7/25/2017

Business Ethics Notes & Study Material

Business Ethics Notes | Study Material for Business Ethics Find Business Ethics Projects, Notes for Business Ethics & Study material for MBA subject Business Ethics

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Business Ethic

Code of Ethics

Business Ethics Topics: » WHAT IS BUSINESS ETHICS? » FORMULATION OF ETHICAL VALUES » BENEFITS OF ETHICS MANAGEMENT » CORPORATE GOVERNANCE

WHAT IS BUSINESS ETHICS? Let’s start with “what is ethics?” Simply put, ethics involves learning what is right or wrong, and then doing the right thing but “the right thing “is not nearly as straightforward as conveyed in a great deal of business ethics literature. Most ethical dilemmas in the workplace are not simply a matter of “Should Bob steal from Jack?” or “Should Jack lie to his boss?” The concept has come to mean various things to various people, but generally it’s coming to know what is right or wrong in the workplace and doing what’s right-this is in regard to e ects of products/services and in relationship with stakeholders. Wallace and pekel explain that attention to business ethics is critical during times of fundamental change-times much like those faced now by business, both nonpro t and for –pro t .In times of fundamental change, values that were previously taken for granted are now strongly questioned. Many of these values are no longer followed. Consequently, there is no clear moral com to guide leaders through complex dilemmas about what is right or wrong. Attention to ethics in the workplace sensitizes leaders and sta to how they should act .Perhaps most important, attention to ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral com. However, attention to business ethics provides numerous other bene ts; as well as listed later in this document. Note that many people react that business ethics, with its continuing attention to” doing the right thing”. Only asserts the obvious (“be good,” “don’t lie” etc.), and so these people don’t take business ethics seriously. For many of us, these principles of the obvious can go right out the door during times of stress. Consequently, business ethics can be strong preventative medicine. Anyway, there are many other bene ts of managing ethics in the workplace. These bene ts are explained later in this document.

RELATIONSHIP BETWEEN BUSINESS AND ETHICS Functional Area Ethics: Functional areas of business are likely to confront ethical issues. ing is a critical function of any business. ing statement reveal to the managers and owners about the nancial soundness of a company. Managers, investors, regulating agencies, tax collectors and absolute requirements of the ing function. Professional ing organizations have evolved generally accepted ing standards whose purpose is to establish uniform standards for reporting ing data. When they are followed, these standards ensure a high level of honest and ethical ing disclosures. Rarely are they followed in practice. Ethical dilemmas crop up in purchasing departments where strong pressure are felt to obtain the lowest possible prices from suppliers and where suppliers and where suppliers too feel a similar need to bag lucrative contracts ,Bribes, kickbacks and discriminatory pricing are temptations to both the parties. Marketing is another area of the ethics issue. Pricing, promotions, advertising, product information, relations between agencies and their clients and marketing research are potential areas of ethical dilemmas. Then there is thee area of sophisticated communication technology which is grossly abused or misused to realize one’s ambitions.

ETHICS TRAINING PROGRAMMES Nearly all Companies which take ethics seriously provide training in ethics for their manager and employees and employees. Such training programs acquaint company personnel with the o cial company policy on ethical issues, and they show how those policies can be translated into the speci cs of every day decision making .Often simulated cases based on actual events in the company are used to illustrate how to apply ethical principles to on the job problems.

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Business Ethics Notes & Study Material

FORMULATION OF ETHICAL VALUES Depending on the size of the organization, certain roles may prove useful in managing ethics in the workplace. These can be fulltime roles or part-time functions assumed by someone already in the organization. Small organization certainly will not have the resources to implement each the following roles using di erent people in the organization. However, the following functions point out responsibilities that should be included somewhere in the organization. 1. The organization’s chief executive must fully the program: 2. Consider establishing an ethics committee at the board level: 3. Consider establishing an ethics management committee: 4. Consider asg/developing an ethics o cer: 5. Consider establishing an ombudsperson: 6. Note that one person must ultimately be responsible for: 7. Review any values needed to adhere to relevant laws and regulations: 8. Review which values produce the top three or four traits of a highly ethical and successful product or service in your area, e.g. for ants: 9. Identify values needed to address current issues in your workplace: 10. Identify any values needed, based on ndings during strategic planning: 11. Consider any top ethical values that might be prized by stakeholder: 12. Collect from the above steps, the top ve to ten ethical values which are high priorities in your Organization: 13. Examples of ethical values might include: a) Trustworthiness; Honesty, integrity, promise keeping, loyalty. b) Request; Autonomy, privacy, dignity, courtesy, tolerance, acceptance. c) Responsibility; ability, pursuit of excellence. d) Caring; Comion, consideration. Giving, sharing, kindness, loving. e) Justice and fairness; Procedural fairness, impartiality, consistency, equity, quality, due process. ) Civic virtue and citizenship; Law abiding, community service ,protection of environment. 14. Compose your code of ethics. 15. Include wording that indicates all employees are expected to conform to the valus stated in the cod of ethics: 16. Obtain review from key of the organization: 17. Announce and distribute the new code of ethics (unless you are waiting to announce it along with any new codes of conduct and associated policies and procedures): 18. Update the code at least once a year: 19. Note that you cannot include values and preferred behaviors for every possible ethical dilemma that might arise: 20. Examples of a code of ethics:

BENEFITS OF ETHICS MANAGEMENT Many people are used to reading or hearing of the moral bene ts of attention to business ethics. However, there are other types of bene ts, as well. The following list describes various types of bene ts from managing ethics in the workplace. 1. Attention to business ethics has substantially improved society. 2. Ethics program help maintain moral course in turbulent times. 3. Ethics programs cultivate strong teamwork and productivity. 4. Ethics program employee growth and meaning. 5. Ethics programs are an insurance policy they help ensure that policies are legal. 6. Ethics programs help avoid criminal acts ’of omission’ and can lower nes. 7. Ethics programs help manage values associated with quality management, Strategic planning and diversity management this bene t needs far more attention. 8. Ethics programs promote a strong public image. 9. Overall bene ts of ethics programs.

CORPORATE GOVERNANCE A corporation is a creation of Law as an association of persons forming part of the society in which it operates. These http://mbaexamnotes.com/business-ethics-notes.html

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Business Ethics Notes & Study Material

Corporations are to be both managed and governed. At all stages interest of society is involved. The activities of the Corporation and values of society are mutually in uencing each other, Activities of corporation. However, Corporations have a duty to view the interest of nation, laws, and ethical values, in the interest of whole society.

Corporate governance is gaining importance in Business world .One can nd a blending of morality, Law and ethics in corporate governance. GATT, WTO and the local situation have opened a new thought in corporate governance.

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