Ethics is a set of standards that determine whether actions are right or wrong. Business ethics applies ethical standards to business activities and decisions. There are two types of ethical issues in business - overt problems like bribery that are clear violations, and covert problems like complex acquisition decisions that are more difficult to identify. For a decision to be ethical, it should be right, equitable, good, proper, fair, and just. However, there is no universal agreement on ethics because value systems differ based on individual backgrounds and experiences. Ethical decisions also affect many situations and have widespread consequences.

1. MODULE I
What is ethics?
The word ethics comes from the Greek word “ethikos”, meaning character. There is a similar
term that prevails in and many times considered synonym of ethics, is “morality”. But in essence
these are quite different concept .the word morality has been derived from the Latin root
‘moralist” which means behavior. Ethico-moral actions thus pertain to set of actions engineered
by the characters and expressed through behaviors.
Ethics is a set of standards, or a code, or value system, worked out from human reason and
experience, by which free human actions are determined as ultimately right or wrong, good or
evil. If acting agrees with these standards, it is ethical, otherwise unethical. Business ethics refers
to the application of ethics to business. To be more specific, business ethics is the study of good
and evil, right and wrong and just and unjust actions of businessman.
NATURE OF ETHICS IN BUSINESS
1. In business activities, most ethical questions could be of two types---overt and covert.
Overt ethical problems like bribery, theft, sabotage etc are clear for everyone to see and
are generally considered reprehensible. Covert ethical problems are more complex, types
of problems occur in corporate acquisitions, marketing and personnel policies, capital
investment, market war etc. They are difficult to locate, to eliminate and are consequently
much more dangerous and threatening to business.
2. For a decision to be ethical, it should possess the following characteristics. It should be:
(a) RIGHT- that which is morally correct and due;
(b) EQUITABLE-that which is just and equal;
(c) GOOD-that which brings in the highest good for all concerned;
(d) PROPER-that which is appropriate and acceptable;
(e) FAIR-that which is honest and due;
(f) JUST-that justice is not only done; but is also seen to have been done.
3. Ethics is unstructured, i.e., it does not have a structured format or framework. It is
abstract in concept. Hence it does not have universal acceptance, mainly because:
a. Ethics depends upon our moral standards;
b. Moral standards depend upon our value system;
c. The value system of people depend upon their background & childhood
experience; &

2. d. The background & experience of people are vastly different. Hence the ethical
practices of people are also different.
4. Ethical decisions should express some obligations to others. The very concept of being
ethical means that it results in some well for the larger society and not just for oneself.
CHARACTERISTICS OF BUSINESS ETHICS
1. Ethical decisions differ with the individual perspective of different persons. Each person
views the ethical question in terms of his or her own frame of reference. And this frame
of reference is the person’s own unique value system. Hence ethical decisions do not
have unique solutions, but a multitude of alternatives. For example, In case of a Dam
building project, the company loses Rest. 2 laky per day, if operations are stopped. One
day during work, it is found that a worker is missing inside the dam. Work will definitely
be stopped to search for the missing man. However, if the man is not found within a day
or two, how long should work be stopped, inspire of the losses to the company, will
depend upon the value system of the manager & what according to him is the ethical
thing to do. Given the same situation, but a different manager, work will be stopped only
unto what that manager thinks is the ethical course of action, or work may not be stopped
at all.
2. Ethical decisions are not limited only to them, but affect a wide range of other situations
as well. Similarly, unethical decisions do not end in themselves, but have widespread
consequences. One ethical action is like a pebble thrown into a pond of water, it produces
endless ripples in the pond, until it disturbs the water in the entire pond. Similarly the
single unethical action is not limited to the individual in the company who commits it, but
spreads within the entire organization and one unethical organization affects the entire
industry.
3. Most ethical decisions involve a trade-off between costs incurred & benefits received. It
needs to be clearly understood that costs & benefits, profits & responsibilities are two
ends of a single spectrum. Both cannot be mixed simultaneously .If you want some
benefits for your organization or for yourself; you need to incur some costs or make some
sacrifice. Similarly, maximum profits cannot go hand in hand with maximum social
responsibilities or maximum welfare obligations. Maximum concern for task or
productivity cannot go hand in hand with maximum concern for people. There has to be a
trade-off, a compromise. And this compromise, where it is done, how it is done, results in
a decision being ethical or unethical. One cannot get everything for nothing.

