Business ethics

• Businesses must consider their impact on society when making decisions.
• Ethics refers to principles that define behavior as right, good and proper
• Ethics provide a means of evaluating and deciding among competing options
• Ethics refers to well based standards of right and wrong that prescribe what humans ought to do
• Ethics is the continuous effort of studying moral beliefs and moral conduct to ensure living up to reasonable and solidly-based standards
• The question of what is ethical and what is unethical has been debated since the time of Aristotle
• Policies, regulations, standards, prevailing practices, and codes of ethics exist to guide decisions about what ought to be done
• Kantian theory focuses on the means to attain the end, considering the ethical means of arriving at an outcome
• Kant's Categorical Imperative: "Act only on that maxim by which you can and at the same time will, so that it shall become a universal law"
• Ethical values are beliefs about what is right and wrong and what is important in life
• Ethical values rest on principles stressing the importance of treating everyone fairly and equally
• Morals are principles of right and wrong behaviors
• Virtues are behaviors or attitudes that show high moral standard
• Moral reasoning begins with the consideration of a moral or ethical issue
• Ethical Reasoning is reasoning about right and wrong human conduct
• Ethical Decision making process:

  • Identify ethical problems
  • Consider well-being of others and society
  • Clarify and apply ethical values
  • Work toward ongoing improvement in personal, organizational, and social ethics
• Ethics & Leadership:

  • Leaders' behavior and virtuousness determine what they do and who they are
  • Leaders' choices and responses are informed by their ethics
  • Creating an ethical organizational climate requires role model ethical behaviors, rewarding ethical policies, punishing unethical behavior, and discussing ethical assumptions
• Two Broad Areas of Ethics in relation to Business:

  • Managerial mischief/harm/misbehavior
  • Moral mazes of management
• Key Roles and Responsibilities of Management in ethics:

  • Development of ethics programmes
  • Chief executive support
  • Establishing ethics committees
  • Assigning/developing an ethics officer
• Myths about Ethics:

  • Business ethics is not just a matter of religion
  • Employees being ethical does not negate the need for attention to business ethics
  • Business ethics is not a discipline best led by philosophers
  • Business ethics is not superfluous, it focuses on certain ethical values
  • Business ethics is not just for unethical people, it is for everyone
• Myth: Business ethics is not a static concept but rather an organic instrument that can evolve over time
• In organizations, good people can sometimes take bad actions, especially when stressed or confused
• Managing ethics in the workplace involves teamwork to help each other remain ethical and work through ethical dilemmas
• Business ethics has been written about for at least 2,000 years, with increased attention in recent times due to the social responsibility movement starting in the 1960s
• Ethics in organizations are managed indirectly, with the behavior of the organization's founder having a strong moral influence on employees
• Business ethics and social responsibility are related but not the same, with social responsibility being one aspect of the overall discipline of business ethics
• Unethical behavior can occur even if an organization is not in trouble with the law, as unethical actions can go unnoticed and eventually lead to illegal behavior
• Managing ethics in the workplace involves identifying and prioritizing values, establishing policies and procedures, and integrating ethical guidelines into decision-making
• Ethics programs include formal ethics codes, ethics committees, ethics communication systems, ethics officers, ethics training programs, and disciplinary processes
• Ethics programs should establish organizational roles, assess ethics requirements, align behaviors with values, develop awareness of ethical issues, integrate ethical guidelines into decision-making, structure mechanisms for resolving ethical dilemmas, and facilitate ongoing evaluation and updates
• Ethics management is a process that involves ongoing reflection and dialogue to produce tangible deliverables such as codes, policies, and procedures
• Preferred behaviors in the workplace should align with the organization's ethical values to generate fair and just behaviors
• Developing codes of ethics and conduct can help minimize the occurrence of unethical behavior in the workplace
• Ethics decisions should be made in groups and public as appropriate to ensure diverse perspectives and increase credibility
• Ethics management should be integrated with other management practices to reflect ethical values in organizational culture and design policies to produce ethical behaviors
• Cross-functional teams should be involved in developing and implementing ethics management programs to ensure employee participation and ownership
• Value forgiveness as an important component of any management practice to address and support people in addressing their mistakes and continuing to operate ethically
• Trying to operate ethically and making mistakes is better than not trying at all, and organizations should focus on the effort to be ethical rather than perfection
• Managing ethics in the workplace has benefits including improved society, maintaining a moral course in turbulent times, cultivating teamwork and productivity, supporting employee growth and learning, ensuring legal policies, avoiding criminal acts, managing values associated with quality management, strategic planning, and diversity management, promoting a strong public image, and legitimizing managerial actions