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  1. Ethics
  2.  Genesis of Ethics  Ethics is derived from the Latin word “ethicus” and Greek word “ ethikos”, it means character or manners.  Ethical codes of conduct instruct us on what we ought or ought not to do. 
  3. Origin In West  Socrates(469-399BC)  Plato(427-347BC)  Aristotle(384-322BC)
  5. • The principles and standards that determine acceptable conduct in business organizations. •Is a form of professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. Business Ethics
  6. Nature of Ethics  Nature of Business Ethics:  Most businesses encounter two types of ethical problems:  Overt Ethical Problems: o Deals with bribery, theft, collusion etc. o They are clear (transparent) and reprehensible (conveying disapproval, criticism or punishment).  Covert Ethical Problems: o Incorporate acquisitions, marketing and personnel policies, capital investment etc. o They are complex, clear and have deft (skilful and quick) ethical solutions.
  7.  3 TYPES OF ETHICS  The Unitarian view of ethics  The Separatist view of ethics  The Integration view of ethics  Unitarian view argues that morality and ethics are related to business.  TheSeparatist view expressed that, business should concentrate on profits, and ethics and morality do not form a part of business.  The Integration view defined a new area called business ethics, where ethical behavior and business are integrated.
  8. 12 Mike, Graphic Designer “What to do? My producer is a bully and hiring like-minded people. Ethics is becoming a question in my organization.”
  9. 13 Stella, HR, Executive “I find few employees of my organization, disclosing confidential client data to our competitors.”
  10. 14 Stephany, HR, Executive “Should the performance feedback session follow a corrective or punitive approach?”
  11. ETHICAL Or UnEthICAL ? • Laying of employees after assuring no layoffs • Operating cancer treatment centre with tobacco company
  12. 16
  13. All these are issues addressing common workplace ethics. Ethical Problems are inevitable in all levels of business. 17
  14. Common Workplace Ethics 18
  15. Punctuality 19 Responsibility
  16. Integrity & Loyalty 20
  17. Teamwork 21
  18. 22
  19. Professionalism 23
  20. In the work place the senior management have a responsibility to set an example that reflect the company expectations. 24
  21. Training on workplace ethics is imperative. 25
  22. Ethics help a lot in effective productivity as well as a great balance of responsibilities in your life on personal & professional front. 26
  23. 3 Models of Management Ethics 27 Three Types Of Management Ethics
  24. Models of Management Ethics 28 1. Moral Management—Conforms to high standards of ethical behavior. 2. Immoral Management—A style devoid of ethical principles and active opposition to what is ethical. 3. Amoral Management— 3. Unintentional - casual or careless about ethical considerations in business
  25. Three Approaches to Management Ethics 6-18
  26. Developing Moral Judgment
  27.  Stages of Ethical Consciousness in Business:  Ethical standards vary between cultures and countries.  It has been found that moral (ethical) development follows a specific sequence of stages, irrespective of cultures and countries.  In the business context, the stages of ethical consciousness are as follows:  Law of the jungle  Anything for profit  Profit maximizing in the short-term  Profit maximizing in the long-term  Stakeholder concept  Corporate citizenship
  28. First Stage: Law of the Jungle-  Businesses were run on brute strength  Business decisions were driven by the philosophy of “might makes right”  Business ills like price fixing etc are common in this stage. Second stage: Anything for profit  Business was ready to do any thing to make profit.  Business at this stage had only one goal ie, profit.  To generate profit, business resort:  False representation of products  Bribery of Govt officials  Tax evasion etc.  Business in this stage of ethical consciousness strongly believe that “anything goes as long as one does not get caught by the law or by the customer”.
  29. The third Stage, “Maximizing profits in the short-term”:  Business believed that “good business is good ethics”.  Performance of businesses is measured based on short-term growth in sales and profits.  Main aim of business in this stage was to maximise profits within the constraints of the law. The Fourth Stage, “ Maximizing profits in the long-term”:  A shift in focus from ‘business’ to ‘ethics’.  Business acknowledge that “sound ethics is good business” in the long run  Interest of the shareholders remain primary concern of businesses  Equal concern for conducting business in a manner that is both ‘right’ and profitable over the long term.  short term profits alternatives are declined.  At this stage firm created the post of an ‘ethics officers’.
