أخلاقيات العمل Business Ethics

أخواني الأعزاء أعضاء وزوار المنتدى أحببت أن أضع بين أيديكم شيء بسيط عن أخلاقيات العمل والمبادئ واخلاقيات العمل التجارية والعدل والانصاف في العمل وهو مكتوب باللغة الإنجليزية أتمنى الإستفادة والمنفعه للجميع

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Introduction to Business Ethics:

* Philip Wheel Wright says:

Ethics is the branch of philosophy which is the systematic study of selective choice, of the standards of right and wrong and by which it may ultimately be directed.

* Law + Knowledge = Ethics

In any organization from top executive to bottom line employees, ethics is considered as everybody business. It is not just only achieving high level of economic performance but also to conduct one of businesses most important social challenges, ethically at the same time. Here what we get a combination of two familiar words - 'Ethics and Business' in 'Business Ethics'. Different meaning is given to business as follows:

- Business ethics are the application of general ethical rules to business behavior.
- Business ethics are rules of business by which propriety of business activity may be judged.

By Cater Mcnamara - "Business ethics is generally coming to know what is right or wrong in the workplace and doing what is right-this is in regard to effects of products / services and in relationship with stake holders".

"Attention to ethics in workplace sensitizes managers and staff to know they should act so that they retain a strong moral compass. Consequently, business ethics can be strong preventive medicine."

According to John Donaldson- Business ethics in short can be desired as the systematic study of ethical matters pertaining to business industry or related activities, institutions and beliefs. Business ethics is the systematic handling of values in business and industry.


- Business ethics are the rules of business by which the propriety of business activity may be judged.


- Business ethics concentrate on moral standard as they apply to business policies, institutions and behavior. It is a specialized study of moral right or wrong. It is a form of applied ethics.


- Business ethics are nothing but the application of ethics in business. It proves that business can be and have been ethical and still make profits. Today more and more interest is being given to the application of ethical practices in business dealings and the ethical implications of business.

* The 3 C's of Business ethics:

1. Compliance: (The need for compliance of rules including):

Laws, principles of morality & policy of the company

2. The Contribution (Business can make to the society):

The core values, Quality of products/services, Employment, Usefulness of activities to surrounding activities & QWL

3. The Consequences of business activity:

- Toward environment inside and outside the organization,
- Social responsibility toward shareholders, bankers, customers and employees of organization.
- Good public image, sound activity- good image.

* Need of business ethics:

1. Business operates within the society.
2. Every business irrespective of size exists more on ethical means or in total regards to all its social concern to survive long.
3. Business needs to function as responsible corporate citizen in the country.

* Objectives of Business Ethics:
According to Peter Pratley-Business ethics has a two fold objectives-'it evaluates human practices by calling upon moral standards, also it may give prescription advice on how to act morally in a specific kind of situation'.

(A) Analysis and Evaluation:

Ethical analysis and ethical diagnosis of past events, happenings, clarifying the standards, uncover the moral values, habits of thought.

How to evaluate the situation? Ethics provides rational methods for answering the present situation and related future issues. A well equipped information is a must to achieve this second objective, a careful assessment of relevant information will lead to balanced judgments.

(B) Approaches to Resolve Ethical Dilemmas:

It provides therapeutic advice when facing the present dilemmas and future dangers.
Only the condition which requires a true identification of relevant stakeholder and a clear-cut understanding of crucial issues at stake.

* Significance of Business Ethics:

"Good business ethics promotes good business"

Once 'Robert Day' has said that good ethics not only promotes professionalism in management but it purifies the inner mind of every business man.

Another writer Thomas Donaldson (Ethics in business- a new look) has observed that-"there are some key reasons why business ethics is vital and why ethics plays a key role in business."

(1) Positive Consequences:

Business depends on the approval of the society, acceptance of rules, mutual trusts and confidence.

Prof. Robert Day writes- "when ethical conduct is displayed, it puts some kind of trust and confidence in relationship".

So business with ethics always leads to positive consequences.

