Meaning of ethics

The word ethics is derived from the Greek word ethos (character), and from the Latin
word mores (customs). Derived from the Greek word ethos, which means way of
living, ethics is a branch of philosophy that is concerned with human conduct. It consists
in a code of conduct of human beings living in a society. Ethics examines the rational
justification for our moral judgments; it studies what is morally right or wrong, just or
unjust. Together, they combine to define how individuals choose to interact with one
another. In philosophy, ethics defines what is good for the individual and for society and
establishes the nature of duties that people owe to themselves and to one another. It aims
at individual good as well as social good, the good of mankind as a whole.
Ethics is am attempt to guide human conduct and it is also an attempt to help man in
leading good life by applying moral principles. Ethics refers to well based standards of
right and wrong that prescribe what humans ought to do, usually in terms of rights,
obligations, benefits to society, fairness, or specific virtues. Ethics is related to issues of
propriety, rightness and wrongness. What is right is ethical and what is wrong is
unethical. The words proper, fare and just are also used in place of right and
ethical. If it is ethical, it is right, proper, fair and just. Ethics is a matter of practical
concern. It tries to determine the good and right thing to do; choices regarding right and
wrong, good and evil; questions of obligation and value. Ethics is to consider the practice
of doing right actions or what we may call the art of living the good life.
It is also defined as the science of the highest good. Mackenzie defines ethics as the
study of what is right or good in human conduct or the science of the ideal involved in
human life. So, it is clear that ethics is the study which determines rightness or
wrongness of actions.
Applied ethics is the practice of ethics that aims to guide the moral judgment governing
the decisions we make in all areas of our lives .Issues of right and wrong are related to
ones values. In the context of ethics, values are our standards of right and wrong.
Six Characteristics of an Ethical Business
Leadership
The culture of an ethical business is defined starting from the very top of the
organizational chart. For a business to be ethical, its leaders must demonstrate ethical
practices in any situation. The true test of this leadership is in the decision-making
process when there is a choice between what is ethically responsible and what will result
in profit or gain. Leaders who can consciously choose the path that is ethically correct, as
opposed to one that is purely financially driven, have successfully created an ethical
culture in the business. When the culture is solid at the top of the organization, it trickles
down to all areas and employees.

Values
An ethical business has a core value statement that describes its mission. Any business
can create a value statement, but an ethical business lives by it. It communicates this
mission to every employee within the structure and ensures that it is followed. The ethical
business will institute a code of conduct that supports its mission. This code of conduct is
the guideline for each employee to follow as he carries out the company's mission.
Integrity
Integrity is an all-encompassing characteristic of an ethical business. The ethical business
adheres to laws and regulations at the local, state and federal levels. It treats its
employees fairly, communicating with them honestly and openly. It demonstrates fair
dealings with customers and vendors including competitive pricing, timely payments and
the highest quality standards in the manufacture of its products.
Respect
Ethics and respect go hand in hand. An ethical business demonstrates respect for its
employees by valuing opinions and treating each employee as an equal. The business
shows respect for its customers by listening to feedback and assessing needs. An ethical
business respects its vendors, paying on time and utilizing fair buying practices. And an
ethical business respects its community by being environmentally responsible, showing
concern and giving back as it sees fit.
Loyalty
Solid relationships are a cornerstone of an ethical business. Loyal relationships are
mutually beneficial and both parties reap benefits. Employees who work for a loyal
employer want to maintain the relationship and will work harder toward that end.
Vendors and customers will remain loyal to a business that is reliable and dependable in
all situations. An ethical business stays loyal to its partnerships even in challenging times.
The result is a stronger relationship when emerging from the challenge.
Concern
An ethical business has concern for anyone and anything impacted by the business. This
includes customers, employees, vendors and the public. Every decision made by the
business is based on the effect it may have on any one of these groups of people, or the
environment surrounding it.

What Are the Causes of Unethical Behavior in the Workplace?

