04-a perspective of business ethics

8/13/2019 04-A Perspective of Business Ethics

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A Perspective of Business of

Business Ethics

Ranjan Mitter


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How new is it?

The study of ethics is at least 5000

years old.

Ethics was first explicitly applied tobusiness in the Code of Hammurabi

around 2100 BC.

Ethics is the study of what is good andright for the people.


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It asks the question

Ethics asks the question: How should I

act, especially when my actions directly

or indirectly affect others?


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Business Ethics is

The application of ethical principles and

methods of analysis to business.

A topic of study now required at allbusiness schools accredited by the

American Assembly of Collegiate

Schools of Business.


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Ethical Systems

Teleological: determine the ethics of an

act by looking to the probable outcome

or consequences of the decision

(ends).

Deontological: determine the ethics of

an act by looking to the process of the

decision ( means).


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Teleological Systems

Utilitarianism: make decisions based on

the greatest good or utility for the

greatest number as the end result.

Distributive Justice: ethical acts are

those that lead to an equitable

distribution of goods and services.


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Deontological Systems

Universalism: The rightness of an act doesnot depend on the results of the act. Themoral person is one of goodwill and makes

decisions based on what is right, regardlessof consequences. But how does he knowwhat is right? Kant suggested the categoricalimperative, that every person should act onlyon those principles that he as a rationalperson would prescribe as universal lawsapplicable to all mankind.


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Deontological Systems

Perspective of Religion: the Ten

Commandments etc.

Virtue ethics: ( Plato and Aristotle) asknot What actions are universally right?

but what is the best sort of life for

human beings to have?Exercise

judgment, do not apply rules. Make the

decisions a virtuous man would make.


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Caux Principles

Emanated from a Round Table of

International Executives based in Caux,

Switzerland. They believed that

business organisations can be a

powerful force for positive change in the

quality of life for the world.


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Caux Principles rooted in

kyosei and dignity

Kyosei: living and working together for the

common good- enabling co-operation and

mutual prosperity to co-exist with healthy and

fair competition. Human Dignity: relates to the sacredness or

value of each person as an end, not simply

as the means to fulfil other purposes or even

majority prescription.


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General Principles

The Responsibility of Businesses:

beyond Shareholders towards

Stakeholders

1. -- a business must maintain its own

economic health and viability but

survival is not a sufficient goal.---

sharing with (customers) the wealth---

created


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General Principles

The Economic and Social Impact of

Businesses: towards Innovation, Justice

and World Community.

1. contribute to ..social advancement of (host ) countries by creating productive

employment and helping to raise

purchasing power of its citizensalso in the

world community at large


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General Principles

Business Behaviour: beyond the letter

of the law towards a spirit of Trust

1. Contribute to the smoothness andefficiency of business transactions..

Respect for the ( international and

domestic ) rules.


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General Principles

Support for Multilateral Trade

Respect for Environment

Avoidance of Illicit Operations


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Stakeholder Principles:

applying kyosei/ dignity to

Customers

Employees

Owners / InvestorsSuppliers

Competitors

Communities


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Sources of ethics in American

business - Steiners

Genetic Inheritance

Religion

Philosophical SystemsCultural Experience

Legal Systems

Codes of conduct


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04-a perspective of business ethics

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