Ethical IQ Test

1.
You are a newly hired junior executive in a large manufacturing firm. The business conference you have been attending on behalf of your firm for the last two days in over. You had planned to fly home, but a couple of friends youve made at the conference are driving back by car and have invited you to ride with them. It would be a five-hour drive instead of a two-hour flight, but they would drop you at your doorstep. It would be stimulating to ride back with your new friends and it might benefit the company. You reason that the additional travel time would be out of your pocket, so to speak, not the firms. You decide to drive back with you new colleagues. You toss Rs. 100 into the refueling kitty during the midpoint pit stop.

Q. Would you cash in the return flight ticket and keep the money? NO

Depends

YES

Ethical IQ Test
2.
You have a strict code of ethics in your office regarding employee appropriation of office supplies. The most competent and longesttenured secretary is caught by you, the secretarys boss, taking typewriter ribbons and erasure tapes home in a briefcase. There is a rule against this as well as a clearly established procedure for providing employees with supplies if they do companys work at home. The code requires you to fire the secretary on the spot Q. Would you make an exception for this loyal worker?

NO

Depends

YES

Ethical IQ Test
3. A friend at work asks whether youd like a take-home copy of an expensive computer software program. You know it is protected by copyright.

Q. Would you let your friend make a copy for you?

NO

Depends

YES

Ethical IQ Test
4. You are the senior vice president for public relations in a large multinational corporation. One of your long-time friends in the marketing department confides to you that the boss is subtly suggesting that sales representatives give misleading information to prospective clients about a particular product. Your friend is very upset about it and wants your advice.
Q. Would you encourage your friend to follow the bosss suggestion?

NO

Depends

YES

Ethical IQ Test
5.
You are a marketing professional in a medium sized midwestern city. Three months ago you set up your own company. Your first big client wants to promote throughout your region a passive exercise machine. The home office in Texas claims the device is scientifically proven to take off pounds easily and quickly. The manufacturing firm does not have a national reputation and despite your repeated requests, has been unable to provide you with any scientific proof of its claims. Q. Would you continue serving this firm as a client without the scientific proof?

NO

Depends

YES

Ethical IQ Test
6.
You are the Director of research and development in your firm. The Personnel Officer has found two candidates for a vacant position in new product testing in your department. The better qualified candidate with more potential for promotion and future contribution to the organization appears to be rather cold and aloof and will likely clash with your personality. The less qualified candidate is your personal choice,even though the company will not be as well served. Q. Would you choose the less qualified candidate?

NO

Depends

YES

Ethical IQ Test
7.
You are the Product Manager for one of your firms largest dollar volume brands. You know that your product will soon be challenged by an improved version from a strong, wellfinanced competitor. One of your vendors offer to provide you with a confidential copy of the competitors strategic marketing plan. No price for the copy is mentioned.

Q. Would you utilize this vital information to help your brand?

NO

Depends

YES

Ethical IQ Test
8.
You have recently accepted the top marketing position at a new company. One of your first assignments is to approve an all expensespaid trip for the senior purchasing officer of one of your largest client firms. The four-day seminar in the Caribbean, sponsored solely by your company, would include first-class airline tickets for client and spouse, a three-day cruise following the seminar, plus a $ 500 honorarium. You know that this particular company does not have a written conflict-ofinterest policy. You also know that your new boss is very eager to have this purchasing officer of the seminar.

Q. Would you authorize the expenditure for this client?

NO

Depends

YES

Ethical IQ Test
9.
You serve as an outside member on the audit committee of the board of directors of a major pharmaceutical company that markets new drugs through practicing physicians. You have secretly learnt that your research department has developed an abortion pill that appears to be 100 percent safe and effective. However, it has been repeatedly rumored that your Chief Executive Officer will not let this product be brought to market because of deep religious convictions. Millions of dollars of potential revenue and profits will be lost.

Q. Would you let this secret decision of your CEO go unchallenged?

NO

Depends

YES

Ethical IQ Test
10.
You happen to overhear a couple of engineers in your company discussing a radically new product that your colleagues in upper management are anxious to see hit the market on schedule. You accidentally learn that the engineers are also quite concerned about some design flaws that could be harmful to product users, although the probabilities are very remote.

Q. Since you are not directly responsible for his product, would you completely ignore their comments?

NO

Depends

YES

Total up the number of times you circled each No. Depends, or yes in the space provided. Take the highest number in only one of the three categories, multiply it by 100, and then divide by 5.

This is your ethical IQ

Average is 100 perfect score is 200.

What the categories mean:

Purist A high number in No - Kind of a person who always acts ethically
-Confidence in your intrinsic sense of -what is good and true

You are first to cry out against unfairness or injustice You would not authorize the lavish Expenses for Caribbean Seminar You would blow the whistle on the ethically timed engineers

You would not let the secret decision of the CEO go unchallenged regarding the abortion pill


As a purist, you bring ethical stability and high standards to the groups of which you are an integral part.

Expedient: A high number in the Yes -Willing to breakrules if they seem silly -You believe you are doing right and your right is short term consequences -Some may call you as self centered. -Purists will call you greedy ambitions

You may ignore the rules in respect of Q2 the secretary - code of ethics are for others As an expedient manager you may in reply to Q7. ask a copy of software

 

As an expedient person your response will reflect your age, your ambition, the competitive intensity. You ethical contribution to groups and organisations is excitement and enthusiasm You tend to be a loner You are economically motivated, probably rich but lonely You are capable of risky ethical decision some of which could be disastrous.

Pragmatist -A high number of depends -- likely to feel conscience ridden frequently -You may appear to the ethically insecure since people judge by actions and you are passive

In Q4 you would take a long time to answer as senior VP PR about misleading clients You may answer Q6 on hiring the person on think though You response to Q3 regarding software think through on a no of factors

 

As a depends person in the group thoughtfully reasoned temperate ethical leadership You can bring extremes to center- you centerare less vocal serve as ethical CATALYST

Ethical Algorithm Ethical decision become more complicated for respondents higher up the corporate ladder As you move up the corporate ladder the ethical side also expands
1. As greater number of constituents will be affected by your decisions

2. Your decisions will have increased visibility

throughout the company.

