Business ethics


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This is a short presentation about Business Ethics in an organization. Co-Developed by : John Manoj Vincent, Archana Yadav, Meenaxi Srimali, Nikhil Ranjan & Sparsh Nagpal (MSRIM Bangalore)

Aniruddh Tiwari
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Published in: Business, Technology
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  • Altruistic - UnselfishPerennial – Permanent, PerpetualLast Point – The answer is ambigous to this question and sometimes depends on individuals’s perspective
  • He looted the company by taking 2.3 Billion $ from the investors in company’s name and used it personaly
  • It is one of the three moral theories. The other two are virtue ethics and deontology. Consequentialism refers to the consequences of one's conduct are the true basis for any judgment about the morality of that conduct.Example- Consequentialism says that lying is wrongDeontology says liying is totally wrongVirtue ethics takes a decision whther to tell a lie or not.
  • Business ethics

    1. 1. • Laws: A set of rules for personal or corporate behavior; civil and/or criminal penalties apply• Morals: A set of standards for (personal) behavior• Ethics: A set of standards for (professional) behavior• Morals and ethics are voluntary in some sense• Like laws, they are open to many interpretations
    2. 2. • A system of moral principles, by which human actions and proposals may be judged good or bad or right or wrong (Macquarie Dictionary) ;• . . . rules of practice in respect to a single class of human actions; as, political or social ethics; medical ethics (Webster‘s Dictionary)
    3. 3. • ―Framework for human conduct that relates to moral principles and attempt to distinguish right from wrong‖ (Miesing & Preble 1985)• Codes of ethics can be ―viewed as an ethical framework rather than a solution to a problem‖(Harris et al)
    4. 4. • In most cultures, ethics are connected with divine origins: •Babylonian civilization received laws of Hammurabi from sun god. • God gave 10 commandments to Moses •In Greek civilization, Plato says that god Zeus gave morality to help mankind • Manusmriti Samhita incorporates earliest code of social and legal ethics in India
    5. 5. • Indian religion has always been associated with philosophy• The Vedas (about 4000 years old) talked about 4 basic goals of existence: • Prosperity • Satisfaction of desires • Moral duty • Salvation• Upanishads distinguished between law and ethics – ethics come from inner desire
    6. 6. Based on: Smith, Huston (1994). The Illustrated Worlds Religions. San Francisco: Harper.
    7. 7. In a recent Wall Street Journal article, Psychology professor StevenDavis says that cheating by high school studentshas increased from about 20 percent in the1940’s to 75 percent today.“Students say cheating in high school is forgrades, cheating in college is for a career.”
    8. 8. • Ethics = doing what‘s right, building better societies• Business = playing to win, doing what‘s good for the firm• So are we really Professors of Oxymoronity ??!!(OxymoronDef. 1. a combination of contradictory terms, alsoconsidered a paradox.2. a contradiction in terms)
    9. 9. • In an extreme, altruistic sense, business and ethics may seem incompatible: • Earning profits may also be a unethical • In Islamic finance, earning interest is unethical • All possessions stem from insecurity; insecurity comes from mistrust: • Therefore, possession itself may be unethical in extreme sense• Lots of businesses may need violence of some degree: • E.g., Medical research• Where do we draw the line between business and morality: • If the approach is subjective, then ethics lose their meaning as everyone defines ethics to suit one‘s convenience • Is there a universal, perennial definition of ―ethics‖?
    10. 10. Misappropriation of• Built aFunds: $13 million golf course on personal property.• Paid for Manhattan apartments for family members.• Covered hundreds of millions of dollars of the familys stock losses.
    11. 11. State Charges:• Conspiracy• Tampering with Physical Evidence• Falsifying business records• Sales Tax Violations
    12. 12. Type of misconduct observed Employees observing itLying to employees, customers, vendors, or the public 26%Withholding needed information from employees, 25%customers, vendors or publicAbusive or intimidating behaviour towards employees 24%Misreporting actual time or hours worked 21%Discrimination on basis of race, gender, etc 17%Sexual harassment 13%Stealing, theft, or related fraud 12%Breaking environmental and safety laws/regulations 12%
    13. 13. • Consequentialism and cost-benefit analysis• Duty or rights based approaches
    14. 14. EthicalDilemma Single normative consideration for solving the ethical dilemma ‗Lens‘ of ethical theory
    15. 15. The value of ethical theories in facingethical dilemmas in business
    16. 16. RR W W
    17. 17. • Identifying the opportunities for change and the ‗structures of constraint‘.• Enhancing moral imagination • Recognising and understanding different moral perspectives. • Explaining and rationalising these perspectives.• Developing new ways of considering responsibilities of business in society.
    18. 18. • Acknowledging and understanding the barriers.• Encouraging moral awareness and literacy – going beyond the business case.• Providing the tools for ethical decision-making.• Fostering creativity and moral imagination.• Walking the talk.
    19. 19. • Written code of ethics• Employee commitment• Employee training• Discipline process• Full disclosure• Building expectations• Resolution process – conflict management
    20. 20. • A formal code of business conduct and ethics.• To be signed and adhered to by employees.• Action against any employee for violation thereof.
    21. 21. • General standards of conduct.• Management of conflicts of interest.• Prohibition of exploitation of corporate opportunities.• Protection of company‘s confidential information.• Obligations under securities laws.• Use of assets.
    22. 22. • There are ethics in business … they‘re just not always visible, and don‘t necessarily lead to the kinds of behaviour we‘d like.• Morally motivated behaviour is possible in business, but is subject to considerable, and quite rigid structures of constraint.• There are few right and wrong answers, just better or worse decisions, or more widely acceptable behaviours.• Being ethical in business is a creative endeavour not just a rational one.
    23. 23. • Don‘t trust everyone to do the right thing— proceed with caution.• Gather the evidence you need.• Make sure you‘re right.• Don‘t exaggerate or overstate your case.• Wait for the right time to come forward.• Remain anonymous—the problem is the issue, not you.
    24. 24. Be sure you are right, then go ahead. Davy Crockett 1786-1836
    25. 25. When thesituation needsimprovement,Gandhi offersguidance: “Youmust be thechange you wishto see in theworld.”
    26. 26. Can you makea difference?