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Business Ethics Notes

The document discusses the importance of ethics in business. It explains that ethics refers to guidelines for morally right conduct, and businesses need ethics to build trust and reputation with employees and the public. Unethical practices can damage relationships and cost companies, while ethical companies gain respect and are more successful long-term.

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0% found this document useful (0 votes)
4K views30 pages

Business Ethics Notes

The document discusses the importance of ethics in business. It explains that ethics refers to guidelines for morally right conduct, and businesses need ethics to build trust and reputation with employees and the public. Unethical practices can damage relationships and cost companies, while ethical companies gain respect and are more successful long-term.

Uploaded by

rachit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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The basic concepts and fundamental principles of decent human conduct.

It includes 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. See also morality.

Need for Ethics: 


In early 50’s the public view in India was that the profits and ethics do not go together. They
are mutually opposite and company that makes profit was not considered an ethical company.
The normal understanding of the people was “profit is a dirty word”. Since then the
management education, widening of markets and consumerism worldwide have given profits
its important place in business.

Today it is considered profit is a must for any business for its existences and growth. In fact
not making profit is considered unethical today. Business ethics in simple terms is application
of ethics in businesses. Business has to go with its economics as well as social obligations.

Any managerial decision has to distinguish between good and bad, right and wrong, just and
proper. It is also seen that the ethical companies which took care of their social
responsibilities have survived competition and growing. Ethical issues occur in decision
making in industry, education.

Essay on the Importance of Ethics:


The business organisations which act legally and ethically not only save lot of money but also
gain public support and reputation in whatever new ventures the organisation takes. The
importance of ethics in business is many folds.

They are:
(1) Part of Society:
Business is part of society. Whatever ethical principle apply in society apply to business.
Example tax evasion is considered unethical in society. If a company deliberately evades tax
payments the company is treated unethical.

(2) Expectations of Public:


All stakeholders have an eye on the culture and behaviour of a business organisation due to
dominance of economics in the society. The public expects a high level of ethical behaviour
from the business organisations.

‘Doing the right thing’, ‘Do no harm’ and ‘Good to all’ are the expectations of general public
from business. Example: a company manufacturing a tobacco based products say ‘pan
masalas’ and making advertisements appealing to college students in not respected. Whereas
a company that recalls unsafe product is respected.

(3) Trust of Employees:


High level of morale and productivity can be easily obtained in companies that treat their all
employees with equality, encourage good team and work culture, and with ethical practices.
The employees in the company as well as those connected feel good and develop a mutual
trust. Employees get attraction to ethically and socially responsible companies.
(4) Image:
An ethical organisation command trust and respect of all its stakeholders. The organisation
builds image for itself. Ethical good image is important because all stakeholders stand to
gain.

(5) Costs:
Deterioration of relationships, damage to reputation and reduction of employee productivity,
loyalty that come out of unethical practices cost companies. An uncaring employer will find
it difficult to employ good professions for his business.

(6) Pride of Best Companies:


The ethically managed companies command respect from public as well as government
organisations. ‘Fortune’ magazine publishes yearly best companies. Similarly Indian will
managed companies are published by ‘Business India’. These companies have a brand value
and accepted as leaders in the industry. The company policies with regards to profit sharing
bonuses, social responsibility, balance of work and social life are quoted.

(7) Overall Benefit:


Ethical behaviour of an industry or business gives a win-win situation to all the stakeholders
and general public. The governments also encourage such companies. The integrity and
ethical practices become all-pervading in the organisation and increase organisational
effectiveness.

BASIS FOR
ETHICS VALUES
COMPARISON

Meaning Ethics refers to the guidelines Value is defined as the principles and
for conduct, that address ideals, that helps them in making
question about morality. judgement of what is more important.

What are they? System of moral principles. Stimuli for thinking.

Consistency Uniform Differs from person to person

Tells What is morally correct or What we want to do or achieve.


incorrect, in the given
situation.

Determines Extent of rightness or Level of importance.


wrongness of our options.

What it does? Constrains Motivates


DEFINITION OF ETHICS

By the term ‘ethics’ we mean a branch of moral philosophy – a sense of rightness or


wrongness of actions, motives and the results of these actions. In short, it is a discipline that
identifies good or evil, just or unjust, fair or unfair practices, about moral duty. It is well-
based standards that a person should do, concerning rights, obligations, fairness, benefits to
society and so on. The standard puts a reasonable obligation to stop crime like stealing,
assault, rape, murder, fraud and so on.

The system addresses the questions of the human morality, such as What should be a standard
way for people to live? Or What are the appropriate actions in the given situations? What
should be an ideal human conduct? etc. Under Ethics there are four important subject areas of
study:

 Meta-ethics: Ethical philosophy that analyses the meaning and scope of moral values.
 Descriptive ethics: The branch of ethics that deals with psychology, sociology,
anthropology, etc.
 Normative Ethics: The study of the moral course of action through practical means.
 Applied ethics: This branch tells us how we can achieve moral outcomes, in a
particular circumstance.

DEFINITION OF VALUES

Values refer to the important and enduring beliefs or principles, based on which an individual
makes judgements in life. It is at the centre of our lives which act as a standard of behaviour.
They severely affect the emotional state of mind of an individual. They can be personal
values, cultural values or corporate values.

Values are forces that cause an individual to behave in a particular manner. It sets our
priorities in life, i.e. what we consider in the first place. It is a reason behind the choices we
make. It reflects what is more important for us. So, if we are true to our values and make our
choices accordingly, then the way we live to express our core values. Moreover, if you
understand an individual’s values, you can easily identify what is important for them.

PERSONAL ETHICS

Personal ethics is a category of philosophy that determines what an individual believes about
morality and right and wrong. This is usually distinguished from business ethics or legal
ethics. These branches of ethics come from outside organizations or governments, not the
individual’s conscience. These branches of ethics occasionally overlap. Personal ethics can
affect all areas of life, including family, finances and relationships.

PRINCIPLES OF PERSONAL ETHICS


 Concern and respect for autonomy of others
 Honesty and willingness to comply with law
 Fairness and intention of not taking undue advantage of others
 Benevolence and preventing harm to other creatures (kindness)

Definitions and concepts of Professional Ethics


To know what the brief definition for professional ethic, we should understand what the
meaning of profession, professional, ethics and the last we will find the concept of
professional ethics.

When describe about profession, we know that all profession are occupations, but not all
occupation are professions. It is because, profession relate with the job that have group
identity. Such as medical, teacher, engineer, businessman and another. A profession shared
education, the company or organization will give training to their staff and new member to
requirements for admission. The professions also have special uncommon knowledge that can
be benefit for their profession, as example the creativity of Internal Designer.

The knowledge is used to service of other that need for them known as positive social need.
The profession will adherence to certain value to keep the moral in occupation
(Dr.Ir.Sudaryanto,MSC). Today’s, many new profession exist in many field of occupation, to
make the profession a respectable, it should relate with the ethic.

Next, I will describe the definition of professional. Professional can be defining as a person
who is engaged in a certain activity or occupation. The term of professional only can refer to
people who have permanent career not for temporary workers, as example the professions as
doctors, engineers, lawyers and architects. The term also applied to nurses, accountants,
educators, scientists, technology experts, social workers, artists, librarians and many more.
Professional is someone that possesses specialized knowledge and skills. They also belong to
and abide by the standards of society and serve an important aspect of the public good.
Another word can be describe as a person formally certified by an professional body of
belonging to a specific profession by virtue of having completed a required course of studies
or practices and whose competence can usually be measures against an established set of
standards (Strahlendorf(2005)). So, you are not a professional until you are a member of a
group of colleagues who have articulated a set of standards and values and can enforce them,
at the very least, by exclusion from the group.

