Ethics = Ethos (moral character)

• Ethics (also known as moral philosophy) is a branch of philosophy that addresses questions about morality — that is, concepts such as good and evil, right and wrong, justice, virtue.

• It is the study of universal values such as the essential equality of all men and women, human or natural rights, obedience to the law of land, concern for health and safety and, increasingly, also for the natural environment.

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Ethics & Ethical Principles

• These extend to all spheres of human activity.

• They apply to our dealings with each other and the environment.

• They should govern our interactions not only in conducting research but also in commerce, employment and politics.

• Ethics server to identify – Good, Orderly, Desirable or acceptable conduct and provide reasons for those considerations.

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Ethics in Business

Businesses have a role to play in improving the lives of all theircustomers, employees, and shareholders/stakeholders by sharing with them the wealth they have created. Suppliers and competitors as well should expect businesses to honour their obligations in a spirit of honesty and fairness. As responsible citizens of the local, national, regional, and global communities in which they operate, businesses share a part in shaping the future of those communities.

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Importance of Ethics in Business

• Ethics correspond to basic human dignity.

• It creates credibility in public.

• It gives the Management credibility with the employees.

• It helps in better decision making.

• Law cannot “spirit” society, but Ethics can.

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Corporate Ethics

Is based on Principles of Integrity and Fairness.

Focuses on :• Customers / Market culture

• Shareholders / Stakeholders

• Employees

• Suppliers / Vendors

• Competitors

• Environment

• Communities6

Corporate Ethics are implemented to:

• Define the framework of acceptable behaviour.

• Follow high standards of practice.

• Create benchmarks for self evaluation.

• Enhance sense of community and fairplay.

• Create transparency in business activities.

• Comply with government laws and norms.

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Assembling ethical codes

• When a corporation assembles a code of ethics for business practice, all these elements come into play.

• Codes of ethics are written by prominent figures within a given industry .

• The assembled code of conduct should be suitable for profitability and reputability since profit and reputation are often dependant on one another.

• These rules of conduct are important for the success of the business as a whole.

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Who is responsible for Ethics in a Company ?

“ EVERYONE”

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If a company paints the below picture, there is a problem.

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Responsibilities of a Business towards Customers

• To provide our customers with the highest quality products and services consistent with their requirements.

• To treat our customers fairly in all respects of our business transactions, including a high level of service and remedies for their dissatisfaction .

• Making every effort to ensure that the health and wealth of our customers, as well as the quality of their environment, will be sustained or enhanced by our products and services .

• Assuring respect for human dignity in products offered, marketing, and advertising; and respect the integrity of the culture of our customers.

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Responsibilities of a Business towards Market culture

• When considering the global market of today, if the rules of conduct conflict with those of business in other countries and other markets, both reputation and profit will be negatively affected.

• When considering the global market, one must address the "legal, ethical, and moral issues relevant to business and the workplace“ When it comes to legalities, the lines are much clearer as to what is right and wrong.

• When it comes to ethics and morality, there is such a diverse selection of what is considered right and wrong in various cultures that the lines are not so clearly drawn.

• The extended issues include "confidentiality, compliance with [foreign] laws, financial integrity, and political activities" . All of these factors come into play when doing business in a multicultural, global economy.

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Responsibilities of a Business towards Stakeholders / Shareholders

• The value of a business to its Stakeholders and Shareholders is the wealth creation .

• To create such value, a business must maintain its own economic health and viability, but just survival is not a sufficient goal.

• Dynamic sustainable progress is a key ingredient in maintaining positive wealth creation.

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Responsibilities of a Business towards Employees

• Work conditions that respect each employee's health and dignity.

• Honesty in communications with employees and open in sharing information, limited only by legal and competitive restraint.

• Forum for employee suggestions, ideas, requests, and complaints.

• Avoiding discriminatory practices and guarantying equal treatment and opportunity in areas such as gender, age, race, and religion.

• Negotiations in good faith ,and when conflict arises seek a resolution in a consensus.

• Promote in the business itself the employment of differently abled people in places of work where they can be genuinely useful. 15

Circle of Ethical Manageability

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Most employees reaction to Ethics!

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Responsibilities of an Employee towards a Business

• Employees must understand that ethical behaviour is demonstrated not only in how they act toward others but also in how they treat property that doesn't belong to them.

• The key to success is understanding who owns what and what boundaries exist for its use.

• An ethical person doesn't put a rupee amount on respecting the property of others. He or she always makes a moral connection between property, ownership, and responsibility.

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Responsibilities of a Business towards Suppliers/ Vendors

• Seek fairness and truthfulness in all of our activities, including pricing, licensing, and rights to sell.

• Ensure that business activities are free from coercion and unnecessary litigation.

• Foster long-term stability in the supplier relationship in return for value, quality, competitiveness, and liability .

• Pay suppliers on time and in accordance with agreed terms of trade.

• Seek, encourage, and prefer suppliers and subcontractors whose employment practices respect human dignity.

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Responsibilities of a Business towards Competitors

• Congratulate Their SuccessAppreciate your competition to create a healthy environment.

• Sales & Marketing StrategiesNever indulge in outright criticism of your competitor; be tactful in mentioning both positives and negative aspects of their service/product.

• Don’t BiteAvoid getting involved in any tit-for-tat. This will help your business to keep its reputation intact.

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Responsibilities of a Business / Employee towards the Environment

• To contribute to sustainable development through the establishment and implementation of environment standards that are scientifically tested and meet the requirement of relevant laws, regulations and codes of practice.

• To reduce waste, conserve energy, and promote recycling of materials wherever possible.

• To ensure safe handling, storage, use and disposal of all substances and materials that are classified as hazardous to health and environment.

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Responsibilities of a Business towards the Community

• Respect human rights and democratic institutions, and promote them wherever practicable.

• Recognize government's legitimate obligation to the society at large and support public policies and practices that promote human development through harmonious relations between business and other segments.

• Collaborate with those forces in the community dedicated to raising standards of health, education, workplace safety, economic well being.

• Support peace, security, diversity, and social integration.

• Respect the integrity of local cultures.

• Be a good corporate citizen through charitable donations, vocational and cultural contributions, and employee participation in community and civic affairs.

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Thank You!

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