3. 4. The consequence of most ethical decisions is not clear. They are ambiguous in nature.
The only certainty is that somewhere, sometime, somehow, something positive would
result from an ethical decision and something negative from an unethical one. The
consequences of both may not be immediate and may not be clear.
5. Every person is individually responsible for the ethical or unethical decision & action that
he or she takes. Taking an ethical or unethical decision cannot be an impersonal activity
as it involves the person’s individual & unique value system along with his moral
standards. The same is the case with ethical or unethical actions. Every person has to take
decisions, & whether this decisions are ethical or unethical, will depend upon his own
conscience & upon what he is comfortable with. His own value must justify his actions
.For example, In case of parliamentary democracy, during a vote of confidence of a
government, if the prime minister of the country pays bribes to a few independent MPs to
buy their votes in the favor of the government, he is doing so, not for his own sake alone,
but to save the entire government. In other words, the unethical action & decision of
bribery, is taken on behalf of the entire government, & not merely on his own behalf. Yet
he alone is personally & individually responsible for the crime, & not his entire
government. Ex: in Hindu mythology Rants (Sage Valrico).
6. Ethical decisions are voluntary human actions .A person cannot escape his personal
liability for his crimes by saying that he was forced to pay the bribe in order to get the
job. All human beings have the freedom of choice & of free will. Even under compelling
situations, many men have refused to divert from the ethical way of life. Hence, no one
can excuse himself or herself of his or her actions by citing force of circumstances or
pressure of men for his or her unethical activates. Hence all ethical or unethical actions
are supposed to result from voluntary human actions & not from situations beyond their
control.
WHY IS ETHICS IMPORTANT?
Ethics is important to business for several reasons as stated below:
1. Ethics corresponds to basic human needs: It is a human trait that man desires to be
ethical; not only in his private life but also in his business affairs where, being a manager,
he knows his decisions may affect the lives of thousands of employees. Moreover most
people want to be part of an organization which they can respect & publicly proud of,
because they perceive its purpose & activities to be honest & beneficial to the society.

4. 2. These basic needs compel the organizations to be ethically oriented.
3. Values create credibility with the public: A company perceived by the public to be
ethically & socially responsive will be honored & respected even by those who have no
intimate knowledge of its actual working. There will be an instinctive prejudice in favor
of its products, since people believe that the company offers value for money.
4. Values give management credibility with employees: The management has credibility
with its employees precisely because it has credibility with the public.
5. Values help better decision making: Ethical attitude helps the management to make better
decisions, i.e, decisions which are in the interest of the public, their employees & the
company’s own long term good.
6. Ethics & profit: Value driven companies are sure to be successful in the long run, through
in the short run, they may lose money.
7. Law cannot protect society, ethics can: Technology develops faster than the government
can regulate. People in an industry often know the dangers in a particular technology
better than the regulatory agencies. Further, government cannot always regulate all
activities, which are harmful to the society. Where law fails, ethics can succeed .An
ethical oriented management takes measures to prevent pollution & protect workers’
health even before being mandated by law.
SOURCES OF BUSINESS ETHICS
Three repositories of ethical values influence managers in every society: religion, culture &
law. These repositories contain unique system of values that exert varying degrees of control
over managers. A common thread, the idea of mutual help, runs through all the value systems.
Ethical values are mechanism that controls behavior in business & in other walks of life. Ethical
restraints are more affective than are cruder controls such as police, lawsuits, etc.
1. RELIGION:
One of the oldest sources of ethical inspiration is religion .The world’s great religions are
in agreement on fundamental principles. The principle of reciprocity towards one’s fellow
human beings is found in all major religions. The great religions
Preach the necessity for an orderly social system & emphasis social responsibilities in such a
way as to contribute to the general welfare.
2. CULTURAL EXPERIENCE:
Culture refers to a set of values, rules & standards transmitted among generations &
acted upon to produce behaviors that fall within acceptable limits. These rules & standards
always play an important part in determining values, because individuals anchor their conduct
in the culture of the group. Civilization itself is a cumulative cultural experience in which

5. people have passed through three distinct phases of moral codification (hunting & gathering
stage, agricultural stage & industrial stage).
3. THE LEGAL SYSTEM:
Laws are rules of conduct, approved by legislatures that guide human behavior in any
society. They codify ethical expectations & keep changing when new evils emerge. But laws
cannot cover all ethical expectations of society.
ETHICAL STANDARDS
If we are to get back to the root source or principle of ethics we must talk about human
goals. Ethical standards are not different from any other kind of standards in this regard .Ex:
The standards that I set as a manufacturer of parachute. When I check a parachute, coming of
the production line, against the quality standards, it is supposed to meet, find it deficient &
reject it as a “bad” parachute, the basic reason for rejecting it as a bad is that, failing to meet the
standard set, it will fail to achieve the goal the parachute is being made for. It is the goal of the
parachute, which determines the manufacturing standards to be used.
Like the production standards of the parachute manufacturer, ethical standards are not
ends in themselves. Ethical standards arise, or are set in the attempt to reach an ultimate human
goal. There are certain needs which all men experience and certain goals all men strive for .The
fulfilling of these we usually call the pursuit of happiness. As this human goal changes, or is
refined by human experience, ethical standards must change or be refined. Historically, this is
exactly what has happened.
The “equality of men” & the “right to freedom” are relatively new human “goals” accepted by
or permitted by men. The general acceptance of these new human goals has changed the ethical
standards determining right & wrong actions.
ETHICAL STANDARDS THROUGH HISTORY
The following are a few of the most popular ethical (moral) standards drawn from
both philosophy & religion used by man through the ages.
1. Treat all men with fairness & justice.
2. Do to others, as you would have them to do to you. (the Golden Rule)
3. Always treat individuals as end, with respect & dignity.
4. Love your neighbor as yourself.
5. Always ask: “Will it hurt anyone?”
6. Know you – be always honest with yourself & with others.
7. Evaluate the morality of an action by examining into the intention behind it & into
the cause – effect chain reaction.

