1.

1 Ethics
1.2 Moral and Ethics
1.3 Unethical Behaviour
 Introduction

 Ethics is not a recent discovery. Over the centuries philosophers in their

struggle with human behavior have developed different approaches to ethics, each
leading to different conclusion.

 Ethics is thus said to be the science of conduct. As a matter of fact it deals with certain
standard of human conduct and morals.

 The meanings of morals and ethics do overlap. Broadly speaking, morals are
individual principles of right and wrong, and a system of ethics deals with sets of that
principles.

 Unethical behavior is any action that is aimed at taking advantage of another without
their knowledge or consent.
 1.1 Ethics

A) Meaning:
Ethics refers to well based standards of right and wrong hat prescribe what humans ought to do,
usually in terms of rights, obligations, benefits to society, fairness, or specific Virtues. Ethics is
related to issues of propriety, rightness and wrongness. Ethics examines the rational justification
for our moral judgments; it studies what is morally right or wrong, just or unjust.

B) Definitions:
1) Philip Wheel Wright :
"Ethics is the branch of philosophy which is the systematic study of selective choice, of the
standards of right and wrong and by which it may ultimately be directed.’’
2) Mackenzie :
"The study of what is right or good in human conduct" or the "science of the ideal involved in
human life". So, it is clear that ethics is the study which determines rightness or wrongness
of actions.
3) Swami Vivekananda :
"Supreme oneness is the rationale of all ethics and morality. Ethics cannot be derived from
the mere sanction to any personage. Some eternal principle of truth has the sanction of
ethics. Where is the eternal sanction to be found except in the only infinite reality that exists
n you and us and in all, in the self, in the soul?"
 1.1 Ethics

C) Nature of Ethics:
1) Systematic Knowledge :
Ethics aims at systematic knowledge. So, ethics is a
science. Every science is concerned with a particular
sphere of nature.

2) Normative Science :
Ethics is a normative science. It differs from positive
science. A positive science, natural science or
descriptive science is concerned with what is. It deals
with facts and explains them by their causes.

3) Unrealistic in Nature:
Ethics is not a practical science. Practical science deals with means for the realization of an end
or ideal. It teaches us to know how to do. As for instance, medical science is a practical science.

4) Intrinsic in Nature :
Ethics is not an art. Ethics does not teach us an art as to how to lead a moral life.
Rather it helps us to justify rightness or goodness which can lead to the supreme
goal of human life that is to realize the core of human life.
 1.1 Ethics

D) Importance of Ethics
1) Asset Protection:
A strong ethical culture within business is important in
safeguarding assets.

2) Productivity and Teamwork :

Workplace ethics is integral in fostering increased productivity
and teamwork among employees. It helps in aligning the
values of business with those of workers.

3) Public Image :
Person can earn a lot of respect and cultivate a strong image
in the public domain when you make ethical choices. For
instance, Person can fulfill corporate social responsibility by
reducing waste discharge from business.

4) Decision-Making :
Ethical conduct in the workplace encourages a culture of making decisions based
on ethics. It also enhances accountability and transparency when undertaking
any business decisions. During turbulent times, a strong ethical culture guides
you in managing such conflicts by making the right moves.
 1.1 Ethics
E) Basic terms of Ethics
1) Ethics and Morality :
A morality is a set of rules to guide the actions of an individual human
being. Rand says about it - "a code of value to guide man's choice and
actions", so ethics and morality would seem to be synonymous but
exactly it is not so.

2) Ethics & Religion :

Though ethics is not synonymous to religion morality is a primary force in
shaping our ethics. Thomas M. Garrett writes- "The religion derive their
moral percepts not only from human experience but from divine revelation.
It must rely on the unaided human reason.

3) Ethics and Law :

Law is a code of conduct, which the authority in power prescribes for
society. It is concerned with the minimum regulation necessary for public
order that is enacted by government.

4) Ethics & Values :

Moral values are deep-seated ideas and feelings that manifest themselves as
behavior or conduct. These values are not so easy to measure or express in
words.
 1.1 Ethics
F) Types of Ethics
1) Virtue-Ethics :
Virtue-based ethical theories place much less emphasis on
which rules people should follow and instead focus on helping
people develop good character traits, such as kindness and
generosity. These character traits will, in turn, allow a person
to make the correct decisions later on in life.

