‫كلية العلوم والدراسات االنسانية بالغاط‬
Business Ethics
Chapter 1: Introduction to Business Ethics
1
Chapter Objectives
To explore conceptualizations of business ethics from an
organizational perspective;
To examine foundations of business ethics;
To provide evidence that ethical value systems support
business performance;
To gain insight into the extent of ethical misconduct in the
workplace and the pressures for unethical behavior
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Introduction
Business ethics is a branch (‫ (فرع‬of ethics which prescribes
standards of how the business is to be carried out )‫ (تنفذ‬.
The advantages )‫(إيجابيات‬of ethical behavior )‫(السلوك األخالقي‬include:
1.
2.
3.
4.
5.
6.
7.
Cultivates strong teamwork and productivity .
Supports employee growth and meaning.
Helps to ensure that policies are legal.
Helps to avoid criminal acts
Promotes a strong public image.
Improves trust )‫(الثقة‬in relationships.
Legitimizes )‫(تشرع‬managerial actions.
Business ethics is a specialized study of right and wrong
applied to business policies, institutions, and behaviors.
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The Meaning of Ethics
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Ethics
 A conception of right )‫ (الصواب‬and wrong )‫ (الخطأ‬conduct
 Tells us whether our behavior is moral )‫(أخالقي‬or immoral)‫(غير األخالقي‬
 Deals with fundamental human relationships
Ethical Principles)‫(المبادئ األخالقية‬
 Guides to moral behavior )‫(دليل السلوك األخالقي‬
Business Ethics
 Application)‫ (تطبيق‬of general ethical ideas to business behavior
Branches of Ethics
Two Key Branches of Ethics

Descriptive ethics involves describing, characterizing
and studying morality
 “What is”

Normative ethics involves supplying and justifying
moral systems
 “What should be”
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Ethical Relativism ‫النسبية‬

Concept which holds that ethical behavior should be defined
by various periods in time in history, a society’s traditions,
the special circumstances of the moment, or personal opinion

The meaning given to ethics would be relative to time, place,
circumstance, and the person/s involved

There would be no universal ethical standards on which people
around the globe could agree
Sources ‫مصادر‬of Ethics

Notions of right and wrong come from many sources
 Religious beliefs
 Family background
 Education
 Community/neighborhood
 Media influences
 ……

These experiences create a concept of ethics, morality, and
socially acceptable behavior in each person
Sources of Ethical Norms
Fellow Workers
Fellow Workers
Family
Regions of
Country
Profession
The Individual
Conscience
Friends
The Law
Employer
Religious
Beliefs
Society at Large
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Ethics and the Law
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Law often represents an ethical minimum
Ethics often represents a standard that
exceeds the legal minimum
Frequent Overlap
Ethics
Law
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Relationship between business and ethics
a.
Businesses that exhibit and promote strong
corporate codes of ethics are more prosperous in
the long run
b.
Enhances a company's reputation
c.
The highly competitive environment in today's
global economy puts pressures on company
leaders to remain profitable
10
Organizational and Global Ethical Culture
Ethical culture describes the component of
corporate culture that captures the values and
norms that an organization defines as
appropriate conduct
Creates shared values

Goal is to:
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
Minimize need for enforced compliance
Maximize utilization of principles/ ethical reasoning
Source: Triangle Images
Ethics Contributes to Employee Commitment
Comes from employees who believe their future
is tied to the organization’s (Are willing to make
personal sacrifices for the organization)
The more dedication on the part of the company,
the greater the employee dedication
Concerns include a safe work environment,
competitive salaries and benefit packages, and
fulfillment of contractual obligations
Ethics Contributes to Investor Loyalty

Companies perceived by their employees as having a
high level of honesty and integrity are more profitable
than companies with a low level of honesty and
integrity

Ethical climates in organizations provide platform for:
 Efficiency
 Productivity
 Profitability
Ethics Contributes to Customer Satisfaction
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Consumers respond positively to socially concerned
businesses
Being good can be extremely profitable
Customer satisfaction dictates business success
A strong organizational ethical climate
places customers’ interests first
Research shows a strong relationship between ethical
behavior and customer satisfaction
Ethics Contributes to Profits

Corporate concern for ethical conduct is
being integrated with strategic planning


Corporate citizenship is positively associated
with:
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Maximize profitability
Return on investment and assets
Sales growth
Studies have found a positive relationship
between citizenship and performance