3. Your decisions are more likely to have a permanent effect on employees, company policy and community 4. Doing the right thing will depend more on whose perspective you take 5. One or more constituents likely to disagree strongly with whatever decision you take.

Sound ethical decision making in todays business environment requires a lucid and vigorous instrument. The ethical algorithm is such a tool Four critical dimensions of corporate action Goals Methods Motives Consequences

How the Ethical Algorithm works Goals Methods Motives : : : What do you want to achieve? How will you pursue the goals? What personal needs drive you to achieve? What results can you anticipate?

Consequences: A career decision: Goal Method Motive : : :

Get Rich Rob banks Financial security make crores retire early

Consequences :

If you had an ethical side Method Consequences : : Would be unacceptable Caught, a prison term

If you get caught motives surface: Kleptomaniac Feed starving family Play Robinhood Unrepentant thief

Motives make a big difference

Hardest to unravel Rooted in childhood training culturally conditioned shaped and sustained by beliefs.

You can expand the algorithm

Goals : 1. Do you have multiple goals ? - business goals - an ethical goal Softer side - Jobs - Social benefits hard side - market share - profits

2. Are your goals compatible?

- Achieve both? - Might you have to sacrifice or reduce profits to meet ethical goals? - Parker Bros - Surrendered the business goal - J&J

3. Which constituents get top priority? Whom you feel accountable? - Stock holders customers - Employees employee - Management government

Business side

ethical side

Business goals are fairly routine ethical change with situation You can view ethical consideration as a constraint Your mission statement does not have an overtone of ethics

We are not suggesting that such companies are not law abiding. They enter the arena when they tend to start practices which are unacceptable price rigging - EF Hutton Kite Flying

What impact will your anticipated consequences have on your constituents? Put yourself in the shoes of each of your constituents in the GOALS go down the list and imagine consequences of each one of the constituents Are there any exogenous factors ? Uncontrollable unpredictable Murphys law What can go wrong- Will

Making money? Or doing right things

What is best for your employer? What is best for your own career? What is best for the customer?

Business Ethics are built on Personal Ethics no real separation:

Business Ethics are based on fairness

Does each transaction take place on a level playing field

Business Ethics require : Integrity Wholeness Reliability Consistency Treat with respect Honesty Keep promises Commitment

Business Ethics requires : Truth telling

Advertising Products Promises

Business Ethics require dependability - you may be new - unstable - going out of business

Business Ethics require a Business Plan - an image of itself - a vision of the future

Clearer the goal the stronger is the commitment

Business Ethics apply internally and externally

- Conference room - negotiations in good faith - Keep promises

Meet obligations to staff employers Vendors

Business Ethics require a profit

How we would live in the future is out of how we live in the present means and also end.

Business Ethics are values based Ideals Aspirations Clarity must on intent

Business Ethics comes from the Boss - Sets the tone

Either lead the way or communicate whether cutting corners, dis-respect or deception

Five Basic Assumptions

1. Business Ethics is a process :

means ends - little bit wrong: ?

2. Human behaviour is caused Why do business leaders behave the way they do? Personal values leadership styles

3.Actions have consequences: even unseen or delayed e.g: ASBESTOS TYLENOL 4.What is perceived as ethical depend upon the viewpoint of the constituent? 5. The need for good ethics
promote permit

Democracy and free enterprise

Foster:

10 Myths about Business Ethics

1. Myth: Business ethics is more a matter of religion than management. Altering peoples values or souls isnt the aim of an organizational ethics program managing values and conflict among them is..?

2. Myth: Our employees are ethical so we dont need attention to business ethics. When the topic of business ethics comes up, people are quick to speak of the Golden Rule, honesty and courtesy.

10 Myths about Business Ethics

3. Myth: Business ethics is a discipline best led by philosophers, academics and theologians. Business ethics is a management discipline with a programmatic approach that includes several practical tools.

4. Myth: Business ethics is superfluous it only asserts the obvious: do good! If an organization is struggling around continuing occasions of deceit in the workplace

10 Myths about Business Ethics

5. Myth: Business ethics is a matter of the good guys preaching to the bad guys Stress or confusion are not excuses for ethical actions they are reasons. 6. Myth: Business ethics in the new policeperson on the block. Business ethics was written about even 2,000 years agoat least since Cicero wrote Business ethics has got more attention recently because of the social responsibility 1960s.

10 Myths about Business Ethics

7. Myth: Ethical cant be managed Strategic priorities (profit maximization,expanding market share, cutting cost, etc.) are still skeptical about business ethics, believing you cant manage values in an organization 8. Myth: Business ethics and social responsibility are the same thing Social responsibility movement is one aspect of the overall discipline of business ethics

10 Myths about Business Ethics

9. Myth: Our organization is not in trouble with the law, so were ethical. Withhold information from superiors, fudge on budgets, constantly complain about others, etc. The boil the frog phenomena

10. Myth: Managing ethics in the workplace has little practical relevance Values management is also highly important in other Management and strategic planning.

BUSINESS ETHICS

RAYMOND BAUMHART S STUDY

What does ethical mean to you ? 50% - What my feelings tell me is right . 25% - What is according to my religious beliefs . 18% - What conforms to the Golden Rule .

According to Dictionary
Ethics means  Moral Philosophy, Moral Principles  The Principles of conduct governing an individual or a group  The study of morality Etymologically Ethics, in Latin Ethicus and in Greek Ethikos has come from the word Ethos meaning Character, Home place, Accustomed place.

