BUSINESS ETHICS
Define ETHICS
➲ The term ethics refers to rules &
principles that define right & wrong
conduct.
➲ Ethics as the study of how our decisions
affect other people.
➲ It is also a study of people's rights &
duties, the moral rules that people
applying making decisions,and the
nature of the relationships among
people.
➲ The system of rules governing the
ordering of values.
Define ...
➲ Ethical issue : Situation,problem,or
opportunity in which an individual must
choose among themselves several actions
that must be evaluated as right / wrong.,
➲ Business Ethics : The moral principles &
standards that guide behaviour in the world
of business ...
➲ Business ethics : Is concerned with truth &
justice & has a variety of aspects such as
the expectations of society,fair
competition ,advertising , public
relations,social responsibilities,consumer
autonomy, & corporate behaviour in the
home country as well as aboard.
4 LEVELS OF ETHICS IN BUSINESS
➲ SOCIETAL
➲ STAKE HOLDER
➲ INTERNAL POLICY
➲ PERSONAL / INDIVIDUAL
TOOLS OF ETHICS
➲ VALUES
➲ RIGHTS
➲ DUITES
➲ MORAL RULES
➲ HUMAN RELATIONSHIPS
➲ COMMON MORALITY
➄ Promise keeping
➄ Nonmalevolence
➄ Mutual aid
➄ Respect for persons
➄ Respect for property.
VIEWS OF ETHICS
➲ Utilitarian view of ethics :
A view of ethics that says that ethical
decisions are made solely on the basis of their
outcomes / consequences.
➲ Rights view of ethics :
A view of ethics that's concerned with
respecting & protecting individual liberties &
privileges
VIEWS OF ETHICS
➲ Theory of justice view of ethics :
A view of ethics in which mangers impose &
enforce rules fairly & impartially & do so by
following all legal rules & regulations.
➲ Integrative Social contracts theory :
A view of ethics that proposes that
ethical decisions be based on existing
ethical norms in industries & communities in
order to determine what constitutes right or
wrong.
Code of ethics
➲ A code is a statement of policies,principles or
rules that guide behavior Certainly,code of
ethics do not apply only to business
enterprises,they should guide the behavior of
persons in all organizations & in everyday life.
Johnson & Johnson's Code of
Ethics
➲ “We believe our first responsibility is to the
doctors,nurses, & patients,to mothers & all
others who use our products & services.”
➲ We are responsible for our employees.
➲ We are responsible for our community.
➲ We must be a good citizens.
➲ We must maintain good order the property
we are privileged to use,protecting the
envnt. & natural resources.
CORPORATE SOCIAL
RESPONSIBLITY
➲ CSR is about how companies manage the
business processes to produce an overall
positive impact on society.
➲ CSR is the obligation towards society
assumed by business.
Views of CSR
➲ Classical view.
➲ Socio – economic view
Pyramid of CSR
➲ Economic responsibility – are to produce
goods & services that society wants at a price
that perpetuates the business & satisfies its
obligations to investors.
“ Be Profitable. “
“ The foundation upon which all others rest.”
➲ Legal responsibility – to obey local,state,federal
& relevant international laws.
“ Obey the law. Law is society's codification of
right & wrong. Play by the rules of the game.
Pyramid of CSR
➲ Ethical responsibilities - Meeting other social
expectations, not written as laws.
“ Be ethical . Obligation to do what is right,fair &
just. Avoid harm.”
➲ Voluntary responsibilities – Additional behaviors
& activities that society finds desirable & that
the values of the business support.
“ Be good corporate citizen. Contribute resources
to the community improve quality of life.