Ethics in Business: Answering the call

Group Members: Sadaf Naz Samina Khan Aimen Sajid Sunya Ramzan

BB-09-21 BB-09-33 BB-09-51 BB-09-95

Introduction
Are higher standards than the law needed? Can religious beliefs be used as possible higher standards for business ethics?
Which elements of modern corporate culture need to be modified to attain higher level of morality in business?

Ethics in Business
Business Ethics is a subfield of Ethics

Standards of Business Ethics vary from culture to culture Concept of Business Ethics is not new, Adam Smith wrote a book namely The Theory of Moral Sentiments

Standards of Ethical Behavior

1

Law Organizational Policies Professional and Trade Associations Communitys idea of Morality Individuals own perception about ethics

The Role of Law

Laws act as contractual framework within which businesses operate Whether law is necessary and sufficient standard of business ethics? Are there higher standards of morality which must also be met?

Levels of corporate responsibility

Economic responsibility Legal responsibility Ethical responsibility

Social Responsibility Strategy

Obstructionist strategy

Defensive strategy

Accommodative strategy

Proactive Strategy

The Role Of Religion

What is role of religion? Theories demonstrating the role of religion. Baelz theory. Zinbarg theory. Stackhouse concept about role of religion. Summarization of concept.

Corporate Bureaucratic Culture

H.Whytee published the book The Organization Man. Noceroopinion about the William H.Whytee book Jackall undertook in depth case studies of three large American for profit corporations.
William

Some of the concerns expressed by Jackall in his book:

1.Corporations are persons only in a legal sense. 2.Business organizations are typically established to make a profit, this can affect their moral culture 3.Most large business corporations are organized by bureaucracies, this tends to distribute authority in ways that may be counterproductive

4.Business managers, particularly those at the middle levels and below have little control over their own time 5.Many corporate managers have a very short term time perspective 6.Problems of psychological distance and multiple stakeholders also diffuse responsibility within the bureaucratic business firm

Results from weak organizational cultures where ethics is not properly emphasized
The types of misconduct most observed include abusive behavior, misreporting hours worked etc.

Employees in transitioning organizations observe misconduct.

Proportion of employees satisfaction . Despite of increase in reporting of misconduct, still some non-management do not report the misconduct

Creating an ethical organizational culture

Adopt a code of ethics. Provide ethics training. Hire and promote ethical people. Correct unethical behavior. Take a proactive strategy. Conduct a social audit. Protect a whistle blowers. Empower the guardians of integrity.

Demonstrating CSR
What is CSR? SEVEN internal responsibilities. SEVEN responsibilities from outside business. Novak vision of CSR.

Providing servant leadership

What is servant leadership? Autry six ideas about servant leadership. Leadership is not about controlling people, it is caring for people. It is not about being a boss , it is about serving people. It is not about holding of a territory, it is about letting go of ego. Creating a good place for work. Matter of paying attention.