1. BUSINESS ETHICS 1

2. Ethics: What Does It Really Mean???
Derived from Greek word ‘Ethicos’ meaning Character or Manners
Science of character of a person expressed as right or wrong conduct or action.
Set of moral principles prescribing code, explains what is good and right, or bad and wrong.

3. Meaning of Ethics Good or Bad, Right or wrong, Moral or Immoral Taken
together
Character
of a man
Decided by
Conduct
of a person
Leads to
Series of
Actions
Considered As
By which
we can
Judge again
Known as
Moral
Judgement
Moral
Standards
Requires

4. Ethics can be termed as the science of character of a person expressed as right or wrong conduct or action

5. Objective of Ethics
Studies human behavior and makes evaluative assessment about them as moral or immoral
Establishes moral standards and norms of behavior
Makes judgment upon human behavior based on these standards and norms
Prescribes moral behavior and makes recommendations about how to or how not to behave
Expresses an opinion or attitude about human conduct in general

6. Nature of Ethics Deals only with human beings
A systematic knowledge about moral behavior and conduct of human beings
A Normative science
Deals with human conduct that is voluntary and not forced by any persons or circumstances

7. Business Ethics: What Does It Really Mean???
comprises principles and standards that guide behavior in the world of business
According to John Donaldson “Business Ethics can be described as the systematic study of moral (ethical) matters pertaining to business, industry or related activities, institutions, or practices and beliefs. It is the systematic handling of values in business and industry.”

8. Views on relationship between Business & Ethics
Unitarian View: Business & morality cannot be separated and it must play by the rules of ethics of the community.
Moral Structure
Business
Moral Ethics

9. Separatist view of Ethics
Proposed by Adam Smith and Milton Friedman: Business is a distinct entity and does not include ethics and morality
Business
Ethics

10. Integration view of ethics
Proposed by Talcott Parsons
Law
Government
Morality
&
Ethics
Society
Market Systems
Business
Ethics

11. Business Ethics
When business people speak about “business ethics” they usually mean one of three things:
1. Avoid breaking the criminal law in one’s work related activity
2. Avoid action that may result in civil law suits against the company
3. Avoid actions that are bad for the company image
Businesses are especially concerned with these three things since they involve loss of money and company reputation.

12. Relationship between law and moral standards
Laws and moral standards overlap to a certain extent
Law does not always represent collective moral judgments
Law represents a minimum set of standards for producing a desired human behaviour
Ethics often represents a standard that exceeds the legal minimum
Frequent Overlap
Ethics
Law

13. Common Unethical Acts... lying and withholding needed information
abusive or intimidating behavior
misreporting time worked
discrimination and sexual harassment
stealing
breaking environmental and safety laws
falsifying records
drug or alcohol abuse
giving or accepting bribes

14. Why Misconduct Is Not Reported...
belief that nothing will be done
fear of retaliation
fear of being viewed as a troublemaker

15. Why ethical behavior is important???
Business is a subsystem of society
Empowers all stakeholders concerned
Reduction in cost of friction with social environment
Important for organizations leaders because they influence the ethical climate for the rest.

16. Why Ethical problems occur?
Personal gain
Individual values widely differ with organizational goals
Managers values and attitudes
Competitive pressures
Cross-Cultural contradictions

17. Sources of Ethical Norms
Fellow Workers
Family
Friends
The Law
Regions of Country
Profession
Employer
Society at Large
Religious Beliefs
The Individual
Conscience
Culture

18. Factors influencing Business Ethics

19. THANK YOU !