Lecture Slides 13 Business Ethics

Four Views of Business Ethics: Rights View of Ethics

It is concern with respecting and protecting
individual liberties and privileges such as rights to privacy, freedom of conscience, free speech etc.

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Example, theft is unethical and there are laws against such behavior. Laws however are still hazy in punishing the unethical behaviors.
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Four Views of Business Ethics: Integrative Social Contract Theory

It is concern ethical decisions are based on existing norms in industries and communities in order to what constitutes right and wrong.

Good of this view is that it report the violations of law by employers but it may be obstacle in getting work done.
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Four Views of Business Ethics: Theory of Justice View of Ethics

It is concern with managers impose and enforce
rules fairly and impartially and do so following all legal rules and regulations.

Example: fair distribution of pay based on work skills but hinder productivity as employees may not have the sense to improve or innovate.
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blaming the economic cyclic movements are concerns with
ethicality.
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Four Views of Business Ethics: Utilitarian View of Ethics
with them.

To analyze the views of business ethics. To discuss the factors affecting the business ethics. To describe about corporate social responsibility and relationship with the management and organization.
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Ethics in the Workplace: Business Ethics

These ethics provide basis (usually has code of ethics) that guide good behaviors of managers.

Unethical behavior is behavior that conforms to individual beliefs and social norms about what is defined as wrong and bad.

Business ethics refers to ethical or unethical behaviors by employees of commercial organizations.
BUSINESS MANAGEMENT
WEEK 13 BUSINESS ETHICS
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LEARNING OBJECTIVES

To explain about ethics at workplace that individual bring

Discuss about corporate governance and benefits it brings to the organizations and shareholders as business owners.
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Behaviors towards employees: help them in hiring, firing,
providing fair wages etc are based on the ethical guidelines such
hiring should be based on ability and rightful skills and not of personal interest, colors, discrimination and the like.

Therefore, it is a great challenge for the managers to
perform such decisions whether it is adhered to social justice and human rights.
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Behaviors towards other economic agents: Ethics that concern
with customers, competitors, stockholders, suppliers and unions.
This is to do with advertising, financial disclosure, ordering and purchasing and other business relationships. Rising prices
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Ethics in the Workplace: Business Ethics

These ethics provide basis (usually has code of ethics) that guide good behaviors of managers.

Example: Laying off 20% of workers is justified to increase profitability and benefits the
remaining 80% of the workers.
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It is based on acceptable ground rules in which the
business operates and what is accepted by the
community.

Deciding pay in Malaysia is subject to local pay scale and not from where it origins.

Behaviors towards organization: Ethical issues also arise from
employee behavior toward employers, especially in such areas as conflict of interest, confidentiality and honesty.
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Four Views of Business Ethics:

Utilitarian approach is most popular. It is benefit the organization in terms of profit maximization, efficiency, and productivity but to some extent it deprives the satisfaction of the affected individuals and minority interest.

Explain about individual ethics including of those managers at
workplace.

Analyze the views of business ethics and approach best implemented within an organization.

Ethical decisions are made solely on the basis of
their outcomes or consequences.

It uses quantitative approach in justifying the results of the action.
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What is ethics?

Principles, values and beliefs that define what is right and wrong behavior.

Ethical behavior conforms to individual beliefs and social norms about what’s right and good.

Discuss the factors affecting the business ethics.

Describe
about
corporate
social
responsibility
and
contributions towards organization and community it operates.
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Ethics in the Workplace: Individual Ethics

Societies generally adopt formal laws that
reflects prevailing ethical standards or social norms.

To discuss about corporate governance and benefits it brings to the organizations.
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LEARNING OUTCOMES
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Factors Affecting Employee Ethics