This document discusses business ethics and ethical decision making. It defines ethics and ethical principles, and lists sources of ethics like religion, family, and education. It discusses ethical relativism and key reasons for businesses to act ethically, like meeting stakeholder demands, enhancing performance, complying with laws, preventing harm, and promoting personal morality. Common causes of unethical behavior are also outlined. The document then discusses core elements of ethical character in business like managers' values and stages of moral development. It concludes by analyzing ethical dilemmas using four methods: virtues, utilitarian, rights, and justice.

1. ASSIGNMENT
SUBMITTEDBY:HAMZAALIKHAN
SUBMITTEDTO:PROFABIDA
ROLLNUMBER:S4F13BBAM0008
SUBJECT:GOVERNMENTBUSINESS

2. UNIVERSITYOFCENTRALPUNJAB
The Meaning of Ethics :
A conception of right and wrong conduct. Tells us whether our behavior is moral or immoral
Deals with fundamental humanrelationships and how we think and behave toward others
and want them to think and behave toward us.
Ethical Principles : Guides to moral behavior
Business Ethics : Application of general ethical ideas to business behavior
Sources of Ethics :Notions of right and wrong come from many sources
1) Religious beliefs
2) Family background
3) Education
4) Community/neighborhood
5) Media influences
These experiences create a concept of ethics, morality, and socially acceptable behavior in
each person. Acts as a moral compass to guide an individual when ethical dilemmas arise.
Ethical Relativism :
Concept which holds that ethical behavior should be defined by various periods in time in
history, a society’s traditions, the special circumstances of the moment, or personal opinion.
The meaning given to ethics would be relative to time, place, circumstance, and the person/s
involved. There would be no universal ethical standards on which people around the globe
could agree.
Observations of Unethical Behavior at Work :

3. Five Key Reasons Business Should Be Ethical :
1) To meet demands of business stakeholders :
About three-fourths of employees surveyed in 2007 believe their firms are
considering the environment, employee well-being, and the interests of society and
the community. Meeting demands of stakeholders is good business.
2) To enhance business performance :
Research shows linkage between ethically responsible behavior and favorable
corporate financial performance. Imparts trust, promoting positive alliances among
business partners
3) To comply with legal requirements
Two legal requirements provide direction for companies interested in being more
ethical in their business operations. U.S. Corporate Sentencing Guidelines. Sarbanes-
Oxley Act of 2002. Although they apply only to U.S.-based firms, these legal
requirements also provide a model for firms that operate outside the United States
4) To prevent or minimize harm
Overriding principle that business should “do no harm”. Examples include not
harming society with toxic waste, protecting business from unethical employees and
unethical competitors.
5) To promote personal morality
Knowing one works in a supportive ethical climate contributes to sense of
psychological security. People want to work for companies that do the right thing.

4. Why Ethical Problems Occur in Business :
Four Primary Reasons are :
1) Personal gain and selfish interest
2) Competitive pressure on profits
3) Conflicts of interest
4) Cross-cultural contradictions
Core Elements of Ethical Character:
Managers’Values
Managers are key to whether a company and its employees will act ethically or unethically.
The values held my managers will serve as models for others who work at the company.
Differences in ethical stances of U.S. versus European managers and employees. Younger
generation of managers more concerned about ethics/social responsibility. A company’s CSR
performance is a major factor when selecting a new employer for today’s graduating MBAs.
Spirituality in the Workplace
Personal belief in a supreme being, religious organization, power of nature or some other
life-guiding force. Organizations have responded to the increased attention to spirituality
and religion at work by attempting to accommodate their employees. Opponents of
spirituality at work point to the myriad of implementation issues as grounds for keeping
spirituality out of the workplace. Issues include which religion should be promoted, and
need for recognizing diversity of religious beliefs
Stages of Moral Development
From childhood to mature adulthood people move up in their moral reasoning. Earliest
stages of reasoning are ego-centered. Most developed stages are principle-centered. Most
managers make decisions based on criteria in levels 3 and 4. Company executives’ reasoning
has wide implications both inside and outside the organization

5. Analyzing Ethical Dilemmas in Business :
Business managers and employees need a set of decision guidelines that will shape their
thinking when on-the-job ethics issues occur. These guidelines should help them :
1) Identify and analyze the nature of an ethical problem, and
2) Decide which course of action is likely to produce an ethical result
Four Methods of Ethical Reasoning :
1) Virtues
Values and character are critical determining factors
2) Utilitarian
Compares benefits and costs of a decision, policy or action
Costs and benefits can be economic, social or human
3) Rights
Person or group is entitled to something or to be treated in a certain way
Examples of basic human rights are right to life, safety, and due process

6. 4) Justice
Means benefits and burdens are distributed equally, according to some accepted rule