Meaning of Ethics

Character of a man

Decided by

Conduct of a person

Leads to

Series of Actions

Taken together Considered As

Good or Bad, Right or wrong, Moral or Immoral

By which we can Judge again Moral Standards

Known as Moral Judgement

Requires

Theme: Business Ethics

Ethics

Refers to issues of right, wrong, fairness, and justice.

Business Ethics

Focuses on ethical issues that arise in the commercial realm.

Views on relationship between Business & Ethics

Unitarian View: Business & morality cannot be separated and it must play by the rules of ethics of the community.

Moral Structure

Business

Moral Ethics

Ethics: What Does It Really Mean???

Derived from Greek word Ethicos meaning Character or Manners
Science of character of a person expressed as right or wrong conduct or action. Set of moral principles prescribing code, explains what is good and right, or bad and wrong.

1. What is business social responsibility?

Business social responsibility: This refers to the obligation that every business has to respect the interests of all its stakeholders. Business ethics: This refers to the moral rules that should guide people working in business. It helps people in business to decide whether a decision is right or wrong regardless of whether it is profitable or not.

1. Promoting ethical awareness and sensitivity

3. What are the characteristics of a socially responsible business?

among staff This can be achieved through developing an ethical code for the firm. An ethical code is a document setting out

In some businesses this code forms part of the employment contract. Breaking the code of ethics can provide legally acceptable grounds for a dismissal from a job.

guidelines for employees when making decisions

When new staff members join a new company the code of ethics should clearly be communicated in the induction process. Quiet reminders (in newsletters, meetings, notice boards) is an effective way of promoting the necessity to adhere to the standard of practices. This positive ethical promotion of business practices can be recognised by top management through rewards for staff members. Examples: bonus pay, promotion

2. Promoting Openness with stakeholders

Social responsibility
Employees No discrimination/harassment Fair wages & promotion system Safe work conditions
Open and honest financial information No dishonest business practices No excessive salaries / perks paid to top management (FAS officials 2008)

Investors

Society

Promote local produce to sustain local jobs Promote green products to protect environment

Social responsibility Suppliers Pay bills on time Honour contracts Fair negotiations Customers Truthful and accurate advertising Products that are safe and reliable Complaints must be dealt with speedily Govt Pay correct tax measures Grants given should be used for correct purpose Local, national and EU law obeyed

4. What are the important environmental issues facing business?

1. OZONE DEPLETION Causing skin cancer and damage to growth of crops 2. CLIMATE CHANGE fossil fuels such as oil & gas are increasing global temperatures. This will affect weather patterns such as melting of ice caps, floods, storms & droughts. NOTE: DEC 2009 severe floods in many regions JAN 2010 4 Weeks of arctic like conditions 3. AIR POLLUTION emissions from factories, vehicles are releasing cancer causing chemicals into the atmosphere. Acid rain (car exhausts fumes and the burning of fossil fuels) mixed with rainwater is killing forests and lakes.

4.

WATER POLLUTION slurry from farmyards and materials from industries and households are dumped into rivers, lakes and seas. This can contaminate local drinking water and cause mass killing of fish. WASTE DISPOSAL industrial waste dumped on land or at sea will eventually end up contaminating the soil and water. Throwaway products are marketed for convenience with excess packaging which are filling up our landfill sites. This situation is not sustainable.

5.

6.

DESTRUCTION OF NATURAL RESOURCES destruction of our natural resources including natural habitats (forests, bogs, rivers, coast lines). This has lead to certain plant and animal life being extinct.

7. DWINDLING SUPPLIES OF FOSSIL FUELS Fossil fuels such as oil and gas are running out. These will be exhausted in the future decades unless they are conserved.

How green taxes work:

The more a firm pollutes

The less a firm pollutes

1. Higher green 2. Higher costs taxes imposed

1. Lower green taxes imposed

2. Lower costs

4. Fall in sales & profits

3. Less competitive prices

4. Rise in sales & profits

3. More competitive prices

Societys Expectations Versus Businesss Actual Social Performance

Societys Expectations of Business Performance

Social Performance: Expected and Actual

Social Problem

Social Problem

Businesss Actual Social Performance

1960s Time

2000s

14

Reference books
Business Ethics: An Indian Perspective by Prof. P.S. Bajaj

/ Dr. Raj Agrawal

Business Ethics: Text & cases by C.S.V. Murthy A Study in Business Ethics by Rituparna Raj Business Ethics concepts and cases by Manuel G.

Velasquez

Any quires!