Ethics:-

Ethics are the principal of conduct, governing an individual or groups.

OR

Ethics is the discipline that examine the moral standard of society.

` Ethics is the study of morality. Ethic work originated from Greek word

“Ethos” which means customer and characters.

The word ethic is wider term then morality.

Ethic is the formal study of those standard or conduct. Ethic stress on social

system in which those standards are applied.

Moral:-

Moral is the study about good or bad thing. Morality is derived from Latin

word “Mosalis” which mean customer and character. Morality defines personal or

individual character.

Types or Portion of Ethics:-

Descriptive Ethics:-

It simply tells us about the behavior of individual

which he or she behaves in certain situation. It

does not describe that how he or she has to behave

in certain situation.

Normative Ethics:-

It simply tells us that how people have to behave

and what behavior should be performed by people.

Reason of studying Ethics:-

o Removing conflict.

o Equality.

o Order in society.

Characteristic of moral standards:-

1. Moral standards deals with matters that can seriously

injure or harm and give benefit a society or human

beings. Example robbery, assault etc.

2. Moral standard are not established or change by

authoritative bodies nor does their validity rest on voting

procedure. It rest on the adequacy of reason that are taken

to validate or justify an act.

3. Moral standards should be preferred over self interest.

4. Moral standards are based on impartial consideration.

5. Moral standard are associated with special emotion e.g.

happiness, embarrass etc.

Business ethics:-

Business ethics is the behavior that a business adheres to in its daily

dealing with the world.

Business ethics is the specialized study of moral right and wrong.

Moral principal for business:-

a. Business should avoid causing unwarranted harm.

b. Business should be fair in all activities.

c. Respect for human rights.

d. Business should not infringe on choices of people.

e. Business should not deceptive in their discipline.

f. Business should consider all stack holder.

Ethical code:-

Set of principals, governing morality and acceptable behavior. E.g.

behavior toward customer, society and employ etc.

Every organization has its own business code it diverse from business

to business.

Benefit of business ethic in business:-

a. Smooth running.

b. Goodwill.

c. Profit.

d. Reputation.

e. Productivity.

f. Reduce risk.

There are two types of customer.

a. Internal customer :-

Internal customer is employ etc.

b. External customer:-

External customers are consumer etc.

System theory:-

input→ processing →output.

Type of process:-

There are two type of process.

i. Analytical process:-

Making of those good which are already made.

Like mineral etc.

ii. Synthetical process:-

Making of those good which are manufactured

from raw material. From one shape to another. like

computer, automobile etc.

Application of moral standards or responsibility on individual:-

1. Family:-

Nurturing and protecting family life.

2. Economic:-

Producing and distributing the materials on which human

life depend.

3. Legal:-

Restraining and regulizing the use of force.

4. Political:-

Organizing the mean for making collection.

5. Education:-

Creating and preserving cultural decision, values, art,

knowledge and technology.

Economic institution:-

Economic institution is that institution which uses some

resources and produce good in a proper way for the betterment of society. E.g.

bank, business etc.

Corporation:-

A corporation is a legal entity, which work as an artificial person

which can sue or be sued, having limited liability, common seal and can enter into

a contract.

OR

Company is artificial person, created by law, having limited liability,

registered name and monogram and common seal. People who make or start a

company is known as promoter.

Company consist of

Stock holder:-

Who contribute capital and own the corporation but

liability depend on amount of contribution.

Officer and director:-

Who administrate the asset of corporation.

Employees:-

Who provide labor and do basic work related to

production and service.

John searls:-

A person from whom question has been ask that who will be sued

company or the director in case of a mistake.

First of all he describes the company that in company there are certain

number of people in certain circumstances, in a certain relationship.

Then he told that corporation act when there is number of people who

perform their duties in certain circumstance and relationship.

Then he conclude that director take action and operate the corporation

on behalf of owner then in such case director will be sued in case of any kind of

mistake. Company will not be sued.

Multinational company and business ethics:-

Firms that maintain manufacturing, marketing, services or

administrative operations in many different host countries (in which product have

been launch) are called MNE’S. They have centralized system and having same

management system.

