ETHICAL CONDUCT & HUMAN VALUES
VALUES AND ETHICS
Introduction
We live in an era of cut throat competition and competition breeds enmity. This
enmity reflects in business operations, code of conduct. Business houses with
deeper pockets crush small operators and markets are monopolized. In such a
scenario certain standards are required to govern how organizations go about their
business operations, these standards are called ethics.
Nowadays business ethics determines the fundamental purpose of existence of
a company in many organizations
Meaning
Ethics are the general code of behavior that is supposed to observe while living in
the society. The purpose of ethical behavior is to improve moral value in the
society.
The word “Ethics” means moral philosophy or moral principal and standards of
conduct. Ethics has science of morals, moral principles and whole field of moral
science and morality is the collection of values that guides our behavior
Golden Rules of Ethics
1. Trust worthiness
2. Respect
3. Responsibility
4. Fairness
5. Caring
6. Citizenship
CONCEPT OF VALUES AND ETHICS IN BUSINESS
Values and ethics in business refers to the principle or the code of conduct which
we follow during our day to day business transactions. It also covers the individuals
who work in an organization, their code of conduct and that of organizations as a
whole.
SOURCES OF VALUES FOR BUSINESS ETHICS
There are four sources of values for business ethics. The sections that follow
identify them as:
1. Legal regulation
Legal regulation is a significant source of values for business ethics. In fact, many
business and professional organizations look to the law when drawing up their
codes of ethical conduct. At least five major ethical rules can be drawn from the
law. These include:
Respect for the liberty and rights of others
The importance of acting in good faith
The importance of exercising due care
The importance of honoring confidentiality
Avoidance of conflicts of interest
2. Professional Code of ethics:
Another important source of business ethics comes from the historic tradition of the
professional code of ethics. Professional such as law and medicine have long
traditions of codes of ethical conduct. Other professions and more recently business
and industry in general, have developed and adopted codes of ethical conduct.
3. Organizational code of ethics:
The codes are obviously an important source of business ethics. The business
round-table, a national group of senior business leaders, has identified a general list
of topics that organizational codes of business ethics should cover. These includes
4. Individual Values:
The ultimate source of ethical values for business decision making comes from the
individual. Others can tell you what is right or wrong. They can sanction you for
failing to live up to their expectations. But only you can make your behavior
ethical. Only you can intend your actions to be honest and fair or to serve the
common good.
How to act ethically in every business situation is beyond the scope of this article.
Business life is just too complex. There is no way to create enough rules to cover
all possible ethically significant situations, even if they could be identified in
advance.
Ethical issues in business
In the past, various companies only thought that ethical issues in business are only a
term used to define administrative rules and regulations that everyone must adhere
or a standard that must be followed. However today, top level management and
small business owners have now realized that it is more than that. Big and small
companies are now slowly realizing the importance of ethics in business that is
crucial for them to succeed. A successful company must learn that confidence and
respect of its customers are vital to its business
How does one business determine what is ethically unacceptable and
acceptable behavior?
Where do business owner, chief executives and employees get their standards
or guidelines for ethics?
Is there a definition for business ethics that can really set an honest and fair
business practices?
This is the dilemma that many employees and business owners are facing every
day. Everyone will somehow and someday is faced with a decision that involves
ethical behavior.
Business ethics is a sort of corporate governance that has to do with the moral
values of managers. The managers need to be transparent in their business dealings.
The feelings of customers is also taken in to account. It also considers the interest
of other stakeholders in the business
Benefits of good business ethics
Good business ethics brings much goodwill to a company that will in the long run
translate into tangible benefits. Goodwill is that intangible asset that a company has
earned over a period of operation as a result of being perceived by business
associates and other third parties as being transparent, reliable, straightforward,
trustworthy etc.
1. Profitability
The first direct dividend of ethical business operation is “profitability”. A company
that is based on sound business value is more likely to be profitable than a
company operating on corrupt practices.
Being profitable will ensure that the company be around for at least the next twelve
months. It is desirable of every business entity to be around for a longer time.
Ethical business practice is the way to go if you and your business truly value going
concern
2. Competitive edge
There are 5 dimensions involved in this. Each dimension is associated with a
corresponding value. This approach gives us a core set of five human values:
Values and ethics are important in the workplace to help keep order, ensuring that a
company runs smoothly and remains profitable.
Each individual company makes its values and ethics known almost immediately
after hiring an employee, or many times, during the interview process.
And in many businesses, no matter how well an employee performs, if he doesn’t
follow workplace values and ethics, it can result in termination.
Human values and ethics in workplace
Handling ethical issues in workplace
Core human values model
Cognition (associated with the values of truth and honesty)
Emotions (associated with the values of peace and harmony)
Valuing (associated with the ethical values of fairness and justice, or Right
Action)
Energy or Spirit (associated with the values of love and enthusiasm)
Identity or psyche (associated with the values of insight, meaning and
purpose)
What does the triangle explain?
The two sloping lines represent cognition and the emotions. The horizontal that
makes the other side of the triangle is the function of valuing. The triangle says that
cognition and emotions are incomplete; valuing is needed in order to discuss
workers and managers actions adequately.
How does it helps the organization?
When the three elements – cognition, emotions and values are in place, then an
organization can begin to experience the benefits of the last two dimensions. When
ethics and values are clear for the organization and its people, energy is generated
and people relate to each other with care and respect
What about the first horizontal line?
As the energy fuels achievement, confidence and growth, the organization becomes
clearer about its identity and purpose. It can even extend its vision and goal
Ethical crises
The thinking on ethical values in business was started in the decade of sixties. It is
not that managers are not the believers of ethics in business but the fact is that the
management thinkers gave very less attention over the ethics in business
Thus, the business practices that are not matching the bench-marking are deciding
the volume of unethical crises in the corporations
Ethics and society
Ours is a diverse society, formed from many ethical backgrounds, races and
religions. As a result, we have few shared ethical values to guide behavior.
Diversity fosters concern over values and in recent years American society has
become more openly pluralistic. Several trends illustrate society's concern over the
possible fragmentation of ethical values at home, at school and in business
