General

management

SIES College of
Management Studies
CORPORATE ETHICS
 Evolution of ethics

 Obligation
 Social responsiveness
 Social responsibility
 theories of ethics

 Utilitarian theory(evaluation of plans &

action)

 Theory of justice
Arguments in favor………
 Public expectations
 Long run profits
 Ethical obligations
 Public image
 Better environment
 Stockholders interest
 Prevention over cure
Arguments against………
 Profit maximization
 Dilution of purpose
 Costs
 Lack of skills
 Lack of accountability
 Stages of moral development
 Preconvention level
 Conventional level
 Principled level
 Individual characteristics
 Values (ego strength)
 Personality (locus of control)
 Structural variables
 Performance appraisal system
 Pay structure
 Employee motivation
 Issue intensity
 Consensus of wrong
 Greatness of harm
 Proximity to victim
 Immediacy of consequences
 Probability of harm
Encouraging ethical behavior….
 Employee selection
 Code of conduct
 Job goals
 Ethics training
 Protection of whistle blowers
Encouraging ethical behavior….
 Employee selection
 Code of conduct
 Job goals
 Ethics training
 Protection of whistle blowers
 7 question approach….
 Has the problem been defined accurately
 The other side of the fence
 How did the situation happen at first place
 Intention in making the decision
 Whom could the decision injure
 Discussion with the affected party
 What is the symbolic potential of the action if
understood or misunderstood..
Contributing one day salary for a cause…..