INTRODUCTION

INTRODUCTION : One way to really think about ethics is through its historical
meaning, which has to do with a person’s ethos. This is the idea that ethics is
connected with character, and it is sort of a high standard approach to what it means
to act in a particularly cogent and courageous way, as well as to demonstrate
personal integrity. And then there is a more important conceptual distinction a person
could make, particularly between ethics and morals. This is needed because when
defining ethics, many will use the word “morals” interchangeably, which confuses the
issue.

There is, however, some disagreement among scholars as to the difference between
morals and ethics. One school of thought asserts that morality is inherently founded
on spiritual principles–one’s responsibility to a supernatural being or goal. Ethics, on
the other hand, relies on materialist and social consequences, not spiritual ones, in
order to determine what is ethical or not. Other schools of thought argue that this line
between morals and ethics is arbitrary. Instead, they believe ethics is simply a formal
branch of philosophy that concerns itself with the study of morals and their
justification; this group would assert that ethics is the philosophy of morals.

We posit that ethics is not the same thing as morality. Consider, for example, how
arbitrary moral stances tend to be, especially when they are outside of one’s own
culture or religious beliefs. What may seem justifiable in one culture can easily be
problematic in another. In addition, being ethical is not simply following a law or rules
that have been established. In fact, some of our most revered historical/modern
figures not only disagreed with laws or rules they deemed to be unethical, but also
fought against them—and in some cases, it cost them their lives.

MARKETING Marketing is the process of communicating the value of a product to

customers, for the purpose of selling that product (goods or services) Marketing
ethics addresses principles and standards that define acceptable conduct in the
market place. Unethical activities usually develop from the pressure to meet
performance objectives. Marketing which goes beyond the mere provision of
information about (and access to) a product may seek to manipulate our values and
behavior. Some obvious ethical issues in marketing involves clear cut attempts to
deceive or take advantage of a situation ETHICS IN MARKETING

SOME UNFAIR MARKETING PRACTICES • False and misleading presentation of

facts. • Deliberate omitting of required information. • Implying a benefit that hardly
exists. • Trade puffing and exaggerations Opinions rather than facts - Statements
such as "this car is in good shape" and "your wife will love this watch" constitute
puffing.

ETHICAL ISSUES IN MARKETING FUNCTION 1. ETHICS IN MARKETING

RESEARCH • Consumers are concerned about privacy, and Internet has increased
privacy concerns. • government also maintains a Do Not Call Registry to prevent
unwanted telemarketing. 2. ETHICS IN PRODUCT STRATEGY • Example: Package
strategy. • Larger packages are more noticeable on the shelf. • Oddly sized
packages make price comparison difficult.
3.ETHICS IN DISTRIBUTION • Manufacturer’s offers not getting passed on • Should
a company distribute its products in marginally profitable outlets that have no
alternative source of supply? 4.ETHICS IN PROMOTION • Truth in advertising is the
bedrock of ethics in promotion. • Marketing to children has come under increased
scrutiny. • Marketing beer to college students, including through providing
promotional items such as shirts and hats, raises ethical questions. 5.ETHICS IN
PRICING • Artificial scarcity & Black marketing • Fixing a high price and charging
less – false impression

Customers

Product Issues

Pricing Issues

Promotion Issues

Distribution Issues

Ethical Issues & the Marketing Mix

Ethics in
ETHICS IN HRM • The ethics of human resource management (HRM) covers those ethical
issues arising around the employer-employee relationship, such as the rights and duties owed
between employer and employee

HR Activities • HR Planning and Analysis • Equal Employment Opportunity • Staffing • HR

Development • Compensation and Benefits • Health, Safety, and Security • Employee and
Labor/Management Relations

How HR Spends Its Time

What Organizations expect from Employees  Commitment  Intelligent & hard work 
Discipline  Loyalty  Maintaining confidentiality  Value addition
What Employees expect from organizations Non statutory benefits Compensation
Collective bargaining Whistle blowing Privacy Data Security Psychological
contract Outplacement
 Recruitment  • Recruitment of kith and kin without assessing abilities • Recruitment based on
financial favours • Recruitment of relatives of other employees • Recruitment of under-
qualified persons • Recruitment of over-qualified persons • Gender based recruitments •
Employing child behavior • Giving less than minimum wages as fixed by government.
Training  • Arranging training for only pet employees • Getting outsiders to train at high costs
when insiders are available • Planning training programmes without assessing their real need
• Organizing training programmes during peak seasons, upsetting the business rhythm. •
Getting high profile trainers with expectations of a reciprocal favour. • Training programmes
without proper preparation just to show achievements in the annual report. • Extending the
duration of training programmes • Supplying outmoded training materials • Getting useless
trainers as an obligation
Administration  • Tampering with leave records of employees • Playing with employee
records – adverse remarks in a few cases • Allow selective absenteeism on personal
considerations • Giving promotion letters to favourites earlier than others (making him more
senior) • Favourite supplier for office purchases • Favourite security agency • Favourite
uniform suppliers • Unclean premises. 
IR  • IR Managers not averse to siding wherever there were monetary benefits • Bargaining
with the management till they want to be seen as true in the eyes of workers • IR Managers
felt they were a superior lot with great powers and used this to recruit their known ones • Try
to delay the solution as far as possible as their work depended on IR disputes • Incite
(Provoke) workers to go on strike. • Inducing Management/Workers to indulge in unhealthy
practices. • Pressurize workers and state their genuine demands as not genuine • Divide and
Rule • Frame stringent and complicated rules to keep the conflicts going.
PRODUCTION Ethics in
• This area of business ethics deals with the duties of a company to ensure that products and
production processes do not cause harm.
ETHICAL ISSUES IN PRODUCTION • Defective, addictive and inherently dangerous
products and services (e.g. tobacco, alcohol, weapons, motor vehicles, chemical
manufacturing) • Ethical relations between the company and the environment: pollution,
environmental ethics, carbon emissions trading • Ethical problems arising out of new
technologies: genetically modified food, mobile phone radiation and health. • Product testing
ethics: animal rights and animal testing, use of economically disadvantaged groups (such as
students) as test objects. • Medical products – duty to test adequately, side effects, safety
instructions, risk factors in financial products. • Substitutes for published ingredients
IT/SYSTEMS Ethics in
Ethics and IT • Developments that took place in the last 50 years in the field of science is
more than the entire period before. • Transition from man – tool – machine – automation –
chip – a progression that has made the human race less and less human. • As a result of
technological growth, materialism took precedence over ethical considerations and meeting
the end through any means became standards of society.
IT & SOCIETY • The use of information technology in business has major impact on
society, thus raises serious ethical considerations in the areas such as
privacy,crime,health,workingcondition, inividuality,employment.
UNETHICAL PRACTISES • CRIME IN THE COMPUTER • MONEY THEFT • SERVICE
THEFT -  (bypassing) a utility meter so that the true level of consumption is understated •
DATA THEFT • MALICIOUS ACCESS • COMPUTER VIRUS • HEALTH ISSUES •
CYBER ETHICS. • SOFTWARE OWNERSHIP. • CENSORSHIP.
FINANCE