Session 1 & 2 : Personal and Business Ethics

Ethics Values

Ethics refers to a system of moral principles. Values are associated with the thought
process, a person’s sense of what is wrong
and what is right.

Ethics aligns with a professional setup. Values are associated with personal aspects
of a person.

Ethics has three major areas of study – Meta- Different types of values are moral values,
Ethics, Normative Ethics, Applied Ethics. social values, aesthetic values, religious
values, political values.

Ethics will be consistent within a professional Values vary from person to person, it need
setup but would vary between three different not be consistent.
organisations or institutions.

Ethics are determined by an institution, Values formed in a person are determined by

organisation and varied professions. Ethics that family values, religion, culture, community
are followed by medical professionals will be etc.
different from ethics followed in the public
administration domain.

Ethics could act as a constraint. The action that Values could act as a catalyst for the
needs to be taken in an organisation could be necessary motivation in a person.
consistent with the values of a person. However,
there could be chances that it cannot be executed
as it may not align with the ethical standards of
the profession, organisation or institution.

The difference between

personal and professional
ethics
Personal ethics refers to the ethics that a person
identifies with respect to people and situations
that they deal with in everyday life.

Professional ethics refers to the ethics that a

person must adhere to in respect of their
interactions and business dealings in their
professional life.

In some cases, personal and professional ethics

may clash and cause a moral conflict. For
example:

 A police officer may personally believe that a

law that he is required to enforce is wrong.
However, under the Code of Conduct for the
Police, he is required to obey all lawful and
reasonable instructions to enforce that law
unless there is good and sufficient cause to do
otherwise.

 A doctor may not personally believe that the

course of medical treatment chosen by a
patient is the right one. However, under the
Code of Ethics for the Medical Association,
he/she must respect the rights, autonomy and
freedom of choice of the patient.
  Business ethics is being able to identify the difference
between right and wrong and then consciously choosing
to do the right thing. Another way to define business ethics
is written guidelines or standards used to hold a company
accountable to moral actions and just decisions.

 business ethics impact a company at three different levels.

These levels are personal, professional, and
organizational. Also similar to organizational behaviour,
the three levels are all linked together and each one
influences the other two.

 Personal Ethics

 Personal ethics are determined by each individual.

Personal ethics may be determined by religious practices
or how someone was raised. While professional and
organizational guidelines may influence personal ethics,
they are not one and the same. Personal ethics is the
most diverse level of business ethics because each
individual person has a different set of values and beliefs.
Since personal ethics differ from person to person,
professional and organizational ethics help to establish
parameters and guidelines for individuals to follow in the
workplace.

Professional Ethics
 Training your employees can greatly increase their (and
your!) understanding of ethical behaviour in business.

 Professional ethics is the idea that individuals in their job

field have extensive knowledge and experience which
prepares them to work within certain industries. This
training equips them to know business ethics standards
 for their line of work. For example, a doctor knows better
than to violate HIPAA by sharing a patient’s medical
information.

Organizational Ethics

 Lastly, an organization’s ethics are established and then

implemented company wide. Organizational values are
external indicators used to ensure a company is behaving
ethically. However, the foundation of organizational values
is grounded within the internal culture of the company.

 Organizational values can positively or negatively impact

productivity, morale, the community, and the list goes on
and on.

Ethical Issues of organizations

 Fraud. Fraud is a big ethical no-no for companies.

Fraud is participating in any type of bribery, insider
trading, misrepresentation of a product, etc.
 Sustainability. Sustainability is another ethical idea
many companies are participating in today. Helping to
minimize a company’s carbon footprint is an important
ethical decision for organizations.
 Diversity. Diversity is another example of business
ethics. Each of those examples were in violation of
business ethics.
 Exploitation. Exploitation can include the
environment, the population, the government, etc.
Taking advantage of questionable situations can lead
to ethical dilemmas. Finding a tax loophole for
example may be legal, but it doesn’t mean it is ethical.
 Importance of Business Ethics :
 Improved employee retention. Strong business ethics often
encourage managers to show appreciation for an employee’s
hard work. As a result, team members may be more loyal to the
company and strive to be more productive. It also means
employees at all levels are less likely to be let go for reasons
related to unethical behavior.
 Stronger collaboration. Team members who practice business
ethics have respect for one another and work well together. This
camaraderie not only fosters a pleasant work environment but
also helps with team collaboration and productivity.
 More effective leadership. When a manager follows business
ethics, they’re more likely to treat employees well. As a result,
teams are more inclined to follow their lead. This minimizes
discipline issues and teams’ trust in managers and supervisors
when tough decisions need to be made.
 Increased professional value. When you have a positive
attitude toward your work and those you work with, you can
increase the quality of your work. It also increases your value to
your team and the company as a whole.

