-SAHIL AJIT MANDE
1. What is ethics ?:-
. The philosophical study of the concepts of moral right and wrong and
moral good and bad, to any philosophical theory of what is morally right
and wrong or morally good and bad, and to any system or code of moral
rules, principles, or values.
*Information of ethics :
Broadly examines issues related to ownership, access, privacy, security,
and community. It is also concerned with relational issues such as "the
relationship between information and the good of society, the relationship
between information providers and the consumers of information".
Importance of ethics
• Ethics is a set of rules that allows us to say right from wrong,
good from the bad.
• Ethics can provide true, specific guidance to ourlives.
•Ethical principles such as fairness, trustworthiness,responsibility
•Ethics is all about decisions
Dr. Ann Tenbrunsel (2011) & Brazerman (Author andProfessor
of ethics
- identify the blind spots as the differences betweenwho you want to
be and who you are. Hence, mostof us want to do the right thing,
but internal andexternal factors are in the way.
Ethicists -
P u t l e s s e m p h a s i s o n s t u d y i n g philosophic principles
and, instead, emphasizethe im portance of establishing g
ood habits of character - needs of doing the right thing in
theright place and time in the right way.
Moralists -
l
socie F o l l o w i n g o n e ’ s i n t e r e s t s i s n o t wrong.- Neverth
eless, an ethical individual must be able - at least
occasionally - to place the needsof others ahead of self -
interest, because of our duty to civi ty.
VIEWS ON THE IMPORTANCE OF ETHICS
1. Can determine the difference between rightfrom wrong, good from
bad;
2. Can eliminate actions that do not conform to what is right;
3. W i l l b e v e r y c a r e f u l t o t h e a c t i o n s a n d decisions to
make;
4. People will not be disturb of the internal and external factors of
doing the right thing;
5. E s t a b lis h g o o d h a b it s o f a c h a ra c t e r o f a person;
6. Come up with rational decisions in facing an ethical dilemma;
7.M a k e s a p e r s o n r e s p o n s ib le in t h e f a m ily , school, and society;
8.B e c o m e s s e n s it iv e t o t h e n e e d s o f o t h er s more than himself or
herself;
THE DIFFERENCE OF MORAL ANDNON-MORAL
STANDARDS ANDCHARACTERISTICS
OF MORALSTANDARDS
‣ Moral Standards
compel us to behave accordingly,al though we have
n o right to in sist on others on non-moral values.
‣ Refer to the guidelines we have on the types of
actsthat we fin d to moral l y permissibl e and
morallyunacceptable
‣ Normally promote the common good, that is,
thewelfare and well-being or human beings, animals,and
the environment.
‣ Are a blending of norms and values
CHARACTERISTICS OF M O R A L STANDAR
DS
1.Entail serious harm or benefit
2.Are not determined by authority figures
3. Should be adopted over other values, including self-
interest.
4. Are focus on objective considerations.
5.Are perceived and universal.
6. Are correlated with different feelings andvocabulary.
Non-moral Standards -
Apply the lawsw h i c h a r e n o t r e la t e d t o s o c i a l o
r l e g a l c o n s i d e r a t i o n s . T h e s e c r i t e r i a a r e n o t inh
erently related to morality, or by their very definition , lack
of ethical sense
a. Etiquette -
a decorum, property
meansreverence for the formal criteria governingconduct in a
civilized society.
b. Statute -
a w r i t t e n l a w p a s s e d b y a legislative body.
c. The professional code of ethics -
a setof guidelines intended to help
practitionersdifferentiat e b e t we e n r ig h t a n d wr o n g t o guide
their decision-making
HOW MORAL STANDARDS AREFORMED
‣ Are shaped by the beliefs of an individual
‣Values are the basis of the capacity of an individualto
distinguish between right and wrong
‣ Morals build on this to form concrete
, context-driven rules that regulate the action of
anindividual
‣ They are formed from the experience of a person’slife and
are subject to opinion
FACTORS ON HOW MORAL STANDARDS AREINFLUENCED
1.The moral values or principles that we conformwith, in
rearing.
2.The character and manners that imbibed with usby means
of birthright
3. The religious values that our forefathers taught us
4.The values we learned from school
5.The moral conduct, ways and habits of thosepeople around
us
6.The direct and implied cultural norms
7 Our life experiences
8.Our critical thinking in these experiences
MORAL DILEMMA
‣a situation in which a decision-maker must
givepreference to one moral principle over another
‣ occur when, confronted with a challenging situation
‣ Self-inflicted dilemma
is a moral dilemma that mayarise as a result of a prior
personal mistake
Kurie & Albin
Moral Dilemma
is a situation in which peopleassume that they should
morally do one thing andthat they should morally do another
thing.
‣ Moral Dilemma
is a situation whereby a
personh a s t o m a k e a d e c i s i o n . A m o n g c o m p e t i n g a
lternatives, which is the right (ethical) alternativeand which is
the bes
Sources of Business Ethics
Ethics in general refers to a system of good and bad, moral and immoral, fair and unfair. It is a
code of conduct that is supposed to align behaviors within an organization and the social
framework. But the question that remains is, where and when did business ethics come into
being?
Primarily ethics in business is affected by three sources - culture, religion and
laws of the state. It is for this reason we do not have uniform or completely similar
standards across the globe.
