• PRESENTED BY: CHRIS OBIAS

INTRODUCTION TO
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The term ‘ethics’ has been derived from the Greek word ‘ethos’ which implies character,
ideas and standards of behavior practiced within a society.
Ethics is a subject of social science that is related with moral principles and social values.
'Business Ethics' can be termed as a 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.
• 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.“

• T.M. Garett defines, “Business Ethics is primarily concerned with the relationship of
business goals and techniques to specific human needs”.

• Hurley defines Ethics as a system of moral principles.

TYPES OF -
# 1. PERSONAL RESPONSIBILITIES:

Personal responsibilities refer to the personal code of ethics of an individual which he

follows firmly in his daily activities. Such ethics are: always behaving honestly, respecting
elders, performing accepted duties properly and timely, promptly settling all dues, not
indulging into criminal activities etc.
# 2. OFFICIAL RESPONSIBILITIES:

These are the responsibilities which comes with the position that a person occupies. Every
official position has certain rules and regulation that are meant to be strictly followed in all
situations. An individual holding such a position should follow all standards and norms set
for that particular official position.
# 3. CORPORATE RESPONSIBILITIES:

Corporation is an artificial person which is treated as a separate legal entity. They have their
own moral responsibilities towards the society that is distinct from personal moral ethics of
managers running them. Such responsibilities are both internal and external which assists in
deciding matters related to employees, shareholders, customers, creditors, society and
government.
# 4. ECONOMIC RESPONSIBILITIES:

These ethics are one which guides actions of an individual which are of economic nature.
Economic responsibilities consist of moral values which directs toward the usage of
resources. Every business should make efficient use of all resources and try to enhance the
profitability without involving in any fraud. They should avoid any kind of wastage and
contribute towards the welfare of society.
# 5. LEGAL RESPONSIBILITY:

Legal responsibilities provides a framework within which a business should operate. It shall
abide by all the rules and regulations imposed by legal authority. All unethical activities
should be avoided as they are treated as illegal in eyes of law.
# 6. PERSONAL LOYALTIES:

It means the loyalties that superiors have towards thier subordinates and loyalty that
subordinates have towards their superiors. If a superior act honestly and treats its
subordinates fairly, then the subordinates will not face any problem. Similarly, the
subordinates having strong personal loyalty for their superior will turn blind eyes towards
the blunders of their superior.
# 7. ORGANIZATIONAL LOYALTIES:

This involves the loyalty of employees towards their organization. Some employees develop
a deep sense of loyalty out of love and affection for the organization. Such loyalties are so
strong that they even do not hesitate from neglecting their personal interest for the sake of
organization. They work efficiently toward the achievement of organizational goals.
# 8. TECHNICAL MORALITY:

Technical morality is related to state of technology implied by enterprise for production of

its goods or services. Every professional person having technical morality shall not
compromise with quality of goods. They should properly adhere to all the ethical standards
provided by competent bodies. Organizations focusing on technological advancement are
able to attain better efficiency and create more challenging situation for competitors.
ETHICAL & UNETHICAL
PRACTICES IN -
ETHICAL BEHAVIORS:
• Obey The Company’s Rules & Regulation
• Communicate Effectively
• Develop Professional Relationships
• Take Responsibility
• Professionalism/Standards
• Be Accountable
• Uphold Trust
• Show Initiative without being told
• Respect Your Colleagues
• Work Smarter
UNETHICAL BEHAVIORS:
• Lies
• Taking Credit for Others Hard Work
• Verbal Harassment/Abuse
• Violence
• Non-Office Related Work
• Extended Breaks
• Theft/Embezzlement
• Sexual Harassment
• Corrupt Practices
EXAMPLES OF ETHICAL BUSINESS PRACTICES:
• To charge fair prices for their products.
• To use correct weights for measuring merchandise.
• To comply with tax laws of the country.
• To make reasonable profits from business/trading and not to remain engaged in
profiteering.
• To supply genuine and safe products to customers.
• To give fair treatment to all employees (i.e., avoid discrimination at work place).
UNETHICAL PRACTICES
IN -
• Have Rules
• Accept Feedback/Complaint
• List Consequences for Unethical Behaviors
• Swift Justice/Disciplinary Action
IMPORTANCE OF -
• Control Business Malpractices
• Better Relation with Employees
• Improves Customer Satisfaction
• Increase Profitability
• Improves Business Goodwill
• Better Decision Making
• Protection of Society
• Long term gains
TECHNIQUES USED FOR
PROMOTION OF-
TECHNIQUE # 1. VISION AND MISSION STATEMENTS:

A mission statement is a written statement of “what the business wants to be and in which
direction it will move.” Ethical principles can be incorporated in the mission statement that
will guide everybody in the enterprise for a long period.
TECHNIQUE # 2. CORE VALUES:

These values specify the limits of ethical conduct and the priorities of a business firm. If
core values are ethical behavior of people in the firm is likely to be moralistic.
For example, during the 1970s, the Articles of Association of the major companies in the
Tata Group stated “the company shall be mindful of its moral and social responsibilities to
the consumers, employees, shareholders, community, and the society.”
TECHNIQUE # 3. BUSINESS POLICIES AND RULES:

The policies and rules are formulated to implement the core values. These policies and rules
should be just and fair so that ethical conduct becomes a routine practice.
TECHNIQUE # 4. CODE OF CONDUCT:

Code of ethics specifies standards that guide employees how to behave with respect to
certain matters and uncertain circumstances. It helps in maintaining ethical behavior in
business.
TECHNIQUE # 5. GRIEVANCE REDRESSAL SYSTEM:

Proper mechanisms are needed for the implementation of policies and rules in the
organization. Grievance redressal system is one such mechanism. Any employee who is not
satisfied with any issue can appeal to the prescribed authority. The authority shall redress the
grievance within the prescribed time period.
TECHNIQUE # 6. WORKSHOP FOR RESOLUTION OF ETHICAL DILEMMA:

All ethical dilemmas cannot be anticipated and provided for in advance. Therefore, periodic
workshops should be conducted to help employees in resolving the ethical dilemmas that
occur from time to time.
DIFFERENT MYTHS
IN -
MYTH 1- BUSINESS AND ETHICS DO NOT MIX WITH EACH OTHER:

This concept is relevant to decades back. Presently, the business tasks and operations are an
integral part of society. The principles, concepts and values of society is invariably
applicable to business also. These social values are based on ethics and as such, the business
and ethics may be mixed each other with their separate entity.
MYTH 2- ETHICS IS PERSONAL AND CONFINED TO SELF:

An individual has a right to decide what is right and what is wrong within the purview of
social standards. All the legal aspects also recognizes and confers rights on our citizens to
make choices and preferences.
MYTH 3- GOOD BUSINESS IS GOOD ETHICS:
Some time we can say that good business is called good ethics. Most of the business firms
acquired different achievements like productivity upgradation, quality standards, customers’
satisfaction, product image and earn more profit.
MYTH 4- ETHICS IN BUSINESS IS RELATIVE:
It is the most popular myth about business ethics that it is relative. The ethical standards may
have a different opinions. What is right in one place may be wrong in another, and only the
ethical standards for judging the criteria at a particular situation is in which it has taken
place. The relativity between business and ethics are not acceptable at different situations.
MYTH 5- ETHICS DENOTES A CONCEPTUAL BIASED ONLY:
Many thinkers and philosophers believed that ethics had been a fad or movement. Long ago
ethics denotes conceptual ideas and beliefs. It was only a complex philosophical debate or
an issue. But now a days the ethics are being practical submissions and relevance’s towards
making goodness in society.
MYTH 6- BUSINESS ETHICS AND SOCIAL RESPONSIBILITIES ARE THE SAME THING:

Within business scenario, the concepts and appliances of social responsibilities are based on
social values and responsiveness. But the formulation of ethical norms, code of conducts and
value based approaches have a broader scenario than the concept of social responsibility.
Moreover, ethical norms provide the directions and stimulate to fulfilment of social
responsibilities. So ethics and social responsibility have separate concepts and they are not
the same thing.
MYTH 7- ETHICS CANNOT BE MANAGED:
In our society, those persons who have oriented by traditional concepts and indifferent
attitudes argued that ethics cannot be implemented and managed. But, those who believed in
spiritual wisdoms and are having strong morale influences may create and develop the
ethical norms. Ethical values channelize the individual energies into pursuits that are benign
to others and beneficial to the society. So, ethics can be managed.
MYTH 8- BUSINESS ETHICS IS MORE A MATTER OF RELIGION AND CULTURE, THAN
MANAGEMENT:

Some of the persons who are more oriented with ideologies of religion and cultural values,
have the concept that ethics are related with religion and culture, not concerned with
management. But with open and well concept, we can say that ethics are needful to every
part of human life. Moreover, in order to make more perfections in management as well as
in business also, there is need to make ethical norms and behavior.
MYTH 9- ETHICS IS A RECENT PHENOMENON AND IT IS JUST EMERGED:

It is fact that the term ethics was emerged long before i.e. almost before 2000 A.D. It was
contributed the ideology and basic norms to create the humanitarian grounds in society.
Though, ethics is not a new concept but it has recently emerged in dynamic forms to achieve
perfections in human life within the purview of business and management.
BARRIERS TO -
#1 CHAIN OF COMMAND:
If employees know their managers are not following ethical behaviour, they hesitate in
reporting the matter to managers up in the hierarchy for fear of being misunderstood and
penalized. The chain of command is, thus, a barrier where subordinates do not report
unethical activities of superiors to top executives.
#2 GROUP MEMBERSHIP:
Informal groups in the formal organization structure develops a group code of ethics. The
group members are so strongly bonded by their loyalty and respect for each other that
unethical behavior of any member of the group is ignored by others.
#3 AMBIGUOUS PRIORITIES:
When company’s policies are unclear and ambiguous, employees’ behavior cannot be
directed in a unified direction. It is difficult to understand what is ethical and what is
unethical in such situations.
SOLUTION TO
BARRIERS IN -
• Organizational objectives and policies should be clearly laid down so that every member
of the organization ethically works towards effective attainment of the goals.
• The behavior of top managers is a precedent followed by others in the organization.
Ethical actions of top managers will promote ethical behavior throughout the organization.
• Penalties and threats for non-conformance to ethical behavior help in reducing unethical
activities in the organization. Formal procedures of lodging complaints will promote
subordinates to report unethical behavior of superiors to the concerned committees.
• Educational institutions can offer courses and training in business ethics to create
conscientious business managers.
CONCLUSION:
• Without business ethics and ethical standards no matter how small or big business, it can't
withstand generosity of time, market situation, and its customers. Proper knowledge of
business ethics is important that what is business ethics, why business ethic is
implemented, why it is important.
• Ethics are supporting pillars on whose foundation the integrity, stability, and prosperity of
business stand tall and upright with dignity. Business Ethics are set of all laws which help
to run the business in the right manner.
• Higher these standards stronger the ethics and the support will be so rigid.
 REFERENCES
• Crane, Andrew & Dirk Matten. (2010). Business ethics: managing citizenship and sustainability in the age of
globalization. Oxford: Oxford.
• Ethical & Unethical behaviors (n.d). Retrieved from https://www.formpl.us/blog/workplace- ethics
• Fischer, C. M., Lovell, A. 2009. Business ethics and values: individual, corporate and international perspectives.
Harlow: Pearson Education Limited.
• Garret, T.M. 1970. Business ethics. Times of India Press, 4.
• Raymond C. Baumhart, S. J.: 1968, Ethics in Business, New York: Holt, Rinehart and Winston.
• Techniques & Myths in Business Ethics (n.d) . Retrieved from
https://www.businessmanagementideas.com/business/ethics-business/business-ethics/20246