6. 8. Long-range utility standards: so act that your act will produce over the long range,
maximum personal happiness in terms of its ultimate consequence (“enlightened
self-interest”).
9. The general law standard: so act that your act could be made a general law for all
people that would successfully regulate the relations of men with each other toward
the greatest good for the greatest number. (I.e., ask: “suppose everybody did this?”)
10. The less evil standard: So act, in circumstances where action is unavoidable & all
available actions appear unethical that your act, judged by its consequences & the
above standards is the lesser evil.
A code of ethics is a set of specific ethical rules, which are derived from the broad,
general ethical standards citied above. A carefully worked out code provides a shortcut
between the general standards & the concrete life situations with which we deal daily.
1. ETHICAL DILEMMAS
The ethical dilemmas stem from three sources: face- to- face ethics, corporate policy
ethics & functional area ethics.
1. FACE-TO-FACE ETHICS: It is likely that quality assurance man wins at minor
defects & approves a lot delivered by a supplier because of the personal relationship
the two enjoy between them. It is also likely that the supervisor over-rates the
performance of an employee because of the similar relationship that exists between
the two.
2. CORPORATE POLICY ETHICS: Following conflicting situations are typical:
a. Your R & D department has modernized one of your products. It is not really
‘new & improved’ but you know printing this statement on the package &
using it in the advertisement will increase sales. What would you do?
b. You are interviewing a former product manager who just left a competitor’s
company. You are thinking of hiring him. He would be more than happy to
tell you the competitor’s entire plan for the coming years. What would you
do?
c. You produce an anti-dandruff shampoo that is affective with one application.
Your assistant says that the product would turn over faster if the instructions
on the label recommended two applications. What would you do?
3. FUNCTIONAL AREA ETHICS: Ethical dilemmas crop up in purchasing
department where strong pressures are felt to obtain the lowest possible prices from
suppliers too fell a similar need to bag lucrative contracts. Bribes, kickbacks &

7. discriminatory pricing are temptations to both the parties. Marketing is another area
of the ethics issue. Pricing, promotions, advertising, product information, relation
between ad agencies& their clients & marketing research are potential areas of
ethical dilemmas. Then there is the area of sophisticated communication
technology, which is grossly abused or misused to realize one’s ambitions.
PRACTICAL SUGGESTIONS FOR MAKING ETHICAL DECISIONS
Individuals in business can take a number of steps to resolve ethical problems.
First, three well known principles to resolve ethical issues are moral idealism,
intuitionism & utilitarianism. These principles help a manager in making a decision in
ethically difficult circumstances.
a. Moral idealism postulates that certain acts are good & others are bad.
Pursue those acts, which are good & avoid the bad ones. Moral
idealism gives definite answer to ethical issue.
b. Intuition leaves it to the individual concerned to sense the moral gravity
of the situation. If he feels that his motives are good & that they do not
intend to hurt anyone, he is taking an intuitive approach to morally
difficult situations.
c. Utilitarianism seeks to establish the moral locus not on the act or the
motives but on the consequences. If the consequences represent a net
increase in society’s happiness, or at least not a net decrease the act is
morally right.
Second, consider some decision tactics that illuminate moral choices. One such device
is to engage in imaginary conversations with a hypothetical opponent as an antidote for
certitude. Have a conversation or debate with an intelligent person who takes a different
view. Seek out a more experienced, ethically sensitive person in an organization to be
your adviser.
Third, write down pros & cons in the form of a balance sheet. The balance sheet
approach helps decision making by presenting information in an organized way.
Fourth, sort out ethical priorities before problems arise. Prioritisation shall help
consider alternatives when one is not under stress.
Fifth, one should commit oneself publicly on ethical issues. He should identify
potential areas of ethical conflicts & make clear his opposition to damaging ecology,
stealing supplies from the company, etc once the stand is made clear, co-employees
will be less tempted to approach corrupt intentions.

8. Finally, one should set a good personal example for employees. As the Bhagavad-Gita
Gait says, “Whatever a great man does is followed by others; people go by the example
he set up.” This is one of the fundamental managerial functions. An ethical manager
can create a merely uplifting work environment. An unethical manager may make
money but he has to pay heavy price & the price is one’s integrity
CODE OF BUSINESS ETHICS
Nearly 95% of Fortune 500 companies have codes of conduct. The
Federation of Indian Chambers of Commerce & Industry has recently issued a
declaration on ‘Norms of business ethics.’ The Punjab, Haryana & Delhi Chamber
of Commerce has also lately formulated a ‘code of ethics.’ The code says:
• Business must maintain the highest standards of behavior for the benefit of
industry, employees, customers, shareholders & the society.
• Goods & services must conform to the commitment promised to customers.
Business must be realistic & truthful in stating claims.
• Customers must be given best possible service & treated with respect & fairness.
• Business must understand & respect the needs, concerns & welfare of the
community and society. It should use knowledge & experience for upgrading the
quality of life. All business endeavors must combine the qualities of private
excellence for public good.
• The best way of promoting high standards of business practice is through self-
regulation.
The Advertising Standards Council of India accepts, among other things, that there will
be:
a. No offence to generally accepted norms of public decency.
b. Truthfulness & honesty in claims & representation
c. No indiscriminate advertising of products, which are hazardous to society or
individuals.
Whoever evolves the code, its purpose is to provide guidance to managers &
employees when they encounter an ethical dilemma. The most effective codes are those
drawn up with the co-operation & widespread participation of employees.
UNIVERSAL MORAL PRINCIPLES
(Universal principles of ethics)
The universal moral principles are the outcome of the mother of all principles----
unconditional love & compassion--- which appears in all faiths, & is expressed here as

