Professional Documents
Culture Documents
Business Ethics
Business Ethics
Business Ethics
You are the Marketing Manager of a progressive FMCG company. Your MD has asked you to devise
the marketing plan of a new product to be launched soon. He had asked to comply with all relevant
ethical issues in your plan. Indicate and clarify the ethical issues – you would include in your plan.
1. Truth in Advertising: All advertising and promotional messages should be truthful and not
contain any false or misleading statements or claims. The claims made in the advertising
should be supported by scientific evidence or proof.
2. Respect for Consumers: The marketing plan should respect the privacy and dignity of
consumers. This includes not targeting vulnerable or disadvantaged groups with misleading
messages or products that exploit their needs or weaknesses.
4. Social Responsibility: The marketing plan should also reflect the company's commitment to
social responsibility, such as promoting diversity, inclusivity, and ethical sourcing practices.
5. Fair Pricing: The pricing of the new product should be fair and not exploitative. The price
should be based on the value of the product, not on the ability of consumers to pay for it.
6. Transparency: The marketing plan should be transparent about the company's practices and
policies, including how the product is sourced, manufactured, and distributed.
You are heading the HRM department of a renowned fast developing company in automobile sector.
For the planned expansion for setting up a new unit, you are to recruit no. of personnel in various
departments at various levels. Indicate and clarify the ethical considerations you will adopt to deal
with the specific issues - Cash & Compensation, Race, Gender, Personal Loyalty, Health & Safety
As the head of the HRM department of a fast-developing automobile company, I understand the
importance of ethical considerations when recruiting personnel for the new unit. Here are the ethical
considerations I would adopt to deal with the following specific issues:
1. Cash & Compensation: We will ensure that the compensation and benefits offered to new
recruits are fair and based on their skills, experience, and market rates. We will avoid any
discrimination in compensation on the basis of race, gender, or personal loyalty. We will be
transparent in our compensation policies and communicate them effectively to all new
recruits.
2. Race & Gender: We will follow a non-discriminatory hiring policy that is based purely on
merit and skill. We will avoid any discrimination based on race, gender, ethnicity, or any
other personal characteristics. We will ensure that our recruitment process is inclusive and
encourages diversity, and we will provide equal opportunities to all candidates.
3. Personal Loyalty: We will avoid any nepotism or favoritism in our hiring process. We will
ensure that all candidates are assessed based on their skills, experience, and potential, and
not on their personal connections or relationships with the company or its employees.
4. Health & Safety: We will ensure that all new recruits are provided with a safe and healthy
working environment. We will comply with all relevant health and safety regulations and
provide appropriate training to all new recruits to ensure their safety and well-being.
You are the Finance Manager of an upcoming Start-up engaged in providing loans. financial
assistance to MSME sectors. Your MD advised you to prepare a Code of Ethics to be followed by all
the employees in your department. Indicate and clarify the salient features which you will include in
your document.
As the Finance Manager of a start-up engaged in providing financial assistance to MSME sectors, I
understand the importance of a code of ethics to ensure that all employees in the finance
department adhere to ethical principles. Here are the salient features that I would include in the
code of ethics document:
1. Transparency: All employees should conduct themselves with honesty, integrity, and
transparency in their dealings with customers, stakeholders, and colleagues. This includes
being truthful and accurate in all financial reporting and avoiding any conflicts of interest.
3. Fairness: All employees should treat customers and colleagues with respect and fairness.
This includes ensuring that loan application processes are fair and transparent, and that
customers are treated equitably.
4. Compliance: All employees should comply with all applicable laws, regulations, and industry
standards related to lending and finance. This includes adhering to anti-money laundering
regulations, data protection laws, and other relevant legislation.
5. Risk Management: All employees should exercise prudent risk management practices to
protect the interests of the company and its customers. This includes identifying and
managing financial risks, such as credit risk and market risk, and ensuring that appropriate
risk management controls are in place.
Differentiate-illustrating with any Real Life examples / Business Unit (Indian / Foreign) Answer any
two of the following Norms & Ethics Ethics & Business Ethics Global Warming & World-wide Loss of
Bio-diversity Marketing Ethics & Ethics in Finance
Norms & Ethics: Norms refer to the shared expectations, behaviors, and beliefs of a particular group
or society. Ethics, on the other hand, refers to the principles and values that guide individual
behavior and decision-making. While norms may vary depending on the culture and society, ethics
are universal and apply to all individuals and organizations.
