Dr.

Poonam Kaushal
Asst. Professor
IBS, IUD
 ETHICS
 Ethics is called “Ethicus” in Latin language and
“Ethicos” in Greek.

 This word has originated from “ethos” meaning

character or manners

 Ethics is thus said to be the source of morals; recognised

rules of conduct.
 Moral principles that govern a person's behaviour or the
conducting of an activity

 The branch of knowledge that deals with moral principles.

 Fundamental principles of decent human conduct. It

includes study of universal values such as the essential
equality of all men and women, human or natural rights,
obedience to the law of land, concern for health and safety
and, increasingly, also for the natural environment.
BUSINESS ETHICS

Business ethics (also corporate ethics) is a form of applied

ethics or professional ethics that examines ethical
principles and moral or ethical problems that arise in a
business environment.

It applies to all aspects of business conduct and is relevant

to the conduct of individuals and entire organizations
 According to Crane, "Business ethics is the study of
business situations, activities, and decisions where issues
of right and wrong are addressed.”

 Baumhart defines, "The ethics of business is the ethics

of responsibility. The business man must promise that he
will not harm knowingly."
 NATURE OF ETHICS

 Ethics is a subject that deals with human beings. Humans by their nature
are capable of judging between right and wrong, good and bad behaviour.

 There was an argument whether ethics is a science or an art. But experts

were of the opinion that ethics is more of science than an art. Because it
is a systematic knowledge about moral behaviour and conduct of human
beings.

 Ethics is a normative science. The term normative implies a guide or

control of action. So, normative ethics tells us what we ought to do.

 Ethics deals with human conduct that is voluntary and not formed by any
persons or circumstances.
 OBJECTIVES OF ETHICS

The primary objective is to define the highest good of man and set a
standard for the same.
Here, ethics deal with several interrelated and complex problems which
may be of psychological, legal, commercial, philosophical, sociological
and political in nature.

Ethics should be guided by virtues like:

 Truthfulness

 Accuracy

 Objectivity

 Impartiality

 Fairness

 Public accountability
 OBJECTIVES OF ETHICS CONTD..

 Ethics are a study of human behaviour. Makes evaluative assessment

about that as moral or immoral.
 Ethics establish moral standards/norms of behaviour.
 Ethics make judgment upon human behaviour based on these standards
and norms.
 Ethics prescribe moral behaviour, makes recommendations about how to
or how not to behave.
 Ethics expresses an opinion or attitude about human conduct in general.
 The very basic objective is to define the greatest good of man and
establish a standard for the same.
 Suggests moral behaviour and prescribes recommendations about dos
and don’ts.
UNDERSTANDING ETHICS

Presented By:
Dr. Poonam Kaushal
Assistant Professor
IBS, IUD
IMPORTANCE OF BUSINESS ETHICS
1 Stop business malpractices
●

2 Improve consumer confidence

●

3 Survival of business
●

4 Protecting consumers confidence

●

5 ●
Protecting employees, shareholders etc.

6 ●
Develops good relations b/w business and society
7 ●
Healthy competition

8 ●
Smooth business functioning

9 ●
Satisfaction
ETHICAL THEORIES
 Meta-ethics: about theoretical meaning and reference
of moral propositions and how their truth values (if any)
may be determined.

 Normative Ethics: about the practical means of

determining a moral course of action
 THREE DIFFERENT NORMATIVE THEORIES

 Teleological theory: also called consequentialist theory: An action

is considered morally correct if consequences of that action are more
favourable than unfavourable.
 Egoism
 Utilitarianism
 Altruism

o Deontological theory: Focus on certain fundamental duties that

have as human being such as not committing murder or theft
 Duties to God
 Duties to self
 Duties to others
THREE DIFFERENT NORMATIVE
THEORIES
 Virtue Theory: This theory emphasis character development rather
than the articulation of abstract moral principles that guide actions.
 Applied Ethics: about how moral outcomes can be achieved
in specific situations.

 Descriptive Ethics: also known as comparative ethics, is the

study of people’s beliefs about morality
 Descriptive ethics: What do people think is right?
 Meta-ethics: What does "right" even mean?

 Normative (prescriptive) ethics: How should people act?

 Applied ethics: How do we take moral knowledge and

put it into practice?