Business Ethic PDF
Business Ethic PDF
Business Ethic PDF
Page 2 of 64
BUSINESS ETHICS
UNIT-I
As a method, philosophy is often distinguished from other ways of addressing such problems by
its questioning, critical, generally systematic approach and its reliance on rational argument.As a
noun, the term "philosophy" can refer to any body of knowledge. Historically, these bodies of
knowledge were commonly divided into natural philosophy, moral philosophy, and metaphysical
philosophy.[9] In casual speech, the term can refer to any of "the most basic beliefs, concepts, and
attitudes of an individual or group," (e.g., "Dr. Smith's philosophy of parenting").
Ethics: The basic concepts and fundamental principles of decent human conduct. It
includes study of universal values such as the essential equality of all men and women, human
or natural rights, obedience to the law of land, concern for health and safety and, increasingly,
also for the natural environment.
Ethos: Ethos ( the guiding beliefs of a person, group, or organization) is a Greek word
meaning "character" that is used to describe the guiding beliefs or ideals that characterize a
community, nation, or ideology. The Greeks also used this word to refer to the power of music to
influence its hearer's emotions, behaviors, and even morals.
Culture: Culture is, in the words of E.B. Tylor, "that complex whole which includes knowledge,
belief, art, morals, law, custom and any other capabilities and habits acquired by man as a
member of society. culture is, "the way of life, especially the general customs and beliefs, of a
particular group of people at a particular time."
Page 3 of 64
BUSINESS ETHICS
Page 4 of 64
Page 5 of 64
Page 6 of 64
UNIT-II
One is current ethical and moral trends in society. After all, people who behave one way at home
are not likely to be of a different stripe at work. They’re won’t be walking into the office one day
a miraculously changed person. Their behavior at home will most likely be replicated on the job.
That’s why best recruiting practices call for a thorough background check on all potential
employees and chatting will their personal references.
Two is the personal morals and integrity of your organization’s staff and management team. For
sure there will be a segment of managers and staff who tend one way or the other but the wildcard
lies in the dominant office personalities and the sway that they hold over their peers. And don’t
forget the other stressors such as the level of customer conflict and how that can influence staff
and managers to cover up unpleasant exchanges or hide other ethical lapses.
Four is the type of industry you’re talking about and the clout that ethics violations have over the
actions of staff and managers. If it’s a law firm, you’ll probably have more stringent ethical
behavior because of the potential for disciplinary action against attorneys and staff for violating
boundaries. If it’s a government lobbying firm, there will be most likely be more wiggle room
given the nature of the beast. Ethical lapses are not only common in that environment, they’re
almost expected.
In short, there can be many factors that influence business ethics but so much depends on the
people, the industry and the social norms. Without knowledge of those facts, there are few easy
answers to this question. Nevertheless, those are a few.
In taking decisions involving ethical issues a business must take in to several considerations.
Among others these include:
Page 7 of 64
Identification of stakeholders of the business and their rights and responsibilities. The
stakeholder generally include customers, employees, shareholder or owners, suppliers, other
business partners, government and other statutory organizations, and general public.
Importance of profit and other similar motives of the business and its managers in relation
to the importance of morality, honesty and other similar values.
The extent of responsibility of business for specific areas of responsibility to community
in general. Among others it includes environmental protection, equality and fairness in dealing
with people among all stake holder groups, product quality and reliability, and abetting
corruption.
Personal value system and belief of the managers and owners of the business.
Impact of ethical behavior on short term and long term business performance and
prospects.
2.companies policy.
3.ethical standards imposed on managers.
4.ethical climate of the country
1.unhealthy competition
2.obnormal profit motive
3.political interference
4.political uncertainty
5.unjust legislation
6.corruption
7.lack of ethical attitude
8.lack of education
9.lack of cooperation on workers
10.red tapism
1. Technological factor
Advances in technology can help improve productivity of labour, also as reduce transportation
costs, distribution costs, communication costs and production costs. Examples of it include
Page 8 of 64
Indian culture is complex in nature and with diversity in religion and their customs we live with
unity. The two most important tenets of Indian culture are human Values and Holism. Human
values refer to moral, spiritual and ethical values while Holism means oneness or unity. Indian
culture is very rich and diverse and teaches us to be tolerant to others. Human values are
inculcated from the Vedic teachings to lead a peaceful integrated life. Indian Culture shows us
evidences of development of values in life by training and experience. The Bhagawad Gita is
considered as the essence of the Vedas and Upanishads. Important values that are ever relevant
and unchanging are found in the form of scriptural texts in the Indian culture.
Vedas
Page 9 of 64
A man has duties and commitments in all stages of life. The Vedas teaches how to perform them.
It contains entire range of knowledge. Veda is the source of all Dharma i.e. religion, morality,
righteousness and good conduct. It has the highest authority over other materials of the past.
According to the Vedas, the nobler virtue is truth, and then follows other virtues.
Bhagavad Gita
The Bhagavad Gita acts as powerful catalyst for change and renovation in one’s life. The verses
from this book contribute to improve self-reflection, better the senses and expands one’s inner
development, makes the life more active and joy at any circumstances, through attitudinal
changes in the individuals. It offers us the tools to connect with our deepest insubstantial spirit,
and leads us to participate in the battle of life.
Manusmriti
Manusmriti is one of the earliest and most authoritative law texts followed by the Hindus,
covering a wide range of topics such as creation of the world, sacraments like ‘Upanayana’ and
marriage; duties of men and women placed in different strata of society and stages of life;
penitential rites for violation of codes of conduct; and so on. According to Manusmriti, Dharma is
essential for the individual’s happiness and for the family and the society.
Ramayana
Ramayana contains the universal human values and the sense of morality which can regulate the
code of society for the betterment of establishing peace. It is because, through various characters,
social and moral values are displayed. There is an explanation in this epic to differentiate the term
human value from social value. Rama sacrificed all his pleasures for the welfare of the subjects of
his kingdom. He abandoned Sita for the satisfaction of his criticisers.
Kamasutra
This book written by vatsyayana explores the quality of life in general, and how to attain the level
of sattva or goodness in a successful material and spiritual life. It also highlights the importance
of personal evolution that culminates in the highest success of human existence.
Jataka-tales
Page 10 of 64
Jataka tales are important part of Buddhist literature. Jatak stories represent former incarnations of
Buddha and are intended to impart values of self-sacrifice, morality, honesty and other
informative values to people.
Dhammapadda
Better known as the path of wisdom is concerned with establishment well-being and happiness in
the immediately visible sphere of concrete human relations. It pursues a man to go in the path of
light, and strengthen himself to fight the temptations of worldly pleasures.
The following are the major differences between Indian Culture and Western Culture
1. The culture which is prevalent in India is known as Indian Culture. The culture,
widespread in the western countries is known as Western Culture.
2. Indian Culture has a variety of religions like Hinduism, Islam, Sikhism, Christianity, etc.
while in Western Culture the people mostly belong to Christianity.
3. In Indian Culture, joint families are common. Conversely, In Western Culture, small
families are there.
4. The traditional Indian outfit is worn in Indian Culture. In contrast to Western culture, there
is no such traditional outfit.
5. A variety of Folk, Classical, Bollywood songs are preferred in Indian Culture. On the
other hand, Western Culture promotes Hip-Hop, Jazz, Blues, Rap, Heavy metal and Rock
music.
6. Hindi is mainly spoken in Indian Culture but in the case of Western Culture, English is
spoken in a high ratio.
Conclusion
Both Indian Culture and Western Culture are good at their places. There is a lot to learn from both
the cultures. For last few decades, Indian culture, has been influenced by the western culture and
they are adopting the merits of the western culture like cleanliness, equal rights for both men
and women, frankness, etc. which helped in removing the shortcomings of Indian culture.
Similarly, western culture is also getting an Indian touch in terms of Indian cuisine and yoga.
