Business Ethics

True Ethics is Dharma, the right fulfillment

and working of the higher nature, and right
action should have motive, should be its
own justification and not go on the
crutches of greed and fear.
- Sri Aurobindo
EVOLUTION OF ETHICS
Been part of theological discussion since 1960’s.
Before 1970’s, Some writers dealt with business and
ethics. ( Prominent name: Raymond Baumhart)
Professors in B-schools wrote about CSR, the
handmaid of ethics.
Normal Bowie gave origin of business ethics on
November,1974.
Contd..
In 1982, Richard de George brought out book on
business ethics along with many other authors.
Many journals were being published.
By the year 1990, Business ethics as a management
discipline was well-established.
 Classification of Ethics
ETHICS
Systematic study of
moral conduct

Applied Ethics Meta-Ethics

Normative Ethics Study of special issues- Cognitive study of the
Study of moral standards to Business Ethics ultimate principles of ethics,
determine right & wrong
their origin and meaning
Scope-specific human
Scope-general moral science Conceptual Scope-
science
Philosophy
Business Ethics
Business ethics concerns itself adhering to the social
principles of the situations in which business takes
place.
Business for profit
Business with ethics
Character of business
Professional ethics: 3 C’s
Nature of Ethics
Value-free Ethics: Main Value business is concerned
with is Monetary Value. Business should be kept free
from societal and social relationships. The only
successful relationship exists is of vendor and a
consumer.
Human Relations
Ethics as a Principle
Business Ethics as Professional Code
LAW VERSUS ETHICS
1. Ethics are rules of conduct.  Laws are rules developed by
governments in order to provide balance in society and
protection to its citizens.
2. Ethics comes from people’s awareness of what is right and
wrong.  Laws are enforced by governments to its people.
3. Ethics are moral codes which every person must conform to.
 Laws are codifications of ethics meant to regulate society.
4. Ethics does not carry any punishment to anyone who violates
it.  The law will punish anyone who happens to violate it.
5. Ethics comes from within a person’s moral values.  Laws
are made with ethics as a guiding principle.