Business Ethics and the

Changing Environment
 Concern for Ethical and Societal Issues

• An organization that wants to prosper over the long term is well advised
to consider business ethics – which refers:

9 To the standards of conduct and moral values

9 The governing actions
9 The decisions in the work environment
• Businesses also must take into account a wide range
of social issues !!!
How a decision will affect the

environment
How a decision will affect the

employees
How a decision will affect the
How a decision will affect the

customers
These issues are at the heart of social responsibility,
whose primary objective is !!!
 

The enhancement of society’s welfare through !!!

Philosophies



Policies



Procedures


Actions
Business ethics are also shaped by the ethical climate
within an organization.
How ???
Codes of conduct and ethical standards play increasingly significant
roles in businesses in which doing the right thing is both supported and
applauded.
Circle Codes of conduct
The Contemporary Ethical Environment

• Business ethics are now in the spotlight as never before.

Companies realize that they have to work harder to earn the trust of
the general public, and many have taken on the challenge as if their
very survival depends on it.
This movement towards ethical behavior is believed to Benefit
ALL — Consumers, the Environment, and the Companies
themselves.
Although, not all companies set and meet high ethical standards, the
ethical climate seems to be improving despite the recent recession.
The current ethical environment of business also includes the
appointment of new corporate officers specifically charged with
deterring wrongdoing and ensuring that ethical standards are met.

• Ethics compliance officers, whose numbers are rapidly rising, are

responsible for conducting employee training programs that help spot
potential fraud and abuse within the firm, investigating harassment
 and discrimination charges, and monitoring any potential conflicts of
interest.

Minimum Requirements for Ethics Compliance

Programs
‰ Establish standards and procedures, such as codes of ethics and
identification of areas of risk, capable of reducing misconduct or
criminal activities.

‰ Assign high-level personnel, such as boards of directors and top

executives, the overall responsibility to actively lead and oversee
ethics compliance programs.
‰ Avoid delegating authority to individuals with a propensity for
misconduct or illegal activities.
‰ Communicate ethical requirements to high-level officials and other
employees through ethics training programs or publications that
explain in practical terms what is required.
Our Monitor and review ethical compliance systems, and establish
a reporting system employees can use to notify the organization of

misconduct without fear of retribution

‰ Consistently enforce ethical codes, including employee discipline.
‰ Take reasonable steps to respond to the offense and to prevent and
detect further violations.
‰ Self-reporting – Report misconduct to the appropriate government
agency.
‰ Follow government regulations and industry standards.
• Islam has its own distinctive value-based ethical system
for business dealings. It prescribes certain specific
guidelines for governing business ethics.

™ It enumerates ALL the general ethical rules of business

conduct.
™ It identifies ethically desirable forms of business.
™ It specifies the undesirable modes of transactions.