1

Introduction to Ethics
(Unit 1)

LntroduciiontO
UNIT 1

ETHICS
1.1.1. Meaning and Definition of Ethics to

Greek word ethhos", refers

which
The word "ethics" is derived from thc
character. guiding beliefs, standards or ideals
that pervade a group, communiy o
their community for their behaviou
people. Ali individuals are accountable to
Tine community can exists in forms like neighbourhood,
profession, City, sta
etc. Fthics separate good and bad, right
and wrong, fair and unfair, moral a
code oi
imoral and proper and improper human action. In short,
ethics means a
conduct. It tells a person how to behave with another person.

course of action.
Ethics is a requirement for human life. It is a mean of deciding a to
be no way
Without it, actions would be random and aimless. There would
a limitlesSS
work towards a goal because there would be no way to pick betweer
numbers of goals. Even with an ethical standard, pcople may be unable to pursue
a rational ethical
goais with the possibility of success. To the degree which actions to
standard is taken, people are able to correctly organise their goals and
reduce one's
accomplish their most important values. Any flaw in ethics will
ability to be successful in his endeavours. Thus, ethics is a set of standards,
ora

code, or value system, worked out from human reason and experiencoe, by which
free human actions are determined as ultimately right or wrong, good or evil.

According to Webster, "Ethics is the discipline dealing with what is good and
bad and with morai duty and obligations".

According to Philip Whect Wright, "Ethics is a branch of philosophy which is

the systematic study of selective choice of the standards of right and wrong and
by which it may be uitimately directed".

1.1.2. Nature of Ethics

Nature of ethics includes:
1) The concept of ethics is applied to human beings oniy as they have
of choice and nieans of free will. They can only decide the
freedom
degree of enda
they wish to pursue and the means to achieve the ends.
2) There was an argument whether ethics 1s a
Were af the opinion that
ethics is more a
sCiCnce or an art. But exnerte
SClenee tnan an art. Because it is a
systematic knowledge about moral benaviour and
conduct of hnuman
beings.

-****:

:
 DIiSinesS thics Introductior to Ethics (Unit 1)
3) Ethics deals with
human conduct whiclh is voluntary not forced
circumstances humans. It can be said that at ground levei, ethics deals by
or
medication because the medication wil! prolong her life. In this
sitituata
moral judgement with the physician uses his or her authority to manipulate the
regarding set directed human conduct.
4) The science of ethics is a normative the treatment that will beneiit him or her best
patient to ch
science. It is a search for an ideal litmus medically. One drawh
test of
proper behaviour. Normative science involves of this principle is that the paternalistic figure may not have the s
standards that regulate right and ariving at moral ideals as the dependent person and will deny the patient's
wrong conduct. autonony
ability to choose her treatment. This, In turn, leads to a decreased ano
1.1.3. Principles of Ethics of beneficence.
Various principles
of ethics
1)
are as follow: ii) Libertarian View: A second way in which to View the
Beneficence: The respect fo
what is good. This principle to beneficence guides the ethical theory to do
of autonony is the libertarian view. This standpont priontises tive paient
priority "do good" makes an ethical wishes over their best interests. This means that the
patient has contrd
possible solution to an ethical dilemma perspective and
related to the acceptable. This principle is also
principle of utility, which states that one should
over her ife and should be content with her
qualiiy ot liie because she
has chosen the path of life with the
generate the largest ratio of attempt to greatest anount of personal
principie stipulates that ethical good beneficence. Although this vicwpoint is more mindfui of the
over evil
possibie in the world. This patient's
theories should strive desires, it does not prevent the patient from making decisions that
amount
of good because people benefit from the most to achieve the greatest more harnful than beneficial.
niay be
mainly associated with the utilitarian ethical good. This principleis
good" is found in the theory. Ar example of "doing 4) Justice: The justice ethical principle
practice of niedicine
individual is bettered by treatment in which the health of states that etihical theories should
from a physician.
an prescribe actions that are fair to those involved. This means
that ethical
2) Least Harm: This is similar decisions should be consistent with the ethical
to beneficence, bui deals theory unless extenuating
circumstances that can be justified exist in the case. This also means
which neither choice is with situations in that
the
beneficial. In this case, a
person should choose cases with
extenuating circumstances must contain a significant and vital
least harm possible
and to do harm to the fewest do
to
the people. For example, in difference from similar cases that justify the inconsistent decision.
"do
Hippocratic Oath,physician is first charged with the responsibility to
a
decision that contains justice within it has a consistent
An ethical
no harm" to the
patient since the physician's primary duty is to logical basis that
provide supports the decision. For example, a policeman is allowed to
helpful treatment to the patient rather than to inflict more highway if he must arrive at the scene of a crime as quickly as specd on the