Ethics commonly related to the moral principle or guideline that governs a person’s behavior
or the conducting of activities. In general ethics knows as the branch of knowledge that deals
with moral principles. In history of ethic, Thomas Percival (1740-1804) was published a code
of medical ethics for physicians in 1794. He also creates the first code of ethics for
professional ethics. The code is the first code of ethics to be adopted by a professional
organization, AMA. Today’s, modern professions also adopted codes of ethics because it is a
common standards, the minimization of the interpersonal strife that the emphasis on
individual honor encourages. Ethic also as a framework of weal that permits professionals to
assert their independence of their nominal employers in the name of service to other.

PRINCIPLES OF PROFESSIONAL ETHICS

 Adhere to the highest standards of professional conduct


 Strive for impartiality and objectivity when dealing with others
 Communicate openly and honestly with colleagues and clientele
 Maintain confidentiality in professional relationships
 Fulfill commitments in a reliable, responsive and efficient manner
 Be fully accountable for actions, use of resources and financial dealings
 Avoid potential or apparent conflicts of interest
 Show respect and understanding toward all people and honor diversity
 Continue to upgrade professional competences to meet changing needs of families
and communities

The difference between personal and professional ethics

Personal ethics refers to the ethics that a person identifies with in respect to people and
situations that they deal with in everyday life.

Professional ethics refers to the ethics that a person must adhere to in respect of their
interactions and business dealings in their professional life.

In some cases, personal and professional ethics may clash and cause a moral conflict. For
example:

 A police officer may personally believe that a law that he is required to enforce is
wrong. However, under the Code of Conduct for the New Zealand Police, he is required to
obey all lawful and reasonable instructions to enforce that law unless there is good and
sufficient cause to do otherwise.
 A doctor may not personally believe that the course of medical treatment chosen by a
patient is the right one. However, under the Code of Ethics for the New Zealand Medical
Association, she must respect the rights, autonomy and freedom of choice of the patient.
\

Basic Concept of Business Ethics:


The basic concepts of business ethics are involved with three different types of moral or
ethical issues. Some concepts focus on the issues covering the function of business within
the environment where the business activates i.e. political, economic, legal and other social
factors. Other concepts focus on the corporate issues, i.e. the issues pertaining to the
functioning of a certain business or company. While the other concepts focus on the
individual issues, i.e. the issues pertaining to the conduct or behavior of individuals within a
business or company. In this discussion the following concepts will be briefly explained:
 Businesses as a "Corporate Entity”
 Business Ethics considered as “Good”
 Unethical Business Practices
 Moral Rights
 The Concept of Justice
Businesses as a "Corporate Entity":
Business corporations in most of the nations are considered legally as entities or persons, i.e.
the rights and liabilities legally applicable to persons or citizens are also applicable to
business corporations.
The eventual objective of individual ethics is developing a set of ethical standards which can
be held as acceptable after considering everything carefully in a particular situation. These
individually accepted ethical standards can also be applied to different situations such as
personal, social and even in a business. Most of the consumers agree that a business should
follow the same moral standard while interacting with an individual customer as well as
interacting with all customers locally, nationally or globally.
Business Ethics considered as "Good":
Business ethics considered as "Good" requires containing and following a norm of moral
values keeping the expectations and rights of people ahead of the profit maximization of
business. A business’s main goal is to make a profit but peoples’ rights and expectations
should not be ignored. Good business ethics is beneficial for businesses in the following three
ways:
 It Discourages the breaking of laws in business activities.
 It assists businesses to avoid steps for which the company may come under costly
civil lawsuits.
 It demotivates companies to engage in actions which can damage the image of the
company. Good business ethics helps to improve businesses profitability as following
ethical values prevents loss of revenue and company reputation.
Though moral standards are something which goes beyond the legal requirements, some of
them are ascertained by the legal system. There are various laws against fraudulence,
stealing, killing, sexual harassment, and so on.
Unethical Business Practices:
Many big companies have been fined a large amount of money for following unethical
business practices. Unethical business practices go far beyond functions breaking the law.
Many renowned companies are engaged in unethical and questionable practices without
breaking any laws. They follow practices just to increase their profits ignoring the rights of
the consumers, such as, giving less in quantity or quality, selling old or low-quality products
with free gifts, etc.
The businesses have to make a profit but not at the cost of moral or ethical values. Businesses
are ethically responsible for their activities as individuals are responsible for theirs.
Moral Rights:
Generally, a moral right refers to a person’s claim to something. When a person is entitled to
a right, he or she is able to make a decision whether or not to claim such right without
anyone’s permission. The entitlement of moral or ethical rights implies that others have
particular duties towards the person bearing the right.
Negative rights enforce duties on other people not to interfere in your activities which are
right for or important to you. For example, your right to make your own decisions or right to
express your own opinion about anything.
Positive rights generate duties on others to give something to the person bearing the right.
They state that others must contribute some benefits to the bearer of the right. For example,
education, you have the right to educate yourself. If you are eligible to get yourself admitted
to a varsity to get an education on a specific subject or do a specific course, the varsity has to
provide you the benefit of education.

The Concept of Justice:


The concepts of justice are based on ethical principles that determine just means of allocating
benefits and burdens to all people of the society. The following beliefs are utilized to
distribute the benefits and burdens in a just or fair way to the people of the society.
Egalitarianism states that all human beings are equal. According to this belief, all the
benefits and burdens of the society should be circulated according to this principle:
“Every person should be given exactly equal shares of a society’s or a group’s benefits and
burdens.”
Utilitarianism states that a just society’s laws and institutions promote the best overall or
average welfare of its members. According to this belief, the greatest benefits for all, and the
society should be organized in such a way that its wealth is allocated to meet everyone’s
basic needs.
Socialist justice, states
“work burdens should be distributed according to people’s abilities, and benefits should be
distributed according to people’s needs.”
 It is focuses on equal justice for everyone whether they are poor, middle class or rich.
Capitalist justice states that a person should receive the benefits proportionate to his or her
contribution to the society.
Libertarian justice states that the free market is naturally just, and that redistributive taxation
breaches the property rights of people. This belief is founded on two principles: Principle 1
(Principle of equal liberty) and Principle 2 (Difference principle) both referring how
everyone is responsible for one’s own future not regarding of what happens.
Every business person should follow the business ethics properly because studies prove that
ethically correct business becomes profitable in the long run.
What are Business Ethics? Meaning
Ethics is a branch of social science. It deals with moral principles and social values. It helps
us to classify, what is good and what is bad? It tells us to do good things and avoid doing bad
things.

So, ethics separate, good and bad, right and wrong, fair and unfair, moral and immoral and
proper and improper human action. In short, ethics means a code of conduct. It is like the 10
commandments of holy Bible. It tells a person how to behave with another person.
In short, business ethics means to conduct business with a human touch in order to give
welfare to the society.
So, the businessmen must give a regular supply of good quality goods and services at
reasonable prices to their consumers. They must avoid indulging in unfair trade practices like
adulteration, promoting misleading advertisements, cheating in weights and measures, black
marketing, etc. They must give fair wages and provide good working conditions to their
workers. They must not exploit the workers. They must encourage competition in the market.
They must protect the interest of small businessmen. They must avoid unfair competition.
They must avoid monopolies. They must pay all their taxes regularly to the government.
In short, business ethics means to conduct business with a human touch in order to give
welfare to the society.

Definition of Business Ethics


According to Andrew Crane,
"Business ethics is the study of business situations, activities, and decisions where issues of
right and wrong are addressed."
According to Raymond C. Baumhart,
"The ethics of business is the ethics of responsibility. The business man must promise that he
will not harm knowingly."

