BUSINESS ETHICS

WHAT IS ETHICS

Ethics may be referred to some standardized form of conduct or behavior of individuals, understood and accepted in a particular field of activity The work ETHICS has its origin in Greek word Ethics means character, norms, morals and ideals prevailing in a group and society. Ethics is a mass of moral principles or set of values about what conduct ought to be. They give an idea what is right or wrong, true of false, fair or unfair, just or unjust, proper or improper, e.g. Honesty, obedience, equality, fairness, etc and respect and then doing the right thing

BUSINESS ETHICS
Carter McNamara has defined: Business ethics is generally coming to know what is right and wrong in the workplace and doing what is rightthis is in regard to efforts of products/ services and in relationships with stakeholders. A group of moral principles, standards of behavior, or set of values regarding proper conduct in the workplace

Ethical questions fall under one or more of following levels:

Level 4 : Individual Level 3 : Internal policy

Level 2 : Stake holders

Level 1: Society

Continued

Individual level: personal level interactions, obligations and rights as human beings Internal policy: ethics in practices of organization w.r.t. employment, rights of employees, etc. Stake holders: suppliers, creditors, customers, etc.

Society: External agencies, social institutions, etc.

Common Morality: (Morals or Principles)

Morality is body of rules governing the ordinary ethical problems Promise keeping Non- malevolence (prevent violent conflicts) Mutual aid (among people, societies, nations) Respect for persons (regard other people as an end in themselves) Respect for property ( obtain consent of owners before using their property.

How to have ethics in business ?

Ethical Audits, Ethics committees, judicial boards, Ethics training programs, etc., :- to have ethical policies in business Groups to whom corporate ethics codes apply?? * Employees & their families * Local communities * Suppliers * Share holders * Country Govt. * Foreign Govt.s

Global Ethical Issues

Wages and hours

Child labour
Discrimination

Legal and ethical business practices

Product safety and quality Environment

What causes unethical behaviour

Stress

Confusion
Pressure to perform at expected levels Competition within the industry

No knowledge

ETHICS IN THE WORKPLACE

Relationships

at Work

Management/owner toward client/customer Management/owner toward employees Employee toward Employer, Co-workers, Customers

ETHICS IN THE WORKPLACE

Business

Abuse

Any : illegal unethical irresponsible Act done against an Employer

ETHICS IN THE WORKPLACE

Results

of Business

Abuse Higher prices Business Failure Fewer Jobs Unpleasant Working Conditions

ETHICS IN THE WORKPLACE

A.Examples of Business Abuse

Stealing Merchandise Money * Shoplift *Kickback * Conflict of Interest * Unauthorized Discounts Time

ETHICS IN THE WORKPLACE

A. Examples of Business Abuse (Continued) Vandalism (damage) Forge Records Break Confidentiality Ignore Safety Rules Misrepresent Merchandise

ETHICS IN THE WORKPLACE

A. Examples of Business Abuse (Continued) Poor Client Service Irresponsible Behavior Addictions * drugs * alcohol * tobacco

ETHICS IN THE WORKPLACE

A. Examples of Business Abuse (Continued) Gossip * Causes poor work environment (morale) * Lowers Productivity

ETHICS IN THE WORKPLACE

How

Do We Rationalize Business Abuse? Everybody does it The co. wont mind it The co. overcharges Im not paid enough The co. doesnt deserve my loyalty

ETHICS IN THE WORKPLACE

C. How Employers Respond to Business Abuse Increase Security * loss prevention mgmt. * surveillance * Networks/Helplines * threats of prosecution

ETHICS IN THE WORKPLACE

C. How Employers Respond to Business Abuse (Continued) Increase Employee Loyalty * fair wages & benefits * fair/consistent treatment * recognition for good wk * foster family climate

ETHICS IN THE WORKPLACE

D. As Employees, What Are Our Choices? Ignore Business Abuse Rationalize it away Speak Up Discuss to Clarify Issues Blow the Whistle!

Campus Overview
Ahmedabad Kolkata Mumbai

907/A Uvarshad, Gandhinagar Highway, Ahmedabad 382422.

Infinity Benchmark, 10th Floor, Plot G1, Block EP & GP, Sector V, Salt-Lake, Kolkata 700091.

Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai 400 064.

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