Evolution of Thought of Ethics in Business

Ethics had been a part of theological discussions prior to 1960.

Before the 1970s there were a few writers like Raymond Baumhart
who dealt with Ethics and Business.

Norman Bowie dates the genesis of business Ethics as November

1974, with the Ist conference on the subject held at the University of
Kansas.

In 1979, three anthologies on Business ethics appeared1. Ethical Theory and Business by Tom Beanchamp and Norman Bowie.
2. Ethical Issues in Business: A philosophical Approach by Thomas
Donaldson and Patricia Werhane.
3. Moral Issues in Business by Vincent Berry.

1982- Richard De George brought out Business Ethics.

1982- Manuel G. Velasquez published his Business Ethics: Concept

and Cases.

1980- The subject was taught in several Universitites in the US &

Europe.

1990- Business Ethics as a Management Discipline was wellestablished.

from 1960s to 1980s The consumers Association in Britain
multiplied its membership and campaigned hard on issues-- Consumer rights
-- Quality
-- Safety
-- Price
-- Customer Service
-- Environmental concerns

What is Business Ethics ?

The dictionary meaning of the term Ethics is-

- Principles

- Morals
- Beliefs
- Moral Principles
- Moral values
- Moral code
Ethics is defined in Webster dictionary as- Ethics is the discipline
dealing with what is good or bad, right or wrong, moral duty or
obligation. It is a group of moral principles or set of values. These
principles govern the conduct of an individual or a profession.

Ethics is a set of moral principles which guides the code of conduct

and behaviour of human being in his life and in society.

Ethics may be defined as a philosophical enquiry into the nature and

grounds of morality.
- Paul W. Taylor

Ethics is the art of human living and its result should be ease in
being good men in every circumstances.
-Thomas Higgins

Business Ethics is the art and discipline of applying ethical

principles to examine and solve complex moral dilemmas.

Principles of Personal Ethics

1. Concern and respect for the autonomy of others.
2. Honesty and the willingness to comply with the law.
3.

Fairness and the ability not to take undue advantage of others.

4.

Benevolence and preventing harm to any creature.

Principles of Professional Ethics

Impartiality: objectivity;

Openness: full disclosure;

Confidentiality: trust

Due diligence/duty of care;

Fidelity to professional responsibilities and

Avoiding potential or apparent conflict of interest.

Nature of Ethics
Ethics is the subject of philosophy.

Ethics is a subject that deals with human being.

Ethics is a social as well as individual phenomenon.

Ethical standards are the ideals for conduct of life.

Ethics is complex in nature.

Determinants of Ethics
1. Values and Morals.
2. Family, schools and religion
3. Peers, Colleagues and Superiors
4. Social pressure
5. Experiences from life
6. Organizational demand and ethical codes
7. Legislation
8. Threatened situations

Objectives of Ethics
To set the standard of personal life and norms of behaviour.

To define the working pattern of professional life.

To set a standard for dos and donts.

To develop a value system.

To create strong work culture.

To set the mission of life.

To inculcate good behaviour.

To improve social life.

To balance the need and wishes of human being.

To prevent the social evils.

Dimension of Work Ethics

1. Rightful Expectations
2. Sense of Loyalty towards the organization
3. Discipline
4. Work ethics in Managementi ) Effectiveness
ii) Efficiency
5. 4 Ps of Work Ethics

Importance & Need for Business Ethics

Ethics corresponds to basic human needs

Value create credibility with the public

Value give management credibility with employees

Values help better decision making

Ethics and profit

Law cannot protect society, ethics can.

Factors Affecting Business Ethics

1.The Personal code of behaviour of the individual
2. The policies of the company
3. The standards imposed on a manager by his superiors.
4. The ethical climate of a country.
5. Value forming Institutions.
6. Peers and Colleagues