Nature of Business Ethics


The characteristics or features of business ethics are:-

1. Code of conduct : Business ethics is a code of conduct. It tells what to do and what
not to do for the welfare of the society. All businessmen must follow this code of conduct.
2. Based on moral and social values : Business ethics is based on moral and social
values. It contains moral and social principles (rules) for doing business. This includes self-
control, consumer protection and welfare, service to society, fair treatment to social groups,
not to exploit others, etc.
3. Gives protection to social groups : Business ethics give protection to different social
groups such as consumers, employees, small businessmen, government, shareholders,
creditors, etc.
4. Provides basic framework : Business ethics provide a basic framework for doing
business. It gives the social cultural, economic, legal and other limits of business. Business
must be conducted within these limits.
5. Voluntary : Business ethics must be voluntary. The businessmen must accept
business ethics on their own. Business ethics must be like self-discipline. It must not be
enforced by law.
6. Requires education and guidance : Businessmen must be given proper education
and guidance before introducing business ethics. The businessmen must be motivated to
use business ethics. They must be informed about the advantages of using business ethics.
Trade Associations and Chambers of Commerce must also play an active role in this
matter.
7. Relative Term : Business ethics is a relative term. That is, it changes from one
business to another. It also changes from one country to another. What is considered as
good in one country may be taboo in another country.
8. New concept : Business ethics is a newer concept. It is strictly followed only in
developed countries. It is not followed properly in poor and developing countries.

Importance of Business Ethics


 Long-term growth: sustainability comes from an ethical long-term vision which
takes into account all stakeholders. Smaller but sustainable profits long-term must be
better than higher but riskier short-lived profits.
 Cost and risk reduction: companies which recognise the importance of business
ethics will need to spend less protecting themselves from internal and external behavioural
risks, especially when supported by sound governance systems and independent research
 Anti-capitalist sentiment: the financial crisis marked another blow for the credibility
of capitalism, with resentment towards bank bailouts at the cost of fundamental rights
such as education and healthcare.
 Limited resources: the planet has finite resources but a growing population; without
ethics, those resources are repleted for purely individual gain at huge cost both to current
and future generations.

Ten Companies With Best Ethical Corporate Policies Worldwide


 
It’s not often that companies are celebrated for good behavior. Here are corporations with
policies we can support:

1. Google
Although some may criticize the company, Google(NASDAQ:GOOG) regularly makes good
on its motto: “Don’t be evil.” Through its Google Green Program, the company has donated
over $1 billion to renewable energy projects, and has decreased its own footprint by using
energy efficient buildings and public transportation. The company is also a staunch advocate
of free speech, which can be observed from its frequent conflicts with the Chinese
government. Google is also an open supporter of gay rights. Yet all this pales in comparison
to Google’s status as a paragon for employee benefits. Just to name a few, Google employees
have access to free health care and treatment from on-site doctors, free legal advice with
discounted legal services, a fully stock snack pantry and onsite cafeteria (staffed by world-
class chefs, no less), and a free on-site nursery. With such a stellar record of social awareness
and positive employee relations, Google is easily the best example of ethics in the corporate
world today

 
2. Microsoft
Given the fact that it was started by Bill Gates, one of America’s most generous
philanthropists, it follows that Microsoft(NASDAQ:MSFT) would do well in following his
example. The tech company and its employees donate over $1 billion yearlyto charities and
non-profit organizations. If that wasn’t enough, Microsoft’s management and employee’s
have also decided to tackle America’s IT professionals shortage through its TEALS program.
Through the TEALS program, Microsoft employees are encouraged to volunteer at local
schools to instruct students in computer science, in the hopes that it will inspire them to enter
the technology industry. It’s only natural that Microsoft employees would be generous
people; in addition to being among the highest paid employees in America, they also enjoy a
plethora of perks, including 100% coverage on their health care premiums.

3. Intel
Since 1988, the computer chip manufacturer Intel(NASDAQ:INTC) has been trying to
bolster its reputation through its efforts to strengthen technological education. Through the
Intel Foundation, the company hosts the Intel Science Talent Search and the international
Science and Engineering Fair to help encourage STEM (science, technology, engineering,
and mathematics) education for young people. Intel is also interested in making these areas
more diverse; the company has many donation funds and programs to encourage girls and
underprivileged minorities to study in these fields. Employees of Intel also experience the
company’s dedication to education through a very strange corporate perk — the company
promotes or reassigns them to different fields and areas every 16 to 24 months, in the interest
of making sure that workers never become bored with their roles, and encouraging them to
explore new fields. Accepted employees are often told, “Welcome to your next five jobs.”

The other companies which top in practicing business ethics worldwide are Patagonia,
NuStar Energy, SAS Institute, Ultimate Software, Goldman Sachs, Starbucks and
Salesforce.com .
      Two Indian companies among most ethical in the world:
1. TATA Steel
2. Wipro Limited
Social Responsibility
Man is a social animal and cannot live in isolation. He is expected to behave in a manner that
is socially and morally acceptable to others. The same applies to businesses. Though the
primary objective of any business is to earn maximum profits for the owners and
shareholders, it is also expected to conduct its operations in a manner that it fulfils its social
obligations also. For example, though it is not binding on any private sector company to
provide employment to the disabled or weaker sections of the society, it is considered to be a
part of the social responsibility of the company to absorb people from such sections of the
society. Similarly though there is not written law to compel a company to engage in acts to do
something to reduce pollution or to do something for the betterment of environment, taking
up projects to clean up environment are considered to be a part of the social responsibility of
the company.
Corporate Social Responsibility
Corporate Social Responsibility (CSR) is a concept whereby organizations consider the
interests of society by taking responsibility for the impact of their activities on customers,
employees, shareholders, communities and the environment in all aspects of their operations.
This obligation is seen to extend beyond the statutory obligation to comply with legislation
and sees organizations voluntarily taking further steps to improve the quality of life for
employees and their families as well as for the local community and society at large.

“Corporate social responsibility is related to, but not identical with, business ethics. While
CSR encompasses the economic, legal, ethical, and discretionary responsibilities of
organizations, business ethics usually focuses on the moral judgments and behavior of
individuals and groups within organizations. Thus, the study of business ethics may be
regarded as a component of the larger study of corporate social responsibility.”

-Carroll and Buchholtz

Law
Under the Companies Act, 2013, any company having a net worth of rupees 500 crore or
more or a turnover of rupees 1,000 crore or more or a net profit of rupees 5 crore or more
should mandatorily spend 2% of their net profits per fiscal on CSR activities.The rules came
into effect from 1 April 2014.

1. Personal Code of Ethics


A man’s personal code of ethics that is what one considers moral is the foremost responsible
factor influencing his behavior.

2. Legislation
It is already stated that the Government will intervene and enact laws only when the
businessmen become too unethical and selfish and totally ignore their responsibility to the
society. No society can tolerate such misbehavior continuously. It will certainly exert
pressure on the Government and the Government consequently has no other alternative to
prohibit such unhealthy behavior of the businessmen.

3. Government Rules and Regulations


Laws support Government regulations regarding the working conditions, product safety,
statutory warning etc. These provide some guidelines to the business managers in
determining what are acceptable or recognized standards and practices.

4. Ethical Code of the Company


When a company grows larger, its standard of ethical conduct tends to rise. Any unethical
behavior or conduct on the part of the company shall endanger its established reputation,
public image and goodwill. Hence, most companies are very cautious in this respect. They
issue specific guidelines to their subordinates regarding the dealings of the company.

5. Social Pressures
Social forces and pressures have considerable influence on ethics in business. If a company
supplies sub-standard products and get involved in unethical conducts, the consumers will
become indifferent towards the company. Such refusals shall exert a pressure on the company
to act honestly and adhere strictly to the business ethics. Sometimes, the society itself may
turn against a company.
6. Ethical Climate of the Industry
Modern industry today is working in a more and more competitive atmosphere. Hence only
those firms, which strictly adhere to the ethical code, can retain its position unaffected in its
line of business. When other firms, in the same industry are strictly adhering to the ethical
standards, the firm in question should also perform up to the level of others. If the company’s
performance is below than other companies, in the same industry, it cannot survive in the
field in the long run.

