Business Ethics - An Overview

Ethics Nature of Ethics Objectives of Ethics Business Ethics Nature of Business Ethics Relationship between ethics and business The Unitarian view of ethics The Separatist view of Ethics The integration view of Ethics Stages of ethical consciousness in business Need for Business Ethics

 The word ethics is derived from the Latin Word ethicus and the Greek word ethikos meaning character or manners. Ethics is said to be the science of moral, moral principle and recognized rules of conduct. Ethics involves learning what is right or wrong, and then doing the right thing. Ethics are the fundamental ground rules by which we live our lives. what becomes an ethical guideline today is often translated to a law, regulation or rule tomorrow. Values which guide how we ought to behave are considered moral values, e.g., values such as respect, honesty, fairness, responsibility, etc. Statements around how these values are applied are sometimes called moral or ethical principles.

Ethics

Nature of Ethics
Ethics is a subject that deals with human beings. Ethics is more a science than an art. Ethics is a normative science

Ethics deals with voluntary human conduct.

Objectives of Ethics
Ethics deals with human behavior. To establish moral standards and norms of behavior. To assess human behavior and express an opinion or attitude about the behavior. To set a standard or code for the moral behavior and make recommendations about the desired behavior.

 Business Ethics refers to the application of ethical judgments to business activities. Business Ethics concerns itself with what is right or wrong in the workplace. It is the normative study of moral standards as they apply to business policies, institutions and human behavior.

Nature of Business Ethics

Business ethics is more a matter of religion than management Business ethics is a discipline best led by philosophers, academics and theologians. Business ethics is superfluous -- it only asserts the obvious: "do good!" Business ethics is a matter of the good guys preaching to the bad guys. Business ethics in the new policeperson on the block. Ethics can't be managed. Business ethics and social responsibility are the same thing. Managing ethics in the workplace has little practical relevance.

Ethical Problems
Overt deals with bribery, theft, collusion. Covert deals with corporate acquisitions, marketing and personnel policies, capital investment.

Ideal Ethical decision

Right Morally correct Equitable Just and equal Good Highest good for all concerned Proper appropriate and acceptable Fair Honesty Just - Action

Characteristics of Ethical Decisions in Business

Ethical decisions differ according to an individuals perspective. Ethical decisions do not have a unique solution, but a multitude of alternatives. The consequences of unethical decisions are ambiguous in nature. Ethical or unethical decision depends upon individual actions.

Relationship between Business and Ethics The Unitarian View of Ethics The Separatist View of Ethics Integration view of Ethics

The Unitarian View of Ethics

Moral structure

Business

Moral Ethics

The Separatist View of Ethics

Business

Ethics

Society

The Integration View of Ethics

Government Law

Market systems

Society

Corporate Citizenship

Stages of Ethical Consciousness in Business

Stakeholder concept Profit maximization in long term Profit maximization in the short term Anything for Profit Law of the Jungle

Need for

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