2) Duty Ethics :
The most primitive ethical systems seem to be based on
a system of obligations. The child does what the parent
wants because the parent says so. Thus "deontological"
ethics starts from the idea that some things are just wrong
and must not be done.

3) Consequential/ Teleological Ethics :

Consequentialist or teleological ethics abandons the criterion of motive and focuses
attention on the outcomes of actions. If the outcome is good the related actions are
likely to be good - regardless of the motivation of the individual actor.
 1.1 Ethics

G) Managing Ethics at Workplace

 1.1 Ethics
G) Managing Ethics at Workplace
1) Ethics Programs Help Maintain a Moral Course in Turbulent Times :
As noted earlier in this document, Wallace and Pekel explain that attention to business ethics is
critical during times of fundamental change - times much like those faced now by businesses,
both nonprofit and for-profit. During times of change.

2) Ethics Programs Cultivate Strong Teamwork and Productivity :

Ethics programs align employee behaviors with those top priority ethical values preferred by
leaders of the organization. Usually, an organization finds surprising disparity between its
preferred values and the values actually reflected by behaviors in the workplace.

3) Ethics Programs Support Employee Growth :

Attention to ethics in the workplace helps employees face reality, both good and bad -- in the
organization and themselves. Employees feel full confidence they can admit and deal with
whatever comes their way.

4) Programs are an Insurance Policy they help Ensure that Policies are Legal :
There are an increasing number of lawsuits in regard to personnel matters and to
effects of an organization's services or products on stakeholders. As mentioned
earlier in this document, ethical principles are often state-of-the-art legal matters.
 1.1 Ethics
G) Managing Ethics at Workplace
5) Ethics Programs help avoid Criminal acts "of Omission" and can Lower Fines :
Ethics programs tend to detect ethical issues and violations early on so they can be reported or
addressed. In some cases, when an organization is aware of an actual or potential violation and
does not report it to the appropriate authorities, this can be considered a criminal act.

6) Ethics Programs help Manage Values Associated with Quality Management, Strategic
Planning and Diversity Management :
Ethics programs identify preferred values and ensuring organisational behaviors are aligned with
those values. This effort includes recording the values, developing policies and procedures to
align behaviors with preferred values, and then training all personnel about the policies and
procedures.

7) Ethics Programs Promote a Strong Public Image:

Attention to ethics is also strong public relations admittedly; managing ethics should not be done
primarily for reasons of public relations. But, frankly, the fact that an organization regularly gives
attention to its ethics can portray a strong positive to the public.
 1.1 Ethics

H) Relationship between Ethics and Business

1) The Unitarian View :
According to this view, business is only a subset or substructure
of the moral structure of the society. They think that business
and morality cannot be separated. According to it, business
is to be run by the rules of morality and ethics of the
community. These ethics guide the activities of the
community.

2) The Separatist View :

This view is opposite to the Unitarian view. The classical
economists like Adam Smith and Milton Friedman were of the
opinion that the only objective of business was profit maximization and that ethics and morality
plays no part in business conduct.

3) The Integration View :

The business and morality are just two of these subsystems. All these subsystems
are interlinked and interdependent. So business and morality are also interlinked.
Business does so many good things to the society. It constitutes of ethics in itself.
Thus, there is a close relationship between business and ethics.
 1.2 Moral and Ethics
) Meaning:
here is certainly a connection between morality (or morals) and ethics; dictionary definitions of one
ll usually reference the other. However, there is an important distinction that needs to be
onsidered in the debate about morals and ethics: The basis for ethics must be morals, not the other
ay around. Unless there is a strong and consistent moral base-founded on something substantial-
hics will be subject to convenience, vested interests and fudge factors. The underpinning for
ecent human conduct must be a consistent and easily understood code of morality.

