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    Business Relationships & Ethics: Week 5 Ethical Domains

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    Vasu Singla
    The document discusses various ethical issues in business in India including bribery, corruption, insider trading, conflicts of interest, and pollution. It outlines questionable practices like software piracy, nepotism, firing older employees, and dishonest advertising. Factors affecting ethics in Indian corporations are discussed such as socio-cultural factors, fear of losing jobs, and weak regulations. Ethical dilemmas of Indian managers and why business should be ethical are also summarized. Specific ethical issues in areas like human resources, marketing, information technology, and the environment are then outlined. Finally, key strategies for developing ethical organizations like codes of conduct, ethics committees, and ethics training programs are presented.

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    Business Relationships & Ethics: Week 5 Ethical Domains

    Uploaded by

    Vasu Singla
    53 views39 pages
    The document discusses various ethical issues in business in India including bribery, corruption, insider trading, conflicts of interest, and pollution. It outlines questionable practices like software piracy, nepotism, firing older employees, and dishonest advertising. Factors affecting ethics in Indian corporations are discussed such as socio-cultural factors, fear of losing jobs, and weak regulations. Ethical dilemmas of Indian managers and why business should be ethical are also summarized. Specific ethical issues in areas like human resources, marketing, information technology, and the environment are then outlined. Finally, key strategies for developing ethical organizations like codes of conduct, ethics committees, and ethics training programs are presented.

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    The document discusses various ethical issues in business in India including bribery, corruption, insider trading, conflicts of interest, and pollution. It outlines questionable practices like software piracy, nepotism, firing older employees, and dishonest advertising. Factors affecting ethics in Indian corporations are discussed such as socio-cultural factors, fear of losing jobs, and weak regulations. Ethical dilemmas of Indian managers and why business should be ethical are also summarized. Specific ethical issues in areas like human resources, marketing, information technology, and the environment are then outlined. Finally, key strategies for developing ethical organizations like codes of conduct, ethics committees, and ethics training programs are presented.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    53 views39 pages

    Business Relationships & Ethics: Week 5 Ethical Domains

    Uploaded by

    Vasu Singla
    The document discusses various ethical issues in business in India including bribery, corruption, insider trading, conflicts of interest, and pollution. It outlines questionable practices like software piracy, nepotism, firing older employees, and dishonest advertising. Factors affecting ethics in Indian corporations are discussed such as socio-cultural factors, fear of losing jobs, and weak regulations. Ethical dilemmas of Indian managers and why business should be ethical are also summarized. Specific ethical issues in areas like human resources, marketing, information technology, and the environment are then outlined. Finally, key strategies for developing ethical organizations like codes of conduct, ethics committees, and ethics training programs are presented.

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    Business relationships & Ethics

    Week 5 Ethical domains

    Objectives
    Understand the ethical issues in business with emphasis on Indian context Become aware of ethical issues in business domains such as HR, finance, IT/IS

    ethical issues in India


    Bribery one buys power of influence of another person to satisfy selfish need

    Corruption acceptance of money, stealing funds, use of public office


    Black money illegal earning of money

    Coercion forcing a being to act against self-will


    Insider trading misuse of vital organizational information Tax evasion

    Conflicts of interest - when an individual/organization is

    involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other
    Pollution

    Some questionable business practices

    Software Piracy
    Nepotism Gift giving

    Firing of older employees


    Marketing unhealthy products in domestic markets Environmental issues

    Dishonesty in advertising
    Marketing unhealthy products Padding expense accounts

    Factors affecting ethical issues in Indian corporations

    Socio-cultural factors; Fear of losing jobs; Lax government structures and regulations;

    Factors affecting ethical issues in Indian corporations

    Strong family traditions and laws of inheritance; A tendency to adopt an easy option when confronted with difficult ethical choices; and A belief that business and ethics are irreconcilable.

    Ethical Dilemmas of Indian Managers


    There is a general perception that it is very difficult for managers working in Indian corporations to be ethical because of

    a. All pervading corruption


    b. The manner in which governments function licenses, quotas, permits etc.

    c. The unholy nexus between politicians, bureaucrats and contractors - The electoral system, the heavy investments politicians make in it to win elections

    Ethical Dilemmas of Indian Managers (Contd.)


    e. The take-it-easy attitude of people even when they come across corrupt and unethical behaviour; f. The attitude of the population oriental spirit of hospitality, concept of return gifts, help is to be matched by help and the feeling that when one makes some money, one can share it with those who made it possible; g. Lack of education

    Why Should Indian Business be Ethical?


    There are four reasons why business should be ethical: Ethics responds to the best in us Values create credibility for company with the public Values give management credibility with its employees Values help better decision making

    Ethical Issues in Human Resource Management

    Definition of HRM
    HRM is a management function. Refers to a system of principles, policies, practices, that influence employee behaviour, attitude and motivation

    Determining human resource needs (job descriptions); Attracting & retaining potential employees; Choosing employees; Teaching/preparing; Rewarding;

    Evaluating performance; and


    Creating a positive work environment

    HR related ethical issues


    Discrimination issues

    Suppression of democratization in the workplace


    Privacy issues Recruitment and selection

    Performance tracking
    Privacy issues (computerized employee records, Electronic surveillance)

    Safety and health

    Role of HRM in creating an ethical organization


    The top management should be committed to ethical behaviour act as role models to their employees The organization should evolve codes of ethics for its employees and enforce them. Ethics committees should be formed with top executives as members to advice on ethical issues.

    Role of HRM in creating an ethical organization (Contd.)


    Company journals to publish articles on ethical issues and pose hypothetical ethical dilemmas and discussions on how to resolve these

    An ethics office with ethics officers to oversee the process and help communicate policy to employees.
    Organize employee ethics training which can play an integral role in ensuring compliance with the ethics code. A disciplinary system to deal with ethical violations promptly and decisively.

