A Perspective of Business of Business Ethics

Ranjan Mitter

How new is it?

The

study of ethics is at least 5000 years old. Ethics was first explicitly applied to business in the Code of Hammurabi around 2100 BC. Ethics is the study of what is good and right for the people.

It asks the question

Ethics

asks the question: How should I act, especially when my actions directly or indirectly affect others?

Business Ethics is
The

application of ethical principles and methods of analysis to business. A topic of study now required at all business schools accredited by the American Assembly of Collegiate Schools of Business.

Ethical Systems
Teleological:

determine the ethics of an act by looking to the probable outcome or consequences of the decision (ends). Deontological: determine the ethics of an act by looking to the process of the decision ( means).

Teleological Systems
Utilitarianism:

make decisions based on the greatest good or utility for the greatest number as the end result. Distributive Justice: ethical acts are those that lead to an equitable distribution of goods and services.

Deontological Systems

Universalism: The rightness of an act does not depend on the results of the act. The moral person is one of goodwill and makes decisions based on what is right, regardless of consequences. But how does he know what is right? Kant suggested the categorical imperative, that every person should act only on those principles that he as a rational person would prescribe as universal laws applicable to all mankind.

Deontological Systems
Perspective

of Religion: the Ten Commandments etc. Virtue ethics: ( Plato and Aristotle) ask not What actions are universally right? but what is the best sort of life for human beings to have?Exercise judgment, do not apply rules. Make the decisions a virtuous man would make.

Caux Principles

Emanated from a Round Table of International Executives based in Caux, Switzerland. They believed that business organisations can be a powerful force for positive change in the quality of life for the world.

Caux Principles rooted in kyosei and dignity

Kyosei: living and working together for the common good- enabling co-operation and mutual prosperity to co-exist with healthy and fair competition. Human Dignity: relates to the sacredness or value of each person as an end, not simply as the means to fulfil other purposes or even majority prescription.

General Principles

1.

The Responsibility of Businesses: beyond Shareholders towards Stakeholders -- a business must maintain its own economic health and viability but survival is not a sufficient goal.--sharing with (customers) the wealth--created

General Principles

1.

The Economic and Social Impact of Businesses: towards Innovation, Justice and World Community. contribute to ..social advancement of ( host ) countries by creating productive employment and helping to raise purchasing power of its citizensalso in the world community at large

General Principles
1.

Business Behaviour: beyond the letter of the law towards a spirit of Trust Contribute to the smoothness and efficiency of business transactions.. Respect for the ( international and domestic ) rules.

General Principles
Support

for Multilateral Trade Respect for Environment Avoidance of Illicit Operations

Stakeholder Principles: applying kyosei/ dignity to

Customers Employees Owners

/ Investors Suppliers Competitors Communities

Sources of ethics in American business - Steiners

Genetic Religion Philosophical

Inheritance

Systems Cultural Experience Legal Systems Codes of conduct

THANK YOU