Research Paper on Ethics

8/8/2019 Research Paper on Ethics

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Ethics & Its Importance InModern Business Scenario

Prepared by;

Ashish kumar.R


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The word Business Ethics itself is a contradictory

one. In the era of global changes, sustainableexistence gets priority over short term gains. This

paper tries to highlight the pre-conditions of ethics

in a business unit and also the importance of

cultivating a culture of ethics in organization.


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The aim of the study is to understand Ethics & Its

Importance In Modern Business specific aspects to

be studied were ;

Factors Affecting Employee Ethics.

Is Ethics A Management Discipline.

Reasons For Not Being Ethical .

Obstacles In Ethical Conduct.


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In the initial phrase the data's are from secondary

sources.

The major sources are ;

Research journals and surveys.

Business magazines,

Internet


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Ethics

Basically ethics refer to the rules and principles that

define rights or wrong conduct. It also relate to the

social rules that influence people to be honest in

dealing with others.

Definition

Ethics is the study of moral obligations involving the

distinction between right and wrong.

R.M.Kidder


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Business Ethics

Business Ethics is generally coming to know, what is

right or wrong in the workplace and doing what is

right this regards to the effects of products or

services and in relationships with stake holders- CARTER MCNAMARA


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Business operations include variety of activities to be

carried out. These activities pertain to various issues in

the organization.

The process of decision making involved in these

activities faces tremendous challenges in the form of

dilemma.

The confusion of What is Acceptable & What should

be Acceptable leads to variety of dilemma in the mind

of persons connected with the business operations.


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Whether a person acts ethically or unethically when

faced with an ethical dilemma is the result of complex

interactions between:

1) Stage of moral development

2) Individual characteristics

3) Organizations structural design

4) Organizations culture

5) Intensity of ethical issue


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Moderators

Individual

CharacteristicsIssue Intensity

Structural VariablesOrganizational

Culture

Ethical

Dilemma

Stage of Moral

DevelopmentEthical

Unethical

Behavior


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There are three levels of moral development.

Pre-conventional At this level, persons choicebetween right and wrong is based on personalconsequences involved such as physical punishment,reward.

Conventional Indicates that moral values reside inmaintaining expected standards and living up to theexpectations of others.

Principled Individuals make a clear effort to definemoral principles apart from the authority of thegroups to which they belong or society in general.


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Every person joins an organization with a relatively entre-

nched set of values. Our values developed at young age

fromparents,teachers,friends-represent basic conviction

about what is right or wrong.Two personality variables

found to influence an individu-als action are:

EGO STRENGTH

LOCUS OF CONTROL


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Ego str

ength- is the personality measure of the strength of apersons convictions. Individuals high in ego strengths are

more likely to do what they think is right. People with high

ego strengths are more consistent in their moral judgments

and moral actions.

Locus of Control reflects the degree to which people believe

they control their own fate. People with internal LOC believethat they control their own fate and people with external

LOC believe that what happens to them is due to luck or

chance.


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An organizations structural design influences

whether employees behave ethically. Some structures

provide strong guidance, whereas others create

ambiguity and uncertainty.

Organizational mechanism that influence ethics

include performance appraisal systems and reward

allocations procedure.


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When employees are evaluated only on outcome they

may be pressured to do" whatever is necessary to

look good on outcome variables and not be

concerned with how they got results. The danger is

that if managers toke a more lenient view of

unethical behaviors for successful employees. other

employees will model their behavior.


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A organizational culture most likely to encourage high

ethical standards is one that is high in risk tolerance,

control and conflict tolerance.

Employees in such a culture are encouraged to be

aggressive and innovative, are aware that unethical

practices will be discovered and feel free to openly

challenge expectations they consider to be unrealistic or

personally undesirable.


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Ethics acts as the character of any business house. It is

very much essential for a business organization to

follow business ethics as the firm has to survive

with in the society.

Values like honesty, integrity, truthfulness, sincerity,

fairness and many others are very much required for

a business house to progress.

The reason for this is that the only way a business

house can build goodwill is by following ethics.


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In this scenario the entire world has turned into a Global

Market, it is important to every organization to follow

ethics.

If Profit is the Heart of a business house, Ethics are the

Veins keeping the heart going on.

Business houses, adopting such two faced principle seldom

succeed as they loose out on good ethics and principles,

thus resulting into a bad reputation.

A good well run business must have high and consistent

standards of ethics.


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Pressure from above:

Even if a subordinate feels that the work assigned to

him is unethical, he is compelled to do the work dueto pressure.

Ambiguous situations:

There is absence of clear-cut ethical guidelines due

to which, at times, managers are faced with the

situations that are ethically ambiguous.


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Comparative conceptual disparity:

Managers argue that the relationship between them and

the top management is such that they cannot question

the instructions issued to them.

Personal Benefits

If a person follows ethics, he faces monetary loss ascompared to not following ethics. This tempts the

person to adopt unethical means.


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Government Policies

The complicated and ambiguous government policy is yet

another reason why people develop unethical means like tax

evasion and bribery.

To reduce expenses

Ethical way results to higher expenses thus reducing the

business profits. As the main aim of starting a business house

is to earn profits, the reduction in expenses tempts the

business house to adopt unethical means.


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Lack of management support

Even though an employee wishes to be ethical, he may

not do that as the higher authorities do not permit him to

do so.

Company politics

To survive the internal company politics, an employee

may adopt unethical means for better incentives or

higher post.


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Insufficient

resou

rces

When a company is going through a crisis, it may

adopt unethical means to save resources.

Personal financial worries

Sometimes, the salary given to employees may prove

less to meet the financial expenses. Due to this, they

adopt unethical means of earning money.


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Little or no recognition of achievements

When the employee is not being acknowledged for his

ethical behavior, he may resort to unethical means.

Need to meet sales, budget or profit goals

When any employee has a goal or a task to achieve, incase of the task resulting into failure, he might adopt

unethical ways for job accomplishment.


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It guides to make right decisions that affect employees,

shareholders, investors and the organization.

After the setting up of Consumer Courts, business ethics have

become a topic of concern because business has come to

realize that unethical activities by management can cost

business in many ways.

The distinctly visible line between ethical and unethical

activities helps to decide what a firm should do.

There are many laws and court decisions defining the right

and the wrong facilitating more for better ethical values.


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Hire individual with high ethical standards

Establish codes of ethics and decision rules

Lead by example

Performance Appraisal Mechanism

Ethics Training

Support to individuals facing ethical dilemmas


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The question of relevance of ethics in a business

unit has been a matter of controversy for the very

nature of business activities so far.

But in the competitive age of business units to

sustain, ethical issues to play a prominent role in the

world.

In the Indian environment also this applies with

equal importance.


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Business ethics need to be converted, from a

contradictory task into a compatible task for business

operations. Its importance has got to be known to the

business houses.

Indian business houses must be taken away from the

state of confusion to a state of clarity and be madefully committed to the practice of ethics into their

business operations.


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References

1) Business Ethics And Corporate Governance.

-- Dr.Ahmad Abad

2) Ethical Issues In Management

-- Verma Ajay

For Commonwealth Publishers

3) Mc Grawhill Educations Management

-- issued on 2008-2009


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Websites

1) www.indianmba.com

2) [email protected]

3) www.sharetermpapers.com

4) www.yahoosearch.com

5) www.wikipedia.com


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Research Paper on Ethics

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