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Business ethics and corporate social responsibility
Business ethics can be defined as written and unwritten codes of principles and values that govern decisions and actions within a company. free ppt download
What is Ethics
A code of moral standards of
conduct for what is “good” and
“right” as opposed to what is
“bad” or “wrong”.What is Business Ethics
▸ Business ethics can be defined
as written and unwritten codes of
principles and values that govern
decisions and actions within a
▸ In the business world, the
organization’s culture sets
standards for determining the
difference between good and bad
decision making and behavior.Importance of Ethics in Business
The study of Ethics paves the way for common ground in our
understanding of the fundamental idea of what is good and what
is bad in our human conduct.
Without Ethics, people, especially businessmen, will set their own
moral standards, moral rules and moral principles.Continued…
Ethics influence and contribute to:
Investor and customer loyalty and confidence.
Legal problems and penalties.
The ability to build relationships with stakeholders.
Performance, revenue, and profits.
Reputation and image.Swami Vivekanand Views on Ethics
• The basis of Indian Subjectivity in
the belief of god.
• He suggested the fundamental law of
“DON’T INJURE OTHERS, LOVE
EVERYONE AS YOUR OWNSELF
UNIVERSE IS ONE”Factors That Affect Ethical Choices
• Brings specific set of values to the game
• Based on Personal needs, family influence, religious
background, cultural background
• The moral stage of development
Preconventional levelExternal rewards
Conventional Level external expectations
of colleagues, friends and family
Post Conventionalinternal standards and
”Three Types of Management Ethics
MORAL IMMORAL AMORAL1. Moral Management—Conforms to high
standards of ethical behavior.
2. Immoral Management—A style devoid of
ethical principles and active opposition to
what is ethical.
3. Amoral Management—
• Intentional does not consider ethical
• Unintentional casual or careless about
in businessPrinciples For Positive Business Ethics
Integrity refers to wholeness, reliability and consistency. Ethical businesses treat people with respect,
honesty and integrity. They back up their promises, and they keep their commitments.
Would a disinterested observer agree that both sides are being treated fairly Are both sides
negotiating in good faith If so, the basic principles of ethics are being met.
If your company is new, unstable, about to be sold, or going out of business, ethics requires that you
let clients and customers know this. Ethical businesses can be relied upon to be available to solve
problems, answer questions and provide support.Continued…
BUILD ON PERSONAL ETHICS
There is no real separation between doing what is right in business and playing fair, telling the truth
and being ethical in your personal life.
REQUIRE BUSINESS PLAN
A company’s ethics are built on its image of itself and its vision of the future and its role in the
community. The clearer the company’s plan for growth, stability, profits and service, the stronger
its commitment to ethical business practices.
Ethics are about values, ideals and aspirations. Ethical businesses may not always live up to their
ideals, but they are clear about their intent.Ethical Issues Within Organization
Health and safety
Manufacturing plants and other workplaces where employees use dangerous
equipment or engage in physically demanding work should have strong safety
standards that not only meet federal requirements, but that also make eliminating
accidents a priority.
Advancements in technology and the growth of the Internet in the early 21st century
have produced a slew of ethical dilemmas for companies. Company leaders have to
balance the privacy and freedom of workers while also maintaining standards that
require that company technology use is for legitimate business purposesContinued..
Prominent business and accounting scandals have made it imperative that companies
operate with openness and transparency. For public corporations, this includes honest,
accurate and complete reporting on mandated financial accounting reports.
Fair Working Conditions
Companies are generally expected to provide fair working conditions for their employees
in the business environment, Fair pay and benefits for work are more obvious elements of
a fair workplace. Another important element is provision of a nondiscriminatory work
environment.Factors Highlighting The Importance of Business Ethics
1. Longterm growth: sustainability comes from
an ethical longterm vision which takes into
account all stakeholders. Smaller but
sustainable profits longterm must be better
than higher but riskier shortlived profits.
2. Cost and risk reduction: companies which
recognize the importance of business ethics
will need to spend less protecting themselves
from internal and external behavioral risks,
especially when supported by sound governance
systems and independent research .Continued..
3. Anticapitalist sentiment: the financial crisis marked another blow for
the credibility of capitalism, with resentment towards bank bailouts at the
cost of fundamental rights such as education and healthcare.
4. Limited resources: the planet has finite resources but a growing
population; without ethics, those resources are depleted for purely individual
gain at huge cost both to current and future generations.Ethical Dilemmas In Business
• Like unexploded bombs, must be defused before they blow up in our faces
Company expectations for employee commitment
Pressure from managers and coworkers
Opportunities for unethical behavior
Internal pressure in the form of personal ambitions
External forces such as family needs
• Personal reputations, legal standing, company’s public name are at risk
• Much is at stake for companies and individuals in facing ethical dilemmasGuidelines to Handle Ethical Dilemma
Define problems clearly
Stood on the other side of the fence
How did the situations arise
Intention in making that decision
Who will injure by your decision
What is probable results of the decision
Can you discuss with affected parties
Symbolic potential of your action, if
understood or misunderstood
Exceptions to your standConclusion
Ethics are important not only in business but in all aspects of
life because it is an essential part of the foundation on which
of a civilized society is build. A business or society that lacks
ethical principles is bound to fail sooner or later.
Henry Kravis states, “If you build that foundation, both the
moral and the ethical foundation, as well as the business
foundation…then the building won't crumble.” THANKS
You can find us at queriesthesisscientist.com