BUSINESS ETHICS

WHAT IS ETHICS Ethics may be referred to some standardized form of conduct

or behavior of individuals, understood and accepted in a particular field of activity

The work “ETHICS” has its origin in Greek word “Ethics” means character, norms, morals and ideals prevailing in a group and society.

Ethics is a mass of moral principles or set of values about what conduct ought to be. They give an idea what is right or wrong, true of false, fair or unfair, just or unjust, proper or improper, e.g. Honesty, obedience, equality, fairness, etc and respect and then doing the right thing

BUSINESS ETHICS

Carter McNamara has defined: “Business ethics is generally coming to know what is right and wrong in the workplace and doing what is right-this is in regard to efforts of products/ services and in relationships with stakeholders.”

A group of moral principles, standards of behavior, or set of values regarding proper conduct in the workplace

Ethical questions fall under one or more of following levels:

Level 2 : Stake holders

Level 3 : Internal policy

Level 4 : Individual

Level 1: Society

Continued…

Individual level: personal level interactions, obligations and rights as human beings

Internal policy: ethics in practices of organization w.r.t. employment, rights of employees, etc.

Stake holders: suppliers, creditors, customers, etc.

Society: External agencies, social institutions, etc.

Common Morality: (Morals or Principles)

Morality is body of rules governing the ordinary ethical problems

Promise keeping Non- malevolence (prevent violent conflicts) Mutual aid (among people, societies, nations) Respect for persons (regard other people as an end in

themselves) Respect for property ( obtain consent of owners before

using their property.

How to have ethics in business ?

Ethical Audits, Ethics committees, judicial boards, Ethics training programs, etc., :- to have ethical policies in business

Groups to whom corporate ethics codes apply??

* Employees & their families

* Local communities

* Suppliers

* Share holders

* Country Govt.

* Foreign Govt.s

Global Ethical Issues

Wages and hours

Child labour

Discrimination

Legal and ethical business practices

Product safety and quality

Environment

What causes unethical behaviour

Stress

Confusion

Pressure to perform at expected levels

Competition within the industry

No knowledge

ETHICS IN THE WORKPLACE

Relationships at Work

Management/owner toward client/customer

Management/owner toward employees

Employee toward Employer, Co-workers, Customers

ETHICS IN THE WORKPLACE

Business Abuse

Any : illegal unethical irresponsible Act done

against an Employer

ETHICS IN THE WORKPLACE

Results of Business Abuse

Higher prices Business Failure Fewer Jobs Unpleasant Working

Conditions

ETHICS IN THE WORKPLACE

A.Examples of Business Abuse Stealing Merchandise Money * Shoplift *Kickback * Conflict of Interest * Unauthorized Discounts Time

ETHICS IN THE WORKPLACE

A. Examples of Business Abuse (Continued)

Vandalism (damage) Forge Records Break Confidentiality Ignore Safety Rules Misrepresent Merchandise

ETHICS IN THE WORKPLACE

A. Examples of Business Abuse (Continued)

Poor Client Service Irresponsible Behavior Addictions

* drugs

* alcohol

* tobacco

ETHICS IN THE WORKPLACE

A. Examples of Business Abuse (Continued)

Gossip

* Causes poor work environment (morale)

* Lowers Productivity

ETHICS IN THE WORKPLACE

How Do We Rationalize Business Abuse?

Everybody does it The co. won’t mind it The co. overcharges I’m not paid enough The co. doesn’t deserve my

loyalty

ETHICS IN THE WORKPLACE

C. How Employers Respond to Business Abuse

Increase Security

* loss prevention mgmt.

* surveillance

* Networks/Helplines

* threats of prosecution

ETHICS IN THE WORKPLACE

C. How Employers Respond to Business Abuse (Continued)

Increase Employee Loyalty

* fair wages & benefits

* fair/consistent treatment

* recognition for good wk

* foster family climate

ETHICS IN THE WORKPLACE

D. As Employees, What Are Our Choices?

Ignore Business Abuse Rationalize it away Speak Up Discuss to Clarify Issues Blow the Whistle!

Campus Overview

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Ahmedabad Kolkata

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Mumbai

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