UNIT V

Business Ethics : Ethics in the workplace - The

challenge of business ethics - Creating an ethical
compass - Business ethics and advantages - Ethical
Issues – Conflict Management- Conflict resolution
strategies - Choosing the appropriate gift in the
business environment

Multi-cultural challenges : Multi-cultural etiquette -

Example of cultural sensitivity - Cultural differences
and their effect on business etiquette- onsite projects
- Cultural Highlight: China - Cultural Highlight: India.
 ETHICS
Ethics
• Ethics is defined as a moral philosophy or code of morals
practiced by a person or group of people. 

• At its simplest, Ethics is a system of moral principles. They

affect how people make decisions and lead their
lives. Ethics is concerned with what is good for individuals
and society and is also described as moral philosophy.

• “Ethics is that discipline which deals with what is good and

bad and also deal with moral duty and obligation. Ethics
are set of moral principles or values.” — Carol Buchholtz
 BUSINESS ETHICS
• Being a good person isn’t the same as being a ‘good’ business
owner. Ethically speaking, what you do in your personal life could
directly contradict what you should be doing in your role as a
business owner. And vice versa

• Business ethics deal with ethics in business, and with the constant

process of optimizing profitability in the context of what is right and
what is wrong.

• Ethics is very significant in the world of business. It is the study of

morally appropriate behaviour and decisions, and examining what
should be done. Ethics helps to mould and shape human behaviour.
It aids employees to perform their roles. However, ethics cannot be
instilled unless we ‘practice what we preach’. Otherwise, the effect
of preaching will last only as long as a house of cards.
 Ethics in the Workplace
• Workplace ethics are the set of values, moral principles, and
standards that need to be followed by both employers and
employees in the workplace. It is the set of rules and regulations
that need to be followed by all staff of the workplace.
• These ethics are implemented by employers to foster both
employee-employee relationship and employee-customer
relationships. An organization may decide to put these ethics
into writing or not—they are however meant to be followed. 
• There exist some general workplace ethics that do not need to be
defined by the employer, but are common ethical behaviors
employees need to exhibit. In the same vein, some organization-
specific ethics may need to be defined in a company handbook.
 Main Theories of Ethics
There are Three Main Theories of Ethics
• First, the utilitarian theory suggests that
actions become right or wrong on the basis
of their consequence.
• Second, the theory of rights holds that all
people have certain basic rights.
• Third, the theory of justice demands that
actions must be fair and equitable.
 Ethics in the Workplace
Ethical Behaviors in The Workplace 
• Obey The Company’s Rules & Regulation
• Honesty
• Loyalty
• Integrity
• Selflessness
• Communicate Effectively
• Develop Professional Relationships
• Take Responsibility
• Professionalism/Standards
• Be Accountable
• Uphold Trust
• Show Initiative without being told
• Respect Your Colleagues
• Work Smarter
 Ethics in the Workplace
Unethical Workplace Behaviors
• Lies
• Taking Credit for Others Hard Work
• Verbal Harassment/Abuse
• Violence
• Non-Office Related Work
• Extended Breaks
• Theft/Embezzlement
• Sexual Harassment
• Corrupt Practices
 Ethics in the Workplace
Management/Employers Unethical Behaviors 
• Sex for Job/Promotion
• use employees' leisure time /Unpaid Overtime
(Late Night Out)
• Verbal Harassment
• Undue Pressure
• Nepotism
• Unfriendly Work Environment
• Unrealistic Expectations
 Ethics in the Workplace 
How to Solve Unethical Issues at the Workplace
• Have Rules
• Accept Feedback/Complaint
• List consequences for unethical behaviors
• Swift Justice/Disciplinary Action
Common Ethical Issues in Business
Common ethical issues facing businesses in 2021
• Sexual Harassment
• Diversity & Discrimination
• Social Media
• Health & Safety
• Environmental Responsibility
• Accounting Practices
• Data Privacy
• Nepotism
 Ethical Issues
Common ethical issues facing businesses in 2021
• Sexual Harassment
• Diversity & Discrimination
– Age
– Disability
– Equal Pay/Compensation
– Genetic Information
– Harassment
– National Origin
– Pregnancy
– Race/Color
– Religion
– Retaliation
– Sex
– Sexual Harassment
• Social Media
– One of the more current ethical issues in business is the question of employees’ personal behavior on social
media outside of work hours. Granted, there’s still quite a large gray area of situations that may or may not
make it ethically justifiable to fire an employee for their social media conduct.
– When it comes to employee etiquette on social media, the bottom line for most businesses is that the
employee can be justifiably fired if the activity is deemed disloyal or financially harmful to the company. Of
course, neither your nor your employees would want to get to a point like that – so what can you do to
minimize ‘bad’ employee behavior on social media?
 Ethical Issues
• Health & Safety
– Regularly inspect your workplace for any potential hazards
– Train your employees so they’re educated on safety protocols
– Promote healthy living (stock kitchens with healthy snacks & drinks)
– Inform employees that help is available
– Recognize and reward hard work
– Create opportunities for employees to grow
– Hold periodic meetings with employees to understand their needs
• Environmental Responsibility
– Assess for areas to improve
– Choose the ways to go green
– Define the goals for your EMS
– Create an EMS team to implement and oversee changes
 Ethical Issues
• Accounting Practices
– Manipulating a business’s financial data to make the company look more successful – also known as
“cooking the books” – is the most well-known form of accounting misconduct
– personally review your financial statements and reports to ensure that they’re honest and accurate. 

