DELHI TECHNOLOGICAL UNIVERSITY

(Formerly Delhi College of Engineering)

Professional Ethics and Human values

FEC-27 Slot-3

A CASE STUDY ON ETHICS PORTRAYED BY WORLD

RENOWNED COMPANIES

Submitted by:

Lipi Singh Divya Rani

2K20/A17/73 2K20/A9/16
ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along with the completion of
my project. All that I have done is only due to such supervision and assistance and I would
not forget to thank them.

I respect and thank our professor, Ms. Deepti Sinha, for providing us an opportunity to do the
project work and giving me support and guidance which made me complete the project report
duly. I am extremely thankful to her for providing such nice support and guidance. I owe my
deep gratitude to her for taking a keen interest in the project work and guiding us all along,
till the completion of our project work by providing all the necessary information for
developing a good system.

I am thankful for and fortunate enough to get constant encouragement, support, and guidance
from all Teaching staff of the Professional Ethics and Human Values Department which
helped us in successfully completing our project work.
ABSTRACT

Did you know that 92% of Millennial consumers are more likely to buy products from ethical
companies? Or that 82% of those consumers believe ethical brands outperform similar
companies that lack a commitment to ethical principles?

These are just two of the findings of a recent Aflac survey into the potential business impact
of ethical commerce and corporate philanthropy. Brand authenticity has never been more
crucial to a business’ success, and companies that have dedicated themselves to the greater
good instead of solely to their bottom lines have seen a remarkable surge in support – and
revenue.

In this project, we’ll learn what ethical marketing is and take a look at how five different
brands have proven their commitment to ethical marketing. The following examples show the
principles of ethical marketing in action, as well as why championing good causes is so
effective for today’s brands.

At last we will also do a detailed case study on the most ethical company of 2021, IBM and
take a deeper dive into their policies which can act as a successful role model for upcoming
businesses.
INDEX

INTRODUCTION

● OBJECTIVE OF RESEARCH
● CONDUCT OF RESEARCH

CHAPTER 1

● ETHICAL MARKETING
● TOMS
● EVERLANE
● DR. BRONNER’S
● CONSCIOUS COFFEES
● FARMER CO-OP
● CONCLUSION

CHAPTER 2

● IBM
● IBM ETHICS
● CONCLUSION

INTRODUCTION
OBJECTIVE OF THE RESEARCH :

Through this project we aim to do a detailed study on the various ethics portrayed by world
renowned companies. These ethics include professional ethics, moral ethics, ethical
marketing, gender equality, antiracism, work and health benefits apart from their corporate
social responsibilities towards environment and the society.

We also wish to present a detailed case study on the world’s most ethical company of 2021-
IBM, according to the Ethisphere Institute (which is an organization/group of business
companies that focus towards doing business with integrity and building a sustainable
business market).

CONDUCT OF RESEARCH :

1. Gather information about worldwide ethical principles of numerous corporations via

Google, research papers, and books.

2. Data comprehension and assimilation .

3. Investing time and effort into researching the firms' ethical codes of conduct and
determining whether or not they are being followed.

4. Compiling our research.

CHAPTER -1
ETHICAL MARKETING

Ethical marketing is the practise of businesses selling their products and services by
emphasising not only on how they benefit customers, but also on how they support socially
responsible or environmental concerns.

To put it another way, ethical marketing is a concept, not a tactic. It encompasses everything
from ensuring that advertisements are truthful and trustworthy to forging strong bonds with
customers based on a shared set of values. Companies that focus on ethical marketing
examine their actions from both a business and a moral standpoint (i.e., if a certain marketing
activity will give the required return)

EXAMPLE OF COMPANIES WITH A CONSCIENCE AND

ETHICS
1. TOMS (FOOTWEAR BUSINESS)

TOMS isn’t just engaged in corporate philanthropy to make a quick buck; it’s a core part of
the company’s values and brand.

TOMS was founded by Blake Mycoskie in 2006 following a trip to Argentina.. During his
visit, Mycoskie saw firsthand how people living in impoverished areas of Argentina had to
live without shoes, a challenge that many of us likely give little thought to. Inspired by his
trip, Mycoskie decided to establish his company with giving in mind.

Since 2006, TOMS’ footwear business has donated more than 60 million(!) pairs of shoes to
children in need all over the world. As if that weren’t enough, TOMS’ eyewear division has
given more than 400,000 pairs of glasses to visually impaired people who lack access to
ophthalmological care.

The company has further diversified its operations to include clean water initiatives through
its coffee business, and its line of bags has helped support projects to expand access to
birthing kits to expectant mothers in developing nations as well as training for birth
attendants. To date, TOMS has helped more than 25,000 women safely deliver their babies.

