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MPW 1153
MORAL STUDIES


Business Ethic

UCD2F1209-DIT {SE}
(UCF1207MO)


NAME : Kartick A/L S.Ravi Chandran
ID NUMBER: TP025722
TITLE: 7
Due DATE: 16
th
January 2014




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Table of Contents


Acknowledgement ......................................................................................... Error! Bookmark not defined.
Abstract ......................................................................................................................................................... 4
Introduction ................................................................................................................................................... 5
Essay ............................................................................................................................................................. 6
Skills-Ethical Decision .................................................................................................................................. 8
Advantage of Ethical Business ..................................................................................................................... 9
Disadvantage of unethical business ............................................................................................................ 10
Moral Values ............................................................................................................................................... 11
Conclusion .................................................................................................................................................. 13
Appendix ..................................................................................................................................................... 14
Figure 1 ................................................................................................................................................... 14
Figure 2 ................................................................................................................................................... 14
Figure 3 ................................................................................................................................................... 15
Figure 4 ................................................................................................................................................... 15
References ................................................................................................................................................... 16









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Acknowledgement


I take this opportunity to express my profound gratitude and deep regards to Sir Suresh S
Saminathan. I also take this opportunity to express a deep sense of gratitude to my college for
allowing me to use and provide necessary information regarding the project that I have been
working on.
Lastly, I would like to thank almighty, my parents, and friends for their constant encouragement
without which this assignment would not be possible. Thank You.













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Abstract

Business ethics is a form of professional ethics that examines ethical principles and moral or
ethical problems that arise in a business environment. It applies to all aspects of business conduct
and is relevant to the conduct of individuals and business organizations as a whole. Applied
ethics is a field of ethics that deals with ethical questions in many fields such as medical,
technical, legal and business ethics.

In this assignment we will consider the factor of Ethical in Business as an asset for the
organization.

Form the business point of view each and every organization tries to achieve the main goal,
which obviously is to maximize the profit.

But while doing so these organizations should also consider their moral, ethical and social
obligations. If these obligations are neglected, in the long run it would implicate many
devastating results, while fulfilling those could prove to be a very valuable asset in the long run.









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Introduction

The topic that I have chosen is Do we need to be ethical in business? . As I have been
researched on this topic, it is very important for an individual to be ethical in business.

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.

In the most basic terms, a definition for business ethics boils down to knowing the difference
between right and wrong and choosing to do what is right. The phrase 'business ethics' can be
used to describe the actions of individuals within an organization, as well as the organization as a
whole.

Business ethics can be both a normative and a descriptive discipline. As a corporate practice and
a career specialization, the field is primarily normative.









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Essay

Businesses have great potential to transform people's lives and to alleviate poverty through
generating economic growth. They produce goods and services that customers want and they
create jobs. Through paying taxes, they contribute to government revenue that can finance
schools, hospitals and other public services.
Ethical business practices include assuring that the highest legal and moral standards are
observed in our relationships with the people in our business community. This includes the most
important person in our business, our customer. Short term profit at the cost of losing a
customer is long term death for our business.
A reputation for ethical decisions builds trust in your business among business associates and
suppliers. Strong supplier relationships are critical to a successful business. Consider the
problems you might have if you could not supply what the customer needs...at the time that they
need it.
The entrepreneur is the role model for employees. If our behavior includes lying to customers,
taking money out of the cash register, or taking home some of the inventory or supplies, you
cannot be surprised if our employees follow our lead. Our family members may see the business
as their own and take things that really belong to the business. Employees may see this as being
dishonest, or as a conflict with their needs for a raise in pay.
The community expects our business to operate in an ethical manner that enhances the image of
the community as a whole. If you are located in a mall, for example, our code of ethics will help
or hinder customer traffic for the other businesses too. A reputation for telling customers
anything they want to hear, regardless of the truth, eventually hurts our business and other
businesses around us. It usually isn't illegal to lie to customers, but it isn't good business.


