Business Ethics

Business Ethics and Management Control
Prof. GURU PRASAD FACULTY INC GUNTUR

Ethical behavior in organizations • Ethics deals with morality rules regarding behavior conduct. and and

• In organizational set up , ethics can be defined as the rules or standards governing the conduct of individuals and organizations.

Ethical philosophy
• There are three different ethical philosophies that individuals follow under different situations in an organizational set-up. • These are- utilitarianism, individual rights, and justice. • Organizations attempt to ensure that their employees behave ethically by using control systems

Ethical philosophy
• The individual rights philosophy deals with safeguarding the rights of individuals, such as the right to be informed, right to free speech, right to free consent, the right to privacy, and the right to due process. • Utilitarianism recommends that a course of action that achieves the greatest good for the greatest number of people is ethical

Ethical philosophy
• Justice requires that the rules of the organization be enforced fairly and impartially. Individuals should be accountable only for factors which are under their control. • Utilitarianism is the most commonly followed ethical philosophy

Ethical decision ideology
• Ethical decision ideologies can be classified based on two dimensions: one is • Idealism – the belief that behaving ethically ensures positive results; and the other is • Relativism – the belief that moral values depend on circumstances.

Ethical decision ideology
• Based on these two dimensions, there are four classifications of ethical decision ideologies • Absolutist, • Exceptionist • Situationist, and • Subjectivist.

Ethical decision ideologies Matrix
Relativism
low I D E A L I S M high

low

Exceptionist Subjectivist

high

Absolutist

Situationist

Ethical decision ideologies Matrix • An Absolutist believes in strictly following the universally accepted ethical... [continues]

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