1. Notes
Module 2
Business Ethics
Introduction
People need some sort of a moral guide through life. Many may think that they can get by without one
but chances are that they are egoists and do have a principle which is guiding them. If it makes me feel
good, if it makes me happy, if I like it and can live with it then it is all right for me to do it. That may seem
like an attractive principle by which we can make decisions until one starts to think about it. As a guide
for all people that principle would lead and does lead to many conflicts. What is needed in a moral code
is something that will enable humans to live with one another in an order rather than in chaos of self-
interested action. A person's Ethics is the moral standard that a person uses in choices of what is Right
or Wrong. Not all choices are ethical ones.
What is 2 +2 is not an ethical issue. Nor is the answer to the question. Or what is the speed of light?
Many solutions are known or can be tested through an accepted formalized logical system such as
mathematics or scientific methods. Derived from the Greek word ethos which means character likewise
ethics is Our Character. It is how we judge our and other's choices regarding behavior to one another.
Ethics applies to social action, the correctness of which can be tested only by knowing the standard that
is applied. Ethics also applies to Choice, so the absence of any ability or opportunity to make a choice
argues that behavior that is compelled or made in ignorance may not fit the notion of ethical behavior.
Although we may not be aware of them, when we make choices there are competing standards or
ethical perspectives that govern people's behavior
Q. Describe the categories of ethical perspectives? (2 marks)
The categories of ethical perspectives are:
• Egoism or self interest - the standard is my interests
• Social relativism - the standard is the interest of my friends, group, or community
• Cultural relativism - the standard is my cultural or legal system of values
• Utilitarianism - the standard is Most People or experience with consequences
• Deontology - the standard is an obligation to do the "right" thing
Q. What is egoism?(2 marks)
Egoism or self-interest ethics assumes that individuals or businesses have an obligation to guide their
conduct by a rational calculation of one's own interests.

2. Conduct is Right when it advances personal interests. This is not Greed because greed shows Excess or
demanding more than one is entitled to. Egoism assumes that there is no Entitlement, others also have
interests, and interests can and should compete. No one is more deserving than another. Egoism makes
no assumption that one person's interests are in any way Superior. Indeed, at the basis of this
perspective is the view that all people are Equal, Free and should enjoy the unrestrained liberty to
pursue self-interests.
Q. What is social group relativism? (2 marks)
Social group relativism is a view that assesses what is a proper conduct by understanding what our social
group expects of us. While the term relativism has come to imply that 'anything goes', here the term
simply means that standards of conduct in our personal life and in business are governed by the
expectations of others on our behavior.
Q.What is cultural relativism? (2 marks)
In the cultural relativism perspective the ethical standard is culture which is not universal nor is it fixed
and has widely shared values. They are formalized into law when compliance is especially important to
society. For Example, the right to vote, however, is a core value that has progressively become
formalized into the legal system. If someone attempted to obstruct the exercise of this value, this
conduct would be seen not only unethical, but also illegal.
Q. What is Utilitarian view? (2 marks)
Utilitarianism sometimes called Situational Ethics is of competing obligations that are prioritized by
some contextual standards. The Right thing to do depend not so much on an ethical standard but on an
appraisal of the situation, the alternative courses of act available and the consequences of the choices
available.
Q. What is deontology ? (2 marks)
To many religious people this will sound like Theology, but deontology as a field of ethics attempts to
forge a concept of Right that is more universal than a religion. Each of these categories identifies a
different kind of standard for making choices, and refers to some interest that is valued or preferred.
The implication of this is that most ethical choices benefit someone or satisfy some interests that YOU
have. We may not share the same interest or preference, so there can be a temptation to judge others
ethical choices as Wrong. The exercise here is not to judge, but this is not an argument for what some-
call situational in ethics. Ethical behavior may or may not differ with circumstances but since decisions
often are made on the basis of an ethic perspective it is useful to understand how we discriminate
between the Right and the wrong.
Questions on Philosophy of ethics
Realism and anti-realism Philosophical theories on the nature and origin of morality i.e.., theories of
meta-ethics are broadly divided into two classes:

3. • Moral realism is the class of such theories which hold that there are true moral statements that report
objective moral facts. Example, while they might concede that forces of social conformity significantly
shape individual's Moral decisions, they deny that those cultural norms and customs define the morally
right behavior.
• Moral anti-realism on the other hand, holds that moral statements which either fail or do not even
attempt to report objective moral facts. Instead, they hold that morality is derived either from an
unsupported belief that there are objective moral facts. The moral relativist holds that there is no
correct definition of right behavior, and that morality can only be judged with respect to the standards
of particular belief systems and socio-historical contexts. The Kantian theory considers the origin or
morals and morality and concludes that reason is the final authority for morality. Blind beliefs or rituals
cannot be the foundations for morality. He emphasized that the basics of ethics are those actions that
are taken by a sense of duty and dictated by reason are moral.
Q. Elaborate on Anthropological perspective (2 marks)
The perspective of tribal and territorial moralities characterizes the latter as predominantly negative and
proscriptive. It defines a person's territory, including his or her property and dependents, which is not to
be damaged or interfered with. Apart from these proscriptions, territorial morality is permissive,
allowing the individual whatever behavior does not interfere with the territory of another.
By contrast, tribal morality is prescriptive, imposing the norms of the collective on the individual. These
norms will be arbitrary and culturally dependent as well as flexible whereas territorial morality aims at
rules which are universal and absolute.
Through In-group and Out-group, some observers hold that individuals apply distinct sets of moral rules
to people depending on their membership of an In-Group (individuals and those who believe to be of
the same culture or race) or an Out-Group (people not entitled to be treated according to the same
rules. Some biologists, anthropologists and evolutionary psychologists believe this In-group/Out-group
discrimination has evolved because it enhances group survival.
It is also argued that nationalism and patriotism are forms of this In-group/ Out-group boundary.
Peterson and Seligman approach the anthropological view looking across cultures, geo-cultural areas
and across millennia, i.e.. through comparing cultures. They conclude that certain virtues have prevailed
in all cultures they examined. The major virtues they identified include wisdom I knowledge, courage,
humanity, justice, temperance, and transcendence. Each of these include several divisions. For instance
humanity includes love, kindness, and social intelligence
Q. Explain the Evolutionary Perspectives (8 marks)
The development of modern morality is a process closely tied to the Socio-cultural evolution of different
people of humanity. Some evolutionary biologists, particularly socio-biologists, believe that morality is a