FACTORS INFLUENCING ETHICS

(i) Norms:
Norms of expectations of a proper behaviour in a society. These are not requirements or
must. Example: We in India treat elder with respect. When we address our teacher we say
‘Sir’.

(ii) Beliefs:
Ethical codes of thought. Belief is an abstract thinking process. Here there is no action as in
norms. Beliefs support norms. Example: Thinking saving money, or energy.

(iii) Ethos:
Characteristics of a community or of a culture. Code of values by which a group or a society
lives. Example: Generosity of a group.

(iv) Moral:
Concerns regarding principles of right and wrong. Example: It is always right to tell truth.

(v) Morality:
It is the standard that an individual or a group that knows that is good, what is right and
which is proper. Example: Since last decade political morality is decreasing in India.

(vi) Moral norms:


Are expectations of society a level of morals in the society. Example: Do not harm innocent
man.

(vii) Moral values:


Are desired level of morals. Usually these are statements, regarding describing moral
features. Example: Honesty is best policy.

(viii) Moral behaviour:


Moral behaviour is a study of right and wrong in human behaviours.

Indian value system


India is a land of values. It is the moral responsibility of every individual to take innate care
to see that these values are transcended from one generation to another. Indian values and
culture mapped to Cambridge curriculum is another academic work that is followed at Dhee,
to enable this transition of values to children. Through this initiative, we feel that, both the
heart and mind of the child is ignited with the right education, and as we propagate, every
Dheean will be a proud possessor of the heart of Buddha and brain of Einstein.
UNIT - 2

ETHICAL ISSUES IN MARKETING


Ethical issues in marketing arise from the conflicts and lack of agreement on particular
issues. Parties involved in marketing transactions have a set of expectations about how the
business relationships will take shape and how various transactions need to be conducted.
Each marketing concept has its own ethical issues, which we will discuss in this chapter.
Emerging Ethical Problems in Market Research
Market research has experienced a resurgence with the widespread use of the Internet and
the popularity of social networking. It is easier than ever before for companies to connect
directly with customers and collect individual information that goes into a computer
database to be matched with other pieces of data collected during unrelated transactions.
The way a company conducts its market research these days can have serious ethical
repercussions, affecting the lives of consumers in ways that have yet to be fully understood.
Further, companies can be faced with a public backlash if their market research practices are
perceived as unethical.
Grouping the Market Audience
Unethical practices in marketing can result in grouping the audience into various segments.
Selective marketing may be used to discourage the demand arising from these so-called
undesirable market segments or to disenfranchise them totally.
Examples of unethical market exclusion may include the industry attitudes towards the gay,
ethnic minority, and plus-size groups.
Ethics in Advertising and Promotion
In the early days of existence of corporations, especially during 1940s and 1950s, tobacco
was advertised as a substance that promotes health. Of late, an advertiser who does not meet
the ethical standards is considered an offender against morality by the law.
 Sexuality is a major point of discussion when ethical issues in advertising content are
considered. Violence is also an important ethical issue in advertising, especially
where children should not be affected by the content.
 Some select types of advertising may strongly offend some groups of people even
when they are of strong interest to others. Female hygiene products as well as
haemorrhoid and constipation medication are good examples. The advertisements of
condoms are important in the interest of AIDS-prevention, but are sometimes seen
by some as a method of promoting promiscuity that is undesirable and strongly
condemned in various societies.
 A negative advertising policy lets the advertiser highlight various disadvantages of
the competitors’ products rather than showing the inherent advantages of their own
products or services. Such policies are rampant in political advertising.
Delivery Channels
Direct marketing is one of the most controversial methods of advertising channels,
especially when the approaches included are unsolicited.
Some common examples include TV and Telephonic commercials and the direct mail.
Electronic spam and telemarketing also push the limits of ethical standards and legality in a
strong manner.
Example − Shills and astroturfers are the best examples of ways for delivering a marketing
message under the guise of independent product reviews and endorsements, or creating
supposedly independent watchdog or review organizations. Fake reviews can be published
on Amazon. Shills are primarily for message-delivery, but they can also be used to drive up
prices in auctions, such as EBay auctions.
Deceptive Marketing Policies and Ethics
Deceptive marketing policies are not contained in a specific limit or to one target market,
and it can sometimes go unseen by the public. There are numerous methods of deceptive
marketing. It can be presented to consumers in various forms; one of the methods is one
that is accomplished via the use of humor. Humor offers an escape or relief from various
types of human constraints, and some advertisers may take the advantage of this by applying
deceptive advertising methods for a product that can potentially harm or alleviate the
constraints using humor.
Anti-Competitive Practices
There are various methods that are anti-competitive. For example, bait and switch is a type
of fraud where customers are "baited" through the advertisements for some products or
services that have a low price; however, the customers find in reality that the advertised
good is unavailable and they are "switched" towards a product that is costlier and was not
intended in the advertisements.
Another type of anti-competitive policy is planned obsolescence. It is a method of
designing a particular product having a limited useful life. It will become non-functional or
out of fashion after a certain period and thereby lets the consumer to purchase another
product again.

A pyramid scheme is also an anti-competitive process. It is a non-sustainable business


model that promises the participants payment or services, mainly for enrolling other people
into the scheme; it does not supply any real investment or sell products or services to the
public.
This business practice demands the initial investor or the "captain" to enroll other people for
a fee to them who again will further enroll more people in order to be paid by the company.

Pricing Ethics
There are various forms of unethical business practices related to pricing the products and
services.
Bid rigging is a type of fraud in which a commercial contract is promised to one party,
however, for the sake of appearance several other parties also present a bid.
Predatory pricing is the practice of sale of a product or service at a negligible price,
intending to throw competitors out of the market, or to create barriers to entry.

ETHICAL ISSUES IN HR

Of all the organisational issues or problems, ethical issues are the most difficult ones to
handle or deal with. Issues arise in employment, remuneration and benefits, industrial
relations and health and safety.

Diagrammatic representation of HR Ethical Issues

. Employment Issues:
HR professionals are likely to face maximum ethical dilemmas in the areas of hiring of
employees.

Major challenges in this area are:


a. Pressure to hire a friend or relative of a highly placed executive.

b. Faked credentials submitted by a job applicant.

c. Discovery that an employee who has been with the organisation for some time, is skilled
and has established a successful record, had lied about his educational credentials.

2. Cash and Incentive Plans:


Cash and incentive plans include issues like basic salaries, annual increments or incentives,
executive perquisites and long term incentive plans:

Basic Salaries:
HR managers have to justify a higher level of basic salaries or higher level of percentage
increase than the competitors to retain some employees. In some situations, where the
increase is larger than normal they have to elevate some positions to higher grades. Annual
increment/incentive Plans. This situation is particularly true in case of top management
executives. The fear of losing some outstanding executives, the HR managers is forced to
give higher incentives to them than what the individuals actually deserve.

Executive Perquisites:
In the name of executive perquisites, sometimes excesses are often committed, the ethical
burden of which falls on the HR managers. Sometimes the costs of these perquisites are out
of proportion to the value added. For example, the CEO of a loss making company buys a
Mercedes for his personal use or wants a swimming pool built at his residence.

Long term incentive Plans. Long term incentive plans are to be drawn by the HR managers in
consultation with the CEO and an external consultant. Ethical issues arise when the HR
manager is put to pressure to favour top executive interests over the interests of the other
employees and the investors.

3. Employees Discriminations:
A framework of laws and regulations has been evolved to avoid the practices of treatment of
employees on the basis of their caste, sex, religion, disability, age etc. No organisation can
openly practice any discriminatory policies, with regard to selection, training, development,
appraisal etc. A demanding ethical challenge arises when there is pressure on the HR
manager to protect the firm or an individual at the expense of someone belonging to the
group which is being discriminated against.

