2. Ethics
Ethics has origin from Greek word.
Ethics means character, norms, morals
and ideals prevailing in a group, society.
Ethics may be referred to as some
standardized form of conduct/behaviour
of individuals understood and accepted in
a particular field of activity.
3. What is an ethics?
Ethics involves a discipline that examines good or bad practices
within the context of moral duty. but "the good practices" is not
nearly as straight forward as conveyed.
Many ethicists assert there’s always a right thing to do based on
moral principle, and others believe the right thing to do depend
on the situation – ultimately it’s up to the individual Ethics is
considered as "Science of Conduct.”
The need for a company to behave “ethically” is described in
terms of a company’s need to interact productively with its
stakeholders.
4. What is an ethics?
Ethics is a mass of moral principals or
sets of values about what conduct
ought to be.
They give an idea what is right or
wrong, true or false , fair or unfair , just
or unjust, proper or improper.
Eg., honesty, obedience, equality,
fairness, respect etc and then doing the
right thing.
5. Business Ethics...
comprises principles and standards that guide
behavior in the world of business
is right or wrong, acceptable or unacceptable
behavior within the organization
is determined by key stakeholders
6. Business Ethics…
Knowing the difference between what
you have a right to do in the
organization and what is the right thing
to do.
7. What is business ethics?
(a managerial perspective)
defining appropriate behavior
establishing organizational values
nurturing individual responsibility
providing leadership & oversight
relating decisions to stakeholder interests
developing accountability
relating consequences
auditing & improvement
8. Scope of Business Ethics…
Ethical issues are there everywhere, at all
levels of business activity.
Societal level
Concern for poor and down-trodden
No discrimination against any particular section or group
Concern for clean environment
Preservation of scarce resources for posterity
Contributing to better quality of life
9. Scope of Business Ethics…
Stakeholder’s level
1. Employees
Security of job
Better working conditions
Better recommendation
Participative management
Welfare facilities
10. Scope of Business Ethics…
2. Customers
Better quality of goods
Goods and services at reasonably price
Not to corner stocks and create securities
Not to practice discrimation pricing
Not to make false claims about products in adveritisements
11. Scope of Business Ethics…
3. Shareholders
Ensure capital appreciation
Ensure steady and regular dividends
Disclose all relevant information
Protect minority shareholders’ interests
Protect interests in times of mergers, amalgamations and
takeovers
12. Scope of Business Ethics…
4. Banks and other lending institutions
Guarantee safety of borrowed funds
Prompt repayment of loans
5. Government
Complying with rules and regulations
Honesty in paying taxes and other dues
Acting as partner in the progress of the country.
13. Scope of Business Ethics…
Internal policy level
Fair practices relating to recruitment, compensation, lay-offs,
perks, promotions etc,
Transformational leadership to motivate employees to aim at
better and higher things in life.
Better communication at all levels
14. Scope of Business Ethics…
Personal policy level
Not to misuse others for personal ends
Not to indulge in politics to gain power
Not to spoil promotional chances of others
Not to use office car, stationery and other facilities for personal
use
Not to fall prey to shortcuts and easy money
Promise keeping
No violence ie, preventing or not causing physical harm to
others
Mutual help and keep clean environment
Respect for persons and property.
15. The Ethics Mirror & Reality…
people judged themselves based on
their intentions
others are judged based on their
behavior
everyone is accountable for their
actions
16. Why study business ethics
in an Ethics Officer Assoc. Survey, 48%
of employees indicated that they had
done something unethical or illegal in
the past year
annual cost of unethical or illegal acts
by U.S. employees: $400 billion
Ethical behavior in a organization can
increase productivity and good will of
company.
17. Common Unethical Acts...
lying to supervisors
falsifying records
alcohol and drug abuse
conflict of interest
Stealing
gift/entertainment receipt in violation of company
policy
18. Key Causes of Unethical Behavior...
meeting overly aggressive financial or
business objectives
meeting schedule pressures
helping the organization survive
rationalizing that others do it
resisting competitive threats
saving jobs
19. Key Influences On Ethical Behavior...
personal values
supervisor influence
senior management influence
internal drive to succeed
performance pressures
lack of punishment
friends/coworker influence
20. Why Misconduct Is Not Reported...
fear of not being considered a team player
did not think corrective action would be taken
fear of retribution (from management)
“no one else cares, why should I”
did not trust the organization to keep report
confidential
21. Ground rules of ethics
Trustworthiness- honesty (in communication and conduct),
integrity (acting on firm beliefs and not according to expediency),
reliability (promise keeping) and loyalty (allegiance, fidelity and
devotion)
Respect – show civility, courtesy, decency, tolerance, freedom to
express their viewpoints and agree or disagree with other view points.
Responsibility - accountable
Fairness- equality, openness, impartiality
Caring –well being of others
Citizenship – protect environment
22. Classification of Ethical Issues...
conflict of interest
honesty and fairness
Communications
organizational relationships
23. Conflict of Interest...
exists when an individual must choose
whether to advance his/her own
interests, the organization’s, or others’
examples include bribes or personal
payments, gifts, or special favors
intended to influence decision making
24. Honesty & Fairness...
following applicable laws a regulations
& not knowingly harming stakeholders
Is advertising prescription drugs on TV
and in magazines fair?
Are long distance information ads that
place the cost of the call in very small
print at the bottom of the screen fair?
25. Communications...
refers to the transmission of information and
the sharing of meaning
examples: deceptive advertising, product
safety information, & product composition
Are vitamin and herbal supplements using
‘puffery’ in their advertising? – Note: roughly
half of Americans take supplements
26. Organizational Relationships...
behavior of organizational members
toward stakeholders
includes confidentiality, meeting
obligations & deadlines, not pressuring
others to behave unethically
27. Ethical Issues Can Relate to All
Functional Areas...
Accounting
Finance
Management
Marketing
28. 7 Principals of admirable business
Be Trustful
Keep an open mind
Meet Obligations
Have clear documents
Become community involved
Maintain accounting control
Be respectful
29. Who are the primary stakeholders
that shape business ethics?
Employees
Customers
Suppliers
Community
Government
Shareholders
other…
30. Guidelines for managing ethics at
workplace
Recognize that managing ethics is a process
The bottom line of an ethics program is accomplishing
preferred behaviors in the workplace
The best way to handle ethical dilemmas is to avoid their
occurrence in the first place
Make ethics decisions in groups, and make decisions
public, as appropriate
Integrate ethics management with other management
practices
Use cross-functional teams when developing and
implementing the ethics management program
Value Forgiveness
31. Benefits of Managing Ethics at the
Workplace
Attention to business ethics has substantially improved society
Ethics programs help maintain a moral course in turbulent times
Ethics programs cultivate strong teamwork and productivity
Ethics programs support employee growth and meaning
Ethics program are an insurance policy – they help ensure that
policies are legal
Ethics programs help avoid criminal acts “of omission” and can
lower fines
