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Ethics is a general term for what is often
described as the "science (study) of morality".
In other words, ethical behaviour is that which is
"good" or "right.“
Ethics is about behaviour.
Behaviour is determined by accountability.
Drivers of Unethical Business Behavior:
Faulty internal oversight allows self-dealing
in the pursuit of personal gain, wealth, and
self-interest.
Short-termism pressure to meet or beat shortterm performance targets.
A culture that puts profitability and business
performance ahead of ethical behavior.
PERSONAL VERSUS BUSINESS ETHICS…
Firstly, the economic nature of business
distinguishes it from normal day to day activity.
Employment also has its own standards of right
and wrong
Secondly, another distinguishing factor is that
business takes place essentially in organisations
DECISION MAKING IN BUSINESS
Decision making takes place on three (3)
levels:
1) Individual
2) Organisational
3) Sector/business practice
IDENTIFICATION OF THE REQUIRED LEVEL FOR A
DECISION IS KEY
•At the individual level, a person decides what
he or she will do.
•At the organizational level, decisions involve
an individual acting within his or her
organizational role and are often expressed in
procedures and policies,
•Whereas the business system level involves
systemic problems that concern industry
practices and the economic system.
Ethics is just one aspect of decision
making. Generally, there are three points
of view to be considered:
Moral, Economic and Legal
Morality is a key issue. Three issues must
be considered when faced with decision
making.
What are the moral issues to consider
when making decisions/telling the truth:
Potential harm to the customer
Misrepresentation/Manipulation
Fairness- Golden Rule
How should we be guided when taking the
moral point of view?
Seek out and act on reasons/rationale:
One should try to justify rules set by good
reasons.
Impartiality:
One should think about the interests of others
as worthy of consideration and ascribe all
interests equal weight in deciding what to do.
People discount the moral aspect of business,
arguing that the key consideration in business
is profit generation and efficiency. The legal
perspective must also be considered, but this
approach is seen as a constraint on the
economic position.
THERE SHOULD BE AN INTEGRATED
APPROACH TO DECISION MAKING
Ethics is in part an attempt to think clearly and
deeply about ethical issues in business and to
arrive at a conclusion supported by the
strongest possible arguments ie a moral point of
view.
However, one should consider economic factors
as well as the law.
THERE SHOULD BE AN INTEGRATED
APPROACH TO DECISION MAKING
Ethics and Economics
Economics teaches that businesses should operate
with only profit in mind.
However, there is a relationship between
economics and ethics
THERE SHOULD BE AN INTEGRATED
APPROACH TO DECISION MAKING
Ethics and Law
Business decisions must also include the
legal point of view because the law is a
significant influence on business activity.
Some argue that law is the only moral
standard necessary to follow. (If it’s legal,
then it’s morally okay.)
Ethics and Law
The previous position is supported by two
schools of thought: (1) that ethics is a matter
of personal conduct, whereas law applies to
public matters like business, and (2) that all
unethical conduct in business has already
been addressed by the law.
However, the Law is not enough:
1) The law is not equipped to regulate
certain aspects of business
2) Slow to develop in new areas
3) The law embodies certain moral
concepts that are not properly defined
The Law is not enough…
4) In many cases, the law is unsettled
5) With the inefficiency of the law,
additional legislation is required and
there is increased litigation
AREA Code of Ethics
A code of corporate conduct is an important
management tool. It is the primary
documentation for moving business ethics
from the area of ideas to that of action at the
various levels of an organized enterprise.
AREA Code of Ethics
However, the conduct patterns of business
ethics are not limited to those that are
assembled in the statements of a formal
code. As stated previously, there are
principles, practices etc, all of which provide
guidelines for ethical conduct in business
situations.
Roles and the Agent
A role is a structured set of relationships
with accompanying rights and obligations
Obligations of a particular role are
sometimes added to those of ordinary
morality ie someone who occupies a role
assumes obligations above those of everyday
life.
Roles and Managers
Role Morality is specific to a particular role for
professionals. In this case, the Real Estate Agent
has responsibilities to different groups and should
consider various interests.
Also, roles are created to serve society better. A
proper system ensures advancement of society and
benefits all.
Ethical Theory and Business Ethics
Ethics as a philosophical endeavour is the study of
morality
It can be either Normative or Descriptive
•Normative refers to the possibility of justification
•Descriptive involves an empirical research the actual
rules or standards of a particular group or simply an
appreciation of the ethical reasoning process
Theories include:
Teleological theories
Deontological theories
Concept of Virtue
In Conclusion….
This should be our goal:
Ethical Management
Acting ethically as a manager
Management of Ethics
Acting effectively in situations that
have an ethical aspect
THANK YOU FOR YOUR
ATTENTION