HOW DOES TOMS USE ETHICAL MARKETING?

TOMS puts its social and environmental philanthropy on full display in virtually every aspect
of its branding. This not only lets potential customers know the kind of company they’re
dealing with right off the bat, but also reinforces TOMS’ brand values consistently across all
channels.

Take a look at TOMS’ homepage. Right underneath the carousel, the company tells you that,
for every product you purchase, TOMS will help someone in need.

TOMS’ mission is so central to the company’s branding, it’s given almost equal emphasis on
its website as the products it sells. In fact, it’s almost impossible to navigate through TOMS’
site without seeing further examples of how TOMS helps people around the world.

This isn’t a typically cynical attempt to capitalize on empty gestures or a feel-good sales
tactic; it’s the same principle leveraged by brands that use display marketing. Just as many
display ads are designed to promote brand awareness and achieve top-of-mind presence
among consumers, TOMS’ philanthropic mission is constantly reinforced throughout its
website and marketing materials. As a result, it’s almost impossible to think of TOMS as a
brand without thinking of the company’s various outreach projects and corporate giving
initiatives.

2. EVERLANE (CLOTH MANUFACTURER)

Clothing manufacturing is among the most controversial industries in the world. During the
past 20 years or so, much greater attention has been paid to how and where our clothes are
made, particularly in light of tragedies such as the blaze that tore through a garment
manufacturing facility in Bangladesh in 2012, killing 117 people – a factory that supplied
clothing to American retailers including Walmart and Sears.

In light of greater awareness about the use of sweatshops, demand for ethically made clothing
has soared in recent years, a trend that has given rise to dozens of companies that want to
change how we make and view clothing, including Everlane.
Founded in 2010 by Michael Preysman, Everlane is boldly committed to ethical
manufacturing. All of Everlane’s garments are made in factories that meet the most stringent
quality standards – not only in terms of the clothes themselves, but also in how workers are
treated. Everlane only partners with manufacturers that demonstrate a strong commitment to
their workers’ welfare, a fact the company prides itself upon in its marketing material.

HOW DOES EVERLANE USE ETHICAL MARKETING?

The company champions the rights and well-being of the workers who make its clothes.
What’s really interesting about Everlane, though, is its commitment to radical transparency

Everlane isn’t content to merely tell you that its clothes are manufactured and sold ethically;
the company also provides customers with a detailed cost breakdown for each and every one
of its stylish, minimalist garments. This includes details on the cost of materials, labor,
transportation and logistics, excise taxes and duties, and even hardware such as zippers and
buttons.

The company’s Elements jacket, for example, costs $60 to produce, and you can see exactly
how much each of the manufacturing and logistical elements affects the retail price:

Typically, the production costs of most commercially produced clothing are a closely
guarded secret. This isn’t merely because a breakdown of such costs would reveal a brand’s
potential profit margin on a specific item, but also because they highlight the desperately
poor pay and conditions many people working in garment manufacturing endure.
By boldly revealing precisely how much each of its garments costs to make, Everlane can
offer its customers the kind of transparency consumers want while enjoying the considerable
karma this kind of radical transparency offers.

3. Dr. BRONNER’S ( ORGANIC LIQUID SOAP BRAND)

Consumer demand for ethically produced cleansing products has intensified in recent years,
and although there are literally hundreds of brands of soap available on the market, few are as
unique or memorable as Dr. Bronner’s, the top-selling organic liquid soap brand in America.

The company is a little different from other soap companies. For starters, the product’s
unique packaging features the company’s fascinating “Cosmic Principles,” a 30,000-word
philosophical screed that company founder and self-styled doctor Emanuel Bronner spoke of
while touring the United States’ lecture circuit in the late 1940s. Bronner offered his now-
famous peppermint liquid soap as a freebie for people who attended his lectures, but it didn’t
take long for him to realize most people would only turn up at his speeches to grab their free
sample of soap.

HOW DOES DR. BRONNER'S USE ETHICAL MARKETING?

Dr. Bronner’s is such a unique brand because of the eccentricity of its founder. Indeed, it’s
hard to imagine how different Dr. Bronner’s brand would be without the “Moral ABCs” that
Bronner lectured about shortly after World War II.

As a result of the company’s unorthodox founding, Dr. Bronner’s is uniquely positioned to

leverage its history of ethical manufacturing in its marketing. In many ways, the company’s
iconic product packaging serves as the perfect introduction to the firm’s philosophy.

