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    Introduction To Business Ethics

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    Varun Vignesh
    Business ethics and CSR covers the evolution of business ethics from the 1960s to present. Key topics discussed include definitions of ethics, the importance of ethics in business, sources of ethics like religion and culture, and forms of unethical issues like environmental risks. The document traces how business ethics emerged as a field in the 1970s and became more institutionalized over time with regulations like Sarbanes-Oxley in 2002.

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    Introduction To Business Ethics

    Uploaded by

    Varun Vignesh
    32 views20 pages
    Business ethics and CSR covers the evolution of business ethics from the 1960s to present. Key topics discussed include definitions of ethics, the importance of ethics in business, sources of ethics like religion and culture, and forms of unethical issues like environmental risks. The document traces how business ethics emerged as a field in the 1970s and became more institutionalized over time with regulations like Sarbanes-Oxley in 2002.

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    INTRODUCTION TO BUSINESS ETHICS

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    Business ethics and CSR covers the evolution of business ethics from the 1960s to present. Key topics discussed include definitions of ethics, the importance of ethics in business, sources of ethics like religion and culture, and forms of unethical issues like environmental risks. The document traces how business ethics emerged as a field in the 1970s and became more institutionalized over time with regulations like Sarbanes-Oxley in 2002.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    32 views20 pages

    Introduction To Business Ethics

    Uploaded by

    Varun Vignesh
    Business ethics and CSR covers the evolution of business ethics from the 1960s to present. Key topics discussed include definitions of ethics, the importance of ethics in business, sources of ethics like religion and culture, and forms of unethical issues like environmental risks. The document traces how business ethics emerged as a field in the 1970s and became more institutionalized over time with regulations like Sarbanes-Oxley in 2002.

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    © All Rights Reserved
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    of 20

    BUSINESS ETHICS AND CSR

    • Introduction to Business Ethics


    • DEFINITIONS
    • CONCEPTS
    • EVOLUTION
    • SOURCES
    • FORMS
    • IMPORTANCE
    • ETHICS - DEFINITION
    Greek word – ethos & Latin word ethicus –character, standard, belief
    • Dictionary – the study of standards of conduct and moral judgments
    • Branch of philosophy
    • Set of moral principles or value that governs the conduct of an individual or a
    group
    • Rules that differentiate between right and wrong
    • The Oxford Dictionary states ethics as "the moral principle that governs a
    person's behavior or how an activity is conducted".
    • Ethics are in the form of rules, moral standards, values, etc. which guide one’s
    conduct- both of individuals and institutions
    ETHICS ETHICS v. LAW
    LAW
    Voluntarily Mandatory

    Not universal Universal

    Not bound by ethics Bound by law to do it

    unenforceable enforceable
    ETHICS v. MORAL
    ETHICS MORAL
    Rules of conduct recognized – particular class, Habits or principles related to right or wrong
    group etc.

    According to rules According to ideals and principles of individuals


    Against ethics – ousted from job Affect differently to different people
    Philosophical study of morality Practical
    ETHICS - SOURCES
    • RELIGION
    • LAW
    • CULTURE
    • Moral principles and rulesBUSINESS ETHICS
    of conduct applies to business

