BUSINESS ETHICS- Features of Business Ethics Importance of code of ethics Types of ethical activities Benefit of Managerial Ethics Approaches to Management Ethics FORMS of LIBERTARIANISM OBJECTIONS to LIBERTARIANISM

1. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Affiliated Institution of G.G.S.IP.U, Delhi
B.COM(H) IIIrd
BE&CSR (888209)
Sarita chawla

2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
BUSINESS ETHICS
Meaning: Ethic deal with the study of law of
morality and rules of conduct. According to
Garret, “Ethic is the science of judging
specifically human ends and the relationship
of means to serve specifically human ends.”
It is the set of the moral principles that govern
the action of an individual or a group.

3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Features of Business Ethics
• It determines issues that business houses face in
operating their business activities.
• It distinguishes between right and wrong’fair and
unfair, just or unjust.
• It is an important component of corporate social
responsibility.
• It demands that corporate should not only be profit-
making units, they should also be good corporate
citizens.
• It is broader than law. There may be business activities
that are ethical but illegal orunethical but legal.

4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Importance of code of ethics
.
• It protect the interest of consumers as they
know they are not being misled or misguided
by false advertisements or price fixing.
• It helps firms in obeying the law and treating
people honestly and fairly.
• It promote employment ethics: safety
promotion ,health and safe working
conditions.

5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Types of ethical activities
• A study by Barry Posner and Warren Schmidt
highlights the following activities observed by
business manager:
• The important goal of manager is to make
their organization effective.
• Attending to customers was seen as
important.
• Integrity was the characteristic most highly
rated by managers at all level. Cont…

6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Types of ethical activities
• Pressure to confirm to organisational
standards was seen as high.
• Profit maximisation and stockholders’ interest
were not the central goals of the manager
studied.
• Most manager seek the advice of others in
handling ethical dilemmas.

7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Benefit of Managerial Ethics
• Predictability is essential for crisis management
• Shared values build trust
• Consistency leads to Predictability in planning
• Confidence in such rewards builds loyalty
• Consumers care about values
• Ethical leadership forestalls oppressive regulation
• Effective partnerships depend on common value
• Shareholders also care about values
• Ethics is a form of insurance

8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Utilitarian approach: The action rather than the
motive behind the action is the focus of this
approach. Positive and negative results of
action are weighed against each other and
managerial actions are justified if positive
effects outweigh the negative effects.
Moral right approach: Manager must disclose
informatio0n in the annual reports necessary
for welfare of the people involved. Cont...
Approaches to Management Ethics

9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Approaches to Management Ethics
• Social Justice approach: According to this approach,
of managers actions should be fair, impartial and
equitable to all individuals and groups.

10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
FORMS of LIBERTARIANISM
Right Libertarianism: It says that there no constraints
upon a person’s acquisition or use of resources.
There should not be unfair access to basic
necessities. Some resources should be left for others
and they should not go waste or no one should be
made worse off by their use.
Left Libertarianism: They maintain that natural
resources initially belong to everyone in an equal
manner. All should have equal opportunity.

11. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
OBJECTIONS to LIBERTARIANISM
• Libertarianism does not advocate helping others.
• One has to keep in mind strictness or strength of
one’s right of life and property and also its
degree.
• In identifying libertarianism, a libertarian
government is not much of a government at all.
They claim that public goods are not the
responsibility of the state because they require
some breach of rights.