Business Law and Ethics: Course & School: School of Management Studies References: N.D.Kapoor
Business Law and Ethics: Course & School: School of Management Studies References: N.D.Kapoor
Business Law and Ethics: Course & School: School of Management Studies References: N.D.Kapoor
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Ethics
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Business Ethics
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Importance of Ethics in
Business
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Ethical Values
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Ethical corporate Behavior
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Ethical Dilemmas in Organization
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Functional Areas of Ethics in
Business
1.Production Ethic
• Adulteration
• Production of harmful products
• Inferior components and raw materials
• Lack of information to customers on side effects
• Unsafe and unhealthy packaging
• Ignoring environmental standards
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2. Marketing and Sales Ethics
• Unfair pricing strategy
• Creation of monopoly
•Dumping
•Non-disclosure of substantial risk
•Deceptive communication
•Poor after sales service
•Substantial advertisement
•Obscene advertisement
• Unhealthy competition
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3.Human Resource Management Ethics
• Low salary and wages
•Unsafe working condition
•Discrimination
•Child labour
•Employee raiding
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4. financial and Accounting Ethics
•Embezzlement of cash
•Window dressing
•Creation of secret reserves
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Changing Environment
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Business Ethics-why does it
matter
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Ethical behaviour and corporate social responsibility can bring
significant benefits to a business. For example, they may:
•Attract customers to the firm’s products, which means boosting
sales and profits
•Make employees want to stay with the business, reduce labour
turnover and therefore increase productivity
•Attract more employees wanting to work for the business,
reduce recruitment costs and enable the company to get the
most talented employees
•Attract investors and keep the company’s share price high,
thereby protecting the business from takeover.
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Environmental Forces and
Stakeholders
Local, national, and international environments are
increasingly moving toward and into a global
system of dynamically interrelated interactions
among local, national, and regional politics,
economies, regulations, technologies,
demographics, and international law.
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Levels of Business Ethics
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Five Myths About Business
Ethics
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Can Business Ethics Be
Taught And Trained
•Ethic courses and training can do the following:
•Provide people with rationales, ideas, and vocabulary
•Help people make sense of their environments
• Provide intellectual weapons
• Enable employees to act as alarm systems for company
•practices
• Enhance conscientiousness and sensitivity
•Enhance moral reflectiveness and strengthen moral courage
•Increase people's ability to become morally autonomous
•ethical dissenters
• Improve the firm’s moral climate
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Lawrence Kohlberg's stages of
moral development
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Kohlberg's six stages can be more generally grouped into three levels of two
stages each: pre-conventional, conventional and post-conventional.
Level 1 (Pre-Conventional)
1. Obedience and punishment orientation(How can I avoid punishment?)
2. Self-interest orientation(What's in it for me?)(Paying for a benefit)
Level 2 (Conventional)
3. Interpersonal accord and conformity(Social norms)(The good boy/girl
attitude)
4. Authority and social-order maintaining orientation(Law and order morality)
Level 3 (Post-Conventional)
5. Social contract orientation
6. Universal ethical principles(Principled conscience)
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Carol Gilligan Theory
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The feminine voice places more emphasis on protecting
interpersonal relationships and taking care of other people. This
voice focuses on the "care perspective,“ which means focusing on
the needs of the individual in order to make an ethical decision.
For Gilligan, Kohlberg's stages of moral development were
emphasizing the masculine voice, making it difficult to accurately
gauge a woman's moral development because of this incongruity
in voices. Gilligan argues that androgyny, or integrating the
masculine and the feminine, is the best way to realize one's
potential as a human. Gilligan's stages of female moral
development has been shown in business settings as an
explanation to the different ways men and women handle ethical
issues in the workplace as well.
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