A

REPORT ON

“COMMUNALISM”

A PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE

DEGREE OF BACHELOR OF MANAGEMENT STUDIES

UNDER THE FACULTY OF COMMERCEBY

MS. GEETA SHYAMSUNDAR MESTRY.

UNDER THE GUIDANCE OF

ASST. PROF. GEETASHREE THAKUR

SANT RAWOOL MAHARAJ COLLEGE, KUDAL

DIST: - SINDHUDURG (416520)
(MARCH, 2020-2021)
 DECLARATION

I undersigned MS. GEETA SHYAMSUNDAR MESTRY hereby declare that the work
embodied in this project work titled “COMMUNALISM” forms my own contribution to
the research work carried out under the guidance of ASST. PROF.GEETASHREE
THAKUR Is a result of my own research work and has not been previously submitted to
any other University for any other Degree/Diploma to this or any other University.
Whenever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography. I, hereby further declare that all
information of this document has been obtained and presented in accordance with
academic rules and ethical conduct.

GEETA SHYAMSUNDAR MESTRY.

Certify by
ASST.PROF.GEETASHREE THAKUR.

CHAPTER NO. TITLE OF THE CHAPTER PAGE NO

 I INTRODUCTION 4

II

III

IV 7

V 8

VI 9

VII 11

VIII 13

IX 15

X 19

XI CONCLUSION 20

INTRODUCTION
Dated back to Code of Hammurabi some 4,000 years ago, business ethics is a social science,
whose mainaim is to define and examine the responsibilities of businesses and their agents as a
part of the general moral environment of a given society. The products of this field of research
are sets of rules and codes of conducts, which serve as a means of protection from the possible
infringements of moral codes as a result from the general activities and responsibilities of a firm
to its stakeholders (e.g. generating profits for shareholders and taxes to the government). This
paper will briefly explain the nature, aspects, scope and the growing importance of business
ethics in today’s economy.I have also included the definitions of ethics, business ethics and
what does they mean. I Finally, it will describe several contemporary issues related to business
ethics like corporate social responsibility (CSR) and how they are different from business ethics
as well.

In short, business ethics means to conduct business with a human touch in order to give
welfare to the society.

CHAPTER NO 1

 DEFINITION OF BUSINESS ETHICS :

 Business ethics is the study of what
constitutes right and wrong or good and bad human conduct in the business context.
Business ethics refers to the application of everyday moral and ethical norms to
business. It deals with morality in the business environment and involves judgment
based on the understanding of society.

According to Andrew Crane,

“Business ethics is the study of business situations, activities, and decisions where issues of
right and wrong are addressed.”

According to Raymond C. Baumhart,

“The ethics of business is the ethics of responsibility. The business

man must promise that he will not harm knowinfly.”

According to Wikipedia,

Business ethics (also 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.”

CHAPTER NO 2

TYPES OF BUSINESS ETHICS

Types of Business Ethics

There are various types of business ethics. Both the nature of the company's business and
where the company is located can affect which ethics it emphasizes. The following are some of
the more common business ethics.

1. Personal responsibility

Each person who works for a business, whether on the executive level or the entry-level, will be
expected to show personal responsibility. This could mean completing tasks your manager has
assigned to you, or simply fulfilling the duties of your job description. If you make a mistake,
you acknowledge your fault and do whatever you need to do to fix it.

2. Corporate responsibility

Businesses have responsibilities to their employees, their clients or customers, and, in some
cases, to their board of directors. Some of these may be contractual or legal obligations, others
may be promises, for example, to conduct business fairly and to treat people with dignity and
respect. Whatever those obligations are, the business has a responsibility to keep them.

3. Loyalty

Both businesses and their employees are expected to show loyalty. Employees should be loyal
to their co-workers, managers, and the company. This might involve speaking positively about
the business in public and only addressing personnel or corporate issues in private. Customer or
client loyalty is important to a company not only to maintain good business relations but also to
attract business through a good reputation.

4. Respect

Respect is an important business ethic, both in the way the business treats its clients,
customers and employees, and also in the way its employees treat one another. When you
show respect to someone, that person feels like a valued member of the team or an important
customer. You care about their opinions, you keep your promises to them, and you work
quickly to resolve any issues they may have.

5. Trustworthiness

A business cultivates trustworthiness with its clients, customers and employees through
honesty, transparency and reliability. Employees should feel they can trust the business to keep
to the terms of their employment. Clients and customers should be able to trust the business
with their money, data, contractual obligations and confidential information. Being trustworthy
encourages people to do business with you and helps you maintain a positive reputation.

