BUSINESS

ETHICS
ROSHAN.S
MBA-J
WHAT IS ETHICS?
The word ethics comes from the Gree ethos! me"#i#$ somethi#$ %ie &mor"%s'.
I# f"ct! ethics is defi#ed "s the s(stem"tic re ectio# o# wh"t is mor"%.
I# this de #itio#! mor"%it( is the who%e of o)i#io#s! decisio#s "#d "ctio#s with
which )eo)%e e*)ress wh"t the( thi# is $ood or ri$ht. So! i# short! to thi#
ethic"%%(! (o+ #eed to s(stem"tic"%%( re ect o# wh"t )eo)%e thi# is $ood or
ri$ht.
Ethics is #ot " m"#+"% with "#swers o# how to "ct. It is o#%( " se"rch for the
ri$ht i#d of mor"%it(. We c"# disti#$+ish two i#ds of ethics.
The descri)ti,e ethics is i#,o%,ed with the descri)tio# of e*isti#$ mor"%it(. It is
"-o+t f"cts. .escri)ti,e /+d$me#ts "re therefore tr+e or f"%se.
O# the other h"#d! there is the )rescri)ti,e ethics! "%so #ow# "s the #orm"ti,e
ethics. This -r"#ch of ethics "ct+"%%( /+d$es mor"%it(. Norm"ti,e /+d$me#ts "re
therefore ,"%+e /+d$me#ts0 the( i#dic"te whether somethi#$ is $ood or -"d. We
wi%% m"i#%( co#sider o+rse%,es with #orm"ti,e ethics.
B1SINESS ETHICS
B+si#ess ethics 2"%so cor)or"te ethics3 is " form of "))%ied ethics or
)rofessio#"% ethics th"t e*"mi#es ethic"% )ri#ci)%es "#d mor"% or ethic"%
)ro-%ems th"t "rise i# " -+si#ess e#,iro#me#t.
It "))%ies to "%% "s)ects of -+si#ess co#d+ct "#d is re%e,"#t to the co#d+ct of
i#di,id+"%s "#d e#tire or$"#i4"tio#s.
B+si#ess ethics 2"%so cor)or"te ethics3 is " form of "))%ied ethics or
)rofessio#"% ethics th"t e*"mi#es ethic"% )ri#ci)%es "#d mor"% or ethic"%
)ro-%ems th"t "rise i# " -+si#ess e#,iro#me#t.
It "))%ies to "%% "s)ects of -+si#ess co#d+ct "#d is re%e,"#t to the co#d+ct of
i#di,id+"%s "#d e#tire or$"#i4"tio#s.
B+si#ess ethics h"s -oth #orm"ti,e "#d descri)ti,e dime#sio#s. As " cor)or"te
)r"ctice "#d " c"reer s)eci"%i4"tio#! the fie%d is )rim"ri%( #orm"ti,e.
Ac"demics "ttem)ti#$ to +#derst"#d -+si#ess -eh",io+r em)%o( descri)ti,e
methods. The r"#$e "#d 5+"#tit( of -+si#ess ethic"% iss+es ref%ects the
i#ter"ctio# of )rofit-m"*imi4i#$ -eh",io+r with #o#-eco#omic co#cer#s.
6A71ES
Mor"% ,"%+es "re m"tters8co#,ictio#s th"t "re worth stri,i#$ for i# $e#er"%.
E*"m)%es i#c%+de /+stice! h"))i#ess! ch"rit( "#d s+ch. A disti#ctio# c"# -e
m"de -etwee# i#tri#sic ,"%+es "#d i#str+me#t"% ,"%+es.
A# i#tri#sic ,"%+e is " ,"%+e i# itse%f0 somethi#$ th"t is worth stri,i#$ for.
A# i#str+me#t"% ,"%+e is " ,"%+e th"t o#%( co#tri-+tes to "# i#tri#sic ,"%+e.
9or e*"m)%e! if (o+ w"#t to $et mo#e( to he%) )eo)%e! the# $etti#$ mo#e( is the
i#str+me#t"% ,"%+e! whi%e he%)i#$ )eo)%e is the i#tri#sic ,"%+e.
6"%+es "re the r+%es -( which we m"e decisio#s "-o+t ri$ht "#d wro#$! sho+%d
"#d sho+%d#:t! $ood "#d -"d. The( "%so te%% +s which "re more or %ess im)ort"#t!
which is +sef+% whe# we h",e to tr"de off meeti#$ o#e ,"%+e o,er "#other.
MORA7S
Mor"%s h",e " $re"ter soci"% e%eme#t to ,"%+es "#d te#d to h",e " ,er( -ro"d
"cce)t"#ce.
Mor"%s "re f"r more "-o+t $ood "#d -"d th"# other ,"%+es. We th+s /+d$e
others more stro#$%( o# mor"%s th"# ,"%+es.
A )erso# c"# -e descri-ed "s immor"%! (et there is #o word for them #ot
fo%%owi#$ ,"%+es.
7AW
7"w is " s(stem of r+%es "#d $+ide%i#es which "re e#forced thro+$h soci"%
i#stit+tio#s to $o,er# -eh",io+r! where,er )ossi-%e.
It sh")es )o%itics! eco#omics "#d societ( i# #+mero+s w"(s "#d ser,es "s "
soci"% medi"tor of re%"tio#s -etwee# )eo)%e.
6IRT1E
Mor"% ,irt+es "re ch"r"cter tr"its th"t m"e someo#e " $ood )erso# "#d "%%ow
him to %e"d " $ood %ife. E*"m)%es of ,irt+es "re ho#est(! co+r"$e! %o("%t(!
cre"ti,it(! h+mo+r! "#d so o#. 6irt+es seem to -e simi%"r to ,"%+es.
B+t where"s ,"%+es "re thi#$s (o+ stri,e for! ,irt+es "re ch"r"cter )ro)erties
th"t "re $ood to h",e. 6irt+e is mor"% e*ce%%e#ce.
A ,irt+e is " )ositi,e tr"it or 5+"%it( s+-/ecti,e%( deemed to -e mor"%%( e*ce%%e#t
"#d th+s is ,"%+ed "s " fo+#d"tio# of )ri#ci)%e "#d $ood mor"% -ei#$.
;erso#"% ,irt+es "re ch"r"cteristics ,"%+ed "s )romoti#$ i#di,id+"% "#d
co%%ecti,e we%%-ei#$. 6irt+e is " -eh",io+r showi#$ " hi$h mor"% st"#d"rd "#d is
" )"tter# of tho+$ht "#d -eh",io+r -"sed o# hi$h mor"% st"#d"rds
E"ch i#di,id+"% h"s " core of +#der%(i#$ ,"%+es th"t co#tri-+te to his or her
s(stem of -e%iefs! ide"s "#d8or o)i#io#s 2see ,"%+e i# semiotics3. I#te$rit( i#
the "))%ic"tio# of " ,"%+e e#s+res its co#ti#+it( "#d this co#ti#+it( se)"r"tes "
,"%+e from -e%iefs! o)i#io# "#d ide"s. I# this co#te*t! " ,"%+e 2e.$.! Tr+th or
E5+"%it( or Creed3 is the core from which we o)er"te or re"ct.
Societies h",e ,"%+es th"t "re sh"red "mo#$ m"#( of the )"rtici)"#ts i# th"t
c+%t+re. A# i#di,id+"%:s ,"%+es t()ic"%%( "re %"r$e%(! -+t #ot e#tire%(! i#
"$reeme#t with his or her c+%t+re:s ,"%+es.
IN.I6I.1A7 6IRT1ES CAN BE GRO1;E. INTO ONE O9 9O1R CATEGORIES O9
6A71ES0
<. Ethics 2,irt+e - ,ice! $ood - e,i%! mor"% - immor"% - "mor"%! ri$ht - wro#$3
=. Aesthetics 2+#-"%"#ced! )%e"si#$3
>. .octri#"% 2)o%itic"%! ideo%o$ic"%! re%i$io+s or soci"% -e%iefs "#d ,"%+es3
?. I##"te8i#-or#
;ERSONA7 ETHICS0
;erso#"% ethics de)e#ds hi$h%( o# )erso#"% -e%iefs "#d %o("%ties! "#d res+%ts i#
-eh",io+r i# " )erso#:s %ife i# his re%"tio#shi)s! f"mi%( "#d frie#ds.
We -i#d o+rse%,es -( o+r )erso#"% ethics "s the( defi#e who we "re! "#d $i,e +s
the )ride "#d co#fide#ce i# o+r %i,es. ;erso#"% ethics "re ofte# dee) withi# +s!
-+t #ot writte#. ;erso#"% ethics c"# "%so ch"#$e de)e#di#$ o# m"/or e,e#ts i#
o+r %i,es.
;RO9ESSIONA7 ETHICS
;rofessio#"% ethics de)e#ds hi$h%( o# the re5+ireme#ts of the )rofessio#!
%ooi#$ o+t for the i#terests of the or$"#i4"tio# "s we%% "s the c+stomers. We
"re ofte# -o+#d %e$"%%( -( o+r )rofessio#"% ethics! s+ch "s co#fide#ti"%it( "#d
d+e di%i$e#ce. ;rofessio#"% ethics "re +s+"%%( writte# "#d si$#ed! "#d r"re%(
ch"#$e o,er time.