What is Character ?
Character is expressed in terms of conduct Conduct is a series of actions taken together When these actions are expressed as good-bad, goodrightright-wrong, moral-immoral we are making moralmoral judgments Moral judgment requires moral standards. We can define morality, as the standard that an individual or a group has about what is right or wrong, good or evil.

Where does these Standards come from ?

From - Family, friends, various societal influences - Experiences, learning and intellectual development leads to Internalize Revise Discard Adopt -Maturing process may lead to develop standards that are intellectually adequate and more suitable for dealing with moral dilemmas of adult life. Whatever we say for an individual is true also for society in time cross-fertilization and rejection or crossabsorption of values.

3 LEVELS OF MORAL DEVELOPMENT

Lawrence Kohlberg s LEVELLEVEL-I
PrePre-Conventional Stage I - Punishment and Obedience Orientation Stage II - Instrumental and Relative Orientation

LEVELLEVEL- II
Conventional Stage III - Interpersonal Concordance Orientation Stage IV - Law and Order Orientation

LEVELLEVEL- III
Post Convention, Autonomous or Principled Stages Stage V - Social Contract Orientation Stage VI - Universal Ethical Principles Orientation

Nature, Characteristics of Moral Standards

1. .

2.

3.

4. 5.

Moral standards deal with matters that we think can seriously injure or seriously benefit human beings. Not established or changed by decision of particular authority but adequacy of reason that is taken to support and justify them. They take precedence over other non-moral nonvalues, even self-interest. selfBased on impartial consideration-universal. considerationAssociated with special emotions and vocabulary

WHAT, THEN, IS ETHICS ?

A Discipline that examines one s moral standards or the moral standards of a society how they apply to our lives. Nature of Ethics: - For Human Beings - It is a Science - It is normative Science, not descriptive, not as it is but as it ought to be. - Ought to be does not force but is voluntary.

Carol Gilligan s Female Approach- Web of ApproachRelationships

I Caring only for herself II Caring for others, neglecting herself III Balance between caring for others and caring for oneself

PURPOSE OF ETHICS
1. 2. 3.

4. 5.

Studies, judges Human Behaviour of self, others, society Establishes Moral Standards, Norms Judges Human Behaviours based on these norms Prescribes Moral Behaviour, what ought to be Expresses opinion about Human Behaviour like Human Rights

WHAT IS THE PURPOSE OF ETHICS FOR US ?

BUSINESS ETHICS
Application of Ethics in Business
Business Ethics concentrates on Moral Standards as they apply to Business Institutions, Organisations and Behaviour

Business Organisationsthe Business Organisations are

primary economic institutions through which people of modern societies carry on the task of producing and distributing goods and services Goods & Services Consumer

Resources Business Land Products Labour > Capital Salaries Tchnology Production

Distribution >Investors Return Employees Government Taxes

CORPORATIONS Modern Business Organisations exist in the form of Corporations. The law treats them as immortal fictitious persons who have the right to sue and be sued, own and sell property and enter into contracts all in their own name.

Modern Corporations
Consist of
(a) (b) (c)

Stockholders & Shareholders Directors, Officers, Managers Employees -Organisation structure -Rules and Regulations -Authority and Responsibility

Contribute capital, own Administer, run Provide labour, work

CoCo-ordination and control by

Interlinked with
(a) (b)

Suppliers Consumers

And
ECONOMIC, POLITICAL, LEGAL AND OTHER SOCIAL SYSTEMS WITHIN WHICH BUSINESS OPERATES ALL THE ABOVE ARE STAKEHOLDERS IN BUSINESS

SYSTEMIC

Ethical questions raised about the economic, political, legal and other social systems within which business operates e.g. Question of Displacement, Environment CORPORATECORPORATE-Ethical questions raised about a particular organisation s activities, policies, practices or structure e.g. Promotion, Transfer policy INDIVIDUAL-Ethical questions raised about a particular INDIVIDUALindividual or group within an organisation and their actions, decisions, behaviour, character etc.

ETHICAL ISSUES IN BUSINESS

WHETHER CORPORATIONS ACT OR ARE MORALLY RESPOSIBLE IN THE SAME SENSE THE HUMAN INDIVIDUALS ARE ?
YES Because of Rules that tie the organisations so that they act as individuals and have intended objectives But Organistions do not have feelings, they cannot act except through human beings NO Organisations are like machines, members blindly follow the Rules But At least some members usually know what they are doing and are free to choose whether to follow the Organisation s Rules or even to change these Rules BALANCED VIEW

WHO IS RESPONSIBLE ?
Corporation exists when there exists a properly qualified group of individuals who have agreed among themselves to incorporate and have legally incorporated Corporation acts when properly qualified members of the corporation carry out thei assigned duties within the scope of their assigned authority

This is true at all levels Because corporate acts originate in the choices and actions of human individuals it is the individuals who must be seen the primary bearers of moral duties and Moral Responsibility. Corporate organisations have moral duties and responsibilities in the secondary sense. Central point is we must always keep before Our eyes as we apply the standards of ethics to business activities and we must not the fiction of corporation obscure that human individuals underlie the corporate organisation.

Corporate policies, corporate cultures, corporate norms and corporate designs can and do have influence on the choices, beliefs and behaviour of corporate employees. They provide the world and the subject matter. But ultimately the individuals in the corporation act and so are morally responsible for their

action.

1.
 

of two types
2.

NATURE OF BUSINESS InETHICS Business activities ethical questions are

OvertOvert- Open like bribery, theft, tax evasion etc. CovertCovert-Complex corporate acquisition, personnel policy etc.

For a decision to be ethical it should possess characteristics like

(a) Right (b) Equitable (d) Proper (e) Fair (c) Good (f) Just

3.

Ethics is unstructured
(a) Ethics depends upon moral standards (b) Moral standards depend on our value system (c) Value system depends upon our background and experience (d) Since background and experience are different for different individuals ethical practices are different. different.

4.

Ethical decisions should express some obligation to others

CHARACTERISTICS OF BUSINESS ETHICS

1.

