The document discusses several ethical issues that can arise for transnational corporations operating globally. It examines debates around whether companies should apply their home country standards abroad or adapt to local norms. The Bhopal gas tragedy is presented as a case study where lax safety standards at a Union Carbide plant in India led to thousands of deaths. Questions are raised about justifications for different risk levels in developing countries and whether local jobs or food production should take priority over safety.
This document discusses business ethics and corporate governance. It defines ethics and explains how ethics is important for business. Unethical issues that can arise are described such as bribery, insider trading, and discrimination. Characteristics of ethical organizations are provided like fairness and clear communication. Categories of codes of ethics for employees are outlined. Causes of unethical conduct and benefits of business ethics are examined. Techniques to improve ethical practices are suggested at the institutional, governmental, and social levels like establishing codes of conduct and ethics committees. The document emphasizes that ethics can make corporate governance more meaningful by considering all stakeholders and following principles from within the organization.
This document discusses different types of contracts. It defines a contract as a legally binding agreement that establishes the rights and duties of parties. There are three main types of contracts: express contracts, implied contracts, and quasi contracts. Express contracts have explicitly stated terms, either oral or written. Implied contracts derive from the actions of parties without a written agreement. Quasi contracts are ordered by courts to prevent injustice when no agreement exists between parties. Examples of each type of contract are provided.
The document discusses normative theories of business ethics, including consequentialist and nonconsequentialist theories. Consequentialist theories determine if an action is right or wrong based on its consequences. They include egoism, which claims people should act in self-interest, and utilitarianism, which aims to maximize happiness. Nonconsequentialist theories, like Kantian ethics, judge actions based on their intrinsic features rather than outcomes. Kant's categorical imperative holds that people should only act based on principles that everyone could universally accept.
The document outlines the global business standards codex that News Corporation follows. It discusses 8 key principles: fiduciary, property, reliability, transparency, dignity, fairness, citizenship, and responsiveness. For each principle, it provides details on how News Corporation adheres to standards related to ethics, legal compliance, fair competition, respecting individuals, and being socially responsible. The overall purpose is to establish the company's commitment to building trust with employees, shareholders, markets and communities through upholding strong business ethics.
A document that promises payment to a specified person or the assignee. The payee (the person who receives the payment) must be named or otherwise indicated on the instrument. A check is considered a negotiable instrument. This type of instrument is a transferable, signed document that promises to pay the bearer a sum of money at a future date or on demand. Examples also include bills of exchange, promissory notes, drafts and certificates of deposit.
This document discusses corporate social responsibility (CSR) and the evolution of CSR practices in India, particularly for banks and other corporations. It provides details on the history and phases of CSR in India, the legal requirements for CSR under the Companies Act 2013, common CSR activities undertaken in India, and the Reserve Bank of India's guidelines on CSR for banks. The key points are that CSR has evolved from voluntary charity to an integral part of business operations, the Companies Act 2013 mandates CSR spending for large companies, and banks undertake CSR activities focused on financial inclusion, priority sector lending, and rural development.
Here there is a complete explaination about how we manage the ethical dilemma in business.Hope this is helpful for the students as well as the teachers. Especially for the the m.com students
This document discusses business ethics and corporate governance. It defines ethics and explains how ethics is important for business. Unethical issues that can arise are described such as bribery, insider trading, and discrimination. Characteristics of ethical organizations are provided like fairness and clear communication. Categories of codes of ethics for employees are outlined. Causes of unethical conduct and benefits of business ethics are examined. Techniques to improve ethical practices are suggested at the institutional, governmental, and social levels like establishing codes of conduct and ethics committees. The document emphasizes that ethics can make corporate governance more meaningful by considering all stakeholders and following principles from within the organization.
This document discusses different types of contracts. It defines a contract as a legally binding agreement that establishes the rights and duties of parties. There are three main types of contracts: express contracts, implied contracts, and quasi contracts. Express contracts have explicitly stated terms, either oral or written. Implied contracts derive from the actions of parties without a written agreement. Quasi contracts are ordered by courts to prevent injustice when no agreement exists between parties. Examples of each type of contract are provided.
The document discusses normative theories of business ethics, including consequentialist and nonconsequentialist theories. Consequentialist theories determine if an action is right or wrong based on its consequences. They include egoism, which claims people should act in self-interest, and utilitarianism, which aims to maximize happiness. Nonconsequentialist theories, like Kantian ethics, judge actions based on their intrinsic features rather than outcomes. Kant's categorical imperative holds that people should only act based on principles that everyone could universally accept.
The document outlines the global business standards codex that News Corporation follows. It discusses 8 key principles: fiduciary, property, reliability, transparency, dignity, fairness, citizenship, and responsiveness. For each principle, it provides details on how News Corporation adheres to standards related to ethics, legal compliance, fair competition, respecting individuals, and being socially responsible. The overall purpose is to establish the company's commitment to building trust with employees, shareholders, markets and communities through upholding strong business ethics.
A document that promises payment to a specified person or the assignee. The payee (the person who receives the payment) must be named or otherwise indicated on the instrument. A check is considered a negotiable instrument. This type of instrument is a transferable, signed document that promises to pay the bearer a sum of money at a future date or on demand. Examples also include bills of exchange, promissory notes, drafts and certificates of deposit.
This document discusses corporate social responsibility (CSR) and the evolution of CSR practices in India, particularly for banks and other corporations. It provides details on the history and phases of CSR in India, the legal requirements for CSR under the Companies Act 2013, common CSR activities undertaken in India, and the Reserve Bank of India's guidelines on CSR for banks. The key points are that CSR has evolved from voluntary charity to an integral part of business operations, the Companies Act 2013 mandates CSR spending for large companies, and banks undertake CSR activities focused on financial inclusion, priority sector lending, and rural development.
