IMRAN OMER IMRAN OMER PhD Finance (In Progress - SZABIST) MS (Finance) – Gold Medalist & Chancellor Cap of Honor Award MA (Economics) MBA (Finance) – Gold Medalist

Lecture 1 b ethics

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  • 1. IMRAN OMERIMRAN OMER PhD Finance (In Progress - SZABIST) MS (Finance) Gold Medalist & Chancellor Cap of Honor Award MA (Economics) MBA (Finance) Gold Medalist
  • 2. What are Ethics???
  • 3. Definition of Ethics Ethics may be defined as the set of moral principles that distinguish what is right from what is wrong. Ethics is: the study of morality
  • 4. Ethics has a two fold objectives: it evaluates human practices by calling upon moral standards; also it may give advice on how to act morally in a given situation. Sometimes ethics is used synonymously with morality. An action, which is morally right, is also called an ethical one. Codes of morality are called ethical codes. Business ethics can also be defined as business morality.
  • 5. Ethics: What Does It Really Mean? Definitions Ethics involves a discipline that examines good or bad practices within the context of a moral duty. Moral conduct is behavior that is right or wrong or morality can be defined as the standards that an individual or group has about what is right and wrong.
  • 6. Two Key Branches of Ethics Descriptive ethics involves describing, characterizing and studying morality. What is An investigation that attempts to describe or explain the world without reaching any conclusion about whether the world is as it should be. Normative ethics involves supplying and justifying moral systems. What should be An investigation that attempts to reach to conclusions about what things are good or bad or about what actions are right or wrong.
  • 7. Religion and Ethics Muslims are required to learn Islamic Knowledge. It is divided into two branches: 1. Religious knowledge and 2. Scientific knowledge. The scientific knowledge is called Wisdom (Hikmat).
  • 8. Our Prophet sall-Allhu alaihi wa sallam said, Wisdom is the lost property of a Muslim. He should pick it up wherever he may find it.
  • 9. Religious Knowledge Religious knowledge is made up of twenty sub-branches, eight of which contain teachings of a higher level and the remaining twelve consist of teachings of a subsidiary nature. One of the teachings of a higher level deals with ethics.
  • 10. A Muslim who has good morals and is advanced in the scientific knowledge of his time is called a civil or a progressive Muslim. Alternately, a person who is advanced in scientific knowledge and has established basic industries, and yet who has poor morals is called a tyrant, a bandit(thief, robber), or a dictator. Scientific Knowledge
  • 11. Civilization Civilization means building cities and serving human beings. This can be accomplished through scientific knowledge, arts, and beautiful morals. In short, when the scientific knowledge and arts are accompanied with beautiful morals, it is called civilization.
  • 12. A civilized person uses scientific knowledge and arts for serving humanity. Alternatively, tyrant use them for torturing. We can see that a true Muslim is a progressive person. Unbelievers are retrogressive, and miserable/unhappy sad/depressed people. Peoples living in peace and comfort is only possible through ethics of Islam.
  • 13. Business Ethics Business Ethics is the branch of ethics that examines ethical rules and principles within a commercial context; the various moral or ethical problems that can arise in a business setting; and any special duties or obligations that apply to persons engaged in commerce.
  • 14. Generally speaking, business ethics is concerned with the study of what is good and bad, right and wrong, and just and unjust in business.
  • 15. Significance of Business Ethics Significance and importance of business ethics can be enhanced by comparing it with the foundation of a building. It plays the same vital role just like the foundation & pillars play in constructing & designing a building skeleton. As no one can imagine a building without foundation and pillars, in the same way no business without ethics along with a touch of honesty and integrity.
  • 16. Every professional who conducts a business always needs a guideline, comprises on rules & principles. These ethics are designed differently keeping in mind the core values and standards of the respective organization.
  • 17. Every member or employee is bound to follow the designed code of ethics with sincerity, honesty, and unity so that the organization can achieve the required goals /profit in business.
  • 18. Webster Collegiate Dictionary defines ethics in business or business ethics as it is often called, is the application of the discipline, principles, and theories of ethics to the organizational context.
  • 19. It applies to all aspects of business conduct and is relevant to the conduct of individual and entire organizations. So, business ethics is the behavior that a business adheres to in its daily dealing with the world. They apply not only to how the business interacts with the world at large, but also to their one to one dealing with a single customer.
  • 20. Discussion of Cases of Business Ethics 1. B.F Good Rich Case (Breaks Manufacturer). 2. American energy company accounting case (Enron). 3. Ivermectin Medicine River Blindness disease.