1 - business ethics and social responsibility

8/12/2019 1 - Business Ethics and Social Responsibility

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BUSINESS ETHICS


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The Natureof Ethics

EthicsThe inner-guiding moral principles,

values, and beliefs that people use to

analyze or interpret a situation and thendecide what is the right or appropriate

way to behave.


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Ethical IssuesFor Business

Product safety standards

Advertising contents

Working environmentUnauthorized payments

Employees privacy

Environmental issues


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The Natureof Ethics

Ethical DilemmaPeople find themselves in when they

have to decide if they should act in a way

that might help another person eventhough doing so might go against theirown self-interest.


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ETHICS, ECONOMICS, AND LAW

6-14


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BUSINESS ETHICS: WHAT DOES IT REALLY

MEAN?

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Ethical Problem

Ethical

Problem

Societys

Expectations

of Business

Ethics

Actual

Business

Ethics

1950s Early 2000sTime

Business Ethics:Today vs. Earlier Period


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Ethics is about field or domain of enquiry whilemorality is the object of enquiry. Ethics orbehavior accepted with in a group is recorded ascredos espoused value of group/organization.

When espoused value become practiced values,then the group is said to be ethical organization.

Ethical theories can be classified into three subjectareas:-

Meta ethics

Normative ethics

Applied ethics

Ethics andMorality


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Ethics of care is a normative ethical theory

The basic beliefs of this theory are:

1.All individuals are interdependent for achieving their

interests.

2. Those particularly vulnerable to our choices and

their outcomes deserve extra consideration to be

measured.3. It is necessary to attend to the contextual details of

the situation.

Ethics ofCare


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It maintains that sound, balanced character,

motivation and intentions is more important than

actual conduct and its consequences.

Three major types of virtue ethics theories are:-1.Individual Character Ethics

2.Work Character Ethics

3.Professional Character Ethics

VirtueEthics


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Utilitarianism

In an organizational context, utilitarianism

basically states that a decision concerning

business conduct is proper if and only if that

decision produces the greatest good for the

greatest number of individuals. It is the mostwidely understood and commonly applied ethical

theory.

Goodis usually defined as the net benefits that

accrue to those parties affected by the choice.Thus, most utilitarians hold the position that

moral choices must be evaluated by calculating

the net benefits of each available alternative

action.


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One major school of thought, Act Utilitarianism,

focuses on the action that has been taken,

analyzing it along the lines of whether theselected action produces more good than bad

consequences.

A second formulation, Rule Utilitarianism, looks

at whether the option or choice conforms to arule that attempts to maximize the overall utility.


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Universalism inEthics

One distinctive understanding of universalism in

ethics is that ethical principles are principles for

everybody. They prescribe obligations for

everybody, define rights for everybody, list

virtues for everybody. The most minimal version

of ethical universalism is a claim about the form

of ethical principles or standards. It is the claimthat ethical principles hold for all and not merely

for some, that is, for everybody without

exception.


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Concept of EthicalUniversalism

According to the schoo l of ethical universal ism. . .

Same standards of what is ethical and what is unethical resonate

with peoples of most societies regardless of:

Local traditionsand

Cultural norms

Thus, common ethical standards can be used to judge conduct of

personnel at companies operating in a variety of

Country markets and

Cultural circumstances


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Examples of UniversalEthical Principles or Norms

Honesty

Trustworthiness

Treating people with dignity and respect

Respecting rights of others

Practicing the Golden Rule

Avoiding unnecessary harm to

Workers

Users of a companysproduct or service

Respecting the environment


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The First Principle of Justice:

Each person is to have an equal right to the most

extensive basic liberty compatible with a similarliberty for others.

The Second Principle of Justice:

Social and economic inequalities are to be arranged.

Theory ofJustice


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Rights - Rights are claims that you deserve

something from someone or some group.

Rights can be legal, contractual, or moral. Rights

are also categorized as positive and negative. Thiscategorization indicates the kind of claim and

obligation that the right entails.

Rights, duties, obligations, and responsibilities can

also be categorized as universal, prima facie or

conditional -

THEORYOF RIGHTS


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LAW:

Rules created by a governing body of a society to

maintain harmony, stability and justice in thatsociety.

ETHICS:

Developing a way of determining what values ought

to be- How we ought to act- embracescharacteristics of honesty, fairness, compassion,integrity.

Lets Be Clear WithThe Terms


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Society has instituted THE LAW that tells us certain

conduct is unacceptable and will administer

punishment.

The law can not administer punishment for

unethical behavior.

Relationship BetweenLaw and Ethics


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Issues in defying the nature of business ethics

Individual character

-Religion

Personal moral development-Philosophy

Legal and regulatory concerns

-Sarbanes-Oxley act, etc Issue focused vs FRAMEWORK focused

Integrated manegerial program tied to

organizational goals and objectives

The Nature of Ethics InManagement of Business

Standards


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Significance of cultural, economic, regulatory and

ecological issues while establishing business in a

foreign country.

Consequences of misleading advertising and falseadvertising.

Issues involving privacy of employee (workplace

surveillance)and employer(whistle blowing).

Patents infringements.

Ethical IssuesFaced By Business

1 - business ethics and social responsibility

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