projects/ Case Studies addressing each of the following subject areas in Parts One and Two, of approximately 12 to 18 slides each.  One Class Quiz Tests.  One Final Written Test Business Ethics 31 What shall WE learn?
  15. 15.  Students in this Course work independently and in self-Students in this Course work independently and in self- managed groups of 8-9 students in each Group.managed groups of 8-9 students in each Group.  Independent work will be expected of all students.Independent work will be expected of all students.  Online interactive forums may be used as medium forOnline interactive forums may be used as medium for program delivery.program delivery.  Students will be required to acquire two mainStudents will be required to acquire two main textbooks that will see them through the Course.textbooks that will see them through the Course.  Details will be provided by PGP Coordinators. StudentsDetails will be provided by PGP Coordinators. Students will follow up subsidiary reading from thewill follow up subsidiary reading from the bibliographies in these books, from other sources, orbibliographies in these books, from other sources, or via guidance from their mentor.via guidance from their mentor. Business Ethics 33
  16. 16. Develop ethical reasoning skills to tackle ethical issues in your work Apply these skills to the resolution of practical ethical problems that arise across working life Focus on ethical issues arising in your own area of work, and discuss your experience with people from other professional backgrounds Business Ethics 35
  17. 17.  Some years ago, sociologist Raymond Baumhart asked business people,"What does ethics mean to you?” Among their replies were theAmong their replies were the following:following: Business Ethics 36
  18. 18.  "Ethics has to do with what my feelings tell me is right or wrong.“  "Ethics has to do with my religious beliefs.“  "Being ethical is doing what the law requires.“  "Ethics consists of the standards of behaviour our society accepts.“  "I don't know what the word means."  These replies might be typical of our own. The meaning of "ethics" is hard to pin down, and the views many people have about ethics are shaky. Business Ethics 37
  19. 19.  Webster: Relating to, or treating of morals. Science of morals, moral principles, rules of conduct.  Weiss: Asking what is “right and wrong, good and bad, and harmful and beneficial…”  Bruce Kaye: (Law, Morality and the Bible) “The ultimate goal of the day-to-day ethical actions of the Christian is the glory of God.” Business Ethics 38
  20. 20. “In just about every gangster movie there is a scene where the mob boss says, 'Hey, I’m just a businessman.” ― William Hageman
  21. 21. “There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” Business Ethics 40
  22. 22. “It is forbidden to kill; therefore all murderers are punished unless they kill in large numbers and to the sound of trumpets.” Business Ethics 41
  23. 23. It will help Management Students: To foster an understanding of the moral, social and economic environments within which moral issues occur To introduce to the Students the moral concepts and theories that are required to tackle these problems To develop the necessary reasoning and analytical skills for accomplishing this. Business Ethics 42
  24. 24. Is business about doing the right thing for and by everyone? Are you Serious about building and protecting your business's reputation? Do you Want your business to be entrenched within the community in which it operates? Business Ethics 43
  25. 25. “There are two types of people in this world, good and bad. The good sleep better, but the bad seem to enjoy the waking hours much more.” Business Ethics 45
  26. 26. Ethics is not routinely taught to science students except in medicine, and I think it should be.and I think it should be.
  27. 27. Divorced from ethics, leadership is reduced to management and politics to mere technique. Business Ethics 47
  28. 28. Ethics are not necessarily to do with being law-abiding. I am very interested in the moral path, doing the right thing. Business Ethics 49
  29. 29. Business Ethics 50
  30. 30. Business Ethics 51
  31. 31. Laura Nash* has defined business ethics as “the study of how personal moral norms apply to the activities and goals of commercial enterprise,” as dealing with three basic areas of managerial decision making: Business Ethics 52
  32. 32. 1. Choices about what the laws should be and whether to follow them 2. Choices about economic and social issues outside the domain of law 3. Choices about the priority of self-interest over the company’s interests *Laura Nash, Ph.D., has been an author, educator and consultant in business ethics and leadership for the past twenty five years. Business Ethics 53
  33. 33.  "Always do right - this will gratify some and astonish the rest.”  Don't be too honest in this world, straight trees get cut first.  "All wrong-doing is done in the sincere belief that it is the best thing to do.”  A man without ethics is a wild beast loosed upon this world. Albert Camus Business Ethics 54
  34. 34. Business Ethics 55 The Voice There is a voice inside of you That whispers all day long, “I feel that this is right for me, I know that this is wrong”.
