Skip to main content

Business Ethics!!!

"Ethics is not definable, is not implementable, because it is not conscious; it involves not only our thinking, but also our feeling"

While everyone talks about business ethics, its content and boundaries are not easy to determine. It may be safe to assume that ethics involve some hard features like duties and rights (most of them legal) that are mandatory for all, and soft components like values, aspirations or best practices that are desirable but not compulsory and can vary from one organization and person to the next.

Generally speaking laws and regulations just set a minimal ethical standard required for the orderly working of societies.

Business ethics is not limited to refusing to pay bribes. Clearly, corruption is a part of the package-indeed, one of the most significant and harmful hazards of unethical behavior.

However Business Ethics includes environmental care, fairness, health and safety, reliability, respect for everyone’s dignity transparency and of course abiding by all current laws, including tax, labor, market and fair competition regulations.

There are some tests to prove effectiveness to assess the ethical implications of an action. The tests are:

1. The Mother Test:
Would you be able to tell your mother or your children about this action without being embarrassed?

2. The Newspaper Test:

Would you like to see your decision on a newspaper headline?

3. The Audience Test:

Would you like anyone in similar situation to do the same?

The answers to these questions are more compelling than any long, philosophical ponderings on what is and is not ethically acceptable.

“The success of ethical systems depends on an organizations ethical climate which reflects the employee’s faith in management morality and stems from the company’s values, shared by everybody in the organisation”

Comments

Popular posts from this blog

Followership

“It is often said Today’s effective followers are tomorrow’s potential leaders” There are effective followers and ineffective followers Sheep There are people who are passive and like to work from 9-6. They think they work for living and lack initiative. They expect their leader to think for them. Most probably they may say, “Sir, whatever you think good for me”. They are also “Yes Sir”, “No Sir” type. Survivors There are some people whose motto is “better to be safe than sorry”. They do not take risk, tend to be political. They do not lead change but want to survive across it all costs. They are not someone who would rock the boat. You will find plenty of such people in Govt. offices.  Followership Model Alienated Followers They are capable yet cynical people. They come across as negative people. They generate and emit lot of negative thoughts and energy. They are seen gossiping in the corridor and criticizing their organisation and management. You will hear comment su...

HR: A Strategic Asset

Strategic assets are “the set of difficult to trade and imitate, scarce, appropriable, and specialized resources and capabilities that bestow the firm’s competitive advantage”. It is easy to understand why organizations talk about people as an asset, but tend to manage them largely as a cost to be minimized. Aside from accounting principles that encourage this perspective, HR costs are easy to observe, while HR value creation is not. Largely because of the traditional perspective on HR, organizations have no way to measure HR’s strategic performance. Nevertheless, we know that intangibles in the aggregate are an increasingly important source of firm value, and that human capital ought to be a part of that asset value. HR is a strategic asset as it can play a critical role in both strategy implementation and management systems. Namely, the ability to execute strategy well is a source of competitive advantage, and “people” are the lynchpin of effective strategy execution. We think i...

Fourth Industrial Revolution and Protection of Personal Information

  “We seem to increasingly trade privacy for convenience with many of the devices we routinely use” -           Michael Sandel (Harvard Professor) Have you given a thought on the information that is freely available about you without your knowledge? Have you ever experienced?   When you are searching for a holiday accommodation on any website, and you leave the booking incomplete…have you noticed the same hotel advertisement catching your eye as you browse through social sites be it Facebook, Instagram or any other online site? When you buy any specific items from any online site…have you noticed related  products being advertised to you? e.g. buying maternity clothes from website, you suddenly start noticing advertisements about other  maternity products, children clothes, toys? It all happens because of your information and preferences been tracked and monitored through a small cookie (its not the one we get in...