UNIT 1

Introduction

1.1 Introduction ; Definition & nature Business ethics,

Characteristics, Ethical theories; Causes of unethical behavior ;
Ethical abuses; Work ethics; Code of conduct; Public good.

Introduction

Ethics is a subject of social science that is related with moral principles

and social values. 'Business Ethics' can be termed as a study of proper
business policies and practices regarding potentially controversial
issues, such as corporate governance, insider trading, bribery,
discrimination, corporate social responsibility, and fiduciary
responsibilities.

Businesses must abide by some basic principles. It should provide quality

goods and services at reasonable prices to their consumers. It must also
avoid adulteration, misleading advertisements, and other unfair
malpractices.

A business must also perform other duties such as distributing fair wages,
providing good working conditions, not exploiting the workers,
encouraging competition, etc.

Definition & nature Business ethics

There are many definitions of business ethics, but the ones given by
Andrew Crane and Raymond C. Baumhart are considered the most
appropriate ones.

According to Crane, "Business ethics is the study of business situations,

activities, and decisions where issues of right and wrong are addressed."

Baumhart defines, "The ethics of business is the ethics of responsibility.

The business man must promise that he will not harm knowingly."
Nature-

• Moral prices – because business ethics are completely focused on

their morality factor, in today’s world, community organization plays an
important role in society and its actions are directly affected in the
welfare and welfare of society.

The business condition of the business and the product conditions that are
being produced affects society so that people can discuss the nature of
business ethics.

Therefore, it is compulsory to remember, business community self-

employed, self-inspection, self-control, self-sacrifice, and the moral
values of society and moral society.

2. Related words - Ethics is a term of relationship with the concept of

morality and immorality. It is separate from a person, from society to
society, from culture to culture, country to country is different. It helps
to define moral and immoral words of business ethics.

3. Society’s interests - In these characteristics of business ethics,

business ethics says that the business should first be nice for society and
community and then social welfare is also a business objective.

There are various social obligations in order to protect the departments

of an important institution of business and all formal or informal groups
that contribute to the improvement of business or business-related
directly or indirectly with organizations like employees, shareholders,
consumers, and their stakeholders.

Business ethics help to determine the conditions and standards for

understanding social affection or business relationships. Describes what
it expects from community or society business and what the concept gives
about the business.

4. Structure - Business is an organization that includes various social

and economic rules and regulations. The business is always trying to limit
its activities (formal or informal) within the range of social, cultural,
regional, religious, and economic environments.

Business ethics is a kind of code of conduct that covers a person’s criteria

and behavior guidelines, such as how to behave yourself, how to follow
the criteria, how to improve yourself, etc.

It protects customers and other social members like shareholders,

society, and employees to explain the nature of business ethics.

5. Not against profit-making- Business ethics is not against making a

real or fair profit. However, it is against the profits that acquire fraud and
exploit their customers, employees, and investors. It supports business
activities but not through fair or fair media and illegal activity.

6. Willingness Requirement - Business ethics can not be compelled

by law and other aspects. It must be accepted by any businessman as self-
love. It should come from the inner part of the soul. Traders follow the
guidelines of moral trade activities and not by any law.

Characteristics:

There are eight major features of business ethics:

1. Code of Conduct: Business ethics is actually a form of codes of

conduct. It lets us know what to do and what not to do.
Businesses must follow this code of conduct.
2. Based on Moral and Social Values: Business ethics is a subject
that is based on moral and social values. It offers some moral and
social principles (rules) for conducting a business.
3. Protection to Social Groups: Business ethics protect various social
groups including consumers, employees, small businesspersons,
government, shareholders, creditors, etc.
4. Offers a Basic Framework: Business ethics is the basic framework
for doing business properly. It constructs the social, cultural, legal,
economic, and other limits in which a business must operate.
 5. Voluntary: Business ethics is meant to be voluntary. It should be
self-practiced and must not be enforced by law.
6. Requires Education & Guidance: Businessmen should get proper
education and guidance about business ethics. Trade Associations
and Chambers of Commerce should be active enough in this matter.
7. Relative Term: Business ethics is a relative term. It changes from
one business to another and from one country to another.
8. New Concept: Business ethics is a relatively newer concept.
Developed countries have more exposure to business ethics, while
poor and developing countries are relatively backward in applying
the principles of business ethics.

Ethical theories

There are generally three philosophical approaches or three ethical

theories:

1. Utilitarian

2. Deontological

3. Virtue Theory

• Utilitarian (Consequential/ Teleological):

The first ethical system in normative ethics, utilitarianism, is often equated

with the concept of ‘the greatest good for the greatest number’. The idea
behind it is that ethical decisions are made on the basis of the
consequences of the action, which is why it is also sometimes called
consequentialism. The attraction of this ethical perspective may lie in the
fact that it appears to be a way to weigh out the impact of behavior and
determine the greatest good for the greatest number. While this idea
initially may seem appealing, particularly with a field that has a core duty
to the public, it does not provide a solid ethical framework for decision-
making. There are three main concerns that seem to arise when public
relations professionals rely on utilitarian ethics to make decisions.
First, rather than looking at the choice or action itself, decision-makers
are forced to guess the potential outcomes of their choice in order to
determine what is ethical. Grunig believes this is a faulty line of reasoning
when he suggested that: “We believe, in contrast, the public relations
should be based on a worldview that incorporates ethics into the process
of public relations rather than on a view that debates the ethics of its
outcomes.” In other words, ethics should be about the decision-making
process, not just the outcome, which can’t be guaranteed.

Second, utilitarian ethics also “presents questions of conflict with regard

to which segment of society should be considered most important” in
weighing the “good” or outcome. In other words, if a solution drastically
harms a minority group, would it be ethical if the majority benefited from
that decision? This seems to contradict the goal of public relations to build
mutually beneficial relationships, regardless of the number of people in
a particular stakeholder group.

The third objection is that it is not always possible to predict the outcome
of an action. Bowen points out that “consequences are too unpredictable
to be an accurate measure of the ethics of a situations.” In other words,
consequences of actions can be highly volatile or impossible, even, to
predict. Using outcomes as a measurement of ethics will not, therefore,
provide an accurate way for professionals to measure whether decisions
are ethical. Professionals must be able to evaluate decisions and choices
with concrete ethical guidelines instead of hoping that certain outcomes
will result in them having made an ethical choice. Many scholars in public
relations identify these issues, as well as others, as evidence that
utilitarianism, sometimes called consequentialism due the concept
relying on the consequence of a decision, is not as strong of a fit for public
relations professional ethics.

2. Deontological:

The second prominent concept, deontological ethics, is associated with

the father of modern deontology, Immanuel Kant. He was known for the
‘Categorical Imperative’ that looks for transcendent principles that apply
to all humans. The idea is that “human beings should be treated with
dignity and respect because they have rights.” Put another way, it could
be argued that in deontological ethics “people have a duty to respect
other people’s rights and treat them accordingly.” The core concept
behind this is that there are objective obligations, or duties, that are
required of all people. When faced with an ethical situation, then, the
process is simply one of identifying one’s duty and making the
appropriate decision. There are few challenges to this approach:

1) Conflicts that arise when there is not an agreement about the

principles involved in the decision.

2) The implications of making a ‘right’ choice that has bad consequences

3) What decisions should be made when duties conflict. These challenges

should be considered when relying on this as an ethical system.

However, despite these concerns, many have found that deontology

provides the strongest model for applied public relations ethics. Bowen,
for example, suggests that “deontology is based on the moral autonomy
of the individual, similar to the autonomy and freedom from
encroachment that public relations seeks to be considered excellent.
That ideological consistency gives the theory posed here a solid
theoretical foundation with the practice of public relations as well as a
normative theory function.” Similarly, Fitzpatrick & Gauthier suggest,
“practitioners need some basis on which to judge the rightness of the
decisions they make everyday. They need ethical principles derived
from the fundamental values that define their work as a public relations
professional.” A key thought in this concept is the assumption that there
needs to be some objective morals that professionals rely on in order to
determine ethical behavior.
3. Virtue Ethics:

The third and growing area of philosophical reasoning with ethics is

known as virtue ethics. It has gained more attention in public relations
scholarship in recent years. This philosophy stems from Aristotle and is
based on the virtues of the person making a decision. The consideration
in virtue ethics is essentially “what makes a good person,” or, for the
purpose of this discussion, “what makes a good public relations
professional?” Virtue ethics require the decision-maker to understand
what virtues are good for public relations and then decisions are made in
light of those particular virtues. For example, if the virtue of honesty is
most important for a good public relations professional, then all decisions
should be made ethically to ensure honesty is preserved. While this
theory is growing in popularity, there are several objections that can be
made. First, in terms of the public relations profession, the focus on
virtues of the professional themselves seems to miss the importance and
role of obligations to clients and publics. The industry is not simply about
what public relations people themselves, but ultimately the impact they
have on the society. Additionally, it also can face the same obstacle as
deontological ethics when having conflicting virtues. There may be a
conflict if there is a virtue of loyalty to a client and honesty to the public.

Causes of unethical behavior

The Civil Service Commission of Philippines defined an

unethical behaviour as any behaviour prohibited by law. An
unethical behaviour would therefore be defined as one that is not
morally honourable or one that is prohibited by the law.
Many behaviours will fall in the classification including corruption, mail
and wire fraud, discrimination and harassment, insider trading, conflicts
of interest, improper use of company assets, bribery

• Misusing Company Time:

One of the most regularly revealed “bad behaviours” in the workplace

is the misuse of company time. This category includes knowing that one
of your colleagues is directing personal business on company time, staff
appearing late, extra breaks or fake timesheets. These
negative behaviour patterns can rapidly spread to different workers. It
can also cultivate hatred amongst colleagues, severely influencing
morale and efficiency.

