Chapter-01: Introduction to Business Ethics.

01.Define morals, ethics and values.

Ethics: The word "ethics" is derived from the Greek word "ethos," which means habit. Ethics
describe a generally accepted set of moral principles and norms by which human actions may
be judged. Examples:
 Honesty: Being truthful and transparent in your actions and communications.
 Integrity: Upholding moral principles and acting.
 Responsibility: Taking ownership of your actions and their consequences.
 Accountability: Being answerable for your actions and accepting the consequences.
 Sustainability: Acting in a way that promotes the well-being of the environment and
future generations.
Ethics is a branch of philosophy that addresses questions about morality that is, good vs.
bad, noble vs. ignoble, right vs. wrong, and matters of justice, love, peace, and virtue.
Morality: Morals describes the goodness or badness or right or wrong of actions. Morality can
be either descriptive or prescriptive, depending on how one approaches the topic.
 Descriptive Morality: Descriptive morality is focused on describing how people
believe. They should behave without necessarily agreeing or disagreeing with their
actions. For example: Donation.
 Prescriptive Morality: Prescriptive morality is focused on prescribing how a person
should behave. For example: Namaz.
Values: Values are the beliefs and principles that guide and shape our behavior and decisions.
Values are the rules by which we make decisions about right and wrong, good and bad. They
also tell us which are more important or less important.

02.Define business ethics.

Business ethics is the study of proper business policies and practices regarding potentially
controversial issues, such as corporate governance, bribery, discrimination, corporate social
responsibility and fiduciary responsibilities. Business ethics is also known as corporate ethics.

03.What do you mean by non-ethical values?

Non ethical values simply deal with things that we like, desire or find personally important.
Examples of non-ethical values are-
 Money;  Pleasure;  Pleasure;
 Fame;  Happiness;  Personal freedom;
 Status;  Fulfillment;  Being liked;
These are ethically neutral, one of the guides to ethical decision making is that ethical values.

04.Why we need values and morals?

It is important to carefully consider your values for several reasons:
1. They provide a moral area that helping us distinguish between right and wrong.
2. This guides our behavior and decision-making and ensuring that we act in a right way.
3. Values and morals can raise healthy relationships, as they promote honesty, respect, and
empathy.
4. Values and morals help us navigate ethical dilemmas.
 5. Life Guide: Values and morals could guide your life towards goals, rather than your life
being controlled by self-serving motives, accidental occurrences and bad habits.
6. Inspiring & Motivating Life: Values and morals can not only guide but inspire,
motivate and giving you energy for living and doing something meaningful.
7. Self-Improvement: Sensitivity to a failure to live may lead to constructive self-
dissatisfaction which motivates you to improve.
8. High Self-Confidence: High values and some success are necessary for high self-
esteem.

05.Explain-“Code of ethics.” Followings are the summary of general codes of ethics:

1. Honesty: Honesty means being truthful and sincere in our words, actions, and
intentions. For example not doing fabrication, falsifying, misrepresentation of data or
not deceive colleagues as well as the public.
2. Integrity: Keeping promises and agreements; acting with sincerity; striving for
consistency of thought and action.
3. Confidentiality: Protecting confidential communications such as papers submitted for
publication, personnel records and patient records.
4. Carefulness: Avoiding careless errors or negligence; carefully examining the work of
the peers.
5. Openness: Being open to criticism and new ideas. Sharing data, ideas, tools and
resources etc.
6. Objectivity: Avoiding or minimizing self-deception. Striving for avoiding bias in
experimental design, data analysis, data interpretation etc.
7. Respect for Intellectual Property: Honoring patents, copyrights, and other forms of
intellectual property. Give proper acknowledgement for contributions to research.
8. Respect for colleagues: Respecting the colleagues and treating them fairly.
9. Social Responsibility: Striving to promote social good and preventing social harms
through research, public education.
10.Non-Discrimination: Avoiding discrimination against colleagues or students on the
basis of sex, race ethnicity, or other factors.
11.Legality: Knowing and obeying relevant laws, institutional and governmental policies.
12.Animal Care: Showing proper respect and caring for animals.

06.State 12 ethical principles for business executives.

