LEGAL AND BUSINESS ETHICS

Theory of Ethics

Egoism Self
-
is at the centre of action
at the centre action
Utilitarianism
self & others both are
of
Altruism -
others are at the centre
of the action

stakeholder Relationship Social and corporate

,
responsibility governance

Identifying
Social
stakeholders , their orientation & ethical dilemmas
how to balance
.

responsibility
-

corporate governance & how to balance out various responsibilities

Ethical Issues

Something that is common across all ethical issues is the fact that
they
stem out than
of egoism where ends is
greater means .

Theories to resolve these issues .

 What is Ethics ?

Inquiry
taken to
into the nature and
mean .
grounds of morality where the
morality is

Ethics is the
study and
philosophy of human conduct , with an emphasis
on
determining what and
is
right wrong
.

Ethical profitable ?
Businesses -
more
profitable or less

correlation between intra ethics and

High -

organization profitability .

Ethical business run on low risk better perception

,
and
strong customer
loyalty .

Not E-→
Morality is made for social consensus but not forced on
you .
Law is made for
social consensus and
highly forced you on .

Shareholder & Stakeholder

Theory
Shareholder
the people
theorywhoThe onlyitsgroup
: that
shares
owns
has a moral claim on the Corporation
is

stakeholder
theory People
: who have the potential to
get hurt or
benefit from
the Corporation also have moral claim on the Corporation .

CSR Models

Economic Model
of CSR :
Primary responsibility of business , produce services seek
,

profits and
obey the law .

Philanthropic model
of CSR : Business
may
choose to contribute to
society as
a matter
of social
philanthropy and not as social responsibility This
.
is
for
reputation maintenance and public relations

Social Web model Business embedded deep within the web

of CSR : is
of social
relationship of mutual and
rights responsibilities .

Money comes

from shareholders but

benefit is to stakeholders .

Integrative model
of Csr : Part
of all missions
of the
organization is to serve

important stakeholders and to

social
goals Money from
.

benefit
stakeholders

Agents Ethical Dilemma Agential theory )

Bounded
Rationalities
Asymmetric Bounded
Rationalities
Information
Hires

Principal uncertainty .

Agent

Performs .

Bounded Bounded
Rationalities
M-M.MN @ Rationalities

mm
Thomas Kilmann Model

High loop High Coop

low assertiveness high assertiveness
Chameleons (
Accommodating ) Honeybees (collaborating )
compromise
§o
§ Tortoise (Avoiding) Lion (
competing)
E Low Coop low Coop
how assertiveness high assertiveness

Assertiveness .

Fundamental Principles of Distributed Justice

Individuals similarities /dissimilarities

'
Distributive view : Distribution ✗

Egalitarian view :
Equal distribution irrespective of similarities /dissimilarities .

Contributive capitalistic view Distribution Individuals contribution to the

: ✗
society .

Socialistic view Distribution ✗ Individual

: needs and abilities
Libertarian It to tan to provide to someone else
view : is
wrong someone
benefits .

One must not be

forced .

Different type of Justice

Distributive Justice based

equality proportionality & fairness
-

on ,

Retributive Justice based

-
on
punishing offenders
Restorative Justice -

based on
rehabilitating offenders & recon citations with victims

compensatory Justice
providing resources to
-
victim
of injustice with the goal a

of minimizing reversing the impact of harm done by justice

or .
Ethical Theories

Normative Ethical Theories

Traditional Theories
Contemporary
nvirtue
theories
Ethics

Consequential Non consequential nteminist Ethics

theories theories NDIScourse Ethics

nsfoism netting duties Postmodern Ethics

~

-
utilitarianism ethics
frights
-
Altruism hjusl.ae
Decision Process
Making
Factors moral
affecting sensitivity .

Empathy
Moral Moral Moral

Imaginations sensitivity
.

Judgement .

Moral Muteness
Moral
Motivation
Moral
Intensity
.

moral
character
Moral character
graph
Ratan Tata
High
Dr Kalam
.

character Sudha Murty

Niravmodi Stephen Elope
Low .

Vijay Natya

how High
competence
 Theory of moral Development .

Jean
Piaget theory of moral development .

Experimented with his own kids till the

of 12 Came
.
up with
a
types of morality
ntlete venomous
morality Early stages of child Moral aspect the child
a
of
-

black & white to what his parents

is
according taught him .

~
Autonomous morality Later stages of development Gets his/her own
meaning
-

and shifts to his own sense

of morality .

Kohl
berg's stays of Moral development .

Took the Jean

Piagds theory forward .

Presented Heinz 's Di Hemato various responders .

Heinz's Dilemma

woman was near death from cancer .

Chemist has a medicine for it Costs 200$ but sold

.
it for 2000$ .

Husband of the get 10004

only
woman can .

