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Mba business ethics ppt
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Business ethics

  1. 1. Business Ethics
  2. 2.  Suggested Readings  Murthy C V S, Business Ethics, Himalaya Publishing House  Banerjee R P, Ethics in Business and Management, Himalaya Publishing House  Business Ethics- Principles & Practices- Daniel Albuquerque  Indian Ethos and Values in Management- R Nandagopal & Ajith Sankar R N  16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 2
  3. 3.  Syllabus in Prescribed book-  Business Ethics- Author -CSV Murthy  Unit I:- Introduction  Meaning of Ethics- 1.3  Definition of ethics and Business Ethics- 1.4  Objectives-1.9,  Nature- 1.10  and sources of ethics- 1.11  Types of ethics – 1.16  Need for Business Ethics-1.17  Importance and nature of Business Ethics – 1.18  Factors influencing Business Ethics- 1.20  Business and Ethical Responsibility-1.21 16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 3
  4. 4. Meaning of Ethics In Latin language-Ethics is called Ethicus In Greek it is called as Ethicos. Ethos means Character or manners. Ethics is said to be the source of morals -recognized rules of conduct.
  5. 5.  Business ethics are moral principles that define right and wrong behaviour in the world of business.  What constitutes right and wrong behaviour in business is determined by the public interest groups, and business organisations,as well as an individual’s personal morals and values 16-01-2015 5S.B.Seshadri,Asst. Prof,NERIM
  6. 6.  Three tests used for understanding business ethics in organisations  1. Test of agreement with the evidence  2. Test of internal coherence  3. Test of its compatibility 16-01-2015 6S.B.Seshadri,Asst. Prof,NERIM
  7. 7. Ethical Performance  Ethical business performance means adhering to society’s basic rules that define right and wrong behaviour.  Major Social challenges faced by business is to balance ethics and economics.  Society wants business to be ethical and economically profitable at the same time 16-01-2015 7S.B.Seshadri,Asst. Prof,NERIM
  8. 8.  Three terms used to define ethics are  1. Right  2. Proper  3. Just  Terms – bribery, theft and collusion in business unethical practices.  Collusion is a secret agreement to deceive 16-01-2015 8S.B.Seshadri,Asst. Prof,NERIM
  9. 9.  Sources of Ethics  1. General Inheritance  2. Religion  3. Philosophical Systems  4.Legal System  5. Codes of Conduct 16-01-2015 9S.B.Seshadri,Asst. Prof,NERIM
  10. 10.  Ethics & Business  Ethics conflicts with profits, whereas  Business always choose profits over ethics 16-01-2015 10S.B.Seshadri,Asst. Prof,NERIM
  11. 11.  Types of Ethics  There are three different types  1. Transactional Ethics  2. Participatory Ethics  3. Recognitional Ethics 16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 11
  12. 12.  1. Transactional Ethics  The domain of ethics covering transactions that are performed on the basis of simultaneous or connected interests and that are general by the principles of  Equality,  Honesty and,  Reciprocity is indicated as the domain of transactional ethics. 16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 12
  13. 13.  2. Participatory Ethics  It is about the shape of solidarity in an age of individualisation.  It is the ethics of the civil society, recently rediscovered as a solid ground for collective arrangements where both the marked and the state fail.  By participating on a regular basis, in common projects on behalf of general welfare, a corporation demonstrates that it can take seriously its corporate citizenship. 16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 13
  14. 14.  Participation voluntary, guided by the social relations and on two particular moral principles  Principle of Decency-A real opportunity to contribute to the general welfare presents itself and no insurmontable obstacles arise, one should have solid moral reasons not to go for it.  Principle of Emancipation- Special attention is given to the least powerful in order to defend those, who,by themselves, are defenceless.16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 14
  15. 15.  3. Recognitional Ethics  The domain of recognitional ethics covers a large part of traditional ethical interventions.  Ethics in fact is about asymmetrical relations about the rights of interests of the one generating a duty for another.  Principle of Recognition  Principle of beneficence or nonmalificence 16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 15
  16. 16.  Need for Business Ethics  1. Business operates within the society  2. Every business irrespective of size exists more on ethics means or in total regard to its social concern to survive long  Business needs to function as responsible corporate citizens in the country 16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 16
