Ethics & Morality

Prof.Abhinav Trivedi

Ethical Behaviour
As we know that the Ethical behaviour of an individual is decided by his/her moral behaviour (individual behaviour). So the ethical behaviour if an individual is determined by: 1)Individual : basic nature of a person, his beliefs, upbringing and family environment directly affects the behaviour, self actualization.

2) Groups & Communities : Each & every community has its own ethical & moral approach like nature of work, vision, aim etc. 3) Cultural Environment : Which comes from Upbringing culture, Educational culture, Religious beliefs, Neighbours etc.

4) Organizational Environment : Which comes from Ethical Codes, Role models, Practices , Rewards & punishment etc.

5) External Environment : Which are outcomes of political, Legal ,Economical Practices & developments.

Relation b/w Business & Ethics

As we know ethics is based on : Normative standards. Philosophical standards. Business world mostly prefers Normative ethics & have to develop strategies to maintain proper balanced relation between Moral demands and Business strategies & Individual Behaviour.

Relation b/w Business & Ethics (contd..)

There are three different views which defines the relation between business & ethics :

1. The Unitarian View. 2. The Separatist View . 3. The Integration View.

The Unitarian View.

According to Unitarian view there should be one unique rule for society. This view states that business is only a sub-component of the moral structure of society and Business & morality cant be separated and business must follow the rules & trends of society. According to this view the purpose of business is only to serve society and it should conduct its actions through unselfish goals and have to avoid profit for society

The Unitarian View (contd)

Society & Moral Community

Business

The Unitarian View

The Separatist view

This view is totally opposite to the Unitarian view. According to this view the only goal of business is to just generate revenue and maximize profit to its stakeholders and there should be no interference of morality and ethics in business i.e. the business should be totally separated from socio-cultural affairs.

The Separatist view

Business

Society & Moral Community

The Integration view

This view was given by parson who describes that business is a separate system but it has to be controlled by the Norms of society and these norms have to be practical not to be based on direct moral appeals.
Business
Norms

Society & Moral Community

The Social Contract Integrative Theory

This theory was given by THOMAS DONALDSON & THOMAS DUN FEE. According to this theory, A social contract is a type of informal agreement concerned with the behavioural norms which are introduced for social beliefs, shared goals and attitudes of Communities & groups of peoples. This theory says that, a productive organization is one which ensures customer satisfaction, protects rights & interests of its employees and increase the welfare of the society.

Elements of Social contract theory

1) Hyper norms : These are universal norms which are applied equally to the whole organization. hyper norms include basic human rights, personal freedom, informed consent, physical security etc. 2) Macro Social norms : They provides global norms e.g. local communities must be allowed moral free space. All these macro norms must be compatible with Hyper norms.

Elements of Social contract theory

Micro social norms : These norms are developed at community level or group level to control the activities so that there should be no conflict with Hyper norms .

Ethics & Decision Making

According to the decision process model Ethical decision making of an individual is the outcome of :

Personal Traits Values Organizational Traits

Personal Traits : Business decisions are made by individuals or by committees, thus the ethics of business in reality is the ethics of the individuals. A persons ethics are influenced by his personal traits like personal ego, field experience, locus of control, moral development etc.

Values : A value is a belief on which a man acts by preference. A value is a prescriptive belief about right or wrong. Human values may be based on rules and are referred to as deontological or may be based on the perceived outcomes and are referred to teleological beliefs. Values can be divided into two classes : 1) Instrumental values 2) terminal values

Instrumental Values : these are those values regarding the way we approach end states. Instrumental values are related to the means for achieving desired results Instrumental Values : Assertiveness, hard work, obedience, Truthfulness, Good manners etc.

Terminal Values : Terminal values refer to beliefs about ultimate good or end results.

Terminal Values : Satisfaction , pride in accomplishment, Peace and harmony, Recognition, security etc.

Organizational Traits : The underlying organizational values and traits are the core of the firms traits like : Truth and respect individuals. Focus on high level of achievement and contribution. Conduct business with integrity. Achieve common objectives through team work. Encourage Flexibility and innovation.

Balanced Concept of Freedom

Human is always superior to other living beings and some factors supports this fact like Thinking & brain power. Development of skills & mental abilities. Educated & trained. Development of language & Symbols. Humans are culturally shaped. Human organize themselves according to rules.

Balanced Concept of Freedom

Freedom is the ability to choose autonomously while considering the given circumstances (both internal & External) with its opportunities and limitations. Balanced concept contains the liberty to think, behave and perform with fundamental aspects like responsibility, accountability and commitment towards society i.e. this liberty should not affect the framework and set norms of society & organization.

Balanced Concept of Freedom

The most important ability of human is making choice freely. Balanced Concept of Freedom includes two basic assumptions for free choice : 1) Individual actions are the results of personal choice or deliberate will i.e. we are responsible for our actions. 2) Second constituent emphasizes the importance of making a well informed choice according to the circumstances.

We can achieve balanced concept of freedom by : 1) Educating people & individuals and making them aware about their responsibility towards society. 2) Initiative from every individual to contribute.