6. Fairness

When a business exercises fairness, it applies the same standards for all employees regardless
of rank. The same expectations with regard to honesty, integrity and responsibility placed upon
the entry-level employee also apply to the CEO. The business will treat its customers with equal
respect, offering the same goods and services to all based on the same terms.

7. Community and Environmental Responsibility

Not only will businesses act ethically toward their clients, customers and employees, but also
with regard to the community and the environment. Many companies look for ways to give
back to their communities through volunteer work or financial investments. They will also
adopt measures to reduce waste and promote a safe and healthy environment.

CHAPTER NO 3

SCOPE OF BUSINESS ETHICS

 Ethical problems and phenomena arise across all the functional
areas of companies and at all levels within the company.

1.Ethics in Compliance

Compliance is about obeying and adhering to rules and authority.

The motivation for being compliant could be to do the right thing out
of the fear of being caught rather than a desire to be abiding by
the law. An ethical climate in an organization ensures that compliance with law is fuelled by a
desire to abide by the laws. Organizations that value high ethics comply with the laws not only
in letter but go beyond what is stipulated or expected of them.

2.Ethics in Finance
 The ethical issues in finance that
companies and employees are
confronted with include:

 In accounting – window dressing, misleading financial analysis.

 Related party transactions not at arm’s length
 Insider trading, securities fraud leading to manipulation of the financial markets.
 Executive compensation.
 Bribery, kickbacks, over billing of expenses, facilitation payments.
 Fake reimbursements

3.Ethics in Human Resources

Human resource management (HRM) plays a decisive role

in introducing and implementing ethics. Ethics should be a
pivotal issue for HR specialists. 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.
The issues of ethics faced by HRM include:

 Discrimination issues i.e. discrimination on the bases of age, gender, race, religion,
disabilities, weight etc.
 Sexual harassment.
 Affirmative Action.
 Issues surrounding the representation of employees and the democratization of the
workplace, trade ization.
 Issues affecting the privacy of the employee: workplace surveillance, drug testing.
 Issues affecting the privacy of the employer: whistle-blowing.
 Issues relating to the fairness of the employment contract and the balance of power
between employer and employee.
 Occupational safety and health.

Companies tend to shift economic risks onto the shoulders of their employees.
The boom of performance-related pay systems and flexible employment contracts are
indicators of these newly established forms of shifting risk.

Ethics in Marketing

Marketing ethics is the area of applied ethics which

deals with the moral principles behind the operation and
regulation of marketing. The ethical issues confronted in this area include:

price fixing, price discrimination, price skimming.

 Anti-competitive practices like manipulation of supply, exclusive dealing
arrangements, tying arrangements etc.

Misleading advertisements

Content of advertisements.

Children and marketing.

Black markets, grey markets.

5.Ethics of Production

This area of business ethics deals with the duties of a company to ensure that products and
production processes do not cause harm. Some of the more acute dilemmas in this area arise
out of the fact that 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 preventative technologies or changing social perceptions of acceptable
risk.

Defective, addictive and inherently dangerous products and

 Ethical relations between the company and the environment include pollution,
environmental ethics, and carbon emissions trading.
 Ethical problems arising out of new technologies for eg. Genetically modified food
 Product testing ethics.
 The most systematic approach to fostering ethical behaviour is to build corporate
cultures that link ethical standards and business practices.
 CHAPTER NO 4

ADVANTAGES OF BUSINESS ETHICS

More and more companies recognize the

link between business ethics and financial performance. Companies displaying a “clear
commitment to ethical conduct” consistently outperform companies that do not display ethical
conduct.

1. Attracting and retaining talent

People aspire to join organizations that have high ethical values.

Companies are able to attract the best talent and an ethical company that is dedicated to taking
care of its employees will be rewarded with employees being equally dedicated in taking care of
the organization.

The ethical climate matter to the employees.EthicalOrganizations create an

environment that is trustworthy, making employees willing to rely, take decisions and act on
the decisions and actions of the co-employees. In such a work environment, employees can
expect to be treated with respect and consideration for their colleagues and superiors. It
cultivates strong teamwork and Productivity and support employee growth

2. Investor Loyalty

Investors are concerned about ethics, social responsibility and reputation

of the company in which they invest. Investors are becoming more and more aware that an
ethical climate provides a foundation for efficiency, productivity and profits. Relationship with
any stakeholder, including investors, based on dependability, trust and commitment results in
sustained loyalty.