patient. One could also reasonably argue that suffering upon the order to prevent a person from possibie in

responsibility to "do no harm" than to take steps people have a greater

to benefit others. For
getting hurt. Althougth the policeman wouid
normally have to obey the speed linit, he is allowed to speed in this
example, a person has a larger responsibility to simply waik situation because it is justified under the inique
rather than to punch a past a person extenuating circumstances.
person as tdhey walk past with no justified reason.
3) Respect for Autonomy: This principle states that an ethical 1.1.4. Types of Ethies
allow people to reign over themselves and to be able theory should Ethics is concerned with questions of how
to make decisions that people ought to act, and the seaIch for
apply to their lives. This means that peop!e should have control over their a definition of
right conduct and the good life (in the sense of a life worthh living
lives as much as possible because they are the or a life that is
only people who completely salisfying or happy). Ethics is not limited to specific ects and
understand their chosen type of lifestyle. Each man deserves defined moral codes, but
respec: because encouipaSses the whole of moral ideals and behaviours,
only he has had those exact life experiences and understands his er:1otions. a
person's philosophy of life.
motivations and body in such an intimate nmanner. In essence. tliis ethical Ethics is usually broken down into four
principle is an extcnsion of the ethical principle of beneficence borause a types
1) Nermative o: Prescriptive Etaies: Nornative ethies
person who is independent usually prefers to have contro! over his life attempts to aswer
experiences in order to obtain the lifestyle tlhat he enjoys.
specific 110ral questions concerning what people should do or believe
Normative refers to norms or guidelines and is often used
with the word prescriptive. It involves
interchangeabiy
There are, however, looking at the respect for autonoiny:
two ways of arriving at moral standards that
i) Paternalistic Viewpoint: in the regulate iiglht and wrong conduct. In a sense, it is a search for an ideal itmus
paternalistic viewpoint, an authority test of proper behaviour.
priorntises a dependent person's best interests over the dependent
person's wishes. For example, a patient with terminal cancer may prefer For
to live the rest of her life without the medication that makes her xample, pecople should do to others what they would want others to do
With them. When a businessman wants others to use fair means to win te
constantly ill. The physician, on the other hand, may convince the patient
and her family nembers to make the patient
continue taking
her competition, then he should also follow the same. Based on this golden rule.
It would also be wrong for to lie, to harass, victinise, assault, or kil! others
 7
The key assumption in normative cthics is that there 1s only one ulimate
criterion of moral conduct. whether it is a single rule or a set of principles.
Descriptive ethics addresses questions such as
i) How do people validate ethical
claims and
Prescriptive ethics also includes evaluating moral standards to deterninc
ii) How do the ethical standards of cultures obligations?
whether they are justifiable as well as creating and improving moral
ii) How do people actually respond to ethicalcompare?
standards with more igorous reasoning. In either case, the philosopher is
iv) What motivates people to follow the rules? dilemmas?
criticaly investigating the naturc and grounds of moral standards, moral
v) How do people choose between
principles, moral rules, znd moral econduct. competing ethical norms?
3) Applied Ethics: Applied ethics is a discipline of
Everyone is a moral agent; people cannot avoid the fact that their decisions philosophy that attempts to
apply ethical theory to real-life situations. Strict.
and actions have moral conscquence. In a diverse,
pluralistic business principle-based ethical
approaches often result in solutions to specific problems
cnvironment, the mnoral consequence ot those deCisions and actions that are
be unifornmly understood. When people are
may not universally acceptable or impossible to implement. Applied ethics, whichnot
part of an organisation, the the study of how 1S
morality of individuals has an impact on the moral agency of the varying
ethical theories can be used in sprcific, real-world
situations. Applied ethics is much more ready to include the
organisation. Prescriptive is a means for reasonable people to examine moral insights of
dilenmmas together and develop guidelines for both individual psychology, sociology and other relevant areas of knowledge in its
and collective deliberations. It is used in determining public policy.
moral agency that can be considered
valid from múltiple moral
standpoints.
Organisational leaders play a crucial role in establishing an environment It is used to describe attempts to use
philosophical methods to identify the
conducive toeffective moral agency. morally correct course of action in various fields of human life. For example,
Questions of normative or prescriptive ethics include: Bioethics is concerned with identifying the correct
approach to matters such
i) What constitutes a legitimate moral claims or as
euthanasia, or the allocation of scarce health resources, or the use of
obligation?
ii) How is the legitimacy of moral claims determined? human embryos in research. Environmental ethics is concerned with
ii) What is right and wrong? Good and evil? How arc questions such as the duties of humans towards landscapes or species.
iv) What is good and evil? they related? Business ethics concerns questions such as the limits on
managers in the
pursuit of profit, or the duty of 'whistleblowers' to the general public as
v)What is the authoritative source of
normative rules? opposed to their employers. As such, it is a study which is supposed to
2) Descriptive Ethics: Descriptive ethics is defined as the involve practitioners as much as
related to the specific ethical actions of an individual or
presentation of facts professional philosophers.
concerned with describing,
organisation. I is
characterising, and studying the morality of a Applied ethics is distinguished from normative ethics, which concerns what
people, a culture, or a society. It also compares and contrasts different moral pcople should believe
to be right and wrong, and from meta-ethics, which
codes, systems, practices, beliefs, and values. In descriptive business Concerns the nature of moral statements.
ethics
therefore, the focus is on learning what is occurring in the real of behaviour,
actions, decisions, policies, and practices of business organisations. An emerging typolo8y for
applied ethics uses six domains to help improve
managers, or specific industries. organisations and social issues at the national and global level:
i) Decision ethics, or ethical theories ánd ethical decision
The category of deseriptive ethics is the easiest to understand it simply processes,
ii) Professional ethics, or ethics to improve
how professionalism,
involves describing people behave and/or what sort of moral standards iii) Clinical ethics, or ethics to improve our-basic health
needs,
they claim to follow. Descriptive ethics incorporales research from thhe fields iv) Business ethics, or individual based morals to improve ethics in
of anthropology, psycihology, sociology and history, as part of the process of
understanding what people do or have believed about moral nornus. It also
organisation
an

