IPCC Paper 2: Business Laws, Ethics &

Communications Chapter -7

CA. Dharmendra Madaan

Ethics

Business Ethics

Distinction between Ethics & Morality

Social Sins by Mahatma Gandhi

Ethical Dilemma

Benefits of Business Ethics

An Inro.

Doing the
right thing

Way of being
a good
human being

Vision of ones own self in all beings

An obligation to consider not only our own personal wellbeing, but also that of others and of human society as a whole.

To become more and more selfless.

Ethikos - Character
The essence of values and habits of a
person or group.

It covers the analysis and employment of

concepts such as right and wrong, good
and evil, and acting with responsibility.

Principles of conduct governing an

individual or a group.

Ethics relates to what is good or bad, and

having to do with moral duty and obligation.

An intro.,

Application of everyday moral or ethical norms to the

business

Acting with an awareness of how entitys products

and services, and the actions of its employees, can
affect its stakeholders and society as a whole

Developing codes of conduct for doing business in an

ethical manner

Most Widespread Means

by which companies communicate their ethical
standards to the employees or professionals.

Formalised rules and standards

that describe what is expected from employees.

Ethics has a much wider scope.

Morals work on a smaller scale than

ethics,

Ethics are accepted because they follow

from personally accepted principles.

Morals are accepted from an authority

(cultural, religious, etc.)

People have character.

Societies have custom.

Character is a personal attribute.

Custom is defined by a group over

time.

The root word for ETHICS is the Greek

ETHIKOS meaning CHARACTER.

MORAL is Latin "MOS" meaning

CUSTOM.

Ethics

Morality

Politics without Principles

Wealth without work
Commerce without Morality
Knowledge without Character
Pleasure without Conscience
Science without humanity
Worship without sacrifice

An Intro.

An ethical dilemma is a
situation where the decision
maker has to make a choice
from various alternatives in
which more than one option
seem right. Ethical dilemma
faced by managers are often
highly complex with no clear
guidelines.

An ethical issue is an
identifiable problem,
situation, or opportunity that
requires a person to choose
from among several actions
that may be evaluated as
ethical or unethical.

Define the problem clearly.

How would you define the problem if you stood
on the other side of the fence?
How did the situation arise?
To whom are you loyal as a person and as a
member of the organisation?

What is your intention in making this decision?

How does this intention compare with the
probable results?
Whom could your decision or action injure?
Can you discuss the problem with the affected
parties before you make your decision?

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Are you confident that your position will be as valid over a long period?

Could you disclose without any doubt your decision or action to your
boss, your CEO, the Board of Directors, your family, society as a whole?

What is the symbolic potential of your action if understood?

Misunderstood?

Under what conditions would you allow exceptions to your stand?

An Intro.

No exploitation of children and workers

Improved Society
Easier Labour Recruitment and retention
High Motivation of employees
Strong Teamwork

Greater Productivity
No Government Intervention
Easier Change Management
Enhanced Employee Growth
Total Quality Management

Customer loyalty
Increase in sales
Increased profitability
Market Expansion
Stronger public image

Better Corporate Reputation & brand image

Reduced employees turnover
Reduction in cost
Easy availability of finance
Easier acceptance of new products and services

CA. Dharmendra Madaan