2. Unethical Leadership:

Having a personal issue with your boss or manager is a certain thing, yet
reporting to a person who is acting dishonestly is another. This may come
in a clear form, such as manipulating numbers in a report or sending
company money on improper activities; nonetheless, it can also happen
more subtly, through bullying, accepting inadequate gifts from suppliers,
or requesting that you avoid a standard system just once. With studies
demonstrating that managers are responsible for 60 percent of workplace
wrongdoing, the abuse of leadership authority is a disastrous reality.

3. Lying to Employees:

The quickest way to lose the trust of your employees is to lie to them, but
managers do it constantly. One out of every five workers report that their
supervisor or manager has lied to them within the previous year.

4. Harassment and Discrimination:

Laws require associations to be equivalent to business opportunity

employers. Organizations must select a various workplace, authorize
policies and training that help an equivalent open-door program, and
encourage a situation that is respectful of a wide range of people.
Unfortunately, there are still numerous people whose practices break
with EEOC rules and regulations. When harassment and discrimination of
employees based on ethnicity, race, gender, handicap or age occur, has
a moral line been crossed as well as a legitimate one also. Most
companies are attentive to maintain a strategic distance from the costly
legal and public implications of harassment and discrimination, so you
may experience this ethical problem in more delicate ways, from
apparently “harmless” offensive jokes by a manager to a more
unavoidable “group think” mindset that can be a symptom of a toxic
culture. This could be a group mindset toward an “other” group. Your
best reaction is to keep up your qualities and repel such intolerant, illegal
or unethical group standards by offering an option, inclusive aspect as the
best decision for the group and the company

5. Violating Company Internet Policy:

Cyber-loafers and Cyber-shackers are terms used to recognize people

who surf the web when they ought to work. It’s a huge, multi-billion-dollar
issue for organizations. Every day at least 64 percent of employers visit
sites that have nothing to do with their work.

6. Pressure to Succeed:

Employees may choose to act unethically based on unrealistic

expectations to succeed. For example, a salesperson may make false
claims to secure a deal to meet their quota.

Ethical abuses:

Corporate ethical/legal abuses include:

• Creative accounting
• Earnings management
• Misleading financial analysis
• Insider trading
• Securities fraud
• Bribery/kickbacks
• Facilitation payments

Work ethics:

Work ethic is a value based on hard work and diligence. It is also a belief
in the moral benefit of work and its ability to enhance character.
Workers exhibiting a good work ethic in theory would be selected for
better positions, more responsibility and ultimately promotion. Workers
who fail to exhibit a good work ethic may be regarded as failing to
provide fair value for the wage the employer is paying them and should
not be promoted or placed in positions of greater responsibility.

Five Characteristics of a Good Work Ethics

Reliability - Reliability goes hand in hand with a good work ethic. If

individuals with a good work ethic say they are going to attend a work
function or arrive at a certain time, they do, as they value punctuality.
Individuals with a strong work ethic often want to appear dependable,
showing their employers that they are workers to whom they can turn.
Because of this, they put effort into portraying -- and proving -- this
dependability by being reliable and performing consistently.

Dedication - Those with a good work ethic are dedicated to their jobs
and will do anything they can to ensure that they perform well. Often this
dedication leads them to change jobs less frequently, as they become
committed to the positions in which they work and are not eager to
abandon these posts. They also often put in extra hours beyond what is
expected, making it easy for their employers to see that they are workers
who go beyond the rest of the workforce and truly dedicate themselves
to their positions.

Productivity - Because they work at a consistently fast pace, individuals

with a good work ethic are often highly productive. They commonly get
large amounts of work done more quickly than others who lack their work
ethic, as they don't quit until they've completed the tasks with which they
were presented. This high level of productivity is also due, at least in part,
to the fact that these individuals want to appear to be strong workers. The
more productive they are, the more beneficial to the company they
appear to those managing them.

Cooperation - Cooperative work can be highly beneficial in the

business environment, something that individuals with a strong work
ethic know well. Because they recognize the usefulness of cooperative
practices - - such as teamwork -- they often put an extensive amount of
effort into working well with others. These individuals commonly respect
their bosses enough to work with any individuals with whom they are
paired in a productive and polite manner, even if they do not enjoy
working with the individuals in question.

Character - Those with a good work ethic often also possess generally
strong character. This means they are self-disciplined, pushing
themselves to complete work tasks instead of requiring others to
intervene. They are also often very honest and trustworthy, as they view
these traits as befitting the high-quality employees they seek to become.
To demonstrate their strong character, these workers embody these
positive traits daily, likely distinguishing themselves from the rest

Code of conduct:

Code of conduct or what is popularly known as Code of Business Conduct

contains standards of business conduct that must guide actions of the
Board and senior management of the Company. The Code may include
the following:

(a) Company Values.

(b) Avoidance of conflict of interest.

(c) Accurate and timely disclosure in reports and documents that the
company files before Government agencies, as well as in Company's
other communications.

(d) Compliance of applicable laws, rules and regulations including

Insider Trading Regulations.

(e) Maintaining confidentiality of Company affairs.

(f) Non-competition with Company and maintaining fair dealings with

the Company.
(g) Standards of business conduct for Company's customers,
communities, suppliers, shareholders, competitors, employees.

(h) Prohibition of Directors and senior management from taking

corporate opportunities for themselves or their families.

(i) Review of the adequacy of the Code annually by the Board.

(j) No authority of waiver of the Code for anyone should be given

The Code of Conduct for each Company summarises its philosophy of

doing business.

Although the exact details of this code are a matter of discretion, the
following principles have been found to occur in most of the companies:

(a) Use of company's assets;

(b) Avoidance of actions involving conflict of interest;

(c) Avoidance of compromising on commercial relationship;

(d) Avoidance of unlawful agreements;

(e) Avoidance of offering or receiving monetary or other inducements;

(f) Maintenance of confidentiality;

(g) Collection of information from legitimate sources only;

(h) Safety at workplace;

(i) Maintaining and Managing Records;

(j) Free and Fair competition;

(k) Disciplinary actions.

To create a code of ethics, an organization must define its most important
guiding values, formulate behavioral standards to illustrate the
application of those values to the roles and responsibilities of the persons
affected, review the existing procedures for guidance and direction as to
how those values and standards are typically applied, and establish the
systems and processes to ensure that the code is implemented and
effective. Codes of ethics are not easily created from boilerplate. Ideally,
the development of a code will be a process in which Boards and senior
management actively debate and decide core values, roles,
responsibilities, expectations, and behavioral standards.

Model Code of Business Conduct & Ethics

Commitment to ethical professional conduct is a MUST for every

employee of the company in all of its businesses/units/subsidiaries. This
code, consisting of imperatives formulated as statements of personal
responsibility, identifies the elements of such a commitment. It contains
many, but not all issues, employees are likely to face.

The code is intended to serve as a basis for ethical decision-making in the

conduct of professional work. It may also serve as a basis for judging the
merit of a formal complaint pertaining to violation of professional ethical
standards.

It is understood that some words and phrases in a code of ethics and

conduct document are subject to varying interpretations and that any
ethical principle may conflict with other ethical principles in specific
situations. Questions related to ethical conflicts can best be answered by
thoughtful consideration of fundamental principles rather than reliance on
detailed regulations. In case of conflict, the decision of the Board shall be
final.

Public good-

• Attracting and retaining talent

People aspire to join organizations that have high ethical values.
Companies are able to attract the best talent and an ethical company that
is dedicated to taking care of its employees will be rewarded with
employees being equally dedicated in taking care of the organization.
The ethical climate matter to the employees. Ethical organizations create
an environment that is trustworthy, making employees willing to rely,
take decisions and act on the decisions and actions of the co-employees.
In such a work environment, employees can expect to be treated with
respect and consideration for their colleagues and superiors. It cultivates
strong teamwork and productivity and support employee growth.
Retaining talented people is as big a challenge as getting them in the first
place. Work is a means to an end for them, not an end in itself. The
relationship they have with their employer must be a mutual, win-win one,
in which their loyalty should not be taken for granted. Talented people
will invest their energy and talent only in organizations with values and
beliefs that match their own. In order to achieve this match, managers
need to build cultures, compensation and benefits packages, and career
paths that reflect and foster certain shared values and beliefs.

2. Investor Loyalty

Investors are concerned about ethics, social responsibility and reputation

of the company in which they invest. Investors are becoming more and
more aware that an ethical climate provides a foundation for efficiency,
productivity and profits. Relationship with any stakeholder, including
investors, based on dependability, trust and commitment results in
sustained loyalty.

3. Customer satisfaction

Customer satisfaction is a vital factor in successful business strategy.

Repeat purchases/orders and enduring relationship of mutual respect is
essential for the success of the company. The name of a company should
evoke trust and respect among customers for enduring success. This is
achieved by a company that adopts ethical practices. When a company
because of its belief in high ethics is perceived as such, any crisis or
mishaps along the way is tolerated by the customers as a minor
aberration. Such companies are also guided by their ethics to survive a
critical situation. Preferred values are identified ensuring that
organizational behaviors are aligned with those values. An organization
with a strong ethical environment places its customers' interests as
foremost. Ethical conduct towards customers builds a strong competitive
position. It promotes a strong public image.

4. Regulators

Business should act ethically not only to benefit itself and its reputation
but also all the key stakeholders. Regulators eye companies functioning
ethically as responsible citizens. The regulator need not always monitor
the functioning of the ethically sound company. The company earns
profits and reputational gains if it acts within the confines of business
ethics.

