Ethics and corporate governance are important for businesses. There are three areas of ethics: metaethics which studies the concepts of right and wrong, normative ethics which establishes moral standards, and applied ethics which analyzes specific issues. Business ethics guide a company's behavior through principles of right and wrong. Corporate governance involves balancing stakeholder interests through rules and processes. Following codes of ethics for employees benefits businesses through goodwill, legal protection, improved society, and strong public image.

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ETHICS AND CORPORATE
GOVERNANCE
PRESENTED BY :-
MANPREET SINGH
MBA 2ND SEMESTER
188433

2. ETHICS
The field of ethics (or moral philosophy) involves systematizing, defending, and
recommending concepts of right and wrong behavior.
Philosophers today usually divide ethical theories into three general subject are
as:
Metaethics, Normative Ethics, And Applied Ethics.

3. 1. Metaethics
The term "meta" means after or beyond, and, consequently, the notion of meta
ethics involves a removed, or bird's eye view of the entire project of ethics. We
may define metaethics as the study of the origin and meaning of ethical conce
pts.
2. Normative Ethics
Normative ethics involves arriving at moral standards that regulate right and wr
ong conduct. In a sense, it is a search for an ideal litmus test of proper behavio
r. The Golden Rule is a classic example of a normative principle: We should do
to others what we would want others to do to us.
3. Applied Ethics
Applied ethics is the branch of ethics which consists of the analysis of specific,
controversial moral issues such as abortion, animal rights, or euthanasia. In re
cent years applied ethical issues have been subdivided into convenient groups
such as medical ethics, business ethics, environmental ethics, and sexual ethi
cs.

4. BUSINESS ETHICS
DEFINITION
Business ethics are moral principles that guide the way a business
behaves. The same principles that determine an individual”s actions
also apply to business.
Acting in an ethical way involves distinguishing between “right” and
“wrong” and then making the “right” choice. It is relatively easy to
identify unethical business practices. For example, companies should
not use child labour. They should not unlawfully use copyrighted
materials and processes. They should not engage in bribery.

5. Importance of BusinessEthics
Ethicalisall about developing trustmaintaining it fruitfully sothat the firm
flourishesprofitably andmaintain goodreputation. Trustleadsto predictability
andefficiency of thebusiness.
1. Trustisusedasanindicatorvariable
2. If thecompanyisabletomaintaintrustwithitsstakeholdersthenthecompanyissaid
tobeethical.
3. TATASteel and FORDcompaniesareveryfamousfortheirethicalpractices.

6. CORPORATE GOVERNANCE
Corporate governance is the system of rules, practices and
processes by which a firm is directed and controlled.
Corporate governance essentially involves balancing the interests
of a company's many stakeholders, such as shareholders,
management, customers, suppliers, financiers, government and
the community. Since corporate governance also provides the fra
mework for attaining a company's objectives, it encompasses
practically every sphere of management, from action plans and
internal controls to performance measurement and corporate
disclosure.

7. CATEGORIES OF CODE OF
ETHICS FOR EMPLOYEES

8. Category 1
“Be a dependable organization citizen”:
→demonstrate honesty and fairness in relationships
with customers, suppliers ad employees.
→Be reliable in attendance and punctuality.
→Comply with safety, health and security regulations.

9. Category 2
“Don’t do anything unlawful or improper that
will harm the organization”:
→ Maintain confidentiality of customer, employee and
corporate records and information.
→Avoid outside activities which conflict with or impair
the performance of duties.
→Make decisions objectively without regard to
friendship or personal gain.
→Do not provide false or misleading information to
corporation or government agency.

10. Category 3
“Be good to customers and suppliers”:
→Strive to provide products and services of highest
quality.
→Convey true claims for products.

11. Category 4
→ Exhibit standards of personal integrity and
professional conduct.
→Protect Quality of environment.
→ Racial and religious discrimination is
prohibited.

12. BENEFITS OF BUSINESS ETHICS

13. Goodwill of the Business
• People like to build long term relationships with
organizations that perform their tasks on
the principles of ethics.
• Following a code of ethics enhances the goodwill
of the organization and organization possess a stro
ng
public image.
• Moreover strong public image leads to continual
loyalty and attracts new investors

14. Prevention from Legal Action
• By implementing ethical practices
organizations are automatically prevented
from illegal and objectionable activities as
business ethics instruct to avoid all that is
wrong or evil.
• Such organizations have no fear of legal
action
and social boycott.

15. Business ethics have substantially
improved society.
Establishment of anti-trust laws, unions and
other regulatory bodies has contributed to the
development of the society.

16. Ethical practices create a strong public
image
• Organization with strong ethical practices will
possess a strong image among the public.
• This image would lead to strong loyalty.
• Strong public image results in attracting new
investors

17. Thank you