IPCC Paper 2: Business Laws, Ethics &

Communications Chapter -7 CA. Dharmendra Madaan

1 • Ethics

2 • Business Ethics

3 • Distinction between Ethics & Morality

4 • Social Sins by Mahatma Gandhi

5 • Ethical Dilemma

6 • Benefits of Business Ethics

An Inro.

Doing the right thing

Way of being a good

human being

Vision of one’s own self in all beings

An obligation to consider not only our own personal well-being, but also that of others and of human society as a whole.

To become more and more selfless.

Ethikos - Character

The essence of values and habits of a person or group.

It covers the analysis and employment of concepts such as right and wrong, good and evil, and acting with responsibility.

Ethics relates to what is good or bad, and having to do with moral duty and obligation.

Principles of conduct governing an individual or a group.

An intro.,

Application of everyday moral or ethical norms to the business

Acting with an awareness of how entity’s products and services, and the actions of its employees, can affect its stakeholders and society as a whole

Developing codes of conduct for doing business in an ethical manner

Formalised rules and standards

that describe what is expected from employees.

Most Widespread Means by which companies communicate their ethical standards to the employees or professionals.

Ethics

The root word for ETHICS is the Greek ETHIKOS meaning CHARACTER.

Character is a personal attribute.

People have character.

Ethics are accepted because they follow from personally accepted principles.

Ethics has a much wider scope.

Morality

MORAL is Latin "MOS" meaning CUSTOM.

Custom is defined by a group over time.

Societies have custom.

Morals are accepted from an authority (cultural, religious, etc.)

Morals work on a smaller scale than ethics,

Worship without sacrifice

Science without humanity

Pleasure without Conscience

Knowledge without Character

Commerce without Morality

Wealth without work

Politics without Principles

An Intro.

An ethical dilemma is a situation where the decision maker has to make a choice from various alternatives in which more than one option seem right. Ethical dilemma faced by managers are often highly complex with no clear

guidelines.

An ethical issue is an identifiable problem,

situation, or opportunity that requires a person to choose from among several actions that may be evaluated as

ethical or unethical.

1 • Define the problem clearly.

2 • How would you define the problem if you stood

on the other side of the fence?

3 • How did the situation arise?

4 • To whom are you loyal as a person and as a

member of the organisation?

5 • What is your intention in making this decision?

6 • How does this intention compare with the

probable results?

7 • Whom could your decision or action injure?

8 • Can you discuss the problem with the affected

parties before you make your decision?

9 • Are you confident that your position will be as valid over a long period?

10 • Could you disclose without any doubt your decision or action to your

boss, your CEO, the Board of Directors, your family, society as a whole?

11 • What is the symbolic potential of your action if understood?

Misunderstood?

12 • Under what conditions would you allow exceptions to your stand?

An Intro.

Strong Teamwork

High Motivation of employees

Easier Labour Recruitment and retention

Improved Society

No exploitation of children and workers

Total Quality Management

Enhanced Employee Growth

Easier Change Management

No Government Intervention

Greater Productivity

Customer loyalty

Increase in sales

Increased profitability

Market Expansion

Stronger public image

Better Corporate Reputation & brand image

Reduced employees turnover

Reduction in cost

Easy availability of finance

Easier acceptance of new products and services

CA. Dharmendra Madaan