Business ethics

4. IMPORTANCE OF ETHICS
Siddharth S.Payal
Roll no.- 43

5. ETHICS
 Business ethics enhances the law by outlining acceptable
behaviour beyond government control.Corporation
establish Business Ethics to promote Integrity among their
employees and gain trust from key stakeholders,such as
investors and consumers while corporate ethics
programme have become common,the quality Varies.
 Ethics serve as a guide to moral daily living and help us
judge whether our behaviour can be justified.Ethics refers
to society sense of the right way of living our daily lives.It
does this by establishing rules, principles and values.

6. NEED OF ETHICS
 Business Needs to remain ethical for its own
good.Unethical actions and decisions may yeild results
only in very short run,for the long run existence and
sustained profitability of the firm business is required to
conduct itself ethically and to run its activities on ethical
lines.

7. Meaning and Causes of
Unethical Behaviour
Siddharth S.Payal
Roll no.- 43

8. MEANING-
 Unethical behavior in business refers to actions that fail to rise to
acceptable standards of business practices. As you can see, unethical
business practices can creep into every type of business imaginable.
... We should also raise the bar and hold businesses to a higher
standard of conduct.
 Misusing company time. Whether it is covering for someone who shows
up late or altering a time sheet, misusing company time tops the list.
 Abusive behaviour,employee theft,lying to employees, violating company
policies,etc.

9. CAUSES-
 No code of Ethics-Employees are more likely to do wrong
if they don’t know what’s right. Without a code of ethics,
they may be unscrupulous. A code of ethics is a proactive
approach to addressing unethical behavior.
 Fear of reprisals-When explaining why they don’t report
ethical misconduct that they witness, people often say it is
because they worry about the ramifications. They don’t
want to damage their career or incur the wrath of the
offender.

10.  Impact of peer influence-If everyone is doing it, it must be
right. Or is it? What’s to stop someone from padding their
expense report when their co-workers do it but don’t get
caught? Too often people lapse into the bad behavior of
others.
 Going down a slippery slope- Misconduct starts small,
such as the exaggeration of a mileage report. But the
longer it goes unchecked, the worse the offenses become.
The few extra dollars that came from the mileage report
may eventually be dwarfed by larger falsified expenses or
perhaps even outright embezzlement.

11. Ethics According to
Functions of Business
Siddharth S. Payal
Roll no. 43

12. INTRODUCTION
 Business ethics refers to moral principles and
social values that business should adopt in its
code of conduct. These are rules that businesses
must accept and follow in its day to day
operations for the welfare of society and all its
stakeholders. Some of the types of ethics in the
business are given in the next slides

13.  Ethics of accounting- It is primarily a field of applied
ethics,the study of moral values and judgements As they
apply to accountancy.It is an example of professional
ethics.
 Ethics of Human Resource Management- The ethics of
Human resource management (HRM) Covers those ethical
issues Arising around the employer-employee
relationship,such as the rights and duties owed by
Between employer and employee.

14.  Ethics of sales and marketing- It is the area of applied
ethics Which deals with the modern principles Behind
the Operation And regulations of Marketing. Some
areas of Marketing Ethics (Ethics of advertising and
promotion) overlap with media ethics.
 Ethics of Production- This area of business ethics
deals with the duties of company tO ensure that
products and Production process do not cause
harm.Some Of the more acute dilemmas in this area
arise out of the fact that there is usually a degree of
danger in any Product or Production.

15. Relationship between
business ethics and
business development
Siddharth S. Payal
Roll no. 43

16.  The relationship between business and ethics is intrinsically entwined. A
successful company is one which can effectively recognise and cultivate the
relationship which exists between the two.
 Businesses that exhibit and promote strong corporate codes of ethics are more
prosperous in the long run because they show a commitment to an expectation of
sound moral behavior. This demonstrates a dedication to society, customers,
employees and the business itself. It also enhances a company's reputation if they
become commonly known as an ethical company, and this brings more value to the
organisation.
 positive reputation leads to higher profits and provides better service for the public.
Ethics and business go hand in hand, and cannot effectively be separated.
Ultimately implementing a strong ethical policy is a win-win situation for all. In
today's competitive environment why wouldn't a company want to do all they can do
to promote success on all levels?