3. Customer satisfaction

Customer satisfaction is a vital factor in successful business strategy.

Repeat purchases/orders and enduring relationship of mutual respect is essential for the
success of the company. The name of a company should evoke trust and respect among
customers for enduring success.
 This is achieved by a company that adopts ethical practices. When a company because
of its belief in high ethics is perceived as such, any crisis or mishaps along the way is tolerated
by the customers as a minor aberration. Such companies are also guided by their ethics to
survive a critical situation. Preferred values are identified ensuring that organizational
behaviours are aligned with those values. An organization with a strong ethical environment
places its customers’ interests as foremost. Ethical conduct towards customers builds a strong
competitive position. It promotes a strong public image.

4. Regulators

Regulators eye companies functioning ethically as responsible citizens. The

regulator need not always monitor the functioning of the ethically sound company. The
company earns profits and reputational gains if it acts within the confines of business ethics. To
summaries, companies that are responsive to employees’ needs have lower turnover in staff.

 Shareholders invest their money into a company and expect a certain level of return
from that money in the form of dividends and/or capital growth.
 Customers pay for goods, give their loyalty and enhance a company’s reputation in
return for goods or services that meet their needs.
 Employees provide their time, skills and energy in return for salary, bonus, career
progression, and learning.
DISADVANTAGES OF BUSINESS ETHICS

1. limited ability to maximise profit

The main drawback of business ethics is that they can reduce a

company’s ability to maximise profit.For example, having factories in developing countries can
reduce costs. This is because companies can have practices in place, such as child labour and
low wages, which help to maximise profit. But although these practices are legal in those
countries, they’re also incredibly unethical and will obviously never be tolerated by a company
following ethical practices.

Improvements in working conditions, such as providing workers with living wage and
having proper health and safety standards in place, are ethical but raises the amount it costs to
run these factories. This, in turn, reduces profit which might not be an issue for large companies
who can afford to allocate costs. But it can be an issue for small businesses, especially if they’re
evolving.

2. time consuming to implement the practices

Developing, implementing and maintaining business ethics

can be time consuming, particularly if a company is looking to become more ethical when
they’ve previously followed unethical practices. Ethical practices also need to be continuously
updated according to changes in laws and regulations, especially as a company
grows.Companies can streamline the process by hiring an ethics officer but this adds to the
costs needed for business ethics.

3. but despite the drawbacks, it’s important to consider the positives

However, although a company might have less freedom to maximise

profit, acting responsibly benefits the wider society. Ethical behaviour also significantly boosts a
company’s reputation, which has a knock-on effect on attracting and retaining customers, sales,
investors and employees.So, when you take this into account, these disadvantages might not be
particularly negative after all.

4. interested in reading more about business ethics?

Ethical behaviour can significantly benefit a

company, namely by improving their reputation which can help boost sales and profits. But the
development, implementation and maintenance of ethical practices can limit a company’s
freedom to maximise profit.

Luckily, there are many different ways to operate ethically so companies can choose the
ethical practices and approaches that best suit them. For example, advertising can considerably
boost a company’s brand awareness. If you choose an outdoor print solution from a print
specialist who can produce these products ethically, you can boost your reputation among your
target audience even more.
 CHAPTER NO 6

IMPORTANCE OF BUSINESS ETHICS

The importance of ethics in business is also known as the significance of ethics in business. It
involves various points such as:-

1. Positive Prominence:

Business is an earning factor which depends on the approval of the society, their rules, mutual
trusts, and coordination. A professional writer says- “when an ethical process is revealed, it
puts some kind of confidence and mutual trusts in a relationship.”So, that is the reason,
business ethics always leads to positive consequences.

2. Goodwill of the Business and Businessman:

Good and moral-ethical behavior will enhance the goodwill of both business and as well as the
businessman. They said if an image of a business is good in front of the public, it will leads
higher. On the other hand, once an organization’s image is damaged it would have a direct
impact on its sales, profit values, moral values, and day-to-day business operations.

3. Protection- Both Sides:

In business activities, the persons dealing with their customers for the purpose of achieving its
sales volume. They protect them ethically and follow the procedure of code of conduct. A
professional writer says, “Good ethics is like sound business insurance.”

