c Dictionary meaning: ͞system of morals, rules and conduct͟.

c The origin of this word is from ETHOS which means character.

c Ethics is defined as the ability to distinguish between right and wrong and act accordingly.

Why ethics is important in business?

c To gain the goodwill of the community.

c To increase the lifetime of an organization.

c Produce safe and effective products.

c Provide excellent service & Maintain customers.

c Develop and maintain strong employee relations

- Suffer less turnover

- Enjoy better employee morale

c Suppliers and other business partners prefer companies that operate in a fair and ethical
manner

Why is business ethics important for a company?

c Protects and improves sales, reputation and company image.

c Improves faithfulness and engagement of its employees.

c Prevents business loss.

c Empowers communication channels for interest groups.

c Helps to retain license to operate.

c Decreases risk.

Simple ethical test for a business decision

c Transparency:
Do I mind others knowing what I have decided?

c Effect:
Who does my decision affect or hurt?
Äairness:
Would my decision be considered fair by those affected?

͞When in Rome, do as Romans do͟.

Expert opinion: Prof Varun Arya (A member of IIM-A Governing Society

c He said: ͞In India, you just cannot grow until you compromise͟.

c There is rampant corruption here and all the shortcuts and unfair means are correct.

c Most of the top corporate have set of designed values but hardly any of them walk their talk.

Its not only in India but in world also

Does it pay to be ethical?

á
 






   

 !
  "#"$

%&   
!
'
   ((

)  á *&  +
       ,-
 
    .,

$/ 01á1á& 
,+
       

-  % 



2##)   '-3    

.,

$1*45$& 
-
!       -


 !678

A General Äramework of the Ethical Decision-Making Process

Individual Characteristics of the Decision Maker that Influence the Ethical Decision-Making Process

 3


  9/:

9!!!


   9 ' 
 

9  3    9

;;


95 - !    

á3
<
  9á 3+

92;  91

!
3 = -  >

9á3:     >


 - 
>

9 
    >!
+>!
 >

9?!

  3@

 

1

!
!-  3 3
%

&;
?  

á3
<
  9á 3+

92;  91

!
3 = -  >

9á3:     >


 - 
>

9 
    >!
+>!
 >

9?!

  3@

 

-  3 -!3 3

%

&;
?  

9?!    9, ;

9:    9?
 

91
! 
   95


 !3 3
1
-



 -
+ 

9 3


3
+ 

9

+!3
-


á*  11   á*1
A
,+2

 B

c  !3
  
+3
,3
#

c á3 - : !   

+3 ,+:3
3:
#

c $-
3


<
 

   
 #

c ; -C-
+ 


+ 3

<
#

% 3
3'  
 !, !+-
<


á*  11   á*1

c 
<
 --3

 - ###D

 3  -





-


  

  !  

 -


:
3>+- #á 
!


 
#)
3-3
3
 # ! 3:
 
+>+- +,+- #
! +3 +
!
#


!,-
 E
3
1 - ,1>
3
1 - ,#