Ética de negócios

Tudo o que você precisa saber sobre ética nos negócios. A ética nos negócios implica idéias éticas gerais para o comportamento nos negócios.

O comportamento ético não apenas melhora a lucratividade, mas também promove as relações comerciais e a produtividade dos funcionários. A ética nos negócios preocupa-se com o comportamento do empresário em fazer negócios. Práticas antiéticas criam problemas para o empresário e as unidades de negócios.

“A ética nos negócios é uma arte e ciência para manter um relacionamento harmonioso com a sociedade, seus vários grupos e instituições, além de reconhecer a responsabilidade moral pela rigidez e injustiça da conduta nos negócios” - Wheeler.

Aprender sobre:-

1. O que é ética nos negócios? 2. História da ética nos negócios 3. Significado 4. Conceito e definições 5. Características 6. Elementos 7. Natureza

8. Princípios 9. Necessidade 10. Importância 11. Teorias 12. Ética nos negócios e lucros na ética nos negócios 13. Determinantes 14. Vantagens de gerenciar a ética no local de trabalho

15. Regulamentos 16. Diretrizes 17. Dilema ético 18. Relação entre ética e negócios 19. Fundamentação da ética nos negócios 20. Ética e cultura corporativa indiana 21. Causas e problemas de comportamento antiético e alguns outros.

Ética nos Negócios: História, Significado, Conceito e Definições, Características, Elementos, Natureza, Princípios e Outros Detalhes


Conteúdo:

  1. O que é ética nos negócios?
  2. História da Ética Empresarial
  3. Significado da Ética nos Negócios
  4. Conceito e Definições de Ética Empresarial
  5. Características da ética nos negócios
  6. Elementos de ética nos negócios
  7. Natureza da ética nos negócios
  8. Princípios de Ética nos Negócios
  9. Necessidade de ética nos negócios
  10. Importância da ética nos negócios
  11. Teorias da ética nos negócios
  12. Ética nos Negócios e Lucros na Ética nos Negócios
  13. Determinantes da ética nos negócios
  14. Vantagens de gerenciar a ética nos locais de trabalho
  15. Regulamento de Ética Empresarial
  16. Diretrizes para determinar ações éticas
  17. Dilema ético
  18. Relação entre Negócios e Ética
  19. Fundamentação da ética nos negócios
  20. Ética e cultura corporativa indiana
  21. Causas e problemas de comportamento antiético
  22. Desafios da ética nos negócios
  23. Ética nos negócios na Índia
  24. Benefícios da ética nos negócios
  25. Argumentos contra a ética comercial

O que é ética nos negócios?

As economias regulamentadas anteriormente exigiam que seus governos regulassem e controlassem organizações empresariais e instituições econômicas por meio de mecanismos legais e governamentais para permitir que eles desempenhassem seu papel de contribuir para o crescimento e bem-estar de seus stakeholders de maneira equilibrada, de modo que o interesse dos quase todo o povo estava protegido.

Vários conceitos, princípios, teorias, práticas, metas e estratégias de gestão de negócios estão sob avaliação, revalidação e constantes mudanças, resultantes de liberalização maciça, privatização e globalização dos negócios iniciados no final do século XX e voltados para o início do presente. século.

Até agora, os governos cumpriam as responsabilidades de salvaguardar o interesse dos clientes em relação à qualidade, preço, entrega segura e oportuna do produto, etc., protegendo as empresas de uma concorrência prejudicial, restringindo a concentração do poder econômico nas mãos de poucos. que de outro modo deveria ser desfrutado pela maioria da população e afins, relegou e transferiu a responsabilidade para os ombros das organizações empresariais, muitas vezes simplesmente encorajando a liberalização e a privatização do comércio.

Muitos cientistas sociais sentiram que a desregulamentação dos negócios encorajaria os negócios a voltar ao seu objetivo ortodoxo de maximização do lucro por qualquer meio, inclusive praticando conduta antiética. Porém, mais cedo ou mais tarde, vários incidentes em todo o mundo provaram que as empresas deveriam realizar suas operações de forma ética em prol da sobrevivência básica. O exemplo a seguir é um ponto de fato.

Na prática:

A Ford Motor Company decidiu produzir o primeiro carro de menor preço nos EUA. O presidente da empresa, Lee Lacocca, queria apressar o desenvolvimento de um carro que custasse menos de US $ 2.000, pois prometeu ao público que sua empresa lançaria um carro a esse preço (tão baixo quanto US $ 2.000) e também lutaria contra a crescente popularidade da Volkswagen. Besouro. Testes preliminares mostraram que envolvia um custo adicional de US $ 11 para aumentar a segurança do carro.

Ele organizou uma reunião de executivos da empresa para decidir como reduzir o custo abaixo de US $ 2.000. Muitos executivos sugeriram que a empresa vendesse o carro por US $ 2.011, mas incluía o recurso de segurança. Alguns executivos pensaram que a empresa deveria vender o carro por US $ 2.000, conforme prometido, mas excluía o recurso de segurança. A empresa decidiu seguir em frente sem o recurso de segurança.

O carro foi lançado e vendido por US $ 2.000. Após seis meses de liberação, um dos carros foi envolvido em um acidente matando todos os passageiros. Os concorrentes influenciaram os jornais a publicar este acidente e os jornais nos EUA destacaram a ausência do recurso de segurança. Esse incidente resultou não apenas na perda de vendas, mas também no fechamento da unidade, resultando em uma perda de US $ 250 milhões para a empresa.

Este caso indica que os negócios devem considerar princípios éticos enquanto tomam decisões para atingir seu objetivo básico de sobrevivência. Assim, a concorrência obriga as empresas a conduzir seus negócios com ética. O aumento da alfabetização, o uso generalizado da tecnologia da informação e o declínio dos mercados de vendedores após a globalização reduzem o escopo de debates sobre a necessidade de conduzir os negócios com ética.

O problema de ética antes da globalização não se devia à falta de informação e conhecimento, nem à não aceitação de princípios de comportamento ético subjacentes a esse conhecimento, mas à evitação de atitudes desenvolvidas pelos empresários em relação à lei, em decorrência da oportunidade oferecida. pelo mercado dos vendedores. A questão, agora, é tratar a ética como parte do comportamento humano e como parte da tomada de decisões empresariais individuais e coletivas. Muitas pessoas de negócios são pessoas religiosas, mas seu processo de negócios as torna cegas em relação ao sofrimento humano.

Eles costumavam se safar com comportamento antiético com mais frequência nas condições do mercado do vendedor, ou seja, onde o vendedor detém o poder no mercado. De fato, quando as condições mudam e o ambiente de mercado se torna um mercado comprador, isso muitas vezes faz com que os empresários percebam que se comportar de forma ética não é apenas um interesse na vida pessoal, mas também na vida comercial, especialmente a longo prazo.


Ética nos Negócios - História

A história da ética remonta aos anos 70, quando o termo ética nos negócios era comumente usado. Condutas cada vez mais antiéticas foram encontradas pelas empresas durante a década de 1960. Para combater isso, as empresas desenvolveram programas de responsabilidade social que incluíam doações de caridade e financiavam projetos da comunidade local.

As escolas de administração começaram a incorporar cursos de 'responsabilidade social' em seus programas, mas o foco era principalmente o direito e a estratégia de gestão.

Eventualmente, os filósofos se envolveram e trouxeram a teoria ética para as questões éticas relevantes e, portanto, a ética nos negócios se tornou uma parte mais institucionalizada dos negócios.

Esse novo aspecto da ética nos negócios o diferencia dos cursos de questões sociais de três maneiras:

Eu. Ele fornece uma estrutura ética para avaliar os negócios e o mundo corporativo.

ii. Permite análise crítica dos negócios e desenvolvimento de métodos novos e diferentes.

iii. Fundiu a responsabilidade pessoal e social e deu-lhe uma base teórica.


Ética nos Negócios - Significado

A palavra ética é derivada da palavra grega 'ethos', que significa caráter. A ética é um ramo da filosofia preocupado com o caráter e a conduta humanos. É a disciplina que lida com 'o que é bom e ruim' e com o dever e a obrigação moral. A ética é a personificação dos valores morais, que descreve o que é "certo" e o que é "errado" no comportamento humano e o que "deveria ser".

A ética é uma "consideração e aplicação de estruturas, valores e princípios para o desenvolvimento da consciência moral e o comportamento e ação orientadores". Geralmente, a ética também é chamada de “moral, bom, certo, justo e honesto. Os padrões éticos são referidos como os princípios ou ideais da conduta humana. ”Assim, a ética implica bom caráter e moralidade e refere-se ao caráter e comportamento humanos geralmente aceitos, considerados como desejáveis ​​pela sociedade contemporânea.

O que é ético e antiético na sociedade em geral pode não ser o mesmo nos negócios, pois este opera em ambientes diferentes. A ética nos negócios “preocupa-se principalmente com o relacionamento dos objetivos e técnicas dos negócios com as necessidades humanas específicas. Ele estuda o impacto dos atos no bem do indivíduo, da empresa, da comunidade empresarial e da sociedade como um todo.

“A ética nos negócios estuda as obrigações especiais que um homem e um cidadão aceitam quando se tornam parte do mundo do comércio”. A ética nos negócios são as normas e os valores morais do comportamento humano desejados pela sociedade contemporânea de maneira exclusiva e inclusiva em transações comerciais. Essas definições sobre ética nos negócios não são abrangentes, mas fornecem uma idéia do que é ética nos negócios. De fato, definir o termo ética nos negócios de maneira abrangente é muito difícil.

