Professional Documents
Culture Documents
BUSINESS ETHICS
ETHICS
BUSINESS ETHICS
Level 1
PreConventional
Thought
STAGE 1:
Obey Rule
to Avoid
Punishmen
t
STAGE 2:
Follow
rules only if
it is in self
interest
Level 2
Conventional
Thought
STAGE 3:
Conform to
meet the
expectation
of others
(Good
Boy/Good
Girl Image)
STAGE 4:
Doing right
is ones
duty. Obey
the law.
Uphold
social
contract
and order
Level 3
Principle Level
STAGE 5:
Current laws
and values
are relative
laws and
duty. Obey on
rational
calculations
to serve the
greatest
number.
STAGE 6:
Follows
self
chosen
universal
ethical
principles
over laws
TYPES OF ETHICS
Overt
Open ,Can be Seen
Overt practices are generally deplored
(strongly condemned). The business
avoids overt unethical practices.
Examples
1. Bribery
2. Theft
3. Sabotage (deliberately destroy,
damage, or obstruct something,
especially for political or military
advantage)
4. Collusion (secret or illegal
cooperation or conspiracy in order
to deceive others)
Covert
Hidden ,Cant be Seen
Most of the business activities are
covert. Examples
1. Corporate Acquisition
2. Marketing Policies
3. HRM Policies
4. Capital Investments
5. Industrial Espionage The theft
of trade secrets by the removal,
copying or recording of confidential
or valuable information in a
company for use by a competitor. It
is conducted for commercial
purpose rather than national
security.
IMPORTANCE OF ETHICS IN
BUSINESS
Part of Society Whatever ethics principle apply in society apply to business. E.g.
tax evasion is considered unethical.
Expectation of Public All stake holder have an eye on the cultural and behavior
of a business organization due to dominance of economics in the society. Doing the
right thing, Do no harm and Good to all are the expectations of general public.
E.g. a company should not make advertisements for pan masalas targeted on
students.
Trust of employees High level of morale and productivity can be easily obtained
in companies that treat their all employees with equality, encourage good team and
work culture, and with ethical practices.
Image (Stakeholders) An ethical organization commands trust and respect of
its stakeholders through an ethical image. All stakeholders stand to gain.
Costs Deterioration of relationships, damage to reputation in reduction of
employee productivity, loyalty that come out of unethical practices cost companies.
Pride of best companies Ethical companies have a brand value and their
policies wrt profit sharing bonuses, social responsibility, work life balance, etc. are
quoted by magazines like Fortune, Business India, etc.
Overall benefit Ethical behavior of an industry or business gives a win-win
situation to all the stakeholders and general public. The governments also
encourage such companies.
JUSTICE
UTILITARIANISM JUSTICE
Utilitarianism - the doctrine that actions are right if they are useful or for the
benefit of a majority; the doctrine that an action is right in so far as it promotes
happiness, and that the greatest happiness of the greatest number should be the
guiding principle of conduct.
Utilitarians tend to be among those who see no major divide between justice
and morality. Utilitarians see justice as part of morality and dont see justice to
have a higher priority than any other moral concern.
Utilitarian ideas of justice connect morality to the law, economic distribution,
and politics.
Utilitarians often advocate for social welfare because everyones well-being is of
moral interest and social welfare seems like a good way to make sure everyone
flourishes to a minimal extent.
Objections
1. Its too simple.
2. Its too demanding.
3. It ignores personal relationships.
4. It fails to account for the need to be respectful.
VALUES
BUSINESS VALUES
CORPORATE CULTURE