A conflict of interest arises when what is in a person's best interest is not in the best interest of another person or organization to which that individual owes loyalty.

1. CONFLICT IN BUSINESS
ETHICS

2. Conflict
Conflict is an expressed
struggle between at least two
parties who perceive
incompatible goals, scare
resources, and interference
from others in achieving their
goals.

3. Types of Conflict
Types
Social Conflict
Business
Conflict

4. Levels Of Conflict
Levels
Individual Group Organizational

5. Individual
Group
Organizational
Within & between
individuals
Within &between
groups
Within & between
organizations
Continued…

6. Organizational & Business Conflict
Organizational
conflict
Intra-
organizational
conflict
Inter-
organizational
conflict

7. Intra-organizational Conflict
 Conflict occur within organizations.
 Arises within different levels and departments of
organization.
 At interfaces of organization functions.

8. Reasons
It may occur due to ……
 Conflict over content and goal of work
 Conflict due unequal distribution of rights
 Conflict over how and when work gets done

9. Members
 It may occur between …
 Managers VS subordinates
 Employees VS high authority of organizations
 Managers VS managers
 Department VS department

10. Inter-organizational Conflict
Conflict occurs in organization due to
outsiders i.e. firm ,government …
Effects organization badly.

11. Reason
It occurs due to ….
 Competition in market
 Misunderstanding
 Trying to get same consulting contract

12. Members
It May Occur Between …
Organization VS Organization
Organization VS Supplier
Organization VS Trade Union

13. Few Examples
 Discrimination
 Leadership Biased Intra-Organizational
 Different Style Work Conflict
 Personality Clashes
 Copyright Violation
 Chaque Fraud Inter-Organizational
 Contract Fraud Conflict
 Internet Sale Fraud

14. CLASSIFICATION OF
ETHICAL ISSUES IN
BUSINESS

15. Business ethics are classified to measure
the intensity of business issues
They facilitates discussions, enable
comparison, and advance the
understanding of codes of ethics
Why Classify Business Ethics ?

16. BASIC LEVEL:
 This is the most simple level of business and does not
require registered license to operate
 At this very level of business bare necessities of public
are addressed
 Do’s and don'ts are not addressed at this level
DIFFERENT LEVELS OF
BUSINESS

17. SECONDARY LEVEL:
 This is a bit higher level of business and follows
certain laws regarding legislation and public
demand.
DIFFERENT LEVELS OF BUSINESS

18. HIGHER LEVEL:
 Most complicated level of business
 Have patent registered rights
 All laws and taxes are applied at this level of
business operation
DIFFERENT LEVELS OF BUSINESS

19.  Do No Harm
 Do Good
 Justice
Principles of Ethics

20.  Problems, situations, or opportunities requiring an
individual to choose among actions that may be right
or wrong, ethical or unethical.
 Ethical issues arise because of;
 Conflict among personal/organizational values.
 Conflict with societal values.
Ethical Issues

21. Knowledge and skills are valuable but not
easily “own-able” as objects
So ethical disputes arise like
Patent infringement
Copyright infringement
Trademark infringement
Knowledge and skills as a cause of
ethical issues

22. Major ethical issues are:
 Product safety standards
 Advertising contents
 Environmental issues
Issues For Business

23. Conflict of interest
Honesty and fairness
Communication issues
Organizational relationships
Classification of ethical
issues

24.  It arises when an individual choose whether to
advance his or her own personal interest, those of
organization, or some other groups.
 Must be able to separate personal interest from
business dealings.
 Bribery is a significant concern
Conflict Of Interest

25.  Honesty relates to truthfulness, integrity and
trustworthiness.
 Fairness related to being just, equitable & impartial.
 Breaking laws violates trust.
 Business should not be played as game.
 Lack of rules and poor enforcement leads to unethical
behavior..
Honesty & Fairness

26. Communication issues
 Issues involved relate to advertising, product safety, pollution and
employee work conditions.
 Lying is a major ethical issues with internal and external
communications.
 False advertising relates to:
 Exaggerated claims
 Concealed facts and ambiguous statements.
 Lying

27. Organizational Relationships
 Relate to behavior of organizational members
towards customers, suppliers, subordinates,
superiors, peers and others.
 Plagiarism is one ethical issue of concern to
organizations.

