Answer to Question #203867 in Management for Prabhdeep Singh

Question

Subject : Business Ethics and Corporate Governance

1. distinguish between ethics, morals and values ? ( Please give at least 8 points for difference )
2. Explain the nature of ethics in management of business standards and values ? ( please give at least 7 points for this with elaboration )

Answer 1

Difference between Values, Ethics and Morals

• Ethics determines what behavior is right or wrong while morals on the other hand is based in individualistic feeling of what is good or bad.
• Ethics are constraining in nature as its fixated on set of rules while morals and values are motivational in nature as it informs a decision of doing or not doing something.
• Application of ethics is literally uniform across the communities while values are majorly dependent on person to person. What I believe on may be not what another person believe on.
• Morals and values are personal set of rules that are not binding in law while ethics are foundation of societal rules and regulations that are punishable in law.
• ethics derive its source of influence from institution or an organization but morals and values derive their influence from family, religion or culture.
• Values main focus is to attach importance to a set of feelings/beliefs but ethics main key area of focus is clear determination of rightness.
• Values and Morals are catalyst for critical thinking to minute aspects of behavior while ethics are set of institutional agreed upon principles to guide people on how to go about dealing with issues in organization set up.

Nature of Ethics in management of business standards and values

• Entrenchment of ethics in a business set up helps organization to achieve long term growth in the sense that there is clear vision that takes into consideration all consumers, stakeholders and employees.
• Sound implementation of ethics tend to reduce risks and costs as there will be no legal suits in-terms of price integrity, black marketing et al.
• With clear communicated set of policies and procedures there is better decision making across the levels of management as everyone is reading from same script of social values and moral principles. The business is able to take appropriate move from informed point of what is right or wrong.
• Organization set on sound business ethics is able to protect the interest of society through cooperate social responsibility by looking into the welfare and demands of the society for example infrastructural development. Every business should not put up policies that affects the existing society.
• Increases profitability of the company through prudent utilization of resources by the personnel of the organization. Also when everyone adheres to ethics productivity tend to automatically rise and as sales increases profits rises significantly at the same rate.
• Also a company that have a strict adherence to set ethics have a very good society goodwill which in long run improves customer referrals which translates to broader customer base.