Below is a model of Ethics

It can be seen that ethics consist of two relationships, indicated by arrows in the figure.  A person or organization is ethical if these relationships are strong and positive There are a number of sources that one might use to determine what is right or wrong, good or bad, immoral or moral behaviour. These include the Bible, the Koran and a number of other holy books. They also include that “still small voice” referred to as the conscience.  Another source of guidance is the behaviour of what psychologist call the “significant” others – our parents, friends, role models, associates, peers etc. The laws of the country prohibit any acts that are sufficiently hurtful to others and therefore laws offer guides to ethical behaviour. But distinction must be made between what is illegal and what is unethical. Not everything that is unethical is illegal. For example the law has limits regarding honesty. If one picks a lost item and keeps it, he probably has not done anything illegal but his act is unethical. If a clerk steals from his company in order to feed the poor, he has done an illegal thing but for ethical reasons. Decisions of ethics are quite difficult but all mangers need to know is that ethics goes beyond the minimum requirements by law and by market economy. There are so many unethical things that can be done in business, yet there is no law against them!

Simply having strong beliefs about what is right and wrong and basing them on the proper sources does not make one ethical. Behaviour should conform with what we believe about right and wrong. Type II ethics is the strength of the relationship between what one believes and how one behaves. To do what one believes is wrong is unethical. But to be ethical one must have both types of ethics. Type I ethics refers to the strength of the relationship between what an individual or organization believes and what the sources of guidance suggest is morally correct.