role of ethics in buissness

8/8/2019 Role of Ethics in Buissness

1/22

1

1

Role of Ethics in BusinessRole of Ethics in Business

ByBy

Kiran ShetKiran Shet


2/22

2

IntroductionIntroduction

Business EthicsBusiness Ethics

Publics interest in business ethics increasedPublics interest in business ethics increased

during the last four decadesduring the last four decades Publics interest in business ethics spurred byPublics interest in business ethics spurred by

the mediathe media


3/22


4/22

4

Publics Opinion of Business EthicsPublics Opinion of Business Ethics

Gallup Poll finds that only 17 percent to 20Gallup Poll finds that only 17 percent to 20percent of the public thought the businesspercent of the public thought the businessethics of executives to beethics of executives to be very highvery high ororhighhigh

To understand public sentiment towardsTo understand public sentiment towardsbusiness ethics, ask three questionsbusiness ethics, ask three questions

Has business ethics really deteriorated?Has business ethics really deteriorated?

Are the media reporting ethical problems moreAre the media reporting ethical problems morefrequently and vigorously?frequently and vigorously?

Are practices that once were socially acceptableAre practices that once were socially acceptableno longer socially acceptable?no longer socially acceptable?


5/22

5

Business Ethics: What Does It ReallyBusiness Ethics: What Does It Really

Mean?Mean?

Ethical Problem

Ethical

Problem

Societys

Expectations

of Business

Ethics

Actual

BusinessEthics

1950s Early 2000sTime

Business Ethics: Today vs. Earlier Period


6/22


7/22

7

Business Ethics: What Does ItBusiness Ethics: What Does It

Really Mean?Really Mean?Two Key Branches of EthicsTwo Key Branches of Ethics

Descriptive ethicsDescriptive ethics involves describing,involves describing,

characterizing and studying moralitycharacterizing and studying morality What isWhat is

Normative ethicsNormative ethics involves supplying andinvolves supplying and

justifying moral systemsjustifying moral systems What should beWhat should be


8/22

8

Conventional Approach toConventional Approach to

Business EthicsBusiness Ethics Conventional approach to business ethicsConventional approach to business ethics

involves a comparison of a decision or practiceinvolves a comparison of a decision or practice

to prevailing societal normsto prevailing societal norms

Decision or PracticeDecision or Practice Prevailing NormsPrevailing Norms


9/22

9

Sources of Ethical NormsSources of Ethical Norms

Fellow Workers

Family

Friends

The Law

Regions of

Country

Profession

Employer

Society at Large

Fellow Workers

Religious

Beliefs

The Individual

Conscience


10/22

10

Making Ethical JudgmentsMaking Ethical Judgments

Behavior or act

that has been

committed

Prevailing norms

of acceptability

Value judgments

and perceptions ofthe observer

compared with


11/22

Ethics, Economics, and LawEthics, Economics, and Law

6-14


12/22

12

3 Models of Management Ethics3 Models of Management Ethics

Three Types Of Management Ethics


13/22

13

3 Models of Management Ethics3 Models of Management Ethics

1.1. Immoral ManagementImmoral ManagementA style devoid ofA style devoid ofethical principles and active opposition toethical principles and active opposition towhat is ethical.what is ethical.

2.2. Moral ManagementMoral ManagementConforms to highConforms to highstandards of ethical behavior.standards of ethical behavior.

3.3. Amoral ManagementAmoral Management

IntentionalIntentional -- does not consider ethical factorsdoes not consider ethical factors UnintentionalUnintentional -- casual or careless about ethicalcasual or careless about ethical

considerations in businessconsiderations in business


14/22

Three Approaches to ManagementThree Approaches to Management

EthicsEthics

6-18


15/22

15

Making Moral ManagementMaking Moral Management

ActionableActionableImportant FactorsImportant Factors

Senior managementSenior management

Ethics trainingEthics training

SelfSelf--analysisanalysis


16/22


17/22

Developing Moral JudgmentDeveloping Moral Judgment

6-23


18/22

18


External Sources of a ManagersExternal Sources of a Managers

ValuesValues

Religious valuesReligious values

Philosophical valuesPhilosophical values

Cultural valuesCultural values

Legal valuesLegal values

Professional valuesProfessional values


19/22

19


Internal Sources of a Managers ValuesInternal Sources of a Managers Values

Respect for the authority structureRespect for the authority structure

LoyaltyLoyalty ConformityConformity

PerformancePerformance

ResultsResults


20/22

20

Elements of Moral JudgmentElements of Moral Judgment

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


21/22


22/22

role of ethics in buissness

Documents