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outcomes. As such, values reflect a person’s sense of right and wrong or what “ought” to
Values are core beliefs that guide and motivate attitudes and actions. Values can be defined as those things that are important to or valued by someone. That someone can be decisions about right and wrong, should and shouldn't, good and bad. They also tell us value over another. an individual or, collectively, an organization. Values are the rules by which we make which are more or less important, which is useful when we have to trade off meeting one
A value system is a set of consistent values and measures. A principle value is a foundation upon which other values and measures of integrity are based.
According to Morris Massey values are formed during three significant periods: 1. Imprint period from birth to 7 years. 2. Modelling period from 8 –13 years. 3. Socialization period from 13 –21 years.
Personal Values provide an internal reference for what is good, beneficial, important,
useful, beautiful, desirable, constructive, etc. Values generate behaviour and help solve common human problems for survival by comparative rankings of value, the results of which provide answers to questions of why people do what they do and in what order they choose to do them. Morals Morals have a greater social element to values and tend to have a very broad acceptance.
Morals are far more about good and bad than other values. We thus judge others more strongly on morals than values. A person can be described as immoral, yet there is no word for them not following values. Ethics Ethics tend to be codified into a formal system or set of rules which are explicitly adopted by a group of people. For example- medical ethics. Ethics are thus internally defined and adopted, whilst morals tend to be externally imposed on other people.
selling of duplicate and harmful products. not neutral Utilitarian –proposed course of action should be judged from the standpoint of the greatest good for the greatest number of people Moral indicates what people do.Greek root ‘ethos’ meaning character.. artificial high pricing. 2. adulteration. standards or ideals that pervade a group. Some businesses which they can trust. i. hoarding. suppliers. investors.e. 3. guiding beliefs. cheating in weights and measures. they do not cheat the customers. the employees will follow suit. while ethics represent what people should do IMPORTANCE OF ETHICS AND VALUES IN BUSINESS 1. Profit Maximization Ethical businesses tend to make much more profits than the others. business malpractices are harmful to the consumers. Shareholders too. etc. This will result in better and efficient utilization of the business resources. 4. which is well-known for its ethical practices. Creates Goodwill in the Market An organization. creates goodwill for itself in the market. etc. The reason for this is that customers of businesses which follow ethics are loyal and satisfied with the services and product offerings of such businesses. Investors or venture capitalists are more willing to put their money in the ethical business. Business ethics help to stop these businessmen do business malpractices by indulging in . remain satisfied with the practices of an Stop business malpractices: unscrupulous unfair trade practices like black-marketing. These business malpractices. community or people “Ethics refers to a set of moral principles which should play a very significant role in guiding the conduct of managers and employees in the operation of any enterprise” It is normative and perspective.. Efficient Utilization of Business Resources If the management or seniors of an organization follow ethical business practices.
shareholders. suppliers. of the products. businessmen who follow ethical rules. 7. This is because that businessman. it is always better to follow appropriate code of conduct to survive in the Safeguarding consumers' rights: The consumer has many rights such as right to health and safety. then they will be fully accepted and not criticised by the society. Business ethics are must to safeguard these rights of the consumers.5. 11. he will fail in market. shareholders. It will also result in profits for the businesses thereby resulting in growth of economy. He will also tell others not to buy from that businessman. Therefore. right to be informed. It protects them from exploitation through unfair trade practices. The customers have more trust and confidence in the Business ethics are mandatory for the survival of business. price. etc. But many businessmen do not Business ethics are required to protect the interest of employees. This will result in failure of the business. If the businessmen follow all ethical rules. but they will fail in the long run. 10. After that. etc. consumers. the consumer will not buy goods from follow it will have short-term success. 9. the market. etc. Survival of business: Improve customers' confidence: quantity. Business ethics are needed to improve the customers' confidence about the quality. So they will give full cooperation to . The society will always support those businessmen who follow this necessary code of Smooth functioning: If the business follows all the business ethics. conduct. Creates good image: Business ethics create a good image for the business and businessmen. Develops good relations: Business ethics are important to develop good and friendly relations between business and society. Protecting employees and shareholders: right to choose. then the employees. dealers. right to redress. respect and protect these rights. dealers and suppliers will all be happy. 8. So this will defame his image and provoke a negative publicity. competitors. right to be heard. if the businessmen do not follow ethical rules. 6. So. The businessmen who do not they can cheat a consumer only once. This will result in a regular supply of good quality goods and services at low prices to the society.