2.

Ethical Decisions differ with the individual perspective of different persons. Ethical Decisions are not limited only to themselves but affect a wide range of other situations as well. Similarly unethical decisions have wide ramifications. Ethical Decisions involve a tradeoff between cost incurred and benefits accrued- profits against social responsibilities. accruedConsequences of most Ethical Decisions are not clear. The only certainty is that somewhere, sometime, somehow, something positive will result from an Ethical Decision. Every person is individually responsible for the Ethical or unethical decision or action that he or she takes. Ethical Decisions are voluntary human action, not forced by others or situations beyond the control.

3.

4.

5.

6.

ETHICAL PRACTICES IN MANAGEMENT Ethical Decisions are much more difficult to make when a person is directly involved in the situation. It is easier to state what is right or wrong when a person is not directly involved in the situation i.e. to make decisions for others. Ethical Decisions are much more complex than merely deciding between right and wrong or between good and bad. There are certain amount of risk taking involved in making an ethical decision. There is also the responsibility to follow one s own Ethical Decision.

CODE OF ETHICS

CORPORATE EXCELLENCE
Many organisations exist and operate in the marketplace not just to survive and get by but to excel, to become centres of excellence, to become market leaders, release zero defect products in the market etc. All these are ethical pursuits; in fact, striving to achieve perfection and excellence in any field, in itself, can be termed as the basis of ethics.

Theory of corporate moral excellenceexcellenceCulture and values have a major role in creating an ethical environment in an organisation. Organisation culture has an impact on the behaviour of its employees. Values produce a sense of direction for employees and help to guide and control their day to day behaviour.

Ethics and Stakeholder TheoryTheoryManagement behaviour towards needs io and rights of its stakeholders plays a crucial role in building an ethical organisation.

Ethics and CorporateGovernanceCorporateGovernanceGovernance practices play a major role in building an ethical orgainsation.

INSRUMENTS FOR ACHIEVING CORPORATE EXCELLENCE

1. Corporate Mission Statement- Long Statementterm vision of what it seeks to achieve and the reasons of its existence 2. Code of Ethics- Statement of the Ethicsnorms and beliefs 3. Organisation Culture- Climate, Cultureatmosphere, mental attitude shared by

FORMATS OF CODES OF ETHICS

Compliance Codes- Directive Codesstatements which provide guidance and prohibit certain kind of conduct Corporate Credos- The broad general Credosstatements of corporate commitments relating to constituencies, values and objectives Management Philosophy StatementsStatementsThe formal statements, vision of the company of the business

IMPLEMENTATION OF CODE OF ETHICS

   

Organisational Structure- Distributing Structurepower and responsibilities Coordination- Usually HR Department Coordinationto coordinate Communication- Rules and Policies CommunicationSystems for Motivating and Monitoring Ethical performance-Training, performancePerformance Appraisal, CDA Rules, Audit, Vigilance, etc.

CORPORATE GOVERNANCE

Corporate Governance is the system by which business organisations are directed and controlled. The corporate Governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as the Board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance.

ISSUES IN CORPORATE GOVERNANCE

  

Ethical Issues Efficiency Issues Accountability Issues Since the activities of a corporation influences the employees, customers and society at large some of the accountability issues are concerned with Social Responsibiliy that a corporation may shoulder

INTERACTION BETWEEN BUSINESS AND SOCIETY

1. 2. 3. 4.

Growth - Responsibility Expectation Long term Orientation Reputation of the company Give - take relationship

STAKEHOLDERS
  

    

INTERNAL STAKEHOLDERS SHAREHOLDERS MANAGEMENT EMPLOYEES EXTERNAL STAKEHOLDERS CONSUMERS SUPPLIERS CREDITORS COMPETITORS COMMUNITY

CORPORATE SOCIAL RESPONSIBILITY

SOCIAL RESPONSIBILITY -KEITH DAVIS

Social Responsibilities refer to the businessman s decisions and actions taken for reasons at least partially beyond the firm s direct economic or technical interest

WHY SHOULD BUSINESS BE SOCIALLY RESPONSIBLE ?

Business organisations, today, apart from being economical entities are also considered to be social institutions, primarily for two reasons 1. Since business organisations exist and operate within social structure, they must earn social sanction, without which they will collapse and die out 2. Since business organisations exercise a dfinite and extensive influence on our social lifestyles, they must discharge social responsibilities

GUIDELINES FOR SOCIAL RESPONSIBILITIES

1.

2.

Business has a social role of trustee for Society s resources . Since Society entrusts business with its resources, business must wisely serve the interest of all its stakeholders, not just those of owners, consumers or labour Business should operate as a two way open system with open receipt of inputs from society and open disclosure of its operations to the public

3.

4.

Social costs as well as benefits of an activity, product or service shall be thoroughly circulated and considered in order to decide whether to proceed with it. Technical and economic criteria must be supplemented with the social effects of business activities, goods or services before a company proceeds Social costs of each activity, product or service shall be priced into it so that the consumer (user) pays for the effects of his cosumption on society

5. Business institutions as citizens have responsibility for social involvement in areas of their competence where major social needs exist

MAJOR SOCIAL RESPONSIBILITIES OF BUSINESS

1.

2. 3. 4.

5.

Optimum utulisation of National Resources Responsibility not to make losses Improved quality of life Responsibility of employment and income Offering quality products at fair price

6. Environmental protection 7. Fair trade practices 8. Fulfill all national obligations under various national laws 9. Safeguard the health and well being of consumers

JUSTICE AND FAIRNESS

RESOLVING DISPUTES
Disputes among individuals in business, for example, when one person accuses another of unjustly discriminating against him or her, showing unjust favoritism towards someone else or not taking up a fair share of the burdens involved in some cooperative venture are to be resolved. Resolving disputes like these requires that we compare and weigh the conflicting claims of each of the parties and strike a balance between them. We are then said to be just and fair. Justice and fairness are essentially comparative.