ETHOS
Page 12 of 64
UNIT-III
Teleological ethics
The Greek word telos means goal, end, or purpose, and teleology is the study of goals, ends and
purposes. A moral theory is regarded as teleological to the extent that it defines and explains right
actions in terms of the bringing about some good state of affairs. For example, a moral theory that
maintains that the rightness of an action is one which achieves the goal of
maximizing happiness counts as a teleological theory. The two main types of theory brought
under the rubric of teleological ethics are Utilitarianism and the varieties of ancient
Greek virtueethics. Aristotle’s ethics is the most influential example of a virtueethical theory, and
the most well known example of a Utilitarian moral theory is Classical Utilitarianism.
Teleological ethics may be contrasted with non-teleological ethics, of which deontological
theories provide the best-known example. Teleological and Deontological ethical theories
Ethical theories are often divided into two groups: teleological and deontological theories. One
standard way of drawing the teleological/deontological distinction is in terms of how moral
theories specify the relation between the two central concepts of ethics: the good and the right.
The concept of the right is, roughly, the concept of duty, the concept of which actions we ought to
perform, which it would be wrong not to perform. The concept of the good (the target of the
theory of value, or axiolology (Greek: axios = worthy; logos = study of)) is concerned with the
morally good properties of human beings, as well as states such as pleasure, and the experience of
beauty, both of which are thought to be intrinsically good things.
Although different moral theories (or normative theories) embody different approaches to the
concepts of the "good" and the "right," each must have something to say about these concepts and
the way in which they are related. In other words, every ethical theory will propose a theory of
right action and a theory of value, and explain how these theories connect up to one another. The
theory of right action is an investigation and an attempt to answer the question: what ought I to
do? The "ought" in this question is to be interpreted as a moral ought, and may be understood as
equivalent to the question, "what is the right thing to do?" The theory of value provides an
account of what things are good, what states of affairs ought to be promoted, or what we would
like to have realised. These states include things such as pleasure, freedom, and knowledge.
Page 18 of 64
On a standard taxonomy, moral theories divide up according to how they specify the relation
between the "right" and the "good." In other words, moral theories may be classified according to
how their theory of value and their theory of right relate to one another. There are, it is said, two
possible ways in which the theory of value may connect up with the theory of right action. This is
either a teleological connection or a not a teleological connection. The Greek word telos means
goal, end, or purpose, and teleology is the study of goals, ends and purposes. A teleological
connection between the theory of right and the theory of value, therefore, emphasises that
morality is oriented toward bringing about a certain goal. A non-teleological connection denies
this. Let us try to make this more precise:
[Def: TM] A teleological moral theory defines right action in terms of the good.
All this may seem rather technical but should become clearer by considering an example of a
teleological and a non-teleological theory. Firstly, consider Classical Utilitarianism as an example
of a teleological moral theory. Classical utilitarianism can be broken down into two main
components: a theory of value (or the "good"), and a theory of right action. Classical
Utilitarianism endorses hedonism as theory of value. Hedonism then, is meant to spell out what is
good. A Classical Utilitarian would formulate this in terms of utility; quite literally, utility is that
which is useful to human beings. Secondly, Classical Utilitarianism endorses consequentialism as
a theory of right action. A theory of right action specifies what actions moral agents ought to
perform; and consequentialism says that the rightness of an action is determined by its
consequences. This is incipient, if not fully articulate, in Mill’s formulation of the Principle of
Utility, which he regards as the fundamental moral principle: “The creed which accepts as the
foundation of morals, Utility, or the Greatest Happiness Principle, holds that actions are right in
proportion as they tend to promote happiness; wrong as they tend to produce the reverse of
happiness.”
Classical Utilitarianism is called a teleological moral theory because it defines right action in
terms of the promotion of pleasure. (Pleasure, for the Classical Utilitarian, is the good.) The right
action is the one which beings about (as its goal; hence the connection to telos) the most overall
pleasure for everyone concerned.
Now, contrast this example of a teleological moral theory with an example of a deontological
theory. A deontological theory (e.g. Kant’s) maintains that the wrongness of (some) actions is
intrinsic, or resides in the kind of action that it is, rather than the consequences it brings about. So,
Page 19 of 64
for example, an act of killing an innocent man is wrong because it is the killing of an innocent
man, rather than because it deprives someone of future happiness and causes grief to a family. So
deontological theories do not define the notion of right action in terms of the promotion of good
consequences. The rightness of an action is not determined by the goal it achieves, and this makes
it non teleological as a moral theory.
This classification outlined above, while common enough, is a bit misleading for the relation
between the theory of the right and the theory of value is not quite as straightforward as might
initially be thought. Firstly, ancient Greek ethical theories are usually considered as teleological
moralities, but do not fit easily into the above schema [Def: TM]. The above schema [Def: TM]
says that a moral theory is teleological to the extent that it defines right action in terms of the
promotion of good states of affairs. In shorthand, this is to say that teleological theories define the
"right" in terms of the "good." To see the problem, we shall need to consider some details of
ancient Greek ethics, of which, perhaps, the most well known example is Aristotle’s virtue theory.
According to Aristotle, the goal of ethics is to explain how one achieves the good life for human
beings. Aristotle considers the good for man to be eudaimonia, which is most often translated as
happiness. He argues that the good for man, (i.e., eudaimonia), is achieved by means of virtuous
activity. Very roughly, he thinks that living virtuously is the best way of securing a happy (or
eudaimon) life. His idea is that by possessing certain characteristics such as courage and wisdom,
one will be equipped with the skills necessary to live well and succeed in living the best possible
life one’s circumstances will permit. It is noteworthy, then, that Aristotle’s theory is based around
the notion of virtue rather than right action. It is concerned foremost with the states of a good
person (virtues and vices), rather than which actions are right and which are wrong. This is not to
say that he neglects right action, but only that he is most centrally concerned with virtuous
character.
Now, given this brief characterization, it is easy to see why Aristotle’s theory is usually regarded
as a teleological morality. This is because Aristotle says that virtuous activity is activity which
enables a person to live the good and happy life. In this respect, the concept of a virtue is that of
which enables its possessor to achieve a certain goal, namely happiness. This makes it reasonable
to regard Aristotle’s theory as a teleological moral theory; and much the same applies to the other
Greek moral philosophers (see the article on eudaimonia).
Page 20 of 64
The problem however is that the schema [Def: TM] outlined above does not include Aristotle’s
theory as a teleological theory because Aristotle does not define the right in terms of the good.
For him, the right action is part of virtuous action; it is the action which a virtuous person, or
more particularly, a practically wise person would do. So the problem is that our criterion for a
teleological morality seems to exclude Aristotle’s theory, which is generally regarded as a
paradigmatic example of a teleological theory.
One way of solving this problem is to relax our definition of a teleological theory somewhat.
Earlier we said that a teleological theory defines the right in terms of the good. We may widen
this definition by saying that a teleological theory defines normative properties in terms of the
good. Normative properties include concepts such as rightness, wrongness, virtue, and
praiseworthiness. This is consistent with the spirit of normative ethics since it is not exclusively
concerned with the rightness of actions, but is also interested in understanding and explaining
properties such as "virtuous," "praiseworthy," and "blameworthy." By broadening the schema
beyond rightness, we may propose that a moral theory is teleological to the extent that it explains
normative properties in general in terms of the promotion of some good. More precisely, we shall
emend our earlier definition:
[Def 2: TM] A teleological moral theory defines normative properties in terms of the
good.
Consider what this entails with reference to Classical Utilitarianism. Since rightness is but one
normative property amongst many, this does not exclude theories which focus on right action
from being teleological moral theories. So by widening the definition of teleological moral
theories Classical Utilitarianism remains where it seems to belong. Secondly, a Utilitarian, while
focusing primarily on right action need not ignore other normative properties such as virtue. Our
definition allows the Classical Utilitarian to treat virtues teleologically by saying (e.g.) that a trait
of character is to be considered a virtue to the extent that it tends to produce happiness. A trait
such as courage, for example, is a virtue because of a person with courage makes everyone
happier. And this coheres quite nicely with what Utilitarians (Mill for example)have said about
virtue as opposed to right action.
