ISBR Business Ethics

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BUSINESS ETHICS


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What is Ethics?

The values an individual uses to interpret whether anyparticular action or behavior is considered right orwrong.

Ethics is the branch of philosophy that

focuses on morality and the way in whichmoral principles are applied to everyday life. Ethics has to do with fundamental questions

such as

What is fair? What is just? What is the right thing to do in this situation?

Ethics involves an active process of applying

values, which may range from religiousprinciples to customs and traditions


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Business Ethics

Can be dened as the critical, structuredeamination of how people ! institutionsshould behave in the world of commerce."n particular, it involves eamining

appropriate constraints on the pursuit ofself#interest, or $for rms% prots, when theactions of individuals or rms a&ectsothers.

The study and examination of moral &social responsibility in relation to business

practices & decision- making in business


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We need to study business ethics toma2e better decisions for ourselves,

the businesses we wor2 for and the

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Moral

5"t is concerned with the principles ofright and wrong behaviour and the

goodness or badness of humancharacter.6


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Values are the rules by which we make decisions about right

and wrong, should and shouldn't, good and bad. They also tellus which are more or less important, which is useful when we

have to trade off meeting one value over another.

Values

Business is a fair exchange

of values


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7

8hilosophicalsystems

amily

riends

0he +aw

4egions ofCountry

8rofession

Employer

ociety at+arge

ellowWor2ers

4eligiousBeliefs

TheIndividual

Conscience

ources of Ethical /orms


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ETHICAL RESPONSIBILITIES

W1*0 "/+-E/CE E01"C*+ BE1*9"(4?

+evels of moral development

+evel one: preconventional

+evel two: conventional

+evel three: principled


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LE!EL ONE" PRECON!ENTIONAL"

*n individual acts in her own best

interest and thus follows rules to

avoid punishment or receive rewards.

0his individual would brea2 moral

and legal laws.

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LE!EL T%O" CON!ENTIONAL"

*n individual conforms to the

epectations of others, such as

family, friends, employer, boss,

and society and upholds moral and

legal laws.

##


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LE!EL THREE" PRINCIPLE&"

*n individual lives by an internal set of

morals, values, and ethics. 0hese are

upheld regardless of punishments orma;ority opinion. 0he individual would

disobey orders, laws, and consequences

to follow what he believes is right.

#'


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Ethical dilemma

"s also 2nown as moral dilemma. Ethicaldilemma is any situation in whichguiding moral principles cannot

determine which course of action isright or wrong. 0o obey one action,would result in transgressing another.


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(uidelines for &ealing )i*hE*hical &ile++as

"s it legal?

"s it right?

"s it benecial? 0o whom? 1ow much?"s it harmful? 0o whom? 1ow much?


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(uidelines for &ealing )i*hE*hical &ile++as ,con*-.

Would you be willing to alloweveryone to do what you areconsidering?

Would you li2e your family to 2now?

Would you li2e your decision printed

in the newspaper?1ave you consulted others who are

ob;ective and 2nowledgeable?


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%his*le/Blo)ing

)enition:0he disclosure by an

employee of illegal,immoral, orillegitimatepractices by theorgani


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'anagerial values !attitudes

)iscrimination Equal opportunities, armative action, seual ! racial harassment

Employee privacy Electronic privacy and data protection

)ue process ! layo&s 8romotion, ring, disciplinary proceedings

Employee participation ! association (rganis decisions

Wor2ing conditions Wor2ing conditions, occupational health ! safety

Wor2 life balance air wages

reedom of conscience ! freedom of speech in wor2place Whistleblowing

0he right to wor2 air treatment in the interview, non discriminatory rules for recruitment

4elevant duties


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0odule '


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The utilitarian approach to ethical decision making focuses on

taking the action that will result in the greatest good for the greatest

number of people.

UTILITARIANISM[eremy !entham and ohn "tuart #ill$

0he utilitarian approach to ethical decision ma2ing focuses on ta2ing


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0he utilitarian approach to ethical decision ma2ing focuses on ta2ingthe action that will result in the greatest good for the greatestnumber of people. Considering our eample of employing low#wagewor2ers, under the utilitarian approach you would try to determinewhether using low#wage foreign wor2ers would result in the greatestgood.

"t>s pretty simple, the greatest good for the greatest /-'BE4 ofpeople requires you to do the thing that benets the most fol2s.

0his may not be the thing that brings about the greatest happinessoverall.

action is right if it tends to promote happinessand wrong if it tends

to produce the reverse of happiness

Utilitarianism focuses on acts that produce the greatest ratio of goodto evil for everyone:----

STRENGTH:

Forces thinking about the general welfare and stakeholders. Allows personal decisions to fit into the situation complexities.

WEAKNESS:

Ignores actions that may be inherently wrong.

May come into conflict with the idea of justice.

ifficult to formulate satisfactory rules for decision making.
http://www.britannica.com/eb/article?idxref=561298http://www.britannica.com/eb/article?idxref=561298


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The universalistapproach to ethical decision making is similar to

the %olden &ule.

UNIVERSALISM[Kants Theory]


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(ne should treat others as onewould li2e others to treat oneself

(r(ne should not treat others in waysthat one would not li2e to betreated.

!ni"ersalism is the belief that ideas andpractices can be applied e"erywhere

without modification.

if an action is right $or wrong% for

others, it is right $or wrong% for us.


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What are 4ights ?

&ight is an entitlement to something. person has a right when

that person is entitled to act in a certain way or is entitled to

have others act in a certain way towards him.


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0heory of 4ightsA4obert /o


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ustice

Justiceis a the duty to treat all fairlydistributing the ris2s and benets equally.


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Theory of ustice[!lame ohn and ohn &awls$

Greatest Lierty !rinci"le(ach person has an eual

right to basic rights and liberties.

#ocus is on outco$es re people getting what theydeserve-

Stren%th !asic premise The protection of those who

are least advantaged in society.

&riticis$s/oesn+t e0amine the costs of producing the

euality.


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9irtue

The uality of doing what is right and avoiding

what is wrong.


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Virtue ethics

Virtue ethics is an approach that deemphasi1es rules, conseuences and

particular acts and places the focus on the kind of person who is acting.

The issue is not primarily whether an intention is right, though that isimportant) nor is it primarily whether one is following the correct rule) nor is

it primarily

whether the conseuences of action are good, though these factors are not

irrelevant.


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man named &ahul considers whether or not tosteal a drug which he cannot afford to buy inorder to save the life of his mother.

&ahul predicament2difficult situation3. The mother+s disease.

The druggist+s refusal to lower his price.

"hould &ahul steal the drug-

The reason for and against stealing are thene0plored through a series of uestions that varyand e0tend the parameters of the dilemma in away design to reveal the underlying structure ofmoral thought.


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Ethics of care

This is a theory about what makes actions right or wrong. *t

emphasi1e universal standards and impartiality, ethics of care

emphasi1e the importance of relationships.


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+aw

law is as we know a government rule,

any written or positive rule or collection ofrules prescribed under the authorityof thestate or nation, as by the people in its constitution.


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4egal ethics encompasses an ethical code governing

the conduct of persons engaged in the practice of law

and persons more generally in the legal sector.

Legal e*hics


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4egal ethics encompasses an ethical code governing

the conduct of persons engaged in the practice of law

and persons more generally in the legal sector.

Legal e*hics


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ISBR Business Ethics

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