【max scheler】formalism in ethics and non-formal ethics in values
Ethics in operation
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Transcript of Ethics in operation
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BUSINESS ETHICS INPRODUCTION
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INTRODUCTION
Ethics-is the branch of philosophy concerned with the rules of humbehaviour.It considers what is right and wrong and examines how moral
and values are created and evolve.
Business ethics-The study and establishment of moral and socialresponsibility in relation to business practices and decision making in
Setting ethical objectives is therefore a process by which organizationethical values to their targets and establish basic principles about theibehaviour in achieving these targets.
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Ethics in production and operation
Itis a subset of business ethic that is meant to ensure that the productionactivities are not damaging to the consumer or the society.
Like other ethics there is a certain code of conduct or standards to be fol
In order to survive in the competitive sphere organizations try to reduce thinvolved in production processes.
This cost efficiency is sometimes achieved at the cost of quality, Poor pro
technology is used to keep the cost down This is especially true for small players who cannot afford economies of s
Industry giants that compromised on certain production processes, cola coup for a good example.
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Factors Affecting Ethics In Operatio
Major factors which have to be considered in production and operatioare
Technology used or process involved
Products manufactured or service offered testing or experimentation
environment that lead to pollution, global warming, increase in waterand diminishing natural resources.
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Ethical practices in procurement
How to establish ethical procurement practices? Purchasing code of conduct
Integrate ethical purchasing to the existing management
Rewards and reviews
Top management and support Business environment and culture
Training to employees and staff
Ethical audits-Surprise visits to factories,
warehouses
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PRODUCTION:-
The processes and methods employed totransform tangible inputs (raw materials, semifinished goods, or subassemblies) and intangible inp
(ideas, information, knowledge )into goods or servi
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Ethical Objectives
Ethical values cover all aspects of business
conduct. This includes:
corporate strategies.
treatment of employees.
treatment of suppliers.
sales and accounting practices
Most activities of business have some ethical
features.
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Strategic Questions & Ethical Issues
Is it ethical to reduce costs by exploiting cheaperresources in less economically developed countries?Eg: large Western MNCs have been accused of using
child labour in some of their overseas factories.
Is it ethical to sell products that are legal, but known tharm those who use them? Eg: tobacco.
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Strategic Questions & Ethical Issu
Is it ethical to target young children with advertisingmessages?
Is it ethical to manufacture products that are used to ki
The arms industry?
Is it ethical to look for loopholes in the law to avoid patax?
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Individual Behaviour and
Ethical QuestionsExamples of questions about individual
behaviour which contribute to the overall ethical
approach of an organization include:
How do I manage my team?
Should I massage the truth?
Can I ever justify being disrespectful when selling products or services to mcustomers?
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Ethical issues related to worker:-
Working environment
Odd jobs
Proper work study
Proper incentives
Safety issues
Training program
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Effects on Human Health
Respiratory DisordersIrritation to the lungs, causing coughing andshortness of breathing. Higher exposure caused build up of fluids (pedema). Caused Asthma.
Cancer HazardCaused mutation (genetic changes). It caused cance
Reproductive HazardAssociation between exposure to Methyl Isocand miscarriages. It may damage the growing fetus.May also affect fermen and women.
Traces of many toxins were found in the Brest Milk of mothers and intern transmitted to the recipient babies.
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Ethical Issues related to packaging:
a) Label information
b) Packaging graphics
c) Packaging safetyd) Environmental issues
e) Amount of packaging material used
f) Disposal
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Y EMPLOYEES
ARE FIRED ???????
Being Dishonest Being Unreliable Abusing & Using Alcohol Bossing Others
Not taking the responsibility Not following the proper code of
conduct
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ADVANTAGES OF ETHICS
Attention to business ethics has substantially improved society
Ethics programs help maintain a moral course in turbulent times
Ethics programs cultivate strong teamwork and productivity
Ethics programs support employee growth and meaning
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CONTDDDD
Ethics programs are an insurance policythey help ensure that polegal
Ethics programs help avoid criminal acts of omission and can low
Ethics programs help manage values associated with quality managestrategic planning and diversity management
Ethics programs promote a strong public image
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REASONS BEHIND MAINTAINING HIGH ESTANDARDS
Improved employee and organizational morale
Increased ability to attract new customers
Improved customer loyalty
Reduced risk of negative exposure and public backlash caused by poor eth
Attraction of new stakeholders
Making a positive impact on the community
Business ethics offer companies a competitive advantage
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DISADVANTAGES OF ETHICS
Business ethics reduce a company's freedom to maximize its profit.
