Business Ethics: Presented by Deepika Sharma (4920)

BUSINESS
ETHICS
Presented by
DEEPIKA SHARMA(4920)
MEANING
Ethics is a set of rules that
define right and wrong conduct.
Business ethics can be defined as written

and unwritten codes of principles and values
that govern decisions and actions within a
company. In the business world, the
organization’s culture sets standards for
determining the difference between good and
bad decision making and behavior.
Stakeholder Versus Shareholder
Shareholder Perspective Stakeholder Perspective
 Those who approach

 Stakeholders may include:
ethical decision making employees, suppliers,
from a shareholder customers, competitors,
perspective focus on government agencies, the
making decisions that are news media, community
in the owners' best interest. residents and others. The
Decisions are guided by a idea behind stakeholder
need to maximize return on based ethical decision
investment for the making is to make sound
organization’s business decisions that
shareholders. work for the good of all
affected parties
What is Ethical Behavior?
. In many situations lines between right and wrong are blurred. Such situations
can lead to ethical dilemmas.
When faced with ethical dilemmas, it’s important to consider outcomes of the
decision-making process. One way of dealing with ethical dilemmas is by using
the four way test to evaluate decisions. This test involves asking four questions:
Is my decision a truthful one?

Is my decision fair to everyone affected?
Will it build goodwill for the organization?
Is the decision beneficial to all parties who have a vested
interest in the outcome?
WHO IS RESPONSIBLE FOR CREATING
ETHICS IN AN ORGANIZATION ?
A company’s managers play an important role in

establishing its ethical tone. If managers behave as
if the only thing that matters is profit, employees are
likely to act in a like manner. A company’s leaders
are responsible for setting standards for what is and
is not acceptable employee behavior. It’s vital for
managers to play an active role in creating a
working environment where employees are
encouraged and rewarded for acting in an ethical
manner.
OTHER FACTORS IMPACTING
ORGANIZATIONAL ETHICS
Corporate culture
Existence and application of a written code of ethics
Formal and informal policies and rules
Norms for acceptable behavior
Financial reward system
System for recognizing accomplishment
Company attitude toward employees
How employees are selected for promotions
Hiring practices
Applications of legal behavior
Degree to which professionalism is emphasized
The company’s decision making processes
Behaviors and attitudes of the organization’s leaders
7 Principles of Admirable Business
Ethics
 1. Be Trustful
 2. Keep An Open Mind
 3. Meet Obligations
 4. Have Clear Documents
 5. Become Community Involved
 6. Maintain Accounting Control
 7. Be Respectful
Overview of issues in business ethics
 Corporate social responsibility

 fiduciary responsibility,
stakeholder concept v.
shareholder concept
 industrial espionage.
General business ethics
 Ethics of human resource
management
 Ethics of sales and marketing
 Ethics of production
 Ethics of intellectual property,
knowledge and skills
IMPORTANCE OF ETHICS
IMPORTANCE OF BUSINESS
ETHICS
Public expects business to exhibit high levels
of ethical performance and social
responsibility.
Encouraging business firms and their
employees to behave ethically is to prevent
harm to society.
Promoting ethical behavior is to protect
business from abuse by unethical employees
or unethical competitors.
High ethical performance also protects the
individuals who work in business.
BRITISH AIRWAYS Vs VIRGIN
AIRWAY
Hacked the virgin reservation software,
called the customers & told them flights
have been cancelled & switched them to
BRITISH AIRWAYS
SATYAM CASE
GILLETE engineer who led the razor
blade was also supplying the important
details to its competitors.
Coke & Pepsi in India
Today, more from the world of

product safety. This time the story is
about Coke and Pepsi, and allegations
that the versions of their products
manufactured in India contain
unacceptably high levels of pesticides.
world’s biggest brand names, known
for wooing customers around the
world, are facing a credibility crisis in
one of their crucial emerging markets.
WORLD’S MOST ETHICAL COMPANIES
Business Ethics -A Contested
Terrain Business ethics is a
contested terrain. There
are economists and
business gurus who
claim ethics is irrelevant
to the field of business.
For instance, the neo-
liberal Chicago school
economist Milton
Friedman held that
corporations are amoral
and CEOs have only one
duty to maximize the
profits of a company
RELIGIOUS VIEWS
ON BUSINESS
ETHICS
SWAMI VIVEKANAND VIEWS ON
ETHICS
 THE BASIS OF INDIAN
SUBJECTIVITY LIES IN
THE BELIEF OF GOD.
 HE SUGGESTED THE
FUNDAMENTAL LAW
OF ETHICS
 “DON’T INJURE
OTHERS, LOVE
EVERYONE AS YOUR
OWNSELF UNIVERSE
IS ONE”
In order to win the game, you need to
plan. To plan information is imperative.
Get it through legal & ethical means. In
life and business, ethical standard must be
set,
ETHICAL STANDARD MUST BE SET,
ETHICAL STANDARD MUST BE MET.
CONCLUSION
Ethics are important not

only in business but in all
aspects of life because it
is an essential part of the
foundation on which of a
civilized society is build.
A business or society that
lacks ethical principles is
bound to fail sooner or
later.

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BUSINESS

Business ethics can be defined as written

Shareholder Perspective Stakeholder Perspective

 Those who approach

Is my decision a truthful one?

A company’s managers play an important role in

 Corporate social responsibility

Today, more from the world of

Ethics are important not

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