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Organizational Factors
Top Level Management Philosophy The Firms Reward System Job Dimensions
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Economic Conditions Social and Cultural Institutions Competition
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Codes of Ethics
Formalized rules and standards that describe what a company expects of its employees
1. Recognize a Moral issue 2. Get the facts 3. Evaluate the alternatives from various moral perspectives 4. Make a decision 5. Act, then reflect on the decision later
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Objectives of Ethics
Ethics studies human conduct and evaluates these as moral or immoral and right or wrong and good or bad. Ethics sets moral standards and norms for human behaviour. Ethics evaluates past behaviour against standards and norms and then makes judgment upon human behaviors as right or wrong and moral or immoral. Ethics prescribes moral standard behaviour and also provides solution about how to behave in a given specific situation.
Top management must adopt & unconditionally support an explicit corporate code of conduct. Employees must understand that ethical behavior begins at the top & that senior management expects all employees to act accordingly Managers & others must be trained to consider the ethical implications of all business decisions An ethics office must be set up. Outsiders must be told about the ethic program. The ethics code must be enforced
Questions to Consider in Determining Whether an Action is Ethical Are there any potential legal restrictions or violations that could result from the action? Does you company have a specific code of ethics or a policy on the action? Is this activity customary in your industry? Are there any industry trade groups that provide guidelines or codes of conduct that address this issue?
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Branches of Ethics
Normative Ethics Meta Physics Applied Ethics Moral Ethics Descriptive Ethics
Normative ethics: Deals with how individuals can decide the correct moral action that they should take in a given situation of ethical nature.( Two philosophers Socrates and John stuart mill) Meta ethics: Understand the nature of ethical properties and judgments such as true values can be found and theory behind moral principles. Applied ethics: It deals with ethical theories developed by various philosophers in our every day of life. Ex: Should you turn in your friend at workplace for taking home office supplies? Is it right have an abortion ?
Moral ethics: The branch of ethics raises questions like: How people develop their morality? Why certain aspects of morality differ across cultures? Why certain aspects of morality are generally universally applicable? Descriptive ethics: This branch of ethics focuses on application aspect of ethics. Speaking alternatively, this branch of ethics studies how people actually conduct in real world, rather than attempts to just theorize about how people should conduct in their day to day affairs.