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Business Ethics


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Business Ethics

  1. 1. Business Ethics
  2. 2. Ethics <ul><li>Is a latin word </li></ul><ul><li>Greek word is ethikos </li></ul><ul><li>The above pertaining to character </li></ul><ul><li>Field of ethics involves systematizing , defending and recommending concepts of right and wrong behavior </li></ul><ul><li>It deals with certain standard of human conduct and morals. </li></ul><ul><li>Ethics is a mass of moral principles or set of values about what is right or wrong, fair or unfair, proper or improper. </li></ul>
  3. 3. Ethics <ul><li>What is right is ethical and what is wrong is unethical. </li></ul><ul><li>Phillip Wheel Wright – Ethics is the branch of philosophy which is the systematic study of selective choice – of the standards of right and wrong and by which it may be ultimately be directed. </li></ul>
  4. 4. Why study ethics <ul><li>LPG has brought sweeping changes in the concept of doing business. </li></ul><ul><li>Corruption, Nepotism, Scams and deterioration of human values </li></ul><ul><li>Competition leading to violation of the principles of proper public conduct. </li></ul><ul><li>Nexus between business, crime and politics </li></ul><ul><li>So much so that AICTE has recommended starting business ethics as a course in management curriculum in 1995 itself </li></ul>
  5. 5. Objectives of ethics <ul><li>Define the goodness of man and establish a standard for the same. </li></ul><ul><li>Set/establish moral standards/norms of behavior </li></ul><ul><li>Overall study of human behavior with a view to assessing what is moral and what is immoral </li></ul><ul><li>Apply judgment on human behavior based on the above standards </li></ul><ul><li>Suggest moral behavior – Do’s and Don’ts </li></ul><ul><li>Opinion about human conduct in general </li></ul>
  6. 6. <ul><li>Morality – A set of rules to guide the actions of an individual human being. </li></ul><ul><li>Development of ethics is dependent on the religious morality </li></ul><ul><li>Respect for Law is an ethical value – Law is a code of conduct which the authority in power prescribes for society. It is concerned with the minimum regulation necessary for public order which is enacted by govt. Law differs from ethics in its option to use force when required and in fact it is backed by power. </li></ul>
  7. 7. <ul><li>Ethics and values – Thin line which separates ethics from values. </li></ul><ul><li>We can convert values into rules of behavior that can be derived as ethics. </li></ul>
  8. 8. Business Ethics <ul><li>Application of general ethical rules to business behavior </li></ul><ul><li>Rules of business by which propriety of business activity may be judged </li></ul><ul><li>Cater Mcnamara – Business ethics is generally coming to know what is right or wrong in the workplace and doing what is right. </li></ul><ul><li>John Donaldson – The systematic study of ethical matters pertaining to business, industry, institutions and beliefs. </li></ul>
  9. 9. 3 C’s of Business Ethics <ul><li>Compliance </li></ul><ul><li>Laws </li></ul><ul><li>Principles of morality </li></ul><ul><li>Policy of the Company </li></ul><ul><li>Contribution </li></ul><ul><li>Core values </li></ul><ul><li>Quality of products/services </li></ul><ul><li>Employment </li></ul><ul><li>Usefulness of activities to surroundings </li></ul><ul><li>QWL </li></ul><ul><li>Consequences of Business Activity </li></ul><ul><li>Towards environment </li></ul><ul><li>Social responsibility towards stakeholders </li></ul><ul><li>Good Public Image </li></ul>
  10. 10. Need for Business ethics <ul><li>Businesses operate within the society </li></ul><ul><li>Every business wants to prosper and survive for long. </li></ul><ul><li>Businesses need to function as a responsible corporate citizen of the country </li></ul>
  11. 11. Business Ethics <ul><li>Ethical diagnosis of past evenings, happenings, clarifying the standards . </li></ul><ul><li>Provides rational methods for answering the present situation and future methods. </li></ul><ul><li>Provides therapeutic advice when facing the present dilemmas and future dangers. </li></ul>
  12. 12. Good business ethics promotes good business Backed up by research findings of many <ul><li>Positive consequences – Trust and confidence in the relationship </li></ul><ul><li>Goodwill of the Business – Good ethical behavior generates goodwill for the Business </li></ul><ul><li>Protection – Ethics protects people in dealing with each other. </li></ul><ul><li>Self-satisfaction – Ethics provide self-satisfaction to the sub-conscious mind. </li></ul>
  13. 13. <ul><li>Good business ethics encourages others also. </li></ul><ul><li>Ethics leads to development and success </li></ul>
  14. 14. Thank You