• Data Privacy
– The ethical issues have less to do with how your employees conduct themselves on company computers,
smart phones, and tablets . The ethics come into play when you decide how exactly to implement
a cybersecurity plan for your business.
– To avoid the reputational and financial damage of a data breach, you’ll want to develop a small business
cybersecurity plan and put it into action as soon as possible.
– The way to avoid these ethical dilemmas in business is to openly communicate about them. There’s no
sense in keeping your business’s monitoring a secret from employees. Quite the contrary – if they know
you’re monitoring, they’ll be less likely to do the things you have warned them about.

• Nepotism
– a form of favoritism for family members or close friends. 
– isn’t inherently a bad thing if the family member or friend is fit for the position and gets along well with
other employees.
– there’s not much you can do to eliminate the negative views that some employees may have if and when
you hire a family member or close friend. Even if yours is a family owned business, you’ll want to pay close
attention to the ratio of employees vs. friends/family. After all, as the old saying goes, “you can’t be a boss
and a friend”.
 Moral Compass
• Moral Compass is An inner sense which distinguishes what
is right from what is wrong, functioning as a guide (like the
needle of a compass) for morally appropriate behavior.
• An internalized set of values and objectives that guide a
person with regard to ethical behavior and decision-
making
• In accordance with principles of conduct that are
considered correct, esp. those of a given profession or
group.
• Create “What If” scenarios with examples of actions your
child can take.
 Building Moral Compass
Several suggestions on what can be done can
set aright young people’s moral compasses:
• Teach Moral Intelligence
• Set Standards
• Model Moral Behavior
• Talk to Your Teen
• Promoting Compliance
• Correcting Mistakes
• Test the Teen’s Core Values
• Recognize Autonomy
 Building Moral Compass
• Several suggestions on what can be done can set aright young people’s moral
compasses:
• Teach moral intelligence. Use situations and circumstances that arise in everyday life
proactively to teach the difference between right and wrong, beginning in early
childhood. Doing so over time  instills morals and ethics about honesty, integrity,
respect, compassion and perseverance in children to apply as they enter and traverse
their teenage years.
• Set standards. Parents have the largest influence in setting their teen’s moral compass
by setting rules and standards in the home environment. Having ground rules for
dealing with others, honesty, and expectations provides the teen with the beginnings
of his or her moral compass. It goes without saying parents and other adults of
influence in the teen’s life need to model that behavior; a subtopic that follows.
• Model moral behavior. The old “do as I say, not as I do” adage never has and never
will work in developing character in young people. A writer on the subject, Kathryn
Hatter, writes, “Part of the process of instilling morals and values in a teenager
involves not only talking about (moral behavior), but showing it as well…. words can
be effective for explaining an issue or concept, (but) your example often reaps far
more powerful effects.” Pediatrician Dr. William Sears predicts that by the teen years,
the morals proven to be important and valuable should be present in your teen’s
conscience”
 Building Moral Compass
• Talk to your teen. Talking to a teen is a way to gauge where his or her moral compass is
pointing to as well as to help the teen develop or adjust his or her compass. Adults can
break the teen’s habit of grunting one-word answers to adults’ questions by asking
questions that prompt more communications.  For example, ask, “What would you do if
your friend wanted to copy your test?” or “Do you ever feel like your friends get to do stuff
you can’t? Such conversation starters can help the teen think about certain things and how
his or her moral compass will dictate a proper response.
• Promoting compliance. Once the important values are instilled in a teenager, promoting
compliance becomes the next step. Encouraging children and teens to respect authority
and follow social rules that govern behavior is integral for a child’s overall success,
according to Rutgers University Sociology professor and author Dr. David Popenoe. He
suggests it may be more effective to get teens to comply by engaging in a meaningful
dialogue that includes and explains expectations and encourages the teen to comply in
order to be seen as acting in a mature manner.
• Correcting mistakes. Teenagers will make mistakes trying to adapt and live by a moral
compass. Social worker Janet Lehman on the Empowering Parents website suggests that
approaching the mistake calmly and with a good dose of common logic will help an adult
teach a teenager effective lessons about cause and effect and consequences.  For example,
if a teenager borrows something and then loses it, then logical consequence is to apologize
and replace the item.
 Building Moral Compass
• Test the teen’s core values. It’s important that a parent or other adult
of influence step back during an argument with his or her teen to
observe the core values at work or not at work during the argument.
Maybe the teen lied to the parent about his or her grade in school
because of the fear of disappointing the parent. Maybe the teen
allowed a friend to copy his or her test or a homework assignment out
of being loyal to a friend.  These are occasions where corrections can
be made about how to observe and follow the core values in place.
• Recognize autonomy. The teen’s moral compass may not be exactly
the same as his or her parents or the adult of influence who inculcated
values and standards. Respect the fact that the teen has the right to
have minor differences as long as the moral compass is on track.
CONFLICT MANAGEMENT
 CONFLICT
• Conflict is a state of discord between people, or
groups of people working together, caused by
an actual or perceived opposition of opinions,
needs, values, and/or interests and are unable
to find a middle way.

