Business Ethics

An overview
 Introduction
• The word ‘ethics’ is derived from the Greek
word ‘ethikos’ meaning custom or character.
• The Concise Oxford English Dictionary defines
ethics as the treating of moral values.
 Which moral questions?
 Whose morals?
 Personal Ethics
• Personal ethics refer to the application of personal
values in everything one does. Principles are as
follows:
 Concern and respect for the autonomy of others
 Honesty and willingness to comply with the law of
the land
 Fairness and the ability not to take undue advantage
of others
 Benevolence and preventing harm to any
creature
 Business ethics
• Ethics is the conception of right and wrong behavior where as business
ethics is the application of general ethical ideas to business behavior.
• Ethical business behavior:
 Facilitates and promotes good to the society (Food adulteration)
 Improves profitability ( Govt. Business)
 Fosters business relations & employee productivity (RMG)
 Reduces criminal penalties from public authorities and regulators
(Dumping)
 Protects business against unscrupulous employees and competitors
I(corporate espionage)
 Protects employees from harmful actions by their employer (Corporate
politics)
 Allows people in business to act consistently with their personal ethical
beliefs
 Business ethics
• Ethical problems occur in business for many
reasons:
 Selfishness of few
 Competitive pressures on profit
 Clash of personal values and business goals
 Cross cultural contradictions in global business
operations
 Business ethics
• Business ethics is the art and discipline of
applying ethical principle to examine and solve
complex moral dilemmas.
• Business
• Group of people
• Moral dilemmas
 What is not Business ethics
• Ethics different from religion ( Cyber crimes & Environmental
disorders)
• Ethics is not synonymous with law ( bribes, child labor,
employee safety, work hours, wages, discrimination,
environmental protection laws) Dominant Business models
• Ethical standards are different from cultural traits ( When in
Rome, do as the Romans do) Self reference criteria, Tourism
industry of BD
• Ethics different from feelings
 Managerial ethics
• Integrity
• Impartiality: HUL SHAKTI
• Responsiveness to the public interest
• Accountability
• Honesty
• transparency
Importance & Need for Business Ethics
Why should business act ethically?
• To protect its own interest.
• To protect the interests of the business community: RMG.
Accord, Alliance.
• To keep its commitment to society to act ethically: CSR,
corporate philanthropy.
• To meet stakeholders expectations: stakeholder philosophy.
• To prevent harm to the general public: green product, organic
product.
• To protect from abuse of unethical employees and competitors.
• To protect their own reputations.
• To protect their employees.
• To create a good working environment.