m Derived from Greek word Æ


meaning custom or character.

m Dictionary meaning- ´ a system of moral
principle rules and conducts.µ
m As a science it involves systemizing,
defending and recommending concepts of
right and wrong behavior.
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½A DISCIPLINE OF APPLYING ETHICAL PRINCIPLES TO EXAMINE AND

SOLVE COMPLEX MORAL DILEMMAS IN BUSINESS

½IT IS THE APPLICATION OF GENERAL ETHICAL IDEAS TO BUSINESS

BEHAVIOR.

½WRITTEN AND UNWRITTEN - PRINCIPLES AND VALUES

½STUDY OF MORAL RIGHT AND WRONG

À
 

 

½ETHICS IS DIFFERENT FROM RELIGION

½NOT SYNONYMOUS WITH LAW

½Not Just a Collection of Values

½ETHICS IS DIFFERENT FROM FEELINGS

aw
Morals

Values

Religion
Ethics Ô
 


½Ethics is closely related to Trust

½Trust is three dimensional

Trust in supplier relationships,

Trust in employee relationships

Trust in customer relationship

½Help in better decision making

½Law cannot protect society, ethics can

m Jo protect its own interest
m Jo protect the interest of business
community as a whole so that the public
will have trust in it.
m Jo keep its commitment to society to act
ethically
m Jo meet stakeholder expectations
m Jo prevent harm to the general public
m Jo build trust with key stakeholder groups
m Jo protect themselves from abuse of
unethical employees and competitors
m Jo protect their own reputations
m Jo protect their own employees and
m Jo create an environment in which
workers can act in ways consistent with
their values.



 

m Differ with persons

ethical questions do not have a unique
solution but a multitude of alternatives
m Ethical decisions are not limited to
themselves, but affects a wide range of
other situations as well.
m ED involves a trade off between cost
incurred and benefits received.
 Personal Ethics Organizational Culture

Beliefs and Values Founder

Moral Development History

Ethical Framework Defining Moments

Stories of Development

Organizational Systems External Stakeholders

Structure Government Regulations

Policies and Rules Customers

Code of Ethics Special Interest Groups

Reward System Market Forces

Selection and Training

m ribery
m Coercion
m Undue Influence
m Insider Jrading
m Jax Evasion
m Pollution
m Unfair dealing and discrimination
m Improper accounting practices
ROOTS OF UNETHECAL BEHAVIOR:

m Balancing work and family 52%

m Poor Leadership 51%
m Poor internal communication 51%
m Lack of management support 48%
m Need to meet goals 46%

- given by Ethics Officers Association

( 1997)
DOES ETHICS WORK?
m INFOSYS Jechnologies-mission :
´Jo achieve our objectives in an
environment of fairness, honesty and
courtesy towards our clients, employees,
vendors and society at largeµ

m INFOSYS CEO FINED

m Only Indian organization to be named in
the list of the world·s most ethical
companies, according to Ethisphere
Institute list of 110 companies.
m The corporate social policy of Tata steel-
J



  


   
    
  
 



  

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½ First Indian company to articulate a set
of beliefs to guide business conduct as
early as in the 1970s
½ Awarded the Ethics in Good usiness
Award for the year 2002 by PHDCCI
½ Ethics- the major factor behind its
success.
Ý
  
   
SOME FACTORS

üFriendships factor into business interactions

üGift giving and reciprocity are natural aspects of the

Indian culture

üComplicated social order often creates an ambivalent

concept of ethical behavior.

üinefficient government bureaucracies

üinadequate supply of infrastructure

üaccess to financing

üVague government policies and lax enforcement

´A businessman should benefit from
business like a honey-bee which
suckles honey from the flower without
affecting its charm and beautyµ
(Rigveda)