28. Ethical Issues Related To
Participants Of Business

29. PARTICPANTS OF BUSINESS
Service
providers
Consumers
Third party

30. CONSUMERS
 A consumer is a person or organization that uses services
or commodities.
 They are the utilities expressed in the decision to trade or
not.

31. CONSUMER RIGHTS
Right to safety
Right to be
informed
Right to choose
Right to be heard
Right to enjoy a
clean and healthful
environment
Right of the poor
and other minorities
to have their
interests protected

32. Dealing With Consumer Rights
 Taking responsibility
 Improving the quality of customer services
 Honesty and professionalism:
 Must act honestly
 Fairly
 Must not miss-inform,
 Mislead or cheat any party in transaction
 Skill and diligence:
 Must exercise reasonable skills
 Care and diligence in carrying on a business

33. SERVICE PROVIDERS
 They provide business with consulting, legal, real estate,
education, communications, storage, processing, and many
other services
 Common service providers of business are financers,
employees, and suppliers etc.

34. Ethical Issues Related To Service Providers
 EMPLOYEES
 Assure that all actions and behaviors promote the favorable image
of company, its management and officers.
 Avoid political conflict of interest and personal gain.
 Promote integrity and reputation of organization and avoid any
conduct or duty that causes embarrassment to business.

35. Ethical Issues Related To Service Providers
 INVESTORS
Investing party must be provided with the service and financial
records of business based upon real fact.
There must not exist any hidden policies in agreement of
business with investors.

36. Third Party
 They include individuals or organizations who are
indirectly suffering from decisions or operations of a
business.
 They may also be the competitors of business.

37. Ethical Issues Related To Third Party
 QUALITY AND PARTNERSHIP
 Compliance with Terms and Conditions
 Truthful Statements Made to Third Party
 RESPECT
 Relations with CGI Clients
 Treat People Fairly and Equitably
 Do Not Discriminate
 Do Not Use Child or Forced Labor
 Provide a Safe and Healthy Work Environment

38. Ethical Issues Related To Third Party
 OBJECTIVITY AND INTEGRITY
 Comply with Anti-Bribery and Corruption Laws
 Do Not Offer Inappropriate Gifts or Commissions to CGI’s Members
 Avoid Conflicts of Interest
 FINANCIAL STRENGTH
 CORPORATE SOCIAL RESPONSIBILITY

40. Functional Areas Of Business
 Departments in a business organization are structured according to
certain functions. The departments of various organizations will differ
depending on the type of business.
 Below are four main functions that tend to be general to most
organizations.
 Production
 Finance/Accounts
 Marketing
 Human Resources/Personnel

41. Production
 The production department is responsible for transforming raw materials into finished products. They
are also responsible for quality control to ensure that required standards are met.
 This area of business ethics usually deals with the duties of a company to ensure that products and
production processes do not needlessly cause harm.
 Since few goods and services can be produced and consumed with zero risk, determining the ethical
course can be problematic. In some case consumers demand products that harm them, such
as tobacco products.
 Production may have environmental impacts, including pollution, habitat destruction and urban
sprawl. The downstream effects of technologies nuclear power, genetically modified food and mobile
phones may not be well understood.
 Product testing protocols have been attacked for violating the rights of both humans and animals.

42. Finance/Accounts
 The accounts department makes and receives all payments on behalf of the business and
records all financial transactions.
 Fundamentally finance is a social science discipline. The discipline borders behavioral
economics, sociology, economics, accounting and management. It concerns technical
issues such as the mix of debt and equity, dividend policy, the evaluation of alternative
investment projects, options, futures, swaps, and
other derivatives, portfolio diversification and many others.
 It is often mistaken by the people to be a discipline free from ethical burdens.
 The 2008 financial crisis caused critics to challenge the ethics of the executives in charge
of U.S. and European financial institutions and financial regulatory bodies. Finance ethics
is overlooked for another reason—issues in finance are often addressed as matters of law
rather than ethics.

43. Marketing
 This department creates awareness for the firm products and motivates consumers to buy. They also carry
out market research to identify customer’s needs.
 Marketing ethics came of age only as late as 1990s.
 Marketing ethics was approached from ethical perspectives of virtue or virtue,
ethics, deontology, consequentialism, pragmatism and relativism.
 Ethics in marketing deals with the principles, values and/or ideals by which marketers (and marketing
institutions) ought to act.
 Ethical marketing issues include marketing redundant or dangerous products/services transparency about
environmental risks, transparency about product ingredients such as genetically modified
organisms possible health risks, financial risks, security risks, etc., respect for consumer privacy and
autonomy, advertising truthfulness and fairness in pricing & distribution.
 Marketing ethics involves pricing practices, including illegal actions such as price fixing and legal actions
including price discrimination and price skimming. Advertising has raised objections about attack
ads, subliminal messages, sex in advertising and marketing in schools.