Examples of business ethics in the workplace

1. Report conflicts of interest

Many organizations have a policy regarding receiving gifts from clients or other
external parties. Some may even have rules about part-time work, freelance
opportunities and other side jobs. In all cases, these rules are meant to ensure
employees operate within the limitations of conflicts of interest, which can
impact an employee’s integrity.
2. Take care of company property

You’re likely to use tools, technology, equipment and supplies provided by your
employer. These items are typically reserved for work use only. Follow any
business ethics related to the use and maintenance of these items to ensure
you are using company property respectfully.

3. Lawfulness

Business ethics also includes abiding by legal regulations and obligations

regarding their business activities like taxes, worker safety and employment
and labor laws. Companies that work within the boundaries of the legal system
are more credible and honourable, which can establish a strong positive
reputation as an employer that encourages high-quality candidates to apply for
roles.

4. Use discretion with sensitive information

Some workplaces and roles may interact with sensitive data or materials, which
requires employees to practice discretion through careful organization, the use
of passwords and other security measures. Consult your code of conduct to
understand the stipulations of discussing and handling sensitive information in
the workplace.

5. Practice integrity

Hold your work to a high standard of fairness, honesty and quality. You should
be transparent about how well you’re doing and areas you may be able to
improve. Own up to your mistakes, and work to correct them as soon as
possible. Keep your team and supervisors informed of mistakes and progress to
ensure everyone is updated.

6. Keep a high attendance

Your workplace may have an attendance and tardiness policy to hold

employees accountable for going to work and being on time. Showing up for
work when you are expected demonstrates respect for your colleagues as well
as your employer.

You may request time off per your company’s policy. If you’re unexpectedly
prevented from being at work by illness, accident, or some other cause, let your
manager or supervisor know as soon as possible. Your manager or supervisor
can then make sure your work is handled by someone else in your absence. If
you’ll be late, give your manager advance notice, if possible.

7. Respect coworkers and other office personnel

You can communicate respect for your colleagues by treating them

professionally and as you would like to be treated. Workplaces typically abide by
anti-harassment laws established by the federal government. Review these
behavior limitations or discuss the policies with your employer or human
resources department should you have questions.

8. Follow dress code

The way you dress can impact the work atmosphere and the way people relate
to you. Make sure your clothing choice follows the company’s dress code to
ensure professionalism with coworkers and external parties, as well as safety
and comfort while on the job.

9. Discuss issues with management

There may be times when you face an ethical dilemma at work, and this
particular type of issue may not be covered adequately in the employee
handbook or your training on business ethics.

For situations like this, you can consider discussing the issue with your
supervisor, the human resources department or, if the company has one, an
ethics officer. Working with someone familiar with the company’s ethical
standards can help you resolve these situations appropriately.

10. Workplace Diversity

A business might express fairness by placing a high importance on having a

diverse workplace. Achieving a diverse workplace means using recruiting
practices that give equal opportunity to people from different ethnic, gender
and social groups.

Employing a diverse group of people gives the business the benefit of different
perspectives and demonstrates that the company is serious about equality and
treating all people with respect.

11. Seek further ethics training

Should you need more guidance on ethical behaviour at work, your company
may offer further training via seminars or online courses. These can help
reinforce the points made in the company’s handbook. If you’re required to take
ethics training annually, be sure to do so. Over time, these points will become
familiar and will shape your business conduct.

types of business ethics

There are various types of business ethics. Both the nature of the company's
business and its location can affect its code of ethics. The following are some
common business ethics:
1. Personal responsibility

Personal responsibility is a vital attribute for employees in both entry-level and

senior positions. This could entail completing tasks your manager has assigned
or simply fulfilling the duties of your job description. If you make a mistake, you
acknowledge your fault and do whatever you need to do to fix it.

2. Corporate responsibility

Businesses have responsibilities to their employees, their clients or customers

and their board of directors. Some of these may be contractual or legal
obligations, others may be promises. For example, a commitment to conduct
business fairly and to treat people with dignity and respect. Whatever those
obligations are, the business has a responsibility to keep them.

3. Loyalty

Loyalty is a valuable quality for both corporate leaders and team members. It's
important for team members to be loyal to their coworkers, managers and the
company. This might involve speaking positively about the business in public
and only addressing personnel or corporate issues in private. Customer or
client loyalty is important to a company not only to maintain good business
relations but also to attract business by cultivating a positive reputation.

