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SEMINAR REPORT

ON

IMPORTANCE OF ETHICS AND VALUES IN BUSINESS


SUBMITTED FOR THE FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESSADMINISTRATION

(SESSION 2016-2018)

Submitted To:- Asst. Prof. Navjot Rani

Submitted By:

Natasha Thakur

UID- 162562001

MBA- 4th Sem- (A)

BABA FARID COLLEGE OF MANAGEMENT & TECHNOLOGY DEON


(BATHINDA)

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DECLARATION
I hereby declare that the project titled “IMPORTANCE OF ETHICS AND VALUES IN
BUSINESS” is an original piece of research work carried out under the guidance of supervisor
the information has been collected from genuine & authentic sources. The work has been
submitted in partial fulfillment of the requirement of MBA (Batch 2016-2018) of BABA
FARID COLLEGE OF MANAGEMENT AND TECHNOLOGY.

Signature with date

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ACKNOWLEDGEMENT
I am very thankful to everyone who all supported me, for I have completed my project
effectively and moreover, on time. I am equally grateful to my teacher. They gave me moral
support and guided me in different matters regarding the topic. They have been very kind and
patient, whilst suggesting to me the outlines of this project, and correcting my doubts. I thank
them for them overall support.

Last but not the least, I would like to thank my parents who helped me a lot in gathering different
information, collecting data and guiding me from time to time in completing this project. Despite
their busy schedules, they gave me different ideas to help make this project unique.

Thanking you

Signature with date

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TABLE OF CONTENT

Sr. no. Topic Page. No

1. Abstract 5-6

2. CHAPTER-1
INTRODUCTION:
7-8
1. Ethics and values in business

3. OBJECTIVES OF THE STUDY 9

4. CHAPTER-2
Importance of business ethics 10-14

5. CHAPTER-3 15- 19
Importance of value in business

6. CHAPTER-4 20-27
Principles and examples of ethics

7. CHAPTER-5 28
FINDINGS
8. CHAPTER-6 29-30
SUGGESTIONS

9 CHAPTER-7 31
CONCLUSION

8. CHAPTER-8 32
BIBLIOGRAPHY

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ABSTRACT
1. Lotte Lindfelt (2006) Four key concepts are proposed for further research into ethics and
value creation in business networks that enable the study of ethical embeddedness: ethical
network identity, ethical role, ethical position, and ethical atmosphere. The analysis also
presents fundamental differences between the stakeholder and the business network
approaches when dealing with ethics and value.
2. Ginna Prudvi Reddy ,G.Ramaiah (April 2014) Globally,Every business is on a wild race to
acquire more and more mostly by short cut means. In the process of acquire they are doing the
things which are not acceptable by society. The term business ethics should be understood from
all angles of the society. The sense of deceit always breeds a sense of distrust and skepticism that
kills the business image. Trust breeds trust and a natural goodwill in the heart, good business
ethics are necessary for such natural trust and goodwill. The productivity can be defined as a day
to improvement and zeal to perform better to-day then yesterday this is possible when there is
ethics. Therefore business ethics must be charted out very carefully, commercially and they
should sound in value that should be valuable to the society. In this context of this paper presents
ethics need, views of eminent and facets of ethics for creative Human resource.

3. R. Rakesh, D. Anusha, (2016) Ethics is a branch of Philosophy that deals with moral values.
Business ethics refers to the moral principles which are considered right by the society, and so,
should govern and guide the activities of a business. But in reality they are the moral principles
and rules of conduct which should guide the activities of a business. The thought of business
ethics generally arises when the social values lay down the norms of behavior for the business. A
businessman has to do business keeping the welfare of the society and also follow certain ethics.
Hence, there is a need to study business ethics which contemplates the significance of good and
evil, right and wrong, and just and unjust actions of businessmen. There are a number of
different ways in which ethics could influence performance of business, which in turn can
influence at various levels in the complex society. Ethical or unethical behavior of businessmen
can have an impact on the investors and their capability to invest in their businesses. The
objective of this paper is to focus on the ethical role of businessmen and their influences on the
society in the present business scenario. The discussion is presented in three sections: (i) The
need for business ethics in India; (ii) Application of ethics to business; (iii) The concept of
business social responsibility. The concluding observation is that it is only because of application
of ethics in business and the increasing need of accountability of the businessmen to the society,
that businesses are able to work in better environment.