Key takeaways-

• Business ethics is a form of applied ethics or professional ethics

that examines ethical principles and moral or ethical problems that can
arise in a business environment.
• Business ethics provide basic guidelines and parameters towards
most appropriate perfections in business scenario.
• The Civil Service Commission of Philippines defined an
unethical behaviour as any behaviour prohibited by law.

UNIT 2

Management of Ethics

2.1 Management of Ethics – Ethics analysis [ Hosmer model ];

Ethical dilemma; Ethics in practice- ethics for managers; Role and
function of ethical managers- the Comparative
ethical behaviour of managers; Code of ethics; Competitiveness,
 organizational size, profitability, and ethics; Cost of ethics in
Corporate ethics evaluation.

Management of Ethics

Organizational ethics is the ethics of an organization, and it is how an

organization responds to an internal or external stimulus. Organizational
ethics is interdependent with the organizational culture. Although, it is
akin to both organizational behavior (OB) and industrial and
organizational psychology as well as business ethics on the micro and
macro levels, organizational ethics is neither OB or I/O psychology, nor
is it solely business ethics (which includes corporate governance and
corporate ethics). Organizational ethics express the values of an
organization to its employees and/or other entities irrespective of
governmental and/or regulatory laws.

The Foreign Corrupt Practices Act (FCPA) restricts the United States
business firms from engaging in bribery and other illegal practices
internationally. There are laws that have the same type of prohibition for
European companies which create a disadvantage competitively for both
European and U.S. firms. Such laws are not a restricting element to
organizations that have highly elevated ethical behavior as part of
their values.Organizations that lack ethical practices as a mandatory
basis of their business structure and corporate culture, have commonly
been found to fail due to the absence of business ethics. Corporate
downfalls would include, but are not limited to, the recent Enron and
WorldCom scandals, are two primary examples of unethical business
practices concerning questionable accounting transactions.

Employees,the community, and corresponding industries. Ethical

business practices of organizations has resulted in a solid financial
bottom-line. This has been seen through greater sales and increased
revenue by companies retaining talented personnel and attracting newly
skilled employees. More importantly, an ethical organization will have
the ability to retain employees that are experienced and knowledgeable
(generally referred to as human capital). This human capital results in less
employee turnover, less training time for new employees, and greater
output regarding services (or production of goods)

Ethics Analysis (Hosmer Model)

The view is that a manager should always act in accordance with either a
single principle of behavior or a single statement of belief that is "right"
and "proper" and "just" in and by itself. This is "moral reasoning":
logically working from a first principle through to a decision on the duties
we owe to others.

7 HOSMER’S PRINCIPLE OF ETHICAL DECISION MAKING

1) Principle of Long-term self-interest

Never take any action not in your organization's long-term self-interest

2) Principle of Personal Virtue

Never do anything that is not honest, open, and truthful and that you would
never be glad to see reported in the newspapers or on TV

3) Principle of Religious injunction

Never take any action that is not kind and that does not build a sense of
community.
4) Principle of Government Requirements

Never take any action that violates the law, for the law represents the
minimal moral standard

5) Principle of Utilitarian benefit

Never take any action that does not result in greater good for society

6) Principle of Individual rights

Never take any actions that infringes on others agreed-upon rights

7) Principle of Distributive Justice

Never take any action that harms the least among us: the poor, the
uneducated, the unemployed

Ethical dilemma:

An ethical dilemma (moral dilemma) is a problem in the decision-making

process between two possible options, neither of which is absolutely
acceptable from an ethical perspective. Ethical dilemmas can be solved
in various ways, for example by showing that the claimed situation is only
apparent and does not really exist, or that the solution to the ethical
dilemma involves choosing the greater good and lesser evil, or that the
whole framing of the problem omits creative alternatives that situational
ethics or situated ethics must apply because the case cannot be removed
from context and still be understood.

A popular ethical conflict is that between an imperative or injunction not

to steal and one to care for a family that you cannot afford to feed without
stolen money. Debates on this often revolve around the availability of
alternate means of income or support such as a social safety net, charity,
etc. The debate is in its starkest form when framed as stealing food. Under
an ethical system in which stealing is always wrong and letting one's
family die from starvation is always wrong, a person in such a situation
would be forced to commit one wrong to avoid committing another, and
be in constant conflict with those whose view of the acts varied

However, there are no legitimate ethical systems in which stealing is

more wrong than letting one's family die. Ethical systems do in fact allow
for, and sometimes outline, trade-offs or priorities in decisions. Resolving
ethical dilemmas is rarely simple or clear cut and very often involves
revisiting similar dilemmas that recur within societies.

How to solve an ethical dilemma

The biggest challenge of an ethical dilemma is that it does not offer a

solution that would comply with ethical norms. Throughout the history of
humanity, people have faced such dilemmas and philosophers aimed and
worked to find solution

The following approaches to solve an ethical dilemma were deducted:

1) Refute the paradox (dilemma): The situation must be

carefully analysed. In some cases, the existence of the dilemma can be
logically refuted.

2) Value theory approach: Choose the alternative that offers the greater
good or the lesser evil.

3) Find alternative solutions: In some cases, the problem can be

reconsidered and new alternative solutions may arise.

Ethics in practice- ethics for managers

1) Human dignity, human rights and justice, which refers to the duty to
promote universal respect for the human person. In the context of
fisheries, this principle relates, for example, to fishers' self-
determination, access to fishing resources and the right to food. It is best
represented by a rights-based approach in ethics that emphasizes the
protection of the personal domain of each individual. It may require,
however, the establishment of individual or community rights, the exact
nature of which will depend on local conditions

2) Beneficence, which concerns human welfare, reducing the harms and

optimizing the benefits of social practices. In the context of fisheries, this
principle needs to be observed when the effects of policies and practices
upon the livelihoods of fishing communities are evaluated. The principle
relates to working conditions (safety on board), as well as food quality
and safety. The issue of genetically modified organisms should also be
addressed in this context (FAO, 2001b). This principle invites an ethical
approach to fisheries that puts consequences to general welfare in focus.

3) Cultural diversity, pluralism and tolerance, which relates to the need

to take different value systems into account within the limits of other moral
principles. The pressing moral issues in fisheries take different shapes
across different cultures, and it is an important moral demand that people
themselves define how their interests are best served in a particular
cultural setting. This principle squares well with dialogical ethics, which
stresses the actual participation of those concerned.

4) Solidarity, equity and cooperation, which refers to the importance of

collaborative action, sharing scientific and other forms of knowledge, and
non-discrimination. In the context of fisheries, this principle underpins
the moral imperative to eradicate poverty in developing countries and
ensure equity within fisheries and between sectors. It also requires
transparent policies and stresses the need to reduce the gap between
producers and consumers. This principle is relevant at the level of policy
as well as at the individual level of virtues and professional duties to
further trust and tolerance among stakeholders.

5) Responsibility for the biosphere, which concerns the interconnections

of all life forms and the protection of biodiversity. This principle stresses
that ecosystem well-being is a sine qua non condition of sustainable
fisheries providing for the needs of future generations, as well as for the
lives of those who currently rely on the natural environment and are
responsible for its use. This principle combines ethical reasoning based
on rights and on consequences for human welfare, as well as on individual
virtues and duties to respect the environment.

Ethics for manager:

In a broad construction of the ethical role of the manager, managing and

leading can be said to be inherently ethics-laden tasks because every
managerial decision affects either people or the natural environment in
some way—and those effects or impacts need to be taken into
consideration as decisions are made. A narrower construction of the
ethical role of the manager is that managers should serve only the
interests of the shareholder; that is, their sole ethical task is to meet the
fiduciary obligation to maximize shareholder wealth that is embedded in
the law, predominantly that of the United States, although this point of
view is increasingly accepted in other parts of the world. Even in this
narrow view, however, although not always recognized explicitly, ethics
are at the core of management practice.

The ethical role of managers is broadened beyond fiduciary

responsibility when consideration is given to the multiple stakeholders
who constitute the organization being managed and to nature, on which
human civilization depends for its survival. Business decisions affect both
stakeholders and nature; therefore, a logical conclusion is that those
decisions have ethical content inherently and that managerial decisions,
behaviors, and actions are therefore inherently ethical in nature.
Whenever there are impacts due to a decision, behavior, or action that a
leader or manager makes, there are ethical aspects to that decision or
situation. While some skeptics claim that business ethics is an oxymoron,
the reality is that decisions and actions have consequences, and that
reality implies some degree of ethics, high or low. Thus, ethics and the
managerial role cannot realistically be teased apart.
Role and function of ethical managers- the Comparative
ethical behaviour of managers

The role managers must play in implementing internal ethical standards

and aligning the organization with external standards-

• Make sure those who report to you have read and understand the
Code.
• Exercise appropriate supervision and oversight to ensure compliance
with the Code within your area of responsibility.
• Anticipate, prevent and detect compliance risks.
• Promptly report and address any compliance violations or
weaknesses, including taking appropriate disciplinary action.
• Enforce the Code and related policies and procedures consistently.
• Support your employees who, in good faith, raise issues or concerns.
• Ensure that none of your employees are retaliated against for making
good faith reports.
• Managers hold positions of authority that make them accountable for
the ethical conduct of those who report to them.
• Managers monitor the behavior of employees in accordance with the
organization’s expectations of appropriate behavior, and they have a
duty to respond quickly and appropriately to minimize the impact of
suspected ethical violations.
• Managers may also be subject to a particular code of professional
ethics, depending on their position and training. Fiduciary duty is an
example that applies to some managerial roles.

