Chapter 1- Introduction to

Business Ethics
 Business Ethics
Business ethics is a branch of ethics which
prescribes standards of how the business is to
be carried out. It gives guidelines for the
companies response and accountability to its
various stakeholders like shareholders,
customers, employees, directors and
management, suppliers, regulatory bodies,
government etc
 Need of ethics
• Students to respecting positive moves
• It will build and groom a value based
organization
• Create awareness about social responsibility
• Making better individuals
Chapter 2- Role and Importance
 Importance of Business Ethics
1. Standard of Behavior
2. True north principles to lead a business
3. Short-term gain and long term pain V/S short
term pain and long term gain
4. Value based leadership creates ethical practices
5. Moral values of employees
6. Strong and independent board
7. Role of regulation in business ethics
8. Role of information technology ad business ethics
Chapter 3
•Skill
•Attitude
•Values
Eg Reliance capital
We believe that maintaining the highest level of integrity and
having unquestionable values are requirements for
delivering financial success for our clients. Our client-first
focus is integral to all stages in the decision making process.
It influences all decisions ranging from the solutions we
recommend to the boardroom. These principles are the
foundation on which we can build a sustainable business.
• Mission Statement
• To be a trusted partner that allows our clients
to feel secure in the knowledge that their
retirement, investment, debt, estate, tax and
philanthropic plans are complete, efficient and
organised, in order that they may understand
and use their wealth as a tool to accomplish
what is important to them in their lives.
• Vision
By 2012, it will be a company that is known
as:
"The largest, most profitable, innovative, and
most trusted financial services company in
India and in the emerging markets".
 Code of conduct

• For inspiration and guidance

• It disciplines an discourages unethical business
practices
• Education and mutual understanding
• Creates a good public image
• Quality standards
 Ethical Business
• Clarity of objective
• Quality norms
• Transparency in dealing
• Speed in Exploration and imagination in
execution
• Strong IT base
• Sincerity and truthfulness in advertising and
promotion
Unfair/unethical business practices
With respect to customers
• Pricing
• Advertisement
• Product promotion
• Custer service
• Price fixing
With respect to employees
• Job switching
• Insider information
• Industrial espionage
• Occupational crimes
Chapter 5 – Ethical Issues in
Management
 Example of ethical problems in
Management
• Pricing, advertising message, product
promotion, working conditions, customer
service, workforce reduction, environmental
pollution, community relations and supplier
relations.
Role of corporate governance
and ethics
– Is meant to run business ethically in manner such that
customers, distributors, employees, shareholders etc are
dealt in a fair manner
– Good governance should look at all stakeholders and not
just shareholder alone.
– It should come within
– There are lot of provisions in the companies act, members
of board and top management should ensure that these are
followed both in letter and spirit
 Chapter 6
Corporate Social Responsibility
 Corporate Social Responsibility
• “is operating a business in manner which
meets or excels the ethical, legal, commercial
and public expectations that society has from
business.”
 phases
• First- Merchant charity
• Second- Trusteeship : owners and workers were co-
trustees
• Third – Declaration of SR of business: stakeholders
• Fourth – Managerial Trusteeship: responsibility to
all stakeholders including community
• Fifth – Post Liberalisation and corporate citizen
 Social Responsibilities
• Within the business as well as its backward
and forward linkages
• Community support
• Public policy
 Social responsibility towards
various sections of the society
• Towards Share holder:- company should be
profitable especially in the long run, disclose all
norms, provide them annual report etc…
• Towards customers:- to forgo profits at the margin
for harmful causes, like a softy drink company uses
pesticides in the drinks which is not acceptable.
ensuring product safety, disclosing possible safety
risks, carry ethical marketing activities relating to
advertising message, product promotion etc …
• Towards society: Entering into partnering role
with government and voluntary organize at
local, national, and international levels
financial, managerial, organizational and
personnel resources support to the community,
reducing harmful pollution, eschewing bribery
by dealing with other parties, emerging values
and norms that society expects of business
even if not required by law presently e.g. at
Deepawali the use of eco friendly crackers are
encouraged then harmful once with pollute air.
 By undertake all the activities a company

• Can attract more capital from public and business

community and also attract trading partners
• Social problems can become opportunity, or can
lead to profits
• Create public image and good will is generated by
responsible social actions
• Find it easier to recruit and retain employees