p 2 Ch 7 Principles of Business Ethics

8/18/2019 p 2 Ch 7 Principles of Business Ethics

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IPCC Paper 2: Business Laws, Ethics &

Communications Chapter -7

CA. Dharmendra Madaan


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1 • Ethics

2 • Business Ethics

3 • Distinction between Ethics & Morality

4 • Social Sins by Mahatma Gandhi

5 • Ethical Dilemma

6 • Benefits of Business Ethics


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An Inro.


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Doing theright thing

Way of beinga good

human being


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Vision of one’s own self in all beings

An obligation to consider not only our own personal well-being, but also that of others and of human society as a whole.

To become more and more self less.


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Ethikos - Character

The essence of values and habits of aperson or group.

It covers the analysis and employment ofconcepts such as right and wrong, goodand evil, and acting with responsibility.


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Ethics relates to what is good or bad, andhaving to do with moral duty and obligation.

Principles of conduct governing anindividual or a group.


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An intro.,


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Application of everyday moral or ethical norms to thebusiness

Acting with an awareness of how entity’s productsand services, and the actions of its employees, canaffect its stakeholders and society as a whole

Developing codes of conduct for doing business in anethical manner


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Formalised rules and standardsthat describe what is expected from employees.

Most Widespread Means

by which companies communicate their ethical

standards to the employees or professionals.


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Ethics

The root word for ETHICS is the GreekETHIKOS meaning CHARACTER.

Character is a personal attribute.

People have character .

Ethics are accepted because they followfrom personally accepted principles.

Ethics has a much wider scope.

Morality

MORAL is Latin "MOS" meaningCUSTOM.

Custom is defined by a group overtime.

Societies have custom.

Morals are accepted from an authority(cultural, religious, etc.)

Morals work on a smaller scale thanethics,


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Worship without sacrifice

Science without humanity

Pleasure without Conscience

Knowledge without Character

Commerce without Morality

Wealth without work

Politics without Principles


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An Intro.


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An ethical dilemma is asituation where the decision

maker has to make a choicefrom various alternatives inwhich more than one optionseem right. Ethical dilemmafaced by managers are oftenhighly complex with no clear

guidelines.

An ethical issue is an

identifiable problem,situation, or opportunity thatrequires a person to choosefrom among several actionsthat may be evaluated as

ethical or unethical.


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1• Define the problem clearly.

2

• How would you define the problem if you stood

on the other side of the fence?

3• How did the situation arise?

4

• To whom are you loyal as a person and as amember of the organisation?


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5• What is your intention in making this decision?

6

• How does this intention compare with the

probable results?

7• Whom could your decision or action injure?

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• Can you discuss the problem with the affectedparties before you make your decision?


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9• Are you confident that your position will be as valid over a long period?

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• Could you disclose without any doubt your decision or action to yourboss, your CEO, the Board of Directors, your family, society as a whole?

11• What is the symbolic potential of your action if understood?

Misunderstood?

12• Under what conditions would you allow exceptions to your stand?


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An Intro.


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Strong Teamwork

High Motivation of employees

Easier Labour Recruitment and retention

Improved Society

No exploitation of children and workers


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Total Quality Management

Enhanced Employee Growth

Easier Change Management

No Government Intervention

Greater Productivity


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Customer loyalty

Increase in sales

Increased profitability

Market Expansion

Stronger public image


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Better Corporate Reputation & brand image

Reduced employees turnover

Reduction in cost

Easy availability of finance

Easier acceptance of new products and services


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CA. Dharmendra Madaan

p 2 Ch 7 Principles of Business Ethics

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