WHAT IS ETHICS?

Ethics, also known as moral philosophy,

and is a branch of philosophy that involves
systematizing, defending and recommending
concepts of right and wrong conduct. The
term comes from the Greek word ethos,
which means "character". In philosophy,
ethics studies the moral behavior in humans
and how one should act.
What is Ethics?

Ethics:
 is a branch of philosophy.

 is a normative science because it is concerned with

the norms of human conduct

as a science, it must follow the same path of logical

reasoning as other sciences.

as a science, involves systemizing, defending and

recommending concepts of right and wrong behavior.
HISTORY, SOURCE & DEVELOPMENT OF BUSINESS ETHICS
Nature of ethics
 The concept of ethics deals with human beings
only. Only human beings are endorsed with the
freedom of choice.
 The study of ethics has become a set of systematic
knowledge about moral behavior and conduct;
study is a science – a field of social science.
 Ethics is a normative science –concerned with an
judgment of ‘what ought to be’
 Ethics deals with human conduct which is
voluntary and not forced by persons or
circumstances. Eg: a cold blooded murder.
Nature of ethics
 Business ethics is nothing but the application of
ethics in business.
 Business ethics can be, and has been, ethical
and can still make profits.
 More interests shown today in the application of
ethical practices in business dealings and the
ethical implications.
 Profit maximization and discharging of social
responsibilities at the maximum limit cannot be
done simultaneously as they are at the opposite
ends.
Nature of ethics
 By introducting advanced technology to
replace occupations of age-old
inhabitants is an ethical dilemma. Many
managerial decisions have ethical
implications and these decisions give
rise to managerial dilemmas.
Scope of ethics
 BE is simply applying the basics principle
of ethics to the field of business.
 short-cuts can bring benefits in the short
run but only good values bring long run
and sustainable results.
 BE is not just the compliance to law. One
firm can observe the law but can be
unmindful of fair practices. Eg contract
labour
 The business ethics programmes and
policies should be top driven.
Scope of ethics
 BE is not just related to an individual but
to the whole organization. It is
concerned with a group that involves in
all activities of businesses line
production, purchase selling, financing
and management.
 BE is shifting the focus from
shareholders to stakeholders. Holistic
and benefits all.
What is Business Ethics?

Business ethics is the application of

general ethical ideas to business
behavior.

It is based on the principle of integrity and fairness

and concentrates on the benefits to the stakeholders,
both internal and external. Stakeholder includes
those individuals and groups without which the
organization does not have an existence. It includes
shareholders, creditors, employees, customers,
dealers, vendors, government and the society.
Definitions of business
ethics
 In the simplest term ,business ethics are
moral (principles that define right and
wrong behavior) in the world of business.
What constitutes right and wrong
behavior in business is determined by
the public interest groups, and business
organization, as well as an individual’s
personal morals and values.
Characteristics of business
ethics
 Each and every person is individually responsible
for the ethical or unethical decisions. The way in which
the person is brought up, the values learnt and the
working atmosphere decides the ethical standards of
people. Many times uneducated people are more
ethical than so called the educated class.
 Ethical decisions are voluntary in nature and
people have the freedom of choice and free will. The
conscience of people may vary from time to time and
place to place. The choice is left to the individual. It is
the free will that makes the successful implementation
of ethical standards and practices.
Characteristics of business
ethics
 Ethical decisions may vary from person
to person time to time and place to
place. Due to social economic changes
the ethical decisions also change. What
is considered good now will be
considered bad at another point of time.
Eg customer care
 Ethical decisions affect a widespread
way. Like the stakeholders, employees
and customers. These ethical decisions
spread to other firms across the region,
Characteristics of business
ethics
 Ethical decisions involves a trade off
between the cost and benefits received.
Some decisions may be costly in the
short run but will be beneficial in the
long run.
 The effects of Ethical decisions cannot
be predicted as it changes from time to
time. As the decisions are taken by
taking into consideration various factors.
(population ,buss pracs).Eg disclosure
norms(traditional vs modern)
Characteristics of business
ethics
 The lower level management are pressurized to
compromise their ethical standards. Many
young people join the business organizations
with great ideas but fail in the long run.
 In most organizations people experience ethical
dilemmas. Happens when values conflicts.
 ETHICS has to taught to the managers at
corporate doors. Given opportunities to analyze
various situations. Which will boost the moral
climate of the organization.
Principles of Professional Ethics

