SK.SAID MOULALI MBA DEPT.

09HM1E0035

INTRODUCTION

There is a big difference between what you have a right to do and

what is right to do. - Justice Potter Stewart Never let your sense of morals
get in the way of doing what’s right. - Issac Asimov . Man is a social
animal. Though rules of nature control humans as they control other living
beings, man himself has derived certain principles to govern his own
individual and group behavior. These rules, in the form of behavioral
standards may differ across cultures and times, but their basic objectives are
always mutual existence and peace within the particular commu- nity or the
social group.

By ensuring security and protection of the group these standards helps

in the survival of the particular community or a social group and thus its
members. These standards of behavior are called “ethics.”

Meaning of Ethics

A few years ago, sociologist Raymond Baumhart asked business

people, “What does ethics mean to you?” Among their replies
were the following: “Ethics has to do with what my feelings tell me is
right or wrong.”

A.M.REDDY MEMORIAL COLLEGE OF ENGINEERING & TECHNOLOGY

SK.SAID MOULALI MBA DEPT. 09HM1E0035

”Ethics has to do with my religious beliefs.”

”Being ethical is doing what the law requires.”

”Ethics consists of the standards of behavior our society accepts.”

Definitions of Ethics

• Ethics is a set of moral principles or values which is concerned with the

righteousness or wrongness of human behavior and which guides your conduct
in relation to others (for individuals and organizations).

 Business Ethics is a specialized study of moral right and wrong. It

concentrates on moral standards as they apply particularly to business
policies, institutions, and behavior.

Ethical Issues Relate to all Functional Areas

• Accounting
• Finance
• Management

• Marketing

A.M.REDDY MEMORIAL COLLEGE OF ENGINEERING & TECHNOLOGY

SK.SAID MOULALI MBA DEPT. 09HM1E0035

Nature

Naturalist business ethics describes the natural forces, processes, and

scientific laws that influence human conceptions of morality and ethics, and
their operationalization in the business firm. The naturalist approach goes
beyond descriptive explanations of nature-influenced business behavior to
hypothesize normative implications of work-related behaviors of business
managers, employees, and corporate stakeholders. To some extent, a nature-
based concept of ethical-unethical workplace behavior competes with
alternative explanations given by social, behavioral, and organizational
scientists, and by philosophers.

The former emphasize social, psychological, cultural, and

organizational forces as the main determinants of normative behavior, with
explanations couched in empirical terms, while philosophers work to
identify normative principles, rules, and concepts distilled from the long
traditions of philosophical thought, with explanations defended through
abstract logical reasoning. However, neither of these two scholarly
approaches is immune from the influence of the other's preferred methods.
The same cannot be said regarding naturalist business ethics whose
emphasis on nature as a prime explanatory variable is often at odds with
sociocultural theory and with philosophy's abstract logic; and these
differences will be revisited at a later point in the discussion

A.M.REDDY MEMORIAL COLLEGE OF ENGINEERING & TECHNOLOGY

SK.SAID MOULALI MBA DEPT. 09HM1E0035

Why do we need to Study Business Ethics Now that we have

understood the meaning of the terms “Ethics” and “Business Ethics”, its
time we should understand the importance of this concept.

Importance of Business Ethics

It is now recognized that it is good business to be ethical. An

ethical image for a company can build goodwill and loyalty
among customers and clients.

Ethical motivation:It protects or improves reputation of the

organization by creating an efficient and productive work environment. At
a time of mass corporate downsizing, one of the most effective ways to
appeal to the fragile loyalty of insecure employees is to promote an ethical
culture, which gives

employees a greater sense of control and appreciation.

• Balance the needs and wishes of stakeholders

• Global challenges:

• Ethical pay-off:

• Employee Retention

• Prevention and Reduction of Criminal Penalties

A.M.REDDY MEMORIAL COLLEGE OF ENGINEERING & TECHNOLOGY

SK.SAID MOULALI MBA DEPT. 09HM1E0035

E L E M E N T S

Subjective

Objectives of Business Ethics

• Developing understanding about what is right and what is wrong

• Ensuring Ethical Behaviour

• Ensuring practical utility of business ethics

• Stakeholder approach of business organizations

• Solutions for business situations that calls for ethical Judgements

A.M.REDDY MEMORIAL COLLEGE OF ENGINEERING & TECHNOLOGY

 SK.SAID MOULALI MBA DEPT. 09HM1E0035

Go
als

Be A Leader

National business ethics organizations and professional associations will identify the
Business Ethics Alliance as the leading business ethics network resource.

Be A Voice

Local, regional, national and international media will rely on the Business Ethics
Alliance for subject matter expertise. 

• The process of ethical reasoning must be emphasized.

• Reasoning is distinct from answers.

• Begin with an accurate and fair account of the facts from all “sides”.

• Be objective and open-minded.

Conclusion:

• Business Ethics is a specialized study of moral right and wrong. It

concentrates on moral standards as they apply particularly to business

policies, institutions, and behavior. Emphasis on ethical behavior in

organizations has increased over recent years.

A.M.REDDY MEMORIAL COLLEGE OF ENGINEERING & TECHNOLOGY