Business Ethics PDF

>>>>>>>>  EEEEEEPECE Lecturer: Mr Nesbert Mashingaidze Dphil student(uz), M.Sc.(uz), Mds(msu), B.Sc.(uz), Ex M and E(uz), Cert RM(uz) Contacts:+263 773191014/0713037730 Noel Muzondo, Principles of M&E,...

>>>>>>>>  EEEEEEPECE Lecturer: Mr Nesbert Mashingaidze Dphil student(uz), M.Sc.(uz), Mds(msu), B.Sc.(uz), Ex M and E(uz), Cert RM(uz) Contacts:+263 773191014/0713037730 Noel Muzondo, Principles of M&E, MDU UZ 6/26/2017 2 [email protected]/ [email protected]  us i ne s s a r e B Wh a t Et h i cs ?  Business Ethics:  The standards of conduct and rules based on moral principles governing how businesses and employees should conduct themselves.  Business ethics : the study of business situations, activities, and decisions where issues of right and wrong are addressed (Crane& Matten, 2009)  Business ethics is also known as corporate ethics. It is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment (Wikipedia, 2017).  us i ne s s Wh y a r e B Et h i cs ?  Appearing to be ethical, it may be suggested, is simply to be a good business. Other more specific significance of business ethics are as follows.  Consumers are, arguably, more likely to buy from a company which can be seen to be acting ethically.  Graduates are more likely to be attracted to companies which treat their employees fairly and give customers a fair deal.  Ethical business practice is a means of forestalling legislation and stringent government regulations.  Business ethics requires companies doing their bit to contribute towards a just and fair society, while also ensuring that environmental pollution is brought under control.  Another significance of business ethics stems from the fact that businesses need to retain the vast amount of social power entrusted to them by the public  us i ne s s s o f B Level Et h ics ?  Four different levels of business ethics have been identified based on what type of business and how their actions are evaluated.  1. The society level, which defines ethical behaviour and assesses the effect of business on society.  2. The industry level, which suggests that different industries have their own set of ethical standards (e.g., chemical industry vs. pharmaceutical industry)  3. The company level, under which different companies have their own set of ethical standards  4. The individual manager level, at which each manager and other corporate participants are responsible for their own ethical behaviour  CONSEQUENTLY, one feasible way to judge ethical behaviour is to focus on determinants of business ethics and behaviour such as corporate culture, incentives, opportunities, and choices.  CON DU CT ET H ICA L  Having known the meaning and importance of business ethics, we can see that wanting to be an ethical corporate citizen is not enough; individuals in business must actively practice ethical conduct.  In business, besides obeying laws and regulations, a good and ethical conduct involves the followings.  Competing fairly and honestly: businesses are expected to compete fairly and honestly and not knowingly deceive, intimidate, or misrepresent customers, competitors, clients, or employees.  Communicating truthfully: ethical conduct requires that companies refrain from issuing false or misleading communications.  Businesses should recognise that their communications reflect their image and therefore refrain from untruthful, offensive and misleading communications.  Not causing harm to others: some business executives put their own personal interests ahead of that of employees and shareholders thereby causing harm to them.  Corporate managers can mislead investors by withholding vital information; they sometimes take advantage of the investor by using the company’s earnings or resources for personal gain.  h i c a l Unet i n e s s Bus c t i c e s P ra  Individuals can make unethical choices like:  Conflict of Interest  Bribery, gift-giving and receiving  Invasion of privacy or confidentiality  Dishonest hiring practices  Insurance Fraud / Credit Card Fraud  Internet Abuse  Conflict of Interest:  Situation in which a business decision may be influenced for personal gain.  e - J o b On-th Et h ic a l le m m a s Di Telling the truth and Situation in which a business adhering to deeply felt decision may be influenced ethical principles in for personal gain. business decisions. Business people expect employees to be loyal Employee’s disclosure and truthful, but ethical of illegal, immoral, or conflicts may arise. unethical practices in the organization.  b ut e s o f A t t r i t h i ca l an E c u l t u r e  Sense of employee responsibility.  Freedom to raise concerns without fear of retaliation.  Managers modeling ethical behavior and expressing the importance of integrity.  An understanding by leadership of the pressure points that drive unethical behavior.  Processes to find and fix these areas of pressure.  P L E S O F P RI N C I I N E S S BU S C S A N D ETHI  CO Comply withNa D U C written T code of business conduct.  Provide sufficient training to all personnel within their organization regarding personal responsibility under the code.  Encourage internal reporting of violations of the code with the promise of no retaliation for such reporting.  Self-govern their activities by implementing controls to monitor compliance with all applicable laws and regulations.  Share their best practices in implementing the procedures through participation.  Be accountable to the public, particularly through the completion of an annual Public Accountability Questionnaire.  Et h ica l o n m e nt Envir  Ethical Leadership:  Executives must demonstrate ethical behavior in their actions.  Ethical Action:  Helping employees recognize and reason through ethical problems and turning them into ethical actions.  Social s ib i li t Re s p o n y  Social Responsibility:  The duty to do what is best for the good of society.  Management’s consideration of profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance.  Contributions to the overall economy, job opportunities, and charitable contributions and service.  s i b i l i t Re s p o n ie s t o e n e r a l e GIssues: What to do about inherently thHealth  Public dangerous products P u icas alcohol, tobacco, vaccines, and blsuch steroids.  Protecting the Environment: Using resources efficiently, minimizing pollution.  Recycling: Reprocessing used materials for reuse.  Developing the Quality of the Workforce: Enhancing quality of the overall workforce through education and diversity initiatives.  Corporate Philanthropy: Cash contributions, donations of equipment and products, and supporting the volunteer efforts of company employees.  s i b i l i t Re s p o n ie s t o t o m e r s CutosBe Safe: Safe operation of products, avoiding  The Right product liability.  The Right to Be Informed: Avoiding false or misleading advertising and providing effective customer service.  The Right to Choose: Ability of consumers to choose the products and services they want.  The Right to Be Heard: Ability of consumers to express legitimate complaints to the appropriate parties.