Professional Documents
Culture Documents
Ethics
UNIT 1
UNIT II
62
Business Environment and Ethics
63
LESSON Ethics
6
ETHICS
CONTENTS
6.0 Aims and Objectives
6.1 Introduction
6.2 Ethical Theories
6.3 Characteristics of Ethics
6.4 Modern Decision-making and Ethics
6.5 Ethical Decision-making Dilemma
6.6 Sources of Ethics
6.7 Ethics and Profit
6.8 Let us Sum up
6.9 Lesson End Activities
6.10 Keywords
6.11 Questions for Discussion
6.12 Suggested Readings
6.1 INTRODUCTION
The word ‘Ethics’ has been originated from the word ‘ethos’, meaning character or
manners. Ethics is thus said to be the science of morals; a treatise on this: moral
principle; recognized rules of conduct. Ethics involves judgment as to good and bad,
right and wrong, and what ought to be. Ethics deals with things to be sought and
things to be avoided by ways of life. An ethical dilemma exists where two or more
values are in conflict, and we seek from ethics a resolution to this conflict. Business
ethics refers to the measurement of business behavior on standards of right and wrong,
rather than relying entirely on principles of accounting and management. Ethics is not
only desirable but is essential for the smooth functioning of business. If business does
not follow ethics then there will be an utter chaos and there will be no trust and in this
situation there is no scope of business. Ethics plays a role whether it is a buyer and
seller relationship or it is a competitor relationship. The objectives of Ethics are:
1. Studying human behavior and makes evaluative assessment about them as moral
or immoral (diagnostic goal).
64 2. Established moral standards and norms of behaviour.
Business Environment and Ethics
3. Makes judgment upon human behavior based on these standards and norms.
4. Prescribe moral behavior and makes recommendation about how to or how not to
behave (therapeutic goal)
5. Express an opinion or attitude about human conduct in general.
6. TISCO never faced any lock out or labor problem only because of ethical
standards followed by TATA. TATA is one of the most trusted brands of India
only because of its ethical standards.
Matsushita Electric Co. follows the following value system
The seven ‘Spiritual’ Values
1. National Service through Industry
2. Fairness
3. Harmony and Cooperation
4. Struggle and Betterment
5. Courtesy and Humility
6. Adjustment and Assimilation
7. Gratitude
Prof. S.K. Chakraborty in his book “The Management and Ethics Omnibus” cited
following values which are deep rooted in Indian Culture and Society:
1. The Individual Must be Respected
2. Cooperation and Trust
3. Jealousy is Harmful for Health
4. ‘Chitta-Shuddhi’ or Purification of the Mind
5. Top Quality Product/ Service
6. Work is Worship
7. Containment of Greed
8. Ethico-moral Soundness
9. Self-discipline and Self-restraint
10. Customer Satisfaction
11. Creativity
12. The Inspiration to Give
13. Renunciation and Detachment
6.10 KEYWORDS
TISCO: Tata Iron and Steel Company.
AAA: American Accounting Association.
CFBP: Council for Fair Business Practices.
CYP 2
1. True 2. False 3. False
4. True 5. True 6. True