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Ethical behavior is merely making good business decisions based on an established "code of
ethics". Entrepreneurs should establish a written code of ethics that can serve as a framework for
decisions to be made by the entrepreneur as well as the employees. In developing this code of
ethics we should consider the following items:
1. Identify your general principles that would lead to fair business practices.
2. Check with your industry association for basic standards to review
3. Allow for the fact that ethical questions do not always have a unique, faultless answer.
4. Write out specific statements that will assist you and others in making day-to-day ethical
decisions.
5. Apply your code of ethics to a written policy and procedure manual identifying the major rules
for operating your business.
6. Train your employees (and family members) to make ethical decisions about the business.










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Skills-Ethical Decision

Consider how the decision-making process will help us improve the success of our business:

1. Define the problem requiring a decision. Often we jump to conclusions about a situation
without even taking time to clarify the problem
2. Consider alternative solutions to the problem. There is always more than one solution to
any problem. Practice thinking about possibilities before taking action.
3. Identify the consequences of alternative solutions. There are many different consequences
possible for choosing different alternatives. Entrepreneurs need to think about both the short-
term and long-term consequences likely to result from their decisions.
4. Collect information if you do not have enough to make the right decision. This is where a
company policy and procedure guide may help employees check out their approach to a problem.










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Advantage of Ethical Business

1. Its Right
acting ethically is more than a tool for achieving results. Unless leaders are committed to
do the right thing regardless of consequences, ethics may be seen as manipulative.
2. Personal Pride
Company leaders and employees can take genuine pride in their accomplishments
knowing they didnt bend rules, cut corners, or hurt people to accomplish their goals.
3. Employee Performance
People produce best in an open, creative, ethical environment. Companies that have a
poor reputation have difficulty attracting and retaining top talent.
4. Customer Loyalty
Quality, cost, availability, and other factors are not enough to maintain customer loyalty.
Customers are also looking at the reputation of the company.
5. Supplier/Partner Trust
In an era of virtual corporations, partnerships, and extended enterprise, no company is
self-sufficient. Successful partnerships are built on trust and trustworthiness.
6. Investor Confidence
Todays investors will avoid a company that is not responsible and ethical. Recent market
declines have partly resulted from concerns about unethical accounting practices.
7. Public Acceptance
Companies that tolerates unethical practices in todays transparent era, will almost
certainly be exposed, then boycotted and punished in the marketplace.
8. Regulatory Freedom
when citizens and governments are aggravated by irresponsible, unethical business
behavior, greater regulation and bureaucratic red tape is the result.
9. Litigation/Indictment Avoidance
Without strong ethical values companies easily drift to the legal edges dangerous
territory where bending and breaking the law leads to lawsuits and indictments.
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Disadvantage of unethical business


Business ethics reduce a company's freedom to maximize its profit. For example, a multinational
company may move its manufacturing facility to a developing country to reduce costs. Practices
acceptable in that country, such as child labor, poor health and safety, poverty-level wages and
coerced employment, will not be tolerated by an ethical company. Improvements in working
conditions, such as a living wage and minimum health and safety standards reduce the level of
cost-savings that the company generates. However, it could be argued that the restrictions on
company freedom benefit wider society.

Loss of custom/ sales (unethical behavior)
Difficult to ensure ethical behavior exists in large companies
It's difficult to define what is unethical
Damage reputation (unethical behavior)
Illegal activities (unethical behavior)
Decrease competiveness
Increase costs








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Moral Values

Honesty
The old adage, "honesty is the best policy" is true today more than ever. It's not just lip service.
Employee manuals from most scandalized corporations are likely to contain slogans touting its
commitment to honesty. Claiming to be honest in an employee manual is pass. We're either
honest or not. Even if we haven't got caught yet, most people know who is and who isn't.
Also not to be left out that we should also be honest to the pupil that we are dealing with which
is customers. We need to tell and talk the truth in order for the customer to stay loyal.

Integrity
Integrity connotes strength and stability. It means taking the high road by practicing the highest
ethical standards. Demonstrating integrity shows completeness and soundness in our character
and in our organization.