9. ‘concern for the well being of others’ .The principle have been organized into three
categories for ease of use: personal, professional &global ethics.
1. PRINCIPLES OF PERSONAL ETHICS.
Personal ethics might also be called morality, since they reflect general expectations of any
person in any society, acting in any capacity. These are the principles we try to instill in our
children and expect of one another without needing to articulate the expectation or
formulize it in any way.
Principles of personal ethics include:
• Concern for the well being of others
• Respect for the autonomy of others
• Trustworthiness & honesty
• Willing compliance with the law
• Basic justice: being fair
• Refusing to take unfair advantage
• Benevolence: doing good
• Preventing harm
2. PRINCIPLES OF PROFESSIONAL ETHICS
Individuals acting in a professional capacity take on an additional burden of ethical
responsibility. For egg: professional associations have codes of ethics that prescribe required
behavior within the context of a professional practice such as medicine, law, accounting or
engineering. These written codes provide rules of contact & standards of behavior based on the
principles of professional ethics, which include:
• Confidentiality
• Impartiality
• objectivity
• Openness; full disclosure
• Due diligence/duty of care
• Fidelity to professional responsibilities
• Avoiding potential or apparent conflict of interest
Even when not written in a code, principle of professional ethics are usually expected of people
in business, employees, volunteers, elected representatives & so on.

10. Principles of Global Ethics include:
Global Justice (as reflected in international laws)
Society before self (social responsibility)
Environmental stewardship
Interdependence and responsibility for the ‘whole’.
Reverence for place
Co-existence of principles
Principles can only provide guidance. There are a myriad of situations that will never lend
themselves to an easy formula, and the principles can only be used to trigger our conscience or
guide our decisions.
It is important to note that principles of personal ethics are the best checkpoint in any situation,
often overriding those at the professional and global levels. For example, when judging if a
corporation has been socially responsible, we still need to consider principles of personal ethics
as prerequisites. Contributions to charities and the like ‘doing good’ may appear to be the
interests of society, but loses its significance if the corporation has not also taken responsibility
to minimize the damage done by their core business operations ( preventing harm). Similarly,
trustworthiness is fundamental to professionalism and so on.
As well, there are many times when principles will collide with other principles. Let us say you
are a scientist, who has been forced by a corrupt military dictatorship into designing a biological
weapon. Since the project is top secret, you have a professional duty to maintain confidentiality.
But, if there were an opportunity to inform UN Observers, global and personal principles would
justify revealing confidential information to protect the overall good of humanity. (Compare this
to selling confidential information for personal gain.) Still, the scientist is faced with a tough
decision, since they or their family could be harmed as a result of the whistle blowing. This is
where the principles must be viewed in the context of universality.
GENERAL MORAL ISSUES ENGULFING MODERN SOCIETY
CORRUPTION
The dictionary defines corruption as an inducement to wrong by bribery or other unlawful
means: a departure from what is pure and correct. The public officials commonly apply the term
to self-benefiting conduct and others dedicated to public service. Corruption has not only
widespread everywhere; it has innumerable forms and dimensions.

11. Ex: the milk seller who adulterates milk; the grocer who uses false weights; the contractor who
does shady job of road building and the engineer who puts the seal of approval on it;
industrialists and businessmen controlling political power and party machines for their selfish
motives –all these are corrupt.
Corruption is a complex phenomenon and various factors and forces have conspired to cause it
and spread it everywhere. The major causes responsible for corruption are the following:
Economic insecurity: the poor people become corrupt in the hope of becoming rich. The rich
indulge in it for fear of losing what they have.
High rate of income tax: since the tax rates are high in India even the honest people are often
tempted to escape from it by making false returns of their property and income. Many of the
officers in the income tax are also equally corrupt and they thrive on bribery.
Meager salary being paid to the government servants: the govt employees who draws poor
salary expect tips and bribes even for doing their regular or routine duties
Emergence of new sources of wealth and power: unholy understanding between the
businessmen and the politicians always encourage corruption
The system of democracy: all political parties spend crores of rupees on each election the
money comes from the big businessmen and industrialist who have their own vested interests in
financing the election. They supply money to the party elections in the form of black money.
This in turn gives them license, a ‘moral’ justification for accumulating
Unaccounted money in different forms
The very presence of black money: this money is obtained by various ways namely tax evasion
smuggling speculation in shares receiving fee in cash without showing them in accounts etc…
Social and economic modernization: “the get –rich quick” motivation inspires a large number
of people both at the top and bottom of the society to become corrupt.
ORGANISED CRIME AND WHITE COLLAR CRIME
The organized crime may take anyone of these forms: racketeering, gambling, bootlegging or
smuggling, kidnapping, rape etc. Organizer of these crimes indulge in anti-social activities –like
carrying illegal prostitution in hotels, supplying liquors in prohibited areas, smuggling gold and
other valuable goods, organizing mafia gang to control various legitimate business activities such
as coal mines and so on.

