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Ethical Issues in Business

Business ethics are moral principles guiding business behavior, emphasizing fairness, honesty, and personal ethics as foundational elements. Ethical behavior can lead to significant benefits such as attracting customers, retaining employees, and enhancing company reputation, while also presenting challenges like compliance and governance issues. Practicing good ethical behavior is essential for effective leadership and decision-making in business.

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GIJENDRASHIVAN K
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14 views16 pages

Ethical Issues in Business

Business ethics are moral principles guiding business behavior, emphasizing fairness, honesty, and personal ethics as foundational elements. Ethical behavior can lead to significant benefits such as attracting customers, retaining employees, and enhancing company reputation, while also presenting challenges like compliance and governance issues. Practicing good ethical behavior is essential for effective leadership and decision-making in business.

Uploaded by

GIJENDRASHIVAN K
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ETHICAL ISSUES IN

BUSINESS
INTRODUCTION

 WHAT ARE BUSINESS ETHICS


Business ethics are moral principles that guide the
way a business behaves
Acting in an ethical way involves distinguishing between “right”
and “wrong” and then making the “right” choice..
Ethics is a branch of philosophy which seeks to find answers about
the moral concepts like bad, good, evil, right, wrong, etc
Business ethics is the study of business situations, activities, and
decisions
Where The Issues Are Right Or Worng
Fairness in business dealings means being objective and an
interest in creating a win-win situation for both parties whether
that is employer-employee or company-client.
Honesty applies to every part of running a business while making
a profit
Personal ethics are usually considered as the foundation for
running ethical businesses
 Ethical behaviour and corporate social responsibility can significant
benefits to a business
 For example:• Attract customers to the firm’s products, thereby
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.
ETHICAL ISSUES IN BUSINESS

 Due to increased emphasis on the business ethics over last


three accoues, this field is suffering and is troubled by the lack
of proper directions and is struck in the issues like logic,
reasons etc.
 Today, people from the top management level and the business
owners have understood that this concept of ethical issues in
business is far superior than handling the rules and regulations
and their effective implementation

 Ethical issues can be varying in nature
 Professional ethics
 Employee right issues which can be further divided into
different categories
Functional areas of business
If they choose to use legality and profitability as their
measurement in determining what is right from wrong then
business ethics will surely become irrelevant
BUSINESS FUNCTION ETHICS

 MARKETING FUNCTION

The function of this business unit is to provide understanding


about the four basic aspects of a business- Product, Price, Place
and Promotion.

It provides interface to the management related not only to the


customers but the other related parties like media, investors,
distribution system, supply chain partners, partners, legal
framework, as well as others
ACCOUNTING ETHICS

 Accounting ethics articles help in understanding the


importance of business code of ethics, besides the profit/loss,
balance sheets and financial statements

 Enhancing the financial figures and statements which is


manipulated for the purpose of achieving something which is
unethical
FUNDAMENTAL ISSUES

 The most fundamental or essential ethical issues that


businesses must face are integrity and trust

 When customers perceive that a company is exhibiting an


unwavering commitment to ethical business practices, a high
level of trust can develop between the business and the people
it seeks to serve
Diversity Issues

 An ethical response to diversity begir recruiting a diverse


workforce, enforces equal opportunity mail training programs
and is fulfilled when every employee is able to enjoy a
respectful workplace environment that values their
contributions. Maximizing the value of each employee’s
contribution is a key element in your business’s success
 Decision-Making Issues
Ethical decision-making processes should centre on protecting
employee and customer rights, making sure all business
operations are fair and just, protecting the common good and
making sure individual values and beliefs of workers are
protected
OTHER TYPES ISSUES

 Social Networking Ethics


 Compliance And Governance Issues
 Haraasment In work Place
ADVANTAGES OF BUSINESS
ETHICS

Business ethics offer companies a competitive advantage..


Good will of the firm hikes depending on its responds towards it
ethical issues
• Productivity through rigid, firm and sincere workers as well as
other business chain members.
 • Through increasing morale and trust business can increase
their market share
DISADVANTAGES OF BUSINESS
ETHICS

Business ethics reduce a company’s freedom to maximize its


pro……
Diversity in achievements.
For example. A company may diverse from its achievements and
turn towards any other directions.
Extra expenditure in some cases.
 For example, in some cases company may incur extra cost for
solving certain ethical issues like accident compensation,
solution for pollutions etc.
CONCLUSION

Now that we understand the idea of business ethics, it is


important to practice good ethical behaviour. Leading by example;
teaching by example; being a role model; these are all things that
will come if you practice ethical behaviour and chose to make the
right decisions.
 One of the most formidable challenges is avoiding immoral
management, and transitioning from an amoral to a moral
management mode of leadership, behavior, decision making,
policies and practices. Moral management requires ethical
leadership. It entails more than just “not doing wrong
Thank You

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