• Conflict is defined as a clash between individuals

arising out of a difference in thought process,
attitudes, understanding, interests,
requirements and even sometimes perceptions.
 CONFLICT MANAGEMENT
• Conflict management is the practice of being able to
identify and handle conflicts sensibly, fairly, and
efficiently. Since conflicts in a business are a natural
part of the workplace, it is important that there are
people who understand conflicts and know how to
resolve them.
• Conflict management refers to techniques and ideas
designed to reduce the negative effects of conflict and
enhance the positive outcomes for all parties involved.
• Properly managed conflict can improve group
outcomes.
 CONFLICT MANAGEMENT
Importance of Conflict Management
• Conflict management goes a long way in strengthening the bond
among the employees and half of the problems automatically
disappear.
• Conflict management also plays an important role in our
personal lives.
• Conflict management helps to find a middle way, an alternative
to any problem and successful implementation of the idea.
• Conflict Management is very important because it is always wise
to prevent a fight at the first place rather than facing its
negative consequences.
 Phases of Conflict
A conflict has five phases.
Prelude to conflict
It involves all the factors which possibly arise a conflict among individuals. Lack of
coordination, differences in interests, dissimilarity in cultural, religion, educational
background all are instrumental in arising a conflict.
Triggering Event
No conflict can arise on its own. There has to be an event which triggers the conflict.
Initiation Phase
Initiation phase is actually the phase when the conflict has already begun. Heated
arguments, abuses, verbal disagreements are all warning alarms which indicate that the fight
is already on.
Differentiation Phase
It is the phase when the individuals voice out their differences against each other. The
reasons for the conflict are raised in the differentiation phase.
Resolution Phase
A Conflict leads to nowhere. Individuals must try to compromise to some extent and resolve
the conflict soon. The resolution phase explores the various options to resolve the conflict.
 CONFLICT MANAGEMENT
Preventing Conflict
• First learn to keep a control on your emotions
• Be a good and a patient listener
• Never be rigid on any point, instead be flexible and try to find out an alternative
• Learn to keep a control on your tongue
• Misunderstandings also lead to conflicts
• Effective communication goes a long way in preventing conflicts
• A small sorry can work wonders and prevent conflicts and unnecessary tensions
Conflict Management Skills
• Effective communication Skills
• Listening Skills
• Identify specific points of disagreement
• Express your own needs clearly
• Discussion
• Patience
• Impartial
• Never Criticize
• Positive Attitude
• Ignore others
• View conflict as an opportunity for growth
 Conflict Resolution Strategies
Five Conflict Resolution Strategies (The Thomas-Kilmann Model)
The Thomas-Kilmann Model identifies five different approaches to resolving conflict. These
approaches include:
Avoiding
Someone who uses a strategy of "avoiding" mostly tries to ignore or sidestep the conflict,
hoping it will resolve itself or dissipate.
Accommodating
Using the strategy of "accommodating" to resolve conflict essentially involves taking steps to
satisfy the other party's concerns or demands at the expense of your own needs or desires.
Compromising
The strategy of "compromising" involves finding an acceptable resolution that will partly,
but not entirely, satisfy the concerns of all parties involved.
Competing
Someone who uses the conflict resolution strategy of "competing" tries to satisfy their own
desires at the expense of the other parties involved.
Collaborating
Using "collaborating" involves finding a solution that entirely satisfies the concerns of all
involved parties.
 Tips for Conflict Management for
Professionals
Tips for Conflict Management for Professionals
• Make sure your communication is effective and impressive