Ética nos negócios significa o comportamento de um empresário durante a condução de um negócio, observando a moralidade em suas atividades comerciais.

O comportamento de um empresário tem mais impacto dentro da organização do que fora. Portanto, ele deve obedecer às leis, mesmo que pessoalmente acredite que elas são injustas ou imorais. Se o empresário achar que as disposições das leis são injustas, ele poderá tomar medidas para alterar as disposições em vez de desobedecê-las.

Um empresário deve observar a moralidade não apenas nas atividades comerciais, mas também nas atividades não comerciais. Tal observação da moralidade não é necessária por medo de punição. Ele deve observar a ética inspirada em seu próprio interesse nos negócios e na sociedade como um todo. O motivo é que não há distinção entre um empresário e o seu negócio. Segundo Drucker, todo indivíduo e organização da sociedade deve obedecer a certos códigos morais e que não há uma ética separada dos negócios.


Ética nos Negócios - Conceito e Definições de Ética nos Negócios

A natureza e o conceito de ética, podemos dizer que a ética nos negócios nada mais é do que a aplicação da ética nos negócios. A ética nos negócios prova que as empresas podem ser e têm sido éticas e ainda obter lucros. A ética nos negócios era vista como uma contradição de termos. Felizmente, não mais. Hoje, cada vez mais se interessa pela aplicação de práticas éticas nos negócios e nas implicações éticas dos negócios.

Os seres humanos foram dotados da liberdade de escolha e dos meios de livre arbítrio. Ele pode distinguir entre bem e mal, certo e errado, justo e adequado. Ele pode distinguir entre o fim que deseja buscar e os meios para alcançá-lo.

Agora, o que é verdadeiro para os seres humanos também é verdadeiro para os negócios, porque os negócios são realizados apenas por seres humanos, e as organizações empresariais nada mais são do que estruturas formais para os seres humanos continuarem seus negócios. Além disso, as empresas são consideradas entidades vivas e em crescimento. Assim, as empresas também têm escolhas - uma opção para maximizar seus lucros e uma opção para fazer o bem à sociedade em que vivem e operam.

No entanto, na maioria das vezes, a maximização do lucro e o cumprimento de responsabilidades sociais no limite máximo não podem ser realizados simultaneamente. Um é obrigado a afetar o outro. Por exemplo, a preocupação com a tarefa (produtividade) e a preocupação com os seres humanos (trabalhadores) são obrigadas a se puxar em direções opostas. É difícil, se não impossível, maximizar os dois juntos.

Um conflito surge na tentativa de alcançar os dois simultaneamente. Portanto, muitas escolhas gerenciais representam dilemas gerenciais, entre a consideração do lucro (preocupação comercial) e a consideração social (preocupação com o bem-estar) da organização. Muitas decisões gerenciais têm implicações éticas e essas decisões geram dilemas gerenciais.

Por exemplo, arruinar as ocupações de habitantes seculares em uma localidade específica e seu modo de vida ético, usando tecnologia avançada, é um dilema ético. Os avanços tecnológicos têm que vir, têm que ser usados; no entanto, o que fazer com as pessoas cuja vida e ganhos são afetados pela utilização de tecnologia avançada, é uma pergunta difícil de responder.

Recentemente, um arquivo de idioma regional premiado da Índia retratava a situação de um barqueiro idoso cuja ocupação era transportar pessoas e mercadorias através do rio local, pois não havia ponte sobre o rio. No entanto, sua ocupação é ameaçada quando uma ponte é construída sobre o rio.

Isso não significa que o avanço da tecnologia não deva ser utilizado ou que os métodos modernos não sejam bem-vindos. Certamente, eles deveriam. A ciência e a tecnologia devem, por todos os meios, ser usadas para elevar e melhorar a vida dos seres humanos em todo o mundo, especialmente nas regiões mais atrasadas em que este barqueiro viveu.

No entanto, deve-se também considerar se meios alternativos de arranjo podem ser feitos para que as pessoas não sejam indevidamente perturbadas ou que seus traumas e transtornos sejam mantidos no mínimo. No caso do barqueiro, uma solução ética e eficaz consiste em oferecer-lhe um emprego alternativo na própria ponte - como segurança, cobrador de pedágio etc.

Da mesma forma, quando ocorrem fusões entre empresas, ou a aquisição de uma empresa por uma empresa maior, onde os cargos são duplicados, em vez de os funcionários perderem seus empregos por falta de culpa deles, as soluções éticas estão na reatribuição de emprego ou na reciclagem para atribuições de trabalho alternativas.

Um negócio ou empresa é considerado ético somente se tentar alcançar um equilíbrio entre examinar seus objetivos econômicos e suas obrigações sociais, isto é, entre suas obrigações para com a sociedade em que existe e opera; suas obrigações para com o povo devido a quem ele pode até pensar em buscar objetivos econômicos; ao seu ambiente, de quem é preciso muito sem exigir nada em troca; e similar.

Quais são as obrigações de um negócio, está aberto a interpretações. A lista de obrigações que uma empresa deve executar é longa e complexa e, portanto, onerosa para a empresa; no entanto, eles precisam receber alta, se uma empresa deseja sobreviver e crescer a longo prazo e não está satisfeita em lucrar apenas no curto prazo. Ao cumprir suas obrigações para com a sociedade, a empresa não apenas cumpre seus próprios deveres, mas também abre caminho para uma base mais forte e ética.

Definições:

A palavra "ética" refere-se a princípios de comportamento que distinguem entre bom e ruim; certo e errado. É a própria atitude e crenças de uma pessoa em relação ao bom comportamento. A ética reside nos indivíduos e, como tal, são definidos separadamente por cada indivíduo à sua maneira. O que pode ser um comportamento ético para 'X' pode ser antiético para 'Y'.

A ética, em resumo, pode se referir ao seguinte:

Principais componentes da 'ética' :

Eu. Ética são princípios, valores e crenças que definem o que é comportamento certo e errado.

ii. A ética é mais ampla do que é declarado por lei, costumes e opinião pública. Por exemplo, aceitar presentes de sogro pode ser socialmente aceitável, mas não ético; os proprietários que embolsam lucros sem compartilhar os ganhos com os trabalhadores podem ser legalmente permitidos, mas não éticos.

iii. O comportamento ético pode diferir de sociedade para sociedade. Por exemplo, o controle de natalidade é obrigatório nas sociedades comunistas, mas não nas sociedades cristãs católicas.

iv. Padrões éticos são ideais da conduta humana. Definir padrões éticos não é uma tarefa fácil.

A ética nos negócios refere-se à aplicação de princípios morais para resolver problemas nos negócios. Aqui, a palavra "moral" refere-se a costumes de conduta aceitos em uma sociedade. O objetivo da ética nos negócios é orientar os esforços dos gerentes no cumprimento de suas obrigações para a satisfação de várias partes interessadas, como funcionários, proprietários, clientes, fornecedores, e público em geral.

A ética gerencial, portanto, são os princípios que orientam a conduta e o pensamento dos gerentes em relação ao que é bom ou ruim; certo ou errado (Barry). Nem sempre é fácil dividir ações gerenciais em compartimentos bem definidos de comportamento ético e antiético, devido a certos fatores complicadores.

A ética nos negócios implica idéias éticas gerais para o comportamento nos negócios. O comportamento ético não apenas melhora a lucratividade, mas também promove as relações comerciais e a produtividade dos funcionários. A ética nos negócios preocupa-se com o comportamento do empresário em fazer negócios. Práticas antiéticas criam problemas para o empresário e as unidades de negócios.

O crescimento de um negócio depende de práticas éticas realizadas pelo empresário. O costume comercial difere de uma empresa para outra. Se um costume for adotado e aceito pelo empresário e pelo público, esse costume se tornará uma ética.

“A ética nos negócios é uma arte e ciência para manter um relacionamento harmonioso com a sociedade, seus vários grupos e instituições, além de reconhecer a responsabilidade moral pela rigidez e injustiça da conduta nos negócios”, como disse Wheeler.

Segundo Rogene A Buchholz, a ética nos negócios refere-se ao comportamento certo ou errado nas decisões de negócios.

Pode-se dizer que a ética nos negócios começa onde as leis terminam. Ele se preocupa principalmente com as questões não cobertas pela lei.


Ética nos Negócios - 13 Principais Características

Existem várias características ou características da ética nos negócios.

Alguns deles são discutidos aqui:

1. A ética nos negócios é baseada em valores sociais, como as normas geralmente aceitas de boas ou más e práticas "certas" e "erradas".

2. É baseado nos costumes sociais, tradições, padrões e atributos.

3. A ética nos negócios pode determinar os caminhos e os meios para um melhor e melhor desempenho dos negócios.

4. A ética nos negócios fornece diretrizes e parâmetros básicos para as perfeições mais apropriadas no cenário dos negócios.

5. A ética nos negócios diz respeito basicamente ao estudo do comportamento e das condutas humanas.

6. A ética nos negócios é uma filosofia para determinar os padrões e normas para estabelecer interações e comportamentos mútuos entre o indivíduo e o grupo na organização.

7. A ética nos negócios oferece o estabelecimento de normas e abordagens direcionais para a criação de um código de conduta apropriado nos negócios.

