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Business Ethics & Corporate

Governance

Prof(Dr) U.K.Dash

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Ethics and Business Ethics: Meaning

& Definition.

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Some of the Ethical Problems

Personal Vs Professional

Personal Vs Society

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Meaning of Ethics

Reflection of a persons character expressed interms of his conduct.

Character of a man Decided by his conduct.

Conduct leads to a series of Actions Actions taken together considered as Good/Bad,

Right/Wrong, Moral/Immoral known as moraljudgment.

Moral judgment requires moral standards.

Moral standard again can judge the conduct of aperson.

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Definition of ethics

It is the study of morals and moral choices. It

focuses on standards, rules and codes of conduct

that govern the behavior of individuals andgroups.

Ethics refers to the code of conduct that guides an

individual while dealing in a situation. It relates to

the social rules that influence people to be honest

in dealing with other people.

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Nature of Ethics

Deals with Human Beings.

Is a normative Science

Deals with Human Conduct

A set of systematic knowledge about moral

behaviour.

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Sources of Ethics Genetic Inheritance: The quality of goodness is a product of genetic traits

strengthened over time by evolutionary process.

Religion: Business people believe that their religion provide them with ethicalprinciples/standards which can be applied in business.

For Christian: Bible

For Muslim: Koran

For Jew: Torah

For Hindu: Bhagavat Gita Philosophical System: (Philosophy towards life)

Cultural Experience: Rules , Customs and Standards transmitted fromgeneration to generation as the source of appropriate conduct and humanvalues.

Legal System: Laws represents a rough approximation of societys ethical

standards. Code of Conduct:

1 Company codes: Express the broad expectation from the company.

2. Company operating policies: Expresses policies for gifts, customercomplaints, hiring etc as a guide for company operation.

3. Code of ethics: Principles for utilizing ethical codes.

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Definition of business ethics

In simplest terms business ethics are moralprinciples that define right and wrong behavior

in the world of business. What constitute right

and wrong behavior in business is determined by

public interest groups and business organizations

as well as individuals personal morals and

values.

According to Keith Davis and associates,business ethics are the application of general

ethical rules to business behavior.

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Introduction to Business Ethics Generally, business ethics is the written and

unwritten codes of principles and values thatgovern decisions and actions of a business.

Business ethics is concerned with moral issuesin business.

How can you test the moral rights and wrongs?

1. Test of agreement with evidence: Evidence mustsupport or deny an explanation.

2. Test of internal coherence: Are all parts of theexplanation in agreement with each other or

itself contradictory?3. Test of compatibility: Does it fit in to the

existing system or somehow contradict our assumptions?

Ex: Workers participation in management.