• Be a good and a patient listener
• Don’t always depend on verbal communication at workplace
• Professionals must develop the habit of using planners, organizers and desk
calendars at work
• The pitch and the tone have to be taken great care of
• Adopt a positive attitude
• Never criticize anyone or make him feel small
• Prefer the conference room, board room or any suitable place for presentations,
seminars and discussions
• A professional must avoid blame games at work
• The superiors must ensure that the team members are assigned responsibilities
according to their key responsibility areas and specializations
• Be impartial at work
• Never discuss your work and responsibilities with others and learn to keep things a
little confidential
Gifts in Business
 Gifts in Business
• People give gifts as a way of showing
thoughtfulness, love and affection. When we
give gifts, it brings joy or pleasure to the
receiver. In addition, giving gifts is something
which usually makes us feels good.
• The purpose of gift giving is to show appreciation
and have people think of you when it's time to
do business. It's also a means of expressing
gratitude to those who support you.
 Gifts in Business
Even when you’re gifting internal employees and teams, the
business of business gift-giving comes with its own set of rules,
including
• When it’s appropriate to gift in business and to whom
• Business gift-giving etiquette
• Choosing the right gifts, for the right occasion, to convey the right
message
• Strategic gift-giving ideas
Business gifts can enhance workplace relationships between both
colleagues and employers, bringing in greater revenue,
productivity, performance, and loyalty.
Business gifts can strike a chord in the hearts’ of your employees
and clients when you get them right. In 2018, 63% of companies
attributed better relationships to gift-giving, and 24% say gift giving
resulted in successful word-of-mouth referrals.
 Gifts in Business
• For both employees and clients, receiving a gift is
about recognition. When employees receive
gifts, they feel as though their employers
tangibly expressed gratitude for their hard work.
• When clients receive gifts, it builds a
relationship because there’s a sense of
reciprocity and exchange. You’re thanking them
for doing business with you, which inspires them
to feel valued and return with repeat business.
 The Etiquette of Gift-Giving in Business
The Etiquette of Gift-Giving in Business
• Follow the corporate guidelines/ Compliance Laws
• Consider the Receiver’s need & interests.
• Consider the cost.
• Rethink printing the company logo on your gift.
• Be appropriate.
• Think twice about a humorous gift.
• Consider a charitable donation.
• Presentation is important. (The packaging is part of the present)
• Be generous with group gifts.
• Keep the goal in mind.
• Proceed with caution when exchanging gifts with colleagues and co-workers.
• Everyone in the office or department should be in agreement as to how this will be done.
• Do you need to give the boss a gift?
– Before You Give Your Boss a Gift, Check Your Company's Policy
• What if you want to give special gifts to just a few close colleagues and not everyone?
• The boss should be even–handed when giving gifts to employees.
• When all is said and done, remember to say thank you.
• Avoid Regifting
The Etiquette of Gift-Giving in Business
Follow the corporate guidelines
Some companies have strict policies about what kinds of gifts, if any, their employees
may receive.  If you have any doubt, ask your clients or check with their Human
Resources department.
Consider your client’s interests
Find out what sports, hobbies or pastimes your clients enjoy.  Perhaps your client has
a favorite food or beverage. If you can’t determine this on your own, contact an
assistant or associate. Make your gift stand out just as you want your company to
stand out.
Consider the cost
An inexpensive gift can make you look cheap. On the other hand, a lavish present
could be embarrassing or alienating. Giving or receiving expensive items may be
against company policy. Do your homework. What could be more embarrassing than
