Post on 07-Nov-2014
description
ETHICS & CSR
Ethics: What Does It Really Mean???
Derived from Greek word ‘Ethicos’ meaning Character or Manners
Science of character of a person expressed as right or wrong conduct or action.
Set of moral principles prescribing code, explains what is good and right, or bad and wrong.
Meaning of Ethics
Character of a man
Conductof a person
Series ofActions
Good or Bad,
Right orwrong,
Moral orImmoral
Moral Standards
Decided by Leads toTakentogether
Considered As
Known asMoral
Judgement
Requires
By which we can Judge again
Ethics can be termed as the science of character of a person
expressed as right or wrong conduct or action
Objective of Ethics
Studies human behavior and makes evaluative assessment about them as moral or immoral
Establishes moral standards and norms of behavior
Makes judgment upon human behavior based on these standards and norms
Prescribes moral behavior and makes recommendations about how to or how not to behave
Expresses an opinion or attitude about human conduct in general
Business Ethics: What Does It Really Mean???
comprises principles and standards that guide behavior in the world of business
According to John Donaldson “Business Ethics can be described as the systematic study of moral (ethical) matters pertaining to business, industry or related activities, institutions, or practices and beliefs. It is the systematic handling of values in business and industry.”
Unitarian View: Business & morality cannot be separated and it must play by the rules of ethics of the community.
Views on relationship between Business & Ethics
Moral Structure
Business
Moral Ethics
Separatist view of Ethics
Proposed by Adam Smith and Milton Friedman: Business is a distinct entity and does not include ethics and morality
Business Ethics
Integration view of ethics
Proposed by Talcott Parsons
Law
Society
Government
Market Systems
BusinessMorality
& Ethics
BusinessEthics
Business Ethics
When business people speak about “business ethics” they usually mean one of three things: 1. Avoid breaking the criminal law in one’s work related activity
2. Avoid action that may result in civil law suits against the company
3. Avoid actions that are bad for the company image
Businesses are especially concerned with these three things since they involve loss of money and company reputation.
Laws and moral standards overlap to a certain extent
Law represents a minimum set of standards for producing a desired human behaviour
Ethics often represents a standard that exceeds the legal minimum
Ethics Law
Frequent Overlap
Relationship between law and moral standards
Common Unethical Acts...
lying and withholding needed information
abusive or intimidating behavior
misreporting time worked
discrimination and sexual harassment
stealing
breaking environmental and safety laws
falsifying records
drug or alcohol abuse
giving or accepting bribes
Why Misconduct Is Not Reported...
belief that nothing will be done
fear of retaliation
fear of being viewed as a troublemaker
Why ethical behavior is important???
Business is a subsystem of society
Empowers all stakeholders concerned
Reduction in cost of friction with social environment
Important for organizations leaders because they influence the ethical climate for the rest.
Why Ethical problems occur?
Personal gain
Individual values widely differ with organizational goals
Managers values and attitudes
Competitive pressures
Cross-Cultural contradictions
Sources of Ethical Norms
Fellow Workers
Family
Friends
The Law
Regions of Country
Profession
Employer
Society at LargeReligious Beliefs
The Individual
Conscience
Culture
Encouraging Ethical Conduct Ethics Training
Key features of effective ethics training programs Top management support. Open discussion. A clear focus on ethical issues. Integration of ethics into the organization. A mechanism for anonymously reporting ethical violations. Reward ethical conduct.
Encouraging Ethical Conduct (cont’d
Whistle-Blowing The reporting of perceived unethical matters. Reducing the fear of retaliation against whistleblowers
Anonymous hotlines and web sites Personal, confidential guidance
Ethical Advocate An ethics specialist who plays a role of critical questioner
in top-management’s decision-making. Serves as the Board of directors’ social conscience. Helps prevent groupthink and blind conformity
Encouraging Ethical Conduct (cont’d)
Code of Ethics Published statement of moral expectations for employee
conduct Requirements for an effective ethics code
Must describe specific practices as unethical (e.g., kickbacks, payoffs, gifts, falsification of records, and misleading product claims).
Must be firmly supported and fairly enforced by top management.
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