4. Mitja Gorenak (2012) In this article authors aim to examine if there is any influence
between how organizational values are noted within organization and some performance
factors of this same organization. Authors assume that there is a statistically significant
correlation between the way how organizational values are noted and performance factors
especially in factors that are related to absentizem, loyalty of employees and employees’
perception of company image. Authors’ interest in this topic is based on a wider research
they have helped conduct in this field. The research itself is based on a survey made between
303 companies in Slovenia, and with the help of analysis of variance they will try to confirm
their presumptions. Results are expected to show that there are statistically significant
differences regarding performance factors between those companies that have explicitly

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noted organizational values and those who have implicitly noted organizational values as
well as the ones that do not have organizational values noted at all.

5. Richard Barrett ( 2008) Values stand at the very core of human decision‐making. When we
work in an organization whose culture aligns with our personal values, we feel liberated. We
are able to bring our full selves to work. We not only bring our energy, our creativity, and
our enthusiasm, we also bring our commitment to the well‐being of our associates and the
success of the organization. Unleashing this energy is tantamount to liberating the corporate
soul.

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CHAPTER 1- INTRODUCTION

ETHICS AND VALUES IN BUSINESS

Business Ethics

Business ethics (also known as corporate ethics) is a form of applied ethics or professional
ethics that examines ethical principles and moral or ethical problems that arise in a business
environment. It applies to all aspects of business conduct and is relevant to the conduct of
individuals and entire organizations.These ethics originate from individuals, organizational
statements or from the legal system. These norms, values, ethical, and unethical practices are
what is used to guide business. They help those businesses maintain a better connection with
their stakeholders.

Business ethics refers to contemporary organizational standards, principles, sets of values and
norms that govern the actions and behavior of an individual in the business organization.
Business ethics have two dimensions, normative or descriptive. As a corporate practice and a
career specialization, the field is primarily normative. Academics attempting to understand
business behavior employ descriptive methods. The range and quantity of business ethical issues
reflects the interaction of profit-maximizing behavior with non-economic concerns.

Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within
major corporations and within academia. For example, most major corporations today promote
their commitment to non-economic values under headings such as ethics codes and social
responsibility charters.

Adam Smith said, "People of the same trade seldom meet together, even for merriment and
diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to
raise prices." Governments use laws and regulations to point business behavior in what they
perceive to be beneficial directions. Ethics implicitly regulates areas and details of behavior that
lie beyond governmental control. The emergence of large corporations with limited relationships
and sensitivity to the communities in which they operate accelerated the development of formal
ethics regimes.

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Business ethics reflects the philosophy of business, of which one aim is to determine the
fundamental purposes of a company. If a company's purpose is to maximize shareholder returns,
then sacrificing profits to other concerns is a violation of its fiduciary responsibility. Corporate
entities are legally considered as persons in USA and in most nations. The 'corporate persons' are
legally entitled to the rights and liabilities due to citizens as persons.

Business values

Values should be at the core of every business. They're what your business stands for, your
philosophy, your reason for being. Your business's values will help to steer your business,
management and employees in the right direction. This guide explains a simple 3-step process
that you can take to develop values for your business.

Business values can be:

• the principles you stand for personally - for example, integrity, perseverance,
determination, innovation, respect, passion and fair-mindedness

• the beliefs and attitudes you and your staff have in common in the workplace - how
people should behave, the way managers should act, how work should be done, how staff
should treat each other at work

• your organisation's standards of behaviour - what is acceptable business practice.


From a customer viewpoint, values are the kind of service they can expect to get when
they deal with your business.

A clear set of values, agreed and understood by management and employees, are often behind
most successful organisations. If your business is yet to establish a set of values, the 3-step
process below can help you to identify and develop them.

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OBJECTIVES OF THE STUDY
1. To study the business ethics.
2. To study the importance of values in business.

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CHAPTER 2- NEED OR IMPORTANCE OF BUSINESS
ETHICS
Working as an ethical business has many benefits, not least of which is the ability to attract and keep
investors, employees and customers. Knowing that the company they deal with has stated their morals
and made a promise to work in an ethical and responsible manner allows investors peace of mind that
their money is being used in a way that aligns with their own moral standing. When working for a
company with strong Business Ethics, employees are comfortable in the knowledge that they are not
by their own action or inaction allowing unethical practices to continue. Customers are at ease
buying products or services from a company they know to source their materials and labour in an
ethical and responsible way.

For example, a coffee company which states all their raw beans are picked from sustainable
plants where no deforestation has occurred, by people paid a good living wage, in an area
where investments have been made to ensure that producing the coffee for a foreign market has
not damaged the local way of life, will find that all these elements of their buying strategy
become themselves a selling point for their final product.

