Shri Vaishnav Vidyapeeth Vishwavidyalaya, Indore
BBAI 501
(Human Values and Professional Ethics)
Subject Teacher: Prof. Abhay Singh Gehlot (Dept. of Mech.
Engineering)
SVITS, SVVV, Indore
Syllabus
Unit I: Human Value
1. Definition, Need for Human Values, Sources of Values
2. Essence of value
3. Classification of Values (Temporal, Universal Value etc)
4. Values Across Culture.
Unit II: Morality
1. Morality its meaning and definition
2. Value vs Ethics vs Morality
3. Concept of Impression Management
4. Impression Management Strategies (Intimidation, Ingratiation, Self-
Promotion, Supplication, Exemplification)
Unit III: Leadership in Indian Ethical Perspective
1. Leadership, Pre-requisites of leadership
2. Approaches to Leadership, Leadership Styles
3. Ethical Leadership
4. Value in Leadership
Unit IV: business Ethics
1. Business Ethics its meaning and definition
2. Relevance of Ethics in Business Organization
3. Theory of ethics (Teleological and Deontological)
Unit V: Globalization and Ethics
1. Globalization and Business change
2. Values for Global Managers
3. Corporate Social Responsibility
Unit IV: business Ethics
1. Business Ethics its meaning and definition
2. Relevance of Ethics in Business Organization
3. Theory of ethics (Teleological and Deontological)
#Business Ethics
Business ethics refers to the principles and standards that guide behavior in
the business world. It involves applying ethical principles and moral
values to business activities, ensuring that business operations are
conducted with integrity, fairness, and responsibility. Business ethics
encompasses a wide range of issues, including honesty, transparency,
accountability, and respect for the rights of all stakeholders.
Here are key elements and concepts related to the meaning and definition
of business ethics:
Integrity: Integrity in business ethics refers to the honesty and truthfulness
of individuals and organizations in their interactions. It involves
maintaining consistency in values and principles, even when faced with
difficult decisions.
Fairness: Fairness involves treating all individuals and groups impartially
and without discrimination. Fair business practices aim to provide equal
opportunities and consider the interests of all stakeholders.
Transparency: Transparency in business ethics refers to openness and
clarity in communication and decision-making processes. Transparent
organizations disclose relevant information to stakeholders, fostering trust
and accountability.
Accountability: Accountability involves taking responsibility for one's
actions and decisions. In business, it means acknowledging and addressing
the consequences of business activities, whether positive or negative.
Respect for Stakeholders: Stakeholders include employees, customers,
suppliers, shareholders, and the community. Respecting their rights and
interests is a fundamental aspect of business ethics.
Compliance with Laws and Regulations: Business ethics requires
compliance with local and international laws and regulations. Adhering to
legal standards is a foundation for ethical business conduct.
Corporate Social Responsibility (CSR): CSR involves businesses taking
voluntary actions to contribute to the well-being of society. This can
include initiatives related to environmental sustainability, community
development, and ethical sourcing.
Avoiding Conflicts of Interest: Business ethics involves identifying and
managing conflicts of interest to ensure that decision-making is not unduly
influenced by personal interests that may compromise the integrity of the
business.
Sustainability: Ethical business practices consider the long-term impact of
activities on the environment, society, and future generations. Sustainable
practices aim to balance economic, social, and environmental concerns.
Ethical Decision-Making: Ethical decision-making involves considering
the ethical implications of choices and actions. It requires thoughtful
analysis, consultation, and a commitment to choosing courses of action
aligned with ethical principles.
In summary, business ethics is about conducting business in a morally
responsible and sustainable manner, considering the impact of decisions on
various stakeholders and society as a whole. It is not only concerned with
legal compliance but also with the broader ethical implications of business
activities.
# Relevance of Ethics in Business Organization
Ethics play a crucial role in business organizations, impacting various
aspects of their operations, reputation, and long-term success. The
relevance of ethics in a business organization can be seen in the following
key areas:
Reputation and Brand Image
Importance: Ethical behavior contributes significantly to building a
positive reputation and strong brand image for a business. Consumers and
other stakeholders are more likely to trust and support companies known
for ethical practices.
Customer Trust and Loyalty
Importance: Ethical conduct fosters trust among customers. When
customers believe that a business operates with integrity, they are more
likely to remain loyal and make repeat purchases. Trust is a valuable asset
in maintaining customer relationships.
Employee Morale and Productivity:
Importance: Ethical practices create a positive work environment and
contribute to higher employee morale. When employees feel that their
organization operates ethically, they are more likely to be engaged,
satisfied, and productive. This, in turn, can reduce turnover and
recruitment costs.
Employee Recruitment and Retention:
Importance: Businesses with a strong ethical reputation attract top talent.
Potential employees are often drawn to organizations that share their
values. Additionally, ethical practices contribute to employee retention, as
individuals are more likely to stay with companies that align with their
personal and professional values.