91N.AMENTA7 ;RINCI;7ES O9 ;RO9ESSIONA7 ETHICS
;RO9ESSIONA7
;O;17AR
CO.E O9 CON.1CT OR CO.E O9 ETHICS
A writte# set of $+ide%i#es iss+ed -( "# or$"#i4"tio# to its worers "#d
m"#"$eme#t to he%) them co#d+ct their "ctio#s i# "ccord"#ce with its )rim"r(
,"%+es "#d ethic"% st"#d"rds.
A code of ethics is " set of $+ide%i#es th"t $o,er#s the -eh",io+r of " com)"#(
"#d its mem-ers. It is es)eci"%%( im)ort"#t i# the e,e#t th"t " com)"#( h"s to
decide wh"t t()e of -eh",io+r co#forms to "cce)t"-%e or re"so#"-%e st"#d"rds.
CO.E O9 CON.1CT AN. ETHICS 9OR MANAGERS
INTEGRIT@
I#te$rit( is " co#ce)t of co#siste#c( of "ctio#s! ,"%+es! methods! me"s+res!
)ri#ci)%es! e*)ect"tio#s! "#d o+tcomes. I# ethics! i#te$rit( is re$"rded "s the
ho#est( "#d tr+thf+%#ess or "cc+r"c( of o#e:s "ctio#s.
I#te$rit( c"# -e re$"rded "s the o))osite of h()ocris(! i# th"t it re$"rds i#ter#"%
co#siste#c( "s " ,irt+e! "#d s+$$ests th"t )"rties ho%di#$ "))"re#t%( co#f%icti#$
,"%+es sho+%d "cco+#t for the discre)"#c( or "%ter their -e%iefs.
;RO9ESSIONA7 COM;ETENCE AN. .1E CARE
CON9I.ENTIA7IT@
INTEGRIT@
OBJECTI6IT@
;EO;7E
CHAT
IN
O99ICE
I# this co#te*t! i#te$rit( is the i##er se#se of Awho%e#essA deri,i#$ from
5+"%ities s+ch "s ho#est( "#d co#siste#c( of ch"r"cter. As s+ch! o#e m"( /+d$e
th"t others Ah",e i#te$rit(A to the e*te#t th"t the( "ct "ccordi#$ to the ,"%+es!
-e%iefs "#d )ri#ci)%es the( c%"im to ho%d.
IM;ARTIA7IT@
Im)"rti"%it( 2"%so c"%%ed e,e#-h"#ded#ess or f"ir-mi#ded#ess3 is " )ri#ci)%e of
/+stice ho%di#$ th"t decisio#s sho+%d -e -"sed o# o-/ecti,e criteri"! r"ther th"# o#
the -"sis of -i"s! )re/+dice! or )referri#$ the -e#efit to o#e )erso# o,er "#other for
im)ro)er re"so#s.
;1B7IC INTREST0
The )+-%ic i#terest refers to the Acommo# we%%--ei#$A or A$e#er"% we%f"re.A The
)+-%ic i#terest is ce#tr"% to )o%ic( de-"tes! )o%itics! democr"c( "#d the #"t+re
of $o,er#me#t itse%f.
Whi%e #e"r%( e,er(o#e c%"ims th"t "idi#$ the commo# we%%--ei#$ or $e#er"%
we%f"re is )ositi,e! there is %itt%e! if "#(! co#se#s+s o# wh"t e*"ct%( co#stit+tes
the )+-%ic i#terest! or whether the co#ce)t itse%f is " cohere#t o#e.
ACCO1NTABI7IT@0
Acco+#t"-i%it( is the co#ce)t i# ethics "#d $o,er#"#ce with se,er"% me"#i#$s.
It is ofte# +sed s(#o#(mo+s%( with s+ch co#ce)ts "s res)o#si-i%it(!
"#swer"-i%it(! -%"meworthi#ess! %i"-i%it(! "#d other terms "ssoci"ted with the
e*)ect"tio# of "cco+#t-$i,i#$.
As "# "s)ect of $o,er#"#ce! it h"s -ee# ce#tr"% to disc+ssio#s re%"ted to
)ro-%ems i# the )+-%ic sector! #o#-)rofit "#d )ri,"te 2cor)or"te3 wor%ds.
I# %e"dershi) ro%es! "cco+#t"-i%it( is the "c#ow%ed$me#t "#d "ss+m)tio# of
res)o#si-i%it( for "ctio#s! )rod+cts! decisio#s! "#d )o%icies i#c%+di#$ the
"dmi#istr"tio#! $o,er#"#ce! "#d im)%eme#t"tio# withi# the sco)e of the ro%e or
em)%o(me#t )ositio# "#d e#com)"ssi#$ the o-%i$"tio# to re)ort e*)%"i# "#d -e
"#swer"-%e for res+%ti#$ co#se5+e#ces.
e.$. AA is "cco+#t"-%e to B whe# A is o-%i$ed to i#form B "-o+t A's 2)"st or
f+t+re3 "ctio#s "#d decisio#s! to /+stif( them! "#d to s+ffer )+#ishme#t i# the
c"se of e,e#t+"% misco#d+ctA.
Acco+#t"-i%it( c"##ot e*ist witho+t )ro)er "cco+#ti#$ )r"cticesB i# other
words! "# "-se#ce of "cco+#ti#$ me"#s "# "-se#ce of "cco+#t"-i%it(.
HONEST@0
Ho#est( refers to " f"cet of mor"% ch"r"cter "#d de#otes )ositi,e! ,irt+o+s
"ttri-+tes s+ch "s i#te$rit(! tr+thf+%#ess! "#d str"i$htforw"rd#ess "%o#$ with
the "-se#ce of %(i#$! che"ti#$! or theft.
Additio#"%%( "# ho#est )erso# wi%% i#form others of o))ort+#ities for $rowth "#d
se%f-"ct+"%i4"tio#.
Secrets "%%owi#$ )eo)%e to -e h"rmed! se%f-dece)tio# - #ot -ei#$ "w"re of o#e:s
ow# e#,iro#me#t! "#d rem"i#i#$ si%e#t whe# d+t( c"%%s forth "# o)i#io# -ecome
si%e#ces which h+rt others i# the %o#$-r+#. Ho#est( me"#s -ei#$ o)e# "-o+t
o#e:s %ife.
TRANS;ARANC@0
Tr"#s)"re#c(! "s +sed i# scie#ce! e#$i#eeri#$! -+si#ess! the h+m"#ities "#d i#
" soci"% co#te*t more $e#er"%%(! im)%ies o)e##ess! comm+#ic"tio#! "#d
"cco+#t"-i%it(.
Tr"#s)"re#c( is o)er"ti#$ i# s+ch " w"( th"t it is e"s( for others to see wh"t
"ctio#s "re )erformed. 9or e*"m)%e! " c"shier m"i#$ ch"#$e "t " )oi#t of s"%e
-( se$re$"ti#$ " c+stomer:s %"r$e -i%%s! co+#ti#$ +) from the s"%e "mo+#t! "#d
)%"ci#$ the ch"#$e o# the co+#ter i# s+ch " w"( "s to i#,ite the c+stomer to
,erif( the "mo+#t of ch"#$e demo#str"tes tr"#s)"re#c(.
A%% or$"#i4"tio#s h",e " tr"#s)"re#c( c+%t+re! th"t )"rt of the c+%t+re th"t
re%"tes to tr"#s)"re#c(B -+t few h",e " c+%t+re of tr"#s)"re#c(! i.e.! " c+%t+re of
-ei#$ "w"re of tr"#s)"re#c( "#d i#cor)or"ti#$ it ro+ti#e%( i#to how thi#$s "re
do#e.
C ;RINCI;7ES O9 B1SINESS ETHICS OR SIGNI9ICANCE O9 B1SINESS ETHICS
<. BE TR1ST9170
Reco$#i4e c+stomers w"#t to do -+si#ess with " com)"#( the( c"# tr+stB whe#
tr+st is "t the core of " com)"#(! it:s e"s( to reco$#i4e. Tr+st defi#ed! is "ss+red
re%i"#ce o# the ch"r"cter! "-i%it(! stre#$th! "#d tr+th of " -+si#ess.
=. DEE; AN O;EN MIN.0
9or co#ti#+o+s im)ro,eme#t of " com)"#(! the %e"der of "# or$"#i4"tio# m+st -e
o)e# to #ew ide"s. As for o)i#io#s "#d feed-"c from -oth c+stomers "#d te"m
mem-ers "#d (o+r com)"#( wi%% co#ti#+e to $row.
>. MEET OB7IGATIONS0
Re$"rd%ess of the circ+mst"#ces! do e,er(thi#$ i# (o+r )ower to $"i# the tr+st of
)"st c+stomers "#d c%ie#ts! )"rtic+%"r%( if somethi#$ h"s $o#e "wr(. Rec%"im "#(
%ost -+si#ess -( ho#o+ri#$ "%% commitme#ts "#d o-%i$"tio#s.
?. HA6E C7EAR .OC1MENTS0
Re-e,"%+"te "%% )ri#t m"teri"%s i#c%+di#$ sm"%% -+si#ess "d,ertisi#$! -roch+res! "#d
other -+si#ess doc+me#ts m"i#$ s+re the( "re c%e"r! )recise "#d )rofessio#"%.
