This document discusses various ethical practices in business management including being transparent with consumers, protecting privacy, committing to sustainability, and responding to concerns. It also discusses ethical practices in advertising, finance, and taxation. Specifically, it describes five common practices for tax evasion and examples of lack of transparency, false financial statements, speculation, insider trading, compensation/benefits, and workplace harassment. Throughout it provides examples and definitions for key terms.

1. UNIT 4
Ethical Practices in Business Management
PROF. KANCHAN KUMARI

2. Ethical practices in marketing
• Be Transparent. ...
• Protect Consumer Data And Privacy. ...
• Commit To Sustainability And Human Rights. ...
• Respond Meaningfully To Consumer Concerns. ...
• Maximise Benefits And Minimise Risks. ...
• Don't Exaggerate. ...
• Don't Make False Comparisons. ...
• Don't Make Unverified Claims.

3. Ethical practices in Advertising
 Ethical advertising means doing the right thing, being honest with
what you are advertising, and being true to your brand purpose while
looking for those shared values and delivering those product truths
 Example-Take responsibility for your actions. Act consistently with
relevant regulation and law. Handle personal data and information in a
professional manner. Demonstrate honesty in dealings with others.

4. Ethical practices Finance-Tax Evasion
 Tax evasion is seen as a violation of the accepted moral norms and values
for social, financial, and administrative behavior. The moral nature of these
values refers to what is judged as right, just, or good (conduct), because
the absence of ethics implies corruption.

5. Five practices followed by tax payers for tax
evasion and tax avoidance
• Concealment of Income. An attempt to conceal income from the Income
Tax Department is a very common method of evading taxes. ...
• Not Filing ITR
• Incorrect Income Tax Returns
• Forged Documents
• Offshore Bank Accounts
• Underreporting or Misreporting of Income
• Other Penalties

6. Ethics practices lack of transparency in
business
 Team members who feel uninformed about the business are less likely to
trust their manager and executives. A lack of transparency fosters an “us
vs. them” culture where team members don't feel safe about discussing
workplace and personal issues. They may quit instead of bringing their job
concerns to management.
 EXAMPLE-

7. Examples of transparency in the
workplace
• Make transparency part of company policy. ...
• Confront difficult situations. ...
• Hold an “ask me anything” session. ...
• Provide access to information. ...
• Always have a “why” ...
• Involve people in decision making. ...
• Share learnings, successes, and failures. ...
• Key weekly updates.

8. Preparing False Financial Statement
 Financial statement fraud is just what it sounds like – falsifying balance
sheets, income statements and cash-flow statements to fool the people
who read them. The fraudster may be out for personal gain, or is trying to
keep the business afloat. False financial statements are one of the many
varieties of accounting fraud. They can involve multiple crimes, including
securities fraud and perjury.

9. Common Tricks in Committing Fraud
•Ship items to nonexistent customers,
and then credit the accounts for a sale.
•Report nonexistent revenue from a sale,
for example by prebilling a regular customer for his next purchase.
•Postpone reporting expenditures to a later billing period so current earnings look healthier.
•Falsify the value of an asset.
If, say, a stock investment loses value, the company is supposed to reflect that on the balance sheet.
Not doing that makes the company's assets look more valuable than they are.

10. Speculation and Insider Trading
 speculation or speculative trading, refers to the act of conducting a
financial transaction that has substantial risk of losing value but also
holds the expectation of a significant gain or other major value
 Insider trading is the term used to describe the illegal act in which
someone relies on market-moving, nonpublic information to decide
whether to buy or sell a financial asset.

11. example of speculation in foreign exchange
market
 An investor who invests in foreign currency buys some currency in the
hopes of selling it at an appreciated rate when market fluctuations
happen. This type of speculation is known as currency speculation
 Some currency speculation is necessary to facilitate international trade. For
example “a car manufacturer in Germany which exports cars to the
United States”. As the U.S. importer of German cars is paying her bill in
U.S. dollars, the German exporter receives U.S. currency.

12. Compensation & its Benefits
 Compensation and Benefits in HRM refer to the salary, monetary, and as
well as non-monetary privileges provided to the employees at the
workplace by the organization. It is a primary tool of the Human Resource
Managers to bring out the best potential of the employees in their work. It
works in a way – ‘Better is the compensation & benefits, better is the
performance and retention!’ From internal motivation to the higher level of
productivity, Compensation and Benefits does it all!
 According to Dale Yoder, – ‘Compensation and benefits simply mean
paying people for completing the task allocated to them.’
 According to Cascio, – ‘The term compensation signifies paying the direct
cash amounts or an indirect amount via providing benefits to employees
to strive for higher productivity in the organization.’

13. Business Ethics & HR Benifits
 The focus in business ethics is on awareness of organizational values,
guidelines and codes, and behaving within those boundaries when
faced with dilemmas in business or professional work. HR
professionals are in a strategic position to ensure that their organizations
maintain cultures that demand ethical behaviour.

14. What are the ethical situations in HR?
 1) Employment Issues,
 (2) Cash and Incentive Plans,
 (3) Employees Discriminations,
 (4) Performance Appraisal,
 (5) Privacy,
 (6) Safety and Health,
 (7) Restructuring

15. Work Place Harassment of Employee
 Harassment of the hostile work atmosphere occurs when speech or
action is so serious and omnipresent that it creates an unpleasant or
humiliating atmosphere or circumstance that adversely affects the
performance of a person's job
 Example: An employee can be subjected to personal harassment by
inappropriate comments, offensive jokes, personal humiliation,
critical remarks, ostracising behaviours, intimidation tactics, etc.
 Unethical behavior in the workforce is not restricted to overt acts. It
includes workers acting out and aggressively confronting supervisors,
supervisees, and colleagues, and it includes more subtle behaviors that
compromise people, productivity, and organizations.

16. THANK YOU !
PROF. KANCHAN KUMARI