  30.  Fifth Stage, “Stakeholders Concept”:  Concentrated on profits to have a social as well as economic mission.  Business objectives included:  Profit sharing  development of community service projects  Philanthropy  Assumption of this concept is:  Providing service to stakeholders  Working towards the good of society  Building and maintaining mutually enabling relationships, which in turn create value for others and justified firms profit.  Success measured not just in:  Financial terms  But also in terms of contribution to society  Some companies have gone so far as publish regular:  Annual social reports  Annual Financial reports
  31.  Sixth Stage, “Corporate Citizenship”:  Proposes a higher level of ethical consciousness  Redefines the mission of business in society  “World Business Academy” and “Business for Social Responsibility” are among the principal proponents  Major responsibility to society transformation  Their belief, “ Business can be healthy, only if society around it is healthy” and no other institution (Govt and religious) in society has the resource and credibility to bring about this transformation.  Entrepreneurs on this level seek to achieve:  promoting community health  participating in job creation  Employing handicapped people  Self realization of employee  Financial success of the company
  32. Ethical theories are commonly divided into 3 branches :  Meta ethics  Normative  Applied ethics  Meta-ethics is the branch of ethics that seeks to understand the nature of ethical properties, statements, attitudes, and judgments. Metaethics is the study of what ethical terms and theories actually refer to.Meta-ethics addresses questions such as "What is goodness?" and "How can we tell what is good from what is bad?  Normative Ethics is the study of ethical theories that prescribe how people ought to act.  Applied ethics: How do we take moral knowledge and put it into practice? Ethical Theories
  33. Why Ethics is important in business • Creates credibility • Unites people • Work Efficiently • Improves decision making • Increases interest over shareholders  Easier change management  Strong team work and productivity  Enhanced Employee growth  Guarantee that personnel policies are legal  Helps to detect violations easily  Helps to manage values associated with quality management, strategic planning
  34. Why Ethics is important in business Ethics brings a sense of right and wrong in organizations. • When the law fails • Ethics stops organizations from harming the society.
  35. Common Causes of Unethical Behavior  Pressure  Fear  Greed  Convenience  Self Interest  Legal Need  Image  Payback Principle  Social Pressure  Reward Motive
  36. Why Misconduct Is Not Reported...  belief that nothing will be done  fear of retaliation  fear of being viewed as a troublemaker
  37. Sources of Ethical Norms Fellow Workers Family Friends The Law Regions of Country Profession Employer Society at Large Religious Beliefs The Individual Conscience Culture
  38. Common Unethical Acts...  lying and withholding needed information  abusive or intimidating behavior  misreporting time worked  discrimination and sexual harassment  stealing  breaking environmental and safety laws  falsifying records  drug or alcohol abuse  giving or accepting bribes
  39. Sources of Unethical Behavior Abusive and intimidating behavior “Bullies” behavior:
  40. Is it ethical to:  Shop online during company time?  Using office equipment for personal use?  Read personal emails while at work?
  41. Libeling or slandering a client 1999 T.Y. LEE 45
  42. Sharing confidences without compelling professional reasons 1999 T.Y. LEE 46
  43. Assaulting, causing physical injuries, or placing clients in danger 1999 T.Y. LEE 47
  44. Discriminatory practices 1999 T.Y. LEE 48
  45. Withdrawing services precipitously (abandoning a client) 1999 T.Y. LEE 49
  46. Failure to warn and protect the victim of a violent crime 1999 T.Y. LEE 50
  47. Failure to exercise reasonable precautions with a potentially suicidal client 1999 T.Y. LEE 51
  48. Promising “cures” for problems 1999 T.Y. LEE 52
  49. Coke & Pepsi in India Today, more from the world of product safety. This time the story is about Coke and Pepsi, and allegations that the versions of their products manufactured in India contain unacceptably high levels of pesticides. world’s biggest brand names, known for wooing customers around the world, are facing a credibility crisis in one of their crucial emerging markets.