Most im)ort"#t! m"e s+re the( do #ot misre)rese#t or misi#ter)ret.
E. BECOME COMM1NIT@ IN6O76E.0
Rem"i# i#,o%,ed i# comm+#it(-re%"ted iss+es "#d "cti,ities! there-( demo#str"ti#$
th"t (o+r -+si#ess is " res)o#si-%e comm+#it( co#tri-+tor. I# other words! st"(
i#,o%,ed.
F. MAINTAIN ACCO1NTING CONTRO70
T"e " h"#ds-o# "))ro"ch to "cco+#ti#$ "#d record ee)i#$! #ot o#%( "s " me"#s
of $"i#i#$ " -etter fee% for the )ro$ress of (o+r com)"#(! -+t "s " reso+rce for "#(
A5+estio#"-%eG "cti,ities. G"i#i#$ co#tro% of "cco+#ti#$ "#d record ee)i#$ "%%ows
(o+ to e#d "#( d+-io+s "cti,ities )rom)t%(.
C. BE RES;ECT9170
Tre"t others with the +tmost of res)ect. Re$"rd%ess of differe#ces! )ositio#s!
tit%es! "$es! or other t()es of disti#ctio#s! "%w"(s tre"t others with )rofessio#"%
res)ect "#d co+rtes(.
ETHICA7 .I7EMMA
A# Ethic"% di%emm" is " com)%e* sit+"tio# th"t wi%% ofte# i#,o%,e "# "))"re#t
me#t"% co#f%ict -etwee# mor"% im)er"ti,es! i# which to o-e( o#e wo+%d res+%t i#
tr"#s$ressi#$ "#other. This is "%so c"%%ed "# ethic"% )"r"do* si#ce i# mor"%
)hi%oso)h(B )"r"do* ofte# )%"(s " ce#tr"% ro%e i# ethics de-"tes.
A7o,e (o+r #ei$h-o+rG is sometimes i# co#tr"dictio# to "# "rmed r")ist0 if he
s+cceeds! (o+ wi%% #ot -e "-%e to %o,e him. B+t to )re-em)ti,e%( restr"i# them is
#ot +s+"%%( +#derstood "s %o,i#$.
This is o#e of the c%"ssic e*"m)%es of "# ethic"% decisio# c%"shi#$ or co#f%icti#$
with "# or$"#ismic decisio#! o#e th"t wo+%d -e m"de o#%( from the )ers)ecti,e
of "#im"% s+r,i,"%0 "# "#im"% is tho+$ht to "ct o#%( i# its immedi"te )ercei,ed
-odi%( se%f-i#terests whe# f"ced with -odi%( h"rm! "#d to h",e %imited "-i%it( to
)ercei,e "%ter#"ti,es - see fi$ht-or-f%i$ht res)o#se.
A# ethic"% di%emm" is " de-"te -etwee# two mor"% )ri#ci)%es! where two sides
c"# "r$+e "-o+t wh"t is wro#$ or wh"t is ri$ht. Howe,er! there is #o re"%
"#swer to "# ethic"% di%emm".
It is sim)%( " m"tter of wh"t o#e -e%ie,es i#. 9or e*"m)%e! "-ortio# is "# ethic"%
di%emm". Some )eo)%e "re )ro-"-ortio# whi%e others "re strict%( "$"i#st it. Is
there " re"% "#swer to "%%owi#$ "-ortio#s or #ot? No. Th+s! we h",e " di%emm".
T@;ES O9 .I7EMMAS0
SE79-IM;OSE. .I7EMMAS
Se%f-im)osed mor"% di%emm"s "re the res+%t of two "ctio#s o#e fee%s o#e m+st t"e
th"t c"##ot -e reco#ci%ed with e"ch other.
WOR7.-IM;OSE. .I7EMMAS
Wor%d-im)osed ethic"% di%emm"s "re of the t()e descri-ed i# the seco#d e*"m)%e!
where " f"mi%( mem-er m+st choose which of two other mem-ers m+st die. He is
#ot i#sti$"ti#$ the decisio#B it is -ei#$ forced +)o# him from the o+tside! "#d he is
-o+#d -( it to m"e " decisio#.
;ROHIBITION .I7EMMAS
1%tim"te%(! ethic"% di%emm"s re5+ire choices! "#d mere%( refr"i#i#$ from "ctio# c"#
-e " mor"% decisio#. I# some mor"% di%emm"s! o#e m+st choose whether to diso-e(
" )"rtic+%"r )rohi-itio#! s+ch "s " %"w! whe# com)%i"#ce res+%ts i# immor"%
co#se5+e#ces. I# this c"se! i#"ctio# is o-e(i#$ the %"w! -+t the res+%t is mor"%%(
re)rehe#si-%e.
THEORIES IN ETHICS0
EGOISM
The term He$oismG is ordi#"ri%( +sed to me"# He*c%+si,e co#cer# with s"tisf(i#$
o#e's ow# desires! $etti#$ wh"t o#e w"#ts.G
HE$oismG is "%so +sed i# ethic"% co#sider"tio#s of how h+m"# -ei#$s do or o+$ht
to %i,e.
It is th+s ofte# 5+"%ified -( s+ch terms "s Hethic"%G "#d H)s(cho%o$ic"%.G So wh"t
determi#es the most se#si-%e me"#i#$ of the term?
It is cr+ci"%! first of "%%! wh"t the e$o is. If it is the +#i5+e ide#tit( of the i#di,id+"%
h+m"# -ei#$ or se%f. E$oisms differ de)e#di#$ o# which of these is t"e# to -e
tr+e0
;S@C7IO7OGICA7 EGOISM
;s(c%io%o$ic"% e$oism is " theor( "-o+t moti,"tio# th"t c%"ims th"t "%% of o+r
+%tim"te desires "re se%f-directed. Whe#e,er we w"#t others to do we%% 2or i%%3!
we h",e these other-directed desires o#%( i#str+me#t"%%(B we c"re "-o+t others
o#%( -ec"+se we thi# th"t the we%f"re of others wi%% h",e r"mific"tio#s for o+r
ow# we%f"re.
As st"ted! e$oism is " descri)ti,e! #ot " #orm"ti,e! c%"im. It "ims to
ch"r"cteri4e wh"t moti,"tes h+m"# -ei#$s i# f"ctB the theor( does #ot s"(
whether it is $ood or -"d th"t )eo)%e "re so moti,"ted.
ETHICA7 EGOISM
Ethic"% e$oism st"tes th"t o#e o+$ht to -e#efit o#ese%f! first "#d foremost. @et!
this -( #o me"#s te%%s it "%%! "s we h",e "%re"d( see# i# co##ectio# with
)s(cho%o$ic"% e$oism. The )recise me"#i#$ of ethic"% e$oism "%so de)e#ds +)o#
wh"t is the e$o is "#d wh"t it is to -e -e#efited.
1TI7ITARIANISM
A )hi%oso)h( th"t -"ses the mor"% worth of "# "ctio# +)o# the #+m-er of )eo)%e
it $i,es h"))i#ess or )%e"s+re to. A +ti%it"ri"# )hi%oso)h( is +sed whe# m"i#$
soci"%! eco#omic or )o%itic"% decisio#s for the A-etterme#t of societ(A.
I# +ti%it"ri"#ism! "# "ctio# is co#sidered to h",e +ti%it( o#%( to the e*te#t th"t it
co#tri-+tes to the o,er"%% $ood.
The )hi%oso)h( of +ti%it"ri"#ism w"s first )ro)osed "#d disc+ssed -( Joh# St+"rt
Mi%% "#d Jerem( Be#th"m i# the mid-<IJJs.
The #"me of +ti%it"ri"#ism is deri,ed from the 7"ti# &+ti%is'! me"#i#$ &+sef+%'. I#
+ti%it"ri"#ism! the co#se5+e#ces of "ctio#s "re me"s+red "$"i#st o#e ,"%+e.
This &+sef+%' ,"%+e c"# -e somethi#$ %ie h"))i#ess! we%f"re or )%e"s+re. It
sho+%d -e m"*imi4ed.
1ti%it"ri"#ism is -"sed o# the +ti%it( )ri#ci)%e0 we sim)%( #eed to $i,e the
$re"test h"))i#ess to the $re"test #+m-er of )eo)%e. 2.o #ote th"t we h",e
si%e#t%( m"de the "ss+m)tio# th"t &)%e"s+re' is the o#%( $o"% i# %ife! "#d th"t
e,er(thi#$ e%se is /+st " me"#s to $et )%e"s+re. This ide"8"ss+m)tio# is c"%%ed
hedo#ism.3
A# "ctio# is mor"%%( ri$ht if it res+%ts i# )%e"s+re! where"s it is wro#$ if it $i,es
rise to )"i#. The freedom )ri#ci)%e is "%so -"sed o# this. This )ri#ci)%e st"tes
th"t (o+ c"# do wh"te,er (o+ w"#t! "s %o#$ "s (o+ do#'t c"+se "#(o#e "#(
)"i#8h"rm.
.EONTO7OG@
The deo#to%o$ic"% theor( st"tes th"t )eo)%e sho+%d "dhere to their o-%i$"tio#s
"#d d+ties whe# "#"%(4i#$ "# ethic"% di%emm".
