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Definitions:-

[Many discussions of ethics and ethical issues founder on disagreements about definitions. Ethics
is unique among disciplines in that practitioners often cannot agree on a common definition of
their topic. Ethics Scoreboard can't solve that problem, which is many centuries old. Here it
attempts to put forth definitions that eplain what words mean when they are used on this
website.!
Values: "hose qualities of behavior, thought, and character that society regards as being
intrinsically good, having desirable results, and worthy of emulation by others.
Morals: Modes of conduct that are taught and accepted as embodying principles of right and
good.
Morality: # system of determining right and wrong that is established by some authority, such
as a church, an organi$ation, a society, or a government.
Ethics: "he process of determining right and wrong conduct.
Ethical System% # specific formula for distinguishing right from wrong.
Unethical: #n action or conduct which violates the principles of one or more ethical systems, or
which is counter to an accepted ethical value, such as honesty.
Non-ethical considerations: &owerful human motivations that are not based on right or wrong,
but on considerations of survival and well'being, such as health, security, love, wealth, or self
esteem.
Concepts
Non-Ethical Considerations: (efined above, non'ethical considerations are important because
they are often the powerful impediments to ethical conduct, and the cause of many conflicts of
interest. )on'ethical considerations are many and diverse, and include%
"he need and desire for shelter, health, wealth, fame, security, self'esteem, reputation,
power, professional advancement, comfort, love, se, praise, credit, appreciation,
affection, or satisfaction
"he desire for the health, comfort, safety, welfare and happiness for one's family, loved
ones, friends, colleagues, an co'wor*ers
"he pursuit of vengeance or retribution
Hunger, lust, pain, ambition, pre+udice, bias, hatred, la$iness, fatigue, disgust, anger, fear
, -and many more
Ethical Dilemma: "his is an ethical problem in which the ethical choice involves ignoring a
powerful non'ethical consideration. (o the right thing, but lose your +ob, a friend, a lover, or an
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opportunity for advancement. # non'ethical consideration can be powerful and important enough
to +ustify choosing it over the strict ethical action.
Ethical Conflict: .hen two ethical principles demand opposite results in the same situation, this
is an ethical conflict. Solving ethical conflicts may require establishing a hierarchy or priority of
ethical principles, or eamining the situation through another ethical system.
Ethical Gray Area: /ray areas are situations and problems that don't fit neatly into any eisting
mode of ethical analysis. 0n some cases, there may even be a dispute regarding whether ethics is
involved.
Reciprocity: "he ethical system embodied by "he /olden 1ule, and given slightly different
form in other religions and philosophies. 0t is a straight'forward way of +udging conduct
affecting others by putting oneself in the position of those affected. 1eciprocity should always be
available in any ethical analysis, but it is frequently too simple to be helpful in comple ethical
situations with multiple competing interests.
Asolutism: #bsolutist systems do not permit any eception to certain ethical principles. "he
champion of all absolutists, philosopher Emmanuel 2ant, declared that the ethical act was one
that the doer was willing to have stand as a universal principle.
3ne principle of absolutism is that human beings can never be harmed for any ob+ective, no
matter how otherwise worthwhile. #bsolutism has the advantage of ma*ing tough ethical calls
seem easy, and the disadvantage of ma*ing debate impossible. 3ne sees absolutism reflected
today in the controversies over war, torture, abortion, cloning, and capital punishment.
Utilitarianism: 4tilitarianism accepts the eistence of ethical conflicts and the legitimacy of
some ethical dilemmas, and proposes ethical analysis based on the question, 5.hich act will
result in the greatest good for the greatest number of people6' 0t entails the balancing of greater
and lesser goods, and is useful for unraveling comple ethical problems. 0ts drawbac*, or trap, is
that utilitarianism can slide into 5"he ends +ustify the means5 without some application of
absolutist and reciprocity principles.
!he G"del #ncompleteness $rinciple: 7$ech'born mathematician 2urt /8del proved that at the
margins of any large logical system, such as arithmetic, or conceptual construct, such as
)ewtonian physics, problems would arise that could not be solved without going outside the
system itself. 0f the system were enlarged to include these problems' solution, it would lose its
integrity as a system. Hence all systems must be incomplete. 0n ethical terms, /8del's liberating
discovery means that no one ethical system will wor* for every problem, and that the fact that
such a system does not solve a particular problem does not mean the system is invalid.
