This document discusses business ethics and provides an overview of the topic. It begins by defining business ethics and noting that it guides businesses according to morally correct and socially acceptable norms. It then discusses the objectives of understanding business ethics, including comprehending its basics and significance. Several key aspects of business ethics are examined, such as definitions, values, morals, behaviors, principles, and why ethics are important in today's business world. Factors that can influence business ethics, both internal and external, are also outlined. Overall, the document provides a comprehensive introduction to the concept of business ethics.

1. Business Ethics
Dr. Trilok Sharma

2. Session-1:
A Comprehensive Perspective

3. Business
Ethics??
What is
that ???
‘Business Ethics’
Isn’t it an oxymoron ?
★ Purpose of Business….
★ Purpose of Ethics….

4. Business
Ethics??
What is
that ???

5. Business
Ethics??
What is
that ???

6. Business
Ethics??
What is
that ???

8. Objectives
● To understand the basics of ethics and its significance in the
business.
● To understand the various factors affecting business ethics.
● To develop the competence of the students in understanding the
scope, advantage and limitations of business ethics.
● To impart the knowledge about the ethics and values in business.

9. Introduction
In the current globally competitive business environment
ethical conduct is the key to success for every business
organisation.
Ethic defines a thin line between wrong and right, it
basically guides an individual or an organisation according
to the morally correct and socially acceptable norms.

10. Definitions
“A system of accepted beliefs that control behaviour, especially such a system based on
morals.” -Cambridge dictionary.
“Moral principles that govern a person’s behaviour or the conducting of an activity.”
Oxford dictionary.
"Business ethics is the study of business situations, activities and decisions where issues
of rights and wrongs are addressed". -Andrew
Crane.
In nutshell it can be said that the business ethics are the broad guidelines which steers an
organisation in the legitimate and socially accepted pathway that leads to long run profitability for
the organisation and welfare of the society.

11. Values
Morals
Behaviour
➔ Values are beliefs and thoughts of a
community or culture that stimulate them to
act in a certain manner.
➔ It triggers their inner concise to behave in a
certain way.
➔ Values have an impact on the way an
individual responds or behaves in the given
circumstances. Honesty, truthfulness, fairness
etc are examples of personal values.
➔ In many situations the value set of an
individual defines his actions.
➔ An individual derives values from his/her
socio cultural environment but his/her family
background also plays a vital role in formation
of value set for him/her.

12. Values
Morals
Behaviour
➔ The word has been derived from Latin
'Moralis' which means character.
➔ It counts on Righteous' and assuming
what is right and what is wrong.
➔ Morality is about setting a higher
standard for conduct in the light of
righteous behavior acceptable by
society and backed by culture or
religion.
➔ Morality of a person is reflected in the
choices he makes and decisions he
takes.

13. Values
Morals
Behaviour
➔ It reflects the temperament of an
individual.
➔ It flashes the vibes that a person
exhibits while interaction with others.
➔ It is the way an individual expresses
himself and interacts verbally or non-
verbally through his actions in a
group or society in the prevailing
circumstances.

14. Ethics
In
Business
Business ethics are the golden rules within the moral
framework of socially accepted conventions that guides the
way a business acts. They are set of rules that decide the
right and wrong. Ethics of a business can be defined by
written and unwritten codes of principles and values that
control the decisions of a company.
Ethical issues at the workstation can be:
Harassment Misrepresentation of data or facts
Fraud Filtering of information
Theft Insider trading.
Malpractice Poor disclosure

15. Principles
of
Business
Ethics
Business ethics are the broader guidelines based or morals
for the rightful conduct of business in line with the socially
acceptable norms. The ethics defines the acts, policies,
decisions of an organisation in the light of right and wrong.
The business ethics are also based on certain principles.
The founding principles of business ethics are as follows
Respectfulness Trustworthiness
Sense of responsibility Legitimate
Altruistic Law abiding
Commitment to
excellence
Social Justice

16. Why Ethics
in
Today’s
Business
World?
Profit is earning is the main motive of every business and it is
the universal truth that every businessman wants to achieve
profits. Earning profits is not at all unethical, provided it is not
through hook and crook i.e. by harming others and involving in
fraudulent activities. Primarily a business organisation should
endeavour ethical behaviour because -
➢Ethics are related to code of conduct.
➢Ethics guide good and bad.
➢Ethics distinguish the right way of doing things and
wrong means to achieve ends.
➢Ethics define the things that harm others and are
unethical.
➢Ethical conduct safeguards the organisations interest in
the long run
➢It acts as a protective shield against legal wrangles.

17. How
Relevant is
Ethics in
Today’s
Business
World?
In the present globally competitive environment business
ethics play a key role in the survival of any business
organization.
Ethical behavior endeavors good name and reputation in
the market which helps an organization to overcome the
cut throat competition the long run.
It is not just about the competitors, in the free economy
the flow of information cannot beholden for a long time.
Today the investors and the consumers are empowered
with the information, they have many choices in the
market and they are fully aware about their rights.
In such circumstances an organization cannot succeed
in the long run with maleficent business practices
so following good business practices and enduring
ethical conduct becomes binding for every business
organization.