    • Code of conduct every businessmen must follow

    • Rules that govern the businessmen while they are in a business environment

    • Specialized study of what is right and wrong with the business operations
    • Application of moral or ethical norms to business
    • A DISCIPLINE CHARACTERISTICS
    • ANCIENT CONCEPT
    • PERSONAL DIGNITY
    • INTEGRITY AND FAIRNESS
    • RESPECT CUSTOMER AND EMPLOYEES
    • RELATED TO HUMAN ASPECT
    • STUDY OF GOALS AND MEANS
    • DIFFERENT FROM SOCIAL RESPONSIBILITY
    • GREATER THAN LAW
    DEFINITIONS
    • John Donaldson – “A systematic study of moral matters pertaining to business,
    industry or related activities, institutions or practices and beliefs
    • Andrew Crane – “Business ethics is the study of business situations, activities,
    and decisions where issues of right and wrong are addressed”
    • Raymond C.Baumhart – “ The ethics of business is the ethics of responsibility.
    The business man must promise that he will not harm knowingly”.
    • Webster – “Ethics is the discipline dealing with that which is good and bad and
    with moral duty and obligations”
    SOURCES
    • RELIGION
    • CULTURE
    • LEGAL SYSTEM
    IMPORTANCE OF BUSINESS ETHICS
    • STOP BUSINESS MALPRACTICES
    • IMPROVE CONSUMERS CONFIDENCE
    • SURVIVAL OF BUSINESS
    • PROTECTING CONSUMER’S RIGHTS
    • PROTECTING EMPLOYEES, SHAREHOLDERS ETC.
    • DEVELOPS GOOD RELATIONS BETWEEN BUSINESS AND SOCIETY
    • CREATES GOOD IMAGE OF BUSINESS
    • SMOOTH FUNCTIONING OF BUSINESS
    • CONSUMER MOVEMENT
    • CONSUMER SATISFACTION
    • IMPORTANCE OF LABOUR
    • HEALTHY COMPETITION
    UNETHICAL ISSUES IN BUSINESS
    • ENVIRONMENTAL RISK AND IMPACT
    • IMPROPER WAGES
    • WORKING WITHOUT LICENSE
    • BIASED BEHAVIOUR
    • SELLING DEFECTIVE PRODUCTS
    • MISUSE OF COMPANY’S TECHNOLOGY
    • BREACH OF CONTRACT
    • FAILURE TO MAINTAIN A SAFE WORKPLACE
    EVOLUTION
    BEFOR
    E • ETHICS IN BUSINESS
    1960
    1960 • THE RISE OF SOCIAL ISSUES IN BUSINESS

    1970 • BUSINESS ETHICS AS AN EMERGING FIELD

    1980 • CONSOLIDATION

    1990 • INSTITUTIONALIZATION OF BUSINESS ETHICS

    2000 • A NEW FOCUS


    PRIOR TO 1960s : “ETHICS IN
    BUSINESS” STAGE
    • Theological and religious
    • Rights of workers to decent conditions of employment and living wages –
    Pope – 1870s
    • Courses in social ethics developed
    • Messner’s “Social Ethics” -1950s
    1960s : THE RISE OF SOCIAL ISSUES IN
    BUSINESS

    • CONSUMER’S BILL OF RIGHTS – JOHN F KENNEDY


    • Right of consumers
    • Right to be informed
    • The right to safety
    • The right to choose and to be heard

    • RALPH NADER – “UNSAFE TO ANY SPEED”


    • Wholesome Meat Act of 1967
    • the Radiation Control for Health and Safety Act 1968
    • Clean Water Act 1972
    • E -toxic Substance Act 1976.
     
    1970s : RISE OF BUSINESS ETHICS AS AN
    EMERGING FIELD

    • SOCIAL RESPONSIBILITY – INTEGRAL PART


    • Bribery
    • Deceptive advertising
    • Price collusion
    • Product safety
    • The environment
    1980s : CONSOLIDATION
    • Self-regulation (Reagan/Bush)
    • Ethics centers provided publications, courses, conferences and seminars
    • Firms establishes ethics committees
    • Defense Industry Initiative (DII) 1986 – 6 PRINCIPLES OF DII
    • Support code of conduct
    • Training in business ethics
    • Report unethical behaviour
    • Extensive external audit
    • Maintain integrity of DII
    • Adopt the ideology of public accountability
    1990s : INSTITUTIONALIZATION OF
    BUSINESS ETHICS
    • Self- regulation
    • Federal Sentencing Guidelines for Organizations (FSGO) - 1991
    • Preventive actions against misconduct
    • Laws established – incentives to reward companies
    21st CENTURY: A NEW FOCUS
    • Continued issues with corporate non – compliance

    • Sarbanes –Oxley Act (2002)


    Penalty for coporate fraud
    Estd – Public Companies Accounting Oversight Board (PCAOB)

    • FSGO reform (2004)


    • Requires governing authorities to be well-informed regarding business ethics programs
    FORMS OF BUSINESS ETHICS
    • GENERAL BUSINESS ETHICS
    • PROFESSIONAL BUSINESS ETHICS
    • ETHICS OF ACCOUNTING INFORMATION
    • ETHICS OF PRODUCTION
    • ETHICS OF SALES AND MARKETING
    • ETHICS OF INTELLECTUAL PROPERTY, SKILLS AND KNOWLEDGE
    • INTERNATIONAL BUSINESS ETHICS
    PRINCIPLES
    • INTEGRITY
    • LOYALTY
    • HONESTY
    • RESPECT AND CONCERN
    • FAIRNESS
    • LEADERSHIP
    • LAW ABIDING

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