BUSINESS ENVIRONMENT

AND
CORPORATE ETHICS

MODULE – 5 ETHICS

2020-2021

SEMESTER 1

MBA TOURISM

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 CONTENTS
SL NO TOPIC PAGE NO

1. Introduction to ethics 4
2. Importance of ethics& Business ethics 4
3. Ethical concepts & theories 6
4. Ethical values 8
5. Business ethics 9
6. Factors affecting business ethics 10
7. Ethical decision making 11
8. Ethics in the functional areas 13
9. Ethical gap 14
10. Ethical leadership 15
11. Ethical dilemma 15
12. Ethical &Business strategy 16
13. Ethical committee 16
14. Ethical audit 17
15. Whistle blowing 18
16. Influence of Organisational culture in ethics 19
17. Ethics & Government 21

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 GROUP 2

NAME OF TOPIC EMAIL ID

MEMBERS
 Introduction to Ethics
DEVIKA V S  Importance of Ethics devika.sv11@gmail.com
&Business Ethics
 Ethical Concepts
&Theories
 Ethical Values
DHEERAJ S  Business Ethics dheerajsajeevan28@gmail.com
 Factors affecting business
ethics
 Ethical Decision making
MILANA  Ethics in the functional milana79023@gmail.com
LUCKOSE areas
LAZER  Ethical gap
 Ethical dilemma
SANGEETHA J  Ethical leadership Sangeethaullas05@gmail.com
 Ethical & business strategy

 Ethical Committee
MANAS C P  Ethical Audit manascp98@gmail.com
 Whistle blowing

 Influence of Organisational
ADARSH R S Culture in Ethics adarshkottamom@gmail.com
 Ethics & Government

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INTRODUCTION TO ETHICS

At its simplest, ethics is a system of moral principles. They affect how people make
decisions and lead their lives. The term ethics is derived from the Greek word ‘ethos’
which can mean custom, habit, character, or disposition.

Ethics is concerned with what is good for individual and society and is also described as
moral philosophy. Morality means usually a more practical approach to ethics, for
example questions about the right and wrong in actions.

Ethics covers the following dilemmas:

 How to live a good life.

 Our rights and responsibilities.
 The language of right and wrong.
 Moral decisions-what is good and bad?

Our concept of ethics have been derived from religions, philosophy, and cultures.

IMPORTANCE OF ETHICS

Primarily it is the individual, the consumer, the employee or the human social unit of
the society who benefits from ethics. In addition ethics is important because of the
following:

1. Satisfying Basic Human Needs

Being fair , honest and ethical is one of the basic human needs. Every employee
desires to be such himself and to work for an organisation that is fair and ethical in
its practices.

2. Creating Credibility

An organisation that is believed to be driven by moral values is respected in the

society even by those who may have no information about the working and the
businesses or an organisation. Infosys, for example is perceived as an organisation
for good corporate governance and social responsibility initiatives. This perception
is held far and wide even by those who do not even know what business the
organisation is into.

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3. Uniting People and Leadership

An organisation driven by values is revered by its employees also. They are the
common thread that brings the employees and the decision makers on a common
platform. This goes a long way in aligning behaviours within the organisation
towards achievement of one common goal or mission.

4. Improving Decision Making

A man’s destiny is the sum total of all the decisions that he takes in course of his
life. The same holds true for organisations. Decisions are driven by values. For
example an organisation that does not value competition will be fierce in its
operations aiming to wipe out its competitors and establish a monopoly in the
market.

5. Long term Gains

Organisations guided by ethics and values are profitable in the long run, though in
the short run they may seem to lose money. Tata group, one of the largest business
conglomerates in India was seen on the verge of decline at the beginning of 1990’s,
which soon turned out to be otherwise. The same Tata NANO car was predicted as a
failure and failed to do well but the same is picking up fast now.

IMPORTANCE OF BUSINESS ETHICS

1. Attracts customers

The business can only succeed in the marketplace only if it is able to keep the
customers happy and satisfied to the core. It has to offer the products and services
that are high on the parameters of quality and are manufactured using ethical
business practices.

2. Attracts loyal and talented employees

It is very crucial for the management of the firm to realize and follow the
importance of business ethics if it wants to attract the workplace that is talented
and proficient. As one of the main considerations of the job aspirants whilst
joining any firm is that the company has to be ethical in its business practices.
Hence, the company has to be very clear with the job title, job description ,roles

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 ,pay and follow ethical relationships with the employees in order to attract a loyal
and talented workplace.

