FOUSIYA T P

Several factors play a role in the success of a company that is beyond the scope of
financial statements alone. Organizational culture, management philosophy and
ethics in business each have an impact on how well a business performs in the long
term. No matter the size, industry or level of profitability of an organization, business
ethics are one of the most important aspects of long-term success.
Different functions within a business are performed and controlled by different parts
of the business. One of the reasons for separating business operations into functional
areas to allow each to operate within its area of expertise, thus building efficiency
and effectiveness across the business as a whole. Ethical problems and phenomena
arise across all the functional areas of companies and at all levels within the
company.

Production Ethics
It is vital for business that the products are in good quality and free from defects.
The production department is concerned with manufacturing the products, where the
inputs are converted into finished output through a series of production process.
This area of business ethics deals with the duties of a company to ensure that
products and production processes do not cause harm.
There is usually a degree of danger in any product or production process and it is
difficult to define a degree of permissibility, or the degree of permissibility may
depend on the changing state of preventive technologies or changing social
perceptions of acceptable risk.
Ethical issues in production
 Adulteration
 Production of harmful products
 Inferior components and raw materials
 Lack of information to customers on side effects
 Unsafe and unhealthy packaging
 Ignoring environmental standards
Ethics in Sales and Marketing
Marketing is a management process that identifies, anticipates and supplies
consumer requirements efficiently and effectively. It focuses on attracting new
customers and keeping existing customers interested in the product.
Marketing department consists of various subdivisions, such as sales, after-sales
services, and marketing research. The sales department is responsible for generating
revenue and is tasked to ensure that the sale of products and services results to profit.
Sales ethics refers to a set of behaviors that ensure that every lead, prospect and
customer is treated with respect, fairness, honesty and integrity.
Marketing ethics is the area of applied ethics which deals with the moral principles
behind the operation and regulation of marketing.
Ethical issues in sales and marketing
 Unfair pricing strategy
 Creation of monopoly
 Dumping
 Deceptive communication
 Misleading advertisement
 Poor after sales services
 Unhealthy competition
 Black market/ grey market

Ethics in Human Resource Management

Human resource management is the function performed in organizations that
facilitates the most effective use of people to achieve organizational and individual
goals.
Ethics in HRM indicates the treatment of employees with ordinary decency and
distributive justice.
The ethical business contributes to the business goals as the employees will feel
motivated and they will work with efficiency and effectiveness.
The ethics in HRM covers those ethical issues arising around the employer-
employee relationship, such as the rights and duties owed between employer and
employee.
Ethical issues in HRM
 Discrimination on the basis of age, gender, race, religion, disability, etc.
 Sexual harassment
 Affirmative action
 Low salary and wages
 Issues affecting the privacy of employees: workplace surveillance, drug
testing

Ethics in Finance
Finance is an important element of an organization and it helps in kits growth and
development. Finance plays an important role in making resource available in an
organization, such as man, machine, material, market and money.
Management is required to uphold the highest ethical standards because internal and
external stakeholders depend on transparent, timely and complete financial
documents to make decisions.
It consists of;
 Accuracy
 Transparency
 Timeliness
 Integrity
Ethical issues in finance
 Embezzlement of cash
 Window dressing
 Creation of secret reserve
Ethical issues are a part of any business as unethical practices can take place across
the organization in all departments. Ethics is vital in all the functional areas
irrespective of its functions. The top management should device and monitor the
implementation of ethical code for all the functional areas. Integration of functional
areas is the basic necessity in this regard.

Bibliography
1. Abdul Azeez P (2019): Corporate Governance and Business Ethics, University
of Calicut, School of Distance Education
2. https://www.slideshare.net/saumyasingh7921/ethics-in-human-resource-
management
3. https://www.slideshare.net/VAIRAKUMARR/functional-areas-of-ethics-and-
miscellaneous-ethical-issues-in-business
4. Jayanta Kar Sharma (2017): Business Ethics, Odisha State Open University,
Sambalpur, Odisha
5. Utkal University, Directorate of Distance & Continuing Education Bhubaneswar
(2007): Business Ethics and Corporate Governance
6. Venugopalan. K and Abdul Assis (2019): Corporate Governance and Business
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