CH01

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‫قال رسول هللا (ص)‪( :‬إنما بعثت‬
‫ألتمم مكارم األخالق)‬
‫‪1‬‬
‫‪Mr.Abdihakin Abdulaahi Jama BBA,MBA‬‬
‫‪1/12/2019‬‬

Businesses
&
technological,
governments
legal,
operate
economic,
social
in
changing
&
political
environments with competing stakeholders & power
claims.

Stakeholders are individuals, companies, groups &
nations that cause and respond to external issues,
opportunities, and threats.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
2
The rate of change and uncertainty in which stakeholders &
society must make & manage business & moral decisions
have accelerated due to the impact of:

Internet and information technologies

Globalization

Deregulation

Mergers

Wars
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
3

Organizations and individuals are embedded in and
interact with multiple changing local, national, and
international environments, as the above discussion
illustrates. These environments are increasingly merging
into a global system of
dynamically
interrelated
interactions among businesses and economies.

We must “think globally before acting locally” in many
situations.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
4

The stakeholder management approach is a way of
understanding the effects of environmental forces and
groups
on
specific
issues
that
affect
real-time
stakeholders and their welfare.

This approach attempts to enable individuals and
groups to articulate collaborative win-win strategies:
based on the following:
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
5
1.
Identifying and prioritizing issues, threats, or opportunities
2.
Mapping who the stakeholders are
3.
Identifying their stakes, interests, and power sources
4.
Showing who the members of coalitions are or may become
5.
Showing what each stakeholder’s ethics are and should be
6.
Developing collaborative strategies and dialogue from a
higher ground perspective to move plans and interactions to
the desired closure for all parties
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
6

Ethics derives from the Greek word ethos meaning
“character”— and is also known as moral philosophy,
which
is
a
branch
of
philosophy
that
involves
“systematizing, defending and recommending concepts
of right and wrong conduct.”

Ethics is the branch of philosophy that focuses on
morality and the way in which moral principles are
applied to everyday life.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
7

Ethics involves understanding the differences between
right and wrong thinking and actions, and using
principled decision making to choose actions that do not
hurt others.

Ethics involves an active process of applying values,
morals, which may range from religious principles to
customs and traditions
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
8
From these definitions we may understand ethics as a
theoretical background of morals concerned more
about :
Providing guidance for moral decisions and ethical
judgments

Analyzing and evaluating rational usage of moral
conduct

Understanding the meaning of moral values.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
9

Therefore questions by which ethics tries to answer
are:-

Is there ultimate good? Why should I be moral? What
kind of a life should I live? How do I know what is the
right thing to do? Therefore ethics could be defined as
the “thoughtful analysis and evaluation of the standards
and principles by which we issue judgments in terms of
moral values
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
10

Morality = from Latin moralitas "manner, character,
proper behavior. Morality is concerned with norms,
values and beliefs about social processes which define
right and wrong for an individual or a community

Value=
investigates
how
people
positively
and
negatively value things and concepts
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
11

Meta-ethics is the study of the concept of ethics

Normative ethics is the study of how to determine
ethical values

Descriptive ethics is the study of the use of the ethical
value
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
12

Metaethics considers where one’s ethical principles
“come from, and what they mean.” Do one’s ethical
beliefs come from what society has prescribed? Did our
parents, family, religious institutions influence and shape
our ethical beliefs? Are our principles part of our
emotions and attitudes?
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
13

Metaethical perspectives address these questions and
focus on issues of universal truths, the will of God, the
role of reason in ethical judgments, and the meaning of
ethical terms themselves.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
14

Normative ethics is more practical; this type of ethics
involves prescribing and evaluating ethical behaviors—
what should be done in the future. We can inquire about
specific moral standards that govern and influence right
from wrong conduct and behaviors.

Normative ethics also deals with what habits we need to
develop, what duties and responsibilities we should
follow, and the consequences of our behavior and its
effects on others.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
15

Descriptive ethics involves the examination of other
people’s beliefs and principles. It also relates to
presenting—
describing
but
not
interpreting
or
evaluating— facts, events, and ethical actions in specific
situations and places.

In
any
context—organizational,
relationship,
or
business—our aim here is to understand, not predict,
judge, or solve an ethical or unethical behavior or action.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
16

Business ethicists ask, “What is right and wrong, good
and bad, harmful and beneficial regarding decisions and
actions in organizational transactions?”

