Unit 1

A. Nature of Morality
 Morality - Meaning

• In Nepali - नैतिकता

• Principles concerning the distinction between right and wrong or good and bad
behavior.

• A particular system of values and principles of conduct.

• The extent to which an action is right or wrong.

 Morality
• Morality can be a body of standards or principles derived from a code of
conduct from a particular philosophy, religion or culture, or it can derive from a
standard that a person believes should be universal.

• Morality may also be specifically synonymous with "goodness" or "rightness".

• Some common examples of moral principles are honesty, respect, and

kindness.

• If we accept these principles as worthy of guiding our life, then we try to be

honest with people, show respect for them, and be kind to them.
 Ethics and Morality
• Ethics and morals relate to “right” and “wrong” conduct.

• While they are sometimes used interchangeably, they are different.

• Ethics refer to rules provided by an external source, e.g., codes of

conduct in workplaces or principles in religions.

• Morals refer to an individual's own principles regarding right and

wrong.
 Morality, Ethics and Etiquette
• While morality is the moral code of an individual or of a
society, etiquette is a set of rules for well-mannered behavior.

• Morality is different from professional codes of ethics which are

special rules governing the members of a profession, say of doctors,
lawyers, bankers, teachers and so on.
 Morality and Law
• Law is the system of rules which a particular country or community
recognizes as regulating the actions of its members and which it may
enforce by the imposition of penalties.

• Law and morality are two normative systems that control and
regulate behaviors in a human community so as to allow harmonious
and effective inter-subjectivity between individuals who recognize
one another as bearers of rights.
 Conscience
• A person's moral sense of right and wrong, viewed as acting as a guide to one's
behavior.

• The inner sense of what is right or wrong in one's conduct or motives,

impelling one toward right action: to follow the dictates of conscience. The
complex of ethical and moral principles that controls or inhibits the actions or
thoughts of an individual.

• “He had a guilty conscience about his desires"

• Conscience is sometimes confused with conscious.

 Self Interest
• One's personal interest or advantage, especially when pursued without
regard for others.

• Self-interest refers to actions that elicit personal benefit.

• Self-interest is defined as being focused on yourself or putting yourself

at an advantage.

• An example of self-interest is thinking about your needs above the

needs of others around you.
 Business Organizations and Ethics
• The system of moral and ethical beliefs that guides the values,
behaviors, and decisions of a business organization and the individuals
within that organization is known as business ethics.

• Ethics are the principles and values used by an individual to govern his
or her actions and decisions.

• A code of ethics within an organization is a set of principles that is used

to guide the organization in its decisions, programs, and policies.
 Business Organizations and Ethics
• Ethics plays a very important role in business and the organizations.

• Ethics concern an individual's moral judgments about right and wrong.

• Ethical behavior and corporate social responsibility can bring

significant benefits to a business.

• For example, they may: attract customers to the firm's products,

thereby boosting sales and profitability.
 Business Organizations and Ethics
• Organization ethics includes various guidelines and principles which
decide the way individuals should behave at the workplace.

• It also refers to the code of conduct of the individuals working in a

particular organization.

• Every organization runs to earn profits but how it makes money is

more important.
 Business Organizations and Ethics
• While businesses have to meet economic expectations, they also have ethical
responsibilities.

• Everyone, from the bottom to the top of the organizational chart, must take care to meet
these responsibilities.

• Integrity is the most important ethical concept because it covers such a broad area.

• If you act with integrity, ethical behavior is just a natural progression.

• Those who have integrity are guided by a set of core principles that influences their
decisions and behaviors.
 Business Organizations and Ethics
• People with integrity value other principles, including honesty,
respect, personal responsibility, compassion, and dependability.

• These qualities are integrated into the Six Pillars of Character offered
by the Josephson Institute, a nonprofit organization that develops and
delivers services and materials to increase ethical commitment.

• The pillars are given in the next slide.

 The Six Pillars of Character
• Trustworthiness

• Respect

• Responsibility

• Fairness

• Caring

• Citizenship
 Executive Leadership and Ethics
• One of the ethical concepts in Business Ethics course is the importance
of executive leadership support of ethical practices within organizations.

• If this does not come from the top leadership, it will not translate
through the rest of the organization as employees look to their top
leaders for the behaviors they are expected to model.

• The main point is that ethical business practices are not necessarily the
most profitable methods in the short term, but they are essential for
long-term organizational survival.
 Executive Leadership and Ethics
• However, behaving in an ethical manner can create positive business results.

• A business environment that promotes and upholds strong values is usually a

happier and more productive workplace and customers receive good service
so they keep coming back.

• So, as Executives, ethical principles should guide our personal and professional
lives.

• Being ethical requires looking at universal values and that is the decision
matrix people can use in their business and personal lives.
 Business Ethics for Executives
• In addition to the Six Pillars of Character, the Josephson Institute offers 12 Ethical Principles for Business
Executives:

1. Honesty 2. Integrity

3. Promise-Keeping & Trustworthiness 4. Loyalty

5. Fairness 6. Concern for Others

7. Respect for Others 8. Law Abiding

9. Commitment to Excellence 10. Leadership

11. Reputation & Morale 12. Accountability

 Ethics and Morality in Business
• We have discussed about the basics of ethics, leadership, morality and social
responsibility.

