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BUSINESS ETHICS & ETHICAL DILEMMA
WHAT IS ETHICS
Ethics may be referred to some standardized form of conduct or behavior of individuals understood and accepted in a particular field of activity The work “ETHICS” has its origin in Greek word “Ethics” means character, norms, morals and ideals prevailing in a group and society. Ethics is a mass of moral principles or set of values about what conduct ought to be. They give an idea what is right or wrong, true of false, fair or unfair, just or unjust, proper or improper, e.g. Honesty, obedience, equality, fairness, etc and respect and then doing the right thing
WHEN AND WHERE DO WE DEVELOP ETHICAL VALUES?
According to those who study the history and philosophy of ethics, infants would not survive without a nurturer who teaches them about right and wrong behavior. In human society, a series of nurturer and teachers influence the ethical views of each individual.
principles and standards that guide behavior in the world of business right or wrong, acceptable or unacceptable behavior within the organization determined by key stakeholders
Carter McNamara has defined: “Business ethics is generally coming to know what is right and wrong in the workplace and doing what is rightthis is in regard to efforts of products/ services and in relationships with stakeholders.” the workplace sensitizes managers and staff to how they should act so that they retain a strong moral compass. “Attention to ethics in
in business ethics has been increasing since 1960’s Interest has been spurred by headlines of business scandals A 1982 study reported that of the Fortune 500 companies,115 companies (23%) had been convicted of at least one major crime or paid penalties of serious misbehavior Is the importance of business ethics declining in business and government practices? Greater focus on ethics, morals and values.
Why study business ethics & social issues?
an Ethics Officer Assoc. Survey, 48% of employees indicated that they had done something unethical or illegal in the past year cost of unethical or illegal acts by U.S. employees: $400 billion
Behavior about which law has no say and for which an individual or organization enjoys complete freedom Example: An individual's choice of a marriage partner or religion.
Factors Affecting Ethical Choices
Level or stage of moral development Learned Ethics
Pre conventional Level = concerned with external rewards and punishments Conventional Level = conform to the expectations of peers and Principled) Level = individuals develop a personal society Post conventional (, internal set of standards and values. (About 20% of adults)
Levels of Moral Development
& Honesty in advertising communications with superiors, clients, and government. Problems relating to special gifts, entertainment, and kickbacks. Better work environment
rules and policies Reward system
situation that arises when all alternative choices or behaviors have been deemed undesirable. Dilemma –confusion and terrible situation, involve a range of action &their corresponding consequences. Potentially negative ethical consequences, making it difficult to distinguish right from wrong.
FACTORS THAT AFFECT ETHICAL BEHAVIOUR
STAGES OF MORAL DEVELOPMENT
ETHICAL / UNETHICAL BEHAVIOUR
STRUCTURAL CHARECTERISTICS OF ORGANIZATION
Criteria for Ethical Decision Making
ethical dilemmas involve A conflict between needs of the part & whole. The individual versus the organization. The organization versus society as a whole.
What causes unethical behavior
Stress Confusion Pressure
to perform at expected levels within the industry
Factors Influencing Organizational Ethical Behavior...
Issue Intensity + Factors +
Individual Corporate =
Culture (including significant others and opportunity) Ethical or Unethical Behavior
Some of the Unethical Business practices are :
Cutting corners on quality Covering up incidents Abusing or lying Lying customers Stealing from the company Taking credits from co-workers ideas/work Taking or giving bribe
UNETHICAL BUSINESS PRACTICES (contd…..)
Government corruption Financial scandals Product safety discrimination Sexual harassment Firing an employee for whistle blowing Divulging confidential information
COMMON UNETHICAL ACTS
to supervisors Falsifying records Alcohol and drug abuse Conflict of interest Stealing Gift/entertainment receipt in violation of company policy
Who is going to resolve dilemma?
MANAGERS Nash gives a list of questions to help managers to take ethical decisions. EMPLOYEE Should be trained to deal with ethical dilemmas
Questions asked by managers?
u find the problem accurately? How would u define the problem if u stood on the other side of the fence? How did the situation occur in the 1st place? To whom and to what do u give loyalty as a person What is ur intention in making this decision? How does this intention compare with the probable results? Whom would ur decision or action injure?
Training employees to resolve ethical dilemmas
step by step process known as believe.
Background –history of the problem Estimate –initial estimation List- possible solutions to the problem Impact – whom will the solutions affect? Eliminate- eliminate to totally acceptable solution Values –organizational values Evaluate –what is better or worse solution?
“What’s in it for me to be ethical?”
A more accurate perception of the world around you, follow your conscience. things even when it is hard or costly.
-Have the courage to do what is right and do try new
-Don’t loose heart if you fail or don’t get what you want
-A stronger personality, and greater likelihood of being
happy in life
Global Ethical Issues
Wages and hours Child labor Discrimination Legal and ethical business practices Product safety and quality Environment
IS IS IS IS
IT ETHICAL ? IT LEGAL ? IT OK ? IT RIGHT ?
Is it fair ? Does it hurt anyone ? Have I been honest with those affected? Can my conscience live with this decision ?
In the last few years we have seen a drastic change in society as well as in all facets of the business world. The consumer, today, is more aware of his rights and his requirements. He demands the best quality at the regular prices. Companies today need to incorporate a strong or responsible culture to face the instance reaction of the consumer. Today’s market calls for stringent business ethics to be imposed in the corporate world.