1. Introduction Ethics concern an individuals moral judgment about right andwrong.

Decisions taken
within an organization may be made byindividuals or groups, but whoever makes them will be
influenced bythe culture of the company. The decision to behave ethically is amoral one; employees
must decide what they think is the rightcourse of action. This may involve rejecting the route that
wouldlead to the biggest short-term profit.
2. IntroductionEthical behavior and corporate social responsibility can bringsignificant benefits to a
business. For example, they may: Attract customers to the firms products, thereby boosting sales
andprofitsmake employees want to stay with the business, reduce laborturnover and therefore
increase productivity Attract more employees wanting to work for the business, reducerecruitment
costs and enable the company to get the most talentedemployees Attract investors and keep the
companys share price high, therebyprotecting the business from takeover.Unethical behavior or a
lack of corporate social responsibility, bycomparison, may damage a firms reputation and make it
lessappealing to stakeholders. Profits could fall as a result.
3. Business Ethics Business Ethics means conducting all aspects of business anddealing with all
stakeholders in an ethical manner.
4. Foundations of Ethical BehaviorTreat others as you would betreated Respect Honesty Trust
5. Nature of business ethicsBusiness ethics has a five part structure:1. The specification of moral
judgment2. Moral judgment and the moral standard3. Justification of moral judgment4. Logical
reasoning and moral judgment5. Moral judgment and moral responsibility
6. Organizational/Business EthicsWhy is it important ? Ethics influence and contribute to: Employee
commitment. Investor and customer loyalty and confidence. Legal problems and penalties.
Customer satisfaction. The ability to build relationships with stakeholders. Cost control.
Performance, revenue, and profits. Reputation and image.
7. Ethical Issues Relating to Business Honestycommunication and behavior consistent with facts
Disclosure of information Promises/commitments Laws and professional standards
Representation of others like shareholders (applies to boardmembers) Unfair competition Refrain
from bribes and excessive gifts (that sway judgment) Avoid quid pro quo transaction Comply with
anti-trust laws (these relate to pricing, monopolisticpractices)
8. Ethical Issues Relating to Business Just compensation Respect intellectual property (product
piracy) Treat employees fairly Respecting rights of others Treat others with fairness and respect
regardless of age, religion,ethnic group, sex, economic status, etc., especially children, women,
andsubordinates Respect the community you operate in by paying fair share ofeconomic costs you
create Respect others and future generations by treating the environmentwell
9. A Crisis in Business Ethics Consumer trust of businesses is declining No sector is exempt from
ethical misconduct Stakeholders determine what is ethical/unethical Investors Employees
Customers Interest groups Legal system Community
10. Organizational and Global EthicalCultureEthical culture:Describes the component of corporate
culture that captures thevalues and norms that an organization defines as appropriateconduct
Creates shared valuesGoal is to: Minimize need for enforced compliance Maximize utilization of
principles/ ethical reasoning
11. Ethics Contributes to EmployeeCommitment Comes from employees who believe their future is tied
to theorganizations Are willing to make personal sacrifices for the organization The more
dedication on the part of the company, the greater theemployee dedication Concerns include a safe
work environment, competitive salariesand benefit packages, and fulfillment of contractual
obligations

12. Ethics Contributes to Investor Loyalty Companies perceived by their employees as having a high
level ofhonesty and integrity are more profitable than companies with a lowlevel of honesty and
integrity Ethical climates in organizations provide platform for: Efficiency Productivity Profitability
13. Ethics Contributes to CustomerSatisfaction Consumers respond positively to socially concerned
businesses Being good can be extremely profitable Customer satisfaction dictates business
success A strong organizational ethical climateplaces customers interests first Research shows a
strong relationship between ethical behavior andcustomer satisfaction
14. Concluding Remarks An integrity approach to business can yield strengthenedcompetitiveness: it
facilitates the delivery of quality products in anhonest, reliable way. This approach can enhance work
life bymaking the workplace more fun and challenging. It can improverelationships with stakeholders
and can instill a more positivemindset that fosters creativity and innovations among thestakeholders.
The purpose of ethics is to enhance our lives and our relationshipsboth inside and outside of the
organization.