TYPES OF JUSTICE


DISRIBUTIVE JUSTICE- Just JUSTICEdistribution of society s benefits and burdens RETRIBUTIVE JUSTICE- Just JUSTICEimposition of punishments and penalties COMPENSATORY JUSTICE- Just JUSTICEcompensation for wrongs and injuries

DISTRIBUTIVE JUSTICE


Questions of distributive justice arise when different people put forth conflicting claims on society s benefits and burdens and all the claims cannot be satisfied, for example where there is a scarcity of benefits such as jobs, food, housing, medical care, income and wealth as compared with the numbers and desires of the people who want these goods or there may be too many burdens such as unpleasant work, drudgery, etc. and not enough people to shoulder them.

THE FUNDAMENTAL PRINCIPLE

Equals should be treated equally and unequals treated unequally. Individuals who are similar in all respects relevant to the kind of treatment in question should be given similar benefits and burdens even if they are dissimilar in other irrelevant respects; and individuals who are dissimilar in a relevant respect ought to be treated dissimilarly, in proportion to their dissimilarity.

JUSTICE AS EQUALITY
EGALITARIANISM Egalitarians hold that there are no relevant differences among people that can justify unequal treatment. Every person should be given exactly equal shares of a society s or a group s benefits and burdens. All men are created equal.

CRITICISMS
Human beings differ in their abilities, intelligence, virtues, needs, desires and all other physical and mental characteristicscharacteristicsHuman beings are unequal in all respect. If everyone is given exactly the same share productivity and efficiency will decline

RESPONSE
There must be political equality i.e. equal participation in, and treatment by, political system and economic equality i.e. equality in income, wealth and opportunity.

JUSTICE BASED ON CONTRIBUTION

CAPITALIST JUSTICE Benefits should be distributed according to the value of the contribution the individual makes to a society, a task, a group, or in exchange

JUSTICE BASED ON NEEDS AND ABILITIES SOCIALISM

Work burdens should be distributed according to people s abilities and benefits should be distributed according to people s needs

JUSTICE AS FREEDOM LIBERTARIANISM

From each according to what he chooses to do, to each according to what he makes for himself (perhaps with the contracted aid of others) and what others choose to do for him and choose to give him of what they have been given previously (under the maxim) and haven t yet expended or transferred.

JUSTICE AS FAIRNESS RAWLS

The principle of distributive justice is met i.e. distribution of benefits and burdens in a society is just if and only if 1. each person has an equal right to the most extensive basic liberties compatible with similar liberties for all, and 2. Social and economic inequalities are arranged so that they are both a) to the greatest benefit to the least advantaged person and b) attached to offices and positions open to all under conditions of fair equality of opportunity

MORAL RESPONSIBILITY

MORAL RESPONSIBILITY IS DISTINCT FROM MORAL DUTY OR MORAL OBLIGATION IT IS WHETHER A PERSON IS MORALLY RESPONSIBLE FOR AN INJURY OR FOR A WRONG, FOR BLAME FOR SOMETHING.

CONDITIONS FOR MORAL RESPONSIBILITY

A person is morally responsible for an injury or a wrong if (1) The person caused or helped cause it, or failed to prevent it when he could and should have, and (2) The person did so knowingly what he or she was doing, and (3) The person did so of his or her own

MITIGATING FACTORS
Mitigating factors lessen a person s moral responsibility: (1) Circumstances that diminish the person s active involvement in the act. (2) Circumstances that produce uncertainty, doubt. (3) Difficulty to avoid a certain course of action.

CORPORATE RESPONSIBILITY
Corporate acts normally are brought about by several actions or omissions of many different people all co-operating together so that their colinked actions or omissions jointly produce the corporate acts. Who is morally responsible for the corporate acts ? All the participants are individually morally responsible according to their participation in the actions or omissions of the corporate acts.

SUBORDINATE S RESPONSIBILITY
In a corporation employees often act on the basis of their superior s orders. Who is morally responsible when a superior orders a subordinate to carry out an act that both of them know is wrong ? Both are morally responsible for the act.

Business to Business marketing

Business-to-Business marketing is the marketing of goods and services to businesses in order to keep other companies operating. Business-to-business marketers promote goods and services that will help other companies run. Some of the things businesses produce for other businesses include equipment, components, raw materials, processing services and supplies. In addition, business-to-business marketers target only other companies. The most common business-to-business markets are manufacturers, resellers, the government and non-profit institutions.

B2B Marketing Communications Methodologies

The purpose of B2B marketing communications is to support the organizations' sales effort and improve company profitability. B2B marketing communications tactics generally include advertising, public relations, direct mail, trade show support, branding, and interactive services such as website design and search engine optimization. Positioning Statement Developing your messages Building a campaign plan

Automated E-commerce Transactions

Business-to-business (B2B) is a term commonly used to describe electronic commerce transactions between businesses. It is a term also used in electronic commerce and to describe automated processes between trading partners. The volume of B2B transactions is much higher than the volume of B2C transactions. One reason for this is that in supply chain there will be many B2B transactions but only one B2C transaction, as the completed product is retailed to the end customer. An example of a B2B transaction is a chicken feed company selling its product to a chicken farm, which is another company. Another example-a company selling photocopiers would more likely be a B2B sales organization than a B2C sales organization.

E-Marketplace
E-" or "electronic" marketplace in a business-to-business context is primarily a large online platform (B2B portal) or website that facilitates interaction and/or transactions between buyers and suppliers at organizational or institutional rather than individual levels. These marketplaces can do one or more of the following: 1. 2. 3. 4. 5. Help buyers find new suppliers and vice versa Help reduce the time and cost of interaction for B2B transactions Help increase trade between distant geographies and cultures Help manage payments and track orders for B2B transactions Help the environment by using appropriate technology that is environmentally friendly

B2B Marketing Strategies

B2B Branding Product (or Service) Pricing Promotion Place (Sales & Distribution)

RIGHTS AND DUTIES

CONCEPT OF RIGHT IN GENERAL,A RIGHT IS AN INDIVIDUAL S ENTITLEMENT TO SOMETHING. A PERSON HAS A RIGHT WHEN THAT PERSON IS ENTITLED TO ACT IN A CERTAIN WAY OR IS ENTITLED TO HAVE OTHERS ACT IN A CERTAIN WAY TOWARDS HIM OR HER.

