1 - Business Ethics and Social Responsibility
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Transcript of 1 - Business Ethics and Social Responsibility
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BUSINESS ETHICS
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The Natureof Ethics
EthicsThe inner-guiding moral principles,
values, and beliefs that people use to
analyze or interpret a situation and thendecide what is the right or appropriate
way to behave.
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Ethical IssuesFor Business
Product safety standards
Advertising contents
Working environmentUnauthorized payments
Employees privacy
Environmental issues
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The Natureof Ethics
Ethical DilemmaPeople find themselves in when they
have to decide if they should act in a way
that might help another person eventhough doing so might go against theirown self-interest.
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ETHICS, ECONOMICS, AND LAW
6-14
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BUSINESS ETHICS: WHAT DOES IT REALLY
MEAN?
6
Ethical Problem
Ethical
Problem
Societys
Expectations
of Business
Ethics
Actual
Business
Ethics
1950s Early 2000sTime
Business Ethics:Today vs. Earlier Period
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Ethics is about field or domain of enquiry whilemorality is the object of enquiry. Ethics orbehavior accepted with in a group is recorded ascredos espoused value of group/organization.
When espoused value become practiced values,then the group is said to be ethical organization.
Ethical theories can be classified into three subjectareas:-
Meta ethics
Normative ethics
Applied ethics
Ethics andMorality
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Ethics of care is a normative ethical theory
The basic beliefs of this theory are:
1.All individuals are interdependent for achieving their
interests.
2. Those particularly vulnerable to our choices and
their outcomes deserve extra consideration to be
measured.3. It is necessary to attend to the contextual details of
the situation.
Ethics ofCare
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It maintains that sound, balanced character,
motivation and intentions is more important than
actual conduct and its consequences.
Three major types of virtue ethics theories are:-1.Individual Character Ethics
2.Work Character Ethics
3.Professional Character Ethics
VirtueEthics
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Utilitarianism
In an organizational context, utilitarianism
basically states that a decision concerning
business conduct is proper if and only if that
decision produces the greatest good for the
greatest number of individuals. It is the mostwidely understood and commonly applied ethical
theory.
Goodis usually defined as the net benefits that
accrue to those parties affected by the choice.Thus, most utilitarians hold the position that
moral choices must be evaluated by calculating
the net benefits of each available alternative
action.
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One major school of thought, Act Utilitarianism,
focuses on the action that has been taken,
analyzing it along the lines of whether theselected action produces more good than bad
consequences.
A second formulation, Rule Utilitarianism, looks
at whether the option or choice conforms to arule that attempts to maximize the overall utility.
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Universalism inEthics
One distinctive understanding of universalism in
ethics is that ethical principles are principles for
everybody. They prescribe obligations for
everybody, define rights for everybody, list
virtues for everybody. The most minimal version
of ethical universalism is a claim about the form
of ethical principles or standards. It is the claimthat ethical principles hold for all and not merely
for some, that is, for everybody without
exception.
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Concept of EthicalUniversalism
According to the schoo l of ethical universal ism. . .
Same standards of what is ethical and what is unethical resonate
with peoples of most societies regardless of:
Local traditionsand
Cultural norms
Thus, common ethical standards can be used to judge conduct of
personnel at companies operating in a variety of
Country markets and
Cultural circumstances
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Examples of UniversalEthical Principles or Norms
Honesty
Trustworthiness
Treating people with dignity and respect
Respecting rights of others
Practicing the Golden Rule
Avoiding unnecessary harm to
Workers
Users of a companysproduct or service
Respecting the environment
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The First Principle of Justice:
Each person is to have an equal right to the most
extensive basic liberty compatible with a similarliberty for others.
The Second Principle of Justice:
Social and economic inequalities are to be arranged.
Theory ofJustice
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Rights - Rights are claims that you deserve
something from someone or some group.
Rights can be legal, contractual, or moral. Rights
are also categorized as positive and negative. Thiscategorization indicates the kind of claim and
obligation that the right entails.
Rights, duties, obligations, and responsibilities can
also be categorized as universal, prima facie or
conditional -
THEORYOF RIGHTS
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LAW:
Rules created by a governing body of a society to
maintain harmony, stability and justice in thatsociety.
ETHICS:
Developing a way of determining what values ought
to be- How we ought to act- embracescharacteristics of honesty, fairness, compassion,integrity.
Lets Be Clear WithThe Terms
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Society has instituted THE LAW that tells us certain
conduct is unacceptable and will administer
punishment.
The law can not administer punishment for
unethical behavior.
Relationship BetweenLaw and Ethics
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Issues in defying the nature of business ethics
Individual character
-Religion
Personal moral development-Philosophy
Legal and regulatory concerns
-Sarbanes-Oxley act, etc Issue focused vs FRAMEWORK focused
Integrated manegerial program tied to
organizational goals and objectives
The Nature of Ethics InManagement of Business
Standards
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Significance of cultural, economic, regulatory and
ecological issues while establishing business in a
foreign country.
Consequences of misleading advertising and falseadvertising.
Issues involving privacy of employee (workplace
surveillance)and employer(whistle blowing).
Patents infringements.
Ethical IssuesFaced By Business