INTRODUCTION TO BUSINESS ETHICS

Ethics word meaning- character Set of standards or code or value system, worked out from human reason & experience by which free human actions are determined as ultimately right or wrong, good or evil. Business ethics-appl. of ethics in business

Nature of ethics in business In busi. 2 types of ethical problem >overt- bribary, theft, sabotage etc >covert- complex and not transparent, defy ethical solutions

A decision is ethical if it is: >Right- moraly right and due >Good- brings good for all concerned >Equitable- just & equal >Proper- appropriate & acceptable >Fair- Honest & due >just- justice is done

Ethics is unstructured moral standards value system background & childhood exper. Ethics express some obligation to others

Characteristics of BE Differ with persons ethical questions do not have a unique soln but a multitude of alternatives Ethical decisions are not limited to themselves, but affects a wide range of other situations as well. ED involves a trade off between cost incurred and benefits received.

Consequences are not clear Every person is individually responsible for the ethical or unethical decision and action that he or she takes Ethical actions are voluntary human actions

Why is ethics impo. in business? Ethics corresponds to basic human needs Values create credibility with the public Values give mgmt credibility with employees Values help better decision making Ethics and profit Law cannot protect society, ethics can.

Sources of ethics Religion Cultural experience The legal system

Morality and ethics Morality is the std an individual or community keeps about what is right and wrong or good and evil. Morality Moral norms deals with topics that either seriously harm or benefit human beings Moral stds are not dependent on or changed by the decision of authoritative bodies

Moral demands enjoys a self-driven force Expressed through the medium of special emotions. Ethics Ethics helps one to address questions such as what do moral principles mean in a given situation Ethics offers certain moral stds to judge a particular human behaviour or situation

Ethics & Law Law is universally accepted, published document Law says, what action should be taken against a person who violates the provisions of legal system whereas the consequences of unethical action is not clear Some laws have nothing to do with morality while some may even violate our moral stds.

Ethical theories 1.Utilitarianism (consequence based) Teleological Theories The word teleological is derived from the Greek word telos, which refers to an end. Actions are justified on teleological theories by virtue of the end they achieve, rather than some feature of the actions themselves.

an action is said to be right if it produces good results or its achieves good consequences. 2 types >act-consequentialism: morality of an action depends on its consequences >rule-consequentialism: focusing only on the consequences can lead people to committing outrageous action.

2.Deontological (duty based theory) The word deontological derives from the deon, the Greek word for duty. people behave ethically as they find it their solemn duty towards that Suggests that we have moral duties to others Stress the importance of respecting a person’s autonomy It also stresses that one has duties to oneself

3. Social justice theory 4. Ethics of care