4. Performance Appraisal:
Ethics should be the basis of performance evaluation. Highly ethical performance appraisal
demands that there should be an honest assessment of the performance and steps should be
taken to improve the effectiveness of employees. However, HR managers, sometimes, face
the dilemma of assigning higher rates to employees who are not deserving them; based on
some unrelated factors eg. closeness to the top management. Some employees are, however,
given low rates, despite their excellent performance on the basis of factor like caste, religion
or not being loyal to the appraiser.

5. Privacy:
The private life of an employee which is not affecting his professional life should be free
from intrusive and unwarranted actions.

HR managers face three dilemmas in this aspect:


(i) The first dilemma relates to information technology. A firm’s need for information
particularly about employees while on job may be at odds with the employee’s privacy. Close
circuit cameras, tapping the phones, reading the computer files of employees etc. breach the
privacy of employees.

(ii) The second ethical dilemma relates to the AIDS testing. AIDS has become a public health
problem. HR managers are faced with two issues: Whether all the new employees should be
subject to AIDS test and what treatment should be melted out to an employee who is affected
with the disease. It is however generally understood that since AIDS cannot be contracted by
casual and normal workplace contract, employees with this illness should not be
discriminated against and they should be allowed to perform jobs for which they are
qualified.

(iii) The third ethical dilemma relates to Whistle Blowing. Whistle blowing refers to a public
disclosure by former or current employees of any illegal, immoral or illegitimate practices
involving their employers. Generally, employees are not expected to speak against their
employers, because their first loyalty in towards the organisation for which they work.
However, if the situation is such that some act of the organisation can cause considerable
harm to the society, it may become obligatory to blow the Whistle. The HR manager is in the
dilemma how to solve this issue between the opponents and defenders of whistle blowing.

6. Safety and Health:


Industrial work is often hazardous to the safety and health of the employees. Legislations
have been created making it mandatory on the organisations and managers to compensate the
victims of occupational hazards. Ethical dilemmas of HR managers arise when the justice is
denied to the victims by the organisation.

7. Restructuring and layoffs:


Restructuring of the organisations often result in layoffs and retrenchments. This is not
unethical, if it is conducted in an atmosphere of fairness and equity and with the interests of
the affected employees in mind. If the restructuring company requires closing of the plant, the
process by which the plant is chosen, how the news is to be communicated and the time
frame for completing the layoffs is ethically important.

ETHICAL ISSUES IN INFORMATION TECHNOLOGY

The use and spread of information technologies has been revolutionized and aided with the
emergence and development of computer technologies. Electronic networks have allowed
exchange of information but it has also come with new challenges. Rights and responsibilities
in the way available information is used have given rise to some ethical dilemmas. Ethical
dilemmas greatly affect businesses and especially small businesses that may not have big
capital outlays and expertise to deal with ethical dilemmas in the utilization of technologies.
Computer Crime
Computer crimes are illegal activities performed using a computer and they include theft,
financial fraud, embezzlement, online harassment, virus infection and sabotage. Computer
crimes affect all businesses that rely on the Internet to operate. A research report in 2000 by
the FBI showed that out of all the business respondents, 85 percent had been victims of
computer crime. These crimes compromise businesses and put them at a disadvantage; for
example, the same FBI report shows that $265 million was lost to computer crime in 2000.
Small businesses suffer more crimes because they cannot afford to implement security
measures to stop the crimes, unlike the big companies. Small businesses are also reluctant to
put in security measures because they believe that hackers will mainly target big companies.
Intellectual Property
Intellectual property is the creation of a business and includes the name, designs, inventions,
images and symbols that a company uses. The success of a business largely depends on its
assets. Information technology has enabled other businesses or companies to imitate or copy
ideas from others and use it as their own. Some of these innovations are from the small- and
medium-size enterprises (SMEs), but their efforts may not be fully utilized and they don't
gain any financial benefits. This is because their inventions are unprotected and are normally
taken by big companies who can afford to quickly commercialize the service or product. To
avoid this, the SMEs should patent their innovations, thus, preventing competitors from
imitating or copying their products.
Software Piracy
Piracy is the illegal copying of software, whether knowingly or unknowingly. Software
piracy violates copyright agreements. In 2002, 39 percent of business application software
were pirated in the U.S. Software piracy can be costly, especially for corporations as it leads
to significant losses. In 2002 alone, the software industry in the U.S. lost a total of $13
billion. There may be arguments that individual piracy may not be unethical as it leads to
computer literacy and may even lead to future purchase of the software. However, the
dilemma may come in when piracy is done on a large scale, as this will lead to serious losses
for software manufacturers, especially those who are small-scale producers. Big companies
like Microsoft can hardly feel the loss as they have a way to protect their software but small-
scale businesses would greatly be affected as they are likely to incur big losses, which might
eventually lead to the closure of the business. Small business firms' incentive to continue
creating new software is also reduced as they fear their works would be pirated.
Job Displacement
The use of information technology might require less deployment of man power and this has
created ethical dilemmas by forcing some companies to reduce their workforce. Other
companies give their employees more roles than required, thus, increasing work pressure.
Forcing employees out of their jobs or giving them more work without added benefits is
unethical. Those who have lost their jobs should be compensated, but this is difficult for most
small-scale businesses because they lack sufficient resources and funds to do so.

ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

Business leaders and organizations can examine how their decisions relate to social
responsibility, which is a general concept that can include social as well as cultural, economic
and environmental issues. By integrating business ethics and principles of social
responsibility, organizations can make a difference in the world and enhance their reputation.

Some companies have adopted the social entrepreneurship model of business that focuses on
applying practical, innovative and sustainable approaches to benefit society. The shoe retailer
TOMS is one of the most popular examples of the social entrepreneurship model. For every
pair of shoes sold, the company provides a new pair of shoes to children in developing
countries.
Another example of combining business ethics and social responsibility is by focusing on
benefiting the environment. Forbes notes some of the reasons why Seventh Generation, a
Burlington, Vermont-based company that produces and distributes green products, was
recognized as the best company for the environment.
 Selling products such as biodegradable, vegetable-based cleaning products, chlorine-
free tampons and paper towels and natural lotion baby wipes.
 Developing an employee bonus program that awards workers who figure out how to
make the company’s goods even more sustainable.
 Having an LEED-certified building where more than a quarter of the company’s fleet
is comprised of low-emissions cars and more than a quarter of the energy burned in
manufacturing its products comes from renewable energy.
Business Ethics and Corporate Social Responsibility

Definition and Characteristics


Corporate social responsibility is similar to ideas of social responsibility for individuals and
businesses. Some sources provide similar definitions for the two terms, but corporate social
responsibility is a specific business approach that began in the 1950s and 1960s, with
definitions expanding in the ensuing decades.
There is no universally accepted definition of corporate social responsibility, according to the
Journal of Business Ethics, but two features can be used to differentiate corporate social
responsibility from other activities: 1) They partly or entirely benefit society and/or general
interests; and 2) they are not obligated by law. Other aspects of corporate social responsibility
can vary.
 Domains include environmental friendliness, community support, local products
promotion, fair employee treatment and more.
 Stakeholders include employees, suppliers, customers, communities, the environment,
investors and regulators.
 Policies and activities include cause-related marketing (marketing programs that
combine sales objectives and helping worthy causes), sponsorship (connecting worthy
causes to a brand or organization for money) and corporate philanthropy (charitable
donations).
Some organizations engage in corporate social responsibility activities for intrinsic reasons:
to help out and make societal contributions. Another motive is extrinsic, which relates to a
company expecting financial or other benefits for socially responsible behavior. Many studies
reflect positive organizational outcomes for corporate social responsibility activities, the
Journal of Business Ethics reports. Finally, a third motive for corporate social responsibility
activities is meeting societal expectations and stakeholder pressure.