A company which sets out to work within its own ethical guidelines is also less at risk of being
fined for poor behaviour, and less likely to find themselves in breach of one of the multitude of
laws concerning required behaviour – for example, laws around payments to corrupt regimes,
or environmental practice policies. The whole company can be fined, the directors can be
fined, and individual employees can be fined if the responsibility for an infraction falls on their
shoulders.

Reputation is one of a company’s most important assets, and one of the most difficult to
rebuild should it be lost. Upholding the promises it has made is crucial to maintaining that
reputation. If you’re looking to start up a company that is ethically sound right from the
ground up, here’s a short course on How to Create an Ethical Organization which will put
you on the right path.

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The Importance of Business Ethics to the Wider World:

Businesses not following any kind of ethical code or carrying out their social responsibility
leads to wider consequences.

The natural world can be affected by a lack of Business Ethics. For example, a business which
does not show due care for where it disposes its waste products, or fails to take a long term
view when buying up land for development, or neglects its obligations towards minimizing its
carbon footprint and driving progress towards green renewable energy, is damaging the world
in which every human being lives, and damaging the future prospects of all companies.

Developing countries can be damaged by poor business ethics. Large companies neglecting to
set a good example of Corporate Social Responsibility actively hinder the progression of all
business in developing countries. Outside businesses taking advantage of cheap labour or
dominating local markets from an unfair position may make a profit in the short term, however
in the long term this is a false economy. The world as a whole is held back by companies
operating without business ethics.

This also applies to other companies which may work together. A robust code of Business
Ethics should forbid dealing with a company whose commitment to Corporate Social
Responsibility is lesser, so as to avoid condoning or appearing to condone poor ethical
behaviour. In this manner of boycotting unethical companies, individuals and companies can
positively influence the whole business world. When an unethical company finds itself with
no customers, no investors and no suppliers, it will be forced to change its w ays or go out of
business; constant striving for better and more ethical dealings in this way produces a cycle of
continuous improvement.

Where individuals, such as fishermen, cannot afford to be ethical about some of their work –
for example overfishing or taking due care for coral or other species – and are unable to take
into account the bigger picture during their day to day operation, it falls to the government or
other officials to introduce laws and regulations and enforce them. Without this long vie w
approach, sustainability will fail and future generations will suffer.

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Ethical practices can go beyond just making sure your business does not have a negative
impact on people and the environment. It can also mean dedicating a portion of your
company’s time and resources to actively improving these areas – for example investing in
building in developing countries, investing in community programs, lobbying for political
change, encouraging employees to donate their time and expertise to other projects (at your
company’s expense) and so on. This level of Business Ethics is the most commendable and
should be something all companies strive for in this day and age, so that higher standards can
be achieved for all in the future.

Ethics concern an individual's moral judgements about right and wrong. Decisions taken within
an organisation may be made by individuals or groups, but whoever makes them will be
influenced by the culture of the company. The decision to behave ethically is a moral one;
employees must decide what they think is the right course of action. This may involve rejecting
the route that would lead to the biggest short-term profit.ethical behavior and corporate social
responsibility can bring significant benefits to a business. For example, they may:

• attract customers to the firm's products, thereby boosting sales and profits

• make employees want to stay with the business, reduce labour turnover and therefore increase
productivity

• attract more employees wanting to work for the business, reduce recruitment costs and enable the
company to get the most talented employees

• attract investors and keep the company's share price high, thereby protecting the business from
takeover
• Unethical behaviour or a lack of corporate social responsibility, by comparison, may
damage a firm's reputation and make it less appealing to stakeholders. Profits could fall
as a result.
• Along with good corporate governance, ethical behaviour is an integral part of everything
that Cadbury Schweppes does. Treating stakeholders fairly is seen as an essential part of
the company's success, as described here: 'A creative and well managed corporate and
social responsibility programme is in the best interests of all our stakeholders - not just