4. product of evolutionary forces acting at an individual level and also at the group level through group
selection, though to what degree this actually occurs is a controversial topic in evolutionary theory.
Some socio-biologists contend that the set of behaviors that constitute morality evolved largely because
they provided possible survival and/or reproductive benefits i.e. increased evolutionary success.
Humans consequently evolved "pro-social" emotions, such as feelings of empathy or guilt, in response
to these moral behaviors.
Here it is found that morality is not absolute, but relative and constitutes a set of behaviors that
encourage human cooperation based on their ideology to get ideological unity. Biologists contend that
all social animals modify their behaviors by restraining selfishness in order to make group living
worthwhile. Human morality though sophisticated and complex is relative and is essentially a natural
phenomenon that evolves to restrict excessive individualism and foster human cooperation. On this
view, moral codes are ultimately founded on emotional instincts and intuitions that were selected for in
the past because they aided survival and reproduction. The phenomenon of Reciprocity in nature is seen
by evolutionary biologists as one way to begin to understand human morality. Its function is typically to
ensure a reliable supply of essential resources, especially for animals living in a habitat where food
quantity or quality fluctuates unpredictably.
Q. Explain the Neuroscientific Perspectives (2 marks)
Here we see Mirror neurons which are neurons in the brain that fire when another person is observed
doing a certain action. The neurons fire in imitation of the action being observed, causing the same
muscles to act minutely in the observer as are acting grossly in the person actually performing the
action. They have a role to play not only in action understanding, but also in emotion sharing empathy.
The inability to feel empathy is one of the defining characteristics of psychopathy. Also neuro-imaging
and stimulation show the explicit making of moral right and wrong judgments coincides with activation
while intuitive reactions to situations containing implicit moral issues. Stimulation shows the change in
moral judgments of human subjects.
Q. Explain the Psychological Perspectives (2 marks)
In modern moral psychology, morality is considered to change through personal development. A
number of psychologists have produced theories on the development of morals, usually going through
stages of different morals. To a few theorists, morality forms in a series Of constructive stages or
domains. Social psychologists emphasize social and emotional development based on biology, such as
empathy. Moral identity theorists, see moral commitment as arising from the development of a self-
identity that is defined by moral purposes. This moral self-identity leads to a sense of responsibility to
pursue such purposes. Of historical interest in psychology are the theories which believe that moral
development is the product of aspects of the super-ego as guilt-shame avoidance.

5. Q. Explain Teleology (12 marks)
Teleology and ethics are connected in business ethics to assess the individual and organisational
behavior. Teleological moral systems are characterized primarily by a focus on the consequences which
any action might have, for that reason, they are often referred to as consequentalist moral system.
Thus, in order to make correct moral choices, we need to have some understanding of what will result
from our choices. When we make choices which result in the correct consequences, then we are acting
morally, when we make choices which result in the incorrect consequences, then we are acting
immorally. The term Telos means the end.
The teleological theory of ethics is based on the end results of the consequences. The teleological
morality is based on measuring the probable outcomes of the consequences of the decision taken. This
theory on the surface appears easy and simple to apply with a majority rule or profit. While taking such
decisions there are various stakeholders and the happiness of one may result in the unhappiness to
many. The question arises as to how to measure happiness, who should b the beneficiary and what
should be the measurement yardsticks.
The most representative of teleological ethical system is Utilitarianism which seeks for utility of goods of
greatest number. Utilitarianism is liberal and helps in resolving the differences in opinion. It is able to
describe much of the process of decision making of managers. In the utilitarianism concept some section
of individuals may suffer great harm while others receive some benefits. Distributive is the second
teleological approach to ethical decision making which is based on the concept of fairness. This theory
basically states that there should be an equitable distribution of goods and services. In the utilitarian
and the distributive concepts every person is counted equally and all should be considered important I
happiness or unhappiness.
Teleology is the approach to determine the ethics of an act by looking to the consequences of the
decision (the ends) It is the doctrine of final causes of things. Teleological theories deter-mine the ethics
of an act by looking to the consequences of the decisions or the ends. The teleological morality of a
decision is determined by measuring the possible outcome or consequences. The theory most
representative of this approach is the utilitarianism, which seeks as its end the greatest 'good' or 'utility'
for the greatest number.
Q. Explain deontology a relativist perspective (8 marks)
The word deontology comes from the Greek roots deon, which means duty, and logos, which means
science. Thus, deontology is the "science of duty."
The deontological perspective is sometimes stated simply as: "Do to others as you would have them do
to you." The root word deon is from the Greek meaning "obligation" or "commitment".
The philosophical theory of deontology is identified that the basis of ethics is the obligation or the duty
to do what is "right". What is "right" comes from an idealized notion of what a better world ought to be.

