Presentation on Ethics in Business and Society

Ethics:
What’s the
Fuss?
When evaluating one’s goals and
objectives, a vital question
must be asked: What is your
highest aspiration?
A. Wealth
B. Fame
C. Knowledge
D. Popularity
E. Integrity
If integrity is second to any
of the alternatives, then it is
subject to sacrifice in
situations where a choice
must be made. Such
situations will inevitably
occur in every person’s life.
 Why talk about ethics?
Why talk about ethics? In the aftermath of major
corporate failures and questionable accounting
practices, American Accounting Association
President G. Peter Wilson said that in the classroom,
educators need to increasingly emphasize the value of
integrity, what has long been a mainstay of
accountants’ reputation
 In a recent Wall Street Journal
article, Psychology
professor Steven Davis says that cheating
by high school students has increased
from about 20 percent in the 1940’s
to 75 percent today.
“Students say cheating in high school is
for grades, cheating in college is for a
career.”
 If students lack ethics in high school and
college, then there should be little surprise
that they lack ethics in their careers. Greed
and over-reaching ambition often end in
disastrous personal consequences.
Many institutions of higher education have
instituted policies regarding ethics education. For
example, the Faculty Handbook of the Mays
Business School at Texas A&M University includes
the following statement:
“Therefore, faculty and staff have a responsibility
for creating an academic environment that
promotes honest academic inquiry and teaches
students ethical behavior in the process.”
 Educational Institutions
have established ethics
codes for their students,
e.g. the U.S. Air Force
Academy:

"We Will Not Lie, Steal Or Cheat, Nor

Tolerate Among Us Anyone Who Does"
-- Which do you think is the harder part:
Line 1 or Line 2? Why?
What do profs think?
In a survey of college faculty, 187 professors responded to
several statements about teaching ethics:
1. The importance of ethics and personal integrity
should be stressed in the courses I teach. 4.75
2. The basis for ethics and personal integrity
should be discussed (e.g. benefit to society as a
whole, moral and religious foundations of
society, etc.) 4.11
Note: Scores are based on a scale from
1: Strongly Disagree to 5: Strongly Agree
American Institute of CPAs Code of
Professional Conduct, Principles
Article I:
In carrying out their responsibilities as
professionals, members should exercise
sensitive professional and moral
judgments in all their activities.
 Is there an ethics crisis in
America?
One recent national election day poll
indicated that 56 percent of voters
thought that America’s problems are
“primarily moral and social.” Only 36
percent thought that the nation’s
problems were “primarily economic.”
The background for teaching
BUSINESS ETHICS
as a
COMPULSARY SUBJECT
Is therefore
Meaning and definition of ethics
• Principles governing an individual or a
group is called ethics
• Ethics is a study of morality.
• Morality are the standards that an individual
or a group has about what is right or
wrong /good or bad. Morality comes from
family friend, television, magazine music.
 What is Ethical Relativism?
The theory, that no morality is objective
and there is no universal characteristic of
morality, is the concept of Ethical
Relativism.
 Examples
• Bribing
• Entertainment
• Child Labour
• Racism
• Advertising
 Importance of Ethical Relativism

• The goal of any Business House should be

to arrive at a common morality for all
people in the world amidst the rich
pluralities of cultures and national
aspirations.
 SOME GOOD EXAMPLES
• EXAMPLE OF MERC PHARMA.
• Good guys fail
• Job opportunities
• EXAMPLE OF TATA GROUP.
• Csr and employee welfare
 VOILATION OF BISINESS
ETHICS
•Production of children's toys
•Coffee industry
•Baby milk
•Music industry
•Multi-national operations
•McDonalds – food quality, litter
•Chocolate industry
•Jewellery – diamonds and gold
•Chemical industry
Who the hell want needs ethics
we want profits

Is being ethical justified?

Ask your shareholders first?
Concept of social business.
(mhd.yun)