3. Retain loyal employees

In continuation of the above mentioned point, employees of the firm actually

know the business aims and objectives of the firm. To be very precise, they
know and understand that if the business is ethical in its product offerings,
business dealings with the investors, customer service levels and if the company
is treating its employees in an ethical and fair manner. And they will stick
around with the firm to a longer period of time only if the firm is ethical in all of
its business dealings and operations.

4. Competitive advantage

As making ethics as its business fundamentals and objectives it attracts loyal

customers, attract talented workforce, retain loyal employees and has good
financial investors and all of it have a cascading effect on the entire business.
Amidst the tough competition and dynamic market, the firm is able to beat the
competition with its ethical offerings and business operations successfully
surviving and thriving in the market.

5. Higher profits

One of the main objectives of the firm is to generate higher levels of profits so
that it is able to climb the ladder of success in a short span of time. And this
objective is possible only if the firm understands the importance of business
ethics. And following the ethical way makes the firm win trust and faith of
customers, investors, vendors, employees, and other stakeholders of the firm.
And it further results in the higher sales of the products and services offered by
the products and services offered by the firm that makes way for elevated
profits.

ETHICAL CONCEPTS
Business Ethics ensures that a certain basic level of trust exists between consumers
and various forms of market participants with businesses. The concept of business
ethics began in 1960s as corporations became more aware of a rising consumer-based
society that showed concerns regarding the environment , social causes and corporate

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responsibility. The increased focus on so called social issues was a hallmark of the
decade.

Business ethics are meant to ensure a certain level of trust between consumers and
corporations, guaranteeing the public fair and equal treatment.

ETHICAL THEORIES
Each moral theory holds a specific approach in how to handle life’s decisions.
Throughout history, a few moral theories have surfaced and have been analyzed for
their strengths and weaknesses. A moral theory often shapes a person’s attitude
towards others, belief system and life choices.

There are four major ethical theories : deontology, utilitarianism, relativism and
virtue. Each one of these theories looks at our ethical behaviour in different ways.

1. Deontology

The theory of deontology states that when we have to make ethical decisions,
our first thoughts are on our duties and obligations. According to this theory,
what we believe our duties are will drive how we act in different situations.

The biggest hole in the theory of deontology is that there is no standard for what
a person’s duties and obligations are. Philosophers who don’t agree with this
theory believe that everyone’s duties are different , so there is no way to know
what drives a person to make a particular decision.

2. Utilitarianism

According to the theory of utilitarianism, people choose their actions based on

how their decisions will benefit the most people. You make a decision that will
be best everyone involved. There are two sides to this theory. Act utilitarianism
says you will make decisions based on helping others, while rule utilitarianism
says you will act out of fairness.

Those who don’t agree with this theory believe that nobody can predict
outcomes, so we can’t know what the benefits of our actions will be. Comparing
consequences can be hard so some philosophers say that we can’t truly make
utilitarian decisions.

3. Virtue

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 Virtue is very distinct from other ethic theories. In that it looks at a person’s
individual character, not necessarily his actions. When observing an unethical
position, the virtue theory considers the person’s reputation and purpose for
committing the act. If a student is temperate, modest, and intelligent on writing
class assignment, the virtue theory would analyse the student’s past personality
traits and interpersonal skills in order to determine whether the student is truly
guilty.

4. Relativism

Relativism is a theory that deems your moral obligations and beliefs to be based
on the individual environment. For example, in American culture cannibalism is
considered taboo, while in other cultures the act of consuming other human flesh
is accepted as a sacrifice or ritual. Relativism determines morals and ethics
according to the society that is being observed. Relativism argues that every
society and culture believes differently and thus, each culture must be evaluated
according to its particular cultural patterns and influences.

ETHICAL VALUES
Meaning

Values and ethics in simple words mean principle or code of conduct that govern
transactions. These ethics are meant to analyse problems that come up in day to day
course of business operations. Apart from this it also applies to individuals who work in
organisations, their conduct and to the organisations as a whole.

Definition

Ethics is defined as philosophical thinking on morality and to what should a person

commit in his/her moral judgement and decision making. It is the science of human
actions that is based on the natural power of our mind.

