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1. SBV OPEN - Online Program for EducatioN
Ethical Dilemma – Ethical Decision
Making – Ethical Reasoning –
Ethical issues – Ethics Management
Programmes – Benefits of
Managing Ethics in Work Place –
Organisation Ethics Development
System (OEDS) Code of ethics –
Guidelines for developing
Comprehensive Ethics programme
–Value based leadership.
ETHICS MANAGEMENT:

2. Introduction to Ethics
Management
Ethics Management refers to the
process of implementing ethical
principles in an organization to
guide behavior and decision-
making.
Ethical management helps in
building trust, improving
corporate reputation, and
enhancing overall business
performance.
It ensures that business activities
align with moral values and legal
standards
DEFINITION
• Alan S. Gutterman, in
his article "Ethical
Management,"
describes ethics
management as a
managerial function that
regulates employee
conduct through written
or unwritten codes,
enforcing integrity even
in the absence of
codified rules

3. Ethical Dilemma
An ethical dilemma occurs when a person
faces two or more conflicting moral choices.
It is also known as ethical paradox or moral
dilemma.
Examples:
A manager must decide between laying off
employees or cutting salaries to reduce
costs.
A salesperson must choose between telling
the truth about a product’s defect or making
a sale.

4. Conflicting
values
No perfect
solution
Personal
involvement
s
Multiple
stakeholders
Ethical
uncertainty
Potential for
harm
Potential for
ethical
reasoning
CHARACTERSTICS
OF ETHICAL
DILEMMAS

5. Identify the problem.
Consider possible solutions.
Evaluate the consequences of each
solution.
Make the most ethical decision.
Implement and assess the outcome.
Steps to Resolve Ethical
Dilemmas:

6. Ethical Decision Making
It involves considering ethical rules,
principles, and guidelines when
making choices, ensuring actions align
with moral standards.
The process of evaluating and
choosing actions based on moral
principles and values, considering the
potential consequences and impacts on
other.

7. Steps in Ethical Decision Making
Recognizing the Ethical Issue –
Identify whether a decision involves
ethical concerns.
Gathering Information – Collect facts
relevant to the issue.
Evaluating Options – Assess different
solutions based on ethical principles.
Making a Decision – Choose the best
ethical course of action.
Implementing and Reviewing –
Execute the decision and analyze its
impact.

8. Ethical Reasoning
Ethical reasoning involves analyzing moral problems and
making ethical judgments.
Approaches:
• Consequentialism – Decisions are based on the outcomes
(e.g., utilitarianism).
• Deontology – Focuses on following rules and duties
regardless of outcomes.
• Virtue Ethics – Emphasizes character and integrity in
decision-making.

9. Consequentialism in Business Ethics
Definition: A moral theory that judges actions
based on their outcomes. The right action is the one
that produces the best overall results.
Key Principle: "The ends justify the means."
Types of Consequentialism:
1. Utilitarianism: Maximizing overall
happiness or well-being.
2. Ethical Egoism: Acting in one's self-
interest.
Application in Business:
 Decision-making based on profit, stakeholder
impact, and social consequences.
 Ethical dilemmas in corporate responsibility,
sustainability, and consumer welfare.
Criticism: Can justify unethical means, ignores
individual rights.

10. Deontology in Business Ethics
Definition: A moral theory that focuses on duties, rules, and
principles rather than consequences. Actions are right or wrong
based on ethical rules.
Founder: Immanuel Kant (Kantian Ethics – Categorical
Imperative).
Application in Business:
Honesty in advertising and communication.
Fair treatment of employees and customers.
Ethical decision-making based on duties rather than profits.
Criticism:
•Can be rigid and impractical in complex situations.
•May lead to conflicts between different ethical duties.
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Key Principle: "Do what is right, regardless of the outcome."