17.  highly competitive environment in today's global economy puts
pressures on company leaders to remain profitable and to show a good
return to stakeholders. Often this pressure can result in unethical
decisions being made in order to deliver positive results. When this
occurs it usually results in a pattern that gets passed down through the
organisation.
As leaders show unethical behaviour, and perhaps even justify such
behaviour while knowing it to be wrong, this eventually becomes a part
of organisational culture. People follow by example, and the lack of
moral judgment will spread.
 It's easy to blame "the system", yet many fail to realise "the system" is
comprised of decision making individuals. The relationship between
business and ethics is inherently linked, but there are some who fail to
make this connection.
To say "business is business" is not justified, as responsible (ethical)
decision making is an important component of doing good business.

18. Responsibilities of
business towards its
stakeholders
Siddharth S. Payal
Roll no. 43

19. Responsibilities towards employees
 Responsibility to Employees
 An organization’s first responsibility is to provide a job to
employees. Keeping people employed and letting them have time
to enjoy the fruits of their labor is the finest thing business can do
for society. Beyond this fundamental responsibility, employers
must provide a clean, safe working environment that is free from
all forms of discrimination. Companies should also strive to
provide job security whenever possible.

20.  Responsibility to Customers
 To be successful in today’s business environment, a company
must satisfy its customers. A firm must deliver what it promises,
as well as be honest and forthright in everyday interactions with
customers, suppliers, and others. Recent research suggests that
many consumers, particularly millennials, prefer to do business
with companies and brands that communicate socially responsible
messages, utilize sustainable manufacturing processes, and
practice ethical business standards.

21.  Responsibility to Society
 A business must also be responsible to society. A business provides a
community with jobs, goods, and services. It also pays taxes that go to
support schools, hospitals, and better roads. Some companies have
taken an additional step to demonstrate their commitment to
stakeholders and society as a whole by becoming Certified Benefit
Corporations, or B Corps for short. Verified by B Lab, a global
nonprofit organization, B Corps meet the highest standards of social
and environmental performance, public transparency, and legal
accountability and strive to use the power of business to solve social
and environmental problems via an impact assessment that rates each
company on a possible score of 200 points.

22. Ethics related to
environment
protection
Siddharth S. Payal
Roll no. 43

23.  The environment is everything we depend on. Whether it be the
trees that give us oxygen, the land we live upon and the rivers
that provide us with water. The environment is crucial for the
society and businesses together. We all have a responsibility to
conserve and protect the environment. And whether it
be governments, businesses, consumers, workers or other
members of society, each much contribute to stop the
environment from polluting further.
 Governments must initiate programs to ban the use of hazardous
products such as plastic carry bags. Consumers, workers and
society can support environmental protection by not using these
hazardous products or other products that are not environmental
friendly.

24. Steps that must be taken
 A sincere commitment by the top management of the business to
cultivate, maintain and develop work culture for environmental
protection and pollution prevention.
 To ensure that the commitment towards environmental protection
is shared by all the employees of all the divisions of the
business.
 Developing clear-cut policies and programmes for purchasing
good quality raw material, using latest technology, using scientific
techniques of disposal and waste management and to develop
the skills of the employees for the purpose of pollution control.
 To adapt to the laws and regulations passes by the government
for the prevention of pollution.

25.  Participation in government programmes relating to the
management of hazardous substances, clearing up of polluted
water bodies, plantation of trees and to reduce deforestation.
 Assesment of pollution control programmes in terms of costs and
benefits to increase the progress with respect to environmental
protection.
 Also businesses can arrange workshops and
give training material and share technical information and
experience with suppliers and customers to get them involved in
pollution control programmes.
 Promoting green energy that reduces the use of fossil fuels.

