business ethics
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Business EthicsTRANSCRIPT
B U S SSENI
IHT C SE
Shikha Sota
Are we Ethical?
Have you ever cheated in exams/ tests?
Have you ever copied assignments from you classmates/ colleagues?
Have you ever borrowed something and then forgot to return?
Have you ever talked during class while teacher is delivering lecture?
Have you ever accessed ideas from the internet and told that it was yours?
Have you ever reached late to college and lied that your car broke down?
Have you ever lied to your parents that you were doing combined studies, but actually you were busy partying?
Have you ever lied to your girlfriend/ boyfriend that you are going away while you busy dating another girl/boy?
Have you ever bribed traffic policeman to avoid challan?
Have you ever bribed the watchman to enter your girlfriend’s hostel?
Have you ever crossed red signal at the traffic lights?
Ethics in business
An employee surfs the Internet shopping for personal items on company time.
A plant manager decides to ship product to a customer even though he knows the parts have a quality problem because the problem
doesn't affect part function and the customer probably won't
notice.
An employee spends several hours a week on company’s phone talking with her children, family and friends.
A manager shares important company information with a competitor for her potential gain.
An employee takes office supplies home to stock his home office.
An accountant tells a supplier that their "check is in the mail" when he knows he hasn't written the check.
"Ethics has to do with what my
feelings tell me is right or wrong."
Ethics
Hard to pin down one universal definition
"Ethics has to do with my
religious beliefs."
"Ethics consists of the standards of behavior our
society accepts."
Business Ethics? What are they?
Being honest and responsible
Being unprejudiced
Business Ethics? What are they?
Doing what is fair to all concerned
• Being fair & objective
Business Ethics? What are they?
Business Ethics? What are they?
Defining a specific guide to behavior
Enhancing employee
morale
Its important…
Its important…
Reducing employee turnover
Inculcating loyalty in employees
Its important…
Aspirations of business
Responsibility towards employees, community, shareholder & nation
Employee conduct & their rights
Transparency within & outside the organization
Code of Ethics
Purpose of code
Goals & objectives of organization
Universally acceptable
Creating code of ethics
Clear, non ambiguous
Written in language, understood by all
Contact information for clarifications
Must describe procedure in case of non compliance
Presentation
Training material
Website
Company newsletter
Business presentations
Communication
Loss of customers—especially those who value ethics
Loss of employees
Loss of reputation
Cost of not being ethical
Competition
Organizational Goals
Government policies
Pressure from above
Why companies are not fair?
Ambiguous situations
Comparative conceptual disparity
Personal benefits
To reduce expenses
Why companies are not fair?
Legislation
Employee concern
Public perception
Media and NGO interest
Why companies are not fair?
Objectivity
Fairnes
s
Social
responsibility
Inte
grit
y
Respect
Honesty
Nondiscriminatio
n
Governance rules & Regulations
Business Culture
Management Style
Rapid growth of private sector
Factors driving India’s unique business practices
Fusion of Business Ethics
Borderless Flow Of Professionals
Rise of Glocal Governance
Emergence of Compassionate Capitalism
Implications for business ethics in a global world
Lack of management support
Company politics
Insufficient resources
Obstacles in business conduct
Personal financial worries
Little or no recognition of achievements
Need to meet sales, budget or profit goals
Obstacles in business conduct
Satyam Scam
Tighter rules for accounting and corporate governance
Appointment of independent directors by selection committees
Perfecting the corporate law
Prevention
Greater oversight from regulatory and government authorities
Fasten court procedures
Giving SEBI more rights
Prevention
It always pays to be ethical..