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Business Ethics

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Agenda for Presentation

What is Ethics? Why study business ethics?

What role should ethics play in business?

What is ethical behavior?

Foundation of ethical behaviour.

Universal ethical standard.

Ethics taught in all cultures. Business costs of unethical behaviour.

Ethical issues related to business in Pakistan.

Information technology creating ethical issues in organisations.

How can ethical behaviour add value to business in Pakistan?

Manager improving ethical behaviour in Pakistani Organisation.

Ethical issues in centralised and decentralised organisations(Public/Private).

What happens when people dont behave ethically?

Global ethical issues.

Example of good ethics.

Conclusion.

Recommendation.

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What is Ethics?What is Ethics?

Study relating to moral action,motive, characteralso relatingto standards, feelings, duty andconduct.

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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. Individual ethics is not enough.

Helps identify ethical issues.

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Business ethics are based on societys ethics and

those of the people who work for and buy fromthem.

A Code of EthicsSome companies write a code of ethics, adocument that explains specifically howemployees should respond in certain situations.

What role should ethics play in business?What role should ethics play in business?

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What is ethical behavior?

Ethical behavior is conduct that conforms to ethicsindividual beliefs and social standards about what is rightand good.

Values tell us what is important. They help us makedecisions about right and wrong.

Morals are rules we use to decide what is good or bad.Application should be in all areas of ones life:personal, family, business, social, etc.

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Foundation of ethical behavior

Treat others as you

would be treated; Respect

Honesty

Trust

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Universal ethical standardUniversal ethical standard YesIn Principle

Are you comfortable with a world with

your standards?Christian principle: The GoldenThe Golden

RuleRuleD

o unto others as you would have them dounto you. Luke 6:29-38

Thou shalt love thy neighbor as thyself.

Luke 10:27

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Ethics taught In all cultures

Judaism:What you hate, do not do to anyone.Islam: No one of you is a believer until he loves for hisbrother what he loves for himself.Hinduism:D

o nothing to thy neighbor which thou wouldstnot have him do to thee.Sikhism: Treat others as you would be treated yourself.Buddhism: Hurt not others with that which pains thyself.Aristotle:We should behave to our friends as we wish our

friends to behave to us.Plato: May I do to others as I would that they should dounto me.

TREAT PEOPLE THE WAYYOUWANT THEM TO TREAT YOU

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Ethical issues related to business in PakistanEthical issues related to business in PakistanDiscrimination is denying a qualified individual an interview, job, orpromotion based on his or her religion, gender, sexual orientation, orphysical disabilities.

Gender discrimination is treating an employee differently based ontheir sex (male or female).

The glass ceilingrefers to invisible barriers that may affect the careerpath of senior leaders in corporate positions.

Harassment: Behavior that is threatening, disturbing, ormakes others feel uncomfortable.

Accessibility Issues: The duty to accommodate refers to anemployers obligation to ensure accessibility for all employees.

Honesty means Respecting rights of others,

Unfair competition: Refrain from bribes and excessive gifts.

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I.T ethical IssuesI.T ethical Issues(a)(a) IT changes the distribution of decisionIT changes the distribution of decision--making rights,making rights,

power and other resources.power and other resources.

Example:Example: IT makes it possible for millions of peopleIT makes it possible for millions of people

to download video files, weakening the exclusiveto download video files, weakening the exclusive

rights of movie studios to control distribution for theirrights of movie studios to control distribution for their

own profit.own profit.

(b) IT creates new opportunities to commit crimes.(b) IT creates new opportunities to commit crimes.

Example:Example: EE--mail creates the conditions for extensivemail creates the conditions for extensivephishing" or online con games designed to defraudphishing" or online con games designed to defraud

ordinary citizens.ordinary citizens.

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Ethical behaviour adding value

Better information Trust from investors. Lower costs for audits, controls, investigations. Better allocation of resources.

Customers will be more loyal.

Fair competition Lowers cost of business in economy. Leads to better decision-making (do whats best for firm, not one

individual).

Rights of others Draws upon talents of wider set of individuals. Develops long-term respect from the community. Maintains the environment for long-term value to.

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Centralised (Public)

Blame-shifting or scape-goating-transferring blame for onesactions to others.

Because of minimal upward communication, top levelmanagers may not be aware of problems.

Decentralised (Private)

Have few formal rules, and coordination and control are

usually informal and personal. Are adaptable and are very aware of external change. Managers can react quickly to changes in the external and

internal environment.

Ethical issues in centralised and decentralisedorganisations

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What happens when people dontbehave ethically

FraudFraud is a crime of lying or pretending. Some businessesmislead consumers and trick them to buy their products or

services.Accounting ScandalsAn accounting scandal occurs when accountants or seniorexecutives alter accounting records for personal benefit.

Embezzlement, a type of accounting fraud, happens when

an accountant or senior executive creates false accountsand redirects money into them for personal gain.Insider TradingInsider trading is buying or selling shares of a companybased on confidential information. This type of trading isillegal.

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Sexual & racial discrimination

Human rights

Price discrimination

Bribery

Harmful products hazardous waste materials

Pollution

Telecommunication money laundering

Global ethical issues

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Example of good ethics

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Conclusion

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Recommendations

ahsan@jinnah.edu.pk

0321-5147639