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ACG Assignment Part 2

Assignment on ACG

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Bhuwan Gupta
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25 views

ACG Assignment Part 2

Assignment on ACG

Uploaded by

Bhuwan Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ASSIGNMENT-2

BUSINESS ETHICS
ETHICS:

 Ethics is considered with what is right and what is wrong in human behavior.
 Judged on the basis of a standard form of conduct/ individual behavior.
 Ethics word origin from Greek word ‘ETHOS’
 Ethos means norms, ideals, morals prevailing in a group or society.
 Set of principle may be written or unwritten codes or governing professional or human activity.

BUSINESS ETHICS:

 Business Ethics refer to socially determined moral principles which should govern business activity.
Example: Charging fair prices from customer, using fair weight for measurement of commodities,
earning reasonable profit.
 Business Ethics refer to the standards for morally right or wrong conduct in business.
 Ethical business behavior improves public image, earns people’s confidence and trust, and leads to
greater success.

ELEMENTS OF BUSINESS ETHICS:

1. Top Management Commitment:


 The CEO & other higher level manager need to be openly and strongly committed to ethical conduct.
 They give continuous leadership for developing and upholding the values of the organization.
2. Publication of a ‘CODE’:
 Define the principles of conduct for the whole organization in the form of written documents which
is referred to “code”.
 It generally covers areas such as fundamental honesty and adherence to law, product safety and
quality, health and safety of workplace and employee, fairness.
3. Establishment of compliance mechanisms:
 Pay attention to values and ethics
 Underline corporate ethic in training.
 Communication system helps employees report incidents of unethical behavior.
4. Involving employees at all levels:
 Employee at different level who implement ethics policies.
 Involvement of employee in ethics programs becomes must.
5. Measuring Results:
 It is difficult to accurately measure the end results of ethics program
 Firm can certainly audit to monitor compliance with ethical standards.
NATURE/ CHARACTERISTICS:

1) Business Ethics is a code of conduct:


 It tells what to do and what not to do for society welfare.
 All business must follow code of conduct.
2) Business ethic is based on moral and social values:
 It contains social and moral principles for doing business like consumer protection and welfare,
service to society.
3) Gives protection to social group:
 Such as consumer, employee, small businessmen.
4) Provides basic framework:
 Business Ethics provides basic framework for doing business. It gives social cultural, economic, legal
and other limits of business.
 Business must be within these limits.
5) Business ethics is voluntary:
 Businessmen must accept business ethics on their own.
6) Requires education and guidance:
 Businessmen must be motivated to use business ethics.
 They must be informed about advantages of the using business ethics.

PRINCIPLES OF BUSINESS ETHICS:

1. Honesty:
 Honest and truthful in all their dealing.
 Do not deliberately mislead or deceive other by misrepresentations.
2. Integrity:
 Doing what is right even when there is great pressure to do otherwise.
 Should be respectful, honest, honorable and upright.
 Fight for their beliefs.
3. Loyalty:
 Do not use or disclose any information for personal advantages.
4. Promise keeping and trust worthiness:
 Make every reasonable effort to fulfill the letter and spirit of their promises and commitment.
5. Fairness:
 Commitment for justice, equity.
6. Respect for other:
 Respect for human dignity, privacy, rights and interest of all stakeholder.
 Treat all people with equal respect and dignity, regardless of gender, race.
7. Leadership:
 Seek to be positive ethical role models by own conduct.
 Helping to create proper environment.
 Ethical decision making are highly prized.

ETHICAL APPROACHES AND THEORIES:

1. Consequentialism Approach:
 Example: A person used fake degree to get a job as a sales manager (but he has experience)
Sales increase (right behavior) Sales decrease (wrong behavior)
 Consequentialism approach also known as Teleological Approach.
 The word teleology comes from the Greek word ‘telos’ which means ‘ultimate aim’, ‘goal’,
‘outcome’.
 Teleology Approach is referred to as result-oriented ethics.
 This approach based on the end or consequences of an act determine whether it is good or evil.
 It deals with the consequences of action (consequentialism)
2. Deontological Approach:
 Example: A person used fake degree to get a job as a sales manager (but he has experience)
Sale increase (wrong behavior) Sales decrease (wrong behavior)
 The word deontology is derived from Greek word ‘deon’ which means ‘obligation’ and ‘duty’.
 It is duty-based ethics.
 It is deals with the action are right or wrong instead of end result of action.
 It is more emphasis on the rightness or wrongness of action.
 Immanuel Kant, a philosopher who believed that moral behavior should adhere to universal moral
rule or law like not lying, not stealing or not cheating.
3. Virtues Approach:
 As an alternative to consequentialism and deontology both which consider “goodness” and
“rightness” as essential to morality.
 Virtues Approach proposes to understand morality.
 Assess ethical quality action in term of “kindness”, “honesty”, “sincerity” and “justice”.
 Judges a person by his/her character rather than action.
 It is not focus on what kind of things are good/bad or what makes an action right/wrong.
 It is focus on kindness; loyalty would be moral reason for helping friend in hardship.
4. The Right:
 Ethical theory based on rights, the right established by a society are protected and given the highest
priority.
 Person has a right when he entitles to act in a certain manner. This entitlement may come from legal
system or social norms.
 Person has moral right and social right.
 Moral rights have no jurisdiction.
 Those right have three characteristics:-
(1) Moral rights are correlated with duties.
(2) Moral rights provide individual the equality to pursue their interest.
(3) Moral rights and moral justification go hand in hand.

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