The document discusses factors that can lead to unethical corporate behavior such as increased competition and pressure to earn profits, as well as ambiguous situations and corruption. It also discusses how companies can build an ethical infrastructure through commitment from top management, codes of ethics, ethics training, audits, and appointing an ethics officer. The document outlines steps for ethical decision making and principles of ethical reasoning. It notes challenges like globalization and conflicts between individual and organizational values. Finally, it provides guidelines for managers including developing a personal code of ethics and ensuring quality, safety, fair dealing, and compliance.

1. Corporate Ethical Behaviour

2. Factors causing unethical behavior Increased Competition Increased pressure to earn more profits and satisfy the stakeholders Ambiguous Situations Political Corruption People want to become rich quickly Lack of social responsibility

3. Factors that build an ethical infrastructure Commitment of top management Code of ethics – Formulated and enforced Communicating Ethics Ethics Training Audits, revisions and refinements Ethics Officer

4. Ethical infrastructure System of reward and punishment Whistle blowing Clearly defined procedure for reporting A guarantee against retaliation Well trained professionals to receive and investigate reports Commitment from higher authorities to take appropriate action

5. Ethical Decision Making Identify the problem Generate alternative solutions Evaluate the alternatives Select and implement the solution Keep ethical considerations in mind at each stage

6. Ethical Reasoning Utilitarian Criteria – Greatest good for greatest number Rights criteria – Whistle blowers should be given good protection Distributive justice – Fairplay and equal distribution of benefits and costs Social Contract criteria –Ground rules for doing business in the society

7. Problems in ethical decision making Globalization – Managers in MNC’s find it difficult to standardize ethical behavior due to diversity in different societies Conflict between individual values vs organizational values If decision makers/managers are greedy, ethically the decision itself may go corrupt. Poor decisions taken in haste. Pressure to achieve goals

8. Guidelines for Managers Personal code of ethics Industry code Non deceptive advt. Fair dealing with customers Safety measures High Quality Products Following the rules and laws of the land

9. Thank You