v) Organisational ethics, or ethics

among organisations, and
studies the codes of conduct created by professional organisations to regulate vi) Social ethics or ethics among nations and as one
the conduct of menmbers. global unit.
4) Meta-Ethics: Meta-ethics is the study of
Descriptive ethics is sometimes referred to as comparative ethies because it just what "ethics" means and to
what degree ethical claims are ever be
often involves comparing ethical systems comparing the ethics of the past justified (and how). Meta-ethics is
concerned primarily with the meaning of ethical
-

to the present; comparing the ethics of one society to another; and comparing
understand the nature of ethical properties, judgements, and seeks to
statements,
judgements and how they may be supported or defended. Aattitudes, and
the ethics which people claim to follow with the actual rules of conduet
which do describe their actions. Descriptive ethics may identify and try to
theory, unlike a normative ethical theory, does not meta-ethical
explain discrepancies between what people claim to believe about morality attempt
specific choices as being better, worse, goOd, bad or evil; to evaluate
and what they actually do in making moral choices. define the essential rather it tries to
meaning
and nature ot the problem being discussed
 assumptions the general guidelines within which mane
provide
eta-ethics is reasoning
about ethics
and the underlying
ethical standpoints
2) Business ethics can
however, offer aiternatives to choose
anagem
fro
moral rules and can operate. Values,
and pre-suppositions) of for establishing as a business policy is optional. An entreprenear.
PCises process philanthropy
ethics). The reasoning example,
or may not possess this value and still remain within the limits of hue.
usine
Ommatuve o r descriptive normative ethies but it is also seen by
moral rules and positions is part of
questions mcude: that vary among managers in an organis
of its own. Metá-etiical
etbical domain ethics. It is values, therefore,
many as an
be a source of contlict at the time of bus
i) Is there an objective morality? and such a variance may busime
1i) What is the role of religion in morality? formulation and implemer'ation.
strategy
111) What is the value of morality? Why be
oral? set which impacts the lenses through which the
3) Every person has a value
independent moral judgements? turn to their value when making decisiom
V) How free are individuals to make view the world. People often
in a person's life. Societies also ha
v)What is the basis of moraljudgement? These values are the guiding principles
of its people and the laws which the
a value which guides the direction
1.1.5. Values and Ethics intact.
or of a nation are examples of ethi
Values canbe defined as broad preferences concerning appropriate courses or The rules a company adopts, or thhe laws
on a set of core values tha: as
action or outcomes. As such, values reflect a person's sense of right and wrong codes of conduct. Ethical decisions are based
what "ought" to be. Values are so embedded that they can be rather or not an individual «
inferred from codified. Ethical behaviour is then determined
people's behaviour and their perception, personality and motivation. They group lived upto the code.
Ethics is generally referred to as the moral code i
generally influence their behaviour. Values are relatively stable and enduring. a person or group.
This is because of the way in which they are originally learnt. Values relate to hold to be important to them. A person's value is
ethics. Individually or organisationally, values determine what is right and what is 4) Values are also what people
sometimes can conflicd
often complex. In a society there are many values that
wrong, and doing what is right or wrong is what we mean by ethics. behave
is moral.
To with one another. In order to have a more orderly society
or organisational

