what is ethics ?

The field of ethics (or moral philosophy) involves systematizing, defending, and recommending concepts
of right and wrong behavior.and the branch of knowledge that deals with moral principles.

what is business ethics ?

0Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that
examines ethical principles and moral or ethical problems that arise in a business environment. It applies
to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations

Ethics policy ?

Ethics Policy. The American Heart Association Ethics Policy reflects the high standard of business
conduct representing what is the hallmark of our organization. Our Ethics Policy helps define our
commitment to support a culture of openness, trust and integrity in all we do.

Ethical dilemma ?

Ethical dilemmas, also known as a moral dilemmas, are situations in which there is a choice to be made
between two options, neither of which resolves the situation in an ethically acceptable fashion.

Ethical oraganazition ?

An organization forms when individuals with varied interests and different backgrounds unite on a
common platform and work together towards predefined goals and objectives.

whistle blowing ?

A whistleblower (also written as whistle-blower or whistle blower) is a person who exposes any kind of
information or activity that is deemed illegal, unethical, or not correct within an organization that is either
private or public

what is code of ethics ?

A code of ethics document may outline the mission and values of the business or organization, how
professionals are supposed to approach problems, the ethical principles based on the organization's core
values and the standards to which the professional is held.

what is Transnational culture ?

Individuals, groups, institutions and states interact with each other in a new global space where cultural
and political characteristic of national societies are combined with emerging multilevel and multinational
activities. Transnationalism is a part of the process of capitalist globalization.

what is Ethical decision making ?

Ethical decision-making refers to the process of evaluating and choosing among alternatives in a manner
consistent with ethical principles. In making ethical decisions, it is necessary to perceive and eliminate
unethical options and select the best ethical alternative

why is morality essenatial ?

Our results show that we consider moral traits so important in others, in part, because a person's morality
can benefit us in some way. Moral traits have social value. ... From an adaptive perspective, moral traits
signal to us whether we should approach

ethical training ?

Ethics Training is "to enable employees to identify and deal with ethical problems developing their moral
intuitions, which are implicit in everyday choices and actions

Code of conduct ?

. A code of conduct is a set of rules outlining the social norms and religious rules and responsibilities of,
or proper practices for, an individual, party or organization

wt is values ?

value has been taken to mean moral ideas, general conceptions or orientations towards the world or
sometimes simply interests, attitudes, preferences, needs, sentiments and dispositions.

what is CSR ?

Corporate social responsibility, often abbreviated "CSR," is a corporation's initiatives to assess and take
responsibility for the company's effects on environmental and social wellbeing

What is corporate culture ?

Corporate culture refers to the beliefs and behaviors that determine how a company's employees and
management interact and handle outside business transactions known as corporate culture.

what is morals ?

standards of behaviour; principles of right and wrong.and the corruption of public morals"

what is Ethical managament ?

Ethical management refers to corporate management that not only fulfills economic goals and legal
responsibilities, but also meets the ethical expectations imposed by social norms in conducting business.

what is Ethical Standards ?

Morality stated as principles. Intended to generate trust, good behavior, fairness, and kindness. Typically
occurs in a corporate setting, for an organization kwon as E/S

Ethical working environment ?

It starts at the top. It begins with ethical leadership. ... Ethical leaders have a tremendous impact on how
people in their organizations behave and what they achieve. kwon as EWE

what is ethics programme ?

ethics programs are organizational policies put in place to promote law abiding and ethical conduct. To be
effective, they must be supported by procedures, communications efforts, and cultural attributes

what is committee ?
An ethics committee is a body responsible for ensuring that medical experimentation and human research
are carried out in an ethical manner in accordance with national and international law.

wt is Globalization ?

the process by which businesses or other organizations develop international influence or start operating
on an international scale.

wt is stakeholder orientation ?

A company's stakeholder orientation represents how much a company attends to the interests of all its
relevant stakeholders, and thus it attempts to address such interests. From a strategic management
perspective, a strong stakeholder orientation can lead to competitive advantage.