(2) Goodwill of the Business and Businessman:

Good ethical behavior will increase the goodwill of both business as well as the businessman.

Strong public image is a symptom of success in the long run.

On the other hand, once an organization's image is tarnished it would have direct consequences on sales, profits, morale or day-to-day running of the business.

(3) Protection-Both Sides:

If ethical implications are there in organization businessmen act more sincerely and the level of commitment would be higher. Ethics protects people in dealing with each other.

Prof. Robert Day writes "Good ethics is sound business insurance."

(4) Self-satisfaction:

In the dynamic world, businessmen are seeking self satisfaction, mental relief, free from anxiety, release tension. To attain the inner satisfaction certain people consider only good ethics can promote good business.

As a businessman is first a member of the society than a businessman, so some do not implement a decision which stands on unethical ground because it wouldn't provide the satisfaction to their sub-conscious mind.

(5) Encourage Others:

When a few people start following ethics side by side to profit making, they encourage, motivate others and set examples for them.

As Prof. Learned and Associates writes "Businessman, who follows the ethical principles in the conduct of business, motivates others also, to follow the same principles".

(6) Success and Development:

Ethical conduct of business leads to development and series of success. Learned writes: 'A sincere person who does hard work becomes ethical and always succeed in his efforts but an unethical person cannot'.

(7) New Management:

In the era of global economy, new principles are required in new management. Prof. 'Day' writes that management cannot become a profession so far as it does not follow good ethics.

An important feature of a profession is that it has a laid down code of conduct which remains on all the principles of service to humanity.
So to run the good business in modem scenario you have to develop and follow ethics.


Ethical Principles in Business:

1. Business Ethics are built on Personal Ethics:

There is no real separation between doing what is right in business and playing fair, telling the truth and being ethical in your personal life.

2. Business Ethics are based on Fairness:

Would a disinterested observer agree that both sides are being treated fairly? Are both sides negotiating in good faith? Does each transaction take place on a "level playing field"? If so, the basic principles of ethics are being met.

3. Business Ethics require Integrity:

Integrity refers to whole-ness, reliability and consistency. Ethical businesses treat people with respect, honesty and integrity. They back up their promises, and they keep their commitments.

4. Business Ethics require Truth-telling:

The days when a business could sell a defective product and hide behind the "buyer bewares" defense are long gone. You can sell products or services that have limitations, defects or are out-dated, but not as first-class, new merchandise. Truth in advertising is not only the law, business ethics require it.

5. Business Ethics require Dependability:

If your company is new, unstable, about to be sold, or going out of business, ethics requires that you let clients and customers know this. Ethical businesses can be relied upon to be available to solve problems, answer questions and provide support.

6. Business Ethics require a Business Plan:

A company's ethics are built on its image of itself and its vision of the future and its role in the community. Business ethics do not happen in a vacuum. The clearer the company's plan for growth, stability, profits and service, the stronger its commitment to ethical business practices.

7. Business Ethics apply internally and externally:

Ethical businesses treat both customers and employees with respect and fairness. Ethics is about respect in the conference room, negotiating in good faith, keeping promises and meeting obligations to staff, employers, vendors and customers. The scope is universal.

8. Business Ethics require a Profit:

Ethical businesses are well-run, well-managed, have effective internal controls, and clear expectations of growth. Ethics is about how we live in the present to prepare for the future, and a business without profits (or a plan to create them) is not meeting its ethical obligations to prepare for the future well-being of the company, its employees and customers.

9. Business Ethics are values-based:

The law, and professional organizations, must produce written standards that are inflexible and universal. While they may talk about "ethics", these documents are usually prescriptive and refer to minimal standards. Ethics are about values, ideals and aspirations. Ethical businesses may not always live up to their ideals, but they are clear about their intent.

10. Business Ethics come from the Boss.

Leadership sets the tone, in every area of a business. Ethics are either central to the way a company functions, or they are not. The executives and managers either lead the way, or they communicate that cutting corners, deception and disrespect are acceptable. Line staff will always rise, or sink, to the level of performance they see modeled above them. Business ethics starts at the top.