These three factors exert influences to varying degrees on humans which
ultimately get reflected in the ethics of the organization. For example, ethics
followed by Infosys are different than those followed by Reliance Industries or by
Tata group for that matter. Again ethical procedures vary across geographic
boundaries
1. Religion
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.
Depending upon the degree of religious influence we have different sects of
people; we have sects, those who are referred to as orthodox or
fundamentalists and those who are called as moderates.
Needless to mention, religion exerts itself to a greater degree among the
orthodox and to lesser extent in case of moderates. Fundamentally however
all the religions operate on the principle of reciprocity towards ones fellow
beings!
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. No wonder therefore that it is the culture that
predominantly determines what is wrong and what is right.
It is the culture that defines certain behavior as acceptable and others as
unacceptable.
Human civilization in fact has passed through various cultures, wherein the
moral code was redrafted depending upon the epoch that was.
What was immoral or unacceptable in certain culture became acceptable
later on and vice versa.
During the early years of human development where ones who were the
strongest were the ones who survived! Violence, hostility and ferocity were
thus the acceptable.
Approximately 10,000 year ago when human civilization entered the
settlement phase, hard work, patience and peace were seen as virtues and the
earlier ones were considered otherwise. These values are still pt in practice
by the managers of today!
Still further, when human civilization witnessed the industrial revolution, the
ethics of agrarian economy was replaced by the law pertaining to
technology, property rights etc. Ever since a tussle has ensued between the values of
the agrarian and the industrial economy!
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
and specially with ever changing outer environment the law keeps on
changing but often fails to keep pace.
In business, complying with the rule of law is taken as ethical behavior,
but organizations often break laws by evading taxes, compromising on
quality, service norms etc.
Code of ethics
*What Is a Code of Ethics?
A code of ethics is a set of principles intended to guide professionals in
conducting business with honesty and integrity. A code of ethics document
may outline the organization’s mission and values, guide on addressing
problems, establish ethical principles based on the organization’s core
values, and define the standards to which professionals are held.
Types of Codes of Ethics
A code of ethics can take various forms. Still, its general goal is to ensure
that a business and its employees follow state and federal laws, conduct
themselves according to exemplary standards, and benefit all
stakeholders. Here are two types of codes of ethics commonly found in
business.
Compliance-Based Code of Ethics
For all businesses, laws regulate issues such as hiring and safety
standards. Compliance-based codes of ethics set guidelines for conduct
and determine penalties for violations.
Specific laws govern business conduct in industries like banking, leading
these sectors to adopt compliance-based codes of ethics to enforce
regulations. Employees typically undergo formal training to understand
these rules. Noncompliance can create legal issues for the company, and
individual employees may face penalties for failing to follow guidelines.
Some companies appoint a compliance officer to ensure adherence to the
code of ethics. This individual stays updated on regulatory changes and
monitors employee conduct to encourage conformity.
This type of code of ethics is based on clear-cut rules and defined
consequences rather than personal behavior monitoring. While it ensures
legal compliance, it may not always promote a climate of moral
responsibility within a company.
Value-Based Code of Ethics
A value-based code of ethics addresses a company’s core value system,
setting standards of responsible conduct that benefit the larger public and
the environment. These ethical codes often require more self-regulation
than compliance-based codes.
Some codes of conduct contain language that addresses both compliance
and values. For example, a grocery store chain might create a code
prioritizing health and safety regulations over financial gain. Additionally,
the code might include a commitment to avoiding suppliers that use
hormones in livestock or raise animals in inhumane conditions.
Code of Ethics in Different Professions
Certain professions, such as those in finance or health, have specific laws
that mandate codes of ethics and conduct.
Accountants
Certified public accountants (CPAs), who are not typically considered
fiduciaries to their clients, still are expected to follow similar ethical
standards, such as integrity, objectivity, truthfulness, and avoidance of
conflicts of interest
Financial Advisers
Financial advisers registered with the Securities and Exchange
Commission (SEC) or a state regulator are bound by a code of ethics
known as a fiduciary duty, a legal and ethical obligation requiring them to
act in the best interest of their clients.
Code of Ethics vs. Code of Conduct
A code of ethics and a code of conduct both set professional standards to
guide behavior of an organization’s members. However, there are some
subtle differences:
• A code of ethics ensures that members exercise sound judgment.
For example, legal codes prevent lawyers from handling conflict-of-
interest cases or brokers from trading against clients.
• A code of conduct, meanwhile, specifies expected employee actions,
including norms like punctuality and accuracy. Most companies
implement an employee code of conduct to uphold professionalism
and minimize workplace friction.
• Having both a code of ethics and a code of conduct helps ensure
that an organization operates with integrity and maintains
professionalism with its employees.
How to Create a Code of Ethics
Organizations create codes of ethics to eliminate unacceptable or immoral
behavior among their members, often focusing on existing ethical issues
within their industry.
The first step is for an organization to identify its priorities and any ethical
issues it wishes to avoid. For example, a company might want to prevent
conflicts of interest due to past scandals. In that case, its code of ethics
might prohibit inappropriate relationships or actions that could lead to a
conflict of interes .
Conclusion
Fostering an ethical culture is essential for thelong term sucees and
integrity of any organization The conclusion of ethics is often a set of
principles or guidelines that dictate what is considered morally right or
wrong. Ethics provides a framework for individuals and societies to
navigate ethical dilemmas, make moral decisions, and foster a sense
of responsibility.
Thank you