  50. Least Corrupt Countries 2-54
  51. 2 5 , 0 0 0 H I G H S C H O O L S T U D E N T S : •62% cheated on exams at least once •35% copied documents from Internet •27% shoplifted •23% cheated to win at sports Personal Ethics Honesty? 2-55
  52. •F A L S E / M I S L E A D I N G A D V E R T I S I N G •D E C E P T I V E P E R S O N A L S E L L I N G T A C T I C S •P R O D U C T S A F E T Y A N D Q U A L I T Y •U N S U B S T A N T I A T E D C L A I M S •P R O D U C T L A B E L I N G Ethical Concerns Communications 2-56
  53. T H E A C T O F T A K I N G S O M E O N E E L S E ’ S W O R K A N D P R E S E N T I N G I T A S Y O U R O W N W I T H O U T M E N T I O N I N G T H E S O U R C E Ethical Concerns Plagiarism 2-57
  54. Improving Ethical Behavior in Business Ethical decisions in an organizations are influenced by three key factors 2-58
  55. How do you train your employees to be ethical to one and all, whether in the professional realm or personal? • A written code of conduct • Define ethics to be maintained in an organization. • Each employee should have one, including new hires. 59
  56. Training programs • Organizations should focus on training in ethics at the workplace. • A few members from the top level management can lead the ethics training programs. 60
  57. Performance feedback sessions should be corrective in nature. 61
  58. Good Behavior should be acknowledged. 62
  59. Role model • Seniors behaving in a morally upright manner will set an example for employees to follow. 63
  60. Encouraging Ethical Conduct  Ethics Training  Key features of effective ethics training programs  Top management support.  Open discussion.  A clear focus on ethical issues.  Integration of ethics into the organization.  A mechanism for anonymously reporting ethical violations.  Reward ethical conduct.
  61. Encouraging Ethical Conduct (cont’d)  Code of Ethics  Published statement of moral expectations for employee conduct  Requirements for an effective ethics code  Must describe specific practices as unethical (e.g., kickbacks, payoffs, gifts, falsification of records, and misleading product claims).  Must be firmly supported and fairly enforced by top management.
  62. How can high ethical standards be maintained? Management - Chapter 3 66 Codes of ethics:  Formal statement of an organization’s values and ethical principles regarding how to behave in situations susceptible to the creation of ethical dilemmas. Areas often covered by codes of ethics:  Bribes and kickbacks  Political contributions  Honesty of books or records  Customer/supplier relationships  Confidentiality of corporate information
  63. Whistleblower A whistleblower is an employee who reports real or perceived wrongdoing under the control of his or her employer to those who may be able to take appropriate action.
  64. “Whistleblower’s” Reluctance  Didn’t believe action would be taken.  Feared retaliation from mgmt.  Didn’t trust confidentiality.  Feared not being a team player.  Feared retaliation from co-workers.  Didn’t know who to contact.  Nobody cares, why should I?
  65. Encouraging Ethical Conduct (cont’d  Whistle-Blowing  The reporting of perceived unethical matters.  Reducing the fear of retaliation against whistleblowers  Anonymous hotlines and web sites  Personal, confidential guidance  Ethical Advocate  An ethics specialist who plays a role of critical questioner in top-management’s decision-making.  Serves as the Board of directors’ social conscience.  Helps prevent groupthink and blind conformity
  66. Pyramid of Social Responsibility 2-70
  67. CAPITAL PUNISHMENT  Apart from the United States, few countries use the death penalty.  Only China and Iran execute more people than the U.S.  No member of the European Union uses it. Under the European convention for the Protection of Human Rights and Fundamental Freedoms, it is regarded as a human rights violation, so no nation can be admitted to the European Union if it still has the death penalty on its books.