business ethics lecture 2 & 3

BBA 3rd (Course Overview &

Introduction)

Best way of consultation is through e-mail;

(humna.asif19@gmail.com) OR

Skype (humna.asif)

Course would be based on lecture

discussions, mainly comprising of Case

Studies

A branch of Philosophy

Set of Moral principles that govern a

person's or group's behavior

The moral correctness of specified

conduct

Refers to a bunch of Norms

Judgments from society

Moral Values“beliefs or ideals of a person or social group, which

are judged in the light of reason and humanity”

Norms“explicit or implicit rules specifying what behaviors

are acceptable within a society or group” Judgments

“the  ability to make a decision, or  form an opinion wisely; with good sense”

Right Vs. Good Wrong Vs. Bad Unethical Vs. Illegal

comprises principles and standards that guide behavior in the world of business

acceptable or unacceptable behavior within or outside the organization

is determined by key stakeholders

what is right and wrong, good and bad, and harmful or beneficial regarding decisions and actions in & around organizational activities

The discipline of applying ethical principles to

solve complex moral dilemmas

An area that requires reasoning and judgment

based on individuals’ principles and beliefs in

making choices that balance self-interest

against social claims and responsibilities

is the obligation a business assumes toward society

is designed to maximize the positive influence & minimize the negative

includes economic, legal, ethical, and philanthropic dimensions

Social responsibility represents the duties of an individual or organization to be accountable for its decisions

Social responsibility is best described as a subset of ethics

To develop students’ critical thinking skills by:

Stimulating moral investigation

Analyzing key concepts

Dealing with ambiguity and disagreement

Prepare students for issues they will face in

business careers

Stimulate students’ sense of social responsibility

Laws are not sufficient to cover “gray areas”

To anticipate laws and the market in order to;

Prevent fraud or other organizational wrongdoing

Long-term market rewards through positive

reputation

To increase employee morale and productivity

Because business is part of the social system in

which we all must live

Obey laws

Adopt codes of ethics that focus on

stakeholder interest over shareholder

interest

Participate in socially responsible

initiatives

(Examples…)

Customers

Employees and labor unions

Individual citizens

Shareholders

Environment

Government

Because something is legal, it does not

necessary make it ethical, and vice-versa

Being ethical implies more than simply

complying with existing laws

lying to supervisors

falsifying records

alcohol and drug

abuse

conflict of interest

Stealing/ bribery

gift/entertainment

receipt in violation of

company policy

favoritism

Taking credit for others’

work

Whistle blowing

terminating employees

without prior notice

using company property

for personal use

Two general categories of reasoning used to

solve ethical dilemmas -- deontology and

utilitarianism

Arguments and decisions can be made by

using either or a combination of both

Value-based

Using personal or individual beliefs of right

and wrong to solve an ethical dilemma

Follows the logic that people ought to do

what they believe is right, and refrain from

doing what they believe is wrong

Does not take consequences or long-term

outcomes into account

Outcome-based

Using the potential outcome of an action to

solve and ethical dilemma

Follows the logic that people ought to base their

decisions on the action that will result in the

greatest good for the greatest number

Does not take personal beliefs or values into

account

Individual

Organizational

Association

Societal

International

Employee-Employer Relations

Employer-Employee Relations

Company-Customer Relations

Company-Shareholder Relations

Company-Community/Public Interest

Two Key Branches of Ethics

Descriptive ethics involves describing,

characterizing and studying morality

“What is”

Normative ethics involves supplying and

justifying moral systems

“What should be”

Societal Beliefs

Family

Friends

The Law

Regions of Country

Profession

Employer

Society at Large

Fellow Workers

Religious Beliefs

The Individual

Conscience

What is?

What ought to be?

How to we get from what is to what

ought to be?

What is our motivation for acting

ethically?

1. Business ethics is more a matter of religion than

management

2. Our employees are ethical so we don’t need attention to

business ethics

3. Business ethics is a discipline best led by philosophers,

academics and theologians

4. Business ethics is superfluous — it only asserts the

obvious: “do good!

5. Business ethics is a matter of the good guys preaching to

the bad guys

6. Business ethics in the new policeperson on the block

7. Ethics can’t be managed

8. Business ethics and social responsibility are the

same thing

9. Our organization is not in trouble with the law, so

we’re ethical

10. Managing ethics in the workplace has little practical

relevance

“There are always those who think they know what is your

responsibility, better than you do”

-- Ralph Waldo Emerson