ethically is to behave in a manner consistent with what right or

ethics is used to create a c o m m o n value that can apply to an organisation as a
Ethics influence the value in various ways. The ethics normally set a standard on whole
The
the behaviours of a person. These are the foundation of
both
personal values.
are based on morality. The one
Ethical code is based on the values that are considered to be important. Therefore,
relationship between ethics and value is that
it can be argued that ethics is the development of that serves to protect
a person or
which proceeds is ethics because it makes up the value.
groups core values.

A vaBue educates and guides the behaviour of those who work within an
An organisational 1.1.6. Importance of Ethics
organisation is common, and some organisations have both.
mission and the important objectives of the organisation. Just Importance of ethics is explained below:
value identifies the
as individual values infiuence one's ethics,
an organisationa! value influences the 1)Corresponds to Basie Human Necds: Ethics corresponds to basie hunan
ethics of the organisation's nembers. needs. Most people want to be ethical not only in their private lives but also
in their business affairs. They want to be a part of the organisation because
adhere. but therc is a difference they perceive its purpose and activity to be beneficial to society. Tie besie
Each person has a set of values to which they
the used intechangeably with each other, ethical needs are probably one of the most convineing reasons for ethical
between the two. Often times two are
differences that are importan! to understand. While concern on the part of organisations.
but there are significant
related and come together to form
values and ethics are different: they are closely 2) Helps in Better Decision-Making: Tthics helps in better decision-niuking
the basis of decision-making for nmost people.
Ethical decisions made by the company will always be in the interest or the
shareholders, others stakeholders. public, and their cnployees. This
Relationship between Values and Ethics because respeet for ethics will force the management to consider all aspoos
is as follows:
Relationship betwcen values and etlhies given of a question - economic, social, and ethical.
in nature as values are the fundamental beliefs that an
1) Values are persorial
individual o r group holds to be true (e.g., a belief
in providing customer 3) Inhibits Chances of Errers: First and foremost, ethical norms help
a generalised value gaining knowledge, analysing the truth, and avoiding any chances of erroo
satisfaction and being a good paymaster) while ethics is
as ethics are the more formalised
rules or guidelines of an organisation or while examining any given circumstance or situation. Thus, ethics are mo
and adopting fair efficient for avoiding errors and prohibiting against fabricating.
society. (e.g., avoiding discrimination in recruitment faisitying
business practices). misrepresenting any data.
 20
Business tlhics
4) Enhances Cooperation: Wotking in any organisation or Introduction to Fthics (Un
workplace demands
great deal ot cooperation and coordination amongst people at different
different fields. As such, ditferent values are levels and 5) Pressure: Pressure can drive 21
promoted and shared amongst these Pressure to succeed, people to do things they would not
people. such as tmust, accountability, munual respect, and fairness. These pressure to get ahead, pressure to normally do.
contnbute to better and unproved working conditions, only
growth, and success in turn.
expectations. pressure from co-workers, meet deadlines and
bosses, customers, or
engage in unethical activities
atleast look the other
or vendors to
Assists in Dealings: The ight sense of way.
thinking can help us deal with people 6) Misguided Loyalty: It is another
on a
daily basis in. the night and positive manner. The for unethical conduct on
approach and wrong sense can only induce absence of the right People sometimes lie becausc they reasonthink in doing so the job.
affecting negative feclings, thercby the
organisation or to their bosses. they are being loyal to
our comnunication with people
well, Ethics, which are
as Examples of this of
trust. help treating everyone as the children of God and
in built on hard to find. For
example, managers at autornobile type behaviour are not