5 marks

Objective of business Ethicss ?

1.establish moral standards

2.overall study of human behaviors

3.Apply judgment based on standards and norms

4. suggest moral behaviors

*) social responsibility

*) Ethical issue

*) whitle blowing

5.improve standards

Importance of business ethics ?

1 .personal gain

2 .managers values and attitudes

3 .individual values and organizational values

4 .Goodwill of the business and business man

5 .self satisfaction

6.success and devalpment

7. new management
8.comtitive pressures

why Importance of business ethics ?

1.Ethics influence and contribute

2.Employee commitment

3.cost control

4.repution and image

5. performance revenve and profit

6.customer satisfaction

Features of business ethics ?

1.Good intention

2.Ethics project society

3.study human aspects

4.discipline

5.honesty

6.based on moral and social values

7.code of conduct

8.provides basic frame work

Problems of business ethics ?

1.Ethical behaviour

2.Lack of integrity

3.orgnazational problems

4.organazational relationaship problems

5.Ethical issues facing employeee

6.Ethical issues in the workplace

7.Ethics of business and the environment

8.Ethical issue in international business

what is the Role of Ethics in business management ?

1.Improved employee and organizational morale

2.increased ability to attract new customers

3.improved customer loyalty

4.Attraction of new stakeholder

5.making a positive impact on the community

6.Quelity

7.commitment

8.Responsibility

model 2

IMPORTANCE OF ETHICS AND MORAL STANDARDS.

 Ethical behavior is essential for long-term success in business.

 There are two perspectives for business ethics – macro and micro.
 Macro argument says, the unethical behavior distorts the market system, that leads to an
inefficient allocation of resources.
 The micro argument highlights the importance of ethics to the individual firm.

Essentials of an efficient market system:

1. The right to own and control private property.

2. Freedom of choice in buying and selling goods and services.
3. The availability of perfect information regarding goods and services.
 If the market system can not work properly, people will buy goods and service that provide them
less satisfaction.

Unethical Behavior From A Macro Perspective

1. Bribery: Bribery reduces freedom of choice by changing the conditions under which a decision is
made
2. Coercive Acts: Coercive acts, in the form of threats that prevent a seller from dealing with
certain customers, decrease effective competition.
3. Deceptive Information
4. Unfair discrimination: It often results in the purchase of services from less capable people or the
sale of goods and services to less capable people, which may result in lower level of satisfaction.

Macro Perspective – Ethics and Trust.

  From the perspective of the firm, ethics is closely associated with trust.
 Trust in a business setting reduces costs, makes life more pleasant, and improves
 Norms of trust: (a) Commitments to be honored in all situations; (b) One ought to produce a
good product and stand by it.
 Trust involves three fundamental elements – predictability, dependability,& faith.
 Trust is a risk-reducing mechanism. There are three types of trusts:
1. Trust in Supplier Relations.
2. Trust in Customer Relations, and
3. Trust in Employee Relations.
Moral Standards:

 They provide tools for judging the moral value of a decision.

 They provide the basis for deciding whether an act is right or wrong.
 Moral standards consist of specific moral norms and general moral principles.
 Moral norms prohibit certain types of behavior such as lying, stealing & killing.
 Moral principles provide more general guidelines for behavior and are applicable to decision
situations.
 A social contract is an informal agreement regarding behavioral norms that are developed from
shared goals, beliefs, and attitudes of groups of people.
 They provide the basis for evaluating all other norms.
 They stand for the basic principles that are fundamental to human existence, e.g., human rights,
ownership to property, right to live etc.

Consequentialist Principles:

 A decision is ethical or unethical is based on the consequences of the decision.

 Egoism: Egoism is a standard, that focuses on self-interest.
 Decisions based on egoism provides the most favorable consequences for that party regardless of
the consequences to other parties.
 Self-interest may be short-run or long-run.
 Adam Smith has argued that society’s interest is better served when an individual pursues long-
term self-interest.
Limitations of Consequences Approach:

1. It is very difficult to foresee all the consequences of a business decision.

2. Many decisions have consequences that are not easily measured.
3. Maximizing net utility may require actions that cause harm to some people.