Interaction
According to a paper in Procedia Economics and Finance, corporate social responsibility is a
subset of business ethics. This conclusion was made when viewing corporate social
responsibility under the normative stakeholder theory, or a philosophy that “affirms that
business corporations are ‘morally’ responsible to look after the concerns of a larger group of
stake holders which could include owners, customers, vendors, employees and community
rather than its stockholders.” Some sources define stakeholders as groups that the
organization depends on for its existence.
In this context, corporate social responsibility becomes synonymous with the duties and
relationship between the business and the environment that facilitates its existence. And thus,
it is not enough to cover certain ethical practices in businesses. For instance, corporate social
responsibility does not include the ethicality of how the organization pursues profits or
subscribes to political associations.

Corporate social responsibility is related to business ethics, but the former is a narrow topic
within the latter area. Businesses should use corporate social responsibility along with
processes like corporate governance, corporate outreach and politics, business process
redesign and corporate strategy to reconcile with the ethicality of doing business, according
to Procedia Economics and Finance.
Applying Ethics to a Career in Business

Business professionals should have a solid grasp of ethical practices for their careers. Grace
College’s business programs are rooted in sound moral and ethical approaches to business,
with a focus on Christian servant leadership.
Grace’s fully online Bachelor of Science in Business Administration focuses on the skills and
tools graduates need to adapt and excel in the business world. This GOAL (Grace
Opportunities for Adult Learners) program is designed for students balancing personal
commitments while pursuing an education. It is priced substantially below most degree
completion programs and can be completed in as little as 16 months.
Grace’s fully online Master of Business Administration provides students with a strong
foundation in marketing, accounting, finance and human resources as well as coursework in
entrepreneurship. This program can help graduates pursue leadership opportunities in
business.

UNIT – 3

MANAGEMENT LESSONS FROM RAMAYANA

Be it business or human activity, the act of bringing people together, popularly known as
‘management’, is broadly defined by five functions—Planning, Organizing, Leading,
Organizing, and Coordinating.

Management books and journals may appear to be an en vogue trend. However, the actuality
of the same finds its roots in eras that epically existed ages ago. Seers like Tulsidas and
Valmiki through Ramayana brought sure-shot management lessons to fore for all and sundry
in the contemporary entrepreneurial era.

1. Provide a concrete vision to followers

Like Rama, it is important for all the employers to set and share vision with the followers.
This would enable motivation in them to perform because there would be clarity of goals.
Even Rama shared vision of bringing Sita back home and for the same he delegated various
responsibilities; he sent some as search parties and asked some others to work on the bridge
construction.

2. Believe in the ability of subordinates to achieve an aim and inspire them to do so

Against the sophisticated army of Ravana that had vanquished many kings and celebrated a
past of defeating devtas, Rama led a multitude of aboriginal tribes which could not be called
anything more than a rag-tag army. Even after the constant mocking and jeering, Rama
instilled confidence and sustained faith in his troops against the seemingly impossible-to-
defeat demonic fleet of Ravana. A leader’s trust in his team is paramount.

3. Treat all people equally


Unlike many princes of that time, Rama mingled with everyone alike regardless of the
prevalent norms of lower and upper strata. The untouchability issue never touched him and
this helped him strike associations among fishermen and tribal folks as well; this brings us to
a very important learner tip: Equality results in loyalty.

4. Stand courageously in the face of great adversity

Following Sita’s kidnap, Rama wandered penniless in the forest. Ramayana speaks of pretty
vivid details of Rama’s sadness in Sita’s absence. However, this did not stop him from
forging ties with Sugriv and others even in the face of a dilemma when the enemy was
unknown.

5. Stand for morality but do not engage in judgmental posturing

Well known for his moral code, Rama endeavored to stand forth for the values he projected.
But nowhere in Ramayana, was he depicted as a blind puritan who only wanted his code of
conduct in place and rest all be banished. No! Rama was a person of resolve. He chose to
suspend judgment at all times. His value systems were different even from his father; Rama
had one wife while many other kings including his own father had several. A leader who
gives way to creativity as an open field to his team mates is revered more as ‘suspending
judgements’ is still the way to go!

6. Consult subordinates on important matters and allow them to give their opinions
freely

When Vibhishan ratted out on Ravana, Rama vowed to protect him. He consulted his army
chiefs and many suggested Rama that a demon is not to be trusted especially when he is the
brother to the culprit. Instead of chiding or rebuking their ideas, Rama neutralized their
incredulity and convinced them in his favor. This brings out a very important lesson as
everybody felt heard. He empowered his subordinates. Reducing the power differential
between an employer and an employee can work wonders.

7. Follow a code of ethics and be ready to sacrifice to follow it

Underpinning the Utopic way of life, Rama chose ethical decision making process in all areas
of his life. Many-a-leader build credibility first with sacrifice first to resort to unethical means
later. The generation that fought for the nation's independence degenerated into wheelers and
dealers after acquisition of power. The political leaders now continue to speak of their
glorious ancestral past while seeking votes. Under the surface of that vote appeal, they always
seek to hoodwink the multitude in the name of past sacrifices. Rama never did so. The
overconfident Ravana on day one was disarmed by Rama’s chivalry but he was allowed to
return safely to his citadel unharmed because Rama believed that an unarmed individual must
not be attacked.

Thus experiential learning embedded in Ramayana has a lot to teach the upcoming startups
than just some MBA prosaic lessons. 

MANAGEMENT TEACHINGS FROM MAHABHARTA

If you want to be the best leader, Mahabharata should be your guide. You may think that the
Indian epic is obsolete and archaic, but you’d be surprised to know how much relevance it
holds in today’s world, especially when it comes to your work life. Here are 7 management
lessons you must learn from Mahabharata today.

Seize Every Opportunity


Look out for opportunities outside your scope of work. Never hassle yourself too much with
the motive of defeating your competitor. Rather, invest all energies on a bigger goal – to add
strength and power to your business.

Win Allies
Five brothers won against a hundred. How do you think Pandavas did that? The relationships
they established over the years paid off. You may be busy focussing on your own growth at
the present, but you must start reaching out to more people and making allies. They will push
you forward when the time comes.

Distribute Work
The more people you have, working towards different goals, the more efficient the output is
going to be. One-man leadership strategy didn’t work for Kauravas and there is no way it’s
going to work for you.

Know How To Build Team Spirit


Kauravas were plenty in number but null in strength. Make your team work towards a single
goal instead of personal ones. Take contributions from everyone. Hear everyone out; make
them learn how to work with each other.

Give Your Team Individual Goals


Allot individual goals to each team. This will help build up enthusiasm and in turn, help you
in the longer run. Even though Pandavas were working towards the same ultimate goal, they
had individual roles in the battle too.

Commitment – Keep It Strong

Once you’re up for a challenge, do not back out. Had Pandavas fretted about being negligible
in number in comparison to the Kauravas, they would’ve never even tried. Determination and
commitment will surely take you a long way.

Know Every Member’s Potential

If you’re going to manage a team, you better know what role they suit the best. Pandavas
knew how to harnesses energies from each man in their army. You should be smart enough to
use your team’s ability and potential to the maximum.

Women Empowerment
Kauravas were all patriarchal structure. Gandhari was not heard and there was no
participation of women in decision-making. On the other hand, Pandavas relied heavily on
their women for advice: be it Kunti, Draupadi, or the mothers of other warriors like Hidimba
(Bheema's wife) and Subhadra (Arjuna' wife).
Leadership
Kauravas had a one-man leadership hierarchy. The whole of the army was under one person's
command. On the other hand, Pandavas had different generals directing the operation

Bhagavad Gîta And Managerial Effectiveness

 Now let us re-examine some of the modern management concepts in the light of the Bhagavad Gîta
which is a primer of management by values.

 Utilisation of Available Resources

 The first lesson in the management science is to choose wisely and utilise optimally the scarce
resources if one has to succeed in his venture. During the curtain raiser before the Mahabharata War
Duryodhana chose S'rî Krishna's large army for his help while Arjuna selected S'rî Krishna's wisdom
for his support. This episode gives us a clue as to who is an Effective Manager.