) Meaning of Morality:
orality (from the Latin moralitas "manner, character, proper behavior") is the differentiation of
tentions, decisions, and actions between those that are good (or right) and those that are bad.
hics, also known as moral philosophy, is a branch of philosophy that involves systematising,
efending, and recommending concepts of right and wrong conduct. Morals or morality is about
e actual patterns, norms and rules of behaviour that do exist side by side in any given society.

ther than "ethics", the term has its roots not in ancient Greek, but in Latin. While,
ymologically, ethics and morals carry quite similar (similarly ambiguous) meanings, the
onvention to identify ethics with the study of morals may simply have to do with the fact
at the one is considered being older than the other.
 1.2 Moral and Ethics
C) Relationship between Ethics and Moral
 1.2 Moral and Ethics
C) Relationship between Ethics and Moral
1) Ethics and Morals help People to make Good Choices :
Different ethical codes provide various standards for sorting through and settling moral questions.
Ethical ideals can come from ancient philosophers, religious figures, modern scholars and
philosophers, and personal beliefs.

2) Complimentary Terms :
Morals and ethics are used as complimentary terms but they mean different in literal sense.
Morals are beliefs based on practices or teachings regarding how people conduct themselves in
personal relationships and in society, while ethics refers to a set or system of principles, or a
philosophy or theory behind them.

3) Both Relate to "Right" and "Wrong" Conduct :

Ethics and morals both relate to "right" and "wrong" conduct. However, ethics refer to the series
of rules provided to an individual by an external source, e.g. their profession. On the other hand,
morals refer to an individual's own principles regarding right and wrong.
 1.2 Moral and Ethics
C) Relationship between Ethics and Moral
4) Both Morality and Ethics have Roots in Animal Instinct :
Ethics in the mechanisms that allow peers to function cohesively, and morality in the responses
that enable authorities (parents, pack leaders, etc.) to elicit obedience in situations where direct
coercion - and, in the case of humans, rational explanation as well - is impractical.

5) Give a View of the Nature of Human Values :

Ethics/Morality (these words are interchangeable) is the attempt to arrive at a view of the nature
of human values, of how we ought to live and of what constitutes right conduct, by force of reason
alone and not by revelation. In order to arrive at a view, it sets goals and assesses actions by the
extent to which they further these goals.

6) Ethics Decides a Person's Moral Values :

Ethics are the set of principals or the theory that decide a person's moral values. Ethics can also
be defined as the manual defining the code of morals. The presence of qualities showing high
ethics in a person is termed as morality. More commonly, people associate the term moral with
the lesson learnt from a story or a fable.
 1.3 Unethical Behaviour
A) Concept:
Unethical business behaviour is one of the most challenging issues for organizations today. It has
the potential to lead to a downfall of an organization. Before that, we must know what the definition
of Unethical behaviour is. Unethical behaviour is a way of acting that society disapproves of profuse
language, belching in public, and acting violent towards others is all examples of unethical behavior.

B) Unethical Behaviour at Work Place:

1) Employees Often Cross Ethical Boundaries :
Employees often cross ethical boundaries in workplace to cheat, sabotage, steal etc. Scholars
interested in business ethics have contesting opinions on the reason of unethical behaviour.
Some of them attribute unethical work behavior as result of character flaws, for example, bad
apples approach.

2) Correlation between Organisational Injustice and Unethical Work Behaviour :

There exists positive correlation between organisational injustice and unethical work
behaviour. Based on social exchange principles, it can be easily concluded that individuals
tend to response correspondingly toward the source of fair or unfair treatment.
 1.3 Unethical Behaviour
C) Types of Unethical Behaviour:
1) Theft :
Theft at work comes in a variety of forms, and often
times employees do not view it as unethical behavior,
believing no one gets hurt by the action. Employees
take home office supplies, use business computers
for personal tasks, pad expense accounts and abuse
sick time or allotted personal days.

2) Vendor Relationships :
Businesses that buy from and sell products to other
businesses are sometimes subject to unethical behavior.
The practice of accepting gifts from a vendor in exchange
for increased purchasing is not only unethical, it may have
legal repercussions.

3) Bending the Rules :

Bending the rules in a business situation is often the result of a psychological stimulus.
If an employee is asked to perform an unethical task by a supervisor or manager, he
may do it because his allegiance to authority is greater than his need to abide by the
Rules.
 1.3 Unethical Behaviour
C) Types of Unethical Behaviour:
3) Ignorance about the Company's Policies :
Another reason that can lead to unethical behavior in the workplace is ignorance about the
company's policies. We as social beings have a clear-cut definition of what is legal and what is
forbidden by law.

