Notes for Business Ethics and Its Theories, PPT on Business Ethics and its Theories, NOTES FOR M.COM.

1. INTRODUCTION TO BUSINESS
ETHICS
DONE BY
D. SHALINI
M.COM (A&F)
VIDHYA SAGAR WOMEN’S COLLEGE, CHENGALPATTU

2. ETHICS - MEANING
Ethics is the study of what is right or wrong in human conduct.
This is a branch of philosophy which studies moral principles.
Hence, Ethics is also known as Moral Philosophy.

3. MORALITY - MEANING
Morality is the differentiation of intentions, decisions and
actions between those that are distinguished as proper and
those that are improper.

4. ETHICS VS MORALITY
 Ethics deals with what is ‘Good or Evil’. Morality deals with
what is ‘Right or Wrong’.
Ethics are a response to a particular situation on the other hand
Morality are generally guidelines framed by the society.
Ethics is originated from Greek word ‘ethikos’ which refers to
character. Moral is derived from a Greek word ‘mos’ which
refers to custom.
Ethics are chosen by the person himself which governs his life.
Morality are dictated by society, culture or religion.

5. ETHICS VS MORALITY
Ethics remains same regardless of any culture, religion or
society. Morality may vary from society to society and culture
to culture.
Ethics is widely applicable in the business known as business
ethics. Morality do not have any applicability in the business.
Ethics are not expressed in the form of statements. Morality are
expressed in the form of statements.

6. BUSINESS ETHICS - MEANING
Business ethics refers to the system of moral principles and
rules of the conduct applied to business.
Business ethics is the form of applied ethics, which studies
ethical principles, morals and problems that take place in the
business environment.

7. SALIENT FEATURES OF BUSINESS ETHICS
It is the ethical standards which regulate business persons in
performing business activities.
It is both art and science.
It is universally applicable.
It is based on social customs existing in the environment.
It is dynamic in nature and constantly test the norms and moral
principles.

8. BUSINESS ETHICS - ELEMENTS
Formal code of conduct
Ethics committee
Ethical communication
Ethics office
Disciplinary system
Ethics training
programme
Monitoring

9. ETHICAL THEORIES
• The ethics is the branch of philosophy that deals with the
principles of morality and the well defined standards of right
and wrong that prescribe the human character and conduct in
terms of obligations, rights, rules, benefits to society, fairness
etc..

10. Several Philosopher have propounded different types of ethical
theories which are listed below,
Teleological Ethical Theories
Deontological Ethical Theories
Virtue Ethical Theories
System Development Ethical Theories
Theory X and Theory Y

11. TELEOLOGICAL ETHICAL THEORIES
• The Teleological Ethical Theories are concerned with the
consequences of actions which means the basic standards for
our actions being morally right or wrong depends on the good
or evil generated.

12. TELEOLOGICAL ETHICAL THEORIES - TYPES
TELEOLOGICAL
ETHICS
Ethical Egoism Utilitarianism Eudaimonism

13. DEONTOLOGICAL ETHICAL THEORIES
• The Deontological Ethical Theories hold that the actions are
morally right independent of their consequences.

14. DEONTOLOGICAL ETHICAL THEORIES - TYPES
DEONTOLOGICAL
ETHICS
Negative and
Positive Rights
Social Contract Social Justice

15. VIRTUE ETHICAL THEORIES
The Virtue Ethical Theories hold that ethical value of an
individual is determined by his character. The character refers to
the virtues, inclinations and intentions that dispose of a person to
be ready to act ethically.

16. VIRTUE ETHICAL THEORIES - TYPES
VIRTUE
ETHICAL
THEORIES
Individual Character
Ethics
Work Character Ethics
Professional Character
Ethics

17. SYSTEM DEVELOPMENT ETHICAL THEORIES
• The System Development Ethical Theories state that the extent
to which organization system is sensitive to the need to develop
a a work culture supportive of ethical conduct determines the
ethical value of an actions.

18. SYSTEM DEVELOPMENT ETHICAL THEORIES - TYPES
SYSTEM
DEVELOPMENT
ETHICAL
THEORIES
Personal
Improvement Ethics
Organizational Ethics
Extra –
Organizational Ethics

19. THEORY X and THEORY Y
• The Theory X and Theory Y are the theories of motivation
given by Douglas McGregor in 1960s. These theories are based
on the premise that management has to assemble all the factors
of production, including human beings, to get the work done.

20. THEORY X
• Theory X relies on the authoritarian style of Management
where the managers are required to give instructions and keep a
close check on each employee. As it is assumed that the
employee are not motivated, and they are dislike working.

21. THEORY Y
• Theory Y relies on the participative style of Management
where the managers assume that the employees are self-
directed and self-motivated to accomplish the organizational
objectives. Thus here the management attempts to get the
maximum output with least efforts on their part.

22. ETHICAL MANAGEMENT
• Ethical Management refers to corporate management that not
only fulfills economic goals and legal responsibilities, but also
meets the ethical expectations imposed by social norms in
conducting business.

23. TYPES OF ETHICAL MANAGEMENT
Immoral Management
 Moral Management
 Amoral Management

24. PRINCIPLES OF ETHICAL MANAGEMENT
Respect for each employee
Mutual respect
Procedural fairness
Decision making transparency

25. THANK YOU