Hence. ethics that we pass onto others

reveals the correct
love everyone. falsify information about defects that later cause companies who hide or
accidents and kill
6) Promotes Moral and Social Values:
way of living. managers at
pharmaceutical companies who hide informationpeoplc or
about
Ethics, are considered to be of dangerous side effects of their drugs. No doubt
these managers believed
importance simply because tlhey assist in promoting other utmost were protecting their
employers. They may well have seen themselvesthey
and social values. As such,
values like social significant moral good, loyal employees. as
animal welfare, responsibility, human rights,
compliance with the law, and health and 7) Lack of
supported through practicing proper ethics. Any flawsafety,
are
in
are some that Knowledge:
not sure about
Some people make unethical choices
because they are
reduce our ability
achieve success in our endeavours.
our values will what really is the right thing to do.
to Often, ethical problems are
person who fabricates data in a clinical trial can harm
For example, a complicated, and the proper choice
may be far from obvious.
or even kill
patients.
1.1.7. 1.1.8. Relationship Views on Ethics and Business
Causes of Unethical Behaviour
People People are under the
notion that business and ethics are
unethically for a number of reasons. Unethical behaviour is
act
incompatible, it is. not
easy to establish a relationship. Classical thinkers like Adam
behaviour that contravenes rules defined as Smith were of the
a situation.
designed to maintain the fairness and morality of opinion that the objective of any business was to generate
An example of unethical behaviour is a
representative of a company business had no relationship with ethics. profits only and
taking kickbacks from a salesman for preferential treatment. neither the business was an extension of
While other thinkers expressed that
iS motivated Behaviour like this morality and ethics, nor can business
by various reasons, some of them are as follows: keep it faraway from ethical practices of the society where it exists and
)Greed: One of the main causes of unethical behaviour is operates.
often chooses to act immorally or greed. A person
unethically for personal financial gain. In Later economists like Milton Friedman and
Talcott expressed different
business, there are a number of opportunities for employees and about the relationship between ethics and business. views
do the wrong
to employers ) Unitarian View of Ethics:
The result was-
thing. For example, an employee who has contact witlh a client According to this 'view, business is a part o?
may be willing to give them a discount in cxchange for a kickback. An moral structure and moral ethics
(figure 1.1). If businesses want to exist,
employer may have an opportunity to sell the company's stock when he has survive and flourish in the
long-run, morality and ethics cannot be separatecl
inside information about a drop in from the operation of the business. This view
profit. also emphasises, that business
should concentrate on society and it has a role to play in serving the
2) Environment: Sometimes, a person acts unethically in busincss because his
society and ushering in society we'fare.
major
cmployer condoncs the belaviour. For examplc, in the late 1990s, raders at
Ennon c0nducted trades thal cost the state of California millions of dollars in Moral Structure
electricity payments. This was uncthical, but the behaviour was so common
on the floor that it
trading was never questioned. Business

3)Carcer Advancement: A person acts unethically because she believes it Moral Ethics
helps her career. An unethical act is used as a means of inmpressing a superior
or hurting the career of a competitor. For example, a person sabotages a co- Figure 1.1: Unitarian View of Ethics
worker's project as a means of making herself look better in comparison.
2) Separatist View of Ethics: Classical economists like Adam Smith
4) lgnorance: violations are not always transparent, and it is easy
Ethical conflicts or
Milton Friedman proposed the separatist and
view. They were of the
for employee to perform an unethical act without knowing it. For this reason, it
an
that businesses in order to flourish should concentrate
on its
opinion
1s
importarnt for companies to make enployees aware both of the company's maximisation. Morality and ethics, they argued has no role goalin
profit
general ethics policy, and speçific examples of ethical and unethical behaviour.
(figure 1.2) business
 Business Ethics Introdu:tion to Ethics (Unit 1)

