Business Environment

C. P. - 201

DR. SAMBHAV GARG

ASSTT. PROFESSOR
M. M. I. M., M. M. University, Mullana (AMBALA)
 BUSINESS ETHICS

Do the
Right Things
 CODE OF CONDUCT
Generation 1st conflict of Interest
Protect company & Shareholders from Employees
Generation 2nd Commercial conduct
Protect company reputation / ensure fair competition
Generation 3rd Employees & 3rd Parties
Protect workers, customers, suppliers; Improve Corp, Reputation,
motivation, customer satisfaction
Generation 4th Community/Environment
Protect environment and respect communities in which business
activities occur. (Bhopal)
Generation 5th Accountability and Social Justice
Concern over Investments in nations whose governments don’t
respect human rights or rule of law (Burma, Nigeria)
 BUSINESS ETHICS
Interest in the Business Ethics has been increasing since
1960.
Interest has been spurred by headlines of business
scandals
A 1982 study reported that of the Fortune 500
companies, 115 companies (23%) had been convicted of
at least one major crime or paid penalties for serious
misbehavior
Is the importance of business ethics declining in business
and government practices?
Greater focus on ethics, morals, and values
 INTEGRITY
Do what’s
right, legally
and morally
ETHICAL BEHAVIOUR
Doing what is
right when
nobody is
looking
 WHAT IS INTEGRITY
It means the “The thorough integratedness of
Public, Private and Deep inner life around a
balanced set of Principles.
Integrity is simply
Keeping promises and fulfilling expectations
The value we place on ourselves
The ability to walk our talk
About what we will not do
About what we will not give up
About what we stand for at all costs
 INTEGRITY COMES FROM MORAL
VALUES
Loyalty
Duty
Respect
Selfless Service
Honesty, Honor
Integrity
Personal Courage
WHAT IS ETHICS
Ethics are moral principles
or rules of conduct derived
from core values, that
people use to guide their
behavior.
 ETHICS
Ethics can’t satisfy everyone, but
majority should agree.
Balance interests of constituents
Business
Personal
No one group benefit while other
suffer
Issue of trust
In 90% of the ethical
problems we face, we know
what we should do. The real
question is whether we are
willing to do the right thing
when it is likely to cost more
than we want to pay.
TWO DIMENSIONS OF INTEGRITY
Personal: Standing up for our most
fundamental beliefs and
commitments, even in the face of
adversity.
Professional: Standing up for the
goals and commitments of our
profession, even in the face of
adversity.
 WHAT CAUSES UNETHICAL
BEHAVIOUR
Stress
Confusion
Pressure to perform at expected
levels
Competition within the industry
No knowledge
TYPES OF UNETHICAL BEHAVIOUR
Cutting corners on quality
Covering up incidents
Abusing or lying about sick days
Lying or deceiving customers
Putting inappropriate pressure on others
Taking office supplies from the office
Taking credit for co-workers ideas/work
Charging personal purchases on the company
Taking or giving bribe
 ETHICAL WEAKNESS
Several high profile ethical
weaknesses:
Price Fixing
Restraint of competition
Government corruption
Financial scandals
Product safety
Discrimination
 OBSTACLES
Ego
Time
Ignorance
Unreliable information
 INTEGRITY STANDARDS
ADDRESS MANY SUBJECTS
Avoiding conflict of interest
Proper use of company assets
Accurate recording of documents
Compliance with laws
Observance of accounting and
control procedures
 PROHIBIT
Employee disrespect harassment
Non reporting of unsafe practices
Abuse of drugs, alcohol or other
intoxicants
Acceptance of Gifts, Entertainment and
favours
Trading based on “Inside Information”
Misuse of company assets
Use of unlicensed software
Downloading inappropriate materials from
Internet
Using electronic mail for ‘non-business’
purpose
Act leading to leakage of ‘confidential
information’
Inaccuracy and incompleteness of company
documents
Contribution to political parties
Payment to Govt. … officials
Non-cooperation with Govt. ….
Investigations
 WHAT IS IT FOR ME TO BE
ETHICHAL?
Quite a bit –
A more accurate perception of the
world around you,
Greater control over your behavior
A stronger personality and greater
likelihood of being happy in life”
Individual appreciation
IN SIMPLE TERMS
Is it ethical?
Is it legal?
Is it OK?
Is it Right?
Is it fair?
Does it hurt anyone?
Have I been honest with those affected?
Can my conscience live with this
decision?
 ASK YOURSELF THE FOLLOWING
QUESTIONS
How would I feel if my
decision was printed in the
local newspapers?
How would I feel if my family
found out about my decision?
 HOW BEING ETHICHAL BENEFITS
ORGANISATION
Improve organizational values
Customers value us more
Cultivate strong team work and
productivity
Support employee growth and meaning
Ensure policies are legal – doing right things
Avoid criminal acts ‘of omission” and lower
fines
Promote a strong public image
Contributes to enhanced performance
HISTORY IS FULL OF
EXAMPLES TO SHOW THAT
STRUCTURES, SYSTEMS, OR
FOR THAT MATTER,
CIVILISATIONS, WITHOUT
ETHICO-MORAL CONTENT
AS THEIR FOUNDATION, ARE
SOONER RATHER LATER
BOUND TO COLLAPSE.
THANK
YOU