Unit – I Introduction to Business

Ethics
-Prof. Vinit Ashvin Upadhyay
M.D., P.U. Educational Service
 ▪ Ethics is a set of universally accepted moral principles
and values that govern the behaviour of a person or
group in terms of what is right & wrong.
Right or wrong ▪ “Business Ethics is generally coming to know what is
business right or wrong in the work place and doing what is

practices right. This is in regard to effects of products/services

and in relationship with the stake holders.” – Cater
Mcnamara
 Care &
Accountability Honesty
Respect

Avoid
Compliance Loyalty
Conflicts
Principles of
Business Ethics Relevant
Law abiding
Fulfilling
information commitments

Commitment
to excellence
 ▪ Values tend to influence attitudes & behaviour.
▪ Basic fundamental guide or motivate attitude or actions.

Ethics & Values ▪ Difference Between Personal & Business Ethics

▪ Personal Ethics are stimuli of individual’s moral, religion
and values.
 ▪ A discipline
▪ Ancient Concept

Characteristics ▪ Personal Dignity

▪ Related to Human Aspect
of Business
▪ Study of Goal & Means
Ethics: ▪ Different from Social Responsibility
▪ Greater than Law
 ▪ Control business malpractices
▪ Better relation with employees

Need & ▪ Improves customer satisfaction

▪ Increases profitability
Importance of
▪ Improves goodwill
Business Ethics: ▪ Better decision making
▪ Protection of Society
 • Laws
Compliance of: • Principles of Morality
• Policy of company

• Core Values
3 C’s of Business Contribution to:
•
•
Quality of Product/ Services
Quality of Work life
Ethics • Usefulness of surrounding activities

• Internal & External environment

• Social responsibility towards all
Consequences: stakeholders
• Goodwill & reputation
 ▪ Matter of religion & not management
▪ Our employees are ethical so we don’t need attention to
business ethics

▪ Discipline of philosophers & academics

▪ Ethics is Superfluous
▪ Matter of good guy preaching to bad guys
Myth of ▪ New policemen on the block
Business Ethics: ▪ Ethics can’t be managed
▪ Ethics & Social Responsibility are Same
▪ Organization is not in trouble with law so we are ethical
▪ Managing ethics at workplace has little practical
relevance.
 ▪ Management of Attitude
▪ Humanizing the organization
▪ Interiorizing Management
▪ Self- Introspection
Ethics & Indian ▪ Brain-stilling
Ethos ▪ Stepping Back
▪ Self- dynamizing meditation
▪ Role of Intuition
 ▪ Each soul of potential god
▪ Holistic Approach
Basic Principles ▪ Equal importance to subjectivity/ objectivity
of Indian Ethos ▪ Karma Yoga
of Management ▪ Yogah Karmasu kushalam
▪ Co- operation
 ▪ Set of principles for employees to adhere to when
conducting business to comply with company
standards.
▪ Guidelines for creating code of ethics:
▪ Being inclusive
▪ Considerate & respectful
Code of Ethics ▪ Acting professionally
▪ Considering your actions & Admitting your mistakes
▪ Avoiding conflict of interest & protecting assets of the
company
▪ Underlying acceptable workplace behavior
▪ Initiate code program
 ▪ Set of rules outlining norms, rules and responsibilities
or proper practices of an individual party or
organization.
▪ Professional code of conduct includes:
▪ Company mission
▪ Purpose of code of conduct
▪ Compliance with law relating to employees
Code of ▪ Outline unacceptable behaviour

Conduct: ▪
▪
Outline internal practices
Outline external practices
▪ Training requirements
▪ Job duties
▪ Chain of command

(Please refer to appendix for reference in the book )

 ▪ Attention to business ethics has substantially improved
society.
▪ Ethics programs help maintain a moral course in
turbulent times.
▪ Ethics programs cultivate strong teamwork and
productivity.

Benefits of ▪ Ethics programs support employees growth and

meaning.
managing ethics ▪ Ethics programs are an insurance policy- they help
at workplace ensure that policies are legal.
▪ Ethics programs help avoid criminal acts “of omission”
and can lower fines.
▪ Ethics programs help manage values associated with
quality management , strategic planning and diversity
management.
▪ Ethics programs promote a strong public image.
 ▪ Recognize that managing ethics is a process.
▪ The bottom line of an ethics program is accomplishing
preferred behaviour in the workplace.
▪ The best way to handle ethical dilemmas is to avoid
their occurrence in the first place.
▪ Make ethics decisions in groups and decisions public.
Guidelines for ▪ Integrate ethics management with other management
managing ethics practices.

in the workplace ▪ Use cross-functional teams when developing and

implementing the ethics management program.
▪ Value forgiveness.
▪ Trying to operate ethically and making a few mistakes
is better that not trying at all.
 ▪ Economic Theory by Friedman:
[Link]

Theories : ▪ Kant’s Deontological Theory:

[Link]
Approach to ▪ Mill & Bentham’s Utilitarianism Theory:
Business Ethics [Link]