Healthy competition: conditions. Therefore. They boycott poor quality. high-priced and counterfeit Today. Employees or workers play a very crucial role in the success of a business. Therefore. Now they are more organised and hence business practices. The The business must use business ethics while dealing with the competitors. If the consumer is not satisfied. These stakeholder groups can benefit from a company’s . the business will grow. Consumer satisfaction: Today. and shareholders are performs or interacts with them. expand and diversify easily and quickly. 12. Similarly. the consumers are aware of their rights. 15. the only way to survive in business is to be honest and fair. suppliers. It will have more sales and more profits. and hence are highly needed.the business. Importance of labour: satisfaction. They must have healthy competition with the competitors. the main aim or objective of business is consumer too. or ownership in an example of primary stakeholder groups. 14. Therefore. There must be good relations between employer and employees. i. employees. Consumer movement: Business ethics are gaining importance because of the growth of the consumer movement. This is because a monopoly is harmful to the consumers. Any business simply cannot survive without the consumers. BUSINESS RESPONSIBILITIES TOWARDS STAKEHOLDERS Stakeholders are individuals or groups that have interests. they must give equal opportunities to small-scale business. organization and its activities. then there will be no sales and thus no profits Labour. Customers. 13. So. harmful. Each has interest in how an organization success and can be harmed by its mistakes. The business must give them proper wages and salaries and provide them with better working employees must also be given proper welfare facilities. They take actions against those businessmen who indulge in bad (duplicate) goods. This will result in smooth functioning of the business. the consumer is the king of the market. Consumer will be satisfied only if the business follows all the business ethics. They must avoid monopoly. cannot be cheated easily. rights. business must use business ethics while dealing with the employees.e. They must not do cut-throat competition.
policies. and regulations that protect consumers and citizens. and the media. nongovernmental organizations (NGOs). Right to be compensated Corporate Responsibility toward Consumer Stakeholders 1. 3. Duty to take due care to prevent any unforeseeable injuries Rights consumers have in their social contact with corporations include: 5. The term Corporate Social Responsibility goes by many other terms such as corporate citizenship. . more and more organizations are adapting the model of corporate social responsibility. Corporations have certain responsibilities and duties toward their customers and consumers in society: 1. Right to be heard 9. Secondary stakeholders include governments (especially through regulatory agencies). Right to safety 7. In orders to serve their stakeholders in an ethical and social manner. responsible business or simply corporate responsibility. Right to free and rational choice 8. political action groups. Duty not to force or take undue advantage 4. Duty to inform 2. 2. The mixed market economy perspective includes a balance between the private property systems and the government laws. Right to know 6. There are several arguments regarding the free-market theory. Duty not to misrepresent 3. The free-market theory holds that the primary aim of business is to make a profit.Secondary stakeholders are also important because they can take action that can damage or assist the organization. activities. unions.
Corporate Responsibility and the Environment 1. Causes of environmental pollution include: Consumer affluence Urbanization Materialistic cultural values Population explosion Industrial activities New and uncontrolled technologies 3. The most significant environmental problems include: Toxic air pollution Water pollution and the threat of scarcity Hazardous waste and land pollution 2. A number of governmental regulatory agencies have been created to develop and enforce policies and laws to protect the general and workplace environments: OSHA CPSC EPA CEQ 4. The ethical principles of rights and duties regarding the treatment of the environment and multiple stakeholders are: Rights of future generations Right to a livable environment 6. An innovative trend in new ecology ethical thinking is linking the concepts of: Green marketing Environmental justice Industrial ecology 5. New assumptions and practices driving corporate changes toward the environment include: International community .
internal stakeholders. and norms in carrying out business activities that ensures the serving the interest of all external and achieved when its activities meet or exceed the expectations of all its stakeholders. it is said to have possessed a self-regulating mechanism that guides. In other words. ethics. the objective of being socially responsible business is . Green marketing Environmentally friendly strategies When an organization builds ethical and social elements in its operating philosophy and integrate them in its business model. monitor and ensure its adherence to law.
Total Corporate Social Responsibility Social Responsibility Social responsibility is the duty and obligation of a business to other stakeholders. Stakeholder Employee Supplier Local Example of responsibility to that stakeholder Good return on investment Fair pay and working conditions Regular business and prompt payment Fair price and safe product Jobs and minimum disruption Employment for local community Less pollution Shareholder Customer community Government Environment .
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