10TH EDITION

z INTERMEDIATE
FOR INDIVIDUALS FINANCIAL
AND MANAGEMENT
BUSINESSES
:BRIGHAM DAVES
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INTRODUCTION

 Moral Standards- standards that an individual

has about what is right and what is wrong.
 Values- long lasting beliefs that guides
society’s decisions and actions towards variety
of situation.
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ETHICS’ DEFINITIONS;

 moral principles that govern a person's

behavior or the conducting of an activity,
 the branch of knowledge that deals with moral
principles.
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ETHICS

MORAL
VALUES STANDARDS
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BUSINESS ETHICS
 Are company’s attitude and conduct toward its

employees,
customers,
community,
and stockholders.
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BUSINESS ETHICS
 A firm’s commitment to Business Ethics can be
measured by the tendency of its employees, from the
top down, to adhere to laws, regulations, and moral
standards relating to product safety and quality, fair
employment practices, fair marketing and selling
practices, the use of confidential information for
personal gain, community involvement, and illegal
payments to obtain business.
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ETHICAL
RESPONSIBILITIES
 Ethical responsibility means recognizing
when the company's actions might be
having an adverse effect to people or the
environment, and taking steps to reduce
the harm.
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ETHICAL RESPONSIBILITIES TO
EMPLOYEES
Employees are, first and foremost, the people
directly responsible for a company's success.
 LABOR

 ENVIRONMENT

 RIGHTS
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RESPONSIBILITY TO ENVIRONMENT
Pollution, resource depletion and land use
are the inevitable consequences of virtually
any business activity. There is also usually
an impact on wildlife. This isn't inherently
bad, but the potential for adverse effects is
enormous.
RESPONSIBILITY
z TO SOCIETY
Economic activity is a boon to society. It creates wealth
and leads to the advance of technology, which allows
people to attain a better material quality of life and
escape the hardships of poverty. Social responsibility,
requires a company to take an interest in the long-term
success and prosperity of the community where it does
business and in the welfare of the national economy on
which it ultimately depends. This means obeying the
law and respecting society.
RESPONSIBILITY
z TO SHAREHOLDERS & COMPANY
A company has an ethical responsibility to earn a profit for
itself and for the shareholders who invested in it. The
company needs profit to continue to exist as a viable business
entity, and the investors deserve a profit because they took a
risk with their money by investing in the company.
In the long term, all the other forms of ethical responsibility in
business build up to this one, because satisfied employees, a
prosperous society and a healthy world are a boon to the
fundamentals of business.
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ETHICAL DILEMMAS

 When conflicts arise between profits

and ethics, sometimes legal and
ethical considerations make the choice
obvious. At other times the right choice
isn’t clear.
BUSINESS ETHICS
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AMIDST TO
PANDEMIC

COVID -19
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“No person or company that is perfect,

everyone makes mistake but through
ETHICS/BUSINESS ETHICS, we are
guided with the things we do, with our
decisions and in that way we may improve,
learn from mistakes and the business shall
exist further.”

:Mr.Gray
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The end.