business ethics by anil biradar

8/12/2019 Business Ethics by Anil BIRADAR

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By Lakshmi.H


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Meaning of ethics Definition: term ethics- derived from the

Greek word Ethikos- meaning conduct,

custom or habit. It consist of standard or

code of behavior of a group. Eg: killing-

immoral- police encounter

Morality- individual character & disposition

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Business Ethics Biz ethics is the systematic analysis of ethical principles pertaining to biz,

industry, commerce, trade & other related activities, institutions, beliefs &practices

Biz ethics is evaluation of biz in terms of certain ethical principles &

norms

By Lakshmi.H


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Relation between Ethics Biz Ethics 3 inter relations:

1. Concepts of Deonticism(kant- German philosopher-governed by certain dos & donts- no matter- led to

max happiness or gain), Utilitarianism (any action that

leads to max benefits & happiness of greatest number of

ppl in society), Consequentialism(human actions- good

for society @ large- good actions- outcome of the actionon the society- important- if consequences are good- can

be implemented- else no ), morality, values (persons

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believes in critical value. Eg: Gandhi- truth, ahimsa, Jesus- Love, Mother Teresa-love

through service) & virtues (acquired mental disposition- forms a part of character-

reflected in behavior- deliberate choice not- congenital- acquired. Eg: honest, courage)

2. Ethical theories- provides certain analytical guidelines & moral standards- directly or

indirectly applied to solutions to biz problems

3. Ethical theories- contribute to ethical decision making, solving ethical dilemmas & so

on

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Evolution of Biz Ethics History- 12thcentury- lending money for interest- unethical, ppl- do not work- not eat

Capitalism- labor was sacred duty towards God.

Industrial revolution- accumulation of riches- no matter of turmoil & trouble

Discipline- later Confucianism- hard work, sincerity & hardwork

India- 20thcentury- bizman- wealth accumulation- later social fold

Anti religious philosophy- exploitation of labor- Max weber

Free market philosophies- social & economic benefits- ethical

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Benefits of free market philosophies:

1. Market ethics: social benefits- human selfishness- all sellers- products & services- social

welfare- supported by Adam Smith

2. Competition & market price: generates surplus for producers & consumers- positively

benefits the society

3. Expansion of biz renders free choice & liberty: growth of technology & different choice of

production & production methods

4. Free market philosophy maximises individual freedom & utility: better utilization of social

& individual potential- higher employment opportunities-overall economic growth

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Nature of Biz Ethics1. Subject is analytical. Normative (ethical norms & standard practices) & positive

science

2. Diagnostic in nature- various aspects of biz dela, operations & management

techniques- analysed

3. Evaluative

4. Prescriptive- provides solution- eradicate unethical behavior

5. Set moral standards in biz: guiding principle- employees, employers public etc

By Lakshmi.H


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Scope of Biz Ethics Scope of biz ethics- vast:

1. Ethical responsibility of biz

2. Unethical practices- HR, marketing, Finance, IT

3. Ethical resp- employees, customers, suppliers, stakeholders

4. Ethical leadership & social responsibilities

5. Ethical decision making

6. Ethical issues in CG

7. Ethical biz strategy

8. IB ethics

9. Ethical audit

10. Professional ethics

By Lakshmi.H


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Need Purpose of Biz Ethics Necessary to give guidance- uphold the

interest of stakeholders- including

consumers, shareholders, suppliers,

distributors & investors

Necessary- to remind moral duty of

firm- undertake social responsibilities

Objectives are:

1. Teaches ethical stds & values to biz

2. Concerned with application of ethical stds to

biz

3. How to run biz in ethical lines

4. Helps to identify- areas- unethical practices-ethical code

5. Helps firms to make biz decisions & strategy-

morally fair, just & consistent

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Importance of Biz Ethics Biz ethics- 2 classification- micro & macro aspects

Micro aspects: private & professional life of a manager or CEO Macro aspects: wider dimensions- policy making settle of conflicts, operational aspects.

Unethical practices- confronted, discrimination- immoral competition, cheating

Biz behavior- macro perspective- run biz successfully

Importance & significance of biz ethics are:

1. Broad framework for guidance- run biz

2. Trusted by all stakeholders (customers, employees, suppliers etc)

3. Improves social image

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4. Improves & strengthens OC5. Solid foundation for future

6. Generate sense of empowerment- employee & stakeholders

7. Companies- strong team work

8. Avoid work related conflicts

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By Lakshmi.H


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Sources of Ethical Knowledge for Biz

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By Lakshmi.H

6 primary sources of ethical knowledge


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Roots of Unethical Biz Practices

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Corruption


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Ethical Decision Making in Biz Ethical decision- no of factors- involved in biz. 2 set of factors: Organizational &

Individual factors

1. Organizational Value:

Greater influence- decision making than individual factors. Composed of group of persons-

diff background & family circumstances.

Org. values- predominates- orientation or predisposition

Orientation- vision & mission. OC set of shared values, goals, beliefs & attitude. Eg: whistle

blowing in Ranbaxy 2013

If ethical base- strong- decision making- prominent. Eg: mgr- ethical- influence team mbrs-

ethical decsion making, proper usage of reward & punishment technique

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2. Personal disposition:

Gender: survey women are more sensitive- towards- ethical issues than men

Age structure: elderly managers- more - ethical issues & CSR

External & internal factors: relationship b/w profit & ethical decision making

Education level: formal & informal education- ethical sense

Ethical leadership: as leader so the employees

Rules Vs. Discretion: set of rules- ethical decision making

Personal values in DM: caring for others, fairness & justice, commitment to social

responsibilities, sense of trusteeship & duty, good citizenship

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Benefits of managing ethics at workplace1. Attention to biz ethics has substantially improved the society: child labor- HR policies

for employees-2. Ethical programs helps to maintain a moral course in turbulent times: employee

management, resolving conflicts

3. Cultivates strong teamwork & productivity: motivation & performance

4. Supports employee growth & meaning: helps employee to face good & bad situations-ethical system- moral boost

5. Are an insurance policy: ethical principles- lawsuits. Clear cut policies- failure to

comply- implication

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6. Help avoid criminal acts of omission & can lower fines: detect unethical issues. Eg:

biz dealings with defense- penalties for ethical obligations

7. Helps to manage values associated with quality management, strategic planning &

diversity management: effort includes- identifying preferred values, behavior- aligned

with values. Eg: Japanese firms. Diversity programs- recognizing & acknowledging

different values

8. Promote strong public image: Johnson & Johnson- Tylenol case, Infosys, Biocon

9. Overall benefits: improves trust relationships b/w individual & organizations, greater

consistency in standards of products/ service

By Lakshmi.H

business ethics by anil biradar

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