to have your corporate gift returned or refused?
Rethink printing the company logo on your gift
Make sure the item meets a certain quality standard and that your logo is
understated enough so as not to look like a blatant advertisement.
The Etiquette of Gift-Giving in Business
Be appropriate
Sometimes a gift given in innocence can be taken the wrong way, Avoid anything that is even
slightly intimate when giving to members of the opposite sex.
Think twice about a humorous gift
What seems funny to one person could be insulting to another.  Know your client’s sense of
humor first.
Consider a charitable donation
Find out what charities your client supports and choose one of those.  Everyone wins. A charity
is served, and no one has another unwanted gift to deal with.
Presentation is important
Have your gift wrapped and presented in a festive way.  The packaging is part of the present.  A
gift certificate or notice of a donation to charity should arrive in a special envelope with a
handwritten note.
Be generous with group gifts
If you decide to send food to your client’s office, make sure there is enough for everybody.  The
holiday season is not the time to cause a food fight.
– you’ll need to sit down and decide what the protocol is for group gifts.
– Group gifts are a little tricky because they all need to be of the same value. You’re not
intending to single anyone out. Through this gifting action, the goal is simply to express
gratitude — usually, at the end of the year or the close of a big project.
The Etiquette of Gift-Giving in Business
Keep the goal in mind
The purpose of gift giving is to show appreciation and have people think of you when it’s time to do business.  It’s
also a means of expressing gratitude to those who support you.
– Showing gratitude
– Rewarding performance for the year
– Recognising talent
– Creating incentive for innovation through further training, mentoring, and development
activities
– Creating a relaxed, but professional, and creative workplace culture among co-workers
– Fostering inter-team creativity and communication
Proceed with caution when exchanging gifts with colleagues and co-workers
Inner office gift-giving, although well-intended, can cause problems and confusion. Establish
guidelines.
Everyone in the office or department should be in agreement as to how this will be done
Will everyone be expected to have a gift for everyone else? Will there be a drawing for names—
like a Secret Santa–so that only one gift needs to be purchased? Will a price range be
established? All of these are important questions to have answered before the holidays arrive.
In difficult financial times, consideration should be given to each individual’s circumstances. No
one should be made to feel embarrassed if entering the office pool is a financial burden.
 The Etiquette of Gift-Giving in Business
Do you need to give the boss a gift?
The boss, whose salary no doubt exceeds yours, should give gifts to his staff, but not the
other way around. Often members of a department will contribute to a pool for the boss’s
gift. As a result the boss ends up with the most elaborate or expensive gift of all. If you
decide to give your boss a gift, choose something in a low to moderate range. Anything
lavish looks as if you are attempting to curry favor.
What if you want to give special gifts to just a few close colleagues and not everyone?
If that is the case, give your gifts at a time and place away from the office and other co-
workers.
The boss should be even–handed when giving gifts to employees
 Everyone need not receive an identical gift—although it is the easiest route to go—but
they should all be of equal value.
When all is said and done, remember to say thank you.
Say it when you receive the gift, and say it again in a handwritten note
For some business cases, however, a pack of template newsletter greetings for a huge
database of contacts would be more than enough as a sign of appreciation.
You Always Need to Check Compliance Laws
Avoid Regifting
 Gifts in Business
Examples of appropriate business gifts
• Calendars