4. Respect

Respect is an important business ethic, both in the way the business treats its
clients, customers and employees and in the way its team members treat one
another. When you show respect to someone, that person feels like a valued
member of the team or an important customer. It indicates that you care about
their opinions, you keep your promises to them and you work quickly to resolve
any issues they may have.
5. Trustworthiness

A business cultivates trustworthiness with its clients, customers and employees

through honesty, transparency and reliability. Team members should feel they
can trust their companies to keep to the terms of their employment. Clients and
customers should be able to trust the business with their money, data,
contractual obligations and confidential information. Being trustworthy
encourages people to conduct business with you and helps you maintain a
positive reputation.

6. Fairness

When a business exercises fairness, it applies the same standards for all team
members, regardless of rank. The same expectations of honesty, integrity and
responsibility placed upon the entry-level employee also apply to the chief
executive officer (CEO). Fairness means that a business strives to treat its
customers with equal respect, offering the same goods and services to all
based on the same terms.

7. Social and environmental responsibility

Corporate social and environmental responsibility means that a company

recognizes its impact outside of the marketplace. Many companies look for
ways to help their communities through volunteer work or financial
investments. They may also adopt measures to reduce waste and promote a
safe and healthy environment.

8 examples of business ethics

1. Data protection
Businesses often collect information about their customers. This may only be an
email address, but it could also be their physical address or health or financial
information, depending on the nature of the business. Companies that collect
customer data usually promise to secure that information and not share it
without the customer's permission. The same applies to employee information.
Business ethics protect employees' personnel records and allow access only to
those with a valid need to know.

2. Customer prioritization

One way a business shows respect for its customers is by prioritizing their
needs, even at the expense of the company. For example, if a customer
purchases goods or services that turn out to be unsatisfactory, the business
does whatever is necessary to provide recompense. If it's a faulty product, the
business may offer a replacement or a refund. If the customer experienced
poor service, the company usually apologizes and offers a discount or some
other form of compensation.

3. Workplace diversity

A business might express fairness by placing a high importance on having a

diverse workplace. Achieving a diverse workplace means using recruiting
practices that give equal opportunity to people from different ethnic, gender
and social groups. This can add time and effort to the hiring process, but it's
often worthwhile. Employing a diverse range of people gives the business the
benefit of different perspectives. It also demonstrates that the company is
serious about equality and treating all people with respect.

4. Whistleblower protection

As a business grows, it becomes harder to verify that employees are adhering

to the ethical standards set by the company. Sometimes, the business relies on
whistleblowers, or a person who informs authority figures about illicit activity,
to garner attention regarding unethical practices within the company. To
encourage employees to come forward to report unethical practices,
businesses often put in place protections against negative consequences. With
these protections, employees don't need to fear losing their jobs or
encountering disciplinary action for notifying the company about unethical
behaviour.

5. Corporate transparency

A business that practices transparency is clear in its communication both with

employees and customers. This means that communication is unambiguous, so
there's no confusion about the policies or priorities that guide business
decisions. Transparent corporate communications are also honest and truthful.

6. Community outreach

Companies often feel an ethical obligation to help the communities in which

they conduct business. This can take the form of volunteer programs for
employees, sometimes at the company's expense. Such programs might
include serving in a soup kitchen, helping with home repairs, cleaning up after a
natural disaster, or teaching skills at the local community center. These
programs not only help those in need but also help develop respect and trust
within the community.

7. Environmental awareness

Many companies take environmental concerns seriously, whether that means

reducing waste or cleaning local land, water and air. There are various ways
businesses act on this, such as reducing air travel and using teleconferencing
technology as much as possible. Businesses might also promote recycling in
their offices by providing receptacles to collect recyclable waste.
8. Employee compensation

Companies adhering to principles of fairness and respect strive to pay their

team members a fair wage for the work they do based on their experience,
education and job duties. They also regularly review compensation and adjust it
to make sure it continues to reflect the positions and experiences of employees.
Businesses often reward outstanding performance with employee bonuses.
These are good incentives for team members to work hard and remain with the
company. They're also a way for the business to express gratitude for their
efforts.
The 12 ethical principles for business executives

1. HONESTY

All personnel must be committed to telling the truth in all forms of

communication and in all actions. This includes never purposely
telling partial truths, selectively omitting information, making
misrepresentations or overstatements. Honesty also means reliably
sharing both good and bad news with equal candor .