12. The main purpose here is to get large profit in the form of “easy money”. The activities of the
organized criminals have a great disorganizing effect on the community. Political corruption is
the main motivating factor for organized crime in the modern societies.
White-collar crime or socio economic crime is a crime committed by a person of respectability
and high socio status in course of his occupation. The white-collar crime includes the following:
1. Tax evasion and avoidance
2. Share pushing malpractices in share markets
3. Monopolistic control and usury
4. Violation of foreign exchange regulation
5. Election offense and malpractices
6. Theft and misappropriation of public property and funds
7. Violation of standards, weight and measures
8. Frauds in corporate bodies
9. Professional misconduct
Prevention of corruption
Corruption, which has gone deep into our social life, cannot be removed very easily. In fact, it
can only be reduced or minimized, and can hardly be stopped altogether.
Even for minimizing this problem, both preventive and penalizing measures will have to be
taken. Preventive action must include administrative, legal, social, economic and educative
measures.
DISCRIMINATION
The root meaning of the term DISCRIMINATE is to distinguish one object from another. A
morally neutral and not necessarily wrongful activity. However in modern usage, the term is not
morally neutral: it is usually intended to refer to the wrongful art of distinguishing illicitly among
people not on the basis of individual merit but on the basis of prejudice or some other invidious
or morally reprehensible attitude.
WHY IS IT WRONG TO DISCRIMINATE?
The arguments mustered against discrimination generally fall into three groups
a) Utilitarian arguments, which claim that discrimination leads to an inefficient use of
human resources

13. b) rights arguments, which claims that discriminations violates basic human rights
c) justice arguments, which claims that discrimination results in an unjust distribution of
societies benefits and burdens.
Utilitarian arguments
The standard utilitarian arguments against racial and sexual discrimination are based on the idea
that societies productivity will be optimized to the extent that jobs are awarded on the basis of
competency or merit. Different jobs, the arguments goes, requires different skills and personality
traits if they are to be carried out in as productive a manner as possible. Furthermore, different
peoples have different skills and personality traits if they are to be carried out ion as productive a
manner as possible. Furthermore, different people have different skills and personality traits.
Consequently, to ensure that jobs are maximally productive, they must be assigned to those
individuals whose skills and personality traits qualify them as the most competent for the job.
Insofar as jobs are assigned to individuals on the basis of other criteria unrelated to competency,
productivity must necessarily decline. Discriminating among job applicants on the basis of race,
sex, religion, caste or other characteristics unrelated to job performances necessarily inefficient
and, therefore, contrary to utilitarian principles.
RIGHT ARGUMENTS
According to the rights arguments discrimination is wrong because it violates a persons basic
moral rights. To be treated as a free person equal to any other person, and that all individual have
a correlative moral duty to treat each individual as a free and equal person. Discriminatory
practices violate the principle in two ways. First, discrimination is based on the belief that one
group is inferior to other group: that Blacks, for example are less competent or less worthy of
respect than whites or perhaps that women are less competent or worthy of respect than men.
Racial and sexual discrimination for instance may be based on stereotypes that see low caste
people as “lazy” or “shiftless” and see women as “emotional” and “weak”. Such degrading
stereotypes under mine the self-esteem of those groups against whom the stereotypes are directed
and thereby violate their right to be treated as equals. Second, discrimination places the members
of groups that are discriminated against in lower social and economic positions. Women have
fewer job opportunities and are given lower salaries. Again, the right to be treated as a free and
equal person is violated
JUSTICE ARGUMENTS
According to it discrimination is a violation of the principle of justice. Individuals who are equal
in all respects should be treated equally even if they are dissimilar in other non-relevant respects.

14. Discrimination in employment is wrong because it violates the basic principle of justice by
discriminating between people on the basis of characteristics (race or sex) that are not relevant to
the task they must perform.
TYPES OF DISCRIMINATION
SEX DISCRIMINATION
When the sex of a job applicant is one of the factors on which an employment decision is
based, the decision is most likely unlawful. The use of height or weight requirements may be
challenged and found to be discriminatory if the requirements eliminate a significantly larger
number of women than men. Other types of sex discrimination include refusing employment to a
women based on the assumption that parent hood might cause her to be absent more than a male
employee. Sex stereotyping can also result in unlawful sex discrimination .for egg, if a male
manager evaluates the performance of a female subordinate more critically because she
demonstrate stereotypically masculine characteristics (for egg, assertiveness) he is guilty of sex
discrimination.
Sex stereotypes exist in the work place and often hinder women’s chances for promotion
and salary rises. The most damaging stereotyping is that women have lower carrier commitment
than men do. A second damaging stereotype is that women are too emotional to handle
management position. When men blowup, they considered to have a good reason; when women
do it they are considered to be emotional finally, women are either too aggressive or not
aggressive enough. Those who are too aggressive are considered shrews (bad tempered or
scolding women); those who are not aggressive enough are not considered mgt material.
While overt discrimination may be waning in corporate India, covert, subtle discrimination is
on the rise. Exclusion is one example. Women are left out of decision-making; important
meetings and business trips .the results of exclusion are adverse impact on women’s careers. And
the loss of important contributions by women.
PREGNANCY DISCRIMINATION
Under the pregnancy discrimination act, a female employee or job applicant may not be treated
differently from a male because of her pregnancy or capacity to become pregnant. Essentially, a
woman is protected against being fired or refused a promotion or not hired because she is
pregnant or has had an abortion. As long as they can still work pregnant employees cannot be
force to quit or go on leave. Some countries have variations of a parental leave law that enable
both parents to take time of from work to care for their new born child.
RACEAND CASTE DISCRIMINATION

