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Business Ethics Unit-1
Business Ethics Unit-1
Have you ever bribed someone for getting your work done? Have you ever discriminated someone because of his caste, creed, sex or any other thing?
Business Ethics
Concept
There is a big difference between what you have a right to do and what is right to do. - Justice Potter Stewart 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 community or the social group.
Wrong
Impropriety
Good
Evil
Introduction
The word Ethics is derived from the Greek word Ethicos which means- Character or manners. It is the study of morals and moral choices.
TERMS Ethics- moral principles by which people conduct themselves personally, socially, or professionally. Business Ethics -rules based on moral principles about how businesses and employees ought to conduct themselves.
Definitions.
Ethics-Relating to morals ;treating of moral questions ;morally correct ; honorable Oxford Dictionary.
Business ethics are moral principle that define right and wrong behavior in the world of business.
Business Ethics are the application of general ethical rules to business world. The value of what should be done and what
Protection of Consumer Rights-B.E. can be used to check malpractices like adulteration, unfair trade practices Social Responsibility-Public accountability, protection of workers interest ,proper utilization of resources. Concept of Socialism Success should be shared by all concerned as Employees, shareholders ,consumers etc also contribute to the success of the business Interest of Industry- Ethics are necessary to safeguard the interests of small scale business firms. S.S.Is can establish their positions & fight for
Ethics helps the market do its best. Law cannot alone protect society but Ethics can. Attention to business ethics has substantially improved society. Ethics programs help maintain a moral course in turbulent times. Ethics programs cultivate strong teamwork & productivity. Ethics programs support employee growth & meaning.
Ethical Objectives
Study of Human Behavior :makes evaluative assessment about that as moral or immoral. Establishes Moral standards /norms or behavior.
Ethical Objectives
Makes Judgment upon Human behavior based on these standards & norms.
Prescribes moral behavior; makes recommendations about how to or how not to behave. Expresses an opinion or attitude about human conduct in general
Towards Stakeholders: Provision of proper information Timely payment of dividend etc. Towards Financial Institutions: Proper information about firms financial position. Timely repayment of advances & interest etc. Towards Society: Contribution towards welfare of society. Fair practices health, safety and environmental standards etc.
Creating jobs
Environmental protection
A business cannot claim to be ethical firm if it ignores unethical practices by its suppliers Example: Use of child labour and forced labour Production in sweatshops Violation of the basic rights of workers Ignoring health, safety and environmental standards
An ethical business has to be concerned with the behaviour of all businesses that operate in the supply chain i.e. Suppliers Contractors Distributors Sales agents
Environmental Issues
Finance
Other Issues
dealing with, or capable of making the distinction between right or wrong conduct -Principles, standards habits with respect to right or wrong in conduct
It seems fair to boil the definition of moral values down to: Beliefs and personal opinions about: 1) what is right (honest, ethical, true) conduct and 2) what is wrong (dishonest, false, harmful) conduct held by individuals and held collectively by socially cohesive groups of individuals.
Morality
Immorality is the active opposition to morality, while Amorality is variously defined as an unawareness of,
indifference toward, or disbelief in any set of moral standards or principles.
Beliefs
Belief refers to a state or habit of mind .In this state one places trust or confidence in some person or thing . Belief is a notion or idea which has the same value as statement of knowledge or truth. EgReligious beliefs refer to a religious tenet or body of tenets held by a group. Rituals are the way of expressing Beliefs or values or culture.
Values are inculcated Well accepted principles Time-tested Existence Values reflect Character Values change Gradually
Importance of Values
Values foster Economic Progress Values foster social Development Values improves social relations Values facilitate Regional cooperation Values generate Love, Peace & Happiness Values improves standard of living.
Types of Values
Allport and his associates categorized values into 6 types: Theoretical: Interested in the discovery of truth through reasoning Economic: Interest in usefulness & practicality. Aesthetic: Interest in beauty, form & artistic harmony. Social: Interest in people and love as a human relationship Political: Interest in gaining power and influencing people Religious: Interest in unity & understanding the cosmos as a whole
Beliefs