This document discusses business ethics and how it affects businesses and their external environment. It defines business ethics as the written and unwritten codes that govern decision-making within a company. It provides examples of unethical business behaviors like discrimination and examples of ethical policies like trading fairly. It discusses how ethical issues relate to functional areas like accounting, finance, and marketing. It also examines how business ethics impacts stakeholders like employees, customers, suppliers, and investors. Finally, it outlines the benefits of practicing business ethics like increased employee commitment, customer satisfaction, and profit.
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This document discusses business ethics and how it affects businesses and their external environment. It defines business ethics as the written and unwritten codes that govern decision-making within a company. It provides examples of unethical business behaviors like discrimination and examples of ethical policies like trading fairly. It discusses how ethical issues relate to functional areas like accounting, finance, and marketing. It also examines how business ethics impacts stakeholders like employees, customers, suppliers, and investors. Finally, it outlines the benefits of practicing business ethics like increased employee commitment, customer satisfaction, and profit.
This document discusses business ethics and how it affects businesses and their external environment. It defines business ethics as the written and unwritten codes that govern decision-making within a company. It provides examples of unethical business behaviors like discrimination and examples of ethical policies like trading fairly. It discusses how ethical issues relate to functional areas like accounting, finance, and marketing. It also examines how business ethics impacts stakeholders like employees, customers, suppliers, and investors. Finally, it outlines the benefits of practicing business ethics like increased employee commitment, customer satisfaction, and profit.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
This document discusses business ethics and how it affects businesses and their external environment. It defines business ethics as the written and unwritten codes that govern decision-making within a company. It provides examples of unethical business behaviors like discrimination and examples of ethical policies like trading fairly. It discusses how ethical issues relate to functional areas like accounting, finance, and marketing. It also examines how business ethics impacts stakeholders like employees, customers, suppliers, and investors. Finally, it outlines the benefits of practicing business ethics like increased employee commitment, customer satisfaction, and profit.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
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BUSINESS ETHICS
Group No:06 15/07/2010
Ethics The inner-guiding moral principles, Values & beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave.
What is Business ETHICS
Business ethics can be defined as written & unwritten codes
of principles and values that govern decisions with in a
company. In the business world, the organizations culture sets stands for determining the deference between good and bad decision making and behavior.
Examples for unethical business behaviors
Using company property & materials for private purposes Sexual harassment
Racial discrimination Lack of concern for the environment Stealing from the company Reduce pollution by using non-fossil fuels. Disposal of waste safely and in an environmentally friendly manner. Sponsoring local charity events.
Examples for the ethical policies in a business
Trading fairly with developing countries
Lack of punishments
Ethical issues for business
Product safety standards Advertising contents Working environment Unauthorized payments Employees privacy Environmental issues These ethical issues can relate to all functional areas like, 1. Accounting 2.Finance 3.Marketing
How does business ethics affect to the business & its external environment? Government Law
Business
Morality & Ethics
Society Market system BUSINESS ETHICS
Ethical theories can be classified in to three subject areas
Meta Ethics Normative Ethics Applied Ethics
Meta Ethics :-what do we mean by words such as
good, bad, right, wrong ? Normative Ethics :- What are the right general principles for discerning right action from wrong action.
Applied Ethics :- (e.g. : Business ethics ) given some
action A ,is morally permissible or impermissible ? If permissible, is it obligatory ?
Details of normative theory
What are the right general principles for discerning right
action from wrong action.
Golden principle behind this:-
we should treat others the same way that we
want others to treat us. Three leading theories of normative ethics
1. 2. 3.
Stock holders theory
Stake holders theory
Social contract theory
Stakeholders & Ethics
Stakeholder theory : Businesses have corporate
social responsibilities with respect to employees , customers and society at large.(besides the goal of making
some profits for shareholders ).
Stakeholders stake holders are the people and groups that supply a
company with its productive resources and have a claim on
its resources.
Stakeholders & Ethics
Stockholders theory : Businesses have only one
obligation -to maximize profit for shareholders.
Stockholders ,
Want to ensure that managers are behaving ethically and not
risking investors capital by engaging in actions that could hurt the companys reputation.
Want to maximize their return on investment.
Stakeholders & Ethics
Managers Responsible for using a companys financial capital and human resources to increase its performance.
Have the right to expect a good return on reward by
investing their human capital to improve a companys performance.
Stakeholders & Ethics
Employees
Companies can act ethically toward employees by creating an Occupational structure that fairly and equitably rewarded
employees for their contribution.
Stakeholders & Ethics
Suppliers and distributors
Suppliers expect to be paid fairly and promptly for their inputs.
Distributors expect to receive quality products t agreed upon prices.
Stakeholders & Ethics
Customers
Company must provide products and services of the highest quality
Convey true claims in product advertisement
Benefits of business ethics
Ethics contribute to employee commitment
- perception of social responsibility leads to higher performance.
Contribute to investors loyalty - Companies increasingly concerned about ethics and social responsibility.
Ethics contribute to customer satisfaction Contribute to profit
Why Ethics in the organization ?
To meet federal regulations
To provide an assurance to socially responsible investors To prevent unethical conduct which can have serious reputation and financial cost.
