Ethical Responsibilty Of A

Business
In Context Of An IT Company

Submitted To:-
Asst Prof. D Choudhury

Submitted By:-

Bhanu Pratap Singh

Roll No- 21
Sec – A
Mba 1st Sem
Assam University
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 ETHICS
A set of values that describe what is right or wrong,
good or bad.

Oxford Advanced Learner’s Dictionary defines the word

‘ethics’ as “moral principle that govern or influence a
person’s behavior”.

Ethical behavior is in the eye of the beholder, but it is

usually behavior that conforms to generally accepted
social norms.
Unethical behavior is behavior that does not conform to
generally accepted social norms.
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An individual's ethics are determined by five
basic forces:
i. family influences,
ii. peer influences,
iii. experiences,
iv. values and morals,
v. situational factors.
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 BUSINESS ETHICS

•The value of what

should be done and
what should not be
done from the
business point of
view.

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Ethical issues for business

 Product safety standards

 Advertising contents
 Working environment
 Unauthorized payments
 Employee’s privacy
 Environmental issues

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 Why Business Should Be Socially
Responsible
 Public Image.
 Government Regulation .
 Survival and Growth .
 Employee satisfaction .
 Consumer Awareness.

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 The business generally interacts with
owners, investors, employees, suppliers,
customers, competitors, government and
society. They are called as interest groups
because by each and every activity of
business, the interest of these groups is
affected directly or indirectly.

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 Responsibility towards owners.
a. Run the business efficiently
b. Proper utilisation of capital and other resources.

 Responsibility towards investors.

a. Ensuring safety of their investment,
b. Regular payment of interest.

 Responsibility towards employees.

a. Timely and regular payment of wages and salaries.
b. Proper working conditions and welfare amenities. 8
 Responsibility towards suppliers.
a. Giving regular orders for purchase of goods.
b. Dealing on fair terms and conditions.

 Responsibility towards customers.

a. Products and services must be able to take care of the
needs of the customers.
b. Products and services must be qualitative
c. There must be regularity in supply of goods and services

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 Responsibility towards competitors.
i. not to offer exceptionally high sales commission to
distributers, agents etc.
ii. not to offer to customers heavy discounts and /or free
products in every sale.

 Responsibility towards government.

a. Setting up units as per guidelines of government
b. Payment of fees, duties and taxes regularly as well as
honestly.

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 Responsibility towards society.
a. to help the weaker and backward sections of the
society
b. to preserve and promote social and cultural values
c. to generate employment
d. to protect the environment
e. to conserve natural resources and wildlife

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 Social Values and Business
Ethics
Every society generally views certain
activities, conduct and behaviour of its
members to be undesirable or harmful to
others. Similarly, desirable acts and conduct
of people are recognised and appreciated in
society.
In relation to business, social values of
business may indicate:
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 The characteristics of good business;
 Objectives which are desirable for business
to follow;
and
 The manner in which business activities
should be conducted in the interest of
society

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 For example, we consider it bad, if any
business indulges itself in selling
adulterated goods or charging higher price
or polluting the environment. Thus, social
values of the business form the base for
social responsibilities. Just like social
values, business ethics also play a major
role while fulfilling social responsibilities.
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Managing Social Responsibility & Ethics Programs
Key steps
 Social responsibility and ethics must start at the top.

 A committee of top managers must develop a plan

detailing the level of top management support.

 One executive must be put in charge of the firm’s agenda.

 The organization must conduct periodic social audits

 Evaluate progress in achieving social responsibility goals

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 Ethics, success and leadership the
way
N. R. Narayana Murthy is as
well known as a promoter of
corporate governance
reformed excellent corporate
workplace ethical practices,
as he is as the co-founder of
Infosys Technologies Ltd.,
the Mysore-based company
that is one of India’s new
technology leaders

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 VISION
 The Company’s Vision Is: "To be a
globally respected corporation that
provides best-of breed business
solutions, leveraging technology,
delivered by best-in-class people."

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 MISSION
 Its Mission is: "To achieve our
objectives in an environment of
fairness, honesty, and courtesy towards
our clients, employees, vendors and
society at large."

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 Infosys’s stresses that its operations are
driven by key values that it calls C-LIFE :
 Customer Delight: A commitment to surpassing our customer expectations. 

 Leadership by Example: A commitment to set standards in our business and

transactions and be an exemplar for the industry and our own teams.

 Integrity and Transparency: A commitment to be ethical, sincere and open in

our dealings.
 
 Fairness: A commitment to be objective and transaction-oriented, thereby
earning trust and respect.
 
 Pursuit of Excellence: A commitment to strive relentlessly, to constantly
improve ourselves, our teams, our services and products so as to become the
best.

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To promote corporate social responsibility ,

The company established a philanthropic foundation

in 1996, which is mostly engaged in social, health
and education programs in India.
In a short span of time, the Foundation has
implemented numerous projects in its chosen
areas. The Foundation has undertaken various
initiatives in providing medical facilities to remote
rural areas, organizing novel pension schemes and
in aiding orphans and street children. 20
It has undertaken a large rural education program
titled "A library for every school" under which
5500 libraries have been set up in government
schools spread across many villages.
Other activities include the reconstruction of old
school buildings, setting up of rural Science
Centers and schemes to provide support to dying
traditional art and culture forms.

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 Unethical Practice Of Satyam
Computer Services Ltd
SEBI and CII exposed that
satyam’s account has been
falsified.
Founder and chairman
Mr. Ramalinga Raju confessed that
satyam’s balance sheet of 30
September 2008 contained;

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 Inflated figures of cash and bank balance of
Rs.5040 crores as against Rs.5361 crores reflected
in the books.
 An accrued interest of Rs.376 crores which was
non-exsistent.
 An understated liability of Rs.1230 crores on
account of funds was arranged by himself.
 An overstated debtor’s position of Rs.490 crore as
against Rs.2651 crores reflected in the books.
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 Conclusion
 Any firm that is serious about social responsibility
must ensure that its efforts are producing the
desired benefits. This is essentially applying the
control concept to social responsibility:

 Many organizations require current and new

employees to read their guidelines or code of ethics
and sign a statement agreeing to abide by them.

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 The organization should also evaluate how it responds to instances of
questionable legal or ethical conduct. Does it follow up immediately?
Does it punish those involved? Or does it try to delay and cover things
up? Answers to such questions can go a long way toward helping an
organization understand how it is doing on the social responsibility
front.

 On a more formal level, organizations occasionally conduct corporate

social audit - a formal and thorough analysis of the effectiveness of the
firm's social performance. Social audits are not conducted very often
because they are expensive and take a lot of time. Indeed, most
organizations are probably not doing a very good job in the general
area of social responsibility evaluation.

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Thank you

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