Here there is a complete explaination about how we manage the ethical dilemma in business.Hope this is helpful for the students as well as the teachers. Especially for the the m.com students
The document provides an overview of the Negotiable Instruments Act of 1881. It defines key terms like negotiable instrument and discusses the characteristics of negotiable instruments. It outlines the three main types of negotiable instruments - promissory notes, bills of exchange, and cheques. For each type, it provides examples and discusses their essential elements. It also compares and contrasts promissory notes and bills of exchange, and discusses additional qualifications for cheques. Finally, it covers topics like crossing of cheques and the different types of crossing.
This document provides an overview of business ethics concepts. It defines ethics and discusses principles of both professional and personal ethics. Business ethics is defined as applying general ethical ideas to business behavior based on integrity and fairness while considering both internal and external stakeholders. Several ethical theories are covered, including utilitarianism, Kantian ethics, and virtue ethics. The document also discusses the evolution of business ethics over time and the importance of managing ethics in organizations.
Ethics provides standards for determining right and wrong human behavior based on concepts like rights, obligations, fairness, and virtues. Accounting ethics requires accuracy and honesty when interpreting financial data to avoid intentionally misleading practices. Upholding ethical standards is important in accounting and finance to maintain integrity, credibility, and trust. Some unethical behaviors include fraud, insider trading, producing false financial statements, delaying payments, and deception. When facing ethical issues, accountants should follow their organization's policies or discuss the matter with an unbiased advisor to find an appropriate resolution.
A collecting banker undertakes to collect amounts from cheques and bills for customers by presenting them to the paying banker. As an agent of the customer, the collecting banker has duties to exercise reasonable care and diligence in the collection process. They must present cheques and bills promptly to avoid losses from insolvency, provide timely notice if an item is dishonored, and present bills for acceptance at an early date to fix the maturity date. If the collecting banker fails in these duties and a loss occurs, they are responsible to the customer.
Corporate Governance and Business Ethics discusses the importance of ethics in business. It defines business ethics as applying moral principles to business decisions and relationships. Maintaining ethical practices is important for building trust with stakeholders and encouraging productivity and talent retention. Unethical conduct can arise from pressures like unrealistic objectives or competition but ethical companies consider impacts on communities, equality and sustainability. The document examines the role of ethics in corporate governance and relationships. It provides examples of companies with strong ethics like Patagonia as well as those involved in misconduct like Volkswagen. Overall it emphasizes that good governance requires upholding values through vision and conduct standards.
The document discusses corporate social responsibility (CSR) and provides definitions from various organizations. It outlines models of CSR including the classical economic model, socioeconomic model, Friedman model, Ackerman model, Carroll model, and others. The document discusses the CSR provisions in the Indian Companies Act of 2013, including applicability, requirements for CSR committees and expenditures. It lists eligible CSR activities and provides data on common CSR activities undertaken in India, with education and healthcare being major focuses.
This document discusses project management and defines what constitutes a project. It provides definitions of a project from Harrison and the Project Management Institute. It outlines the key characteristics, elements and life cycle of projects. Examples of common projects are given like planning an event, implementing a new system, or conducting environmental cleanup. The responsibilities of a project manager are also summarized as planning, organizing resources, monitoring performance, and completing on time and budget. Finally, the importance and benefits of project management for complex, time-bound endeavors are highlighted.
This document defines and explains the key elements of a negotiable instrument under Indian law. It begins by defining a negotiable instrument as a written document that creates a right to a certain sum of money and can be freely transferred through delivery or endorsement. It then discusses some key characteristics of negotiable instruments, including their free transferability without formalities, the holder in due course taking the instrument free from defects in title, and the transferee's ability to sue in their own name. The document also covers types of negotiable instruments recognized by law and by custom, presumptions that apply, and definitions and elements of specific instruments like promissory notes and bills of exchange.
This document discusses negotiable instruments under Indian law. It defines negotiable instruments as promissory notes, bills of exchange, or cheques that are freely transferable. It outlines the key characteristics of negotiable instruments, including that they provide title to the holder, allow the holder to sue in their own name, and come with legal presumptions around consideration and transfer dates. The document also describes the formal requirements and parties for different types of negotiable instruments like promissory notes, bills of exchange, and cheques. Finally, it discusses how negotiable instruments can be dishonored through non-acceptance or non-payment, and the process for notifying parties of dishonor.
Constitution, Management & Functions OF R.B.ITejinder Bhatti
The Reserve Bank of India was established in 1934 and nationalized in 1948. It is governed by a Central Board of Directors and manages the country's currency, banking system, and credit. As the central bank, it regulates the country's money supply, acts as a bank for the government and commercial banks, manages foreign exchange reserves, acts as the lender of last resort, facilitates clearing and settlement between banks, and controls credit in the economy.
An agreement only becomes a legally binding contract if it meets certain essential requirements. There must be an offer and acceptance, consideration so that both parties receive something of value, lawful capacity and consent of the parties, a lawful objective, certainty in terms, and possibility of performance. Some key elements include offer and acceptance to create mutual assent, lawful consideration where both sides exchange something of value, and capacity and consent where parties are able to enter into agreements of their own free will.
This document discusses business ethics and provides an overview of its importance and development over time. It covers several key points:
1) Business ethics is crucial for decision making at all levels of an organization and deals with determining what practices are acceptable. However, there is no single approach for resolving ethical issues.
2) Studying business ethics is important because scrutiny of business decisions has increased, trust in businesses has diminished after financial crises, and stakeholders influence what is considered ethical.