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our consumers - but also our shareowners, employees, customers, suppliers and other
business partners who work together with us. *'
• Ensuring that employees understand the company's corporate values is achieved by the
statement of 'Our Business Principles' which makes clear the behaviour it seeks from
employees.
NEED OF BUSINESS ETHICS
1. Improve customers' confidence : Business ethics are needed to improve the customers'
confidence about the quality, quantity, price, etc. of the products. The customers have more
trust and confidence in the businessmen who follow ethical rules. They feel that such
businessmen will not cheat them.
2. Survival of business : Business ethics are mandatory for the survival of business. The
businessmen who do not follow it will have short-term success, but they will fail in the long
run. This is because they can cheat a consumer only once. After that, the consumer will not
buy goods from that businessman. He will also tell others not to buy from that businessman.
So this will defame his image and provoke a negative publicity. This will result in failure of
the business. Therefore, if the businessmen do not follow ethical rules, he will fail in
the market. So, it is always better to follow appropriate code of conduct to survive in the
market.
3. Safeguarding consumers' rights : The consumer has many rights such as right to health and
safety, right to be informed, right to choose, right to be heard, right to redress, etc. But many
businessmen do not respect and protect these rights. Business ethics are must to safeguard
these rights of the consumers.
4. Protecting employees and shareholders : Business ethics are required to protect the interest
of employees, shareholders, competitors, dealers, suppliers, etc. It protects them from
exploitation through unfair trade practices.
5. Develops good relations : Business ethics are important to develop good and friendly
relations between business and society. This will result in a regular supply of good quality
goods and services at low prices to the society. It will also result in profits for the businesses
thereby resulting in growth of economy.
6. Creates good image : Business ethics create a good image for the business and businessmen.
If the businessmen follow all ethical rules, then they will be fully accepted and not criticised

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by the society. The society will always support those businessmen who follow this necessary
code of conduct.
7. Smooth functioning : If the business follows all the business ethics, then the employees,
shareholders, consumers, dealers and suppliers will all be happy. So they will give full
cooperation to the business. This will result in smooth functioning of the business. So, the
business will grow, expand and diversify easily and quickly. It will have more sales and more
profits.
8. Consumer movement : Business ethics are gaining importance because of the growth of the
consumer movement. Today, the consumers are aware of their rights. Now they are more
organised and hence cannot be cheated easily. They take actions against those businessmen
who indulge in bad business practices. They boycott poor quality, harmful, high-priced and
counterfeit (duplicate) goods. Therefore, the only way to survive in business is to be honest
and fair.
9. Consumer satisfaction : Today, the consumer is the king of the market. Any business simply
cannot survive without the consumers. Therefore, the main aim or objective of business is
consumer satisfaction. If the consumer is not satisfied, then there will be no sales and thus no
profits too. Consumer will be satisfied only if the business follows all the business ethics, and
hence are highly needed.
10. Importance of labour : Labour, i.e. employees or workers play a very crucial role in the
success of a business. Therefore, business must use business ethics while dealing with the
employees. The business must give them proper wages and salaries and provide them with
better working conditions. There must be good relations between employer and employees.
The employees must also be given proper welfare facilities.
11. Healthy Competition : The business must use business ethics while dealing with the
competitors. They must have healthy competition with the competitors. They must not do cut-
throat competition. Similarly, they must give equal opportunities to small-scale business. They
must avoid monopoly. This is because a monopoly is harmful to the consumers.

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CHAPTER 3-IMPORTANCE OF VALUES IN BUSINESS

Values
Organisations often have a set of values or principles which reflect the way they do business or
to which they aspire to observe in carrying out their business. As well as business values such as
innovation, customer service and reliability, they will usually include ethical values which guide
the way business is done - what is acceptable, desirable and responsible behaviour, above and
beyond compliance with laws and regulations.The most common ethical values found in
corporate literature include: integrity, fairness, honesty, trustworthiness, respect, openness. They
are commonly expressed through an ethics policy and a code of ethics.Note that it is good
practice to give a code of ethics a more accessible title – such as "The Way We Work Around
Here”, or "The XP Way”. Also, consider that a ‘code of conduct’ usually has a different purpose
and is different in tone – to inform about rules and regulations where employees have no
discretion, i.e. ‘do this or else’.

Developing business values

1. Map your personal principles, beliefs and values under categories

Some common business categories are listed in the table. You can add or substitute other
categories of your own. It can also be useful to look at other businesses' values, especially
organisations that you admire or aspire to. But don't forget that you are creating your own values
and spelling out what your business stands for.

Sample business categories

• Business growth

• Business associates

• Work

• Customer service

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• Decision making

• Teamwork

• Leadership

• Business improvement

• Staff

• Market identity

• Financial material

• Social community

For each category, you could answer the following questions to help clarify your thinking:

• What principles and values come to mind when you think of each category?

• Why is each value you list important to you?

• What influence does it have on the way you approach or manage a business?

Including your key employees in this process can empower them and create a feeling of worth
and ownership. Your employees are more likely to embrace your business values, and embody
them in their working life, if they have been a part of the process to create them. They will feel
connected to your strategic goals. They might also highlight values you may have not
considered.