8. A ética nos negócios baseia-se nos conceitos, pensamentos e padrões, contribuídos e gerados pelo ethos indiano.

9. A ética nos negócios também pode ser uma "arte" e uma "ciência".

10. A ética nos negócios basicamente inspira os valores, padrões e normas do profissionalismo nos negócios para o bem-estar dos clientes.

11. A ética nos negócios é motivar e está constantemente relacionada ao conceito de motivos de serviço para o ponto de vista dos clientes.

12. A ética nos negócios mostra os caminhos e os meios melhores e em perspectiva para a maioria das excelências na personalização.

13. A ética nos negócios visa enfatizar mais a responsabilidade social dos negócios em relação à sociedade.


Ética nos Negócios - Elementos : Um Código de Conduta Formal, Comitê de Ética, Sistema de Comunicação Ética, Sistema Disciplinar, Monitoramento e Alguns Outros

As organizações estão constantemente buscando um melhor ambiente ético dentro do clima e da cultura dos negócios. As empresas devem criar um clima ético nos negócios para desenvolver uma organização ética.

Alguns dos elementos da ética nos negócios são:

(i) Um código de conduta formal:

Código de conduta são declarações de valores organizacionais. A Lei Sarbanes-Oxley de 2002 tornou importante que as empresas tivessem um código de ética, algo escrito que ajudasse os funcionários a saber - com facilidade e clareza - o que se espera deles no trabalho. O código deve refletir o desejo da gerência de incorporar os valores e políticas da organização.

Código de Ética:

Para cada novo negócio incorporado, é importante que a administração tenha um código de ética para o seu negócio. Geralmente não é escrito para pequenas empresas. É basicamente um chavão para os funcionários observarem normas éticas e formarem as regras básicas de conduta. Geralmente, ele especifica métodos para relatar violações, ação disciplinar por violação e uma estrutura do devido processo a ser seguido.

Um código de ética deve resumir as crenças e valores da organização. Para um grande império empresarial, é importante contratar talentos para auxiliar o pessoal existente no que diz respeito à integridade, compreensão, responsabilidade e normas culturais do país.

(ii) Comitê de Ética:

Os comitês de ética podem suscitar preocupações de natureza ética; preparar ou atualizar o código de conduta e resolver dilemas éticos na organização. Eles formulam políticas éticas e desenvolvem padrões éticos.

Eles avaliam a conformidade da organização com esses padrões éticos. Os membros do comitê devem estar conscientes da cultura corporativa e da concisão ética da organização.

Os seguintes comitês serão formados:

uma. Comitê de ética no nível do conselho - O comitê seria encarregado de supervisionar o desenvolvimento e a operação do programa de gerenciamento de ética.

b. Comitê de gerenciamento de ética - Ele será encarregado de implementar e administrar um programa de gerenciamento de ética, incluindo administração e treinamento sobre políticas e procedimentos e resolução de dilemas éticos.

(iii) Sistema de Comunicação Ética:

O sistema de comunicação ética ajuda os funcionários a fazer perguntas, obter aconselhamento, se necessário, e relatar todo o mal feito na organização.

Os objetivos do sistema de comunicação ética são:

uma. Comunicar os valores e padrões de conduta ética ou de negócios da organização aos funcionários.

b. Fornecer informações aos funcionários sobre as políticas e procedimentos da empresa em relação ao código de conduta ética.

c. Ajudar os funcionários a obter orientação e resolver consultas.

d. Configurar meios de consulta, como linhas diretas, caixas de sugestões e recursos de e-mail.

A alta administração pode comunicar os padrões éticos à baixa administração, que pode ser transferida para o nível operacional.

(iv) Um Escritório de Ética com Oficiais Éticos:

O trabalho de um oficial de ética é comunicar e implementar políticas éticas entre os funcionários da organização. O oficial de ética deve desenvolver uma reputação de credibilidade, integridade, honestidade e responsabilidade.

As funções do oficial de ética são:

uma. Avaliação das necessidades e riscos que um programa ético deve atender.

b. Desenvolver e distribuir código de conduta.

c. Conduzir um programa de treinamento ético.

d. Mantenha um serviço confidencial para responder às perguntas dos funcionários sobre questões éticas.

e Garantir que a organização esteja em conformidade com os regulamentos governamentais.

f. Monitorar e auditar a conduta ética.

g. Tomar medidas contra uma possível violação do código da empresa.

h. Para revisar e atualizar o código a tempo.

(v) Programa de Treinamento em Ética:

Qualquer código ético escrito não funcionará, a menos que seja apoiado e seguido por um programa de treinamento adequado. Algumas empresas têm um departamento de treinamento interno, enquanto outras podem optar por um especialista externo. Para garantir um comportamento ético, é estabelecido um programa de treinamento corporativo que visa ajudar os funcionários a entender os problemas éticos que provavelmente surgirão em seu local de trabalho.

Quando novos funcionários devem ser recrutados, o treinamento de indução deve ser organizado para eles. O treinamento os ajudará a se familiarizar com o código de comportamento ético da empresa.

(vi) Um sistema disciplinar:

Um sistema disciplinar deve ser estabelecido na organização para lidar com violações éticas imediata e severamente. Se o comportamento antiético não for tratado adequadamente, resultará em ameaça a todo o sistema social. Uma empresa deve adotar uma atitude justa em relação a todos, sem qualquer discriminação.

(vii) Estabelecimento de um Ombudsperson:

Um ombudsperson é responsável por ajudar a coordenar o desenvolvimento de políticas e procedimentos para institucionalizar os valores morais no local de trabalho.

viii) Monitoramento:

Para fazer um programa ético, um programa de monitoramento bem-sucedido precisa ser desenvolvido. Um comitê de monitoramento é formado. O monitoramento pode ser feito mediante observação cuidadosa do oficial de ética, pesquisas e sistemas de apoio.


Ética nos Negócios - Natureza da Ética nos Negócios

1. Nas atividades de negócios, a maioria das questões éticas pode ser de dois tipos - aberta e oculta. Problemas éticos manifestos como suborno, roubo, sabotagem, conluio etc. são claros para todos verem e geralmente são considerados repreensíveis. A maioria das pessoas deplora e a maioria das empresas toma o cuidado de não ser tão abertamente antiético.

Portanto, a maioria dos problemas na esfera dos negócios são problemas éticos secretos. Problemas éticos encobertos são mais complexos, não tão transparentes e geralmente desafiam soluções éticas. Esses tipos de problemas ocorrem em aquisições corporativas, políticas de marketing e de pessoal, investimento de capital, guerra de mercado, etc. Eles são difíceis de localizar, eliminar e, consequentemente, muito mais perigosos e ameaçadores para os negócios.

2. Para que uma decisão seja ética, ela deve possuir as seguintes características. Deveria ser -

uma. Certo - aquilo que é moralmente correto e devido;

b. Eqüitativo - aquilo que é justo e igual;

c. Bom - aquilo que traz o bem maior para todos os envolvidos;

d. Adequado - aquilo que é apropriado e aceitável;

e Justo - aquilo que é honesto e devido;

f. Apenas - que a justiça não é feita apenas, mas também parece ter sido feita.

3. A ética não é estruturada, ou seja, não possui um formato ou estrutura estruturada. É abstrato no conceito. Portanto, não possui aceitação universal, principalmente porque

uma. A ética depende de nossos padrões morais;

b. Os padrões morais dependem do nosso sistema de valores;

c. O sistema de valores das pessoas depende de seus antecedentes e experiência na infância; e

d. Os antecedentes e a experiência das pessoas são muito diferentes. Portanto, as práticas éticas das pessoas também são diferentes.

4. As decisões éticas devem expressar algumas obrigações para com os outros. Se uma decisão apenas resultar em benefícios apenas para si mesmo, não será uma decisão ética. O próprio conceito de ser ético significa que resulta em algo de bom para a sociedade em geral e não apenas para si mesmo.


Ética nos Negócios - 17 Princípios Importantes - Princípio da Consciência, Trabalho Desesperado, Esprit, Publicidade, Pureza, Humanidade, Valores Universais, Compromisso e Alguns Outros

A ética nos negócios refere-se às diretrizes básicas para estudar e analisar um senso de certo e errado e bondade e maldade de nossas tarefas.

No contexto do desempenho dos negócios, existem certos princípios e diretrizes, baseados em condutas éticas, conforme indicado aqui:

1. Princípio da Consciência - Este princípio é baseado no sentimento interior das pessoas para analisar o senso de certo e errado. Nesta base, os empresários podem determinar diferentes papéis e comportamentos em seus níveis.

2. Princípio do trabalho sem desejo - Este princípio enfatiza que não há necessidade de realizar toda a tarefa de ser egocêntrico ou de interesse próprio. Portanto, devemos desempenhar todo o papel e comportamento de outra pessoa pelo seu interesse estimado. Devemos nos dedicar aos nossos esforços para fazer o trabalho pelos outros.

3. Princípio da Esprit - De acordo com esse princípio, os empresários devem dar a devida atenção para prestar os melhores serviços possíveis e tentar desenvolver sentimentos de devoção e veracidade nos serviços. Todo o comportamento e atividades devem ser baseados em valores e motivos de serviço nos negócios.