4. Self-satisfaction:

In this business changing environment, a businessman is focusing on self-satisfaction, free from

eagerness, release tension. Some businessman tries to improve their inner satisfaction level to
promote good ethics because ethics is a moral factor by which an individual can easily identify
its good and bad things.
5. Encourage Others:

When a few individuals start following ethics side by side to profit maximizing, they facilitate,
motivate, others and set perfect examples for them. They follow the procedure of the code of
conduct so that they can easily understand the basics and helps to motivate others also.

6. Success, Growth, and Development:

A perfect or legal business or businessman works ethically to lead our business development or
success because an ethical work accelerates the acceptance of opportunities. A professional
writer says- A sincere person is always working hard to become ethical and always succeed in
his force of actions but an unethical person cannot.

7. New Management:

In the era of the world economy, new principles of management are required in new balanced
management. A professional writer says- management cannot become effective or good so far
as it does not follow good ethics. They focus on to follow the book of code of conduct so that
they can easily understand the aspects of humanity.
 CHAPTER NO 7

Elements of Business Ethics-

1. Self-impulsive discipline:

Business ethics includes fair sources of requirement which includes moral, beliefs,
understanding, and so on. It is also known as self-imposed and known for the importance of
playing fair activity with other individuals.

2. Honesty:

Honesty is also an important part of a businessman or a business because it helps to produce

the activity of right and wrong. They educate the factor of what is right and what is wrong in
business.It also suggests the means and ways of running a successful business which is morally
justified.

3. Social values:

Morality, values, beliefs, and behavior is part of social affection or values. Social forces directly
influence on business or businessman to observe good or bad ethics in business.

4. Helpful attitude:

Business ethics plays a crucial approach to call for helping the attitude of the business towards
all those members who are associated with it. They fully try to accept the norms and behavior
of a society and also try to reduce the damage to the interest of any class of society.The classes
of a society divided into three levels- upper class, middle class, and lower class.
5. Equality:

Business ethics educates the acceptance of equality. They owe its agreement to treat everyone
at par. They also neglect the concept of caste, religion, sub-religion, creed, riches, poverty and
establish the well known or equal path of working opportunities.

Examples of Business Ethics

There are many ways businesses express their ethics. Commonly, a business will have a code of
conduct document that informs employees of their ethical responsibilities. Businesses may also
publish a values statement that advertises the ethical standards to which they hold themselves.
These are some examples of ways a business might practice its ethics.

1. Data Protection

Businesses often collect information about their customers. This may only be an email address,
but it could also be their physical address, or health or financial information, depending on the
nature of the business. Companies that collect customer data normally promise to secure that
information and not share it without the customer's permission. The same applies to employee
information. Business ethics usually protect employees' personnel records and allow access
only to those with a valid need to know.

2. Customer Prioritization

One way a business shows respect for its customers is by prioritizing the customer's needs,
even at the expense of the company. For example, if a customer purchases goods or services
that turn out to be unsatisfactory, the business will do what it must to recompense the
customer. If it is a faulty product, the business will offer a replacement or a refund. If the
customer experienced bad service, the company will usually apologize and offer a discount or
some other form of compensation.

3. Workplace Diversity

A business might express fairness is by placing a high importance on having a diverse

workplace. Achieving a diverse workplace means using recruiting practices that give equal
opportunity to people from different ethnic, gender and social groups. This can add time and
effort to the hiring process, but it is worthwhile. Employing a diverse range of people gives the
business the benefit of different perspectives. It also demonstrates that the company is serious
about equality and treating all people with respect.

4. Whistleblower Protection

As a business grows, it becomes harder to verify that employees are keeping to the ethical
standards set by the company. Sometimes the business will rely upon a whistleblower to draw
attention to unethical practices within the company. To encourage employees to come forward
to report unethical practices, businesses will often put in place protections against negative
consequences. With these protections, employees don't need to fear losing their jobs or facing
disciplinary action for pointing out unethical behavior.

5. Corporate Transparency

A business that practices transparency will be clear in its communications both with employees
and to clients or customers. The language used will be unambiguous so there is no doubt about
the policies or priorities that guide business decisions. Transparent corporate communications
will also be honest and truthful. Everyone working for or engaging with the company should be
able to trust what it says.

6. Community Outreach

Companies often feel an ethical obligation to give back to the communities in which they do
business. This can take the form of volunteer programs to which employees are encouraged to
donate time, perhaps even at the company's expense. Such programs might include serving at a
soup kitchen, helping with home repairs, cleaning up after a natural disaster, or teaching skills
at the local community center. These programs not only help those in need, but also build
respect and trust within the community.