  35. 35.  If you knew a woman who was pregnant, who had eight children already, three who were deaf, two who were blind, one mentally retarded, and she had a veneral disease, would you recommend that she have an abortion?  Remember your honest answer and go to question 2. Business Ethics 56
  36. 36.  It is time to elect the world leader, and yours is the deciding vote. Here are the facts about the three leading candidates: Business Ethics 57
  37. 37.  Candidate A: He associates with crooked politicians, and consults with astrologers. He's had two mistresses. He also chain smokes and drinks up to ten Martinis a day.  Candidate B: He was ejected from office twice, sleeps until noon, used opium in college and drinks a large amounts of whisky every evening.  Candidate C: He is a decorated war hero. He's a vegetarian, doesn't smoke, drinks an occasional beer and hasn't had any extra-marital affairs.  Which of these candidates would be your choice? Business Ethics 58
  38. 38.  Decide, then see the answer below. Candidate A is Franklin D Roosevelt, Candidate B is Winston Churchill, and Candidate C is Adolph Hitler.  And by the way the answer to the abortion question...  If you said yes, you just killed Beethoven Business Ethics 59
  39. 39. “Because every exchange is always a relationship, to get the most while giving the least is unjust, unethical, antisocial, abusive, perhaps 'evil.' Yet predatory commerce ("the free market" as it is euphemistically called) operates regularly on the principle of 'get the most and pay the least.” ― James Hillman
  40. 40.  Top management keeps promises and discusses the importance of ethics  Good role models for ethical behavior; honesty and respect practiced more  Less unethical behavior observed since 2000  More misconduct being reported by employees since 2000 Business Ethics 62
  41. 41.  Government  Sales  Law  Media  Finance  Medicine  Banking  Manufacturing Business Ethics 63
  42. 42. Business Ethics 66
  43. 43. 1- 67
  44. 44. Business Ethics 68
  45. 45. Business Ethics 69
  46. 46. 1-71
  47. 47. Quick and easy … First thoughts that comes to your mind. Business Ethics 72
  48. 48.  Answer each question with your first reaction.  Circle the number,  from 1 to 4, that best represents your beliefs  if 1 represents “Completely Agree” and  4 represents “Completely Disagree.” Business Ethics 73 QUICK TEST OF YOUR ETHICS BELIEFS
  49. 49. I consider myself the type of person who does whatever it takes to get the job done, period. 1 2 3 4 Ethics should be taught at home and in the family, not in professional or higher education. 1 2 3 4 I believe that the “golden rule” is that the person who has the gold rules. 1 2 3 4 Rules are for people who don’t really want to make it to the top of a company. 1 2 3 4 Business Ethics 74
  50. 50. Acting ethically at home and with friends is not the same as acting ethically on the job. 1 2 3 4 I would do what is needed to promote my own career in a company, short of committing a serious crime. 1 2 3 4 Cut-throat competition is part of getting ahead in the business world. 1 2 3 4 Lying is usually necessary to succeed in business. 1 2 3 4 Business Ethics 75
  51. 51. I would hide truthful information about someone or something at work to save my job. 1 2 3 4 I consider money to be the most important reason for working at a job or in an organization. 1 2 3 4 Add up all the points. • Total Score is _________ Business Ethics 76
  52. 52. Add up all the numbers you circled. What was your grade? 10? 15? 30? 40? …………………………………………….. The lower the score, the more questionable are your ethical principles regarding business activities. 10 is the lowest … 40 is the highest. Consider why you answered as you did. Business Ethics 77
  53. 53. Business Ethics 78
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  55. 55.  Should you be allowed to surf the Web at work? Why or why not?  Are your telephone calls monitored where you work? If they are, how does that make you feel? If they aren’t monitored, how would you feel if that policy were introduced?  What would you do if someone sent you an email at work that you found offensive? Would you just delete it or say something to that person?  If you had a chance to work from home and telecommute, would you take it? If the opportunity meant that you had to allow your company to monitor every call on your phone and every keystroke on your computer, would you still take it? Explain why or why not. Business Ethics 80
  56. 56. Conclusion  It’s not true that doing business equals being deceitful, so it’s false to assert that business ethics is necessary to cure the ills of commerce  It is true that the business world may be left to control its own excesses through marketplace pressure, but that doesn’t mean business escapes ethics 1-89
  57. 57. Business Ethics 91

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