4. Princípio da publicidade - De acordo com esse princípio, todas as atividades e o desempenho da condução em casas comerciais devem ser bem informados a todas as pessoas ou organizações diretamente ou indiretamente ligadas aos negócios. O objetivo é remover as dúvidas e mal-entendidos entre as pessoas.

5. Princípio da pureza - É muito necessário que todo empresário siga a polidez, a veracidade e a tolerância para desenvolver os sentimentos de paz mental. Ao mesmo tempo, a paz mental e a pureza também se tornam os caminhos da educação, da tolerância, etc.

6. Princípio da Humanidade - É necessário que todo empresário siga os valores humanos, o decoro humano e os aspectos humanos em suas políticas, programas e diferentes áreas de trabalho. O comportamento ético pode determinar o caminho da humanidade.

7. Princípio dos valores universais - é necessário que todos os empresários conduzam e executem a tarefa e as diferentes atividades comerciais com base em suposições universais, costumes e normas e princípios gerais aceitos pela sociedade.

8. Princípio do compromisso - De acordo com esse princípio, todo empresário deve ser capaz de cumprir seus compromissos e garantias dados a outras pessoas. A implementação dos compromissos deve basear-se na honestidade e capacidade de resposta.

9. Princípio da racionalidade - Com base no código de conduta ética, todo empresário deve analisar e avaliar os aspectos bons ou ruins, certos ou errados, éticos ou antiéticos em suas transações comerciais e no dia-a-dia das casas comerciais. Eles devem seguir as atitudes e comportamentos racionais.

10. Princípio da comunicabilidade - De acordo com esse princípio, é necessário estabelecer meios efetivos de comunicação com as pessoas internas e externas envolvidas nas casas comerciais. A comunicação deve ser de forma clara, aberta e justificada.

11. Princípio da não cooperação nos males - É necessário que os empresários tentem não cooperar ou desencorajar os males, a má conduta e o comportamento antiético, não apenas com clientes diferentes, mas também com a sociedade.

12. Princípio da cooperação com outros - As normas éticas motivam o sentimento de colaboração e espírito de equipe. É necessário que, com base na capacidade e nos recursos disponíveis, os empresários façam total cooperação com outras pessoas, de acordo com sua boa conduta e comportamento baseado em valor.

13. Princípio da satisfação - Todos os empresários são obrigados a criar e desenvolver seu papel e comportamento para estabelecer prazer e felicidade com outras pessoas e com a sociedade em geral. Fore principalmente, nos negócios de acordo com seus produtos e serviços, os clientes devem estar satisfeitos em todas as fases.

14. Princípio dos fins e meios coordenados - Os empresários devem tentar criar uma forma de coordenação ou equilíbrio entre seus fins e meios no desempenho do trabalho e nas atividades aliadas. Eles devem desenvolver seus empreendimentos dentro das limitações de recursos e capacidades.

15. Princípio do devido processo legal - Todas as pessoas e funcionários diferentes, envolvidos nos negócios, devem envolver-se no processo de tomada de decisão e em diferentes tarefas importantes. Os empresários devem seguir um processo de trabalho razoável e justificado em sua organização.

16. Princípio de gostar das expectativas - Para estabelecer as normas e condutas éticas nos negócios, é necessário seguir todo esse comportamento bom e aceitável dos empresários. Eles devem dar e executar alguns exemplos de excelência conforme as expectativas dos outros.

17. Principle of Transparency – Ethics denotes the concept of purity and truth. All the business activities and transactions should be well informed with justified manners with their different stakeholders and society.


Business Ethics – Need

Since business exists and operate within the society and is a part of a subsystem of society, its functioning must contribute to the welfare of the society. To survive, develop and excel, business must earn social sanction of the society wherein it exists and functions.

Without social sanctions, a business cannot earn loyal customers, cannot operate in the marketplace and will soon wither and die away. George A. Steiner, in 'Business & Society', says –

“The managers of the biggest companies know that as a business gets larger, the public takes more interest in it because it has a greater impact on the community. The antennae of these managers are tuned to public opinion and they react to it. They seek to maintain a proper image of their company in the public mind. This leads to the assumption of greater social responsibilities.”

No business, however great or strong or wealthy it may be at present, can exist on unethical means, or in total disregard to its social concern, for very long. Resorting to unethical behaviour or disregarding social welfare is like calling for its own doom. Thus, business needs, in its own interest, to remain ethical and socially responsible. As VB Day, in 'The Social Relevance of Business' had stated –

“As a statement of purpose, maximising of profit is not only unsatisfying, it is not even accurate. A more realistic statement has to be more complicated. The corporation is a creation of society whose purpose is the production and distribution of needed goods and services, to profit of society and itself. Each element of that statement is needed if the whole is to be accurate; you cannot drop one element without doing violence to the facts.”

Business needs to remain ethical for its own good. Unethical actions and decisions may yield results only in the very short run. For the long run existence and sustained profitability of the firm, business is required to conduct itself ethically and to run its activities on ethical lines. Doing so would lay a strong foundation for the business for continued and sustained existence.

All over the world, again and again, it has been demonstrated that it is only ethical organisations that have continued to survive and grow, whereas unethical ones have shown results only as a flash in the pan, quickly growing and even more quickly dying and forgotten.

Business needs to function as responsible corporate citizens of the country. It is that organ of the society that creates wealth for the country. Hence, business can play a very significant role in the modernisation and development of the country, if it chooses to do so. But this will first require it to come out from its narrow mentality and even narrower goals and motives.


Business Ethics – Importance of Ethics in Finance, Human Resource Development, Marketing and Production

Business ethics comprises various traits, such as trustworthiness and transparency in customer services. Ethical business practices strengthen customer relationship that is of prime importance for long-term organizational success. It deals with retaining and creating a long-lasting impression in the minds of customers. Such impressions help the enterprise to win the trust of customers and get more business.

Business ethics plays a very crucial role in various management functions, which are given as follows:

Eu. Ethics in Finance:

It deals with various ethical dilemmas and violations in day-to-day financial transactions. An example of ethical violations is data fudging in which enterprises present a fabricated statement of accounts and other records, which are open to investigation. Ethics in financial transactions gained importance when due to their insufficiency nations suffered massive economic meltdowns.

The following are the ethics in finance:

uma. Following truthfulness and authenticity in business transactions

b. Seeking the fulfillment of mutual interests

c. Getting the economies and financial units freed from greed-based methodologies.

ii. Ethics in Human Resource Management:

It deals with the enforcement of the rights of employees in an enterprise.

Such rights are as follows:

uma. Having a right to work and be compensated for the same

b. Possessing a right for free association and participation

c. Enjoying a right for fair treatment in an enterprise

d. Holding a right to work in a hazard-free environment

e Blowing whistle (an activity where an employee can raise voice against any wrong practice of anyone in an enterprise)

iii. Ethics in Marketing:

Deals with a number of issues, which are as follows:

uma. Misinforming the customers about the products or services

b. Deciding high prices for the products and services

c. Creating false impression on the customers/consumers about the features of products

d. Promoting sexual attitudes through advertising; thus, affecting the young generation and children.

iv. Ethics in Production:

It deals with the responsibility of an organization to make sure that products and processes of production is not causing harm to the environment.

It throws light on the following issues:

uma. Avoiding rendering services or producing products that are hazardous to health. For example, tobacco and alcohol

b. Maintaining ethical relations with the environment and avoiding environmental pollution.


Business Ethics – Theories of Business Ethics: Teleological and Deontological Theories

The theories of business ethics can be divided into two categories:

1. Teleological theories, and

2. Deontological theories.

1. Teleological Theories :

The term 'teleological' is derived from the Greek word 'telos' which means an end. According to teleological theories the Tightness of an action is determined solely by its consequences rather than by any feature of the action itself. Actions that result in greatest possible balance of good or evil are considered ethical. Thus, teleological theories are based on the concept of goodness.

Now the question is which is good and what is evil. In classical utilitarianism, pleasure is regarded good, and pain is considered evil. In broader terms, goodness is human well-being.

Bentham and Mill explained the doctrine of utilitarianism:

Eu. The Principle of Utility:

Jeremy Bentham (1748-1832) explains this principle as follows:

“By the principle of utility is meant that principle which approves or disapproves of every action whatsoever, according to the tendency which it appear to have to augment or diminish the happiness of the party whose interest is in question – or, what is the same thing in other words, to promote or to oppose that happiness.”

Thus, the consequences of an action are measured in terms of the pleasure and pain caused to different individuals. Bentham suggested a procedure called hedonistic calculus for this purpose.

Bentham's theory is criticised for two reasons. First, it is not always possible to measure in quantities the pleasure and pain caused by an action. Second, pleasure does not constitute human well-being. Even pigs are capable of pleasure and his theory is criticised as a 'pig philosophy' fit only for swine.

According to critics, one absurd consequence of Bentham's principle is that it would be better to live the life of a satisfied pig than that of a dissatisfied human being such as Socrates. For human beings, friendship and aesthetic enjoyment are as good as pleasure.

ii. The Principle of Utilitarianism:

John Stuart Mill (1806-1873) modified the principle of utility by recognising that pleasures differ in their quality which is an important as the quantity of pleasure. Mill concluded, “It is better to be a human being dissatisfied than a pig satisfied; better to be Socrates dissatisfied than a fool satisfied. And if the fools, or the pig, are of a different opinion, it is because they know only their side of the question.”

