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Introduction<br />Business ethics is a branch of ethics which prescribes standards of how the business is to be carried out.<br />Guidelines to stakeholders<br />The responsibility of the managers and employees<br />The application of ethical judgments to business activities.<br />
WHAT IS ETHICAL BEHAVIOUR?<br />Ethical behavior is that which is morally accepted as "good" and "right" as opposed to "bad" or "wrong" <br />The advantages of ethical behaviour include:<br /><ul><li>Higher revenues – demand from positive consumer support
Improved brand and business awareness and recognition
New sources of finance – e.g. from ethical investors</li></li></ul><li>Relationship between business and ethics<br />Businesses that exhibit and promote strong corporate codes of ethics are more prosperous in the long run<br />Enhances a company's reputation<br />The highly competitive environment in today's global economy puts pressures on company leaders to remain profitable<br />
Need for business ethics<br />Introducing Socialism in Business<br />Interest of Industry<br />Buyers Market<br />Better Relations with Society<br />Advantages to Business and Society<br />
Importance of ethics in business <br />Goodwill<br />Profitability<br />Going concern is assured<br />Sustainability<br />Survival of heated competition<br />Safety from legal perspectives.<br />
Types of ethics<br />Normative ethics<br />Applied ethics<br />
Morality<br />Derived from latin word “moralities”.<br />It is a system of conduct which is virtuous.<br />Refers to personal or cultural values.<br />It refers to what is considered right or wrong by people.<br />
Legality <br />Legality means lawfulness by virtue of conformity to al legal statue.<br />
Concept of duty<br />Rights and duties are correlative<br />Duties are what he/she owes to others.<br />
Ethical organisation<br />Organisation should posses ethical behaviour.<br />Three theories provide a framework fro judging ethical nature in business.<br />1. theory of corporate excellence.<br />2. Ethics and shareholders value.<br />3. ethics and corporate governance.<br />
Code of conduct<br />A state of rules to guide behaviour and decisions.<br />
Why Have a Code of Conduct<br />A code is an open disclosure of the way an organization operates<br />Codes of conduct offer an invaluable opportunity for responsible organizations to create a positive public identity for themselves<br />Tool to encourage discussions of ethics and to improve how employees/members deal with the ethical dilemmas, prejudices and gray areas <br />