Business Ethics

Manish Naik 98676 36938 manish.canopy@gmail.com

Broad Syllabus
Evolution of thought of ethics in business Culture and ethics Overview of ethics Social and economic values and responsibilities Trusteeship Normative ethics

Broad Syllabus
Ethics and decision making CSR Ethics and corporate excellence Ethics in corporate settings

Books
Balachandran S, Business Ethics Velasquez Manuel, Business Ethics Concept and Cases, Pearson Shaw William, Business Ethics, Wadsworth Publishing Raj Rituparna, A Study in Business Ethics, Himalaya Publishing

Reference Text
The Ethics of Management by La Rue Hosmer Ethics in Management by SK Chakraborty, OUP

Some Terms of Reference

Business ethics goes hand-in-hand with ethics, which is a major discipline Business ethics is applied science like:
Accountancy ethics Medical ethics Consumer ethics Religious ethics Work (professional) ethics Personal ethics

Ethics

Ethics
The concept of ethics comes from the Greek word ethos meaning both an individuals character and a communitys culture Ethics has a distinguishing disposition

Ethics
Ethics is a set of values and rules that define right and wrong conduct What is considered ethical may depend on the perspective from which ethical issues are considered Ethics is non-universal ethics are governed by the environment and the society (religion included) What is ethical may not be legal and vice versa

Terminologies and Errors

Ethical and unethical Ethically right and ethically wrong Moral, immoral and non-moral Morally right and morally wrong Ethical dilemmas Profiting and profiteering

Forces that Shape Ethical Conduct

Societal norms and culture Laws and regulations Organizational practices and culture Individual perspective

Nature of Ethics
Ethics deals only with humans Under what conditions can ethics come into play?
Only out of freewill There should be a choice One needs fully-developed rational faculty and maturity

Ethics belongs to the field of social sciences Ethics is a Normative Science

Business and Ethics: Some Questions

Is profit making the only goal of businesses? Should an unbridled market mechanism drive an enterprise? To what extent corporations should compensate for the hidden costs that are incurred by the society at large?

Consensus in Answers
A consensus emerged:
that corporate practices cannot bypass the fundamental demands of ethical behavior, that administration and policies have to be transparent and publicly accountable, and that businesses have to be sensitive to the community and the environment within which they operate.

This led to the ethical trilogy.

Business Ethics: Emergence of Ethical Trilogy

Corporate Social Responsibility Corporate Ethics

Corporate Governance

* Generally all treated in isolation

Business Ethics

Business Ethics: Ethical Trilogy

Corporate Social Responsibility

Corporate Ethics

Corporate Governance

Why Business Ethics for B-Schools?

A business that makes nothing but money is a poor kind of business. - Henry Ford

Why Business Ethics for B-Schools?

Market Economy

Wealth

Material Welfare Enriching Power

Unbridled Greed

Some Trivia
Where was business ethics first introduced? Why was ethics introduced in management courses? Concepts have undergone change due to internationalization Will undergo modifications due to nature of future workplaces, and business relations

Relationship between Business and Ethics

Unitarian view Separatist view Integration view

Nature of Business Ethics

Ethical decisions differ with the individual perspectives of different persons Ethical decisions are not limited only to themselves, but affect a wide range of other situations as well Most ethical decisions involve a tradeoff between costs incurred and benefits received The consequences of most ethical decisions are not clear: they are ambiguous in nature Every person is individually responsible for the ethical or unethical decision and action that he or she takes

The Ethics of Action

Bribery Coercion Theft Unfair discrimination Adulteration Wrong disclosure Under disclosure Evasion of duty False claims Insider trading Puffery Deception Deliberate wrongdoing

Volvo Ad

Basis for Ethical Decisions

Utilitarianism Justice Equity