Thus, there are two forms of utilitarianism:

(a) Action utilitarianism under which an action is right if and only if it produces the greatest balance of pleasure over pain for everyone. For example, telling a lie or breaking a promise is right if its consequences are better than those of any alternative course of action. Thus, classical utilitarianism does not require observing rules such as “Tell the Truth.”

(b) Rule Utilitarianism under which an action is right if and only if it confirms to generally accepted rules and produces the greatest balance of pleasure over pain.

Act utilitarianism is simple and easily understood. But rule utilitarianism is morally more sound and does not require calculating the consequences of each action.

The principle of utilitarianism consists of the following elements:

(1) Consequentialism – The Tightness of any action depends solely on its consequences.

(2) Hedonism – Pleasure alone is good.

(3) Maximisation – A right action is one that creates greatest amount of net pleasure.

(4) Universalism – Everyone's consequences are alike.

Advantages of Teleological Theories:

Estes são os seguintes:

(i) Teleological theories are consistent with the ordinary moral reasoning. Utilitarianism why telling the truth, keeping promise, and other acts which provide some benefit are morally relevant.

(ii) Teleological theories provide an objective and precise method for moral decision-making. A decision maker can choose the right course of action by calculating and comparing the consequences of different alternatives.

(iii) Economists assume that people seek to maximise their utility or welfare. The economic theory is based on the ethical theory of utilitarianism.

Limitations of Teleological Theories:

Eles são os seguintes:

(i) Teleological theories do not consider the basic obligations. Parents have obligations to their children and they must provide for their children even when the money could be more beneficial for orphans.

(ii) It is not possible to measure and compare the goodness/badness of various actions.

(iii) Teleological theories disregard rights and justice. For example, the right of free speech entitles us to speak freely but restrictions on this right might lead to better consequences. Similarly, discrimination violates the basic principle of justice. But preferential rights are often given to women and minorities.

2. Deontological Theories :

The term 'deontological' is derived from the Greek word 'deon' which means duty. Duty or obligation is the fundamental concept in deontological theories.

According to deontological theories certain actions are right not due to some benefit to self or others but due to their basic nature or the rules underlying them. For example, bribery by its very nature is wrong irrespective of its consequences.

Similarly, the Golden Rule “Do unto others as you want them do unto you” appeals to human dignity and respect for others.

WD Ross, the 20th century Britisher philosopher has given the following moral rules:

(i) Duties of Fidelity — to keep promises, both explicit and implicit, and to tell the truth.

(ii) Duties of Reparation — to compensate people for injury that we have wrongfully inflicted on them.

(iii) Duties of Gratitude — to return favours that others do for us.

(iv) Duties of Justice — to ensure that goods are distributed according to people's merits.

(v) Duties of Beneficence — to do whatever we can to improve the condition of others.

(vi) Duties of Self-improvement — to improve our own condition with respect to virtue and intelligence.

(vii) Duties of Non-maleficence — to avoid injury to other.

Thus, deontological theories refute the argument that consequences determine what we ought to do. Actions are right or wrong not because of their consequences but because of our duty or obligation.

Deontological theories have the following merits:

(i) Deontological theories make sense in cases in which consequences are irrelevant. It appears more sensible to care for relations than for consequences. For example, it is the duty of a manufacturer to honour the warranty on a defective product even when the cost of doing so is more than the benefits.

(ii) Another merit of deontological theories is that they consider the role of motives in evaluating actions. For example, two people give equal amounts to charity. Here their benefit is the same. But the action of the person who denoted due to genuine concern for poor is better than that of the person who donated to impress others. Thus, the motive with which actions are done determine their Tightness.

Deontological theories suffer from the following weaknesses:

(i) Deontological theories fail to provide a precise criteria to understand our moral obligations and to resolve moral conflict.

(ii) Ross gave no order of priority among his rules and when these rules are in conflict there is no guide. For example, telling the truth or keeping a promise may cause harm to someone.


Business Ethics – Business Ethics and Profits

Frequently the impression of most people is that ethics and profits are mutually opposed to one another, and that if a company is ethical, it can forget about making profits. People also frequently seem to believe that a profitable company must necessarily be unethical. This is like saying that a company can make profits only through unethical means. Nothing can be more further from the truth.

There are examples galore, from the pages of history, where not only have ethical companies made profits, but more importantly, it is only ethical companies which discharged its social responsibilities, that have survived competition and turbulent changes through the years and have contributed to Social Welfare and have continued to flourished undiminished.

'Profit is a dirty word', said Jawaharlal Nehru, in the 1950's while referring to the public sector companies. Even private companies making profits were viewed with disdain by the public. Their dealings were suspect in the eyes of the upright moral citizens of that time. This was mainly because of the distorted view of business that society had during that time.

With the wide spread interest in business activities since then, with the introduction of business and management education all over the world, and with the rapid widening of the market place and the astronomical growth of consumerism worldwide, the value of profit has been given its deserved place.

Today, not only is profit not a dirty word, in fact, every company is expected to justify its existence in the marketplace, through the profit it generates. It has been felt that any company which cannot make profits even for its own operations has no right to exist in the marketplace and should be wiped out.

A sick and loss making company is a liability and a burden to society-it cannot discharge its responsibilities to the society, it cannot meet its welfare commitment to its employees, indeed it cannot even compensate its workforce for their efforts, it cannot generate revenue for its shareholders, it cannot meet consumer demands adequately and cannot do all those things that a healthy responsible organisation is required and expected to do. Hence, profit is today viewed as a measure of the success of the company and its justification for sustained existence, growth and diversification.

In fact, considered from all angles, it is unethical, not to make profit. It is unethical, for a company, to make losses. Because, a company which cannot make profits and makes losses, misutilises scarce national resources cannot pay back creditors, does not make wealth for its shareholders, make huge liabilities, upsets the economy, promotes inefficiency and most importantly, cannot, at any cost discharge its social responsibility, meet its welfare commitments and jeopardises the future of its employees.

Such a loss-making company becomes a nuisance and a burden to the economy and has no right to exists in the marketplace. Moreover, it has no business to force its employees into economic insecurity, which is highly unethical.

Thus, instead of profits being contradictory to ethics, business ethics dictates that the first responsibility of business is to remain profitable and generate revenue for the shareholders and the society. Rather, it is unethical, not to make profits.

Hence, the first and foremost ethical obligation of every business is to make profits for its shareholders, for its employees, for its creditors and most importantly, for itself, so that it can discharge its social responsibilities and welfare commitments. But, how much profits to make, the means and methods of making it, and at what cost-that is the ethical question.


Business Ethics – 10 Major Determinants of Business Ethics

The major determinants of business ethics may be listed thus:

Determinant # 1. Family, School and Religion:

The formation of ethics begins early in life. As a child one learns about what is good and bad from parents. Through their reinforcing actions, (rewarding good behaviours), parents inculcate high or low ethical standards among children. Schools and Religion also greatly influence the formation of ethical values (such as truthfulness, honesty, sincerity, tolerance, etc.) at an early age.

Determinant # 2 . Peers, Colleagues and Superiors:

In the company of good friends, the child realises the importance of high ethical standards in life. If he wishes to make friends with peers who steal, smoke and use drugs, he will probably accept those behaviours as ethical. Colleagues in an organisation, too, shape the value system of an individual. He adopts the attitudes, beliefs and values of the group to which he belongs. Likewise, most people yield to pressure from superiors in doing things that many consider unethical otherwise.

Determinant # 3 . Experiences in Life:

Experiences in life teach many lessons. These could be bitter or sweet, depending on the ability of a person to reach goals. If a person is not given a 'pat on the back' for good behaviour while others earn rewards for bad behaviour, the person will probably alter both, ethical standards and behavioural responses, in future.

Determinant # 4 . Values and Morals:

People who value material possessions in life may not have strong ethical standards regarding behaviours that lead to accumulation of personal wealth. On the other hand, people who place a premium on quality of life will probably have strong ethics while competing with others for various things in life.

Determinant # 5 . Threatening Situations:

An employee threatened with losing a permanent job may resort to unethical acts to save his job. To meet pre-determined targets, many Bank managers sanction loans to individuals with practically no creditworthiness. A housewife may practically beat a thief to death, when threatened with the prospect of losing her ornaments or child. Situations like these, force people to change their ethics and respond in an unexpected manner.

Determinant # 6 . Organisational Demands:

There is growing research evidence to show that managers at top, middle and first level have compromised their personal principles to meet an organisational demand. Corporate goals are paramount and exert considerable pressure on executives to change their ethical views.

Determinant # 7 . Legislation:

Laws are generally passed in response to social demands. Factors, such as low ethical standards, corruption in public life, absence of social responsibility, exploitation, sexual harassment, etc., often force people to demand legislative protection. A practice can be made illegal, if society views it as being unethical. For example, if contributions to political parties by companies are being viewed as excessive and unethical, the practice can be banned.

Determinant # 8 . Government Rules and Regulations:

Government regulation regarding product safety, working condition, statutory warnings (on cigarettes and other harmful products), etc., are all supported by laws. These offer guidelines to managers in determining what are the acceptable standards and practices.

Determinant # 9 . Industry and Company Ethical Codes of Behaviour:

Many times specific guidelines are provided to managers by the company's ethical codes of behaviour. One important question in such cases is whether individuals within the organisations are really governed by the code of ethics or provide only lip service to the guidelines.