• Dry Fruits 
• Fruit basket
• Box of candy/ Chocolates
• Silver or Gold Coins
• Handicraft
• Power bank
• Bouquet of flowers
• Scarf or tie
• Briefcase or leather portfolio/ Bags
• Watches
• Book by the recipient’s favorite author
• Item manufactured by your company
• Tickets to events and performances
• Professional Notebooks
• Coffee or Tea Blends
• Portable Phone Charger
• Headphones
Multicultural Etiquette
 Multicultural Etiquette
• Multicultural etiquette involves understanding both the basic
protocols of foreign communities and observing how other
cultures perceive your own. One must know the appropriate
gestures for various situations in addition to acting with proper
business behavior.
• Cultural etiquette is what you call the codes of behavior that rule
different cultures – in other words, what's acceptable and what
isn't in a society. Simply put, good etiquette is basically good
manners in the place you're visiting – the act of aligning yourself
with the culture and tradition of a place.
• Understanding a country's culture is a sign of respect. It also helps
to foster effective communication, a vital factor in business success.
Values and attributes may be viewed differently in other
countries.
 Workplace Cultural Etiquette
Learn about other cultures.
If you're hiring Mexican-American workers or dealing with Arab-American customers, find out
about their customs, food, protocol and business style. It doesn't require a trip to the
library; there's tons of information available online.
Learn languages.
Even a few key phrases may help create a good first impression. If you're dealing with one
particular culture, such as Indian or Israeli, make an effort to learn more of their language.
Encourage employees to be open-minded.
If your team includes people from different cultures, encourage them to share their
perspectives. Remind your employees that you want them to be accepting of each others'
differences, not intolerant.
Try new things.
Have lunch with a client or employee and try their cuisine, whether it's Ethiopian, Korean or
kosher. Don't compromise your principles - don't eat meat when you're vegan - but if you're
comfortable experimenting, you can create a good first impression.
Accommodate differences.
Hindus, Christians, Sikhs and Muslims, for example, have different holy days. They have food
restrictions and beliefs. Respect the differences.
Treat people as individuals.
Don't assume that every Brit or Korean or Mexican conforms to the same type or follows the
same etiquette. There's no such thing as a generic Swede or Mexican or American. People are
as individual as their fingerprints.
 Multicultural Etiquette
Different Cultures, Different Manners
• Punctuality. In German eyes, time is money. Wasting time by showing up
late is disrespectful. In Brazil, meetings often run late, and leaving early is
bad manners. In Italy and France, meeting start times are guidelines, not
commitments.
• Business wear. In many American businesses, you can get by with business
casual. In France, even low-ranked executives place a priority on dressing
well. Italian businesspeople also expect elegance from their business
colleagues. In China, dressing conservatively makes a good first impression. 
• Physical contact. In China, physical contact from a business colleague is
frowned upon. In Brazil, by contrast, it's a sign of trust. Brits don't maintain
eye contact for as long as Americans think is appropriate.
• Gift-giving. In Japan, gift-giving is common, but the present should always be
wrapped. In China, offering a gift to associates is essential, although the
recipient makes a show of refusing. In Italy, giving a business colleague a gift
is inappropriate unless the relationship has become close.
 Onsite Problems
• Language
• Food
• Attire
• Life Style
• Culture (Work/Society)
• Values and Beliefs
• Behaviour
• Perception
• Workplace Etiquette
• Understanding the Local Legal and Ethical Issues
• Local Business Practices
 Reference

• https://richtopia.com/effective-leadership/ho
w-business-etiquette-is-different-in-different-c
ultures/
THANK YOU
&
ALL THE BEST