Non-Consequentialist Principles

1. Rights Principles:
2. Justice Principles:

model 3

Corporations and Social Responsibilities.

Introduction:
  The business of business is business.
 Business began merely as an institution for the purpose of making money.
 So long as a man made money and kept himself out of jail, he was considered successful.
 The recognition of social responsibility has been termed as the emergence of ‘corporate
conscience.’
 Business is not an end in itself. It is only a means to an end.
Factors contributing to emergence of CSR:

1. Awareness of the fact that the public was an integral part of the general business scheme.
2. The emergence of ‘the purchasing power of the public.’ The business policy for higher wages and
lower prices.
3. Business has a duty to report to the public, whose money it is constantly asking for, in order to
conduct the business.
 Classical view held, ‘if a business was striving to utilize the resources at its disposal as efficiently
as possible in producing the requisite goods and services,
 ‘Social responsibility may be taken to mean intelligent and objective concern for the welfare of
the society
 ‘A business has an obligation to pursue those policies to make those decisions or to follow those
lines of action that are desirable in terms of objectives
 ‘Social responsibility is a firm’s acceptance of a social obligation beyond the requirements of
law.’ Keith Davis.
Need for Social Responsibilities:

1. The Iron Law of Responsibility: If business intends to retain its existing social role and social
power, it must respond to society’s needs constructively.
2. To fulfill Long-run Self-interest. A business organization most sensitive to community needs
would, in its own self-interest, like to have a better community in which to conduct its business.
3. To establish a better public image. Each business organization must enhance its public image to
secure more customers, better employees, and higher profit.
4. To avoid government regulations or control. Failure of businessmen to assume social
responsibilities invites government to intervene and regulate or control their activities. (e.g. PAN
card a must for opening a DEMAT account).
5. To avoid misuse of natural resources and economic power. Businessmen should not forget that
the power to command national resources has been delegated to them by the society to generate
more wealth for its betterment.
6. To avoid class conflicts. Businessmen must win over the confidence of workers and avoid violent
class conflicts in their own interest.
7. To convert resistances into resources. If the innovative ability of a business is turned to social
problems, many resistances (problems) can be transformed into resources and the functional
capacity of resources may be increased manifold. (Prevention is better than cure).
8. To minimize environmental damage. Businesses should understand its ecological responsibility
towards society by ensuring environment is not damaged by its activities.

Responsibility of Business towards Society:

 ‘It is the duty of business to provide a fair return to the shareholders, fair working conditions to
the employees, fair deal to the suppliers and customers, and to make the business an asset to the
local community and the nation.’ Earnest Dale.
 1. Responsibility towards owners: Fair returns, steady capital appreciation, timely information,
optimum utilization of resources.
2. Responsibility towards employees: Employees need security of job, higher wages, full
employment, better conditions of work, opportunities for self-development and promotion.
Management is expected to provide for workers’ social security, welfare, grievances settlement
machinery, and sharing of excess profits. Be a model employer.
3. Responsibility towards consumers: ‘Management must provide those goods and services that the
society needs at a price that the society can afford to pay.’ Henry Ford. A businessman must
guard against adulteration, poor quality, lack of service to the consumer, misleading and
dishonest advertisements, under-weighing etc.
 ‘The rich businessman should recognize that he is the trustee for all the wealth that he has
collected from the members of the society. So, the entrepreneur has to strike a balance between
profit and social good.’ Mahatma Gandhi.
 President Wilson of USA first propounded the concept of social responsibility in 1913.
 Social issues concerning businesses since 1960s – (i) Social problems external to corporations
e.g. poverty, drug abuse, decay of cities, (ii) external impact of regular economic activities e.g.
pollution, unsafe and unhygienic products etc. (iii) Regular economic activities within the firm
e.g. inequalities among employees, the quality of work life, occupational health and safety etc.

model 4

Unethical Behavior by Individuals in Organizations.

