Module-I

Introduction to Business Ethics

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 Content
a. Ethical philosophies h. An alternative to moral principles:
b. Concept of business ethics virtue ethics,
c. Ethical Principles in business i. Morality in international context,
Moral issues in business
d. Scope of business ethics
j. Worker’s and employee’s rights
e. Developing a code of conduct for and responsibilities.
employees
k. Business Ethics in Indian
f. Features of a good ethics Perspective.
programme
g. Ethical dilemma
h. Advantages of Business Ethics
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Gurudev Sri Sri Ravi Shankar on
Ethics
https://www.youtube.com/watc
h?v=UfCLpWXRVzE
from 0.9

https://
www.youtube.com/watch?v=xE
EgQzQQx1A
0.36 till 3.47

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Ethical philosophies
Right and wrong behavior

Three theories:
a. Meta- where our ethical principles come from, and what they
mean.
b. Normative- more practical task, arrive at moral standards that
regulate right and wrong conduct.
c. Applied- examining specific controversial issues: abortion,, animal
rights, environmental.

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Concept of business ethics
A set of professional
or applied ethics that
review situations in
business environment.
Ex: Conflict between
profit maximizing and
social and legal Ethics
responsibilities of the
business.

Business Corporation Individual

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Concept of business ethics
a. Businesses as a "Corporate Entity”

- Entity with right and liabilities (person)

- Situation: personal, social, business
- Local, national, global

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Concept of business ethics
b. Business Ethics considered as “Good”

- Norms, values – keeping expectation (profit

but people)
i) Discourage breaking law
ii) Avoid civil law suits
iii) Denotative company to damage image &
helps improve business profitability

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Concept of business ethics
c. Unethical Business
Practices

- Unethical practices without

breaking law
- eg: price, quality, quantity,
working hrs
- Making profit but at cost
of moral or ethical values

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Concept of business ethics
d. Moral Rights

- Born right (innate)

- Given right to protect innate “Think a min”

Positive: must be provided/ obliged {right to trail}

Negative: no interference/ not obliged {freedom

of speech}

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Concept of business ethics
e. The Concept of Justice

- Allocating benefit & burden to all people in society; a fair way

i) Egalitarianism: all human are equal
ii) Utilitarianism: welfare to over all
iii) Social justice: burden distribution as people’s ability and benefit
iv) Capital justice: receive benefits proportionate to her/his contri to
society
v) Libertarian justice: 1. Principle of equal liberty 2. Difference of Principle
* Everyone is responsible for one’s own future.
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Assignment

Theory of justice Your theory / practice of ethics

1. John Rawl’s 1. You have

2. Plato 2. You want

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Ethical Principles
• Universal standards of right and wrong behavior
• Either a company or person
• Guide to make decision
• Establish criterial
• Your decision will be judged Character Reputation
Tree Shadow
(What you (What ppl
Abraham Lincon: Perception are) think of
you)

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 Ethical Principles in Business
1. Honesty 7. Respect for
2. Integrity others
3. Promise- 8. Law abiding
keeping 9. Commitment
4. Loyalty to excellence
5. Fairness 10. Leadership
6. Caring 11. Reputation
and morale
12.
Accountability

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Scope of Business Ethics
1. Ethics in compliance
2. Ethics in Finance
3. Ethics in Human Resources
4. Ethics in Marketing
5. Ethics of Production

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Developing code of conduct for
employees
Written rules and principle

1. Purpose
2. Development
3. Develop and integrate
4. Publish

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A great code of conduct is:
a. Easy to understand
b. Comprehensive.
c. Supported by leadership
d. Accessible
e. Visually appealing

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Features of a good ethics
programme
a. Code of conduct
b. Code of ethics
c. Statement of values
d. Ethics officer
e. Formal ethics training
f. Systems of monitoring
auditing, and enforcement
g. Ethics audit
h. Social audit
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Assignment
Examples by companies: Link in
note
1. Johnson & Johnson
1. Google 2. Uniliver
2. Coco cola 3. IBM
3. Hershey's 4. Toota
4. Starbucks 5. Nokia
5. IKEA 6. General Electrics
6. Microsoft

