bus.eth-1-new

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WelcomeWelcome

DiplomaProgramme

Salalah College of TechnologySemester - II 2010-11


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Dr.K.Raghu Ram, SCT. 2

C ourse TutorC ourse Tutor :: Dr.K.RaghuDr.K.Raghu RamRam

BUSINESS ETHICSBUSINESS ETHICS


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Human Activities

1. Economic Activities2. Non-economic activities1. Economic Activities: These are concerned with

the production and distribution of goods and

services aimed at making money for living.

2. Non-economic activities: Activities undertaken

either for personal satisfaction or due to religiousor social obligations. Eg: Helping poor, giving

money for charity, etc.


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AA valuevalue isis aa belief belief oror philosophyphilosophy thatthat

isis meaningfulmeaningful. . TheyThey areare thethe beliefsbeliefs

mostmost importantimportant to to usus..TheyThey areare learntlearnt earlyearly inin lifelife..

TheyThey comecome fromfrom parents,parents, friends,friends,

schoolsschools andand cultureculture. .

What are Values?


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PositivePositive ValuesValues: : AnythingAnything whichwhich isis goodgood forfor thetheindividualindividual or or societysociety is is calledcalled positivepositive valuevalue. . EgEg:: Mercy,Mercy,

justice,justice, beingbeing truthful,truthful, beingbeing fairfair withwith othersothers etcetc. .

N egativeN egative ValuesValues: : AnythingAnything whichwhich isis badbad forfor thethe

individualindividual or or societysociety. . EgEg:: Cheating,Cheating, lying,lying, stealingstealing etcetc. .

E thicalE thical ValuesValues: : EthicalEthical ValuesValues dealdeal withwith whatwhat isis right right

andand whatwhat isis good good.. EgEg :: Honesty,Honesty, respect,respect, beingbeing reliablereliable

andand beingbeing fairfair. .N onN on-- E thicalE thical ValuesValues: : NonNon--ethicalethical valuesvalues dealdeal withwith whatwhat

wewe likelike oror desiredesire. . EgEg:: Money,Money, famefame andand statusstatus. .

Basic Concept of Values


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1.1. PersonalPersonal ValuesValues: : ValuesValues possessedpossessed by by thethe individualindividual. .TheseThese valuesvalues leadlead toto actionaction. . ItIt reflectsreflects a a person'sperson's behaviour,behaviour,

attitudeattitude andand charactercharacter. . PersonalPersonal valuesvalues cancan bebe positive,positive,

negative,negative, ethicalethical andand nonnon--ethical,ethical, etcetc. .

2.2. SocialSocial ValuesValues: : BeliefsBeliefs whichwhich areare basedbased onon thethe welfarewelfare andand

wellwell--beingbeing of of oneone particularparticular societysociety. . ThisThis maymay includeinclude

equality,equality, justice,justice, liberty,liberty, andand freedom,freedom, etcetc. . EgEg:: HelpingHelping youryour

friend,friend, neighbour,neighbour, fightingfighting forfor othersothers. .

3.3. PoliticalPolitical ValuesValues: : IdeologicalIdeological beliefsbeliefs aboutabout thethe bestbest wayway toto

governgovern a a countrycountry oror organization,organization, for for exampleexample throughthrough

welfarewelfare andand socialsocial responsibilityresponsibility. .

Types of Values

Contd.


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4 .4 . E conomicE conomic ValuesValues: : BeliefsBeliefs of of thethe peoplepeople aboutabout thethe moneymoney. . LikeLikespendingspending moneymoney in in aa correctcorrect wayway andand chargingcharging correctcorrect priceprice forfor

thethe product,product, paymentpayment of of taxestaxes etcetc. .

5.5. SpiritualSpiritual ValueValue: : TheseThese valuesvalues comecome outout fromfrom thethe relationshiprelationship

of of mankindmankind withwith GodGod.. ItIt includesincludes thethe modemode of of worship,worship, beliefs,beliefs,etcetc. . If If aa personperson is is veryvery muchmuch strongstrong in in spiritualspiritual value,value, hishis

actionaction willwill bebe moremore ethicalethical. .

6.6. TechnicalTechnical ValueValue: : ItIt isis basedbased onon sciencescience andand physicalphysical factsfacts. . ForFor

example,example, usingusing nuclearnuclear sciencescience andand otherother technologiestechnologies for for thethebenefitbenefit of of humanhuman beingbeing andand notnot usingusing thethe samesame forfor killingkilling oror

harmingharming anythinganything. .

.Types of Values

Contd.


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7 .7 . LegalLegal valuesvalues: : TheseThese areare basedbased onon thethe lawlaw of of thethe

countrycountry. . ExampleExample: : followingfollowing governments governments rulesrules andand

regulationsregulations. .

8.8. AestheticAesthetic valuesvalues: : TheseThese areare basedbased onon beautybeauty andand

neatnessneatness. . ExamplesExamples: : notnot toto destroydestroy thethe colourfulcolourful flowerflower

andand keepingkeeping thethe classclass roomroom andand officeoffice neatneat andand cleanclean. .

9.9. E cologicalE cological valuevalue: : ItIt isis basedbased onon livingliving systemsystem andand

environmentenvironment. . ExamplesExamples: : NotNot toto pollutepollute waterwater andand spacespace

andand notnot toto pollutepollute thethe environmentenvironment. .

.Types of Values


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TheThe rootroot of of thethe wordword (Ethics)(Ethics) comescomes fromfrom thethe GreekGreek wordword (Ethikos)(Ethikos)

meaningmeaning Character Character. .