6. But, if asked, "What is the 'right' thing to do"? Then it is a bigger question to be answered. Telling the
truth, for example, is a moral obligation, not because it may be instructed by religion. Truth telling is a
duty because we understand what it is like to be lied to. We can imagine that universally others share
this dislike of being lied to. Falsehoods create distrust, undermine relationships, and if acted on, can lead
to disaster. To the deontologists, this is not a utilitarian value - tell the truth only when it serves "good"
purposes.
To deontology, truthfulness is simply "right" as an ideal; and, we assume the obligation to commit to the
Ideal as something of value in, and of itself. We opt to tell the truth because we understand that it is the
"right" thing to do. Deontology suggests that there is a universal Ethic that is available to all of us.
This is an empirical problem and just as it is not possible to "prove" the existence of God, it is not
possible to "prove" the existence of universal truths not rooted in scientific inquiry. There are many
cases of business decisions based simply on doing the "right" thing. Deontology is the approach to
determine the ethics of an act by looking to the process of decision (the means). It is the science of duty.
A deontological system is based on rules or principles that govern decisions.
A German philosopher Immanuel Kant developed perhaps the most persuasive and a fully articulated
version of ethics further measured by the rightness of rules, rather than by the consequences. In this
formalistic view of ethics, the rightness of act of act does not depend on all the results of the act. Kant
believed in the key moral concept of goodwill.
The moral person is one of the goodwill and that the person renders ethical decisions based on what is
right, regardless of the consequence of the decision. Moral worth springs from one's decision to
discharge one's duty. The next question arises as to how does a person of goodwill know that what is
actually right? Here Kant says that it will be in accordance with the categorical imperative or he as a
rational person would prescribe as universal law to be applied to the whole of mankind. Categorical
imperative is a notion that every person should act on only those principles that they as a rational
person would prescribe as universal laws to be applied to the whole of mankind.
The moral rule is categorical i.e.. it prescribes a rule for the means without concern for the end it
produces. To Kant, what is right for one is right for all and each of us can discover that 'right' by
exercising our rational faculties. Kantian rules recognize universal rights such as freedom of speech and
expression, freedom of consent and right to privacy. Another deontological approach is fro the
perspective of religion. No theory or approach to the evaluation of actions is more of rule based than
religion based. Faith rather than reason and intuition or secular knowledge provides the foundation for a
moral life that is built on religion. Finally some philosophers have also argued for virtue ethics in recent
years claiming that the key to good ethics lies not in rules, rights and responsibilities but in the classic
notion of character. Virtue ethics applauds the person who is motivated to do the right things and who
cultivates that motivation in daily lifestyle or conduct.

7. Q Describe Types of Deontological Ethics (12 marks)
These theories of the GOOD hold that actions are intrinsically right or wrong. They are right or wrong in
themselves and irrespective of their consequences. Deontologists hold that one cannot undertake
immoral acts like torture of spies even if the outcome is morally preferable, such as the early ending of a
war.
It is contrasted with Teleological / consequentialist ethical theories. In a `Deontological' system of ethics
the consequences of an action are generally irrelevant to moral assessment. Rather, morality comes
about from a rational agent's recognition of its duties toward others and these duties can be grounded
in different ways, from divine revelation to objective rational principles. While each type of
Deontological theory finds the locus of our moral obligations in different places, they all contend that
'goodness' resides in our ability to recognize and keep moral obligations; the consequences of our
actions are of only secondary concern, if at all.
Divine Command: The most common forms of deontological moral theories are those which derive their
set of moral obligations from God. According to many Christians an action is morally correct whenever it
is agreed with the rules and duties established by God.
Duty Theories: According to this theory, an action is morally right if it is in concurrence with a set of list
of duties and obligations, specific to be adhered.
Rights Theories: In this theory, an action is morally right if it adequately respects the rights of all humans
or members of society. This is also sometimes referred to as Libertarianism, the political philosophy that
people should be legally free to do whatever they wish so long as their actions do not interrupt upon the
rights of others.
Contractarianism Theory: This theory speaks about any action that is said to be morally right if it is in
accordance with the rules that rational moral agents would agree to observe upon entering into a social
relationship or a contract for the mutual benefit. Monistic Deontology Theory: This is a theory of an
action which is morally right if it agrees with some single deontological principle which guides all other
subsidiary principles.
Q. Describe the Problems with Deontological Ethics (8marks)
Deontological moral systems are characterized primarily by a focus upon adherence to independent
moral rules or duties. Thus, in order to make the correct moral choices, we simply have to understand
what our moral duties are and what correct rules exist which regulate those duties. When we follow our
duty, we are behaving morally. When we fail to follow our duty, we are behaving immorally. A common
criticism of deontological moral systems or theories is that they provide no clear way to resolve conflicts
between moral duties.
Some critics argue that deontological moral Systems are, in fact, consequentialist moral systems in
disguise. According to this argument, duties and obligations which set forth in deontological systems are
actually those actions which have been demonstrated over long periods of time to have the best

