Business Ethics BA 7402 Unit 1

8/18/2019 Business Ethics BA 7402 Unit 1

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Unit – 1

Introduction


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Topics

1. Defnition & nature o business ethics

2. Characteristics o business ethics

3. Ethical theories

4. Causes o unethical behaior

!. "or# ethics$. Code o conduct

%. ublic 'ood.


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1. Defnition & (ature

Ethics deried ro) *Ethos+ – character or custo)s oraccepted behaiors

,-ord dictionar *Ethics – the )oral principle that'oerns a person/s behaior or ho0 an actiit isconducted+

Ethics reers to 0ell –ounded standards o ri'ht and0ron' that prescribe 0hat hu)ans ou'ht to dousuall in ter)s o ri'hts obli'ations benefts tosociet airness or specifc irtues


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Contd

Usin' ethical standards a person or a 'roup o personor an or'aniation re'ulate their behaior todistin'uish bet0een 0hat is ri'ht and 0hat is 0ron' aperceied b others

(ot natural science but creation o hu)an )ind

(ot absolute and open to the inuence o ti)e place& situation

E' 5in's leaders – ood testin'


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6usiness Ethics

6usiness ethics is a or) o applied ethics –application o )oral or ethical nor)s to business

7eers to the code o conduct 0hich business)en aree-pected to ollo0 0hile dealin' 0ith others

Co)prises the principles & standards that 'uidebehaior in the conduct o business

6usiness – )a-i)ie proft a'ainst the need o sta#eholders

8aintainin' balance re9uires trade o:s 0here ethicsplas an i)portant role


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;cope o 6usiness Ethics

1. Ethics in Co)pliance – about obein' to rules &re'ulations

2. Ethics in


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Characteristics o 6usiness Ethics

i. = discipline

ii. =ncient concept

iii. ersonal Di'nit

i. 7elated to hu)an aspect

. ;tud o 'oals and )eansi. Di:erent ro) social responsibilit

ii. >reater than la0


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Causes o Unethical 6ehaiou


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"hat is unethical behaior?

=n behaior prohibited b la0 is unethical

Can be defned as one that is not )orallhonorable or that is prohibited b la0

=ctiities include @ corruption )ail and 0ireraud discri)ination and harass)ent insider

tradin' conicts o interest i)proper use oco)pan assets briber and #ic#bac#sco)pliance procedures ethical relations 0ithothers disciplinar action raud ille'albusiness donations patent inrin'e)ent and

product liabilit


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Unethical 6ehaiour

1. its & #ic#bac#s

4. Conict o interest

!. Unethical practices in healthcare

$. Insider tradin'

%. Discri)ination & harass)ent

A. "ron' doin'


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Causes o Unethical 6ehaiour

ressure to )eet unrealistic business

obBecties & deadlines

Desire to urther one/s career

To protect one/s lielihood

ob pressure

I'norance about unethical behaior

Corporate co)petitie adanta'e

ac# o consistent leadership


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5inds o Unethical 6ehaior inbusiness

Thet

endor relationships

6endin' the rules

Eniron)ental issues

"a'es & 0or#in' conditions


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"or# Ethics


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Introduction

"or# ethics – based on hard 0or# anddili'ence

=lso a belie in the )oral beneft o 0or# & itsabilit to enhance character

Ethical 0or#ers – 'ro0 aster


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Characteristics o "or# Ethics

7eliabilit

Dedication

roductiit

Cooperation

Character


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Code o Conduct


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Introduction

contains standards o business conduct that

'uide actions Includes

1. Co)pan alues

2. =oidance o conict o interest

3. =ccurate & ti)el disclosure o reports

4. Co)pliance o la0s rules & re'ulations

!. 8aintainin' confdentialit


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Continued

$. 8aintainin' air deals

%. ;tandards o business conduct or co)pan/scusto)er suppliers co))unities

A. rohibition o senior )ana'e)ent ro) ta#in'

corporate opportunities or their a)il


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E-a)ple


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ublic >ood


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Introduction

The beneft or 0ell bein' o public

Eer or'aniation dee)s to )aintain itspublic 'ood

ublic 'ood is directl associated 0ith the

or'aniation/s i)a'e


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I)portance

=ttractin' & retainin' talent Inestor loalt

Custo)er satisaction

7e'ulators


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Ethical Theories


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Introduction

6ased on ethical principles Each e)phasie di:erent aspects o ethical

dile))a and lead to correct resolution

eople choose ethical theor based on

e-periences


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Deontolo' Theor

;tates that *eople should adhere to theirobli'ations & duties 0hen analin' ethicaldile))a+

8eans that a person 0ill ollo0 hisFherobli'ations to another indiidual or societ

because upholdin' one/s dut is consideredethicall correct

Deontolo'ist 0ill #eep his pro)ises to hisriend as 0ell as ollo0 the la0


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Contd

"ill produce consistent decisions as the arebased on duties

roides the basis or special duties &obli'ations to specifc people

E' a)il – brother protectin' sister =lso praises those 0ho e-ceed duties and

obli'ations – *superero'ation+

E' Train hiBac# – one person scarifes or all


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Contd

"ea#nesses (o rationale or lo'ic in decidin' indiidual/s

duties

= person/s dut is conictin' in situations –

)eetin' s speedin' Does not 0or# in conictin' obli'ations


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Utilitarianis)

6ased on the abilit to predict theconse9uences o an action

Choice that ields the 'reatest beneft to )ostpeople is ethicall correct

Utilitarian can co)pare solutions and choose &deter)ine 0hich is )ore benefcial

roides a lo'ical and rationale ar'u)ent oreach decision


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Contd

T0o tpes

1. =ct utilitarianis)

2. 7ule utilitarianis)

.=ct – person peror)s the act that benefts)ost people re'ardless o personal eelin's &

societ.7ule – considers la0 and airness

.7ule utilitarian – benefts )ost people in air &b la0


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Contd

alues Bustice & benefcence at the sa)e ti)e

6oth rule & act are a0ed


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Contd

Does not allo0 superero'ation =n indiiduals ri'hts )abe inrin'ed or the

beneft o a lar'er people – act utilitarianis)

ossibilit o conictin' rules in rule

utilitarianis)


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7i'hts Theor

7i'hts set orth b societ are protected &'ien hi'hest priorit

Considered ethicall correct because lar'epopulation endorses the)

E' car borro0in' scenario 8aBor co)plication – one )ust decipher the

characteristics o ri'hts in societ

;ociet decides 0hat is ri'hts to the citien


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Contd

Thereore 0or#s in conBunction 0ith anotherethical theor that e-plains the 'oals o thesociet

E' 7eli'ious reedo) in =)erica s (ai


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Casuist Theor

Co)pares current ethical dile))as 0ithsi)ilar ethical situations

=llo0s to deter)ine the seerit o thesituation & create best possible solutions

Dra0bac# – no set e-a)ple or situations =ssu)es si)ilar results or eer situations


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irtue Theor

ud'es a person b his character rather thanb action that deiates ro) nor)al

Ta#es into account person/s )oralsreputation )otiation

E' la'iaris) "ea#ness – does not consider person/s chan'

in )oral character


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End o Unit @

Documents

Business Ethics BA 7402 Unit 1