Professional Code of Ethical Values

Many professions and corporations have developed codes of ethics to address their
unique business situations. By developing a code of ethics, an organization makes it
clear that employees and members cannot claim ignorance as a defence for unethical
conduct. Examples of ethical values includes :

1. A physician maintaining his patients' confidentiality.

2. An accountant not using client information for personal gains.
Importance of Ethical Values in Organizations

1. Builds a positive Corporate Culture

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 2. Boosts Consumer Confidence
3. Reduces Financial Liabilities
4. Minimizes Potential Lawsuits
Benefits of Ethical Values

1. Creates Credibility
2. Improves Decision Making
3. Secures society
4. Helps in Long term Gains
5. Satisfy basic Human needs

BUSINESS ETHICS
Meaning

Business ethics are a set of principles that determine what is right, wrong and
appropriate in the workplace. A company’s business ethics influence conduct for every
employee, including interpersonal relationships within the company as well as business
relationships with external customers. The purpose of business ethics is to ensure a
consistent moral attitude within the company, from top level management to lower
level. It makes sure everyone is respected and treated with fairness and honesty.

Definition

Business ethics are ethics that refers to the moral rules and regulation governing the
business world.

Needs of Business Ethics

1. Needed to make business activities fair and reasonable.

2. Improve consumer confidence.
3. Develop good relations between business and society.
4. Smooth functioning of business.
5. Consumer satisfaction.
6. Healthy competition.
7. Help the organisations to protect their reputations.
8. Help the organization in determining obligations and duties towards individual
and groups outside the organization.

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FACTORS AFFECTING BUSINESS ETHICS

1. Leadership

A leader is a person who leads the employees and the organization, and thus his
decisions affect the ethics of the organization to a great extent. The inherent
characteristics of the person thus affects the organization as a whole. If the
leader can lead in ethical ways and motivates the employees, the employees will
perform in legal ways.

2. Personal values

Employees generally emulate the behavioural standards of their bosses. For

example, professional managers tend to focus less on profit maximisation than
owner-managers.

3. Political and Legal factors

Political stability is the most important external factor that affect on business
ethics. Prominent political parties in the country and the government in power
may also have influence on ethical values. Few examples of government
regulation are, safety in factories and mines, anti pollution measures etc.

4. Competitors

If one of the competitors act in an illegal way and he gains more profits. We
must not take in consideration that the main reason for achieving high profits
that is referred to illegal way.

5. Social values

The society has a powerful influence on the business community. It can compel
the businessman to accept and follow ethical norms and desist from unethical
business practices. The stand taken by the society towards ethical considerations
is also relevant here. If the society takes a firm stand requiring the organization
to behave in an ethical manner so as to enable its survival, then the business will
also impart ethics into their activities.

6. Cultural values

These are passed on from generation to generation. They have a long lasting
impact on the ethical norms the business managers have to follow. Institutions

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 provides for values of persons and organisations which are interrelated. These
institutions prescribes what is good or bad for an individual or an organisation.

7. Professional Codes

Professional codes are an important source of ethical norms for professionals in

business organisations. Professional codes are prescribed by associations of
professionals such as Institute of Chartered Accountants of India, Medical
Council of India and Bar Council of India.

ETHICAL DECISION MAKING

Definition

Managers affect the behaviour and decision-making capability of individuals. The

individuals in an organization are responsible for conducting business operations.
Management is defined as a decision-making process. Ethical decision-making is a
method of evaluating and choosing the alternatives decided by ethics management.

The process of making ethical decisions requires:

 Commitment: The desire to do the right thing regardless of the cost

 Consciousness: The awareness to act consistently and apply moral convictions
to daily behaviour
 Competency: The ability to collect and evaluate information, develop
alternatives, and foresee potential consequences and risks

The following should be kept in mind while making ethical decisions:

 Identify and eliminate unethical options in the alternatives.

 Identify complex, ambiguous and incomplete facts and try to avoid them.

 Determine the ethical dilemma and resolve it.

 Select the best ethical alternative.

SIMON’S DECISION-MAKING MODEL

Herbert A. Simon planned a model for decision-making that was known as the Simon’s
model of decision-making. According to Herbert A. Simon, the decision making model
is based on the following sequence of steps.