How to be an ethical manager-

Ethical managers are those who continuously practice the following

behaviors. Remaining committed to honesty, fairness, and excellent work
ethics. Valuing employees as individuals as well as workers. Knowing
that how objectives are met is just as important as meeting
objectives. Modeling ethical behavior like not shifting blame, not playing
favorites, and not trying to outdo the deeds of others. Looking out for
others, and always taking their interests and needs into account.
Managers and Ethics in Organizations-

Many managers find it difficult to speak about and sometimes even

recognize ethical issues, a difficulty that the management theorists James
Waters and Frederick Bird called the moral muteness of managers.
Recognizing that management is an inherently ethical task and that the
practices of the company embody a set of values or ethics, the
management scholar Jeanne Liedtka suggests that there does exist a set
of ethically based management practices that can help managers lead
their companies effectively and so that they are competitive. By
examining numerous organizational improvement initiatives, she
determined that they shared common practices and common sets of
values that could help an organization achieve its goals most effectively.

The ethics of effective and competitive business practices identified by

Jeanne Liedtka include creating a shared sense of meaning, vision, and
purpose that connect the employees to the organization and are
underpinned by valuing the community without subordinating the
individual and seeing the community's purpose as flowing from the
individuals involved. A second characteristic that ethical leadership can
provide is developing in employees a systems perspective, which is
linked to the post conventional stages of cognitive and moral reasoning
discussed above, so that a value of serving other community members
and related entities in the broader ecosystem emerges. Another theme is
that of emphasizing business processes rather than hierarchy and
structure, which is based on valuing work itself intrinsically and focusing
on both ends and means in decision making, not just the ends. Localized
decision making, particularly around work processes, provides a value of
responsibility for individual actions, and using information within the
system is supported by values of truth telling, integrity, and honesty, the
characteristics of moral persons, as well as transparency about and
access to needed information.
Code of ethics-

A code of ethics is a guide of principles designed to help professionals

conduct business honestly and with integrity.

Compliance-based codes of ethics

Compliance-based codes of ethics not only set guidelines for conduct but
also determine penalties for violations.

This type of code of ethics is based on clear-cut rules and well-defined

consequences rather than individual monitoring of personal behavior

Value Base Code of Ethics

A value-based code of ethics addresses a company's core value system.

Value-based ethical codes may require a greater degree of self-

regulation than compliance-based codes.

Competitiveness

Any organization, public or private, large or small, faces internal and

external uncertainties that affect its ability to achieve its objectives. The
effect of uncertainty on an organization's objectives is "risk." Risk
management, commonly known in the business community as enterprise
risk management (ERM), can provide for the structured and explicit
consideration of all forms of uncertainty in making any decision. The
overarching principle of ERM is that it must produce value for
the organization. It is the culture, processes and structures that is directed
towards taking advantage of potential opportunities while managing
potential adverse effects

Corporations face the task of managing their risk exposures while

remaining profitable and competitive at the same time. Managing risks is
not a new challenge, yet it may get overlooked due to several reasons.
The challenges and demands of contemporary markets, customer
expectations, regulatory authorities, employees and shareholders
present organizations with an interesting array of contradictions

Risk management can enhance the environment for identifying and

capitalizing on opportunities to create value and protect established
value. Efficient managers who undertake risk, use a variety of risk
management solutions that transcends through traditional insurance risk
transfer products.

Risk basically refers to the variations in the outcomes that could occur
over a specified period in a given situation. If only one outcome is
possible, the variation and hence the risk is zero. If many outcomes are
possible, the risk is not zero. The greater the variation, the greater the
risk. Risk may also be defined as the possibility that an event will occur
and adversely affect the achievement of the Company's objectives and
goals. A business risk is the threat that an event or action will adversely
affect an organization‘s ability to achieve its business objectives/targets.

Risks may be broadly classified under the following heads:

(a) Industry & Services Risks:

These risks can be broadly categorized as follows, namely:

1) Economic risks such as dependence on one product, one process, one

client, one industry, etc. in the short and long term.

2) Services risks

3) Market structure

→ Business dynamics

4) Competition risks affecting tariffs prices, costs, revenues and customer

preferences

5) Customer relations risks

6) Reputational risk

(b) Management and Operations Risks:

These risks relate broadly to the company's organisation and

management such as planning, monitoring, and reporting systems in the
day to day management process namely:

1) Risks to Property

2) Clear and well defined work processes

3) Changes in Technology/upgradation

4) R&D risks

5) Agency Network Risks

6) Personnel risks such as labour turnover risks involving replacement

risks, training risks, cost risks, skill risks etc. There are also unrest risks
due to strikes and lockouts. These risks affect the company's business and
earnings.

7) Environmental and Pollution Control regulations, etc.

8) Locational benefits near metros, railway stations, ports, cities, etc.

(c) Market Risks:

These risks relate to market conditions namely:

1) Raw material rates

2) Quantities, quality, suppliers, lead time, interest rates risks and forex
risks namely, fluctuation risks and interest rate risk in respect of foreign
exchange transactions.
(d) Political Risks:

These risks relate to political uncertainties namely:

1) Elections

2) War risks

3) Country/Area risks

4) Insurance risks like fire, strikes, riots and civil commotion, marine
risks, cargo risks, etc.

5) Fiscal/Monetary Policy Risks including Taxation risks.

(e) Credit Risks:

These risks relate to commercial operations namely:

1) Creditworthiness risks

2) Risks in settlement of dues by clients

3) Provisions for doubtful and bad debts

(f) Liquidity Risks:

These are financial risk factors namely:

1) Financial solvency and liquidity risks

2) Borrowing limits, delays

3) Cash/Reserve management risks

4) Tax risks.

(g) Disaster Risks:

These risks relate to disasters from following factors:

1) Natural risks like fires, floods, earthquakes, etc.

2) Man-made risks arising under the Factories Act, Mines Act, etc.

3) Risk of failure of effective Disaster Management plans formulated by

the company.

(h) Systems Risks:

These risks relate to the company's systems namely:

1) System capacities

2) System reliability

3) Obsolescence risks

4) Data Integrity risks

Organizational size-

An organization's structure is important to the study of business ethics. In

a Centralized organization, decision-making authority is concentrated in
the hands of top- level managers, and little authority is delegated to lower
levels. Responsibility, both internal and external, rests with top
management. This structure is especially suited for organizations that
make high-risk decisions and whose lower- level managers are not highly
skilled in decision making. It is also suitable for organizations in which
production processes are routine and efficiency is of primary importance.

These organizations are usually extremely bureaucratic, and the division

of labour is typically very well defined. Each worker knows his or her job
and what is specifically expected, and each has a clear understanding of
how to carry out assigned tasks. Centralized organizations stress formal
rules, policies, and procedures, backed up with elaborate control
systems. Their codes of ethics may specify the techniques to be used for
decision making
Because of their top-down approach and the distance between employee
and decision maker, centralized organizational structures can lead to
unethical acts. If the centralized organization is very bureaucratic, some
employees may behave according to "the letter of the law" rather than the
spirit.

In a decentralized organization, decision-making authority is delegated

as far down the chain of command as possible. Such organizations have
relatively few formal rules, and coordination and control are usually
informal and personal. They focus instead on increasing the flow of
information. As a result, one of the main strengths of decentralized
organizations is their adaptability and early recognition of external
change. With greater flexibility, managers can react quickly to changes
in their ethical environment

Weakness of decentralized organizations is the difficulty they have in

responding quickly to changes in policy and procedures established by
top management. In addition, independent profit centers within a
decentralized organization may deviate from organizational objectives.

Profitability and ethics-

In the fallout from Enron and others, many investors are paying closer
attention to a company's ethics, as well as their profits. These investors
realize that a corporate focus on profits alone with little regard to ethical
standards, conduct and enforcement—may result in short-term revenue
gain, but long-term profitability may be limited. In cases like Enron, long-
term viability is limited too.

Consider this balance between profits and ethics to be "ethical

profitability." Well-balanced companies not only consistently reward
owners, investors and employees with profitable performance, they also
genuinely focus on these five key areas:

1) Leadership by example
 The chasm between managing and managing well is wide and deep. To
manage is to merely lead employees. To manage well is to lead
employees effectively, ethically and without arrogance. Company
owners, executives and managers must set the highest examples of
attitude and conduct for their employees. "Do what I say, not what I do,"
is a parental anachronism with no value in management.

2) Company-wide ethical awareness

Most employees, when not at work, practice personal ethics in areas such
as caring for others, being kind and honest, and not harming others. In-
the-office ethical behavior includes demonstrating trustworthiness to
managers and coworkers, respecting privacy and avoiding conflicts of
interest. Ethics knows no time clock.

Occasional classes can help, by reminding employees of the simplicity of

determining ethical behavior. In a nutshell, examine questionable action
and speech, and determine if it's harmful to yourself or another. If it is,
avoid that behavior. Employees with any sort of religious background will
recognize this ethic of reciprocity as familiar. The Bible's Golden Rule is
a good example

3) Strong management of revenue generation and reporting

Corporate temptation to stretch ethical behavior in revenue generation

and reporting is universal. From excessive cost-cutting to expand short-
term market-share, to outright lies about revenue to positively affect stock
price, it's easy to see why an otherwise intelligent, educated corporate
officer can end up behind bars for condoning such behavior. To
overcome these temptations, revenue-related managers must establish
and maintain a firm stance on ethical marketing, advertising, selling and
reporting. This requires regular dissemination and enforcement of codes
of conduct.
4) High level of internal trust

The level of trust within a company should reflect the level of trust the
company solicits from customers. If customers are encouraged to put
their complete trust in the product or service, then company teams must
do the same with each other. Management must guide this internal
process. An increase in trust is a reduction in risk and uncertainty, which
in turn will keep the revenue generation process flowing smoothly.
Another advantage of running a high-trust organization is improved
internal flexibility and creativity. Instead of being constantly monitored,
the person to whom a task is assigned can accomplish it the best way
possible. The outcome is never in doubt because of the trust the team
shares.

