1. Business
Ethics
Prepared By :
OMAR SALEM
MOHAMMED AL-FERI
HANI AL-NAJJAR
AHMED ABU-ASSI
UNDER SUPERVISION :
MR.NIZAR NAIM

2. Business Ethics
Titles :
• Definition of business ethics
• Importance of business ethics
• Ethical business practices
• Unethical business practices
• Cost of using unethical business
• Business ethics and organization
• Business ethics and social responsibility
• Factors that influence business ethics
• Can ethical dilemma affect on business ethics?
• Business ethics theories
• Business ethics and globalization

3. Definition of business ethics
Business ethics are ethics that refer to the moral rules and
regulations governing the business world.
"Business ethics is the study of business situations, activities,
and decisions where issues of right and wrong are addressed.“
Business ethics are that functions which leads to choosing right
decision at right time which leads for the welfare of not only
business owners but also society, consumers, stakeholders
and its employees.
Business ethics now days have become so important that no
business can survive in market without following them.

4. Importance of business ethics
Business ethics help the organization to protect their
reputations .
Business ethics is needed to make business activities
fair and reasonable for consumers .
Business ethics is especially important in dealing with
customers , including customer service and
customer issues .
Business ethics help the organization in determining
obligations and duties toward individual and groups
outside the organization .

5. Ethical business practices
• Following are a few ethical business practices that should be followed to
build an honest reputation and ensure smooth running of the organization.
Investors: Ensuring safety of their money and timely payment of interest .
Employees: Provision of fair opportunities in promotions and training,
good working conditions, and timely payment of salaries
Customer: Complete information of the service and product should be made
available.
Personal information of the customers should not be used for personal gain .
Competition: Unscrupulous tactics and methods should be avoided
while handling competitors.
Environment: Polluting industries should ensure compliance
with the government norms regarding air, water and noise pollution.

6. Unethical business practices
Resorting to dishonesty, trickery or deception
Greed to amass excessive profit
Creation of false documents to show increased profits
Avoiding penalty or compensation for unlawful act
Harming the environment by
exceeding the government prescribed norms for pollution
Lack of investigation

7. Cost of using unethical
business
If the organization acts in illegal way the organization is forced to have a
supervisor from outside the organization , this supervisor is
considered as ethics monitor not as control manager , he is
responsible for the evaluating the performance of the organization
such as the process of decision making .
so :
The organization should have members resist the employee who
try to behave in illegal and unethical ways for their interest at
the expense of interest of the organization .

8. Business Ethics and
organization
• Business Ethics helps the managers in establishing the
organizational goal
• Business Ethics helps the managers to determine what is the
best way to achieve the organizational goals .
Business ethics determine if the organization is allowed to
produce harmful product .
Business ethics specify what actions should be undertaken to
make high profits.

9. Business Ethics and social
responsibility
• Ethics can define the organizational social
responsibility by :
Showing the obligations and duties toward individual
and groups outside the organization
Establishing an ethical code that describe
the acceptable behaviors enforced by punishment system
keep the safety of it’s employees
Protect the nature environment by both producing a safety products
and reduce pollution cases

10. Factors that influence
Business Ethics
Leadership
If the leader can lead in ethical ways and motivates the
employees the employees will perform in legal ways.
Personality
Is the pattern of relatively enduring ways the a person
feels . Thinks and behaviors .
Personality has been shown to influence career choices ,
job satisfaction , stress , leadership and some aspects of
job performance.
Determinants of personality : Nature and nurture .
Company policy
Selection, recruiting , training , promotion programs ,
accepting diversity .

11. Cont …
External environment
Political stability is the most important external factor that
affect on business ethics . Ex: civil war .
Economic is also important specially in recession and
inflation .
Competitors
If one of the competitors act in illegal way and he gains
more profits we must not take in consideration that the
main reason for achieving high profits that is referred to
illegal way. ( harmful products )

12. Can Ethical Dilemma affect on
business ethics ? ..
Ethical dilemma can be defined as the quandary
managers experience when they have to decide if
they should act in away that might benefit other
people or groups and is the right thing to do even
though doing so might go against their own and
their organization interests.
The ethical dilemma here is to decide which course
of action is the lesser of two evils

13. Business Ethics Theories
Business owners and managers can use an ethics theory and select the
most appropriate for using in their operations
A few different business ethics theories exist , these are :
The utilitarian theory Rights theory Justice theory
Common good theory Virtue approach theory
These theories can be used on their own or in combination with each
other. Each theory includes specific traits or characteristics that focus
on specific ethical principles that can help companies correct
business issues.

14. Cont …
1. The utilitarian theory
Is the oldest theory, focuses on using ethical actions that will promote the most
good or value among a society while limiting the amount of harm to as few
people as possible , it was propagated by many philosophers, such as
Jeremy Bentham, James Mill, and Mill's son John Stuart Mill. Businesses can
use this theory to ensure the outcome of various situations helps the
maximum amount of stakeholders.
2. Rights theory
Is based on the belief that all individuals have rights in life and should be treated
with respect and dignity , Morals play a large role in this because individuals
must personally use ethical behavior in order to achieve the end goal without
mistreating people.
3. Justice theory
is where all humans are treated equally through society, regardless of rank,
position, class, creed, or race. This is also known as the fairness approach.

15. Cont …
4. The common good theory
promote the common values and moral or ethical principles found in a
society. This varies from place to place, based on countries'
specific cultural or societal beliefs. For example, the moral
principles found in Japan will often be different than those in the
United States.
5. The virtue theory
is a bit more difficult for businesses to implement, as its approach
focuses on following ethical principles that should be evident in
society. These principles or virtues seek to replace the current
values if they do not bring about the most good or best
development of humanity.

16. Business Ethics and
Globalization
The world has changed and new values have been developed.
as the global economy expands, the companies will being to deal
more with others from different cultures , values , beliefs and religions.
so
the global business world requires companies to take into account
its people values to follow ethically practices .
personal values need to be considered when a company is forming
its policies .
so briefly we can note that many companies make large effort to be sensitive
and closed to personal values .

17. THE END
THANKS FOR UR
ATTENTION
HAVE A NICE DAY 