MORAL ANDETHICS
Busness
H Ethics
1.2.1. Introduction
"Moral or 'Morality' comes from the Latin word 'moralis' which
nich 1sis more
Socicty concerned with what is believed as good and evil (bad) or, righl and
wrong, Th
term moral implies conformity with the generally accepted standards
Figure 1.2: Separatist View of Ethics or rigktness in conduct or character: moral is
of goodnes
generally used to describe who
Milton people are, e.g., a moral person.
was of the
opinion that business should concentrate on
distnbution of goods and services. Social production and In other words, people's norals are those principles and values that
gOvermment and concerned individuals, but notproblems are to be tackled
by the have
by the firms or businesses. In internalised. Morals are autonatic responses to situation. They are a
short. the only aim of part of wha
business is to generate profits. they are and their unique personality. People make moral decisions without a lot of
Many inteilectuais believe that if ethics and thought bccause they are based on the principles and values they believe in most
opportunity to enter into
morality were given an
the business arena, then there is a deeply. Pcople learn morals from parents, teachers, religious leaders, friends, and
vaiues
dominating over business values and this danger of social experiences, and they provide the context or framework for the moral actions.
efficiency of the business. replacement may uin the
These inteliectuals also believed that
According to Hegel, "Morality is an internalisation of values and external
business should concentrate on relations". legal
and
managers should manage or concentrate on the profits
shareholders. Shareholders should be interests of the
given the opportunity in deciding about According to Max Weber, "Morality is the set of norms and values tiiat
the effective utilisation of dominate society at a certain moment in
resources. In other words, business should
focus on time/place".
achieving its economic objectives.
According to Ayn Rand, "Morality is a code of values
actions-the choices and actions that determine the purpose andguide
3) to ma's
Integration View of Ethics: Talcott Parsons choices and
integration view. He was of the opinion that ethicalproposed a view called the the course of
his life".
should be irmegrated or combined in a
behaviour and busincss According to Purtilo and Criss, "Morality is everyday behaviours that
new area called 'Business
(figure I.3). He argued that business being economic Ethics' to live
successfully with one another. They include concepts like values allow us

make profits. but at the same time it should entity, has the right to cherish) and duties (actions that we are (what we
discharge the social required to do)".
According to this view, business and morality are inter-related andobligations.
are guided Characteristies of Morality
by extemal factors like government, market system, law and Characteristics of moral or morality
society. The are as follows:
governmient and market system are related to business, i.e., rules laid down ) Voluntary: Morals are subjective and
by the governincnt directly or indirectly affect the business and moral arguments of others, one although one may be persuaded by the
affect the inarket system. nay thus does not have to
Similarly, laws will guide business and decide what hold differences of moral agree with tliem. Most of us
Is right or
wrong in ihe business.
position with even closest triends and fanilies.
2) nformaB Entorcement: Morals are
entorced by infornial sanctions At
imes, this night be
Govern1nent persuasion,
rebuke. There may be times if ihe
at other times,
mild dis:approval and
Law
issue is viewed as serious possibly
of the
parties that complete social bieakdown and isolation by onc or other
occuTS.
3) Ought Issues: Most moral stands involve
Business Morality and
peop.e in comnunities on how
informing. persuading 'furCing
or
thics they 'ought to behave. Even when one
holding the hi!h nmoral
ground, the critical
1s

person will see the

'ought' issues
Market
Business individualt, ur group subjective.
as

Ethics 4) Time Scale: Morals

Systems Society develop over
embedded in religious and social thousands of years. They are often deeply
Figure 1.3: Integration Vicw of Ethics influence of the Old and New history. In the West, one can sec the
East, the influcnce of the Old Testament, and Judaco-Christian beliefs. In the
and New Testament, and
beliefs. In the East, the
influence of the Quran and 1slam. Judaeo-Chiistia
 24 Business Ethics
Introduction to Ethics (Unit 1)
1.2.2. Relationship between Morals and Ethics demands time can lead to
on
25