Co%niti&e Dissonance: 7ognitive dissonance is a psychological phenomenon first identified by
9eon :estinger. 0t occurs when there is a discrepancy between what a person believes, *nows
and values, and persuasive information that calls these into question. "he discrepancy causes
psychological discomfort, and the mind ad+usts to reduce the discrepancy. 0n ethics, cognitive
dissonance is important in its ability to alter values, such as when an admired celebrity embraces
behavior that his or her admirers deplore. "heir dissonance will often result in changing their
attitudes toward the behavior. (issonance also leads to rationali$ations of unethical conduct, as
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when the appeal and potential benefits of a large amount of money ma*es unethical actions to
acquire it seem less ob+ectionable than if they were applied to smaller amounts.

Some 'undamental Concepts in Ethics
5Ethics5 may be broadly defined as that division of philosophy which deals with questions
concerning the nature of value in matters of human conduct.
.hile virtually all people are concerned with ma*ing ethical +udgments and decisions,
philosophers in particular are concerned to
a;eplicate the nature of such +udgments in general and
b;provide criteria for determining what is ethically right or wrong, and
c; analy$e the grounds or reasons we have for holding them to be correct.
"hose concerned eclusively with telling us what is right or wrong, good or bad, in matters of
human conduct may be termed 5moralists(5 .hile philosophers have sometimes been moralists,
as philosophers their primary concern is not so much to provide moral prescriptions as it is to
explain why what we consider to be "right" or "good" is right or good. "o do so, philosophers
engaged with such questions have generally sought to formulate and +ustify 5ethical theories5
which are intended to eplain the fundamental nature of that which is 5good,5 why it is 5good,5
and why the ethical principles which are most commonly used to evaluate human conduct follow
<or do not follow; from this theory of that which is good.
.hile there are of course many words in English <as well as most languages; which refer to
positive and negative &alues, we may simplify our vocabulary by ta*ing the words 5%ood5 and
5ad5 to refer to positive and negative values respectively in +udgments with respect to people
and things, and 5ri%ht5 or 5)ron%5 to refer to positive and negative values respectively with
respect to actions. 0n this way of spea*ing, then, a 5good person5 will simply be one whose
actions are 5right5 by the criteria of whatever ethical theory is the basis of such a +udgment.
0f we restrict attention to actions, any 5action5 may be analy$ed as involving an actor, the person
who does the action, and an end result or outcome of the action. 0n ethical terminology the actor
is called the 5a%ent,5 and the end result is the 5conse*uence5 of the action.
Ethical theories may be presented for various purposes. Some theories may merely purport to
describe what people do, in fact <so it is claimed;, consider to be 5good5 or 5right.5 Such theories
are 5descripti&e ethical theories+ and may be considered 5true5 or 5false5 depending on
whether or not they do indeed describe correctly what people in fact do consider good or right.
Since such descriptive theories are concerned with what people actually do believe and what
motivates them to believe what they do, such theories are strictly spea*ing more the concern of
psychology than philosophy, and their acceptability is a matter of whether or not the empirical
evidence indicates that what they say about human values is in fact the case. Since they are
restricted to telling us what is the case, descriptive ethical theories cannot serve as the basis for
ma*ing claims intended to change or persuade people to act or thin* otherwise than the way they
do.
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0n contrast to descriptive ethical theories, those ethical theories which are intended to +ustify
+udgments concerning what people ought or should do <or not do;, are called 5normati&e ethical
theories.5 )ormative theories characteristically yield ethical +udgments which have in them the
*ey concept of 5ought5 or 5should5 <or some such synonym;. "heir concern is not with what is
the case, but with what should be the case= they are concerned not with the 5real5 <what is so;,
but with the 5ideal5 <what ought to be;. #s such, unli*e a purely descriptive theory, a normative
theory cannot be 5refuted5 by appeal to the facts of human behavior, for the defender of a
normative claim can always reply, yes, it is true people do not in fact behave this way, but they
ought to. )ormative theories are not the concern of psychologists, but of philosophers and
<typically; moralists.
"he person who see*s to change, to improve or reform, human behavior must defend a
normati&e theory, and it is this *ind of theory which most people have in mind in eamining
what philosophers have to say about ethics.

Ethical theories can be divided into two categories depending on what they consider the source
of ethical value to be% conse*uentialist or 5teleolo%ical5 ethical theories and moti&ational or
5deontolo%ical5 ethical theories.