  17. 17.  Importance of Business Ethics  1. Personal gain  2. Individual values vis a vis organisational goals- whistle blowing  3. Managers values and attitudes  4. Competitive pressures  5. Cross-cultural contradictions 16-01-2015 17S.B.Seshadri,Asst. Prof,NERIM
  18. 18.  Five Factors influencing Business Ethics  A) Leadership  B) Strategy and Performance  C) Environment  D) Corporate Culture  E) Individual Characteristics 16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 18
  19. 19.  Unit II:-  (Chapter 2)  Values, Norms and standards  Values-  Norms-  Beliefs-  Moral Standards, Beliefs and their role-  Ethical codes-  (Chapter 3)  Theories of ethics-  Ethical reasoning-  Ethical decisions-  Normative ethics in Management-  Ethical theories 16-01-2015 S.B.Seshadri,Asst. Prof,NERIM 19
  20. 20.  Unit II  Values ,Norms, Beliefs and Moral standards  Values are a general term referring to those things which people regard as good,bad,right,wrong,desirable,justifiable etc.  Business is driven by values. Values determine  What business people do?  How others react? 16-01-2015 20S.B.Seshadri,Asst. Prof,NERIM
  21. 21.  Values are potent sources of conflict as well as of co-operation, control and self-control.  Through Values, business can and does create value in the form goods,services,employment, etc.  Some values prevent this process from working properly or at all.  Ex:- Liquor trade, unethical trades etc. 16-01-2015 21S.B.Seshadri,Asst. Prof,NERIM
  22. 22.  Types of Values  1. Cultural –represent the expectations of stakeholders and set of standards of technical skills in business .  2. Moral-Important ones which are deep- seated ideas and feelings that manifest themselves as behaviour or conduct. Difficult to measure or express in words.  3.General & Control Values- capable of judging the acceptability of the prudential and technical value. 16-01-2015 22S.B.Seshadri,Asst. Prof,NERIM
  23. 23.  Managerial Values  In 1975, An international study was done by George from England with focused approach on importance of Goods of organisations like  - productivity  - profit maximization  - employee welfare  - organisational growth,stability,efficiency  - industry leadership,  - Social welfare 16-01-2015 23S.B.Seshadri,Asst. Prof,NERIM
  24. 24.  The Study categorises the primary orientation of the managers are:-  Pragmatic- It is pertaining to public business or skilled in affairs  Moralistic(Ethical –moral code). Evaluative frame work consisting of ethical considerations influencing behaviour towards actions and decisions, judged to be “right” and away from those judged to be wrong.  Affective(Feeling)- Suggests an evaluative framework guided by hedonism- one behaves in ways that increase pleasure and decrease pain.Hedorism is the doctrine that tells happiness is the highest good. 16-01-2015 24S.B.Seshadri,Asst. Prof,NERIM
  25. 25.  Features of Values-( DNA)  1. Descriptive – (Something like using ‘is’ of ethics)  2. Normative- ( Something like using ‘ought to be ‘ of ethics)  3. Analytical- ( Something like using ‘why’ of ethics) 16-01-2015 25S.B.Seshadri,Asst. Prof,NERIM
  26. 26.  Norms  Norms are expectations of proper behaviour, not requirements for that behaviour, a major difference between a norm and law.  Each individual within the society has a set of norms,beliefs, and values that together form his or her moral standards.  Norms are the ways an individual expects all people to act, when faced with a given situation. 16-01-2015 26S.B.Seshadri,Asst. Prof,NERIM
  27. 27.  The norm is not published , may not be obeyed and cannot be enforced- except by the sactions of a small group whose members hold similar norms and use such penalities as disapproval or exclusion.  It is not consistent nor universal.  Norms are just the way we feel about behaviour. They are neither logically consistent nor universally applied because we have never thought through the reasons we hold them. 16-01-2015 27S.B.Seshadri,Asst. Prof,NERIM
  28. 28.  Beliefs  The beliefs in an ethical code are standards of thought.  Beliefs are criteria of thought. They are the ways an individual expects people to think about given concepts.  Beliefs are different from norms, since we do not find any action- only an abstract way of thinking, no untoward behaviour with others. It tends to support an individual norms. 16-01-2015 28S.B.Seshadri,Asst. Prof,NERIM
  29. 29.  Moral standards  Law is a dynamic entity since the rules prevalent now will change after some period.  Moral standards- it includes the norms we have about the kinds of actions we believe are morally right and wrong as well as the values we place on the kind of objects we believe are morally good and morally bad. 16-01-2015 29S.B.Seshadri,Asst. Prof,NERIM
  30. 30.  Ethics of Business competition vs. competition in sports  To win or gain financially , sportspersons take drugs, practice unethical means etc  It is very difficult to win but easy to loose indulging in wrong means – even at conscience level if not caught. 16-01-2015 30S.B.Seshadri,Asst. Prof,NERIM