BUSINESS ETHICS

“A man does what he must.. in spite of personal

consequences, in spite of obstacles and dangers, and
pressures.. and that is the basis of all human morality”-
John F. Kennedy
What are Business
Ethics?
 Ethics are principles that explain
what is right or wrong, good or bad,
and what is appropriate or
inappropriate in various settings.
 Business ethics provide
standards or guidelines for the
conduct and decision making of
employees and managers.
Without Ethics?
 No consensus
 Chaos – people will use their subjective
criteria for judgment and decision
making.

Business ethics are not to be confused with

Laws and Guidelines.
Business Ethics
 Quality – Purposeful existence.
 Integrity – Abiding the law
 Respect – Employees, nature, Investors,
Customers.
 Spirit – competence and competition
 Mutual benefits
Can We Afford Ethics?
 The value of diversity.
 Distributed power.
 Continues reality testing.
 Distributed leadership
 Global ethics
 Acting for the long run.
 Golden rules.
 MASLOW'S
HIERARCHY
Comparison
“Just as no one can be forced
into belief, so no one can be
forced into unbelief.”

SIGMUND FREUD
About Freud
 Sigismund Schlomo Freud was an
Austrian psychiatric.
 Psychoanalytic theory was a by product
of his cocaine addiction.
 Sex and Aggression, Eros and thetos.
 Was an atheist.
 THE
PSYCHOANALYTIC
THEORY
ID
 The unconscious mind.

 Driven by pleasure principle.

 Cravings and immediate satisfaction.

 Socially unacceptable.
The EGO
 Conscious preconscious and
unconscious mind.
 Meets desires in realistic world.
 Relation and socially acceptable.
 Unmet needs create tension – The ego
finds a substitute for the mental image of
the desires formed in the brain.
SUPER EGO
 Internalizedmorals and standards.
 Begins at the age 5 – right or wrong.

 The ego ideal – Saints.

 The conscience - Sinners

Interaction Between 3
Egos
 Conflicts between Three States.

 Ego Strengths – ego’s ability to function

despite these dueling forces.
 Good ego strength.
 Bad ego strength.
Ethical Approach
 People
utilize different ethical value
systems

These systems are based on:

• Personal experiences
• Religious background
• Education
• Family training
 MANAGERIAL
ETHICAL
APPROACH FOR
DECISION MAKING
Approaches
Utilitarianism
• A means of making decisions based on what is
good for the greatest number of people.
Individualism
• The degree to which a society values personal
goals, autonomy, and privacy over group loyalty,
commitment to group norms, involvement in
collective activities, social cohesiveness, and
intense socialization.
• Individual self-interest should be promoted as long
as it does not harm others.
Approaches
Rights approach
• A means of making decisions based on the belief
that each person has fundamental human rights
that should be respected and protected.
Justice approach
• An approach to decision making based on treating
all people fairly and consistently when making
business decisions.
Comparison Of Ethical
Approaches
Individuals
Matter

How much
do
individuals
matter?

Community
matters

Egalitarian Economic freedom Libertarian

Examples of acceptable
ethical standards
St. Paul Companies
• Employees may accept gifts of inexpensive pens
or appointment diaries, but not liquor, lavish
entertainment, travel, or clothing.

Eli Lilly and Company

• Employees may not conduct business with a
company with which they or their relatives are
associated, unless Eli Lily has given specific
approval and authorization.
Cont…
General Dynamics Corporation
• Employees may not use or share inside
information (that is not available to the general
public) for personal gain.

J.D. Edwards and Company

• Profanity and racial and sexual slurs are
prohibited.
• Language should convey a loving, caring, and
sensitive attitude toward other people.
About the company
 Formed in 1985
 Petrochemicals, Plastics, Oil, Broadband,
Power etc.
 From nowhere to 7th biggest company in
America.
 Employees were over ambitious.
 Accounts department favored unethical
expansion by hiding losses.
Results
 Biggest Bankruptcy filed in history on 2nd
December 2001.
 5600 jobs were lost.
 CEO was charged with 54 cases of fraud.
 Almost killed himself
Ego Anxiety
When we cannot deal with demands of our
desires, the constraint of reality and our
moral standards cause anxiety.
Types of Anxieties

 Neurotic anxiety – unconscious worry that

we will lose control of ID.

 Reality anxiety – fear of real world

events.

 Moralanxiety – Fear of violation of our

own moral values.
How people live with
deceits?
 DEFENSE MECHANISMS
o Denial
o Rationalization
o Suppression
CONCLUSION
Thank you
 Anurag huria
 Kailash singh
 Neha mahajan
 Nikhil nagar
 Sandeep verma
 Sheeba agha
 Yogesh sharma