Another advantage of [Def 2: TM] is that it also enables us to understand Aristotle’s theory as
teleological in a similar way. Aristotle says that trait of character is a virtue to the extent that it
contributes to the happiness (eudaimonia) of its possessor; and since virtue is normative property,
Page 21 of 64
we have brought Aristotle’s theory within the range of a teleological morality, where it would
seem to belong.
Finally, we should note another implication of the adoption of [Def 2: TM] as the criterion of
distinction for teleological theories. The point encapsulated in [Def 2: TM] is that the category of
teleological ethics need not be too concerned with actions rather than (e.g.) states of character,
and normative properties in general. But this possibility of treating normative properties other
than rightness teleologically entails that the proper contrast to teleological ethics is not
deontological ethics; rather, deontological ethics refers to accounts of right action and therefore is
best thought of as a subset of non-teleological accounts. Deontology is a non-teleological account
of right action, and does not cover non-teleological accounts of (e.g.) virtuous character.
UTILITARIANISM
Utilitarianism is a theory in normative ethics holding that the best moral action is the one that
maximizes utility. Utility is defined in various ways, but is usually related to thewell-
being of sentient entities. Originally, Jeremy Bentham, the founder of Utilitarianism, defined
utility as the aggregate pleasure after deducting suffering of all involved in any action. John Stuart
Mill expanded this concept of utility to include not only the quantity, but quality of pleasure,
while focusing on rules, instead of individual moral actions. Others have rejected that pleasure
has positive value and have advocated negative utilitarianism, which defines utility only in terms
of suffering. As opposed to this hedonisticview, some define utility with relation
to preference satisfaction whereas others believe that a range of values can be included in its
definition.
Utilitarianism is a form of consequentialism, which states that the consequences of any action are
the only standard of right and wrong. This view can be contrasted or combined with virtue
ethics which holds virtue as a moral good. Some believe that one's intentions are also ethically
important. Utilitarianism is distinctly different from other forms of consequentialism such
as egoism as it considers all interests equally. Proponents of utilitarianism have been split about
whether individual acts should conform to utility (act utilitarianism) or whether agents should
conform to ethical rules (rule utilitarianism). Utilitarians additionally remain split about whether
utility should be calculated as an aggregate (total utilitarianism) or an average (average
utilitarianism).
Page 22 of 64
Historically, hedonism can be traced back to Aristippus and Epicurus who viewed happiness as
the only good. Bentham is, however, credited with founding utilitarianism when he wrote An
Introduction to the Principles of Morals and Legislation. Since Bentham, prominent utilitarians
have included John Stuart Mill, Henry Sidgwick, R.M. Hare and Peter Singer. The philosophy has
been applied to modern issues including the suffering of non-human animals. Specifically,
utilitarianism has been applied to the ethics of raising animals for food and the ethics of wild
animal suffering. Effective altruism is a philosophy aimed at improving the world through
evidence based means, which has been supported on utilitarian grounds.
Opponents of utilitarianism have criticized it for many reasons. Some have said that utilitarianism
ignores justice while others contend that utilitarianism is impractical. Specific criticisms have
included the mere addition paradox and the utility monster. Others have said that pleasure is not
commensurable across people with varying identities and thus the idea of aggregating utility is
impossible.
Ethics are the norms by which acceptable and unacceptable behavior are measured. According to
the beliefs of the ancient Greek philosopher Socrates, one develops ethics through maturity,
wisdom and love. Socrates introduced the concept of teaching ethics and acceptable standards o f
conduct in 400 B.C. and has had a profound and lasting impact on the course of Western
philosophy and history ever since. He believed virtue was found primarily in human relationships,
love and friendship, not through material gains.
account of his own. Second, the positive accounts contained in his later works, especially that of
the Republic, treat happiness as a state of perfection that is hard to comprehend because it is based
on metaphysical presuppositions that seem both hazy and out of the realm of ordinary
understanding. In other dialogues he confines himself to intimations of different aspects of what is
good in and for the soul, intimations that are hard to fit together in a coherent picture. There is
not, as there is in Aristotle, much talk about happiness as a self-sufficient state of the active
individual. Third, in crucial texts Plato's moral ideals appear both austere and self-abnegating: the
soul is to remain aloof from the pleasures of the body; communal life demands the subordination
of individual wishes and aims.
According to Aristotle, things of any variety have a characteristic function that they are
properly used to perform. The good for human beings, then, must essentially involve the entire
proper function of human life as a whole, and this must be an activity of the soul that expresses
genuine virtue or excellence. (Nic. Ethics I 7) Thus, human beings should aim at a life in full
conformity with their rational natures; for this, the satisfaction of desires and the acquisition of
material goods are less important than the achievement of virtue. A happy person will exhibit a
personality appropriately balanced between reasons and desires,
with moderation characterizing all. In this sense, at least, "virtue is its own reward." True
happiness can therefore be attained only through the cultivation of the virtues that make a
human life complete. The Nature of Virtue
Ethics is not merely a theoretical study for Aristotle. Unlike any intellectual capacity, virtues
of character are dispositions to act in certain ways in response to similar situations, the habits of
behaving in a certain way. Thus, good conduct arises from habits that in turn can only be acquired
by repeated action and correction, making ethics an intensely practical discipline.
Each of the virtues is a state of being that naturally seeks its mean {Gk. μεσος [mesos]}
relative to us. According to Aristotle, the virtuous habit of action is always an intermediate state
between the opposed vices of excess and deficiency: too much and too little are always wrong;
the right kind of action always lies in the mean.
Page 24 of 64
The ethical theory of John Stuart Mill (1806-1873) is most extensively articulated in his classical
text Utilitarianism(1861). Its goal is to justify the utilitarian principle as the foundation of morals.
This principle says actions are right in proportion as they tend to promote overall human
happiness. So, Mill focuses on consequences of actions and not on rights nor ethical sentiments.
2. Mill’s Theory of Value and the Principle of Utility
Mill defines "utilitarianism" as the creed that considers a particular “theory of life” as the
“foundation of morals” (CW 10, 210). His view of theory of life was monistic: There is one thing,
and one thing only, that is intrinsically desirable, namely pleasure. In contrast to a form of
hedonism that conceives pleasure as a homogeneous matter, Mill was convinced that some types
of pleasure are more valuable than others in virtue of their inherent qualities. For this reason, his
position is often called “qualitative hedonism”. Many philosophers hold that qualitative hedonism
is no consistent position. Hedonism asserts that pleasure is the only intrinsic value. Under this
assumption, the critics argue, there can be no evaluative basis for the distinction between higher
and lower pleasures. Probably the first ones to raise this common objection were the British
idealists F. H. Bradley (1876/1988) and T. H. Green (1883/2003).
Which inherent qualities make one kind of pleasure better than another, according to Mill? He
declares that the more valuable pleasures are those which employ “higher faculties” (CW 10,
211). The list of such better enjoyments includes “the pleasures of intellect, of the feelings and
imagination, and of the moral sentiments” (CW 10, 211). These enjoyments make use of highly
developed capacities, like judgment and empathy. In one of his most famous sentences, Mill
affirms that it “is better to be a human being dissatisfied than a pig satisfied; better to be Socrates
dissatisfied than a fool satisfied” (CW 10, 212). This seems to be a surprising thing to say for a
hedonist. However, Mill thought that we have a solid empirical basis for this view. According to
him, the best obtainable evidence for value claims consists in what all or almost all people judge
as valuable across a vast variety of cases and cultures. He makes the empirical assertion that all or
almost all people prefer a “manner of existence” (CW 10, 211) that employs higher faculties to a
manner of existence which does not. The fact that “all or almost all” who are acquainted with
pleasures that employ higher faculties agree that they are preferable to the lower ones, is empirical
evidence for the claim that they are indeed of higher value. Accordingly, the best human life
Page 25 of 64
(“manner of existence”) is one in which the higher faculties play an adequate part. This partly
explains why he put such great emphasis on education.
