Module-1: Introduction to Ethics: Meaning & Nature of Business Ethics

 

The term ethics is derived from the Greek word ‘ethikos’  which itself is derived from the Greek word ‘ethos’, meaning custom or character. In philosophy, ethical behavior is that which is “good”.  It is similar to Latin word “mores” meaning 'manner, custom, usage, or habit',  are social norms that are widely observed within a particular society or culture. Ethics is regarded as the science of morality or simply, ethics is moral philosophy which deals with moral conduct, judgement, habit, character, rules, or principles.  Habit is outward expression of character, which is the inner disposition or bent of mind

Ethics is the branch of philosophy that focuses on morality and the way in which moral principles are applied to everyday life. Ethics has to do with fundamental questions such as “What is fair?” “What is just?” “What is the right thing to do in this situation?” Ethics involves an active process of applying values, which may range from religious principles to customs and traditions.

Ethics involves a discipline that examines good or bad practices within the context of a moral duty. Moral conduct is behavior that is right or wrong. Business ethics include practices and behaviors that are good or bad

Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and wrong behavior". ... Ethics seeks to resolve questions of human morality by defining concepts such as good and evil, right and wrong, virtue and vice, justice and crime.

Ethical Judgments

Business ethics is the study ofgoals and means for the rational selection of sacred objects and their fulfillment. It accepts the principles of “Pure goals inspire for pure means” and “Means justifies the end”. It is essential that goals and means should be based on morals.

Ethical philosophy differs from the sciences because it is normative or prescriptive , rather than descriptive . In other words, ethics tell us how we ought to act or what we should do , while the sciences are more likely to observe how things are in nature or society

 

Differences between Ethics & Morality

 

Ethics	Morality
Right code of behavior for a group or profession	Prescribes right conduct for everyone
Subject to change and relative in nature	Absolute and not changeable
Applied in the social system, groups or profession	Individual disposition
Arises out of specific recommendation of conduct in a particular profession	Nomological in origin
It is developed and goes on evolving	Handed over from generation to generation; primordial in origin
It is recommended to be followed in a profession	It is prescriptive

 

Principal Components of ‘Ethics’:

 

i. Ethics are principles, values and beliefs that define what is right and wrong behaviour.

ii. Ethics are broader than what is stated by law, customs and public opinion. For example, accepting gifts from father-in-law might be socially acceptable but not ethical; owners pocketing profits without sharing the gains with workers might be legally permissible but not ethical.

iii. Ethical behaviour may differ from society to society. For example, birth control is mandatory in Communist societies but not in Catholic Christian societies.

iv. Ethical standards are ideals of human conduct. Defining ethical stand­ards is not an easy task.

Business ethics refers to the application of moral principles to solve business problems. Here, the word ‘morals’ refers to accepted customs of conduct in a society. The purpose of business ethics is to guide the efforts of managers in discharging their duties to the satisfaction of various stakeholders e.g., employ­ees, owners, customers, suppliers, and the general public.

Managerial ethics, thus, arethose principles that guide the conduct and thinking of managers with respect to what is good or bad; right or wrong (Barry). It is not always easy to divide managerial actions into clear-cut compartments of ethical and unethical behaviour because of certain complicating factors.