This me"#s th"t " )erso# wi%% fo%%ow his or her o-%i$"tio#s to "#other i#di,id+"%
or societ( -ec"+se +)ho%di#$ o#e:s d+t( is wh"t is co#sidered ethic"%%( correct.
9or i#st"#ce! " deo#to%o$ist wi%% "%w"(s ee) his )romises to " frie#d "#d wi%%
fo%%ow the %"w. A )erso# who fo%%ows this theor( wi%% )rod+ce ,er( co#siste#t
decisio#s si#ce the( wi%% -e -"sed o# the i#di,id+"%:s set d+ties.
.eo#to%o$( )ro,ides " -"sis for s)eci"% d+ties "#d o-%i$"tio#s to s)ecific
)eo)%e! s+ch "s those withi# o#e:s f"mi%(.
9or e*"m)%e! "# o%der -rother m"( h",e "# o-%i$"tio# to )rotect his %itt%e sister
whe# the( cross " -+s( ro"d to$ether. This theor( "%so )r"ises those
deo#to%o$ists who e*ceed their d+ties "#d o-%i$"tio#s! which is c"%%ed
As+)erero$"tio#A.
9or e*"m)%e! if " )erso# hi/"ced " tr"i# f+%% of st+de#ts "#d st"ted th"t o#e
)erso# wo+%d h",e to die i# order for the rest to %i,e! the )erso# who ,o%+#teers
to die is e*ceedi#$ his or her d+t( to the other st+de#ts "#d )erforms "# "ct of
s+)erero$"tio#.
A%tho+$h deo#to%o$( co#t"i#s m"#( )ositi,e "ttri-+tes! it "%so co#t"i#s its f"ir
#+m-er of f%"ws. O#e we"#ess of this theor( is th"t there is #o r"tio#"%e or
%o$ic"% -"sis for decidi#$ "# i#di,id+"%:s d+ties.
9or i#st"#ce! -+si#essm"# m"( decide th"t it is his d+t( to "%w"(s -e o# time
to meeti#$s. A%tho+$h this "))e"rs to -e " #o-%e d+t( we do #ot #ow wh( the
)erso# chose to m"e this his d+t(.
;erh")s the re"so# th"t he h"s to -e "t the meeti#$ o# time is th"t he "%w"(s
h"s to sit i# the s"me ch"ir.
A simi%"r sce#"rio +#e"rths two other f"+%ts of deo#to%o$( i#c%+di#$ the f"ct
th"t sometimes " )erso#:s d+ties co#f%ict "#d th"t deo#to%o$( is #ot co#cer#ed
with the we%f"re of others.
DANTIANISM
D"#ti"#ism is the )hi%oso)h( of Imm"#+e% D"#t! " Germ"# )hi%oso)her -or# i#
Do#i$s-er$! ;r+ssi" 2#ow D"%i#i#$r"d! R+ssi"3.
The term D"#ti"#ism or D"#ti"# is sometimes "%so +sed to descri-e
co#tem)or"r( )ositio#s i# )hi%oso)h( of mi#d! e)istemo%o$(! "#d ethics.
D"#ti"# ethics "re deo#to%o$ic"%! re,o%,i#$ e#tire%( "ro+#d d+t( r"ther th"#
emotio#s or e#d $o"%s.
A%% "ctio#s "re )erformed i# "ccord"#ce with some +#der%(i#$ m"*im or
)ri#ci)%e! which "re dee)%( differe#t from e"ch otherB it is "ccordi#$ to this th"t
the mor"% worth of "#( "ctio# is /+d$ed. D"#t:s ethics "re fo+#ded o# his ,iew of
r"tio#"%it( "s the +%tim"te $ood "#d his -e%ief th"t "%% )eo)%e "re f+#d"me#t"%%(
r"tio#"% -ei#$s.
This %ed to the most im)ort"#t )"rt of D"#t:s ethics! the form+%"tio# of the
C"te$oric"% Im)er"ti,e! which is the criterio# for whether " m"*im is $ood or
-"d.
The 9orm+%"tio# R+%e of D"#ti"#ism0
Act o#%( "ccordi#$ to th"t m"*im -( which (o+ c"# "t the s"me time wi%%
th"t it wo+%d -ecome " +#i,ers"% %"w.
Act so th"t (o+ "%w"(s tre"t others "s "# e#d "#d #e,er "s " me"#s to "#
e#d o#%(.
9ACTORS THAT A99ECT B1SINESS ETHICS
Ho#est(! O-/ecti,it(
I#te$rit(! C"ref+%#ess
O)e##ess
Res)ect for i#te%%ect+"% )ro)ert(
Co#fide#ti"%it(
Res)o#si-%e )+-%ic"tio#
Res)o#si-%e me#tori#$
Res)ect for co%%e"$+es
Soci"% res)o#si-i%it(
No#-discrimi#"tio#
Com)ete#ce
7e$"%it(! H+m"# s+-/ects )rotectio#
ETHICA7 ISS1ES IN ACCO1NTING
;ro,ides f"ir "#d "cc+r"te re)orti#$ of the fi#"#ci"% )ositio# of " -+si#ess
Ethic"% iss+es Re)orti#$ i#come! f"%sif(i#$ doc+me#ts! "%%owi#$ or t"i#$
5+estio#"-%e ded+ctio#s! i%%e$"%%( e,"di#$ i#come t"*es! e#$"$i#$ i# fr"+ds
etc.
RO7E O9 ACCO1NTANTS
To )ro,ide i#form"tio# to the #ew i#,estors
Acco+#t"#ts em)%o(ed -( the or$"#i4"tio# t"es c"re of the i#ter#"%
m"#"$eme#t "cco+#ts of ,"rio+s de)ts.
MANAGEMENT ACCO1NTANT-
9orm+%"ti#$ )o%icies
;%"##i#$ "#d co#tro%%i#$ the "cti,ities of the em)%o(ees
.ecisio# m"i#$ Kdisc%os+re to sh"reho%ders etc
9INANCIA7 ACCO1NTANT
Eco#omic i#form"tio# to the i#,estors! em)%o(ers! s+))%iers! o+tside )eo)%e
i#,o%,ed i# the -+si#ess etc.
ETHICA7 ISS1ES IN ACCO1NTING
Acco+#ti#$ "#d fi#"#ce )ro,ides f"ir "#d "cc+r"te re)orti#$ of the fi#"#ci"%
)ositio# of " -+si#ess.
The m"/or ethic"% iss+es occ+r i# "cco+#ti#$ "#d fi#"#ce "re re)orti#$ f"%se
i#come! f"%sif(i#$ doc+me#ts! "%%owi#$ or t"i#$ 5+estio#"-%e ded+ctio#s!
i%%e$"%%( e,"di#$ i#come t"*es! e#$"$i#$ i# fr"+ds etc.
9RA1. IN 9INANCIA7 STATEMENTS CAN BE COMMITTE. IN E WA@S0
9ictitio+s re,e#+e-re,e#+es #ot "ct+"%%( e"r#ed
9r"+d+%e#t Timi#$ differe#ces
Co#ce"%ed %i"-i%ities "#d e*)e#ses
9r"+d+%e#t disc%os+res or Omissio#s
9r"+d+%e#t "sset ,"%+"tio#-f"%se st"teme#t of the i#,e#tor( ","i%"-%e
THE ETHICA7 A1.IT
M"i# )+r)ose of ethic"% "+dit is to chec the "ctio#s of " firm. The m"i# o-/ecti,es
of ethic"% "+dit "re0
<. Assess the -+si#ess str+ct+re "#d )roced+res! s(stems "#d )o%icies
=. Whether -+si#ess "cti,ities com)%( with the st"#d"rds
>. To ide#tif( the w"( i# which it does -+si#ess
?. E,"%+"te whether m"#"$eme#t h"s re%e,"#t i#form"tio# i# r+##i#$ the -+si#ess
E. To he%) -+si#ess +#der$o m"/or "%ter"tio#s %ie restr+ct+ri#$
F. To ide#tif( the tr"i#i#$ #ecess"r( for the em)%o(ees
C. Est"-%ishi#$ ethic"% co#d+ct of -+si#ess to "ttr"ct ,"%+"-%e i#,estme#ts
I. Est"-%ish code of co#d+ct
L. He%)s the sh"reho%ders to e,"%+"te the )erform"#ce of the directors "#d ,ice
,ers"
STE;S TO BE TADEN B@ THE MANAGEMENT 9OR TR1E! 9AIR AN. RE7IAB7E
MGMT ACCO1NTS0
.etermi#i#$ the e( e%eme#ts of the -+si#ess %ie the o-/ecti,es "#d see how
the( "re defi#ed "#d me"s+red
M"i#$ s+re th"t the f+#ds "re "%%oc"ted to differe#t "cti,ities o# the -"sis of
their im)ort"#ce
9r"me r+%es th"t h",e " )ositi,e effect o# -+si#ess "cti,ities
COR;ORATE GO6ERNANCE
Cor)or"te $o,er#"#ce is " term th"t refers -ro"d%( to the r+%es! )rocesses! or
%"ws -( which -+si#esses "re o)er"ted! re$+%"ted! "#d co#tro%%ed.
