Here are three potential responses with varying levels of ethics: 1. You could offer the boy Rs. 5,000,000 as requested since that is what he said he would be happy with. However, this does not achieve the fair market value for the home. 2. You could research recent comparable home sales in the area to determine a fair market value and offer that amount to the boy, fully explaining your valuation process. This treats both parties fairly. 3. You could offer a higher price closer to the Rs. 8,000,000 valuation you determined since you have a duty as a businessman to help the boy maximize the sale value. However, this requires fully explaining your higher valuation to avoid appearing deceptive.

1.  Junesh Acharya

3. •Introduction- Ethics
•Ethics in business
•Business ethics and social responsibilities
• Ethical Dilemma and Cases

5. “ Ethics has to do with what my feelings
tell me is right or wrong.”
“ Ethics has to do with my religious
beliefs.”
“ Being ethical is doing what law
requires.”
Ethics consists of the standards of
behavior our society accepts.

6. Ethics is ….
◦ Not just feelings or conscience
◦ Not the same as religion
◦ Not just following the law
◦ Not following “what everybody does”
◦ Not technology or science – what can be done

8. In simple words it defines “The rules and principles
that define right and wrong conduct”
Ethics refers to well-founded standards of right and
wrong that prescribe what humans ought to do.

9. It is the study of standards of business behavior
which promote human welfare and the good.
Ethics in the workplaces helps ensure that when
leaders and managers are struggling in times of
crises and confusion, they retain a strong moral
compass.

10.  Ethics can be thought about
◦ how we act as individual
◦ How we structure our organization and their
work
◦ How we structure our society, our laws , our
systems

11.  Utilitarian Model
◦ Ethical decisions are made on the basic of
their outcomes or consequences
 Moral Rights Model
◦ respects and protects individual liberties and
privileges
 Justice Model
◦ managers impose and enforce rules fairly and
impartially

12.  Recognize an ethical issue or situation
 Get the facts
 Evaluate alternative actions
 Make a decision and test it
 Act and reflect on the outcome

13. ◦ “Good ethics is good business. Non-
corporation with the evil is as much a duty as
is co-operation with good “
 Mahatma Gandhi
◦ “Price is what you pay. Value is what you get “
 Warren Buffet

14. 1. Hire individuals with high ethical standards.
2. Establish codes of ethics and decision rules.
3. Lead by example.
4. Provide ethics training.
5. Conduct social audits.
6. Provide support for individuals facing ethical
dilemmas.

15.  Develop a code of ethics as a guide in
handling ethical dilemmas in decision
making.
 Communicate the code regularly to all
employees.
 Have all levels of management continually
reaffirm the importance of the ethics code
and the organization’s commitment to the
code.
 Publicly reprimand and consistently
discipline those who break the code.

16.  Managers must provide a good role model
by:
◦ Being ethical and honest at all times.
◦ Telling the truth; don’t hide or manipulate
information.
◦ Admitting failure and not trying to cover it up.
◦ Communicating shared ethical values to
employees through symbols, stories, and
slogans.
◦ Rewarding employees who behave ethically and
punish those who do not.
◦ Protecting employees who bring to light unethical
behaviors or raise ethical issues.

17. 1. Developing codes of Ethics.
2. Resolving Ethical Dilemma and making
ethical decision.
3. Assessing and cultivating ethical culture.
4. Ethics Training.

18. Managerial Ethics and Corporate
Social Responsibility

21. Domain of Domain of Domain of
Codified Law Ethics Free Choice
(Legal Standard) (Social Standard) (Personal Standard)
Amount of
Explicit Control
High Low

22. What is social responsibility
of an organization
 Organization is a Social-technical
System
 Social System
-Consists of Individual who are member of society
and the interpersonal relation among them
 Technical System
◦ Consists of techniques, activities, process and
methods to procure ,input and convert to output

23. What is social responsibility
of an organization
 Old concept
◦ To make profit
 New concept/ Modern concept
-to conduct business transaction in a
society.
-to fulfill the demand and supply in a
society.
-Thus it has been thought as consumer
oriented entity.

26.  A situation that arises when all
alternative choices or behaviors have been
deemed undesirable because of potentially
negative ethical consequences, making it
difficult to distinguish right from wrong.

27.  Your company has a firm policy regarding
cases of theft of company property. Used
company equipment is on a table to be
sold by bid each month. You see a
valued employee who is 2 months from
retirement slip an electric drill from the
table and put it in his car before the day
of the sale. What so you do?

28. You are Account Manger in you r office. Your
District Manager enters your office and asks you
for a check for Rs. 10,000 for expenses he tells
you he incurred entertaining a client last night.
He submits receipts from a restaurant and
lounge. At lunch your supervisor’s girlfriend
stops by to pick him up for lunch and you
overhear her telling the receptionist what a great
time she had at dinner and dancing with your
supervisor the night before. What do you do?

29.  Suppose, you are a real state
businessman. A young boy from
Bhaktapur calls you to list her deceased
parent’s home in Liberty. He is not sure
what it is worth, but says he will be happy
to get Rs. 5,000,000 for the home. You
look at the home and feel it is worth at
least Rs. 8,000,000. What do you do?