3) The study and practice of business ethics has evolved over the decades as issues like the environment, consumer protection, and financial misconduct have risen up. Regulations have also increased to codify ethical standards and compliance.
SEBI (Securities and Exchange Board of India) was established in 1988 to regulate the securities market in India. SEBI aims to protect investors, maintain orderly markets, and promote market development. It oversees stock exchanges, registers market intermediaries like brokers and merchant bankers, and regulates substantial acquisitions of shares and takeovers. SEBI is divided into departments and has offices across major Indian cities. It works with advisory committees to achieve its goals of regulating primary and secondary markets and protecting investors.
Business ethics and corporate governanceLiza Khanam
Business ethics focuses on applying moral principles to business situations and decisions. While businesses aim to make profits, they also have responsibilities to shareholders, employees, customers, and society. Unethical practices harm stakeholders and include misleading advertising, profiteering, adulterating products, and not fulfilling social responsibilities. Corporate governance is meant to ensure companies are run ethically and treat all stakeholders fairly, not just maximizing shareholder profits at the expense of others. Ethics and values need to come from within an organization's culture and leadership.
This document defines and describes different types of negotiable instruments. It begins by explaining that negotiable instruments are transferable written orders to pay a sum of money. The main types discussed are checks, promissory notes, and bills of exchange. Checks are drawn on a bank and payable on demand, while promissory notes contain an unconditional promise to pay, and bills of exchange contain an order to pay. The document outlines the key parties, features, and legal definitions of each type of instrument. It emphasizes that to be valid, a negotiable instrument must be in writing, signed, state a fixed sum to pay, and be freely transferable.
Business ethics & corporate governancesunil pandey
This document discusses business ethics and corporate governance. It defines ethics as examining good and bad practices in the context of moral duty. Business ethics involve proper policies and practices regarding issues like governance, insider trading, and social responsibility. The document outlines ethical issues in different business relationships and sources of ethical norms. It discusses improving ethics through senior management, training, and self-analysis. Maintaining good ethics and governance attracts customers, employees and investors while protecting the company. The document contrasts good governance at companies like ITC with the bad governance at Enron that led to its collapse.
1. BENEFITS THAT MNCS BRING TO HOST NATIONS
a. Improvement in the standard of living
b. Employment and economic growth in overseas countries
2. POTENTIAL NEGATIVE IMPACT
a. Influence on foreign governments to gain concession
b. Exploitation of labour in developing countries
i. Implementation of working practices which would be unacceptable in their home country
ii. Sale of unsafe products to consumers
c. Use of unsustainable resources and the degradation of the local environment
d. Cultural Imperialism
e. Footloose Capitalism
3. CONTROLLING MNCs
a. Pressure groups and public opinion
b. Internet
c. Self-Regulation
d. Political Constraints
e. Legal or constraints
f. Competition policy
· Part I Key Case SummaryThis case discusses the Union Carbid.docxLynellBull52
· Part I: Key
Case Summary
This case discusses the Union Carbide gas leak that occurred in Bhopal, India in 1984. Over five thousand people were killed and hundreds of thousands were injured after water inadvertently mixed with methyl isocyanate (MIC) causing the release of a deadly gas. The plant in Bhopal was a pesticide production facility that served the increasing demand of India’s thriving farming industry. However, uncontrolled zoning allowed the plant to be built within close proximity to a densely populated region. While the plant was initially profitable, market changes negatively impacted revenue forcing budget cuts that led to the decay of maintenance and safety practices. There are several theories as to why the incident occurred such as a disgruntled employee’s maliciousness or an accidental contamination. Over several years, Union Carbide paid out hundreds of millions of dollars to the survivors and ultimately ceased to exist, while the community continues to struggle with the aftermath of the disaster.
Main Critical Issues (the list):
· India’s officials adopted careless zoning practices and allowed the construction of the plant near dense population.
· The proper safety procedures were not followed and the equipment was not being properly utilized as designed. UCIL managers placed a higher weight on cost cutting than on safety, resulting in the reduction of maintenance and safety practices.
· Union Carbide Corp. did not require frequent reporting from its subsidiary in India (UCIL), which allowed malpractices and unsafe systems in the Bhopal plant to go unnoticed.
· Union Carbide Corporation and UCIL had an ethical obligation to warn the surrounding community of potential dangers of living close to the pesticide plant
· If the case, the disgruntled employees action to sabotage the plant to take vengeance
· Employees and supervisors in the Bhopal plant did not follow numerous policies and routines that could have prevented the tragedy (e.g. acting upon the alarming increase in the tank pressure, instead of postponing it to after the tea break).
· The residents were not informed of what actions to take in the event of a toxic leak or accident.
· The employees did not use the emergency buses to evacuate surrounding residents.
·
Part II: Key
Stakeholders:
The following are the stakeholders in the case: The Union Carbide’s Corporation Stockholders, The Bhopal’s population, The Indian Government, The Bombay Stock Exchange, The Union Carbide’s workers from de Indian subsidiary “UCIL”. The workers from Union Carbide headquarter in Connecticut, The Board of Directors of Union Carbide Headquarter, and The Board of Directors from Union Carbide’s Indian subsidiary. The American and Indian lawyers. UCIL’s Executives. Carbides’ Scientifics. Indian Scientists and engineers. Indian Court Systems. Insurance company. Indian Public. Corrupts Physicians. Corrupts Court Officials. Bhopal Congress. Chemical Industry. Dow Chemical. The Activis.
The document provides an overview of the Negotiable Instruments Act of 1881. It defines key terms like negotiable instrument and discusses the characteristics of negotiable instruments. It outlines the three main types of negotiable instruments - promissory notes, bills of exchange, and cheques. For each type, it provides examples and discusses their essential elements. It also compares and contrasts promissory notes and bills of exchange, and discusses additional qualifications for cheques. Finally, it covers topics like crossing of cheques and the different types of crossing.