RIGHTS AND DUTIES

RIGHTS


THE ENTITLEMENT MAY DERIVE FROM A LEGAL SYSTEM, THE ENTITLEMENT IS THEN CALLED A LEGAL RIGHT. ENTITLEMENTS MAY ALSO DERIVE FROM A SYSTEM OF MORAL STANDARDS. SUCH ENTITLEMENTS ARE CALLED MORAL RIGHTS. MORAL RIGHTS,UNLIKE LEGAL RIGHTS, ARE UNIVERSAL INSOFAR AS THEY ARE RIGHTS THAT ALL HUMAN BEINGS OF EVERY NATIONALITY POSSESS TO AN EQUAL EXTENT SIMPLY BY VIRTUE OF BEING HUMAN BEING.

CHARACTERISTICS OF RIGHTS


A RIGHT IS AN INDIVIDUAL S ENTITLEMENT TO SOMETHING RIGHTS DERIVED FROM LEGAL SYSTEMS ARE LIMITED BY JURISDICTION MORAL OR HUMAN RIGHTS ARE BASED ON MORAL NORMS AND ARE NOT LIMITED BY JURISDICTION

MORAL RIGHTS
 

TIGHTLY CORRELATED WITH DUTIES PROVIDE INDIVIDUALS WITH AUTONOMY AND EQUALITY IN THE FREE PURSUIT OF THEIR INTERESTS PROVIDE A BASIS FOR JUSTIFYING ONE S ACTIONS AND FOR INVOKING THE PROTECTION OR AID OF OTHERS

KINDS OF MORAL RIGHTS



NEGATIVE RIGHTS-DUTIES OTHERS HAVE RIGHTSTO NOT INTERFERE IN CERTAIN ACTIVITIES OF THE PERSON WHO HOLDS THE RIGHT POSITIVE RIGHTS-DUTIES OF OTHER RIGHTSAGENTS(IT IS NOT ALWAYS CLEAR WHO) TO PROVIDE THE HOLDER OF THE RIGHT WITH WHATEVER HE OR SHE NEEDS TO FREELY PURSUE HIS OR HER INTERESTS CONTRACTUAL OR SPECIAL RIGHTSRIGHTSREQUIRES OTHERS TO KEEP AGREEMENTS

BASIS OF MORAL RIGHTS -KANT

KANT S THEORY IS BASED ON A MORAL PRINCIPLE THAT HE CALLED THE CATEGORICAL IMPERATIVES THAT REQUIRES THAT EVERYONE SHOULD BE TREATED AS A FREE PERSON EQUAL TO EVERYONE ELSE I.E. EVERYONE HAS A MORAL RIGHT TO SUCH TREATMENT AND EVERYONE HAS CORRELATIVE DUTY TO TREAT OTHERS IN THAT WAY.

FIRST FORMULATION OF KANT

I ought never to act except in such a way that I am also to will that my maxim should become a universal law. Maxim is the reason a person in a certain situation has for doing what he or she plans to do. A maxim would become a universal law if every person in a similar situation chose to do the same thing for the same reason

MORALLY RIGHT ACTION

AN ACTION IS MORALLY RIGHT FOR A PERSON IN A CERTAIN SITUATION IF, AND ONLY IF,THE PERSON S REASON FOR CARRYING OUT THE ACTION IS THE REASON THAT HE OR SHE WOULD BE WILLING TO HAVE EVERY PERSON ACT IN SIMILAR SITUATION

CHARACTERISTICS


UNIVERSALIZABILITY: THE PERSON S REASONS FOR ACTING MUST BE REASONS THAT EVERYONE COULD ACT ON AT LEAST ON PRINCIPLE. REVERSIBILITY: THE PERSON S REASONS FOR ACTING MUST BE REASONS THAT HE OR SHE WOULD BE WILLING TO HAVE OTHERS USE, EVEN AS A BASIS OF HOW THEY TREAT HIM OR HER. FOCUS IS ON PERSON S INTERIOR MOTIVATIONS AND NOT THE CONSEQUENCES OF EXTERNAL ACTIONS.AN ACTION IS OF MORAL WORTH IF IT IS ALSO MOTIVATED BY A SENSE OF DUTY.

SECOND FORMULATION OF KANT

ACT IN SUCH A WAY THAT YOU ALWAYS TREAT HUMANITY, WHETHER IN YOUR OWN PERSON OR IN THE PERSON OF ANY OTHER, NEVER SIMPLY AS A MEANS BUT ALWAYS AT THE SAME TIME AS AN END.

MORALLY RIGHT ACTION

AN ACTION IS MORALLY RIGHT FOR A PERSON IF, AND ONLY IF, IN PERFORMING THE ACTION,THE PERSON DOES NOT USE OTHERS MERELY AS A MEANS FOR ADVANCING HIS OR HER OWN INTERESTS, BUT ALSO BOTH RESPECTS AND DEVELOPS THEIR CAPACITY TO CHOOSE FREELY FOR THEMSELVES. THEMSELVES.

SIGNIFICANCE OF BUSINESS ETHICS

WHY SHOULD ETHICS BE APPLIED TO BUSINESS ?

REASONS FOR APPLYING ETHICS TO BUSINESS

1.

2.

3. 4. 5.

Because Ethics should govern all voluntary human activities and because business is a voluntary human activity, Ethics should also govern business. Business activities, like any other human activities cannot exist unless people involved in business and its surrounding community adhere to some minimal standards of ethics. Ethical considerations are consistent with business pursuits of profit. Prisoner s dilemma Customers and Employees care about ethics.