8. consequences. Eventually, they become protected or preserved in custom and law and people stop
giving them or their consequences which are much thought that they are simply assumed to be correct.
Deontological ethics are thus ethics where the reasons for particular duties have been forgotten, even if
things have completely changed. A second criticism is that deontological moral systems do not readily
allow for grey areas where the morality of an action is questionable. They are, rather, systems which are
based upon absolutes both principles and conclusions. In real life, however, moral questions more often
involve grey areas than absolute black & white choices.
We typically have conflicting duties, interests, and issues that make things difficult.
Another common criticism of deontological ethical theories is the question to justify which duties qualify
and those which we all should follow irrespective of the consequences. Duties which might have been
valid in the 18th century are not necessarily valid now, but who is to say which ones should be
abandoned and which are still valid? And if any are to be abandoned, how it can be said that they really
were moral duties back in the 18th century? If these were the duties or obligations created by God, how
can they possibly stop being duties today?
Many attempts to develop deontological systems focus on explaining how and why certain duties are
valid at any time or at all times and how to know or understand the same. Religious believers are often
in a difficult position of trying to explain how believers of the past treated certain duties as objective.
These are all reasons why irreligious atheists rarely subscribe to deontological ethical systems though it
cannot be denied that they can at times have ethical insights to offer.
Q Give an account of virtue theories (8 marks)
Virtue ethics goes back to the ancient Greek philosopher Aristotle. According to virtue theory, ethics is
primarily about agents, not actions. Being good is thus seen as primarily a matter of character rather
than of deeds. In general terms, virtues are character traits, dispositions to act in certain ways which is
good to possess. They are to be contrasted with vices, character traits that are bad to possess. On
Aristotle's account, virtues always fall between two extremes, vices of excess and deficiency. The virtue
courage thus falls between foolhardiness which is a vice of excess and cowardice which is a vice of
deficiency.
Virtue theory or normative ethical theory concentrates on the moral character of the agent i.e..,
individual or an organization. According to this theory, we ought to have certain character traits like
compassion, courage, generosity etc and these tend to be visible in our actions. We therefore should act
in ways that exhibit the virtues even if that means doing what might generally be seen as bad or bringing
about undesirable consequences or results.
Virtue ethics or virtue based ethical theories place much less emphasis on what rules people should
follow and instead it focuses on helping people to develop good character traits, such as kindness and
generosity. These traits will in return allow a person to make correct and proper decisions later in life or
an individual and the organization.

9. Virtue theorists also emphasize the need for people to learn how to break bad habits of character, like
greed or anger. These are called vices and stand in the way of becoming a good person. Virtue ethics
describes the character of a moral agent as a driving force for ethical behavior which derives rightness
or wrongness from the outcome of the act itself rather than character.
The difference between these three approaches to morality tends to lie more in the way moral
dilemmas are approached than in the moral conclusions reached. For example, in an argument that lying
is wrong because of the negative consequences produced by lying, though a consequentialist may allow
that certain foreseeable consequences might make lying acceptable.
A deontologist might argue that lying is always wrong, regardless of any potential Good that might come
from lying.
A virtue ethicist, however, would focus less on lying in any particular instance and instead consider what
a decision to tell a lie or not tell a lie said about one's character and moral behavior.
As such, lying would be made in a case-by-case basis that would be based on factors such as personal
benefit, group benefit, and intentions. Virtue theorists argue that developing morally desirable virtues
for their own sake will help aid moral actions when such decisions need to be made. Virtue ethics refers
to a collection of ethical philosophies that place an emphasis on being rather than doing.
Q.Give an account of Justice and fairness (2 marks)
Justice means giving each person what he or she deserves or, in more traditional terms, giving each
person his or her due. Justice and fairness are closely related terms that are often today used
interchangeably. While justice usually has been used with reference to a standard of rightness, fairness
has been used with regard to an ability to judge without reference to one's feelings or interests; fairness
has also been used to refer to the ability to make judgments that are not overly general but that are
concrete and specific to a particular case.
According to the Distributive Justice theory two things must happen: (a) the act should be ethical and (b)
the act should lead to an equitable distribution of the outcome that is goods and services. The
philosophy is aimed at enhancing the good of all the society members and for mutual advantage.
Q. Explain the Principle of Max-Min (2 marks)
The Maxi-Min Principle is the Principle of the GOOD, i.e.. MAXIMIZE Liberty (opportunities) and
MINIMIZE Inequalities (differences, disadvantages)
The most widely discussed theory of distributive justice in the past has been The Theory of Justice where
Rawls proposes the following two principles of justice:
1. Each person is to have an equal right to the most extensive total system of equal basic liberties
compatible with a similar system of liberty for all.

