business ethics

B U S SSENI

IHT C SE

Shikha Sota

Are we Ethical?

Have you ever cheated in exams/ tests?

Have you ever copied assignments from you classmates/ colleagues?

Have you ever borrowed something and then forgot to return?

Have you ever talked during class while teacher is delivering lecture?

Have you ever accessed ideas from the internet and told that it was yours?

Have you ever reached late to college and lied that your car broke down?

Have you ever lied to your parents that you were doing combined studies, but actually you were busy partying?

Have you ever lied to your girlfriend/ boyfriend that you are going away while you busy dating another girl/boy?

Have you ever bribed traffic policeman to avoid challan?

Have you ever bribed the watchman to enter your girlfriend’s hostel?

Have you ever crossed red signal at the traffic lights?

Ethics in business

An employee surfs the Internet shopping for personal items on company time.

A plant manager decides to ship product to a customer even though he knows the parts have a quality problem because the problem

doesn't affect part function and the customer probably won't

notice.

An employee spends several hours a week on company’s phone talking with her children, family and friends.

A manager shares important company information with a competitor for her potential gain.

An employee takes office supplies home to stock his home office.

An accountant tells a supplier that their "check is in the mail" when he knows he hasn't written the check.

"Ethics has to do with what my

feelings tell me is right or wrong."

Ethics

Hard to pin down one universal definition

"Ethics has to do with my

religious beliefs."

"Ethics consists of the standards of behavior our

society accepts."

Business Ethics? What are they?

Being honest and responsible

Being unprejudiced

Business Ethics? What are they?

Doing what is fair to all concerned

• Being fair & objective

Business Ethics? What are they?

Business Ethics? What are they?

Defining a specific guide to behavior

Enhancing employee

morale

Its important…

Its important…

Reducing employee turnover

Inculcating loyalty in employees

Its important…

Aspirations of business

Responsibility towards employees, community, shareholder & nation

Employee conduct & their rights

Transparency within & outside the organization

Code of Ethics

Purpose of code

Goals & objectives of organization

Universally acceptable

Creating code of ethics

Clear, non ambiguous

Written in language, understood by all

Contact information for clarifications

Must describe procedure in case of non compliance

Presentation

Training material

Website

Company newsletter

Business presentations

Communication

Loss of customers—especially those who value ethics

Loss of employees

Loss of reputation

Cost of not being ethical

Competition

Organizational Goals

Government policies

Pressure from above

Why companies are not fair?

Ambiguous situations

Comparative conceptual disparity

Personal benefits

To reduce expenses

Why companies are not fair?

Legislation

Employee concern

Public perception

Media and NGO interest

Why companies are not fair?

Objectivity

Fairnes

s

Social

responsibility

Inte

grit

y

Respect

Honesty

Nondiscriminatio

n

Governance rules & Regulations

Business Culture

Management Style

Rapid growth of private sector

Factors driving India’s unique business practices

Fusion of Business Ethics

Borderless Flow Of Professionals

Rise of Glocal Governance

Emergence of Compassionate Capitalism

Implications for business ethics in a global world

Lack of management support

Company politics

Insufficient resources

Obstacles in business conduct

Personal financial worries

Little or no recognition of achievements

Need to meet sales, budget or profit goals

Obstacles in business conduct

Satyam Scam

Tighter rules for accounting and corporate governance

Appointment of independent directors by selection committees

Perfecting the corporate law

Prevention

Greater oversight from regulatory and government authorities

Fasten court procedures

Giving SEBI more rights

Prevention

It always pays to be ethical..