The basic principles people are expected to

follow in their professional career are the
following:
• Impartiality: Objectivity;
• Trustworthiness and honesty;
• Openness: Full Disclosure;
• Confidentiality: Trust;
• Due Diligence (careful and persistent work or effort) : Duty
of care;
• Fidelity to professional responsibilities; and
• Avoiding potential or apparent conflict of interest
Principles of Personal Ethics

Personal ethics refer to the application of

values in everything one does.
Principles of personal ethics include:

1. Concern for the well being of others;

2. Respect for the autonomy of others;
3. Trustworthiness and honesty;
4. Willing compliance to law;
5. Basic justice: being fair;
6. Refusing to take unfair advantage;
7. Benevolence: doing good; and
8. Preventing harm to any creature.
What is not Business Ethics?

1. Ethics is different from religion

2. Ethics is not synonymous with law
3. Ethical standards are different from
cultural traits
4. Ethics is different from feelings
5. Ethics is not a science in the strictest
sense of the term
6. Ethics is not just a collection of values
Code of Conduct and Ethics for Managers

 Managers must observe the following

ethical values while performing their duties:

• Impartiality
• Responsiveness to public interest
• Accountability
• Honesty
• Transparency
• Integrity
Importance of business
ethics
 Social concern: any business operating in a business has a
moral responsibility of giving back to society in terms of
welfare schemes and projects. No society can afford to be
greedy. No business can be called an island. Business is a
part and parcel of any society.
 Social responsibility: refers to a firms obligation to
maximize its positive impact on stakeholders and to
minimize its negative impact. There are four areas of social
responsibility, economical, legal, ethical and philanthropic.
At the basic level, business firms have an economic
responsibility to be viable and profitable so that all
stakeholders are rewarded. Adherence to legal practices
promotes welfare to all. Ethical principles provide a
foundation for the best practices of business.
Importance of business
ethics
 Avoidance of whistle blowing-
 refers to the act of employee's who to the
public with complaints of corruption or
mismanagement in business organization.
Every employee has certain expectations to be
fulfilled by the organization.
when an employee feels that something is
unfair in the organization, he nurses grievance.
Effective handling of grievance is an ethical act.
The management should feel the pulse of the
employees.
Importance of business
ethics
 Value in business: business ethics promotes good
business by generating support both within and outside the
organization. All the stakeholders develop a legitimate
interest in the growth and development of business.
Business ethics add value because its effects are felt by all
the shareholders.
 Improves organizational effectiveness: during the
process of the growth, the organizations experience
different challenges and problems. Every problem should
not be considered as an ethical challenge and every
challenge should add a learning curve to the organization.
Ethical organizations promote standard training for the staff
including time management and effective communication.
Ethics offers holistic approach to business development.
Importance of business
ethics
 Healthy competition: business ethics offers competitive
guidelines so that all the firms can follow good business
practices. There is lesser room for exploitation of either the
customer or the employees. In short, business is a
cooperative activity and ethical behavior alone can promote
an ideal co-operative behavior.
 Benefit for stakeholders: originally business was meant
to bring good returns only to investors. In modern times the
importance of all the stakeholders has been recognized
from the ethical angle. Apart from shareholders, employees,
customers, suppliers and the members of the community
should be benefitted. Real type situations (Tata Steel and
Infosys) show that use of ethical practices in business creates
high returns for companies.
ARGUMENTS FOR BUSINESS ETHICS

It is said that good business ethics

promotes good business. A highly ethical
and integrated organization can get the
following benefits.
 CREATES RAPPORT WITH PUBLIC-

highly ethical and integrated

organization is honored and respected
by public even if they have intimate
knowledge of its actual working. Indian
chambers of commerce towards the
companies which reflect their sense of
ARGUMENTS FOR BUSINESS ETHICS

 DEVELOP MUTUAL FAITH BETWEEN

MANAGEMENT AND EMPLOYESS: in
an highly ethical organization employees
bring together leadership and efficiency
to achieve common goals. They feel
satisfied and a sense of oneness. So
when the management knows how their
employees think and how they react to a
situation accordingly they set the
framework.
ARGUMENTS FOR BUSINESS ETHICS

 ECONOMIC SUCCESS AND

DEVELOPMENT-Economic consideration
are very important for an organization to
service. To sustain profits in the long run,
organisations must have a sound ethical
base. Ethical conduct of business leads
to development and success.following
ethical principle may not bring good
results in the short term but they will
surely have positive impact in the long
run. Eg: eco friendly products
ARGUMENTS FOR BUSINESS ETHICS

