Business Ethics Fundamentals

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The Nature of Ethics

Ethics The innerguiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave

Chapter Outline Business Ethics and

Public Opinion What Does Business Ethics Mean? Ethics, Economics and Law: Venn Model Four Important Ethics Questions

Three Models of

Management Ethics Making Moral Management Actionable Developing Moral Judgment Elements of Moral Judgment Summary
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Introduction
Business Ethics Publics interest in business ethics increased during the last four decades Publics interest in business ethics spurred by the media

Introduction
Inventory of Ethical Issues in Business
Employee-Employer Relations Employer-Employee Relations

Company-Customer Relations
Company-Shareholder Relations Company-Community/Public Interest

Publics Opinion of Business Ethics

Gallup Poll finds that only 17 percent to 20 percent of

the public thought the business ethics of executives to be very high or high

To understand public sentiment

towards business ethics, ask three questions

Has business ethics really deteriorated? Are the media reporting ethical problems

more frequently and vigorously? Are practices that once were socially acceptable no longer socially acceptable?

Business Ethics: What Does It Really Mean?

Business Ethics:Today vs. Earlier Period
Societys Expectations of Business Ethics
Ethical Problem Actual Business Ethics

Ethical Problem

1950s

Time

Early 2000s

Business Ethics: What Does It Really Mean?

Definitions
Ethics involves a discipline that examines good or bad

practices within the context of a moral duty Moral conduct is behavior that is right or wrong Business ethics include practices and behaviors that are good or bad

Business Ethics: What Does It Really Mean?

Two Key Branches of Ethics
Descriptive ethics involves describing, characterizing

and studying morality

What is

Normative ethics involves supplying and justifying

moral systems
What should be

Conventional Approach to Business Ethics

Conventional approach to business ethics involves a

comparison of a decision or practice to prevailing societal norms

Pitfall: ethical relativism

Decision or Practice

Prevailing Norms

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Sources of Ethical Norms

Fellow Workers Fellow Workers

Regions of Country

Family

Profession

The Individual
Conscience Friends Employer

The Law

Religious Beliefs

Society at Large

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Ethics and the Law

Law often represents an ethical minimum
Ethics often represents a standard that exceeds the

legal minimum
Frequent Overlap

Ethics

Law

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Making Ethical Judgments

Behavior or act that has been committed compared with Prevailing norms of acceptability

Value judgments and perceptions of the observer

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Ethics, Economics, and Law

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Four Important Ethical Questions

What is?
What ought to be? How to we get from what is to what ought to be? What is our motivation for acting ethically?

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3 Models of Management Ethics

1. Immoral ManagementA style devoid of ethical principles and active opposition to what is ethical.
2. Moral ManagementConforms to high standards of ethical behavior. 3. Amoral Management

Intentional - does not consider ethical factors Unintentional - casual or careless about ethical considerations in business
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3 Models of Management Ethics

Three Types Of Management Ethics

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Three Approaches to Management Ethics

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Three Models of Management Morality and Emphasis on CSR

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Moral Management Models and Acceptable Stakeholder Thinking

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Making Moral Management Actionable

Important Factors
Senior management

Ethics training
Self-analysis

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Developing Moral Judgment

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Developing Moral Judgment

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Developing Moral Judgment

External Sources of a Managers Values
Religious values Philosophical values Cultural values Legal values Professional values

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Developing Moral Judgment

Internal Sources of a Managers Values
Respect for the authority structure

Loyalty
Conformity Performance

Results

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Elements of Moral Judgment

Moral imagination Moral identification and ordering Moral evaluation Tolerance of moral disagreement and ambiguity Integration of managerial and moral competence A sense of moral obligation

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Elements of Moral Judgment

Amoral Managers Moral Managers

Moral Imagination Moral Identification Moral Evaluation Tolerance of Moral Disagreement and Ambiguity Integration of Managerial and Moral Competence A Senses of Moral Obligation
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Selected Key Terms

Amoral management Business ethics Compliance strategy Conventional approach Integrity strategy Intentional amoral

to business ethics Descriptive ethics Ethical relativism Ethics Feminist Ethics Immoral management

management Kohlbergs levels of moral development Moral development Moral management Normative ethics Unintentional amoral management

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Selected Key Terms Amoral management

Business ethics Ethics Immoral management Levels of moral development Moral management Morality

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Do you think that there is importance of ethics in continuing to work for employer The ethics resource
Centre conducted the National ethics Survey Of 1500 US employees To gather data on Key ethics so as To understand the ethic Issues that are Important to employees.

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Ethics
Dictionary meaning-System of moral principles, rules

and conduct. The origin of this word is from ETHOS which mean Character. Ethics is defined as the ability to distinguish between right and wrong and to act accordingly.

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From Where The Ethics Comes

Religions
Environment Parents and Teachers

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Ethical Learning From Bhagwad Geeta

Bhagawad Geeta is the

Message of Lord given to his friend Arjun, there was fight of Evil and Unethical between Kauravas and Pandavas. The work or karmas is driving force of the life and this work has to be ethical. Managers who resort to unethical means to grab the immediate results are successful only for short time like Duryodhan.
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 The Lord advises that One is born into this life to play

his part and whatever the role is assigned to human, one has to perform his prescribed duties with the utmost devotion, sincerity and humility. The distinction is to be made between ethical work, work which is useless and work which is downright immoral. If people feel that the organization which they are working is unethical, they are caught in more dilemma like Karna faced in fight.

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Swami Vivekananda Views on Ethics The basis of Indian

Subjectivity lies in the belief of GOD. Supreme Oneness is the rationale of All ethics and Morality. He suggested Fundamental Law of ethics Do not injure others, love everyone as your own self because the whole Universe is One
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 Ethics is degree of faith in Oneself.

Ethics is essentially a matter of concern of

inner contents of individual. Ethical Person is the person of integrity and character who brings the same for the Organization.

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