Module 7 Flashcards
it is a system of moral principles concerned with what is good for individuals and society also described as moral philosophy practiced by a person or group of people.
An example of ethics of ethics is a code of conduct set by business. It is also define as the study of moral obligation involving the distinction between right and wrong which
paved the way for the adaption of the general rules of conduct in society
Ethics
Is a guide of principles designed to
help professionals conduct business honestly and with
integrity encompasses areas such as business ethics, a
code of professional practice and employee’s code of
conduct.
code of ethics
Is a body of policies based on laws and values that a company wants all employees to adhere to, but different types of industries
have different regulatory requirements that partially govern a company’s code of ethics.
business code of ethics
Are principles established by the
founders of organization that when followed promote values
such as trust, good behavior. fairness, and or kindness
ethical standards
Is the study of business situation,
activities and decisions where issues of right and wrong are addressed. Baumhart defines “ The Ethic Of Business is the Ethics of Responsibility” meaning the businessman
must promise that he will not harm knowingly.
Business Ethics
Also termed as a study of proper business policies and
practices regarding potentially controversial issues, such as
corporate governance, insider trading, bribery,
discrimination, corporate social responsibility, and fiduciary
responsibilities
Business Ethics
ETHICAL PRINCIPLES IN BUSINESS
Accountability
Compassion and empathy
Committed to Excellence
Fairness
Honesty
Integrity
Loyalty
Law abiding
Leadership
Morale
Respect
Trustworthy & a promise-keeper
Ethical entrepreneurs demonstrate the courage
of their convictions and demonstrates personal integrity by
doing what they believe to be the right thing, regardless of
pressures to do otherwise. They are honorable, principled
and upright, and will defend their beliefs. Principle is never
sacrificed for expediency, they are never unscrupulous or
hypocritical.
integrity
They are worthy of
trust. Ethical entrepreneurs are forthcoming and can did in
explaining things with the relevant information andcorrecting misstatements. They try as hard as they can to
keep to the letter and spirit of their commitments and
promises.
Trustworthy & a promise-keeper
An ethical entrepreneur must be honest and
truthful in all his or her dealings. They should never purposefully mislead or deceive other people by overstatements, partial truths, misrepresentations, selective
omissions, etc
honesty
They are loyal to individuals and institutions by
support and devotion to duty and friendship in adversity.
They do not exploit a situation by disclosing information
they learned in confidence. They are extremely careful not
to be affected by conflicts of interest. They are extremely
loyal to their companies and work colleagues.
Loyalty
They are just and fair in all their dealings. They never
exercise power arbitrarily. They do not use indecent means to
gain an advantage or exploit other people’s mistakes for their
own benefit. They are committed to justice and the equal
treatment of people. They are willing to admit they are wrong.
fairness
Ethical entrepreneurs are
compassionate, empathetic, benevolent, kind and caring. They
strive to achieve their business goals and targets in a manner
that causes the least harm and the greatest positive good.
compassion and empathy
They demonstrate total respect for the human
rights, dignity, autonomy, interests and privacy of
everybody who is affected by their decisions. They are
polite and treat everybody with equal respect and dignity
regardless of nationality, national origin, race or sex.
Respect
They respect and abide by the laws,
regulations and rules of the marketplace.
Law Abiding
They aim to perform their
duties to the best of their abilities. They make sure they are
prepared and well-informed, and constantly try to improve
in all areas of responsibility.
Committed to excellence
They aim to be positive ethical role models.
They are aware of the responsibilities and opportunities of
their position of leadership – they aim to create an
environment in which ethical decision-making and
principled reasoning are highly prized
Leadership
They aim to build and maintain the company’s
good reputation as well as the morale of its workforce. They
avoid becoming involved in conduct that may undermine
respect and will take all actions necessary to prevent the
inappropriate conduct of others.
Morale
FACTORS INFLUENCING BUSINESS
ETHICS
Personal code of ethics
* Legislation
* Government rules and regulations
* Ethical code of the company
* Social pressure
* Ethical climate of the company
UNETHICAL BUSINESS PRACTICES
- Misleading Product Information
- Unfair Competition
- Maltreating Employees
- Manipulating Accounts
- Bribery
many company
promote injurious products with misleading information that
can be harmful to the consumers or to the environment
purely for the sake of improving the bottom line
misleading product information
defamation of a competitor,
misappropriation of their trade secrets and trade mark infringement which give a wrong impression to the consumer about the competitor and the products it is not
wrong to use the competitors name in marketing material but it should not deplore the company or its product
unfair competition
–a familiar scenario in small as in
big companies who make employees work for long hours and
underpay them. Many employees are made to work under
stressful condition and are subject to mental and even sexual
harassment.
Maltreating Employees
most companies are involved in
the cooking of their books to hoodwink investors, lenders and
consumers, then tweak their financial reports to show inflated
profits and lowered depreciation that make investors think that
the company is faring well and they end up buying more
stocks from the share market
Manipulating accounts
inducement to influence a business decision is
not uncommon in the business world. Offering something of
value in money or return of a favorable dealing is usually
witnessed between vendors and marketers.
Bribery
FOUR AREAS OF SOCIAL
RESPONSIBILITY
Economic Aspect
Legal Aspect
Ethical Aspect
Philanthropic Aspect
Companies need to maintain strong
economic interests so they can stay in business. Being
profitable and providing value to shareholders is part of a
company being socially responsible.
economic aspect
A company must follow the low and have a
legal obligation to do so. For example, car companies are
required to meet a certain level of emissions standards in
car production.
legal aspect
Acting ethically means going above and
beyond the legal requirements and meeting the
expectations of society.
ethical aspect
This is the expectation that
companies should give back to society in the form of charitable donations of time, money and goods.
philanthropic aspect
FOUR TYPES OF SOCIAL
RESPONSIBILITY
Philanthropic Effort
Environmental Conservation
Company Diversity and Labor Practices –
Supporting Volunteer Efforts
The company understands that its
success requires not just continued innovation, but building
a next generation capable of understanding, using and improving technology
Philanthropic Effort
Environmental concerns
regularly make the headline, whether a long – term problem
like global climate change or a local issue such as toxic
chemical spill.
Environmental Conservation
Business
leaders realize that diversity in the workplace is beneficial
when everyone is getting along and working as a team.
company diversity and labor practices
Smart business leaders
know that being involved in the community in a productive
way is good for the company too.
supporting volunteer efforts
Corporate social responsibility generates direct
and indirect business benefits and advantages to the
corporation that adopt it (Bueble, 2009). In synthesis, the
benefits and advantages that corporations adopting
Corporate social responsibility initiatives may obtain the
following (Campbell, 2007):
Importance of Corporate Social Responsibility to
Societies -
In synthesis, the
benefits and advantages that corporations adopting
Corporate social responsibility initiatives may obtain the
following (Campbell, 2007):
- Increased employee loyalty and retention.
- Gaining legitimacy and access to markets.
- Less litigation.
- Increased quality of products and services.
- Bolstering public image and reputation and enhanced
brand value. - Less volatile stock value.
- Avoiding state regulation.
- Increased customer loyalty
corporations
- Goodwill and Community acceptance.
- Profit, Growth, competitive edge and image.
- Genuine dialog with stakeholders.
- Spiritual and Pride values to their families and employees.
Better World and Environment from Corporate Social
Responsibility
- Balanced ecosystems.
- Waste management.
- Clean and Green Environment.
Local Community and Society
- Improved quality of life and changed habits.
- Capacity building creates wealth and employment.
Benefits of social responsibility towards society
-Local community and society
-Better world and environment from corporate social responsibility
-corporations
