BUSINESS ETHICS

AND ETHICAL
DECISION
MAKING
BUSINESS ETHICS

Principles and standards

that guide the behaviour
of individuals and groups
in the world of business

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 ETHICAL ISSUES IN BUSINESS

An Ethical issue is a problem, situation, or

opportunity requiring an individual, group,
or organization to choose among several
actions that
must be evaluated as right or wrong,
ethical or unethical.

Honesty and fairness

Conflict of interest
Fraud
Discrimination
Information technology
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THE ETHICAL DECISION
MAKING PROCESS
 Factors that influence the
ethical decision-making process
include
 Individual factors
 Organizational relationships
 Opportunity
 The strongest factor influencing
employee behaviour is
organizational relationships.

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ETHICAL BEHAVIOUR
Ethical behaviour is
characterized by honesty,
fairness and equity in
interpersonal, professional
and academic relationships
and in research and
scholarly activities. Ethical
behaviour respects the
dignity, diversity and rights
of individuals and groups of
people.

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"Dignity" - true worth, excellence; high rank or estimation
"Diversity" - being unlike in nature or qualities; different kind;
variety
"Equity" - fairness; recourse to principles of justice to correct
or supplement law; system of justice supplementing or
prevailing over common and statute law
"Fairness" - fair = just, unbiased, equitable, legitimate, in
accordance with rules
"Honesty" - truthfulness; honest = fair and righteous in speech
and act, not lying, cheating or stealing; sincere; showing
righteousness;
"Respect" - as noun: respect of persons = partiality or favour
shown esp. to the powerful; heed or regard to; as verb: pay heed
to; regard with deference, esteem, or honour; avoid degrading
or insulting or injuring or interfering with or interrupting, treat
with consideration, spare, refrain from offending or corrupting
or tempting
"Right(s)" - justification, fair claim, being entitled to privilege
or immunity, thing one is entitled to; authority to act in
specified way
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 LOYALTY IN ETHICS
Loyalty is exhibited in two sense namely ‘agency
Loyalty’ and ‘Identification Loyalty’.
 Agency Loyalty
• Is an obligation to fulfil his/her contractual duties
to the employer
• These duties are specified in terms of the
particular tasks for which one is paid in general
cooperating with others in organisation
• For engineers , the paramount obligation is still
the safety health and welfare of the public
 Identification Loyalty
• Is concerned with attitudes , emotions and a sense
of personal identity.
• Is a more virtue than an obligation
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