# consequentialist or 5teleolo%ical ethical theory5 claims that what ma*es an action right or
wrong are the consequences of the action= quite simply a "right action" is one which has good
consequences, a 5wrong action5 has bad consequences. <3f course the consequentialist theory
still has to specify what ma*es the consequences good or bad, concerning which, see the net
paragraph.;
# 5deontolo%ical ethical theory5 holds in opposition to a consequentiality theory that it is not
the consequences but the motivation which prompts the agent to do an action which ma*es an
action right or wrong. 3n this type of ethical theory an action motivated by the right sorts of
reasons will be "right" no matter whether its consequences are desirable or not, whereas an
action motivated by the wrong sorts of reasons will be a wrong action, even if its consequences
might be considered desirable.
#t least in .estern philosophy, consequentialist theories have generally also
been eudaemonistic ethical theories.
# eudaemonistic consequentialist ethical theory holds that what ma*es a consequence 5good,5
and hence an action 5right,5 is its tendency to promote human happiness or well-being.
3ne must ma*e a distinction between the doctrine called 5psychological eudaemonism5 which
holds the descriptive claim that human beings are in fact always motivated by a desire to achieve
happiness, and the doctrine called 5ethical eudaemonism,5 which ma*es the normative claim that
people ought always to act so as to achieve happiness. &sychological eudaemonism as a theory
about human motivation may be correct or incorrect depending on the empirical evidence
psychologists are able to present regarding this view of human motivation. <:or most of history,
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it was common to regard the evidence as favoring such a view, but more recently psychological
research tends to call this into question.; Ethical eudaemonism, however, ma*es a normative
claim about what ought to motivate people, and thus cannot be refuted by empirical evidence
regarding what does in fact motivate them.
.hile eudaemonistic theories in general leave open the question of what constitutes human
happiness or well'being, the special kind of eudaemonistic theories which define 5happiness5 as
maximum pleasure and minimum pain are called 5hedonistic+ ethical theories.
Many .estern eudaemonistic, consequentialist theories have also been hedonistic theories, most
notably epicureanism and utilitarianism.
Hedonistic theories may be further subdivided into two groups depending on whose pleasures
and pains give an action its ethical value.
5E%oistic hedonism5 holds that what ma*es an action right or wrong is its tendency to maimi$e
pleasures and minimi$e pains of the agent, the person doing the action.
5Altruistic hedonism5 holds that what gives an action its ethical value is its tendency to
maimi$e pleasures and minimi$e pains of all affected by the action.
Epicureanism is an eample of egoistic hedonism, while utilitarianism is an eample of
altruistic hedonism.
Since what does produce pleasure and pains cannot be deduced from reasoning but can only be
*nown by experience, hedonists are ethical empiricists, who hold that it is only by experience
that we can determine the ethical value of an action.

Deontolo%ical ethical theories generally have held that what ma*es an action right is whether
the agent is motivated by a desire to follow an 5ethical principle.5 #n agent who is so motivated
is said to act 5out of a sense of duty5 or 5moral obligation.5
(eontological ethical theories are often associated with various revealed religious traditions in
that the 5ethical principles5 which are regarded as determining human moral obligation are in
effect claimed to be commands of a divine being. Such theories may be called 5theological
deontological ethical theories.5 0n philosophy, however, +ustification of ethical principles cannot
proceed by appeal to a religious revelation, but must be made by appeal to rational arguments.
"here is no need for theological and philosophical deontological theories to conflict= a
philosopher might, for eample, argue that the ethical principles which reason dictates are the
same as those a supreme being has commanded.
"ypically philosophers see*ing to defend deontological theories have been 5rationalists" in the
sense that the ethical principles they hold determine human ethical duties are claimed to be
deduced by reason from the essential nature of the universe <as in stoicism; or from the nature of
human beings as essentially "rational beings" <as in ,antian ethical theory;.
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Characteristics of ethics:-
2ey characteristics are necessary to drive an organi$ation to success. "he following represent
characteristics that will be epected in each member of the >Spirit of the "itans?.


Cheer- leader : 'Emphasis will be placed on 9eader, which is defined as, ># person who
influences or inspires others= role model.? How6 "hrough 9eadership (evelopment
&rogram. 7heerleaders will rotate through vast opportunities to perform leadership
responsibilities wee*ly. "hey will be viewed as role models on an off the field.
