INTRODUCTION TO INTRODUCTION TO BUSINESS ETHICSBUSINESS ETHICSCA. SANAT PYNE

EthicsEthics word meaning- character

Set of standards or code or value system, worked out from human reason & experience by which free human actions are determined as ultimately right or wrong, good or evil.

Business ethics-appl. of ethics in business

Nature of ethics in Nature of ethics in businessbusinessIn busi. 2 types of ethical problem

>overt- bribary, theft, sabotage etc

>covert- complex and not transparent, defy ethical solutions

A decision is ethical if it is:

>Right- moraly right and due >Good- brings good for all

concerned >Equitable- just & equal >Proper- appropriate & acceptable >Fair- Honest & due >just- justice is done

Ethics is unstructured ethics moral standards value system background & childhood exper.

Ethics express some obligation to others

Characteristics of BECharacteristics of BEDiffer with persons ethical questions do not have a

unique soln but a multitude of alternatives

Ethical decisions are not limited to themselves, but affects a wide range of other situations as well.

ED involves a trade off between cost incurred and benefits received.

Consequences are not clearEvery person is individually

responsible for the ethical or unethical decision and action that he or she takes

Ethical actions are voluntary human actions

Why is ethics impo. in Why is ethics impo. in business?business?Ethics corresponds to basic human

needsValues create credibility with the

publicValues give mgmt credibility with

employeesValues help better decision makingEthics and profitLaw cannot protect society, ethics

can.

Sources of ethicsSources of ethicsReligion

Cultural experience

The legal system

Morality and ethicsMorality and ethics Morality is the std an individual or

community keeps about what is right and wrong or good and evil.

MoralityMoral norms deals with topics that

either seriously harm or benefit human beings

Moral stds are not dependent on or changed by the decision of authoritative bodies

Moral demands enjoys a self-driven force

Expressed through the medium of special emotions.

EthicsEthics helps one to address

questions such as what do moral principles mean in a given situation

Ethics offers certain moral stds to judge a particular human behaviour or situation

Ethics & LawEthics & LawLaw is universally accepted, published

document Law says, what action should be taken

against a person who violates the provisions of legal system whereas the consequences of unethical action is not clear

Some laws have nothing to do with morality while some may even violate our moral stds.

Ethical theories 1.Utilitarianism (consequence based)Teleological Theories The word teleological is derived from the Greek word telos, which refers to an end. Actions are justified on teleological

theories by virtue of the end they achieve, rather than some feature of the actions themselves.

an action is said to be right if it produces good results or its achieves good consequences.

2 types>act-consequentialism: morality of an

action depends on its consequences>rule-consequentialism: focusing only

on the consequences can lead people to committing outrageous action.

2.Deontological (duty based theory) The word deontological derives from

the deon, the Greek word for duty. people behave ethically as they find

it their solemn duty towards that Suggests that we have moral duties

to others Stress the importance of respecting a

person’s autonomy It also stresses that one has duties to

oneself

3. Social justice theory4. Ethics of care