What are Ethics

Ethics is a study of moral issues

Ethics is a system or code of morals
of a particular person, group,
profession or religion
They are subject to personal
interpretation
Ethical issues are not legal issues

Moral Standards
Deal with matters that we think can
seriously injure or benefit human
beings
Are not established or changed by
the decisions of particular
authoritative body
Should be preferred to other values
including self-interest
Are based on impartial

Business Ethics
Concentrates on moral standards as they
apply to business policies, institutions
and behaviour
Business enterprises are economic
institutions to carry on tasks related to:
Production and distribution of goods and
services

Large business corporations have more

than 100000 employees with budgets
more than many of the countries and

Business Ethics
Corporate issues in business ethics are
ethical questions about a particular
company about its activities, policies,
practices etc
Individual issues in business ethics are
ethical questions raised about a
particular individual/s about the morality
of the decisions, actions or character of
an individual

Business Ethics and Moral

Standards
An organization 'exists' only if there exists
within it people and they interact
Organization 'acts' only if individuals in
organization performed certain actions in
certain circumstances
Corporate policies, corporate culture and
corporate norms have influence on choices,
beliefs and behaviors of employees

MNCs and Ethical Dilemma

Shifting operations from one country
Equal treatment of employees, particularly with respect of
wages across all its units of the globe
Movement of operations between its units for the purpose
of tax gain for itself (but loss of revenue for the country)
Transferring the outdated and environmentally hazardous
technologies
MNCs goods and services leading to a change in social
lifestyles and moral standards
Ethical relativism:
When in Rome, do as the Romans do

Technology and Business

Ethics
Risks associated with use of technology
Privacy in communication
Safety while using (microwave)
Chemical ingredients
Modern methods of agricultural farming
methods
Genetic engineering

Moral Development - Kohlberg

Level One: Pre-conventional Stages
(children distinguishing good, bad, right
and wrong)
Stage one: Punishment and Obedience
orientation
Stage two: Instrument and Relativity
orientation (actions needed to gain
satisfaction of self and the child cares
for)

Moral Development - Kohlberg

Level Two: Conventional Stages (family,
peer and national loyalty development)
Stage Three: Interpersonal
Concordance Orientation (doing what
is right as perceived by self and
affiliated groups)
Stage Four: Law and Order orientation
(being a part of a larger social system)

Moral Development - Kohlberg

Level Three: Post-conventional,
Autonomous or Principled Stages
(Impartiality and universality)
Stage Five: Social Contract Orientation
(becomes aware of conflicting views,
democratic process and need to be
tolerate)
Stage Six: Universal Ethical Principles
Orientation (Universality)

Moral Development
Kohlberg is attributed to follow 'male'
approach to moral development
Carol Gilligan is attributed to follow
'female' approach (caring and being
responsible)

Bringing Ethics into Business

In perfect competition in free markets, the
pursuit of profit as objective, ensures that
businesses operate in the most socially
beneficially ways; but is there a 'perfect'
competition?
Business managers and employees are required
to pursue the interests of their firms (what if it is
against his/her personal morals?)
Is it enough to merely obey the law?
Law and ethics are not identical and universal around
the world
'illegal' may not mean 'unethical'

Obstacles to Being Ethical

Ethics of self-interest: Reduced to riskreward calculations
Cheat on exams
Include lies in resumes
Distort or falsify at work

The pursuit of happiness: How one

defines happiness
Money
Status
Mood altering substances