Academic success: '@uoting our school mission statement= >Ensuring that all students
receive a rigorous, balanced education that will enable them to compete in a global
society.? "his is why you are in school. How6 7heerleaders will be epected to set long
and short term academic goals. "here will be wee*ly grade with each classroom teacher.
"here will be open communication between coach and classroom teachers via email.
Community Ser&ice % 'Serving others is an awesome eperience. .hen you help others,
you help yourself. Sideline cheerleading is a service organi$ation. "here are no
competitions to wins. 3ur success is driven by positive student and spectator spirit.
How6 Service participation in pep'rallies, parades, summer youth cheer programs and
campus clean up events. 1emember, sideline cheerleading is all about public relations
and spirit building.
Game-day: 'Sideline cheerleaders are athletes whose focus is place on supporting the
team <win or lose; and growing school and community spirit through cheering and public
relations. How6 Sideline cheerleaders will be present at pre'game tailgates, as well as all
home and away games. .e will treat officials, opponents, fans, and ourselves with
dignity and respect by being humble in victory and gracious in defeat.
Commitment: '"o achieve success, commitment must be present. "o be committed, one
must, >pledge, promise, or obligate oneself? to a cause. How6 "his is the only way to
achieve long term success. Aou will be part of building the traditions of )3HS
athletics. How do you want our school spirit to be for future generations6 7ommit to
your team, your teammates, your coaches and yourself. 7hoose right over wrong, even
when no one is watching.
$riorities: '(efined as >something that ta*es precedence over other things?. 0n the
school setting, academics come first. 0t must be priority. )et, priority is >Spirit of the
"itans? cheerleading team. #fter, these obligations are met, social activities may follow.
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!rust: '(efined as >a reliance on the integrity, or reliability of a person or thing.? .e
must learn to trust each other and ourselves. How6 1eliability is essential. )o one
person <including the coach; can complete the entire tas* that will be required to ma*e
this a successful organi$ation. "hrough completing assigned tas*, on'time and
effectively, trust will be developed.
!eam)or-: '(efined as >wor* done together= unity in action.? Behind most successful
people there is a team of support. )o one individually, gains complete success without
help of others. Becoming a team player is essential for success in the organi$ation
however, most importantly, in life. How6 .e will epect all team members to be
supportive of other members. .e will epect each member to put differences aside to
promote unity. .e will portray >unity in action?.
'un : -(efined as >anything that induces en+oyment.? "hough very high epectations
will be in place, cheerleading is supposed to be fun. 0t will be a wonderful eperience
that ma*es memories that will last a lifetime.
.hat are /usiness Ethics0 Meanin%
Ethics is a branch of social science. 0t deals with moral principles and social values. 0t helps us to
classify, what is good and what is bad6 0t tells us to do good things and avoid doing bad things.
So, ethics separate, good and bad, right and wrong, fair and unfair, moral and immoral and
proper and improper human action. 0n short, ethics means a code of conduct. 0t is li*e the CD
commandments of holy Bible. 0t tells a person how to behave with another person.
So, the businessmen must give a regular supply of good quality goods and services at reasonable
prices to their consumers. "hey must avoid indulging in unfair trade practices li*e adulteration,
promoting misleading advertisements, cheating in weights and measures, blac* mar*eting, etc.
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"hey must give fair wages and provide good wor*ing conditions to their wor*ers. "hey must not
eploit the wor*ers. "hey must encourage competition in the mar*et. "hey must protect the
interest of small businessmen. "hey must avoid unfair competition. "hey must avoid
monopolies. "hey must pay all their taes regularly to the government.
0n short, business ethics means to conduct business with a human touch in order to give welfare
to the society.
Definition of /usiness Ethics
#ccording to Andre) Crane,
5Business ethics is the study of business situations, activities, and decisions where issues of right
and wrong are addressed.5
#ccording to Raymond C( /aumhart,
5"he ethics of business is the ethics of responsibility. "he business man must promise that he
will not harm *nowingly.5
Features of Business Ethics
1. Code of conduct% Business ethics is a code of conduct. 0t tells what to do and what not to
do for the welfare of the society. #ll businessmen must follow this code of conduct.
2. /ased on moral and social &alues% Business ethics is based on moral and social values.