Quality
Quality should be more than making the best product, but should extend to every aspect of your
work. A person who recognizes quality and strives for it daily has a profound sense of self-
respect, pride in accomplishment, and attentiveness that affects everything. From your memos to
your presentations, everything you touch should communicate professionalism and quality.




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Respect
Respect is more than a feeling, but a demonstration of honor, value, and reverence for something
or someone. We respect the laws, the people we work with, the company and its assets, and
ourselves.

Responsibility
Ethical people take responsibility for their actions. Likewise, actions show the ability to be
responsible both in the little and big things.

Just In Affairs
Ethical people always try solving out issues the correct way or moral ways.








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Conclusion

Ethics is based on a set of moral and ethical values. These values must be absolute - that is, we
must take them seriously enough to override any human rationalization, weakness, ego, or
personal faults. When all else fails, we will always look back to these core values to guide us.
Unfortunately, life is not that easy and there's always disagreement about what values should
reign supreme.
As the end of this project, I would like to conclude from the research that I have been done, it is
very important for an individual to be ethical no matter in business or our personal life. Being
ethics does give people a good impression towards us.
Furthermore, in order for a person to be ethic, they should have the moral values in them. This
moral values will never harm whereby does lead us to a proper environment.














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Appendix


Figure 1


Figure 2





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Figure 3


Figure 4







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References


Businesscasestudies.co.uk. 2014. Why should a business act ethically? - Business ethics and
corporate social responsibility - Anglo American | Anglo American case studies, videos, social
media and information | The Times 100. [online] Available at:
http://businesscasestudies.co.uk/anglo-american/business-ethics-and-corporate-social-
responsibility/why-should-a-business-act-ethically.html#axzz2pUUT7kKW [Accessed: 15 Jan
2014].
Entre-ed.org. 2014. Entrepreneurship Classroom Activities: ETHICAL BEHAVIOR IS GOOD
BUSINESS. [online] Available at: http://www.entre-ed.org/_teach/ethics.htm [Accessed: 15 Jan
2014].
Esjaeofficial.blogspot.com. 2014. Business Notes: The Disadvantages of Ethical/ Unethical
Behaviour | Esjae Official. [online] Available at:
http://esjaeofficial.blogspot.com/2012/03/business-notes-disadvantages-of-ethical.html
[Accessed: 15 Jan 2014].
Ethix.org. 2014. Nine Good Reasons to Run a Business in an Ethical Manner | ethix. [online]
Available at: http://ethix.org/2009/10/01/nine-good-reasons-to-run-a-business-in-an-ethical-
manner [Accessed: 15 Jan 2014].
Gallup, I. 2008. Evaluating Your Business Ethics. [online] Available at:
http://businessjournal.gallup.com/content/107527/evaluating-your-business-ethics.aspx
[Accessed: 15 Jan 2014].
Globalethicsuniversity.com. 2014. Ethical Values for Business Success. [online] Available at:
http://www.globalethicsuniversity.com/articles/valuesforsuccess.htm [Accessed: 15 Jan 2014].

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Small Business - Chron.com. 2014. Advantages & Disadvantages of Business Ethics. [online]
Available at: http://smallbusiness.chron.com/advantages-disadvantages-business-ethics-
10414.html [Accessed: 15 Jan 2014].
Toolkit.smallbiz.nsw.gov.au. 2014. Developing an Ethical Business Culture. [online] Available
at: http://toolkit.smallbiz.nsw.gov.au/part/17/85/369 [Accessed: 15 Jan 2014].
Wikipedia. 2014. Business ethics. [online] Available at:
http://en.wikipedia.org/wiki/Business_ethics [Accessed: 15 Jan 2014].
Abstract, B. 2014. Business Etics Abstract - Term Paper - Dolbytech. [online] Available at:
http://www.studymode.com/essays/Business-Etics-Abstract-425183.html [Accessed: 15 Jan
2014].