The company’s commitment to what it calls “CONSTRUCTIVE CAPITALISM” goes far

beyond its unusual packaging and mission statement. Dr. Bronner’s is what’s known as a
Benefit Corporation (or B-Corp), a designation that states such companies must be for-profit
operations that have a “positive impact on society and the environment according to legally
defined goals.”

The company is committed to several tangible objectives, including raising awareness of

crucial environmental and social justice issues, the use of USDA-certified fair-trade
ingredients whenever possible, and to equitable compensation structures that limit executive
pay to five times that of lower-level employees.

4. CONSCIOUS COFFEES ( GLOBAL COFFEE TRADER)

Globally, the coffee industry directly supports the livelihoods of more than 120 million of the
world’s poorest people, and few industries are likely to experience the kind of disruption
wrought by climate change as intensely as agricultural coffee production; in worrisome news
for the constantly caffeinated, literally half the world’s coffee farming land could be lost by
2050 if climate change isn’t tackled aggressively.
To that end, many companies are seeking to improve conditions for coffee farmers and
producers around the world, and one of the best is Conscious Coffees. Headquartered in
Boulder, Colorado, Conscious Coffees was founded in 1996 by Mark and Melissa Glenn,
who later sold the business to current owner Craig Lamberty earlier this year.

Since its founding, Conscious Coffees has worked tirelessly to improve its production
pipelines to benefit growers, farmers, and suppliers across South America. Like Dr.
Bronner’s, Conscious Coffees is a certified B-Corporation, and earned a community impact
score in the top 10% of all certified B-Corporations worldwide for its work.

HOW DOES CONSCIOUS COFFEES USE ETHICAL MARKETING?

Everything about Conscious Coffees, from its name to its logo, reinforces the company’s
mission and ethical production philosophy – so much so that Conscious Coffees doesn’t use
ethical marketing as much as it embodies the principle as a brand.

In addition to its strong commitment to ethical production processes and fair-trade commerce,
Conscious Coffees engages in a wide range of community outreach initiatives.
Its CAFE Livelihoods Program empowers people in El Salvador, Guatemala, Mexico, and
Nicaragua to own and operate their own coffee businesses through training workshops and
ongoing guidance and support. The company regularly donates coffee to the local
Community Cycles program, a project run by cycling enthusiasts from across the Boulder
region who help other cyclists with repairs, maintenance, and refurbishment of old and used
bicycles. Conscious Coffees’ team of coffee experts offer technical advice and support to
growers and farmers as part of the USAID-funded Farmer-to-Farmer initiative, which helps
coffee growers across South America learn new techniques that can help them maximize
yields and engage in fair-trade economic practices with North American suppliers.

Conscious Coffees is the perfect example of a brand that not only uses ethical marketing
practices, but embodies them in everything it does

5. FARMER DIREACT CO-OP (FARMER CO-OPERATION)

An entirely worker-owned cooperative, Farmer Direct is farming with a mission. The

cooperative’s network of more than 60 privately owned and operated farms across southern
Alberta, Manitoba, and Saskatchewan is firmly committed to truly sustainable agriculture and
responsible environmental stewardship. The co-op is affiliated with several organizations
with a focus on sustainable farming, including the Cornucopia Institute and the Fair World
Project.

In terms of what Farmer Direct actually sells, all of the co-op’s produce is certified organic,
and includes produce such as beans, peas, and oats, all of which are sold at Whole Foods
locations across North America.
HOW DOES FARMER DIRECT USE ETHICAL MARKETING?

Like all of the examples above, ethical marketing lies at the heart of Farmer Direct’s
operations. In addition to its vibrant, active social media presence (through which Farmer
Direct offers a range of healthy eating tips, recipes, and other fun content), Farmer Direct
maintains a lively blog and newsletter, both of which serve as further opportunities to help
people make better decisions about their food and live a more conscientious lifestyle as
consumers.

Perhaps a little unusually for an agricultural organization, Farmer Direct also maintains a
surprisingly good Pinterest profile, which is always great to see alongside the mainstays of
Facebook and Twitter.

Farmer Direct’s mission may be a little more challenging than that of the other companies
featured in this post. Not because they’re not trying to sell something (they are), or because
there’s no demand for organic, authentically grown produce (there is), but because they want
to change the way people think about food and where our food comes from. This is a much
longer-term goal, and a really ambitious one, too. Industrialized agriculture has transformed
the way we eat - and not in a good way.
Another element of Farmer Direct’s ethical marketing that’s worth mentioning is its strong
dedication to truly sustainable agriculture from an environmental perspective. Many farms
emphasize their organic certifications or their beautiful pastures where their livestock are free
to roam and wander, but Farmer Direct wants to raise awareness of how factors such as
topsoil erosion can devastate rural farming communities and even individual farms.