Legal Compliance and Risk Management:
Importance: Adhering to ethical standards helps ensure legal compliance.
Ethical behavior reduces the risk of legal issues, lawsuits, and regulatory
fines. It contributes to a culture of risk awareness and responsible decision-
making.
Stakeholder Relationships:
Importance: Ethical conduct is essential for maintaining positive
relationships with various stakeholders, including suppliers, investors, and
the local community. Ethical business practices contribute to a harmonious
and mutually beneficial relationship with these groups.
Long-Term Sustainability:
Importance: Ethical business practices are often aligned with
sustainability. Considering the environmental, social, and economic impact
of operations contributes to the long-term viability of the business.
Sustainable practices are increasingly important to consumers and
investors.
Competitive Advantage:
Importance: A commitment to ethical behavior can be a source of
competitive advantage. In a global business environment where
transparency is increasingly valued, businesses that operate ethically may
distinguish themselves from competitors.
Global Business Relations:
Importance: In the interconnected global marketplace, ethical behavior is
crucial for building and maintaining international business relationships.
Companies that operate ethically are more likely to navigate cultural
differences and build trust with partners in different regions.
Social Responsibility and Community Impact:
Importance: Ethical business organizations recognize their social
responsibility and actively contribute to the well-being of the communities
in which they operate. This involvement can enhance the company's
reputation and contribute to positive community relations.
In summary, ethics are integral to the overall success and sustainability of
a business organization. Ethical behavior not only ensures compliance with
laws and regulations but also contributes to positive relationships with
stakeholders, employee satisfaction, and the long-term health of the
business. It is a key component of corporate governance and a guiding
force in decision-making at all levels of the organization.
#Theory of ethics (Teleological and Deontological)
#Teleological Theory of ethics
The teleological theory, also known as consequentialism, is a broad
category of ethical theories that judge the morality of actions based on
their outcomes or consequences. In the context of business ethics,
teleological theories assess the rightness or wrongness of business
decisions by looking at the overall consequences they produce. The main
focus is on achieving a positive outcome or maximizing the overall good.
There are different versions of teleological theories, and two prominent
ones are utilitarianism and ethical egoism. Let's explore these in more
detail:
Utilitarianism
Principle: Utilitarianism, developed by philosophers like Jeremy Bentham
and John Stuart Mill, asserts that the moral worth of an action is
determined by its ability to maximize overall happiness or pleasure and
minimize suffering or pain.
Application in Business: In a business context, utilitarianism would
evaluate decisions based on the net happiness they generate for all
stakeholders, including employees, customers, shareholders, and the
broader community. Actions that lead to the greatest overall happiness are
considered ethically right.
Ethical Egoism
Principle: Ethical egoism posits that individuals should act in their self-
interest, promoting actions that maximize their own well-being. It's a self-
centered approach to ethics.
Application in Business: In a business setting, ethical egoism would
guide decisions based on what is most beneficial for the business or the
individuals making the decisions. This could involve pursuing strategies
that maximize profit or further the interests of the company's owners or
key decision-makers.
Key Features of Teleological Theories in Business
Focus on Outcomes:
Teleological theories prioritize the consequences of actions. The ethical
evaluation is based on whether the outcomes lead to overall positive
results, such as increased happiness, pleasure, or self-interest.
Flexibility:
These theories allow for flexibility in decision-making. The morality of an
action is not determined by adherence to specific rules or principles but
rather by the goodness of the outcomes.
Calculating Consequences:
Implementing teleological theories in a business context may involve
attempting to quantify and compare different outcomes. This can be
challenging, as not all consequences are easily measurable or comparable.
Consideration of Stakeholders:
Teleological theories often require considering the interests and well-being
of all stakeholders, not just the interests of the decision-maker or a
particular group.
Long-Term Perspective:
These theories can encourage a long-term perspective, as the focus is on
maximizing overall well-being or self-interest over time rather than
seeking immediate gains.
Critiques of Teleological Theories in Business
Calculating Consequences:
Quantifying and comparing consequences can be challenging. Some
outcomes may be subjective, and the long-term effects of certain actions
may be difficult to predict accurately.
Neglect of Rights and Justice:
Critics argue that teleological theories may neglect considerations of
individual rights and justice, as actions that lead to overall positive
outcomes could potentially violate the rights of certain individuals or
groups.
Subjectivity in Defining Goodness:
Determining what constitutes "good" or a positive outcome is subjective
and can vary among individuals and cultures, leading to potential ethical
relativism.
In summary, teleological theories in business ethics emphasize the
importance of considering outcomes and consequences when evaluating
the morality of actions. While they provide a flexible framework that can
accommodate a variety of situations, they also face challenges related to
the subjective nature of defining goodness and the potential neglect of
individual rights and justice.