26. Ethics related to
consumers protection
Siddharth S. Payal
Roll no. 43

27. Ethics of consumers protection
 Consumers are often given a raw deal by way of
substandard products, increased prices through
market manipulation, failed warranties, poor after-sale
services and a host of other unfair trade practices. This
is in spite of the fact that the consumer is regarded as
the king who through the market forces dictates the
quality and quantity of goods, and leaders like
Mahatma Gandhi consider him as the sole purpose for
which an enterprise exists. Good business ethics
should place the customer as one of the important
stakeholders and should give the customer his or her
due share.

32. Ethical issues relating
to Globalisation
Siddharth S. Payal
Roll no. 43

33. The ethical dilemmas of globalisation
 Labour standards-Child labor is an especially critical issue in such debates.
Managers from a Western multinational would not even think about hiring children
in their home country since it would be both illegal and offensive to the moral
sense of the community. In some emerging economies, however, child labor is
common and even essential for the subsistence of the child. Does this make
hiring children morally acceptable?
 Environmental standards- environmental dilemma is related to toxic waste. It is
estimated that a considerable part of China’s arable land is polluted with lead,
zinc and other heavy metals exported from developed economies. Old computers
that are discarded in the United States usually end up in China, where the cost of
disposal is 90% lower [14]. Some emerging economies have sought to attract
foreign direct investment by lowering environmental standards, in a phenomenon
known as “race to the bottom” and the creation of countries that work as “pollution
havens”.

34.  Human rights-Corporations sometimes face dilemmas linked to
operations in countries with governments accused of violating
human rights.
 A high-profile case was IBM scandal of doing business with the
Nazis. In the 1930s and 1940s, IBM provided Hollerith punch
cards to the Third Reich, which were used in the operational
management of extermination camps [15].
 More recently, Google accepted the Chinese government’s
request to censor keywords like Tiananmen Square and Dalai
Lama in its search engine. The CEO Eric Schmidt stated: “I think
it is arrogant to enter a country where we are starting our
operations and tell the country how to govern itself”

35.  Cultural Diversity-Principles of international law hold that
corporations ought to respect the customs and culture of
the communities where they operate [17]. Traditional values
can be lost to the homogenizing trends introduced by
globally integrated production processes and product
promotion. Some amount of change is inevitable and
certain local practices may not deserve protection if they
violate important minimum global norms. However, when
should a norm be respected because of cultural diversity
considerations and when should it be ignored because it
violates a global minimum?

36. Arguments for and
against CSR
Siddharth S. Payal
Roll no. 43

37. CSR
Argument for CSR
 Corporate should have
some moral and social
obligation to undertake
for the walefare of the
society
 Proper use of resources,
Capability & competence
Argument against CSR
 Fundamentals principles of
business get violated.
 It is very expensive for
business houses
 CSR projects will not be
successful
 There are not the special
areas of any business

38. For CSR
 The expenditure on CSR is
a sort of investment
 Comoany can avoid many
legal complications
 It creates a better
impression
 Corporate should return a
part of wealth
Against CSR
 CSR is to induce them to
steal away the
Shareholders money

39. Note on professional
Ethics
Siddharth S. Payal
Roll no. 43

40. Role of professional ethics
 One function of professional ethics is to assure clients that
professional services will be rendered in accordance with
reasonably high standards and acceptable moral conduct.
This confidence enables professionals to exercise relatively
independent judgments in decisions affecting clients.

41. Aims and objectives
 The fundamental aim of legal ethics is to maintain
honor and dignity of the legal profession to ensure the
spirit of friendly co-operation, honorable and fair
dealing of the counsel with his clients as well as to
secure the responsibilities of the lawyers towards the
society.

42. Characteristics
 Personal ethics principles characterize moral qualities
and expectations of a teacher and comprise beliefs
and moral responsibility for actions, correctness and
respect for the rights of another person, reliability,
honesty, integrity, justice, self-control, etc.