• However, it is important to understand the true meaning of values, ethics, morality and its
application.

• Values are core beliefs or desires that guide or motivate our attitude and actions.

• What one values drives his or her behavior.

• Some people value honesty or truthfulness in all situations; others value loyalty to a
higher degree in certain situations.
 Ethics and Morality in Business
• Ethics is the branch of philosophy that theoretically, logically and rationally determines right from
wrong, good from bad, moral from immoral and just from unjust actions, conducts and behavior.

• Applied ethics refers to moral conclusions based on rules, standards, code of ethics and models that
help guide decisions.

• There are many subdivisions in the field of ethics; some of the common ones are descriptive,
normative and comparative ethics.

• Business ethics, more specifically, deals with the creation and application of moral standards in the
business environment.

• Morals are judgments, standards and rules of good conduct in business which guide people toward
permissible behavior with regard to basic values.
 Morality in Business
• A company can still make money while adhering to an ethical code
of business operations.

• A moral business increases the allure of the business to prospective

employees, enhancing the talent of the recruitment pool.

• A morally run business will see increases productivity because

employees will take pride in their work.
 Influence of Morality in Business
Operations
• Some people argue that a company's sole purpose is to maximize profits
and that focusing on any other concerns is a violation of fiduciary
responsibility.

• But just because business is a highly competitive field does not mean that a
company has to be amoral.

• With social media forming an increasingly important role in shaping the

reputation of a business, any company that charts its course with a moral
compass will enhance its reputation, building a loyal customer base in tune
with its good intentions thereby boosting sales and profits.
 Business Ethics/Morality as a
Formal Academic Discipline
• Before the 1960s, business ethics and social responsibility weren’t
major considerations in the business world.

• During the 1970s, ethics began to be taught in business schools.

• A 1982 survey by Hoffman and Moore noted that of the “655 schools
that responded, 317 said that a business ethics course was being
offered.”
Business Morality Should Derive
From Personal Ethics
• Business ethics should flow from the golden rule “treat others the
way you want to be treated yourself.”

• Just because there is money involved doesn’t mean that your

company should ignore basic moral principles.

• We are all consumers, so we know what it’s like to deal with

businesses from the other side.
Business Morality Should Derive
From Personal Ethics
• Basic aspect businesses should adhere to include making sure that
both parties to a deal be treated fairly so that they mutually benefit
from a transaction, that the truth be told, and that customers be
accorded respect.

• A moral business can thrive only if it is making a profit, so an ethical

money-making business plan should be laid out and adhered to.
 Morality Flows from the Top
Down
• If a boss cheats and cuts corners, his employees will do the same.

• A company’s integrity has to be a precept insisted upon at the very

highest levels of management.

• Ethical precepts have to be emphasized regularly to the entire

company.
 Employees Must Be Treated
Right
• Morality in business has to start in how it treats its employees.

• If workers aren’t managed fairly, there is no reason for them to treat

customers right.

• A formal mission statement is a great way to put forth ethical precepts,

especially if workers see that those principles are applied to everyone.

• Benefits packages and profit sharing are great ways to offer incentives to
employees because the fate of the company becomes their own.
 Moral Principles
1. Autonomy
2. Justice
3. Beneficence
4. Non-maleficence, and
5. Fidelity
 1. Autonomy
• Autonomy is the principle that addresses the concept of independence.
• The essence of this principle is allowing an individual the freedom of choice and action.
• It addresses the responsibility of the counselor to encourage clients, when appropriate, to
make their own decisions and to act on their own values.
• There are two important considerations in encouraging clients to be autonomous.
• First, helping the client to understand how their decisions and their values may or may not
be received within the context of the society in which they live, and how they may impinge
on the rights of others.
• The second consideration is related to the client's ability to make sound and rational
decisions.
• Persons not capable of making competent choices, such as children, and some individuals
with mental handicaps, should not be allowed to act on decisions that could harm
themselves or others.
 2. Nonmaleficence
• Nonmaleficence is the concept of not causing harm to others.
• Often explained as "above all do no harm", this principle is considered
by some to be the most critical of all the principles, even though
theoretically they are all of equal weight.
• This principle reflects both the idea of not inflicting intentional harm,
and not engaging in actions that risk harming others.
 3. Beneficence
• Beneficence reflects the counselor's responsibility to contribute to the
welfare of the client.
• Simply stated, it means to do good, to be proactive and also to
prevent harm when possible.
 4. Justice
• Justice does not mean treating all individuals the same.
• The formal meaning of justice is "treating equals equally and un-
equals unequally but in proportion to their relevant differences".
• If an individual is to be treated differently, the counselor needs to be
able to offer a rationale that explains the necessity and
appropriateness of treating this individual differently.
 5. Fidelity
• Fidelity involves the notions of loyalty, faithfulness, and honoring
commitments.
• Clients must be able to trust the counselor and have faith in the
relationship.
• Therefore, the counselor must take care not to threaten the
relationship nor to leave obligations unfulfilled.