Ethics

SBUSN 6010 - ETHICS AND CORPORATE RESPONSIBILITY

INTRODUCING BUSINESS ETHICS

What are ‘Ethics’?

A branch of philosophy concerned with human conduct: - Specifically the behaviour of individuals in society and it examines the rational justification for our moral judgments.

What are Business Ethics?

Business Ethics: is the study of business situations, activities, and issues in which a good or best decision needs to be made.

Definition: Morality, Ethics - Ethical theory

Morality is concerned with the norms, values and beliefs embedded in social processes which define right and wrong for an individual or a community

Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for any given situation

These rules and principles are called ethical theories which are rules and principles that determine right and wrong for any given situation.

The relationship between morality, ethics and ethical theory

Ethics rationalizes morality to produce ethical theory that can be applied to issues i.e potential solutions to ethical problems.

Why are business ethics important?

• Power and influence of business in society

• Potential to provide major contribution to society

• Potential to inflict harm

• Increasing demands from stakeholders

• Lack of business ethics education or training

• Continued occurrence of ethical infractions

• Evaluating different ways of managing business ethics

• Interesting and rewarding

The Role of Ethical Theory

Ethical absolutism claims there are eternal, universally applicable moral principles

• Right and wrong are objective qualities that can be rationally determined

• Typically traditional ethical theories

Ethical relativism claims morality is context dependent and subjective

• No universal right and wrongs that can be rationally determined

• Depends on a person making the decision and culture in which they are located

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