1.

2. 3.

pursue the financial interests of their firm and not sidetrack their energies or their firm s resources into doing good works philanthropy, charity In a free market economy the pursuit of profit will ensure maximum social benefit Adam Smith, Milton Friedman s views Managers , like loyal agents, most important obligation is to the company. To be ethical it is enough for business people to obey the law. Business Ethics is limited to obeying the law.

REASONS AGAINST APPLYING ETHICS TO BUSINESS Persons in business should single-mindedly single-

CAPITALISM AND FREEDOM MILTON FRIEDMAN

There is one and only one responsibility of BusinessBusiness- to use its resources and engage its activities designed to its profits as long as they stay within the rules of the game, which is to say, engage in open and free competition, without deception or fraud. Few trends could so thoroughly undermine the very traditions of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible. This is fundamentally subversive doctrine -1962

ETHICS AND PROFIT

1.

Ethics is consistent with the pursuit of profit can be shown by simply finding examples of companies where a history of good ethics has existed side by side with a history of profitable operations e.g. Intel, HP, SISCO Systems, Levi Strauss, South West Airlines, Tata etc. But many chance other factors affect profitability like overcapacity, recession, weather patterns, interest rates, changing consumer tastes etc. Many studies have been done to find correlation of ethics with profitabilityprofitabilityThere is no negative correlation.

2. Ethics and profits are not mutually opposed to each other. It is only ethical companies, which discharged their social responsibilities, have survived competition and turbulent changes through the years. Every company is expected to justify its existence in the market place, through the profit it generates. A sick and loss making company is a burden and liability to society, it cannot discharge its social responsibilities to shareholders, employees, customers. It is unethical not to make profit.

SIGNIFICANCE OF BUSINESS ETHICS

1.

Good Business Ethics promotes good business Positive Consequences Business depends on the approval, acceptance and good will of the society. Robert Day - When ethical conduct is displayed, it puts some kind of trust and confidence in relationship . Customers and Employees care about ethics.

2.

3.

4.

Good will of business creates strong public image, a sign of success in a long run. Brand values of Tatas, Johnson & Johnson Ethics provides feeling of at home , security, protection so increasing level of sincerity and commitment. Good Ethics is sound business insurance . Ethics gives freedom from fear, anxiety, tension gives selfselfsatisfaction to all concerned in business.

5.

6.

Ethics generates morale, encourages and motivates others to contribute to values. Concept of corporate citizenship in service of Humanity.

THE PRACTICE OF MANAGEMENT Peter F. Drucker

The relationship between the Business Organisation and Society is like the relationship between a ship and the sea which engirds it and carries it, which threatens it with storm and shipwreck, which has to be crossed but which is yet alien and distant, the environment rather than the home of the ship. But Society is not just the environment of the enterprise. Even the most private of private enterprises is an organ of society and serves a social function. -1963

Strategic Management for Better Performance

INTRODUCTION


In today s turbulent business environment, all ambitious and hard working executives, managers and professionals face constant problem and stress in their jobs. Stress has become the major buzzword and legitimate concerns of times and has become a part and parcel of human lives It is through the stretching influence of stress that the people and communities find unexpected resources within themselves and develop the capacity to meet challenges.

 

Stress refers to an individual s reaction to a disturbing factor in the environment. It is defined as an adaptive response to an external situation that results in physical, psychological and/or behavioural deviations for organisational participants. In other words, stress is the feeling one s experiences when one perceives a gap between what one wants and what one gets or has. That is excess of demands over the individual s ability to meet them. Stress is the form of distress.

 

Stress can manifest in both a positive and a negative way. It is said to positive when the situation offers an opportunity for one to gain something. The positive stress is known as Eustress. Stress is said to be negative when it is associated with heart diseases, alcoholism, drug abuse, marital breakdowns, absenteeism, and a host of other social, physical, organisational and emotional problems.

Stress can either help or hinder one s effectiveness depending upon stress levels. As stress level increases, one s personal effectiveness increases, but when the stress level passes optimum level, the personal effectiveness declines. As per American institute of stress, around 66 percent of all visits to primary health care physicians are for stress related disorders.

CAUSES OF STRESS
The following are the major common stressors: 1. Survival stress
this may occur in cases where your survival or health is threatened, where you are under pressure, or where you experience some unpleasant or challenging events
2.

Internally generated stress

This can come from anxious worring about event beyond control, from a tense, hurried approach to life.

3. Environmental and work stress

This may range from an inability to peform well in a particular role because of misunderstanding over what is requird from the role of boss or suborbinate or because of lack of skills.

4. Fatigue and overwork Here stress builds up over a long period. This can occur where you try to achieve too much in too little time, or where you are not using effective time management strategies. 5.Procrastinatination people usually procrastinate when faced with something we do not want to do. however, most of the stress is self induced and they are caused not by external events, but by the way we look at and interpret those events which occur in our life.

EFFECTS OF STRESS


Stress can have serious consequences for both our health and work performance. The problems due to high levels of stress can be exhibited physically, psychologically or behaviorally by the individual. High level of stress are also associated with diabetes, ulcers, high blood pressure and arteriosclerosis.

EFFECTS OF STRESS


Stress can cause depressions, irritation, anxiety, fatigue, lowered self- esteem and selfreduced job satisfaction. It may also lead to burnouts , a state of mind resulting from prolonged exposure to intense emotional stress and involving physical emotional and mental exhaustion

Stress affects individual s performance and effectiveness. It can undermine their relationship at home and on the job. The job related stress leads to lower productivity, lower quality, increasing employee turnover rate, high health care cost and increasing employee conflicts.

