Business Ethics

5/27/2018 Business Ethics

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CETTM MTNL

1M850-Enhancing Managerial Effectiveness

BUSINESS ETHICS

-M.THIAGARAJAN

AM(HR)

CETTM


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Business Ethics:-

*Change is the only constant factor in everyday life.

*The Business environment becomes extremely

complex as change inflicts variety and diversity

leading to deep and fundamental ways.*The changing economic, political, legal and social

environment has also made the Business and

Businessman to consider the ethical approach to

Business.


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*The task of Business is to optimise the outcome ofeconomic activity

*It is the economic environment of Business, which

is primary consideration in evaluating Business

Tactics

*The Purpose of Business is creation of Wealth

through Ethical action and sharing the benefits

equitably for integrated development of societyand Individual.


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Ethics in Business Means

*It is an application of ethics to the complete

community

*It is the Identification of important Business and

Social issues

*It is a way to determine responsibility in BusinessDealings.


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Approaches To Business Ethics:-

1.Identifying Practical issues and assigning

responsibilities

2.Analysing existing practices and framing a code of

conduct

3.Raising Fundamental Philosophical Problems.


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1.Identifying Practical Issues:-

The Kind of ethical issues confronting Business are

*Employee rights

*Ethical Business conduct

*Environmental protection

*Child Labour in practices

*Discrepancies in the wages of Women employee

*Bonded Labour

*Minimum Wages


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2.Analysing Existing Practices and framing code of

conduct:-

*There are areas of conduct which require

Government Regulation or self policing

*This approach of ethics deals with public policy*It deals not only with identification of unethical

practices but assigning responsibilities to check

ethical misdeeds or mistakes in conduct


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3.Fundamental Philosophical Problems

*In this approach it is necessary to ascertain ones

responsibilities and ethical obligations.

*The focus is on people rather than issues. The

primary question is that how one should conducthimself in fulfilling the ethics of Business life.

* This approach deals with the relationship of the

individual and the society.


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Employee Rights:-

1.Job security

2.Handling of Hazardous Material in workplace

3.Equal Employment opportunity

4.Equity and comparable worth

5.Freedom of speech in workplace.


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Employer Rights:-

1.Right to take action against inefficient employees

2.Right to take action after due process

3.Right to safeguard confidential information

4.Right to evaluate employee performance and

personal attitude

5.Right to demand efficiency and productivity

6.No work and No pay


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Honesty:-

*Employee and Organisation relationship

*Security of organisational records

*Insider trading

*Helping a competitor

*Questionable and illegal dealing

*Inappropriate gifts

*Unauthorised payments

*Wrong claims in Advertising content


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*Waste or fraud in Government contracts

*Financial and cash Management procedures


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Use of Corporate Power:-

The organisation have to acknowledge the following

components of workplace

*Workplace safety

*Product safety

*Environmental issues

*Support to political parties

*Social issues raised by socio-religious organisation

*Business Restructuring, downsizing or closure.


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Ethics in Advertising:-

* Ambiguity

*Concealed facts

*Exaggeration

*Psychological appeals


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Take Over and Mergers:-

Events leading to merger:-

*Lack of Funds to compete effectively with

companies with better plant facilities, newer

equipment, and a large workforce

*A growing number of competitors who have

consolidated their respective economic position

through mergers and acquisitions*An environment of liberalisation


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*Intense technological competition, which makes it

more difficult to attain economics of scale and to

retain key personnel

*The emergence of Multinationals with substantial

resources to challenge the market share ofdomestic companies


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Ethical Guidelines:-

1.Golden Rule Model

2.Utilitarian Model


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The End

ThankYou

Business Ethics

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