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Business ethics

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					By : Anurag Pandey, Akansh Garg, Prabhat Kumar, Rajni Bagra,
Prateek Agarwal, Alok Tiwari, Prashant Gupta, Anirban Moitra
                          ETHICS
 • Ethical behaviours are outcome of objective necessity
   because of growth of capitalism (free market economy)
      to further sustain & grow in a collective manner.

• The above definition has following implication:
   – Profit maximisation is an organic activity linked to be understood
     from multidimensional prospective.
   – There cannot be any more maximisation of profit by 1 single
     individual (monopoly)rather people have realise that every stake
     holders need to be part of this profit(distributed capitalism)
            Genesis of Ethics

• Ethics is a Greek word, it means
  Character or manners.

• Ethics is subjective while morality is objective.

• Ethics is about sense of belongingness to
  society of business. Formed with a limited vision
  for economic generation but should resolve
  conflict with society by servicing the community.
                  3D of Ethics.
• UNITARIAN VIEW OF ETHICS
  Business is a part of moral structure
  and moral ethics.

• SEPARATISTS VIEWS OF ETHICS
  Morality and ethics has no role in
  business. Society and law deals with
  ethics and morality.

• INTEGRATED VIEW OF ETHICS
  Ethical behavior and business should
  be integrated in a new era called Business Ethics.
             Integration
           View of Ethics.
GOVERNMENT
                                         LAW




           Business.       Morality
                           & ethics




  Market
  system               BUSINESS ETHICS   SOCIETY
            Ethical Relativism
• Relativism is the position that all points of view are
  equally valid and the individual determines what is true
  and relative for them. Relativism theorizes that truth is
  different for different people, not simply that different
  people believe different things to be true. While there are
  relativists in science and mathematics, ethical relativism
  is the most common variety of relativism.
                         Contd….
• Almost everyone has heard a relativist slogan:
  – What’s right for you may not be what’s right for me.
  – What’s right for my culture won’t necessarily be what’s right for
    your culture.
  – No moral principles are true for all people at all times and in all
    places.
 Subjective Ethical Relativism
• Subjective ethical relativism supports
  the view that the truth of moral
  principles is relative to individuals.
• Whatever you believe is right for you
   personally is completely up to you to
   determine.
• Subjective relativism allows you to be sovereign over the
  principles that dictate how you live your life.
            Moral Universalism
• Moral universalism (also called moral objectivism or
  universal morality) is the meta-ethical position that
  some system of ethics, or a universal ethic, applies
  universally, that is, for "all similarly situated individuals",
  regardless of culture, race, sex, religion, nationality,
  sexuality, or other distinguishing feature.
• Moral universalism is opposed to moral nihilism and
  moral relativism.
               Utilitarianism
• Moral worth of an action is determined
  solely by its consequences

•    What makes an action right or wrong is the good or evil that is
    produced by the act

•    Action is right if it produces the best possible balance of good
    consequences over bad consequences for all parties affected

•    It involves the consideration of alternatives and how they
    affect all parties concerned
               Essential Features
• Utilitarianism is committed to the maximization of the good
  and minimization of harm and evil

•    Society ought to produce the greatest balance of positive
    value or minimum balance of negative value for all affected
          – Ex: Cost and benefit analysis
          – Risk assessment
          – Management by objectives

•   Efficiency is key
                  Utilitarianism
• Involves the following steps
   – 1. Determining the alternative actions that are available in
  any specific decision situation

   – 2. Estimating the costs and benefits that a given action
  would produce for parties affected by the action

  – 3. Choosing the alternative that produces the greatest sum of
  utility or least amount of disutility
     Problems with Utilitarianism
• Not always possible to calculate utility or to analyze massive
  amounts of information – consider the case of oil rigs in
  Alaska

•    Ignores distribution of good – is it uniformly distributed or
    favors specific groups?

•   No common definition of what is ‘good’?

•    Assumes that all can be measured in a common numerical
    scale
 Major issues with utilitarianism
• Action that produces the greatest balance of value for the
  greatest number of people
     – What about the minority?

      – Ex: What if society decides that it is in the best interest of
  the public to deny health insurance to those testing positive for
  AIDS?
     Approaches to ETHICS
                       Ethical System




Teleological Ethical                    Deontological Ethical
      System                                  System

( …..looking to the                     ( …..looking to    the
consequences of the                     process     of     the
decision)                               decision)
         Teleological Approach
Teleological Ethical system deal with

              Utilitarianism
              Consequentialism
              Egoism
Teleological theories hold that rightness or wrongness of
action is always determined by its tendency to produce
certain consequences which are intrinsically good or bad”.

“Utilitarianism is the creed which accepts as the foundation
of moral “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.”
 Conted…………

Consequentialism focuses on best consequences of our
actions for all concerned. It holds that makes an action right
or wrong is its consequences only.

 For example-: A friend visit to friend's apartment and finds
 him struggling to breathe, and was grasping at his chest.
 He dials 911 and then having remembered a commercial
 for Bayer aspirin that mentioned taking an aspirin during a
 heart attack can help, he goes into her purse and gets an
 aspirin to give to him friend while they are awaiting the
 arrival of rescue crews. After giving him the aspirin, his
 symptoms worsen and by the time paramedics arrive, the
 man was dead. After autopsy, information was revealed
 that the man died from an allergic reaction to
 acedimenaphin, not because of the heart attack.
     Deontological Approach
Deontological moral systems are characterized primarily by a
focus upon adherence to independent moral rules or duties.
Thus, in order to make the correct moral choices, we simply
have to understand what our moral duties are and what
correct rules exist which regulate those duties. When we
follow our duty, we are behaving morally. When we fail to
follow our duty, we are behaving immorally.

A deontological Ethical System is based on rules or
principles that govern decisions. It is Measured by the
rightness of rules ,rather than by consequences . In
formalistic views of ethics, the rightness of act depends
little on the result of the act.
                       Universalism

Universalism offers guidance with regard to the rules by
which someone should make decisions. It suggest that in
reaching the decision, we should consider whether it would
be Acceptable if every one in every situation made this same
decision.

There are three types of universal rights-:

1. Freedom of speech

2. Freedom of consent

3. Right to privacy
Universalism entails two queries

1. Would it be all right for every one to make the decision
   you are about to make?

2. Would this decision infringe on in any universal right?
                       Hybrid

Hybrid- Something of mixed origin or composition or
Something having two kinds of components that produced
the same or similar results.

Example-: Vehicle powered by both electric and internal
combustion as source of power
For the drive train.
                   Hybrid Theories
A king had some empty glasses. He said “ if I pour hot
water into them It will crack even with the cold water so
what king did he mixed the hot and cold water together and
pour it into the glass which didn’t break.
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posted:12/14/2010
language:English
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Description: Business ethics nd values