5) Formal and active compliance program

Ethical profitability is far more than merely operating within the

boundaries of the law. Legal compliance limits unethical behavior, but it
does not define ethical behavior. An organizational ethics doctrine does
have legal benefits. Properly written, published and disseminated ethical
codes will reduce corporate risk if an employee creates a criminal or civil
problem because of poor ethical behavior. (Even federal sentencing
guidelines recommend lower fines if such violations occur contrary to the
existence and enforcement of compliance codes.)

The true test of ethical profitability is whether or not the company is a

positive example to its employees, to its customers and even to other
companies. Such companies practice the truest form of leadership-by-
example.

Cost of ethics in Corporate ethics evaluation

Operating in an ethical way may incur additional costs to a business when

compared with other retailers and companies who may not do business
in the same way. For example, Primark bears the cost of carrying out all
audits. Then there are its costs associated with working with ethical
partners.

Cost-benefit analysis (CBA) involves the practical application of modern

welfare economics to public policy. It aims to account for the positive and
negative consequences (benefits and costs) of economic activities by
converting them into monetary flow to determine which activity yields the
greatest gain for society. The focus is on cost-benefit analysis as applied
to environmental, safety, and health regulation.

Issues that limit with pricing decisions

1. Unfair trade practices

a) Laws that prohibit wholesalers and retailers from selling below

cost.

2. Price Fixing

a) Price Fixing An agreement between business competitors to sell

the same product or service at the same price.

3. Price Discrimination

a) A seller price discriminates when it charges different prices to

different buyers. The Legality and Ethics of Price Strategy

Transparency in business-

Transparency is an important part of this process. Transparency means

the business is open to people seeing how it manages its relationships
with suppliers. In turn, suppliers‖ practices also need to be transparent.
The alternative would be for an organization to ignore ethical behaviour.
However, this would rapidly lead to a decline in brand reputation and
consumers could move to purchasing from competing retailers behaving
more ethically. Operating in the 'right way' is therefore not just
appropriate for ethical reasons, but is also good business practice.
ETHICS EVALUATION

Ethical — Evaluation should not reflect personal or sectoral interests.

Evaluators must have professional integrity, respect the rights of

institutions and individuals to provide information in confidence, and be
sensitive to the beliefs and customs of local social and cultural
environments.

When considering an ethical issues it is advised that you follow a stepwise

approach in your decision-making process-

a) Recognize there is an issue.

b) Identify the problem and who is involved.

c) Consider the relevant facts, laws and principles.

d) Analyze and determine possible courses of action.

e) Implement the solution.

f) Evaluate and follow up.

Key takeaways –

• ‘Management Ethics’ is related to social responsiveness of a firm.

• An ethical dilemma (moral dilemma) is a problem in the decision-
making process between two possible options, neither of which is
absolutely acceptable from an ethical perspective.
• The role managers must play in implementing internal ethical
standards.
• A code of ethics is a guide of principles designed to help
professionals conduct business honestly and with integrity.
• An organization's structure is important to the study of business
ethics.
2.2 Business and ecological/environmental issues in the Indian
context and case studies

A satellite picture, taken in 2004, shows thick haze and smoke along the
Ganges Basin in northern India. Major sources of aerosols in this area are
believed to be smoke from biomass burning in the northwest part of India,
and air pollution from large cities in northern India. Dust from deserts in
Pakistan and the Middle East may also contribute to the mix of aerosols.

There are many environmental issues in India. Air pollution, water

pollution, garbage, and pollution of the natural environment are all
challenges for India. The situation was worse between 1947 through 1995.
According to data collection and environment assessment studies of
World Bank experts, between 1995 through 2010, India has made one of
the fastest progresses in the world, in addressing its environmental issues
and improving its environmental quality. Still, India has a long way to go
to reach environmental quality similar to those enjoyed in
de veloped economies. Pollution remains a major challenge and
opportunity for India.

Environmental issues are one of the primary causes of disease, health

issues and long term livelihood impact for India.

Major issues-

Floods are a significant environmental issue for India. It causes soil

erosion, destruction of wetlands and wide migration of solid wastes

Major environmental issues are forest and agricultural degradation of

land, resource depletion (water, mineral, forest, sand, rocks etc.),
environmental degradation, public health, loss of biodiversity, loss of
resilience in ecosystems, livelihood security for the poor.

The major sources of pollution in India include the rampant burning of fuel
wood and biomass such as dried waste from livestock as the primary
source of energy, lack of organized garbage and waste removal services,
lack of sewage treatment operations, lack of flood control and monsoon
water drainage system, diversion of consumer waste into rivers,
cremation practices near major rivers, government mandated protection
of highly polluting old public transport, and continued operation by
Indian government of government owned, high emission plants built
between 1950 to 1980.

Air pollution, poor management of waste, growing water scarcity, falling

groundwater tables, water pollution, preservation and quality of forests,
biodiversity loss, and land/soil degradation are some of the major
environmental issues India faces today. India's population growth adds
pressure to environmental issues and its resources.

Population growth and environmental quality-

There is a long history of study and debate about the interactions between
population growth and the environment. According to a British thinker
Malthus, for example, a growing population exerts pressure on
agricultural land, causing environmental degradation, and forcing the
cultivation of land of poorer as well as poorer quality. This environmental
degradation ultimately reduces agricultural yields and food availability,
causes famines and diseases and death, thereby reducing the rate of
population growth.

Population growth, because it can place increased pressure on the

assimilative capacity of the environment, is also seen as a major cause of
air, water, and solid-waste pollution. The result, Malthus theorized, is an
equilibrium population that enjoys low levels of both income and
environmental quality. Malthus suggested positive and preventative
forced control of human population, along with abolition of poor laws.

Malthus theory, published between 1798 and 1826, has been analyzed
and criticized ever since. The American thinker Henry George, for
example, observed with his characteristic piquancy in dismissing
Malthus: "Both the jay hawk and the man eat chickens; but the more
Jayhawks, the fewer chickens, while the more men, the more chickens."
Similarly, the American economist Julian Lincoln Simon criticized
Malthus's theory. He noted that the facts of human history have proven the
predictions of Malthus and of the Neo-Malthusians to be flawed. Massive
geometric population growth in the 20th century did not result in a
Malthusian catastrophe. The possible reasons include: increase in human
knowledge, rapid increases in productivity, innovation and application of
knowledge, general improvements in farming methods (industrial
agriculture), mechanization of work (tractors), the introduction of high-
yield varieties of wheat and other plants (Green Revolution), the use of
pesticides to control crop pests.

More recent scholarly articles concede that whilst there is no question that
population growth may contribute to environmental degradation, its
effects can be modified by economic growth and modern technology.
Research in environmental economics has uncovered a relationship
between environmental quality, measured by ambient concentrations of
air pollutants and per capita income. This so-called environmental
Kuznets curve shows environmental quality worsening up until about
$5,000 of per capita income on purchasing parity basis, and improving
thereafter. The key requirement, for this to be true, is continued adoption
of technology and scientific management of resources, continued
increases in productivity in every economic sector, entrepreneurial
innovation and economic expansion.

Case study

VISAKHAPATNAM GAS LEAK CASE STUDY

A gas leak has affected five villages in Visakhapatnam in Andhra Pradesh.

1) The source of the gas leak was a styrene plant owned by South Korean
electronics giant LG located in the area.

2) The possible reason for gas leak is stagnation and changes in

temperature inside the storage tank that could have resulted in auto
polymerization (chemical reaction) and vapourisation of the styrene.
 Styrene-

a) Description: Styrene is an organic compound with the formula C8H8.

b) It is a derivative of benzene (C6H6).

c) It is stored in factories as a liquid, but evaporates easily, and has to

be kept at temperatures under 20°C.

d) Sources: Styrene is found in vehicle exhaust, cigarette smoke, and in

natural foods like fruits and vegetables.

e) Uses: It is a flammable liquid that is used in the manufacturing of

polystyrene plastics, fiberglass, rubber, and latex.

f) Risk of Exposure: Short Term Exposure: It can result in respiratory

problems, irritation in the eyes, irritation in the mucous membrane,
and gastrointestinal issues.
• Long-Term Exposure: It could drastically affect the central nervous
system and lead to other related problems like peripheral neuropathy.
It could also lead to cancer and depression in some cases.
• State of Chemical Disaster Risk in India.

1) According to the National Disaster Management Authority (NDMA), in

the recent past, over 130 significant chemical accidents have been
reported in the country.

2) Further, there are thousands of registered hazardous factories

and unorganised sectors dealing with numerous ranges of hazardous
material posing serious and complex levels of disaster risks.
• There are over 1861 Major Accident Hazard (MAH) units spread
across 301 districts and 25 states and three Union Territories in all
zones of the country.
• The Major Accident is defined as an incident involving loss of life
inside or outside the site or ten or more injuries.
• Further it also involves the release of toxic chemical or explosion or
fire of spillage of hazardous chemical resulting in ‘on-site’ or ‘off-site’
emergencies leading to adverse effects to the environment.

Laws to Protect Against Chemical Disasters in India-

Laws Before and During Bhopal Gas Tragedy (1984): At the time of the
Bhopal gas tragedy, the Indian Penal Code (IPC) was the only relevant
law specifying criminal liability for such incidents.

Laws After Bhopal Gas Tragedy (1984): Bhopal Gas Leak (Processing
of Claims) Act, 1985 : It gives powers to the central government to
secure the claims arising out of or connected with the Bhopal
gas tragedy.Under the provisions of this Act, such claims are dealt with
speedily and equitably.

