Moral Philosophy and Business

• Unit-I

• Introduction

Business Ethics – It is called in Latin Word as ”ethicus” while in Greek it is called Ethikos. It has come up from the word ”ethos” meaning Character or Manners. Thus it can be called as science of Morals or recognized rules of Conduct

The character of a person is expressed in terms of his conduct. The conduct is a series of actions which when taken together are either termed as”Good” Bad or right or Wrong, Moral or Immoral as well as Amoral

Ethics is also called as the Science of character of a person expressed as right or wrong conduct or action

• Nature of Ethics

The concept of Ethics deals with human beings only as he has been endowed with freedom of choice and the means of free will.

Study of ethics has become a systematic knowledge about moral behavior and conduct.Thus its study is a field of moral science

It is a normative science. Which judges the value of the facts in terms of an ideal. Ethics is concerned with judgment of value or what ought to be.

It deals with human conduct which is voluntary and not forced or coerced by persons or concerned

Ethics is defined as the discipline dealing with what is good and bad and with moral

duty and obligation, it is also called moral philosophy the discipline concerned with what is morally good and bad, right and wrong. (www.Brittanica.com, Peter Singer)

Ethics is never a business issue, a social issue, or a political issue. It is always a personal issue

• Business Ethics

• Business Ethics is nothing but the Application of Ethics in Business. Business ethics proves that businesses have to be ethical but still make profit.

• Previously Business ethics was thought of as being a contradiction of terms

• Nowadays the core focus area is on ethical implications of Business

What are Business organizations?

• These are formal structures for Human beings to carry out their business

• Managerial Dilemmas: The choice between the Commercial Concern and the Welfare Concern

for example: Technology Utilization in Business concerns

• Trade –off between the two for Business concerns to survive in the age of Cut-throat Competition

• Factors promoting the Business Ethics:

1. Work Is Valuable

2. Act in Good Faith

3. Foster a Healthy Marketplace

4. Treat Workers with Dignity

5. Foster Constructive Worker Careers

6. Provide a Safe and Healthy Workplace Environment

7. Protect the Physical Environment

8. Cooperate with Host Communities

9. Helping the Disadvantaged

10. Obey Applicable Laws

11. Recognize Reciprocal Responsibilities

• Social Responsibility

• Social Responsiveness

• Social Obligation

• Ethics in Business

1.) Person Directed:Person-centered customer-driven supports and services, which are driven by consumer choices and focus on inclusion in the community.

2.)Commitment to Quality: Systematized implementation of quality improvement initiatives in every area of

service provided to improve services, add value, enhance efficiency and contain cost.

3.) Loyalty and Trust: Building credible and trustworthy working relationships with all internal and external customers/persons in the community network working for outcomes that are measurable, meaningful, and respectable.

4.) Compassionate Participation: Participating in the collaborative and network of internal and external customer supports with compassion and sensitivity for fears or concerns needing clarification or resolve.

5.) Communication:Working to improve deficiencies in the communication process, through listening, surveying, responding and exchanging information and ideas for improvement.

6.) Encourage Change Progressive approach toward learning and training acclamation that is focused on the changing environment and necessary adaptability of managed behavior health care collaborations/networks.

7.) Empowerment:

Empowering all persons including customers, employees, administrative personnel and external customers to be flexible and able to make decisions based on a flow of sufficient information and access to a seamless system of supports and services.

• Various Ethical Issues in Business Decision Making

Many Managerial decisions have Ethical Implications These are such as:

a.) Ruining Occupations of Age-old Inhabitants in a particular Locality and their

ethical way of life ,by the use of advanced Technology

b.) During Mergers & Acquisitions between Companies,The duplication of Job Positions lead to ethical Dilemma

c.) Balance between the attainment of Economic and Social Objectives

d.) Glass Ceiling Effect

• Business Ethics and Profit

• The general impression of people is that Ethics and Profit are opposed to one another

• The need of the hour for the companies is to survive the Competition and Turbulent changes and to Contribute meaningfully to social welfare while continue to flourish

• “Profit” was previously considered a dirty word It waas because of the distorted view of the business as perceived by the society.

• But lately due to wide spread Business and Management Education, the scenario has changed

• Now Profiteering is a bad word.

• Every company has to justify its existence as companies turning to” Profit Making Centres”

A loss making company is a liability and burden to the society as it cannot discharge its Social responsibility

It cannot meet its welfare commitment to its employees

It cannot even compensate its workforce for their efforts

It also cannot generate revenue for its share holders

Cannot meet consumer demands adequately

Profit is nowadays considered a measure of the success of the company and its

justification for sustained existence,growth and Diversification

• Nowadays it is Unethical Not to make Profits or to Make Losses

• It misutilises scarce Natural resources

• It cannot payback Creditors

• It cannot make wealth for its Shareholders

• Make Huge Liabilities

• They upset the Economy

• Promote Inefficiency

• It cannot discharge its Social Responsibility,welfare Commitments and jeopardise the future of its Employees