BUSINESS ETHICS- Features of Business Ethics

BUSINESS ETHICS- Features of Business Ethics
Importance of code of ethics
Types of ethical activities
Benefit of Managerial Ethics
Approaches to Management Ethics�
FORMS of LIBERTARIANISM
OBJECTIONS to LIBERTARIANISM

1. B.COM(H) IIIrd BE&CSR (888209) Sarita chawla

2. BUSINESS ETHICS Meaning: Ethic deal with the study of law of morality and rules of conduct. According to Garret, “Ethic is the science of judging specifically human ends and the relationship of means to serve specifically human ends.” It is the set of the moral principles that govern the action of an individual or a group.

3. Features of Business Ethics It determines issues that business houses face in operating their business activities. It distinguishes between right and wrong’fair and unfair, just or unjust. It is an important component of corporate social responsibility. It demands that corporate should not only be profit-making units, they should also be good corporate citizens. It is broader than law. There may be business activities that are ethical but illegal orunethical but legal.

4. Importance of code of ethics . It protect the interest of consumers as they know they are not being misled or misguided by false advertisements or price fixing. It helps firms in obeying the law and treating people honestly and fairly. It promote employment ethics: safety promotion ,health and safe working conditions.

5. Types of ethical activities A study by Barry Posner and Warren Schmidt highlights the following activities observed by business manager: The important goal of manager is to make their organization effective. Attending to customers was seen as important. Integrity was the characteristic most highly rated by managers at all level. Cont…

6. Types of ethical activities Pressure to confirm to organisational standards was seen as high. Profit maximisation and stockholders’ interest were not the central goals of the manager studied. Most manager seek the advice of others in handling ethical dilemmas.

7. Benefit of Managerial Ethics Predictability is essential for crisis management Shared values build trust Consistency leads to Predictability in planning Confidence in such rewards builds loyalty Consumers care about values Ethical leadership forestalls oppressive regulation Effective partnerships depend on common value Shareholders also care about values Ethics is a form of insurance

8. Utilitarian approach: The action rather than the motive behind the action is the focus of this approach. Positive and negative results of action are weighed against each other and managerial actions are justified if positive effects outweigh the negative effects. Moral right approach: Manager must disclose informatio0n in the annual reports necessary for welfare of the people involved. Cont... Approaches to Management Ethics

9. Approaches to Management Ethics Social Justice approach: According to this approach, of managers actions should be fair, impartial and equitable to all individuals and groups.

10. FORMS of LIBERTARIANISM Right Libertarianism : It says that there no constraints upon a person’s acquisition or use of resources. There should not be unfair access to basic necessities. Some resources should be left for others and they should not go waste or no one should be made worse off by their use. Left Libertarianism : They maintain that natural resources initially belong to everyone in an equal manner. All should have equal opportunity.

11. OBJECTIONS to LIBERTARIANISM Libertarianism does not advocate helping others. One has to keep in mind strictness or strength of one’s right of life and property and also its degree. In identifying libertarianism, a libertarian government is not much of a government at all. They claim that public goods are not the responsibility of the state because they require some breach of rights.