Ethics:Ethics are the principal of conduct, governing an individual or groups.

OR Ethics is the discipline that examine the moral standard of society. ` Ethics is the study of morality. Ethic work originated from Greek word

Ethos which means customer and characters. The word ethic is wider term then morality. Ethic is the formal study of those standard or conduct. Ethic stress on social system in which those standards are applied.

Moral:Moral is the study about good or bad thing. Morality is derived from Latin word Mosalis which mean customer and character. Morality defines personal or individual character. Types or Portion of Ethics: Descriptive Ethics:It simply tells us about the behavior of individual which he or she behaves in certain situation. It does not describe that how he or she has to behave in certain situation. Normative Ethics:-

It simply tells us that how people have to behave and what behavior should be performed by people.

Reason of studying Ethics:o Removing conflict. o Equality. o Order in society. Characteristic of moral standards:1. Moral standards deals with matters that can seriously injure or harm and give benefit a society or human beings. Example robbery, assault etc. 2. Moral standard are not established or change by authoritative bodies nor does their validity rest on voting procedure. It rest on the adequacy of reason that are taken to validate or justify an act. 3. Moral standards should be preferred over self interest. 4. Moral standards are based on impartial consideration. 5. Moral standard are associated with special emotion e.g. happiness, embarrass etc. Business ethics:Business ethics is the behavior that a business adheres to in its daily dealing with the world. Business ethics is the specialized study of moral right and wrong.

Moral principal for business:a. Business should avoid causing unwarranted harm. b. Business should be fair in all activities. c. Respect for human rights. d. Business should not infringe on choices of people. e. Business should not deceptive in their discipline. f. Business should consider all stack holder. Ethical code:Set of principals, governing morality and acceptable behavior. E.g. behavior toward customer, society and employ etc. Every organization has its own business code it diverse from business to business. Benefit of business ethic in business:a. Smooth running. b. Goodwill. c. Profit. d. Reputation. e. Productivity. f. Reduce risk. There are two types of customer. a. Internal customer :Internal customer is employ etc. b. External customer:-

External customers are consumer etc.

System theory:input processing output.

Type of process:There are two type of process. i. Analytical process:Making of those good which are already made. Like mineral etc.

ii. Synthetical process:Making of those good which are manufactured from raw material. From one shape to another. like computer, automobile etc.

Application of moral standards or responsibility on individual:1. Family:Nurturing and protecting family life. 2. Economic:Producing and distributing the materials on which human life depend. 3. Legal:-

Restraining and regulizing the use of force. 4. Political:Organizing the mean for making collection. 5. Education:Creating and preserving cultural decision, values, art, knowledge and technology.

Economic institution:Economic institution is that institution which uses some resources and produce good in a proper way for the betterment of society. E.g. bank, business etc. Corporation:A corporation is a legal entity, which work as an artificial person which can sue or be sued, having limited liability, common seal and can enter into a contract. OR Company is artificial person, created by law, having limited liability, registered name and monogram and common seal. People who make or start a company is known as promoter.

Company consist of Stock holder:-

Who contribute capital and own the corporation but liability depend on amount of contribution. Officer and director:Who administrate the asset of corporation. Employees:Who provide labor and do basic work related to production and service. John searls:A person from whom question has been ask that who will be sued company or the director in case of a mistake. First of all he describes the company that in company there are certain number of people in certain circumstances, in a certain relationship. Then he told that corporation act when there is number of people who perform their duties in certain circumstance and relationship. Then he conclude that director take action and operate the corporation on behalf of owner then in such case director will be sued in case of any kind of mistake. Company will not be sued.

Multinational company and business ethics:Firms that maintain manufacturing, marketing, services or administrative operations in many different host countries (in which product have been launch) are called MNES. They have centralized system and having same management system.

Parent country.

Unethical practices of multinational corporation:i. They use cheap labor and resources. ii. They always go to less stringent loss. iii. They create monopolies. iv. It creates economic inequalities. v. They manipulate in that country with technology. vi. They also manipulate our tax policies. Multinational and international company:Multinational company adopts the culture of host country while international company doesnt adopt the culture of that particular host country. While franchise sold only their name. Strategy and policy:Strategies are long term course of action, which is difficult to change and it is at high level. Simply it is what to do. Policy is the rule and regulation or procedure for achieving of goals. It change from country to country and it is made at lower level. Simply it is how to do. Curtle and dumpling:Curtle is price fixing and dumpling is intentionally lowing the price of product.

Beurocratic system:The systems which have the following five characteristic are suppose to be beurocratic system. 1. Selection based on technical qualification. 2. A proper herarical system. 3. Rules and regulation. 4. No favoritism. 5. Impartial consideration. Ethnocentrism:Looking superior to his culture then other. Exocentrism:Looking inferior to his culture then other. Moral development:Moral development means that our moral act can also nurtured as our body parts. They also develop. This idea was represented by lowrence Kohlberg who based on the piageds theory. After doing 20 year of research he extend the idea of piaged. Piaged give only two stage of moral development while Kohlberg extend it up to six stages. Kohlberg told that moral development is a continuous process that occur through out our life span.

