2. THE BASIC IDEA
❑ WHAT IS ETHICS?
❑ WHAT IS BUSINESS?
❑ COMBINING BOTH SETS OF
ASPECTS
3. NEED OF ETHICS IN A BUSINESS
❑SURVIVAL OF THE BUSINESS UNIT
❑GROWTH OF BUSINESS UNIT
❑ EARNING GOODWILL
❑IMPROVING THE CONFIDENCE
❑MAINTAINING INTER-RELATIONSHIP
❑ SOLVING SOCIAL PROBLEMS
Ethics is knowing the difference between what you have a right to do and what is right to do ~Potter Stewart
5. ETHICAL ISSUESAT AN INDIVIDUAL LEVEL
• An important aspect of organizational
strategy and management is empowering a
strong sense of ethics at the individual
level.
HOW TO ACHIEVE THIS?
Understand the interaction between individual ethics and
organizational management
6. STRUCTURE There are four basic elements
organizations can build to empower
individual ethics:
❑ ETHICAL CODE
❑ ETHICAL TRAINING
❑ ETHICS OFFICERS
❑ ETHICAL REPORTING
7. MOTIVATION
As with most aspects of management, there is also a
critical motivational component to individual ethics.
UNDERSTANDING THIS CONCEPT WITH EXAMPLE:
❑ FOR EXAMPLE ,REWARDING EMPLOYEES FOR ADMITTING
MISTAKES
❑ FOR EXAMPLE, REWARDING THE TRUE WHISTLEBLOWERS*
*Whistleblowers are individuals who identify unethical practices in organizations and
report the behavior to management or the authorities.
8. WORK MOTIVATION: THROUGH THE FIVE M’S IDENTIFIED (IN ORDER OF CHRONOLOGICAL
ACHIEVEMENT BEING MONEY; MYSELF; MEMBER; MASTERY; MISSION), ONE CAN SEE IN THIS
PYRAMID CHART HOW ORGANIZATIONAL JUSTICE WILL ENABLE HIGHER LEVELS OF INDIVIDUAL
MOTIVATION.
9. ETHICAL ISSUESAT AN
ORGANIZATIONAL LEVEL
ETHICAL ISSUES THAT ORGANIZATIONS FACE IN THE FIELDS:
❑FINANCE
❑HUMAN RESOURCE MANAGEMENT
❑SALES AND MARKETING
❑PRODUCTION
10. ETHICAL ISSUES IN FINANCE
ETHICAL ISSUES IN HR MANAGEMENT
❑ACCURACY
❑TRANSPARENCY
❑TIMELINESS
❑INTEGRITY
❑ RECRUITMENT SELECTION
❑ ORIENTATION
❑ PERFORMANCE APPRAISAL
❑ TRAINING AND
DEVELOPMENT
❑ INDUSTRIAL RELATIONS
AND HEALTH AND SAFETY
ISSUES.
❑DISCRIMINATION BY AGE
(PREFERRING THE YOUNG OR
THE OLD),
GENDER,SEXUALORIENTATION,
RACE, RELIGION,
DISABILITY, WEIGHT, AND
ATTRACTIVENESS
11. ETHICAL ISSUES IN SALES AND
MARKETING
ETHICAL ISSUES IN PRODUCTION
❑ DANGEROUS PRODUCTS
❑ TRANSPARENCY ABOUT ENVIRONMENTAL RISKS
❑ PRODUCT INGREDIENTS
❑ FAIRNESS IN PRICING AND DISTRIBUTION
❑ ENVIRONMENTAL IMPACTS, INCLUDING
POLLUTION, HABITAT DESTRUCTION, AND URBAN
SPRAWL.
❑ DOWNSTREAM EFFECTS OF TECHNOLOGIES
❑THE INDUSTRIAL REVOLUTION
❑ PRODUCT TESTING PROTOCOLS
12. BALANCING ETHICS WITH PROPER BUSINESS PRACTICES AT THE
INDIVIDUAL AND ORGANIZATIONAL LEVEL CAN RESULT IN A TRIPLE
BOTTOM LINE: ECONOMIC, SOCIAL, AND ENVIRONMENTAL VALUE.