2. FAIRNESS

All dealings and relationships must be founded on a conscious

commitment to fairness, treating others as you would like to be
treated. Fairness requires treating all individuals equally and
courteously, never exercising power arbitrarily and never exploiting
weaknesses or mistakes for personal or corporate benefit.
3. LEADERSHIP

Demonstrated by a conscious effort to set a positive example of

ethical behaviour, leadership is a commitment to excellence through
ethical decision-making. Businesses and business executives maintain
their leads by constantly improving operational efficiency, worker
satisfaction and customer approval.
4. INTEGRITY

Organizations and personnel demonstrate integrity through a

consistency between actions and words that inspires trust and
credibility. Integrity also means keeping promises, honoring
commitments, meeting deadlines and refusing to participate in
unscrupulous activities or business dealings.
5. COMPASSION
Fostering a business environment of empathy and compassion
requires a commitment to being kind and caring toward all personnel,
business partners and customers. Business goals must be benevolent,
ensured by spending enough time to understand the needs and
sensitivities of others, including the local community.
6. RESPECT

Respect is demonstrated by a full commitment to the human rights,

dignity, autonomy, interests and privacy of all personnel. It means
recognizing that everyone deserves equal respect and support for
sharing ideas and opinions, without fear of any penalty or form of
discrimination.
7. RESPONSIBILITY

Employees exhibit responsibility by taking full ownership of their

jobs, striving to be conscious of the emotional, financial and business
consequences of their actions. Taking their responsibilities seriously
also demonstrates employee maturity and ability to do a job without
needing strict supervision.
8. LOYALTY

Loyalty is proven by never disclosing information learned in

confidence and by remaining faithful to coworkers, clients, business
partners and suppliers. Loyal employees avoid conflicts of interest,
help build and protect the good reputation of their company and help
boost the morale of their coworkers.
9. LAW-ABIDING

Organizations must fully comply with all applicable laws and codes
from local, state and federal agencies. Law-abiding businesses and
personnel also adhere to industry and trade regulations, marketplace
standards and any additional mandatory organizational policies,
practices and procedures.
10. ACCOUNTABILITY
Accountability requires a total commitment to the ethical quality of all
decisions, actions and relationships. High expectations for ethical
behavior drive business practices when an organization and its
personnel are held accountable to fellow employees, consumers, the
local community and the wider public in general.

11. TRANSPARENCY

Committing to transparency requires making business information

and policies available to appropriate groups, such as financial
investors, personnel and consumers. It includes, for example, sharing
criteria for price hikes, wages, hiring, granting promotions, addressing
workplace infringements and firing employees.
12. ENVIRONMENTAL CONSCIOUSNESS

Organizations and personnel demonstrate a commitment to the

environment by helping mitigate the effects of global climate change.
Beneficial actions include reducing the negative environmental
impact of doing business by improving energy efficiency to help
lower carbon emissions, reducing water usage and reducing waste.
Ethical business practice examples
Work ethic skills
There are several qualities that contribute to having a strong work ethic. Here
are just a few key skills that can help you improve your work:

 Accountability: Having accountability means you are able to

manage your own work well without much oversight. If you are
accountable, you will be seen as a reliable team member who is
responsible and contributes well to a task or project.
 Discipline: Having discipline means you are able to focus and
complete tasks no matter the circumstances. Managing your
time well is a key component of practicing discipline.
 Honesty: Being truthful at work is valuable because it can help
tasks to be completed more quickly and in a quality way. Practice
honesty when giving feedback, sharing project ideas and when
you have made a mistake. Owning and improving upon mistakes
at work shows that you are willing to take risks and learn from
them.
 Humility: Being humble means having a healthy perspective of
your own importance in the workplace. This does not mean that
you should have a negative or low view of your work or skills.
Instead, it means that you prioritize listening to others, share
your own ideas when it will be valuable and are honest about
both your wins and your areas of improvement.
 Integrity: Integrity is defined as always doing the right thing no
matter who is watching. Practicing integrity results in gaining the
trust of those around you.
 Organization: Being well organized can help you get tasks done
on time, communicate clearly with others and set proper
expectations about your work. You might keep several
workspaces organized such as your desk, computer, calendar
and notes.
 Quality work: While it is crucial to turn your work in on time, it is
also important that the work is done well and meets all
requirements. If you consistently complete work that needs
revisions and leads to more time and effort, you may not be
considered as having a strong work ethic.
 Responsibility: Being responsible at work is a general quality
that results in your work being done well, on time and practicing
good communication skills with those around you. Responsible
people know what is expected of them and deliver on those
expectations.
 Teamwork: Working well with others is a key component of work
ethic. This involves having respect for those around you,
practicing proper communication skills and having empathy so
you understand how to interact best with each individual you
work with. This will allow you to easily work alongside a team
towards a common goal.
 Time management: Managing your time well can help you meet
deadlines, set appointments or meetings and communicate
proper expectations about your schedule. It is also important to
be punctual at work both when you arrive and when you have
meetings.