and consuming work ethic, andhaving

The terins morals and ethics are closely related in their original to choose
meanings. Thec between a stressful,
former comes from the Latin "moralis", and the latter comes from
the Greek family demanding
spouse and children. Various differences obligations scen as moral obligations to
word "etihos". Both mean "tlie custom or way of
iife. Modern usage of in table 1.1: between morals and ethics are
refers to conduct itself and ethics (or moral philosophy) to the morality explained
study of moral Table 1.1:
conduct. One speaks of "a moral act" and "an ethical code" Difference between Morals and Ethics
Morals
Morality can be defined as the standards 1) Meaning Principles habits with
or Ethics
that an ndividual or a
group has about to respect| The rules of conduct recognised in
right or wrong conduct. t
what is right and wTong, or good and evil.
defines how things should work j respect to a particular class of
| human actions or a
Ethics is concemed with the study of morality and
particular
according to an individual's| group, culture, etc. It defines
the
application cf reason to ideals and principles, how
elucidate specific rules and principles that determine thing are according to the rules.
right and wrong for a given 2) Origin They are internal in
nature as they They are external 1n nature as they
situation. These rules and principles arc called ethical derive from an
theories. In this of individual. derive from the social system.
thinking then, morality precedes ethics, which in tum precedes ethical way 3) Flexibility Usua!ly consistent, although can Ethics are dependent on others
which is shown in figure 1.4: theory change if an individual's beliefs definition. They tend 1o for
change. be
Ethics that can be
consistent within a certain context,
1 0 prOduce
rationalises ethical applicd to any
4) Covers A moral person although
but can vary between contexts.
morality. theory... $ituation Potential perhaps|A
person strictly following ethical
Ethical Solutions to bound by a higher
Morality Ethics covenant, may principles may not have any
Theory Ethical choose to follow a code of
ethics morals at all. Likewise, one could
Problems as it would
apply to a system. violate ethical principles within a
"Make it fit. given system of rules in order to
Figure 1.4: Relationship between Morality, Ethics, and Ethical Theory maintain moral integrity.
5) Origin Latin word "mos" meaning| Greek word "ethos"
Ethics and morality would seem to be synonymous. Both refer to Lcustom" "character".
aspects of good
and evil, rights and wrongs. What is moral, is apparently also
right. And what is 6) Acceptability Morality transcends cultural Ethics are govened by
norms. professional and legal guidelines
is wrong. A person who is moral, is supposed to abide by ertain
immoral within a particular time and place.
principles, which by implication, are deemed to be important and corect. He
would so abide, even if it affected his personal interests adversely. The
expression "moral victory" is usually used to refer to a situation where there may 1.2.4. Moral Standards
have becn a defeat in an election, or in a court case, or in a fight for supremacy, Moral standards include the nomms we have about the kinds of actions we believe are
and as well as the values 'we
but the person so defeated did not compronise on principles. These are morally right wrong place on the kinds of objects we
believe are morally good and morally bad. Moral norms can usually be expressed as
principles, which clarify propriety or rightness of conduct. These principles are general rules, i.e., "Always tell the truth'". Moral values can usually be expressed as
not sacred by themselves, but are held widely as such, by large sections of the
statements describing objects or features of objects, i.e., "Honesty is good.
COmmunity. If they were not so widely held, the person concerned would not get
the acclaim of a noral victory, although he inay personally be content. Only

principles, which are widely held, are labelled 'moral'.

There could be some During childhood moral standards are absorbed from family, friends and various
differences between nnorality and ethics in definitional nuances, but, for all
societal institutions. Later in life experiences, leatning and
development helps a person in forming these standards.
inteliectua
11nean the same.
purposes, they niay be assuined to
To make people morally conscious of their actions and help them to understanc
1.2.3. Differentiating Morality and Ethics what is the required moral standard, ethicists have suggested few characteristics
somewhat arbitrary to many, that
The difference between ethics and morals can seem
difference. Morals define personal character,
distinguish moral standards from that
moral standards, and called non-moral standards.
of other
standards not exactly related t
but there is a basic, albeit subtle,
in which those niorals are applied. In other
while ethics stress a social system
belhaviour expectcd by the group to These non-moral standards are in vogue in society, at work or in business and
Words, ethics point to standards or codes of
which ethics and morals can clash often infuence the behaviour of an individual. Such significant but non-mora)
which the individual belongs. Another arca in
can play against personal morality. standards are reflected in, e.g.. etiquette in the society, behaviour with superior:
is at the workplace where company cthics
with unreasonable in the workplace, service to customers, individual behaviour in a
Corporate greed that blurs its own ethical lines coupled community, etc
 Business Ethics Introduction to Ethics (Unit 1)
nese non-moral standards are
Systems, or conventions. Theygenerally
are
guided by laws, regulations, procedures,
important
4) Based on Impartial Considerations: Moral standards are
2
indicators of person's ethical
standards, but cannot be equated to 'moral standards'. a
considerations. This implies that one cannot take a moral based on impart
For example, we
Our Judgemcnt in response todifferent situations in our daily lives all the apply
stand if there is
impartiality in the decisions and reasoning. i.e., the stand should.. no
ese Judgements
and
are
generally based on our moral values and moral time. the interest of a
particular individual or group. For examuple, in the dvar ance
influence our
behaviour. reasoning, in cold drink case, if the pesticide
party who first brought-Out the report has done
FOr example, we often make safeguard the interest of a competitor, then it violates the moral
so to