 Are all behaviors by individuals come under the purview of unethical behavior?
 Employees failing to respect each other’s unique personalities.
 Managers acting in an unprofessional manner towards their various constituents or put their own
self-interests before those of other members of the organization.
Main forms of unethical behavior by individuals:

1. Lying.
2. Greed.
3. Free-riding.
4. Employee crime.
5. White collar crime.
6. Embezzlement and fraud.
7. Bribery.
Moral Basis of Professional Behavior:

 Professional behavior relates to a public declaration or the public act of taking a religious vow.
 An occupation involving the application of specialist knowledge to the affairs of others e.g.
medicine, law, university teaching etc.
 Do all professionals stand by their oaths? If yes, why? If no, why?

Modern Concept of Professional Behavior:

 1. The right to define their own standards of performance.
2. The right to organize their own disciplinary procedures for enforcing these standards.
3. The restricting of entry into the profession through examinations or other licensing requirements.
 Ethical norms for professionals:
4. Responsibilities towards clients.
5. Responsibilities towards the profession itself.
6. Responsibilities towards society.

Professional Ethics in Public and Private Organizations:

 Large organizations have professionals such as HR managers, engineers, economists, marketing,

financial and computer experts (popularly referred to as technocrats).
 Are the ethical responsibilities of these technocrats clearly defined? How far management has
control over it? Or is it that management does not allow them to be ethical?
 Managers must act in a professional way to minimize the effects of dysfunctional behavior in
organizations.

The Role of Corporate Culture in Ethical Decision Making

 Culture gives members of an organization meaning and provides them with rules for behaving
within the organization.
 A company’s history and unwritten rules are a part of its culture.
 Culture can be influenced by the founder’s values.
 Some cultures are so strong they dictate the character of the entire organization to outsiders.
Ethics as a Component of Corporate Culture
 Top management provides the blueprint of what a corporate culture should be.
 Organizational ethical decisions have a strong impact on corporate culture.
 Failure to monitor and manage corporate culture may cause unethical behavior.
 Rewards and punishment need to be consistent with the corporate culture.
Organizational Structure & Business Ethics
1. In centralized organizations, decision-making authority is concentrated in the hands of

top level managers and little authority is delegated to lower levels.

 stress formal rules, policies and procedures supported with systematic control systems
 may specify the techniques for decision makers in their codes of ethics
 tend to be very bureaucratic
 have a well-defined division of labor

2. In decentralized organizations, decision- making authority is delegated as far down

the chain of command as possible.

 difficulty in responding quickly to changes in policy and procedures established by top

management
 employees have extensive decision-making authority

3. Each structure has a unique influence on ethical decision making and behavior.

Types of Conflict
1.person-organizational

2.person-societal

3.organizational-societal

The Auditing Process...

 secure top management and board commitment
 establish an ethics audit committee
 define the scope of the audit (subject matter)
 review the organizational mission and goals
 collect and analyze relevant information
 verify the results through an outside agent
 report the findings to:
Global Ethical Issues

 sexual and racial discrimination

 human rights
 price discrimination
 bribery
 harmful products
 pollution and the natural environment
 telecommunications issues
faileres in business ethics today corporate ?

1. maney

2. unclear policiey
3.unethical culture

4.deciplane

5.Regulations and inefficient controls

6.Lack of moral criteria in promotions.

7.education

8.technology

Factors influencing Business Ethics

1.Personal Code of Ethics

2.Legislation

3.Government Rules and Regulations

4.Ethical Code of the Company

5. Social Pressures hhfh

6.Ethical Climate of the Industry

Factors influencing Business Ethics and characteristics for ethical decision making ?

1. maral values

2.individual factor

3.situational factor

4.personal values

5.personal integrity

6.education and employment

characteristics for ethical decision making ?

i) Decision-Making is Goal-Oriented:

(ii) Decision-Making is Pervasive:

(iii) Decision-Making is an Intellectual Exercise:

(iv) Decision-Making Involves a Problem of Choice:

(v) Decision-Making is a Continuous Process: