INTRODUCTION TO

BUSINESS ETHICS
Ms Samithri Akushla Wanniachy
LLB(Hons), LLM (London)
Attorney-at-law
Notary Public &Commissioner for oaths
 Definition for Business ethics
business ethics and the law

Topics to be Defining
morality, ethics
Why is business
ethics
covered…… and ethical
theory
important?

Business ethics
in different
organizational
contexts
 Ethics, also called moral
philosophy,
the discipline concerned with what
is morally good and bad and
morally right and wrong.
What is ethics? The term is also applied to any
system or theory of moral values or
principles.
Understanding
Ethics
 According to this understanding, “ethics” leans
towards decisions based upon individual character,
and the more subjective understanding of right and
wrong by individuals – whereas “morals” emphasizes
the widely-shared communal or societal norms about
What are right and wrong.

morals?
Where does a person taught correct morals?
1.
2.
Are ethics and morals the same?
The terms ethics and morality are closely related. 
 In contemporary theories ethics and morals are not accounted as same.
Its subject consists of the fundamental issues of practical decision making, and
its major concerns include the nature of ultimate value and the standards by
which human actions can be judged right or wrong.
What is Law?
Law is a set of rules created by state institutions
which make laws through the authority of the
state. 
Laws are enforced through social or
governmental institutions to regulate behaviour
of the particular State they were created for. 
What are ethical
theories?
Ethical theories are formal statements about
what we ought to do, when faced with
an ethical dilemma.

So, what is the solution if we are faced with an

ethical issue? An ethical dilemma?
Eg : -
The relationship between morality, ethics and ethical theory

Potential
Ethical solutions for
Morality Ethics
theory ethical
problems
What are business
ethics?
Business Ethics is the study of business situations, activities, and decisions
where issues of right and wrong are addressed.

Example: Commercially, strategically or financially right or wrong.

 The power and influence of business in
society is higher than ever before.
Business has the potential to provide a
major contribution to the society.
Importance of The demands being placed on business
to be ethical by its various stakeholders
Business are constantly becoming more complex
Ethics? and more challenging.
It helps to improve ethical decision
making.
It can provide the ability to assess the
benefits and problems associated with
different ways of managing ethics in
organizations.
Business ethics and the law
The law is a definition of the minimum acceptable standards of behavior.

The law is essentially an institutionalization of ethics into specific social rules,

and regulations.

Business ethics can be said to begin where the law ends.

Business ethics covers issues that are not covered by the law.
Overlap of Law and Ethics

Ethics Law
Business Ethics in Large
and Small Companies

 Different attention and approach to

business ethics in small organizations.
(resource availability, customer focus and
trust-based approach)
 Much more formalized approach for
business ethics in large organizations.
(resource availability, profit maximization)
 Business Ethics in Different
Organizational Contexts
What are different organizational structures?
1. Large Corporations
2. Small Corporations
3. Non-governmental organizations
4. Public Sector Organizations

How do ethics affect these different organizational structures?

 Large Small NGOs Public sector
corporations corporations organizations

Main priority in
addressing
ethical issues

Approach to
managing ethics

Responsible
and/or
accountable to

Main constraints
Thank You!