2. Reflect on the meaning of each value

Sometimes we lose contact with the words we use to express values - what they really mean for
us. When listing your values, try to clarify each one and the meaning behind it. You could use
the following questions to help tease out the detail of each value:

• What is this value about? What do you really mean by it? Do staff understand it? Will
your customers understand it?

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• What assumptions are behind this value? What other words, ideas or mental images do
you associate with this value?

Your values shouldn't be long, convoluted statements; 1 to 2 words or a short, simple phrase is
usually sufficient.

Simple, to-the-point values are more easily recalled by staff and embraced by customers and
partners. You may need a brief explanation, but avoid making the values too complicated.

Once you have completed this step, and have a good understanding of each value you have
selected for your business, you are ready to turn your values into practical principles and
behaviour.

3. Translate your values into a set of guiding principles and standards of behaviour
This step helps you turn a value into action. Here's an example:

• Value: Respect

• Principle: I am open in my dealings with people and expect others to be open with me.

• Behaviour: If I have a disagreement with someone I'll try to resolve it directly with
them, rather than involve colleagues.

Implementing business values

After completing these 3 steps, you are now ready to develop a draft values statement with your
staff. When you do, try to keep it relevant and simple:

• Less is more; 5 core values everyone knows and cares about are better than 25 that don't
mean much to anyone.

• Core values are values that act as behavioural guidelines that shape everyone's actions
and influence your strategy, what you do and what you don't do.

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To have an impact on your business, you need to make your values a part of everything your
business does. Some steps you can take every day to reinforce with staff the importance of living
your business values include:

• Stand up for business values consistently. Be bold - you may decide not to go down a
path that brings short-term benefits because it doesn't align with the bigger picture.

• Regularly talk about your values and test new ideas and suggestions against how well
they align to your values.

• Select and promote staff on their values, not just their job ability. For example, make
values a key criterion in recruiting and promoting staff.

• Train staff in key values. For example, if one of your values is teamwork, provide all
staff with training in how to work as a team.

• Encourage staff to speak out about breaches of values.

• Challenge people when you see them do and say things that undermine values or praise
people when they embrace values.

• Raise values as part of your meetings and discussions when considering courses of
actions or business decisions.

We have listed below a list of 10 core values that are common across organizations in
different industries:

1. Make your values visible to staff and customers. Include them in your staff code of
conduct, on your intranet and website, display them in your work and common areas, use

them in staff inductions, etc. Accountability – Acknowledging and assuming


responsibility for actions, products, decisions, and policies. It can be applied to both

individual accountability on the part of employees and accountability of the company as a

whole.

2. Balance – Taking a proactive stand to create and maintain a healthy work-life balance for
workers.

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3. Commitment – Committing to great product, service, and other initiatives that impact
lives within and outside the organization.
4. Community –Contributing to society and demonstrating corporate social responsibility.

5. Diversity – respecting the diversity and giving the best of composition. Establishing an

employee equity program.

6. Empowerment – Encouraging employees to take initiative and give the best. Adopting an

error-embracing environment to empower employees to lead and make decisions.


7. Innovation – Pursuing new creative ideas that have the potential to change the world.
8. Integrity – Acting with honesty and honor without compromising the truth

9. Ownership – Taking care of the company and customers as they were one’s own.

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CHAPTER 4- PRINCIPLES AND EXAMPLES OF ETHICS

In their simplest form, ethics are the moral standards you rely on when you make a decision.
They define what’s right and wrong, and outline the kind of behavior that businesses should
not engage in. For responsible decision making in a business environment, a good set of ethics
is key. If you’re new to management, try this course on decision making and equip yourself
for success. Building on this when you maintain a high set of ethics as you conduct your
business it provides benefits to everyone. Ethics are not only a guide to making decisions, but
also the criteria the public judge you on. In business, this is critical, because how people see
you and your company is the basis of building trust. If you’re taking unethical actions, you lose
credibility, and your business will suffer.

Personally, your ethics form as you are influenced by the people and the environment around
you. There are ethical views that apply to people all around the world, while others are more
personal, and apply only to you. Over time, your ethical views can change over time as you’re
exposed to different situations and environments. In a business, ethics has very positive
benefits, and you can learn more about them in this course. The reasons for having high
ethical standards include:

• A higher moral within your employees and the organization


• It helps to attract new customers
• It builds higher customer loyalty
• It reduces the risk of negative press or backlash caused by doing “the wrong” things
• It helps to make a positive impact on the community

If you want to run a sustainable business having a high set of ethics is critical, and there can be
serious consequences if poor ethical decisions are made. Regardless of whether you believe
good business ethics contribute to profits or not, poor ethics will have a major impact on your
bottom line. Without standards you have misinformed, misguided and bad decisions being
made, which can cause financial loss or injury to other people, or the business. Many legal
cases are raised because of people seeking compensation for their losses as a result of business
people making unethical decisions.

