Group Members:

Sana Merchant
Sanjay Nagda

Overview..
Ethics is the study of questions of morality, the search to

understand what is right, wrong, good, and bad. It is the branch of philosophy that systematically studies moral ideals and goals, motives of choice, and patterns of good and bad conduct. Business Ethics can be described as the rules of a game or practices in a limited domain. Business ethics also reflects the philosophy of business, one of whose aims is to determine the fundamental purposes of a company. For eg: If a company's purpose is to maximize shareholder returns, then sacrificing profits to other concerns is a violation of its fiduciary responsibility.

Overview..
Overview of ethics is said to be normative, as it

assumes the existence of at least some universal moral principles and standards. Business educators try to help companies, employees, and professionals avoid expensive and counterproductive ethical misdeeds. However, the study of normative ethics has historically been dominated by philosophers, who have applied rules of reason and logic to find answers to moral questions arised out in business.

Overview..
Ethical issues include the rights and duties between a

company and its employees, suppliers, customers and its fiduciary responsibility to its shareholders. Issues concerning relations between different companies include hostile take-overs and industrial espionage. Related issues include corporate governance; corporate social entrepreneurship; political contributions and the marketing of corporations' ethics policies

Culture
Culture is an organized group of ideas, habits and

conditioned responding shared by members of a society. Culture is also the way of life of a particular society or group of people, including patterns of thought, beliefs, behavior, customs, traditions, rituals, dress, and language, as well as art, music, and literature.

Organization Culture
The set of shared values, norms, standards for behavior, and shared expectations that influence the way in which individuals, groups, and teams interact with each other and cooperate to achieve organizational goals. Purpose of Culture in an Organization: To help integrate organizational members so that they know how to relate and work together effectively. To help the organization to best adapt to its mission and to its environment.

How Leaders Shape Culture

By what they do.
The examples they set The types of people they hire

By what they say.

Formal policies, codes of ethics, etc.

By what the organization does.

Ethical training, ethics committees

Inter- relationship
Business Ethics is defined as standards of moral behavior that relate to

corporate situations. Business Culture relate to the values, norms, and mores practiced by a group that constitute a way of living or practicing business. Interrelationship based on definitions are: Scope - Business ethics would certainly form a part of an organization's culture. However, not all business cultures would necessarily have a provision for ethical conduct. Business culture is far broader than business ethics. Behavioral expectations - Both business ethics and culture lead to expected conduct or behavior of people. Legal Aspects- Because business ethics suggest standards, it is often aligned with legal aspects. Thus, if you violate ethical principles there could be legal ramifications. And on a cultural aspect the consequences may not be as drastic.

Importance of Ethics on Organization Culture

Benefits of managing ethics in workplace are:
It improves the society Help leaders and members of an organization in

respect of how they have to act. Creates a strong team wrok and employee growth. Promotes a strong public image.

Impact Of Culture On Ethics

A study conducted by National business ethics survey conducted by the ethics resources center found out that: The strength of culture influences an organizations ethical climate and the ethical behavior of its members. When there is strong ethical cultures, employees feel engaged and committed

to the company and the company is protected from the risks associated with misconduct and lurking ethics issues. Efforts to promote ethics and develop a strong ethical culture are not only the right thing to dothey make business sense because in stronger ethical cultures: Fewer employees feel pressure to compromise company standards; Fewer employees observe misconduct and there are fewer incidences of every kind of misconduct; Employees who observe misconduct are more likely to report it; and Reporters are less likely to experience retaliation.

Example of Poor Ethics and Culture

Enron Corp which in Dec, 2001 became the largest ever

US bankruptcy did not fail solely because of improper accounting practices, but also due to culture that pushed them into unethical behaviour. Instead of rewarding new ideas the company encouraged unethical corner cutting There was a yes mam culture among executives.