Parent country.

Unethical practices of multinational corporation:-

i. They use cheap labor and resources.

ii. They always go to less stringent loss.

iii. They create monopolies.

iv. It creates economic inequalities.

v. They manipulate in that country with technology.

vi. They also manipulate our tax policies.

Multinational and international company:-

Multinational company adopts the culture of host country while

international company doesn’t adopt the culture of that particular host country.

While franchise sold only their name.

Strategy and policy:-

Strategies are long term course of action, which is difficult to change and it

is at high level. Simply it is what to do.

Policy is the rule and regulation or procedure for achieving of goals. It

change from country to country and it is made at lower level. Simply it is how to

do.

Curtle and dumpling:-

Curtle is price fixing and dumpling is intentionally lowing the

price of product.

Beurocratic system:-

The systems which have the following five characteristic are suppose

to be beurocratic system.

1. Selection based on technical qualification.

2. A proper herarical system.

3. Rules and regulation.

4. No favoritism.

5. Impartial consideration.

Ethnocentrism:-

Looking superior to his culture then other.

Exocentrism:-

Looking inferior to his culture then other.

Moral development:-

Moral development means that our moral act can also nurtured as our

body parts. They also develop.

This idea was represented by “lowrence Kohlberg” who based on the

“piaged’s theory”. After doing 20 year of research he extend the idea of piaged.

Piaged give only two stage of moral development while Kohlberg extend it

up to six stages.

Kohlberg told that moral development is a continuous process that occur

through out our life span.

He starts his work by gathering some child and giving him a simple task to

perform. Or ask a simple question.

“The Heinz Dilema”.

Heinz was a person whose wife was suffering from serious cancer disease.

For the treatment of his wife he needs a type of vaccine which was very expensive.

He went to a drug shop and told that please give me that vaccine by taking half of

the money and the rest of money I will give you after some days. He refuses to

give the vaccine then he broke the glasses and steal the vaccine for his wife.

Now Kohlberg told this story to his children and ask that whether he did a

wrong or right act.

Moral development consists of three level in which each level consist of two

stages. No matter a child can be n first or sixth stage or an old person can be in first

or sixth stage. Moral development does matter about the age.

Level 1st. Pre conventional level:-

o 1st stage. Punishment and obedient:-

Mostly children or young children are in this

stage where the rules and regulation are fix

and almost some elder can also be in stage.

They avoid doing something due to fear of

punishment and in case of obedientness they

got a pleasant smile.

o 2nd stage. Instrument and relativity orientation:-

Those people are in this stage who considers

something right in his own point of view

they don’t have to ability to think about the

view or opinion of other.

They only do those acts which fulfill their

self interest or need.

Those who are self centered.

Level 2nd. Conventional level:-

o 1st stage. Interpersonal concordance orientation:

We often call this stage to “good boy-good

girl” stage.

At this stage we always think about to have

a good name and we want to be appreciated.

At this stage our focusing point is to fulfill

the expectation of people surrounding us by

loyalty, trustworthy and honesty etc.

Doing right is motivated by the need to be

seen as good performer in one’s eyes.

o 2nd stage. Law and order orientation:-

At this stage we always goes to obey the law

its not important that whatever is going on

we just focus on maintaining law and order

in a society. We will consider the society.

In right act are those which is not against

law and wrong acts are those which are

against law.

Level 3rd. Post conventional level:- also called autonomous or

principled stage.

o 1st stage. Social contract orientation:-

At this stage those act are said to be moral

acts which are agreed by over all society.

Consenes (opinion of society), agreement

and due process.

At this stage we look at the bigger picture

like general acceptable by the society.

Due to different opinion over some task of

different people in a society cause conflict.

o 2nd stage. Universal ethical principle:-

At this stage those act are consider moral act

which are universally accepted. Like human

right, respect for dignity and respect for

human life.

But at this stage even the high civilized

country are also not found.

Manager skills:-

There are three basic skills that must exist in every manager.

