Business Ethics - An introduction and its overview.pptx
- 1. Business Ethics Unit 1- Introduction to Business Ethics By Ms. C. Keerthana, Assistant Professor, Department of Commerce RM, Sri Ramakrishna College of Arts and Science.
- 2. What is Business Ethics? • Business ethics refers to the principles, values, and standards that guide behavior in the world of commerce. It is the application of ethical reasoning and moral principles to situations and decisions in a business context. Business ethics influences how a company conducts its activities, treats its stakeholders (employees, customers, investors, suppliers, and the community), and manages its responsibilities to society and the environment. • Business ethics encompasses a wide range of issues, including corporate governance, insider trading, bribery, discrimination, corporate social responsibility (CSR), fiduciary responsibilities, and environmental sustainability.
- 3. Importance of Business Ethics • Trust and Reputation: Ethical practices help businesses build trust with consumers, employees, and investors. A strong reputation can be a major competitive advantage. • Legal Compliance: Adhering to ethical standards helps ensure compliance with laws and regulations, reducing legal risks and penalties. • Stakeholder Relationships: Ethical behavior promotes positive relationships with stakeholders, leading to higher employee morale, customer loyalty, and investor confidence. • Long-term Success: Ethical companies are more sustainable in the long run because they are better at managing risks, adapting to changes, and attracting talent. • Social Responsibility: Businesses have a role to play in addressing social and environmental challenges. Ethics guide businesses in making socially responsible choices.
- 4. Key Principles of Business Ethics • Integrity: Acting honestly and transparently in all business dealings. • Fairness: Treating all stakeholders equally and justly. • Accountability: Taking responsibility for one's actions and decisions. • Respect: Valuing employees, customers, communities, and competitors. • Loyalty: Maintaining commitments and avoiding conflicts of interest. • Law Abidance: Following laws and regulations in all jurisdictions of operation. • Corporate Citizenship: Contributing positively to society and the environment.
- 5. Types of Ethical Issues in Business • Corporate Governance: Issues related to how a company is directed and controlled, including transparency, board accountability, and shareholder rights. • Insider Trading: Using confidential information for personal gain, which is both unethical and illegal. • Bribery and Corruption: Offering or accepting bribes to influence business outcomes. • Discrimination and Harassment: Unethical treatment of employees based on race, gender, religion, etc. • Environmental Concerns: Ignoring the environmental impact of operations or engaging in greenwashing. • Consumer Protection: Misleading advertising, defective products, or failing to honor warranties.
- 6. Theoretical Frameworks in Business Ethics • Utilitarianism: Ethical decisions are those that produce the greatest good for the greatest number. • Deontological Ethics (Kantianism): Actions are ethical if they follow a set of rules or duties, regardless of the outcome. • Virtue Ethics: Focuses on the moral character of the decision-maker rather than specific actions. • Rights-Based Ethics: Decisions should respect the rights of all individuals involved. • Justice-Based Ethics: Emphasizes fairness and equality in decision- making.
- 7. Implementing Business Ethics in Organizations • Code of Ethics: A formal document outlining the ethical principles and expected behavior within an organization. • Ethics Training: Regular workshops or programs to educate employees on ethical behavior. • Whistleblower Policies: Mechanisms for employees to report unethical conduct without fear of retaliation. • Ethics Committees: Groups within the organization dedicated to monitoring ethical behavior and resolving issues. • Leadership Commitment: Ethical tone must be set at the top; leaders should model ethical behavior.
- 8. ORIGIN OF ETHICS 1. Ethics in Ancient Civilizations • Egypt: Instructions of Ptahhotep advised honesty, respect, and justice. • India: Vedas and Bhagavad Gita emphasize Dharma (moral duty). • China: Confucianism teaches values like Ren (benevolence), Li (ritual), and Xiao (filial piety).
- 9. 2. Greek Philosophy • Socrates: Ethics is knowledge; wrongdoing is due to ignorance. Example: Lying is wrong because it harms knowledge and relationships. • Plato: Ethics connects with eternal truths like the "Form of the Good." Example: Justice is a permanent ideal to strive for. • Aristotle: Ethics is about Eudaimonia (flourishing) through virtues. Example: Courage is the mean between cowardice and recklessness. 3. Religious Contributions • Christianity: Teaches love, forgiveness, compassion. Example: Treat others as you want to be treated. • Islam: Emphasizes justice, honesty, charity. Example: Giving zakat (charity) to the needy. • Buddhism: Encourages non-violence, truth, and mindfulness. Example: Avoiding harm to any living being.
- 10. NATURE OF ETHICS 1. Normative Discipline • Ethics deals with how people ought to behave. Example: Telling the truth even when it’s inconvenient. 2. Philosophical Reflection • Ethics involves rational thinking about values. Example: Debating if capital punishment is morally justified. 3. Human-Centered • Focuses on human choices, actions, and responsibilities. Example: Choosing not to pollute even when it’s profitable.
- 11. NATURE OF ETHICS 4. Based on Moral Principles • Uses core ideas like justice, fairness, and responsibility. Example: Fair wages for equal work. 5. Types of Ethics Branch Focus Example Normative Ethics What is right? Should I lie to protect a friend? Meta-ethics What is "good"? Are moral facts objective? Applied Ethics Specific cases Is euthanasia morally acceptable?
- 12. PURPOSE OF ETHICS 1. Guides Human Behavior • Helps people choose right actions. Example: Not cheating on an exam, even when easy. 2. Builds a Just Society • Promotes harmony and cooperation. Example: Laws against discrimination. 3. Develops Moral Character • Shapes habits and virtues. Example: Practicing honesty leads to trustworthiness.
- 13. PURPOSE OF ETHICS 4. Influences Law and Policy • Ethics shapes laws that reflect moral values. Example: Laws protecting the environment. 5. Ensures Professional Accountability • Maintains standards in fields like medicine, business, law. Example: A doctor maintaining patient confidentiality.