Business Ethics - Basic Principles

Questions that need addressing

What is Ethics and business ethics What are the stages of moral development Should moral standards be applied to business When is a person morally responsible for doing wrong

Business Ethics - Basic Principles

Merck Example for River blindness (1979) of medicine for animals , Ivermectin Cost of devpt 100 million USD Population affected 18 million by 1979 Population at risk 85 million WHO, Govt. not willing to fund

Business Ethics - Basic Principles

Ethics and business seem to be a contradiction to each other Whenever ethics conflicts with profits, businesses choose profits over ethics Latest research indicates that businesses that do not so, gain in the long term?? Test cases Wipro, Infosys v/s HCL, Reliance

Business Ethics - Basic Principles

Ethics A study of morality, basically investigating it and generating results of that investigation Morality Standards that an individual or a group has about what is wrong and what is right, or good and evil

Business Ethics - Basic Principles

Moral Standards
The norms about the actions that we believe are morally right or wrong
Example: Stealing is bad, helping others is good

Where do these come from Even though we may believe in them, we dont live up to them all the time

Business Ethics - Basic Principles

Non Moral Standards
Where we dont get caught into dilemmas Language grammatically correct or not Athletic standards etc.

Business Ethics - Basic Principles

Characteristics that distinguish Moral standards and Non Moral standards
Matters that can seriously injure or benefit human beings Moral standards are not established by authoritative bodies like law etc. Are based on impartial considerations These are associated with special emotions, shame, guilt, or pride, self respect These are felt to be preferred over other values

Business Ethics - Basic Principles

Ethics
discipline that examines ones moral standards or that of a society It is normative study, i.e. defines what is wrong or right, and is not a descriptive study like sociology or anthropology

Business Ethics - Basic Principles

Business ethics
Study of moral right and wrong as applied to business Investigates three types of issues
Systemic (Micro and Macro environment) Corporate (issues related to organization) Individual (issues related to individuals in orgs)

Business Ethics - Basic Principles

Ethics and Globalization & rise of MNCs
Ethical Arguments that are pro this process
Products standardization, Economic sizes, more people can access,

Ethical Arguments that are against these processes

Shifting of businesses from places like US with tough environmental laws, selling goods banned elsewhere, differing ethical views of different cultures leading to ethical relativism, polygamy, abortion etc.

Business Ethics - Basic Principles

Arguments against Ethical relativism When two people or two groups have different beliefs, philosophers point out that at least one of them is wrong

Read the handout about Philosopher James Rachels views on this (Handout -1)
There seem to be some universal rights or wrongs, Nazi holocaust, human slavery, discrimination between people on basis of color, caste, creed, religion etc.

Business Ethics - Basic Principles

Technology & Business Ethics
IT creating new ethical challenges on information ownership, individual privacy Biotechnology is raising new questions about fiddling with plants, animal and humans genetically

Business Ethics - Basic Principles

Moral Development process Lawrence Kohlbergs model Six Stages
Level One: Preconventional Stages
Stage One: Punishment & Obedience orientation Stage Two: Instrumental & Relative Orientation
Actions as Instruments for satisfying childs needs

Business Ethics - Basic Principles

Moral Development process Lawrence Kohlbergs model- Six Stages
Level Two: Conventional Stages
Stage Three: Interpersonal Concordance Orientation (peer group, relatives etc.) Stage Four: Law and Order orientation (country, society)