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“To educate a person in mind and not in morals is to educate a menace to the society” -Teddy Roosevelt. BUSINESS ETHICS. Presented by: Kashaf Saleem. Ethics and the Law. Law often represents an ethical minimum Ethics often represents a standard that exceeds the legal minimum.
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“To educate a person in mind and not in morals is to educate a menace to the society” -Teddy Roosevelt
BUSINESS ETHICS Presented by: KashafSaleem
Ethics and the Law • Law often represents an ethical minimum • Ethics often represents a standard that exceeds the legal minimum Frequent Overlap Ethics Law
Four Important Ethical Questions • What is? • What ought to be? • How to we get from what is to what ought to be? • What is our motivation for acting ethically?
Why ethics is important in business? • Gain the goodwill of the community • Increase the lifetime of an organization • Produce safe and effective products • Provide excellent service & Maintain customers • Develop and maintain strong employee relations • Enjoy better employee morale
Conflict of Interest • Have two interests - cannot purse one without having negative impact on other
Whistle Blowing • Act of disclosing wrongdoing in an organization • Blowing a whistle to call attention to a thief • When is it ethical to reveal wrongdoing ? • When is it ethical to remain silent? • Consequences?
Truth vs. Loyalty • Spill the truth? • Stay loyal to the company?
Responsibilities towards Stakeholders • Shareholders – Generate profits. Pay dividends • Customers– Good quality products at reasonable prices. Safety, honesty, decency. • Employees– health and safety at work, security, fair pay • Suppliers– pay on time, fair rates, security • Local Community– provide employment, safe working environment, minimise pollution. • Government – abide by the law, pay taxes, abide by regulations • Management – their aims versus those of the organisation as a whole • Environment– limit pollution, congestion, environmental degradation, development, etc.
Ethical Approaches • Utilitarian Approach - which action results in the most good and least harm? • Rights Based Approach - which action respects the rights of everyone involved? • Fairness or Justice Approach - which action treats people fairly? • Common Good Approach - which action contributes most to the quality of life of the people affected? • Virtue Approach - which action embodies the character strengths you value?
How to evaluate morality of actions? • Harms test : Do the benefits outweigh the harms, short term and long term? • Reversibility test : Would I still think this choice is good if I traded places? • Legality test : Would this choice violate a law or a policy of my employer? • Colleague test : What would professional colleagues say? • Wise relative test : What would my wise old aunt or uncle do? • Mirror test : Would I feel proud of myself when I look into the mirror afterward? • Publicity test : How would this choice look on the front page of a newspaper?
