This document discusses ethical issues in Indian business. It begins by defining ethics and business ethics. It then outlines several common ethical issues in Indian business such as bribery, gifts/hospitality, conflict of interest, confidentiality/insider trading, tax evasion, and political support. It also discusses reasons for unethical practices like a lack of spiritual values, government regulation, illiteracy, defective education, and conflicting cultural influences. The document proposes ways to promote ethical culture like codes of conduct, training, and communication. It briefly summarizes some major corporate scams in India and identifies Tata and Wipro as India's most ethical companies.

1. Ethical Issues In
Indian Business
Sashrika Babbar (BBA-3/5019)

2. INDEX
1. Introduction to Ethical Issues In Indian Business
2. Ethical Issues in Indian Business
3. Reasons for unethical practices in India
4. India’s Top Corporate Scams
5. Promotion of Ethical Culture In Indian Companies
6. India’s most Ethical Companies

3. 1. INTRODUCTION
What do you mean by ethics?
Ethics refers to the concepts of right and wrong conduct.
Ethics can give real and practical guidance to our lives. Some Ethical values are (i.e.
honesty, trustworthiness, responsibility). Ethics is all about the choices we make.
What do you mean by Business ethics?
Business ethics are important because they add a line of defence to protect the
company, enable company growth, save money and allow people to avoid certain
legal implications.
Business ethics are the moral principles that act as guidelines for the way a business
conducts itself and its transactions. In many ways, the same guidelines that individuals
use to conduct themselves in an acceptable way – in personal and professional settings
– apply to businesses as well.
Importance of Business ethics?

4. 2. ETHICAL ISSUES IN INDIA
1. BRIBERY
Bribery is the offer, promise, giving, asking or
acceptance of an advantage as an inducement for doing
something improper in the work or carrying out a public
function.
2. GIFTS AND HOSPITALITY
From time to time employees may be presented with gifts from other business
organisations or they may present gifts to other including to the public officials.
3. CONFLICT OF INTREST
A conflict of interest in business normally refers to a situation in which an individual's
personal interests conflict with the professional interests owed to their employer or the
company in which they are invested. E.g.- Hiring an unqualified relative to provide
services your company needs.

5. 4. CONFIDENTIALITY AND INSIDER TRAINING
Information which employees gain during the course of their employment should not be
disclosed to anyone not employed by the company, or to an employee who does not require
the information for his/her normal work activities.
5. EMPLOYEE CONTRIBUTION TO OUTSIDE ORGANIZATIONS
An Employee may contribute lectures and articles to technical institutions and journals as
long as he/she has appropriate approval from his or her manager and does not contravene
the confidentiality section of the employee handbook or place himself/herself in a situation
where there might be a conflict between his/her interests and the company.
6. FAIR EMPLOYMENT PRACTICE
There should not be harassment of employees or
any other form of discrimination prohibited by law,
including sexual harassment. Employees should be
given a working environment where there is an
opportunity for all the individuals to contribute to
adding value to the business.

6. 7. TAX EVASION
Tax evasion continues to be spreading unchecked at a personal as well as business level. A
substantial proposition of professionals, traders, small scale manufacturers and even
medium scale business avoid paying due taxes fully.
8. EMPLOYEE BEHAVIOUR &
9. WORKING CONDITIONS
Employee behaviour is defined as an employee's
reaction to a particular situation at workplace.
Employees need to behave sensibly at workplace not
only to gain appreciation and respect from others but
also to maintain a healthy work culture.
Working conditions refers to the working environment
in which one works, as influenced by factors such as
working hours, physical aspects, legal rights and
responsibilities etc. Poor working conditions can
damage employees' health and put their safety at risk.
10. POLITICAL SUPPORT
Large companies join hands with political parties who
support them in their scams. The company and the
political party are mutually dependent on each other.