He starts his work by gathering some child and giving him a simple task to perform. Or ask a simple question. The Heinz Dilema. Heinz was a person whose wife was suffering from serious cancer disease. For the treatment of his wife he needs a type of vaccine which was very expensive. He went to a drug shop and told that please give me that vaccine by taking half of the money and the rest of money I will give you after some days. He refuses to give the vaccine then he broke the glasses and steal the vaccine for his wife. Now Kohlberg told this story to his children and ask that whether he did a wrong or right act. Moral development consists of three level in which each level consist of two stages. No matter a child can be n first or sixth stage or an old person can be in first or sixth stage. Moral development does matter about the age. Level 1st. Pre conventional level:o 1st stage. Punishment and obedient:Mostly children or young children are in this stage where the rules and regulation are fix and almost some elder can also be in stage. They avoid doing something due to fear of punishment and in case of obedientness they got a pleasant smile. o 2nd stage. Instrument and relativity orientation:Those people are in this stage who considers something right in his own point of view

they dont have to ability to think about the view or opinion of other. They only do those acts which fulfill their self interest or need. Those who are self centered. Level 2nd. Conventional level:o 1st stage. Interpersonal concordance orientation: We often call this stage to good boy-good girl stage. At this stage we always think about to have a good name and we want to be appreciated. At this stage our focusing point is to fulfill the expectation of people surrounding us by loyalty, trustworthy and honesty etc. Doing right is motivated by the need to be seen as good performer in ones eyes. o 2nd stage. Law and order orientation:At this stage we always goes to obey the law its not important that whatever is going on we just focus on maintaining law and order in a society. We will consider the society. In right act are those which is not against law and wrong acts are those which are against law. Level 3rd. Post conventional level:- also called autonomous or principled stage. o 1st stage. Social contract orientation:-

At this stage those act are said to be moral acts which are agreed by over all society. Consenes (opinion of society), agreement and due process. At this stage we look at the bigger picture like general acceptable by the society. Due to different opinion over some task of different people in a society cause conflict. o 2nd stage. Universal ethical principle:At this stage those act are consider moral act which are universally accepted. Like human right, respect for dignity and respect for human life. But at this stage even the high civilized country are also not found. Manager skills:There are three basic skills that must exist in every manager. 1. Conceptual skill. 2. Technical skill. 3. Interpersonal skill. Moral reasoning:Moral reasoning is a reasoning process in which we judge the behavior, institution or policies that whether they are in accordance with or in violation of moral standards.

Component of moral standard: Understanding of what moral standard is required, prohibit and value or condemn. Evidence or information that shows that a particular behavior, institution or policies has to be acquire, prohibit, value or condemn. Different ethical system:There are two kind of ethical system Teleonogy or Consequantialis:This theory focus on the consequences (result) caused by an action. It is an end that will determine the morality of an action and not the action itself. a. Egoism:This theory was espoused by economist Milton Friedman who suggested that business moral obligation are maximum of profit and obey the law. It defines right and wrong in term of consequences to ones self. It belief in consequences but consequences to ones self interest.

b. Utilitarianism:-

It says that morality of an action depends upon the results/consequences which produce greatest happiness for greatest number of people not for ones self. It focuses on the majority. It encomposes the cost-benefit analysis. Criticism on utilitarianism: Sometimes it is difficult to measure the cost and benefit result. We look at the majority of people while harming the minority. Sometime the action cant predict the consequences or result of your action. Difficult to find out ratio of people. Deoniology or Non-consequantialis:This theory focus on the right (hoqoq) of all individual and the intention of the person performing an action.

a. Universalism:This theory told us that whatever is correct for us should be correct for all the people in the world. This theory was exposed by imonanual Kant and the theory was categorical imperative. He gives two main points for universalism. i. Whatever I am choosing for myself I will allow the other to choose the same. ii. We should not use a man as a mean toward an end.

b. Rights of individual:It is right of an employ that we have to pay right salary to spend a decent life and also provide him good and healthy environment. Individual had moral rights which are not negotiable.

Right is an entitlement to do something. There are two type of right. Natural and artificial right. The right which has been given by the nature is known as natural right such as eating, living drinking etc.

Those right which has been created by the people and constitution. Like free movement education etc. c. Eternal law:It is divine law. It means that whatever we are doing they are from God side and hence obeying of that law are morality. Like sacred or religious books.

Mach personality:- selfish people. Extroward are active people and untoward are inactive. Market:-

Market is a place where buyer and seller met or buying and selling take place. Types of market: Labor market:A market where labor are available. Industry market:A market where raw material and supplies are available. Retailing market or finish product market:A market where ready to use product are available. Or where finish product are available.

Market system:There are two type of market system:1. Free market system:A market where there is no intervention of government in market OR A system without economic intervention and regulation by government except to regulate against fraud and force. This system is somehow related to laizzer-fair (there should be less intervention of government in market which was introduced by Adamsmith. 2. Command/planned/directed market system:A system where there is complete intervention of government from manufacturing till to consumption such system is known as command market system

In such system the main government or government worker council make and discuss plan. Such system is more common in china 1949-1970.and during the year of Taliban such system was exist.

Integrated business:Where management decides the affair of the business it is conveyed in the form of budged. Distribution justice:a. According to an equal share. b. According to individual effort. c. According to ones need. d. According to social contribution. e. According to merit. Responsible business conduct: Consumer satisfaction. Employee motivation. Quality of goods and services. Welfare of society and human being. Most important responsible business conduct is moral code of a culture. John lock:John lock was a philosopher who gives the following view about free market.

o Allow healthy competition. o Huge innovation in the market. o Having no monopoly of an individual. o Quality competition each and every class are served. o Government is not important for a nation. o Resistance of government is harmful. John lock give two natural rights. Right to freedom:Every one is naturally born free so government has not to limit his life or worker. Right to property:We will be free for the ownership of anything. Right and duty go hand in hand. Basic essential thing for a State: Population. Land. Government. Sovereignty.