On Business Ethics

1. Business Environment
BusinessEthics

2. Introduction To Business Ethics

3. • Ethics refers to study of principles relating to right and
wrong conduct.
• Business Ethics are also know as Corporate Ethics.
• Business 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
WHAT ARE BUSINESS ETHICS ?

4. • Business ethics are implemented in order to ensure that a
certain required level of trust exists between consumers and
various forms of market participants with businesses.
• Making business decision that are counter to what is right
may result in short term profit but will lead to a huge loss on
the long term or even demise of the organization.
• Organizations that are committed to long term success
recognize and realize that creating a culture where ethical
behaviors are rewarded and encouraged is the ultimate key
to survival today and growth in the future.
WHY BUSINESS ETHICS ?

5. IMPORTANCE OF BUSINESS ETHICS

6. 1. CostandRiskReduction:
Companies which recognize the importance of business ethics will need to spend
less protecting themselves from internal and external behavioral risks.
2. LongtermGrowth:
Sustainable-growth comes from an ethical long-term vision which takes into
account all stakeholders. It leads to smaller but sustainable long term profits rather
than higher risks and short-lived profits.
3. PublicImage :
A company with good ethical background usually has a good public image in the
market and vice versa.
4. Investments:
Ethics of a business is responsibility to the investor and for that reason companies
with strong reputations in the field of ethical business behavior are also companies
that tend to attract more investment from people.

7. Sources of Business Ethics

8. 1. RELEGION :
It is one of the oldest foundations of ethical standards. Religion wields varying
influences across various sects of people. It is believed that ethics is a manifestation
of the divine and so it draws a line between the good and the bad in the society.
2. Culture:
Culture is a pattern of behaviors and values that are transferred from one
generation to another, those that are considered as ideal or within the acceptable
limits. It is the culture that predominantly determines what is wrong and what is right.
3. Law :
Laws are procedures and code of conduct that are laid down by the legal system
of the state. They are meant to guide human behavior within the social fabric. The
major problem with the law is that all the ethical expectations cannot be covered
by the law.

9. Ethical And NON-Ethical

10. ETHICAL
QUALITIES :
Leadership

11. Top 3 most ethical Examples
1.
The company has donated over $1 billion to renewable
energy projects, and has decreased its own footprint by
using energy efficient buildings and public transportation.
The company is also a staunch advocate of free speech,
which can be observed from its frequent conflicts with the
Chinese government. Google is also an open supporter of
gay rights. Yet all this pales in comparison to Google's status
as a paragon for employee benefits. Just to name a few,
Google employees have access to free health care and
treatment from on-site doctors, free legal advice with
discounted legal services

13. 2.
Given the fact that it was started by Bill Gates, one of
America's most generous philanthropists, it follows
that Microsoft would do well in following his example. The
tech company and its employees donate over $1 billion
yearly to charities and non-profit organizations. If that
wasn't enough, Microsoft's management and employee's
have also decided to tackle America's IT professionals
shortage through its TEALS program. Through the TEALS
program, Microsoft employees are encouraged to
volunteer at local schools to instruct students in computer
science, in the hopes that it will inspire them to enter the
technology industry.

15. 3.
Since 1988, the computer chip manufacturer Intel has been
trying to bolster its reputation through its efforts to
strengthen technological education. Through the Intel
Foundation, the company hosts the Intel Science Talent
Search and the international Science and Engineering Fair
to help encourage STEM (science, technology,
engineering, and mathematics) education for young
people. Intel is also interested in making these areas more
diverse; the company has many donation funds and
programs to encourage girls and underprivileged minorities
to study in these fields

17. NON – ETHICAL
QUALITIES :
Violenceof

18. Top 3 most Unethical Examples
1.
The Missouri based agricultural company has been named world's
most unethical company. The company leads the world's production
of genetically modified foods. Monsanto is infamous for unfairly suing
farmers who try to grow foods both ethically and organically. If the
lawsuit is not ruled in Monsanto’s favour, they still achieve their desired
results as the small-scale farms become bankrupt due to legal costs.
The company is also the creator of the highly poisonous herbicide
named Roundup ( a weed killer). This weed killer is both damaging to
ecology as well as humans. A 2008 scientific study found Roundup
can cause the death of unborn children.

20. 2.
The world's second largest oilfield services corporation,
Halliburton was granted a no-bid contract to restore Iraqi oil
during the invasion of Iraq. This contract was no doubt
given to Halliburton thanks to the influence of Former Vice
President Dick Cheney, who just so happened to be the
former CEO of Halliburton Corp. Whilst in Iraq, Halliburton's
subsidiary, KBR, was found to have unfairly overcharged for
it’s operations by approximately $1.3 billion. On top of the
Iraqi corruption, the company was fined for the bribery of
Nigerian officials in order to secure oil and gas deals in
Nigeria. Halliburton was forced to pay a fine of $559 million.

22. 3.
The oil and gas company has been criticised for a variety of
environmental and human rights abuses. Chevron has been
accused of dumping 18 billion gallons of toxic waste into
the Ecuadorian Amazon. Amazonian activists have claimed
Chevron ran a campaign of intimidation against them to
halt a pollution trial focused on the company. The oil giant
has also been involved in human rights abuses with a group
of Nigerian protestors campaigning against the company.
Two of the protestors were shot by the Nigerian Army who
had been transported to the scene by Chevron.

24. Conclusion

25. • Company leaders and employees can take genuine pride in their
accomplishments knowing they didn’t bend rules, cut corners, or
hurt people to accomplish their goals
• People produce best in an open, creative, ethical environment
• Quality, cost, availability, and other factors are not enough to
maintain customer loyalty. Customers are also looking at the
reputation of the company.
• Today’s investors will avoid a company that is not responsible and
ethical. Recent market declines have partly resulted from concerns
about unethical accounting practices.
• Without strong ethical values companies easily drift to the legal
edges— dangerous territory where bending and breaking the law
leads to lawsuits and indictments
• Companies that tolerate unethical practices in today’s transparent
era, will almost certainly be exposed, then boycotted and punished
in the marketplace