BUSINESS ETHICS Ethics is a set of rules that define right

and wrong conduct. Business ethics can be defined as written

and unwritten codes of principles and values that govern decisions and actions within a company.

In the business world, the organizations culture sets standards for determining the difference between good and bad decision making and behavior.

IMPORTANCE OF ETHICS IN BUSINESS

Safeguarding consumers' rights

Improve customers' confidence

Stop business malpractices

Protecting employees and shareholders

Survival of business

Develops good relations

Healthy competition

Consumer satisfaction

Smooth functioning

Creates good image

WHAT IS ETHICAL BEHAVIOUR?

One way of dealing with ethical dilemmas is by using the four way test to evaluate decisions. This test involves asking four questions :

1. Is my decision a truthful one?2. Is my decision fair to everyone affected?3. Will it build goodwill for the organization?4. Is the decision beneficial to all parties who

have avested interest in the outcome?

A COMPANY OWES AN ETHICAL RESPONSIBILITY TO THOSE INDIVIDUALS & GROUPS WHO ARE RESPONSIBLE

FOR ITS SUCCESS

COMMUNITY EMPLOYEES

CUSTOMERSSHAREHOLDERS

EMPLOYEES

Employees are the group most responsible for a company's success, since a business is essentially nothing more than a collection of individuals gathered together for a common purpose and with a certain amount of infrastructure and capital.

Without employees a business literally could not exist. Profitable companies do not spontaneously form out of

piles of equipment, software, and money.

ETHICAL OBLIGATIONS OF AN EMPLOYEE

Ethics, or moral obligation, guide human decisions in many arenas, including within the workplace.

When an individual is acting as an employee, there are certain ethical obligations he has towards his employer that should guide his decision making and impact his actions.

EMPLOYEE RIGHTS IN THE WORKPLACE 

1. Right to be free from discrimination: based on age, gender, race, national origin, or religion.

2. Employees have a right to privacy in the workplace:

This right to privacy applies to the employee's personal possessions, including handbags or briefcases, storage lockers accessible only by the employee, and private mail addressed only to employee.

However, employees have very limited rights to privacy in their e-mail messages and Internet usage while using the employer's computer system.

FUNDAMENTAL EMPLOYEE RIGHTS.

Employees have the right to affiliate with or become a member of a recognized labor union or employee organization.

Employees have the right to work in a safe environment.

Employees have the right to file legal complaints against their employer without being punished in any way by their employer.

RIGHTS AND RESPONSIBILITIES

Employers expect employees to:• meet the terms of their contracts;• co-operate in meeting the objectives of the business;• follow health and safety regulations.

Employees expect to be:• paid according to their contract;• provided with a safe working environment;• appropriately trained;• permitted to join trade unions or staff associations;• allowed access to any confidential computer records kept on them as employees.

THE RELATIONSHIP BETWEEN EMPLOYERS AND EMPLOYEES

Much of the employer/employee relationship now consists of them working together. In 1978 in the UK the Advisory, Conciliation and Arbitration Service (ACAS) was set up to try and create good and harmonious working relationships.

For employer/employee relationships to be successful there has to be a balance of interests:

the employer wants to plan for the future of the business, make profits and keep employees motivated;

the employee wants the best possible conditions and living standards.

So if you think you can run your business without being ethical towards your employees then you are completely wrong.

There is a small line between being ethical and unethical.

Employers and entrepreneur need to be aware from the fact that if they would fail to comprehend the needs of employees or the society then they are really running a blind race without weapons.

CONCLUSION

Ethics are important not only in business but in all aspects of life because it is an essential part of the foundation on which of a civilized society is build.

Companies owe an ethical responsibility to employees only insofar as the employees contribute to the success of the company.

It is not unethical to fire an underperforming employee.

It is also important to keep in mind that changing industry or economic conditions may force a company to do things (like lay people off) which hurt employees, but are necessary to the survival of the business.

THANKS