BUSINESS ETHICS

DEFINITION 8. Business Ethics comprises principles and standards that guide behavior in the world of business. 9. Business Ethics is a form of applied ethics that examines 10.ethical rules and principles within a commercial context 11.the various ethical problems and duties that apply to commerce people FORMS OF BUSINESS ETHICS There are two forms of Business Ethics i.e. Normative and Descriptive NORMATIVE BUSINESS ETHICS Normative business ethics formulates norms and standards that provide a uniform behavior for those who are engaged in commerce. DESCRIPTIVE BUSINESS ETHICS Descriptive business ethics describes the existing economic standards of different social systems. BRANCHES OF ETHICS

Applied ethics, Business ethics, Professional ethics, Social ethics and Bioethics are various branches of ethics. Business ethics is further divided into many fields: 12.Ethics of finance and accounting 13.Ethics of human resource management 14.Ethics of sales and marketing 15.Ethics of production 16.Ethics of economic systems 17.International business ethics OVER VIEW OF ISSUES IN BUSINESS ETHICS 1. CORPORATE SOCIAL RESPONSIBILITY------- CSR CSR is an umbrella term under which the ethical rights and duties existing between companies and society or companies and shareholders are debated. Issues concerning the moral rights and duties between a company and its shareholders 2. SOCIAL AND ETHICAL RESPONSIBILITY Social responsibility is the obligation a business assumes to maximize its positive effect while minimizing its negative effect on society. Social responsibility consists of the following responsibilities: --Economic (satisfy investors) --Legal (obey the law) --Ethical (expected activities and behaviors)

--Philanthropic (benevolent activities and behaviors) ETHICS OF HUMAN RESOURCE MANAGEMENT------ HRM HRM covers those ethical issues arising around 18.the rights and duties of employer and employees. 19.Discrimination issues of age, gender, race, religion, disabilities, weight and attractiveness. 20.Occupational safety and health GENERAL PURPOSE OF BUSINESS ETHICS Our future prosperity is directly linked with the prosperity of our customers, dealers and share holders. The principal purpose of a business ethics is to maximize returns to its shareholders or Investors or place profit maximizing above everything else. Under this view only those activities which increase profitability should be encouraged. The economist Milton Friedman was a leading proponent of this view. HISTORICAL REVIEW OF BUSINESS ETHICS 21.1960 ------Was the period of the rise of social issues in business

22.1970 ------ Business ethics as an emergent field -- Business professors began to write about social responsibility -- Philosophers became involved in business ethics -- Conferences were held and centers developed -- Issues: bribery, deceptive advertising, price fixing, product safety were debated.

23.1980 -- MEMBERSHIP IN BUSINESS ETHICS ORGANIZATIONS INCREASED Ethics centers provided: publications, courses, conferences, seminars and committees
24. --1990 ------ INSTITUTIONALIZATION OF BUSINESS ETHICS

-- Guide lines (standards and procedures) for Organizations formed -- Took preventive actions against misconduct -- Systems of monitor and audit were introduced -- Consistent enforcement of ethical procedure -- Continuous improvement was emphasized 2000 AND BEYOND Realization that business programs are good for business Awareness of varying global standards e.g. the use of child labor 25.WHY STUDY BUSINESS ETHICS? -- Reports of unethical behavior are on the rise

-- Society evaluation of right and wrong affects its ability to achieve its business goals -- Individual ethics is not enough -- Helps identify ethical issues 26.GOLDEN RULES (GUIDING VALUES) FOR SUCCESSFUL BUSINESS 27.Showing respect for the people (business partners, customers, employees) 2. Taking responsibility for our actions. If you are a supervisor or manager, the ultimate responsibility for your actions is yours. 3. Providing products of the highest quality 4. Supporting innovation every day. (because quality comes from commitment, experience and innovation) 5. Provide friendly and speedy service 6. Have fun doing business 7. Improve, Learn (change is good in the form of improvement. So we should continually our products, our systems and ourselves. 28.Appearance matters 9. Be tolerant.

(99% of all conflicts and tensions among people is the result of misunderstanding about the actions, words and attitudes of others. So we should maintain sufficient flexibility to allow us to first listen, then adapt to and meet the specific needs of our clients). 10. Be always fair. Self evaluation is a critical component of business ethics. Reflect on your own behaviors to ensure you are on the ethical track. 11. Make ethics a part of your life. Think about it. When it is ok to be unethical? The answer is NEVER! What are the parts of your job and human interaction to which honesty, Respect and doing right dont apply? THERE ARE NONE! ETHICS IS NOT A SOMETIMES THING. IT IS AN ALL THE TIME THING. It is reflected in every thing you do. 12. Develop good personal relationship with everyone