7. SOME OTHER ETHICAL ISSUES IN INDIAN
BUSINESS ARE LISTED BELOW:
11. ANTI TRUST COMPLIANCE
12. CORRUPTION
13. SMALL BUSINESS ETHICS
14. FRAUD
15. SUPPLY CHAIN ISSUE
A. Producers
B. Suppliers
C. Retailers
D. Consumers

8. 3. REASONS FOR UNETHICAL PRACTICES IN INDIA/
INDIAN COMPANIES
1. REDUCING SPIRITUAL VALUES
Western countries are adopting more family values from the east and practices
like Yoga, meditation, and spirituality, the Indians are adopting more and more
incorrect things in their culture.
2. LACK OF GOVERNMENT REGULATION
Government is also to be blamed for not banning serious adult content in some
general magazines, TV channels, etc. Further India needs tough regulators for
high complaint sectors like real estate and Travel Tourism.
3. ILLITERACY
Around 50% of the population in India is still illiterate. Illiteracy results in the
degradation of the value system. India with its strong religious background has had a
good value system but the presence of few traditions like Sati, child marriage, etc has
led to the degradation of the value system in India.

9. 4. DEFECTIVE EDUCATION SYSTEM
Formal education as is being imparted today does not give proper importance to
the building of moral and ethical aspects of human personality. It is important to
have jobs for the individuals but it is equally important to build a strong value
system in the individuals.
5. THE ROLE OF MEDIA
6. THE EFFECTS OF ECONOMIC PROGRESS ON MORAL VALUES
Lifestyles shown on television are depicted in an exaggerated manner more
colourful than reality.
The intense competition for jobs, the desire for higher salaries, and the attainment of
material comforts of life has distorted the perspective of the youth. They might use some
illegal practices to attain such comfort and luxury.
7. CONFLICTING CULTURAL INFLUENCES
Today, an average Indian faces conflicting influences of two cultures 1. Traditional and 2.
Western. This fragmentation Of Cultural identity is responsible for the delusion of India's
traditional moral and ethical values

10. 8. VALUE PLACED ON THE SEX ON THE CHILD
9. SOCIAL ISSUES
10. INFLUENCE OF WESTEREN CULTURE
SOME OTHER REASONS FOR ETHICAL ISSUES IN INDIAN BUSINESS
ARE LISTED BELOW:

11. 4. HOW TO PROMOTE
ETHICAL CULTURE IN INDIAN
COMPANIES?

12. 1. CREATE A CODE OF CONDUCT
2. CONTINUES REVIEW OF THE CODE
3. LEAD BY EXAMPLE
4. REINFORCE CONCEQUENCES
5. APPRECIATE TO THE EMPLOYEES
6. ETHICAL TRAINING
7. REWARD SYSTEM
8. COMMUNICATION AND MEETING

13. 9. IMMEDIATE CORRECTION AND COACHING
10. HIRE FOR VALUES
11. BUILD A CULTURE OF TRANSPRECY, OPENNESS AND COMMUNICATION
12. WHISTLEBLOWING
13. EMPOWER EMPLOYEES
14. HUMAN RESOURCE ROLE
15. IMPLEMENT WORK ETHICS ASSESSMENTS

14. 5. INDIA’S TOP MOST
CORPORATE SCAMS!!

15. 1. HARSHAD MEHTA CASE 2. KETAN PAREKH

16. 4. COAL SCAM
3. SATYAM SCAM

17. 6. VIJAY MALLYA
5. 2G SPECTRUM SCAM

18. 6. INDIA’S MOST ETHICAL
COMPANIES
1. TATA 2. WIPRO

19. THE TWO COMPANIES EXCEL IN THESE THREE AREAS:
1. Promoting ethical business standards and practices internally
2. Enabling managers and employees to make good choices
3. Shaping future industry standards by introducing tomorrow’s best prices
today.
Other than this,
These companies have adequate disclosure on both structure and communities,
whistle-blower mechanism for key stakeholders, and risk management
Framework for addressing business financial as well as sustainable risk. They
also have an employee code of conduct to ensure ethical operations and policy for
conflict of interest management.

20. THANKYOU