15. NATIONAL ORGIN DISCRIMINATION
AGE DCRIMINATION
RELIGIOUS DISCRIMINATION
Discrimination occurs when an employee is forced to choose between giving up an
employment opportunity or a fundamental belief or practice. The most common problem occurs
when an employee asks the manager to accommodate a religious need and there is a scheduling
conflict that must be resolved (for egg: conflict might arise if management asks a Christian to
work on Good Friday.
HANDICAP DISCRIMINATION
ECOLOGICAL CONCERN
Ecological refers to the science of the interrelationships among organisms and their
environments. The operative term is “interrelationships”, implying that interdependence exists
among all entities in the environment.
Ecosystem refers to the total ecological community both living and nonliving. Webs of
interdependence structure ecosystems. Predators and prey, producers and consumers, host s and
parasites are linked together creating interlocking mechanisms –checks and balances that
stabilize the system. An ordinary example of ecosystem is a pond it consist of a complex web of
animals and vegetable life. Suppose that the area were the pond is located experiences a
prolonged period of drought, or that someone begins to fish in the pond regularly, or that during
period of excessive rainfall plant pesticide begins to fill into it. Under any of these
circumstances, changes will occur in the relationships among the pond’s constituent components.
Damage to a particular form of planned life may mean that fewer fish can live in the pond; a
particular species may even disappear. A change in the pond’s ecosystem may also affect other
ecosystem. Because of water contamination, for egg; a herd of deer that live nearby may have to
go elsewhere for water; their presence may reduce the berry crop, which have previously
supported other animals. The point is that in considering any ecosystems one must remember its
conflicts and interrelated nature and the complicated network for interdependencies they bind it
to other ecosystems
Environmental intrusions affect the integrity of ecosystems. Because, an eco system represents a
delicate balance of inter-related entities. And because, eco-systems are inter-locked, an intrusion
in to one will affect its integrity and the integrity of others. In fact, precisely because of the inter-

16. related nature of eco-system and because intrusions generally prod7ce serious unfavorable
effects, business must scrupulously avoid actions, practices and policies that have an undue
impact on the environment.
Pollution and resource depletion
Environmental damage inevitably threatens the welfare of human beings as well as plants &
animals. Threats to environment come from two sources: pollution & resource depletion.
Resource depletion refers to the consumption of finite or scarce resources .
Air pollution
Air pollution increased rapidly as industrialization expanded. Today, air pollution affect
vegetation & decreasing agricultural yields; they are hazardous to health &life, raising medical
costs &lessening the enjoyment of living; &they threaten catastrophic global damage in the form
of global warming, acid rain & destruction of the stratospheric ozone layer. [Industrial,
agricultural & other human activities during the late 150 years have released substantially more
green gases (carbon dioxide, methane & chlorofluorocarbon) into the atmosphere, particularly
by the burning of fossil fuels such as oil &coal. rising levels of greenhouse gases will trap
increasing amount of heat on earth &so will raise temperatures around the globe] {A layer of
ozone in the lower stratosphere screens all life on earth from harmful ultraviolet radiation. This
ozone layer, however is destroyed by CFC gases, which have been used in aerosol cans,
refrigerator, air conditioners, industrial solvents & industrial foam blowers}
Water pollution
Water pollutants are varied, consisting not only of organic wastes but also dissolved salts,
metals, radioactive, materials, as well as suspended materials such as bacteria, viruses &
sediments. These can impair or destroy aquatic life, threaten human health, 7 foul the water.
Water pollutants enter surface water or underground water either from a pipe carried sewage or
industrial wastes or from crop pesticides or animal wastes carried in rainwater or runoff.
Land pollution
Toxic substances
Toxic substances are those that can cause an increase in mortality rates or incapacitating illness
or those that have other seriously adverse health or environmental effects. Toxic substances
released on land include acidic chemicals, in organic metals (such as mercury or arsenic),
flammable solvents, pesticides, herbicides, phenols, explosives & so on.

