Business ethics and culture Author: E-5-21-MKQ group Jo`rayeva Mohigul Pressure to modern manager Business organisations Shareholder Approach: Freeman, 1984 Pressure to modern manager Results!!! Competitiveness Ambition Innovation Work-Life Balance ? Business organisations Business Ethics: Definitions “To educate the mind without the morals is to educate a menace to society” Theodore Roosevelt “Business is not just about making money, it is also a way to achieve peace through respect for human rights and social responsibility” Fr. Oliver Williams “Business is about people, people and people…” Richard Branson • Ethics: (1) “the principles of conduct that governs individual or a group” (2)“the study of morality” - a discipline that examines good or bad practices within the context of a moral duty • Moral conduct is behaviour that is wrong or right. Morality is a set of standards (norms) that people has about what is wrong or right • Ethics applies to all human activities • Business ethics studies business practices and behaviours that are good or bad. Business cannot survive without ethics What is important about people? Employees are not Resources. They are people that have their Rights, Values and Feelings. The relationships with the people who are employees should be managed. Emotional Intelligence Emotional intelligence is the capacity of individuals to recognise their own, and other people's emotions, to discriminate between different feelings and label them appropriately, and to use emotional information to guide thinking and behaviour. So, good or bad practices in business are about ... People are not an asset Employers no longer chant the old mantra: “People are our greatest asset”. Instead, they claim: “People are our greatest liability”. For business organisations, this shift will require more than just a few new programmes and a few new practices. It will require new measurements, new values, new goals, and new policies. Peter F. Drucker, 2002 Relationship: Ethics - Morality Ethics Morality Prescribing good actions Good Benign Positive actions for good or to prevent harm being done Avoiding doing harm, supports the doing of good but takes no positive action to do good • Social development and Caring • Social responsibility and Supporting • Reciprocity Proscribing bad actions Indifferent Ignoring harm done by or to others and disregarding the rights of others • Lying and dishonesty • Fairness • Cheating and Selfishness Bad Taking actions to do harm Taking no action to prevent harm being done • Bullying and Social irresponsibility • Harming and Social and environmental disengagement Reputation and Trust Business is about people, and your reputation is built on how you treat people. In business your reputation affects how likely others are to trust you, and what kind of deals they'll offer at the negotiating table. It take years to build trust and reputation and a seconds to destroy it. Ethics and the Law • Law often represents an ethical minimum • Ethics often represents a standard that exceeds the legal minimum Frequent Overlap Ethics Law Sources of Ethical Norms Fellow Workers Mass Media Family Country Profession The Individual Conscience Friends The Law Employer Religious Beliefs Society at Large External Sources of a Manager’s Values • • • • • Philosophical values Cultural values Professional values Religious values Legal values etc. Terminal and Instrumental Values Rokeach, M. (1973). The Nature of Human Values. New York: The Free Press. https://study.com/academy/lesson/terminalvalues-definition-examples-quiz.html Terminal Values A World of Beauty A Comfortable Life 18 Equality 16 A World at Peace 14 An Exciting Life 12 10 Wisdom Family Security 8 6 4 True Friendship Freedom 2 WOMEN 0 Social Recognition Health A Sense of Accomplishment Inner Harmony Self-Respect Mature Love Salvation National Security Pleasure MAN Instrumental Values Self-controlled Ambitious 18 Broad-minded 16 Responsible Capable 14 12 10 Polite Clean 8 6 4 Obedient Courageous 2 WOMEN 0 MAN Loyal Forgiving Loving Helpful Logical Honest Intellectual Imaginative Independent Ethical Dilemma Dilemmas are situations or problems where a person has to make a difficult or unpleasant choice. If a person decides to act according to one set of conventional norms or rules then they will break another set of expectations. Situation 1 Situation 2