Corporate Governance

and Ethics
Lecture 3
Ethical Values
Session Objectives

By the end of this class, you will be able to

understand:

▪ Types of Ethical Actions

▪ Destructive Actions

▪ Constructive Actions

▪ Characteristics of Ethical Actions

 Introduction

All of us at one point must have thought about doing ‘the right thing’
because it was the right thing to do.
Ethical values

Our ethical values provide us with a moral compass that directs our lives and decisions - 'doing what is right'
because it is right.
There are two major categories of ethical actions

1 Community service 2 Social issues support

I. Emotional support

II. Informational support

III. Instrumental support

IV. Personal feedback

V. Sharing view points

Types of Ethical Actions

Ethical actions can be of two types. These types are:

Destructive actions Constructive actions

Destructive Actions

A destructive action is one that may harm both the individual and others affected by it. People have a difficult
time determining which actions are harmful. It is possible for some actions to cause damage in one situation
and to be useful in another.
Can you think of a religion which
specifically has points related to
destructive ethics?
Constructive Actions

A constructive action is always carried out by someone who considers it their responsibility or duty to do so.
They can either be performed daily or on a specific day. As a result of these actions, a purposeful and self-
determined result is always achieved.
There are three types of constructive actions. These types are:
Obligatory actions
They can be carried out by
anyone in society. There is no
particular group of people
affected by the actions. These
actions would affect every man,
society, and the universe.
Prohibited actions Optional action
People cannot benefit from
People perform these actions to
prohibited actions. Non-
secure their personal benefits and
performance of prohibited actions
to benefit the human race.
is also mandatory.
What do you think ethical actions are
responsible for in terms of
constructive actions?
Characteristics of Ethical Actions

Now, ethical actions have different characteristics. Some of them are-

The concept of ethics does not only refer to activities to serve others, but also to the inner temperament of a
person.

Helping others is part of ethical behavior.

Rather than being instrumentally valuable, ethical actions are intrinsically valuable.

Performing ethical actions leads to prosperity, success, and sound decisions.

The purpose of ethical actions is to avoid prohibited constructive actions and to encourage both obligatory and
optional actions.

Individuals perform ethical actions as part of their duties or responsibilities.

Can you think of any other characteristics
for ethical actions?
Morality

For ethical actions to be successful, people must be self-disciplined. Morality refers to right and wrong actions
made by human beings. A good moral life is lived by those who resist inducement towards the wrong with
determination.
It is more important for a community to be responsible for ethical actions rather than individuals to be
responsible for them. There are three types of ethical actions that individuals can perform in a society. These
actions are:

Morality The purpose of morality is to secure the future of others.

Religion A religion is a collection of ethical principles that can affect society or a group of people.

Civil law actions are ethical actions used to change and control an individual's behavior in
Civil law
society.
There is a close relationship between the terms 'morality' and 'ethics'. The
term "morality" refers to a standard or character based on moral values.
The concept of morality is used to analyze the behavior of individuals and
their standards of behavior. Morality is basically ethics in action.
Relationship between morals, values and ethics

Benefits to
Some
Cultural and Religious Traditions

Analysis of
Value Moral Moral Dilemmas
Ethical
Judgements Standards
Principles

Social and Economic Situations

Harm to Others
Which one do you think is better- Ethics,
Moral or Values?