Post on 15-Jul-2015
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Business EthicsLecture # 1
Aisha Malik
5/13/2018 Business Ethics Lecture # 1 - slidepdf.com
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Course Administration
Consultation Method:
Best through e-mail address : aishanoor@gmail.com
OR
After/bef ore lectures on lecture day ( if available)
OR Announced Timings in case of Reports, exams papersdiscussions.
Marks Distribution:
Mid-Term Exam ± 25
Assignments & Quiz ± 10 Presentation & report - 15
Finals - 50
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Course Administration
RULES Assignments & project should be handed in by the due
date in class.
University policies on Regularity, cheating , plagiarism
and academic misconduct apply to this course. Avoid coming late to the class, not appreciated at all.
Three Late¶s will be marked as 1 absence.
Class participation is a must.
Overall positive class attitude is a requirement.
Exams ± Questions will be f ormulated in a way to examine both theoretical and conceptual thinking.
Assignments can be case studies based, reports orresearch work. Will be decided in the up coming classes.
Focus will be topics rather than on any chapters.
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Text & References
³Business Ethics³, by Joseph W. Weiss .
³ Perspective in Business Ethics´ by Luara
Hartman
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What is Ethics ?
Ethics is a set of moral principles or values which isconcerned with the righteousness or wrongness of human behavior and which guides your conduct inrelation to others (for individuals and
organizations).
Ethics is the activity of examining the moralstandards of a society, and asking how these
standards apply to our lives and whether thesestandards are reasonable or unreasonable, that is,whether they are supported by good reasons orpoor ones.
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What is Business Ethics?
Moral conduct is behavior that is right or wrong
A specialized study of moral right and wrong. Itconcentrates on moral standards as they applyparticularly to business policies, institutions, andbehavior.
Business Ethics guide people in dealings withstakeholders and others, to determine appropriateactions.
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Why do we need to study Business
Ethics? Ethical motivation:
Balance the needs and wishes of stakeholders:
Global challenges: Ethical pay-off:
Employee Retention:
Preventing civil lawsuits
Market Leadership:
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Stakeholders
The
Firm
Employee
s
Local
communities
Customer
s
Distributor
s
Creditors Suppliers
Shareholders
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Ethical Rights of Stakeholders
Shareholders ± right to timely and accurate information
about their investments
Customers ± right to be fully informed about the products
and services they purchase
Employees ± right to safe working conditions, fair
compensation, and to be treated in a just manner
Suppliers ± right to expect contracts to be respected
Competitors ± right to expect that a firm will abide by the
rules of competition and not violate antitrust laws
Communities ± right to expect companies will not violate
the basic expectations of society
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Ethical OriginsEthical Origins
It is difficult to know when a decision isethical. Below is to find out:
Managerial ethics:
If a manager makes a decision falling withinusual standards, is willing to personallycommunicate the decision to stakeholders,and believes they would approve, then it islikely an ethical decision.
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Ethical OriginsEthical Origins
Societal Ethics: standards that members of society use when dealing with each other.
Based on values and standards found insociety¶s legal rules, norm, and mores.
C odified in the form of law and societycustoms.
Norms dictate how people should behave.
Societal ethics vary based on a given society.
Strong beliefs in one country may differelsewhere.
Example: bribes are an accepted businesspractice in some countries.
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Ethical OriginsEthical Origins
P rofessional ethics: values and standards usedby groups of managers in the workplace.
Applied when decisions are not clear-cutethically.
Example: physicians and lawyers haveprofessional associations that enforce these.
I ndividual ethics: values of an individual
resulting from their family& upbringing. If behavior is not illegal, people will often
disagree on if it is ethical.
Ethics of top managers set the tone for firms.
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Ethical ModelsEthical Models
Social Ethics:
Legal rules, customs
Pr of essional Ethics:Pr of essional Ethics:
Values in workplaceValues in workplaceIndividual Ethics:Individual Ethics:
Family inf luenceFamily inf luence
Organization¶sOrganization¶s
Code of EthicsCode of Ethics
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Inventor y of Ethical Issues in Business
Employee-Employer Relations
Employer-Employee Relations
Company-Customer Relations Company-Shareholder Relations
Company-Community/Public Interest
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Ethics and the Law
Law often represents an ethical minimum
Ethics often represents a standard that
exceeds the legal minimum
Ethics Law
Frequent Overlap
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Making Ethical Judgments
Behavior or act
that has been
committed
Prevailing norms
of acceptability
Value judgments
and perceptions of the observer
compared with
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Ethics, Economics, and Law
6-14
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Four Important Ethical Questions
What is?
What ought to be?
How to we get from what is to what ought to
be?
What is our motivation for acting ethically?
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3 Models of Management Ethics
1. Immoral Management²A style devoid of
ethical principles and active opposition to
what is ethical.
2. Moral Management²Conforms to highstandards of ethical behavior.
3. Amoral Management
I
ntentional - does not consider ethical factors Unintentional - casual or careless about ethical
considerations in business
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3 Models of Management Ethics
Three Types Of Management Ethics
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Three Approaches to Management Ethics
6-18
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ThreeModels of Management
Morality and Emphasis on CSR
6-19
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Moral ManagementModels and
Acceptable Stakeholder T
hinking
6-20
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MakingMoral Management
ActionableImportant Factors
Senior management
Ethics training
Self-analysis
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DevelopingMoral Judgment
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DevelopingMoral Judgment
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DevelopingMoral Judgment
External Sources of a
Manager¶s Values Religious values
Philosophical values
Cultural values
Legal values
Professional values
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DevelopingMoral Judgment
Internal Sources of a Manager¶s
Values
Respect for the authority structure Loyalty
Conformity
Performance
Results
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Elements of Moral Judgment
Moral imagination
Moral identification and ordering
Moral evaluation
Tolerance of moral disagreement andambiguity
Integration of managerial and moralcompetence
A sense of moral obligation
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Elements of Moral Judgment
Amoral Managers Moral Managers
Moral Imagination
Moral IdentificationMoral Evaluation
Tolerance of Moral Disagreement
and Ambiguity
Integration of Managerial and MoralCompetence
A Senses of Moral Obligation