Ethics

A code of moral standards of conduct for what is “good” and “right” as opposed to what is “bad” or “wrong”.

• Ethical Behaviour – That which is “right” or “good” in the context of governing moral code.

• Ethical behaviour is values driven.

• What is considered ethical varies among moral reasoning approaches.

• What is considered ethical can vary across cultures.

• Ethical dilemmas arise as tests of personal ethics and values.

• People have tendencies to rationalize unethical behaviors.

 Business ethics involves applying general ethical
principles and standards to business activities,
behaviour and decisions

Ethical principles in business are not different from

ethical principles in general
What Is
Business Business actions are judged
Ethics?
By general ethical standards of society

Not by more permissive standards

 An ethical dilemma is a situation in which all alternative choices or
behaviors have potentially negative consequences. Right or wrong can’t
be distinguished.

The following approaches can be used to make proper decisions in

ethical dilemmas

What is an • Utilitarian Approach- Take the decision which produces the greatest
ethical good for the greatest number

dilemma? • Individualism Approach-Actions are ethical when they promote the

individual’s best interest

• Moral Rights Approach- Ethical decisions are those that best maintain
the fundamental rights of the people affected by them

• Justice Approach-Ethical decisions must be based on standards of

equity, fairness and impartiality.
 • Utilitarian Approach

Applications of This deceives the customers and other stakeholders of the actual level of emissions and does bad to
majority of the stakeholders such as customers, authorities, shareholders, environment and everyone
who breathes in air. So this is Unethical

theories of • Individualism Approach

ethics
The person-in-charge continued to play along in order to impress management to climb the corporate
Volkswagen ladder. He tried to fulfil his individual interest by wronging million others.

fixing a defective • Moral Rights Approach

device on the Customers have a right to be fully aware of the standards and quality of what they buy. So this decision

diesel VW and is unethical

Audi vehicles •Justice Approach

As per this approach also, Volkswagen adopted Unfair Trade Practices and kept the customers in the
dark. Even in Europe, where they escaped without paying fine, they were wrong in stating the fake
results.