44. Human Resources/Personnel
 The human resource department recruits and selects staff for the business organization. They
are also responsible for staff training and welfare.
 Human resource management occupies the sphere of activity of recruitment selection,
orientation, performance appraisal, training and development, industrial relations and health
and safety issues. Business Ethicists differ in their orientation towards labor ethics. Some
assess human resource policies according to whether they support an egalitarian workplace
and the dignity of labor.
 Issues including employment itself, privacy, compensation in accord with comparable
worth, collective bargaining(and/or its opposite) can be seen either as inalienable rights or as
negotiable. Discrimination by age (preferring the young or the old), gender/sexual
harassment, race, religion, disability, weight and attractiveness. A common approach to
remedying discrimination is affirmative action.

45. Human Resources/Personnel
 Once hired, employees have the right to occasional cost of living increases, as well as raises
based on merit. Promotions, however, are not a right, and there are often fewer openings than
qualified applicants. It may seem unfair if an employee who has been with a company longer is
passed over for a promotion, but it is not unethical. It is only unethical if the employer did not
give the employee proper consideration or used improper criteria for the promotion.
 Employers must consider workplace safety, which may involve modifying the workplace, or
providing appropriate training or hazard disclosure.
 Larger economic issues such as immigration, trade policy, globalization and trade
unionism affect workplaces and have an ethical dimension, but are often beyond the purview of
individual companies.

46. Other issues
 Fairness in trading practices, trading conditions, financial contracting, sales practices,
consultancy services, tax payments, internal audit, external audit and executive
compensation also fall under the umbrella of finance and accounting.
 Particular corporate ethical/legal abuses include: creative accounting, earnings
management, misleading financial analysis, insider trading, securities
fraud, bribery/kickbacks and facilitation payments.
 Outside of corporations, bucket shops and forex scams are criminal manipulations of
financial markets. Cases include accounting scandals, Enron, WorldCom and Satyam.

48. As a part of a Business
Business is not a game or a war
Not recognizing an ethical issue

49. Bribes vs. Gifts
Bribe is the something given in the hope of
influence or benefit in return
To Client| Business Partner| Decision maker
Giving or Receiving end
Culture Differences

50. Conflict of Interest
Self Interest over others
Personal, Professional and Financial
Maximizing your own profit
Keep your personal business separate

51. Loyalty
Family, Friends or Organization
Commitment with Organization
Whistle Blower
Don’t give false report
Misuse of resources

52. Honesty
 Best Policy
 Suffering in short term
 Long term Benefits
 Good Reputation
 Respect

53. Environmental Hazards
 Location of Industry
 Pollution
 Waste management
 Aware of your Responsibilities

54. Behaviors we should Avoid
 Spreading Rumors about others
 Taking credit of others work
 Flaunting status or authority
 Misleading costumers about your product
 Misuse company’s resources
 Wrong use of authority

55. Rationalizations or Excuses
My behavior is not really illegal or immoral
My action is in everyone’s best interest
No one will found what I’ve done
The Company will protect me

56.  Follow your own code of personal conduct
 Focus on your job
 Don’t appropriate office supplies
 Be honest
 These small acts and gestures build your character
Summary

58. Positive Effect
Conflict motivates to do better and hard work
One’s talent and abilities come to forefront in a
conflict situation
Satisfy certain psychological needs like
dominance ,esteem and ego

59. Continued…
Add variety to one’s organizational life goals and
achievements
Facilitate an understanding of problem
Better coordination level

60. Negative effects of conflict
 Allowing a conflict to continued means that individual
or organization attention becomes focused on conflict
,not on productivity
 Lack of direction
 When conflict goes unresolved it can be difficult to
create new ideas
 Lost of time and health due to stress

61. Resolve a Conflict
 It depends on intensity of conflict.
 It intensity of conflict is low organization will avoid.
 It intensity of conflict is medium ,organization may
compromise.
 If intensity of conflict is high ,organizational will compete.

62. Resolve A Conflict
 Through negotiation
 Through agreement
 By involving third party
 Through striking
 Through legislation

63. THE END