Can Profitability and Morality Co-Exist?
Can Profitability and Morality Co-exist?
Business Ethics and Corporate Governance
INTRODUCTION TO BUSINESS ETHICS
What is Business??
Business is a legally recognized organizational entity existing within an economically free country designed to sell goods and/or services to consumers or other businesses, usually in an effort to generate profit. It is a commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities.
What is Ethics?
Ethics are standards of conduct that indicate how one should behave based on moral duties and virtues. Ethics means
• character or manner
• Science of morals
• Recognized rules of conduct
• Moral principles
Objectives of Ethics
• Studies human behaviour
• Establishes moral standards & norms of behaviour
• Makes judgement on human behaviour
• Prescribes moral behaviour
• Expresses an opinion
What is Business Ethics??
Business Ethics is simply- an application of ethics in business. When business people speak about “business ethics” they usually mean one of three things: (1) avoid breaking the criminal law in one’s work-related activity; (2) avoid action that may result in civil law suits against the company; and (3) avoid actions that are bad for the company image. Businesses are especially concerned with these three things since they involve loss of money and company reputation.
In theory, a business could address these three concerns by assigning corporate attorneys and public relations experts to escort employees on their daily activities. Anytime an employee might stray from the straight and narrow path of acceptable conduct, the experts would guide him back. Obviously this solution would be a financial disaster if carried out in practice since it would cost a business more in attorney and public relations fees than they would save from proper employee conduct. Perhaps reluctantly, businesses turn to philosophers to instruct employees on becoming “moral.” For over 2,000
Business Ethics and Corporate Governance
INTRODUCTION TO BUSINESS ETHICS
What is Business??
Business is a legally recognized organizational entity existing within an economically free country designed to sell goods and/or services to consumers or other businesses, usually in an effort to generate profit. It is a commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities.
What is Ethics?
Ethics are standards of conduct that indicate how one should behave based on moral duties and virtues. Ethics means
• character or manner
• Science of morals
• Recognized rules of conduct
• Moral principles
Objectives of Ethics
• Studies human behaviour
• Establishes moral standards & norms of behaviour
• Makes judgement on human behaviour
• Prescribes moral behaviour
• Expresses an opinion
What is Business Ethics??
Business Ethics is simply- an application of ethics in business. When business people speak about “business ethics” they usually mean one of three things: (1) avoid breaking the criminal law in one’s work-related activity; (2) avoid action that may result in civil law suits against the company; and (3) avoid actions that are bad for the company image. Businesses are especially concerned with these three things since they involve loss of money and company reputation.
In theory, a business could address these three concerns by assigning corporate attorneys and public relations experts to escort employees on their daily activities. Anytime an employee might stray from the straight and narrow path of acceptable conduct, the experts would guide him back. Obviously this solution would be a financial disaster if carried out in practice since it would cost a business more in attorney and public relations fees than they would save from proper employee conduct. Perhaps reluctantly, businesses turn to philosophers to instruct employees on becoming “moral.” For over 2,000