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You need to get every member of your organization committed to a set of high ethical
standards. As a manager or the business owner, you need to clearly define and communicate to
your employees the consequences of being unethical, and the set of standards you want them to
adhere to. You can study what it takes to create an ethical organization in this course.
Huge organizations like Enron have been destroyed by unethical decisions, and others
seriously damaged like Fannie Mae. Without a set of ethical standards combining ambition and
the intelligence of senior executives is a recipe for disaster. Competitiveness, innovation and
ambition are critical for a business to succeed, but they need to be kept in check with a strong
moral compass, and business done in the right way.

Here are 12 principles that form the basis of business ethics, and are what you need to hold
yourself accountable to:

Honesty

You need to be honest in all of your actions, and every communication you make. When
people see you making honest decisions, they start to trust your company because you’re not
only being truthful, you’re being upfront and candid. People appreciate the fact they can take
you at your word, as customers only ever do business with those they trust. Being an ethical
executive means you do not deceive others by misrepresenting the facts, overstating and
exaggerating or only giving partial truths. If you’ve inadvertently given the wrong impression,
provide the relevant information to your customers and correct their misunderstanding as soon
as possible.

Integrity

Being ethical in business means maintaining a high level of personal integrity. This is how you
earn the trust of others, whether they are your customers, team or your superiors. In this
definition integrity means having a consistent character that is demonstrated by an alignment
of your thoughts, words and action. Sometimes it requires you to have moral courage to do the
right thing, and it takes inner strength to live up to mistakes and admit when a fault has been
made. Despite a great pressure to do otherwise, ethical business managers live by a moral code

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they believe in, principles to maintain and they fight for their beliefs – without sacrificing their
honor for the sake of just getting a job done.

Keeping Your Promises

Your word is one of the most important tools in your arsenal as a business manager. Keep
every promise that you make, and always fulfill a commitment. The trust you build as an
ethical executive means people like doing business with you, as you take every reasonable
effort to fulfill not only the letter, but the spirit of the promises and commitments you have
made. You can learn more about building trust in a business in this course. Don’t every
twist your words to rationalize or get out of contracts, or justify why it’s okay to not comply to
a commitment. Just do what you said you were going to do.

Loyalty

You need to be loyal to both your company, your team and yourself, while operating within a
strong moral compass. If you demonstrate your loyalty it builds trust, and shows that you place
a high value on advancing the interests of both the company and your colleagues. You should
not ever place loyalty above your other principles, or use it as an excuse for unethical behavior.
Demonstrate your loyalty but always make an independent judgment, and never use
information that you have gained in confidence for your own personal advancement. Steer
clear of conflicts of interest, and if you ever decide to leave your company do it on the best of
terms. Give reasonable notice, respect any information that was gained in your former
employer, and never engage in activities that take advantage of a previous position that was
held.

Fair

In all of your actions, you must strive to be fair and just. An ethical executive is committed to
fairness in all that they do, and do not seek to exercise their power for an unfair advantage or
use indecent methods to gain a competitive edge. They also never take undue advantage of
another person’s difficulties and mistakes. Being an ethical executive means that you are
committed to being fair, employ justice in your decisions and treat all people equally, with

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tolerance and acceptance of diversity. Being fair also means being open minded, admitting
when they have made a mistake, and adjusting their beliefs and positions when it is
appropriate.

Caring

This involves having a genuine concern for others, as well as a sense of compassion. An
ethical business manager is caring, benevolent and kind to both customers and staff, and seeks
to reach their goals while causing the least amount of harm and the greatest amount of good.
Being caring means understanding that there will be an impact on every stakeholder following
a decision, and they always consider the financial, emotional and long term business
consequences of an action. They don’t simply discount the needs of others.

Respect

Being ethical means treating everyone with respect, demonstrating this by being courteous and
having an equal treatment of people regardless of who they are. Respect is given because
everyone deserves dignity, privacy and rights, and they adhere to the rule that you must strive
to treat others the way you would like to be treated.

Obeying the law

An ethical executive always obeys the law, and never breaks the rules, regulations or laws
surrounding their business activities.