18. How
Relevant is
Ethics in
Today’s
Business
World?
Most importantly, the reasons for the ethical behavior in
the business in the current business environment are as
follows.
1 Deals with human beings
2.Protects the interest of society
3. Gratuitous:
4. Code of conduct
5. Moral and social values:
6. Entrustment

19. Attributes
of
Business
Ethics
Ethics clarifies the difference between good and bad, correct
or incorrect, right and wrong, proper or improper from the
perspective of socially accepted norms. Business ethics are
those axioms, practices and ideologies which are related with
moral judgement in the decision making process related to
the business. Followings are some of the significant attributes
of the business ethics.
Ethical values Guiding principle
Relative Term Provides framework
Interest of the society Systematic study.
Code of conduct Universal application
Business – Society dynamics

20. Does
Business
Ethics
Gets
Affected?
● As it is a well established fact that no business runs
in isolation. It needs the society and society is
composed of various environmental factors.
● These environmental factors are highly dynamic in
the nature and have direct and sometimes indirect
bearing on the functioning of the business
organizations.
● The ethical behaviour of an organization is reflected
in the decisions taken by the organization.
● Being the part and parcel of society the business
organizations and their decisions are also affected
by the changes in the environmental factors.
● These factors may be Internal factors related to the
organization or the External factors.
● The internal factors related to an organization can be
controlled by some extent but external factors are
beyond the control of the organization and are highly
dynamic in nature.

21. Does
Business
Ethics
Gets
Affected?
Internal Factors
Internal factors are related to the business organisation.
They can be controlled to some extent. Internal factors
affecting business ethics are largely govern by vision,
mission, policies and company culture.
Vision statement Perception
Policy statement and
programmes
Individual
characteristics
Psychological attributes Leadership
Measurement and follow ups Company Culture
Targets and Budgets Atmosphere

22. Does
Business
Ethics
Gets
Affected?
External Factors
Unlike internal factors external factors are highly dynamic in
the nature. External factors affecting business ethics are
beyond the control of any organisation. No individual lives
in isolation all come from a social background this background
consist of values and belief system which we get through our
family, society, culture ect.
Society Government Philosophy
Technology Regulatory and legislative
framework
Competition Public perception of law
Religion and
culture
Role of ethical values in society

23. Need
And
Significance
Of
Business
Ethics
Almost every business has high level of dependency over
society for inputs and for disposing off its output. Ethical
behaviour of a company creates a good image about it,
which ultimately is beneficial for the company itself.
A business firm cannot run in isolation it needs people,
resources which comes from the society.
Followings are the reasons why ethical behaviour is so
important for a business perspective:
Survival Controls Transgression
Contentment Smooth functioning of business
Protection of society Protection of consumer right
Portray a good picture of business

24. Business
Ethics
Are
Pervasive
In Nature
Business ethic has pervasive dimensions.
The concept of ethics is so wide that it is
applicable in almost all the walks of life.
It is always desirable to be ethical in the conduct
let it be personal or professional front of the life.
1. Ethics in conformity
2. Ethics in finance
3. Ethics in human resources
4. Ethics in marketing
5. Ethics in production

25. Boons
of
Business
Ethics
(Why should an
Organisation
follow the ethics?)
Business ethics play a vital role in achieving sustainable
growth. Especially when the decisions have significant
consequences, the ethical aspect of business and society
dynamics cannot be overlooked. Endeavouring ethical
business culture in the organisation is also significantly
desirous.
As it has many benefits attached to it, which are discussed as
below.
1 Attracting and retaining talent
2 Investor Loyalties
3 Customer Satisfactions
4 Regulators
5. Build customer loyalty
6. Retain good employees

26. Stumbling
Blocks in
Implementation
of
Business
Ethics
(what stops an
Organisation to
follow the ethics?)
As there are many benefits attached to the ethical
behaviour of the business there are some costs
are also there which has to be paid by the
organization.
As these part of business ethics can be said as
other side of the coin.
1. Ethics - Cost on the resources
Being ethical involves cost. In order to provide
quality products at reasonable and affordable
price without involving in any malpractice one
needs to incur some cost.
In order to reduce their cost many businessman
indulge in malpractices such as hoardings,
adulteration etc.

27. Stumbling
Blocks in
Implementation
of
Business
Ethics
(what stops an
Organisation to
follow the ethics?)
2. Reduction in profits
When cost increases the profits automatically
goes down. In order to work ethically one has to
incur some cost and thus the profits margins get
affected.
It can be also explained as when your competitors
are involved in malpractices and incurring huge
profits one can also get tempted towards such
malpractices and earning more profits.
Even if there are some stumbling blocks in way of
implementing ethics in the business; the boons
attached to this are countless.

28. Examples of
a few
Unethical
Business
Practices

31. Contact us:
Vocademics
Ahmedabad-India
vocademics.in@gmail.com
www.vocademics-india.com
+91 9081 900 911
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