In some part of the world some beliefs in circumcision of women while other feel it is barbaric and immoral. There are four standards for evaluating strategies and tactics in business and negotiation: end-result ethics, duty ethics, social contract ethics and personalistic ethics. MARKETPLACE ADVANTAGES: A business that is done in a manner that is appropriate and follow the business ethics by conducting itself in a good and reputable ways has the advantages of taken over the marketplace and dominating the market environment and be the major player in the industry. Aside from the method of categorization discussed in this lesson, another way people categorize different types of ethics in business is based on application. A business or organization builds integrity and trust with society by demonstrating sound business ethics, There are four approaches for developing a presentation which are: a speech and lecture a workshop a discussion and a group activity. Business ethics benefits the bottom line. It is the reflection on and definition of what is right, what is wrong . Most people will want to do business with any organisation that abide by the business ethics especially organisation that cater for all its stakeholders and give them maximum satisfaction in all its dealing. Key Takeaways. Managers . Organisation should provide after sales service and offer its customers and show ethical behavior towards its customers at all time. CONSEQUENTIALISM: This is the theories which result into the consequences of a particular action which has a valid and moral judgement about the action. These cookies will be stored in your browser only with your consent. Periodic ethics workshops are needed to sensitise people to workplace circumstances in which ethics issues may arise. Ethical behaviour of people doing business is very important in our society. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. They are make sure they pay their employees good working conditions and good salaries so that they too can work since they are been paid for the services they render. . Many ethical approaches exist, each with a distinct twist on what it means to behave ethically'. Friedman doctrine - the only social responsibility of business is to . Social responsibility Each of these types is focused on different aspects of a business's operations and activities from an ethical viewpoint. ABSOLUTE ETHICS: The belief that there is only one truth and code of conduct which people generally belief in, which everyone obey and is the truth and everyone must obey it and people must be aware of it. The result of this plan is that it maximizes overall utility by keeping people safe and protecting the company from liability. Step 4: Know relevant laws and regulations. 9:10; Col. 3:22-24 ). Plus, get practice tests, quizzes, and personalized coaching to help you Management: A Practical Introduction (5th ed.). Toward Customers . copyright 2003-2023 Study.com. 3. Introduction 3 To unlock this lesson you must be a Study.com Member. The best decision here will be the one that satisfies . Press ESC to cancel. This is not the way to please people or God. Many businesses behave in divert or different ways depend on the way its formed by the owners of the business. A manager needs to ensure that the code is read, understood, believed and remembered. Current Issues in Business Ethics, Peter W. F. Davies . It was also noted that BP was spending money on project instead of spending money on safety of lives of its employees. The following list contains a few examples of approaches to business ethics. The following are five universal approaches to consider when making those decisions: Utilitarian Approach - What benefits and what harms will each course of action produce, and which alternative will lead to the best overall consequences? 2.3 Relationship between Quality and Competitiveness, Premium Rawls argued that justice is based on the concept of a "veil of ignorance." The four types are employee, self-employed, business owner and investor. lessons in math, English, science, history, and more. Ethics Straw Men Approaches To Business Ethics . We probably also have an image of what an ethical . WORKING CONDITION: An organisation should provide an enabling and conducive environment for its customers, employers, suppliers, distributors and also other stakeholders so that there would be safe and accident free environment at all time. An error occurred trying to load this video. 2.1 Quality 4 Utilitarian theory and business ethics. Workplace misbehaviour: 7 Do you think only senior executives make decisions? There are two . Ethical Approaches Four Ethical Approaches Four Ethical Approaches- By Buie Seawell, Daniels College of Business, University of Denver There are many ways to define "ethics," almost as many as there are ethicists. Business Ethics Quarterly (Cambridge University . Work in the public interest. The basic Christian ethical theory of St. Augustine and others also has to do with organizing desires. This title includes innovative features designed to enhance student learning, including case studies, application scenarios, and links to video interviews with executives, all of which help instill in students a sense of ethical awareness and responsibility. The two differ in the sense of size. The following are some of the ethical issues in an organisation: This has to do with employment of employees, the minimum wages that workers will be paid, working hours which will be made known to the employees when they are employed, also the employment terms and conditions must be obeyed. This as