FACULTY OF BUSINESS AND
MANAGEMENT
BD127/DBB1043 Business Essential
January - April 2023
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TUTORIAL 2
Question 1
Define the terms ‘ethics’, ‘business ethics’ and managerial ethics
(9 marks)
The terms Ethics is based on well-founded standards of right and wrong that prescribe what
humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific
virtues. For example, the standards that impose the reasonable obligations to refrain from rape,
stealing, murder, and fraud. Besides that, ethics could also refer to those that enjoin virtues of
honesty, compassion, loyalty, and the continuous effort of studying our own moral beliefs and
our moral conduct.
Business Ethics studies appropriate business policies and practices regarding potentially
controversial subjects, including corporate governance, insider trading, bribery, discrimination,
corporate social responsibility, fiduciary responsibilities, and much more. Business ethics could
ensure that a certain basic level of trust exists between consumers and various forms of market
participants with businesses. For example, a portfolio manager must give the same consideration
to the portfolios of family members and small individual investors as they do to wealthier clients.
Managerial ethics is a set of principles and rules dictated by upper management that define what
is right and what is wrong in an organization. It acts as the guideline that helps direct a lower
manager's decisions in the scope of his or her job when a conflict of values is presented.
Managerial ethics are broken down into two primary types, which are those that pertain to legal
issues and those that pertain to moral issues. While legal issue consider the many rules and
regulations for any company, for example given a safe work environment and fair pay, moral
issue focus on ensure that people feel good about their experience with the company, for example
offering offer paternity leave.
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Question 2
Explain why ethics is important in the workplace.
(10 marks)
Workplace ethics are the moral guidelines that an organization as a whole, and the individuals
who comprise it, follow to comply with state and federal laws. In most cases, work ethics in an
organization are derived from secular values like trustworthiness, integrity, fairness,
responsibility, accountability, and loyalty. In many industries, workplace ethics are derived from
laws and industry regulations. The protections of these laws offer to employees can be used as a
springboard to create workplace ethics, such as anti-discrimination policies, anti-harassment
policies, and safety policies.
Workplace ethics are important because they keep all members of an organization accountable
for their actions. Maintaining a strong, ethical code creates a sense of security through boundaries
for employees. It also enables management to make decisions that benefit the company as a whole
while meeting consumer and employee needs. By creating boundaries for employees at all levels,
workplace ethics help employees feel valued.
Workplace ethics could also make employees feel secure about their job and career. Unnecessary
favoritism is against workplace ethics. For example, if you favor anyone just because he is your
relative, the other team members are bound to feel demotivated and thus start looking for new
opportunities. An individual’s output throughout the year should decide his/her increment.
Workplace ethics also go a long way in strengthening the bond among employees and most
importantly their superiors. For example, employees tend to lie if you do not allow them to take
leaves. If one does not allow an employee to take leave on an important festival, he would
definitely lie. No employee can work at a stretch without taking a break. Understand their
problems as well. If you feel the problem is genuine, do not create an issue. Workplace ethics
allow manager to not exploit their employees and don’t treat them as machines.
Other than that, Workplace ethics are important because it ensures positive ambience at the
workplace. Workplace ethics leads to happy and satisfied employees who enjoy coming to work
rather than treating it as a mere source of burden. Employees also develop a feeling of loyalty and
attachment towards the organization.
However, in a workplace with no ethical standards, an employee might feel like she cannot speak
to a supervisor about her sexual harassment experience, or as if she has no guidance on how to
manage interactions with a difficult customer.
Just as in romantic and family relationships, ethics serve to create healthy relationships between
colleagues.
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Question 3
With the aid of diagram, illustrate the THREE (3) steps model for applying ethical judgement.
(15 marks)
The ethics model is a theoretically grounded ethical decision-making model that draws from the
latest relevant literature in ethics. The ethics model is appropriate for practitioners of all levels
and can be used with a variety of situations. It includes 3 steps in evaluating the final ethical
decision and also the way to determine whether a certain act is wrong or wrong.
The first step includes gathering relevant factual information. Gathering information includes
collecting information on the situation requiring a decision. Some question could be asked, for
example ‘is there a pattern of occurrences involved’ or ‘do I need information from someone
outside the organization’. Then, one could talk to the people involved for information gathering
and helping those affected feel they’re part of the decision-making process. As a result, they’ll be
more likely to commit themselves to the course of action you choose. Then, one could also use
other resources available by check the library or talk to the manager and colleagues who also
supervise others.
The facts gathered concerning the act or policy can be evaluate by determining is it acceptable
according to four ethical norms. The four ethical norms include utility, rights, justice and caring.
The utility ethical norms
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The second step is to analyze the fact to determine most appropriate moral values. This could be
done by asking what will bring the highest good for the most people for the longest time.
Question 4
Discuss FOUR (4) general approaches social responsibility.
(12 marks)
Question 5
Show how the concept of social responsibility applies to environmental issues.
(5 marks)
Social responsibility is an ethical theory in which individuals are accountable for fulfilling their
civic duty, and the actions of an individual must benefit the whole of society. The concept of
social responsibility application in environmental issue aim to reduce any damaging effects on
the environment from the business processes such as air pollution, water pollution and also land
pollution. For example, the company could reduce harmful practices, such as decreasing
pollution, greenhouse gas emissions, the use of single-use plastics, water consumption, and
general waste. The company could also regulate energy consumption by increasing reliance on
renewables, sustainable resources, and recycled or partially recycled materials. Lastly, the
company could also offset negative environmental impact by planting trees, funding research,
and donating to related causes.
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