These steps are:

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(i) Identifying the problem

(ii) Generating alternative solution

(iii) Selecting a solution

(iv) Implementing and evaluating the solution

This model has the following three phases:

 The Intelligence phase

 The Design phase
 The Choice phase
 Monitor phase

PROCESS INVOLVED IN DECISION MAKING

1. Gather the facts

2. Define the ethical issues
3. Identify the affected parties (stakeholders)
4. Identify the consequences
5. Identify the obligations (principles, rights, justice)
6. Consider your character and integrity
7. Think creatively about potential actions
8. Check your gut
9. Decide on the proper ethical action and be prepared to deal with opposing
arguments.

IMPORTANCE OF ETHICAL DECISION MAKING

It quickly becomes clear when we list several important attributes commonly associated
with ethical management:

Honesty

 Informed
 Accuracy, unbiased
 Truthfulness
Fairness

 Knowledgeable
 Just
 Merciful
 Responsible
 Equitable
Respectful & Caring

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  Goodwill toward all
 Treat others not just as means to an end
 Beneficial to all wherever possible
 Loyal
Reliability

 Predictable
 Sustainable
Sensibility

 Fact-based
 Well-reasoned

FACTORS AFFECTING ETHICAL DECISION MAKING

 CERTINITY-Decisions are made under conditions of certainty when the

manager has enough information to know the outcome of the decision before it
is made.
 RISK-Most managerial decisions are made under conditions of risk.
 UNCERTINITY- Decisions are made under uncertainty when the probabilities
of the results are unknown.

ETHICS IN FUNCTIONAL AREAS OF BUSINESS

The different functional areas of ethics in business are as follows:

I. ETHICS IN FINANCE

 Adoption of proper accounting policies

 Proper valuation of assets
 Fair disclosure of relating to financial affairs of organisations
 Adhere to GAAP/IFRS
 Ethical audit practices
 Not practicing creative accounting
 Optimum utilization of finance

II. ETHICS IN HUMAN RESOURCE MANAGEMENT

 Providing with fair salary and wages

 Providing good working conditions
 Satisfaction of security needs and job satisfaction
 Providing career opportunity for career development
 Fair and just evaluation of employees performance
 Encourage union and labour relation

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  Enhancement of knowledge capital

III.ETHICSIN SALESAND MARKETING

 Understanding of customers
 Marketing of safe and useful products snacks
 Fair and adequate information about services within the rules and regulations.
 True and fair advertisement
 Correct weights and measures
 Not supplying injurious products for commercial gain
 Ensuring stability in pricing

IV. ETHICS IN PRODUCTION

 Uses of quality raw materials

 Production of quality product
 Minimizing production wastage
 Effective utilization of productive resources
 Testing of product before releasing market

V. OTHER ETHICAL ISSUESIN BUSINESS

 Uphold the human rights

 Proper care about customers
 Develop customer loyalty
 Uphold interest of society
 Use the knowledge and skills for wellbeing of people of society
 Fair market research

ETHICAL GAP

An ethical gap is an actual gap in a company where ethics are concerned. They may say
and act one way but they do another, thus causing a gap of ethics to form.

Ethical gap is when the business failed to meet its fundamental principles (ethical
standards) there is a gap between expected and actual practice.

Example: In marketing department, there is a principle called fair and reasonable

pricing. If this business has this in there fundamental and in practice while fixing price

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they might be not following this. So, there is a gap between expected and actual (they
might fix high price for the goods even though it doesn’t have much value).So here be
found an ethical gap in pricing.

ETHICAL LEADERSHIP
Ethical leadership is leadership that is directed by respect for ethical beliefs and values
and for the dignity and rights of others. It is thus related to concepts such as trust,
honesty, consideration, charisma, and fairness.

Ethics is concerned with the kinds of values and morals an individual or a

society finds desirable or appropriate. Furthermore, ethics is concerned with the
virtuousness of individuals and their motives. A leader’s choices are also influenced by
their moral development. Ethical leadership can provide value to businesses by
inspiring employees to be motivated and live up to the company’s values. Experiences
suggests that ethical leadership leads to greater employee satisfaction and lower
turnover rates. Ethical leaders should demonstrate ethical and appropriate behaviour in
every fact of their life over time, even when their employees.

Examples of ethical leadership

 Set an example
 Publicly champion the importance of ethics
 Make decisions based on values
 Be aware of values
 Establish zero tolerance for ethical violations
 Practice justice and respect
 Hire ethical employees

ETHICAL DILEMMA
An ethical dilemma, ethical paradox , or moral dilemma is a decision-making problem
between two possible moral imperatives, neither of which is unambiguously acceptable
or preferable. The complexity arises out of the situational conflicts in which obeying
would result in transgressing another. Sometimes called ethical paradoxes in moral
philosophy, ethical dilemmas may be invoked to refute an ethical system or moral code,
or to improve it so as to resolve the paradox. We face many ethical and moral problems
in our lives, most of them come with relatively straightforward solutions.