The Environment Protection Act, 1986: It gives powers to the central

government to undertake measures for improving the environment and
set standards and inspect industrial units

The Public Liability Insurance Act, 1991: It is an insurance meant to

provide relief to persons affected by accidents that occur while handling
hazardous substances

The National Environment Appellate Authority Act, 1997: Under this

Act, the National Environment Appellate Authority can hear appeals
regarding the restriction of areas in which any industries, operations or
processes or class of industries shall not be carried out or shall be carried
out subject to certain safeguards under the Environment (Protection) Act,
1986.

National Green Tribunal, 2010: It provided for the establishment of the

National Green Tribunal for effective and expeditious disposal
of cases related to environmental protection and conservation of forests
According to PRS legislative, any incident similar to the Bhopal gas
tragedy will be tried in the National Green Tribunal and most likely under
the provisions of the Environment (Protection) Act, 1986.

If an offence is committed by a company then every person directly in

charge and responsible will be deemed guilty, unless he proves that the
offence was committed without his knowledge or that he had exercised
all due diligence to prevent the commission of such an offence.

Key takeaways - Air pollution, water pollution, garbage domestically

prohibited goods and pollution of the natural environment are all
challenges for India.

UNIT 3

Ethics in Functional Areas

3.1 Ethic in Functional Area, Marketing, Finance, Human Resource

and Information Technology

Ethics in functional area

Ethical issues can arise in various functional areas of a business such as

marketing, research and development, HRM, production and finance.
Ethical issues in all these functional areas must be controlled or
coordinated by the chief executive officer (CEO) of the enterprise. Figure
below shows the main functional areas of a business that usually give rise
to ethical issues.
Ethics in Marketing

Marketing is a technique that is used to attract and persuade customers.

Marketing provides a way in which a product is sold to the target
audience. Marketing is a management process that identifies, anticipates
and supplies consumer requirements efficiently and effectively. The main
aim of marketing is to make customers aware of the products and
services. It also focuses on attracting new customers and keeping existing
customers interested in the product. The marketing department consists
of various subdivisions, such as sales, after-sales service and marketing
and research. The different subdivisions of the marketing department are
shown in Figure

In the field of sales, the following ethical issues require safeguards

against unethical behaviour:

1) Not supplying the products made by the company as per the order.

2) Not accepting responsibility for the defective product.

3) Not giving details about the hidden costs, such as transportation

cost, while making the contract with the client.

4) Changing the specifications of the product without giving any

prior information to the customer.
5) Changing the terms of the business without taking any approval from
the client.

6) Delaying the delivery of the goods without giving any proper reason.

7) Treating two customers differently.

8) Not providing the after sales service as per the contract.

9) Selling the same product at different prices to different customers.

Advertising and promotion provide the means for communicating with

the customer. In the field of advertising and promotion, the following are
examples of unethical communication practices:

1) Making false commitments to the customers about the benefits of

the product.

2) Supplying products that are different from those that are advertised.

3) Giving wrong prices to the customers during advertising.

4) Not giving the promised gift in the promotional campaign.

5) Hiding major flaws of the product.

6) Providing wrong testimonials about the product to prospective

customers.

7) Not providing the advertised service to the customers as a part of the

promotional plans.

8) Increasing the price of the product before starting its

promotional campaign.

9) Making false references about the competitive products.

While selling the product to the customer, a company provides some

extended features or facilities along with the product, such as after-sales
service. These facilities are provided to increase the sale of the product.
In the field of after-sales service, the following ethical issues require
safeguards against unethical behaviour:

Using below-standard material for the service and charging for relatively
better material from the customer

• Using outmoded service equipments which can be harmful for

the products during service.
• Not taking the service calls if the location is not easy to reach, while
free service was promised before the sale of the product.
• Making only temporary adjustment in the product, which can last
only for a short time or to make the product useful for the time being.
• Not keeping proper service records of major products for future use,
as they can help in easy diagnosis of problem.
• Overbilling the service charges, when the customer is not aware of
the actual rates.
• Using rejected or below-standard components for customer’s
temporary relief
• Refusing the service of the product due to personal reasons.
• Exchanging healthy parts with below-standard parts when the
product comes for servicing.

Marketing research is done to find out the needs of the market, its trends
and competitive activities. In the field of marketing research, the
following are example of unethical behaviour:

10) Research is conducted only to substantiate the viewpoint of the

manager.

1) Research is focused on the areas that do not need to be covered.

2) Some old research is presented as the new one just for the purpose
of financial gain.

3) A biased research report is prepared to suit the marketing manager.

4) The research report is sold to the competitor.

 5) The report does not include important facts.

Ethics in Finance

Finance is an important element of an organization and it helps in its

growth and development. Finance plays an important role in making
resources available in an organization, such as man, machine, material,
market and money. The finance manager of the firm is responsible for
arranging the finances for the firm. The finance manager can raise funds
from the following two sources:

Internal Sources: Internal sources means the owner’s own funds that are
invested as equity in the organization. In case of small organizations, the
owner’s contribution in terms of equity is low. Therefore, large amount of
money is raised from external sources. The entrepreneur can raise
finance internally from various sources:

1) Deposits and loans given by owner.

2) Personal loan from provident fund and life insurance policy.

3) Funds accumulated by the retention of profits.

4) Ploughing back of profits.

External Sources: External sources means the various financial

institutions from where entrepreneurs can raise funds, such as fixed
capital, commercial banks and development banks. The entrepreneur
can raise finance by:

1) Borrowing money from friends and relatives

2) Borrowing from financial institutions

Figure below shows the organizational chart for the finance function.
The finance department of an enterprise is prone to the following
unethical practices:

1) Overestimating promoters’ capital utilization.

2) Overbudgeting project costs.

3) Using underhand tactics with the financers to gain benefits for the
firm as well as for themselves.

4) Purchasing capital equipments at a time when there is no

requirement for it.

5) Selling the capital equipments in order to raise additional

and unaccounted funds.

6) Siphoning funds for the promoter’s personal benefit.

7) Investing unapproved funds in order to gain extra profits.

8) Claiming insurance cover for losses that never happened.

9) Overpricing the current assets in order to gain more working capital

than permitted.

10) Using working capital funds for personal gains.

The accounts department of an enterprise is prone to the following types

of unethical issues:
1) Showing inflated salaries and getting receipts from employees for
an amount larger than what they actually get.

2) Playing inflated vendor bills in order to get discounts or

commissions.

3) Paying overtime wages when there in no requirement for them.

4) Maintaining two different sets of books, one for the management and
the other for income tax.

5) Refusing to reject unacceptable raw materials when the vendor bills

have to be paid.

6) Delaying the clearance of the bills payable in order to get

maximum interest for the amount to be paid.

7) Allotting extra travelling allowances to favourite employees.

8) Showing wrong figures in the monthly trial balances for

personal benefits.

The following are the unethical practices of the costing manager:

1) Reducing manufacturing costs by manipulating work hours.

2) Ignoring cost of rejects.

3) Ignoring cost of rework.

4) Not accounting for man-hours lost due to strikes and absenteeism.

5) Not accounting for man-hours lost in maintenance work.

6) Not considering the work stoppages due to change in models.

7) Ignoring the man-hours lost due to change in the manufacturing

process.
8) Ignoring time lost in failed experimentations.

9) Not taking into acccount the benefits of economies of sales

and experience curve.

The following points describe the unethical behaviour of the auditing

manager:

1) Ignoring major deviations from the budgets.

2) Rejecting the tender having lowest cost among all due to

personal reasons.

3) Helping in hiding black money in order to reduce the tax payable

amount.

4) Ignoring inflated travel bills of selected employees.

5) Accepting payments made by the directors for personal purchases

as official payments.

6) Enabling the directors in sending and receiving money from

overseas through unofficial hawala channels.

7) Approving payments to suppliers without checking bills or

deliverables.

8) Approving the substandard construction made by the constructor

and approving their bills for payment.

Ethics in Human Resources

HRM is concerned with the management of the ‘people’ of an

organization. The term HRM is used to refer to the procedures,
philosophy, policies, and practices related to the management of people
within an organization. HRM is an approach to bring the people and the
organization together so as to achieve the desired goals. It helps in
creating a relation between the management of the organization and the
employees which is based on cooperation and coordination according to
the designed strategy. It is the art of promoting, developing and
maintaining a competent workforce to achieve the goals of an
organization in an effective manner. HRM is responsible for performing
various functions like planning, organizing, directing and controlling of
human resources. HRM also involves activities like procurement,
development, compensation and maintenance.

According to Ivancevich and Glucck, ‘Human resource management is

the function performed in organizations that facilitates the most effective
use of people (employees) to achieve organizational and individual
goals.’

HRM is extensive in nature and it is present in all organizations and at all

levels of an organization. HRM focuses on action rather than theoretical
procedures and it encourages an employee to utilize his skills and
potential completely to give his best to the organization. It encourages the
employees through systematic procedures like recruitment, selection,
training and development. An effective HRM works towards achieving its
goals by providing a competent and motivated workforce. The primary
aim of HRM is the promotion of effectiveness of the people employed in
the organization and the performance of their allotted duties with
cooperation. It seeks to develop and bring together an effective
organization, enabling the women and men who make up an enterprise
to give their best contribution towards its success both as members of a
working group and as individuals . HRM can help organizations achieve
their goals more effectively and efficiently. Effective management of
human resources helps in improving the quality of work life. It seeks to
provide fair conditions and terms of employment and work that satisfies
all those employed. The following are the key objectives of HRM:

a) To recruit trained and spirited employees.

b) To help the organization reach its goals.

c) To train the employees for best results.

 d) To communicate HR policies to the employee.

e) To ethically respond to the needs of the society.

