Ethics in Business,

Government & Society

Gurparkash Singh

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Focus of the course
Managerial approach with emphasis
on
Use of frameworks & tools to manage
ethical issues
Appreciating the BGS relations;
Corporate governance theme; and
Social responsibility theme.

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 What is the Business
Government Society Field?
Business broad term encompassing a
range of actions and institutions.
Government refers to structures and
processes in society that authoritatively
make and apply policies and rules.
Society a network of human relations that
includes three interacting elements:
Ideas
Institutions
Material things
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Ethics: An Introduction

The word Ethics is derived from the

Greek word Ethikos (or ethos)
meaning custom and Latin word
mores meaning character.

It is the science of morals describing a

set of rules of behaviour.

Involves determining what is right and

wrong, and then doing the right thing.
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Introduction to ethics
What does right really mean?
How do you know when something is
truly right or truly wrong?
Why do peoples views on what is
right and wrong differ?
Why emphasis on ethics?

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Ethics & morals
Morals
A societys rules of conduct
What people ought / ought not to do in
various situations
Ethics
Rational examination of morality
Evaluation of peoples behavior

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Sources of Morals

Regions of
Fellow Workers Social norms
Country

Family Profession
An Individual
Conscience
Friends Employer

The Law Religious

Society at Large
Beliefs

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Developing Moral Judgment
 Ethics in Business, Govt. &
Society : A real-life scenario
Ganga Expressway case: a 1047 km access
controlled eight-lane expressway running
along the Ganges & provide a flood control
embankment
Perspectives of actors:
A farmer along banks of Ganges whose land is
being acquisitioned
The interests of the highway construction company
Environmentalist groups
Politicians
Higher level view of economic development
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What do you think is the right
decision in Ganga expressway
case?
Ethics & the Law
Law often represents an ethical
minimum
Ethics often represents a standard
that exceeds the legal minimum
Frequent Overlap

Ethics Law

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 Ethics & Law
Both define proper and improper behavior
Laws are societys attempt to formalize
ethical standards
Ethical concepts are more complex than laws
Often apply to areas not covered by laws
Some businesses proactively address ethical
areas not covered by law through voluntarily
adopted practices
Managers who are trying to improve their
companys ethical performance need to do
more than comply with laws
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 Ethical issues in India

Bribery
Corruption
Black money
Coercion
Insider trading
Tax evasion
Conflicts of interest
Pollution & so on

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What is business ethics?
Business ethics is the application
of ethical ideas to business
behavior.

Based on the principle of integrity and

fairness and concentrates on the
benefits to the stakeholders, both
internal and external.

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Ethics & Business Ethics:
What Does It Really Mean?
Normative ethics
What is right
Focus on determining right course of
action
Business (applied) ethics
What should be done
Focus on how ethical and socially
responsible outcomes can be achieved in
specific situations

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What is NOT business
ethics?
1. Ethics is different from religion
2. Ethics is not synonymous with
law
3. Ethical standards are different
from cultural traits
4. Ethics is different from feelings

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Why Ethical Problems
Occur in Business

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Importance of Business
ethics (1)
Meet demands of business stakeholders
Considering the environment, employee
well-being, and the interests of society and
the community.
Enhance business performance
Research shows linkage between ethically
responsible behavior and favorable
corporate financial performance
Imparts trust, promoting positive alliances
among business partners

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 Importance of business
ethics (2)
Comply with law and regulations
Prevent or minimize harm
To promote personal morality
Knowing one works in a supportive ethical
climate contributes to sense of
psychological security
People want to work for companies that
do the right thing

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 Why is the BGS Field Important to
Managers?
To succeed in meetings its objectives a business
must be responsive to both its economic and its
noneconomic environment.
Recognizing that a company operates not only
within markets but within a society is critical.
A basic agreement or social contract exists
between the business institution and society.
Managers must respect and adhere to societys
expectations.
This contract defines the broad duties that
business must perform to retain societys
support, but these duties are often ambiguous.

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