BUSINESS ETHICS

Presentation by Paromita Mukherjee

WHAT IS ETHICSEthics 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

WHEN AND WHERE DO WE DEVELOP ETHICAL VALUES?

According to those who study the history and philosophy of ethics, infants would not survive without a nurturer who teaches them about right and wrong behavior. In human society, a series of nurturer and teachers influence the ethical views of each individual.

BUSINESS ETHICSCarter McNamara has defined: Business ethics is generally coming to know what is right and wrong in the workplace and doing what is right-this is in regard to efforts of products/ services and in relationships with stakeholders.

Attention to ethics in the workplace sensitizes managers and staff to how they should act so that they retain a strong moral compass.

BUSINESS ETHICSInterest in business ethics has been increasing since 1960sInterest has been spurred by headlines of business scandalsA 1982 study reported that of the Fortune 500 companies,115 companies (23%) had been convicted of at least one major crime or paid penalties of serious misbehaviorIs the importance of business ethics declining in business and government practices?Greater focus on ethics, morals and values.

Global Ethical IssuesWages and hours

Child labour

Discrimination

Legal and ethical business practices

Product safety and quality

Environment

Even if we know we can get away with doing something wrong, even if no one ever discovers what we are up to,our vice harms us more than it hurts any of our victims.

-SOCRATES

FACTORS THAT AFFECT ETHICAL BEHAVIOURMODERATORSINDIVIDUALCHRACTERECTICSORGNIZATIONAL CULTUREISSUEINTENSITYSTRUCTURAL CHARECTERISTICS OF ORGANIZATIONSTAGES OFMORAL DEVELOPMENTETHICAL DILEMAETHICAL / UNETHICAL BEHAVIOUR

What causes unethical behaviourStress

Confusion

Pressure to perform at expected levels

Competition within the industry

No knowledge

Some of the Unethical Business practices are :Cutting corners on qualityCovering up incidentsAbusing or lyingLying customersStealing from the companyTaking credits from co-workers ideas/workTaking or giving bribe

Unethical business practices (contd)

Government corruptionFinancial scandalsProduct safetydiscriminationSexual harassmentFiring an employee for whistle blowingDivulging confidential information

Whats in it for me to be ethical?

-A more accurate perception of the world around you, follow your conscience.

-Have the courage to do what is right and do try new things even when it is hard or costly.

-Dont loose heart if you fail or dont get what you want

-A stronger personality, and greater likelihood of being happy in life

CONSIDER CONSEQUENCESIS IT ETHICAL ?

IS IT LEGAL ?

IS IT OK ?

IS IT RIGHT ?

Is it fair ?

Does it hurt anyone ?

Have I been honest with those affected?

Can my conscience live with this decision ?

CONCLUSIONIn the last few years we have seen a drastic change in society as well as in all facets of the business world. The consumer, today, is more aware of his rights and his requirements. He demands the best quality at the regular prices. Companies today need to incorporate a strong or responsible culture to face the instance reaction of the consumer. Todays market calls for stringent business ethics to be imposed in the corporate world.

BIBLIOGRAPHYEthics in Business- ROBERT.B. MADDUX

DOROTHY MADDUXBusiness Ethics and Managerial Values

S.K. BHATIAhttp://www.mapnp.org/library/ethics/http://www.uwm.edu/People/andrewk/