BUSINESS ETHICS

Disusun oleh: Lesna Sari, S.Pd, M.Pd

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 What is Business Ethics?

• Ethics is the discipline that deals with what is good and bad and with
moral duty and obligation. Ethics can also be regarded as a set of
moral principles or values. Morality is a doctrine or system of moral
conduct. Moral conduct refers to that which relates to principles of
right and wrong in behavior

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• Business ethics, therefore, is concerned with good and bad or right
and wrong behavior and practices that take place within a business
context. Concepts of right and wrong are increasingly being
interpreted today to include the more difficult and subtle questions of
fairness, justice and equity.

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The Role of Ethics in Business
• Ethics courses and training can do the following:
• Provide people with rationales, ideas and vocabulary to help them
participate effectively in ethical decision-making processes
• Help people “make sense” of their environments by abstracting and
selecting ethical priorities

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• Providing intellectual weapons to do battle with advocates of
economic fundamentalism and those who violate ethical standards
• Enable employees to act as alarm systems for company practices that
will not meet society’s ethical standards
• Enhance conscientiousness and sensitivity to moral issues and
commitment to finding moral solutions

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• Enhance moral effectiveness and strengthen moral courage
• Increase people’s ability to become morally autonomous ethical
dissenters and the conscience of a group
• Improve the moral climate of firms by providing ethical concepts and
tools for creating ethical codes and social audits.

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CODE OF ETHICS
 

• These are statements of behavioral ideals, exhortations, or

prohibitions common to a culture, religion, traditional profession,
corporations and trade associations. Codes combine philosophical
with admonitions to avoid certain illegal actions and espouse certain
moral principles, especially those that elevate personal behavior

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• The Ten Commandments is the most well known code of ethics
known worldwide. In addition, we have all heard of Code of ethics in
the form of Hippocratic Oath that all the
• Doctors are supposed to take prior to being awarded permission to
practice medicine.

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Types of Codes of Ethics
Principle-Based – Designed to enable the employee to make ethical
decisions based on appropriate values e.g., “treat people fairly” or
“don’t be dishonest”
• Policy-Based – Guideline as to how to act in specific ethical dilemma
situations (reducing the need for thinking)

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• (a) Conflicts of interest
• (b) Disseminating proprietary information
• (c) Receiving and giving political gifts
• (d) Equal opportunities

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Organizational Structures to Promote Ethics

• (a) Ethical Ombudsman – Corporate conscience keeper is appointed

who can be reported to for any ethical wrong doing by any employee
in the company.
• (b) Ethics Committee – Group appointed to monitor company ethics.
• (c) Ethics Training Programs
• (d) Hot lines- Employees can report questionable behavior, possible
fraud, waste, or abuse (i.e., Blow the Whistle”) on those numbers

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Linking Strategy with Ethics

• Ethical responsibilities of firm to Stakeholders –

• Owners/Shareholders - Expect good return on their investment
• Employees - Expect respect for their worth & devoting their energies
to firm
• Customers - Expect reliable, safe product or service at fair prices
• Suppliers - Expect equitable relationship with firm
• Community - Expect businesses to be good citizens in their
community

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