 POSITIVE CONSEQUENCES- ethics in business

develops trust and lays foundation for
relationship development and positive future
interactions. Every business depends on
acceptance of rules, mutual trust and fairness,
ethical business is regarded as good business.
Whereas unethical business practices cause
trouble to the business and the people in one way
or the other. Adopting ethical behavior in an
organization not only increases its goodwill but
also it leads to positive consequences in the long
run.
ARGUMENTS AGAINST BUSINESS
ETHICS

Following are some of the arguments

against business ethics:
 Perfectly competitive markets

ensure social benefits: in a perfectly

competitive market every business
concern will produce what is required by
the society and will do it with most
efficient resources to stay in
competion.so there is no need to forcibly
ethical values in business.
ARGUMENTS AGAINST BUSINESS
ETHICS

 Manager’s obligation towards the company: it has

been stated that the managers should work for the best
interest of the company and not pursue any other
consideration on ethical grounds. More concentration
should be given towards the financial interest of the
business and not to be sidelined by doing good to the
society.
 Ethics versus profitability: business exits to make
profits and when ethics conflict with profit, business always
chooses profits over ethics. Discussion about business
ethics often brings forward the dilemma of ethics versus
profitability. Therefore it is a war or at least a trade off in
which you can only have more of one at the expense of the
other.
ARGUMENTS AGAINST BUSINESS
ETHICS

 Business ethics is merely restricted

to obeying the laws-another argument
is that businessmen take ethics as an act
to follow the law. As its know law and
ethics are not identical. When business
firms restricted themselves to just
abiding law they can be legally right but
they may not be ethically right and
morally responsible.
Factors influencing
business ethics
 Leadership: business is all about the interaction
of the customers,suppliers,employess,financiers
and managers. Greater the effectiveness of
interaction ,higher is the success. An effective
leadership is very much required for the success
of business. If a leader is strong and follows good
skills, he will attain success in his goals. A value
based leader can lead others on the basis of
sound values and effective processes. For e.g.
Johnson and Johnson responded to the Tylenol
incident after it held a series of challenge meeting
all around the world.
Factors influencing business ethics

 Strategy and performance: Ethics is closely related to

the strategy followed by the business organization. An ideal
strategy should not be limited to generate revenue only.
Corporate governance is the formal system of
accountability and control of ethical decisions involving the
use of resources. Business ethics and accountability are
given equal importance in the board of directors meeting.
Accountability of organizational decisions begin with
strategic mission and vision. Many investors believe in
stockholders model of corporate governance. The
stockholder model follows a strategy of social investing in
terms of which social and ethical criteria are integrated in
investment decision.
Factors influencing business ethics

 Environmental ethics: Business ethics is also

divided by a type of environment in which a
business organizations situated .There are two
aspects of environment, namely external and
internal. Internal environment refers to all aspects
like vision, mission, power structure and other
related matters, External environment refers to
elements which are outside the organization like
government policy, monetary policy, fiscal policy,
general economical conditions and labour
standards, These factors influence business
ethical practices.
Factors influencing business ethics

Corporate culture: varies from company and

time to time. It all depends on the nature of the
leader, the competition should be healthy based
on the fair rules. A good corporate culture should
take care of its shareholders employees and
customers.
culture is a body of learnt beliefs, traditions and
guides for behavior among the members of the
organization. Corporate culture includes norms,
physical setting, modes of dress, special language.
Eg: Zappos, Twitter ,Google
Factors influencing business ethics

Corporations are paying attention to ethical

programmes. An ethical programme consists of the
rules and policies of an organization by motivating
ethical performances. Rules and policies are
framed for orientation ,training, compensation,
promotion and auditing.
 Individual characteristics: the individual
characteristics influence the ethical behavior. Many
ethical issues are related to individuals. Some are
extremely ethical while some are extremely
unethical and most are between these two
extremes.
Types of ethics