In Utilitarianism, Mill designs the following model of moral deliberation. In the first step the
actor should examine which of the rules (secondary principles) in the moral code of his or her
society are pertinent in the given situation. If in a given situation moral rules (secondary
principles) conflict, then (and only then) can the second step invoke the formula of utility (CW
10, 226) as a first principle. Pointedly one could say: the principle of utility is for Mill not
a component of morality, but instead its basis. It serves the validation of rightness for our moral
system and allows – as a meta-rule – the decision of conflicting norms. In the introductory chapter
of Utilitarianism, Mill maintains that it would be “easy to show that whatever steadiness or
consistency these moral beliefs have attained, has been mainly due to the tacit influence of a
standard not recognized” (CW 10, 207), namely the principle of utility. The tacit influence of the
principle of utility made sure that a considerable part of the moral code of our society is justified
(promotes general well-being). But other parts are clearly unjustified. One case that worried Mill
deeply was the role of women in Victorian Britain. In “The Subjection of Women” (1869) he
criticizesthe “legal subordination of one sex to the other” (CW 21, 261) as incompatible with “all
the principles involved in modern society” (CW 21, 280).
Moral rules are also critical for Mill because he takes human action in essence as to be guided by
dispositions. A virtuous person has the disposition to follow moral rules. In his early essay
“Remarks on Bentham’s Philosophy” (1833) he asserts that a “man is not really virtuous” (CW
10, 12), unless the mere thought of committing certain acts is so painful that he does not even
consider the possibility that they may have good consequences. He repeats this point in his System
of Logic(1843)and Utilitarianism:
[T]he mind is not in a right state, not in a state conformable to Utility, not in the state most
conducive to the general happiness, unless it does love virtue in this manner - as a thing desirable
in itself, even although, in the individual instance, it should not produce those other desirable
consequences which it tends to produce, and on account of which it is held to be virtue. (CW 10,
235 and 8, 952).
Page 26 of 64
It is one thing to say that it could have optimal consequences (and thus be objectively better) to
break a moral rule in a concrete singular case. Another is the question as to whether it would
facilitate happiness to educate humans such that they would have the disposition to maximize
situational utility. Mill answers the latter in the negative. Again, the upshot is that education
matters. Humans are guided by acquired dispositions. This makes moral degeneration, but also
moral progress possible.
Kantian ethics
In his combined works, Kant constructed the basis for an ethical law from the concept of
duty.[3] Kant began his ethical theory by arguing that the only virtue that can be unqualifiedly
good is a good will. No other virtue has this status because every other virtue can be used to
achieve immoral ends (the virtue of loyalty is not good if one is loyal to an evil person, for
example). The good will is unique in that it is always good and maintains its moral value even
when it fails to achieve its moral intentions. [4] Kant regarded the good will as a single moral
principle which freely chooses to use the other virtues for moral ends. [5]
For Kant a good will is a broader conception than a will which acts from duty. A will which acts
from duty is distinguishable as a will which overcomes hindrances in order to keep the moral law.
Page 27 of 64
A dutiful will is thus a special case of a good will which becomes visible in adverse conditions.
Kant argues that only acts performed out of duty have moral worth. This is not to say that acts
performed merely in accordance with duty are worthless (these still deserve approval and
encouragement), but that special esteem is given to acts which are performed out of duty. [6]
Kant's conception of duty does not entail that people perform their duties grudgingly. Although
duty often constrains people and prompts them to act against their inclinations, it still comes from
an agent's volition: they desire to keep the moral law. Thus, when an agent performs an action
from duty it is because the rational incentives matter to them more than their opposing
inclinations. Kant wished to move beyond the conception morality as externally imposed duties
and present an ethics of autonomy, when rational agents freely recognise the claims reason makes
upon them.[7]
Jeremy Bentham was an English philosopher and political radical. He is primarily known today
for his moral philosophy, especially his principle of utilitarianism, which evaluates actions based
upon their consequences. The relevant consequences, in particular, are the overall happiness
created for everyone affected by the action. Influenced by many enlightenment thinkers, especially
empiricists such as John Locke and David Hume, Bentham developed an ethical theory grounded
in a largely empiricist account of human nature. He famously held a hedonistic account of both
motivation and value according to which what is fundamentally valuable and what ultimately
motivates us is pleasure and pain. Happiness, according to Bentham, is thus a matter of
experiencing pleasure and lack of pain. Moral Philosophy
As Elie Halévy (1904) notes, there are three principal characteristics of which constitute the basis
of Bentham's moral and political philosophy: (i) the greatest happiness principle, (ii) universal
egoism and (iii) the artificial identification of one's interests with those of others. Though these
characteristics are present throughout his work, they are particularly evident in the Introduction to
the Principles of Morals and Legislation, where Bentham is concerned with articulating rational
principles that would provide a basis and guide for legal, social and moral reform.
To begin with, Bentham's moral philosophy reflects what he calls at different times "the greatest
happiness principle" or "the principle of utility"—a term which he borrows from Hume. In
Page 28 of 64
adverting to this principle, however, he was not referring to just the usefulness of things or
actions, but to the extent to which these things or actions promote the general happiness.
Specifically, then, what is morally obligatory is that which produces the greatest amount of
happiness for the greatest number of people, happiness being determined by reference to the
presence of pleasure and the absence of pain. Thus, Bentham writes, "By the principle of utilit y is
meant that principle which approves or disapproves of every action whatsoever, according to the
tendency which it appears to have to augment or diminish the happiness of the party whose
interest is in question: or, what is the same thing in other words, to promote or to oppose that
happiness." And Bentham emphasizes that this applies to "every action whatsoever" (Ch. 1). That
which does not maximize the greatest happiness (such as an act of pure ascetic sacrifice) is,
therefore, morally wrong. (Unlike some of the previous attempts at articulating a universal
hedonism, Bentham's approach is thoroughly naturalistic.)
Bentham's moral philosophy, then, clearly reflects his psychological view that the primary
motivators in human beings are pleasure and pain. Bentham admits that his version of the
principle of utility is something that does not admit of direct proof, but he notes that this is not a
problem as some explanatory principles do not admit of any such proof and all explanation must
start somewhere. But this, by itself, does not explain why another's happiness—or the general
happiness—should count. And, in fact, he provides a number of suggestions that could serve as
answers to the question of why we should be concerned with the happiness of others.
First, Bentham says, the principle of utility is something to which individuals, in acting, refer
either explicitly or implicitly, and this is something that can be ascertained and confirmed by
simple observation. Indeed, Bentham held that all existing systems of morality can be "reduced to
the principles of sympathy and antipathy," which is precisely that which defines utility. A second
argument found in Bentham is that, if pleasure is the good, then it is good irrespective of whose
pleasure it is. Thus, a moral injunction to pursue or maximize pleasure has force independently of
the specific interests of the person acting. Bentham also suggests that individuals would
reasonably seek the general happiness simply because the interests of others are inextricably
bound up with their own, though he recognized that this is something that is easy for individuals
to ignore. Nevertheless, Bentham envisages a solution to this as well. Specifically, he proposes
that making this identification of interests obvious and, when necessary, bringing diverse interests
together would be the responsibility of the legislator.
Page 29 of 64
Finally, Bentham held that there are advantages to a moral philosophy based on a principle of
utility. To begin with, the principle of utility is clear (compared to other moral principles), allows
for objective and disinterested public discussion, and enables decisions to be made where there
seem to be conflicts of (prima facie) legitimate interests. Moreover, in calculating the pleasures
and pains involved in carrying out a course of action (the "hedonic calculus"), there is a
fundamental commitment to human equality. The principle of utility presupposes that "one man is
worth just the same as another man" and so there is a guarantee that in calculating the greatest
happiness "each person is to count for one and no one for more than one."
For Bentham, then, there is no inconsistency between the greatest happiness principle and his
psychological hedonism and egoism. Thus, he writes that moral philosophy or ethics can be
simply described as "the art of directing men's action to the production of the greatest possible
quantity of happiness, on the part of those whose interest is in view."
Marxist Ethics
the Communist Party, “Does it require deep intuition to comprehend that man’s ideas, views and
conceptions, in one word, man’s consciousness, changes with every change in the conditions of
his material existence, in his social relations and in his social life?” 2 By Marx’s definition, our
social and economic status is always changing according to the laws of the dialectic, so our ideas
about morality must also be in a state of continual change.