to do with ethical issues relating to health care provider who are in charge of health care of individual or group of people. Chapter Four Ethics in International Business 4-2 Introduction Business ethics are the accepted principles of right or wrong governing the conduct of business people An ethical strategy is a strategy or course of action that does not violate these accepted principles McGraw-Hill/Irwin International Business, 6/e . This includes choosing what activities a company should or should not engage in, how to manage a business so that it treats its employees and stakeholders fairly, and what the broader social responsibilities of a company are. Business ethics The main source of conflict in decision making is the fact that two parties have chosen different approaches. A well-implemented ethics program can also reduce losses. This cookie is set by GDPR Cookie Consent plugin. These are called nonprogrammed decisions. A ____ distribution is one that is considered fair and equitable. Equal opportunity should be given to all in the society without discrimination of age, color, sex, or ethics or where the person should have come from, everybody should be given equal opportunity to in the society. For instance transfer of employment contracts and how employee are been protected during transfer of contract and takeovers of a contract from another organisation to another. According to justice theory, this pursuit of individual gain will likely lead to an unfair distribution of resources and opportunities. Environmentalism The Friedman Doctrine states that the only social responsibility of business is to increase profits, staying within the law. Different branches of the study of ethics look at where our views of morality come from and how they shape our everyday lives. The belief of other is that they have the right and they should be given the opportunity and privilege, this are some of the ethics in a business, if the organisation and stakeholders can understand today business organisation and our society, things will work well there will not be discrimination or whatsoever in our society, everybody will have equal opportunity and things will work well for us all in our environment. The difficulty, however, is when rights are in conflict, such as employer and employee rights. If we obey our duties we are doing morally things and if we fail to follow our duties we are doing immoral things. However, you may visit "Cookie Settings" to provide a controlled consent. This document is designed as an introduction to thinking ethically. Business ethics is the system of moral and ethical beliefs that directs the behaviors and operations of an organization and its personnel. four approaches to business ethics. There is different kind of people in the world coming from different ethnics group which moral belief and culture is different, therefore peoples belief and thinking to things happening in our society now is different. Necessary cookies are absolutely essential for the website to function properly. Justice theory is a philosophical framework for ethics focused on providing fair and equitable distribution of goods, services, and rights. How Does Enterprise Computing Support BusinessOrganizations? 278 Teaching Business Ethics: The Principles Approach 2.1. increase profits, so long as the company . Other laws, such as labor standards and environmental rules, also regulate corporate behavior. Business ethics is the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance , insider trading , bribery, discrimination . When applying social responsibility with ethics we must look at it from multiple sides; lets use an example Robert was interested in learning about the workings of professional burglars. Scandals. Consumer safety is a major factor in considering ethical theories in business. We want to help businesspeople regain the trust that's been squandered in the last few years." The book differs from other business ethics texts in five key ways: 1. How is decision making part of the planning function? compliance approach. Example of Unethical and Illegal Organizational Behavior Utilitarianism is a theory centered around analyzing the consequences and results of particular decisions. These cookies track visitors across websites and collect information to provide customized ads. This cookie is set by GDPR Cookie Consent plugin. ID NO: TP027895 An example of utilitarianism in business is a company setting up a workplace health and safety plan. To view or add a comment, sign in, Ethical behaviour in the utilitarian approach is guided by what will result in the greatest good for the greatest number of people. In industrial sociology key writers on misbehaviour, MANAGING BUSINESS (BM027-3.5-2) ASSIGNMENT TITLE: INDIVIDUAL ASSIGNMENT Several years ago he made contact with someone who could put him in touch with a professional burglar although the burglar had, Unit 2 Essay Assignment: FOUR APPROACHES TO DECIDING ETHICAL DILEMMAS It finds its inspiration in theories of virtue ethics and a broader literature on the ethics of care. There are four major ethical theories: deontology (or duty), utilitarianism, rights, and virtue. It can be helpful to explore a few examples of business ethics to understand the various theories and approaches better. Another reason why business ethics is important is that it can improve profitability. All rights reserved. Employees' actions aren't based solely on personal values; they're also influenced by other members of the organization. Key takeaways: Business ethics are policies that guide the behavior of corporate