TRANSACTIONAL ETHICS: man is a
social animal. He has to act and react
with others through different
transactions. The practice of ethics in all
these transactions is called as
transactional ethics. All involved parties
should reciprocate ethical practices. The
common good ethical interests are
binding all the people. It is a win-win
approach from all prospective. Eg
doctor’s treatment.
Types of ethics
PARTICIPATORY ETHICS: it is an important part of


business ethics. Guided by common good, all the

participations follow some ethical practices .The
important features of participatory ethics are:
1. All the parties like consumers producers and
employees maintain some basic ethical standards.
2. The level of participation depends on the degree
of motivation in a society.
3. Participation comes from external forces and inner
commitment. This can take place only through the
process of creating ethical awareness.
Contined…..
4. The level of participation has to be watched by all the
groups leading to mutual checks and balances. Special
attention has to be given to the least powerful and
marginalized sections of societies contribution made by
a corporation for city developments(like housing
facilities, roads etc)
5. The growth of participation indicates the level of
social development. It is the growth of solidarity in an
angle of indidividualism(the belief that the needs of
each person are more important than the needs of the
whole society or group). Many social economical
problems of developed countries are solved by the
ethical practices. Example ford foundation.
Types of ethics
Recognition ethics
 As human beings people are endowed with the
ability to understand the problems of others.
This quality leads to recognition of individuals,
institutions and societies, conflicting situations
can be solved by the correct recognition of the
situation. This requires the correct perspective
and empathy. The strong is helping the weak.
The learned is helping the lesser learned. The
experienced is helping the new entrant.
Compensation is given to the victims.
Types of ethics
 Meta-ethics –seeks to understand the
nature of ethical properties, statements,
attitudes and judgments. Generally
recognised by philosophers.
 Normative Ethics-

Study of ethical actions. Studies the

rightness and wrongness of actions. It
investigates the set of questions that arise
when considering how one ought to act.
Perspective ethics
Types of ethics
 Applied Ethics
Concerned with what people should believe
to be right and wrong.
Morally correct course of action in various
fields of human life.
 Descriptive Ethics

Study of ethical theories that prescribe

how people ought to act.
Study of people’s belief on morality
Moral and ethics
 Moral deal with the right behavior of individuals ethics
deals with the right character in the given situation.
Both are closely related to each other, some of the
basic morals like helping others treating all equally and
not cheating others are converted in terms of good
business practices.
 Morals from the foundation of the ethics which can be
applied to business. The following agreements reveal
the relationship between morals and ethics
 1. All moral standards aim at the development of
positive standards. Ethical standards aim at the
betterment at the ethical practices in the organization.
Moral and ethics
 2. If the moral standards are not followed, there
will be serious an disastrous consequences like
crimes, corruption and fraud. If ethical standards
are not adopted there will be fall in the values and
decline in the efficiency of business enterprises
 3. Both moral and ethical standards can be
established only with the active and sincere
participation of the people.
 4. Both moral and ethics give more priority to
public welfare rather than private welfare, both
strongly hold the view that society should over-
ride self-interest. A balance has to strike between
ethical demand and strategic interests.
Moral and ethics
 Both morale and ethical standards are
based on impartial considerations
bringing long term benefits. Both
discourages short-term gains and partial
benefits.
CORPORATE SOCIAL RESPONSIBILITY

 According to Business for Social Responsibility (BSR),

corporate social responsibility is defined as “Achieving
commercial success in ways that honor ethical values
and respect people, communities and the natural
environment.” Corporate social responsibility (CSR)
also called corporate responsibility, corporate
citizenship, responsible business and corporate social
opportunity is a concept whereby organizations
consider the interests of society by taking
responsibility for the impact of their activities on
customers, suppliers, employees, shareholders,
communities and other stakeholders, as well as the
environment.
Definition

According to Business for Social

Responsibility (BSR), corporate social
responsibility is defined as “Achieving
commercial success in ways that honor
ethical values and respect people,
communities and the natural
environment.”
Definition
 Lord Holme and Richard watts,
”CSR is the continuing commitment by
business to behave ethically and
contribute to economic developmet
while improving the quality of the
workforce and their families as well as of
the local community and society at
large”
Six areas of Ethics
 EMPLOYEES
 COMMUNITY
 PROVIDERS
 ENVIRONMENT
 CONSUMERS
 GOVERNMENT
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES BY COMPANIES

 ITC has been indulged in activities in rural sector by

helping the tribes to use their waste land into
productive land. It has also invested in projects like
rain water harvesting and empowering rural women
by helping them evolve into entrepreneurs.
 ITC contributes Re 1 towards CSR that supports
primary education and they use wood free fine
papers.
 Ford India partnered with Ahmadabad Ngo saath
charitable trust providing safe drinking water to
nearly 1500 children between the ages of 3 to 6
covering eighteen villages in sanand, Gujarat.
CORPORATE SOCIAL RESPONSIBILITY
INITIATIVES BY COMPANIES

 Tata motors have introduced scholarship program

vidyadhanam which supports 211 students. Out of these
students 132 students are from marginalized sections of
the society. These students get books copies and other
study materials. As a part of world environment day
celebration, Tata motors initiated a huge tree plantation
drive across India and countries in SAARC region, Africa,
Middle East and Russia.

