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1. Business Ethics

2. introduction
 Ethics is the branch of social science. It deal with morality. It follows the rule what
is right and what is wrong.
 Business Ethics related to ethical issues arise while doing business such as insider
trading, bribery, discrimination etc.
 Business ethics also known as Corporate ethics.

3. Meaning of Ethics
 Ethics is derived from the LATIN word 'mores and GREEK word 'ethikos' pertains to
character, moral and values.
 Ethics- It can be defined as a set of principles used to determine what is "right"
when it comes to the conduct or behavior of an individual.
 It deals with moral values and social values.
 Ethics are very helpful when it comes to decision making. Because they have set of
rules and principles.

4. Meaning of Business Ethics
 Business ethics are used in the world of business. Business ethics are set of code of
conducts, moral standards, principles used by organization to take decision
related within the organization.
 Acc.to crane- "Business ethics is the study of business situation, activities and
decisions where issues of right and wrong are addressed“
 Acc.to Baumhart- "The ethics of business is the ethics of responsibility. The
business man must promise that he will not harm knowingly”

5. FEATURES OF BUSINESS ETHICS
 Code of conduct
 Based on moral and Social values
 A Discipline
 Provides basic framework for doing business properly
 Related to human aspect
 Not against profit making
 Develop personal Dignity

6. OBJECTIVE OF BUSINESS ETHICS
 To Establish and maintain standards for the business.
 social and environmental commitment.
 Fair competition
 Promote Understanding
 Establishing reporting procedures
 Building trust
 Accountability
 Safety of themselves

7. Social Responsibilities of Business
Stakeholders:
Every business has a social responsibility
to anyone who comes in contact with the
business namely the stakeholders!
Shareholders:
Responsibility to provide best return on
investment, share profits accordingly
and increase share price
Employees:
To pay a fair wage, create proper
working conditions and avoid
discrimination
Customers:
Produce reliable products, not mislead
consumers through advertising & deal
with complaints
Suppliers:
To honour contracts & pay promptly
Government:
Pay all taxes due, obey national laws
and co-operate with any decisions the
government makes

8. Coporate Governance
 Coporate Governance is meant to run organisation in proper manner so that all
stakeholders, creditors, customers, employees, societies, government are dealt
fairly.
 Integrated business management system
 ISO certification
 Risk management
 Training management system

9. Business ethics and coperate governance
 They complement eachother, an ethical organization is most likely to adopt good
governance practices.
 Good governance means:
I. Transperancy
II. Protection of rights of stakeholders
 Ethical guidelines:
a) Honesty and integrity.
b) Proper disclosure
c) Compliance of all laws
d) Act in good faith with due care, competance and duediligence
e) Avoid conflicts in personal and professional relationship.

10. Features of an ethical organization
 Ethical imagination
 Ethical identification
 Ethical evaluation
 Tolerance of ethical disagreement
 Integration of managerial and ethical competancy
 Sense of ethical obligation

11. IMPORTANCE OF BUSINESS ETHICS
 Reduced business malpractices, improves performance
 Consumer satisfaction
 Creates good image and improve customer's confidence; hence good reputation in society
 Safeguarding consumers rights
 Motivated employees
 Growth of firms as well as growth of employees
 Loyal investors
 Develop good relationship
 Better decision making
 smooth functioning

12. Ground Rules or principles of Business
Ethics
The following are some of the universal virtues which every human being or business
should imbibe, develop and practice to be ethical in life:
 Be trustworthy
 Keep an open mind
 Have respect for others, meet obligations
 Own responsibility
 Be fair in dealings
 Maintainance of proper record
 Be caring towards well being of others, play a role in the development of community

13. How Organizations Shape Ethical Conduct

14. How Organizations Shape Ethical Conduct
 Ethical Awareness
Code of Conduct Formal statement that defines how the organization expects and requires
employees to resolve ethical questions.
 Ethical Reasoning
Codes of conduct cannot detail a solution for every ethical situation, so corporations
provide training in ethical reasoning.
 Ethical Action
Helping employees recognize and reason through ethical problems and turning hem into
ethical actions
 Ethical Leadership
Executives must demonstrate ethical behavior in their actions.

15. Firms which follows Business Ethics
 Premier, Inc. - 15 Times Honoree
 Based In: Charlotte, North Carolina
 Ethics: Fair Employment, Environmental Impact
 Known For: Healthcare
Ensuring their own corporate operations protect and improve the environment.
Identifying and helping their clients choose responsible products and services
which are safe and effective, and yet minimize their environmental impact. In a
rapidly evolving healthcare industry, Premier is collaborating with more than 4,400
hospitals and 225,000 providers to improve the way care is delivered.

16. Firms which follows Business Ethics
 WM - 13 Times Honoree
 Based In: Houston, Texas
 Ethics: Recycling, Renewables, Inclusive Employment
 Known For: Waste Management, Environmental Services
Driven by a focus on maximizing resource value while minimizing environmental
impact, the company is tackling climate change and social inequities on different
levels. Their collection trucks run on compressed natural gas (CNG) as they roll in
and out of neighborhoods where they pick up waste for recycling. Former reclaimed
landfills are becoming solar fields with prime locations, as they are always close to
existing infrastructure.

17. Firms which follows Business Ethics
 Deere & Company - 15 Times Honoree
 Based In: Moline, Illinois
 Ethics: Equality, Recycling, CO2 Reduction
 Known For: Agricultural Machinery, Heavy Equipment
In 2020, the company was looking to reduce CO2 emissions on 90% of its
products. increase the use of sustainable materials, and recycle 85% of total
waste. In the previous year, Deere has seen an increase of women in global
management positions as well as an increase of non-white employees
in US management.

18. Firms which follows Business Ethics
 Fauji Fertilizer Company(FFC)
 Based in: Rahim Yar Khan, Pakistan
 Ethics: return on equity, advisory services, schooling
 Based on: Manufacturing fertilizer
By working round-the-clock for the betterment of farmers and consumers,
providing free farmer advisory services. FFC has proved to be an asset to Pakistan.
FFC sets an example of high dividend payout to the tune of over 90%. The
beneficiaries of this payout include hospitals and educational institutes for the
families of people who have sacrificed their today for the nation's tomorrow.