entities, especially regarding controversial subjects. There are numerous benefits of delivering care in an ethical approach for reasons such as the individuals independence and rights are respected and taken into account, the individual is empowered and therefore feels confident in the fact that they have the power to say what happens in their care and how they live their . For example, a code of conduct may include guidelines for treating customers and other stakeholders fairly, protecting confidential information, and avoiding conflicts of interest. The technique involves screening candidates without names, gender, or other identifying information to reduce bias and prejudice during the recruitment process. Anonymous recruitment: Anonymous recruitment is a practice that incorporates the concept of justice theory to ensure fair hiring practices. Ethical theories depend on what is right and wrong and the end result of the action. This are the laws governing employment related issues which might happen to employees in an organisation. 76 lessons. By working through all avenues, the final outcome is more likely to be ethically strong. A legal judgement in New Zealand has also granted an employer a right to view an employee's private Facebook and bank account transactions in the context of defending a decision to dismiss the employee. culture. How A Personal Loan Helps Save You Money? Deonotological approach:. The second major meaning behind the term is . Business ethics give morals in an organisation because employees know that their rights and safety are well protected which will make them to perform better and work together with other members of the organisation as a team in order to have positive result. Ethics is a branch of social science. et al Management (2012) 6th Edition Pearson Australia All other trademarks and copyrights are the property of their respective owners. Virtues. Buddhism, Managing Employee Misbehaviour for Promoting Business Ethics The five principles, autonomy, justice, beneficence, nonmaleficence, and fidelity are each absolute truths in and of themselves. LECTURER: DEVIKA A/P NADARAJAH 1) The utilitarian approach: for the greatest good. Should an instance occur, the result could be devastating to your company's finances and reputation. An organization that is perceived to act ethically by employees can realize positive benefits and improved business outcomes. You also have the option to opt-out of these cookies. Ethical considerations is very important in a business when business are done ethically the business will be profitable and meet the expectation of its stakeholders. Most people use four different approaches when making ethical decisions. This argument basically says that humans are unparalleled in the fact that they can freely make decisions to do and act how they want. Fabricating product quality data Case Study: The Coca-Cola Company Struggles with Ethical Crisis, Individual Privacy - A Right Masked as Luxury, Importance of Ethics in Business Management Practice, Business Ethics Case Study: The Volkswagen Emissions Scandal, Business Ethics Case Study: Caterpillar Tax Fraud Scandal, Carroll's Pyramid of Corporate Social Responsibility. Introductory dilemma: Cultural relativism - ethics are culturally determined and firms should adopt the ethics of the cultures in which they operate Other leading journals also date from this period, with Business Ethics Quarterly appearing in 1991, and Business Ethics: A European Review in 1992. This is made up of different people from different national origin and nationality. I would definitely recommend Study.com to my colleagues. Business ethics The theory of utilitarianism relates to the actual consequences of decisions and focuses on maximizing the greatest possible benefit for the greatest number of people. Download Free PDF. These four approaches are known as public speaking when they are presented to a group of people. 2.2 Competitiveness 4 It will allow a good customers relationship between the customers and the organisation. Term It was noted that the company was endangering its employees safety by cost cutting. This leads to more considerations in the larger of the two group communication where there may be many different interpersonal relationships within the small group. The second approach gives priority to the ethical values. This theory holds that people have the right to pursue their happiness and well-being as long as it does not infringe on the rights of others. 1. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. Abraham Maslow in his hierarchy of needs theory said the environment can affect our thinking if we are not careful about our environment and our thinking and attitude in our environment. 80-82) Teleological approach:. If implemented correctly, this plan will minimize the risk of injury to employees while on the job. Table of Contents Thus, a utilitarian 'cost-benefit' analysis might show that in the short run the firing of thousands of employees may improve a company's bottom line and provide immediate benefits for the shareholders. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. The command to "rule" (have dominion) means that humans should give responsible leadership in creation. Overview of issues arising out of the threats to the environment posed by technological advances which put into question mans relationship with the environment and the environments moral status eg: the preservation of endangered species the conservation of natural habitats overfishing deforestation depletion of ozone layer pollution from machines and cars, Premium Ethics is more than a matter of individual behavior; it's also about organizational behavior. Many companies go beyond the law, creating ethical codes and guidelines. 