ETHICS AND VALUES AND THEIR IMPORTANCE

1. ETHICS AND VALUES AND THEIR
IMPORTANCE IN BUSINESS
ADARSHPAL SINGH
1401
MBA-2

2. Introduction
• Business ethics (also corporate ethics) is a form of applied
ethics or professional ethics that examines ethical
principles and moral or ethical problems that arise in a
business environment.
• It applies to all aspects of business conduct and is relevant
to the conduct of individuals and entire organizations.

3. What is business ethics?
If ethics deals with the choices (the morality of right vs wrong) that individuals
make in their personal and professional lives, then…..
Organizational business ethics is the application of these morality related choices
as influenced and guided by values, standards, rules, principles, and strategies
associated with organizational activities and business situations.

4. Why is it important?
• Ethics influence and contribute to:
Employee commitment.
Investor and customer loyalty and confidence.
Legal problems and penalties.
Customer satisfaction.
The ability to build relationships with stakeholders.
Cost control.
Performance, revenue, and profits.
Reputation and image.

5. History
• Business ethical norms reflect the norms of each historical
period.
• As time passes norms evolve, causing accepted behaviors
to become objectionable.
• Business ethics and the resulting behavior evolved as well.
• Business was involved in slavery, colonialism, and the
cold war.

6. Values
• Values are mainly related to individuals and since
they are related to justice, they remain the same for
everyone. Values do not change from individual to
individual. Values decide the standard of behavior.
Some universally accepted values are freedom justice
and equality. Other principles of values are love, care,
honesty, integrity and self respect. Ethics is common
to a group of individuals; the group may be religious
or professional. Ethics is mostly based on some code
or law and judgment of any action is based on code of
conduct or law.

7. • GURU RAVINDER NATH TAGORE had rightly said:
"In sin we lust after pleasures, not because they are truly
desirable, but because the red light of passion makes them
appear desirable, we long for things not because they are
great in themselves, because our greed exaggerates them.
These exaggerations break the harmony of our life at
every step, and we lose the true standards of Values"
There are many unethical and corrupt practices present
today in politics, business and other professions which
must be stemmed to safeguard the society.

8. Principles for Positive Business Ethics
• Business Ethics are built on Personal Ethics
• Business Ethics are based on Fairness
• Business Ethics require Integrity
• Business Ethics require Truth-telling
• Business Ethics require Dependability
• Business Ethics require a Business Plan
• Business Ethics apply Internally and Externally
• Business Ethics require a Profit
• Business Ethics are values-based
• Business Ethics come from the Boss

9. Common Types of Ethical Issues within
Organizations
• Health and Safety
• Technology
• Transparency
• Fair Working Conditions

10. Factors highlighting the importance of business ethics
• Long-term growth
• Cost and risk reduction
• Anti-capitalist sentiment
• Limited resources
• Ethics lays the strategic decision-making
• They increase employee retention
• An ethical business attracts investors.
• Ethical practices help in building and maintaining
reputation

11. Characteristics of Business Ethics
• A Discipline
• Ancient Concept
• Personal Dignity
• Related to Human Aspect
• Study of Goals and Means

12. Conclusion
• Ethics are the building block of our society and thus
should be the building block of our corporations.
• 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.” It
is essential not to let greed cloud judgment.
• The colossal missteps taken by Enron and Arthur
Andersen shall serve as a lesson for those that consider
straying from the path of morality.

13. References
• www.google.com
• www.wikipedia.com
• www.studymafia.org
• https://www.importantindia.com
• https://www.slideshare.net

14. Thanks