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Ethics & Business EthicsEthics & Business Ethics

Lecture 1

Sandhya Tewari

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EthicsEthics

y Moral principles or beliefs about what is

right or wrong

y Ethics guide managers in their dealings

with stakeholders and others when the

best course of action is unclear.

y Managers often experience an ethical

dilemma in choosing between theconflicting interests of stakeholders.

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Values & AttitudesValues & Attitudes

y Values

Describe what managers try to achievethrough work and how they think they should

behavey Attitudes

Capture managers thoughts and feelingsabout their specific jobs and organizations.

y Moods and Emotions Encompass how managers actually feel when

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Values are of two typesValues are of two types

Terminal Values:A personal conviction about

life long goals.

Sense of accomplishment,

self respect & equality

InstrumentalValues:

A personal conviction about

desired mode of conduct or

ways of behaving.

Being hard working, capable

& broad minded.

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The terminal and instrumental values that arethe guiding principles in an individuals life

are the Value System of that particular

individual.

y An individuals value system if often

related to their attitude. Hence to

understand the values we must have abetter understanding of attitudes.

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AttitudesAttitudes

y Attitudes in simpler terms is a collection offeelings & beliefs.

y Job Satisfaction is collection of feelingsand beliefs that managers have abouttheir current jobs.

Organizational Citizenship Behaviors arebehaviors that are not required of organizationalmembers but that help the firm in gaining acompetitive advantage.

x Managers with high satisfaction are more likely performthese above and beyond the call of duty behaviors.

x Managers who are satisfied with their jobs are less likelyto quit.

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Ethics:

Whats the Fuss?

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When evaluating ones goals andobjectives, a vital question must be

asked: What is your highest aspiration?

A. WealthB. Fame

C. Knowledge

D. PopularityE. Integrity

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If integrity is second to any of the

alternatives, then it is subject tosacrifice in situations where a

choice must be made. Such

situations will inevitably occur in

every persons life.

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"We Will Not Lie, Steal Or Cheat, Nor

Tolerate Among Us Anyone Who Does"

-- Which do you think is the harder part:

Line 1 or Line 2? Why?

Educational Institutions

have established ethics

codes for their students,

e.g. the U.S. Air Force

Academy:

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In his best-seller, The Closing of the AmericanMind, Allan Bloom says that the eternal conflict

between good and evil has been replaced with Im

okay, youre okay. Students unthinkingly embrace ablind tolerance in which they consider it moral

never to think they are right because that mean

someone else is wrong.

[Allan Bloom, The Closing of the American Mind,

New York, Simon and Schuster, Inc. 1987]

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Where Do We Start?

Upon What Can WeAgree?

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Whether we

derive a code of

ethics fromreligious beliefs, a

study of history

and literature, orpersonal

experience and

observation: Wecan all agree

upon some basic

values. 14

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In an issue of Management Accounting,

James Brackner stated: The universities areresponding with an increased emphasis on

ethical training for decision making. For the

most part, however, they ignore the teachingof values. For moral or ethical education to

have meaning there must be agreement on

the values that are considered right.

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Be sure you areright, then go

ahead.

Davy Crockett

1786-1836

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A nation or a culture

cannot endure for longunless it is undergirded

by common values such

as valor, public

spiritedness, respect for

others and for the law; It cannot stand unless it

is populated by people who will act on the

motives superior to their own immediateinterest.

Chuck Colson, Against the Night

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When the situation

needs improvement,

Gandhi offers

guidance: You must

be the change youwish to see in the

world.

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Michael Josephson, in Chapter 1 of

Ethical Issues in the Practice of

Accounting, describes the Ten Universal

Values: Honesty, integrity, promisekeeping, fidelity, fairness, caring, respect

for others, responsible citizenship, pursuit

of excellence, and accountability.

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If we want to

produce people who

share the values of a

democratic culture,they must be taught

those values and not

be left to acquire

them by chance.

Cal Thomas, The

Death of Ethics in

America

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Can you makea difference?

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To sin by silence

when they should

protest makes

cowards of men.

Abraham Lincoln

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To see what is

right and not todo it is want of

courage.

(Confucius)

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The right way is notalways the popular and

easy way. Standing for

right when it is unpopular

is a true test of moralcharacter.

- Margaret Chase

Smith, first womanelected to both houses of

the U.S.Congress

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Leadership is a potent

combination of strategy

and character. But if

you must be withoutone, be without

strategy.General H.

Norman Schwarzkopf

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The reputation of a thousand years may be

determined by the conduct of one hour.

Japanese proverb

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At a Congressional Hearing on

Accounting and Business Ethics,

distinguished entrepreneur, Truett

Cathy, the Founder of Chick-Fil-A,quoted Solomon"A good name is

more desirable than great riches; to

be esteemed is better than silver or

gold."

The truth is that fame and fortune arenothing compared to personal honor.

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President

Lincolnsaid:

Honor isbetter

thanhonors.

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