S N NAIR

BUSINESS ETHICS & CORPORATE GOVERNANCE

AN INTRODUCTION TO ETHICS

“ Eternal principle of truth is ethics”---Swami Vivekananda

“ What is right is right even if no one is doing it. What is wrong is wrong even if every one is doing it”----Henry D. Thoreau

AN INTRODUCTION TO ETHICS

Ethics is derived from Latin language ‘ Ethicus ’Ethics is derived from Greek word ‘Ethikos’ Ethics has originated from ‘ethos’ meaning character or manners and ‘sentiment of the community’Ethics pertains to CharacterEthics is said to be the science of conductEthics is said to be the source of moral principles and recognised rules of conductEthics deals with certain standard of human conduct Ethics systematizes, defends and recommends the concept of right or wrong behaviour

AN INTRODUCTION TO ETHICS

Ethics is a set of values about what is right or wrong, true or false, fair or unfair, proper or improper, just or unjustEthics is a fundamental , personal trait which one adopts and follows as a guiding principles or basic Dharma in one’s lifeEthics implies moral conduct and honourable behaviour on the part of an individualEthics in most cases run parallel to law and shows due consideration to others’ rights and interests in a civilized society

INTRODUCTION TO ETHICSEthics gives an idea of honesty, obedience, equality, fairness, respect and then doing the right thing

Ethics guides the professionals to perform their duties with integrity, independence, sincerity and honesty

What is right is ethical and what is wrong is unethical

Definition of ethics

Ethics is the study of morals and moral choices. It focuses on standards, rules and codes of conduct that govern the behaviour of individuals and groups.

According to Concise Oxford Dictionary, ‘ethics’ is defined as the science of morals. It is the branch of philosophy which is concerned with human character and conduct. It provides the basis for deciding that a particular action is morally good or bad

Definition of ethicsAccording to Webster Dictionary, ‘ethics’ is defined as the principles of conduct governing an individual or a group

It is the principles of behaviour that distinguish between right or wrong

According to R Wayne Monday , Ethics is the discipline dealing with what is good and bad or right and wrong or with moral duty and obligation

Definition of ethicsEthics describe what is right and what is wrong in human behaviour and what ‘ought to be’

Ethics is a description of ‘observed’ as well as ‘desirable behaviour’ and ‘conduct‘ that attempts to articulate moral values

Shea in 1988 defines ethics as the principles of conduct governing an individual or profession and ‘standards of behaviour’

Definition of ethicsAs per Brian Harvey ethics stands for a practice as well as a reflection on the practice. As a practise it can be described as the conscious appeal to norms and values, to which , on reasonable grounds we hold ourselves obliged , as, reciprocally , we hold others obliged to the same norms and values. As a reflection, ethics is the methodical and systematic elaboration of the norms and values we appeal to in our daily activities.

Ethics is about keeping ones promises, respecting the sentiments of beings and distributing benefits and burden in a fair and equitable way

What is morality?Morality is the belief or recognition that certain behaviours are either “good” or “bad”. Some morals are very easy to accept and only the fringes of society might question or reject them. These people on the fringes may be good or bad, the mere act of rejecting a socially accepted moral of the time is in no way an indicator of the person’s goodness.

Differentiate ethics and moralityEthics MoralityRight code of behaviour for a group or profession

Prescribes right conduct for everyone

Subject to change and relative in nature

Absolute and not changeable

Applied in the social system group or profession

Individual disposition

Arises out of specific recommendations of conduct in a particular profession

Nomo logical (rules of reasoning) in origin

It is developed and goes on evolving

Handed over from generation to generation primordial (having existed from the beginning) in origin

It is recommended to be followed in a profession

It is prescriptive (telling people what they should do)

Characteristics of moral standards Moral standards deals with matters of serious consequences of human well beingMoral standards cannot simply be established or changed by the law or authorityMoral standards over-ride self interestMoral standards are based on impartial considerationMoral standards are associated with special moral vocabulary

Ten Moral rulesBernard provides a list of ten moral rules in his book “Morality”1. Don’t Kill2. Don’t disable3. Don’t deprive of pleasure4. Keep your promise5. Obey the law6. Don’t cause pain7. Don’t deprive of freedom8. Don’t deceive9. Don’t cheat10. Do your duty

Meaning of Ethics“ There is only one ethics, one set of rules of morality, one code that of individual behaviour in which the same rules apply to every one alike” --------------Peter F, DruckerEthics in Latin language is called ‘Ethicus’ and in Greek , it is called ‘Ethikos’. In fact this word is originated from ‘ethos’, meaning character or manners.Ethics is said to be the source of morals, moral principles and recognised rules of conduct. The character of a man is expressed in terms of his conduct. Ethics is considered as a source of character of a person expressed as right or wrong conduct or action

Objectives of Ethicsi. The very basic objective is to define the greatest

good of man and establish a standard for the sameii. Set/establish moral standard and norms of behaviouriii. An overall study of human behaviour: what is moral

or immoral should be assessediv. Apply judgement upon human behaviour based on

these standards and normsv. Suggest moral behaviour , Prescribes

recommendation about Do’s and Don’tsvi. Ones opinion or attribute about human conduct is

expressed in general

Objectives of EthicsEthics prescribes moral standard behaviour and also provides solutions about how to behave in specific situation

Ethics studies human conduct and evaluates these as moral or immoral ,right or wrong and good or bad.

Expresses an opinion or attitude about human conduct in general

Ethics & EthosEthics has originated from ‘ethos’ meaning character or manners and ‘sentiment of the community. Ethos refers to the trustworthiness or credibility. Ethos is often conveyed through tone and style of the message and through the way one refers to his/her differing views .It is the fundamental character or spirit of a culture; the underlying sentiment that informs the beliefs, customs, or practices of a group or society. Ethics systematizes, defends and recommends the concept of right or wrong behaviour. It is a fundamental, personal trait which one adopts and follows as a guiding principles or basic Dharma in one’s life. It implies moral conduct and honourable behaviour on the part of an individual. In most cases ethics run parallel to law and shows due consideration to others’ rights and interests in a civilized society

Ethical reasoningIt is otherwise called moral reasoningEthical reasoning refers to the reasoning process by which human behaviour is judged to be in accordance with or in violation of moral standards.In ethical reasoning moral standard of any country or society can be judged with reference to the set of universal moral standards.Ethical reasoning or moral reasoning involves two essential elements Understanding of reasonable moral standards Evidence of these moral standards in behaviour,

institution and policy

Ethical reasoning

Moral Standards

Factual information concerning the policy, institution or behaviour under consideration

Moral Judgement on the rightness or wrongness of the policy, institution or behaviour

Ethical reasoning ----Example

A country is unjust if it does not treat women equal to men

In India male literacy rate = 82.1% and female literacy rate = 65.5%

India is unjust

Branches of ethicsNormative EthicsIt studies the determination of the correct moral standard or norm.Meta-EthicsIt seeks to understand the nature of ethical properties and judgementApplied EthicsIt tells us how a moral outcome can be achieved. It is concerned with the practical application of doctrines of moralityMoral EthicsIt raises questions like (i) How people develop their morality

Branches of ethicsMoral EthicsIt raises questions like How people develop their morality? Why certain aspects of morality differ across cultures? Why certain aspects of morality are generally universally

applicable?Descriptive EthicsIt deals with the moral values that people in a society try to abide by.Modern ethicsIt concentrates on the deontological (duty-based) and consequential aspects of moral development and human behaviour

Evaluation of moral reasoningMoral reasoning must be logicalFactual evidence must be accurate ,relevant and completeMoral standard involved n moral reasoning must be consistent

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