For example, a multinational company may move its manufacturing fa developing country to reduce costs. Practices acceptable in that cousuch as child labor, poor health and safety, poverty-level wages and c
employment, will not be tolerated by an ethical company.
Less Revenue
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CONTDDDD.
Personal Gain: Some employees may use the conducts as a way to usesuite against the company for any minor misbehavior.
Expanding the problem: If for instance the ethical problem is not woa verbal warning or suspension would do. The code of ethics within a
may be used to expand the problem further than it should be which is of time, money and sometimes employees may leave.
H l h d S f f E l
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Health and Safety of EmployeesOccupational Safety and Health Administration (OSHA) responsibility
1. Researching, Identifying and determining workplace health hazards
2. Setting safety and health standards3. Enforcing the standards
According to OSHA safety standards, employers are obliged to provide informfollowing:
1. Risks and Health hazards related to work
2. Products and environment exposed to those risks
3. Health insurance program
4. Benefits to employees exposed to workplace hazards
Family and Medical Leave Act (FMLA)
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LABOUR LAWS
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Sections 11 to 20 of the Act deal with the provisions of health of workers in factory
Sec 11Cleanliness
Sec 12Disposal of wastes and effluents
Sec 13Ventilation and Temperature
Sec 14Dust and Fumes
Sec 18Drinking Water
Sec 19Latrines and urinals
Sec 20Spittoons
PROVISIONS OF HE LTH OF WORKER
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Sections 22 to 41
Sec 22Work on or near machinery in motion
Sec 29Lifting machines, chains, ropes and lifting tackles
Sec 32Floors, stairs and means of access
Sec 36Precautions against dangerous fumes, gases etc and use of porta
Sec 38Precautions in case of fire
Sec 40Safety of buildings and machinery/(A &B) SAFETY OFFICER
Sec 41Power to make rules to supplement the provisions.
PROVISIONS OF SAFETY TO THE WORK
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CORPORATE SOCIAL
RESPONSIBILITY (CSR)
CSR is an umbrella term under which the ethical rights and duties exbetween companies and society are examined.
There is a distinct crossover between ethics and CSR, since CSR is oabout doing ethical things.
In both cases the business attempts to maximize its positive impactsstakeholders and society and minimize its negative impacts
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What is the difference
between ethics and CSR?
Ethics are the concerns of individual managers and employees.
CSR is a concern of the entire organization.
Legal Issues and CSRAll organizations will need to comply with the legal requirements in day to doperations, but CSR means going beyond these legal duties and accepting thfunction of a business is not just making profit for its shareholders.
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Sweatshops: Are Companies Willing to Sol
Problem?
Employees are exploitedto the core by denying them their due human
Rampant in developing countries
Big brandsturn a blind eye to the problem
Notoriously famous in industries like footwear, apparel and electronics
Race to the Bottom Large no of contractors and sub contractors imanufacturing chainaim absolute lowest cost.
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Large retailers likeWal-Mart and TargetLow price strategy
Outsourcing is profitable not only because of cost factor but also becauscompliance to CSR and Local laws.
Acc to Investor Responsibility Research Centre, only 4% of S&P 500 comoverlook if their suppliers address issues like child labor, forced labor and
discrimination.
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Currently 3 Major groups oversee factory inspections to monitor sweatsho
SAI(Social Accountability International)
FLA(Fair Labor Association)
ETI(Ethical Trading Initiative)
But all of them follow different methodologies and measures to combat sw
Because of this Wal-Mart says it does self-monitoring
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30 month experiment called the Initiative on Corporate AccountabilityRights
To devise a single set of labor standardswith a common factory-inspesystem.
Only about 100 large, mostly Western companies actively involved in the amovement.
Unfair for those companies adopting anti-sweatshop initiatives to competenot adopting it.
Business Standard: An iPhone Tester Caught in Apple's Supply Cha
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Thank You