0t contains moral and social principles <rules; for doing business. "his includes self'control,
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consumer protection and welfare, service to society, fair treatment to social groups, not to
eploit others, etc.
3. Gi&es protection to social %roups % Business ethics give protection to different social
groups such as consumers, employees, small businessmen, government, shareholders,
creditors, etc.
4. $ro&ides asic frame)or-% Business ethics provide a basic framewor* for doing
business. 0t gives the social cultural, economic, legal and other limits of business. Business
must be conducted within these limits.
5. Voluntary% Business ethics must be voluntary. "he businessmen must accept business
ethics on their own. Business ethics must be li*e self'discipline. 0t must not be enforced by
law.
6. Re*uires education and %uidance% Businessmen must be given proper education and
guidance before introducing business ethics. "he businessmen must be motivated to use
business ethics. "hey must be informed about the advantages of using business ethics. "rade
#ssociations and 7hambers of 7ommerce must also play an active role in this matter.
7. Relati&e !erm% Business ethics is a relative term. "hat is, it changes from one business
to another. 0t also changes from one country to another. .hat is considered as good in one
country may be taboo in another country.
8. Ne) concept% Business ethics is a newer concept. 0t is strictly followed only in
developed countries. 0t is not followed properly in poor and developing countries.
Need or #mportance of /usiness Ethics
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1. Stop usiness malpractices % Some unscrupulous businessmen do business malpractices
by indulging in unfair trade practices li*e blac*'mar*eting, artificial high pricing, adulteration,
cheating in weights and measures, selling of duplicate and harmful products, hoarding, etc.
"hese business malpractices are harmful to the consumers. Business ethics help to stop these
business malpractices.
2. #mpro&e customers1 confidence % Business ethics are needed to improve the customers'
confidence about the quality, quantity, price, etc. of the products. "he customers have more
trust and confidence in the businessmen who follow ethical rules. "hey feel that such
businessmen will not cheat them.
3. Sur&i&al of usiness % Business ethics are mandatory for the survival of business. "he
businessmen who do not follow it will have short'term success, but they will fail in the long
run. "his is because they can cheat a consumer only once. #fter that, the consumer will not
buy goods from that businessman. He will also tell others not to buy from that businessman.
So this will defame his image and provo*e a negative publicity. "his will result in failure of
the business. "herefore, if the businessmen do not follow ethical rules, he will fail in the
mar*et. So, it is always better to follow appropriate code of conduct to survive in the mar*et.
4. Safe%uardin% consumers1 ri%hts % "he consumer has many rights such as right to health
and safety, right to be informed, right to choose, right to be heard, right to redress, etc. But
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many businessmen do not respect and protect these rights. Business ethics are must to
safeguard these rights of the consumers.
5. $rotectin% employees and shareholders % Business ethics are required to protect the
interest of employees, shareholders, competitors, dealers, suppliers, etc. 0t protects them from
eploitation through unfair trade practices.
6. De&elops %ood relations % Business ethics are important to develop good and friendly
relations between business and society. "his will result in a regular supply of good quality
goods and services at low prices to the society. 0t will also result in profits for the businesses
thereby resulting in growth of economy.
7. Creates %ood ima%e % Business ethics create a good image for the business and
businessmen. 0f the businessmen follow all ethical rules, then they will be fully accepted and
not criticised by the society. "he society will always support those businessmen who follow
this necessary code of conduct.
8. Smooth functionin% % 0f the business follows all the business ethics, then the employees,
shareholders, consumers, dealers and suppliers will all be happy. So they will give full
cooperation to the business. "his will result in smooth functioning of the business. So, the
business will grow, epand and diversify easily and quic*ly. 0t will have more sales and more
profits.
9. Consumer mo&ement % Business ethics are gaining importance because of the growth of
the consumer movement. "oday, the consumers are aware of their rights. )ow they are more
organised and hence cannot be cheated easily. "hey ta*e actions against those businessmen
who indulge in bad business practices. "hey boycott poor quality, harmful, high'priced and
counterfeit <duplicate; goods. "herefore, the only way to survive in business is to be honest
and fair.
10. Consumer satisfaction % "oday, the consumer is the *ing of the mar*et. #ny business
simply cannot survive without the consumers. "herefore, the main aim or ob+ective of business
is consumer satisfaction. 0f the consumer is not satisfied, then there will be no sales and thus
no profits too. 7onsumer will be satisfied only if the business follows all the business ethics,
and hence are highly needed.
