2. What is Ethics??
• The word ethics is derived from Latin word
ethicus and Greek word ethikos.
• Ethics are moral guidelines which govern
good behaviour
So behaving ethically is doing what is morally
right
• A system of moral principles
• Our Ethical compass
3. Concepts of Ethics
• Ethical subjectivism – the morally correct decision often
depends on the circumstances of a person making it.
• Ethical relativism – there is no universal set of principles by
which to judge morality.
• Consequentialism – it consists of two ideas:
• the concept of value
• maximization of value.
• Ethics of virtue – it emphasizes the role of individual traits.
4. Business ethics
Ethical problems in business:
– Overt problems – transparent
– Covert problems - complex
An ideal ethical decision comprises of the following virtues:
• Right – morally correct
• Equitable- just and equal
• Good- highest good for all concerned
• Proper – appropriate and acceptable
• Fair – honesty
• Just – action
5. Stages of ethical consciousness in
business
1. Law of jungle
2. Anything for profit
3. Profit maximizing
4. Stakeholder analysis
5. Corporate citizenship
6.
7. Importance of ethics in business
• The Corruption Perceptions Index "on a scale
from 10 (very clean) to 0 (highly corrupt)
• New Zealand is the least corrupt
• India stands at 95th place, among 178
countries
9. Ethical theories
• Metaethics –
– it deals with the gamut of ethical
issues.
– It is defined as the study of the origin
and meaning of ethical concepts. It
questions whether the moral values
exist independently of humans or they
are simply human conventions
– Psychological issues that deal with
psychological basis of the moral action
– Linguistic issue that deal with the
meaning of key moral terms we use.
– ‘Axe’ – even angels will fall !!!
10. Ethical theories
• Normative ethics –
• It implies something that ‘guides’ or
‘controls’
• It guides human conduct.
• We should treat others the same way
we want others to treat us.
– Prescriptive
– Universal
– Overriding
– Public
– Practical
• Livon Hair Gain
11. Three normative theories
• Teleological ethical theories –thinking rationally about ends. An
action is morally correct if the consequence of the action are
more favorable. It is also called as Consequentialist theories.
They offer 3 theories, based on 3 meaning of ‘good’:
• Egoism – if the consequence is good for self
• Utilitarianism – if the consequence is good for everyone
• Altruism – if the consequence is good for everyone except
self
• Deontological ethical theory – focuses on certain fundamental
duties that we have as human being
• Virtue ethics – focuses on character development
12. Theory of corporate moral excellence
• Culture is based on values
• Espoused values
• Values in practice
• Espoused values refer to a company’s statements,
credos and code of ethics.
• They describe the organizations purpose and
ethical perspective.
• Espoused values may differ from values in practice,
depending on situations.
13.
14. • Hoffman classified corporate
culture into three types:
• Basic values attitudes and beliefs of the
organization
• Organizational goals, policies, structure,
strategies that are shaped by the values
and beliefs prevalent in the organization
• Organizational procedures and processes
15. Common format for Corporate Code
• Compliance code
• corporate credos
• Management philosophy statements
• Special documents
• Circulated letters
• Compliance certificate
• Purchase orders
• Johnson and Johnson credo says, "We believe our primary responsibility is to the
doctors, nurses and patients, mothers and all others who use our products and
services“
• Tata credo says 'give back to the people what you have earned from them'.
• Wal-Mart, established the “Three Basic Beliefs” as the company's credo:
- Respect for the Individual
- Service to our Customers
- Strive for Excellence