and say- This is right'; 'He judgements about right and

is wrong'; "The wrong, or good and bad
Moral standard demands that the press or the standards
person who reported the matter
nim or "It is a manager should not have
good omen'; etc. Accordingly, we take our punishedd
must have done that on
impartial consideration.
1Ssue or the stand vis a vis the
situation. These 5) Self-Inflicting: Moral standards are
judgements,
on some kind of standards in the that lead us to take positions, are based
upto moral standards, he
self-inflicting, i.e., if
or she fecls bad,
one fails to stand
into us based
on, or influenced
society, community, or business, and get built remorseful. Such examples are many amongst guilty of failure,
or becones
by, some conventions, systerns, or
normsbein society. But, they are not feel remorseful for being uneble to people who, after taking a
stand,
moral standards established uphold the moral standards. For example,
must based on and established because, moral standards
-

the celebrity who had endorsed the cold

dependent on a by good and logical reasoning, and must drink with
must convention, regulation,
or norm. To live
not be pesticide against paynment might have felt guilty about objectionable level of
consciously leam think about, deliberate on and
to upto mioral standards, we moral standards that the
not
acting as per the
and their reason out the actions
society expected of him or her. In some critical
outcomes so that the such unethical behaviour weakens the ways,
Therefore, an latter does not harm others and is personality due to this sense of guilt.
just and fair.
for us to think understanding of the characteristics of moral standards is 1.2.4.2. Moral Standards versus
correctly, deliberate and reason. necessary
Difference between
Non-Moral Standards
moral standards and non-moral
standards are as follows:
1.2.4.1. Characteristics of Moral Standards 1) Moral standards deal with
matters, which can seriously
Various benefit human beings while it is not injure or seriously
characteristics of moral standards are as followws: the case with non-moral standards.
I) Deal with Examples of non-moral standards include the standards of
Subject having Serious Implications in we judge manners as etiquctte by which
and
Workplace: Moral standards deal with Society, Environment, good or bad, and the standards we call
subject matters that have serious we judge
legal right and wrong. 'law by wliich
implications society, en vironment, and workplace;
in
2) Moral standards are not formed or
the irrespective of whether
implications are beneficial or harmful. For example, changed by the decision of particular
cold drinks is serious pesticide content in authoritative bodies and the validity of these standards lies on the
enough to harm the health of
consumers and children
of the reasons that are taken to
and justify them.
adequacy
and hence, it is a moral matter. support
3) If a person has the moral
to do that even if this
obligation to do something, then ihe person is supposcd
2) Self-Regulatory: Moral standards conflicts with other non-moral values or
self-regiulatory, i.e., they cannot be
are
4) Moral standards does not evaluate self-interest.
changed by the laws and
regulation
of bodies including the standards on the basis of the interests oi a
other words, moraB standards cannot be enforced govermment. în particular individual or group, but one that goes beyond
by an authority or a superior. universal stand point in which personaB interests to a
Validity of moral standards rests on the good reasoning. Sa long as the reasons 5) Moral standards are associated
everyone's interests are impatiaily counted as
equal.
are good and with special einotions and a
adequate and the outcome of action does not unfairly damage the vOcabulary. If special
interests of others, the stand remains vaBid. For
a
person tells a lie so as to fulfil a purpose and then afterwards
examnple, even if India had a he starts
feeling guity or ashained of his behaviour.
goverting standard for cold drinks and the pesticide content met the
peimissible standards (i.c., of the law), noral standards dictate that if the leve!
of pesticidc is bad for health, the manufacturer must
corect it and stop B EXERGISE
marketing the product till it makes the correct or new formulation.
1) State the neaning and tature of ethics.
3) Not Guided by Self-Interest: Moral standards are not 2) What do you understand
by morals? How
guided by the self 3) Outline t morality can be differentiatcd froim eliics?
diffcrences between moral standards and
interest or other non-moral standards and values. Those who their non-moral standards.
uphold 4) Discuss the principles of cthics.
moral standards do not hesitate to sacrifice their self-interests and other non- 5) What are the different causes of
unethical behaviour?
moraB values. For example, the celcbrity 5) Describe various types of ethics.
promoting the cold drinks, with
questionable pesticide content, shou!d not be guided by the self-interest of 7) How values are related to
ethics?
receiving a hefty consideration for his or her endorsement. Such a lure and 8) Write short notes on:
trap of self-interest will be construed as being immoral or as violating moral i)Relationship between ethics and business
ii) Moral Standards
standards. i1) Importance of ethics