3. Business Ethics
The moral principles, values, and standards that guide the behavior and
decisions of individuals and organizations in the business world. It
involves determining what is right or wrong in a business context and
ensures that businesses operate fairly, responsibly, and with integrity
toward all stakeholders, including employees, customers, investors, and
society.
4. Example
• A company avoiding misleading advertisements to ensure consumers
are not deceived.
• A business reducing pollution to minimize environmental harm.
• Ensuring fair wages and safe working conditions for employees.
5. Importance
Builds Trust and Reputation
Ensures Legal Compliance
Enhances Employee Morale and Retention
Attracts Investors
Improves Customer Loyalty
Contributes to Society
6. Ethical Theories and Approaches-
Ethical Theories and Approaches refers to frameworks that guide
individuals and organizations in determining what is morally right or
wrong.
1. Consequentialism (Utilitarianism)
2. Deontology (Duty-Based Ethics)
3. Virtue Ethics
4. Relativism
7. Kohlberg’s six stages of moral development
(CMD)
• Theory proposed by psychologist Lawrence Kohlberg to explain how
individuals progress in their ability to make ethical decisions. The
theory is divided into three levels, each containing two stages.
9. Summary Table:
Level Stage Focus
Pre-Conventional Stage 1: Obedience & Punishment Avoid punishment
Stage 2: Individualism & Exchange Personal rewards
Conventional Stage 3: Good Relationships Approval from others
Stage 4: Maintaining Order Following laws/rules
Post-Conventional Stage 5: Social Contract Human rights & greater good
Stage 6: Universal Principles Justice, equality, dignity
10. Corporate Social Responsibility (CSR)
• Refers to a business’s commitment to operate ethically and contribute
to economic development while improving the quality of life for
employees, the local community, society, and the environment.
• CSR focuses on the idea that businesses have a responsibility beyond
profit-making. They are expected to act in a way that benefits society
and minimizes harm.
11. Types of CSR Activities
• Philanthropic Initiatives
• Environmental Sustainability Programs
• Ethical Labor Practices
• Community Engagement
13. Examples of CSR in Action
Google: Operates
data centers
using renewable
energy and
invests in
environmental
sustainability.
Coca-Cola: Works
on water
conservation
projects to
replenish water
used in its
production.
TOMS Shoes:
Donates a pair of
shoes for every
pair sold,
benefiting
underprivileged
communities.
Microsoft:
Focuses on
reducing carbon
emissions and
investing in
education
programs
worldwide.
14. Role of Organizational Culture in Ethics
• Organizational culture plays a crucial role in shaping ethical behavior
within a company. It refers to the shared values, beliefs, practices, and
norms that define how members of an organization interact, make
decisions, and approach work. A positive ethical culture can
significantly enhance ethical behavior, promote integrity, and ensure
the company’s long-term success.
15. outline of the role of organizational culture in
ethics:
Establishes Ethical Norms and Expectations
Influences Ethical Decision-Making
Reinforces Accountability
Encourages Ethical Leadership
Affects Employee Behavior and Morale
16. Code of Ethics and Conduct
• Code of Ethics: Broad principles that define moral values and guide
individuals in distinguishing right from wrong (e.g., honesty, fairness,
integrity).
• Code of Conduct: Specific rules and behaviors that individuals are
expected to follow in daily operations (e.g., policies on workplace
behavior, dress code, and disciplinary actions).
17. Importance of a Code of Ethics and Conduct
Establishes clear ethical
expectations for employees
and leadership.
Builds trust with stakeholders
(customers, employees,
investors, society).
Helps in conflict resolution by
providing a clear ethical
framework.
Encourages compliance with
legal and regulatory
requirements
18. Ethical dilemmas in different business areas
Ethical dilemmas in business arise when individuals or organizations
face conflicts between moral values, responsibilities, and practical
business needs
1. Marketing and Advertising
2. Finance and Accounting
3. Human Resources
4. Sales and Customer Service
Ethical dilemmas exist in all areas of business and often arise due to
conflicts between profit-making, legal obligations, and moral values.