Should husband steal the not ?

drag or

statistical methods
Kohlberg classified the responses
using .

Stage 1should
obedience
:

not steal
Heinz because he'll be in prison
Heinz should steal because the 200$
dry is worth .
Stage 2 self : interest
He should steal because he'll be
happy because
of saving his
wife
He shouldn't steal because he'll be sad because to prison
of going

stage 3 :
Interpersonal accord & conformity .

He should steal because husband has a

duty towards his wife
.

He shouldn't steal because husband has a

duty towards society .

stage ii. Law and order

should steal not
caring about law .

should steal because

of law .

stage 5- Human
.

rights .

Should steal because he has a

right to do so .

Should steal because chemist has a

right to sell at Woo $
.

Stage 6 Universal human ethics

: .

He should steal because his wife's life is on the tire

He shouldn't steal because others need the medicine
might .

Stage & Goal .

Stage Goal

Pre conventional Obedience Chow to avoid punishment

Cio
self for me )
interest ( whats-
in it

conventional winterpersonal accord ( Good boy /good

girl attitude
(daw order )
Ciro
Authority & social order maintaining &
Post conventional to social orientation
cvio Universal ethical principals (principled conscience)
Gilligan's theory for moral development:( Presented to women )

stage Goal

Preconvenlicnal Obedience Chow to avoid punishment

Nice behavior
rii in
exchange of future favours
conventional wite've upto others expectations .( Good
'

boy /good girl attitude

(daw order )
Ciro
Authority & social order maintaining &
Post conventional to social orientation
cvio Universal ethical principals (principled conscience)

Masculine 4s Feminist Approach

Masculine Feminine
view
of humans Autonomous Interdependent .

Moral
goals Fairness impartiality
& .
Avoid harm maintenance
,

maintenance of rules of relationships

Moral Problems
Conflict of rights between conflict of responsibilities
individuals .

Values Rights ,
duties fairness
, ,
Harmony empathy community
, ,

Due process , equal Protection

caring responsiveness integration
, ,

Focus Results . Processes

Driving social competition winning

, cooperation compromise
,
.

force
 Moral Compass

There situation
are 4
types of moral prisms via which a
goes through
to get a decision .

purpose principle people power

Purpose I
What is the purpose of my decision what am trying to achieve?
Long & short term

9s worth ? How does it contribute to peoples

it it
life .

Principle Is line with principles What principle does

your decision in
your own .

your
decision
employ ?

People Who're
my
stakeholders ? Who will get affected from decision ?
my
Power Do I have the power to make a decision ? Do I have the
capacity to make that

decision .
Responsibilities of Business
Organizations (Carroll's Model
by Archie B. Caroll )

The following pyramid shows the priority of different responsibilities .

Bea Desired
good by the

corporate citizen Philanthropic Society

Responsibilities
Do what is just Enpectedbythe
Hair Avoid
.
harm Ethical Responsibilities Society
.

Rewired by
Obey Law
border
Legal Responsibilities the
society.

Profitable Economic Responsibilities Rewired by

the
society .

Engineer's Decision
Making Process

Conceptualization Investigations Product

costing Analysis
of a new product .
&
specifications eldesigniry

Bidding and Implementation Installation Maintenance

and
contracting of design uses

Product
Safe enif .

Recall .
Investigation Product
Costing Analysis Redesigning
nforgeryof results will it be available to masses
nsafetynlaw compliance
ideal price
statory compliance
&
Nresult for it
nlegal
-

Am 9 enka
charging
-

Implementation of design Installation

Bidding eeconkacliy Ruses
nfavourilism & corruption nqualily .

nlicensiy .

promise Ys Actual unethical (Nobel)

usage
- -

NAdherenu.to SOP
.

Maintenance Product-

recall

following maintenance schedule nclualily relapse

•
a

corrective , immediate preventive retaking ownership

nrdiabilily .
~

determining root causes

Safeenit
repost purchase support & services .

Impact on
different stakeholders
Legal Aspects of Business

In word morality used and not ethics Morality considered the

legal the
,
is . as

basis
of laws .

Relationship b/w Business & Law

Law sets up a
legal limit for business & doesn't let business owners step out

of the
boundary .

No business valid without

is
being legal .

and not want to start their

Why do people want a
job own business
n

money (steady cashflow)

~

responsibility (liability in legal terms

~
deal with legal aspects & licenses Compliance burden ) .

Law provides Business structures There are 4

types of business structures
.

Sole
proprietorship single person responsible for managing a business unit
N -
.

~
Partnership partner responsible for self actions & the other partner actions as well
-
.

Limited Liability Partnership can limit

liability by introducing a particular clause
~ -
.

need
company somebody else gives you money but you do the business All
~
you
-
.

is an innovative idea .