10. 2. Social and economic inequalities are to be arranged so that they are both: (a) To the greatest benefit
of the least advantaged, consistent with the just savings principle, and (b) Attached to offices and
positions open to all under conditions of fair equality of opportunity.
Q Explain the Four Types of Justice (2 marks)
1. Distributive justice is concerned with the fair distribution of society's benefits and burdens.
2. Retributive justice is concerned with the just imposition of punishments and penalties on those who
do wrong.
3. Compensatory justice is concerned the just way of compensating people for what they lost when they
were wronged by others.
4. Procedural Justice is a fair decision practice with rules and processes to be fair.
Q. Explain the Due Care Theory (12 marks)
This theory is all about what the company owes to its customers based on ideas that would interest
buyers and customers and are susceptible to company purposes.
Because of producer in the good position, the consumer interests will not lose its benefits or product
offerings that will not differ for the customer.
Here customers must depend on the producer's ability so that they not only they get the appropriate
product that they claimed but also it is quite necessary to create awareness to retain the merit of the
product even though the company would not take the responsibility and the customer would also
accept with the products offerings and rejections.
The theory speaks about somebody working to understand the needs and requirements of the
customers so that it can be used in offering and meeting the customers’ expectations. A manufacturer
has a duty to take any reasonable precaution against a product having a defect that is likely to cause
harm. A justification is that the manufacturer must take care due to his advantaged position (greater
knowledge). The idea is that the stronger have more duties. So, if a manufacturer fails to do this, he is
liable for damages with harmful results.
The Conventional ethics speaks about Play to Win. Occasional bluffing is ok on ethics of a particular
game and warranted interns of economic necessity.
Doctrine of Means says that only man who has both consciousness and reason, is capable of happiness
which gives a conscious performance of a higher purpose.
The highest purpose of man is to imitate God. Specific virtues Aristotle listed those values by his culture
and time. They are courage, temperance, liberality, self respect, friendliness and justice. Aristotle
stressed motive and also suitability of action to circumstances. The Entitlement theory is the theory
which gives all individuals contractual freedom.

11. Any interference in the freedom of the individuals would amount to unethical practice. Every individual
has right for self development and self fulfillment.
The theory of Aristotle's ethics is based on the concept of virtue which claims that the key to good ethics
lies not in rules, rights and responsibilities but in the classic notion of character. As Aristotle contends
our attention should be given to strategies for encouraging desirable character traits such as honesty,
fairness, compassion and generosity.
Virtue ethics applauds the person who is motivated to do the right things and who cultivates motivation
in daily conduct. One would know the right things by exercising judgments rather than by applying a
universal set of rules. Aristotelian Moral Virtues are :
• Courage,
• Self Control,
• Generosity,
• Magnificence,
• High Mindedness,
• Gentleness,
• Friendliness,
• Truthfulness,
• Wittiness,
• Modesty.
Virtue ethics necessarily presupposes a view about human nature and the purpose of life. It needs some
context. This point is worth stressing the possibility of applying virtue ethics to business depending on a
context that includes some conception of the nature and purpose of business.
Q.Explain the integration of various perspectives (8 marks)
Different perspectives have given different meanings and diagonals of studying the situation along with
better and ethical ways of dealing with it in the society. The relationship between ethics and business
management has been debated since the industrialization period as many management thinkers argued
that business has nothing to do with ethics.
The church or temple had say in all spheres of human activity including business, and business whether
it was part or different from society had different viewpoints and perspectives.
The Integrated View speaks that by integrating business and ethics, it exists as an economic activity
making profits for its own survival and growth. The business or industry which exists in the society has to

12. be responsible and meet its obligations and meeting profits through ethical means. Society has a
number of subsystems; some are interlinked, interdependent and overlapping.
The Separatist View speaks that business should concentrate in business activity of production, profit
costs. Certain social issues like government and society has to be ignored to an extent. Thinking too
much of ethics in business may perhaps take one to olden church and temple days. The efficiency of
industry and business will go down. Business should only obey laws of the land and achieve its economic
goals and business goals should dominate the social values. This view shows the interaction between
business and ethics.
The Unitarian View considers business as a subsystem of a society hence business has in it the morals of
the society. In medieval era the churches prescribed that business must do well to the society. Thus
business is the subset of moral structure of society.
Key considerations in Globalization:
Execute and Integrate: Strategize, Plan, Execute and Integrate;
Organize and mobilize leadership team with international experience
Define details of the operating model, organization, branding and Practices
Align leadership and middle management
Acknowledge and realize the value in diversity
Communicate with Employees
Maintain momentum and speed
Communicate with Customers / Shareholders
Plan and execute integration to realize synergies
Formulate to-be corporate culture and plan for change initiatives
Integrate and implement operating model
Q. Explain the concept of cognitive moral development (12 marks)
Educators can utilize that has been demonstrated to enhance students' moral development. The hope is
that by practicing ethical dilemma there will be more likelihood to behave in a The epistemology of
ethics divides into cognitive and non-cognitivitsm.
The distinction professional manner when faced with ethical dilemmas in the work place. that is often
perceived as equivalent to that between descriptivist’s and non-descriptivist’s.
Code of ethics are statements of values and principles which define the purpose of the