V.I. Lenin answers the charge that the inevitability of change in both history and ethics precludes
the existence of a moral code in Marxist philosophy: “Is there such a thing as communist
morality? Of course there is. It is often suggested that we have no ethics of our own; very often
the bourgeoisie accuse us Communists of rejecting all morality. This is a method of confusing the
issue, of throwing dust in the eyes of the workers and peasants. In what sense do we reject ethics,
reject morality? In the sense given to it by the bourgeoisie, who based ethics on God’s
commandments. On this point we, of course, say that we do not believe in God, and that we know
perfectly well that the clergy, the landowners and the bourgeoisie invoked the name of God so as
to further their own interests as exploiters.”3 In Lenin’s view, Communist morality had to evolve
beyond that morality of outdated Christian myth used by the exploiting class to suppress the
exploited class.
An ethical ideology that includes the inevitability of change and the evolution of morals leaves
Marxists free to abandon generally accepted moral standards in pursuit of a greater good—the
creation of a classless communist society. This pursuit requires Marxists to dedicate themselves to
the cause and to use whatever action they believe will bring about a classless society. Any course
of action then, no matter how immoral it appears to a world that believes in an absolute or
universal moral standard, is morally good within the Marxist-Leninist worldview.
Page 31 of 64
Page 32 of 64
Page 33 of 64
The theory holds that moral reasoning, the basis for ethical behavior, has six
identifiable developmental stages, each more adequate at responding to moral dilemmas than its
predecessor.[2] Kohlberg followed the development of moral judgment far beyond the ages studied
earlier by Piaget,[3] who also claimed that logic and morality develop through constructive
stages.[2] Expanding on Piaget's work, Kohlberg determined that the process of moral
development was principally concerned with justice, and that it continued throughout the
individual's lifetime,[4] a notion that spawned dialogue on the philosophical implications of such
research.[5][6]
The six stages of moral development are grouped into three levels: pre-conventional morality,
conventional morality, and post-conventional morality.
Stages
Kohlberg's six stages can be more generally grouped into three levels of two stages each: pre-
conventional, conventional and post-conventional.[7][8][9] Following Piaget's constructivist
requirements for a stage model, as described in his theory of cognitive development, it is
Page 34 of 64
extremely rare to regress in stages—to lose the use of higher stage abilities.[14][15] Stages cannot
be skipped; each provides a new and necessary perspective, more comprehensive and
differentiated than its predecessors but integrated with them. [14][15]
Level 1 (Pre-Conventional)
2. Self-interest orientation
Level 2 (Conventional)
(Social norms)
Level 3 (Post-Conventional)
(Principled conscience)
Page 35 of 64
Pre-conventional
The pre-conventional level of moral reasoning is especially common in children, although adults
can also exhibit this level of reasoning. Reasoners at this level judge the morality of an action by
its direct consequences. The pre-conventional level consists of the first and second stages of
moral development and is solely concerned with the self in an egocentric manner. A child with
pre-conventional morality has not yet adopted or internalized society's conventions regarding
what is right or wrong but instead focuses largely on external consequences that certain actions
may bring.[7][8][9]
In Stage one (obedience and punishment driven), individuals focus on the direct consequences of
their actions on themselves. For example, an action is perceived as morally wrong because the
perpetrator is punished. "The last time I did that I got spanked, so I will not do it again." The
worse the punishment for the act is, the more "bad" the act is perceived to be. [16] This can give
rise to an inference that even innocent victims are guilty in proportion to their suffering. It is
"egocentric," lacking recognition that others' points of view are different from one's own. [17] There
is "deference to superior power or prestige."[17]
Stage two (self-interest driven) expresses the "what's in it for me" position, in which right
behavior is defined by whatever the individual believes to be in their best interest but understood
in a narrow way which does not consider one's reputation or relationships to groups of people.
Stage two reasoning shows a limited interest in the needs of others, but only to a point where it
might further the individual's own interests. As a result, concern for others is not based on loyalty
or intrinsicrespect, but rather a "You scratch my back, and I'll scratch yours" mentality.[2] The lack
of a societal perspective in the pre-conventional level is quite different from the social contract
(stage five), as all actions at this stage have the purpose of serving the individual's own needs or
interests. For the stage two theorist, the world's perspective is often seen as morally relative.
Page 36 of 64
An example of self-interest driven is when a child is asked by his parents to do a chore. The child
asks, "what's in it for me?" The parents offer the child an incentive by giving a child an allowance
to pay them for their chores. The child is motivated by self-interest to do chores.
Conventional
The conventional level of moral reasoning is typical of adolescents and adults. To reason in a
conventional way is to judge the morality of actions by comparing them to society's views and
expectations. The conventional level consists of the third and fourth stages of moral development.
Conventional morality is characterized by an acceptance of society's conventions concerning right
and wrong. At this level an individual obeys rules and follows society's norms even when there
are no consequences for obedience or disobedience. Adherence to rules and conventions is
somewhat rigid, however, and a rule's appropriateness or fairness is seldom questioned. [7][8][9]
In Stage three (good intentions as determined by social consensus), the self enters society by
conforming to social standards. Individuals are receptive to approval or disapproval from others
as it reflects society's views. They try to be a "good boy" or "good girl" to live up to these
expectations,[2] having learned that being regarded as good benefits the self. Stage three reasoning
may judge the morality of an action by evaluating its consequences in terms of a
person'srelationships, which now begin to include things like respect, gratitude, and the "golden
rule". "I want to be liked and thought well of; apparently, not being naughty makes people like
me." Conforming to the rules for one's social role is not yet fully understood. The intentions of
actors play a more significant role in reasoning at this stage; one may feel more forgiving if one
thinks, "they mean well ..."[2]
In Stage four (authority and social order obedience driven), it is important to obey laws, dictums,
and social conventionsbecause of their importance in maintaining a functioning society. Moral
reasoning in stage four is thus beyond the need for individual approval exhibited in stage three. A
central ideal or ideals often prescribe what is right and wrong. If one person violates a law,
perhaps everyone would—thus there is an obligation and a duty to uphold laws and rules. When
someone does violate a law, it is morally wrong; culpability is thus a significant factor in this
stage as it separates the bad domains from the good ones. Most active members of society remain
at stage four, where morality is still predominantly dictated by an outside force. [2]
Page 37 of 64
Post-Conventional
The post-conventional level, also known as the principled level, is marked by a growing
realization that individuals are separate entities from society, and that the individual’s own
perspective may take precedence over society’s view; individuals may disobey rules inconsistent
with their own principles. Post-conventional moralists live by their own ethical principles—
principles that typically include such basic human rights as life, liberty, and justice. People who
exhibit post-conventional morality view rules as useful but changeable mechanisms—ideally
rules can maintain the general social order and protect human rights. Rules are not absolute
dictates that must be obeyed without question. Because post-conventional individuals elevate
their own moral evaluation of a situation over social conventions, their behavior, especially at
stage six, can be confused with that of those at the pre-conventional level.
Some theorists have speculated that many people may never reach this level of abstract moral
reasoning.[7][8][9]
In Stage five (social contract driven), the world is viewed as holding different opinions, rights,
and values. Such perspectives should be mutually respected as unique to each person or
community. Laws are regarded as social contractsrather than rigid edicts. Those that do not
promote the general welfare should be changed when necessary to meet “the greatest good for the
greatest number of people".[8] This is achieved through majority decision and
inevitable compromise.Democratic government is ostensibly based on stage five reasoning.
In Stage six (universal ethical principles driven), moral reasoning is based on abstract
reasoning using universal ethical principles. Laws are valid only insofar as they are grounded in
justice, and a commitment to justice carries with it an obligation to disobey unjust laws. Legal
rights are unnecessary, as social contracts are not essential for deontic moral action. Decisions are
not reached hypothetically in a conditional way but rather categorically in an absolute way, as in
thephilosophy of Immanuel Kant.[18] This involves an individual imagining what they would do in
another’s shoes, if they believed what that other person imagines to be true.[19] The resulting
consensus is the action taken. In this way action is never a means but always an end in itself; the
individual acts because it is right, and not because it avoids punishment, is in their best interest,
expected, legal, or previously agreed upon. Although Kohlberg insisted that stage six exists, he
found it difficult to identify individuals who consistently operated at that level. [15]
Page 38 of 64
Whistle blowing
The disclosure by a person, usually an employee in a government agency or private enterprise, tot
he public or to those in authority, of mismanagement, corruption, illegality, or some otherwrongd
oing.