People act unethically for a number of reasons. Unethical behavior is defined as behavior
that contravenes rules designed to maintain the fairness and morality of a situation. An
example of unethical behavior is a representative of a company taking kickbacks from a
salesman for preferential treatment. Behavior like this is motivated by various things.
Greed
One of the main causes of unethical behavior is greed. A person often chooses to act
immorally or unethically for personal financial gain. In business, there are a number of
opportunities for employees and employers to do the wrong thing. For example, an
employee who has contact with a client may be willing to give them a discount in
exchange for a kickback. An employer may have an opportunity to sell the company's
stock when he has inside information about a drop in profit.
One of the main causes of unethical behavior is greed.
Environment
Sometimes, a person acts unethically in business because his employer condones the
behavior. For example, in the late 1990s, traders at Enron conducted trades that cost the
state of California millions of dollars in electricity payments. This was unethical, but the
behavior was so common on the trading floor that it was never questioned.
Career Advancement
A person acts unethically because she believes it helps her career. An unethical act is used
as a means of impressing a superior or hurting the career of a competitor. For example, a
person sabotages a co-worker's project as a means of making herself look better in
comparison.
Ignorance
Ethical conflicts or violations are not always transparent, and it's easy for an employee to
perform an unethical act without knowing it. For this reason, it is important for
companies to make employees aware both of the company's general ethics policy, and
specific examples of ethical and unethical behavior.

BA8401 BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY LT P C

AND GOVERNANCE 3 0 0 3
UNIT I INTRODUCTION 9
Definition & nature Business ethics, Characteristics, Ethical theories; Causes of unethical
behavior; Ethical abuses; Work ethics; Code of conduct; Public good.
UNIT ETHICS THEORY AND BEYOND 9
Management of Ethics - Ethics analysis [ Hosmer model ]; Ethical dilemma; Ethics in
practice - ethics for managers; Role and function of ethical managers- Comparative
ethical behaviour of managers; Code of ethics; Competitiveness, organizational size,
profitability and ethics; Cost of ethics in Corporate ethics evaluation. Business and
ecological / environmental issues in the Indian context and case studies.
UNIT III LEGAL ASPECTS OF ETHICS 9
Political legal environment; Provisions of the Indian constitution pertaining to
Business; Political setup major characteristics and their implications for business;
Prominent features of MRTP & FERA. Social cultural environment and their impact on
business operations, Salient features of Indian culture and values.
UNIT IV ENVIRONMENTAL ETHICS 9
Economic Environment; Philosophy of economic grow and its implications for business,
Main features of Economic Planning with respect to business; Industrial policy and
framework of government contract over Business; Role of chamber of commerce and
confederation of Indian Industries.
UNIT V CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE 9
Definition- Evolution- Need for CSR; Theoretical perspectives; Corporate citizenship;
Business practices; Strategies for CSR; Challenges and implementation; Evolution of
corporate governance; Governance practices and regulation; Structure and development
of boards; Role of capital market and government; Governance ratings; Future of
governance- innovative practices; Case studies with lessons learnt.

TOTAL:45 PERIODS
TEXTBOOKS
1. S.A. Sherlekar, Ethics in Management, Himalaya Publishing House, 2009.

2. William B. Werther and David B. Chandler, Strategic corporate social responsibility,

Sage Publications Inc., 2011
3. Robert A.G. Monks and Nell Minow, Corporate governance, John Wiley and Sons,
2011.
REFERENCES
1. W.H. Shaw, Business Ethics, Cengage Learning, 2007.
2. Beeslory, Michel and Evens, Corporate Social Responsibility, Taylor and Francis,
1978.
3. Philip Kotler and Nancy Lee, Corporate social responsibility: doing the most good for
company and your cause, Wiley, 2005.
4. Subhabrata Bobby Banerjee, Corporate social responsibility: the good, the bad and the
ugly, Edward Elgar Publishing, 2007.
5. Satheesh kumar, Corporate governance, Oxford University, Press, 2010.
6. Bob Tricker, Corporate governance- Principles, policies and practices, Oxford
University Press, 2009.
7. Larue Tone Hosmer and Richard D., The Ethics of Management, Irwin Inc., 1995.
8. Joseph A. Petrick and John F. Quinn, Management Ethics - integrity at work, Sage,
1997.