INTRODUCTION OF ETHICS

DEFINITION
ETHICS IS: 1. The study of standards of conduct and moral judgment; moral philosophy 2. A treatise on this study 3. The study or code of morals of a particular person, religion, group, profession, etc. The first one refers to an academic concept. Philosophers, law professors, socialists, moralists and a whole host of other academics are engaged in the study of what is considered moral behaviour. The study involves looking at different theories of ethics such as: situational ethics, consequential ethics, value ethics, utilitarian ethics, moralistic ethics, ethical realism, ethical hierarchy, principle ethics and moral development of ethics. The second one refers to all the writings about all of these.

DERIVATION:
The term ethics is derived from the Greek word ETHOS which refers to character or customs or accepted behaviour. MEANING 1. Ethics is a branch of philosophy that addresses questions about morality that is concepts such as good and bad, noble and ignoble, right and wrong, justice and virtue. 2. Ethics is the branch of study dealing with what is the proper course of action for man. It answers the question, what do I do? it is the study of right and wrong in human endeavors. 3. Ethical behaviour is generally considered behaviour that is in line with the accepted moral code and that is proper. 4. Ethics means the rules or principles that define right or wrong conduct. The term Ethics refers to a code of conduct that guides an individual while dealing with others.

NINE THEORIES OF ETHICS:

Nine major theories have all been created to explain ethics and to determine whether a decision is ethical or not: 1. SITUATIONAL ETHICS it suggests that the ethically right thing to do depends on the situation. For example, lying is wrong, but if you lie to avoid hurting someones feelings, lying is right.

2. CONSEQUENTIAL ETHICS- An action is ethical depending on the consequences of that action. Lying isnt wrong if the consequences that result are positive. 3. VALUE ETHICS- If you act according to your values and do what you feel is right, your behaviour ethical. 4. UTILITARIAN ETHICS the behaviour that provides the most benefit is the ethical behaviour. If you can kill one person to save many, it is OK to do so. 5. MORALISTIC ETHICS there are certain moral absolutes and situations in which something is always right or always wrong. For example, pacifists may believe war is ALWAYS wrong, no matter how justified it may seem. 6. ETHICAL REALISM this theory recognizes that in the real world, ethical principles can conflict and the best one has to be chosen. 7. ETHICAL HIERARCHIES certain ethical principles can conflict and the best one has to be chosen. 8. PRINCIPLE ETHICS ethical values are just principles or theories to guide decisions 9. MORAL DEVELOPMENT this theory suggest ethics can be taught and that greater levels of ethical behaviour can be achieved as one learns more.

IMPORTANCE OF ETHICS
1. Ethics is a requirement for human life. 2. It is our means of deciding a course of action. Without it, our act ions would be random and aimless. 3. Ethics are important because they give us a baseline for understanding the concepts of right and wrong. 4. Ethics help us to have a ready understanding of how to react to a certain situation long before that situation happens. 5. Ethics are important because they act as our mediator when dealing or coming into contact with other people. If we have the wrong sense of ethics we will react to people in a negative manner

ETHICS AND MORALITY

The term ethics and morality are not one and the same. Ethics is the principle that guides the human behaviour. Morals are related to traditional beliefs, customs and convention that guide mans social behaviour. A great difference exists between ethics and morality because ethics is always based on moral standard and code of conduct developed by proper testing to guide the human behaviour.

ETHICS AND LAW

Ethics is the science of conduct. It deals with certain standard conduct and morals. 2. Law is a code of conduct which the authority in power prescribes for society. 1.

DISTINGUISH Sr. no. 1 ETHICS Ethics examines both the individual and social goodwill in all direction. Ethics contains all the social obligations, customs and traditional which are essentially implemented in the society. The people who reject the ethical principles have to face social boycott. It is not backed by power. Ethics concentrate on Do s. LAW Law is concerned with the minimum regulation necessary for public order. The social customs and traditional beliefs cannot get a place in the law. People have to obey provision of law; otherwise will be subjected to punishment. It is backed by power. Law concentrate on the Don ts.

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INTRODUCTION
Business has always recognized that it has an important role in the economic and social development of its communities. It is an integrated part of any society and is committed to operating in a responsible and sustainable manner. They are expected to shoulder much more social responsibility. The effectiveness of the organization nowadays depends upon its ability to develop itself into a social organization.