11. Ethics Management Programmes
Purpose: To create an ethical work environment
and prevent misconduct.
Key Components:
 Code of ethics
 Training programs
 Ethical leadership
 Reporting mechanisms
Establish clear policies.
Provide regular training.
Encourage ethical behavior through rewards
and penalties.
Implementation Strategies:

12. Ethical Issues in Organizations
Common Ethical Issues:
 Discrimination – Unequal treatment of
employees based on race, gender, or other
factors.
 Harassment – Unethical behavior that
creates a hostile work environment.
 Conflict of Interest – When personal
interests interfere with professional duties.
 Employee Privacy – Protection of
personal data and workplace surveillance.
 Whistleblowing – Reporting unethical
practices within an organization.

13. Benefits of Managing Ethics in the Workplace
BENEFITS
Promotes
trust
transparen
cy
Increases
employee
morale
job
satisfactio
n
customer
loyalty.
Enhances
company
reputation
Reduces
legal risks
and
complianc
e issues.

14. Organisatio
n Ethics
Developmen
t System
(OEDS)
A structured approach to
integrating ethics into
organizational processes
used to foster ethical
behavior and ensure
compliance with ethical
standards, including codes
of conduct, training and
reporting mechanisms.
Steps:
• Establish ethical
standards.
• Train employees
on ethical
practices.
• Monitor ethical
compliance.
• Enforce ethical
policies
consistently.

15. Examples: Google’s and Apple’s ethical codes.
Key Elements:
Integrity and honesty Respect for others Compliance with laws
Professional
responsibility
A document that defines acceptable behavior in an
organization.
Code of Ethics

16. Guidelines for Developing a
Comprehensive Ethics Programme
Gain commitment from top leadership.
Conduct ethics training and workshops.
Establish reporting mechanisms.
Regularly review and update ethical
guidelines.

17. Value-Based Leadership
Leadership style centered on ethical principles
and values.
Impact: Creates an ethical organizational culture.
Traits of
Value-
Based
Leaders:
Integrity
Transparency
Accountability

18. Case Studies on Ethics Management
Example 1: Enron Scandal – Consequences of Unethical
Leadership
Background: Enron was once a highly successful energy company.
Unethical Practices:
Used fraudulent accounting (mark-to-market) to hide debts and
inflate profits.
Executives misled investors while personally profiting.
Employees lost jobs and pensions when the company collapsed.
Outcome:
Filed for bankruptcy in 2001, one of the biggest corporate
scandals in history.
CEO and executives faced legal action, and new regulations
like Sarbanes-Oxley Act (2002) were introduced to prevent
fraud.
Lessons Learned:
Lack of ethical leadership and transparency leads to corporate
failure.
Strong regulatory frameworks are essential to prevent fraud.

19. Johnson & Johnson – Ethical Crisis Management (Tylenol
Recall, 1982)
Background: In 1982, cyanide-laced Tylenol capsules caused
the deaths of seven people in the U.S.
Ethical Response by J&J:
Immediately recalled 31 million bottles of Tylenol (costing
$100 million).
Stopped all advertising and informed the public about the
danger.
Introduced tamper-proof packaging, setting new industry
safety standards.
Outcome:
Regained public trust and Tylenol returned to market
successfully.
Became a case study in ethical crisis management.
Lessons Learned:
Prioritizing public safety over profits builds long-term
brand trust.
Transparency and quick action are crucial in ethical crisis
management.

20. Challenges in Ethics Management
Resistance to ethical policies from employees.
Managing ethical grey areas.
Ensuring strict compliance across all
departments.

21. Role of HR in
Ethics
Management
Enforcing
ethical policies.
Providing
training on
ethics and
compliance.
Resolving
ethical conflicts.

