Business Ethics

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BAAmity Business School

Amity Business School
MBA Class of 2010, Semester II Business Environment and Strategic Analysis Module-V (Business Ethics) Vivek Singh Tomar 1

Chapter Outline
• Business Ethics and Public Opinion • What Does Business Ethics Mean? • Ethics, Economics and Law: Venn Model • Four Important Ethics Questions

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• Three Models of Management Ethics • Making Moral Management Actionable • Developing Moral Judgment • Elements of Moral Judgment • Summary

Introduction

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Business Ethics • Public’s interest in business ethics increased during the last four decades • Public’s interest in business ethics spurred by the media

Introduction

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Inventory of Ethical Issues in Business • • • • • Employee-Employer Relations Employer-Employee Relations Company-Customer Relations Company-Shareholder Relations Company-Community/Public Interest

Public’s Opinion of Business Ethics

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• Gallup Poll finds that only 17 percent to 20 percent of the public thought the business ethics of executives to be very high or high • To understand public sentiment towards business ethics, ask three questions – Has business ethics really deteriorated? – Are the media reporting ethical problems more frequently and vigorously? – Are practices that once were socially acceptable no longer socially acceptable?

Business Ethics: What Does It Really Mean? Amity Business School Business Ethics:Today vs. Earlier Period
Expected and Actual Levels of Business Ethics

Society’s Expectations of Business Ethics Ethical Problem Actual Business Ethics

Ethical Problem

1950s

Time

2009

Business Ethics: What Does It Business School Amity Really Mean? Definitions • Ethics involves a discipline that examines good or bad practices within the context of a moral duty • Moral conduct is behavior that is right or wrong • Business ethics include practices and behaviors that are good or bad

Business Ethics: What Does It Business School Amity Really Mean? Two Key Branches of Ethics • Descriptive ethics involves describing, characterizing and studying morality – “What is”

• Normative ethics involves supplying and justifying moral systems – “What should be”

Conventional Approach to Business Amity Business School Ethics • Conventional approach to business ethics involves a comparison of a decision or practice to prevailing societal norms – Pitfall: ethical relativism

Decision or Practice

Prevailing Norms

Sources of Ethical Norms
Fellow Workers Religious Beliefs Regions of Country

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Family The Individual Friends Conscience

Profession

Employer

The Law

Society at Large

Ethics and the Law

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• Law often represents an ethical minimum • Ethics often represents a standard that exceeds the legal minimum Frequent Overlap

Ethics

Law

Making Ethical Judgments
Behavior or act that has been committed compared with Prevailing norms of acceptability

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Value judgments and perceptions of the observer

Ethics, Economics, and Law

6-14

Four Important Ethical Questions

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• What is? • What ought to be? • How to we get from what is to what ought to be? • What is our motivation for acting ethically?

3 Models of Management Ethics
• Immoral Management—A style devoid of ethical principles and active opposition to what is ethical. Moral Management—Conforms to high standards of ethical behavior. Amoral Management – Intentional - does not consider ethical factors – Unintentional - casual or careless about ethical considerations in business

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• •

Three Approaches to Management Ethics

6-18

Three Models of Management Morality and Emphasis on CSR

6-19

Moral Management Models and Acceptable Stakeholder Thinking

6-20

Making Moral Management Actionable Amity...
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