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Business Ethics Fundamentals

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The Nature of Ethics

2

Ethics The inner-

guiding moral

principles, values,

and beliefs that people

use to analyze or

interpret a situation and

then decide what is theright or appropriate

way to behave

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Chapter Outline Business Ethics andPublic Opinion

What Does Business

Ethics Mean? Ethics, Economics

and Law: Venn Model

Four Important Ethics

Questions

Three Models ofManagement Ethics

Making MoralManagementActionable

Developing MoralJudgment

Elements of MoralJudgment

Summary

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IntroductionBusiness Ethics

Publics interest in business ethics increased during

the last four decades Publics interest in business ethics spurred by the

media

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IntroductionInventory of Ethical Issues in Business

Employee-Employer Relations Employer-Employee Relations

Company-Customer Relations

Company-Shareholder Relations

Company-Community/Public Interest

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Publics Opinion of Business Ethics

Gallup Poll finds that only 17 percent to 20 percent ofthe public thought the business ethics of executivesto be very high or high

To understand public sentiment

towards business ethics, ask threequestionsHas business ethics really deteriorated?Are the media reporting ethical problems

more frequently and vigorously?Are practices that once were socially

acceptable no longer socially acceptable?

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Business Ethics: What Does It Really Mean?

7

Ethical Problem

Ethical

Problem

Societys

Expectations

of Business

Ethics

Actual

Business

Ethics

1950s Early 2000sTime

Business Ethics:Today vs. Earlier Period

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Business Ethics: What Does It

Really Mean?Definitions

Ethics involves a discipline that examines good or bad

practices within the context of a moral duty Moral conduct is behavior that is right or wrong

Business ethics include practices and behaviors thatare good or bad

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Business Ethics: What Does It

Really Mean?Two Key Branches of Ethics

Descriptive ethics involves describing, characterizing

and studying morality What is

Normative ethics involves supplying and justifyingmoral systems

What should be

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Conventional Approach to Business

Ethics Conventional approach to business ethics involves a

comparison of a decision or practice to prevailingsocietal norms

Pitfall: ethical relativism

Decision or Practice Prevailing Norms

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Sources of Ethical Norms

11

Fellow Workers

Family

Friends

The Law

Regions of

Country

Profession

Employer

Society at Large

Fellow Workers

Religious

Beliefs

The Individual

Conscience

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Ethics and the Law Law often represents an ethical minimum

Ethics often represents a standard that exceeds the

legal minimum

12

Ethics Law

Frequent Overlap

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Making Ethical Judgments

13

Behavior or act

that has been

committed

Prevailing norms

of acceptability

Value judgments

and perceptions ofthe observer

compared with

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3 Models of Management Ethics1. Immoral ManagementA style devoid of

ethical principles and active opposition to what

is ethical.2. Moral ManagementConforms to high

standards of ethical behavior.

3. Amoral Management

Intentional - does not consider ethical factors

Unintentional - casual or careless about ethicalconsiderations in business

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3 Models of Management Ethics

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Three Types Of Management Ethics

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Moral Management Models and

Acceptable Stakeholder Thinking

6-20

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Making Moral Management

ActionableImportant Factors

Senior management

Ethics training Self-analysis

21

D l i M l J d t

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Developing Moral Judgment

6-22

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Developing Moral Judgment

6-23

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Developing Moral JudgmentExternal Sources of a Managers

Values Religious values

Philosophical values

Cultural values

Legal values Professional values

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Developing Moral JudgmentInternal Sources of a Managers

Values Respect for the authority structure

Loyalty

Conformity

Performance

Results

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Elements of Moral Judgment Moral imagination

Moral identification and ordering

Moral evaluation

Tolerance of moral disagreement and ambiguity

Integration of managerial and moral competence

A sense of moral obligation

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Elements of Moral Judgment

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Amoral Managers Moral Managers

Moral Imagination

Moral IdentificationMoral Evaluation

Tolerance of Moral Disagreement

and Ambiguity

Integration of Managerial and MoralCompetence

A Senses of Moral Obligation

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Selected Key Terms

Amoral management

Business ethics

Compliance strategy

Conventional approach

to business ethics Descriptive ethics

Ethical relativism

Ethics

Feminist Ethics

Immoral management

Integrity strategy Intentional amoral

management

Kohlbergs levels of

moral development Moral development

Moral management

Normative ethics

Unintentional amoralmanagement

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Selected Key TermsAmoral management Business ethics

Ethics

Immoral management

Levels of moral development

Moral management

Morality

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Ethics Dictionary meaning-System of moral principles, rules

and conduct.

The origin of this word is from ETHOS which meanCharacter.

Ethics is defined as the ability to distinguish betweenright and wrong and to act accordingly.

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From Where The Ethics ComesReligions

Environment

Parents and Teachers

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Swami Vivekananda Views on

Ethics The basis of IndianSubjectivity lies in thebelief of GOD.

Supreme Oneness is the

rationale of All ethics andMorality.

He suggestedFundamental Law ofethics

Do not injure others, loveeveryone as your own selfbecause the wholeUniverse is One

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