The following are examples of unethical practices during the recruitment

process of a company:

a) Recruitment of known persons without assessing their abilities.

b) Recruitment on the basis of financial favours.

c) Recruitment of the relatives of other employees.

d) Recruitment based on the recommendations of friend, business

associates.
• and other persons close to the leader.
• Recruitment of underqualified persons.
• Recruitment of overqualified persons.
• Recruitment of less acceptable men when there are better suited
women available for the job.
• Employing children below fourteen years for the job.
• Giving less than minimum wages fixed by the government.

The training manager of the company can also indulge in unethical

practices as can be seen from the following points:

1) Arranging training only for favourite employees, whether they deserve

it or not.
2) Employing outsiders for providing training to trainees even when
there are several persons available inside.

3) Planning and organizing the training programme without even

knowing the need for training.

4) Organizing training during peak seasons or on days when workload is

very high.

5) Starting training programmes in an ill-prepared manner.

6) Extending the time of the training programme to allow the trainees

to have a relaxed time.

7) Supplying outmoded and old training materials for the purpose of

training.

8) Experimenting with trainees by asking them to set their own timetable

for training.

In the area of administration, the following are the unethical practices the
manager can indulge in:

1) Tampering leave records of the employees.

2) Giving leaves continuously to favourite employees.

3) Giving promotions to non-eligible persons merely on the

recommendations of a friend or business associate.

4) Ignoring issues related to the security of the company.

5) Interference in various activities of the administration from the top

management.

6) Giving the contract for uniforms of the employees to the wrong

companies just for the sake of personal benefits.
Ethics in information technology

Information technology refers to the gathering, processing, creation,

delivery and storage of information and all the processes that make all
this possible. The volume of work that is handled using IT continues to
increase almost everyday. Whatever be the field, one is sure to find IT at
work.

Information technology is new to the world in which the clear legal

environment is yet to develop, so getting benefits by using IT cannot be
surely ethical or legal. Therefore, when we talk about ethics and IT, many
new problems crop up.

The characteristic of IT is that it is a particular field which has no

geographical boundaries but application of IT may affect culture and
environment differently. The features which are acceptable in one culture
may be unethical in another.

Computer ethics was founded by MIT Professor Norbert Wiener in the

early 1940s when he was providing a helping hand in the development of
an aircraft cannon, capable of gunning down fast-moving war planes.
Wiener created a new branch of science called cybernetics—the science
of information feedback. By combining cybernetics with digital
computers, he foresaw revolutionary social and ethical consequences.

Technology Ethics: Technology ethics is a new subject. The profile of

technology ethics is as follows:

1. Thinking ethically about human biotechnology.

2. Taking responsibility for e-wastage like environmental damage from

computer and other electronic wastages.

3. Employers must check whether employees are wasting time at

recreational websites or sending unprofessional e-mails.
4. Sometimes the invasions of piracy occurs through to use of the Internet
services.

Ethical Issues: There are various ethical issues involved in information

technology. In 1986, Masovi had classified ethical issues in the following
four groups:

1. Accessibility

It involves the right of accessing the required information as well as the

true payment of charges to access the information.

2. Privacy

It deals with the degree of privacy and dissemination of information about

an individual.

3. Property

It talks about ownership and value of information.

4. Accuracy

The information which is viable and being accessed is now much more
accurate and authentic.

The Computer Ethics Institute in Washington DC has laid down the

following ten commandments of computer ethics:

a) You will not use computer to harm other people.

b) You will not interfere with the computer network of other

people.

c) You will not snoop around in files of other people’s computer.

d) You will not use a computer to steal.

e) You will not use a computer to bear false witness.

 f) You will not copy or use proprietary software for which you
have not paid.

g) You will not use other people’s computer resources without

authorization.

h) You will not use other people’s intellectual output.

i) You will think about the social consequences of

the programme you are writing or the system you are
designing.

j) You will always use a computer in ways that demonstrate

considerations and respect for your fellow humans.

Key takeaways –

• Ethical issues are a part and parcel of any business as unethical

practices can take place across the organization in all departments.
• Effective consumer laws, policies and practices can limit fraudulent
and misleading commercial conduct.

UNIT 4
Environmental Ethics
4.1 Environmental Ethics, Corruption and Gender Issues—Gender
Ethics, Harassment and Discrimination.

Environmental ethics-

Environmental ethics is a branch of ethics that studies the relation of

human beings and the environment and how ethics play a role in this.
Environmental ethics believe that humans are a part of society as well as
other living creatures, which includes plants and animals. These items are
a very important part of the world and are considered to be a functional
part of human life.

Every life form is unique, and has intrinsic value, regardless of its
perceived value to humans.
• We should have a profound resect for nature.
• We must maintain a harmonious relationship with other species.
• Everyone should take responsibility for his impact on nature.
• Local and indigenous environmental knowledge should be respected.
• We must plan for long term.

Environmental ethics is all about the ethical relationship between us as

human beings and his natural environment.

Human beings take a lot of ethical decisions concerning the environment.

These decisions could be about whether a forest area needs to be cleared
to create space for humans or for human consumption, whether zero-
emission vehicles should be used in order to save on fossil fuel resources,
whether consumption should be cut down to preserve resources for
future generations, whether it is right to be indifferent to the extinction of
certain species only because it is convenient for the society, and so on.

Suppose some farmers burn and clear forest areas for cultivation, would
it be possible to justify their act? Suppose a green area is totally cleared
of the vegetation to make space for commercial or residential complexes,
would this act be justified? Suppose a company conducts open-pit mining
in some virgin territory, does the company hold the responsibility to
restore the ecology of that region?

Is it right to spread awareness against pollution only because it affects

human beings and not because the values of certain members of the
natural environment also need to be protected? Environmental ethics is
all about raising such questions and finding their answers.

Environmental movements started when the environmentalists the world

over acted together to draw attention to the philosophical aspects
of environmentrelated problems. People woke up to realize the
importance of a natural ecological balance between the living and non-
living entities. Activists across the globe are spreading awareness about
global warming and the significance of environmental preservation.
Marshall supports three ethical approaches to classify the various
attempts at explaining the significance and importance of environmental
preservation — the Libertarian extension, the Ecological extension and
Conservation ethics.

The first approach emphasizes on the theories that promote the

application of human rights to non-human animals as well as the inanimate
entities. The second approach emphasizes on the fundamental
interdependence of both biological as well as abiological entities and
their diversity. This classification would include the theory that earth as a
planet modifies its geophysiological structure with time to be able to
support the equilibrium of evolving organic and inorganic matter. The
conservation approach considers only the worth of the environment, that
is, the purpose it serves for human beings. In other words, conservation
is solely concerned with human beings and their intergenerational
considerations.

Environmental ethics as an institution gained prominence only in

the1990s. Nowadays, universities offer programmes that specialize in
environmental ethics and philosophy.

Corruption-

Corruption refers to the abuse of public office, that is, use of public office
for some personal benefit. Ethical governance propagates that all are
equal in the eyes of the law. But, corruption practices the exact opposite.
Increasing corruption has led to a situation where only dissipation of
corruption can result in equality before the law.

The root cause of corruption is moral decline. Changing lifestyles have

not only affected the individual’s sense of values, but also the values that
were nurtured and preserved by the society. These changes have
affected the system of governance.

Corruption works against the nation, against the poor strata and against
the economic progress of the country.
The history of our country’s governance is fraught with examples of
corruption that put the nation at security risk. There have been instances
of corruption in politics, in defence deals and even cases of militants
being funded through Hawala.

Corruption in today’s society can be linked directly with the falling

morality standards. The level of corruption in any society is dependent on
the following three factors. These are:

• The values cherished by society.

• The individual sense of values.
• The governance system (probably, at this stage, it is worth looking at
corruption’s social roots).

Corruption is harmful for the society in different ways. Corruption is

antinational. The Hawala scam that was exposed a few years ago has
shown how the militants based in Kashmir were receiving cash from
abroad through hawala channels. Through this same route politicians,
businessmen and bureaucrats were also collecting money.

The nation witnessed another major scam, which was exposed by

Tehelka.com. The expose highlighted the high level of corruption
in defense deals. From such events, one can judge that corruption is anti-
national as it threatens national security.

Moreover, corruption is anti-poor. There have been reports in the Indian

media of high level of corruption in the Public Distribution System (PDS).
A major portion of sugar and other food grains, which are designed to
ensure food security to the population living below poverty line, goes to
the black market.

The Indian Government incurs huge expenditure every year on PDS by

way of subsidizing the food-grain prices for the poor. This means that
huge amounts of money lands in the pockets of the corrupt PDS
shopkeepers and their godfathers in bureaucracy and politics. Out of
every rupee meant for anti-poverty programmes, it is a known fact that
only a fraction reaches the beneficiary. Corruption is, therefore, anti-
poor.

Corruption also has another characteristic of being anti-economic to

development. In mid-1997, the collapse of the South East Asian economies
had shown how even the so-called tiger economies were not immune to
the disastrous consequences of crony capitalism and corruption. In 1999,
the Mahbub Ul Huq Centre in Islamabad in its Human Development
Report for South Asia said that India’s GDP will grow by 1.5 per cent and
the foreign direct investment will grow by 12 per cent if the country’s
corruption level comes down to that of the Scandinavian countries

Gender ethics-

It is hard to believe that even a progressive phenomenon such as

globalization can actually heighten gender inequality. It has been pointed
out many a times that gender equality plays a major role in the
development of a nation. However, despite modern initiatives it is
disappointing to note that the situation of women all over the world has
not improved significantly. This is where gender ethics takes a back seat.