Excellence

Being ethical in business is also about pursuing excellence in everything that you do.
Delivering the highest quality of service or products makes business sense, especially if there
is a constant endeavor to always improve.

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Being a Leader

You need to demonstrate the principles and ethics you want your team to live by, and take an
active role as a leader to be a positive role model. The best way you can enforce an ethical
mentality is to lead by example, and creating an environment within your business that values
decisions made on principles and standards of ethics. You can learn more about the ways you
can approach being a leader in this recent post.

Morale

Ethical business managers enhance the good reputation of a company, which at the same time
boosts the morale if its employees. The company reputation is very important, as well as the
pride and morale of their employees. As an ethical business manager you need to avoid taking
actions that undermine this respect, and they take action to correct any inappropriate behavior
of others.

Accountable

Being ethical means holding yourself accountable, and acknowledging and accepting pers onal
accountability for their decisions, and any consequences. Not just personally, but an ethical
manager will stand up and take accountability in front of their colleagues, their company, and
the community.

Holding yourself and your business to these standards will ensure you’re not only covered
against any wrongdoings, (if you follow these principles you can’t do anything wrong), but
you’ll impress customers and staff alike, and build a strong sense of trust with all of your
stakeholders. This is the foundation that takes your company to the success that it deserves to
reach!

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Examples of core values in business

1.Starbucks

Starbucks is a good example of an organization that is clear about its core values. Note that
while all six of their core values are equally important, the order in which they appear speaks
volumes about how Starbucks operates.

Starbucks Core Values

1. Provide a great work environment and treat each other with respect and dignity.

2. Embrace diversity as an essential component in the way we do business.

3. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our
coffee.

4. Develop enthusiastically satisfied customers all the time.

5. Contribute positively to our communities and our environment.

6. Recognize that profitability is essential to our future success.

2. Procter & Gamble

Procter & Gamble is one of the world’s leading makers of consumer products. With billions in
sales, P&G has a reputation for excellence in marketing. It is a company whose leaders have
assured its enduring success by continually reaffirming and communicating its core values.

People

• We attract and recruit the finest people in the world.

• We build our organization from within, promoting and rewarding people without regard to any
difference unrelated to performance.

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• We act on the conviction that the men and women of Procter & Gamble will always be our
most important asset.

Leadership

• We are all leaders in our area of responsibility, with a deep commitment to deliver leadership
results.

• We have a clear vision of where we are going.

• We focus our goals to achieve leadership objectives and strategies.

Ownership

• We accept personal accountability to meet the business needs, improve our systems, and help
others improve their effectiveness.

• We all act like owners, treating the company’s assets as our own and behaving with the
company’s long term success in mind.

3. Real-life Examples of Business Value Generation Richard Brown Opinion Leader Identification
Process Network Influence Score gives measure of Influence in the Referral Network of doctors.
Publication Score gives measure of Influence in Publication activities. Prescription Score gives
measure of Influence from drugs’ Prescription activities. Affiliation Perception Score gives measure
of perception based on affiliations to Prestigious Hospitals & Academic Institutes. Social Media
Score gives measure of influence in social media, blogs etc. Opinion Leaders Prescription Data
Publication Data Referral Data Survey Data Social Media Data Affiliation Data Existing Revenue
Referral Data of doctors. Prescriptions Data. 3rd Party Survey Data. Hospitals, Institutes & Academic
Institutes affiliation Data. PubMed Data for medical publications; clinical trials, research papers,
news etc. Pharma blogs, forums and other social networking sites.
4. Real-life Examples of Business Value Generation | Richard Brown Cloudera Enterprise Data Hub
Next Generation Data Management Platform Open, agile and reliable platform Open source and
enterprise-grade, constantly enhanced. Agility to handle more types of data without defining structure
upfront. Focus on performance and security. Mixed workload integration Supports and manages
different types of workloads for different types of analytics and users population (Batch processing,
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Interactive SQL, Search, Machine Learning, In memory processing) Easiness of integration CDH
certified with all major technologies our customers have already (Informatica, SAS, Tableau, SAP
BOBJ, Microstrategy, Talend, Teradata, etc.) and new technologies (Revolution Analytics, Splunk’s
Hunk, etc;). Cloudera can be an “add-on” to existing architectures to enhance scalability and
analytical features. Scalable and Cloud “Infinite” Storage capacity as the cost is an order of
magnitude lower than traditional DB. Choice to deploy on-prem as well as in the Cloud (eg. Elastic
Analytics). An open solution for Big Data

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CHAPTER 5-FINDINGS
Four key concepts are proposed for further research into ethics and value creation in business
networks that enable the study of ethical embeddedness: ethical network identity, ethical role,
ethical position, and ethical atmosphere. The analysis also presents fundamental differences
between the stakeholder and the business network approaches when dealing with ethics and value .
As a professional who consults with organizations on how to raise the visibility and value of their
brands, I'm always stressing with my clients that a brand is not a cosmetic you apply to make your
organization look pretty. Rather, a brand is nothing less than your DNA; it's a true reflection of how
healthy, or unhealthy, your organization is from top to bottom—including its ethical behavior.