 Attitude Towards Work

 Three stone-cutters were engaged in erecting a temple. As usual a H.R.D. Consultant asked them
what they were doing. The response of the three workers to this innocent-looking question is
illuminating.

 'I am a poor man. I have to maintain my family. I am making a living here,' said the first stone-
cutter with a dejected face.

 'Well, I work because I want to show that I am the best stone-cutter in the country,' said the second
one with a sense of pride.

 'Oh, I want to build the most beautiful temple in the country,' said the third one with a visionary
gleam.

 Their jobs were identical but their perspectives were different. What Gîta tells us is to develop the
visionary perspective in the work we do. It tells us to develop a sense of larger vision in one's work
for the common good.

 Work Commitment

 The popular verse 2.47 of the Gîta advises non- attachment to the fruits or results of actions
performed in the course of one's duty. Dedicated work has to mean 'work for the sake of work'. If we
are always calculating the date of promotion for putting in our efforts, then such work cannot be
commitment-oriented causing excellence in the results but it will be promotion-oriented resulting in
inevitable disappointments. By tilting the performance towards the anticipated benefits, the quality
of performance of the present duty
What obligations/duties does the employee owe to their employer?

These may be explained in the contract of employment, but the law also says that there are
certain obligations and duties owed by an employee to their employer, even if the contract
does not mention them. These include:
 
1. To do what a reasonable employee would do in any situation.
2. Duty to be honest 
3. Not to disrupt business, for example, taking part in industrial action.
4. Disclose wrongdoing (does not include "spent" convictions). But, the employee must
disclose wrongdoing by other employees, even if this will incriminate them.
5. Carry out and follow orders of the employer, (as long as they are legal). 
6. Not to disclose the employer's confidential information.
7. Work with reasonable care and skill.
8. Look after the employer's property if using it.
9. Not to compete in business against the employer while still working for them as an
employee. 
10. Not to take bribes. 
11. Be prepared to change when the job changes, for example, if computers or other
machinery are introduced to help the employee do their job. 
12. Give any inventions to the employer if these are developed by the employee during their
employment

What Responsibilities Does a Business Have Toward Its Employees?

A small business choosing to hire employees inherits a series of responsibilities mandated by


both the federal and state government. These responsibilities range widely from paying
workers appropriately to making a business as safe as possible. An employer electing to shirk
these responsibilities could incur costly civil liability and lose business licenses and permits.
Wages and Taxes
You have a responsibility to pay employees of your small business at least the minimum
hourly wage in your state and to pay each employee money owed from working per pay
period, including overtime, sick leave and vacation wages. Paychecks should always be on
time and without delay so your workers can meet individual financial obligations. The IRS
and state government also requires you to pay Medicare, Social Security, state and federal
taxes out of employee wages for each employee working for your small business.
Workplace Safety Standards
The federal government requires you to maintain a safe working environment for your
employees as per the standards for your small business's industry set forth by the
Occupational Safety and Health Administration. You must also make employees aware of
areas in your business that have a high risk for injury and train your employees in safety
procedures to minimize the risk of injury. Ensuring each employee is using tools and
equipment safe for your small business's particular industry is also your responsibility as a
business owner. Continual inspection of your facilities and employee knowledge of safety
standards is necessary to make certain your workplace remains as safe as possible.
Workers' Compensation Insurance
Despite your best efforts to maintain a safe working environment, accidents will happen.
When injuries occur through no fault of your employees, it's your responsibility to file a
claim with your workers' compensation insurance provider. This coverage provides for
medical care and wage replacement for your injured employee. You must treat your injured
employee with respect and file the claim without attempting to cause a delay in processing or
attempt to deter the worker from filing a claim at all. This is illegal and can cost you hefty
fines and possible jail time if you refuse to honor your commitment and requirements as a
business owner.
Positive Working Climate
Employees of your small business don't have to be cheery, but the environment shouldn't
encourage workers to harass each other in any way. It is your responsibility as a small
business owner to create a working climate that fosters respect and fair treatment of every
employee regardless of age, race, gender, ethnicity, country of origin, disability or religion.
Never ignore employees who come to you with problems of harassment. Confronting these
issues directly can help you avoid a costly civil lawsuit from allowing a climate of
harassment in your workplace.
Whistle blowing

Whistle-blowing, term used to characterize the activities of individuals who, without


authorization, reveal private or classified information about an organization, usually related
to wrongdoing or misconduct.

A whistleblower (also written as whistle-blower or whistle blower)[1] is a person who


exposes any kind of information or activity that is deemed illegal, unethical, or not correct
within an organization that is either private or public.[2] The information of alleged
wrongdoing can be classified in many ways: violation of company policy/rules, law,
regulation, or threat to public interest/national security, as well as fraud, and corruption.[3]
Those who become whistleblowers can choose to bring information or allegations to surface
either internally or externally. Internally, a whistleblower can bring his/her accusations to the
attention of other people within the accused organization such as an immediate supervisor.
Externally, a whistleblower can bring allegations to light by contacting a third party outside
of an accused organization such as the media, government, law enforcement, or those who
are concerned. Whistleblowers, however, take the risk of facing stiff reprisal and retaliation
from those who are accused or alleged of wrongdoing.
Because of this, a number of laws exist to protect whistleblowers. Some third party groups
even offer protection to whistleblowers, but that protection can only go so far.
Whistleblowers face legal action, criminal charges, social stigma, and termination from any
position, office, or job. Two other classifications of whistleblowing are private and public.
The classifications relate to the type of organizations someone chooses to whistle-blow on:
private sector, or public sector. Depending on many factors, both can have varying results.
However, whistleblowing in the public sector organization is more likely to result in criminal
charges and possible custodial sentences. A whistleblower who chooses to accuse a private
sector organization or agency is more likely to face termination and legal and civil charges.

CORRUPTION
Corruption has been spread like a disease all over the India as well as abroad. It has become
one of the most speedily increasing social issues in the Indian society. It is generally initiated
and promoted by the opportunistic leaders. They never think about the nation’s benefits and
do lots of damage to the nation through their corruption even for their small advantage. They
sell their country properties in the wrong hands and spread wrong beliefs about India in the
people’s mind living in other countries.
They are spoiling the old traditions and cultures of India for their personal benefits. Now-a-
days people who are working in right direction using right principles considered as foolish in
the modern society and the people who are working wrong and making wrong promises are
good for the society. However, in turn it is true that corrupted people cheating the simple,
ordinary and innocent people. They are ruling the mind of innocent people.

Corruption increases in India day by day because there is a strong connection between the
officials, politicians and criminals who are making this country weak and so weak. India got
independence in 1947 and it was slowly becoming strong and developing but in the mid way
the disease of corruption started and stop India to grow ahead. In India there has been a trend
of give and take means give some money in order to get your work done whether in the
government offices or private sectors offices. And now the condition is getting worse and
worse, as earlier, the money was paid for getting wrong works done or only work to be done,
but currently money is paid for getting works done in right ways and at right time. Even after
paying complete money according to the demand, there is no full chance of getting things
done at time and in right way.

Corruption is everywhere in every department whether it hospitals, education, job,


government offices, nothing is left of corruption. Everything has become a business and the
source of earning money in wrong way. Educational institutions are also involved in the
corruption and they give seat to those students only who have paid for, whether they are good
students with good marks or not. Very weak students are given admission in the top colleges
and universities only on the basis of money paid for wrong admission and the topper student
with good marks and lack of money gets back in the life or take admission in any simple
college.

Now-a-days, private sectors companies are so good in comparison to the governmental jobs.
Private companies are giving job on the basis of candidate’s skills, ability, technical
knowledge, good percentage of marks and all the educational records. However, it has
become tough to get job in the government offices as they need lots of bribe to give any type
of job (high level or low level) like teaching, clerk, babu, nurse, doctor, sweeper, etc. And the
amount of bribe increases in the market as the level of job increase like IAS, PCC, police, etc
ranks jobs.

