Introduction to Ethics-Business Ethics

7/30/2019 Introduction to Ethics-Business Ethics

1/25

By: Dr. Ketki Bhatti


2/25


3/25

Ethics is not definable, is not

implementable, because it is not

conscious, it involves not only our thinking

but also our feeling.

Integrity is telling myself the truth where

as honesty is telling the truth to otherpeople.


4/25

Live so that when your children think of

fairness and integrity, they think of you.


5/25

Ethics, also known as moral philosophy,is a branch of philosophy that addressesquestions about moralitythat is, concepts

such as good and evil, right and wrong,virtue and vice, justice, etc.

Integrity without knowledge is weak anduseless, and knowledge without integrity isdangerous and dreadful.


6/25

A set of right conduct and a theory or a systemof moral values.

A moral code, morals, morality, values, rightsand wrongs, principles, ideals, standards (ofbehaviour), value system, virtues, dictates ofconscience.


7/25

Ethical dilemmas occur whenever two or more

values conflict with one another.

When people are faced with decisions thatrequire one value to win at the expense of

another (for example, profit winning out over

employees keeping their jobs).

Businesspeople- it provides another perspective

and the more information a person has, the

better decisions he can make.


8/25

Stakeholders:

To identify the various stakeholders in every decision. Corporate Leadership:

If a leader appears to be unconcerned about breakingrules, then those below him will likely do the same. Thiscan often end in legal trouble for the company.

Social Responsibility:

To balance serving their bottom line, their shareholders

and their community


9/25

Creates high degree of trust and integrate

and motivate and empower stakeholders.

Eg. TATA group of cos.

Creates awareness of CSR of business.

The power to co-exist.

Helps in professional life- Harmony and at

peace.


10/25

It is Ethics of Business, study of what isgood or bad, right and wrong, just andunjust, fair and unfair in the business as

against in personal life.

Code of conduct for businessman forcarrying on business consistent with whatothers follows.

Different from Personal Ethics.


11/25

Trader is like honey bee, who sucks honeyout of flower, without harm to flower.

Also helps flower pollinating- process of

fertilisation- when taking profit, no harm to bedone in quest of personal gain.

Business Ethics is inseperable part of modern

business.

It is vital for long term growth of business.Managers Ethics and Corporate Ethics are

parts of Business Ethics.


12/25

Ethics in Bhagwat Geeta:

Lord Krishna said Manager should look at the taskset for him more for its satisfaction, the fulfillment thatgives, rather than for personal gain or profit.

Elliot Jacques, American Scholar called ProfessionalManager as Propertyless Manager, who manages

the company successfully, but does not own any partof it as personal property.

He does job not for personal gain, but for satisfaction

he drives.


13/25

Check malpractices- rapid business growththrew up many unethical practices- desire formoney and economic power breeded many

evils, which harmed society.Prevent exploitation of market, society and

consumers.Drive home social responsibility to gain

confidence of consumer- the king incompetition.

Forge cordial relation with the society.


14/25


15/25

Take care of stakeholders, owners,

employers, customers, suppliers, community

and environment.

Fair dealings and fair practices in business.

Avoid exploitation of consumers.

Avoid profiteering.

Encourage healthy competition.Accept social responsibility.


16/25

The business is not only for growth of

businessman, also for long term growth of

business itself.

Long term creation of wealth.

Creation of better social image, and

Build investor confidence.


17/25

What is the role of profit and charity inBusiness Ethics?

Is honesty the best policy and good in the

long run? Is there a difference between ethical/unethical/ unethical practices in businessand in personal life?

Do you agree that the business practicewhich is legally sound should be treated asethically sound and some may not be morallysound?


18/25


19/25

Ethics corresponds to basic human needs:

The first obvious reason for being ethical is

of course that the top bosses might

otherwise land in jail and the company be

hit with a heavy fine.

However, this is not really an ethical

consideration. It is rather a matter ofexpediency.


20/25

We believe that most people want, even

need, to be ethical not only in their private

lives, but also in their business affairs

where a manager knows his decisions may

effect lives of thousands of people.

Most people want to be part of an

organisation which they can respect and

be publicly proud of because they perceivethe purpose and activity to be beneficial to

society.


21/25

Values create credibility with the public:

A company perceived by the public to be

ethically and socially concerned will be

honoured and respected even by those

who have no intimate knowledge of itsactual working.

Its public issues, whether in the form of

equity, convertible bonds or fixed depositswill attract an immediate response.


22/25

Values give management credibility with

employees:

Values provide a common language foraligning a companys leadership and its

people Robert Haas of Levi Strauss.

TISCO- Hamari company. Association is

strong, value as a family, employees are

convinced of firms honesty and decency to

ease the transition of workers from the firm

either to retirement or to some other job.No strike, no unrest unlike the industry.


23/25

Values help better decision making:

Helps management make better decisions.

Interest of the public- Economic, social andethical aspects.

Eg. Layoff of workers, closing of plants

toxic waste management safety inproduction processes and in the final

product as certain examples to name a

few.


24/25

Finance/Accounting Field

HRM

Marketing

Operations/Production etc.


25/25

Documents

Introduction to Ethics-Business Ethics