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Vini vijayan 54

Pradeep shekokare 43 Supriya shinde 45 Shivashankari Nadar 47 Anjali suryavanshi 49 Raziya sheikh 41

INDEX
Introduction What is ethics Business ethics Advantages of business ethics Role and importance of business ethics Why to study business ethics Code of business ethics Ethical business practices Ethics in accounting Ethics in human resource management Ethics in sales and marketing Ethics in production Ethics in regard to intellectual property

 International business ethics Other issues in business ethics Unethical business practices Ethical dilemma Conclusion Bibliography

INTRODUCTION
Ethical knowledge is not precise knowledge like mathematics or logic, but general knowledge like knowledge of nutrition. Also it is a practical discipline, rather than theoretical i.e. in order to be good, one should not just study, what is good, but also practice it. Any ethical conduct brings peace and harmony to the person and community and unethical conduct brings pain and misery.

The ability to reason or LOGOSis what sets apart a man from the animal kingdom. According to Aristotle, the philosopher, the aim of ethics is the highest good

WHAT IS ETHICS
Ethics is anormative science. It lays down norms and rules what is good what is bad and specifies dos and donts. Ethics is a concepts such as good vs. bad, noble vs. ignoble, right vs. wrong, and matters of justice, love, peace, and virtue. Ethics is concerned with what is right or wrong, good or bad, fair or unfair, responsible or irresponsible, obligatory or permissible, praiseworthy or blameworthy.

Ethics is a requirement for human life. It is our means of deciding a course of action. Without it, our actions would be random and aimless. Thus, ethics is normative: it is concerned with how we ought to act and what results we ought to try to bring about

BUSINESS ETHICS
According to Thomas Donaldson, there is a growing realization all over the world that business ethics is important for any business and the progress of any society. Ethics alone, not government nor laws can protect the society. An ethical responsible company is one which has developed the culture of caring for people and the environment, a culture which flows throughout the organization from the top managers and leaders. Business ethics also deals with the responsibility of the managers and employees in a competitive business environment. A manager has to resolve the conflicts of both the economic performance of the organization measured by the total revenue and profit

after tax and the social obligation of the business providing goods ans services at a fair price maintaining its quality. Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse.

ADVANTAGES OF BUSINESS ETHICS

To build value based organization ethical behavior
is important for business leaders as they imbibe high degree of trust, integrate and motivate and empower all the stakeholders thereby building a strong organization which can compete in a globalised economy.

To inculcate discipline, commitment, trust and

motivation

 To create awareness about corporate social

responsibilities of business.A business is the part of the society and it shares its prosperty by offering various facilities and services to its immediate community. It also funds important projects which are for welfare of the community. For example building garden. Hospitals, hotels etc.

Its helps managers to resolve ethical dilemma in a

more pragmatic and rational way. Business ethics is a practice and the managers has to study the theory of business ethics and practice it in their professional life as they understand the nature of ethical dilemma and analysis it they are better equipped to practice business ethics.

Practising ethics at work place makes the

individual associated with the organization aware about their divine nature and brings peace and harmony to all of them

IMPORTANCE OF BUSINESS ETHICS

Standard behavior
When we talk about business ethics usually we are speaking about standards of behavior in the workplace as well as with customers and partners. Companies formulate ethical codes and they treat all with dignity and provide correct factual information. Accurate information has to be provided.

Moral approach
Moral approach ensures providing correct and accurate information which is very necessary, and accepting what is possible. It also saves the companies from loss

More values to employees

Ethical code focus on how the employees meet their requirements. How they interact with other people. Milton Friedman once stated the employees of a firm have the moral obligation to maximize shareholders value.

Strong and independent board

The members of the board become more accountable and responsible and believe in transparency operation. business ethics are critical for members of company boards, as these people should provide a great deal of moral leadership

Role of regulations in business ethics

Legislating some ethical behavior can help to keep the market place free of monopolistic behavior and safeguard stakeholders such as partners, customers and investors. Whats more a transaction between two organizations can affect other parties

Short term gain and long term pain v/s short term pain and long term gain
People normally like to take a short cut success not realizing that short term gains lead to long term pain. Also its important to understand that people dont engage in unethical behavior when the incentives are small.

Value based leadership

Most of the people in positions of power tend to become mor egocentric ans self focused. This limits their capacity to understand the viewpoints of other people, which may provide needed insight, However , an ethical company that values the contributions of its employees is more likely to be innovative in the market place

 Role of information technology and business ethics

Some of the biggest issues with ethics and technology can be found in security and privacy concerns. Ethical companies do their best to protect company assets without making people feel shifted and their balance is increasingly important for innovation and creativity

Why to study business ethics

The business executive and managers should have

working knowledge of ethics principles. They will know how to conduct the business in a right manner. They also make value judgments.
Ethical behavior of the leaders influences ethical

culture in the organization

 It create awareness about social responsibility,

care for environment , community welfare, etc

It is helpful in making better individuals, society,

organizations. Etc
Firms and corporations operate in the social and

natural environment

Code of ethics

To define the framework of the acceptable behavior. To follow high standards of practice. To create benchmarks for self evaluation. To enhance sense of community.

