Ethics and Transparency of
business
Outline
Introduction.
Objectives.
Dos and donts.
Work ethics
Dimensions of work Ethics.
What Does Business Ethics Mean?
Ethics, Economics and Law: Venn Model
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Introduction
Every individual of this world wants to live in an ideal
world,where he seeks to determine the norms,ideals and
standards of the particular society or organization.The ideals
of good refer to the ethics.
Ethics is the subject of philosophy.It refers to the standards
on which the person decides what is right or wrong or good
or bad.
It prescribes what human beings ought to do,usually in terms
of rights,obligations, benefits to society,fairness ,or specific
virtues.
Ethics can be defined as a set of moral principles,which
guides the code of conduct and behaviour of a human
being in his life and society.
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Definitions
Ethics involves a discipline that
examines good or bad practices
within the context of a moral duty
Moral conduct is behavior that is
right or wrong
Business ethics include practices
and behaviors that are good or bad
Two Key Branches of Ethics
Descriptive ethics involves
describing, characterizing and
studying morality
What is
Normative ethics involves supplying
and justifying moral systems
What should be
Objectives
To develop the value system.
To create strong work culture.
To prevent social evils
To define the working pattern of professional life.
To improve the social life.
To set the standards of personal life and norms of
behaviour.
To set a standard for dos and the donts.
To set a mission to succeed in life.
To balance the need and wishes of human beings.
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Work ethics
Work ethics is a set of moral principles or
accepted norms of
behaviors governing the conduct of a
group of persons involved
in some work situation to achieve certain
desired objectives.
Most people want to live in a good society where justice and
charity prevails. If we consider ourselves good persons we
must take the responsibility of helping the society.
Every human being has got some negative characteristic but
some are treated as very bad such as cheating, stealing and
prevaricating is not exactly forgiven in the business world. In
modern business environment where the globalization has
spread all over the world the need for commonly accepted
ethical standards is of great importance.
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Business Ethics:Today vs. Earlier
Period
Expected and Actual Levels
of Business Ethics
Societys
Expectations
of Business
Ethics
Ethical
Problem
Actual
Business
Ethics
Ethical Problem
1950s
Time
Early 2000s
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Dimensions of business ethics.
Rightfull expectations
When an employer gives an oppurtunity,career and a status to an
employee,the employee should give out his or her best to the
organization.This is ethical demand of duty.
On the other hand an employee also has rightful expectation from the
employer that they should get career advancement,recognition and
reward for their work.This is called ethical employee-employer
relationship.
Sense of loyalty towards the organizations
Loyalty means safeguarding and promoting the interest of the
organization.A loyal employee should not promote thoes personal
interest of a competing organization at the cost of the organization.
Discipline
Every organization has written or unwritten rules,norms and ways of
working which the employees have to follow.
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Sources of Ethical Norms
Fellow Workers
Fellow Workers
Family
Regions of
Country
Profession
The Individual
Friends
The Law
Conscience
Employer
Religious
Beliefs
Society at Large
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Dos and donts
DOs
Punctuality.
Courtesy
Efficiency
Hard work
Sincerity
Devotion to duty
Discipline
Promptness
Regularity
Initiative
Donts
Insubordination
Lethargy
Corruption
Dishonesty
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Making Ethical Judgments
Behavior or act
that has been
committed
compared with
Prevailing norms
of acceptability
Value judgments
and perceptions of
the observer
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Transparency
Definition
Transparency ,as used in the humanities, implies
openess,communication and accountability.
In business context, transparency means following
certain rules and regulations and displaying relevant
information to the investors for better understanding.
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Will your business be a window
or a wall ?
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How to introduce transparency
Shoot videos that give an glimpse into the way
your company operates.
Allow your employees to blog,
build public relationships, and share their ideas
about your industry with the world.
Provide a way for your customers (and everyone,
really) to peek in and see how your product is
performing.
could encourage customers to share their ideas
and write about their experience with your brand in
a public forum( eg. Mouthshut.com).
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Corporate Social Responsibility
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Defintion
CSR is a form of corporate selfregulation integrated into a business model.
The goal of CSR is to embrace responsibility for
the company's actions and encourage a positive
impact through its activities on the environment,
consumers, employees,
communities, stakeholders and all other members
of the public sphere.
An obligation, beyond that required by the law and
economics, for a firm to pursue long term goals
that are good for society
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Key Issues in CSR
Labour rights:
child labour
forced labour
right to organise
safety and health
Environmental conditions
water & air emissions
climate change
Human rights
cooperation with paramilitary forces
complicity in extra-judicial killings
Poverty Alleviation
job creation
public revenues
skills and technology
Reasons to undertake CSR
It aids the attraction and retention of staff
It attracts green and ethical investment
It attracts ethically conscious customers
It can lead to a reduction in costs through recycling
It differentiates the firm from its competitor and
can be a source of competitive advantage
It can lead to increased profitability in the long run
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Spectrum of CSR
Poor CSR
Good CSR
No employment
Taking care of workers
No concern for indirect effect
(land, water, air)
Low dependence on non
renewable resources
Destruction of agricultural
land
Not willing to listen to other
stakeholders
Appropriate of land not being
compensated
Non compliance of rule of land
High awareness about
CSR initiatives
Land compensation
Increased monitoring
system
Environment responsibility
Responsibility towards
employees
Living wage and social security
Respect for the maximum amount of
working hour(especially in India)
Occupational health and safety
Non-discrimination
Well lit and ventilated working
environment.
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Responsibility towards
customers.
Fair prices.
Unfair means like under weighing the
product, adulteration, etc. must be
avoided.
Products and services must be
qualitative
There must be regularity in supply of
goods and services
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Responsibility towards
government.
Setting up units as per guidelines of
government
Payment of fees, duties and taxes regularly
as well as honestly.
Not to indulge in monopolistic and restrictive
trade practices.
Conforming to pollution control norms set up
by government.
Not to indulge in corruption through bribing
and other unlawful activities.
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Responsibility towards society
to help the weaker and backward sections of the
society
to preserve and promote social and cultural values
to generate employment
to protect the environment
to conserve natural resources and wildlife
to promote sports and culture
to provide assistance in the field of developmental
research on education, medical science,
technology etc.
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Responsibilty towards investors.
Ensuring safety of their investment,
Regular payment of interest,
Timely repayment of principal amount
Run the business efficiently
Proper utilisation of capital and other
resources.
Growth and appreciation of capital.
Regular and fair return on capital invested
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ByAvneesh Bansal,
Vinay Jain,
Akshay Gupta
Nishita Kanodia
THANK YOU
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