You are on page 1of 12

1

BUSINESS OBJECTIVE V. ETHICS


Often ethical conflict between making
money and doing what is right
People in business claim they are bound
only by law, not by normal norms
Business is no concern with ethics
Moral is personal matter

2
Positive business ethics:
i.e personal ethics, fairness, integrity, truth
telling, dependability, business plan, values
based.

3
ETHICS AND MORALITY
Ethics
Solomon ethics means character/custom
How people ought to act - individual
character
Its basic concept:-
A.individual character a good person
B. the social rules that govern and limit our
conduct morality

4
Ethics means how people ought to be
distinguish from morality which refers to
human conduct & values.
Ethics presupposes the existence of
morality.
The morality of society is related to its
customs and law of society.

5
Morality
Rules of human behavior/human conduct and
values
Specifies certain act as wrong or immoral
Action can be viewed from moral perspective
including business
Those practices & activities that are considered
importantly right and wrong
The rules that govern those activities
The values that embedded, fostered or pursued by
those activities & practices
6
BUSINESS ETHICS
Part of general field of ethics
What is business ethics?
A study what constitutes right and
wrong/good and bad in business activities
Thus, it is not the study of what is legal but
of the application of moral standards to
business decisions.
Moral standard s are canons of personal
behaviour that are neither legislated nor
changed by legislation.
7
AMERICAN MYTH OF A MORAL
BUSINESS
A popular & widespread view among
American businessman
It describes how American Business and
businessman perceive themselves & are
perceived by others.
Business is concerned primarily with profit

8
Business & people in business are not
explicitly concerned with ethics
They are not unethical or immoral
Business is not expected to be concerned
with ethics

9
RELATION BETWEEN BUSINESS
AND MORALITY
Business and moral are related
Business is an important part of
contemporary society
Morality consist of rules of human
behaviors & specifies that certain actions
are wrong or immoral or vice versa
Business presuppose a background of
morality & would be impossible without it.
10
BUSINESS RESPONSIBILITIES
Merely profit making or
Social responsibilities?
Narrow view profit maximization
Frieman: business has no special
responsibilities other than to maximize
profits

11
Broader view corporate social responsibility
Keith Davies: social responsibility implies that
business decision maker in the process of serving
his own business interests is obliged to take
actions that also protect and enhance societys
interest
In this manner, harmony is achieved between
businesss action and the larger social system.
The businessman becomes concerned with social
as well as economic outputs and with total effect
of his institutional actions in society.

12