Persons who act as whistleblowers are often the subject of retaliation by their employers. Typicall
ythe employer will discharge the whistleblower, who is often an at-will employee. An at-
will employeeis a person without a specific term of employment. The employee may quit at any ti
me and theemployer has the right to fire the employee without having to cite a reason. However, c
ourts andlegislatures have created exceptions for whistleblowers who are at-will employees.
Whistleblowing statutes protect from discharge or discrimination an employee who has initiated a
ninvestigation of an employer's activities or who has otherwise cooperated with a regulatory agen
cyin carrying out an inquiry or the enforcement of regulations. Federal whistle-
blower legislationincludes a statute protecting all government employees, 5 U.S.C.A. §§ 2302(b)(
8), 2302(b)(9). Inthe federal civil service, the government is prohibited from taking, or threatenin
g to take, anypersonnel action against an employee because the employee disclosed information t
hat he or shereasonably believed showed a violation of law, gross mismanagement, gross waste of
funds, abuseof authority, or a substantial and specific danger to public safety or health. In order t
o prevail on aclaim, a federal employee must show that a protected disclosure was made, that the
accusedofficial knew of the disclosure, that retaliation resulted, and that there was a genuine conn
ectionbetween the retaliation and the employee's action.
Page 39 of 64
LAW vs ETHICS
1. Ethics are rules of conduct. Â Laws are rules developed by governments in order to provide
balance in society and protection to its citizens.
2. Ethics comes from people’s awareness of what is right and wrong. Â Laws are enforced by
governments to its people.
3. Ethics are moral codes which every person must conform to. Â Laws are codifications of ethics
meant to regulate society.
4. Ethics does not carry any punishment to anyone who violates it. Â The law will punish anyone
who happens to violate it.
5. Ethics comes from within a person’s moral values. Â Laws are made with ethics as a guiding
principle.
Ethics is the branch of philosophy that examines questions of morality, or right and wrong. While
applied ethics addresses questions such as �If X happens, what is the ethical thing to do?� meta-
ethics takes a step back and looks at even more fundamental questions like �Do moral terms
such as 'good' and 'evil' have meaning?� and �What are the basic factors we should use to make
moral judgments?�
Page 40 of 64
Philosophers attempting to answer the second question are divided into two basic camps: moral
universalism and moral relativism. Moral universalists believe that certain actions are �good�
or �evil� regardless of an individual's beliefs. Moral relativists, on the other hand, believe that
morality can only be decided by one's cultural or personal beliefs.
Moral Universalism
Also called moral objectivism, this philosophy argues for the existence of a universal ethic.
Certain behaviors are simply wrong regardless of the circumstances. In a 2007 interview Noam
Chomsky defined universalism as �If something's right for me, it's right for you; if it's wrong for
you, it's wrong for me.�
Universalism is based on the idea of a �rational test� that can be applied to any ethical
dilemma. The exact nature of this test varies widely among different factions of universalists. For
example, utilitarianism states that the correct rational test is �Does my action create the
maximum good for the maximum number of people?� If the answer is yes, then a utilitarianist
would say that the action is morally correct.
Moral universalism in the form of human rights has become widely accepted in the past several
decades. The Universal Declaration of Human Rights, issued by the United Nations in 1948, and
the Geneva Conventions (which define fair treatment of prisoners of war) are based on the theory
of moral universalism. In other words, human beings all have certain rights and to deny those
rights is always immoral.
Moral Relativism
Different cultures and individuals have different standards of right and wrong. Moral standards
also change over time in the same culture. For example, slavery was considered moral in the
United States at one time &ndash but not anymore.
Moral relativists argue that there is no known universal rule that defines right and wrong. Instead,
morality is determined by the standards of a person's own authorities. These authorities might be a
government, a religion or even a family member.
To carry the argument further, if one society believes that slavery is wrong and another believes
that slavery is right, a moral relativist would say that either side may be correct. We have no way
Page 41 of 64
of knowing for sure whether slavery is ethically right or wrong, since human beings have not yet
found an absolute moral yardstick with which we can judge.
Perfectly free markets insure maximum social benefits better than anything else
o Pro
leads most efficiently to the production of goods & services that the buying
public needs and wants.
attempts by managers to impose their moral convictions only gets in the
way of the workings of the marketplace
so managers should single-mindedly pursue profit to the exclusion of all
else (including what they take to be morality)
o Con
Questionable assumptions:
in fact industrial markets are not perfectly free
not all profit increasing practices are socially beneficial
unconstrained pollution
deceptive advertising
price fixing
the buying public <> the public: distribution of goods & services
also an essential purpose of economic institutions
Inconsistency: the conclusion that managers should single-mindedly pursue
profit to the exclusion of all else (morality included) is itself a normative
ethical judgment
Loyal Agent's Argument
o The Argument
1. A loyal agent's duty is to serve his/her employer as the employer wants to
be served.
2. An employer wants to be served in whatever ways will advance his/her
self-interest.
Page 42 of 64
UNIT-IV
Page 45 of 64
Page 46 of 64
Page 47 of 64
( OR)
A sound ethics management programme in an organization include: (i) formal code of conduct;
(ii) ethics committee; (iii) ethical communication; (iv) an ethic office with Ethical officers; (v)
Ethics Training Programme; (vi) a disciplinary system; (vii) establishing an ombudsperson; and
(viii) monitoring,
Code of conduct and Ethics
Several organizations have started the process with developing and implementing codes of
conduct for their employees. Codes of conduct are statements of organizational values. It
comprises of three elements such as a code of ethics, a code of conduct and statement of values. a
code of conduct is a written document, inspirational in contents and specifies clearly what is
acceptable or unacceptable behavior at workplace and beyond ,when the employees represent
their organizations outside. In general the code should reflect the managements desire to
incorporate the values and policies of the organization. The statement of values envisages by the
management to serve the public and normally addresses the stakeholders groups.
A code of ethics is a buzzword to employees to observe ethical norms and forms the basis for
rules of conduct. It is comprehensive enough to cover the entire scheme of organizational ethics
expected to be followed by everyone in the company. It usually specifies methods for reporting
violations, disciplinary action for violations and a structure of the due process to be followed.
A code of ethics must summarize the beliefs and values of the organization. Those beliefs and
values should become internalized by all employees and used regularly in all business practices,
no matter the type of business. Owners of businesses that routinely engage in unethical practices
cannot help but pass those values and principles along to the other people working in the business.
Small businesses suffer even more, because unethical behavior and actions are easier for
Page 48 of 64
customers to take notice of. Once customers become aware that a business does not have high
ethical ideals, they will take their business elsewhere.
Codes of ethics vary among businesses, and also from one country to another,. When business
grows large enough to expand its operations into other countries, It is critical to hire talent to
assist in training existing personnel with regard to the integrity, understanding, responsibility, and
cultural norms of the country where the new operation is located. All employees must be treated
equally, and any issues of inequality must be dealt with quickly, fairly, and in a manner that is
satisfactory to all.
Today, more than ever before, consumers pay a great deal of attention to corporate governance
and proper behavior of businesses and their owners. Because the marketplace is flooded with
numerous variations of the same businesses, promises must be fulfilled and the price and quality
of products must be equal to what is advertised, or another business will step into deliver.
Therefore a code of ethics where unarticulated or formally documented – is vital to ensuring that a
business will succeed.
A code of ethics that is both defines and acted upon is part of the business culture of every
successful business, and must become the mantra of every business owner. Growing a flourishing
business through the use of sound ethical principles will reap not only the benefits of grown and
prosperity, but also the satisfaction of being able to sleep soundly at night.
Ethics Committee
Ethics committee is formed in many organizations. They are wholly devoted at work places.
