ETHICS

Can be defined as a system of right and wrong

Assist individual decide whether an act is :

-Moral or Immoral
-Socially desirable or Undesirable

What is Business Ethics?

Principles and standard which guide

behaviour in the world of business
right or wrong, acceptable or
unacceptable behavior within the
organization
Determine by key stakeholders

Importance of business ethics

Ethics corresponds to basic human needs

Values creates creditability with the
public
Values gives the management
creditability with its employees
Values help better decision making
Ethics and profit go together
Law cant protect society ethics can

The major principles of business

ethics

No discrimination should be done on the

basis of caste,color, and religious.
The policies should be fair and transparent
Proper provision of safety should be
provided by the company to the employees
There should be proper honesty,loyalty,
and integrity in the employees.
Company should provide better
environment condition.

The companies resources should not be

utilized for their personal usage
To neither give not take any illegal
payment,remuneration,gift,donation, or
comparable, benefit to obtain business or
favour
To comply with all regulations regarding
preservation of the environment
Employee should report to management
any actual or possible violation of code or
an event that could affect the business or
reputation of the employees company

Classification of ethical issues

Conflict of interest
Honesty and fairness
Communication
Organizational relationships

Ethical issue for business

Product safety standards

Advertising contents
Working environment
Unauthorized payouts
Employee privacy
Environmental issues

Common unethical acts

Lying to supervisors
Falsifying records
Alcohol and drug abuse
Stealing
Improper accounting procedure
Discrimination
Violation of environmental laws

Key influences on ethical

behaviour

Personal values
Supervisor influence
Senior management influence
Internal drive to succeed
Performance pressure
Co-workers influence(peer pressure)

Key causes of unethical

behaviour

Meeting overly aggressive financial or

business objective
Meeting schedule pressure (deadlines)
Helping the organisation survive
Rationalising that others do it
Resisting competitive threat
Saving jobs

Why misconduct is not reported

Fear of not being considered a team

player
Did not think that corrective action would
be taken
Fear of retribution-from management
No-one else cares why should I?
Did not trust the organisation to keep the
report confidential

Ethical and unethical practices by

Ethical practices businessUnethical practices
Towards Investors:
Ensuring safety of their money Investors principle amount do
and timely payment of interest. not return on time, showing an
false accounting.
Towards Employees:
Provision of fair opportunities
in promotions and training,
good working conditions, and
timely payment of salaries

Towards Customer:
Complete information of the
service and product should be
made available. Personal
information of the customers
should not be used for
personal gain.

Do not provide timely payment

of salaries and incentives.

To provide improper information

of product and service. Provide
inferior product.

Ethical practices

Unethical practices

Towards Competition:
Unscrupulous tactics and
methods should be avoided
while handling competitors.

Copying of product of another

organization.

Towards Government:
Rules and regulations regarding
taxes, duties, restrictive and
monopolistic trade practices,
and unlawful activities like
corruption and bribing should
be adhered to.

businesses exploit tax

loopholes to avoid paying taxes
to the government so the
companies can legally dodge
the taxes.

Towards Environment:
Polluting industries should
ensure compliance with the
government norms regarding
air, water and noise pollution.

Harming the environment by

exceeding the government
prescribed norms for pollution.