To create transparency in the business activities. To foster higher standards of business ethics. To comply with government laws and norms.

ETHICAL BUSINESS PRACTICES

Following are a few ethical business practices that should be followed to build a honest reputation and ensure smooth running of the organization.

Investors: Ensuring safety of their money and timely payment of interest.

Employees: Provision of fair opportunities in promotions and training, good working conditions and timely payment of salaries.

Customer: Complete information of the service and product should be made available. Personal information of the customers should not be used for personal gain.

Competition: Unscrupulous tactics and methods should be avoided while handling competitors.

Government: Rules and regulations regarding taxes, duties, restrictive and monopolistic trade practices and unlawful activities like corruption and bribing should be adhered to.

Environment: Polluting industries should ensure compliance with the government norms regarding air, water and noise pollution.

ETHICS IN ACCOUNTING INFORMATION

Creative accounting, earnings management,
misleading financial analysis

Insider trading ,securities fraud, bucket shops,

forex scams: concern manipulation of the financial markets

 Executive compensation: concerns excessive

payments made to corporate CEOs and top management

Bribery, kickbacks, and facilitation payments:

while these may be in the interest of the company and its shareholders, these practices may be anticompetitive or offend against the values of society.

ETHICS IN HUMAN RESOURCES

There is no discrimination regarding age, gender,

religion, disabilities, caste and colour

Its leads to democratic approach that is collective

bargaining, respect participation of unions

 Respecting privacy of the employees, handling

confidencial information
There is a care for occupational safty and health Fairness in employment contract and respection

statutory obligation

ETHICAL ISSUES IN SALES AND MARKETING

Discrimination related to pricing, penetration and

skimming price

 It leads to anti-competition activities , no

hoarding , no black marketing

It leads to fair availability of goods and services Fair advertisement with no hidden cost , inform

the consumers properly about the advertisement

Proper statutory warning and treating of women

in advertisement.

ETHICS IN PRODUCTION
Industrial safety and health norms. It should care for environment and emission.

 The organization should not manufacture defective and addictive products. It should observe statutory warning in regard to manufacture of tobacco and alcohol products. The organization should ensure quality checks before the products are introduced in the market. It should follow ISO codes

ETHICS IN REGARD TO INTELLECTUAL PROPERTY

Every organization should respect copyright, trademark and patients.

 The organisation should ensure no misuse of copyright, trademark and patients and they should follow IP ethics by paying required royalty. Rampant copying and poaching of employees should be avoided. Organisation should gusrd themselves from industrial espionage by proper checks.

INTERNATIONAL BUSINESS ETHICS

The organization should ensure that no harm done to any ethical, social, religious statements

 Follow fair trade practices and pricing. Follow global and cultural norms. The organization should respect global standards in treatment of gender, racial and usage of children.

OTHER ISSUES IN BUSINESS ETHICS

Given the unequivocal support of the top management

 Conflict of interest Periodic review and follow up, feedback Monitoring compliance- reward and punitive measures Introduction of clause 49 norms for corporate transparency in reporting

UNETHICAL BUSINESS PRACTICES

Following are some of the activities that come under the ambit of unethical practice. Resorting to dishonesty, trickery or deception.

 Distortion of facts to mislead or confuse. Manipulating people emotionally by exploiting their vulnerabilities. Greed to amass excessive profit. Creation of false documents to show increased profits. Avoiding penalty or compensation for unlawful act. Harming the environment by exceeding the government prescribed norms for pollution.

ETHICAL DILEMMA

An ethical dilemma is any situation in which guiding moral principles cannot determine which course of action is right or wrong. The managers has to decide what they will do in a certain important issuies

Ethical dilemma arises due to following

Moral uncertainty:
It can be created as you are not sure about the outcome, about the moral implications and the moral choices we are making

Self imposed dilemma :

This is also called as DHARMA SANKAT or when both the actions seems right and fair, however one can take either both actions and hence refrained from taking other actions

World imposed dilemma

This is created due to outside situation which is beyond once means.For example three relatives made captive by some outsiders

 Prohibition dilemma
This is created when to make a choice or not itself is prohibited by law. There are certain actions prohibited by the law of the country and hence when one is supposed to do such an action or refrain from doing such an action then its a prohibited dilemma

TO RESOLVE THE ETHICAL DILEMMA

Analyze the consequences Analyze the actions Make a decision

CONCLUSION

Ethics are important not only in business but in all aspects of life because it is an essential part of the foundation on which of a civilized society is build. A business or society that lacks ethical principles is bound to fail sooner or later. If an organization want to be successive they they have to follow the business ethics

Bibliography

www.Wikipedia .com www.businessethics.org www.businessweek.com Business ethics(T.Y BMS)