Business Ethics Basics

8/6/2019 Business Ethics Basics

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INTRODUCTION TOINTRODUCTION TO

BUSINESS ETHICSBUSINESS ETHICS



EthicsEthics

word meaning- character

y Set of standards or code or value system,

worked out from human reason & experienceby which free human actions are determined

as ultimately right or wrong, good or evil.

y Business ethics-appl. of ethics in business



Nature of ethics in businessNature of ethics in business

y In busi. 2 types of ethical problem

>

overt- bribary, theft, sabotage etc

>covert- complex and not transparent,

defy ethical solutions



y A decision is ethical if it is:

>Right- moraly right and due

>Good- brings good for all concerned

>Equitable- just & equal>Proper - appropriate & acceptable

>Fair - Honest & due

> just- justice is done



y Ethics is unstructured

ethics

moral standards

value system

background & childhood exper.

y Ethics express some obligation to others



Characteristics of BECharacteristics of BE

y Differ with persons

ethical questions do not have a unique

soln but a multitude of alternatives

y Ethical decisions are not limited to

themselves, but affects a wide range of

other situations as well.

y ED involves a trade off between costincurred and benefits received.



y Consequences are not cleary Every person is individually responsible for the

ethical or unethical decision and action that he

or she takesy Ethical actions are voluntary human actions



Why is ethics impo. in business? Why is ethics impo. in business?

y Ethics corresponds to basic human needs

y Values create credibility with the public

y

Values give mgmt credibility withemployees

y Values help better decision making

y Ethics and profit

y Law cannot protect society, ethics can.



Sources of ethicsSources of ethics

y Religion

y C

ultural experience

y The legal system



Morality and ethicsMorality and ethics

Morality is the std an individual or communitykeeps about what is right and wrong or good

and evil.

Moralityy Moral norms deals with topics that either

seriously harm or benefit human beings

y

Moral stds are not dependent on or changedby the decision of authoritative bodies



y Moral demands enjoys a self-driven force

y

Expressed through the medium of specialemotions.

Ethics

y

Ethics helps one to address questions such aswhat do moral principles mean in a given

situation

y Ethics offers certain moral stds to judge a

particular human behaviour or situation



Ethics & LawEthics & Law

y Law is universally accepted, published document

y Law says, what action should be taken against a

person who violates the provisions of legal

system whereas the consequences of unethicalaction is not clear

y Some laws have nothing to do with morality

while some may even violate our moral stds.



Ethical theories

1.Utilitarianism (consequence based)Teleological Theories

y The word teleological is derived from the

Greek word telos, which refers to an end.y Actions are justified on teleological theories

by virtue of the end they achieve, rather than

some feature of the actions themselves.



y an action is said to be right if it produces good

results or its achieves good consequences.

2 types

>act-consequentialism:morality of an actiondepends on its consequences

>rule-consequentialism: focusing only on the

consequences can lead people to committing

outrageous action.



2.Deontological (duty based theory)

The word deontological derives from the deon,the Greek word for duty.

y people behave ethically as they find it theirsolemn duty towards that

y Suggests that we have moral duties to othersy Stress the importance of respecting a

person·s autonomy

y It also stresses that one has duties to oneself



3. Social justice theory

4. Ethics of care

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Business Ethics Basics