These committees can rise concerns of ethical nature; prepare or update code of conduct, and
resolve ethical dilemma in organizations. they formulate ethical policies and develop ethical
standards. The committee evaluates the compliance of the organization with these ethical norms.
The members of the ethical committee should be selected from those persons who have
knowledge in their industry, their code of ethics and community standards. The committee
members are also conscious about the corporate culture and ethical concise of the organization.
The following committees are to be formed :-
(i) Establishing an ethics committee at the board level -
The committee would be charged to oversee development and operation of the ethics management
programme.
(ii) Establishing an Ethics Management committee -
Ethics Management committee would be charged with implementing and administrating an ethics
management programme, including administrating and training about policies and procedures,
Page 49 of 64
and resolving ethical dilemmas. The committee should be comprised of senior officers.
Ethical Communication System
The next step is the establishment of an effective ethical communication system. Ethical
communication system place an important role in making an ethics programme successful. It
should allow employees to make enquiries , get advice if needed or report wrong doing. Ethical
communication system is a necessity to educate employees about the organizations ethical
standard and policies. It has the following objectives -
(i) to communicate the organizations‘ values and standards of ethical conduct or business to
employees.
(ii) to provide information to the employees on the company‘s policies and procedure regarding
ethical conduct of business.
(iii) to help employees to get guidance and resolve questions regarding compliance with the firms
standards of conducts and values.
(iv) to set up the means of enquiry such as telephone hotlines, suggestion boxes and email
facilities for employees to contact with and get advice from competent authorities.
Along with these means of communication there are other ways , that can be used to communicate
an organization‘s moral standards to its employees. Top management can communicate the
ethical standards to lower level managers and they can communicate it to operational levels.
Sometimes the organization publishes newsletters. It can be used to expose company‘s code or
ethics. If an organization has briefing and management meeting, these can be used as a means of
communicating values. Certain companies use attractive multi colored posters to publicize their
codes and ethics, these posters are placed in most visible places of the organization premises.
Ethics Office and Officers
Ethics offices are to be established to communicate and implement ethics policies among
employees of the organization. For this purpose an ethics officer is to be appointed. The ethics
officer should develop a reputation for credibility, integrity, honesty and responsibility through
establishment of such ethics monitoring bodies.
Functions of the Ethics Officers
1. Ethics officers are responsible for assessing the needs and risks that an organization-wide ethics
programme must address.
2. To develop and distribute a code of conduct or ethics
3. To conduct ethical training programme for employees
4. To establish and maintain a confidential service to answer employees questions about ethical
Page 50 of 64
issues.
5. To ensure that the organization is in compliance with governmental regulations
6. To monitor and audit ethical conduct
7. To take action on possible violations of the company‘s code
8. To review and update code in time
Ethics Training Programme
To ensure a good ethical behavior in the organization the employees are to be given training. For
this purpose a corporate ethical training programme is to be devised. The main objective of an
ethical training program is to offer assistance to employees to understand the ethical issues that
are likely to arise in their work place. When new employees are to be recruited, the induction
training should be arranged for them.
This training will help to familiarize with the company‘s ethical code of behavior. Importance of
abiding code should be dealt with at the induction meeting. A well developed and proper training
programme will help the employees to understand the organizations policies and expectations,
important and relevant rules, bye laws and regulations which are to be complied in the
organization by the employees. For the success of the training programmes , the senior executive
from every department must involve fully in the training programme.
Disciplinary System
Code of conduct or ethical behavior codes should be properly enforced in the organization to
achieve the organization‘s objectives. A disciplinary system should be established to deal with
ethical violations promptly and severely. If unethical behavior is not properly dealt with, it will
threaten the entire social system that supports the ethical behavior of the organization. While
enforcing disciplines to ensure ethical conduct, companies should be consistent. ,i.e., the company
should adopt a fair attitude towards every one without any discrimination or bias.
Establishing an Ombudsperson
The ombudsperson is responsible to help coordinate development of the policies and procedures
to institutionalize moral values in the workplace. This position usually is directly responsible for
resolving ethical dilemmas by interpreting policies and procedures.
Monitoring
To become an ethical programme fruitful and successful, an effective monitoring committee is to
be formed. It can be monitored through keen observation by ethics officers, internal audits,
surveys, investigations and supporting systems.
Page 51 of 64
Ethical Audit
Audits are designed to dig deep into company records to ensure reliability and accuracy in areas
like accounting systems, financial reporting and legal compliance. Audits generally deal with
quantitative, easily measurable data. Ethical issues, on the other hand, are more often qualitative
or subjective in nature. A number of qualitative research techniques make an ethical audit
possible, but an ethical audit still necessarily functions differently from any kind of financial
audit. Considering multiple perspectives to gain a big-picture understanding of a company's
commitment to ethics is the key to an ethical audit.
Page 52 of 64
Step 1
Review the company's formal codes of ethics, ethics training programs and compliance policies
for legal and industry guidelines regarding ethics. A commitment to ethics begins with formal
policies in the employee handbook. Although having such policies in place does not guarantee
real-world compliance, it is a vital first step in building a culture of strong ethics, and it can show
how serious management is about ethical issues. Make sure ethics policies cover the full range of
common issues in business, including discrimination, equal employment opportunity, financial
management, sourcing, customer relations and the impact of company operations on the
environment, the community and the world.
Step 2
Look into past breaches of ethics through company records and archived online news sources.
Begin by asking the business owner or an executive to discuss any legal issues the company has
experienced, but do not let on that you intend to investigate on your own. If you find something
the company representative tried to hide, it can be a large red flag pointing to a culture of
dishonesty. When searching past news releases, look for any negative press about the company,
and scrutinize the story for breaches of ethics. If any previous ethical lapses have occurred, speak
with the company owner or an executive about what the company has done to prevent similar
incidents from occurring since then and in the future.
To make this information more measurable, create a timeline listing each past incident of a public
breach of ethics, and analyze the frequency, rate and momentum of the occurrences.
Step 3
Speak with employees regarding their impressions of the company's commitment to ethics. Take
this opportunity to ask them to share their experiences about co-workers, managers and
executives. Make sure all employees know their interviews are confidential and that honest
answers will help to improve their organizations. Insiders know a large amount of information
that the public, the press and government regulators are not aware of. Not every breach of ethics
is illegal, either, and employees can be an insightful source of information on legal breaches of
ethics occurring on a regular basis.
Page 53 of 64
To make this information more quantitative, look for patterns in the responses you receive and
record the number of times specific issues come up. If you find employees frequently speaking
about management's rude treatment of females, for example, note the number of times the issue
came up and calculate the percentage of interviewees who mentioned it.
The organization defines corruption as the abuse of entrusted power for private gain which
eventually hurts everyone who depends on the integrity of people in a position of authority. [3]
UNIT – V
Marketing ethics is an area of applied ethics which deals with the moral principles behind the
operation and regulation of marketing. Some areas of marketing ethics (ethics
of advertising and promotion) overlap with media ethics.
HRM ETHICS
Human resource management deals with manpower planning and development related activities
in an organization. Arguably it is that branch of management where ethics really matter, since it
concerns human issues specially those of compensation, development, industrial relations and
health and safety issues. There is however sufficient disagreement from various quarters.
There are different schools of thought that differ in their viewpoint on role of ethics or ethics in
human resource development. One group of thought leaders believes that since in business,
markets govern the organizational interests and these interests are met through people, the latter
are therefore at the highest risk. They believe that markets claim profits in the name of
stakeholders and unless we have protocols, standards and procedures the same will develop into a
demon monopolizing markets and crushing human capital; HR ethics are become mandatory.
Page 57 of 64
ETHICS IN IT
Ethics in IT aims at the construction of tools that can be applied in systems development and use
for the consideration of significant ethical aspects. The application of suitable ethical tools is a
prerequisite to consider significant aspects in all phases of computer systems development,
implementation and use. Ethical tools are necessary not only to construct a system that avoids
conflicts with significant moral principles but mainly to build a successful system that will play a
significant role in satisfying the most important values of users and stakeholders.