Determinant # 10 . Social Pressures:

Social forces and pressures have considerable influence on ethics in business. Society, in the recent past, has demonstrated how a special status can be conferred on backward castes; boycotted products, and severe action to prevent the construction of nuclear power plants. Such actions by different groups in society may, in fact, force management to alter certain decisions by taking a broader view of the environment and the needs of society.


Business Ethics – Advantages of Managing Ethics in Workplaces

(i) Significant improvement to society- By applying business ethics, many social evils can be eliminated like child labour, harassment to employees etc.

(ii) Cultivate strong team work and productivity- Business ethics helps in building openness, integrity and a sense of oneness amongst all employees. Employees become motivated as they feel strong alignment between their values and those of organisation.

(iii) Support employee growth- It supports the employees in facing the entire situation whether good or bad.

(iv) Insurance policy – It ensures the employees that all the policies are legal and all the employees are treated equally in the organisation.

(v) Avoid penal action- Ethical problems if detected at earlier stage helps in avoiding penal action and lower fines for the organisation.

(vi) Helps in quality management, strategic planning and diversity management.


Business Ethics – Regulations: Legislative Measures, Goodwill of Business Unit, Social Status of Businessman, Trade Union, Business Association and Consumer Movement

Business ethics are observed by a businessman because of the consequences that would result due to their non-compliance.

Here, some of the regulations are presented briefly:

1. Legislative Measures:

Enforcing the legislative measures is one of the ways of making businessmen follow business ethics. The purpose of enforcing the acts is to protect the public interests including the business and the businessmen. The Company's Act, Consumer Protection Act, MRTP Act and the like are some of the legislative measures.

2. Goodwill of Business Unit:

Generally, businessmen have to work hard to earn goodwill by adopting business ethics. Thereafter, the same practice is followed to maintain the earned goodwill.

3. Social Status of Businessman:

Businessman thinks that he gets recognition from the public in a place where he does business. It is always ethical for a businessman to keep social status. Then, he wants to enjoy social status continuously and avoid unjust or immoral business activities.

4. Trade Union:

There are number of trade unions functioning in India. A trade union may be a registered or unregistered one. Here, the trade union has to suffer a break if business ethics is not properly followed. Trade union acts as a watchdog to ensure observation of business ethics.

5. Business Association:

Outside agency like the business association guides the business as how to observe business ethics, stating the reasons for doing so. A business unit may be isolated from the business association if the particular business unit fails to comply with ethics.

6. Consumer Movement:

Now-a-days, the consumer movement has developed so much to protect consumer interests. As a matter of fact, business ethics deals with morality in the business environment. Nevertheless, consumer movements take active part in the adoption of business ethics. For example, if a purchased product is not up to the standards as specified, the consumer movement claims damages or takes steps to replace the product to the consumer and insists the business unit to maintain the quality as specified by it.


Business Ethics – Guidelines to Determine Ethical Actions

Eu. The Golden Rule:

Act in a way you would expect others to act toward you.

ii. The Utilitarian Principle (Utilitarian Approach):

Act in a way that offers greatest benefit to the greatest number of people. Nobel Prize winning economist, Milton Friedman, argues that using resources in ways that do not clearly maximize shareholder interests amounts to spending the owners' money without their consent and is equivalent to stealing. The utilitarian approach, thus, puts focus on behaviours and their results, not on the motives for such actions.

iii. Kant's Categorical Imperative (Universal Approach):

Act in way that the action taken under the circumstances could be a universal law or rule of behaviour. If you follow this approach, you should choose a course of action that you believe can apply to all people under all situations and that you would want applied to yourself.

iv. The Professional Ethic:

Take actions that might be viewed as proper by a disinterested group of professional colleagues.

v. The TV Test:

Managers should indulge in soul-searching questions such as: “would I be comfortable explaining to a national TV audience why I preferred this action?”

vi. The Legal Test (Justice Approach):

Is the proposed action or decision legal? The justice approach involves evaluating decisions and behaviour with regard to how equitably they distribute benefits and costs among individuals and groups. Generally speaking, costs and benefits should be equitably distributed, rules should be impartially applied, and those damaged because of inequity or discrimination should be compensated.

vii. The Four-Way Test:

If the answer to the following questions is “yes”, then managers are said to be on track—is the decision truthful? Is it fair to all concerned? Will it build goodwill and better friendships? Will it be beneficial to all concerned?

viii. Natural Duty Test:

This principle requires that decisions and behaviour be based on universal principles associated with being a responsible member of society. Four universal duties are to help others who are in need; not to harm or injure another; not to cause unnecessary suffering; and to support and comply with just institutions.

ix. Moral Rights Test:

The moral rights approach holds that decisions should be consistent with fundamental rights and privileges, ie, life, freedom, health and privacy. Many laws nowadays require businesses to comply with society's view of appropriate standards for quality of life and safety.

Employees, customers, shareholders and the general public have the right not to be intentionally deceived on matters about which they should be informed. Likewise, citizens have a moral right to control access to personal information about themselves and its use by public and private agencies.

Values in Business :

Values define what is good or bad, right or wrong. They guide our behaviour wherever we go and are the primary sources of our actions. Right from childhood, we are guided by our parents to be honest and true to ourselves and to be accountable for our actions. When we grow up and enter organisations we continue to judge events, people and situations with preconceived notions of “what ought “and” what ought not” to be(Robbins) Values (such as freedom, honesty, self-respect, equality etc.) are perceptions about what is good or bad, right or wrong. They tend to be broad views of life and are influenced by parents, teachers, peer groups and associates.

Infact, peoples' values develop as a product of the learning and experience they face in the cultural setting in which they live. Value differences basically arise because learning and experiences differ from one person to another. As a result, one person may give more importance to money whereas another person may look at honesty and truthfulness as more important than money. Such differences are likely to be deep seated and somewhat difficult to change, many have their origins in early childhood and the way a person has been raised (Rokeach).

From a managerial standpoint, it is important to know that values are those concepts, principles, things, people or activities for which a person is prepared to work hard and even make sacrifices for. Compensation, recognition and status are common values in the workplace. Values, quite often, help managers to tie the knot between employee decisions and actions with overall corporate goals.

Values and their Impact on Human Behavior :

People are not born with values; rather they acquire and develop them early in life. Parents, teachers, relatives, friends and others influence an individual's values. Values such as stealing is “bad”. 'Honestly is the best policy'. 'Respect your elders & teachers. 'Be kind to people' are taught and reinforced in schools, religious institutions and social groups. Over the years these values become relatively stable and enduring. As we grow in years, we often seek environments that are compatible with the values we learned as children.

For example, values help find out what companies we are attracted to and how long we stay therein. They also influence how motivated we are at work; people who share same values as the organisation are committed to the organisation that those who do not. Whenever people make decisions or talk about what constitutes appropriate behaviour at work, we can easily see the impact of values or even conflicts between different values.

For example, consider the question of laying-off employees. Managers with dominant economic values would be less hesitant to lay them off quickly than would managers with high social values. Once a particular value is internalized, it becomes a standard for guiding action. It becomes instrumental in developing and maintaining attitudes towards relevant objects and situations for justifying one's own and others actions and attitudes, for morally defining self and others and for comparing self with others. When individuals enter an organisation with certain pre-set values, of what is right or wrong, they tend to look at the world through coloured glasses.

For example, you believe that an organisation should promote people on the basis of merit and not on seniority. However, the organisation does the opposite thing, you tend to feel disappointed and totally out of place. Your attitude and behaviour towards the organisation perhaps would be very optimistic if your values match with organization's promotion policies. Values, thus, overpower objectivity and rationality.


Business Ethics – Ethical Dilemma

An ethical dilemma is a situation where one is in conflict between moral imperatives. Ethical dilemma is also known as ethical paradox or moral dilemma. Ethical dilemma is a situation in which it cannot be determined whether the action is right or wrong. To follow one action would result in transgressing another.

Characteristics of Ethical Dilemma :

1. Choice between equally undesirable alternatives

2. Different courses of action possible

3. Involves value judgments about actions or consequences

4. Data will not help resolve issue

5. Different sources (psychology, theology) offer solutions

6. Unfavourable outcomes will result

7. Choices have far-reaching effects on persons, relationships and society

8. Resources which must be allocated are finite or limited

9. Can be resolved, not solved

10. There is no “right” or “wrong”.

Business Ethics Practiced by Indian Companies are:

1. Principle of 'sacrifice' – A person, who is able to sacrifice a part of his asset or effort, commands a superior place in the organisation.

2. Principle of 'harmony'- harmony helps in avoiding conflicts in the organization.

3. Principle of 'non-violence'- It protects an organisation from strikes and lockouts.

4. Principle of 'reward'- The one who performs well is encouraged in form of rewards.

5. Principle of 'justice' – The one who works hard is awarded and the one who fails is punished.

6. Principle of 'taxation'- The one who is taxed more is encouraged to stay fit for a longer period by proper appreciation. This principle applies to people who are hardworking and productive.

7. Principle of 'integrity' – Integrity emphasis unity which helps to reap the benefits of division of labour.

8. Principle of 'polygamy' – It emphasized on combining of two different cultures by absorption or takeover.


Business Ethics – Relationship between Business & Ethics

The relationship between business and Ethics has long been debated. If Classical economists like Adam Smith and Milton Friedman were of the opinion that the only objective of business was profit maximisation and business had no right to 'meddle' with ethics, the Church, in pre-medieval times, was the spokesman and judge for all spheres of the society, including business.

