Factor influencing Business Ethics

Business Ethics is quality of being useful or desirable. It is commonly used to all things which people regard as good, desirable and just. We generally make value judgments on many matters like good, skilled, unskilled, bad etc. The statements are comparative. We have few terms generally used with different meaning at times not correctly.

These words and their means are:

(i) Norms:

Norms of expectations of a proper behaviour in a society. These are not requirements or must. Example: We in India treat elder with respect. When we address our teacher we say ‘Sir’.

(ii) Beliefs:

Ethical codes of thought. Belief is an abstract thinking process. Here there is no action as in norms. Beliefs support norms. Example: Thinking saving money, or energy.

(iii) Ethos:

Characteristics of a community or of a culture. Code of values by which a group or a society lives. Example: Generosity of a group.

(iv) Moral:

Concerns regarding principles of right and wrong. Example: It is always right to tell truth.

(v) Morality:

It is the standard that an individual or a group that knows that is good, what is right and which is proper. Example: Since last decade political morality is decreasing in India.

(vi) Moral norms:

Are expectations of society a level of morals in the society. Example: Do not harm innocent man.

(vii) Moral values:

Are desired level of morals. Usually these are statements, regarding describing moral features. Example: Honesty is best policy.

(viii) Moral behaviour:

Moral behaviour is a study of right and wrong in human behaviours.

Values of managers:

Business is driven by values. Values guide what a business manager should do and how the stakeholder reaction to these action. Following a set of good values a value system can be built in the organisation business thus can create good, services, employment of larger value.

A manager while accepting the values the considerations are:

(a) The values should be universal.

(b) Maximum good to greatest number of people.

The manager should be pragmatic in his approach. This comes by his experience and skill in knowing as to how a decision works in a given situation. Manager should have a feel of what is good for highest number. Manager should also evaluate the value built up in his control.

Some Factors

The individual’s personal code of behavior: The personal Code of Behavior is the result of the complex environment that influences one’s life.

The ethical standards imposed on a manager by his superiors also influence him in his decisions as to the morality of behavior. If the superior condones unethical activities such as padding expenses accounts, the subordinate is encouraged to look upon this activity as an acceptable practice.

The policies of the company also influence the determination of ethical conduct. Standards of behavior in an industry are often influenced greatly by the dominant firms in that industry. The authors of the company policy obviously have an effect that is decisive.

The ethical climate of a country. If, it is poor, then only giant corporations and large undertakings can stand competition and be viable; a small concern is apt to go bankrupt, since business is concerned with employment of a large number of persons, it has the obligation to see that it adheres to an ethical atmosphere. However, considerable differences occur among managers as to what is ethical or unethical; and business truly lacks a Code of Ethics.