Contents

Contents.................................................................................................................................... 1 Values ...................................................................................................................................... 1 Morals & values......................................................................................................................... 1 Ethics ....................................................................................................................................... 2 Ethics and morals/morality........................................................................................................ 3 Business Ethics......................................................................................................................... 3 What are the advantages of studying usiness ethics!............................................................."

Values
Values are the rules y #hich #e ma$e decisions a out% i. right and #rong ii. should & shouldn&t iii. good and ad Values are our fundamental eliefs or standards that incline us to act or to choose in one #ay rather than another' they are our o#n standards. Values tell us% i. #hich values are more or less im(ortant ii. #hich is useful #hen #e have to trade off meeting one value over another. ) com(any&s core values are those eliefs and (rinci(les that (rovide the ultimate guide in the com(any&s decision*ma$ing. Values are eliefs of a (erson or social grou( in #hich they have an emotional investment (either for OR against something) example : He has very conservative values E+am(les of values%.honesty' res(onsi ility' (atriotism' res(ect and fairness Values are su ,ective' and vary as a result of our culture' eliefs' and e+(eriences.

Morals & values

Morals are system of elief that are taught for deciding good/ ad%values are (ersonal eliefs or something that comes from #ithin

 Morals contri ute to the system of eliefs/values #hich #e get from the society. Morals are taught y the society to the individual #hereas values come from #ithin. Morals have more social value & acce(tance than values' therefore a (erson is ,udged more for his moral character than the values. Moral is a $ey for leading a good life in right direction #hereas value is im i ed #ithin a (erson' a value can e ad or good de(ending on the (erson&s choice. Morals are related to one&s religion' usiness or (olitics #hereas values are (ersonal fundamental eliefs or (rinci(le. Morals are dee( seated #hereas values $ee( changing #ith time & needs. -o conclude' Morals are li$e commandments set y the elders and to e follo#ed y the descendants. -hey can e set y ones elders or religious teachers or leaders of society #ho #ant to lead (eo(le a#ay from immoral thoughts. .ne al#ays treasures the morals throughout his life and they never change #ith time or conditions. While on the other hand values are not set y the society or teachers' ut are governed y an individual. Values do not mean that it is al#ays right to do so. Whatever is valua le for one (erson may not e the same for the other. /ence it is (ersonal as(ect and changes according to different situations #ith time and needs.

Ethics
Ethics is a formal system or set of rules #hich are e+(licitly ado(ted y a grou( of (eo(le. E.g. medical ethics' cor(orate ethics' legal ethics. 0f you accuse someone of eing unethical' it&s e1uivalent of calling them un(rofessional and may e ta$en as significant insult & (erceived more (ersonally than if you called them immoral (which of course they may also not like) Ethics are defined as rules or standards governing the conduct of a (erson or the mem ers of a (rofession. Ethics & Ethos i. -he #ord 2ethics3 is derived from the 4ree$ ethos' meaning 2customary3 or 2conventional.3 ii. -o e ethical in the sense of ethos is to conform to #hat is ty(ically done' to o ey the conventions and rules of one&s society and religion. -he inner*guiding moral (rinci(les' values & eliefs that #e use to i. )nalyse or inter(ret a situation and% ii. 5ecide #hat is the 2right3 or a((ro(riate #ay to ehave

 Moral guidelines #hich govern good ehaviour i. 6o ehaving ethically is doing #hat is morally right Ethics as a normative science i. 0t lays do#n norms or standards of #hat is good & #hat is ad. 0t s(ecifies #hat #e ought to do & #hat #e ought not to do' in a certain situation. Ethical conduct aims at #ell eing of (eo(le* if our thoughts' deeds do not cause any harm or (ain to other living creature and are in harmony #ith nature then our conduct is ethical. Ethics gives us the vision to discriminate & decide on a course of action.

Ethics and morals/morality

Morals define (ersonal character #hile ethics stress a social system in #hich the morals are a((lied. 0n other #ords ethics (oint to standards or codes of ehaviours e+(ected y the grou( to #hich the individual elongs' e.g. com(any ethics' family ethics 7or e+am(le' a criminal defence la#yer&s (ersonal moral code li$ely finds immoral & re(rehensi le ho#ever' ethics demand the accused client e defended as rigorously as (ossi le. Even though the la#yer $no#s the (arty is guilty & that a freed defendant #ould (otentially #ould lead to more crime. -he logic here is 8egal ethics must override (ersonal morals for the greater good of a ,ustice system in #hich the accused are given a fair trial. Ethics are internally defined & ado(ted' #hilst morals tend to e e+ternally im(osed on other (eo(le

Business Ethics
5eciding #hat should e done and #hat not should e done from usiness (oint of vie# 0s a ehaviour that a usiness adheres to in its daily dealings #ith the #orld -he ethics of a (articular usiness can e diverse. -hey a((ly not only to ho# the usiness interacts #ith the #orld at large' ut also to their one*on*one dealings #ith a single customer. Business ethics (rescri es standards of ho# the usiness is to e carried out. 0t lays do#n guidelines for the com(any&s res(onse & accounta ility to its various sta$eholders. )n ethically res(onsi le com(any is one #hich has develo(ed a culture of caring for (eo(le & for the environment' a culture #hich flo#s do#n#ard from the to( Managers & 8eaders.

