Business ethics refers to ethical principles and standards that guide conduct in business organizations. It involves determining what is right and wrong in the workplace. Business ethics applies to a company's relationships and interactions with employees, customers, suppliers, and society. Unethical behavior in business can harm stakeholders and result in higher prices, business failure, and fewer jobs. Examples of unethical conduct include stealing, dishonesty, unsafe practices, and poor treatment of customers or employees. Employers address unethical behavior through security measures, loyalty programs, and fair treatment of workers. Individuals have a choice to ignore, rationalize, report, or clarify issues of unethical conduct in the workplace.

1. BUSINESS ETHICS

2. WHAT IS ETHICS
 Ethics may be referred to some standardized form of
conduct or behavior of individuals, understood and
accepted in a particular field of activity
 The work “ETHICS” has its origin in Greek word “Ethics”
means character, norms, morals and ideals prevailing in
a group and society.
 Ethics is a mass of moral principles or set of values
about what conduct ought to be. They give an idea what
is right or wrong, true of false, fair or unfair, just or
unjust, proper or improper, e.g. Honesty, obedience,
equality, fairness, etc and respect and then doing the
right thing

3. BUSINESS ETHICS
Carter McNamara has defined: “Business ethics
is generally coming to know what is right and
wrong in the workplace and doing what is right-
this is in regard to efforts of products/ services
and in relationships with stakeholders.”
A group of moral principles, standards of behavior, or
set of values regarding proper conduct in the
workplace

4. Ethical questions fall under one or more of
following levels:
Level 2 : Stake holders
Level 3 : Internal policy
Level 4 : Individual
Level 1: Society

5. Continued…
 Individual level: personal level interactions,
obligations and rights as human beings
 Internal policy: ethics in practices of organization
w.r.t. employment, rights of employees, etc.
 Stake holders: suppliers, creditors, customers, etc.
 Society: External agencies, social institutions, etc.

6. Common Morality: (Morals or Principles)
Morality is body of rules governing the ordinary
ethical problems
 Promise keeping
 Non- malevolence (prevent violent conflicts)
 Mutual aid (among people, societies, nations)
 Respect for persons (regard other people as an end in
themselves)
 Respect for property ( obtain consent of owners before
using their property.

7. How to have ethics in business ?
 Ethical Audits, Ethics committees, judicial boards, Ethics
training programs, etc., :- to have ethical policies in
business
 Groups to whom corporate ethics codes apply??
* Employees & their families
* Local communities
* Suppliers
* Share holders
* Country Govt.
* Foreign Govt.s

8. Global Ethical Issues
Wages and hours
Child labour
Discrimination
Legal and ethical business practices
Product safety and quality
Environment

9. What causes unethical behaviour
 Stress
 Confusion
 Pressure to perform at expected levels
 Competition within the industry
 No knowledge

10. ETHICS IN THE WORKPLACE
Relationships at Work
Management/owner toward
client/customer
Management/owner toward
employees
Employee toward Employer,
Co-workers, Customers

11. ETHICS IN THE WORKPLACE
Business Abuse
Any :
illegal
unethical
irresponsible Act done
against an Employer

12. ETHICS IN THE WORKPLACE
Results of Business
Abuse
Higher prices
Business Failure
Fewer Jobs
Unpleasant Working
Conditions

13. ETHICS IN THE WORKPLACE
A.Examples of Business Abuse
Stealing
 Merchandise
 Money
* Shoplift *Kickback
* Conflict of Interest
* Unauthorized Discounts
 Time

14. ETHICS IN THE WORKPLACE
A. Examples of Business
Abuse (Continued)
 Vandalism (damage)
 Forge Records
 Break Confidentiality
 Ignore Safety Rules
 Misrepresent Merchandise

15. ETHICS IN THE WORKPLACE
A. Examples of Business
Abuse (Continued)
 Poor Client Service
 Irresponsible Behavior
 Addictions
* drugs
* alcohol
* tobacco

16. ETHICS IN THE WORKPLACE
A. Examples of Business
Abuse (Continued)
 Gossip
* Causes poor work
environment (morale)
* Lowers Productivity

17. ETHICS IN THE WORKPLACE
How Do We Rationalize
Business Abuse?
 Everybody does it
 The co. won’t mind it
 The co. overcharges
 I’m not paid enough
 The co. doesn’t deserve my
loyalty

18. ETHICS IN THE WORKPLACE
C. How Employers
Respond to Business
Abuse
Increase Security
* loss prevention mgmt.
* surveillance
* Networks/Helplines
* threats of prosecution

19. ETHICS IN THE WORKPLACE
C. How Employers
Respond to Business
Abuse (Continued)
Increase Employee Loyalty
* fair wages & benefits
* fair/consistent treatment
* recognition for good wk
* foster family climate

20. ETHICS IN THE WORKPLACE
D. As Employees, What
Are Our Choices?
 Ignore Business Abuse
 Rationalize it away
 Speak Up
 Discuss to Clarify Issues
 Blow the Whistle!

21. THANK YOU