On the other hand, ethical dilemmas are extremely complicated

challengers that cannot be easily solved. Therefore, the ability to find the optimal
solution in such situations in critical to everyone. Every person may encounter an
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ethical dilemma in almost every aspect of their life, including personal, social and
professional.

The following approaches to solve an ethical dilemma were deduced:

 Refute the paradox

The situation must be carefully analysed. In some cases, the existence of
the dilemma can be logically refuted.

 Value theory approach

Choose the alternative that offers the greater good or the lesser evil

 Find alternative solutions

In some cases, the problem can be reconsidered, and new alternative
solutions may arise.

Examples of ethical dilemma

 Taking credit for other’s work

 Offering a client a worse product for your own profit
 Utilizing inside knowledge for our own profit

ETHICS OF BUSINESS STRATEGY

Every strategic decision has a moral consequence. The main aim of business ethics is to
provide people with the means for dealing with the moral complications. Ethical
decisions in a business have implications such as satisfied work force, high sales, low
regulation cost, more customers and high goodwill. Business ethics refers to carrying
business as per self-acknowledged moral standards. It is actually a structure of moral
principles and code of conduct applicable not only to the manner the business relates to
a customer but also to the society at large. It is the worth of right and wrong things from
business point of view.

Business ethics not only talks about the code of conduct at work place but also with
the clients and associates. Companies which present factual information, respect
everyone and thoroughly adhere to the rules and regulations are renowned for high
ethical standards. Business ethics implies conducting business in a manner beneficial to
the societal as well as business interests.

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ETHICAL COMMITTEE

An ethics committee is a body responsible for ensuring that medical experimentation

and human subject research are carried out in an ethical manner in accordance with
national and international law. In certain corporations, standing committee is formed to
consider the ethical dimensions of companies and policies. The committee is appointed
and includes board of directors and is important for two seasons.

➢Ethics can be injected to the highest levels of policy making in the company.
➢ They serve as symbolic functions that communicate to employees and external
stakeholders the company’s formal commitment in marketing ethics as an important
hearing.

Ethics committees, or similar institutional mechanisms, offer assistance in addressing

ethical issues that arise in patient care and facilitate sound decision making that respects
participants' values, concerns, and interests.

ETHICAL AUDIT

An ethical audit measures the cultures and behaviours of an organization, and

determines the extent to which its values are embedded across its people and across its
processes. No business is carried out in isolation, it involves interactions internal as
well as external.

It is a systematic evaluation of ethical programmes of the organization. It examines the

effectiveness of the ethical programmes and other ethical audit helps to improve ethical
commitments to stakeholders the customers, employees’ supplies etc.

BENEFITS OF ETHICAL AUDIT


➢ It improves relationship with all the stakeholders.
➢ Improves organization’s climate and strategy.
➢ It defines employees’ ethical standards.

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➢ It helps in crisis management based on ethical performance.

RISK OF ETHICAL AUDITING

Risks of ethics auditing include discovering a serious ethical problem the firm would
prefer not to make public until it has remedied the situation, criticisms that cannot
easily be addressed, burdens such as costs associated with conducting an audit, and the
challenges involved in assessing risk and identifying.

WHISTLE BLOWING
A whistleblower (also written as whistle-blower or whistle blower) is a person, usually
an employee, who exposes information or activity within a private, public, or
government organization that is deemed illegal, illicit, unsafe, or a waste, fraud, or
abuse of taxpayer funds.

Definition of 'Whistleblower'

A whistleblower is a person, who could be an employee of a company, or a government

agency, disclosing information to the public or some higher authority about any
wrongdoing, which could be in the form of fraud, corruption, etc.

There are two types of whistleblowers: internal and external.

Internal Whistle blowing

Internal whistle blowing is the act of reporting wrongdoing to another party within
one’s company or organization. For example, an employee at one branch of a chain of
coffee shops who reports wage and hour violations at their store to the company’s
corporate headquarters is an internal whistleblower.

Some companies have internal whistle blowing policies and procedures in place, such
as an anonymous hotline for making reports. Employees must comply with these
policies as stipulated by their employment contracts.

