In this ppt we have explained about Ethics and Uses of Ethics in Indian Companies. And there are some examples of CSR activities done by Indian Companies. And also some examples of unethical companies.
2. Introduction
Nature of Ethics
Business Ethics & Areas of Ethics (Stakeholders, Corporate Governance, Corporate Social Responsibility, Bribery, Insider Trading, Discrimination)
Ethical Principles Practiced by Indian Companies
CSR Activities by Indian Companies
Ethical Awards & Recognitions of Indian Companies
Unethical issues in Indian Companies (Bhopal Tragedy, Satyam Scam)
Indian Companies with Ethical Choices
Most Ethical Indian Companies
Indian Companies Moving Towards Ethical Code of Conduct
Conclusion
Contents
3. Introduction
The term Ethics derived from
Greek word ‘Ethos’ which means
‘Character’
Ethics is a social science which
deals with concepts such as right
and wrong, moral and immoral,
good and bad etc.
Behavior of dealing with one
another
5. Conducting all aspects of business and dealing with all
stakeholders in an ethical manner
STAKEHOLDER
•Member of groups without whose support the
organisation would cease to exist
BUSINESS ETHICS
6. CORPORATE GOVERNANCE
• Corporate governance is the system of rules, practices , and processes by
which a firm is directed and controlled.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
• A self regulatory business model that helps a company be socially
accountable- to itself, its stakeholders and the public.
BRIBERY
• The offering, promising, giving, accepting or soliciting of an advantage as an
inducement for an action which is illegal, unethical or a breach of trust.
Areas of Business Ethics
7. INSIDER TRADING
• Insider trading is the buying or selling of a publicity traded
company’s stock by someone who has non public, material
information about that stock.
DISCRIMINATION
• Is the act of making unjustified distinction between human
beings based on the groups, classes or other categories to
which they are perceived to belong.
8. Ethical Principles Practiced by Indian Companies
Principle of ‘Sacrifice’
Principle of ‘Harmony’
Principle of ‘Non- Violence’
Principle of ‘Reward’
Principle of ‘Justice’
9. CSR Activities by Indian Companies
1. TATA Group – Spent Rs.1500 Crore to fight Covid - 19
2. Infosys Ltd – Spent nearly Rs.360 Crore for various programmes
3. Mahindra and Mahindra Ltd – Spent Rs.100 Crore for Climate Change Action
4. ITC Ltd – Spent Rs.330 Crore for Education
10. Ethical Awards & Recognitions of Indian Companies
TATA Group Ltd – Honoured with the CSR Journal Excellence
Award for Education & Skill Training last year
Wipro – Has received a score 95 out of 100 for Corporate
Equality Index
11. Unethical Issues in Indian Companies
-Misleading Product Information
-Unfair Competition
-Mistreating Employees
-Manipulating Accounts
12. The worst Industrial Disasters of its time : Bhopal Gas Tragedy (Company – Union Carbide Corporation)
-Occurrence : 3rd December 1984
-Place of occurrence : Bhopal, Madhya Pradesh, India
-Chemical : Union Methyl Isocyanate (40 tons)
-People Affected : 5,00,000
-People Died : 40,000
13. SATYAM SCAM
-On 7th Jan, 2009 the news came in the market of Satyam Scandal
-Inflated Cash and Bank Balance of Rs. 5,040 crores( as against INR 5361 crore reflected in the books)
-An accrued interest of RS. 376 crore which is non- existent
-An understated Liability interest of Rs. 1,230 crore
-An over stated Debtors position of Rs. 490 crore (as against 2651 reflected in the books)
Actual number of employees is only 40,000 and not 53,000 and Mr. Raju had been allegedly withdrawing INR 20 crore rupees every month for
paying these 13,000 non- existent employees
-Maytas is a reverse
name of Satyam, is a
company owned by
“Raju’s Sons”
-Satyam planned to
buy Maytas to fill the
gap in the Balance
Sheet
-Without taking
permission of the
shareholders floated
two other companies
-Failed to repay the
loan & transfer of
money
-Funds from Satyam
were diverted to
Maytas
14. INDIAN COMPANIES WITH ETHICAL CHOICES
The concept of ethics in India is not new. But Indian companies were
lagging behind to apply ethical code of conduct. Due to which there
was non-existence of Indian companies in the list of world’s most
ethical companies.
THE REASONS FOR
NON-EXISTENCE
WERE:
5) Absence of
strong legislation.
1) Not practicing
the ethical code of
conduct.
2) Lack of good
corporate
governance.
3) Violation of rules and
regulations.
4)Lack in follow-up of
the unethical practices.
15. MOST ETHICAL INDIAN COMPAMIES SINCE 2012
• 1) WIPRO LIMITED
• 2) TATA STEEL
INDIAN COMPANIES MOVING TOWARDS ETHICAL
CODE OF CONDUCT
• Godrej
• Bajaj
• Aditya Birla
• Infosys
• HDFC
• Hero
16. CONCLUSION
Not every organization follow ethical guidelines but some companies prefer
going other way.
Indian companies who followed ethical path were able to make it big on the
other hand companies who did not believe in becoming ethical couldn't
survive in the competitive world. FOR EXAMPLE Kingfisher, Sahara etc.
Some Indian companies belief that ethics causes hindrance in profit earning
but the reality is ethics provide the right way to earn profit.