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Ethical dilemma

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What Causes an Ethical Dilemma
in Conducting Business?
1. Pressure from Management
2. Ambition and Discrimination
3. Negotiation Tactics
4. Information Access
5. Professional Life Versus Family Life

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Ethical dilemma examples
Moment of truth
https://www.youtube.com/watch?v=7chfmZ469lE

Workplace Ethics Scenarios

https://www.youtube.com/watch?v=izXuboAZzCM

Your co-worker asks you to cover for him so he can

sneak out of work early to go to his son’s softball
game. Do you agree? If he went anyway, would you
keep silent?
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 6-step method for managing
ethical dilemma
1. Never Lie. It’s immoral
2. Don’t respond more quickly than you need to.
3. Understand your legal, ethical and moral responsibilities
4. Reach out to outside experts
5. Devise a strategy based on facts, logic, and sound advice.
6. Prepare in advance how and what you are going to
communicate

“Ethics is knowing the difference between what you have a

right to do and what is right to do.” - Potter Stewart
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Business Ethics and its

Advantages Dis-advantages
1. Provide a competitive 1. Limited ability to maximise
advantage in terms of profit
customers 2. Time consuming to implement
2. Improve employee happiness the practices
3. Attract more investors
4. Better for society
5. Positive Work Environment
6. Avoid Legal Problems
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Virtue ethics – Character based
ethics
Characteristics and behaviors a good person has

A right act is the action a virtuous person would do in the same

circumstances

The three questions

• Who am I?
• Who ought I to become?
• How ought I to get there?
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Principles
Virtue ethics teaches:
• An action is only right if it is an
action that a virtuous person would
carry out in the same
circumstances.
• A virtuous person is a person who
acts virtuously
• A person acts virtuously if they
"possess and live the virtues"
• A virtue is a moral characteristic
that a person needs to live well.
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Assignment
Lists of the virtues
• Prudence
• Justice
• Fortitude / Bravery
• Temperance

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Morality in international context
• sustainable development
• pleasant cooperation
environment
• moral values

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Ethical Issues in International
Business
1. Employment practices
2. Human rights
3. Environmental regulations
4. Corruption
5. The moral obligation of multinational companies

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Assignment
• Examples- Ethics and Management Practices
• Combat corruption

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 Worker’s and employee’s rights
and responsibilities
Employees
• to personally do the work they were hired to do
• to do their work carefully and seriously (In some cases, they could be fired or disciplined if they're often late for work, or if they're absent too often or for no good
reason.)
• to avoid putting themselves or others in danger
• to follow their employer's instructions (There are some exceptions. For example, if an employer asks an employee to do something dangerous or illegal, the
employee doesn't have to.)
• to be loyal

When Employees Don't Respect Their Responsibilities

• If employees don't respect their responsibilities, the employer is allowed to take certain actions:
• discipline employees, such as giving a written warning, or suspending them
• take other action against employees, such as giving a letter evaluating their performance, or demoting them (that is, giving them a lower job)
• fire employees if they do something very serious, such as stealing from the office
• take employees to court to make them pay an amount of money (for example, if an employee quits without telling the employer in advance, or if an employee
quits before the date in the employment contract)
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• take employees to court to stop them from doing things that are harmful to the business
 Worker’s and employee’s rights
and responsibilities
Employers’
• Employers must give their employees a place to work and make sure they have access to it. They must give them the tools, equipment and other things they need
to do their work.
• Employers must pay their employees the salary and benefits they agreed to, including vacation, paid holidays and other types of holidays.
• Employers must make sure their employees' working conditions are safe.
• In some cases, employers must give their employees written notice that their contracts are ending or that they are being laid off. Note that employers can pay
employees a sum of money instead of giving the notice.
• Employers must treat their employees with respect. They must make sure their employees are not harassed or discriminated against.

When Employers’ Don't Respect Their Responsibilities

• Courts and grievances cell

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 Business Ethics in Indian
Perspective
Presentation

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End of 1st Module

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