13. Non-cognitive may be understood as the claim that ethical claims reach beyond the scope of company.
These codes seek to clarify the ethics of the corporation and to define its responsibilities human
cognition or as the (weaker) claim that ethics is concerned with action rather than to different groups of
stakeholders as well as defining the responsibilities of its employees. with knowledge.
Cognitive can then be seen as the claim that ethics is essentially concerned Psychologist Lawrence
Kohlberg built a comprehensive theory of moral development claiming g . with judgments of the same
kind as knowledge judgments namely about matter of fact.
Non- Kohlberg via interviews with children as they aged, was able to identify moral development that
moral judgment evolves and improves primarily as a function of age and education. descriptivist’s and
non-cognitivists will generally tend to argue that ethics do not require a specific deontology since ethical
propositions do not refer to objects in the same way that descriptive, as a movement through distant
stages, with the later stages being viewed as more advanced propositions do. Such a position may
sometimes be called anti-realist.
Realists on the other than the earlier ones. He identified six universal stages grouped into three levels;
hand are left with having to explain what kind of entities, properties or states are relevant for Level
1 : Preconvention Level whereby the individual is responsive to the cultures rules ethics, and why they
have the normative status characteristic of ethics. and labels of right and wrong, but interprets these
labels in terms of physical or self indulgent consequences to the individual or in terms of the physical
power of those who enforce the Cognitive moral development is cognitive wherein it attempts to
explain how a person thinks in contrast to an emphasis on emotions or learned associations
2 : Conventional Level which confirms the individuals focus on maintaining the levels. Kohlberg's theory
of moral development posits that individuals advance along a stage expectations of the family, group or
culture regardless of the consequences. This attitude is sequence continuum that represents a series of
cognitive levels. Most individuals move upwardly one of the conformity and loyalty. It is to meet the
expectations of others, pleasing others and through these developmental levels beginning with what is
termed "pre-conventional morality" adhering to stereotypical images and states that doing right is ones
duty, hence uphold the social contract and order. to the second, termed "conventional morality" and
sometimes to the highest level, called "post- conventional morality." Each level has two developmental
stages, and individuals progress
Level 3 : Post Conventional Level wherein current laws and values are relative, laws and upward in a
invariant sequence. In other words, individual progresses from stage to stage duties are obeyed on
rational calculations to serve the greatest number. It also follows self in a logical sequence.
Theoretically, stages cannot be skipped. Rest states that one way in chosen universal ethical principles
and in the event of conflicts, principles override laws which to view the stages of cognitive moral
development is to view them as six conceptions of Contrary, at the post conventional level, the
individual is able to reach independent moral judgment that may or may not confirm to conventional
societal wisdom.

14. Thus the level 2 how best to organize social cooperation in society. Cognitive moral development is
developmental in that thinking skills require advancement along a stage sequence continuum of
cognitive manager may refrain from sexual harassment because he has to obey the law whereas, at level
3, the manager might refrain from doing so as his decision is based on self chosen universal levels.
Often, the best way to understand the dilemma approach is to practice leading a small group of students
in discussing an actual dilemma.
Q What Are The Ethical Issues Helping In Affective Decision Making: (8 marks)
Ethical decision making affects more than our working life. It is a tricky business, but we can situation,
develop several options, evaluate and assign a value to each option, select make it more palatable,
workable decisions if we follow these five simple steps;
1. Think — Is it an ethical issue? Being ethical does not always mean following the lay and just because
something is possible does not mean it is ethical, hence there is global debate on biotechnology
advances as cloning. Ethics and religion do not always concur. Listen to your instincts if it feels
uncomfortable making the decision on you own, get others involved and use their collective knowledge
and experience to make more considered decision.
2. Get the facts — It is very important to gather facts from different sources before w( self rely and
proceed with our own beliefs. Reconsider on what you know and what you don't know? Who are the
people affected by your decision? Have they peer consulted? What are your options? Have you
reviewed your options with someone you respect and adhere on?
3. Evaluate alternative actions — There are different ethical approaches which may help you make the
most ethical decisions. Utilitarian Approach — which action results in the most good and least harm? *
Rights best approach — Which action respects the rights of everyone involved? * Fairness or justice
approach — which action treats people fairly. * Common good approach — which action contributes
most to quality of life of affected people? * Virtue Approach — Which action embodies the character
strengths that you value?
4. Test your Decision — Take time rather than a faulty or a hurried wrong decision. Evaluate — could
you comfortable explain your decision to your mother? To the man in the street? On television? If not,
you may have to rethink your decision before you take any action.
5. Just Do it — But what did you learn? Once you have made the decision, then don't waste time in
implementing it. Set a date to review your decision and make adjustments if necessary. Often decisions
are made with the best information to had at that time, but things do change, and your decision making
needs have to be flexible enough to change too.

15. Q. Explain the Role of Corporate Culture and Leadership for business ethics.(8 marks)
A company's culture can have an effect on the quantity and quality of the new product that it develops.
Every organization has a culture which is represented by a shared pattern of beliefs, expectations and
meanings that influence and guide the thinking and behavior of the members of an organization or a
group.
A firm's culture can be its sustainable value which offers its direction during challenging times. Though
somewhat ethereal, it is important to consider the cultures of firms because it is the culture that
encourages and influences decision making. Consider a firm with a culture to Play throughout the day
with Ping Pong tables in the offices and a cafeteria replete with board games and other distractions, but
everyone is also expected to remain in the office until all work is complete for that day, no matter how
late that goes. If you enter that firm with a 9 to 5 attitude where you intend to give your best to work
throughout the day but then to leave as the clock strikes 5, you might not have the Fit or suitability for
that company or culture.
The same might hold true for a firm's value. If you join a firm with a culture that supports other values
than those with which you are comfortable, there ought to be values conflicting for better or for the
worst. Usually there are no cultures which can be pointed out as most effective or ineffective, it is self-
reinforcing and socially learned. Strong and cohesive cultures are like double edged swords which are
linked to organization's performance.
Cultures are rooted in successful problem solving and actions and its influence operates outside our
awareness with changes that takes time and involves multiple strategies. Consider a firm that has
lingered for decades under weak management, a lack of any internal corporate control, a little oversight
and on the other hand a sales performance based significant bonus plan and a product that has been
successful because it has suited the needs and now that the need has changed slightly and the firm is
under pressure to survive.
Here considering the way that we have always done it, employees may have the opportunity to cut
corners and make decisions that would never be tolerated in another culture. When you have got the
incentives in the form of higher pay for higher profits taking the risk, the system ought to atleast throw
up some red flags.
People are going to over-compete, take risks and sometimes break laws, this is precisely the
environment at many organizations. Does a company's culture affect the quality and quantity of new
product ideas that it generates? For example, if a company is focused on meeting customer needs, does
that mean it will be less capable of churning out game-changing products? To understand the role that
corporate culture plays in new product development we made a survey from companies in the
consumer packaged goods industry. Globalization is the process of change seen with increasing
interdependence, integration and interaction among people and companies in disparate locations
around the globe. Globalization strategies take different forms for different companies and
Multinational companies with specific strategies and operate for each different country