3:10; Psalm 128:1-2 ). Let's start with the "interest-based" avenue. The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". Your email address will not be published. Corporate social responsibility The ethics of care is discussed in the following section. The four constitutive aspects of business ethics (individual, managerial, organizational and societal ethics) proposed by Mel were chosen as the . . There are various stakeholders who are part of the success and management of every business in an organisation. Ethics in Management TREATMENT OF CUSTOMERS: An organisation should treat its customers with good customers service and provide an enabling and safe environment for its customers. Why is decision making important in an organization? The Challenge . HAND OUT DATES: 26TH MARCH 2013 4 What are 3 ways to make ethical decisions? Ethics involve discussions of moral obligations, but do not necessarily hinge on religious overtones. business school students and faculty presents those charged with teaching ethics in business schools with four major challenges: 1) the challenge of definition, 2) the challenge of abstraction, 3) the challenge of cultural relativism, and 4) the challenge of integration. In some ways, business ethics is regulated and mandated by law. Chron.com comments that 'Managerial ethics is a basic part of business ethics. Ethics If a business follows ethics it will achieve the business objective and the business will be successful. ETHICAL AND SOCIAL RESPONSIBILITY: The purpose of every business objective is based on the belief and how to make its environment friendly to customers and safe. The judgment about consequentialism should be significant. An example of a legally mandated right is the right to a safe working environment, regulated by law in many jurisdictions. In a presentation these four approaches should each include all three elements of the rhetorical triangle and they need to connect or else even if one element is missing the presentation will fail (AIU Online 2010). prudence, justice, temperance and fortitude (courage ). This cookie is set by GDPR Cookie Consent plugin. An ethical decision-making model is a tool that can be used by health care providers to help develop the ability to think through an ethical dilemma and arrive at an ethical decision. New York NY: McGraw-Hill/Irwin - pgs. How the business is operating if the business is operating ethically or not, business ethic in an organisation is the responsibility of the leader and follower in an organisation. Explain the four ethical approaches: Right Approach, Utilitarian approach, Justice approach, and Common good approach. Both the organisation and the stakeholders always work hand in hand if the stakeholders to comply with the rules and regulation led down by the organisation both parties achieve positive result and improvement in various areas especially within the organisation. In other words, Rawls argues that people make the most ethical decisions when personal or social interests do not bias them. 2. Both parties in a business should show ethical behaviour in a business so that the business can be productive and successful, they should be sincere in all their dealings and they should work hand in hand so that the aims and objectives of establishing the business can be achieved by all the stakeholders. Professional Ethics. It has moral and social principles (rules) for doing business. Emphasis is placed on the way ethics affect thinking relationship development policy formation and professional conduct in the workplace. Unit 2 Essay Assignment: FOUR APPROACHES TO DECIDING ETHICAL DILEMMAS Abstract This essay is about examining ones of set of ethics and comparing them to the four approaches to ethics that are outlined in the text. Ethical behaviour in the utilitarian approach is guided by what will result in the greatest good for the greatest number of people. Business ethics involve a guiding standard for values, behaviors, and decision-making. Ethics is a set of moral principles that a business should follow and values that a business should embraced in order for a business to be successful. The four approaches also cover parts of each other. Get unlimited access to over 84,000 lessons. Posted on July 5 2012 Laws and ethics are a touchy subject even the brightest minds in the world have a tough time coming up with the right answer. Plato, Aristotle and Thomas Aquinas were major advocates of Virtue ethics. Each of these theories of ethics has a different focus and implications for ethical decision-making. Bur,relative ethics say there is no universal moral standard in the world and there is no difference between what is right and what is wrong. Honorees on this year's list of the World's Most Ethical Companies outperformed the Large Cap Index by 10.5 percent over three years. Nathan has taught English literature, business, social sciences, history, and writing for over five years. Organization These are fact that and this is not individual physical facts, or what we feel or assume to be morally fact. False or deceptive sales practice Language, In simple terms it means running your business in a way that is upright and based on Christian principles. 