11. #mportance of laour % 9abor, i.e. employees or wor*ers play a very crucial role in the
success of a business. "herefore, business must use business ethics while dealing with the
employees. "he business must give them proper wages and salaries and provide them with
better wor*ing conditions. "here must be good relations between employer and employees.
"he employees must also be given proper welfare facilities.
12. 2ealthy competition % "he business must use business ethics while dealing with the
competitors. "hey must have healthy competition with the competitors. "hey must not do cut'
throat competition. Similarly, they must give equal opportunities to small'scale business. "hey
must avoid monopoly. "his is because a monopoly is harmful to the consumers.
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$rinciples of usiness Ethics:-
3( /e !rustful: 1ecogni$e customers want to do business with a company they can trust= when
trust is at the core of a company, it's easy to recogni$e. "rust defined, is assured reliance on the
character, ability, strength, and truth of a business.
4( ,eep An 5pen Mind: :or continuous improvement of a company, the leader of an
organi$ation must be open to new ideas. #s* for opinions and feedbac* from both customers and
team members and your company will continue to grow.
6( Meet 5li%ations: 1egardless of the circumstances, do everything in your power to gain the
trust of past customer's and clients, particularly if something has gone awry. 1eclaim any lost
business by honoring all commitments and obligations.
7( 2a&e Clear Documents: 1e'evaluate all print materials including small business advertising,
brochures, and other business documents ma*ing sure they are clear, precise and professional.
Most important, ma*e sure they do not misrepresent or misinterpret.
8( /ecome Community #n&ol&ed: 1emain involved in community'related issues and activities,
thereby demonstrating that your business is a responsible community contributor. 0n other words,
stay involved.
9( Maintain Accountin% Control: "a*e a hands'on approach to accounting and record *eeping,
not only as a means of gaining a better feel for the progress of your company, but as a resource
for any 5questionable 5 activities. /aining control of accounting and record *eeping allows you
to end any dubious activities promptly.
:( /e Respectful: "reat others with the utmost of respect. 1egardless of differences, positions,
titles, ages, or other types of distinctions, always treat others with professional respect and
courtesy.
!op 3; /enefits of Mana%in% Ethics
Many people are used to reading or hearing of the moral benefits of attention to business ethics.
However, there are other types of benefits, as well. "he following list describes various types of
benefits from managing ethics in the wor*place.
3( Attention to usiness ethics has sustantially impro&ed society
# matter of decades ago, children in our country wor*ed CE'hour days. .or*ersF limbs were torn
off and disabled wor*ers were condemned to poverty and often to starvation. "rusts controlled
some mar*ets to the etent that prices were fied and small businesses cho*ed out. &rice fiing
crippled normal mar*et forces. Employees were terminated based on personalities. 0nfluence was
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applied through intimidation and harassment. "hen society reacted and demanded that businesses
place high value on fairness and equal rights. #nti'trust laws were instituted. /overnment
agencies were established. 4nions were organi$ed. 9aws and regulations were established.
4( Ethics pro%rams help maintain a moral course in turulent times
#ttention to business ethics is critical during times of fundamental change G times much li*e
those faced now by businesses, both nonprofit and for'profit. (uring times of change, there is
often no clear moral compass to guide leaders through comple conflicts about what is right or
wrong. 7ontinuing attention to ethics in the wor*place sensiti$es leaders and staff to how they
want to act G consistently.
6( Ethics pro%rams culti&ate stron% team)or- and producti&ity
Ethics programs align employee behaviors with those top priority ethical values preferred by
leaders of the organi$ation. 4sually, an organi$ation finds surprising disparity between its
preferred values and the values actually reflected by behaviors in the wor*place. 3ngoing
attention and dialogue regarding values in the wor*place builds openness, integrity and
community G critical ingredients of strong teams in the wor*place. Employees feel strong
alignment between their values and those of the organi$ation. "hey react with strong motivation
and performance.
7( Ethics pro%rams support employee %ro)th and meanin%
#ttention to ethics in the wor*place helps employees face reality, both good and bad G in the
organi$ation and themselves. Employees feel full confidence they can admit and deal with
whatever comes their way. Bennett, in his article >4nethical Behavior, Stress #ppear 9in*ed?