17. Solid wastes
City garbage dumps are significant sources of pollution, containing toxic substances such as
cadmium (from rechargeable batteries), mercury, lead (from car batteries & TV picture tubes)
vanadium, copper & zinc.
NUCLEAR WASTES
Light- water nuclear reactors contain radioactive materials, including known carcinogens such as
strontium 90, cesium 137, barium 140 & iodine 131. Extremely high levels of radiation from
these elements can kill a person; lower dosages (especially if radioactive dust particles are
inhaled or ingested) can cause thyroid, lung or bone cancer as well as genetic damage that will be
transmitted to future generation.
DEPLETION OF SPECIES & HABITATS
It is well known that human beings have depleted dozens of plant &animals species to the point
of extinction. Since 1600 A.D., at least 63 major identifiable species of mammals & 88 major
identifiable species of birds are known to have become extinct. Forest habitats on which the bulk
of species depend are also being decimated by the timber industry. The loss of forest habitats
combined with the effects of pollution is thought to have led to the extinction of a phenomenal
number of species.
DEPLETION OF FOSSIL FUELS & MINERALS
There are physical limits to our natural resources: although many are abundant, they cannot be
exploited indefinitely. Eventually they will peter out & the costs of extraction will rise
exponentially. More plentiful substitute materials may be found for these resources, but it is
likely that substitutes cannot be for all them. Whatever substitutes are developed will also be
limited, so the day of reckoning will be delayed
Noise pollution
Excessive noise could adversely affect productivity. The elimination of noise helps to prevent
accidents. It is also known that noise has a delayed impact, resulting in loss of hearing. Excessive
noise effects are lack of concentration and mental disorientation. Noise interferes with
communications based upon sound, when the frequency of the interfering noise coincides with
that of the desired sound. Loud continuous noise interferes with working efficiency and causes
the incidence of errors to rise. In so far as noise interferes with sound communication, it may
mask warning signals, and thereby, increasing at the same time, the incidence of errors which
may make accidents more likely.

18. ECOLOGICAL ETHICS
We should recognize our moral duty to protect the welfare not only of human beings, but
also of other nonhuman parts of the ecological system.
An ecological ethics is an ethic that claims that the welfare of at least some non-humans is
intrinsically valuable and that, because of this intrinsic value, we humans have a duty to
respect and preserve them. There are several varieties of ecological ethics, some more
radical and far reaching than others. Perhaps the most popular version claims that, in
addition to human beings, other animals have intrinsic value and are deserving of our
respect and protection. Some utilitarians have claimed, for example, that pain is an evil
whether it is inflicted on humans or on members of other animal species. The pain of an
animal must be considered as equal to the comparable pain of a human, and it is a form of
spieciest prejudice (akin to racist or sexist bias against members of another race or sex) to
think that the duty to avoid inflicting pain on members of other species is not equal to our
duty to avoid inflicting comparable pain on members of our own species.
Certain non-utilitarians have reached similar conclusions by a different route. They have
claimed that the life of every animal ‘itself has value’ apart from the interests of human
beings. Because of the intrinsic value of its life, each animal has certain moral rights, in
particular the right to be treated with respect. Humans have a duty to respect this right,
although in some cases a human's right might override an animal's right.
Both the utilitarian and the rights arguments in support of human duties toward animals
imply that it is wrong to raise animals for food in the crowded and painful circumstances in
which agricultural business enterprises currently raise cows, pigs and chickens. They also
imply that it is wrong to use animals in painful test procedures as they are currently used in
some businesses (e.g., to test the toxicity of cosmetics).
Broader versions of ecological ethics would extend our duties beyond the animal world
to include plants. Other authors have claimed that not only living things but even a
natural species - a lake, a wild river, a
mountain and even the entire “biotic community" - has a right to have its "integrity,
stability and beauty" preserved.
The fact that we are only a part of a larger ecological system has led many writers to insist
that we should recognize our moral duty to protect the welfare not only of human beings, but
also of other nonhuman parts of this system. This instance on what is sometimes called
ecological ethics or deep ecology is not based on the idea that the environment should be
protected for the sake of human beings. Instead, ecological ethics are based on the idea that
nonhuman parts of the environment deserve to be preserved for their own sake, regardless of

19. whether this benefits human beings.
LAW AND ETHICS
Law is a code of conduct which the authority in power prescribes for society. It
basically differs from ethics in its option to use force if and when necessary and by the fact
that it is backed by power. Laws are, by and large, fair and moral. But it is not easy to accept
that laws can be the foundations of ethics, or even that laws can ensure ethical behaviour.
There are many situations in life, where just following the law does not make one
ethical. For example, if your next door neighbour has just today lost their only son in a
motorcycle accident, just when you wanted to celebrate the birthday of your only son with
gaiety, music, guests, enjoyment and much merry making, there is no law to prohibit you from
doing so. If you decide not to, it is because of the dictates of your conscience, not because of
the dictates of the law. Your conscience, your ethical value system and your principles forbids
you to rejoice when some one else nearby is in sorrow. The law has no role to play in such a
situation.
Moreover, not all laws have moral choice. There are many laws which do not involve any
ethicality questions - for example, we are required to walk on the left hand side of the road.
This is done to ensure traffic control and the traffic discipline, but a question of ethics is not
involved here.
Again, all moral and ethical actions do not involve the law. For example, it is ethical to love
and respect your parents, but there is no law for it, except when they are deliberately
mistreated by their children. Law represents the minimum standards of behaviour expected
from people. Merely following the law, does not make one ethical.
Another aspect of the legal system is that it prohibits us of certain actions. It also spells out
the negative consequences of our not following the law - that is legal punishment. However,
ethical behaviour encourages us to do certain things and explains the benefits, i.e., the
positive aspects of these ethical behaviour. For example, the law tells us not to steal, not to
kill, but ethics tells us to do good, speak the truth, help others in distress. Thus there is a
positive aspect inherent in ethical behaviour, whereas the law is more concerned about
negative behaviour.
Yet another aspect of the law is that ethics precedes the action, the law follows it. Ethics tells us
what we should strive to develop in ourselves (high moral standards), on the other hand, law
tends to be more concerned with the consequences of the negative action - what punishment
would follow, who is guilty and how shall justice be done.