CONCLUSION

Although each of the businesses featured in this post are distinctly different, they all share a
common characteristic: a commitment to giving back and protecting the rights and
livelihoods of some of the world’s most vulnerable people. These companies have embraced
ethical marketing not as a cheap gimmick they can exploit to drive sales, but as a core part of
their mission and values as organizations.

Ethical marketing relies on a long-term strategy of continuing education, campaigning, and

activism. It’s about helping consumers make better, more conscious choices about the
products they buy and the stores they frequent. It’s about changing the way we think about
how goods are provided, the people who make and sell the things we buy every day, and the
communities that rely on fair, ethical trade to survive. It’s about cultivating brand loyalty by
aligning your organizational values with those of your ideal customers.

Hopefully these examples have given some ideas on how one can develop and incorporate
philanthropic principles in your own organization. Not every company will be suited to
ethical marketing – there are no fair trade plumbers, after all – but those that are may find that
focusing on people and not just profit could be a wise investment.
CHAPTER-2

DETAILED CASE STUDY OF IBM

IBM ranks on Ethisphere’s 2021 World's Most Ethical Companies

IBM's Commitment to Global Employment Standards

IBM always had high standards for how they do business, from corporate and social
responsibility to good business ethics, as well as adherence to all applicable laws and
regulations.

All IBM employees are bound by these Codes of Conduct. They are not intended to cover the
entire range of IBM human resource policies and procedures. Documents like the IBM
Business Conduct Guidelines include more specific descriptions of policies, procedures, and
practises. Employees must follow all IBM policies, procedures, and practises at all times, and
they must seek advice from management if they have any issues.

The company’s mission is to ensure that all IBM managers and employees follow these
values to the letter. The IBM Supplier Conduct Principles, which is a companion to this
policy, defines relationships and expectations for IBM suppliers.
Ethical Code of Conduct adhered by IBM

1. FORCED OR INVOLUNTARY LABOUR

IBM will not use any sort of forced or involuntary labour (for example, coerced, bonded,
indentured, or involuntary prison labour); all jobs are voluntary.

2. CHILD LABOUR

IBM will not employ children. Any employed individual under the age of 16, or the age at
which compulsory education must be completed, or the minimum age for employment in the
country, whichever is greater, is referred to as a "CHILD." We promote the implementation
of legal workplace apprenticeship, internship, and other comparable programmes that adhere
to all applicable rules and regulations.

3. WAGES AND BENEFITS

At a bare minimum, IBM shall adhere to all applicable wage and hour rules and regulations,
including those governing minimum pay, overtime hours, piece rates, nonexempt or exempt
classification, and other aspects of remuneration, as well as offer legally mandated benefits.

4. WORKING HOURS

IBM will not work more than the legal maximum number of hours and will compensate
overtime accordingly. Employees will not be expected to work more than 60 hours per week,
including overtime, unless they consent or the nature of their position requires it, such as
exempt employees and employees in executive, managerial, or professional positions. That
norm will apply in countries where the maximum work week is shorter. Every seven-day
week, employees should be given at least one day off.

5. NONDISCRIMINATION AND HARASSMENT

IBM will not discriminate on the basis of race, colour, religion, age, nationality, social or
ethnic origin, sexual orientation, gender, gender identity or expression, marital status,
pregnancy, political affiliation, disability, or veteran status in the hiring, promotion,
compensation, or employment practises of its employees. IBM will eliminate discrimination
and harassment in the workplace based on race, colour, religion, gender, gender identity or
expression, sexual orientation, national origin, disability, age, or veteran status.

6. RESPECT AND DIGNITY

IBM shall treat all employees with dignity and respect, and will not utilise corporal
punishment, threats of violence, or other physical coercion or harassment in any way.

7. FREEDOM OF ASSOCIATION

IBM will respect its employees' legal rights to join or not join worker organisations, such as
labour organisations or trade unions. In terms of employee and third-party involvement, IBM
complies with all regulatory obligations around the world. IBM respects employees' rights to
organise and educates management at all levels about such rights. IBM's long-held opinion is
that a positive, collaborative work environment with direct contact between employees and
management serves the company's and its employees' best interests. IBM strives to provide
such ideal working conditions, to foster positive connections between employees and
management, to make employee communications easier, and to encourage staff development.

8. HEALTH AND SAFETY

In accordance with all applicable laws and regulations, IBM shall offer a safe and healthy
workplace for its employees. IBM will have and will implement effective programmes that
cover things like life safety, incident investigation, chemical safety, ergonomics, and will
provide safe health and safety standards in any housing and transportation provided by the
company for our employees in accordance with these obligations.

