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Business Ethics - Robin
Business Ethics - Robin
Contents
I. What is business? II. Defining Ethics III. Models of management ethics IV. Ethical Behavior V. Business Ethics VI. Stages of consciousness of Business Ethics VII.Ethics in business VIII.Need of Business Ethiccs IX. Conclusion
What is Business?
It can be defined as a primary economic institution through which people in modern societies carry on the task of producing and distributing goods and services.
Defining Ethics
The word ethics is derived from the Latin word ethicus and the Greek word ethikos, meaning characters and manners. Ethics can be interpreted as the method of systemizing, defending & recommending concepts of right & wrong behavior.
1. Moral ManagementConforms to high standards of ethical behavior. 2. Immoral ManagementA style devoid of ethical principles and active opposition to what is ethical. 3. Amoral Management
Intentional - does not consider ethical factors Unintentional - casual or careless about ethical considerations in business
In many situations lines between right and wrong are blurred. Such situations can lead to ethical dilemmas. When faced with ethical dilemmas, its important to consider outcomes of the decision-making process. One way of dealing with ethical dilemmas is by using the four way test to evaluate decisions. This test involves asking four questions: Is my decision a truthful one? Is my decision fair to everyone affected? Will it build goodwill for the organization? Is the decision beneficial to all parties who have a vested interest in the outcome?
Family
The Individual Conscience Friends
Profession
Employer
The Law
Religious Beliefs
Society at Large
Business Ethics
Business ethics can be defined as written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world, the organizations culture sets standards for determining the difference between good and bad decision making and behavior. For example Azim Premji tells all his employees whatever that is, Grey is Black. That means even if there is some kind of doubt about a transaction, do not go for it.
Its vital for managers to play an active role in creating a working environment where employees are encouraged and rewarded for acting in an ethical manner.
The auto major is transferring these tractor selling outlets by adding a repertory of agricultural operation & advice. The new move is known as Samriddhi. Independent of the fact that whether the farmer has the tractor of M& M or not, they can come their to solve their agricultural problems. Each Samriddhi center has an agricultural expert and a lab technician.
When farmer walks into Samriddhi center, expert asks about their problem and farming practices. The nature of assistance is lab tests on farmers land , advice on the crops nature, schedule, utilization of fertilizer, demonstration of farming technique on different seeds. Advises are available at free of cost.
Ethics in Business
Business Ethics towards Employees: Payment of right wages and salaries. Provision of proper facilities. Proper personnel policies relating to promotion, performance appraisal, transfers, etc; Business Ethics Towards Customers: Right pricing. Ethical promotion including advertising. Provision of proper information about products etc.
Business Ethics Towards Competitors: Fair competitive practices. Restraining from maligning competitors names. Restraining from instigating employees, suppliers or dealers or competitors etc.
Ethics in Business
Business Ethics Towards Government: Timely filing returns and other records. Payment of proper dues including taxes. Supporting Government in social development activities, etc; Business Ethics Towards Suppliers: Proper supply contact. Timely payment of dues. Restraining from pressure tactics on the dealers, etc; Business Ethics Towards Dealers: Timely delivery of products. Proper dealer contact. Restraining from pressure tactics on the dealers, etc;
Ethics in Business
Business Ethics Towards Shareholders/Stakeholders: Provision of proper information. Timely payment of dividend. Restraining form insider trading on the stock markets, etc;
Business Ethics Towards Financial Institutions: Proper information about firms financial position. Timely repayment of advances and interest
Concept of Socialism
Interest of Industry (Small and Large) Consumer Movement
Conclusion
Ethics are important not only in business but in all aspects of life because it is an essential part of the foundation on which of a civilized society is build.
A business or society that lacks ethical principles is bound to fail sooner or later. In the globalized era, we find that Ethics will be one of the enablers of competitiveness.
Thank You
If business is ethical, then making loss is unethical