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CHAPTER 6-SUGGESTIONS
Unfortunately the ethics standards at many of the nation's nonprofit organizations are declining,
according to a recent report by the Ethics Resource Center. Rates of observed misconduct, including
financial fraud, by nonprofit employees are at the highest level since ERC began measuring in 2000,
with nonprofits faring little better than the public and private sectors.
So what is a nonprofit that wants to operate on a high moral and ethical plane—and keep its brand
strong and healthy—to do? Here are some suggestions:

1. RECRUIT AND HIRE WELL

How often have you heard "We need to recruit board members of affluence and influence"? I contend
that if the portfolios of board members don't include wisdom and integrity, their affluence and
influence often translate into a liability rather than an asset. And the record shows many an
organization enduring much pain because of poor (for lack of a better word) board leadership.
A nonprofit's leaders should provide both example and oversight when it comes to moral and ethical
issues, circumstances and decision making.

2. EDUCATE STAFF ABOUT WHAT'S AT RISK

Believe it or not, many people don't understand what's at risk if they don't perform their jobs in an
ethical, accountable manner.What's at risk? Just about everything. Think Enron, Arthur Andersen,
World Com, Global Crossing, and a slew of others, including numerous nonprofits that have suffered
greatly because they failed to understand the risks of questionable or unethical behavior. We'll refrain
from mentioning names here, but if you follow the sector you know who they are.

3. BE TRANSPARENT ABOUT YOUR FINANCES

Ever since Deep Throat told Bob Woodward to "follow the money," scrutiny surrounding financial
malfeasance has only intensified. Be sure that you can account to your funders for how your
organization spent their money; better yet, how their gifts made a difference in helping you achieve
your mission.Poor bookkeeping is no excuse. Hire a certified accountant, if necessary.

4. SPEAK TRUTH TO AUTHORITY

Create a corporate culture in which employees feel free to speak truthfully to management.
Surveys show that a large percentage of employees who see misconduct don't speak up either because

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they believe their superiors won't take action or fear that they will face retaliation if they report what
they saw. This hesitation tends to create an unhealthy, at-risk work environment.

5. LEGAL SHOULD NOT BE THE LITMUS TEST

There's a difference between what's legal and what's ethical, and it is up to an organization's leadership
to understand what that difference is. If you're sitting around a conference table trying to split hairs
between the two, don't go to your legal department for a resolution to your dilemma. They're being
paid to find you a loophole. Rather, ask yourself, "What would my mother think if this decision we're
about to make finds itself on the front page of the local newspaper or on the 6 o'clock news

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CHAPTER 7-CONCLUSION

Managing the ethical climate of an organization is not easy given the myriad influences, both
internal and external, on the firm. Corporate ethics programs will not completely eliminate
unethical conduct, nor will they resolve all of the perplexing conflicts of ethical values that arise
in various social and economic arenas today. Nevertheless, managers' efforts to strengthen the
ethical climate in their organizations will have real benefits for employees, for the performance
of the firms, and for society at large. By legitimizing the discussion of ethical considerations in
business, by standing up for ethical values despite short-term costs, by giving serious
consideration to problems of conflicting values, managers and executives can contribute to
strengthening their organizations and to building public trust in business

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CHAPTER 8-BIBLIOGRAPHY

1. 1.http://www.emeraldinsight.com/doi/abs/10.1108/03090560610648084

2. http://www.ijoart.org/docs/THE-IMPORTANCE-OF-BUSINESS-ETHICS-IN-GLOBALISATION-A-STUDY.pdf

3. http://www.emeraldinsight.com/doi/abs/10.1108/03068290710778606

4. . http://issbs.si/press/ISBN/978-961-6813-10-5/papers/ML12_117.pdf

5. https://www.valuescentre.com/sites/default/files/uploads/2010-07-
06/The%20Importance%20of%20Values.pdf

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