7. Environmental Awareness

Many companies take concerns for the environment seriously, whether cutting down on waste
or cleaning up the land, water and air. There are various ways businesses act on this such as
reducing air travel and using teleconferencing technology as much as possible. Businesses
might also promote recycling in their offices by providing receptacles to collect recyclable waste
and arranging for them to be emptied regularly.

8. Employee Compensation

Companies adhering to principles of fairness and respect will pay their employees a fair wage
for the work they do based on their experience, education and the nature of the work. They will
also regularly review employee compensation and adjust it to make sure it continues to be a
fair representation of the employee's position and experience. Businesses will often reward
outstanding performance with employee bonuses. These are a good incentive for employees to
work hard and remain with the company. They are also a way for the business to express
gratitude for the employees' efforts.

CHAPTER NO

Nature of business ethics

The nature of business ethics refers to the standard characteristics of human behavior
in its definition as its core concept.

1. Moral Prices

Because business ethics are completely focused on their morality factor, in today’s world,
community organization plays an important role in society and its actions are directly affected
in the welfare and welfare of society.The business condition of the business and the product
conditions that are being produced affects society so that people can discuss the nature of
business ethics.Therefore, it is compulsory to remember, business community self-employed,
self-inspection, self-control, self-sacrifice, and the moral values of society and moral society.
2. Related words

Ethics is a term of relationship with the concept of morality and immorality. It is separate from
a person, from society to society, from culture to culture, country to country is different. It
helps to define moral and immoral words of business ethics.

3. Society’s interests

In these characteristics of business ethics, business ethics says that the business should first be
nice for society and community and then social welfare is also a business objective.There are
various social obligations in order to protect the departments of an important institution of
business and all formal or informal groups that contribute to the improvement of business or
business-related directly or indirectly with organizations like employees, shareholders,
consumers, and their stakeholders.Business ethics help to determine the conditions and
standards for understanding social affection or business relationships. Describes what it expects
from community or society business and what the concept gives about the business.

4. Structure

Business is an organization that includes various social and economic rules and regulations. The
business is always trying to limit its activities (formal or informal) within the range of social,
cultural, regional, religious, and economic environments.Business ethics is a kind of code of
conduct that covers a person’s criteria and behavior guidelines, such as how to behave yourself,
how to follow the criteria, how to improve yourself, etc.It protects customers and other social
members like shareholders, society, and employees to explain the nature of business ethics.

5. against profit-making

Business ethics is not against making a real or fair profit. However, it is against the profits that
acquire fraud and exploit their customers, employees, and investors. It supports business
activities but not through fair or fair media and illegal activity.

6. Willingness Requirement
Business ethics can not be compelled by law and other aspects. It must be accepted by any
businessman as self-love. It should come from the inner part of the soul. Traders follow the
guidelines of moral trade activities and not by any law.
Chapter

Features

The nature of business ethics refers to the standard characteristics of human behavior in its
definition as its core concept.

1. Stakeholder balance

This is the first feature of business ethics and it means that business principles follow two basic
points, such as protecting the interests of shareholder values or enriching the demands of
multiple stakeholders.Stakeholders include internal and external traders like employees, local
communities, and customers.

2. Mission and vision-driven

In these characters of business ethics, ethical business generally offers some more attention
than profits and values and beliefs. When these values are supported by management and
supported by valuable individuals, the profits become more effective and unified by general
goals rather than easily co-existent.Such values and beliefs are well-educated for their
relationships with their employees and the public.

3. Process Integrity

It is the third characteristic of business ethics and its meaning is that organizational culture
performs regularly, producing hundreds of different processes. This process can be effective,
healthy, or unhealthy depending on the various factors involved.For example, ‘Healthy’
competition is the start of success, management, and delivery of equal treatment by foils.
Unhealthy competition is completely different, they have misaligned good performers of goal
and outstanding treatment.So, that’s why human resource managers help in reviewing integral
processes and protecting them with transparency.

4. Long-term perspective

In these characteristics of business ethics, organizations follow long-term mechanisms with

their moral values and beliefs. This long term scenario is not only about wealth or profit, but it
is related to the community and their criteria. It helps to reflect self-reflection policy so that
employees of an organization can decide independently and improve themselves.Thinking from
a long-term perspective, businesses are allowed to implement the plan for their future growth
and development.Moral problems and incidents arise across all functional areas of the
company and across all levels of the company.