Business Ethics is the study of business situations,
activities, and decisions where issues of right and wrong
are
addressed.
Right
and
Wrong
in
morality,
commercially, strategically or financially.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
17

Business ethics involves applying general ethical
principles and standards to business activities, behavior
and decisions.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
18
Business Ethics is very prominent business topic.

- Consumers and pressure groups request that any
firm behave ethically and ecologically

- Media seems to keep the spotlight on corporate
abuses and bad practices

- Firms understand themselves that being ethical is
good for businesses, inside the organizations with
employees and as well to gain some profit.
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
19

Surveys have identified the following recurring themes
to prominent everyday ethical issues facing businesses
and their stakeholders:
 Managers lying to employees
 Office nepotism and favoritism
 Taking credit for other’s work
 Receiving/offering kickbacks
 Stealing from the company
 Firing an employee for whistle-blowing
 Padding expense accounts
 Terminating employment without sufficient notice
 Using company property/materials for personal use
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
20
The most unethical behavior, per one survey, happens in the following
areas:
1/12/2019

Government

Sales

Law

Media

Finance

Medicine

Banking

Manufacturing
21
Mr.Abdihakin
Abdulaahi Jama BBA,MBA
“Doing the right thing” matters to employers, employees, stakeholders,
and the public.

For companies, it means saving billions of dollars each year in
lawsuits, settlements, and theft
▪
Tobacco industry,
Costs to businesses include:
1/12/2019
▪
Deterioration of relationships
▪
Damage to reputation
▪
Declining employee productivity, creativity, and loyalty
▪
Ineffective information flow throughout the organization
▪
Absenteeism
22
Mr.Abdihakin
Abdulaahi Jama BBA,MBA

Because ethical problems are not only an individual or
personal matter, it is helpful to see the different levels at
which issues originate and how they move to other
levels.
 Five levels are:
 Individual
 Organizational
 Association
 Societal
 International
1/12/2019
23
Mr.Abdihakin
Abdulaahi Jama BBA,MBA
A myth is “a belief given uncritical acceptance by the members

of a group, especially in support of existing or traditional
practices and institutions.”

Myth 1: Ethics is a personal, individual affair, not a public or
debatable matter

Myth 2: Business and ethics do not mix

Myth 3: Ethics in business is relative

Myth 4: Good business means good ethics

Myth 5: Information and computing are amoral
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
24

Ethical reasoning is required in business for at least three reasons:

Many times laws are insufficient and do not cover all aspects or
gray areas of a problem

Free-market and regulated-market mechanisms do not effectively
inform owners and managers about how to respond to complex
issues and crises that have far-reaching ethical consequences

Complex moral
problems require an
intuitive
or
learned
understanding and concern for fairness, justice, and due process
to people, groups, and communities
1/12/2019
25
Mr.Abdihakin
Abdulaahi Jama BBA,MBA
Ethic courses should not:

Advocate a set of rules from a single perspective

Not offer only one best solution to specific ethical
problems

Not promise superior or absolute ways of thinking
and behaving in situations
1/12/2019
26
Mr.Abdihakin
Abdulaahi Jama BBA,MBA

Ethic courses and training can do the following:
 Provide people with rationales, ideas, and vocabulary
 Help people make sense of their environments
 Provide intellectual weapons
 Enable employees to act as alarm systems for
company practices
 Enhance conscientiousness and sensitivity
 Enhance moral effectiveness and strengthen moral
courage
 Increase people's ability to become morally
autonomous ethical dissenters
 Improve the firm’s moral climate
1/12/2019
27
Mr.Abdihakin
Abdulaahi Jama BBA,MBA

Other scholars argue that ethical training can add value
to the moral environment of a firm and to relationships in
the workplace by:
 Finding a match between employer’s and employee’s
values
 Managing the push-back point
 Handling an unethical directive
 Coping with a performance system that encourages
unethical means
1/12/2019
28
Mr.Abdihakin
Abdulaahi Jama BBA,MBA
Kohlberg’s 3 levels of moral development:

Level 1: Preconvention level (self-orientation)
▪
Stage 1: Punishment
▪
Stage 2: Reward seeking
Level 2: Conventional level (others orientation)
▪
Stage 3: Good person
▪
Stage 4: Law and order
Level 3: Post conventional level (universal, humankind orientation)
1/12/2019
▪
Stage 5: Social contact
▪
Stage 6: Universal ethical principles
29
Mr.Abdihakin
Abdulaahi Jama BBA,MBA
the end
Be an ethical person
Thanks for your good attention
1/12/2019
Mr.Abdihakin Abdulaahi Jama BBA,MBA
30
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