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Ethics & Morality
Prof.Abhinav Trivedi
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Ethical Behaviour
As we know that the Ethical behaviour of anindividual is decided by his/her moralbehaviour (individual behaviour).
So the ethical behaviour if an individual isdetermined by:
1)Individual : basic nature of a person, his
beliefs, upbringing and family environmentdirectly affects the behaviour, selfactualization.
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2) Groups & Communities : Each & everycommunity has its own ethical & moralapproach like nature of work, vision,
aim etc.3) Cultural Environment : Which comes
from Upbringing culture, Educational
culture, Religious beliefs, Neighboursetc.
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4) Organizational Environment : Whichcomes from Ethical Codes, Role models,Practices , Rewards & punishment etc.
5) External Environment : Which areoutcomes of political, Legal ,Economical
Practices & developments.
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Relation b/w Business & Ethics
As we know ethics is based on : Normative standards.
Philosophical standards.
Business world mostly prefers Normativeethics & have to develop strategies tomaintain proper balanced relation
between Moral demands and Businessstrategies & Individual Behaviour.
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Relation b/w Business & Ethics (contd..)
There are three different views whichdefines the relation between business &
ethics :
1. The Unitarian View.
2. The Separatist View .
3. The Integration View.
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The Unitarian View.
According to Unitarian view there should be oneunique rule for society. This view states thatbusiness is only a sub-component of themoral structure of society and Business &
morality cant be separated and businessmust follow the rules & trends of society.
According to this view the purpose ofbusiness is only to serve society and it shouldconduct its actions through unselfish goalsand have to avoid profit for society
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The Unitarian View (contd)
Business
Society & Moral Community
The Unitarian View
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The Separatist view
This view is totally opposite to theUnitarian view. According to this viewthe only goal of business is to just
generate revenue and maximize profitto its stakeholders and there should beno interference of morality and ethics inbusiness i.e. the business should betotally separated from socio-culturalaffairs.
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The Separatist view
Business
Society & Moral Community
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The Integration view
This view was given by parson whodescribes that business is a separatesystem but it has to be controlled by
the Norms of society and these normshave to be practical not to be based ondirect moral appeals.
Business Society & Moral CommunityNorms
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The Social Contract Integrative Theory
This theory was given byTHOMAS DONALDSON& THOMAS DUN FEE.
According to this theory,A social contract is a type of informal agreement
concerned with the behavioural norms which areintroduced for social beliefs, shared goals andattitudes of Communities & groups of peoples.
This theory says that, a productive organization is
one which ensures customer satisfaction,protects rights & interests of its employees andincrease the welfare of the society.
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Elements of Social contract theory
1) Hyper norms : These are universal normswhich are applied equally to the wholeorganization. hyper norms include basichuman rights, personal freedom, informed
consent, physical security etc.2) Macro Social norms : They provides global
norms e.g. local communities must be
allowed moral free space.All these macro norms must be compatible withHyper norms.
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Elements of Social contract theory
Micro social norms : These norms aredeveloped at community level or grouplevel to control the activities so that
there should be no conflict with Hypernorms .
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Ethics & Decision Making
According to the decision process modelEthical decision making of an individualis the outcome of :
Personal Traits
Values
Organizational Traits
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Personal Traits :Business decisions are made by individualsor by committees, thus the ethics of
business in reality is the ethics of theindividuals. A persons ethics areinfluenced by his personal traits like
personal ego, field experience, locus ofcontrol, moral development etc.
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Values : A value is a belief on which aman acts by preference. A value is a
prescriptive belief about right or wrong.Human values may be based on rulesand are referred to as deontological ormay be based on the perceivedoutcomes and are referred toteleological beliefs.
Values can be divided into two classes :
1) Instrumental values2) terminal values
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Instrumental Values : these are thosevalues regarding the way we approachend states. Instrumental values are
related to the means for achievingdesired results
Instrumental Values :
Assertiveness, hard work, obedience,Truthfulness, Good manners etc.
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Terminal Values : Terminal values refer tobeliefs about ultimate good or endresults.
Terminal Values :
Satisfaction , pride in accomplishment,
Peace and harmony, Recognition,security etc.
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Organizational Traits : The underlying
organizational values and traits are thecore of the firms traits like :
Truth and respect individuals.
Focus on high level of achievement andcontribution.
Conduct business with integrity.
Achieve common objectives through teamwork.
Encourage Flexibility and innovation.
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Balanced Concept of Freedom
Human is always superior to other living beingsand some factors supports this fact like
Thinking & brain power.
Development of skills & mental abilities.
Educated & trained.
Development of language & Symbols.
Humans are culturally shaped.
Human organize themselves according torules.
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Balanced Concept of Freedom
Freedom is the ability to choose autonomouslywhile considering the given circumstances (bothinternal & External) with its opportunities andlimitations.
Balanced concept contains the liberty to think,behave and perform with fundamental aspectslike responsibility, accountability andcommitment towards society i.e. this libertyshould not affect the framework and set normsof society & organization.
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Balanced Concept of Freedom
The most important ability of human is making choicefreely.
Balanced Concept of Freedom includes two basicassumptions for free
choice :
1) Individual actions are the results of personal choiceor deliberate will i.e. we are responsible for ouractions.
2) Second constituent emphasizes the importance ofmaking a well informed choice according to thecircumstances.
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We can achieve balanced concept offreedom by :
1) Educating people & individuals and
making them aware about theirresponsibility towards society.
2) Initiative from every individual to
contribute.