Utilitarianism of Business Ethics:

Utilitarianism, in a simple definition, can be described as consequentiality, normative theory

According to Fieser, means that “correct moral conduct is determined solely by a cost-benefit analysis of an action’s consequences”


* The basic ethical principle of this theory is of consequences, weighing them up to determine how every person involved in any event, issue, proposal, project and so forth, would be affected. The aim in doing so would be to decide on a morally right action, one that would result in “the greatest overall positive consequences for everyone”

“The utilitarian approach evaluates each action separately and the consequences that arise from it. This analysis would include any ‘harms’ or ‘benefits’ incurred by any people involved in the case.

* In Business Ethics:

In applying utilitarian principles to business ethics, the cost-benefit analysis is most often used – it is a good decision making tool. Companies will attempt to work out how much something is going to cost them before taking action that should, ideally, result in consequences favorable to everyone. That would mean the company could make a profit, while the consumer benefited from their product. Hopefully, products are fit for purpose, safe, and give value for money. No business would attempt a project without evaluation of all relevant factors first, as well as taking other issues or risks into account that might jeopardize success. Ethical business practice, using utilitarianism, would thus consider the good and bad consequence for everyone the action would affect, treat everybody as having equal rights, with no bias towards self, and would use it as an objective, quantitative way to make a moral decision.

In applied business ethics, within the utilitarian theory, many principles exist which may be used to inform the morality of actions when analyzing costs-benefits, or should be, if consequences are to favor more people overall. These include harm, honesty, justice and rights. So no harm should be done to others, people should not be deceived and their rights to life, free expression, and safety should be acknowledged.

Justice & Fairness:

* Justice means giving each person what he or she deserves or, in more traditional terms, giving each person his or her due.

Justice and fairness are closely related terms that are often today used interchangeably. There have, however, also been more distinct understandings of the two terms. While justice usually has been used with reference to a standard of rightness, fairness often has been used with regard to an ability to judge without reference to one's feelings or interests; fairness has also been used to refer to the ability to make judgments that are not overly general but that are concrete and specific to a particular case.

* Principle of Justice:

"Individuals should be treated the same, unless they differ in ways that are relevant to the situation in which they are involved." For example, if Jack and Jill both do the same work, and there are no relevant differences between them or the work they are doing, then in justice they should be paid the same wages. And if Jack is paid more than Jill simply because he is a man, or because he is white, then we have an injustice—a form of discrimination—because race and sex are not relevant to normal work situations.

* Different Kinds of Justice:

1- Distributive justice:

It refers to the extent to which society's institutions ensure that benefits and burdens are distributed among society's members in ways that are fair and just.

2-Retributive or corrective justice:

It refers to the extent to which punishments are fair and just. In general, punishments are held to be just to the extent that they take into account relevant criteria such as the seriousness of the crime and the intent of the criminal, and discount irrelevant criteria such as race.

3- Compensatory justice:

It refers to the extent to which people are fairly compensated for their injuries by those who have injured them; just compensation is proportional to the loss inflicted on a person.

* Fairness and Justice in HR Management:

The care ethical responsibility of HR professional is to promote and faster fairness and justice for all employees and their organizations. The basic intention behind that is to create and sustain an environment that encourages all individuals and the organization to reach their fullest potential in a positive and productive manner.

* Guidelines:

1. Treat people with respect, dignity and compassion to develop an environment which would be free from harassment, intimidation and discrimination.
2. Plan, develop, manage and advocate policies and procedure that foster fair consistent and equal treatment to all.
3. The organization's decision legal and ethical irrespective of personal interests must be supported.
4. Each individual has some uniqueness & intrinsic worth, so respect for it.
5. An inclusive approach in the organization should be followed which ensure that each and every one in the organization has an opportunity to develop the skills
6. If the organization deals in international businesses then sound management practices with full of responsibilities should be shown.