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Chapter 1 Business Ethics

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BMB2033: BUSINESS ETHICS AND VALUES

Course Leader: Shaharudin Yunus

COURSE NOTES

TOPIC 1: Fundamentals of Values, Ethics and Morality

LEARNING OBJECTIVES

At the end of this chapter, you will be able to:
Define values
List the sources of value
Identify the roles of values in decision-making
Identify the definition of ethics
Identify the nature of ethical reasoning
Identify the concept of ethical standards and judgement
Define morality
Identify the various phases of Kohlberg's theory of moral development
Identify the differences between ethics and morality
Identify the similarities between ethics and morality
Identify the basic unification of ethics, values and morality
NATURE OF VALUES

1.1.1 Definition
A small company has just employed Rizal as a marketing executive. As a fresh graduate, Rizal feels enthusiastic about the job and is determined to be a good worker. On the first day of work, new employees were briefed on how work is done. At that point, Rizal realized that some of the company's marketing strategies somewhat deceived the customers. This is just one example of ethical issues in business that we will look at in this course.

Values, ethics, and morality are three concepts used in discussing 'Business Ethics and Values'. We will see how they should be applied in businesses. However, in this section, we will discuss values first.

Values are defined as fundamental principles or enduring beliefs about the most desirable conditions and purposes of human life. Values determine our actions and behavior, and they enable us to understand why people act the way they do. In simpler terms, values are normally what we want to have or to be associated with in life.

However, values are actually hard to define in specific terms because they rely highly upon one's interests, culture, societal norms and upbringing. In other words,

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