This document defines ethics and business ethics, discusses unethical behavior and its common reasons and root causes. It notes that business ethics is the application of ethical principles to business decisions and actions. Unethical behavior lacks moral principles and adherence to proper conduct. Common reasons for unethical behavior include pressure, uncertainty about right and wrong, and self-interest. Psychological traps like obedience to authority, need for closure, and false consensus effect are identified as root causes. Examples of unethical behaviors in the workplace are also provided.

1. ETHICS
• Moral principles that govern a person's
behavior or the conducting of an activity.
• The basic concepts and fundamental
principles of decent human conduct.

2. BUSINESS ETHICS
• Business Ethics is the application of ethical
principles and methods to business.
• It is a specialized study of moral right or wrong
in business decisions.
• It concentrates on moral stds as they apply to
business policies, institutions and behaviors

3. UNETHICAL BEHAVIOUR
• Lacking moral principles;
• unwilling to adhere to proper rules of
conduct

4. COMMON REASONS FOR UNETHICAL BEHAVIOR
• Pressure can drive people to do things they wouldn’t
normally do.
• Some people make unethical choices because they are not
sure about what really is the right thing to do.
• Self-interest, personal gain, ambition, and downright greed
are at the bottom of a lot of unethical activity in business.
• Misguided loyalty.
• Then there are those who simply never learned or do
not care about ethical values.

5. THE ROOT CAUSES OF UNETHICAL BEHAVIOR
• Psychological traps are the root causes of
unethical behavior.
• Primary Traps (External Stimuli)
• “Obedience to Authority”
• Personality Traps(Internal stimuli)
• “Need for Closure,”
• Defensive Traps(Two internal stimuli: guilt and
shame)
• “False Consensus Effect.”

6. EXAMPLES IN WORKPLACE
• Executive Tactics
• Obedience to Authority
• Need for Closure
• False Consensus Effect
• Deliberate Deception
• Violation of Conscience
• Failure to Honor Commitments
• Unlawful Conduct
• Disregard of Company Policy