Business

Ethics &
Research

Presenter: Helen G. Octaviano

Sally Pascua
Source:
Introduction

– This presentation aims to discuss the What’s, the Why’s and the How’s of
Business Ethics and Business Research thru consolidated information gathered
via different source.
Summary of Topics

– Part 1 – Business Ethics

What is Business Ethics
What are the factors influencing Business Ethics
Why do we need Business Ethics
How Business Ethics affect the industry

– Part 2 – Business Research

What is Business Research
Why do we need Business Research
How Business Research affect the industry
Part 1 – Business Ethics

Presenter: Helen G. Octaviano

What is ‘Business Ethics’

– Business ethics is the study of proper business policies and practices regarding potentially
controversial issues, such as corporate governance, insider trading, bribery,
discrimination, corporate social responsibility and fiduciary responsibilities. Law often guides
business ethics, while other times business ethics provide a basic framework that businesses
may choose to follow to gain public acceptance.

Source: Investopidia

– Business ethics is both part of the prescriptive (normative) ethics establishing standards of
conduct, recommending certain behaviours, as well as descriptive ethics, describing the moral
attitudes and behaviours of entrepreneurs. In principle, the practical goal of business ethics is
to solve ethics problems in business.
Source: CEOpedia
What is ‘Business Ethics’

– BREAKING DOWN ‘Business Ethics’

Business ethics ensure that a certain required level of trust exists between
consumers and various forms of market participants with businesses.

Such practices ensure that the public receives fair treatment.

 What are the factors influencing
‘Business Ethics’
6 Important 1. Personal Code of Ethics:

Factors A man’s personal code of ethics that is what one considers moral is the
foremost responsible factor influencing his behavior.
Influencing
2. Legislation:
Business It is already stated that the Government will intervene and enact laws
Ethics only when the businessmen become too unethical and selfish and totally
ignore their responsibility to the society. No society can tolerate such
misbehavior continuously. It will certainly exert pressure on the
Government and the Government consequently has no other alternative
to prohibit such unhealthy behavior of the businessmen.
 What are the factors influencing
‘Business Ethics’
6 Important 3. Government Rules and Regulations:
Laws support Government regulations regarding the working conditions,
Factors product safety, statutory warning etc. These provide some guidelines to the business
Influencing managers in determining what are acceptable or recognized standards and practices.

Business 4. Ethical Code of the Company:

Ethics When a company grows larger, its standard of ethical conduct tends to rise.
Any unethical behavior or conduct on the part of the company shall endanger its
established reputation, public image and goodwill. Hence, most companies are very
cautious in this respect. They issue specific guidelines to their subordinates regarding
the dealings of the company.
 What are the factors influencing
‘Business Ethics’
6 Important 5. Social Pressures:
Social forces and pressures have considerable influence on ethics in business. If a
Factors company supplies sub-standard products and get involved in unethical conducts, the consumers
will become indifferent towards the company. Such refusals shall exert a pressure on the company
Influencing to act honestly and adhere strictly to the business ethics. Sometimes, the society itself may turn
against a company.
Business
6. Ethical Climate of the Industry:
Ethics Modern industry today is working in a more and more competitive atmosphere. Hence
only those firms, which strictly adhere to the ethical code, can retain its position unaffected in its
line of business. When other firms, in the same industry are strictly adhering to the ethical
standards, the firm in question should also perform up to the level of others. If the company’s
performance is below than other companies, in the same industry, it cannot survive in the field in
the long run.
 Why do we need ‘Business
Ethics’
6 Important 1. Survival of the Business Unit:

Need For Unethical practices of businessmen will lead to the closure of business
Business unit. The closure of a business unit does not only create problems to business but
also to employees and the society in general. Businessmen do not maximize the
Ethics profit at the cost of existence of a business unit.
The behavior of a businessman is affected by some of the factors such as
leadership qualities, integrity, knowledge, skills, influence and exercising power.
Businessmen should protect their units in all respects.
 Why do we need ‘Business
Ethics’
6 Important 2. Growth of Business Unit:

Need For Business ethics ensure the growth of a business. Whenever a

Business businessman observes ethics strictly, definitely the particular business unit will get
developed. A business could not be run in such a manner, which is detrimental to
Ethics the interest of society or business itself. So there should be some business
ethics for the growth of a business.
3. Earning Goodwill:
If business ethics are properly followed by a business,
automatically that particular business unit earns a good name
among the public.
 Why do we need ‘Business
Ethics’
6 Important 4. Improving the Confidence:

Need For Business ethics are necessary to improve the confidence of the customers,
employees and the like. If confidence is infused, customers and employees will
Business popularize the name of the particular business unit.
Ethics 5. Maintaining Inter-relationship:
No business functions independently. Each business has close relationship
with another business even though the nature and size of the other business
differs. It is expected that each business unit should have a smooth relationship
with others. The inter-relationship of business is maintained by adopting business
ethics.
 Why do we need ‘Business
Ethics’
6 Important 6. Solving Social Problems:
Need For If a businessman observes ethics in his business, the public will not have
Business any difficulty in getting their wants fulfilled. There is no bargaining between the
businessman and public. There is a fair treatment of an employee by him. This will
Ethics avoid social problems like strike, lockout etc.
How ‘Business Ethics’ affect the
industry
– Solving Social Problems:
If a businessman observes ethics in his business, the public will not have
any difficulty in getting their wants fulfilled. There is no bargaining between the
businessman and public. There is a fair treatment of an employee by him. This will
avoid social problems like strike, lockout etc.
How Business Ethics affect the industry