BUSINESS ETHICS
ETHICS
The word ethics is derived from the Greek word
“ethos” which refers to character, guiding beliefs,
standards or ideals that encompass a group,
community or people.
According to Webster, “Ethics is the discipline dealing
with what is good and bad and with moral duty and
obligations”.
According to Josephson Institute, “Ethics is defined
as standards of conduct that indicates how one
should behave based on moral duties and virtues”.
Objectives of Ethics:
• To rationalize morality.(to explain or justify)
• To provide a set of values and rules to guide the
choices and actions of individual human being
, within a larger community.
• To study human behaviour and make evaluative
assessments about them as moral or immoral.
• To establish more standards and norms…
Importance of Ethics:
• Regulating Human Behaviour:it serve as a
regulating force for the conduct of mankind.
these stop people from taking hasty and
irrational decisions.
• Benefits in Long-Term: decisions based on ethics
are balanced and well-considered.
• Corresponds to Basic Human Needs: it
corresponds to basic human needs. Most
people want to be ethical not only in their
private lives but also in their business affairs.
• Better Decision-Making: Ethics helps in better
decision making .Ethical decision made by the
company will always be in the interest of the
, shareholder, stakeholders ,public and their
employee.
• Inhibits Knowledge: First and foremost, norms
helps in gaining knowledge, analyzing the truth,
and avoiding any chances of errors while
examining any given circumstances or
situation.
Relationship between Business and
Ethics;
People are under the notion that business and ethics
are incompatible, it is not easy to establish a
relationship. classical thinker like Adam Smith were
of the opinion that the objective of any business was
to generate profits only and business had no
relationship with ethics. while other thinkers had
different opinion about this.
Later economist like Milton Friedman and Talcott
expressed different views about the relationship
, between ethics and business. The result was;
• Unitarian view of Ethics ; according to this view ,
business is a part moral structure and moral
ethics. if business want to exist, survive and
flourish in the long run, morality and ethics can
not be seprated from the operation of business.
Moral Structure
Business
Moral Ethics
Fig; unitarian view of ethics
• Separatist view of Ethics : classical economist like
Adam Smith and Milton Friedman proposed the
separatist view. They were of the opinion that
businessess in order to flourish should
concentarte on its goal—profit
maximization .Morality and ethics , they argued
has no role in business.Milton was of the opinion
ETHICS
The word ethics is derived from the Greek word
“ethos” which refers to character, guiding beliefs,
standards or ideals that encompass a group,
community or people.
According to Webster, “Ethics is the discipline dealing
with what is good and bad and with moral duty and
obligations”.
According to Josephson Institute, “Ethics is defined
as standards of conduct that indicates how one
should behave based on moral duties and virtues”.
Objectives of Ethics:
• To rationalize morality.(to explain or justify)
• To provide a set of values and rules to guide the
choices and actions of individual human being
, within a larger community.
• To study human behaviour and make evaluative
assessments about them as moral or immoral.
• To establish more standards and norms…
Importance of Ethics:
• Regulating Human Behaviour:it serve as a
regulating force for the conduct of mankind.
these stop people from taking hasty and
irrational decisions.
• Benefits in Long-Term: decisions based on ethics
are balanced and well-considered.
• Corresponds to Basic Human Needs: it
corresponds to basic human needs. Most
people want to be ethical not only in their
private lives but also in their business affairs.
• Better Decision-Making: Ethics helps in better
decision making .Ethical decision made by the
company will always be in the interest of the
, shareholder, stakeholders ,public and their
employee.
• Inhibits Knowledge: First and foremost, norms
helps in gaining knowledge, analyzing the truth,
and avoiding any chances of errors while
examining any given circumstances or
situation.
Relationship between Business and
Ethics;
People are under the notion that business and ethics
are incompatible, it is not easy to establish a
relationship. classical thinker like Adam Smith were
of the opinion that the objective of any business was
to generate profits only and business had no
relationship with ethics. while other thinkers had
different opinion about this.
Later economist like Milton Friedman and Talcott
expressed different views about the relationship
, between ethics and business. The result was;
• Unitarian view of Ethics ; according to this view ,
business is a part moral structure and moral
ethics. if business want to exist, survive and
flourish in the long run, morality and ethics can
not be seprated from the operation of business.
Moral Structure
Business
Moral Ethics
Fig; unitarian view of ethics
• Separatist view of Ethics : classical economist like
Adam Smith and Milton Friedman proposed the
separatist view. They were of the opinion that
businessess in order to flourish should
concentarte on its goal—profit
maximization .Morality and ethics , they argued
has no role in business.Milton was of the opinion
