ETHICS & BUSINESS ETHICS

Presented By: Prof. S.C. Ghosh Chief CRIC ACCMAN INSTITUTE OF MANAGEFMENT Greater Noida (India)

Overview of Classes
1)12 Nov,2011- Introduction Class Topics covered were: Right or wrong Justice or Injustice Degree of Freedom 2) 18 Nov,2011- Major focus was on Contradiction 3) 21 Nov,2011 - Activity

2)Ethics can be defined as the critical, structured examination of how we should behave in particular, how we should constrain the pursuit of self-interest when our actions affect others.

3)Ethics are considered the moral standards by which people judge behaviour. 4)The basic concepts and fundamental principles of right human conduct. It includes study of universal values such as the essential equality of all men and women, human or natural rights, obedience to the law of land, concern for health and safety and, increasingly, also for the natural environment.

Some Issues:
What is Right and What is wrong?

Is there any real right or wrong?

What is justice and injustice? What is the degree of freedom? Subjectivity & Objectivity Metaphysics & Scientific Study Normative ethics & Applied Ethics

Ethics Indian view

Indian religion has always been associated with philosophy The vedas (about 4000 years old) talked about 4 basic goals of

existence:

Prosperity Satisfaction of desires Moral duty Salvation

Upnisads distinguished between law and ethics ethics come

from inner desire Charavac philosophy was basically materialistic and was a voice of dissent
In a way, Charvak was reactionary; he was opposing the Brahmanical

dogmas in a sharp way Jain scriptures deal with akriyavad at length

Jain philosophy was based on the quintessential principle of non-

violence Buddha dwelt on compassion and brotherhood

Ethics and society

In fact both religion and ethics serve a

common need: society Societies are built on the plank of coexistence and mutuality All societies, whether those of humans or nonhumans, need mutual support, forbearance and care:
Observed in societies of wolves, baboons, dolphins,

etc.
Thus, two important pillars of all societies are: Reciprocity kinship

Present day ethics philosophy

By end of 19th century, Kant, Hegel and Marx had

expressed several views on ethics Nietzsche came with radical thoughts god is dead Sartre came with similar ideas, denying idea of God and said whatever ensures existence is good Currently, ethics is divided into 3 branches:
Meta-ethics: deals with ethical properties Normative ethics: deals with what things are good or bad Applied ethics: application of ethics to practical problems

Is what is good or bad judged from its

consequences:
Teleology actions are judged by their consequences Deontology actions are judged by whether the accord

with the general rule

Contradiction- Negation
A contradiction consists of a logical

incompatibility between two or more propositions. It occurs when the propositions, taken together, yield two conclusions which form the logical, usually opposite inversions of each other.

Activity
Activity is spontaneous.
Two types of Activities are there:

1)Social Activity 2)Nature Activity Human activity within social domain can be understood in two ways : Individuality Collectivity Social activity involves human consciousness. INDIVIDUAL ACTIVITIES ARE NOTHING BUT SPECIFIC MANIFESTATION OF COLLECTIVE.

Fundamental processes of Activity

Socio Economic Structure

Production
Nature of Ownership

Business Ethics

1)Business Ethics can be defined as the critical, structured examination of how people & institutions should behave in the world of commerce. In particular, it involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when the actions of individuals or firms affects others.

2)The examination of the variety of problems that can arise from the business environment, a and how employees, management, and the corporation can deal with them ethically. Problems such as fiduciary responsibility, corporate social responsibility, corporate governance, shareholder relations, insider trading, bribery and discrimination are examined in business ethics. 3)Business ethics is simply a code of principles

based on values that govern an organization's actions and decisions.

Are ethics and business compatible?

In an extreme, altruistic sense, business and ethics

may seem incompatible:

Earning profits may also be a unethical In Islamic finance, earning interest is unethical All possessions stem from insecurity; insecurity comes

from mistrust:
Therefore, possession itself may be unethical in extreme

sense

Lots of businesses may need violence of some

degree:
E.g., Medical research

Where do we draw the line between business and

morality:
If the approach is subjective, then ethics lose their

meaning as everyone defines ethics to suit ones convenience Is there a universal, perennial definition of ethics?

Some fundamental questions about ethics

That everyone should be ethical is not in doubt: No one has ever taught unethical behavior Fundamental questions: What is ethical?
Answer to this question is the same as why ethics?

is ethics subjective or objective?

Why my conscience permits is ethics: emotionalist thinking This makes the whole concept of ethics chaotic Ethics are based on collectivism

Is ethics contemporary or perennial? Is ethics whole or partial?

Is ethics the same as law?

Who or What does unethical behavior offend the law or

humanity?