You are on page 1of 34

BAB 1

ETHICS AND BUSINESS


WHAT IS ETHICS?
WHAT IS ETHICS?
n Is the principles of conduct governing an
individual or a group
n Is a Morality
a standards that an individual or a group has
about what is right and wrong, or good and evil
n Moral standards include norms we have about
kinds of actions we believe are morally right and
wrong as well as the values we place on the
kinds of objects we believe are morally good and
morally bad
n Is The study of morality
WHERE DO THESE STANDARDS
COME FROM?
Sources of Ethical Norms

Regions of
Fellow Workers Fellow Workers
Country

Family Profession
The Individual
Conscience
Friends Employer

The Law Religious


Society at Large
Beliefs
MORAL STANDARDS
VS NON MORAL STANDARDS
MORAL STANDARDS:
THE NORM ABOUT KINDS OF ACTIONS
BELIEVED TO MORALLY RIGHT AND WRONG
AS WELL AS THE VALUES PLACED ON THE
KINDS OF OBJECTS BELIEVED TO BE
MORALLY GOOD AND MORALLY BAD

NON MORAL STANDARDS:


THE STANDARDS BY WHICH WE JUDGE WHAT
IS GOOD OR BAD AND RIGHT OR WRONG IN
A NONMORAL WAY
MORAL STANDARS VS
NON MORAL STANDARDS
Examples of non moral standards:
n The standards of etiquette as good or
bad
n The standards of law legal right or
wrong
n The standards of language
grammatically right or wrong
n The standards of aesthetics (for art)
good or bad
n The standards of athletic (for game)
how well the game being played
CHARACTERISTICS OF MORAL
STANDARDS
n Deal with serious injuries or benefit
human beings
n Not established or changed by the
decision of particular authoritative bodies
n Preferred to other values including self
interest
n Based on impartial consideration
universal
n Associated with special emotions and a
special vocabulary
Three Key Branches of Ethics
(De George 1999)
n Descriptive ethics involves describing,
characterizing and studying morality
n What is
n Normative ethics involves supplying and
justifying moral systems
n What should be
n Metaethics/analytical ethics involves
studies the logic of moral reasoning
n Why should
BUSINESS ETHICS
n comprises principles and standards
that guide behavior in the world of
business.
n Is a study of moral standards and
how these apply to the social
systems and organization of business
Levels at Which Business Ethical
Issues May Be Addressed
n Systemic
Are ethical questions raised about the
economic, political, legal, and other social
system or institution within which business
operate
n Corporate
Are ethical questions raised about a particular
organization.
n Individual
Are ethical questions raised about a particular
individual or particular individual within a
company and their behaviors and decisions.
APPLYING ETHICS TO
CORPORATE ORGANIZATION

CAN MORAL NOTIONS LIKE


RESPONSIBILITY, WRONGDOING, AND
OBLIGATION BE APPLIED TO GROUP
SUCH AS CORPORATION?
OR
ARE INDIVIDUAL PEOPLE THE ONLY REAL
MORAL AGENTS?
Why study business ethics?
Why study business ethics?
n Societys evaluation of right or wrong
affects its ability to achieve its
business goals.
n Individual ethics is not enough.
n Studying business ethics helps identify
ethical issues to key stakeholders.
BUSINESS ETHICS AND ITS
ISSUES
n BUSINESS ETHICS AND CULTURAL
DIFFERENCES
ETHICAL RELATIVISM
n BUSINESS ETHICS AND TECHNOLOGY

Risk of technology
the nature of the right to property
nanotechnology
genetic engineering
TYPES OF ISSUES
(Fritzsche):
1. BRIBERY : Penyuapan
2. COERCION: Pemaksaan
3. DECEPTION: Penipuan
4. THEFT: Pencurian
5. UNFAIR DISCRIMINATION: Perlakuan
Tdk Fair
PERSONAL ETHICS

