Ethics

Ethics is a Greek word, it means Character or manners.

Definition

Ethics is the study of moral and moral choices. It focuses On standards, rules and codes
of conduct that govern the behavior of individual or groups.

Business ethics are moral principles that define right and wrong behavior in the world of
business.

Sources of Ethics

1. Genetic Inheritance 3. Philosophical Systems

2. Religion 4. Legal Systems

Model of Ethics

Ethics & Business

 Ethics conflicts with Profit

 Business always choose profit over Ethics

  At the same time society wants companies to be profitable as well as ethical

Ethical issues for business

1. Product safety standards 4. Unauthorized payments

2. Advertising contents 5. Employee’s privacy

3. Working environment 6. Environmental issues

Values or Ethics?

Values are statements of what we consider as an ideal – it is what we hope to achieve.

Ethics offer a direction for action to take place that is derived from what are the desired
outcomes.

Ethical Decision Making Framework

 Identify the ethical principles that apply to the situation

 Collect as much information as possible to examine the ethical dilemma fully

 Identify relevant ethical values and rules that apply to this ethical dilemma

 Identify any possible conflicts of interest

 Identify any possible problems or benefits to people

 Identify appropriate ethical rules and rank them in terms of importance

 Identify the consequences of applying different ethical rules

Most Common Ethical Mistakes

1. Violation of Client Confidentiality and Privacy

Students should not release information regarding clients without their consent,
should not reveal identity in conversation, and should store client records in a
secure place.

2. Violation of Client Right to Information

Students should not withhold information from clients. Clients should be fully
informed.

3. Violation of Client Right to skilled Services

 Students should take care not to practice beyond their abilities and knowledge.

4. Entering into Dual Relationships

Professional relationships are not friendships. Be friendly, but be careful not to

enter into a relationship that is beyond the professional scope.

Values, Norms and Morals

 Values are general term referring to those things which people regard as good,
bad, right, wrong, desirable, justifiable etc…

 Beliefs- Beliefs are standards of thoughts.

ex- Managers believes that employees are expected to do only the allotted work.

 Norms- Norms are expectations of proper behavior. Everyone has his own set of
norms, values and beliefs which together constitute his moral standard.

ex- Indians address their bosses as Sir. In US it is Mr….