Real-life example: In some cultures, it is considered rude to eat with your left hand, while in others, it
is perfectly acceptable. However, ethical principles such as honesty and integrity are universal and
apply to all individuals and organizations regardless of cultural differences.
Marketing Ethics & Ethics in Finance: Marketing ethics refers to the principles and values that guide
ethical behavior in the marketing function of a company, such as advertising, sales, and promotion.
Ethics in finance, on the other hand, refers to the principles and values that guide ethical behavior in
the finance function of a company, such as accounting, financial reporting, and investment decisions.
Real-life example: The Enron scandal is an example of both marketing and finance ethics violations.
Enron used deceptive marketing tactics to portray itself as a successful and financially stable
company, while at the same time engaging in unethical accounting practices to inflate its financial
results. The result was a significant loss for Enron's investors and stakeholders.
Global Warming & World-wide Loss of Bio-diversity: Global warming refers to the gradual increase in
the earth's temperature caused by human activities such as burning fossil fuels and deforestation.
The worldwide loss of biodiversity refers to the loss of plant and animal species and the degradation
of ecosystems caused by human activities such as habitat destruction and pollution.
Real-life example: The Amazon rainforest is a prime example of the global warming and loss of
biodiversity crisis. Deforestation of the Amazon rainforest, which is home to a vast array of plant and
animal species, is contributing to global warming and leading to the loss of biodiversity. This not only
affects the Amazon region but also has a global impact on the environment and the climate.
Ethics refers to the principles and values that guide individual behavior and decision-making,
whereas business ethics refer to the principles and values that guide ethical behavior in the business
context, such as fair business practices, social responsibility, and compliance with laws and
regulations.
Real-life example: The Volkswagen (VW) scandal is a classic example of the difference between ethics
and business ethics. VW was caught cheating emissions tests by installing "defeat devices" in their
diesel cars that detected when they were being tested and reduced emissions accordingly. However,
when the cars were on the road, emissions were far higher than legal limits. This is an example of
unethical behavior by individuals within the company who were involved in the scheme, but also a
breach of business ethics since it involved cheating customers and violating environmental
regulations. The scandal caused significant damage to VW's reputation and resulted in billions of
dollars in fines and legal settlements.
Differentiate – illustrating with any Real Life examples / Business Unit (Indian / Foreign) Answer any
two of the following
Morality & Ethics ,Corporate Governance & Corporate Social Responsibility ,Marketing Ethics & Ethics
in HR , Long-range transport of toxic substances & Decline of coastal ocean quality;
Morality & Ethics: Morality refers to the principles and values that individuals use to determine right
and wrong behavior in their personal lives, while ethics refer to the principles and values that guide
individual behavior in a professional or organizational context.
Real-life example: A business owner who engages in personal behaviors that are considered immoral,
such as cheating on their spouse, may still be able to operate a successful business. However, if they
engage in unethical business practices, such as misrepresenting their products or defrauding
customers, it could lead to legal and reputational damage for the business.
Corporate Governance & Corporate Social Responsibility: Corporate governance refers to the system
of rules, practices, and processes by which a company is directed and controlled, whereas corporate
social responsibility (CSR) refers to a company's responsibility to operate in an ethical and sustainable
manner that benefits society and the environment.
Real-life example: Patagonia, an outdoor clothing and gear company, is an example of a company
that prioritizes both corporate governance and CSR. Patagonia's board of directors is committed to
responsible and sustainable business practices, and they have implemented programs to reduce their
carbon footprint and protect the environment. In addition, they have a well-established CSR program
that supports environmental and social causes through grants, activism, and volunteerism.
Marketing Ethics & Ethics in HR: Marketing ethics refers to the principles and values that guide
ethical behavior in the marketing function of a company, such as advertising, sales, and promotion.
Ethics in HR refers to the principles and values that guide ethical behavior in the human resources
function of a company, such as hiring, training, and compensation.
