Business ethics outcome 1

PHIL 3108

BUSINESS ETHICS

Outcome 1

Introduction to Ethics

Ethics - Definition

• Ethics is a set of principles prescribing a behavior code, explains what is good and bad or what is right and wrong.

• It gives outlines to moral duties and obligations.

• Ethics is a system of moral principles.

Ethics - Definition

• Oxford Dictionary defines Ethics as “the science of morals in human conduct”.

• It is a set of moral principles or values that govern behavior .

• Ethics is the science of morality of conduct - deals with proper and improper actions of human being.

Origin of Ethics

• The word ‘Ethics’ came from the Greek word ‘Ethos’ meaning “Character”.

Dimensions covered by Ethics

• Moral bases of what is good and bad.• Determines the rights and responsibilities of

individuals and organizations.• Guide how to live a good life.

Sources of Ethics and Vales

• Religion• Tradition• Cultures• Philosophies

World Religions (2007 estimated)

Source: en.wikipedio.org

Tradition and Culture

Mussar

Tradition and Culture

Kummah

Tradition and Culture

Khanjar

Bases of Ethics in Islam

• Holy Qu’ran• Traditions of Prohet (Sunnah)

Work Ethics

• Application of morals and ethical standards to different work situations.

• Deals with the issues of right and wrong of activities, decisions and situations.

• Applicable to business situations, professional life and organizational settings.

Business

• An economic activity which involves production and transaction of goods and services for the purposes of sale at a profit.

• Examples: Manufacturing, Trading, transportation, banking, finance, insurance, etc.

Business – Production of cars

Business – Production of Coca-cola

Trading

Transportation

Business Ethics

Deals with right and wrong in doing business.

Is this ethics in business?

Business Ethics - Examples

• Selling goods before expiry date.• Weighing goods accurately.

Professional Ethics

Profession

• An occupation or practice• Requiring specialized knowledge and skills• Through education and practical experience

Professional Ethics

Values and principles that guide • a profession and • the decisions made.

Organization

• A group of persons associated by some common objectives

• Organization is viewed as a single unit

TOP Companies in Oman

• Oman Telecommunications Company• Bank Muscat• Shell Oman Marketing Company• Gulfar Engineering & Contracting• Al Maha Petroleum Products Marketing Co.• Oman Oil marketing Company• Renaissance Services

Organizationgroup of people work together for common

goal

Importance of Works Ethics

1. Increases goodwill

Ethical standards enhance reputation of employees, professionals and organizations.

2. Increases mutual trust and confidence

• Organizational ethics helps develop trust and confidence among the people (customers, employees, suppliers).

Trust

3. Safe work environment

• An employee, who follows ethical standards in doing his job, is released from unwanted tensions and worries.

4. Continuous Progress

• An employee with high ethical standards can make regular and continuous progress in his career.

• Similarly an organization which adheres to high ethical standards can flourish to more heights.

Continuous Progress

5.Increases competency

• Nowadays any profession or business is highly diverse and competitive.

• Ethical standards make professionals and organizations competent to face all these challenges.

Factors influencing Work Ethics• 1.Personal values: The personal beliefs

of the individuals working in an organization also influence work ethics.

• For example Mr. Humaid considers hard work as his personal quality. He sits at his laboratory late hours to complete the experiments.

Personal Values - Examples

• Love• Kindness• Respect• Humor• Honesty

2.Social values

• The values existing in the societies encourage people to follow ethical practices and discourage them from doing unethical practices.

• For Example : Equality is a social value. A

community which considers this value treats all people equally.

Social Values - Examples

• Justice (Fairness)• Liberty (authority & freedom)• Freedom (liberty & independence)

3. Organization/ Industry norms

In some organizations/industries specific codes of conduct have been laid down which acts as the base for ethical practices in those places

Example

In some companies encourage their employees not to use the company phones for personal use.

To support this norm they give special telephone allowance for the staff.

4.Government rules and regulations

• Government regulations provide guidelines for acceptable practices.

• For example, the government has made it compulsory for tobacco companies to give a statutory warning “smoking is injurious to health” in the advertisements for cigarettes

Important Terms 1. Values

2. Norms

3. Attitudes

Values• Values are the important principles

shared by the members of a society about what is good or bad and desirable or undesirable.

• They influence a person’s behavior and attitude.

• They guide the people on all situations.• Some common values are honesty,

justice and equality.

Values• Values act as the foundations of ethics

and morals.• If values are trees then ethics is its fruits.

Values are…..

• Positive

• Negative

• Neutral

Positive values

• Anything which is good for the individual or society is called positive value.

• Examples: Mercy, justice, being truthful, being fair with others etc.

Negative values

• Anything which is bad for the individual or society is called negative value.

• Example: Cheating, lying, stealing and greed etc.

Neutral Values

• Deal with what we like or desire.

• Example: Money, fame, and status.

Norms

• Norms are expectations of a proper behavior in a society. • Example: Omani men are supposed

to wear Dishdasha and Khanjar while attending a social or official function.

What is Attitude?

Attitude

• Attitude is approach of an individual towards something, someone, some place, or events, etc.

• Attitude may be positive or negative.• It varies from person to person; time to time and situation

to situation.• When you use ‘like’ and ‘dislike’ you are expressing an

attitude.• Example: One person may like tea and another person may

like coffee.

Types of Values

1. Personal Values: Values which are possessed by individuals. These values and belief leads to action. It reflects in individual’s behavior and attitude. Personal values can be positive, negative, or neutral.

2. Social Values

• Based on the welfare and wellbeing of one particular society.

• May include equality, justice, liberty, freedom etc.

• Examples: Helping your friend, neighbors and other.

3.Economic Values

• Values related to earning and spending money.• E.g. Spending money in a correct way

Charging correct price for the product etc

4.Spiritual Values

• Values associated with the relationship of an individual with his God.

• It includes the mode of worship, beliefs, etc.

• It also depends on what God has revealed. E.g. Fear of Allah (Taqwa’)

• If a person is very much strong in spiritual value, his action will be more ethical.

5.Technical Values

• Values associated with the use of science and technology.• E.g. Using of nuclear science and other technologies for the

benefit of human being not for killing or harming anyone.

Technology

Examples

6.Legal Values

• Values associated with adhering to the laws of a country.• These are based on the law of the country.• E.g. Following governments rules and regulations.

7.Aesthetic Values

• These are based on beauty and neatness.• E.g. Not to destroy a colorful flower

Keeping the classroom and office neat and clean.

Aesthetic Values

Examples

Aesthetic values

8.Ecological Values

• It is based on living system and environment.• E.g. Not to pollute water, space, and environment.

Water Pollution

Air Pollution

9.Psychological values

• This is based on the personal satisfaction of an individuals.• It is a state of happiness with the available resources.• E.g. Satisfied with low income.