PFE NOTES

Q2. What is Ethics? Explain its theories.

Ans. Ethics is a system of moral principles. They affect how people make decisions
and lead their lives. Ethics is concerned with what is good for individuals and society
and is also described as moral philosophy.
Ethics = Morals + Reasoning
Ethics or moral philosophy is a branch of philosophy that "involves
systematizing,defending, and recommending concepts of right and wrong behavior".
Ethics serve as a guide to moral daily living and help us judge whether our behavior
can be justified. The concepts most directly associated with ethics are truth, honesty,
fairness, and equity.

Theories of Ethics (Utilitarian Theory, Right Theory & Casuist Theory)

1. Utilitarian Theory
This theory refers to an ethical theory that determines the morality of the actions of
an individual based on their outcome. If the outcome of any action is positive for
everyone in society, then it’s morally correct; otherwise, it is wrong. Therefore, it is
necessary to advocate actions for collective happiness and prohibit actions
promoting unhappiness in society. There are three principles that serve as the basic
axioms of utilitarianism:
i. Pleasure or Happiness Is the Only Thing That Truly Has Intrinsic Value.
ii. Actions Are Right Insofar as They Promote Happiness, Wrong Insofar as They
Produce Unhappiness.
iii. Everyone's Happiness Counts Equally.
Utilitarian ethics is the ethical action that maximizes the welfare of the maximum
number of people. That is why it is the only moral framework that can be used to
justify military force or war.

Moreover, this theory can get subdivided into two types:

i. Rule Utilitarianism: It is the belief that we should adopt a moral rule and if
followed by everybody, would lead to a greater level of overall happiness. An
example of rule utilitarianism in business is different pricing of product or
service for different types of customers. In the airline industry, for example,
many planes offer first-, business-, and economy-class seats. Customers who fly
in first or business class pay a much higher rate than those in economy seats,
but they also get more amenities—simultaneously, people who cannot afford
upper-class seats benefit from the economy rates. This practice produces the
highest good for the greatest number of people. And the airline benefits,
too.The more expensive upper-class seats help to ease the financial burden that
the airline created by making room for economy-class seats.
ii. Act Utilitarianism: states that any act of a single person that brings happiness to
a large number of people get deemed to be a morally correct act. An example
of act utilitarianism could be when pharmaceutical companies release drugs that
have been approved by the Government but with known minor side effects
because the drug is able to help more people than are bothered by the side
effects.
2. Right Theory
Rights Theory is duty-based approach to ethics. Most generally, a “right” is a justified
claim against another person’s behavior – such as my right to not be harmed by you.
Rights can be legal in nature, or they can pertain to morality or human rights. It
focuses on respect for human dignity.
➔The right to life
➔The right to liberty
➔The right to pursue happiness
➔The right to a jury trial
➔The right to a lawyer
➔The right to freely practice a religion of choice
➔The right to express ideas or opinions with freedom as an individual, etc.

3. Casuist Theory
 This theory is one that compares a current ethical dilemma with examples of
similar ethical dilemmas and their outcomes. This allows one to determine the
severity of the situation and to create the best possible solution according to
others' experiences. An example of casuistry is a Buddhist believing that
something bad is happening to him because the universe is balancing his karmic
debt.
 Casuistry is a case-based method of reasoning. It is particularly employed in
specific branches of professional ethics such as business ethics and bioethics.
Casuistry does not focus on rules and theories but rather on practical decision-
making in particular cases based on precedent.

4. Deontology
The Greek ‘deon’ means an obligation or duty. Deontology is simple to apply. It just
requires that people follow the rules and do their duty. It is an ethical theory that
uses rules to distinguish right from wrong. It argues that decisions should be made
considering the factors of one's duties and other's rights.
For example, suppose you’re a software engineer and learn that a nuclear missile is
about to launch that might start a war. You can hack the network and cancel the
launch, but it’s against your professional code of ethics to break into any software
system without permission. And, it’s a form of lying and cheating. Deontology
advises not to violate this rule. However, in letting the missile launch, thousands of
people will die. So, following the rules makes deontology easy to apply. But it also
means disregarding the possible consequences of our actions when determining
what is right and what is wrong.