19. Indian approaches towards management
• Dharma (Righteous Duty)-Dharma refers to fulfilling one's duties
ethically and responsibly, based on one’s role.
• Karma (Action and Consequences)-Karma teaches that every action
has consequences, encouraging accountability and ethical behavior.
• Leadership Through Inspiration (The Raja Principle)-Inspired by
ancient Indian kingship (Raja Dharma), leaders should act as role
models with humility, wisdom, and vision.
• Holistic and Spiritual Approach-Indian traditions encourage
integrating material goals with spiritual growth, balancing artha
(wealth) and moksha (liberation).
20. Role of scriptures in understanding ethics,
scriptures refer to sacred or religious texts that provide moral guidance, values,
and principles for individuals and societies.
• Moral Framework
• Source of Values
• Guidance for Life
• Spiritual Motivation
Examples-
Hinduism: Bhagavad Gita, Upanishads, and Vedas
Christianity: The Bible
Islam: The Quran
21. Indian wisdom
Indian wisdom, often drawn from ancient scriptures and philosophical
texts, highlights timeless principles and teachings that guide ethical and
meaningful living
• Dharma (Righteous Duty)
• Karma (Action and Consequence)
• Ahimsa (Non-violence)
• Self-Realization and Spiritual Growth
• Unity in Diversity
23. Workplace Ethics
Workplace ethics refer to a set of moral principles, values, and
standards that guide behavior and decision-making in a professional
setting. These ethics are vital for maintaining a positive, productive, and
respectful work environment. Strong workplace ethics contribute to
building trust, enhancing organizational reputation, and fostering a
culture of excellence.
24. Harassment
Workplace harassment is any unwelcome behavior that creates a
hostile, intimidating, or offensive environment for employees. It can
harm morale, productivity, and overall workplace well-being.
Types –
• Sexual Harassment
• Discriminatory Harassment
• Verbal Harassment
• Physical Harassment
• Psychological or Emotional Harassment
• Cyberbullying
25. Discrimination
• Discrimination refers to unfair or prejudicial treatment of individuals
based on specific characteristics, such as race, gender, religion, age,
disability, sexual orientation, or other protected attributes. In the
workplace, discrimination can manifest in hiring practices,
promotions, pay disparities, or daily interactions, leading to a toxic
and inequitable environment.
26. Examples of Discrimination in the Workplace
• Refusing to hire someone based on their ethnicity, religion, or age.
• Paying employees differently for the same job due to gender or race.
• Using offensive language, jokes, or slurs targeted at specific groups
• Excluding someone from important meetings or opportunities due to
stereotypes or biases.
27. How to Prevent Workplace Discrimination
• Create Anti-Discrimination Policies
• Provide Training
• Encourage Reporting
• Enforce Fair Hiring Practices
• Promote Diversity and Inclusion
28. Diversity
• Diversity refers to the presence of differences within a workplace,
including differences in race, ethnicity, gender, age, religion, ability,
sexual orientation, education, and cultural background. Embracing
diversity creates a more inclusive, innovative, and dynamic work
environment where all individuals feel valued and respected.
30. Challenges of Workplace Diversity
• Unconscious Bias
• Communication Barriers
• Resistance to Change
31. Environmental Ethics
Environmental Ethics is the philosophical study of moral principles
guiding human interaction with the natural environment. It emphasizes
the responsibility to protect ecosystems, conserve resources, and
ensure the sustainability of the planet for future generations. In the
workplace, environmental ethics play a critical role in promoting eco-
friendly practices and fostering corporate social responsibility.
32. Examples of Environmental Ethics in the
Workplace
Reducing Waste
Energy Efficiency
Sustainable Practices
Green Transportation
Eco-Friendly Policies
33. Global Business Ethics
Global Business Ethics refers to the application of ethical principles and
standards in the conduct of international business activities. As
globalization integrates markets, cultures, and economies, businesses
face unique challenges related to differing moral, legal, and cultural
expectations across borders.
