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Ethics means norms for the conduct of people in social groupings. Ethics is derived from Greek Word Ethos which means culture the prevalent behavior in the society. Thus, it is a
Ethics has often been misunderstood to be conforming to law. On the contrary, ethics is about voluntarily conforming to what is good/acceptable/desirable behavior without the force of any legal/social obligation.
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It has been gaining importance in the recent times due to geographical spread, growing size of businesses and their
It has also been highlighted by the colossal scams in some businesses in recent times.
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The purpose of business is to earn profits. And almost every business tries to maximize its profits.
But the question that arises here is how much profit and
In today's fast-paced, competitive and demanding business environment, employees in both small and large businesses can find themselves facing difficult ethical dilemmas. For this reason, every business regardless of size needs to provide knowledge and resources to help employees act ethically. there are several critical ways to develop and sustain an ethical business environment. Perhaps the most important is the realization that "it all starts at the top."
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Codes combine philosophical with admonitions to avoid certain illegal actions and espouse certain moral principles, especially those that elevate personal behavior.
Principle-Based :
Designed to enable the employee to make ethical decisions based
be dishonest
Policy-Based :
Guideline as to how to act in specific ethical dilemma situations
(a) Conflicts of interest. (b) Disseminating proprietary information. (c) Receiving and giving political gifts. (d) Equal opportunities.
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Identify the key behaviors needed to adhere to the ethical values proclaimed in code of ethics.
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Moods tend to be less intense, longer lasting feeling that typically dont interfere with the job at hand.
Emotional Hijacking:
Negative emotions-especially chronic anger, anxiety or a
Coercive Power Power that is based on fear. Reward Power Power that is based on the ability to distribute rewards that others see as valuable
Legitimate Power Power that a person receives as a result of his/her position in the hierarchy Expert Power Power based on specific skills or knowledge
Political behavior: Activities that are not required as part of ones formal role in the organization, but that influence, or
Politics is a fact of life in organizations. People who ignore this fact of life do so at their own peril.
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to misinterpretation.
If you want to become more politically adept in your organization, what could you do?
1. 2. 3. 4.
Frame arguments in terms of organizational goals. Develop the right image. Gain control of organizational resources. Make yourself indispensable.
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Question 1: Is the political action motivated by self serving interests to the exclusion of the organizations goals? No Yes
Unethical
Question 2: Does the political action respect the rights of the individuals affected?
No
Unethical
Yes
Unethical
1. 2. 3. 4.
Business ethics helps the organization to achieve corporate excellence in many ways. It results in organizations establishing distinctive cultures for individual companies. When such distinctive cultures are established, they promote creativity and innovations within the organizations. Corporate Mission Statement. Code of Ethics. Organizational Culture. Total Quality Management (TQM).
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Companies are investing millions and millions of rupees on ethics and compliance management.
hotline.
Guideline prescribes more lenient sentences and fines to
16 companies for measure to prevent employee misconduct.
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A value based cultural approach to ethics/compliance management works best. Requires sincere commitment of leader at all the level.
Fair treatment to employees.
Reward for ethical conduct.
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Value based. Motivating to employees to aspire ethical conduct. Encouraging them to question to authority when ethics are at a stake.
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Companies that are committed to a code of ethics will enjoy the following four key benefits:
1. 2. 3. 4.
Reduced risk.
Reduced fraud. Reduced litigation. Happier Employees = Improved bottom line.
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Companies that follow the steps outlined above, from establishing enforceable code of conduct to rewarding employees for helping to implement and enforce the code
Thank You..
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