5. Virtue Ethics
It is a philosophy developed by Aristotle and other ancient Greeks. It states that
practicing good habits such as honesty, generosity makes a moral and virtuous
person. This theory judges a person by his character rather than by an action that
may deviate from his normal behavior. According to Aristotle, by honing virtuous
habits, people will likely make the right choice when faced with ethical challenges.
Q3. What is the need for ethical behavior at workplace?
Ethics in the workplace is defined as the moral code that guides the behavior of
employees with respect to what is right and wrong in regard to conduct and decision
making. Ethical decision making in business takes into account the individual
employee’s best interest and also takes into account the best interest of those
impacted. Furthermore, ethical behavior doesn’t only apply to individual employees,
the organization itself should exemplify standards of ethical conduct.

Importance of ethical behavior at workplace are as follows:

 Ethics are essential in the workplace because a tough ethical code provides a
non-threatening environment with high employee morale.
 It will develop a discipline that will propel the work practices to a higher level
and will help set a high standard.
 It will promote teamwork among the workers and will also build strong
connections with their peers.
 The perception of ethical behavior can increase employee performance, job
satisfaction, organizational commitment, trust and organizational citizenship
behaviors.
 Working with integrity and work commitment are established and exemplified.
 Cost of business is reduced as unethical acts like bribery are eliminated.
 To reduce workplace harassment.
 Ethical practices and professionalism fosters a positive reputation, which can
attract and retain talented employees, loyal customers, and valuable business
partnerships.
 Ethics and professional conduct contribute to a positive work culture that
promotes respect, fairness, and equality.

Q4. What is ethical issue?

Ans. An ethical dilemma refers to a conflicting situation where an individual needs to
make a choice between one or more alternatives. Ideally, the choice they make
presents a dilemma because every available option may be wrong or incorrect. This
creates a situation where there is a conflict of morals or ethics. Ethical dilemma
examples are:
1. Your friend is on her way out of the house for a date and asks you if you like her
dress. Do you tell her the truth or do you keep mum?
2. At a restaurant, you see your friend’s wife engaged in some serious flirting with
another man. Do you tell your friend and ruin his marriage or do you pretend you
never saw that?
3. Your colleague always takes credit for your and others’ work. Now, you have the
chance to take credit for her work. Would you do it?
4. You are a salesperson. Are you ethically obligated to disclose a core weakness of
your product to your potential customer.
Ethical issues at workplace
1. Discrimination
Discrimination in the workplace occurs when someone faces unfair treatment on the
basis of their race, beliefs, religion or age. A person can also face discrimination for
other reasons, such as their gender identity. Direct discrimination is more obvious,
for example when an employer outright refuses to recruit an individual.

2. Workplace harassment
Harassment is a type of discrimination that involves inappropriate physical or verbal
behaviour. Other types harassment includes: Excluding a person from usual work,
Unexplained job change, Impossible job or deadline, Constant criticism or insults,
Physical or verbal abuse.

3. Supplier and customer relationship

Bribery
Discrimination between suppliers
Delaying or not making payments to suppliers
Dishonesty in making and keeping contract
Unfair Pricing
Cheating Customer
Misleading Advertising
Non disclosure of mandatory information on packaging
Sale of fake, spurious,duplicate,or hazardous goods

4. Employee behavior
Misuse of designation
Break rules and regulation of organization
Conflicts and arguments with other employees
Not a proper use of working hours
Theft

5. Resources
Use of funds and resources of the organization for personal purposes
Misreporting of actual number of days or hours worked
Divulging business secrets to the competitors or using them for personal gain

Q5. What are the employee rights and responsibilities at workplace?

Ans. Employee Rights
1. Equal Employment Opportunity: Employees have the right to be treated fairly and
without discrimination based on factors such as race, gender, age, religion, disability,
or national origin.
2. Safe Working Conditions: Employees have the right to work in an environment
that is free from hazards and that complies with health and safety regulations.
3. Fair Compensation: Employees have the right to receive a fair wage or salary for
their work and to be paid in a timely manner.
4. Workplace Privacy: Employees have a reasonable expectation of privacy in certain
aspects of their work, such as personal belongings and electronic communications.
5. Reasonable Accommodation: Employees with disabilities have the right to
request reasonable accommodations to perform their job duties.
6. Freedom of Association: Employees have the right to join or form labor unions
and engage in collective bargaining.

Employee responsibilities

1. Work Ethic: Employees are responsible for performing their job duties to the best
of their abilities and in a professional manner.
2. Compliance with Policies: Employees are expected to adhere to company policies
and procedures, as well as applicable laws and regulations.
3. Safety: Employees have a responsibility to follow safety protocols and report any
unsafe conditions or incidents.
4. Respect: Employees should treat colleagues, supervisors, and customers with
respect and professionalism, promoting a harmonious work environment.
5. Confidentiality: Employees must respect the confidentiality of sensitive company
information and customer data.