External Whistle blowing

An external whistleblower, in contrast, is an individual who reports wrong doing to

sources outside his or her company, such as law enforcement or the media.

With any type of whistle blowing, the party who discloses the alleged wrongdoing must
do so in good faith, meaning he or she must reasonably believe wrongdoing to be

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occurring and take reasonable steps to report it to the correct authority. When a
whistleblower does not act in good faith, he or she is not protected by the
Whistleblower Protection Act and thus not protected from demotion or termination
following the report. To remain covered by the law, the employee must also choose not
to participate in the wrongdoing or aid in the official investigation of his or her claim.

ORGANISATIONAL CULTURE
Meaning

Culture results is the basis for living grounded in shared communication

standards, codes of conduct and expectations .these differences result from societal and
socio-cultural variables of culture, such as religious and languages .in addition to
present addition variables such as economical, legal, political, factors. All these affects
the culture of business organisations in the society, National culture shares the
organisation through institutions in that country.

A dominant culture refers to as the organisation’s culture, reflects the core values that
are shared by the majority of the employees. Sub culture is found in departments,
division and geographical areas.

Culture is concerned with the values, attitudes, beliefs, assumption ,actions and
procedures that people adopt in organisational life. It encompasses the range of thought
and action as they are reinforced in the corporate setting, and so underlines many of the
specific issues of people management .it provides the social framework for the
relationship between managers and employees. It is an influencing factor on the
psychological contract, employee’s willingness to accept change and the ability of the
organisation to be open about and learn from its experience.

Organisation culture in ethics

 Each organisation develops its own culture partially based on the values its
founder wants to transmit in workplace.
 A set as assumptions that the members of an organisation share in common also
forms the organisational culture.
 Organisational culture differs from one organisation to another
 Strong cultural and ethics standards of an organisation results is positive ethical
behaviour of managers
 Ineffective organisational culture may result in unethical behaviour
 Admittedly, strong ethical behaviour may cost the organisation.
 Top executives having strong ethical and strong conscience inspire their
subordinates to exhibit these values by their thoughts and deeds.

How to create ethical organisational culture?

 Selecting the right leader
 A clear purpose and strategy

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  A focus on doing the right thing
 Hiring the right people
 Firing the wrong people
 Run ethical training courses
 `Reward’ people for doing the right thing
 Tolerate mistakes (but not when they are made repeatedly)

Characteristics of organisational culture

 The essence of organisational culture includes the following
 The degree to which the employees are encouraged to be innovative and risk
taking.
 The degree of expected precision and attention to deal
 The degree to which management has people orientation- its decisional effect of
the outcome on employees
 The degree to which management focuses on result orientation rather than the
technique and processes.
 The degree to which activities are organised on team work rather than
individuals.
 The degree to which people are competitive and aggressive rather than people
are easy going.
 Degree to which organisation activities emphasise stability in contrast to
growth.

How organisation culture starts in an organisation

The following are the steps involved in starting formation and maintaining of
organisation culture. They are:

 The founders as leasers formulate a statement of organisational

philosophy and communication to employees. It includes artefacts,
values behind artefacts and cultural assumption in group meetings.
 Creation of core groups from key
 The founders act in concert to create an organisation culture by strictly
following the values
 Managerial modelling behaviour strongly influences the employees.
 Common values are built and made solid by means of involving other
employees while developing organisation’s values relationships to
customers, social responsibility and managerial style are considered.

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ETHICS & GOVERNMENT

Government ethics refers to a particular professional code of conduct for those who
work in and for government. Government ethics, therefore, involves rules and
guidelines about right wrong behaviours for a host of different groups, including elected
leaders (such as the Prime Minister and Cabinet Ministers), elected representatives
(such as Members of Parliament), political staff, and public servants.
These groups are faced with a variety of difficult and very unique ethical questions.
Should a public official be able to hire his/her own company to work for the
government should elected representatives be allowed to accept expensive gifts from
lobby groups? When can a public official divulge personal information about citizens?
How should public servants treat their co-workers and subordinates? Government ethics
identifies what are correct behaviours in each of these situations and establishes rules of
conduct for public officials to follow.

Government ethics constitutes the application of ethical rules to government. It is that

part of practical jurisprudence, or the philosophy of law, that governs the operation of
government and its relationship with the people that it governs.

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