In medieval and pre-medieval period, the Church took upon itself to regulate the moral functioning of business, making moral declarations like-all businesses must remain closed on Sunday, the 'holy-day', when Jesus Christ was supposed to have taken a rest and it was morally 'correct' to stop working on Sundays.

These two are extreme views, known as the Unitarian View and the Separatist View. However, around the decade of 1950, Talcott Parsons, founded the Integration View which stated that neither was business an extension of morality and ethics nor can business keep itself absolutely aloof from the ethical practices of the society wherein it exists and operators. This view sought to integrate the two previous views presenting a more realistic picture.

The Unitarian View:

This view is of the opinion that business is only a subset or sub-structure of the moral structure of the society. According to this view, business and morality cannot be separated and business must play by the rules of morality and ethics of the community which guides the activities of the community.

This view was emphasised more by the Church in the European countries and the Church prescribed that business must exist only to do good for the society, and it had no other role to play apart from serving society and ushering in social welfare. This View stated that business must conduct its affairs purely through altruist motives and that profit was a dirty word.

The Separatist View:

Dramatically opposite to the Unitarian View, classical economists like Adam Smith and Milton Friedman asserted that the only goal of business should be profit maximisation; and that ethics and morality plays no part in business conduct.

In fact, Milton Friedman, the celebrated economists, who won the Noble Prize for Economics, in 1976, hold the view that business should go on with the business of producing goods and services efficiently, and leave the solution of social problems to government agencies and concerned individuals.

In short, managers should focus on what they know best—that is how to make profits. It was Friedman who forwarded the classical view that the only responsibility of business is to earn profits, arid he goes on to say, in his book, 'Capitalism & Freedom', thus-

“There is one and only one responsibility of business-to use its resources and engage in activities designed to increase its profit so long at it stays within the rules of the game, which is to say, engages in open and free competition, without deception or fraud. Few trends could so thoroughly undermine the very traditions of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible. This is fundamentally subversive doctrine.”

Adam Smith and Friedman were of the opinion that business should be left alone to play by the rules of the prevalent market system, and the introduction of ethics would make an imbalance of the market dynamics. The Separatist View is of the opinion that business too has its own set of principles like 'reduce production costs, ' 'optimise labour' and so on, and these principles are all related to the marketplace and have nothing to do with moral principles.

Playing the business game by the market rules will ensure that the 'individual hand of the market' would generate social welfare to community.

Theodore Levitt, the well-known psychologist, believed that if ethics and morality were allowed to enter the realms of business, then there is a danger of business values ultimately dominating over social values. He expressed thus, in his famous article, 'The Danger of Social Responsibility', –

“The danger is that all these things (social aspects of business functioning) will turn the corporation into twentieth-century equivalent of the medieval Church. The Corporation would eventually invest itself will all-embracing duties, obligations, and filially powers-ministering the whole man and moulding him and society in the image of the corporation's narrow ambitions and its essentially unsocial needs”

Many intellectuals expressed the fear that any replacement of altruism for self-interest will, therefore, be fatal to the efficiency of the system. Managers should manage only in the interests of the shareholders and shareholders should be put in the position where they decide how their wealth and resources will be used. They believe that business should not have any responsibility beyond obeying certain legal codes in achieving its economic and business goals.

The Integration View:

This View was proposed by Talcott Parsons, wherein he sought to integrate ethical behaviour and business in a new area called Business Ethics. This View states that business is an economic entity and it has the right and the need to make profits, but, it must also discharge its obligations to the society where it exists and operates.

Profits is certainly not a dirty word, but, neither is morality and ethics in business. This View states that society consists of a number of subsystems, and business and morality are just two of these subsystems. Since all subsystems within the society are interlinked and interdependent, so also are business and morality interlinked.

Business and Ethics overlap and hence many business decisions are guided by moral considerations. In fact, business itself is considered to constitute of ethics, as it does so much good to so many people and specially to the society it serves. Production of goods and services and making them available to consumers who need them and benefit from them, itself, constitute a noble deed towards social welfare. Thus, business constitutes of ethics in itself, even while it pursues profits.

A sick and bankrupt organisation is a social liability and can hardly contribute in the area of social responsibility. Hence the first responsibility of a businessman is to generate surplus for his business. At the same time however, he must do so ethically, carry on his business on morally sound principles and go out of his way to assume social responsibilities beyond the legal minimum.


Business Ethics – Rationale of Business Ethics: Survival of Business, Need of a Stable Society, Growing Clout of Business, Effective Decision-Making and a Few Others

Rationale of corporate ethics are as follows:

1. Survival of Business:

Any individual business will collapse if all of its managers, employees, and customers come to think that it is morally permissible to steal from, lie to, or break their agreements with the business.

2. Need of a Stable Society:

All businesses require a stable society in which they are supposed to carry on their business dealings. Stability of any society requires that its members adhere to some minimal standards of ethics. It will create a conducive environment for the development of economic and social institutions.

3. Consistent with Business Objectives:

Ethics should be brought into business by showing that ethical considerations are consistent with business pursuits, in particular with the pursuit of profit. That ethics is consistent with the pursuit of profit and it can be shown by simply finding examples of companies where a history of good ethics has existed side by side with a history of profitable operations.

4. Growing Clout of Business:

The power and influence of business in society is greater than ever before. Evidence suggests that many members of the public are uneasy with such developments. Ethics help us to understand why this is happening, what will be its implications and how we will address this situation.

5. Safeguarding Public from Business Malpractices:

Business malpractices have the potential to inflict enormous harm on individuals, communities, and the environment. Ethics seeks, to improve the human condition by focusing on the causes and consequences of these malpractices being done by the business organisations.

6. Effective Decision-Making:

Ethics help to improve the business ethical decision-making with the appropriate knowledge and tools that allow them to correctly identify, diagnose, analyse, and provide solutions to the ethical problem and dilemmas they are confronted with day to day decision making having implications for the stakeholders.

7. Business Effectiveness:

Ethics develop the ability to assess the benefits and problems associated with different ways of managing ethics in organizations. It also improves the knowledge that transcends the traditional framework of business studies which have focused on the relevance of ethics in business.


Business Ethics – Three Dimensions: Systematic Issue, Business Issues and Individual Issues

Business ethics include three dimensions:

Esses são:

1. Systemic issues,

2. Business issues, and

3. Individual issues environment.

1. Systemic Issues:

These are ethical questions raised about the economic, political, legal, and other social systems within which corporate enterprises are expected to operate. These are set by the society, government and other agencies involved in ethical movements. These include questions about the morality of economic system, laws, regulations, industrial structures, and social practices within which Indian Business Enterprises are required to achieve their vision and mission.

2. Business Issues:

These are ethical questions raised about a particular business. These questions include about the morality of the activities, policies, practices, or organizational structure of an individual business taken as a whole. Individual behaviour of the business set the agenda for other companies working in the industry concerned and managers and employees are expected to comply with these standards. Generally, individual companies try to formulate their own ethical standards for their behaviour.

3. Individual Issues:

These are ethical questions raised about a particular individual or particular issue within a business. These include questions about the morality of the decisions, actions, or character of an individual manager. For example, Deepak Parekh (HDFC), Narayan Murti (Infosys), Ratan Tata (Tata Group of Companies), HV Kamath (ICICI Bank) have tried to integrate their personal values in their organizational values.


Business Ethics – Ethics and the Indian Corporate Culture

Ethics in India is based on a number of scriptures, thoughts, ideas, and Vedas. In India, the organizational culture is divided into two broad divisions, namely professional culture and community culture. The professional culture helps the, employees to maintain a certain acceptable level of discipline in the enterprise.

The community culture of an enterprise emerges from the varied cultural backgrounds to which its employees belong. One important aspect of organizational community culture is that the beliefs and views of any particular culture or religion should not alienate any individual belonging to another culture. The Indian corporate culture has borrowed many ethical values that have been taught by Indian scriptures.

Some of these ethical values are as follows:

Eu. Respect – Respect means that every individual should have respect for the beliefs and values of other individuals. In a multiethnic country as India, the people should respect each other's views, beliefs, and ideas to maintain good mutual relationships.

ii. Trust – Trust means that the employees of an enterprise should cultivate mutual trust and faith in each other. Doubts may create misunderstandings, problems, and chaos among individuals, and thus need to be avoided. Such doubts can be solved by placing trust in each other to facilitate a better working of an enterprise.

iii. Spirituality – It emphasizes the positive inner transformation of an individual's life. An individual performs efficiently and feels satisfied at workplace when he/she is in peaceful and contented frame of mind. Now-a-days, the enterprises are realizing the importance of spirituality, contemplation, meditation, and yoga practices, which are the essence of the Indian culture. Such practices help people to lead a more sensible life, increase work efficiency, and decrease stress levels.

iv. Tolerance – It helps to maintain cordial relationships among the employees of an enterprise. Tolerance refers to increase in the level of adaptability of an employee to various organizational changes. The individuals need to be permissible and receptive to the challenges of their work. They should accept people as they are without judging them.

v. Flexibility – Flexibility refers to the degree at which an individual can adapt with the surroundings in the organizational environment. It takes into account the receptive and adaptive nature of an individual towards fellow employees and assigned tasks.

vi. Sincerity – Sincerity refers to truthfulness and transparency in the nature and behavior of employees in an enterprise. It also necessitates an honest code of conduct in an enterprise.

vii. Patience – Patience refers to the degree at which the individuals can tolerate any delays in the fulfillment of their wishes or goals. Individuals with high degree of patience are not affected by delays in getting rewards for their accomplished tasks.

viii. Perseverance – Perseverance refers to the quality of an individual to not to give up soon and keep on trying for achieving goals. Individuals with perseverance can keep their spirits high to achieve the desired goals.


