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Mr.

Manan Aslam
(Assistant Professor)

manan.aslam@umt.edu.pk
C HAPTER 1

The Importance of Business Ethics


Assessment Criteria

ITEM ASSESSMENT TASK TOTAL MARKS

1 Assignments (5) 05%


2 Quizzes (5) 10%

3 Attendance & CP 05%, 05%

4 Mid Term 25%


5 Final Project 15%

6 Final Examination 35%

Your assessment & final grades will be based as per University existing rules.
Chapter Outline
Definition of Ethics & Business Ethics
Why Study Business Ethics?
Developing an Organizational and Global Ethical Culture
Need / Importance of Business Ethics
Our Framework for Studying Business Ethics
Ethics
EthikosAn ancient word Arising from Habit
Branch of Philosophy, is the study of value or morality
It covers the analysis and employment of concepts:

Right, wrong, good, evil and responsibility


Cont

Morals: Refer to a persons personal philosophies


about what is right or wrong
Morals are personal and singular

Values: Enduring beliefs and ideas that are socially


enforced
Teamwork, Human rights, freedom of speech and justice
trust and integrity
Business Ethics

Comprises principles and standards that guide behavior in


the world of business

Right or wrong, acceptable or unacceptable behavior


within the organization

Determined by you and key stakeholders


A Crisis in Business Ethics
Consumer trust of businesses is declining
No sector is exempt from ethical misconduct
Stakeholders determine what is ethical/unethical
Investors
Employees
Customers
Interest groups
Legal system
Community
Why Study Business Ethics?
Business decisions under great
scrutiny
Global financial crisis created
diminished stakeholder trust
Deals with questions about whether
practices are acceptable
No universally-accepted approach for
resolving issues
Why Study Business Ethics?
Reports of unethical behavior are on the rise
Societys evaluation of right or wrong affects its ability
to achieve its business goals
Studying business ethics is a response to stakeholder
demands for ethics initiatives
Individual ethics alone is not sufficient
Studying business ethics helps identify ethical issues to
key stakeholders
Due to the need for professional experience and
understanding the complexities of the legal
environment.
Global Trust in
Industry Sectors

Source: Edelman Global Deck: 2013 Trust Barometer, http://www.edelman.com/trust-downloads/global-results-2/


(accessed January 30, 2013).

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except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13
Misuse of company resources
Abusive behavior
Harassment
Accounting fraud
Conflicts of interest
Defective products
Bribery
Employee theft

2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part,
except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14
Role of Organizational
Ethics in Performance

Cengage Learning 2015


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except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16
Commitment comes from employees who are
invested in the organization and willing to make
personal sacrifices for the organization
The more company dedication to ethics, the
greater the employee dedication
Concerns include a safe work environment,
competitive salaries and benefits packages, and
fulfillment of contractual obligations

2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part,
except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17
Investors are increasingly interested in a
companys reputation and recognize how:
ethical culture provides a foundation for
efficiency, productivity, and profitability
negative publicity, lawsuits, and fines threaten a
companys long-term viability
Gaining investors trust and confidence is
vital to sustaining financial stability

2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part,
except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18
Customer satisfaction is an important factor
in a successful business strategy
Companies seen to be socially responsible increase
customer trust and satisfaction
Trust is essential for long-term customer
relationships
A strong organizational ethical climate places
customers interests first

2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part,
except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19
Companies need profits in order to meet
their responsibilities
Corporate concern for ethical conduct is
being integrated with strategic planning
Maximizing profitability
Ethics has moved from being a compliance
standard to becoming an integral part of
achieving a competitive advantage

2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part,
except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20
PowerPoint created by:
Manan Aslam

MSc (Hons) / MBA (Marketing & Agribusiness)


from University of Agriculture, Faisalabad
(UAF)

More than 6 years of multidisciplinary


teaching & research experience (UMT, LHR &
UAF, FSD)

Published thirteen research papers mostly in


HEC recognized journals of Pakistan

Writing a number of popular newspaper and


magazines articles
Cont

COUNTRIES VISITED:
Bangladesh (fully funded conference by BRAC, Bangladesh)
Dubai
Iran (fully funded workshop by APO, Japan)
The Netherlands (fully funded training course by NFP, The
Netherlands)
Thailand (Australian Centre for International Agricultural
Research, ACIAR)