16. Transnational companies implement strategies to gain worldwide efficiency and local advantages.
International companies with a global strategy but with local adaptations Worldwide for companies with
a "one-size-fits-all" strategy in all the different countries. There are various examples of individual CEO's
and their companies addressing some or all of the points outlined in the Framework for Action.
Collective Leadership at national, global or industry level, involves not only in private sector but also in
the public sector and civil society organizations.
Q. Comment on Individual and Organizational factors in terms of business ethics (8 marks)
People perceive that the ethical leaders' goal is not simply job performance, but performance that is
consistent with a set of ethical values and principles. And ethical leaders demonstrate based on needs
then the steps following become simple and effective.
To understand what a caring for people or employees and external stakeholders in the process.
However all of this relationship is, how to bring one about, how to enhance one, and why relationships
are traits and behaviors must be visible. If an executive is quietly ethical within the confines of
diminished and lost, one must understand the power of a person's needs. The most important the top
management team, but more distant employees don't know about it, they are not likely things in the
world are the things we believe that we needs which affect opinions, attitudes to be perceived as an
ethical leader.
Traits and behaviors must be socially visible and understood and viewpoints. Generally we are more
aware of unfulfilled needs than the ones that are in order to be noticed and influence perceptions.
People notice when an executive walks the consistently met. Fundamental life needs in particular are so
commonly accepted that we talk and acts on concerns for the common good, society as a whole and the
long term because usually overlook them. No one is aware of the air breathed, the ground walked on,
the water executives are expected to be focused on the financial bottom line and the short term
demands drunk, and yet these are the needs we miss most when gone.
The key to a good interpersonal of stock analysts. When they focus on these broader and longer terms
concerns, people notice, relationship is simple, once we understand the role that needs to be played in
making a Finally making courageous decisions in tough situations represents another way how ethical
relationship weak, moderate, average, or strong. Leaders get noticed. Let's give the word relationship a
different definition from the dictionaries. To unlock the root of corporate culture is the organizations
beliefs and philosophy about how its meaning of the word often leads to greater understanding. "A
good relationship is mutual affairs ought to be conducted. The reasons why it does things the way it
does.
A company's filling of needs. When two people have strong needs and each fills the other's needs, there
is a culture is manifested in the values and business principles that management preaches and powerful
interpersonal relationship.
When two people have weak needs and each fills the practices in its ethical standards and official
policies in its stakeholders relationships. In the other's needs, there is a mild relationship. When either

17. person has strong needs or those needs traditions the organization maintains in its supervisory practices
in employees attitudes and that are not being filled, there is a poor relationship.
When either has weak needs and those behavior in the legends that people about happenings in the
organizations in the peer pressures needs are not being filled, there is a mild relationship." When a weak
need is not being filled, that exists in the organizations politics and in the chemistry and the vibrations
that permeate there isn't much caring either way.
To enhance any relationship is quite simple, just find out the work environment. Beliefs and practices
that become embedded in a company's culture what the other person needs and then fill that need. To
end a relationship the reverse is true. can originate anywhere from one influential individual , work
group, department or division Find out what the other person needs and keep those needs unfilled.
Yes it sounds as simple as from the bottom of the organizational hierarchy or the top. /very often many
components of that. The great principle of correspondence states, "As above, so below, as below so
above." the culture originate from a founder or certain strong leaders who articulated them as a
company When we know the key to happiness we can also see in reverse the key to unhappiness.
Philosophy or as a set of principles to which the organization should rigidly adhere or as Without
realizing it, when we know how we be a failure, we also know how to be a successful. company policies.
When we are successful at failing in interpersonal relationships, we also know how to be
Q How Do Interpersonal Relationships in Organization Play a Major Role (8 marks)
As the child grows needs also change. Hence it is essential that the parent recognize the
Proper communication, understanding and mutual efforts are the binding basis of any relationship to
sustain and grow and same is the case with the interpersonal relationships between the employees in a
workplace. There is cutthroat competition in any and every field of work. With the market expectations
and criteria for growth and development, one cannot afford to let deviations and hurdles like conflict
among employees to spring up in one's organization.
It is quite essential to have a healthy and friendly environment at work. A conflict-filled environment will
not only hamper the output but will also affect the quality of the employee's work and their morale.
When it is realized that interpersonal relationships are changes.
As it is with the child to the parent, so it is with the parent to the child. When you ask, "How can I help
better this relationship?" you are asking a wrong question. To get the correct answer we have to ask the
right question. A better question would be, How can I fill this person's needs? How do I discover and
recognize needs? It is sometimes easier to recognize another person's needs while our own needs are
often hidden by fear, guilt, and programming.
An interpersonal relationship is a relatively long term association between two or more people. Recent
ideas on emotional intelligence and servant relationship have identified the quality of interpersonal
relationship as a key factor affecting management and organizational performance. Develop a written
agreement: If the parties come to agreement or consensus, the agreement(s) should be written and

