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ORGANISATIONAL
ETHICS
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What is Ethics?
(Ethics: derived from the Greek word, ethos (character or
custom.)

Ethics can be defined as the moral values, rules, or standards
governing the conduct of a particular group, profession, or
culture.
Thus, group, organization, professional, and cultural
ethics all co-exist with one another.

Together, they influence the set of values you adopt to
define your own code of ethics: Being personally ethical
means acting in accordance with your own personal code
of ethics.

Ethical dilemmas arise when your own ethical standards
conflict with those of some other entity.
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BIN
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Objectives of Ethics :

Study of human behavior and making evaluative
assessment about that as moral or immoral (a diagnostic
goal).

Establishing moral standards and norms of behavior.
Making judgment upon human behavior based on these
standards and norms.

Prescribing moral behavior and making
recommendations about how to or how not to behave.

Expressing an opinion or attitude about human contact
in general.
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Nature of Ethics :

Concepts of ethics deals with human beings only. Human
beings can distinguish right or wrong, good or evil.

The Study of ethics is a set of systematic knowledge
about moral behavior and conduct. Study of ethics is a
science a social science.

Science of ethics (Normative Science) : it judges the
value of the facts in terms of ideal situation.

Deals with human conduct which is voluntary, not forced
or coerced by persons or circumstances.
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Code of Ethics in Business :

Responsibilities of Business :
a) not to do harm knowingly,
b) to adhere all applicable laws and regulations,
c) the accurate representation of their education, training
and experience,
d) active support, practice and promotion of this code of
ethics.

Honesty and Fairness :
a) being honest in serving consumers, clients, employees,
suppliers, distributors and the public.

b) no knowingly participating in conflict of interest without
prior notice to all parties involved.

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Rights and Duties of parties :
a) products and service offered are safe and fit for their
intended use,
b) communications about offered product and services are
not deceptive,
c) all parties intend to discharge their obligations, financial
and otherwise, in good faith,
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Ethics will be different at different
Levels

At the basic level, it is about discipline, i.e.. to maintain
punctuality, coming to work on time, behaving properly
with superiors, colleagues and subordinates and not
wasting time during working hours.

At the top level, it is about commitment and Protecting
the interests of the organization.
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Sources of Ethics :
1. Genetic Inheritance : The qualities of goodness is a
product of genetic traits strengthened over time by the
evolutionary process.

2. Religion : Religious morality is clearly a primary focus in
shaping our societal ethics.

3. Philosophical Systems : The quality of pleasure to be
derived from an act was the essential measure of its
goodness.

4. Cultural Experience : Individual values are shaped in large
measure by the norms of the society.

5. The legal system : Laws represent a rough approximation of
societys ethical standards.
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Factors Influencing Ethics:
Individual Organizational Environmental
Values
Work
Background
Family Status
Personality
Top Level Mgmt.
The Firms
Reward System
Job Dimensions
Competition
Economic
Conditions
Social/Cultural
Institutions
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On-the-Job Ethical Dilemmas :
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HOW ORGANIZATIONS SHAPE ETHICAL CONDUCT
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Ethical Awareness
Code of Conduct Formal statement that defines how the
organization expects and requires employees to resolve
ethical questions.

Ethical Reasoning
Codes of conduct cannot detail a solution for every ethical
situation, so corporations provide training in ethical
reasoning.

Ethical Action
Helping employees recognize and reason through ethical
problems and turning them into ethical actions.

Ethical Leadership
Executives must demonstrate ethical behavior in their
actions.
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I f ethics are poor at the top, that behavior is copied
down through the organization.
- Robert Noyce, inventor of the silicon chip
Thank You