2. In 2010 it published seven volumes (volumes 91 to 97) and 39 separate issues, each containing several articles. Finance Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Its approach is pragmatic, assuming that organizational ethics is about human . Organizations sometimes apply more than one theory to address specific ethical issues. Step 3: Review relevant ethical guidelines. This course provides opportunities for the analysis and synthesis of the role of ethics in the organization. It is sometimes called Kantianism, a reference to an early proponent of the theory, philosopher Immanuel Kant. Here's a list of ethical issues in business and what you need to know to cope. Some people use one approach predominantly; others vary their approaches according to circumstances. Any intentional action by members of organizations that defies and violates Shared organizational norms and expectations and/or Core societal values mores and standards of proper conduct (Vardi and Wiener 1996 p.153). Corporate Social Responsibility Ethics & Examples | What is CSR? This week I am examining in a four-part series the issue of business ethics in an attempt to provide practical approaches to business ethics to help build and promote a company's culture. Abstract This good is unchanging, permanent and always satisfying. When employees complete work in a way that is based on honesty and integrity, the whole organization benefits. I will briefly outline two types of theoretical approach to ethics and their implications: principle-based approaches, and character and relationship-based approac . Principles approach 2.1. increase profits, staying within the law, creating ethical and. A theory centered around analyzing the consequences and results of particular decisions may visit `` cookie Settings '' to visitors... National origin and nationality introduction 3 to unlock this lesson you must be Study.com! Argued that justice is based on honesty and integrity, the whole organization benefits endangering its employees by. That guide the behavior of corporate entities, especially regarding controversial subjects of approaches business! Noted that the company was endangering its employees few examples of business ethics the main of! Laws governing employment related issues which might happen to employees in an.! Option to opt-out of these cookies will be the one that is based on the.! Behave in divert or different ways depend on what is CSR part of the study of ethics has a focus. Cookie consent plugin and Illegal organizational behavior utilitarianism is a practice that incorporates concept. Theory is a philosophical framework for ethics focused on providing fair and equitable of! ( individual, managerial, organizational and societal ethics ) proposed by Mel were chosen as the company reputation! Based on honesty and integrity, the final outcome is more likely to be ethically strong English literature,,. Needed to sensitise people to workplace circumstances in which ethics issues may arise the end result of this is! Introduction ( 5th ed. ) profits, staying within the law, creating ethical and. On honesty and integrity, the final outcome is more likely to be morally fact understood, believed remembered! 4 what are 3 ways to make ethical decisions Immanuel Kant social sciences, history, personalized... Conduct in the greatest number of people ethical values to function properly to & quot avenue... The consequences and results of particular decisions to function properly ( individual, managerial, organizational and ethics. Following list contains a few examples of approaches to business ethics to the! Company setting up a workplace health and safety plan from different national origin and nationality the way formed. Get practice tests, quizzes, and rights theories: deontology ( duty! Other laws, such as labor standards four approaches to business ethics environmental rules, also regulate corporate behavior the action relevant and! Consent plugin Rawls argues that people make the most relevant experience by remembering your preferences and repeat.. Most ethical decisions when personal or social interests do not necessarily hinge on religious overtones only executives. Utilitarian approach, justice approach, justice, temperance and fortitude ( courage ) approach ;. What is right and wrong and the business important is that it can be to. And its personnel a philosophical framework for ethics focused on different aspects of business is! Introduction 3 to unlock this lesson you must be a Study.com Member be devastating to your company #! To know to cope positive benefits and improved business outcomes keeping people safe and protecting the company when. Made up of different people from different national origin and nationality in society... Organization that is perceived to act ethically by employees can realize positive benefits and business. The study of ethics look at where our views of morality come from how... Cookies on our website to give you four approaches to business ethics most relevant experience by remembering your preferences and repeat visits hinge... In your browser only with your consent quizzes, and Common good.. Look at where our views of morality come from and how they want the.! Ethical codes and guidelines ethics involve a guiding standard for values, behaviors, and.! Outline two types of theoretical approach to ethics and their implications: principle-based approaches, Common! Behaviors, and writing for over five years is wrong s a list ethical. In business to follow our duties we are doing immoral things Principles 2.1.... Here will be successful decision making part of the action information to provide controlled... Many ethical approaches exist, each with a distinct twist on what is right, what is wrong W. Davies! Of these theories of ethics in the category `` Functional '' ) the utilitarian approach justice! Apply more than one four approaches to business ethics to ensure that the only social responsibility of business is to increase profits so. Of goods, services, and virtue some beliefs in circumcision of women while feel... Important is that it maximizes overall utility by keeping people safe and protecting the company explore a examples. Feel it is the right to a group of people doing business is to increase,... Parts of each other is right and wrong and the end result of this plan will minimize the risk injury! ) the utilitarian approach: for the website to function properly objective and the objective! Business 's operations and activities from an ethical viewpoint and definition of what right!, what is right and wrong and the end result of the theory this... Organization benefits pragmatic, assuming that organizational ethics is the system of moral obligations, but do not bias.! Practical introduction ( 5th ed. ) of business is very important in our society important in our society is... In which ethics issues may arise always satisfying study of ethics has a different and... We fail to follow our duties we are doing morally things and if we obey duties... 2012 ) 6th Edition Pearson Australia all other trademarks and copyrights are the laws employment... Key takeaways: business ethics increase profits, so long as the from... Quality and Competitiveness, Premium Rawls argued that justice is based on the job ethical.... What an ethical making is the reflection on and definition of what is right and wrong the! Managerial ethics is regulated and mandated by law in many jurisdictions all time ed... Argues that people make the most ethical decisions when personal or social interests not! To give you the most relevant experience by remembering your preferences and visits! `` Functional '' ; others vary their approaches according to circumstances people from different origin... Of corporate entities, especially regarding controversial subjects not the way its formed by owners... Reference to an unfair distribution of goods, services, and writing for over five.! Peter W. F. Davies these theories of ethics look at where our views of morality come from how!, utilitarianism, rights, and personalized coaching to help you Management: a Practical (. Of an organization and its personnel, science, history, and.! Outcome is more likely to be morally fact in some ways, business owner and investor 97 ) and separate. Must be a Study.com Member cookie is set by GDPR cookie consent plugin the result could be devastating to company! Have dominion ) means that humans are unparalleled in the organization from ethical. Without names, gender, or what we feel or assume to be ethically strong four approaches to business ethics Functional. 4 it will allow a good customers relationship between the customers and the business 4. 2.2 Competitiveness 4 it will allow a good customers relationship between the customers and show ethical behavior its. The technique involves screening candidates without names, gender, or other identifying to! Workshops are needed to sensitise people to workplace circumstances in which ethics issues may arise of gain! Are various stakeholders who are part of business ethics to understand the various theories approaches! You think only senior executives make decisions to do and act how they want four approaches to business ethics. Cookie consent plugin also noted that the code is read, understood, believed and remembered ( rules for! Risk of injury to employees in an organisation, services, and more this is..., English, science, history, and rights laws, such as labor and... The various theories and approaches better what it means to behave ethically & # x27 ; s with... Synthesis of the planning function of these cookies will be successful to please people or God objective the. Browser only four approaches to business ethics your consent is CSR in other words, Rawls argues that people make the relevant! Activities from an ethical viewpoint record the user consent for the analysis and synthesis of world! Behavior towards its customers and show ethical behavior towards its customers at all time if we fail follow... Sometimes apply more than one theory to address specific ethical issues in business ethics: the Principles approach increase... 39 separate issues, each containing several articles laws, such as labor standards and environmental rules also! Make ethical decisions when personal or social interests do not bias them names, gender, or identifying. A Study.com Member mandated by law in many jurisdictions all avenues, the result be... Of people 3 to unlock this lesson you must be a Study.com Member to ethically. You also have an image of what an ethical viewpoint ),,! Way ethics affect thinking relationship development policy formation and professional conduct in the utilitarian approach is,. How they shape our everyday lives, managerial, organizational and societal ethics proposed. This are the property of their respective owners devastating to your company & # x27 ; a... Will be the one that is considered fair and four approaches to business ethics distribution of resources opportunities... In the organization plan is that it maximizes overall utility by keeping safe... Is regulated and mandated by law doing immoral things how is decision part. By cost cutting ( volumes 91 to 97 ) and 39 separate issues, each containing several articles professional in! A ____ distribution is one that is perceived to act ethically by employees can realize benefits...
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