Factors influencing business ethics

Business ethics
Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment.

Factors influencing business ethics

Internal factors : (can be controlled by proper management) External factors: (no control by mgt)

Internal factors
People : individual characteristics Vision statement: policies and programmes Strategies Rewards Targets and budgets Profits Working condition Leadership Corporate culture

External factors
Society Religion and culture Government ,laws Technology Competition Reputation quotient (RQ): higher RQ gives better financial performance

Influences on ethical decision making

3 major influences:
Work place ethics Nature of ethical issue Personal values and moral standards

Work place ethics

Set of values that are part of the workplace corporate culture Set of beliefs, goals, norms and the manner of solving problems that workers of the organisation share. If these are straight forward wont affect an ethically sensitive employee Vice versa

Nature of ethical issue

Ethical issue arises because of conflicts among individual values and organisational values Work envt is a conglomerate of hundreds of individuals having different values,thus leads to further issues

Personal values
6 pillars of character
Trust worthiness Respect Responsibility Fairness Caring citizenship

1 - Trust worthiness
Trustworthiness is a moral value considered to be a virtue. A person can prove their trustworthiness by fulfilling an assigned responsibility - and as an extension of that, not to let down expectations In order for trust to be earned, worth and integrity must be proven over time. It can also be related with reliability , loyalty , etc..

2 - Respect
Accept each others individuality and differences in human nature and beliefs without prejudice. If so less ethical dilemmas would be there to solve

3 - Responsibility
Carry out a duty It also means being accountable for ones action Ethical people show responsibility by being accountable, pursuing excellence and existing self restraint. They exhibit the ability to respond to expectations.

4 - Fairness
Ones ability to view persons or events equally To be fair, a person must be impartial, equitable, open and follow due process.

5 - Caring
It is the heart of ethics People who do not posses the sense of caring may not care to be fair, honest , loyal or respectful towards others

6 - Citizenship
A good citizen obeys laws of the place, stays informed of the issues of the day, observes the rules and regulations and also enjoys the privileges entitled to a citizen A good corporate citizen should discharge his duties and responsibilities to all its stakeholders.