The term c"# refer to i#ter#"% f"ctors defi#ed -( the officers! stocho%ders or
co#stit+tio# of " cor)or"tio#! "s we%% "s to e*ter#"% forces s+ch "s co#s+mer
$ro+)s! c%ie#ts! "#d $o,er#me#t re$+%"tio#s.
The )rocess "#d str+ct+re to direct "#d m"#"$e the -+si#ess "#d "ff"irs of the
cor)or"tio# with the o-/ecti,e of e#h"#ci#$ sh"reho%der ,"%+e! which i#c%+des
e#s+ri#$ the fi#"#ci"% ,i"-i%it( of the -+si#ess.
9+#d"me#t"% o-/ecti,e of cor)or"te $o,er#"#ce is the &e#h"#ceme#t of the
%o#$-term sh"reho%der ,"%+e whi%e "t the s"me time )rotecti#$ the i#terests of
other st"eho%ders.
We%%-defi#ed "#d e#forced cor)or"te $o,er#"#ce )ro,ides " str+ct+re th"t! "t
%e"st i# theor(! wors for the -e#efit of e,er(o#e co#cer#ed -( e#s+ri#$ th"t
the e#ter)rise "dheres to "cce)ted ethic"% st"#d"rds "#d -est )r"ctices "s we%%
"s to form"% %"ws.
To th"t e#d! or$"#i4"tio#s h",e -ee# formed "t the re$io#"%! #"tio#"%! "#d
$%o-"% %e,e%s. I# rece#t (e"rs! cor)or"te $o,er#"#ce h"s recei,ed i#cre"sed
"tte#tio# -ec"+se of hi$h-)rofi%e sc"#d"%s i#,o%,i#$ "-+se of cor)or"te )ower
"#d! i# some c"ses! "%%e$ed crimi#"% "cti,it( -( cor)or"te officers.
A# i#te$r"% )"rt of "# effecti,e cor)or"te $o,er#"#ce re$ime i#c%+des )ro,isio#s
for ci,i% or crimi#"% )rosec+tio# of i#di,id+"%s who co#d+ct +#ethic"% or i%%e$"%
"cts i# the #"me of the e#ter)rise
COR;ORATE GO6ERNANCE IS ESSENTIA77@ ABO1T 7EA.ERSHI;0
7e"dershi) for efficie#c(B
7e"dershi) for )ro-it(B
7e"dershi) with res)o#si-i%it(B "#d
7e"dershi) which is tr"#s)"re#t "#d which is "cco+#t"-%e
The M"##er i# which " Cor)or"tio# is R+#
Achie,i#$ its O-/ecti,es
Tr"#s)"re#c( of its O)er"tio#s
Acco+#t"-i%it( M Re)orti#$
Good Cor)or"te Citi4e#shi)
ETHICS IN IT0
Com)+ter ethics defi#ed "s the "))%ic"tio# of c%"ssic"% ethic"% )ri#ci)%es to the
+se of com)+ter tech#o%o$(.
Com)+ter Ethics is " -r"#ch of )r"ctic"% )hi%oso)h( which de"%s with how
com)+ti#$ )rofessio#"%s sho+%d m"e decisio#s re$"rdi#$ )rofessio#"% "#d
soci"% co#d+ct.
THE ETHICA7 .ECISIONS RE7ATE. TO COM;1TER TECHNO7OG@ AN. 1SAGE IS
INTO > ;RIMAR@ IN971ENCES0
The i#di,id+"%:s ow# )erso#"% code.
A#( i#form"% code of ethic"% -eh",io+r th"t e*ists i# the wor )%"ce.
E*)os+re to form"% codes of ethics.
Com)+ter ,ir+ses "re sm"%% softw"re )ro$r"ms th"t "re desi$#ed to s)re"d from
o#e com)+ter to "#other "#d to i#terfere with com)+ter o)er"tio#.
6IR1S ARE MOST EASI7@ S;REA.! THRO1GH
E-m"i% Att"chme#ts!
I#st"#t Mess"$i#$ mess"$es!
9+##( Im"$es!
A+dio "#d 6ideos fi%es!
.ow#%o"di#$ fi%es from I#ter#et!
WHAT IS ;IRAC@?
Rese%%i#$ Medi"
.ow#%o"di#$ from " we-site
T")i#$ so#$s
B+(i#$ " +sed -oo or C.
W"tchi#$ -ro"dc"st te%e,isio# -+t si))i#$ commerci"%s
T@;ES O9 ;IRAC@0
EN. 1SER ;IRAC@0
This occ+rs whe# " com)"#( em)%o(ee re)rod+ces co)ies of softw"re witho+t
"+thori4"tio#.
Co)(i#$ dis for i#st"%%"tio# "#d distri-+tio#
Sw"))i#$ diss i# or o+tside the wor)%"ce
C7IENT N SER6ER ;IRAC@0
This t()e of )ir"c( occ+rs whe# too m"#( em)%o(ees o# " #etwor "re +si#$ "
ce#tr"% co)( of " )ro$r"m "t the s"me time.
S(stem O,er+se
INTERNET ;IRAC@0
This occ+rs whe# softw"re is dow#%o"ded from the I#ter#et The s"me
)+rch"si#$ r+%es sho+%d "))%( to o#%i#e softw"re )+rch"se "s for those -o+$ht
i# tr"ditio#"% w"(s.
1#"+thori4ed tr"#sfer of co)(ri$hted )ro$r"m.
HAR.-.ISD ;IRAC@0
This occ+rs whe# " -+si#ess who se%%s #ew com)+ters %o"ds i%%e$"% co)ies of
softw"re o#to the h"rd diss to m"e the )+rch"se of the m"chi#es more
"ttr"cti,e.
6"%+e Added Rese%%ers 26AR3
HACDER0
Someo#e who -()"sses the s(stem's "ccess co#tro%s -( t"i#$ "d,"#t"$e of
sec+rit( we"#esses %eft i# the s(stem -( de,e%o)ers.
WHAT HACDERS .O?
Access co#fide#ti"% i#form"tio#
Thre"te# someo#e from @O1R com)+ter
Bro"dc"st (o+r co#fide#ti"% %etters or m"teri"%s.
Store i%%e$"% m"teri"%
E6I7S O9 HACDING
Com)romise the sec+rit( of s(stem witho+t )ermissio# from "# "+thori4ed )"rt(!
+s+"%%( with the i#te#t of "ccessi#$ com)+ters co##ected to the #etwor.
ETHICS IN MARDETING0
Most m"reti#$ rese"rch -e#efits -oth the s)o#sori#$ com)"#( "#d its
co#s+mers. Thro+$h m"reti#$ rese"rch! com)"#ies %e"r# more "-o+t
co#s+mers' #eeds! res+%ti#$ i# more- s"tisf(i#$ )rod+cts "#d ser,ices.
Howe,er! the mis+se of m"reti#$ rese"rch c"# "%so h"rm or "##o( co#s+mers.
Two m"/or )+-%ic )o%ic( "#d ethic"% iss+es i# m"reti#$ rese"rch "re i#tr+sio#s
o# co#s+mer )ri,"c( "#d the mis+se of rese"rch fi#di#$s.
INTR1SIONS ON CONS1MER ;RI6AC@
M"#( co#s+mers fee% )ositi,e%( "-o+t m"reti#$ rese"rch "#d -e%ie,e th"t it
ser,es " +sef+% )+r)ose. Some "ct+"%%( e#/o( -ei#$ i#ter,iewed "#d $i,i#$ their
o)i#io#s. Howe,er! others stro#$%( rese#t or e,e# mistr+st m"reti#$ rese"rch.
A few co#s+mers fe"r th"t rese"rchers mi$ht +se so)histic"ted tech#i5+es to
)ro-e their dee)est fee%i#$s "#d the# +se this #ow%ed$e to m"#i)+%"te their
-+(i#$. Or the( worr( th"t m"reters "re -+i%di#$ h+$e d"t" -"ses f+%% of
)erso#"% i#form"tio# "-o+t c+stomers.
Other co#s+mers m"( h",e -ee# t"e# i# -( )re,io+s rese"rch s+r,e(s th"t
"ct+"%%( t+r#ed o+t to -e "ttem)ts to se%% them somethi#$. Sti%% other
co#s+mers co#f+se %e$itim"te m"reti#$ rese"rch st+dies with te%em"reti#$
efforts "#d s"( &#o' -efore the i#ter,iewer c"# e,e# -e$i#.
Most! howe,er sim)%( rese#t the i#tr+sio#. The( dis%ie m"i% or te%e)ho#e
s+r,e(s th"t "re too %o#$ or too )erso#"% or th"t i#terr+)t them "t i#co#,e#ie#t
times. I#cre"si#$ c+stomer rese#tme#t h"s -ecome " m"/or )ro-%em for the
rese"rch i#d+str(.
A#( -+si#ess th"t de"%s with co#s+mers' i#form"tio# h"s to t"e )ri,"c( iss+es
serio+s%(. Some com)"#ies ,iew )ri,"c( "s w"( to $"i# com)etiti,e "d,"#t"$e
"s somethi#$ th"t %e"ds co#s+mers to choose o#e com)"#( o,er "#other.
The -est "))ro"ch is for rese"rchers to "s o#%( for the i#form"tio# the( #eed!
to +se it res)o#si-%( to )ro,ide ,"%+e! "#d to ",oid sh"ri#$ i#form"tio# witho+t
c+stomers' )ermissio#.
