Ethics in

Management

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Ethics, known as moral philosophy, is a

branch of philosophy that addresses
questions about moralitythat is,
concepts such as good and evil, right and
wrong etc.

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Philosophy and Ethics

Mark I. Vuletic

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Logic is the study of proper patterns of reasoning, of the

connection between evidence and the conclusions one might
try to draw from evidence. Obviously, logic is not exclusively
the domain of philosophers.
Metaphysics, roughly, asks questions about things: what things
exist? What are they like? For instance, do people have free
will? Are minds distinct from brains? What is time?
Epistemology asks questions about knowledge itself: what is
knowledge? Can we have it? What does it take to get it?
Axiology deals with questions about value, both artistic value
in the case of aesthetics, and moral value in the case of ethics.
Philosophy and Ethics
Mark I. Vuletic

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Sources of Ethics
Fellow Workers

Culture/media

Family

Regions of
Country

Profession
The Individual

Friends

The Law

ethics
Employer

Religious
Beliefs

Society at Large

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Business Ethics:
What Does It Really Mean?
Business Ethics:Today vs. Earlier
Period
Expected and Actual Levels
of Business Ethics

Societys
Expectations
of Business
Ethics
Ethical
Problem
Actual
Business
Ethics

Ethical Problem

1950s

Time

2013
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Why People Act Unethically

The persons ethical standards are different
from those of society as a whole.
The person chooses to act selfishly.
In many instances, both reasons exist.
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A Persons Ethical Standards

Differ from General Society
Fraudster

fleece

Plagiarism

Most people who commit such acts feel no

remorse when they are apprehended because
their ethical standards differ from those of
society as a whole.

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Ethical Dilemmas
An ethical dilemma is a situation a
person faces in which a decision must
be made about appropriate behavior.

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Resolving Ethical Dilemmas

1. Obtain the relevant facts.
2. Identify the ethical issues from the facts.
3. Determine who is affected.
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Resolving Ethical Dilemmas

4. Identify the alternatives available to the
person who must resolve the dilemma.
5. Identify the likely consequence
of each alternative.
6. Decide the appropriate action.
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Ethical Dilemma
A staff person has been informed that
he will work hours without recording
them as hours worked.
Firm policy prohibits this practice.
Another staff person has stated that
this is common practice in the firm.

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Resolving the Ethical Dilemma

Is it ethical for the staff person to
work hours and not record them
as hours worked in this situation?
Who is affected?
How are they affected?
What alternatives does the staff
person have?
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Other Ethical Dilemmas

A supervisor asks you to initial certain audit procedures as
performed when they were not.
You conclude that you cannot be promoted to manager
unless you persuade assistants to work hours that they do
not record.
Management informs you, now a partner, that either the
company gets an unqualified opinion for a $40,000 audit fee
Management informs you that the audit fee will be increased
$25,000 without any evidence
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Ethical Principles
Golden Rule: Do unto others as you would have
them do unto you
Kants Categorical Imperative: If an action is not
right for everyone to take, then it is not right for
anyone
Descartes rule of change: If an action cannot be
taken repeatedly, then it is not right to be taken at
any time

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 Utilitarian Principle: Take the action that achieves

the greatest value for all concerned
Risk Aversion Principle: Take the action that
produces the least harm or incurs the least cost
to all concerned
Ethical no free lunch rule: Assume that all
tangible and intangible objects are owned by
someone else, unless shown the contrary. If
someone has created something of value to you,
that person probably wants compensation for
your use
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Assignment # 1
Write down a report on ethical / unethical conduct of an
enterprise in industry of your choice. The report should not
exceeds four pages
1.Introduction of Firm
2.Business Environment
3.Situational Analysis
4.Ethical / Unethical Conduct
5.Advantages / Disadvantages to stakeholders/Non-stakeholders
6.Conclusion
7.Recommendations
8.Condition: Self written report will be accepted no cheating/copying
from internet or any other source. Dead line April 06, 2016
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But its worth it. Here are five

companies whose success is
built on responsible business
practices. by Alison Beard
and Richard Hornik,
HBR, Nov 2011

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by Heerad Sabeti, Harvard Business Review November 2011

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by Heerad Sabeti, Harvard Business Review November 2011

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Please
a
group
of two
or
three
and =>

Select
one
topic
of your
choice
and
present
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