Download - Business Ethics
INTRODUCTION TO INTRODUCTION TO BUSINESS ETHICSBUSINESS ETHICSSubmitted to : Prof. Ashwini yaranal Submitted by : Arun 05
EthicsEthics word meaning- character
Set of standards or code or value system, worked out from human reason & experience by which free human actions are determined as ultimately right or wrong, good or evil.
Business ethics-appl. of ethics in business
Nature of ethics in Nature of ethics in businessbusinessIn busi. 2 types of ethical problem
>overt- bribary, theft, sabotage etc
>covert- complex and not transparent, defy ethical solutions
3 Models of Management 3 Models of Management EthicsEthics
1. Moral Management—Conforms to high standards of ethical behavior.
2. Immoral Management—A style devoid of ethical principles and active opposition to what is ethical.
3. Amoral Management—◦ Intentional - does not consider ethical
factors◦ Unintentional - casual or careless about
ethical considerations in business 6
Stages of Ethical Consciousness in BusinessStages of Ethical Consciousness in Business
First Stage
Law of Jungle: business Decisions are driven by
“might is right”
Business ills are common at this stage
Second Stage
Anything for Profit: believe “anything goes as long
as one does not get caught by the law”
Bribery to government, tax evasion etc are common
Third Stage
Profit maximizing in short term: Believe that “good business is good ethics”-
to maximize profits within constraints of law
Fourth Stage
Profit maximizing in Long term: Shift in focus from business to ethics-
“sound ethics is good business” in long run. Here firms create post of ethics
officer to supervise ethical aspect of business
Fifth Stage
Stakeholder concept- Companies concentrate on social and economic mission
Focus on philanthropy
Focus is to create mutual relationships between companies and society
Sixth Stage
Corporate Citizenship: Higher level of ethical
consciousness
Belief that business can be healthy only if society
around it is healthy and no other institution
including government has resources to bring this
transformation except Business Organizations
Entrepreneurs seek to achieve social objectives
such as promoting community health, employing
handicapped people, etc
Factors Affecting Ethical Factors Affecting Ethical ChoicesChoices
The ManagerThe Manager
Level or stage of moral development
Learned Ethics
The OrganizationThe Organization
Systems
Culture
Moral DevelopmentMoral DevelopmentPreconventionalPreconventional Level = concerned Level = concerned with external rewards and with external rewards and punishmentspunishments
ConventionalConventional Level = conform to the Level = conform to the expectations of peers and society expectations of peers and society (consistent with practical approach to (consistent with practical approach to ethical decision making)ethical decision making)
Postconventional Postconventional (Principled) Level = (Principled) Level = individuals develop a personal, individuals develop a personal, internal set of standards and values. internal set of standards and values. (About 20% of adults)(About 20% of adults)
The OrganizationThe Organization
SystemsExplicit rules and policiesExplicit rules and policiesReward systemReward system
CultureCommon ValuesCommon ValuesTraditionsTraditions
Characteristics of BECharacteristics of BEDiffer with persons ethical questions do not have a
unique soln but a multitude of alternatives
Ethical decisions are not limited to themselves, but affects a wide range of other situations as well.
ED involves a trade off between cost incurred and benefits received.
Consequences are not clearEvery person is individually
responsible for the ethical or unethical decision and action that he or she takes
Ethical actions are voluntary human actions
Morality and ethicsMorality and ethics Morality is the std an individual or
community keeps about what is right and wrong or good and evil.
MoralityMoral norms deals with topics that
either seriously harm or benefit human beings
Moral stds are not dependent on or changed by the decision of authoritative bodies
Moral demands enjoys a self-driven force
Expressed through the medium of special emotions.
EthicsEthics helps one to address
questions such as what do moral principles mean in a given situation
Ethics offers certain moral stds to judge a particular human behaviour or situation
Why is ethics impo. in Why is ethics impo. in business?business?Ethics corresponds to basic human
needsValues create credibility with the
publicValues give mgmt credibility with
employeesValues help better decision makingEthics and profitLaw cannot protect society, ethics
can.
Why Ethical problems Why Ethical problems occur?occur?
Personal gain
Individual values widely differ with organizational
goals
Managers values and attitudes
Competitive pressures
Cross-Cultural contradictions
Benefits of Business Benefits of Business EthicsEthicsBetter ethical climate
Employee commitment and trust
Investor loyalty and trust
Customer satisfaction and trust
Long term profits
Criteria For Criteria For Ethical Decision MakingEthical Decision MakingMost ethical dilemmas involve Conflict between needs of the part &
whole- Individual versus the organization - Organization versus society as a whole
Managers use normative strategies to guide their decision making - norms and values
Ethical Decision Making Ethical Decision Making ApproachesApproachesUtilitarian Approach
Individualism Approach
Moral-Rights Approach
Justice Approach
Utilitarian ApproachUtilitarian Approach● Moral behavior produces the
greatest good for the greatest number
● Criticise fear a “Big Brother” approach and ask if the common good is squeezing the life out of the individual
Individualism ApproachIndividualism Approach● Acts are moral when they promote
the individual's best long-term interests, which ultimately leads to the greater good
● Individual self-direction paramount
● Individualism is believed to lead to honesty & integrity since that works best in the long run
Moral-Rights ApproachMoral-Rights ApproachMoral decisions are those that
best maintain the rights of those people affected by them.
An ethical decision is one that avoids interfering with the fundamental rights of others
Six Moral RightsSix Moral Rights
1. The right of free consent1. The right of free consent
2. The right to privacy 2. The right to privacy
3. The right of freedom of conscience
3. The right of freedom of conscience
4. The right of free speech 4. The right of free speech
5. The right to due process 5. The right to due process
6. The right to life & safety 6. The right to life & safety
Justice ApproachJustice Approach Moral Decisions must be based
on standards of equity, fairness, impartiality
Three types of Justice Approaches: Distributive Justice Procedural Justice Compensatory Justice
Distributive JusticeDistributive JusticeDifferent treatment of people
should not be based on arbitrary characteristics
In case of substantive differences, people should be treated differently in proportion to the differences among them
Procedural JusticeProcedural JusticeRules should be clearly stated
Rules should be consistently and impartially enforced
Allocation of slides Allocation of slides
Sl.no Names Slide no
01 Rattan shinde 1,2,3
02 Punit patil 4,5,6
03 Shivkumar 7,8,9
04 Arshad 10,11,12
05 Praveen 13,14
06 Arun 15,16,17,18
07 Altaf 19,20
08 Shreeshail 21,22
09 sateesh 23,24,25,26
10 Feroz 27 to end