1. Honesty: Honesty means being truthful and sincere in our words, actions, and
intentions. For example not doing fabrication, falsifying, misrepresentation of data or
not deceive colleagues as well as the public.
2. Integrity: Keeping promises and agreements; acting with sincerity; striving for
consistency of thought and action.
3. Loyalty: You need to be loyal and reliable to your team, company and yourself.
4. Respect: Being ethical means treating everyone with respect.
5. Fair: In all of your actions, you must strive to be fair and just.
6. Caring: An ethical business manager is caring, benevolent and kind to both customer
and staff to reach their goals.
7. Morale: Ethical business managers enhance the good reputation of a company. The
company reputation is very important, as well as pride and morale of their employees.
 8. Accountable: Being ethical means hold yourself accountable. Accepting personal
accountability for decisions, and any consequences.
9. Excellence: Being ethical in business in delivering the highest quality of service or
products.
10.Keeping Your Promises: Your word is on most important tools as a business manager
every promise should always fulfill.
11.Obeying the law: An ethical executive always obeys the law, and never breaks the rules
and regulations that surrounding their business activities.
12.Being a Leader: You need to determine the principles and ethics you want your team,
and active role as a leader to be a positive role.

07.Lawrence Kohlberg’s stages of moral development.

Lawrence Kohlberg building upon Jean Piaget's cognitive theory of moral development, he
developed three levels with six stages to reflect our progression through moral development.
These levels describe how our ideas of right and wrong change as we grow.
 Level-1: Pre-conventional Moral Development: The first level in Kohlberg's theory is the
pre-convention level of moral development has two stages and is based on punishments
and rewards. People at the pre-conventional level of development make decisions right and
wrong to earn rewards or avoid punishment.
 Stage-1: It’s all about the rule. Moral decisions based on either being good by following
the rules or being bad by breaking them. For example, a child may think, 'I don't want
to be spanked. So I'm not going to hit my brother.
 Stage-2: It’s all about self-reward. Moral decisions in this stage are based on getting a
reward that is personally meaningful. For example, a child may think, I want dessert, so
I will eat all of my vegetables.
 Level-2: Conventional Moral Development: The conventional level of moral development
focuses on parental rules and societal laws. It also has two stages. They are-
 Stage-3: It’s all about social conformity. For example, student may think, “Students
who cheat on the examination are bad, so I will not cheat.”
 Stage-4: It’s all about law and order for all. For example, someone may think, if I steal,
I will break the law and breaking the law is wrong.
 Level-3: Post-conventional Moral Development: The third level is the post-conventional
level of moral development considers humanity and universal ideas of right and wrong, it
also has two stages.
 Stage-5: It’s all about cultural norms and social contracts. For example, someone may
think, “I pay taxes because it improves the lives of all citizens.”
 Stage-6: It’s all about justice and a moral principles toward humanity. For example,
Abolitionists fought to end slavery.

08.Explain-“Code of ethics in Islam.” Quran and Hadiths indicates eleven codes of ethics
on Islamic Sharia'h. These are:
1. Believe in Akhirah & accountability 6. Truthfulness;
to Allah; 7. Trust & responsibility;
2. Honesty; 8. Duty, obligation and liability;
3. Sincerity; 9. Justice without discrimination;
4. Fairness; 10.Mutuality & consultative approach;
5. Transparency; 11.Science & knowledge.
09.Islamic key business principles.
1. Love Allah more than your trade.
2. Deal with Muslims before dealing with non-Muslim in case of business.
3. Use mutual consultation in the affairs of business.
4. Do not deal in fraud while doing business.
5. Remain fair in both promises and transactions.
6. Be honest, truthful and honuor while performing business.
7. Do not take or give bribe.
8. Avoid all types of transactions prohibited by Shariah.
9. Deal with justly in appropriate measurement.
10.Deliver goods and services of desired quality.
11.Avoid giving defective and low quality products.
12.All actions and business transactions must be aimed at doing well for all parties.
13.Keep all the transactions in writing in order to avoid confusion.
14.Keep your promise and perform all actions relating to the business.
15.Do not make any discrimination between male and female as employees, customers,
and others.
16.Treat your customers, employees & others with compassion and forgive them as much
as possible.

#NOTE:

Md. Mehedi Hasan Sikder

Department of Accounting and Information Systems
Roll: B1904003
Session: 2019-2020
E-mail: [email protected]
[email protected]
Islamic University, Kushtia, Bangladesh.