BUSINESS ETHICS
Word meaning of ‘Ethics’ is character
Ethics is a set of standards or code or value system, worked out from human reason & experience by which free human actions are determined as ultimately right or wrong, good or evil. Business ethics means the application of ethics in business
Characteristics of business ethics
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Differ with persons: ethical questions do not have a unique solution but a multitude of alternatives
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Ethical decisions are not limited to themselves, but affects a wide range of other situations as well.
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Ethical decisions involves a trade off between cost incurred and benefits received.
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Consequences are not clear
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Every person is individually responsible for the ethical or unethical decision and action that he or she takes
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Ethical actions are voluntary human actions
Why is ethics important in business?
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Ethics corresponds to basic human needs
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Values create credibility with the public
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Values give mgmt credibility with employees
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Values help better decision making
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Ethics and profit
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Law cannot protect society, ethics can.
Morality and ethics:
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Morality is the std an individual or community keeps about what is right and wrong or good and evil.
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Moral norms deals with topics that either seriously harm or benefit human beings.
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Moral standards are not dependent on or changed by the decision of authoritative bodies.
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Moral demands enjoys a self-driven force. Expressed through the medium of special emotions.
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Ethics helps one to address questions such as what do moral principles mean in a given situation.
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Ethics offers certain moral standards to judge a particular human behavior or situation.
Law and ethics:
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Law is universally accepted, published document
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Law says, what action should be taken against a person who violates the provisions of legal system whereas the consequences of unethical action is not clear
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Some laws have nothing to do with morality while some may even violate our moral standards.
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