Business Ethics – Causes and Issues of Unethical Behavior

Unethical behavior refers to the behavior of people that do not confirm with the acceptable standards of social and professional behavior. Such behavior may include making long-distance calls from the office, duplicating the enterprise's system software to use at home, projecting a false report on the number of worked hours, or falsifying business records.

There can be numerous factors that cause unethical behavior in the employees of an enterprise.

Such factors are as follows:

Eu. Primary Factors:

Primary factors refer to the factors that comprise external stimuli and compel people to move in a particular direction without thinking about ethical parameters. For example, obedience to authority is a primary concept that affects the ethical mindset of an individual.

Children tend -to obey their parents right from the time when they do not know anything about ethics. This makes their every act conditioned to their parents' teachings and orders. This mindset of children continues right from their school time. As a result, when an authoritative person orders the individual to do an unethical act, he/she tends to obey him/her as well. This happens due to the conditioning of their mind to obey orders right from their childhood.

ii. Personality Factors:

Personality factors refer to the prominent characteristics of an individual. If these characteristics of an individual are negative then they are reflected in his/her behavior. For example, if a person has a prominent characteristic of being late to the office regularly then indiscipline is he/she personality factor.

iii. Defensive Factors:

Defensive Factors refers to the attempts of an individual to find easy ways to escape from an act of violation of a law or a duty. Generally, the defensive factors are the maneuvers caused by two basic internal stimuli, which are guilt and shame. These two stimuli force individuals to lie, or draw a false consensus of others to cover their mistakes.

The above mentioned factors can be dealt with the help of following techniques:

uma. Appointing a psychologist or consultant to help the employees deal with the strong emotions that force them to indulge in an unethical behavior

b. Ensuring that the employees know about common psychological factors of unethical behavior and the ways to deal with them

c. Recognizing the factors that cause unethical behavior; thus, finding the ways to tackle the same.


Business Ethics – Challenges in Compliance, Finance, Human Resource, Marketing and Production

(i) Ethics in Compliance:

Compliance means conforming to relevant laws, regulations, policies, standards, procedures, or contractual obligations. These may be external or internal obligations. Organizations that follow high Ethics comply with the law and ensure an ethical climate inside throughout the organization.

(ii) Ethics in Finance:

Financial statement fraud can surface in many different forms, although once deceptive accounting practices are initiated, various systems of manipulation will be utilized to maintain the appearance of sustainability.

Common approaches to artificially improving the appearance of the financials include:

(a) Overstating revenues by recording future expected sales

(b) Capitalizing operating expenses

(c) Inflating assets' net worth

(d) Hiding obligations off of the company's balance sheet and incorrect disclosure.

(e) Insider trading, executive compensation

(iii) Ethics in Human Resource:

HR includes numerous ethical pitfalls that can damage a company's reputation or financial sustainability if not handled properly. Understanding the importance of ethics in human resources is crucial for any business owner, whether in a local startup or a multinational powerhouse.

The ethics of human resource management (HRM) covers those ethical issues arising around the employer-employee relationship, such as the rights and duties owed between employer and employee.

The issues of Ethics faced by HRM include:

(a) Discrimination issues, affirmative action, sexual harassment.

(b) Issues surrounding the representation of employees and the democratization of the workplace.

(c) Issues affecting the privacy of the employee, workplace surveillance, drug testing.

(d) Issues affecting the privacy of the employer- whistle-blowing.

(e) Issues relating to the fairness of the employment contract and the balance of power between employer and employee: slavery, indentured servitude, employment law.

(f) Occupational safety and health.

(iv) Ethics in Marketing:

Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.

The issues of Ethics faced through marketing are:

(a) Price Discrimination, Price war, Price skimming

(b) Misleading advertisement

(c) Black market, Grey market

(v) Ethics in Production:

Ethics in production is a subset of business Ethics that is meant to ensure that the production function or activities are not damaging to the consumer or the society.

(a) Ethical problems arising out of use of new technologies that are deleterious to health, safety and environment, genetically modified food, radiations from mobile phones, medical equipment etc.

(b) Defective services and products.

(c) Products those are innately deleterious like alcohol, tobacco, fast motor vehicles, warfare, chemical manufacturing etc.

(d) Animal testing.

(e) Pollution, global warming, increase in water toxicity and diminishing natural resources.


Business Ethics – Business Ethics in India

In India, most of the businessmen believe in good business ethics. They realise their responsibilities towards various segments of the society. Nevertheless, they find it difficult to translate business ethics into practice. The reason is that the business environment changes every second. Businessmen are ready to cope with changes at any cost by giving up business ethics.

Large numbers of businessmen wish to earn large profits, through short-cut methods. Books of accounts are prepared by recording focus expenses in order to show less profit to elude tax liability. Next, goods are invoiced at cheaper rate to lower taxes. Reduction in selling price is announced only after increasing the actual selling price. Price discrimination is followed to different types of people, say, known and unknown, educated and uneducated, rich and poor, gents and ladies and the like.

Businessmen are not ready to pay even minimum wages. The health condition of employees is not considered by the businessmen and they are reluctant to pay medical expenses if needed. In some cases, the medical expenses borne by businessmen are deducted from the wages.

Businessmen get acknowledgement from the employees for a higher amount than the amount actually paid. This type of practice cannot be controlled by anybody without the whole hearted co-operation of businessmen. The observation of business ethics is only in the hands of businessmen.


Business Ethics – Benefits t o Customers, Employees, Industry, Business, Society and Government

A business may be conducted according to certain self-recognised business ethics. If so, certainly, the following benefits are available to the concerned groups.

The benefits of business ethics are listed group wise:

1. Customers :

Eu. Receive quality goods.

ii. Pay reasonable price.

iii. No difficulty in obtaining goods.

iv. No price discrimination.

v. No price fluctuation.

2. Employees:

Eu. Fair wages.

ii. Better working conditions and working environment.

iii. Recognising human feelings.

iv. Reward for efficiency.

v. Job security.

vi. Participation in management.

vii. Proper personnel policy.

3. Industry :

Eu. Healthy competition.

ii. Better co-operation and co-ordination.

iii. Steady growth.

4. Business :

Eu. Adequate Profit.

ii. Fast growth.

iii. Fast diversification of business.

iv. Less labour turnover.

5. Society :

Eu. Better utilisation of resources.

ii. Improving standard of living.

iii. No pollution problem.

6. Government :

Eu. Prompt collection of taxes.

ii. Development of nation.

iii. Easy implementation of legislation.


Business Ethics – Arguments against Business Ethics

Though it is done very, very infrequently now-a-days, some authors and philosophers, nonetheless, do tend to put forward the argument that businesses being economic entitles, should have nothing to do with morals (ie, with what people do) or ethics (what people ought to do).

They argue that businesses should assume no other responsibilities, other than to produce goods and services efficiently and to maximise profits for the shareholders. They believe that business being economic entities, only economic values should be their guiding principles and the sole determinant of their performances.

Milton Friedman, the celebrated Noble Prize winning economist, in his book, 'Capitalism and Freedom', put forward his classical view that the only; responsibility of business is to earn profits. He believed that-

“There is one and only one responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition, without deception or fraud. Few trends could so thoroughly undermine the very traditions of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible. The fundamentally subversive doctrine.”

Friedman feared that if business ethics formed a part of corporate culture, ultimately the customer would be called upon to bear the cost of the ethical practices of the organisation, as Friedman erroneously assumed that such ethical practices would increase the prices of the organisation's products. He further believed the social responsibility of business is contrary to basic business functions.

Moreover, he says that the business manager does not know, and does not need to know, where public interest lies. That is the concern of politicians, bureaucrats, concerned organisations and individuals and the state.

Today, business have found out that they are, in fact, responsible for social welfare, since they live and operate within a social structure. Without earning social sanction, no business can hope to survive, leave alone develop and flourish. And ethical practices do not necessarily increase the cost of production, in fact they tend to reduce costs. But, even if they do increase costs, short term sacrifices must be made for long term good.

Another personality, the famous psychologist, Theodore Levitt, expressed fear that if business started being concerned about ethics, then business values would come to dominate social values.

These views were put forward in the 1950s and the 1960s. Since then, there has been a radical change of views and the fears expressed by philosophers and psychologists about business ethics have largely remained unfounded.

People at that time feared that any altruism or ethical conduct or embracing of any moral philosophies by the organisation would lead it to sacrifice its efficiency and productivity; and the competitiveness of the marketplace would fade away. Nothing could be more far from the truth.

Having realised this, more and more business organisations are today accepting business ethics as part and parcel of their daily business conduct. And to their astonishment and delight, they have found that being ethical and moral have given them an unique edge and advantage in the marketplace.

Moreover, their employees, executives and managers have felt proud to belong to such organisations. For, goodwill, loyalty genuine pride, and above all, mental peace, cannot be calculated accurately in terms of money.


 

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