The document discusses various topics related to business ethics including definitions, principles, significance, characteristics of ethical organizations, causes of unethical behavior, and responsibilities of business. It addresses issues like exploitation of customers, ethical dilemmas, sources of ethical problems, environment ethics, corporate social responsibility, and ethical issues in manufacturing and information technology. The key topics covered include defining business ethics, principles of business ethics like impartiality and avoiding conflicts of interest, how unethical behavior can negatively impact companies, and a business' responsibilities towards various stakeholders in society.

1. V I S H N U V I V E K M
A S B , T R I V A N D R U M
Business Ethics
1

2. Who is this?
2

3. What is Business Ethics?
 Interpretation of what is right and wrong behaviour.
 Defines our actions to what is moral and immoral.
3

4. Definition
 Business Ethics is the art and discipline of applying
ethical practices to examine and solve complex moral
dilemmas.
4

5. Discussion
5

6. Principles of Business Ethics
 Impartiality
 Openness
 Confidentiality
 Due Diligence
 Avoid Conflict of Interest
 Faithful to Professional Responsibilities
6

7. Nature
 Code of conduct : It tells what to do and what not
to do for the welfare of the society.
 Based on moral and social values
 Gives protection to social groups
 Provides basic framework : Business ethics
provide a basic framework for doing business.
 Voluntary :
 Requires education and guidance
7

8. Significance with examples
 Business Can Crash-King Fisher
 Loss of Brand Value-Sahara
 Aids culture-Saudi Arabia
 Leadership-Bhutan
 Aids company profitability
8

9. Characteristics of an Ethical Org
 Interaction with Diverse Stakeholders-ITC
 Obsessed With Fairness-TATA
 Individuals Assuming primary responsibility- E M
Sreedharan
 Activity in terms of purpose- Dr Gangadharan
9

10. Causes of Unethical Behaviour
 Balancing Work and Family
 Poor Leadership
 Poor Internal Communication
 Need to meet goals
 Lack of Management Support
10

11. Importance
 Ethics Creates Trust
 Trust Leads to Predictability and Efficiency of
business
 Trust Leads to increased brand image
 Brand image plays a huge role in purchase decision
making process
11

12. Morality and Law
 An action can be illegal but morally right
 An action that is legal can be morally wrong
12

13. Religion and Morality
 All holy books focus on moral values
 The basic essence of all religions is to do good for
mankind
 Gandhian Principles encompassing life
13

14. Abuse
Meaning
To use something for the wrong purpose in a way
that is harmful or morally wrong.
14

15. Common Abuses
HR related
Marketing
related
Finance Related
15

16. HR Abuses
16

17. HR-Privacy Related
17

18. SM
18

19. Other HR Abuses
 Safety and Health
 Low Wages
 Performance Appraisal Issues
19

20. Marketing Abuses
20

21. Name of this type of ad?
21

22. Marketing Related
 Product Development-Unsafe Products
 Pricing Related
 Distribution Related (Place)
 Promotions
22

23. A controversial sales pitch
23

24. Marketing Ethics in Indian Context
 Corrupt Governments-TN
 Archaic Laws-Indian Constitution
 Lax implementation of Laws- Sterlite
 Weak Consumers-Non reactive
 Lack of Competition-Monopoly markets, Customer
Service in TVM
 Few Independent Monitors-Regulatory Agencies
24

25. Finance Related
 Stock Price Manipulation-How?
 Bank Fraud-Egs
 Money Laundering-Process
 Fraudulent Insurance Claims - Sukumarakurup
 Credit Card Frauds-Trivandrum Issue
25

26. Work Ethics
 Work ethics include not only how one feels about
their job, career or vocation, but also how one does
his/her job or responsibilities.
26

27. Benefits of work ethics
 High Productivity
 Good Teamwork
 Determination to succeed
 Consistent high quality work
 Strong Public Image and Goodwill
27

28. Diesel Gate
28

29. The Impact
29

30. The Numbers-USA
 $25 billion in claims and fines
 500,000 vehicles affected
 The automaker three years probation and a $4.3
billion fine
30

31. Repair Timeline
31

32. European Impact
32

33. 2018 developments
33

34. The Grand Finale
34

35. Case Analysis
 Introduction/Executive Summary
 Analysis/Issue
 Alternatives
 Recommendations
 Questions
 Conclusion
35

36. Law Vs Ethics
36

37. Responsibilities of Business to various IG
 Responsibilities towards consumers
 Responsibilities towards shareholders
 Responsibilities towards community
37

38. Arguments For Business Ethics
 Leadership.
 Employee commitment
 Investor loyalty
 Customer satisfaction
 Business is a co-operative effort
 Higher profits
 Changing mindset of shareholders
38

39. Arguments Against Business Ethics
 No need for ethics separately
 Demand and supply forces only operate
 Compliance of law
 Conflicts of interest
 Profit is the object of business.
 Poor moral standards of society
39

40. Exploitation of Indian Customer
40
 Exorbitant Prices ( Medical Devices)
 Deceptive Selling Practices ( Real Estate)
 False and Misleading ads (Fair & Lovely)
 Defective Quality Products ( Car recall)
 Hazardous Products (Pepsi)

41. Exploitation Cntd..
41
 Suppression of Material Information (J&J Issue)
 Cartel (Cement Price Manipulation)
 Adulterated and Substandard Food ( Formalin Issue
in Kerala)
 Less Quantity for Price (Petrol Pumps)

42. Exploitation Cntd..
42
 Dishonoured Warranty ( Home Appliances)
 Create Artificial Scarcity ( Food Items)
 Making Consumer buy unwanted goods ( Stabilizer)
 Advertisement Cost ( Pepsi/Coke)