34. Key Aspects of Global Business Ethics
• Cultural Diversity
• Legal Compliance
• Human Rights and Labor Practices
• Environmental Responsibility
• Global Supply Chain Ethics
35. Intellectual Property Rights and Ethics
Intellectual Property Rights and ethics are intertwined in safeguarding
creativity, innovation, and fairness in the global economy.
IPRs protect the creations of individuals and organizations, ensuring
that their ideas, inventions, and creative works are not misused or
exploited.
• Copyright
• Patents
• Trademarks
• Trade Secrets
• Design Rights
36. Examples of Ethical IP Practices
• Pharmaceutical Licensing-Companies like Gilead Sciences provide
voluntary licenses for generic production of patented HIV drugs in
low-income countries.
• Creative Commons-Enables creators to license their work under
flexible terms, allowing for broader public access while retaining some
rights.
• Open-Source Software-Platforms like Linux and Apache promote
collaborative innovation while respecting intellectual contributions.
37. Technology and Ethics
Technology and ethics examine the moral principles and dilemmas
surrounding the creation, use, and impact of technology in society. As
technology continues to shape our world, ethical considerations
become increasingly important to ensure that it is used responsibly and
for the benefit of humanity.
38. Key Ethical Issues in Technology
• Privacy
• Cybersecurity
• Automation and Employment
• Social Media and Misinformation
• Autonomous Systems
39. Guidelines for Ethical Technology
Development
• Transparency
• Accountability
• Inclusivity
• Sustainability
• Education
40. Examples of Ethical Technology in Practice
• Google's AI Principles-Google has outlined principles for ethical AI
development, including avoiding bias and ensuring accountability.
• Fairphone-Produces smartphones with a focus on sustainability and
fair labor practices.
• Apple’s Privacy Initiatives-Apple prioritizes user privacy by
implementing features like app tracking transparency.
41. Consumer Protection and Ethics
• Consumer protection and ethics refer to safeguarding the rights of
consumers while ensuring that businesses operate fairly, responsibly,
and transparently. It involves the interplay between laws, regulations,
and ethical principles to protect consumers from harm, deception,
and exploitation.
42. Ethical Issues in Consumer Protection
False
Advertising
Predatory
Pricing
Data
Exploitation
Unsafe
Products
Greenwashin
g
44. Regulatory Framework for Consumer
Protection
• Consumer Protection Act (CPA): Provides protection against unfair
trade practices.
• General Data Protection Regulation (GDPR): Ensures data privacy and
security for consumers in the EU.
• Federal Trade Commission (FTC): Enforces consumer protection laws
in the U.S.
• Consumer International: Advocates for global consumer rights.
• Ethical certification programs like "Fair Trade" or "ISO" standards for
product safety.
45. Examples of Ethical Consumer Protection
Practices
• Procter & Gamble (P&G)Provides clear labeling on all products,
detailing ingredients and usage.
• Amazon Offers robust return policies and consumer feedback
mechanisms.
• Patagonia practices transparency in sustainability efforts and
encourages product recycling.
46. Whistle blowing
The act of exposing unethical, illegal, or harmful practices within an
organization by an employee, contractor, or stakeholder.
Whistleblowers typically report misconduct to internal authorities,
external regulators, or even the public, depending on the severity and
context of the situation.
47. Ethics and Protection
"Ethics and Protection" often relates to discussions about moral principles
and safeguarding individuals or entities. It can apply to various fields such as-
• Healthcare: Ensuring patient confidentiality, informed consent, and
protecting patients' rights.
• Technology: Data privacy, cybersecurity, and ethical AI use.Research: Ethical
treatment of subjects, integrity in data reporting, and preventing harm.
• Business: Corporate social responsibility, ethical sourcing, and protecting
employees and consumers.
• Environment: Ethical considerations in protecting natural resources and
combating climate change.