STRATEGIES FOR MANAGING EXCESSIVE STRESS EFECTIVELY

Coping strategies may be categorized into 1. Individual strategies 2. Organizational strategies

Following are some specific tehniques that individuals can use to eliminate or effectively manage prolonged stress. 1. Exercise and relax: Engage in regular non-competitive physical nonactivities as swimming, walking, cycling, playing tennis etc. to get some exercise to combat stress. 2. Practice the relaxation response when feeling upright: One can have relaxation through meditation or watching something light on television, listening to music etc.

3. Use time Management: Avoid the trap of trying to do too many things at once and then failing to accomplish much if anything at all. 4. Control the situation: Avoid unrealistic deadlines. Do your best, but know your limits. You cannot be everything to everyone. 5. Pace Yourself: Plan your day on a flexible basis. Do not try to do two or more things at the same time. Think before reacting to a negative situation or people

6. Focus on the solution rather than problems: Normally, we keep on thinking about the problems and get stressed. Obviously, nothing will happen until we start concentrating on the solutions. 7. Behavioural self control: > By deliberately managing the antecedent and consequences of their own behaviour, people can achieve self control. > It can avoid people or situations that they know will put them under stress. > This strategy involves individuals controlling the situation instead of letting the situation control them.

8. Networking: forming close associations with trusted, empathetic co-workers and cocolleagues who are good listeners and confidence builders can be used to reduce job stress.

ORGANISATIONAL COPING STRATEGIES

    

By creating a supportive organisatonal climate. By enriching the design of tasks. By reducing conflicts and classifying organisational roles. By planning and developing carreer paths and providing counseling. By participative decision making and lot more.

CONCLUSION


The art of stress management is to keep ourselves at a level that is healthy and enjoyable. The strategies that should be adopted to manage excessive stress depend on the source of the stress. If outside factors, such as important events or relationships or difficulties are causing stress, then a positive thinking or imaginary based techniques maybe effective. Where stress and fatigue are long term then lifestyle and organisational changes may be appropriate.

UTILITARIANISM
WEIGHING SOCIAL COSTS AND BENEFITS

DEFINITION
UTILITARIANISM IS A GENERAL TERM FOR ANY VIEW THAT HOLDS THAT ACTIONS AND POLICIES SOULD BE EVALUATED ON THE BASIS OF THE BENEFITS AND COSTS THEY WILL IMPOSE ON THE SOCIETY. IN ANY SITUATION THE RIGHT ACTION OR POLICY IS THE ONE THAT WILL PRODUCE THE GREATEST NET BENEFITS OR THE LOWEST NET COSTS.

JEREMY BENTHAM (1748-1832) (1748AN ACTION IS RIGHT FROM ETHICAL POINT OF VIEW IF AND ONLY IF THE SUM TOTAL OF UTILITIES BY THAT ACT IS GREATER THAN THE SUM TOTAL OF UTILITIES PRODUCED BY ANY OTHER ACT THE AGENT COULD HAVE PRODUCED IN ITS PLACE

ASSUMPTIONS
UTILITY MEANS NET BENEFIT PRODUCED BY AN ACTION ASSUMPTION OF UTILITARIANISM IS WE CAN SOMEHOW MEASURE AND ADD THE QUANTITIES OF BENEFITS PRODUCED AND SUBTRACT FROM THEM THE QUANTITIES OF HARM

BEST ACTION MEANS THAT IT PRODUCES MOST UTILITY THAN ANY OTHER POSSIBLE ACTION. IT IS NOT FOR THE PERSON PERFORMING THE ACTION BUT MOST UTILITY FOR ALL PERSONS AFFECTED BY THE ACTION INCLUDING PERSON PERFORMING THE ACTION. IT DOES NOT MEAN THAT ACTION IS RIGHT AS LONG AS ITS BENEFITS OUTWEIGH ALL ITS COSTS. IT RATHER MEANS THAT IN THE FINAL ANALYSIS ONLY ONE ACTION IS RIGHT. ALL THE DIRECT AND INDIRECT, IMMEDIATE AND FORSEEABLE BENEFITS AND COSTS ARE TO BE CONSIDERED.

UTILITARIAN PROCESS OF DECISION MAKING

 

DETERMINING WHAT ALTERNATE ACTIONS AND POLICIES ARE AVAILABLE FOR EACH ALTERNATIVE ACTION EXAMINING THE DIRECT AND INDIRECT BENEFITS AND COSTS THAT THE ACTION WILL PROBABLY PRODUCE TO EACH AND EVERY PERSON AFFECTED BY THE ACTION IN THE FORSEEABLE FUTURE THE ALTERNATIVE THAT PRODUCES THE GREATEST SUM TOTAL OF UTILITY MUST BE CHOSEN AS THE ETHICALLY APPROPRIATE COURSE OF ACTION

MEASUREMENT PROBLEMS  OBJECTIVITY

 

VALUES LIKE HEALTH, LIFE CANNOT BE MEASURED FORSEEABLE BENEFITS OR COSTS ARE NOT EASILY PREDICTABLE WHAT TO COUNT AS BENEFIT OR COST IS NOT CLEAR UTILITARIANISM ASSUMES THAT ALL BENEFITS ARE TRADABLE BUT NONNONECONOMIC GOODS LIKE LIFE, LOVE,FREEDOM CANNOT BE CONVERTED IN TERMS OF MONEY

UTILITARIAN REPLIES


VALUES NEED NOT BE QUANTIFIED BUT EXPRESSLY STATED COMMONSENSE CRITERIA TO BE FOLLOWED SOCIOLOGICAL SURVEYS,VOTINGS ETC.TO BE TAKEN

CRITIQUE OF UTILITARIANISM - Greatest good for greatest number

attractive government policies and public good - Fits intuitive criteria for moral conduct - Explains why certain actions are always right or wrong but traditional Utilitarianism will deny any kind of action is always right or wrong - Highly influenced Economics Cost Benefit Analysis - Efficiency = Output Benefit / Input Cost

QUESTIONS
HUMAN RIGHTS ? JUSTICE?