UNIT 4 ETHICS AND BUSINESS

BUSINESS

Ethics

 The practical science of morality of human acts

 The science which lays down the principles of right living
 The science of human acts with reference to right and wrong

GENERAL ETHICS

DESCRIPTIVE ETHICS

NORMATIVE ETHICS

META ETHICS

GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL: Corporate Communications
Business Ethics

 applied ethics that examine moral rules, theories, and principles in a business context
 a study of what is right and wrong
 perception of people about morality, moral norms and ethical principal

MYTHS ABOUT BUSINESS ETHICS

Myth #1 Ethics is a personal affair

Myth #2 Ethics and business does not meet

Myth #3 Ethics and business is relative

Myth #4 Good business means good ethics

Myth #5 Business is a war

ROLE OF ETHICS IN THE MANAGEMENT

 Ethical management in the workplace

 Ethical management regarding intellectual property rights
 Ethical management in sales, advertising, and marketing
 Ethical management in production
 Ethical management in finance, accounting and auditing

MORALITY OF PROFIT-MOTIVE

The Good side of Profit-Motive

 PROFIT MOTIVES motivates people to do something meaningful

 PROFIT MOTIVES promotes ingenuity and cleverness in running business
 PROFIT MOTIVES makes people productive
 PROFIT MOTIVES generates potential capital for business

The Bad side of Profit-Motive

 PROFIT MOTIVES promotes rivalry among competitors

 PROFIT MOTIVES may encourage people to focus on money making only
 PROFIT MOTIVES may promote self-interest rather than common good

GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL: Corporate Communications
THE “MORAL SENSE” IN US

1. The Synderesis of Man according to St. Thomas Aquinas

a. Man is able to distinguish or to know what is good and what is bad.
b. Man is always obligated to good and avoids evil in any given circumstances.
c. Man knows he is accountable for his action.

2. Freud’s Theory of the Id, Ego and Superego

a. Man must learn to control his inborn desires
b. Man must achieve fulfillment in ways that are harmonious with others

3. Kohlberg’s Theory of Moral Development

LEVEL STAGE SOCIAL ORIENTATION

1 Obedience and Punishment

Pre-conventional
2 Individualism, Instrumentation, and Exchange

3 Good Boy-Good Girl Image

Conventional
4 Law and Order

5 Social Contract/Rights

Post-conventional 6 Principled Conscience

7 Transcendental Morality

Pre-conventional

GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL: Corporate Communications
Conventional

Post-Conventional

GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL: Corporate Communications