18. shared with each party. Set a date for follow-up: Deadlines for action and follow-up are part of the
written agreement. Follow-up might be a meeting interaction, telephonic call or an event during which
both parties can report about how the agreement is working. Case Article for Analysis:
Q. Give an account on Justice and Fairness (8 marks)
Developed by Maziuel Velasquez, Claire Andre, Thomas Shanks, S.J., and Michael J. Meyer When
Beatrice Norton was fourteen, she followed in her mother's footsteps and began working in the cotton
mill. In 1968, after a career in the mill, she had to stop working because of her health. Years of exposure
to cotton dust had resulted in a case of "brown lung," a chronic an sometimes fatal disease with
symptoms similar to asthma and emphysema.
In 1977, she testified at a congressional hearing, asking that the government require companies to
provide disability compensation for victims of the disease similar to the compensation companies
provided for other similar diseases. I worked in the dust year after year ... I got sicker and sicker. In 1968
I suddenly had no job, no money, and I was too sick to ever work in my life again.
State legislators have proven in two successive sessions that they are not going to do anything to help
the brown lung victims, so now we come to you in Washington and ask for help. We've waited a
longtime, and many of us have died waiting. I don't want to die of injustice. Another woman, Mrs. Vinnie
Ellison, spoke bitterly about the way her husband had been treated when the illness caught up with him
after twenty one years at a cotton mill: In the early sixties he started having trouble keeping up his job
because of his breathing.
In 1963 his bossman told him that he had been a good worker, but wasn't worth a damn anymore and
fired him. He had no pension and nothing to live on. My husband worked long and hard and lost his
health because of the dust. It isn't fair that the mill threw him away like so much human garbage after
he couldn't keep up his job because he was sick from the dust.
To Mrs. Norton and Mrs. Ellison, receiving compensation for the debilitating effects o brown lung similar
to that given to other diseases was a simple matter of justice. In making their case, their arguments
reflected a very long tradition in Western civilization. In fact, no idea in Western civilization has been
more consistently linked to ethics and morality than the idea of justice.
From the Republic, written by the ancient Greek philosopher Plato, to A Theory of Justice, written by
the late Harvard philosopher John Rawls, every major work on ethics has held that justice is part of the
central core of morality.
Justice means giving each person what he or she deserves or, in more traditional terms, giving each
person his or her due. Justice and fairness are closely related terms that are often today used
interchangeably.
There have, however, also been more distinct understandings of the two terms. While justice usually has
been used with reference to a standard of rightness, fairness often has been used with regard to an
ability to judge without reference to one's feelings or interests; fairness has also been used to refer to

19. the ability to make judgments that are not overly general but that are concrete and specific to a
particular case. In any case, a notion of desert is crucial to both justice and fairness.
Kinds of Justice
There are different kinds of justice. Distributive justice is a teleological approach to ethical decision
making that defines ethical acts as those that lead to an equitable distribution of good, and services. It
refers to the extent to which society's institutions ensure that benefits burdens are distributed among
society's members in ways that are fair and just. When the, institutions of a society distribute benefits or
burdens in unjust ways, there is a strong presumption that those institutions should be changed. For
example, the American institution of slavery in the pre-civil war South was condemned as unjust
because it was a glaring case o treating people differently on the basis of race. A second important kind
of justice is retributive or corrective justice.
Compensatory justice and Retributive justice are concerned with rectifying the wrongs. Generally
compensating the victims is the just way of correcting wrongs in private dealings such as losses resulting
from accidents and the failure to fulfill contracts whereas retribution that is punishment is the just
response to criminal acts such as assault or theft. It other words, it refers to the extent to which
punishments are fair and just. In general, punishments are held to be just to the extent that they take
into account relevant criteria such as the seriousness of the crime and the intent of the criminal, and
discount irrelevant criteria such as race. It would be barbarously unjust, for example, to chop off a
person's hand for stealing a dime, or to impose the death penalty on a person who by accident and
without negligence injured another party. Studies have frequently shown that when blacks murder
whites, they are much more likely to receive death sentences than when whites murder whites or blacks
murder blacks. These studies suggest that injustice still exists in the criminal justice system the United
States. Yet a third important kind of justice is compensatory justice.
Compensatory justice refers to the extent to which people are fairly compensated for their injuries by
those; who have injured them; just compensation is proportional to the loss inflicted on a person. This is
precisely the kind of justice that was at stake in the brown lung hearings. Those who testified at the
hearings claimed that the owners of the cotton mills where workers had been injured should
compensate the workers whose health had been ruined by conditions at the mills.
The foundations of justice can be traced to the notions of social stability, interdependence, and equal
dignity. As the ethicist John Rawls has pointed out, the stability of a society—or any group, for that
matter—depends upon the extent to which the members of that society feel` that they are being
treated justly. When some of society's members come to feel that they are subject to unequal
treatment, the foundations have been laid for social unrest, disturbances, and strife. The members of a
community, Rawls holds, depend on each other, and they will!) retain their social unity only to the
extent that their institutions are just.
Moreover, as the philosopher Immanuel Kant and others have pointed out, human beings are all equal
in this respect: they all have the same dignity, and in virtue of this dignity they deserve to be treated as
equals. Whenever individuals are treated unequally on the basis of characteristics that are arbitrary and

20. irrelevant, their fundamental human dignity is violated. Justice, then, is a central part of ethics and
should be given due consideration in our moral lives. In evaluating any moral decision, we must ask
whether our actions treat all persons equally.