business ethics and its importance

7/27/2019 Business Ethics and its importance

http://slidepdf.com/reader/full/business-ethics-and-its-importance 1/14

BUSINESS ETHICS



What is Ethics ?

Ethics is the set of beliefs about right andwrong…Behavior/Manner/Morals.

It is derived from the Latin words

“ethicus(character)” & “ethikos(manner)”. Ethicus + Ethikos = Ethos

Ethics is a branch of philosophy which is

based on moral principles, human behavior & their recognized code of Conduct.



Definitions…

• The desired norms of behaviour set by the society toguide us what is wrong & right…

• Collection of Morals & Principles about acceptable actionsin society….

Philosophers consider ethics as a system of moral principlesand the methods of applying them, it deals with valuesrelating to human conduct with respect to right or wrong

Structure of Ethics consist of :• The Specification of moral judgment.

• Moral judgment & moral standards.• Justification of moral judgment.• Logical reasoning and moral judgment.• moral judgment and moral responsibility.



The Ethical Cycle…



Why Business Ethics

When a choice is provided between right & wrongan individual chooses one of the alternatives bydistinguishing between the options available. ThisConcept applies to the business, since human beings

operate business, so they should be able todistinguish right or wrong decisions in business. Asbusiness became more complicated organizationsrealized they needed more guidance to ensure their

dealings supported the common goods and did notharm others.



What is Business Ethics

• “Business ethics is the study of how personal moralstandards are applied to business activities to achievegoals of a commercial enterprise”.

• The Normative Standards applied for integrating core

values like – Trust, honesty, fairness & Socialresponsibility in the way business is managed.

Normative Ethics

Business Ethics = +

Descriptive Ethics



Nature of Ethics

• Ethics Directly deals with Human Behaviour.

• Ethics is Normative Science (based on know-howapproach)

• Ethics is Descriptive Science (based on socialvalues).

• Ethics is Voluntary (it can’t be forced ).

• Ethics is directly dependent on moral standards.• Ethics is Reflective in Nature.

• Obligations are outcome of ethics.



Objectives (Purpose) of Ethics

Ethics have following objectives :-• To Help in understanding individual

behaviour.

• Helps in creating a system based onmoral principles and the approaches of applying them.

• It studies human behaviour and makes

evaluative assessment about them asright/wrong , fair/unfair , good/bad.



Objectives (Purpose) of Ethicscontd…

• It helps in creating moral standards andsocial values.

• Helps in preventing unfair practices.• Helps to achieve corporate excellence.

• Helps in improving the confidence of

individual by saving their rights.



Morality

Morality (from the Latinmoralitas

"manner,character, proper behavior") is a sense of behavioral conduct that differentiates intentions,decisions, and actions between those that are good(or right) and bad (or wrong). A moral code is a

system of morality (for example, according to a particular philosophy, religion, culture, etc.) and amoral is any one practice or teaching within amoral code. Immorality is the active opposition tomorality, while amorality is variously defined as

an unawareness of, indifference toward, or disbelief in any set of moral standards or

principles.



Morality has two principal meanings:

Descriptive:In its "descriptive" sense, morality refers to personal or cultural values,codes of conduct or social mores that distinguish between right andwrong in the human society. Describing morality in this way is notmaking a claim about what is objectively right or wrong, but onlyreferring to what is considered right or wrong by an individual or somegroup of people (such as a religion). This sense of the term is

addressed by descriptive ethics.

NormativeIn its "normative" sense, morality refers directly to what is right andwrong, regardless of what specific individuals think. It could bedefined as the conduct of the ideal "moral" person in a certain

situation. This usage of the term is characterized by "definitive"statements such as "That act is immoral" rather than descriptive onessuch as "Many believe that act is immoral." It is often challenged bymoral stanards which rejects the existence of any moral truths,andsupported by moral realism, which supports the existence of moraltruths. The normative usage of the term "morality" is addressed bynormative ethics



Moral Standards

A moral standard is the guideline or methodology formaking moral decisions. The moral standard formany people is the Golden Rule. But the standardalso has to include the authority behind the standard.

The only possible moral authority that has anyauthority is our Creator.

Corporations are run by individuals. If God is theirmoral authority, then the corporation is bound to the

GR by the authority of God. Otherwise, theindividuals may change their policy at any time forany reason.



Moral Standards

Moral Standard are the are the goldenrules based on moral assumptions & social Values practiced in the society

and by the society.Moral Standards contain a normative

appeal and set claims on human

behaviour. ”moral standards express acriterion for what should be done”



Moral Standards contd…..

As we know moral standards are based onsocial values, these values consist of :-

• Human Values.

• Social Values.

• Business Values.

• Community Values.

• Family Values.

• Professional Values.

• National Values.

business ethics and its importance

Documents