BRIBERY
In general terms, bribery means exchange of cash, material or goods in return of a favour
that is otherwise impossible or hard to attain. However much we say that we are against
bribery, against giving or taking any kind of bribe, deep down we all know that we are either
accepting or offering bribe in a way or the other.
It is nearly impossible to find a person who has neither given nor accepted any kind of bribe
in his entire lifetime. If you want your kid to get admitted in a better school, you offer bribe,
if you want a seat allotted in a train, you offer bribe, if you want to get rid of the crimes you
have committed, you offer bribes; as a matter of fact, there is no area in life where you do not
offer bribes.

In fact you even bribe your child with a chocolate or two to get the work done. Bribery thus
starts from the household itself. When a child will see his or her parents offering bribe, what
outcome do you expect. The most important reason for corruption especially in India is the
never-ending chain of bribes that are offered and accepted throughout the country.

All we talk about is equality of all the citizens, allowing equal opportunity to one and all in
matters of education and employment and the like. But this equality is impossible to achieve
especially where an individual takes away the opportunity of another individual just to fulfil
his own self- interest. You are obviously taking away the seat of a deserving individual when
you offer huge sums of money to get an admission in your favourite Medical College. It is the
government of a country which can make or break this bribery system.

But in a country like India where bribery is the major source of income of most of the
government officials and public servants, we cannot expect the government itself to do away
with this corrupt practice. But the citizens cannot complain that the government and
government officials are involved in the corrupt practice of bribery because it is the citizens
who offer bribe to these public servants. If the citizens themselves stop offering bribes, the
roots of bribery will diminish in no time.

It is essential for parents at home and teachers in school to teach the children the importance
of honesty so that they do not offer or accept bribes in their lifetime. Slowly but steadily, the
practice of offering and giving bribes can be eliminated from its very roots if people join
hands and take an oath to eliminate this practice by hook or by crook. But the bitter truth
remains; we ourselves cannot imagine our life free from this practice so how do we expect to
abolish it completely.

CRUELTY TO ANIMALS

All living things have a right to live on this Earth but, we, very often become, totally,
insensitive to their pain, only because animals can’t speak the language of humans, they don’t
have a voice
When God created this planet he had a specific purpose for all living things and He did so to
strike a balance in his creation. He wanted a world where harmony and peace prevailed and
so He made the ‘Food Chain’ why maintains the ecological balance in Nature but Man in his
greed ha recklessly been plundering the natural abode of animals, killing the!
Indiscriminately for pleasure, for food, for their skin and other parts of the body, and training
some to serve his needs.

Cruelty to animals, also called animal abuse or animal neglect, is both the unintentional
(animal neglect) and the intentional infliction by humans of suffering or harm upon any non-
human animal, regardless of whether the act is against the law. More narrowly, it can be the
causing of harm or suffering for specific achievement, such as killing animals for food or for
their fur; opinions differ about the extent of cruelty associated with a given method of
slaughter. Cruelty to animals sometimes encompasses inflicting harm or suffering for
personal amusement, as in zoosadism.

Laws concerning animal cruelty are designed to prevent the needless cruelty. Divergent
approaches to such laws occur in different jurisdictions throughout the world. For example,
some laws govern methods of killing animals for food, clothing, or other products, and other
laws concern the keeping of animals for entertainment, education, research, or pets. Cruelty
to animals is not necessarily the same thing as disrespect towards animals.

In broad terms, there are three conceptual approaches to the issue of cruelty to animals. The
animal welfare position holds that there is nothing inherently wrong with using animals for
human purposes, such as food, clothing, entertainment, and research, but that it should be
done in a way that minimizes unnecessary pain and suffering, sometimes referred to as
"humane" treatment.

Utilitarian advocates argue from the position of costs and benefits and vary in their
conclusions as to the allowable treatment of animals. Some utilitarians argue for a weaker
approach which is closer to the animal welfare position, whereas others argue for a position
that is similar to animal rights. Animal rights theorists criticize these positions, arguing that
the words "unnecessary" and "humane" are subject to widely differing interpretations, and
that animals have basic rights. They say that the only way to ensure protection for animals is
to end their status as property and to ensure that they are never used as commodities.

ENVIRONMENTAL ETHICS

Moral principles that try to define one’s responsibility towards the environment are called
“environmental ethics” or ‘environmental philosophy’ which considers the ethical
relationship between human beings and the natural environment.
The inspiration for environmental ethics was the first Earth Day in 1970 when
environmentalists started urging philosophers who were involved with environmental groups
to do something about environmental ethics. A growing trend has been to combine the study
of both ecology and economics to help provide a basis for sustainable decisions on
environmental use.

Environmental ethics try to define the moral basis of environmental responsibility.


Environmental issues require a consideration of ethics and morals. For example, because
there is currently enough food in the world to feed everyone adequately, it is unethical to
allow some people to starve while others have more than enough. However, the predominant
mood of those in the developed world is one of indifference. They don’t feel morally bound
to share what they have with others.

Ethical Guidelines to Work with Earth:


Various ethicists and philosophers proposed the following ethical guidelines to work
with the earth (Miller 1996).
Ecosphere and Ecosystems:
ADVERTISEMENTS:
1. We should not deplete or degrade the earth’s physical, chemical or biological capital,
which supports all life and all human economic activities.

2. We should try to understand and cooperate with rest of the nature.

3. We should work with rest of the nature to sustain the ecological integrity, biodiversity and
adaptability of the earth’s life support systems.

4. When we must alter nature to meet our needs or wants, we should choose methods that do
the least possible harm to us and other living things.

5. Before we alter nature, we should carry out an Environmental Impact Assessment to


evaluate proposed actions and discover how to inflict the minimum short – and long-term
environmental harm.

Species and Cultures:


1. Every species has a right to live or at least struggle to live. Simply because it exists.

2. We should work to preserve as much of the earth’s genetic variety as possible because it is
the raw material for all future evolution.

3. We have the right to defend ourselves against individuals of species that do us harm and to
use individuals of species to meet our vital needs but we should strive not to cause premature
extinction of any wild species.

4. The best way to protect species and individuals of species is to protect the ecosystem in
which they live and to help restore those we have degraded.

5. No human culture should become extinct because of our actions.

Individual Responsibility:
1. We should not inflict unnecessary suffering or pain on any animal we raise or hunt for food
or use for scientific or other purposes.

2. We should use no more of the earth’s resources than we need and not waste such
resources.
3. We should leave the earth as good as—or better—than we found it.

4. We should work with the earth to help heal ecological wounds we have inflicted.

Euthanasia and assisted suicide

Assisted suicide: Is it an act of compassion?


The definitions of euthanasia and assisted suicide vary.

One useful distinction is:

Euthanasia: A doctor is allowed by law to end a person's life by a painless means, as long as
the patient and their family agree.

Assisted suicide: A doctor assists a patient to commit suicide if they request it.

Voluntary and involuntary euthanasia

Euthanasia can also be classed as voluntary or involuntary.

Voluntary euthanasia is conducted with consent. Voluntary euthanasia is currently legal in


Belgium, Luxembourg, The Netherlands, Switzerland, and the states of Oregon and
Washington in the U.S.

Involuntary euthanasia is euthanasia is conducted without consent. The decision is made by


another person, because the patient is unable to make the decision.

Passive and active euthanasia

There are two procedural classifications of euthanasia:

Passive euthanasia is when life-sustaining treatments are withheld. The definitions are not
precise. If a doctor prescribes increasing doses of strong painkilling medications, such as
opioids, this may eventually be toxic for the patient. Some may argue that this is passive
euthanasia.

Others, however, would say this is not euthanasia, because there is no intention to take life.

Active euthanasia is when someone uses lethal substances or forces to end a patient's life,
whether by the patient or somebody else.

Active euthanasia is more controversial, and it is more likely to involve religious, moral,
ethical, and compassionate arguments.

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