ROLE OF BUSINESS IN SOCIETY

Corporate responsibility is considered the building block for any organization. As a result, organizations are evolved overtime to perform number of tasks in society. These are: FINANCIAL TASKS:-Corporations are required to assure shareholders that they are acting in their interest. Thus the organizations need to be transparent in their financial matters, so that the investors can invest with confidence. 2. ECONOMIC AND PRODUCTION TASKS:-The tasks related to the creation and maintenance of wealth are referred to as economic and production tasks. All business that make up commercial world are associated 1.

with economic and production tasksCompanys in trying to maximize returns for shareholders may monopolize markets by buyouts, mergers and unfair practices like market manipulations. Economically responsible corporations will always refrain from monopolizing the market. 3. Maintenance Tasks:-The examples of such activities are educational, religious and health welfare services. These are helpful in transmitting information to society, communicating knowledge and shaping the culture of the society.For example, Microsoft Corporation announces donation of more than 1.7 million dollars to software to tend national non-profit organizations. 4. ADAPTIVE TASKS:- It means how organization adopts to the changes in the society. Organizations create products that are useful for society and these products are designed in accordance with changes in consumer preferences. 5. MANAGEMENT TASKS:-Corporations are expected to support and promote human rights, not to suppress basic freedom of speech, association, etc. In some countries, businesses encounter problems because of the violation of human rights. Since the primary responsibility of any organization is to operate efficiently and respecting the interest of the stakeholdersCompanies can achieve this by upholding local laws in which they operate and must frame policies that are towards corporate social responsibility and should be available to all stakeholders. 6. ENVIRONMENTAL TASKS:-Environmental tasks are necessary to curb certain unethical practices. Most companies have now established regulations to limit pollution by their factories. This is essential to prove a companys commitment to CSR. Most of the industries associations have also established environmental codes of conduct. Companies have to develop detailed guidelines, policies to govern their activities and behaviours. These standards have to become a part of the companys everyday practice. COMPANIES BENEFIT SOCIETY BY:Supplying goods and services that customer cannot, or do not want to, produce themselves.Creating jobs for customers, suppliers, distributors and coworkers.These people make money to support themselves and their families, pay taxes and use their wages to buy goods and services.Continually developing new goods, services and processes.Investing in new technologies and in the skills of employees. Building up and spreading international standards, e.g. for environmental practices.Spreading good practice in different areas, such as the environment and workplace safety.

CONCLUSION:-

For a company to progress and develop, it must nurture relations with its stakeholders. Some have a strong influence and are of fundamental importance to the survival of the company, these include employees, customers and suppliers. The media authorities, trade unions and local residence are other stakeholders with a wide ranging influence.

BUSINESS ETHICS
DEFINITION OF BUISNESS ETHICS
Business ethics are those principles, Policies or philosophies that are concerned with moral judgment & good conduct as they are applicable to business situation.

MEANING OF BUSINESS ETHICS

Business ethics refer to a code which businessmen are expected to follow while dealing with others. The coverage of business ethics is very wide as it deals with norms relating to customers, shareholders, employees, dealers, government and competitors. These are, in fact, the different areas of business ethics.

FEATURES OF BUSINESS ETHICS

1. 2. 3. 4. 5. Business ethics is a code of conduct which businessman should follow while conducting their normal activities. Business ethics has universal application. It is a relative term. It changes from one business to another. It differs from country to country. It is a new term. It is strictly followed only in the rich & western countries. It is not followed properly in the poor and developing countries. Business ethics gives protection to customers and other social groups such as shareholders, employees and the society at large.

APPROACHES TO BUSINESS ETHICS: There are four basics approaches of business ethics:EMPIRICAL APPROACHES:-it states that ethics is derived through experience of businessman who determines what is wrong. 2. INTUITIVE APPROACHES - it states that business ethics is not necessarily derived from experience of businessman or logic but businessman automatically processes an understanding of what is good and what is bad. 3. RATIONAL APPROACHES- It states that business man need not require any past experience for determination of ethics. 4. REVELATION APPROACHES - it states that religious moral principles help life to rise to greatest potential. 1.