 In 2012 Infosys launched project genesis where it

successfully trained more than 100000 students to
enhance their level of employability in the IT industry.

 In 2013 coal India limited sanctioned 16.5 crore to

government of Jammu and Kashmir for construction of
trauma centre.
 HSBC, Max New York life and standard
chartered bank encouraged their
customers to use e-statements and
receipts.
 IBM has joined hands with tribal
development of Gujarat for a
development project aimed at upliftment
of tribal in the sasan area gir forest. The
government is planning to set up a
theme resort and provide employment to
sasan tribes.
Need for CSR
 Societal approach is very important to
business organizations, which demand
that they should be responsive to the
social problem of the society.
 To establish a good corporate image,
business org include CSR as corporate
objective.
 Collaborative agreement.(sathyam)
 Legal provisions (environmental and
environmental laws)
Need for CSR
 Tax exemptions (NGO’S)
 Enhancing business image
 To position their products better and
increase their market share.
 Natural calamities and natural disasters.
(compensations and donations) Eg.
bhopal gas tragedy  US$470 million
 Organization culture eg: Tata
AUGUMENTS IN FAVOR OF CSR

 Business is a creation of the society and therefore it

should respond to the demands.
 The self interest of business id best served by

meeting the aspirations of the society.

long term interest is best served with CSR.
People who have good environment, education and
opportunity make better employees and customers.
 To improve the public image of the company.

 It is a moral thing to do- if social responsibility is

not assumed it will be take away by the society

through the government.
AUGUMENTS AGAINST CSR
 Responsibility of the government
 Conflicting consideration of private
market mechanism and social
responsibility
 Disregard of market mechanism-less
attention is paid in the allocation of the
resources
 Arbitrary power to businessmen- power
in terms of allocation of resources in the
welfare of the society. And it’s a
government responsibility where the
CSR issue of management
 Improved customer attention-
Ethical conduct of the buss exerts a
growing influence on the purchasing
decisions of the customers.
 Rising investor stress-

Most of the organizations look into the

ethical aspects of the organization
before making an investment.
 The decreasing responsibility of the

government
CSR issue of management
 Demand for greater -disclosure-from
the stakeholders.(suppliers,customeers,
government etc)
 Aggressive labour market-employees
look beyond paychesks.Hence
organizations should are forced to
improve their working conditions.
UNDER SEC 135 OF THE COMPANIES ACT
2013

 Net worth of five hundred crores or

turnover of one thousand crores or net
profit of rupees five crores in any
financial year should have CSR
committee.
 Consisting of three directors one being a
independent director.
 It is compulsory is spend 2% every
financial year of the average net profit of
the company made during the 3
immediately preceding financial years.
UNDER SEC 135 OF THE COMPANIES ACT 2013

 Preference to the local area and the

areas around which the company
operates.
 If the company fails to spend on CSR
activities it(board) should specify the
reasons for not spending.
Crisis management
 Crisis management is a systematic
approach that engages the whole
organization in efforts to avert crisis that
may affect the organization.
(OR)

 CM also refers to the application of

strategies considered to help an
organization agreement with a sudden
and significant event.
Crisis management
 The objective being to take timely decisions under extraordinary
conditions.
 And limit damage to the company in all aspects possible.

 Crisis management is both proactive(more ethical) and reactive (not

much ethical will try to avoid the responsibility as much as

possible).

 Proactive behavior aims at identification and exploitation

of opportunities and in taking action against
potential problems and threats, whereas reactive behavior focuses
on fighting a fire or solving a problem after it occurs.
 Crisis is more devastating than natural disaster or technological

disruption.
Crisis management
Companies develop crisis management
plans:-
 To respond to and recover from natural disorders.

 Prepare for ethical disaster

 Result not only in substantial legal and financial

costs.
 Disrupt routine operations.

 Paralyze employees and reduce production.

 Destroy organization reputation.

 Erode stakeholder confidence.