This document provides an overview of business ethics concepts. It defines ethics and discusses principles of both professional and personal ethics. Business ethics is defined as applying general ethical ideas to business behavior based on integrity and fairness while considering both internal and external stakeholders. Several ethical theories are covered, including utilitarianism, Kantian ethics, and virtue ethics. The document also discusses the evolution of business ethics over time and the importance of managing ethics in organizations.
Ethics provides standards for determining right and wrong human behavior based on concepts like rights, obligations, fairness, and virtues. Accounting ethics requires accuracy and honesty when interpreting financial data to avoid intentionally misleading practices. Upholding ethical standards is important in accounting and finance to maintain integrity, credibility, and trust. Some unethical behaviors include fraud, insider trading, producing false financial statements, delaying payments, and deception. When facing ethical issues, accountants should follow their organization's policies or discuss the matter with an unbiased advisor to find an appropriate resolution.
A collecting banker undertakes to collect amounts from cheques and bills for customers by presenting them to the paying banker. As an agent of the customer, the collecting banker has duties to exercise reasonable care and diligence in the collection process. They must present cheques and bills promptly to avoid losses from insolvency, provide timely notice if an item is dishonored, and present bills for acceptance at an early date to fix the maturity date. If the collecting banker fails in these duties and a loss occurs, they are responsible to the customer.
Corporate Governance and Business Ethics discusses the importance of ethics in business. It defines business ethics as applying moral principles to business decisions and relationships. Maintaining ethical practices is important for building trust with stakeholders and encouraging productivity and talent retention. Unethical conduct can arise from pressures like unrealistic objectives or competition but ethical companies consider impacts on communities, equality and sustainability. The document examines the role of ethics in corporate governance and relationships. It provides examples of companies with strong ethics like Patagonia as well as those involved in misconduct like Volkswagen. Overall it emphasizes that good governance requires upholding values through vision and conduct standards.
The document discusses corporate social responsibility (CSR) and provides definitions from various organizations. It outlines models of CSR including the classical economic model, socioeconomic model, Friedman model, Ackerman model, Carroll model, and others. The document discusses the CSR provisions in the Indian Companies Act of 2013, including applicability, requirements for CSR committees and expenditures. It lists eligible CSR activities and provides data on common CSR activities undertaken in India, with education and healthcare being major focuses.
This document discusses project management and defines what constitutes a project. It provides definitions of a project from Harrison and the Project Management Institute. It outlines the key characteristics, elements and life cycle of projects. Examples of common projects are given like planning an event, implementing a new system, or conducting environmental cleanup. The responsibilities of a project manager are also summarized as planning, organizing resources, monitoring performance, and completing on time and budget. Finally, the importance and benefits of project management for complex, time-bound endeavors are highlighted.
This document defines and explains the key elements of a negotiable instrument under Indian law. It begins by defining a negotiable instrument as a written document that creates a right to a certain sum of money and can be freely transferred through delivery or endorsement. It then discusses some key characteristics of negotiable instruments, including their free transferability without formalities, the holder in due course taking the instrument free from defects in title, and the transferee's ability to sue in their own name. The document also covers types of negotiable instruments recognized by law and by custom, presumptions that apply, and definitions and elements of specific instruments like promissory notes and bills of exchange.
This document discusses negotiable instruments under Indian law. It defines negotiable instruments as promissory notes, bills of exchange, or cheques that are freely transferable. It outlines the key characteristics of negotiable instruments, including that they provide title to the holder, allow the holder to sue in their own name, and come with legal presumptions around consideration and transfer dates. The document also describes the formal requirements and parties for different types of negotiable instruments like promissory notes, bills of exchange, and cheques. Finally, it discusses how negotiable instruments can be dishonored through non-acceptance or non-payment, and the process for notifying parties of dishonor.
Constitution, Management & Functions OF R.B.ITejinder Bhatti
The Reserve Bank of India was established in 1934 and nationalized in 1948. It is governed by a Central Board of Directors and manages the country's currency, banking system, and credit. As the central bank, it regulates the country's money supply, acts as a bank for the government and commercial banks, manages foreign exchange reserves, acts as the lender of last resort, facilitates clearing and settlement between banks, and controls credit in the economy.
An agreement only becomes a legally binding contract if it meets certain essential requirements. There must be an offer and acceptance, consideration so that both parties receive something of value, lawful capacity and consent of the parties, a lawful objective, certainty in terms, and possibility of performance. Some key elements include offer and acceptance to create mutual assent, lawful consideration where both sides exchange something of value, and capacity and consent where parties are able to enter into agreements of their own free will.
This document discusses business ethics and provides an overview of its importance and development over time. It covers several key points:
1) Business ethics is crucial for decision making at all levels of an organization and deals with determining what practices are acceptable. However, there is no single approach for resolving ethical issues.
2) Studying business ethics is important because scrutiny of business decisions has increased, trust in businesses has diminished after financial crises, and stakeholders influence what is considered ethical.
3) The study and practice of business ethics has evolved over the decades as issues like the environment, consumer protection, and financial misconduct have risen up. Regulations have also increased to codify ethical standards and compliance.
SEBI (Securities and Exchange Board of India) was established in 1988 to regulate the securities market in India. SEBI aims to protect investors, maintain orderly markets, and promote market development. It oversees stock exchanges, registers market intermediaries like brokers and merchant bankers, and regulates substantial acquisitions of shares and takeovers. SEBI is divided into departments and has offices across major Indian cities. It works with advisory committees to achieve its goals of regulating primary and secondary markets and protecting investors.
Business ethics and corporate governanceLiza Khanam
Business ethics focuses on applying moral principles to business situations and decisions. While businesses aim to make profits, they also have responsibilities to shareholders, employees, customers, and society. Unethical practices harm stakeholders and include misleading advertising, profiteering, adulterating products, and not fulfilling social responsibilities. Corporate governance is meant to ensure companies are run ethically and treat all stakeholders fairly, not just maximizing shareholder profits at the expense of others. Ethics and values need to come from within an organization's culture and leadership.
This document defines and describes different types of negotiable instruments. It begins by explaining that negotiable instruments are transferable written orders to pay a sum of money. The main types discussed are checks, promissory notes, and bills of exchange. Checks are drawn on a bank and payable on demand, while promissory notes contain an unconditional promise to pay, and bills of exchange contain an order to pay. The document outlines the key parties, features, and legal definitions of each type of instrument. It emphasizes that to be valid, a negotiable instrument must be in writing, signed, state a fixed sum to pay, and be freely transferable.
Business ethics & corporate governancesunil pandey
This document discusses business ethics and corporate governance. It defines ethics as examining good and bad practices in the context of moral duty. Business ethics involve proper policies and practices regarding issues like governance, insider trading, and social responsibility. The document outlines ethical issues in different business relationships and sources of ethical norms. It discusses improving ethics through senior management, training, and self-analysis. Maintaining good ethics and governance attracts customers, employees and investors while protecting the company. The document contrasts good governance at companies like ITC with the bad governance at Enron that led to its collapse.
1. BENEFITS THAT MNCS BRING TO HOST NATIONS
a. Improvement in the standard of living
b. Employment and economic growth in overseas countries
2. POTENTIAL NEGATIVE IMPACT
a. Influence on foreign governments to gain concession
b. Exploitation of labour in developing countries
i. Implementation of working practices which would be unacceptable in their home country
ii. Sale of unsafe products to consumers
c. Use of unsustainable resources and the degradation of the local environment
d. Cultural Imperialism
e. Footloose Capitalism
3. CONTROLLING MNCs
a. Pressure groups and public opinion
b. Internet
c. Self-Regulation
d. Political Constraints
e. Legal or constraints
f. Competition policy
· Part I Key Case SummaryThis case discusses the Union Carbid.docxLynellBull52
· Part I: Key
Case Summary
This case discusses the Union Carbide gas leak that occurred in Bhopal, India in 1984. Over five thousand people were killed and hundreds of thousands were injured after water inadvertently mixed with methyl isocyanate (MIC) causing the release of a deadly gas. The plant in Bhopal was a pesticide production facility that served the increasing demand of India’s thriving farming industry. However, uncontrolled zoning allowed the plant to be built within close proximity to a densely populated region. While the plant was initially profitable, market changes negatively impacted revenue forcing budget cuts that led to the decay of maintenance and safety practices. There are several theories as to why the incident occurred such as a disgruntled employee’s maliciousness or an accidental contamination. Over several years, Union Carbide paid out hundreds of millions of dollars to the survivors and ultimately ceased to exist, while the community continues to struggle with the aftermath of the disaster.
Main Critical Issues (the list):
· India’s officials adopted careless zoning practices and allowed the construction of the plant near dense population.
· The proper safety procedures were not followed and the equipment was not being properly utilized as designed. UCIL managers placed a higher weight on cost cutting than on safety, resulting in the reduction of maintenance and safety practices.
· Union Carbide Corp. did not require frequent reporting from its subsidiary in India (UCIL), which allowed malpractices and unsafe systems in the Bhopal plant to go unnoticed.
· Union Carbide Corporation and UCIL had an ethical obligation to warn the surrounding community of potential dangers of living close to the pesticide plant
· If the case, the disgruntled employees action to sabotage the plant to take vengeance
· Employees and supervisors in the Bhopal plant did not follow numerous policies and routines that could have prevented the tragedy (e.g. acting upon the alarming increase in the tank pressure, instead of postponing it to after the tea break).
· The residents were not informed of what actions to take in the event of a toxic leak or accident.
· The employees did not use the emergency buses to evacuate surrounding residents.
·
Part II: Key
Stakeholders:
The following are the stakeholders in the case: The Union Carbide’s Corporation Stockholders, The Bhopal’s population, The Indian Government, The Bombay Stock Exchange, The Union Carbide’s workers from de Indian subsidiary “UCIL”. The workers from Union Carbide headquarter in Connecticut, The Board of Directors of Union Carbide Headquarter, and The Board of Directors from Union Carbide’s Indian subsidiary. The American and Indian lawyers. UCIL’s Executives. Carbides’ Scientifics. Indian Scientists and engineers. Indian Court Systems. Insurance company. Indian Public. Corrupts Physicians. Corrupts Court Officials. Bhopal Congress. Chemical Industry. Dow Chemical. The Activis.
This document discusses ethical issues that can arise in international business. It covers several key topics: employment practices, human rights, environmental regulations, corruption, and the moral obligations of multinational corporations. For each topic, it provides examples of ethical dilemmas companies have faced. It also examines approaches to business ethics like cultural relativism and discusses determinants of ethical behavior such as personal ethics and organizational culture. Finally, it outlines strategies for making ethical decisions, such as hiring people with strong ethics and creating an ethical organizational culture.
The document discusses the challenges that multinational corporations face when outsourcing activities to emerging economies, including differing philosophies between the MNCs and host countries, cultural differences, and managing global operations and human resources across borders. It also examines some of the ethical issues MNCs may encounter abroad, such as dealing with sweatshops, ensuring plant safety standards, and preventing bribery and corruption. Questions are provided to prompt discussion on strategies for international expansion and managing a multinational workforce.
