BUSINESS ETHICS

BY: YOGESH DUBEY

ETHICS AND VALUES
Ethics is derived from the word “ethos” which means
character and meaning.
Ethics is nothing but the degree of faith that one
bestows upon oneself.
Our ethics tend to flow from our core values.
Values are important characteristics that influence
individual and organizational behaviors.
BUSINESS ETHICS
Rules or standards governing the conduct of a business.
Since business operates and exists within the society its
functioning must contribute to the welfare of the
society.
 Highly subjective in nature.
Conventional approach to business ethics involves a
comparison of a decision or practice to prevailing
societal norms
Stakeholders
Responsibilities to stakeholder groups:
Shareholders – Generate profits
and pay dividends
Customers – provide good quality products
at reasonable prices. Safety, honesty, decency and
truthfulness
Employees – health and safety at work, security, fair
pay
Suppliers – pay on time, pay fair rates
for the work done, provide element of security
Stakeholders
Local Community – provide employment, safe
working environment, minimise pollution and negative
externalities – provide external benefits?
Government – abide by the law, pay taxes, abide by
regulations
Environment – limit pollution, congestion,
environmental degradation, development, etc
Business Ethics
Tensions:
Profits versus higher wages
Expansion versus development
Production versus pollution
Supplier benefits versus consumer prices/lower costs
Survival of the business versus needs of stakeholders
Business Ethics
Examples:
Production of children's toys
Coffee industry
Baby milk
Music industry
Multi-national operations
Jewellery – diamonds and gold
Chemical industry
MANAGING ETHICS
Diagnose the reward system

Build ethics into organization policies and practices.

Training and education

Develop investigative structures

Study the ethics of organizations which have
reputations for being ethical.
BENEFITS OF ETHICAL
BUSINESS
Cultivates strong teamwork and productivity
Support employee growth
Promotes a strong public image for Ex TATA group
has acquired very good image.
Improves trust in relationships
Important for long existence and sustained profitability
Ethics give rise to an efficient economy
 Do College Honor Codes Make
Moral Sense on Today’s
Campus?
Information on College Students
 80% have cheated on a test at least once
 87% have cheated on some type of written work
 79% have collaborated with others on an assignment
 82% have copied from someone
 87% business majors have cheated at least once

Conclusion: grade > learning short-run > long-run

chaos > standards negligence > integrity
laziness > diligence