43. Exploitation Cntd..
43
 Hoarding and Black Marketing ( Food Items)
 Tie in Sales ( New car- insurance, accessories )
 Fall in prices never passed on ( Restaurant Prices)
 Manipulation conditions of delivery ( Delivery
charges/installation charges)

44. Ethical Dilemma
 Moral Situation in which a choice has to be made in
between two equally undesirable alternatives.
 TCS ILP exp
44

45. Structure of Ethical Dilemma
45

46. Ethical Dilemma in Business
46

47. Corporate Dilemma over Ethical Behavior
 Lack of clear lineage between business ethics and
financial success Eg Reliance
 Not clear on how much to spend in business ethics
system (whistleblower system)
 Allocation of time, resources and money is a
challenge
 Long gestation period ( lack of short term gains)
47

48. Whistle Blower Protection Act
 Passed in 2011 in India
 The Bill seeks to protect whistleblowers, i.e. persons
making a public interest disclosure related to an act
of corruption, misuse of power, or criminal offence
by a public servant
 Private Companies have their own internal systems
48

49. Sources of Ethical Problems
Failure of Personal Character
 Personal Values Determine character of a person
 Educational Qualities verified-Bihar Scam
 BGC check may at times does not include personality
check-CV Reference
 Personality shaped by upbringing, education, locality
etc
49

50. Sources Cntd..
Conflict of Personal Values and Org Goals
 Employee may have integrity but forced to
compromise by the employer(Kerala Police Issues)
 Competitive pressures lead to dilution of ethics
 Profit making motives adds to the issue
50

51. Sources Cntd
Org Goals VS Social Values
 1991 Quota System
 Outdated laws cramp operational flexibility
 Public Outcry (Vaccination issue in Kerala)
51

52. Sources Cntd..
Personal Beliefs Vs Org Practices
 Multi racial and Multi religious employees
 Gender Bias ( Discussion-Glass Ceiling, Maternity)
 Racial profiling
 Secular Profiling
52

53. Sources Cntd..
Production and Sale of Hazardous but popular
products
 Sample Tobacco and Liquor Products
 Bans not effective
 Huge amount of taxes
 Loss of jobs- Kerala Scenario
53

54. 54
Environment Ethics

55. Stakeholders of Environment Preservation
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 Public Opinion
 Media
 Environment Groups (Green Peace)
 Government
 Corporations ( Rare)

56. Sustainable Development
56
 Development that satisfies the needs of the
present without compromising the capacity
of future generations, guaranteeing the balance
between economic growth, care for the environment
and social well-being.
 Sustainable development is a concept that
appeared for the first time in 1987 with the
publication of the Brundtland Report, warning of the
negative environmental consequences of economic
growth and globalization.

57. Sustainability-Types
57
 ENVIRONMENTAL SUSTAINABILITY
At the environmental level, sustainability prevents nature
from being used as an inexhaustible source of resources and
ensures its protection and rational use.
 SOCIAL SUSTAINABILITY
At the social level, sustainability can foster the development of
people, communities and cultures to help achieve reasonable
and fairly-distributed quality of life, healthcare and education
across the globe.
 ECONOMIC SUSTAINABILITY
Sustainability focuses on equal economic growth, that
generates wealth for all, without harming the environment.

58. Pollution -Bangalore
58

59. Environmental Damage through Pollution
59
 Depletion of Natural resources
 Degradation of Natural Resources

60. Managing Environmental Issues
60
 Investing in environment friendly processes or
products
 Managing Environment Regulations
 Investing in Environmental Process Improvement(
eg recycling )
 Use of cleaner technologies

61. CSR
61
 Corporate social responsibility (CSR) is how
companies manage their business processes to
produce an overall positive impact on society.
 The World Business Council for Sustainable
Development in its publication Making Good
Business Sense has emphasized on the relavance of
CSR.

62. CSR Driving Force
62
 New Concerns and Expectations from citizens
 Social Criteria increasingly influencing decision
making
 Increased concern on damage cause due to economic
activity
 Transparency of business activities brought about by
media

63. CSR-AAI TVM
63

64. TMH Mumbai
64

65. Scope of Social Responsibility
65
 Protecting and Promoting Stakeholders Interest
 Social Concern ( HLL Lifecare)
 Act of Philanthropy (Bill and Melinda Gates
Foundation)
 Good Corporate Governance

66. Scope Continued
66
 Supplement State Efforts-Jamshedpur
 Ensure Ecological Balance
 Concern for fellow Human Beings (Jwala
Foundation,TVM)

67. Advantages of CSR
67
 Improved Financial Performance
 Enhanced Brand Image
 Increased Sales and Customer Loyalty
 Increased ability to retain employees

68. Advantages Cntd..
68
 Reduced regulatory oversight
 Innovation and Learning
 Easier Access to Capital
 Reduced operating costs

69. Issues Addressed by CSR
69
 Understanding Social responsibility of business
 Protecting and Promoting stakeholder interest
 Promotion of common welfare programs
 Philanthropy
 Good Corporate Governance

70. Issues Adressed by CSR cntd..
70
 Render Social Service
 Focus on human element
 Supplement State Efforts
 Sponsor charitable causes (ITC notebooks)

71. Ethical Issues related to
Manufacturing/Production
 Maintaining a Safe and Ethical Manufacturing
Environment
 Reducing Harm to the Environment
 Operating a Fair and Secure Workplace
 Duty to Provide Safe Products
 Animal testing and their rights or use of
economically or socially deprived people for testing
or experimentation is another area of production
ethics
71

72. Ethical Issues related to IT
 Security
 Proprietary Software
 Deep Learning & Artificial Intelligence
 Parental Ignorance
 Biometrics & GPS
 Automotive
 Medical Sector
 Data Privacy
72

73. IAF-Breaking Barriers
73