9. PROTECTION OF THE ENVIRONMENT

IBM is dedicated to being a global leader in environmental preservation. Every employee

must follow IBM's environmental policy as well as the corporate directives and procedures
that support it, in addition to complying with applicable environmental laws and regulations.
Employees are expected to notify management of any environmental concerns or violations
of environmental legislation or IBM regulations. Managers are expected to respond quickly.

10. LAWS,INCLUDING REGULATIONS AND OTHER LEGAL REQUIREMENTS

In all locations where IBM does business, it will follow all applicable laws, regulations, and
other legal obligations.

11.ETHICAL DEALINGS

IBM requires its workers to conduct business according to the highest ethical standards, and
it has Business Conduct Guidelines in place that they must follow. IBM strictly adheres to all
bribery, corruption, and illegal business practises laws and regulations.
12. COMMUNICATIONS

IBM provides open communication channels for all employees to submit comments and
complaints to management. For employee concerns, including any type of harassment,
including sexual harassment, IBM provides avenues for direct interaction with the corporate
office.

13. MONITORING/RECORD KEEPING

IBM will conduct business audits to ensure that our policies, practises, and processes are
followed. In compliance with local laws and regulations, we shall preserve records.

14. PRIVACY

IBM is dedicated to maintaining the privacy and confidentiality of its workers' personal
information. IBM understands that certain information about employees should be considered
"sensitive" under the laws of some countries, such as racial or ethnic origin, political or
philosophical convictions, trade union participation, and health or sex life. Such sensitive
data should be processed in aggregate or anonymous form wherever possible, so that no
individual may be identified. If this is not possible, IBM will treat the data only in
compliance with applicable local law (and any appropriate safeguards given therein); with
employee approval where required; or where necessary for the establishment, exercise, or
defence of legal claims.

15. SUPPORT FOR EMPLOYEES AND COMMUNITY INVOLVEMENT

IBM offers a variety of programmes for workers to encourage and enhance the positive
impact of their volunteer work in the community. On Demand Community, a set of online
tools and resources to support employee volunteerism; Community Grants, a programme that
rewards long-term volunteer commitments with cash or IBM equipment grants; and Matching
Grants, a programme in which IBM matches employee grants to schools and nonprofit
organisations, are among the global programmes.
16. IBM AI ETHICS BOARD

IBM’s AI Ethics Board is a central, cross-disciplinary body that fosters a culture of ethical,
responsible and trustworthy AI and other technologies throughout IBM. It supports a
centralized governance, review and decision-making process for our tech ethics policies,
practices, communications, research, products and services. For example, the board was
consulted from the earliest conceptual stages of the IBM Digital Health Pass, developed to
assist pandemic recovery. Generic “vaccine passports” could result in privacy concerns or
inequitable access, so IBM’s solution was designed to share personal information only after
individual consent and to enable everyone to benefit. Our board engaged in the development
stages, with reviews continuing as the solution is deployed.

CONCLUSION

We therefore learn that, apart from corporate social liabilities in respect of the environment
and society, IBM follows professional ethics, ethical marketing, gender equality, anti-racism,
work and health. As a result, this company is a better place to work in, demonstrating its
status as one of the world's most ethical corporations in 2021. Trust has always been a
foundational aspect of IBM’s business, but today it’s more important than ever. People
rightly expect companies to use personal information responsibly and keep it secure, and
many of those companies rely on IBM as the steward of their data. Trust is also essential to
society’s acceptance of technologies such as AI, which are increasingly used to inform
decisions that affect people’s lives. This is why IBM today is so focused on building trust,
privacy and security into our technologies and offerings—and in sharing our experience and
expertise with the world. Although IBM does not typically do business directly with
consumers, we take clear positions on data privacy, security and the positive role that
regulations can play in helping our industry earn even greater trust from society. IBM
continues to assert the three Principles for Trust and Transparency we established in 2018:
that the purpose of AI is to augment human intelligence, that data and insights belong to their
creator, and that new technology, including AI systems, must be transparent and explainable.
REFERENCES

1. https://en.wikipedia.org/wiki/IBM
2. https://www.worldsmostethicalcompanies.com/honorees/
3. https://en.wikipedia.org/wiki/Ethical_marketing
4. https://www.curvearro.com/blog/top-12-principles-of-ethical-marketing/
5. https://www.ibm.com/ibm/responsibility/ibm_humanrightsprinciples.html#:~
6. https://www.ibm.com/blogs/corporate-social-responsibility/2021/02/ibm-ranks-on-
ethispheres-2021-worlds-most-ethical-companies/
7. Lecture notes of Professor Deepti Sinha