Post on 07-Jul-2018
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Unit – 1
Introduction
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Topics
1. Defnition & nature o business ethics
2. Characteristics o business ethics
3. Ethical theories
4. Causes o unethical behaior
!. "or# ethics$. Code o conduct
%. ublic 'ood.
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1. Defnition & (ature
Ethics deried ro) *Ethos+ – character or custo)s oraccepted behaiors
,-ord dictionar *Ethics – the )oral principle that'oerns a person/s behaior or ho0 an actiit isconducted+
Ethics reers to 0ell –ounded standards o ri'ht and0ron' that prescribe 0hat hu)ans ou'ht to dousuall in ter)s o ri'hts obli'ations benefts tosociet airness or specifc irtues
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Contd
Usin' ethical standards a person or a 'roup o personor an or'aniation re'ulate their behaior todistin'uish bet0een 0hat is ri'ht and 0hat is 0ron' aperceied b others
(ot natural science but creation o hu)an )ind
(ot absolute and open to the inuence o ti)e place& situation
E' 5in's leaders – ood testin'
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6usiness Ethics
6usiness ethics is a or) o applied ethics –application o )oral or ethical nor)s to business
7eers to the code o conduct 0hich business)en aree-pected to ollo0 0hile dealin' 0ith others
Co)prises the principles & standards that 'uidebehaior in the conduct o business
6usiness – )a-i)ie proft a'ainst the need o sta#eholders
8aintainin' balance re9uires trade o:s 0here ethicsplas an i)portant role
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;cope o 6usiness Ethics
1. Ethics in Co)pliance – about obein' to rules &re'ulations
2. Ethics in
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Characteristics o 6usiness Ethics
i. = discipline
ii. =ncient concept
iii. ersonal Di'nit
i. 7elated to hu)an aspect
. ;tud o 'oals and )eansi. Di:erent ro) social responsibilit
ii. >reater than la0
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Causes o Unethical 6ehaiou
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"hat is unethical behaior?
=n behaior prohibited b la0 is unethical
Can be defned as one that is not )orallhonorable or that is prohibited b la0
=ctiities include @ corruption )ail and 0ireraud discri)ination and harass)ent insider
tradin' conicts o interest i)proper use oco)pan assets briber and #ic#bac#sco)pliance procedures ethical relations 0ithothers disciplinar action raud ille'albusiness donations patent inrin'e)ent and
product liabilit
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Unethical 6ehaiour
1. its & #ic#bac#s
4. Conict o interest
!. Unethical practices in healthcare
$. Insider tradin'
%. Discri)ination & harass)ent
A. "ron' doin'
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Causes o Unethical 6ehaiour
ressure to )eet unrealistic business
obBecties & deadlines
Desire to urther one/s career
To protect one/s lielihood
ob pressure
I'norance about unethical behaior
Corporate co)petitie adanta'e
ac# o consistent leadership
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5inds o Unethical 6ehaior inbusiness
Thet
endor relationships
6endin' the rules
Eniron)ental issues
"a'es & 0or#in' conditions
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"or# Ethics
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Introduction
"or# ethics – based on hard 0or# anddili'ence
=lso a belie in the )oral beneft o 0or# & itsabilit to enhance character
Ethical 0or#ers – 'ro0 aster
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Characteristics o "or# Ethics
7eliabilit
Dedication
roductiit
Cooperation
Character
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Code o Conduct
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Introduction
contains standards o business conduct that
'uide actions Includes
1. Co)pan alues
2. =oidance o conict o interest
3. =ccurate & ti)el disclosure o reports
4. Co)pliance o la0s rules & re'ulations
!. 8aintainin' confdentialit
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Continued
$. 8aintainin' air deals
%. ;tandards o business conduct or co)pan/scusto)er suppliers co))unities
A. rohibition o senior )ana'e)ent ro) ta#in'
corporate opportunities or their a)il
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E-a)ple
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ublic >ood
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Introduction
The beneft or 0ell bein' o public
Eer or'aniation dee)s to )aintain itspublic 'ood
ublic 'ood is directl associated 0ith the
or'aniation/s i)a'e
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I)portance
=ttractin' & retainin' talent Inestor loalt
Custo)er satisaction
7e'ulators
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Ethical Theories
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Introduction
6ased on ethical principles Each e)phasie di:erent aspects o ethical
dile))a and lead to correct resolution
eople choose ethical theor based on
e-periences
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Deontolo' Theor
;tates that *eople should adhere to theirobli'ations & duties 0hen analin' ethicaldile))a+
8eans that a person 0ill ollo0 hisFherobli'ations to another indiidual or societ
because upholdin' one/s dut is consideredethicall correct
Deontolo'ist 0ill #eep his pro)ises to hisriend as 0ell as ollo0 the la0
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Contd
"ill produce consistent decisions as the arebased on duties
roides the basis or special duties &obli'ations to specifc people
E' a)il – brother protectin' sister =lso praises those 0ho e-ceed duties and
obli'ations – *superero'ation+
E' Train hiBac# – one person scarifes or all
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Contd
"ea#nesses (o rationale or lo'ic in decidin' indiidual/s
duties
= person/s dut is conictin' in situations –
)eetin' s speedin' Does not 0or# in conictin' obli'ations
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Utilitarianis)
6ased on the abilit to predict theconse9uences o an action
Choice that ields the 'reatest beneft to )ostpeople is ethicall correct
Utilitarian can co)pare solutions and choose &deter)ine 0hich is )ore benefcial
roides a lo'ical and rationale ar'u)ent oreach decision
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Contd
T0o tpes
1. =ct utilitarianis)
2. 7ule utilitarianis)
.=ct – person peror)s the act that benefts)ost people re'ardless o personal eelin's &
societ.7ule – considers la0 and airness
.7ule utilitarian – benefts )ost people in air &b la0
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Contd
alues Bustice & benefcence at the sa)e ti)e
6oth rule & act are a0ed
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Contd
Does not allo0 superero'ation =n indiiduals ri'hts )abe inrin'ed or the
beneft o a lar'er people – act utilitarianis)
ossibilit o conictin' rules in rule
utilitarianis)
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7i'hts Theor
7i'hts set orth b societ are protected &'ien hi'hest priorit
Considered ethicall correct because lar'epopulation endorses the)
E' car borro0in' scenario 8aBor co)plication – one )ust decipher the
characteristics o ri'hts in societ
;ociet decides 0hat is ri'hts to the citien
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Contd
Thereore 0or#s in conBunction 0ith anotherethical theor that e-plains the 'oals o thesociet
E' 7eli'ious reedo) in =)erica s (ai
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Casuist Theor
Co)pares current ethical dile))as 0ithsi)ilar ethical situations
=llo0s to deter)ine the seerit o thesituation & create best possible solutions
Dra0bac# – no set e-a)ple or situations =ssu)es si)ilar results or eer situations
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irtue Theor
ud'es a person b his character rather thanb action that deiates ro) nor)al
Ta#es into account person/s )oralsreputation )otiation
E' la'iaris) "ea#ness – does not consider person/s chan'
in )oral character
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End o Unit @