Societies that still remain backward are those where women have been
marginalized and where poverty has been feminized. Globalization
means a situation or condition that encourages the movement of capital
around the globe at a fast pace. It also implies the disappearance of tariff
barriers and the spread of new information and communications
technologies. But the benefits of globalization are not always equally
distributed. Needless to say, the efforts to help women progress are also
stunted.

It would be quite a challenge to encourage women from all over the world
to participate in the whole process of globalization, because not all
women enjoy freedom of movement. For those who are not even allowed
to leave the four walls of their home, the need to create channels that
would help throw the doors open for participation arises. In the women-
friendly regions, the focus should be on creating more facilities for
women to participate in different ways and at different levels in the
market.

The majority of the Internet users consists of men which means women
still remain far behind when it comes to benefiting from information
technology. The benefits of progress, modernization and globalization
have not been fairly distributed and the gap between the haves and the
have nots has not been bridged. With women forming the majority of the
poor in the world, this only strengthens the fact that gender inequality is
certainly not a myth.

Women clearly shoulder more responsibilities than men and are also
expected to play dual roles as bread-winners as well as housekeepers.
This exposes them to more mental and physical stress as well as health
hazards than men. The underdeveloped countries have been victims to
unethical peddling of medicines that do not meet the global safety
standards. Women, especially those who are pregnant are at the
receiving end of all the harmful effects of these dangerous medicines.
They not only risk losing their lives, but also endanger the lives of their
unborn children.

In the Third World countries, often aggressive and unethical sales

campaigns lead the illiterate women to believe that breastfeeding is no
longer the best way to feed an infant. With declining breastfeeding rates,
the state of health of women and children have been far from enviable.
This is just one of the ways in which unethical practices are targeted at
women.

A look at today’s best advertisement will prove to us that gender ethics

has yet not been given due importance in the world today. It is here that
women are exploited the most in terms of their sexuality. Most often than
not, the products advertised possess no connection with the figure of the
scantily-clad women displayed beside them, for example,
advertisements featuring motorbikes and men’s wear. These
advertisements and the concept of sex tourism which has gained alarming
popularity clearly reflect the manner in which women are regarded in
society—their value or worth being measured merely in terms of their
sexual appeal and glamour.

Sexual harassment and discrimination-

In USA and UK, sexual harassment is considered to be a serious form of

violence and proper legislative measures have been taken to protect
women and combat sexual harassment at work.

However, in India, it has not been very long since The Supreme Court
recognized sexual harassment, for the first time, as a violation of human
rights and a genderbased discrimination affecting women’s ‘Right to Life
and Livelihood’. Although mandatory guidelines for resolution and
prevention of sexual harassment of women at work have been put in
place, the issue of sexual harassment and discrimination still remains
under carpet for most employers and women.

The Supreme Court of India defines sexual harassment as ‘any

unwelcome sexually-determined behaviour that includes a demand or
request for sexual favours, physical contact, sexually-coloured remarks,
pornography display, and any other verbal, physical, or non-verbal
conduct that is of a sexual nature

A sexually-harassed person would be one who:

1. Is subjected to an unwelcome act of physical intimacy.

2. Has been asked for sexual favours in return for employment, payment
of wages or a promotion.

3. Has been at the receiving end of sexually explicit compliments, or

sexist remarks or jokes with sexual connotations.

4. Has been forced to view sexually explicit pictures, cartoons, calendars

or even e-mails, etc.
5. Has been subjected to offensive gestures, sounds or any conduct of a
sexual nature which could be either verbal or non-verbal.

6. Has been threatened for refusing to cooperate with the person

demanding sexual favour.

7. Has been repeatedly asked out by the boss or forced to answer queries
(by the boss) regarding personal life.

8. Has been made to feel embarrassed by a group of colleagues joking or

sniggering about sexual conduct.

In India, the Vishaka guidelines provide a framework that emphasizes on

prevention of sexual harassment and facilitates the adoption of preventive
measures. These guidelines apply to women employed in both the
organized and unorganized sectors and also to all women whether
working full time or part time, on contract or in a voluntary capacity. As is
expected, the guidelines stress on the adoption of a sexual harassment
policy prohibiting sexual harassment at the workplace and providing
well-thoughtout grievance procedures for all employees irrespective of
their level in the organization.

In most developed countries, it is considered a crime to discriminate

against any person seeking employment, on the basis of his/her sex.
Hiring, terminating or promoting a person merely on the basis of the
person’s sex can result in legal intervention.

In the developed nations, laws have been enforced that require equal
pay to be given to both men and women for equal work. Compensation
discrimination based on the sex of the worker is also prohibited.
However, the truth is that despite such laws, discrimination at work is a
malady that refuses to be cured.
Sexual Harassment of Women at Workplace and Constitutional
Guidelines and Norms

The three Judge Bench of the Supreme Court in Vishaka vs. Union of India
in an epoch-making judgement made a significant contribution in
evolving the code against sexual harassment. While emphasizing the
need to have guidelines, the Supreme Court said that:

The legislature and the executive have the primary responsibility to

ensure the safety and dignity of women creating the right legislations and
also building mechanisms for their enforcement. However, when
instances of sexual harassment that have resulted in violation of
fundamental rights of women workers under Articles 14, 19 and 21 are
brought before us for redressal under Article 32, an effective redressal
requires that some guidelines should be laid down for the protection of
these rights to fill the legislative vacuum.

Guidelines and norms

For the enforcement and preservation of the right to gender equality of

the working women, the Supreme Court of India has laid down norms and
guidelines that are to be strictly observed at all workplaces. According to
the Supreme Court, these directions are enforceable and binding in law
until suitable legislation is enacted to occupy the field. However, these
guidelines shall not prejudice any of the rights available under the
Protection of Human Rights Act, 1993.

1. Duty of the employer or other responsible persons in workplaces

and other institutions. It shall be the duty of responsible persons or
the employer in institutions and workplaces to take the required and
necessary steps for prevention of acts of sexual harassment, for
determent of the commission of sexual harassment acts, and provide
the procedure for the settlement, resolution, and prosecution of sexual
harassment acts.
2. Preventive steps. All persons in charge of the workplace or
employers, be it in the private or public sector, should take suitable
steps for prevention of sexual harassment. The following steps are
required to be taken by them:

a) At the workplace prohibition of sexual harassment, as

described above, should be published, notified, and circulated
in suitable ways.

b) The rules and regulations relating to conduct and discipline of

the public sector and government bodies should include rules
and regulations that help in prohibiting sexual harassment and
also provide the right penalties against the offender.

c) As regards the employers in the private sector, steps should be

taken by them for inclusion of the aforesaid prohibitions in the
standing orders of their company, under the Industrial
Employment (Standing Orders) Act, 1946.

d) To further guarantee that there is friendly environment towards

women at the workplace, appropriate work conditions should be
provided in respect of health, work, leisure and hygiene and no
woman employee should have reasonable grounds to believe
that she is disadvantaged in her current employment.

3. Disciplinary action. The employer should initiate disciplinary

action in accordance with the rules, where the conduct of the accused
amounts to misconduct in employment under the relevant service
rules.

4. Complaint mechanism. For the redressal of the complaint made by

the victim, the employer is required to create an appropriate complaint
mechanism in his organization to decide whether or not the conduct of the
accused constitutes a breach of service or an offence under law. The
timebound disposal of complaints should be ensured by such a complaint
mechanism.
5. Complaint committee-
• Design of complaint mechanism: The complaint mechanism should
be adequate to provide where necessary a complaint committee, a
special counsellor, or other support service (including maintenance of
confidentiality).
• Composition of complaint committee: The composition of the
complaint committee shall be as under:

(i) It shall be headed by a woman.

(ii) Not less than half of its members of the committee be women.

(iii) The committee should involve a third party, either an NGO or another
body familiar with the issues of sexual harassment, in order to prevent the
possibility of any undue pressures or influence from the senior levels.

c. Annual report: The complaint committee of the concerned

government department shall prepare an annual report of its
activities of the previous year. Such report should also state
complaints and actions taken by them. The committee shall
forward a copy thereof to the head of the organization concerned
who shall forward the same to the government department
concerned with its comments.

d. Compliance report: The employer and the person in charge is

also required to report: (i) On compliance with the aforesaid
guidelines. (ii) Compliance on the reports of the complaint
committee. (iii) Such report must be sent to the concerned
government department.

6. Workers’ initiative. In order to prevent and control sexual

harassment at the workplace, employers should be allowed to raise these
issues:

(i) At workers’ meetings.

 (ii) In other appropriate forums the issues of sexual
harassment should be affirmatively discussed in employer–
employee meetings.

7. Awareness. In order to create awareness about the right of female

employees in regard to sexual harassment, the employer should take the
following steps:

(i) prominently notify the guidelines in a suitable manner; and

(ii) enact appropriate legislation on the subject, and also be suitably

notified and displayed.

8. Third party harassment. Where sexual harassment occurs as a result

of an act or omission by (i) any third party or (ii) outsider, the employer
and persons in charge are required to take necessary and reasonable
steps to assist the affected person (a) in terms of support; and (b) take
preventive action.

9. Steps to be taken by the government. The Central and state

governments are required to: (i) Take suitable measures (including
legislation) (ii) Ensure that the guidelines are observed by the employers
in private sector.

Key takeaways –
• Corruption, environment ethics, gender ethics and sexual
harassment or discrimination are all issues that have been animatedly
discussed at seminars and conferences all over the world.
• However, very little of what is preached is brought into practice. It is
clear that while the developed nations continue to progress, the state
of the women, especially in the third world countries, continues to fall
and the degree of corruption continues to rise.