Real-life example: Nestle, a multinational food and beverage company, has faced criticism for ethical
violations in both marketing and HR. They have been accused of unethical marketing practices, such
as targeting infant formula to low-income families in developing countries, which has led to health
risks for infants. They have also been criticized for unethical HR practices, such as child labor and
forced labor in their supply chain. Nestle has taken steps to address these issues, such as
implementing ethical marketing guidelines and human rights due diligence in their supply chain.
Long-range transport of toxic substances refers to the movement of pollutants, such as chemicals
and heavy metals, through air and water over long distances. These substances can have harmful
effects on human health and the environment.
Real-life example: The Minamata Bay disaster in Japan is an example of the long-range transport of
toxic substances. In the 1950s and 60s, a chemical factory discharged large amounts of mercury into
Minamata Bay, contaminating the fish and shellfish that were a staple food for the local population.
The mercury poisoning caused severe neurological symptoms and led to thousands of deaths. The
toxic mercury also traveled long distances through the food chain, affecting wildlife and ecosystems
far beyond the local area.
The decline of coastal ocean quality refers to the deterioration of marine ecosystems, such as coral
reefs, seagrass beds, and mangrove forests, due to human activities such as pollution, overfishing,
and coastal development.
Real-life example: The Great Barrier Reef in Australia is an example of the decline of coastal ocean
quality. The reef is the world's largest coral reef system, but it has suffered significant damage from
human activities such as agricultural runoff, climate change, and tourism. Coral bleaching, a process
in which coral expels the algae that give it its color and nutrients, has become increasingly common
due to rising ocean temperatures. The decline of the Great Barrier Reef not only threatens the
survival of many species of marine life but also has negative economic impacts on the tourism and
fishing industries in the region.
Differentiate – illustrating with any Real Life examples / Business Unit (Indian / Foreign) Answer any
two of the following (2 x 10 = 20 Marks) Ethics & Business Ethics CO1, CO2 Corporate Governance &
Corporate Social Responsibility CO5, CO6 Climate Change & Global Warming CO6 Ethics in Finance &
Ethics in HR CO5, CO6
Ethics refer to the principles and values that govern individual behavior, while business ethics focus
on ethical principles and values in the context of business decision-making and operations.
Real-life example: Volkswagen's emissions scandal is an example of the difference between ethics
and business ethics. Volkswagen installed software in its diesel cars that cheated emissions tests,
resulting in higher emissions than allowed by regulations. This behavior was unethical, as it violated
environmental standards and put public health at risk. However, the decision to cheat on emissions
tests was also a business decision, driven by the company's desire to increase sales and profits.
Corporate governance refers to the system of rules, practices, and processes by which a company is
directed and controlled. Corporate social responsibility (CSR) refers to a company's responsibility to
operate in a way that benefits society and the environment, beyond its financial obligations to
shareholders.
Real-life example: Tata Group in India is an example of a company that focuses on both corporate
governance and CSR. The company has established a strong system of governance, with a board of
directors that provides oversight and guidance to the company's management. At the same time,
Tata Group has been a leader in CSR initiatives, with a focus on education, healthcare, and
environmental sustainability. The company's CSR programs have included initiatives to improve
literacy rates, provide clean drinking water, and reduce greenhouse gas emissions.
Climate change and global warming are often used interchangeably, but they refer to different
phenomena. Climate change refers to long-term changes in the Earth's climate, including changes in
temperature, precipitation, and weather patterns, while global warming specifically refers to the
increase in the Earth's average surface temperature due to human activities such as burning fossil
fuels.
Real-life example: The Paris Agreement is an international agreement aimed at addressing climate
change by reducing greenhouse gas emissions. This agreement was signed by 196 countries in 2015,
including India and the United States. Under the agreement, each country sets its own goals for
reducing greenhouse gas emissions, with a goal of limiting global temperature rise to well below 2
degrees Celsius above pre-industrial levels.
(i) Laws
(ii) Principles of morality
(iii) Customs of community
(iv) Policy of the company regarding fairness
(i) Towards env ironment inside the workplace and outside the
organization and community
(ii) Social responsibility towards Stakeholders
(iii) Good public image- sound business practices so that public image is
not tarnished