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105- unit 1

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5 views

105- unit 1

Uploaded by

ankit93023sikarwar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UNIT 1

BUSINESS ETHICS
Moral principles that govern the conduct of
businesses
TOPICS TO BE COVERED

•Meaning of ethics
•Nature of ethics
•Essence of ethics
•Ethical problems in business
MEANING OF ETHICS
Business ethics can be defined as the set of moral
principles and values that govern the conduct of
individuals and organizations in the business world.
It encompasses a wide range of issues including-
• corporate governance
• fair trade practices
• environmental responsibility
• employee rights
• consumer protection
At its core, business ethics aims to promote
honesty, integrity, and transparency in all business
dealings, fostering an environment of trust and
accountability.
Principles of Business Ethics

• Honesty and Integrity


• Respect for the Law
• Respect for Human Rights
• Environmental Responsibility
• Corporate Social Responsibility
• Fair Competition
• Stakeholder Engagement
• Leadership and Accountability
• Transparency
IMPORTANCE OF BUSINESS
ETHICS
• Building Trust and Credibility
• Long-term Sustainability
• Competitive Advantage
• Risk Mitigation
• Positive Societal Impact
• Employee Engagement and Retention
IMPORTANCE OF BUSINESS
ETHICS
• Regulatory Compliance
• Brand recognition and growth
• Increased ability to negotiate
• Increased trust in products and services
• Customer retention and growth
• Attracting talent
• Attracting investors
IMPLEMENTING THE ETHICS
• Develop a Code of Ethics
• Establish an Ethics Committee
• Provide Ethics Training
• Encourage Open Communication and
Reporting
• Lead by Example
• Collaborate with Stakeholders
• Continuous Improvement
CHALLENGES AND
CONSIDERATION
• Conflicting Interests
• Cultural Differences
• Regulatory Complexities
• Stakeholder Engagement
• Ethical Dilemmas
• Monitoring and Enforcement
• Cost and Resource Considerations
ETHICAL ISSUES IN BUSINESS

• Ethical issues in business arise when


decisions or actions conflict with ethical
standards, involving both organisational
and individual concerns, and can pose
risks ranging from legal non-compliance
to negative reactions from third parties,
highlighting the need for clear policies to
guide ethical decision-making.
ETHICAL ISSUES IN BUSINESS

• Discrimination and harassment


• Age
• Disability
• Equal pay
• Pregnancy
• Race
• Religion
• gender
ETHICAL ISSUES IN
BUSINESS
• Workplace health and safety
• Whistle-blowing or social media rants
• Ethics in accounting practices
• Corporate espionage and nondisclosure
• Technology and privacy practices
• Nepotism or favouritism
• Environmental responsibility
Utilitarianism
• Utilitarianism is a theory of morality that
advocates actions that foster happiness and oppose
actions that cause unhappiness.
• Utilitarianism promotes "the greatest amount of
good for the greatest number of people."
• When used in a sociopolitical construct, utilitarian
ethics aims for the betterment of society as a
whole.
• Utilitarianism is a reason-based approach to
determining right and wrong, but it has limitations.
• Utilitarianism does not account for things like
feelings and emotions, culture, or justice.
Generally Accepted Principles of Utilitarianism

• Pleasure, or happiness, is the only


thing that has intrinsic value.
• Actions are right if they promote
happiness, and wrong if they promote
unhappiness.
• Everyone's happiness counts equally
The social costs and benefits
• Utilitarianism weighs the social costs and
benefits of a given action. As a general
rule, the utilitarian says that the right
action is the one whose net benefits are
greatest when compared to the net
benefits of all other possible options.
Rights-Based Ethics
This perspective argues that businesses must
respect all stakeholders' basic human rights and
dignity, especially employees. Workers have rights
to fair treatment, safe working conditions,
adequate pay, and privacy that businesses should
uphold. The focus is on respecting fundamental
rights. But some argue it is unclear whether firms
truly have moral obligations beyond economic and
legal ones. Rights-based ethics also provides an
vague framework as it does not consider the
interests of other stakeholders beyond rights-
holders.
Justice and Fairness
• Firms should distribute costs, benefits,
opportunities, and risks fairly among all
stakeholder groups according to their respective
claims and merits. Workers should be
compensated and enabled based on performance
and merit, not factors like nepotism or bias. The
focus is on just and fair procedures and outcomes.
However, critics note there are various concepts
of justice, and it is unclear which feeds the best
framework for business ethics. There are also
debates about which stakeholders deserve respect
in distributional justice.
Ethics of Care
• Ethics of care is a moral theory that
emphasizes the importance of care and
relationships in moral action. It is a
feminist theory that challenges traditional
moral theories, which are often
considered male-centric.
An alternative to moral principles

• Virtue ethics
• Teleological theory
• Egoism Theory
• Relativism Theory
Virtue Ethics
• Virtue Ethics is a normative philosophical
approach that urges people to live a
moral life by cultivating virtuous habit.
• This character-based approach to morality
assumes that we acquire virtue through
practice. By practicing being honest,
brave, just, generous, and so on, a person
develops an honorable and moral
character.bits.
Teleological ethics
• teleological ethics, (teleological from
Greek telos, “end”; logos, “science”),
theory of morality that derives duty
or moral obligation from what is good or
desirable as an end to be achieved.
• Also known as consequentialist ethics, it is
opposed to deontological ethics , which
holds that the basic standards for an
action’s being morally right are
independent of the good or evil generated.
Ethical egoism
• Ethical egoism is the view that people ought
to pursue their own self-interest, and no one
has any obligation to promote anyone else’s
interests. It is concerned with how people
ought to behave.
• ethical egoism is quite different from
psychological egoism, the theory that all our
actions are ultimately self-interested.
• Psychological egoism is a purely descriptive
theory that purports to describe a basic fact
about human nature.
MORAL RELATIVISM
• Moral Relativism asserts that moral
standards are culturally-defined and
therefore it may be impossible to
determine what is truly right or wrong.
• Moral relativism is the idea that there is
no universal or absolute set of moral
principles. It’s a version of morality that
advocates “to each her own,” and those
who follow it say, “Who am I to judge?”
THANKYOU

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