SCOPE FOR BUSINESS ETHICS:

The frame work has to be outlined before the business activity starts
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CRIMINAL BEHAVIOR AND LEGAL FRAMEWORK:-Every businessman needs to have a code of ethics pertaining to criminal behaviour and legal issues. The employees in a business need to be trained sufficiently regarding legalities of the business and the consequences their actions would have upon them and the business. HUMAN VALUES AND PERSONAL BEHAVIOUR:-Every business needs to have an ethical framework or policy for human values and behaviour. Employees should be given training on how to interact with different people, be it customers, suppliers or competitors. They need to be aware of how they are expected to behave with people at different levels and that I appropriate behaviour will have consequences. CORPORATE AND BUSINESS ETHICS:-business ethics pertaining to the corporate ethics, ethical policies for business and actions that are going to be under check and need to be in compliance with legal framework and standard.

IMPORTANCE OF BUSINESS ETHICS:1. 2. 3. 4. 5. Customer will be satisfied only if the business will follow all the business ethics. Business ethics is needed in order to make businessmen conscious as regard their duties and responsibilities towards consumer and other social groups. Business ethics is needed in order to make business activities fair to consumers. It checks business malpractices and offers protection to consumer. Business ethics is needed in order to improve the confidence of consumers as regards quality, price, reliability,etc. Of goods and services supplied. Business ethics is needed for protection of rights of consumers at the business level such as right to health and safety, right to be informed, right to choose, right to be heard, etc. Business ethics is needed for protect the interest of all those concerned with business- the employees, shareholders, dealers, and suppliers. It avoids their exploitation through unfair trade practices. Business ethics is needed in order to create good image of businessman in the society and also for avoiding public criticism by all. Business ethics leaves a long lasting impression on the customers and the impression on their mind builds trust, fetching a business more customers while retaining the old one. Without following certain ideals in business, one cannot become successful.

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Success that is attained without a foundation of strong ethics is bound to be short-lived. A business cannot continue to prosper without an ethical base. A few successes can be coincidences or flukes but persistent success can only be a result of a strong foundation of ethics. Public will be ready to invest or lend money only if they are convinced that the organization is following fair business practices. Business ethics gives protection to costumers and other social groups such as shareholders, employees, and the society at large. Business ethics is needed in order to develop cordial and friendly relation between business and society. It is also needed for social recognition and support to business. Organization doing business ethically will continue to survive and prosper for a long time. It is a social movement of consumer that has come into existence to educate and unite consumer to fight for their protection of their rights. It has gained momentum which has compelled businessman to follow business ethics for survival.

BUSINESS ETHICS AND PROFITS:

Survival is a name of any business game. If a company wants to survive it has to think about its profits. Most businesses operate on the principle that profit is not linked to ethical consideration. But there are instances, which nullify the above principle. For instance Johnson & Johnson is often recognized as a company whose ethical behaviour is exemplary. The company clearly prioritizes its responsibilities in its corporate credo: first to its customers, second to its employees, third to its management, fourth to its communities in which it operates, and fifth to its stockholders. 'Business must make a sound profit', states the credo in describing sixth responsibility. The term 'profit' in business is appropriate but only profit is not acceptable any more. Today every organization whether big or small, has to justify its existence in the market place. It is felt that if a company cannot generate profits, it has to right in the market place. A firm that is not performing well is considered as liability and burden to the society, as it cannot discharge its responsibility to its community- welfare, to its employees, revenue to shareholder and meet costumers demand. Thus, profit today is recognized as a characteristic of the success of a business and a justification for its existence. A sick or loss making company is bound to misuse scarce resources. Such as loss making companies makes huge liabilities: upset the business, promotes inefficiency and finally cannot discharge its social responsibility. Considering this situation, it may be unethical for a firm to make loss. Such firm cannot exist in the market place as they force their employees into economic insecurity.

CONCLUSION:
The need for business ethics is felt more in recent years. This may be the result of various factors such as growing competition, growing alertness among consumers as regards their rights and growing awareness among employees, shareholders, and the local community. People are not in the mood to tolerate unethical business.

SUBJECT: BUSINESS ETHICS & CORPORATE GOVERNANCE

Topics:
1. Introduction to Ethics 2. Role of Business in society 3. Business Ethics

Group members
UPASANA PANESAR 83 ASHISH DIXIT NAMAN SHRIVASTAVA FAIZAN MANDAR MADAYE - 81