MIS1SE O9 RESEARCH 9IN.INGS
Rese"rch st+dies c"# -e )owerf+% )ers+"sio# too%sB com)"#ies ofte# +se st+d(
res+%ts "s c%"ims i# their "d,ertisi#$ "#d )romotio#.
Tod"(! howe,er! m"#( rese"rch st+dies "))e"r to -e %itt%e more th"# ,ehic%es
for )itchi#$ the s)o#sor's )rod+cts. I# f"ct! i# some c"ses! the rese"rch s+r,e(s
"))e"r to h",e -ee# desi$#ed /+st to )rod+ce the i#te#ded effect.
9ew "d,ertisers o)e#%( ri$ their rese"rch desi$#s or -%"t"#t%( misre)rese#t the
fi#di#$sB most "-+ses te#d to -e s+-t%e stretches.
S+-t%e m"#i)+%"tio#s of the st+d('s s"m)%e or the choice or wordi#$ of
5+estio#s c"# $re"t%( "ffect the co#c%+sio#s re"ched.
I# other c"ses! so-c"%%ed i#de)e#de#t rese"rch st+dies "re "ct+"%%( )"id for -(
com)"#ies with "# i#terest i# the o+tcome.
Sm"%% ch"#$es i# the st+d( "ss+m)tio#s or i# how res+%ts "re i#ter)reted c"#
s+-t%( "ffect the directio# of the res+%ts.
Reco$#i4i#$ th"t s+r,e(s c"# -e "-+sed! se,er"% "ssoci"tio#s i# 1#ited St"tes
h",e de,e%o)ed codes of rese"rch ethics "#d st"#d"rds of co#d+ct.
Howe,er! +#ethic"% or i#"))ro)ri"te "ctio#s c"##ot sim)%( -e re$+%"ted "w"(.
E"ch com)"#( m+st "cce)t res)o#si-i%it( for )o%ici#$ the co#d+ct "#d re)orti#$
of its ow# m"reti#$ rese"rch to )rotect co#s+mers' -est i#terests "#d its ow#.
ON7INE ;RI6AC@ AN. SEC1RIT@
9rom " -ro"der soci"% ,iew )oi#t! i#ter#et m"reti#$ )r"ctices h",e r"ised "
#+m-er of ethic"% "#d %e$"% 5+estio#s. There "re cert"i# #e$"ti,es "ssoci"ted
with i#ter#et s+ch "s +#w"#ted e-m"i% "#d the "##o("#ce of )o)-+) "ds.
O#%i#e )ri,"c( is )erh")s the #+m-er-o#e e- commerce co#cer#. Most e-
m"reters h",e -ecome si%%ed "t co%%ecti#$ "#d "#"%(4i#$ det"i%ed co#s+mer
i#form"tio#.
M"reters c"# e"si%( tr"c We- site ,isitors! "#d m"#( co#s+mers who
)"rtici)"te i# We- site "cti,ities )ro,ide e*te#si,e )erso#"% i#form"tio#.
This m"( %e",e co#s+mers o)e# to i#form"tio# "-+se if com)"#ies m"e
+#"+thorised +se of the i#form"tio# i# m"reti#$ their )rod+cts or e*ch"#$i#$
d"t" -"ses with other com)"#ies.
M"#( co#s+mers "#d )o%ic( m"ers worr( th"t m"reters h",e ste))ed o,er the
%i#e "#d "re ,io%"ti#$ co#s+mer's ri$ht to )ri,"c(.
M"#( co#s+mers "%so worr( "-o+t o#%i#e sec+rit(. The( fe"r th"t +#scr+)+%o+s
s#oo)ers wi%% e",esdro) o# their o#%i#e tr"#s"ctio#s or i#terce)t their credit
c"rd #+m-ers "#d m"e +#"+thorised )+rch"ses.
I# t+r#! com)"#ies doi#$ -+si#ess or m"reti#$ rese"rch o# %i#e fe"r th"t
others wi%% +se the i#ter#et to i#,"de their com)+ter s(stems for the )+r)ose of
commerci"% es)io#"$e or e,e# s"-ot"$e.
There "))e"rs to -e "# o#-$oi#$ com)etitio# -etwee# the tech#o%o$( of
i#ter#et sec+rit( s(stems "#d the so)histic"tio# of those seei#$ to -re"
them.
Be(o#d iss+es of o#%i#e )ri,"c( "#d sec+rit(! co#s+mers "re "%so co#cer#ed
"-o+t I#ter#et fr"+d! i#c%+di#$ ide#tit( theft! i#,estme#t fr"+d! "#d fi#"#ci"%
sc"ms.
ETHICS IN ;RO.1CTION0
Ethics i# )rod+ctio# is " s+-set of -+si#ess ethic th"t is me"#t to e#s+re th"t
the )rod+ctio# f+#ctio# or "cti,ities "re #ot d"m"$i#$ to the co#s+mer or the
societ(.
7ie other ethics there is " cert"i# code of co#d+ct or st"#d"rds to -e fo%%owed!
howe,er e#s+ri#$ th"t the ethics "re com)%ied with is ofte# diffic+%t.
O#e of the most im)ort"#t ch"r"cteristic of the -+si#ess tod"( is th"t there is "
$re"t de$ree of i#terde)e#de#ce -etwee# ,"rio+s -+si#ess f+#ctio#s.
;rod+ctio# c"##ot h"))e# witho+t m"reti#$ "#d s"%es "#d ,ice ,ers". I# order
to s+r,i,e i# the com)etiti,e s)here or$"#i4"tio#s tr( to red+ce the costs
i#,o%,ed i# )rod+ctio# )rocesses.
This cost efficie#c( is sometimes "chie,ed "t the cost of 5+"%it(. ;oor
)rocesses "#d tech#o%o$( is +sed to ee) the cost dow#! this is es)eci"%%( tr+e
for sm"%% )%"(ers who c"##ot "fford eco#omies of sc"%e.
H",i#$ s"id this there "re "%so e*"m)%es of i#d+str( $i"#ts th"t com)romised
o# cert"i# )rod+ctio# )rocesses! co%" com)"#ies m"e +) for " $ood e*"m)%e.
A%% the )rod+ctio# f+#ctio#s "re $o,er#ed -( )rod+ctio# ethics -+t there "re
cert"i# th"t "re se,ere%( h"rmf+% or de%eterio+s which #eed to -e mo#itored
co#ti#+o+s%(. The fo%%owi#$ "re worth me#tio#i#$0
There "re ethic"% )ro-%ems "risi#$ o+t of +se of #ew tech#o%o$ies th"t "re
de%eterio+s to he"%th! s"fet( "#d e#,iro#me#t. Tech#o%o$ic"% "d,"#ceme#ts %ie
$e#etic"%%( modified food! r"di"tio#s from mo-i%e )ho#es! medic"% e5+i)me#t
etc "re %ess )ro-%ems "re more of di%emm"s.
.efecti,e ser,ices "#d )rod+cts or )rod+cts those "re i##"te%( de%eterio+s %ie
"%coho%! to-"cco! f"st motor ,ehic%es! w"rf"re! chemic"% m"#+f"ct+ri#$ etc.
A#im"% testi#$ "#d their ri$hts or +se of eco#omic"%%( or soci"%%( de)ri,ed
)eo)%e for testi#$ or e*)erime#t"tio# is "#other "re" of )rod+ctio# ethics.
Ethics of tr"#s"ctio#s -etwee# the or$"#i4"tio# "#d the e#,iro#me#t th"t %e"d
to )o%%+tio#! $%o-"% w"rmi#$! i#cre"se i# w"ter to*icit( "#d dimi#ishi#$ #"t+r"%
reso+rces.
.I7EMMA O9 ETHICS IN ;RO.1CTION
There "re cert"i# )rocesses i#,o%,ed i# the )rod+ctio# of $oods "#d " s%i$ht
error i# the s"me c"# de$r"de the 5+"%it( se,ere%(.
I# cert"i# )rod+cts the d"#$er is $re"ter i.e. " s%i$ht error c"# red+ce the
5+"%it( "#d i#cre"se the d"#$er "ssoci"ted with co#s+m)tio# or +s"$e of the
s"me e*)o#e#ti"%%(.
The di%emm" therefore %ies i# defi#i#$ the de$ree of )ermissi-i%it(! which i# t+r#
de)e#ds o# " #+m-er of f"ctors. Bho)"% $"s tr"$ed( is o#e e*"m)%e where the
)oiso#o+s $"s $ot %e"ed o+t d+e to #e$%i$e#ce o# the )"rt of the m"#"$eme#t.
1s+"%%( m"#( m"#+f"ct+res "re i#,o%,ed i# the )rod+ctio# of s"me $ood. The(
m"( +se simi%"r or dissimi%"r tech#o%o$ies for the s"me. Setti#$ " st"#d"rd i#
c"se of dissimi%"r tech#o%o$ies is ofte# ,er( diffic+%t.
There "re m"#( other f"ctors th"t co#tri-+te to the di%emm"! for e*"m)%e! the
i#,o%,eme#t of the m"#)ower! the wori#$ co#ditio#s! the r"w m"teri"% +sed
etc.