OxfordOxford DictionaryDictionary definesdefines EthicsEthics asas thethe sciencescience of of moralsmorals inin humanhuman

conduct"conduct". .

EthicsEthics maymay bebe defineddefined asas structuredstructured set set of of normsnorms andand valuesvalues byby whichwhich wewe

distinguishdistinguish betweenbetween whatwhat isis rightright andand whatwhat isis wrong,wrong, whatwhat isis goodgood andand

whatwhat isis bad,bad, whatwhat isis desirabledesirable andand whatwhat isis undesirable,undesirable, whatwhat wewe shouldshould dodo

andand whatwhat wewe shouldshould notnot do do. .

EthicsEthics mustmust bebe followedfollowed atat everyevery levellevel inin societysociety; ; atat home,home, at at workwork place,place,

inin sports,sports, in in businessbusiness etcetc. .

FromFrom thethe aboveabove explanation,explanation, we we noticenotice thatthat ethicsethics focusesfocuses onon::-- Moral valuesMoral values-- Usefulness to the societyUsefulness to the society-- Avoiding harmful effects to the societyAvoiding harmful effects to the society-- Help in solving the problems of the society.Help in solving the problems of the society.

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Et hicsEt hics


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BusinessBusiness maymay bebe defineddefined asas anan economiceconomic activityactivity whichwhich

involvesinvolves productionproduction or or purchasepurchase of of goodsgoods andand servicesservices

forfor thethe purposepurpose of of salesale atat aa profitprofit. .

AllAll businessbusiness activitiesactivities involveinvolve sale,sale, transfertransfer or or

exchangeexchange of of goodsgoods andand servicesservices forfor somesome valuevalue. . ItIt

includesincludes activitiesactivities likelike manufacturing,manufacturing, trading,trading,

transportation,transportation, banking,banking, finance,finance, insurance,insurance, etc etc. .

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B usinessB usiness


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W ha t is B usiness Et hics ?W ha t is B usiness Et hics ?studystudy of of businessbusiness situations,situations, activitiesactivities andand decisionsdecisions wherewhere issuesissues of of

rightright andand wrongwrong areare addressedaddressed. .

BusinessBusiness ethicsethics is is aa specializedspecialized studystudy of of moralmoral standardsstandards (i (i..ee.. whatwhat isis

rightright oror wrong)wrong) andand howhow theythey applyapply toto thethe organizations,organizations, companiescompanies

andand toto thethe individualsindividuals whowho workwork withinwithin thethe organizationsorganizations. .

ItIt alsoalso prescribesprescribes thethe valuesvalues toto bebe maintainedmaintained whilewhile doingdoing businessbusiness. .

BusinessBusiness ethicsethics is is defineddefined asas thethe applicationapplication of of moralmoral andand ethicalethical

standardsstandards to to businessbusiness situationssituations. . InIn anotheranother words,words, it it isis widelywidely

acceptedaccepted codecode of of conductconduct of of doingdoing businessbusiness. .

Examples: Not to sell food after expiry date, To give salaries regularly

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W hy Et hics are impor tan t ?

T o develop trus t and confidence among the people

(Cus tomers, employees and suppliers).

T o build a s trong business wi th high grow th.

T o become more successful

T o gain respec t and repu ta tion from Cus tomers,

employees and suppliers

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1. UTILITARIA N Principle

2. I N DIVIDUALISM Principle

3. MORAL Principle4 . JUSTIC E Principle

Principles underlying business ethics

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1.1. UTILITARIAN PRINCIPLE UTILITARIAN PRINCIPLE

A ccordingA ccording toto thisthis principle,principle, ac tionsac tions andand policiespolicies

shouldshould bebe evalua tedevalua ted onon thethe basisbasis of of cos tscos ts andand

benefi tsbenefi ts socie tysocie ty receivesreceives. .

So,So, aa decisiondecision- -makermaker shouldshould considerconsider thethe effec teffec t of of

eacheach decisiondecision andand selec tselec t t hethe oneone whichwhich isis beneficialbeneficial

forfor mos tmos t numbernumber of of peoplepeople. .

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2 . INDIVIDUALISM PRINCIPLE 2 . INDIVIDUALISM PRINCIPLE

A ccordingA ccording toto thisthis principle,principle, moralsmorals promo tepromo te thetheindividualsindividuals bes tbes t longlong--termterm in teres tsin teres ts..

Example Example:

Honesty, sincerity and truthfulness w ork best for the

individual in the long run.

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3 . MORAL PRINCIPLE 3 . MORAL PRINCIPLE

A ccordingA ccording toto thisthis principle,principle, moralmoral decisionsdecisions areare

thosethose tha ttha t bes tbes t main tainmain tain thethe righ tsrigh ts of of thethe peoplepeople. .

Example:

1. T he righ t t o privacy 2. T he righ t of freedom of conscience

3. T he righ t of free speech 4. T he righ t t o due process 5. T he righ t t o life and safe ty

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Dr.K.Raghu Ram, SCT. 18 18

Dis tribu tive jus tice is rela ted to dis tribu ting socie tys

benefi ts and burdens fairly.

4.1 Dis tribu tive Jus tice

Re tribu tive jus tice refers to the jus t (fair) imposi tion

of punishmen ts and penal ties on those who do

wrong.

4.2 Re tribu tive Jus tice


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Dr.K.Raghu Ram, SCT. 19 19

I t refers to the jus t way of compensa ting people for

wha t t hey los t, when they were wronged by o thers.

4.3 Compensa tory Jus tice

Hence every person should main tain e thics in his

personal life and Official life.


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Define Business Ethics. Do youthink they are relevant today?Justify.


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