S. R.

LUTHRA INSTITUTE OF
MANAGEMENT
Business Ethics and Corporate Governance
Shift : 1
Sem : 4
Group No.:8
Class: F1

Submitted to: Prof. Riddhish Joshi

Submitted By:
Urvi Brahmbhatt – 167500592013
Samir Modi - 167500592054
India lacks business ethics
 BUSINESSES SHORT-CHANGE CUSTOMERS AND
OTHER BUSINESSES. FINALLY, A BREAKDOWN OF
TRUST BOOMERANGS ON THEM.

BREAKDOWN OF TRUST

CULTURAL FACTORS

THE WAY FORWARD

 SUMMARY AND ANALYSIS

• Business ethics are rules of business by which approach of business

activity may be judged. It is simply applying general rules of ethics in
business.
• Business needs to function as responsible corporate citizen in the
country.
• In every market customer is treated as a king.
• Many businesses follow unethical practices in routine life.
SITUATION OF VARIOUS INDUSTRY IN INDIA

1) Tourism industry
2) Financial services industry
3) Real estate
 Tourism industry:

Despite of our diverse geographies and rich cultural heritage,

India received only 6.5 million (2011) foreign tourists as compared to
57 million in China, according to World Bank.
“Atithi Devo Bhav”
Financial services industry:

Financial services are another sector that cannot afford to lose its
customer trust. Yet, frauds are becoming a regular feature. Trust deficit
will impede the future growth of the sector.
3% into equity and mutual funds.
57% into low risk fixed deposits.
Real estate:

Raising prices in a period of slackening demand to retain investor

interest, default on features or delivery time and unhindered use of
black money in the purchase and sale of properties is driving middle
class home buyers out of the market.
Businesses treat other businesses badly.
Not making timely payment or refusing to pay one’s vendors on
flimsy grounds is a common occurrence.
 REASONS

Max Weber has showed that values determined social action and
culture shaped economic development.
Marwaris, Gujaratis in North and West and Chettiars in South
could succeed initially because of cultural orientation towards hard
work and entrepreneurship.
• The reason behind unethical practices are

Poor contract consciousness as a society

Slower judicial decisions
Ineffective enforcement of tort laws.
Compensations are often delayed or low
The time and money spent in fighting cases are more.
 SUGGESTIONS
• A system of online filing of complaints will improve complaint
registration and empower unorganised customers against unethical
business practices.
• India needs tough regulators for high complaint sectors, like real
estate and travel and tourism.
• Tightening tort laws and providing for class action suits will dent
fraudulent business practices.
• Attitudinal changes are needed. Aggrieved customers must raise their
voice against deficiency in services at all forums, starting from social
media to consumer courts.
THANK YOU