1. Conceptual skill.

2. Technical skill.

3. Interpersonal skill.

Moral reasoning:-

Moral reasoning is a reasoning process in which we judge the

behavior, institution or policies that whether they are in accordance with or in

violation of moral standards.

Component of moral standard:-

Understanding of what moral standard is required, prohibit and

value or condemn.

Evidence or information that shows that a particular behavior,

institution or policies has to be acquire, prohibit, value or

condemn.

Different ethical system:-

There are two kind of ethical system

Teleonogy or Consequantialis:-

This theory focus on the consequences (result) caused by

an action.

It is an end that will determine the morality of an action

and not the action itself.

a. Egoism:-

This theory was espoused by economist “Milton

Friedman” who suggested that business moral obligation

are maximum of profit and obey the law.

It defines right and wrong in term of consequences to

one’s self.

It belief in consequences but consequences to one’s self

interest.

b. Utilitarianism:-

It says that morality of an action depends upon the

results/consequences which produce greatest happiness

for greatest number of people not for one’s self.

It focuses on the majority.

It encomposes the cost-benefit analysis.

Criticism on utilitarianism:-

Sometimes it is difficult to measure the

cost and benefit result.

We look at the majority of people while

harming the minority.

Sometime the action can’t predict the

consequences or result of your action.

Difficult to find out ratio of people.

Deoniology or Non-consequantialis:-

This theory focus on the right (hoqoq) of all individual

and the intention of the person performing an action.

a. Universalism:-

This theory told us that whatever is correct for us should

be correct for all the people in the world.

This theory was exposed by “imonanual Kant” and the

theory was “categorical imperative”. He gives two main

points for universalism.

i. Whatever I am choosing for myself I will

allow the other to choose the same.

ii. We should not use a man as a mean

toward an end.

b. Rights of individual:-

It is right of an employ that we have to pay right salary to

spend a decent life and also provide him good and

healthy environment.

Individual had moral rights which are not negotiable.

Right is an entitlement to do something.

There are two type of right.

Natural and artificial right.

The right which has been given by the nature is known as

natural right such as eating, living drinking etc.

Those right which has been created by the people and

constitution. Like free movement education etc.

c. Eternal law:-

It is divine law. It means that whatever we are doing they

are from God side and hence obeying of that law are

morality.

Like sacred or religious books.

Mach personality:- selfish people.

Extroward are active people and untoward are inactive.

Market:-

Market is a place where buyer and seller met or buying and selling take

place.

Types of market:-

Labor market:-

A market where labor are available.

Industry market:-

A market where raw material and supplies are available.

Retailing market or finish product market:-

A market where ready to use product are available. Or where

finish product are available.

Market system:-

There are two type of market system:-

1. Free market system:-

A market where there is no intervention of government in market

OR

A system without economic intervention and regulation by

government except to regulate against fraud and force.

This system is somehow related to “laizzer-fair (there should be less

intervention of government in market” which was introduced by Adam-

smith.

2. Command/planned/directed market system:-

A system where there is complete intervention of government from

manufacturing till to consumption such system is known as command

market system

In such system the main government or government worker council make

and discuss plan.

Such system is more common in china 1949-1970.and during the year

of Taliban such system was exist.

Integrated business:-

Where management decides the affair of the business it is conveyed in the

form of budged.

Distribution justice:-

a. According to an equal share.

b. According to individual effort.

c. According to ones need.

d. According to social contribution.

e. According to merit.

Responsible business conduct:-

Consumer satisfaction.

Employee motivation.

Quality of goods and services.

Welfare of society and human being.

Most important responsible business conduct is moral code of a culture.

John lock:-

John lock was a philosopher who gives the following view about free

market.

o Allow healthy competition.

o Huge innovation in the market.

o Having no monopoly of an individual.

o Quality competition each and every class are served.

o Government is not important for a nation.

o Resistance of government is harmful.

John lock give two natural rights.

Right to freedom:-

Every one is naturally born free so government has not to

limit his life or worker.

Right to property:-

We will be free for the ownership of anything.

Right and duty go hand in hand.

Basic essential thing for a State:-

Population.

Land.

Government.

Sovereignty.