 Many usinesses have gained a ad re(utation ,ust y eing in usiness. -o some (eo(le' usinesses are interested in ma$ing money. Ma$ing money is not #rong in itself. 0t is the manner in #hich some usinesses conduct themselves that rings u( the 1uestion of ethical ehaviour.

4ood usiness ethics should e a (art of every usiness. 6ay Com(any 9)& does usiness #ith com(any 9B& #hich is considered to e unethical' does this ma$e the first com(any unethical y association! 6ome (eo(le #ould say yes' Com(any 9)& has a res(onsi ility and it is no# a lin$ in the chain of unethical usinesses.

Many glo al usinesses' including ma,or rands are seen not to thin$ too highly of good usiness ethics. Many ma,or rands have een fined millions for rea$ing ethical usiness la#s. Money is the ma,or deciding factor.

0f a com(any does not adhere to usiness ethics and rea$s the la#s' they usually end u( eing fined. Many com(anies have ro$en anti*trust' ethical and environmental la#s and received fines #orth millions. -he (ro lem is that the amount of money these com(anies are ma$ing out#eighs the fines a((lied. Billion dollar (rofits lind the com(anies to their lac$ of usiness ethics' and the dollar sign #ins.

) usiness may e a multi*million seller' ut does it use good usiness ethics and do (eo(le care! Business ethics can e a((lied to everything from the trees cut do#n to ma$e the (a(er that a usiness sells for im(orting coffee from certain countries.

When a com(any starts ma$ing large amounts of money' it may not #ish to (ay close attention to their ethical ehaviour. -here are many com(anies that (ride themselves in their correct usiness ethics' ut in this com(etitive #orld' they are ecoming very fe# and far et#een.

 )n organisation has to maintain a fine alance & care of the interest of the shareholders on one hand & other sta$eholders li$e em(loyees' su((liers' customers & community on the other hand. 0t should e noted that all the sta$eholders have different o ,ective of #hat they e+(ect from the com(any & at times these o ,ectives can e conflicting in nature. 7or e+am(le' ma+imisation of shareholders #ealth is one of the im(ortant o ,ective of any com(any' ho#ever' #hile meeting this o ,ective it shouldn&t neglect other o ,ectives of other sta$eholders : li$e em(loyees needs a fair remuneration' good #or$ing conditions' 1uality (roducts to the customers at a reasona le (rice. .ffering good em(loyment o((ortunities to the society' fund develo(ment (ro,ects as a social res(onsi ility & follo# a disci(line & trans(arency in all its financial dealings. 0n nutshell' 1. Ethics is im(ortant for any usiness & the (rogress of a society 2. Ethics ma$es for an efficient economy' not the govt la#s. 3. Ethics & (rofits go together in the long run.

What are the advantages of studying business ethics?

6tudy of ethics & study of usiness ethics are closely related i. Management is concerned #ith ho# decisions affect the com(any (growth of the company) ii. Ethics is concerned #ith ho# decisions affect everything (general context of the world) ) usiness Manager cannot ma$e right decisions #ithout understanding 2 usiness management in (articular3 as #ell as 2ethics in general3. By studying & (racticing the ethics Managers are a le to resolve the dilemmas more effectively. 6uch managers #ill not e the slaves of material (ossessions' accumulate #ealth y #rong means. Managers #ho (ractice usiness ethics #ould e led y divine thoughts #ithin & through their relentless ethical conduct. Business e+ecutives can a((ly the ethical (rinci(les in their routines' & are in a (osition to ,udge situations ethically. 6tudy of ethics leads students res(ect o((osite vie#s and reflecting u(on them 0t hel(s uild & groom a value ased organisation. )n ethical ehaviour #hich is im(ortant for usiness leaders as they influence the ethical climate for everyone else. ) value ased organisation (ossess a high degree of trust & integrity & em(o#ers all the sta$eholders. Creates an a#areness a out their social res(onsi ility : ) usiness has to share (art of its (ros(erity #ith the community' y offering amenities & services not other#ise availa le to the needy (art of the community.

 6tudy of ethics engages students in an active (rocess of thin$ing and 1uestioning 6tudy of ethics (rovides i. a language & a conce(tual frame#or$ #ith #hich one can thin$ & tal$ a out ethical issues

ii. Ma$es one a#are of the (otential conse1uences of one&s actions iii. E+(osure to s(ecialised areas such as (roduct lia ility' em(loyment' environmental (rotection' customer focus etc ;no#ledge & (racticing of usiness ethics can im(rove overall usiness conduct i. Business scandals can e reduced if the em(loyees (ossess the s$ills' voca ulary to raise an ethical issue in an organisation Thus ethical conduct would be self-realised conduct which would give a new vision to the Managers & people associated with him/her.

In nutshell, Business ethics is Management carried out in the real world!, this is wh" business managers should stud" ethics.