ONGOING ACTIVITIES
The aim of this project is to develop and implement a questionnaire for the identification of
significant ethical issues in system construction and use.
The computer ethics test focuses on the skills of system developers and users to handle ethical
problems. The structure of the computers ethics test is based on psychological theory and research
on people's ability to cope with moral problems.
Page 58 of 64
Educational methods for the development of higher competence in computer ethics problem
solvning and decision making are constructed and tested.
The main issue of this project is to investigate the possibility to create a system that can handle
moral problems. The hypothesis is that such a system has to focus on the way people handle
moral problems and stimulate ethical their competence.
The ethics of a finance manager should be above approach. This includes more than just acting in
an honest, above-board manner. It means establishing boundaries that prevent professional and
personal interests from appearing to conflict with the interest of the employer. A finance manager
must provide competent, accurate and timely information that fairly presents any potential
disclosure issues, such as legal ramifications. The manager is also ethically responsible for
protecting the confidentiality of the employer and staying within the boundaries of law.
Legal Issues
Some laws are specifically designed to address unethical actions of finance managers. For
example, if a finance manager is aware of business activity that will affect a stock price and uses
that information to buy or sell stocks for financial again, he has has broken a trust with his
employer and broken laws established by the Securities and Exchange Commission (SEC). A
finance manager who is aware that his company may be breaking the law may be held legally
responsible for a crime.
Balancing Act
The dilemma faced by many finance managers comes in balancing the need to act ethically while
fulfilling the needs of the employer. The employer's ultimate goal is to maximize earnings, and
the drive to make money may cause an employee to act unethically. If a manager believes his
Page 59 of 64
company may have crossed an ethical line, his first step should be to take it up with his employer.
If he feels the actions warrant legal intervention, he should do so without fear of repercussion.
Whistleblowers
If a discussion with an employer does not resolve the ethical issues facing a finance manager, he
can report the activity to the appropriate government agency for investigation. This is known as
whistle blowing. Under current laws, an employee has the right to report suspicious activity
without fearing for his job. While the activity may put a strain on his working relationship, he is
protected by law.
COMPETENCE
CONFIDENTIALITY
Refrain from disclosing confidential information acquired in the course of their work
except when authorized, unless legally obligated to do so.
Inform subordinates as appropriate regarding the confidentiality of information acquired
in the course of their work and monitor their activities to assure the maintenance of that
confidentiality.
Refrain from using or appearing to use confidential information acquired in the course of
their work for unethical or illegal advantage either personally or through third parties.
INTEGRITY
Avoid actual or apparent conflicts of interest and advise all appropriate parties of any
potential conflict.
Refrain from engaging in any activity that would prejudice their ability to carry out their
duties ethically.
Refuse any gift, favor, or hospitality that would influence or would appear to influence
their actions.
Refrain from either actively or passively subverting the attainment of the organization's
legitimate and ethical objectives.
Recognize and communicate professional limitations or other constraints that would
preclude responsible judgement or successful performance of an activity.
Communicate unfavorable as well as favorable information and professional judgements
or opinions.
Refrain from engaging in or supporting any activity that would discredit the profession.
OBJECTIVITY
Disclose fully all relevant information that could reasonably be expected to influence an
intended user's understanding of the reports, comments, and recommendations presented.
Discuss such problems with the immediate superior except when it appears that the
superior is involved, in which case the problem should be presented initially to the next
higher managerial level. If a satisfactory resolution cannot be achieved when the problem
is initially presented, submit the issues to the next higher managerial level. If the
immediate superior is the chief executive officer, or equivalent, the acceptable reviewing
authority may be a group such as the audit committee, executive committee, board of
directors, board of trustees, or owners. Contact with levels above the immediate superior
should be initiated only with the superior's knowledge, assuming the superior is not
involved. Except where legally prescribed, communication of such problems to authorities
or individuals not employed or engaged by the organization is not considered appropriate.
Clarify relevant ethical issues by confidential discussion with an objective advisor (e.g.,
IMA Ethics Counseling service) to obtain a better understanding of possible courses of
action. - Consult your own attorney as to legal obligations and rights concerning the
ethical conflict.
If the ethical conflict still exits after exhausting all levels of internal review, there may be
no other recourse on significant matters than to resign from the organization and to submit
an informative memorandum to an appropriate representative of the organization. After
resignation, depending on the nature of the ethical conflict, it may also be appropriate to
notify other parties.
Ethics in production is a subset of business ethic that is meant to ensure that the production
function or activities are not damaging to the consumer or the society. Like other ethics there is a
certain code of conduct or standards to be followed, however ensuring that the ethics are complied
with is often difficult.
One of the most important characteristic of the business today is that there is a great degree of
interdependence between various business functions. Production cannot happen without
marketing and sales and vice versa. In order to survive in the competitive sphere organizations try
to reduce the costs involved in production processes. This cost efficiency is sometimes achieved
at the cost of quality. Poor processes and technology is used to keep the cost down, this is
especially true for small players who cannot afford economies of scale. Having said this there are
also examples of industry giants that compromised on certain production processes, cola
companies make up for a good example.
All the production functions are governed by production ethics but there are certain that are
severely harmful or deleterious which need to be monitored continuously. The following are
worth mentioning:
1. There are ethical problems arising out of use of new technologies that are deleterious to
health, safety and environment. Technological advancements like genetically modified
food, radiations from mobile phones, medical equipment etc are less problems are more of
dilemmas.
2. Defective services and products or products those are innately deleterious like alcohol,
tobacco, fast motor vehicles, warfare, chemical manufacturing etc.
3. Animal testing and their rights or use of economically or socially deprived people for
testing or experimentation is another area of production ethics.
4. Ethics of transactions between the organization and the environment that lead to pollution,
global warming, increase in water toxicity and diminishing natural resources.
There are certain processes involved in the production of goods and a slight error in the same can
degrade the quality severely. In certain products the danger is greater i.e. a slight error can reduce
the quality and increase the danger associated with consumption or usage of the same
exponentially. The dilemma therefore lies in defining the degree of permissibility, which in turn
Page 63 of 64
depends on a number of factors. Bhopal gas tragedy is one example where the poisonous gas got
leaked out due to negligence on the part of the management.
Usually many manufactures are involved in the production of same good. They may use similar
or dissimilar technologies for the same. Setting a standard in case of dissimilar technologies is
often very difficult. There are many other factors that contribute to the dilemma, for example, the
involvement of the manpower, the working conditions, the raw material used etc.
Social perceptions also create an impasse sometimes. For example the use of some fertilizer by
cola companies in India recently created a national debate. The same cold drinks which were
consumed till yesterday became noxious today because of a change in the social perception that
the drinks are not fit for consumption.
ENVIRONMENTAL ETHICS
Environmental ethics is the part of environmental philosophy which considers extending the
traditional boundaries of ethics from solely including humans to including the non-human world.
It exerts influence on a large range of disciplines including environmental law, environmental
sociology, ecotheology, ecological economics, ecology and environmental geography.
There are many ethical decisions that human beings make with respect to the environment. For
example:
Should we continue to clear cut forests for the sake of human consumption?
Why should we continue to propagate our species, and life itself? [1]
Should we continue to make gasoline powered vehicles?
What environmental obligations do we need to keep for future generations?[2][3]
Is it right for humans to knowingly cause the extinction of a species for the convenience of
humanity?
How should we best use and conserve the space environment to secure and expand life? [4]
The academic field of environmental ethics grew up in response to the work of scientists such
as Rachel Carson and events such as the first Earth Day in 1970, when environmentalists started
urging philosophers to consider the philosophical aspects of environmental problems. Two papers
published in Science had a crucial impact: Lynn White's "The Historical Roots of our Ecologic
Crisis" (March 1967)[5] and Garrett Hardin's "The Tragedy of the Commons" (December
Page 64 of 64
1968).[6] Also influential was Garett Hardin's later essay called "Exploring New Ethics for
Survival", as well as an essay by Aldo Leopold in his A Sand County Almanac, called "The Land
Ethic," in which Leopold explicitly claimed that the roots of the ecological crisis were
philosophical
GENDER ETHICS
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx