The document presents a comprehensive overview of ethics in business, covering concepts such as ethical leadership, decision making, corporate governance, and social responsibility. It emphasizes the importance of ethical behavior for long-term success and outlines various challenges businesses face, including globalization, competition, and ethical dilemmas. The text also highlights the role of management in fostering an ethical culture through training, adherence to a code of ethics, and commitment from top leadership.

1. Welcome to my
presentation

2. Table of Content
• Introduction–Ethics & Business
Ethics
• The Concepts of New Ethics
• Values and Ethics
• Development of Ethical Corporate
Behavior
• Ethical leadership
• Ethical Decision Making
• Ethical Dilemmas in Organization
• Social Responsibility of Business
• Corporate Governance

3. Chapter 1
Introduction–Ethics
And
Business Ethics

4. Ethics is the branch of philosophy which is the
systematic study of selective choice, of the standards
of right and wrong and by which it may ultimately
be directed.

5. 1. To define the greatest good of man and establish a standard for the same.
2. To Set/Establish moral standards/norms of behavior
3. To study overall human behavior
4. To assess moral and immoral
5. To apply judgement upon human behavior
6. To prescribes recommendations about Do’s and Don’ts
7. To suggest moral behavior
8. To set standard and norms.
9. To express one’s opinion
10.To conducts one’s attitude

6. • Laws
• Principles of morality
• Policy of the company
1. Compliance: (The need
for compliance of rules
including):
• The core values
• Quality of products/services
• Employment
• Usefulness of activities to surrounding activities
• QWL
2. The Contribution
(Business can make to the
society):
• Toward environment inside and outside the organization
• Social responsibility toward shareholders, bankers, customers and employees of
organization.
• Good public image, sound activity- good image.
3. The Consequences of
business activity:

7. 1. Positive Consequences: Business with ethics always leads to
positive consequences.
2. Goodwill of the Business and Businessman: Good ethical behavior will
increase the goodwill of both business as well as the businessman.
3. Protection: Both Sides: If ethical implications are there in organization
businessmen act more sincerely and the level of commitment would be higher.
Ethics protects people in dealing with each other.
4. Self-satisfaction: To attain the inner satisfaction certain people consider only
good ethics can promote good business.
5. Encourage Others: When a few people start following ethics side by side to
profit making, they encourage, motivate others and set examples for them.
6. Success and Development: Ethical conduct of business leads to development
and series of success

8. 6) Success and Development: Ethical conduct of business leads to development
and series of success
7) New Management: To run the good business in modern scenario, need to
develop and follow ethics
8) Substantially improved society: only those businesses can develop on a long
term bases which conducts activities on ethical grounds.
9) Help maintain a moral course in turbulent times: Continuing attention to
ethics in the workplace sensitizes leaders and staff to how they want to act —
consistently.
10) Cultivate strong teamwork and productivity: Ethics programs align
employee behaviors with those top priority ethical values preferred by leaders of
the organization.

9. Chapter 2
The Concepts of New Ethics

10. 1. Globalization: The growing integration of economies and societies around the world
has been one of the most hotly debated topics in international economies over the past
few years. Many forces are driving globalization—Communication, improved
infrastructure, technology, regulation, free trade and free movement of people.
2. Technology: Technology is a driving force helping business organization to face the
challenges of today's competitive business environment. It is revolutionizing the nature
and speed of communication within and between companies.
3. Intangible Assets: The most valuable assets as far as an organization context in the
new economy are called as in tangible assets. Intangible assets are non-scarce; these
increase in values when used as they are not subject to diminishing returns as the
tangible assets, but have increasing returns.
4. The War for Talent: talented, skilled, knowledgeable people with innovative ideas are
among the most valuable assets. So they are becoming more valuable than ever.
Recruitment, selection as well as retaining talented people is a big challenge before the
organization.

11. 1. Competition: When managers try to meet goals and have to cut corners at that
moment, acute competition at national as well as International level becomes an
unavoidable reason foe unethical conduct.
2. Profit: There is an increasing pressure to earn more profit and to cope with the
enlarged requirements and expectations of all like shareholders, customers, employees
or all the categories of its stakeholders. So this becomes an important factor of
unethical conduct of business.
3. Ambiguous Situations: Ambiguous Situations create the ethical dilemma to the
manager and selection of an alternative which gives them higher return at the cost of
losing integrity they don’t think.
4. Political corruption: Political corruption has also become a big issue now-a-days; As
business cannot be aloof from politics and most of the political parties demand gifts,
donations and bribes from the business men for their political gain.
5. Social values: Social values and customs are not followed by new generation.

12. 6) Money and success: Now-a-days people want to become rich in a short while
even by doing unethical acts. Money and success becomes the important
motivator behind any activity.
7) Social responsibility: People neglect the social responsibility, lack of
integrity and discipline in the social values
8) Practices of corruption: Encouragement of practices of corruption leads
unethical behavior.
9) Ignore the social interest: People neglect the social interest, lack of integrity
and discipline in the social values.
10) Illegal trade: Illegal trade with enemy countries leads unethical behavior.

13. 1. Commitment from Top Management: Ethical behavior should be fully supported
by the top management. They must set some examples in front of the employees
from their own level if commitment to ethics.
2. Code of Ethics: A code of ethics states an organization’s basic and primary values
and the ethical rules, so the rules of conduct are like a general value statement which
lacks a framework of meaning and purpose.
3. Communicating Ethics: A proper well designed communication network is needed
to institutionalizing ethics.
4. Ethics Training: There is a great need for ethics training because only
communicating well is not sufficient to convert values into practice, sometimes
employee may think that they know each and every aspect about ethics, ethical
decision making but they might be unaware of the ideas of the actual evaluation
process, implementation and consequences of the decision making.

14. 5) Ethics Officer: An ethics specialist is a full-fledged member of the board of director. He has a
“kitchen cabinet” to serve as a sounding board and to drive ownership of the program throughout all
areas of business.
6) Response and Enforcement: A consistent response to ethical issues involves so many criteria
like– Reward system (for them who have shown ethical character), built in incentives, this can be
further supported by checklist method.
7) Audits, Revisions and Refinements: Audits should establish to reveal whether communication
about ethical codes of conduct works well or not? What are the results of training?
8)Practice of moral deliberation/reflection: Building up a practice of moral deliberation/reflection
leads ethical infrastructure.
9) Ethical climates in public administration: Ethical climates are a subset of organizational work
climates and also have a strong influence on several organizational Outcomes of ethical
infrastructure.
10) Codes of ethics and policies: By implementing and enforcing codes of ethics and policies on
ethical behavior leads ethical infrastructure.

15. Chapter 3
Values and Ethics

16. 1. The characteristics of values are:
2. These are extremely practical, and valuation requires not just
techniques but also an understanding of the strategic context.
3. These can provide standards of competence and morality.
4. These can go beyond specific situations or persons.
5. Personal values can be influenced by culture, tradition, and a
combination of internal and external factors.

17. 6.Most of our core values are learned early in life from family,
friends, neighborhood school, the mass print, visual media and
other sources within the society.
7.Values are loaded with effective thoughts about ideas, objects,
behavior, etc.
8.They contain a judgmental element in that they carry an individual’s
ideas as to what is right, good, or desirable.
9.Values can differ from culture to culture and even person to person.
10.These are more central to the core of a person.

18. Two types of values are:
1. Terminal Values:
These are values that we think are most important or most desirable.
These refer to desirable end states of existence, the goals a person would like to achieve
during his or her lifetime.
They include happiness, self-respect, recognition, inner harmony, leading a prosperous
life, and professional excellence.
2. Instrumental Values:
Instrumental values deal with views on acceptable modes of conductor means of
achieving the terminal values.
These include being honest, sincere, ethical, and being ambitious. These values are
more focused on personality traits and character.
There are many typologies of values. One of the most established surveys to assess
individual values is the Rokeach Value Survey.

19. Chapter 4
Development of Ethical
Corporate Behavior

20. (1) Ethics Training: To achieve corporate excellence in all the areas and
disciplines like sales and Marketing Financial transaction, International
transactions, technical systems, purchasing procedures, is the pressing need of
this hour.
(2) Codes of Ethics: The introduction must be supported by the important
benefits for adopting and complying with the code.
(3) Organizational Ethics Development System (OEDS): Development of
ethics policy handwork and manual for self governance and integrity.
(4) Ethics Committee: The salient features and functions of this committee are:
Periodical assessment.
Frequent meetings about ethical issues.

21. 5. Ethics Advocate: An ethics specialist or officer is a member of board of
directors who plays a key role to guide for ethical conduct, a good and wide
contribution in board’s decision making.
6. Integrate Ethical Concepts: According to “Purcell and James Weber”
Institutionalizing ethics can be accomplished:
 By formation of ethics committee.
 By providing training in ethics in management development programme.
7. Checklist Method: What to be done when confronted with ethical dilemma for
that “Bennett” had given some tips:
 Understand and define the dilemma.
 Collect the factual information.

22. 8. Reward Punishment System: As we know motivation is having a great impact on
employees behavior so the best way to get people on ethical path is establishment of is an
unethical manner, they do it for some hidden reward so the organization must develop a kind of
system in which whosoever shows ethical behavior must be rewarded and whosoever shows
unethical behavior must be punished visibly.
9. Whistle Blowing: Whistle blowing can be of two types:
Internal
Report the wrong doing to higher authorities in the same organization.
External
Report the wrong doing of individuals in an organization to external bodies (govt. or private),
media, newspaper or public interest groups.
10. Other Guidelines: Ethics should be evaluated in terms of long range
consequences for the individual and the organization.

23. Chapter-5
Ethical leadership

24. Long term survival
Integrating ethics into organizations
To take organizations on excellence path
Leadership makes real difference between success and failure
It reduces social vices in society
It helps individual to make good decision
It enhances an individuals reputation
It helps to increase productivity
It helps to boost the morale and loyalty of people
To build community

27. Chapter- 6
Ethical Decision Making

28. 1. State problem: For example, “there’s something about this decision that makes me
uncomfortable” or “do I have a conflict of interest?”
2. Check facts: Many problems disappear upon closer examination of situation,
while others change radically.
3. Identify relevant factors: For example, persons involved, laws, professional code,
other practical constraints (e.g., under $200).
4. Develop list of options: Be imaginative, try to avoid “dilemmas”; not “yes” or
“no” but whom to go to, what to say.
5. Test options:
Harm test
Publicity test:
Organization test

29. 6. Make a choice based on steps 1 – 5.
7. Review steps 1 – 6:
Are there any precautions you can take as an individual (e.g., announce your policy on
the question, change jobs, etc.)?
Is there any way to have more support next time?
Is there any way to change the organization (e.g., suggest policy changes at the next
department meeting)?

30.  Utilitarian Criteria:
• The goal of utilitarian is to provide greatest good for greatest number which is guided
by the value, “Utility”. Decisions are purely made on the basis of their outcomes or
consequences.
 Rights Criteria
 Decisions should be consistent with fundamental rights and liberties as laid in the
constitution like-right to speech, right to due process.
 Example– A good protection can be given to whistle blowers, when they blow the
whistle against some wrong doers
 Distributive Justice Criteria
• This requires individuals to impose and enforce rules fairly and impartially, so there
is equitable distribution of benefits and costs.
 Social Contract Criteria
 General social contract among economic participants
 A more specific social contract among specific members of a community

31. Pride: Lacking self-esteem, an ethical leader will hardly receive esteem and
respect from followers. Ethical leaders demonstrate healthy pride, not
vanity.
Patience: As it takes time to overcome barriers patience is of utmost
importance.
Prudence: A leader in the habit of exercising prudence and fortitude is not
inclined to resort to unethical practices even in times when things do not go
as planned.
Persistence: It refers to leader’s striving for goals and his continuing quest
to take all the necessary steps to achieve them.
Perspective: It is understood as the capacity to perceive what is truly
important in any given situation.

32. Leader principle: A leader’s deed must serve the purpose and benefits
of the corporation
Constituents principle: leaders respect their co-workers and perceive
them as people who share common purpose.
Outcome principle: a leader connects values to stakeholder support as
well as societal legitimacy.
Processes/skills principle: the leader is open to different opinions and
ideas, views and creates an atmosphere of dynamic and fruitful
communication Situation/context principle: The ethical leader knows
the limits of the values and ethical principles they live.
Ethics principle: a leader understands leadership and ethics as an
integrated process and frames actions and purposes in ethical terms.

33. Ethical/Unethical
decision making
behavior
Organization
Environment
Locus of
Control
Moral
Development

34. The Sources of ethical problems are various and varied:
 Due to globalization, as companies deal with other countries where cross
cultural diversity issues arise.
 Sometimes Decision makers don’t follow what they follow as they have
conflict between individual and organizational goal.
 Individual moral standards affect whole organization decisions if they are
morally strong , ethical decision would be the outcomes.
 If the decision makers/Managers/polices makers who are greedy ,look for
short cut to earn in a easiest way and corrupt decision making process.
 Competitive pressure is one of the main cause which forces decision
making to cope up with the competition.
 Poor decision without deep thinking of implications.
 Pressure of budget System.

35. Individual code of Conduct
Here we mean by a man’s personal code of ethics, what one finds moral,
right and ethical . He/she will choose that option.
Industrial ethical Codes
Ethical climate in the industry provides inspirational guidelines and list of
don't like:
• Non discretional ads
• Fair dealing with customers
• Safety measures
• Quality products

36. Chapter- 7
Ethical Dilemmas in Organization

37.  Uncertain outcomes
Multiple choices and Alternatives
When there are multiples choice or too much alternatives decision makers got confused to
take decision.
Mixed Consequences:
For example: A decision of termination of 10% workforce and increment in the salaries of
remaining 90% workforce.
Direct/indirect involvement:
For example: what would you do if your immediate boss makes a false TA/DA bills and
transfer it to him ? So would you follow him or blow whistle against him ? In both the case
you will be in problem.

38. Utilitarian
(end- based
approach)
Universalism
(rule based)
Care- based
approach
Virtue
ethics

39. Define the problem and clearly recognize the moral
issues in it
Determine who will affect by the decision
Collect the information and facts how the problem occurred
Isolate the legal issues
Make the choice between right vs. right paradigms
Select any one appropriate choice
Find out if there is any another way
Decide the act
Review of the decision

40. Is it legal or illegal? Hoe fair it is? At the end of it all, hoe will I feel
about myself?
Does your character match your decisions? Do you follow practice
what you preach
Be careful in all your actions. Examine implications if your actions are
taped, recorded and reported.
Keep your word. What is your commitment level.
Develop and sustain integrity- courage/self discipline and
control/honesty/morality/ kindness/fairness/generosity/inner mind to
be strong to make you incorruptible.

41. Chapter-8
Social Responsibility of
Business

42. Long term survival
Public expectation
Goodwill
Govt. laws and regulations
Better environment to operate
Keep the balance (give and take relationship)
Increase sales and consumer sentiment
Eases recruitment and employee retention
Improves local quality of life
Insulates against competition

43. (a) Economic responsibilities :The basic and primary responsibility of any business is to be economic.
Producing goods and services to satisfy society’s needs and wants and generate profit by selling them.
(b) Legal Responsibilities:Each and every business entity must operate with in the law and legal frame work;
these are considered as legal responsibilities.
(c) Ethical Responsibilities :As in the earlier chapter the difference between ethics and laws already
explained so here being ethical responsible means doing according to the expectations of society might be
not codified in a law.
(d) Discretionary Responsibilities : Discretionary responsibilities are steps forward of ethical responsibilities,
in which firms go for voluntary actions to serve society. Society will not demand to be discretionary
responsive, it is the firm’s willingness to contribute something in the welfareness of society.

44. 1. Lead from the top: It needs to have a long-term vision and commitment
from the executive level when building your CSR program.
2. Always be listening and learning: brand must constantly monitor and listen
to the needs of the communities where you do business and then determine the
most suitable approach to address their social issues.
3. Innovate: Companies must leverage social media to encourage users to also
take part, while promoting your own brand’s initiatives.
4. Communicate: When people hear about acts of compassion, they are more
likely to take interest and then take part in your experience.
5. Invest: It’s crucial to consider either allocating internal resources to an
ongoing CSR strategy effort, or if you can, hire key individuals to grow and
properly develop a strategy for your company’s CSR efforts.

45. 1. Responsibility to make profit
2. Responsibility to generate employment
3. Responsibility of Optimum Utilization of Resources
4. Responsibility to Provide Quality Products
5. Responsibility to Protect the Environment
6. Responsibility to Provide Quality of Life
7. Responsibility to Safeguard the Health
8. Fair Trade Practices
9. Responsibility to Development of Nation
10.Responsibility to Fulfill all Duties and National Obligation

46. Chapter 9
Corporate Governance

47. 1. Leadership: The basic fundamentals of effective corporate governance are
leadership and direction
2. Management Environment: Placing the principles to suggest the working is
the basic function of management environment.
3. Risk management: risk management is managing the risks which could
present hindrance in achieving business objectives
4. Monitoring: Monitoring the quality of systems, from time to time is
necessary to ensure that the systems, plans and procedures are operating
effectively.
5. Accountability: How much Accountable the working system is can be
measured by effective internal and external reporting on conformance and
performance against the set objectives.

48. Chapter 10
Ethics in Marketing

49. Duplication of original brands.
Inadequacy and insufficiency in warranty offering time and service.
Not producing quality product.
Question mark on products safety.
Unauthorized manufacturing of hazardous products.
Production of non- bio-degenerate plastic products which causes environmental
pollution.
Discrimination in pricing.
Differentiation in pricing
Excessive mark up prices.
Misleading and deceptive advertisement.
False promises.
Lower the dignity of women.

50. 1. To Collect the Power by Society: Society gives the power to marketers,
which they earn by their own efforts and influence so they should utilize
their power in socially responsible and acceptable manner, other wise
they might lose it.
2. Good will of the Organization: Now-a-day image, goodwill, reputations
is big asset for any organization. As marketing executives represent
whole organization and on the basis of contacts with them, society builds
up the image of such company so they should be highly ethical and carry
out the business in a dignified manner
3. Build up Transparency: the big marketers and business leaders must
take them into confidence by keeping high levels of transparency,

51. 1. Ethical Product:
 Initiation of the idea
 Planning and Screening of Product Design–
 Development of the Product
 Marketing Strategy
 Introducing the Product in the Market
 Decline Stage
2.Ethics in Pricing:
 Price Discrimination–
 Predatory Pricing–
 Deceptive Pricing
 Price Fixation
3.Ethical Promotion
 Ethical issues in Advertising
4. Ethics in Channel
 Communication Channels
 Distribution Channels
 Service Channels