4) Environmental :
Unethical behavior by companies, such as releasing pollutants into the air, can affect cities, towns,
waterways and masses of people. Though accidents can occur, the release of harmful toxins into
the environment due to lax safety standards, improper maintenance of equipment or other
preventable reasons is unethical.

5) Wages and Working Conditions :

Other unethical practices include not paying workers a fair wage, employing children under the
legal working age and unsafe or unsanitary working conditions. Any practices that are not in
compliance with fair labor standards and federal working guidelines fall into this category.
 1.3 Unethical Behaviour
D) Causes of Unethical Behaviour:

1) Pressure from Supervisors :

Pressure from supervisors is one of the biggest reasons why people indulge in
unethical practices. When managers set unrealistic and unachievable targets, they
are indirectly communicating to their sub-ordinates that, "I want it done, no matter
what".
 1.3 Unethical Behaviour
D) Causes of Unethical Behaviour:
2) Personal Greed :
Personal greed and a desire to further one's career are the other reasons that push people to
indulge in unethical business practices. A lot of times, executives are promised a huge bonus
if they achieve their targets and the lure of money compels them to cheat.

4) Unethical Conduct on the Job :

Misguided loyalty is another reason for unethical conduct on the job. People sometimes lie
because they think in doing so they are being loyal to the organization or to their bosses.

5) Competition:
'Litemer & Molander' have found in their studies in 1974 that the important cause of decreasing
use of ethical conduct in business is the increasing nature of competition. When managers try to
meet goals and have to cut corners at that moment this acute competition at national.

6) Neglecting Social Values and Responsibility :

Social values and customs are not followed by new generation. Now-a-days people want
to become rich in a short while even by doing unethical acts. Money and success becomes
the important motivator behind any activity.
 1.3 Unethical Behaviour
E) Effects of Unethical Behaviour at the Workplace:
1) Loss of Confidence :
One outcome of poor ethical and moral practices in business is a general
loss of confidence and trust in businesses. Companies rely on their ability
to maintain trust with stakeholders in order to maintain profitability over
time. Retail companies like WalMart cannot afford to have much bad
press about ethical scandals.

2) Loss of Resources :
A second effect of poor ethical and moral practices on the part of
businesses is the loss of resources. The phony profits and inflated stock
prices collapse over night leaving the shareholders to absorb the losses.

3) New Regulations :
A third effect of poor ethical and moral practices in business is the introduction
of new regulations that apply to all companies. The Sarbanes-Oxley
Act (SOX) of 2002 is an example of accounting legislation enacted in
response to accounting scandals in companies like Enron, Tyco, and
Adelphia.
 1.3 Unethical Behaviour

F) Preventing Unethical Practices in Organizations:

1) Hiring The Right Employees :

Hiring the right employees can significantly reduce the chances of unethical
behavior occurring in the workplace. This means more stringent background
checks, screening processes and reference checks.
 1.3 Unethical Behaviour
2) Regularly Checks and Audits of Unethical Behavior :
Have regular checks and audits to make sure nothing unethical is going on right beneath a
company's nose. Whether this might be fraud, theft or a boss who is sexually harassing
employees, having a checks and balances systems put in place will reduce the chances of
unethical behavior.

3) Implementation Of Policies Into Their Practices:

Teach management to be on the lookout and to implement more rigorous reviews of employees.
One of the best ways to prevent unethical behavior is to make sure managers not only know what
to look for, but that they can also implement policies into their practices to deal with employees
who act unethically.

4) Incentives and Punishments :

Make incentives for doing the right thing and implement more severe punishments for doing the
wrong thing, or the illegal thing for that matter. A lot of businesses in certain industries actually
incentivize unethical behavior, sometimes inadvertently, which has not only gotten the
companies they work for in trouble, but also the economy.

5) Open and Transparent Business Practices :

Lastly, to prevent unethical behavior a business needs to promote more open and
transparent business practices. One of the biggest ways to encourage unethical
behavior is if the business itself keeps a "hush hush" attitude about its practices.