Better co-operation and co-ordination. Defensive Factors refers to the attempts of an individual to find easy ways to escape from an act of violation of a law or a duty. For example, Concern for Task (Productivity) and Concern for Human Beings (workers) are bound to pull each other in opposite directions. Hence, most problems in the business sphere are covert ethical problems. Concept and Definitions 5. iv. Thankfully, not any more. Ethical communication system helps the employees in making enquiries, getting advice if needed and reporting all the wrong done in the organisation. Ethics seeks, to improve the human condition by focusing on the causes and consequences of these malpractices being done by the business organisations. The purpose of business ethics is to guide the efforts of managers in discharging their duties to the satisfaction of various stakeholders e.g., employees, owners, customers, suppliers, and the general public. The behaviour of a businessman has more impact within the business organisation than outside. Bivins, T. H. (1989). Ethics management committee – It will be charged with implementing and administrating an ethics management programme, including administrating and training about policies and procedures, and resolving ethical dilemmas. On this basis the businessmen can determine different roles and behaviour at their levels. Similarly, the Golden Rule “Do unto others as you want them do unto you” appeals to human dignity and respect for others. truthfulness and tolerance for developing the feelings of mental peace. They believe that business should not have any responsibility beyond obeying certain legal codes in achieving its economic and business goals. Principle of Conscience – This principle is based on inner-feeling of persons to analyse the sense of right and wrong. Defining ethical standards is not an easy task. 1. are perceptions about what is good or bad, right or wrong. Businessmen get acknowledgement from the employees for a higher amount than the amount actually paid. it is required to follow all these good and acceptable behaviour by businessmen. Value differences basically arise because learning and experiences differ from one person to another. It also necessitates an honest code of conduct in an enterprise. Values and their Impact on Human Behavior: People are not born with values; rather they acquire and develop them early in life. From a managerial standpoint, it is important to know that values are those concepts, principles, things, people or activities for which a person is prepared to work hard and even make sacrifices for. Business and Ethics overlap and hence many business decisions are guided by moral considerations. 15. iv. One of the largest influences of modern business ethical principles is Kantian theory, which is a type of norm theory. Then, he wants to enjoy social status continuously and avoid unjust or immoral business activities. Thus, the consequences of an action are measured in terms of the pleasure and pain caused to different individuals. Kant’s Categorical Imperative (Universal Approach): Act in way that the action taken under the circumstances could be a universal law or rule of behaviour. Concepts and Theories of Business Ethics INTRODUCTION. The three main business ethics theories are deontological theory, utilitarianism, and norm theory. Understanding the importance of ethics in human resources is crucial for any business owner, whether in a local startup or a multinational powerhouse. Government Rules and Regulations: Government regulation regarding product safety, working condition, statutory warnings (on cigarettes and other harmful products), etc., are all supported by laws. Parents have obligations to their children and they must provide for their children even when the money could be more beneficial for orphans. He further believed the social responsibility of business is contrary to basic business functions. One of these is the "Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Accounting". Ethics are broader than what is stated by law, customs and public opinion. Resources which must be allocated are finite or limited. Principle of Universal Values – It is required that every businessmen should conduct and perform the task and different business activities to be based on universal assumptions, customs and overall accepted norms and principles by society. They seek to maintain a proper image of their company in the public mind. The antennae of these managers are tuned to public opinion and they react to it. Ross, the 20th century Britisher philosopher has given the following moral rules: (i) Duties of Fidelity — to keep promises, both explicit and implicit, and to tell the truth. These may be external or internal obligations. For example, birth control is mandatory in Communist societies but not in Catholic Christian societies. To follow one action would result in transgressing another. (ii) Teleological theories provide an objective and precise method for moral decision-making. A few different business ethics theories exist, such as the utilitarian, rights, justice, common good and virtue approach. Ethical behaviour not only improves profitability but also fosters business relations and employees productivity. Determinants 14. Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. 2. What is Business Ethics? As a specific theory of the way corporations interact with the surrounding community and larger world, corporate social responsibility (CSR) is composed of four obligations: The economic responsibility to make money. Business owners and managers can use an ethics theory they deem most appropriate for use in their operations. There are organizations that have created guidelines for certain fields of business based on the theories of business ethics. Acting ethically ultimately means determining what is “right” and what is “wrong.” Basic standards exist around the world that dictate what is wrong or unethical in terms of business practices. (i) Teleological theories are consistent with the ordinary moral reasoning. Parents, teachers, relatives, friends and others influence an individual’s values. – Every businessmen are required to create and develop their role and behaviour to establish pleasure and happiness with other persons and the society at large. 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