    Marketing Ethics

    Defining marketing ethics

    Marketing ethics means a standard by which a marketing action may be judged right or wrong
    It can also be defined as how moral standards are applied to marketing decisions, behaviours, and institutions.

    In the context of Indian economy


    Corrupt governments Archaic & Lax implementation of existing laws Lackadaisical consumers Very few independent monitors

    Areas in marketing ethics


    In product development Safe products, disclose risks in use & service Make existing products safer

    In pricing In promotions (advertising)

    Ethical issues in IT Industry

    Ethical perspective of IT-ITES industry Unethical practices are prevalent in the industry in areas relating to: Information security: Lack of information security processes; disclosure of confidential information about customers to unauthorized people; forcing of customers to part with confidential information; hacking; cookies; conspiracy among IT employees/organizations to help clients perform unethical transactions

    Ethical perspective of IT-ITES industry (Contd.)

    Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.
    IP rights: software piracy; illegal use of intellectual properties; reverse engineering of programs to gain access to the business logic and intellectual property of the vendor company.

    Ethical perspective of IT-ITES industry (Contd.)


    Work culture and environment: leakage of recruitment test question papers; wastage of company time and resources; breach of employment agreements; fraudulent bills; poaching of employees from competitors; unethical means of retaining the employees; unrealistic estimations and plans; breach of privacy of the employee; non-ergonomic working conditions

    Environmental ethics
    Environmental philosophy which considers extending the traditional boundaries of ethics from solely including humans and associated entities to including the nature and environment we dwell in. Legal rights of nature? Protection of nature: legally and morally

    Environmental damage through industrial activity


    Two types: 1.Depletion of Natural Resources: extraction of fossil fuels, minerals; removal of forest cover

    2.Degradation of the Natural Resources: deterioration of the quality of environment

    Environmental issues in India


    Air pollution: 3rd largest CO2 producer, poorest air quality out of 132 countries Solid waste pollution Water pollution Indias golden (or toxic) corridor: Ahmedabad to Mumbai road houses number of factories

    Environmental preservation: role of stakeholders


    The stakeholders are:
    The Public: has the power to influence policy, provide support to various groups, buy or reject products;

    The Media: influences public perception, duty to provide positive and negative stories;
    Environmental Groups: transition to moderate and conservative groups; Corporations: shift in attitudes for environment protection; The Government: balance between economic development, regulation, and environment protection

    Key strategies for industrial pollution mgt.

    Waste management - pollution management 1. Systematic waste reduction audit 2. Economic balance: works using benefit: cost ratio to reduce solid waste, air, water pollutants save on clean-up operations 3. Use of Newer, Cleaner Technologies

    Managing environmental issues


    Reinhardt suggests approaches to managing environmental issues 1. Investing in environment friendly processes or products.

    2. Managing environmental regulations.


    3. Looking at environmental issues from a risk management perspective.

    Innovative business responses to environmental regulations


    There are several reasons why those managing business are becoming increasingly conscious of environmental issues: For management morale To cut waste & realize benefits arising from pollution prevention

    Green design of environment-friendly processes

    products & Production of products, packages and

    Eco-labelling: CPCB logo

    McDonalds: 79% of the consumer packaging used in our eight largest markets is made from renewable (paper or wood-fiber) materials

    Indias environmental policy


    The Environment (Protection) Act, 1986 takes into account the following: 1. Water (Prevention and Control of Pollution) Act, 1974 2. Air (Prevention and Control of Pollution) Act, 1981 3. The Factories Amendment Act, 1987 4. The National Environmental Policy 2004

    Creating ethical organisations

    What is an ethical organisation?


    Sound corporate culture & virtues Rigorous Corporate governance structures Policies & programs for Corporate social responsibility

    Developing and Executing a Comprehensive Ethics Programme

    A sound ethics programme should include the following six components: 1. Formal codes of conduct: Codes of conduct are statements of organizational values that comprises of code of ethics, and a code of conduct. It is a written document, inspirational in content and specifies clearly what is acceptable or unacceptable behaviour in the workplace and beyond, when employees represent their organizations outside.

    Developing and Executing a Comprehensive Ethics Programme (Contd.)


    2: Ethics Committees: develop an ethical policy for the organization and also investigate ethical infractions by employees.
    They prepare or update codes of conduct, resolve ethical dilemmas in companies, evaluate the companys compliance with them.

    Developing and Executing a Comprehensive Ethics Programme (Contd.)

    3: An Ethics Office with officer(s) to oversee the process and facilitate the communication of the policy to employees. Ethics officers are responsible for:
    developing and distributing a code of conduct for ethics, conducting training program for employees, processes to help employees obtain guidance and

    Establish means of enquiry for employees

    Developing and Executing a Comprehensive Ethics Programme (Contd.)


    4. Ethics Communication System: includes the facility for employees to post queries, get advice, or report any wrongdoing.

    Objective of the ethics communication system is to:


    a) Communicate the companys values and standards of ethical business conduct to employees; b) Provide information to employees on the companys policies and procedures regarding ethical business conduct;

    Developing and Executing a Comprehensive Ethics Programme (Contd.)


    5. Ethics training programs:

    The basic objective of a training programme is to help employees understand the ethical issues that are likely to arise at their workplace and to offer assistance in dealing with such issues.

    Developing and Executing a Comprehensive Ethics Programme (Contd.)


    6. Disciplinary system:

    A systems for prompt, decisive and impartial dealings with violations.


    Consistent enforcement and pursuit of disciplinary system are necessary for achieving a sound and fruitful ethics program.

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