Crisis management
Areas of concern that some companies identify
potential risks and liability in contingency
planning for crisis management:
 Ethic/sexual harassment -35%

 Regulatory violation-39%

 Criminal conduct-36%

 Fraud -37%

 Unethical behavior -36%

 Unlawful discrimination-
Crisis management
 Falsifying records 39%
 Criminal charges -41%
 Deceiving charges -42%
 Public relation disaster-44%
 Bribery-45%
Crisis management
Crisis management best practices
include:-
 Planning in detail for response to as

many potential crisis as possible.

 Establishing monitoring systems and

practices to detect early warning signals

of any foreseeable crisis.
 Establishing and training a crisis

management team or selecting an

external crisis management firm with a
proven track record in your business
Crisis management
 Involving as many stakeholders as
possible in all planning and action stage.
Steps to prepare for crisis
management

 Clustering the type of crisis- foreseeable and

unforeseeable types of crisis. Three types
Those that the organization is ready to handle
Those which need a preparation to manage
Those which do not need preparation to manage.
 Proactive decisions and actions- can help

organizations avoid the types of crisis that pose

the most devastating threats. Well prepared
organizations formulate strategies for preparing,
enhancing and even developing new innovative
options for dealing with the unexpected.
Steps to prepare for crisis
management

 Identify organizations strengths and

weakness
Once the organization decides on the
area of crisis to prepare for, it should
assess how well it is positioned to deal
with them.
 Availability of resources
Human skills, capital, competencies,
technologies, capital resources to
manage different kinds of incidents.
Steps to prepare for crisis
management

 Evaluating existing policies and

system
Org must consider if the existing
strategies ,structures and policies would
facilitate their response to crisis. lookout
for gaps and misalignments that might
be hazardous.
 To assess organization culture

Conflict between the organization’s culture

and the value in practice.
Steps to prepare for crisis
management

 To detect early
The earlier the crisis is detected the easier
it is manage.
The challenges for the leaders are:
To create the means that will allow them
to quickly see the first signals of crisis
and their source.
To separate valid warnings from others
harmless warnings.
Crisis management
A systematic crisis management approach
can expand the competence through the
practice of clear thinking, the smooth
channeling of resources and information
access.
Examples of crisis
management
 The Pepsi Corporation faced a crisis in 1993, which
was successfully managed by the company.
 n 1993, claims of syringes being found in cans of
diet Pepsi were made.  Company urged
stores not to remove the product from shelves
while it had the cans and the situation investigated.
 Pepsi released videos and made public, showing the
production process to demonstrate that such
tampering was impossible within their factories.
 Crisis was managed through effective
communication.
Examples of crisis
management
 Bhopal gas tragedy
 Sathyam scam
 Tsunami
 Kingfisher
 EXXON VALDEZ OIL SPILL
Issues in management
Root causes of unethical behavior
 Maximization of profit

 Ethics considered only a voluntary

responsibility
 Deliberate mishandling

 Less opportunity of whistle blower

 Pressure from stakeholder

 Corruption

 Lack of social responsibility and

integrity
Emerging ethical issues in
business
Ethics in accounting information
 Creative accounting –misleading

financial statements
 Insider trading(Martha steward) and

security fraud
Executive
 BRIBERY,KICKBACKS
Emerging ethical issues in
business
ETHICS OF HUMAN RESOURCE
MANAGEMEN
 Discrimination

 Privacy of employe

 Whistle blowing eg. Dinesh thakur from

ranbaxy
 Occupation safety and health
Emerging ethical issues in
business
Ethics in sales and marketing
 Pricing: price discriminatiom, price

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 Anti competitive practice- dumping

 Contents of advertisement

 Children and marketing

 Black markets and grey markets iphone

6
 Surrogate advertisements eg bacardy

soda
Emerging ethical issues in
business
Ethics on production
 Dangerous products (tobacco and

alcohol)
 Pollutions

 Genetically modified food and radiations

from mobile phones

 Animal rights and animals testing
Emerging ethical issues in
business
Ethics in intellectual property rights
 Patent copyright and trademark

infringement
 Employee raiding

 Business intelligence – converting raw

data to new data

 Industrial espionage –spying on

competitors
P&G and Unilever
Emerging ethical issues in
business
International business ethics
 Biopiracy eg neem and turmeric

 Transfer pricing

 Use of child labour- fifa football

 Outsourcing back end or desk jobs to low

wage countries
Emerging ethical issues in
business
Influencing government tender processes
so that your family members and friends
are awarded state contracts;
Abusing your position within a
government department to ensure your
friends and family members are hired
into the same department;
Accepting bribes in order to disclose
confidential information about the
government department that you work
for;