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Chapter One Introduction To Business Ethics

The document provides an overview of business ethics. It discusses the case of photographer Kevin Carter who photographed a starving child near a vulture but did not help the child. It defines key terms like conscience, values, ethics, and ethical dilemmas. It also outlines some common ethical dilemmas in business and discusses the importance of establishing a strong ethical culture through implementing measures like adopting an ethics code, providing training, hiring ethical people, correcting unethical behavior, being proactive, conducting social audits, and protecting whistleblowers.

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faaiz makhani
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34 views23 pages

Chapter One Introduction To Business Ethics

The document provides an overview of business ethics. It discusses the case of photographer Kevin Carter who photographed a starving child near a vulture but did not help the child. It defines key terms like conscience, values, ethics, and ethical dilemmas. It also outlines some common ethical dilemmas in business and discusses the importance of establishing a strong ethical culture through implementing measures like adopting an ethics code, providing training, hiring ethical people, correcting unethical behavior, being proactive, conducting social audits, and protecting whistleblowers.

Uploaded by

faaiz makhani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Business Ethics

Chapter One
Introduction to Business Ethics
Starving Child and Vulture
This is my most successful image after 10 years of taking pictures, but I do not hang it on my wall. I hate it.
-Kevin Carter
Starving Child and Vulture
 In 1993 Kevin Carter flew to Sudan to photograph the
famine racking that land. There he heard whimpering
and came across a toddler who had collapsed on the
way to a feeding center. As he took the child’s
picture, a plump vulture landed nearby. Carter had
reportedly been advised not to touch the victims
because of disease, so instead of helping, he spent
20 minutes waiting in the hope that the stalking bird
would open its wings. It did not. Carter scared the
creature away and watched as the child continued
toward the center. He then lit a cigarette, talked to
God and wept. In July 1994 he took his own life,
writing, “I am haunted by the vivid memories of
killings & corpses & anger & pain.” 
Conscience

 The inner sense of what is right or wrong in


one's conduct or motives, impelling one
toward right action.

 Human beings are born with Conscience.


Conscience differentiates us from animals.
Values
 Values are the moral principles and beliefs or
accepted standards of a person or a social group.
 Some examples of core values people might have
about life include the following:
 A belief that family is of fundamental importance.
 A belief that honesty is always the best policy
and that trust has to be earned.
Ethics
 Moral principles that govern a person's
behaviour or the conducting of an activity.

 E.g. morality, moral stand, moral principles,


moral values, rights and wrongs, principles,
rules of conduct, standards (of behaviour).
Business Ethics

 Business Ethics refers to clear standards and


norms that help employees to distinguish
right from wrong behavior at work.

 Business Ethics, then, is not distinct from


ethics in general, but rather a subfield.
Ethical Dilemmas
An ethical dilemma is a situation where a
potential course of action offers potential
gain but is unethical.
.

 Frequently rising ethical dilemmas are:

. Provide a product or service you know is harmful or unsafe.


. Misleading someone through false statements.
. Using insider information for personal gains.
. Playing favorites.
. Manipulating and using people.
. Benefiting personally from a position of trust.
. Misusing company property or equipment.
. Falsifying documents.
. Padding expenses.
. Taking bribes or kickbacks.
. Participating in a cover up.
. Theft or sabotage.
. Committing an act of violence.
. Negligence or inappropriate behavior in the work place.
Poor ethical choices
 While dealing with ethical dilemmas people
sometime make poor ethical choices.

 Reasons for weaker decisions may be because


of: flaw in character, intentional evil, lack of
conscience, personal greed, envy, jealousy,
resentment, Fear to lose or will to win at any
cost.
Flaws in corporate culture
 Sometimes good people also end up making
poor ethical judgments because of lack of
understanding.

 There could be indifference,


 Lack of knowledge and understanding of

standards on part of employees,


 Poor or inappropriate incentive system,
 Poor leadership.
Strong ethical culture

 Business leaders need to take proactive


measures to establish and maintain a
corporate culture that emphasizes strong
moral leadership.
Steps to create an ethical culture
 Adopt a code of ethics

 Provide ethical training

 Hire and promote ethical people

 Correct unethical behavior

 Be proactive

 Conduct a social audit

 Protect whistle blowers

 Empower the guardians of integrity


 Code of ethics;

Identify commonly held moral beliefs and


values of the members of the firm and codify
them into a written document all can
understand and support.

Post the code of ethics in prominent places


around the worksite.
 Ethical Training

Frequent training sessions should be provided


to employees, either through ethics experts
or through managers of the company.

The employees have to be provided with real


world scenario in which ethical dilemma is
encountered.

Participants have to find solutions based on the


code of ethics provided to them.
 Hiring and promoting ethical people

When making human resource decisions


always opt for people with good character
along with technical competence.

Investigate the character of the people before


you hire them.

Base promotional decisions on matters of


character in addition to technical
competence.
 Correction of unethical behavior

A progressive discipline may be used;


Oral warning, written reprimand, suspension
without pay and termination are the
consecutive steps taken to enforce the
application of code of conduct.

In some sever cases direct termination is also


done to save organization from further losses
and to signal all the employees that
substandard moral behaviors will not be
tolerated.
 Being Proactive

In order to build a reputation of good


corporate social responsibility, the
organization should conduct community
services; education programs, hygiene,
housing programs etc.

Seeking and adopting best practices from


other businesses in the community is also a
proactive strategy.
 Social Audit

From time to time the leaders of business


might invite responsible parties to examine
the organization’s product design,
purchasing, production, marketing,
distribution, customer relations and human
resource functions.

The concept is correction in the areas of


policies as well as social responsibilities.
 Protection of whistle blowers

When unethical actions are uncovered within a


firm by one of the employees, managers
should take corrective action.

Turning a blind eye towards the unethical


actions will convey the message to
employees that the ethicality is not the
characteristic of that organization’s culture.
 Empower the guardians of integrity

The leader of the organization has to lead by


setting an example of firm’s commitment to ethics
in its relationship with suppliers, customers,
employees and shareholders.
Case Study on Ethical Dilemma

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