Employer Rights and Responsibilities:

1.Hiring and Firing: Employers have the right to hire and terminate employees based
on job performance and business needs, as long as it is done in compliance with
employment laws.
2.Providing a Safe Workplace: Employers are responsible for providing a safe and
healthy work environment and complying with occupational health and safety
regulations.
3.Compensation: Employers are responsible for paying employees in accordance
with employment contracts, wage laws, and regulations.
4.Communication: Employers should communicate job expectations, performance
feedback, and changes in the workplace effectively to employees.
5.Preventing Discrimination: Employers must take measures to prevent
discrimination, harassment, and retaliation in the workplace.
6.Reasonable Accommodation: Employers are obligated to make reasonable
accommodations for employees with disabilities as required by law.
7.Labor Relations: Employers have the right to manage their workforce but must do
so within the bounds of labor laws and regulations governing collective bargaining
and union activities.

Q6. Explain CSR.

Ans. Corporate social responsibility (CSR) is a gesture of showing the company’s
concern & commitment towards society’s sustainability & development. CSR is the
ethical behaviour of a company towards society. It can also be defined as:
“The continuing commitment by business to behave ethically and contribute to
sustainable economic development while improving the quality of life of the work
force and their families as well as of the local community and society.”
CSR addresses various issues like human rights, education, health, and safety. It also
covers corporate governance, working conditions, environmental sustainability and
more. Along with economic development, CSR also focuses on social and
environmental development.

Steps to Implement CSR:

1. Commitment of the CEO to prioritize responsible business data.
2. Stating company purpose and values
3. Identify the key stakeholders
4. Define the business principles and policies
5. Establishing the implementation procedures and management systems
6. Bench-marking against selected external codes and standards
7. Setting up internal monitoring mechanism to monitor CSR
8. To use understandable language
9. Setting practical and realistic objectives.

Benefits of CSR:
1. Improves Brand Value: Being socially responsible brings recognition into the
company. It shows that your company is more than just profits.
2. Builds Customer Loyalty: Your customers want to feel that they are a part of
something. Even if not directly, they feel good to be part of a company with a vision
and the willingness to do good.
3. Engages Millennials: “7 in 10 young adults consider themselves social
activists.”Everyone wants to feel they are part of a bigger cause that helps shape
lives. They want employers who match their ideals and are doing something to help
those in need.
4. Attract and Retain Talent: When employees feel they are part of an organization
that is more than just about profits, they’ll definitely want to stick around. To help
them achieve this, a lot of companies are now providing their employees with the
benefit of taking time off to volunteer in their organizations of choice.
5. Increases employee Engagement: CSR requires employee assistance. Right from
designing and developing the CSR program to actually volunteering for a cause.So,
when you include your employees in such important events, they feel valued and
appreciated.

Q7. What is sustainability? What are the three pillars of sustainability?

Ans. Sustainability is based on a simple principle: Everything that we need for our
survival and well-being depends, either directly or indirectly, on our natural
environment. To pursue sustainability is to create and maintain the conditions under
which humans and nature can exist in productive harmony to support present and
future generations.
1. Environment Protection
Many companies are focused on reducing their carbon footprints, packaging waste,
water usage, and other damage to the environment. Besides helping the planet,
these practices can have a positive financial impact. For example, reducing the use of
packaging materials can reduce spending and improve fuel efficiency.
For example, Walmart keyed in on packaging through its zero-waste initiative.

2. Social Development
It emphasizes a holistic approach to the well-being of all stakeholders, encompassing
consumers, communities, and, critically, employees. Central to this pillar is the fair
treatment and empowerment of employees. This encompasses decent wages,
healthy work environment, opportunities for professional growth, and benefits that
cater to their overall well-being. Practices such as offering comprehensive maternity
and paternity leaves, ensuring adequate rest with vacation allowances, and
promoting flexible work shifts contribute to a supportive workplace culture.
Beyond internal operations, it's about how a company interacts with its wider
community. This might involve community engagement projects, support for local
education, or initiatives that promote local culture and well-being.

3. Economic Development
A sustainable business model proposes an equitable distribution and efficient
allocation of resources. The idea is to promote the use of those resources in an
efficient and responsible way that provides long-term benefits and establishes
profitability. A profitable business is more likely to remain stable and continue to
operate from one year to the next, which creates longevity for both the business and
its employees.