Soci"% )erce)tio#s "%so cre"te "# im)"sse sometimes. 9or e*"m)%e the +se of
some ferti%i4er -( co%" com)"#ies i# I#di" rece#t%( cre"ted " #"tio#"% de-"te.
The s"me co%d dri#s which were co#s+med ti%% (esterd"( -ec"me #o*io+s
tod"( -ec"+se of " ch"#$e i# the soci"% )erce)tio# th"t the dri#s "re #ot fit for
co#s+m)tio#.
INTERNATIONA7 B1SINESS ETHICS0
I#ter#"tio#"% -+si#ess ethics emer$ed 5+ite %"te $%o-"%%( com)"red to the
-+si#ess ethics th"t c"me +) i# <LCJ's.
It w"s o#%( i# %"te <LLJ's th"t the i#ter#"tio#"% -+si#ess ethics c"me to the
fore es)eci"%%( so "fter the eco#omic de,e%o)me#ts th"t occ+rred o# " $%o-"%
sc"%e.
I# <LLJ's m"#( -+si#esses from the de,e%o)i#$ co+#tries e*)"#ded their
o)er"tio#s "#d -ec"me m+%ti#"tio#"%. The tr"#s"ctio#s -etwee# -+si#esses "#d
the $o,er#me#ts i#cre"sed "s " res+%t! which $",e rise to m"#( )r"ctic"%
iss+es.
C+%t+re "#d its re%"ti,it( w"s o#e f"ctor more )romi#e#t th"# the others. Other
ethic"% iss+es i# the co#te*t of i#ter#"tio#"% -+si#ess "re $e#er"%%( de"%t with
the %"ws of the %"#dB "%tho+$h "%% of them f"%% withi# the "m-it of i#ter#"tio#"%
-+si#ess ethics.
G%o-"%is"tio# dimi#ished the -"rriers -etwee# co+#tries o# the $%o-e "#d "%so
c"%%ed for +#i,ers"%i4"tio# of ,"%+es for tr"de to occ+r smooth%(. 1#i,ers"% ,"%+es
were )ercei,ed to co#tro% the -eh",io+r i# the commerci"% s)"ce.
This %e"d to ethic"% iss+es i# the i#ter#"tio#"% -+si#ess )ers)ecti,e! those th"t
were +##ow# ti%% d"te. Other theoretic"% iss+es "rise from the di,ersit( of
-+si#ess ethic"% tr"ditio#s i# ,"rio+s co+#tries "cross the $%o-e.
I# "dditio#! com)"riso#s m"de o# the -"sis of corr+)tio# r"#i#$s of " cert"i#
st"te or o# the -"sis of $ross domestic )rod+ct of " cert"i# eco#om( "%so %e"d
to ethic"% iss+es i# the i#ter#"tio#"% "re#".
Si#ce re%i$io# -ri#$s i# " who%%( differe#t )ers)ecti,e to the w"( we %oo +)o#
thi#$sB the com)"riso# of ethic"% tr"ditio#s from the )ers)ecti,e of the %"tter
"%so $i,es -irth to ethic"% )ro-%ems.
9or e*"m)%e! tr"de i# Christi"# domi#"ted co+#tries is differe#t from the tr"de
i# Is%"mic co+#tries. A$"i# de)e#di#$ +)o# how stro#$ or )rofo+#d the im)"ct
of the re%i$io# is -+si#ess )r"ctices "re i#f%+e#ced )ro)ortio#"%%(.
I# the i#ter#"tio#"% -+si#ess "re#"! ethic"% )ro-%ems "%so "rise o+t mere
i#ter#"tio#"% -+si#ess tr"#s"ctio#s.
9"ir tr"de mo,eme#t! tr"#sfer )rici#$! -io )ros)ecti#$ "#d -io )ir"c( "re
e*"m)%es of tr"#s"ctio#s th"t f"%% withi# the "m-it of i#ter#"tio#"% -+si#ess
ethics.
Simi%"r%( iss+es %ie chi%d %"-o+r "#d c+%t+r"% im)eri"%ism "re co#tro,ersi"%
e#o+$h to c"%% +)o# the "tte#tio# of i#ter#"tio#"% -+si#ess ethics.
@et "#other "re#" for stro#$ re5+ireme#t of ethics wo+%d -e whe#
m+%ti#"tio#"%s -"r$"i# to t"e "d,"#t"$e of i#ter#"tio#"% differe#cesB 9or
e*"m)%e whe# rich #"tio#s o+tso+rce their ser,ices to )oor "#d de,e%o)i#$
#"tio#s "t che")er cost.
Wester# #"tio#s were +) ti%% rece#t%( o+tso+rci#$ m"#( of ser,ices to third
wor%d #"tio#s where the( co+%d hire m"#)ower for the che")est )rices. This %ed
to " se,ere com)etitio# -etwee# de,e%o)i#$ #"tio#s with e"ch o#e offeri#$
che")er %"-o+r th"# the other.
.+m)i#$ is (et "#other w"( -( which %"r$e com)"#ies "re tr(i#$ to i%% the
domestic )%"(ers. 9orei$# )%"(ers ofte# se%% $oods "#d ser,ices "t " che")er
)rice m"i#$ it h"rd for the sm"%% )%"(ers to s+r,i,e the com)etitio#.
Co#s+mer d+r"-%es "#d 9MCG "re -i$$est e*"m)%es of s+ch )r"ctices. The
-i$$er thre"t here is the res+%ti#$ mo#o)o%( which )%"ces the c+stomer i# "
%osi#$ )ositio#.
The i#ter#"tio#"% tr"de commissio# -e$"# for its se"rch of its "#ti-d+m)i#$ %"ws
from the (e"r =JJL.A%% these "re w"(s i# which -+si#ess "t the i#ter#"tio#"%
%e,e% c"# %e"d to ethic"% di%emm"s.
I# "-se#ce of i#ter#"tio#"% -+si#ess ethics it m"( -ecome "%most im)ossi-%e to
re$+%"te -+si#ess "#d cre"te wi##i#$ sit+"tio#s for )eo)%e i# the m"ret )%"ce.
WHIST7E B7OWER0
A whist%e -%ower c"# -e defi#ed "s " )erso# who re,e"%s "#( wro#$doi#$s or
m"%)r"ctices th"t "re t"i#$ )%"ce withi# "# or$"#i4"tio#. Whist%e--%owers "re
those who so+#d the "%ert o# sc"#d"%! d"#$er! m"%)r"ctice! or corr+)tio#.
These re,e%"tio#s co+%d -e m"de either to the $e#er"% )+-%ic or to those who
"re i# " )ositio# of "+thorit(. A whist%e -%ower c"# m"e " disc%os+re of
corr+)tio#! mism"#"$eme#t! i%%e$"% "cti,ities or "#(.
Whist%e -%owi#$ me"#s c"%%i#$ "tte#tio# to wro#$doi#$ th"t is occ+rri#$ withi#
"# or$"#i4"tio#.
THE GO6ERNMENT ACCO1NTABI7IT@ ;ROJECT 7ISTS 9O1R WA@S TO B7OW THE
WHIST7E0
Re)orti#$ wro#$doi#$ or " ,io%"tio# of the %"w to the )ro)er "+thorities.
s+ch "s " s+)er,isor! " hot%i#e or "# I#s)ector Ge#er"% ref+si#$ to )"rtici)"te i#
wor)%"ce wro#$doi#$
testif(i#$ i# " %e$"% )roceedi#$
7e"i#$ e,ide#ce of wro#$doi#$ to the medi" other wro#$doi#$.
ETHICS IN ME.IA0
Medi" ethics is the s+-di,isio# of "))%ied ethics de"%i#$ with the s)ecific ethic"%
)ri#ci)%es "#d st"#d"rds of medi"! i#c%+di#$ -ro"dc"st medi"! fi%m! the"tre! the
"rts! )ri#t medi" "#d the i#ter#et.
The fie%d co,ers m"#( ,"ried "#d hi$h%( co#tro,ersi"% to)ics! r"#$i#$ from w"r
/o+r#"%ism to Be#etto# "d,ertisi#$.
The ethics of /o+r#"%ism is o#e of the most we%%-defi#ed -r"#ches of medi" ethics!
)rim"ri%( -ec"+se it is fre5+e#t%( t"+$ht i# schoo%s of /o+r#"%ism. Jo+r#"%istic
ethics te#ds to domi#"te medi" ethics! sometimes "%most to the e*c%+sio# of
other "re"s.
TO;ICS CO6ERE. B@ JO1RNA7ISM ETHICS INC71.E0
NEWS MANI;17ATION.
News c"# m"#i)+%"te "#d -e m"#i)+%"ted. Go,er#me#ts "#d cor)or"tio#s m"(
"ttem)t to m"#i)+%"te #ews medi"B $o,er#me#ts! for e*"m)%e! -( ce#sorshi)! "#d
cor)or"tio#s -( sh"re ow#ershi).
The methods of m"#i)+%"tio# "re s+-t%e "#d m"#(. M"#i)+%"tio# m"( -e ,o%+#t"r(
or i#,o%+#t"r(. Those -ei#$ m"#i)+%"ted m"( #ot -e "w"re of this.
;1B7IC INTEREST.
Re,e%"tio# of mi%it"r( secrets "#d other se#siti,e $o,er#me#t i#form"tio# m"( -e
co#tr"r( to the )+-%ic i#terest! e,e# if it is tr+e. Howe,er! )+-%ic i#terest is #ot "
term which is e"s( to defi#e.
