Business Ethics: Principles, Practices, and Issues

This presentation, delivered by Mahesh Senanayake, a visiting lecturer at Cambridge College of Business Management, provides a comprehensive overview of business ethics. It covers essential topics such as business ethics, stakeholder management, corporate governance, and corporate social responsibility (CSR). The presentation defines ethics, morals, and laws, emphasizing the importance of business ethics for brands, people, the environment, and strategic aspects. It explores ethical theories, levels of business ethics, and common myths. The presentation also delves into ethical reasoning, decision-making criteria, and the importance of understanding the business environment. Furthermore, it highlights ethical issues within the Sri Lankan context, offering valuable insights and practical applications. The presentation concludes with key questions to consider and emphasizes that business ethics is the basis for maintaining many modern standards in business. This resource is available on Desklib, a platform that provides AI-based study tools and resources for students.

BY MAHESH SENANAYAKE
VISITING LECTURER
CAMBRIDGE COLLEGE OF BUSINESS MANAGEMENT

Key Areas to Learn
• Business Ethics
• Stakeholders and Business
• Corporate Governance
• CSR/Sustainability
• Triple Bottom Line
• Code of Conduct
• GRI – Global Reporting Initiative
• Mendelow Matrix /Power interest Matrix
• CSR Pyramid ; Carroll’s Model
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Ethics ? Morals ? Laws
• Ethics - a branch of philosophy that involves “systematizing, defending and recommending
concepts of right and wrong conduct.”
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. ( Business Ethics :
A stakeholder and issues management approach )
• Morals - of or relating to principles of right and wrong in behavior (https://www.merriam-
webster.com/dictionary/moral)
• Laws - a binding custom or practice of a community : a rule of conduct or action prescribed
or formally recognized as binding or enforced by a controlling authority (https://www.merriam-
webster.com/dictionary/law )
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Ethics Vs Morality Vs Law
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Compliance or Non
compliance will lead to….

What is meant by “Business Ethics"
Laura Nash defined business ethics as (Business ethics Joseph W. Weiss)
“The study of how personal moral norms apply to the activities and goals of commercial enterprise. It
is not a separate moral standard, but the study of how the business context poses its own unique
problems for the moral person who acts as an agent of this system.”
According to Nash Business ethics deals with three basic areas of managerial decision making:
(1) Choices about what the laws should be and whether to follow them;
(2) Choices about economic and social issues outside the domain of law; and
(3) Choices about the priority of self- interest over the company’s interests
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Why areBusiness Ethicsimportant for a Busin
• Its Impact on Brands? Products ? Services?
• Its impact on People ( Internal /external )
• Its impact on Environment ( Micro /Macro )
• Its impact on Strategic and technical aspects such as
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Marketing Mix
Brand Equity
Shareholders
Financial Strength

Business Ethicsoffer‘Moral Framework’
for Problem solving in business
Solutions to Business /Org. problems may have many
solutions & alternatives.
Some times no right solution may seem available.
HENCE
-Using principled ethical thinking provides structured
and systematic ways of decision making based on
values, not only perceptions that may be distorted,
pressures from others, or
the quickest and easiest available options— that may
prove more harmful.
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Three General areas to understan
Ethical THEORY
a) Meta-ethics considers where one’s ethical principles “come from, and what
they mean.”
b) Normative ethics is more practical; this type of ethics involves prescribing
and evaluating ethical behaviors— what should be done in the future
c) Descriptive ethics involves the examination of other people’s beliefs and
principles.
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Why does Ethics matter in B
1. Relationships, Reputation, Morale, and Productivity
2. Integrity, Culture, Communication, and the Common Good
3. Integrity/Ethics
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Business Ethics Levels
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International Level
Societal Level
Association Level
Organizational Level
Individual Level

#05 Business Ethics
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
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KEY Questions To Ask?
1) What are my core values and beliefs?
2) What are the core values and beliefs of my organization?
3) Whose values, beliefs, and interests may be at risk in this decision? Why?
4) Who will be harmed or helped by my decision or by the decision of my organization?
5) How will my own and my organization’s core values and beliefs be affected or
changed by this decision?
6) How will I and my organization be affected by the decision?
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