<.all Street Hournal, #pril CC, CIIC, p. BC;, eplained that a consulting company tested a range
of eecutives and managers. "heir most stri*ing finding% the more emotionally healthy
eecutives, as measured on a battery of tests, the more li*ely they were to score high on ethics
tests.
8( Ethics pro%rams are an insurance policy < they help ensure that policies are le%al
"here are an increasing number of lawsuits in regard to personnel matters and to effects of an
organi$ationFs services or products on sta*eholders. #s mentioned earlier in this document,
ethical principles are often state'of'the'art legal matters. "hese principles are often applied to
current, ma+or ethical issues to become legislation. #ttention to ethics ensures highly ethical
policies and procedures in the wor*place. 0tFs far better to incur the cost of mechanisms to ensure
ethical practices now than to incur costs of litigation later. # ma+or intent of well'designed
personnel policies is to ensure ethical treatment of employees, e.g., in matters of hiring,
evaluating, disciplining, firing, etc. (ra*e and (ra*e <7alifornia Management 1eview, JCE, pp.
CDK'CLM; note that >an employer can be sub+ect to suit for breach of contract for failure to
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comply with any promise it made, so the gap between stated corporate culture and actual practice
has significant legal, as well as ethical implications.?
9( Ethics pro%rams help a&oid criminal acts =of omission> and can lo)er fines
Ethics programs tend to detect ethical issues and violations early on so they can be reported or
addressed. 0n some cases, when an organi$ation is aware of an actual or potential violation and
does not report it to the appropriate authorities, this can be considered a criminal act, e.g., in
business dealings with certain government agencies, such as the (efense (epartment. "he recent
:ederal Sentencing /uidelines specify ma+or penalties for various types of ma+or ethics
violations. However, the guidelines potentially lower fines if an organi$ation has clearly made an
effort to operate ethically.
:( Ethics pro%rams help mana%e &alues associated )ith *uality mana%ement? strate%ic
plannin% and di&ersity mana%ement < this enefit needs far more attention
Ethics programs identify preferred values and ensuring organi$ational behaviors are aligned with
those values. "his effort includes recording the values, developing policies and procedures to
align behaviors with preferred values, and then training all personnel about the policies and
procedures. "his overall effort is very useful for several other programs in the wor*place that
require behaviors to be aligned with values, including quality management, strategic planning
and diversity management. "otal @uality Management includes high priority on certain operating
values, e.g., trust among sta*eholders, performance, reliability, measurement, and feedbac*.
Eastman and &olaroid use ethics tools in their quality programs to ensure integrity in their
relationships with sta*eholders. Ethics management techniques are highly useful for managing
strategic values, e.g., epand mar*et share, reduce costs, etc. Mc(onnell (ouglas integrates their
ethics programs into their strategic planning process. Ethics management programs are also
useful in managing diversity. (iversity is much more than the color of peopleFs s*in G itFs
ac*nowledging different values and perspectives. (iversity programs require recogni$ing and
applying diverse values and perspectives G these activities are the basis of a sound ethics
management program.
@( Ethics pro%rams promote a stron% pulic ima%e
#ttention to ethics is also strong public relations G admittedly, managing ethics should not be
done primarily for reasons of public relations. But, fran*ly, the fact that an organi$ation regularly
gives attention to its ethics can portray a strong positive to the public. &eople see those
organi$ations as valuing people more than profit, as striving to operate with the utmost of
integrity and honor. #ligning behavior with values is critical to effective mar*eting and public
relations programs. 7onsider how Hohnson and Hohnson handled the "ylenol crisis versus how
Eon handled the oil spill in #las*a. Bob (unn, &resident and 7E3 of San :rancisco'based
Business for Social 1esponsibility, puts it best% >Ethical values, consistently applied, are the
cornerstones in building a commercially successful and socially responsible business.?
A( 5&erall enefits of ethics pro%rams
(onaldson and (avis eplain in the boo* >Business Ethics6 Aes, But .hat 7an it (o for the
Bottom 9ine6? <Management (ecision, JLN, )E, CIID; that managing ethical values in the
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wor*place legitimi$es managerial actions strengthens the coherence and balance of the
organi$ationFs culture, improves trust in relationships between individuals and groups, supports
greater consistency in standards and qualities of products, and cultivates greater sensitivity to the
impact of the enterpriseFs values and messages.
3;( Bast
#nd most formal attention to ethics in the wor*place is the right thing to do.
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