;RI6AC@.
A s"%"cio+s det"i% of the %i,es of )+-%ic fi$+res is " ce#tr"% co#te#t e%eme#t i#
m"#( medi". ;+-%ic"tio# is #ot #ecess"ri%( /+stified sim)%( -ec"+se the i#form"tio#
is tr+e.
;ri,"c( is "%so " ri$ht! "#d o#e which co#f%icts with free s)eech.
CON97ICT WITH THE 7AW.
Jo+r#"%istic ethics m"( co#f%ict with the %"w o,er iss+es s+ch "s the )rotectio#
of co#fide#ti"% #ews so+rces. There is "%so the 5+estio# of the e*te#t to which
it is ethic"%%( "cce)t"-%e to -re" the %"w i# order to o-t"i# #ews.
9or e*"m)%e! +#derco,er re)orters m"( -e e#$"$i#$ i# dece)tio#! tres)"ss "#d
simi%"r torts "#d crimes.
ETHICS O9 ENTERTAINMENT ME.IA
ISS1ES IN THE ETHICS O9 ENTERTAINMENT ME.IA INC71.E0
The de)ictio# of ,io%e#ce "#d se*! "#d the )rese#ce of stro#$ %"#$+"$e. Ethic"%
$+ide%i#es "#d %e$is%"tio# i# this "re" "re commo# "#d m"#( medi" 2e.$. fi%m!
com)+ter $"mes3 "re s+-/ect to r"ti#$s s(stems "#d s+)er,isio# -( "$e#cies.
A# e*te#si,e $+ide to i#ter#"tio#"% s(stems of e#forceme#t c"# -e fo+#d +#der
motio# )ict+re r"ti#$ s(stem.
;rod+ct )%"ceme#t. A# i#cre"si#$%( commo# m"reti#$ t"ctic is the )%"ceme#t
of )rod+cts i# e#tert"i#me#t medi".
The )rod+cers of s+ch medi" m"( -e )"id hi$h s+ms to dis)%"( -r"#ded
)rod+cts.
The )r"ctice is co#tro,ersi"% "#d %"r$e%( +#re$+%"ted.
STEREOT@;ES.
Both "d,ertisi#$ "#d e#tert"i#me#t medi" m"e he",( +se of stereot()es.
Stereot()es m"( #e$"ti,e%( "ffect )eo)%e:s )erce)tio#s of themse%,es or
)romote soci"%%( +#desir"-%e -eh",io+r.
The stereot()ic"% )ortr"("%s of me#! "ff%+e#ce "#d eth#ic $ro+)s "re e*"m)%es
of m"/or "re"s of de-"te.
TASTE AN. TABOOS.
E#tert"i#me#t medi" ofte# 5+estio#s of o+r ,"%+es for "rtistic "#d
e#tert"i#me#t )+r)oses. Norm"ti,e ethics is ofte# "-o+t mor"% ,"%+es! "#d wh"t
i#ds sho+%d -e e#forced "#d )rotected.
I# medi" ethics! these two sides come i#to co#f%ict. I# the #"me of "rt! medi"
m"( de%i-er"te%( "ttem)t to -re" with e*isti#$ #orms "#d shoc the "+die#ce.
Th"t )oses ethic"% )ro-%ems whe# the #orms "-"#do#ed "re c%ose%( "ssoci"ted
with cert"i# re%e,"#t mor"% ,"%+es or o-%i$"tio#s.
The e*te#t to which this is "cce)t"-%e is "%w"(s " hot-ed of ethic"%
co#tro,ers(.
ME.IA AN. .EMOCRAC@
I# democr"tic co+#tries! " s)eci"% re%"tio#shi) e*ists -etwee# medi" "#d
$o,er#me#t. A%tho+$h the freedom of the medi" m"( -e co#stit+tio#"%%(
e#shri#ed "#d h",e )recise %e$"% defi#itio# "#d e#forceme#t! the e*ercise of
th"t freedom -( i#di,id+"% /o+r#"%ists is " m"tter of )erso#"% choice "#d ethics.
Moder# democr"tic $o,er#me#t s+-sists i# re)rese#t"tio# of mi%%io#s -(
h+#dreds. 9or the re)rese#t"ti,es to -e "cco+#t"-%e "#d for the )rocess of
$o,er#me#t to -e tr"#s)"re#t! effecti,e comm+#ic"tio# )"ths m+st e*ist to
their co#stit+e#ts.
Tod"( these )"ths co#sist )rim"ri%( of the m"ss medi"! to the e*te#t th"t if
)ress freedom dis"))e"red! so wo+%d most )o%itic"% "cco+#t"-i%it(. I# this "re"!
medi" ethics mer$es with iss+es of ci,i% ri$hts "#d )o%itics.
ISS1ES INC71.E0
S+-,ersio# of medi" i#de)e#de#ce -( fi#"#ci"% i#terests.
Go,er#me#t mo#itori#$ of medi" for i#te%%i$e#ce $"theri#$ "$"i#st its ow#
)eo)%e.
EN6IRONMENTA7 ETHICS0
MORA7 AGENTS
Those who h",e the freedom "#d r"tio#"% c")"cit( to -e res)o#si-%e for choices
Those c")"-%e of mor"% ref%ectio# "#d decisio#.
E*"m)%e0 "d+%t h+m"#s of so+#d mi#d
I#f"#ts "#d me#t"%%( i#firm "d+%ts "re NOT mor"% "$e#ts
MORA7 STAN.ING0
If (o+ h",e mor"% st"#di#$0
@o+r co#ti#+ed e*iste#ce or we%f"re is ,"%+"-%e i# itse%f 2i#tri#sic ,"%+e3
@o+r i#terests "#d we%%--ei#$ m+st -e wei$hed whe# decidi#$ wh"t is
)ermissi-%e to do.
E*"m)%e0 h+m"#s of "%% i#ds
B"-ies! chi%dre#! "d+%ts! o%d )eo)%e! etc.
Wome#! differe#t r"ces! differe#t c+%t+res
MORA7 .1TIES
Th"t which is owed -( mor"% "$e#ts to those with mor"% st"#di#$.
E*"m)%e0 It is wro#$ to i%% o+r chi%dre# -ec"+se we h",e " mor"% d+t( tow"rd
them.
;HI7OSO;HICA7 ISS1E
Mem-ershi) i# the s)ecies Homo s")ie#s
H+m"#s h",e " so+%
H+m"#s "re mor"% "$e#ts "#d "re res)o#si-%e for #owi#$ ri$ht from wro#$
H+m"#s "re i#te%%i$e#t
H+m"#s h",e )erso#hood "#d se%f-co#scio+s#ess
H+m"#s h",e %"#$+"$e
ANTHRO;OCENTRISM
We c"# -est )rotect #"t+re -( %ooi#$ o+t for h+m"# #eeds.
E*0 .+cs 1#%imited )reser,es wet%"#ds
E*0 S",i#$ the r"i#forests wi%% )ro,ide O= "#d medici#es for h+m"#s.
;ro-%em0 Wo+%d (o+ -%ow +) the wor%d if (o+ were the %"st h+m"#
ETHICA7 ;OSITIONS
SENTIO-CENTRISM0
Se#tie#t--ei#$ c"#tered mor"%it(
A%% "#d o#%( se#tie#t -ei#$s 2"#im"%s th"t fee% )"i#3 h",e i#tri#sic ,"%+e "#d
mor"% st"#di#$.
The rest of the #"t+r"% wor%d h"s i#str+me#t"% ,"%+e.
Both h+m"#s "#d se#tie#t "#im"%s h",e ri$hts "#d8or i#terests th"t m+st -e
co#sidered
ECO-CENTRIC HO7ISM0
ECOS@STEM CANTERE. MORA7IT@
No#-i#di,id+"%s 2the e"rth "s "# i#terco##ected ecos(stem! s)ecies! "#d
#"t+r"% )rocesses3 h",e mor"% st"#di#$ or i#tri#sic ,"%+e "#d "re deser,i#$ of
res)ect.
I#di,id+"%s m+st -e co#cer#ed "-o+t the who%e comm+#it( of %ife8#"t+re!
H+m"#s sho+%d stri,e to )reser,e eco%o$ic"% -"%"#ce "#d st"-i%it(.
H+m"#s "re dee)%( co##ected with #"t+re.
If h+m"#s ide#tif( with #"t+re! the# t"i#$ c"re of the #"t+r"% wor%d wi%%
-ecome )"rt of t"i#$ c"re of o#e:s se%f
ETHICA7 CON97ICT0
Ethic"% co#f%icts "rise whe# someo#e h"s to m"e " choice -etwee# ,io%"ti#$
"#d "-idi#$ -( o#e or more of their mor"% )ri#ci)%es! %e"di#$ to " )"r"do* where
#either choice %e",es the i#di,id+"% s"tisfied.
9or e*"m)%e! ethic"% co#f%ict %ies "t the he"rt of sit+"tio#s i# which " f"ther
ste"%s food to feed his st"r,i#$ f"mi%( or "# em)%o(ee ee)s 5+iet "-o+t
someo#e e%se:s misco#d+ct i# the wor)%"ce i# order to s",e his ow# /o-.