20. Moreover, the law is a universally accepted, published document, whereas ethics do be not yet
have a universally accepted, consistent and published concept - it is abstract, culture specific
and left to the individual for interpretation and action.
Again, the law clearly specifies what action would be taken against a person if he or she violates
the provisions of the legal system. But, in case of ethics, there is no specific outcome of an
unethical action. What would be the consequences of an unethical action is not very clear, not
always the same and not universally accepted. An unethical action may have many
repercussions and widespread consequences.
Some Laws have nothing to do with morality because they do not involve serious matters.
These include parking laws, dress codes and other laws covering similar matters.
Other laws may even violate our moral standards so that they are actually contrary to morality.
In USA pre-Civil War slavery laws, for example, required the Whites to treat slaves like
property, and the laws of Nazi Germany required anti-Semitic behaviour. The laws of Saudi
Arabia require that businesses discriminate against women and Jews in ways that most people
would say are clearly immoral. Thus, it is clear that ethics is not simply following the law.
This does not mean, of course, that ethics has nothing to do with following the law. Our moral
standards' are sometimes incorporated into the law, when enough of us feel that a moral
standard should be enforced by the pressures of a legal system. In contrast, laws are
sometimes criticized and eliminated when it becomes clear that they blatantly violate our
moral standards. Morality, therefore, has shaped and influenced many of the laws we have.
Moreover, most ethicists agree that all citizens have a moral obligation to obey the law so long
as the law does not require clearly unjust behaviour. This means that, in most cases, it is
immoral to break the law. Tragically, the obligation to obey the law can create terrible conflicts
when the law requires something that the business person believes is immoral. In such cases, a
person will be faced with a conflict between the obligation to obey the law and the obligation to
obey his or her conscience.
Relationship between Ethics & Law
Perhaps the easiest way to think about the relationship between business ethics and the law is in
terms of a Venn diagram. If we think of the law as reflecting society's minimum norms and
standards of business conduct, we can see that there is a great deal of overlap between what's
legal and what's ethical. Generally speaking, most people believe that law-abiding behaviour is
also ethical behaviour. But there are many standards of conduct agreed upon by society that are

21. not codified in law. For example, conflicts of nterests may not be illegal, but they are generally
considered to be unethical in our society and are commonly covered in codes of ethics. So, the
domain of ethics includes the legal domain but extends beyond it to include the ethical standards
and issues that the law does not address.
Finally there are times when you might encounter a law that you believe is unethical. For
example, not so long ago racial discrimination was legal in the United States. Therefore, the
legal and ethical domains certainly overlap to a large degree, but not completely. It is
conceivable to think of something as being legal and unethical, or unethical but not covered
by law.
Law Ethics
Over lap areas
To Sum Up.
1. An action can be illegal, but morally right. For eg. Helping a Jewish family to hide from
the Nazis was against the German law in 1939, but it would have been a morally
admirable thing to have done. Of course, the Nazi regime was vicious and evil.
2. An action that is legal can be morally wrong. For example, it may have been perfectly

22. legal for the chairman of a profitable company to lay off 125 workers and use three-
quarters of the money saved to boost his pay and that of the company’s other top
managers, but the morality of his doing so is open to debate.
3. All legal provisions may not be ethical and some are , at best, debatable.
4. All ethical actions are not governed by laws.
5. Not all laws have moral choice.
6. Laws are specific concepts, ethics is abstract.
7. Laws represent the minimum standards of human behaviour, ethical behaviour goes
much beyond the legal expectations.
8. Ethics has a positive aspect, whereas the law is more concerned about negative
behaviour.
9. Ethics precedes action, the law follows it.
10. The law is universally accepted within its jurisdiction and is enforceable, whereas ethics
is not always universally accepted and is not enforceable by force or pressure.
11. Law prescribes punishments for illegal acts, whereas ethics do not clearly prescribe
specific punishments for an unethical act, since the outcome of an unethical act is not
always clear.
Thus we may state that laws provide the human society with the minimum standards of
behaviour, but laws do not duplicate the value system of the society. Laws are not replica of
the ethical system, nor are laws an expression of the moral standards of the society. Laws
merely provide us with the guidelines of behaviour for a disciplined, peaceful and safe society.