This document discusses business ethics. It defines business ethics as examining ethical principles and problems that arise in a business environment. Business ethics are important for cost/risk reduction, long-term growth, public image, and attracting investment. Sources of business ethics include religion, culture, and law. Ethical businesses demonstrate leadership and qualities like donating to charity. Unethical examples include Monsanto unfairly suing farmers, Halliburton overcharging in Iraq, and Chevron's environmental/human rights issues. The conclusion stresses that ethics are needed for reputation, avoiding legal issues, and success over the long run.
IB Environment PPT of International BusinessDrBabarAliKhan
This document discusses the international business environment. It covers several key topics:
- International management involves operating business across multiple countries with the same basic management functions applied on a larger scale and greater risks.
- Culture and societal values vary significantly between countries due to factors like customs, laws, and beliefs. This impacts how people behave and interact.
- National economies differ in their structure and development level, which influences business conditions. Market, command, and mixed models exist.
- Legal and political systems like common law, civil law, and Islamic law impact business regulations and dispute resolution between countries.
- Rapid technological advances are disrupting entire industries and the workplace on a global scale. E-business now facilitates
Global Business Today 6eby Charles W.L. HillMcGraw-H.docxwhittemorelucilla
This document discusses various philosophical approaches to business ethics in international contexts. It outlines several "straw man" approaches that are not appropriate guidelines for ethical decision making, including Milton Friedman's view that a company's only responsibility is to increase profits legally. It also discusses cultural relativism, which holds that ethics are culturally determined. Utilitarian, Kantian, and justice-based ethical theories are mentioned as alternative approaches.
This document discusses multinational corporations (MNCs), providing information on both their positive and negative impacts. It notes that MNCs emerged prominently in the 17th-18th centuries and post-World War II. While MNCs can create jobs, improve products, and transfer technology, they may also exploit labor and harm local cultures and producers. A case study found that MNCs have helped improve standards of living in developing nations. The document concludes by stating the large number of MNCs worldwide and emphasizing the importance of corporate social responsibility.
GLOBALISATION AND THE INDIAN ECONOMY NCERT CLASS 10 ECONOMICSPriyansuRanjanTripat
This is a detailed PPT designed for purpose of presentation during online classes and proper understanding of students. You will find detailed notes for this chapter in this PPT and also be able to understand the topics easily.
Chapter 2.Analyzing the External Environment of th.docxcravennichole326
Chapter 2.
Analyzing the
External Environment
of the Firm:
Creating Competitive
Advantages
MGT 401-C
University of Miami
P. Derayati – Department of Management
1
Introduction
Learning from mistakes.
• Cell Zone
• “...So next time your phone rings,
step in to a Cell Zone and indulge
in a peaceful conversation with
your loved ones. If you thought
someone from the detective squad
could eavesdrop while you’re in the
booth, let me tell you that this
novelty is completely sound-
resistant, thereby delivering privacy
to users. I wonder why such an
opportunity was not explored by
mobile phone makers in the past.
Well, applaud the brain behind this
concept…”1
2
https://cellphonebeat.com/the-cell-zone-will-deliver-crisp-phone-conversations.html
Introduction
Learning from mistakes.
• Cell Zone
• Detected emerging trend:
• Rise of cell phone usage in public places
• Potential discomfort to others present nearby
• Undetected emerging trends:
• Rise of non-voice communication:
▪ Social Media
▪ Text Messaging (including apps)
• Other Factors:
• Willingness to pay? (3500)
• Loss of 650,000$ to date
3
Creating the Environmentally Aware Organization
• Perceptual Acuity helps managers adapt with external shifts.
• Defined as “the ability to sense what is coming before the fog
clears.”
▪ Ted turner realized the potential for 24-hour news tv
▪ Steve Jobs saw the shifting trend of consumer taste in buying
music
• It is about shaping, as well as adapting
• The way of addressing the issue is equally important:
▪ Napster vs. Apple
▪ IoT (Google vs. Amazon)
4
Creating the Environmentally Aware Organization
5
Scanning
Monitoring Forecasts
Competitive
Intelligence
Creating the Environmentally Aware Organization
• Environmental scanning: involves surveillance of a firm’s external
environment
▪ Predicts environmental changes to come
▪ Detects changes already under way
▪ If detected before (most of) competitors notice, allows firm to
be proactive
• Environmental monitoring: tracks evolution of environmental
trends
• Sequences of measurable facts/events
• Streams of activities or trends from outside the organization
• Trends can be revealed through indicators:
▪ A Motel 6 executive.
➢ The number of rooms in the budget segment of the
industry in the US
➢ The difference between the average daily room rate and
the consumer price index (CPI) (what does it reveal?)
6
Creating the Environmentally Aware Organization
▪ A Pier 1 Imports executive
➢ Net disposable income (NDI)
➢ Consumer confidence index
➢ Housing starts
▪ A Johnson & Johnson medical products executive
➢ Percentage of gross domestic product (GDP) spent on health
care
➢ Number of active hospital beds
➢ The size and power of purchasing agents (indicates the
concentration of buyers)
7
Creating the Environmentally Aware Organization
• Competitive Intelligence: Associated with collecting data on ...
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The self-reference criterion (SRC) is the idea that people perceive differences between themselves and citizens of other countries when traveling abroad; they may believe the values of their own country to be ethically superior to those of others.
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Bev 9-ethics in global business
1. Ethics in Global Business.
•Ethical Principles Governing Global Business
•Business Principles by US department of
Commerce
•Ethics in relation to adapting host countries
culture and norms
•Issues relating negotiators and gift giving
2. Introduction
• Although many firms engage in business abroad,
most of the ethical issues, which arises for
transnational corporation, or TNC.
• TNCs are firms having direct investment in
various forms in two or more countries.
• The owners and managers may be from home
country exclusively, or may include people of
many nationalities.
• The wealth and power gives rise to concern to
impact on local economies in both home and
host countries and the capacity of the
governments.
3. Developing an Ethical Framework.
• The charge against the transnational
corporations is that they develop double
standards- doing less in the under-developed
countries than what they would do in their
own.
• Moral failure lies in settling for much lower
standards than at home.
• Should MNCs be bound by home standards
or do “ In Rome as Romans Do”? Any answers
to this question?
4. WHAT TO DO IN ROME?
Answer lies between two extremes;
1.Conduct business in the same way the world over with
no double standards.
2.Do what is legally and morally accepted in any given
country where a TNC operates.
• Neither of the above propositions can be adopted
without exceptions:
Morally Relevant? -Paying different wages in less
developed countries-vast difference in wages in the US
and India.
Are Home Country Standards Universal?-(In US racial
and sexual discrimination-Japan has discrimination
against races and women- a Japanese manager can not
follow whilst working for Honda plant in Tennessee)
5. • The right of Affected People to Decide- People in the
host country have a right to decide. What is acceptable
to host country may not be morally right, but people
have a right to govern their own affairs. They cannot
be morally asked to adopt different standards.
• Required Conditions for Doing Business. “We do not
agree with the Romans, but find it necessary to do
things their way”. If Arabs have boycotted the
Israelites(began with Arab League in !945), many
American transnationals cooperated by avoiding
investment in Israel; while others refused to cooperate
with the boycott for ethical reasons. Another
argument-There is no other sway of doing business.
• TNCs abide by minimal rather than maximal duties of
coperations.
6. Fundamental International Rights
1. The right to freedom of physical movement.
2. The right of ownership to property
3. The right of freedom from torture
4. The right to fair trail
5. The right to nondiscriminatory treatment.
6. The right to fair trial.
7. The right to freedom of speech and association
8. The right to minimal education
9. The right to political participation
10. The right to subsistence.
11. Sample Examples: Failure to provide safety
equipments, using coercive tactics, employing child
labor, bribing government officials.
7. NEGATIVE HARM PRINCIPLE
• While dealing abroad, corporations have an
obligation not to add substantially to
deprivation and suffering of people.
• Utilitarian injunction to produce the greatest
possible benefits to people creates a maximal
obligations of TNCs, but a concern with
consequences can take progressively a weaker
forms, including prevention of harms and
avoiding infliction of harm (a moral
obligation).
8. • The final means for determining the morally
acceptable standard for operating in less
developed countries with very different
conditions is to consider sympathetically how
people affected evaluate benefits and harms.
This is called rational empathy- considering
ourselves and our own culture at a level of
economic development relevantly similar to
that of the other country.
• Problems arises because we do not have
enough knowledge of other cultures.s
9. Bhopal Gas Tragedy
• The Gas Tragedy at the Union Carbide plant was
caused by the leaking of poisonous methyl iso-
cyanate(MIC) gas which killed three thousand five
hundred or more poor people in the early hours on
December 3, 1984. Hundreds of thousand of these
people lived in shanties around the plant.
• Shortly after midnight on the fateful day, Suman Dey,
an engineer on duty found that the temperature of
tank E610, which stored 40 tons of MIC had shot up to
the maximum limit. Though workers were trying to
find out the source of reported leak, high temperature
indicated normally refrigerated liquid was turning into
hot gas and may rupture the tank. Soon a vent shaft
gave away and the gas leaked.
10. • It was normal for Bhopal plant people to
mistrust the instruments in the panel and
abandon caution to the wind.
• Moreover, three safety systems were
simultaneously out of order and refrigeration
unit for cooling the tanks in an emergency had
been shut down
• Founded by a private company in 1934 for the
manufacture of batteries, Union Carbide India
Limited, became a publicly owned corporation
in 1955 with the parent company holding
50.8% of the stock
11. • UCIL was the twenty first largest corporation,
autonomously staffed by Indian managers with
about $170 million in revenues, at the overall
direction of Union Carbide, located at Danbury,
Connecticut.
• UCIL entered the pesticide market in 1960, at the
urging of the Indian government, who also
insisted that UCIL build the plant at Bhopal, most
populous and impoverished state. This was
necessary for ‘Green Revolution’; to modernize
agriculture. Land was offered at a very low rental
which UCIL accepted and started the Agricultural
Product Division in 1968.
12. • At first Bhopal plant produced fertilizers and
pesticides using chemicals from other
countries, but the Indian government prodded
UCIL to manufacture finished products from
scratch to create more employment and stop
outgo of foreign exchange. This suited The
parent company, Union Carbide Corporation.
• This suited the parent company and UCIL
decided to manufacture its major pesticide
Sevin, using toxic ingredients , specially MIC.
13. • The objection by local officials to store such
hazardous chemicals was overruled by the
central government.
• Indian managers, faced with down turn of
demand and competition from other
manufacturers as well as high cost of investment
for the new plant,made the company lose money
and the plant was performing at 40% of its
capacity.
• Lack of profitability led to low levels of safety.
Although Sevin could be manufactured without
producing MIC in an intermediate step, for
reasons of cost.
14. • Bhopal plant was built with manual safety
system and not an automatic safety system at
the instance of the Indian government for
creating more employment.
• Cutbacks also resulted in job cuts which also
resulted in decline in maintenance. In fact, at the
time of the tragedy Union Carbide was trying to
sell the plant.
• Though much of the blame can be put on the
Indian government, Union Carbide at their West
Virginia, also produced MIC at institute, West
Virginia. The fact was that at Bhopal plant was
much lower than that at West Virginia.
15. QUESTIONS
• Is a PNC justified in adopting different
standards of safety in a host country?
• Is a HCN justified in allowing a PNC to dilute
their business norms?
• Was the government of India justified in
overruling local authorities over their concern
about storing of MIC in the city of Bhopal?
• Maximum good for the majority in India or in
the U.S. justified?
• m
16. APPLYING ETHICAL FRAMEWORK TO THE BHOPAL CASE
Determining the acceptable level of risk-
Deliberately exposure of any group to death
or injury is a failure of human duty?
• can a country with desperate need of food for
its growing population accept a ‘trade-off’
that creates a greater risk of an industrial
accident?
• Are risks increased by local conditions
acceptable to MNCs?
17. THE ROLE OF LOCAL CONDITIONS
• Can Western-style industrialization without
making a commensurate investment in
industrial infrastructure or rural development
be justified? Industrial development at the
cost of agriculture diving people from the land
to Bhopal.
• Was Union Carbide morally justified in
operating plant at Bhopal and exposing
workers/local population to the harm that
became a reality?
18. Weighing cost and benefits ratio
• Applying the rational empathy test-
Lower safety standards at Bhopal to satisfy
Indian governments desire to become food-
wise sufficient.
Creating jobs by not adopting automatic fail-
safe method.(Manually activated siren
warning system was sounded after 30
minutes)
If the level of safety had to be increased then
the plant would uneconomical to operate-
causing job loss.
19. Practical Problems
Pharmaceutical Marketing Practices.
• Different instructions in promoting drugs in
the third world with more indications for their
use and fewer warnings in developed counties.
Example Lomotil- a life threatening drug in the
third country(WHO has declared Lomotil of no
value and dangerous for children. Another
example –chloromphenical [chloromycetin])
• Drug dumping- Selling abroad drugs that have
not been approved in the home country.
20. • Problems of pricing
• Free Samples and
Bribery
IS THERE A DOUBLE
STANDARD?
21. BRIBERY
• Offer or make any payment to a foreign
official for the purpose of influencing a
foreign official to act in your favour.
• What is wrong with Bribery?
Immorality of demanding or accepting a bribe.
Although government officials bear chief
responsibility for economic consequences of
bribery, MNCs cannot be held blameless.
22. CAUX ROUND TABLE PRINCIPLES
• Founded in 1986 by Frederik Philips and Oliver
Giscard d’Estaing(Vice-Chairman of INSEAD) to
reduce trade tension.
• Concerned with development of constructive
economic and social relationship between the
participants’ countries, at the urging of
Ryuzaburo Kaku, Chairman of Canon Inc. it
focused on the importance of global
corporate responsibility in reducing social and
economic threats to world peace.
23. Introduction
• CRT believes that world business community should
play an important role in improving economic and
social conditions.
• It aims to express a world standard of business
behaviour. The process involves identifying shared
values, reconciling different values in order to develop
an acceptable business behaviour.
• The General principles in Section 2 seek to clarify the
spirit of kyosei and “human dignity” while the specific
Stakeholder Principles in Section 3 are concerned with
their practical applications.
• Business behaviour can affect relationships amongst
nations and prosperity and well being of all.
24. Section 2
• Principle 1.: The responsibilities of businesses
are beyond shareholders and should be more
towards stakeholders.
• Principle 2.: The economic and social impact
of business- Business developed in foreign
countries to produce or sell should contribute
to social advancement of those countries by
creating productive employment and helping
to raise the purchasing power of their citizens
• Business Behaviour- Beyond the letter of law
and toward the spirit of trusts.
25. • Principle 4.: Respect for Rules-Both international
and domestic to promote equitable treatment of
all participants….avoid adverse consequences
even if it is legal.
• Principle 5.:Support for multilateral trade
systems of GATT/World Trade Organizations and
similar international agreements
• Principle 6.: Improve environment, promote
sustainable development, avoid wasteful usage
of natural resources.
• Principle 7.: Avoidance of Illicit Operations- Not t
to condone bribery, money laundering, or other
corrupt practices.(drug trafficking, terrorist
activities,or other organized crime)
26. SECTION 3; STAKEHOLDERS PRINCIPLES
Customers
• Treat all customers with dignity, even if they donot
purchase our product directly from us by providing
them with highest quality products and service
consistent with their requirements.
• Treat all customers fairly in all business transactions
and provide remedies for their dissatisfaction
• Make every effort to ensure health and sfety of our
customers and the quality of their environment.
• Offer human dignity in products offered, marketing
and advertising and respect the integrity of the culture
of our customers.
27. Employees:
We believe in dignity of every employee and
are responsible to:
• Provide jobs and compensation to improve
workers’ living conditions
• Provide working conditions that respect each
employee’s health and dignity
• Be honest in communication
• Negotiate in good faith
• Avoid discriminatory practice
• Protect employees from avoidable injuries.
28. Owners/investors
• Honouring trust of the investors by providing
Professional and diligent management
Conserve, protect and increase owwer’s/investors’
assets
respect their requests and suggestions
Suppliers:
Based on mutual respect
Seek fairness and truthfulness in all activities
Avoid unnecessary litigations
Share information with suppliers in return of value,
quality, competitiveness and reliability.
Pay on time.
29. Competitors
• Foster open market for trade and investment
• Promote competitive behaviour
• Refrain from seeking and participating in questionable
payments to secure competitive advantage
• Refuse to acquire commercial information by
dishonest means.
Communities:
• Respect human rights
• Raise standard of health
• Stimulate sustainable development
• Support peace, security, diversity and social
integration
• Respect local culture
• Be good corporate citizen.