STAGE OF MORAL DEVELOPMENT


Developing Moral Judgment

6-22
MORAL REASONING
Refers to the reasoning process by
which human behaviors, institutions,
or policies are judged to be in
accordance with or in violation of
moral standards
THE COMPONENTS OF MORAL
REASONING
n An understanding of what reasonable
moral standards require, prohibit, value,
or condemn
n Evidence or information that shows that a
particular person, policy, institution, or
behavior, has the kinds of features that
these moral standards require, prohibit,
value, or condemn
ANALYZING MORAL REASONING
n Moral reasoning must be logical
n The evidence cited in support of persons
judgment must be accurate, relevant, and
complete
n Must be consistent with each other and
with the other standards
ORGANIZATIONAL TRAITS
ORGANIZATIONAL CLIMATE
n Ethical Climate: self interest, company
interest, efficiency, friendship, team
interest, social responsibility, personal
morality, rules and operating
procedures, laws and profesional codes
ORGANIZATIONAL GOALS
n Policy

n Reward Structure
Improving Ethical Climate

Ethics Programs Effective


Communication Ethics Audit
& Officers

Realistic
Objectives
Top
Management Ethics Training
Leadership
Ethical Decision-
making Processes

Codes of Discipline of Whistle-blowing


Conduct Violators Mechanisms
(Hotlines)
THE IMPORTANCE OF
ETHICS IN BUSINESS
PROs AND CONTRAs OF
BUSINESS ETHICS
n Pro:
n Contra:
Relationship of Business Ethics
to Performance
n Customers, employees, and investors
are major concerns for firms that want
to develop loyalty and competitive
advantage.
n Goals are to increase customer dependence
on the company and to provide products in
an environment of mutual respect and
perceived fairness.
n This focus creates satisfying relationships
with employees.
n It also supports relationships with
investors based on trust, dependability, and
commitment.
Ethics Contributes to Employee
Commitment
n Employee commitment comes from
employees who believe their future is tied to
that of the organization and their willingness
to make personal sacrifices for the
organization.
n The more dedication on the part of the
company, the greater the employee
dedication.
n Concerns include a safe work environment,
competitive salaries and benefit packages, and
fulfillment of contractual obligations.
Ethics Contributes to Investor
Loyalty
n Companies perceived by their employees
as having a high level of honesty and
integrity are more profitable than
companies with a low level of honesty and
integrity.
n Ethical climates in organizations provide a
platform for:
n efficiency
n productivity
n profitability
Ethics Contributes to Customer
Satisfaction
n Consumers respond positively to socially
concerned businesses.
n Being good can be extremely profitable.
n Customer satisfaction dictates
business success.
n A strong organizational ethical climate
often places the customers interests first.
n Research shows a strong relationship
between ethical behavior and customer
satisfaction.
Ethics Contributes to Profits
n Corporate concern for ethical conduct is
increasingly being integrated with
strategic planning to maximize
profitability.
n Corporate citizenship is positively
associated with:
n return on investment and assets
n sales growth
n Many studies have found a positive
relationship between citizenship and
performance.
MENGAPA MASIH TERJADI PELANGGARAN??
Factors Influencing Unethical
Behavior
n Behavior of superiors
n Ethical practices of ones industry or profession
n Behavior of ones peers in the organization
n Formal organizational policy (or lack of one)
n Personal financial need
Pembenaran Terhadap Tindakan
Tidak Etis
1 5
The basic (hygiene) needs are
The values outside is not met or the basic salary is
incompatible with the values
not enough, so
inside
2 6

Bribery has always been there Just a small amount of money


Its a culture anyway

3 7
Given this hard competitive
situation, if I have to win the
Everyone does it anyway
business, what choice do I
have?
4 8
If you want to do business But I dont do it myself, I
successfully here, you have to have someone else who
handles it for me
Ethics and the Law
n Law often represents an ethical minimum
n Ethics often represents a standard that
exceeds the legal minimum
Frequent Overlap

Ethics Law

You might also like