22. Ethical Culture in Organizations
Definition:
Ethical culture refers to the values, behaviors, and practices that
promote integrity, accountability, and fairness in an organization.
Key Elements:
Leadership Commitment – Leaders set ethical standards and act
as role models.
Code of Ethics – A clear set of ethical guidelines for decision-
making.
Transparency & Communication – Open discussions on ethical
concerns.
Employee Training – Regular ethics training to reinforce ethical
behavior.
Accountability & Enforcement – Policies to address ethical
violations.
Benefits of Ethical Culture:
✔ Enhances trust among employees, customers, and stakeholders.
Reduces risks of legal issues and scandals.
✔
Improves employee morale and engagement.
✔
Strengthens long-term business success and reputation.
✔

23. Whistleblowing
Whistleblowing is the act of reporting unethical, illegal, or
fraudulent activities within an organization. A whistleblower can
be an employee, former employee, or any individual who
discloses misconduct to authorities or the public.
Types of Whistleblowing
1. Internal Whistleblowing – Reporting unethical behavior
within the organization to supervisors or internal authorities.
2. External Whistleblowing – Reporting misconduct to
external authorities like government agencies, media, or
regulatory bodies.
Ethical Reporting
Ethical reporting refers to the responsible disclosure of unethical
activities while ensuring fairness and integrity. Organizations
establish ethical reporting mechanisms such as anonymous
reporting channels and ethics hotlines to encourage employees
to report issues without fear of retaliation.

24. Corporate Social Responsibility (CSR) & Ethics
CSR: A Commitment to Society
✅ Economic – Profitability with ethical business
✅ Legal – Compliance with laws
✅ Ethical – Fairness, honesty, integrity
✅ Philanthropic – Giving back to society
CSR Activities:
Sustainability 🌱 Education 📚 Healthcare 🏥
♻️ 📚
Employee Welfare 👥 Community Development 🏡
Business Ethics: Moral Principles in Business
✔ Integrity – Transparency & honesty
✔ Fairness – Just treatment for all
✔ Accountability – Owning responsibilities
✔ Stakeholder Respect – Considering all interests
Why CSR & Ethics Matter?
🔹 Builds brand trust & reputation
🔹 Attracts & retains employees
🔹 Reduces legal & financial risks
🔹 Promotes sustainable development
CSR in India: Under the Companies Act, 2013, large firms must
invest 2% of net profits in CSR initiatives.

25. Ethics Training and Workshops
Why Ethics Training Matters?
Promotes ethical decision-making
Reduces workplace misconduct
Enhances company reputation
Builds a culture of integrity
Effective Training Methods
Case Studies – Real-world ethical dilemmas for analysis
Role-Playing – Simulated scenarios to practice ethical
responses
Seminars & Webinars – Expert-led discussions on ethics
Code of Conduct Training – Familiarizing employees with
policies
Impact of Ethics Training
> Encourages responsible behavior
> Strengthens trust among employees & stakeholders🔹
Reduces legal risks & compliance violations

26. Ethics Program: Creating an Ethical Culture
✅ Establishes guidelines for ethical behavior
✅ Prevents misconduct & legal issues
✅ Enhances trust & corporate reputation
Key Elements of an Ethics Program:
📜 Code of Ethics – Clear policies & principles
🎓 Training & Workshops – Continuous learning on ethical decision-
making
📢 Whistleblower Mechanisms – Safe reporting channels
📊 Monitoring & Compliance – Regular assessments

27. Value-
Based
Leadership
: Leading
with
Integrity
✔ Honesty –
Transparent
communication
✔
Accountability
– Taking
responsibility for
actions
✔ Empathy –
Considering
stakeholder well-
being
✔ Fairness –
Treating
everyone with
respect & justice
Benefits of
Ethics
Programs &
Value-Based
Leadership
🔹 Strengthens
corporate culture &
employee morale
🔹 Enhances decision-
making & problem-
solving
🔹 Builds stakeholder
confidence & long-
term success

28. Summary and Key Takeaways
Ethics is essential for business success.
Organizations must integrate ethical practices at all levels.
Ethical leadership and training improve corporate
governance.

29. THANK YOU