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MYTHS ABOUT

BUSINESS ETHICS
Myths of Business Ethics
Business ethics is more a matter of religion than management:
Diane Kirrane, in Managing Values: A systematic Approach to
Business Ethics, asserts that altering peoples values or souls
isnt the aim of an organizational ethics program managing
values and conflict among them is
Employees are ethical so we dont need attention to business
ethics:
significant value conflicts among differing interests,
real alternatives that are equality justifiable and
significant consequences on stakeholders in the situation.
Myths of Business Ethics
Business ethics is a discipline best led by philosophers, academics
and theologians
Lack of involvement
Believe to be a complex philosophical debate or a religion
Practical application in areas of management
Business ethics is superfluous it only asserts the obvious: do
good!
Values to which naturally aspire
Business ethics is a matter of the good guys preaching to the bad
guys
Myths of Business Ethics
Business ethics is the new policy person in organization and it is
recent phenomenon
Ethics cannot be managed but ethics can be managed but too
often indirectly
Business ethics had social responsibility are same thing but social
responsibility is one aspect of overall discipline of business
ethics.
Our organization is not in trouble with the law, so we are ethical
Managing ethics in the workplace has little practical relevance.


Myths about business ethics

Its easy to be ethical
Unethical behavior is part of business
There are no rewards for being ethical
Ethical behavior will prevent me from being successful
Business is like a sport, push the rules & try not to get caught
Business ethics is about character education and teaching moral
philosophy
THREE PRINCIPLES OF BUSINESS ETHICS
Standardization
Workable
Driven form the top

TYPES OF ETHICS

Transactional ethics- Man is a social animal. He has to act and react with
others through different transactions. The practices of ethics in all these
transactions is called as transactional ethics
Participatory ethics- Guided by common good, all the participations follow
some ethical practices.
Recognition ethics- As human beings, people are endowed with the ability
to understand the problems of others. This quality leads to the recognition
of individuals, institutions and societies, conflicting situations can be solved
by the correct recognition of the situation.
Eg: The strong is helping the weak
The learned is helping the lesser learned.
The experienced is helping the new entract

METHODOLOGY
General
Leadership
Perceived / fairness
Employee authority structure
Reward systems
Ethics as a topic of conversation in the organization
Origanisal focus that communication care for the
employees and the community

METHODOLOGY
In Business
Top management attitudes
Opening up corporate culture to broad ethical standards
Organisational changes that helps employees at all levels
Building ethical safeguards into the company
- Codes of ethics
- Ethics committees
- Ethics training programs
- Ethics audits


METHODOLOGY
Others..
Corporate culture
Environment
METHODOLOGY
Business performance
Public expectations
Prevents social harm
Protects itself from abuses by employees and other
firms
Preserves the dignity and integrity of individuals who
work in business
IMPORTANCES OF ETHICS
Social concern
Social responsibility
Avoidance of whistle blowing
Value in business
Improves organizational effectiveness
Healthy competition
Benefit for stakeholders