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Ethics (Nikita Yadav Y20282026)

This document discusses two topics: [1] Ethical values and morality among Indians, and [2] Corporate scams from India. For the first topic, it outlines how ethics originated from ancient Indian scriptures and were centered around virtues like honesty, fairness and integrity. It then analyzes some causes for the degradation of ethics among Indian youth. For the second topic, it defines corporate scams and fraud, describes some major scams in India like Satyam, Kingfisher Airlines, and PNB, and lists causes like weak regulations and governance failures that enable such scams.
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0% found this document useful (0 votes)
137 views11 pages

Ethics (Nikita Yadav Y20282026)

This document discusses two topics: [1] Ethical values and morality among Indians, and [2] Corporate scams from India. For the first topic, it outlines how ethics originated from ancient Indian scriptures and were centered around virtues like honesty, fairness and integrity. It then analyzes some causes for the degradation of ethics among Indian youth. For the second topic, it defines corporate scams and fraud, describes some major scams in India like Satyam, Kingfisher Airlines, and PNB, and lists causes like weak regulations and governance failures that enable such scams.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SESSION: 2020-21

Department: MBA (1st year)

Assignment: Indian Ethics & Ethos

BUM-CC-126

2nd MID ASSIGNMENT

Section - B

Submitted By: Submitted To:


Nikita Yadav Dr. Anil Kashyap

Enroll no. Y20282026 (Department of Business Management)


1. ETHICAL VALUES AND MORALITY AMONG INDIANS
Introduction:

As we know that ethics and morality plays the vital role in life of human, it helps the person
to identify “what is right or what is wrong”. Among Indians ethical values are related with
the ancient Vedas: the Rigveda, the Yajurveda, the Samaveda and the Atharveda. In ancient
India, the instruction of a teacher to a student would start as follow:

“Let your conduct be marked by right, including study and teaching of the scriptures; by
truthfulness in word, deed and thought; by self-denial and the practice of austerity. Deviate
not from the path of good”.

Ethics is system of moral principles. Ethics is concerned with what is good for individuals
and society and is also described as moral philosophy. The termed is derived from the Greek
word ‘Ethos’ which can mean custom, habit, character or disposition.Aristole was one of the
great philosophers to study the subject. to him, ethics was more than a moral, religious or
legal concept .to determine what is ethically good for the individual and for the society, he
said, it is necessary to posses three virtues of practical wisdom: temperance, courage and
justice. Morality is derived from Latin word ‘moralitas’ which means manner, character and
proper behavior.

“Your beliefs become your thoughts, Your thoughts become your words, Your words
become your actions, Your actions become your habits, Your habits become values, Your
values become your destiny” ………. Mahatma Gandhi

Integrity Moral

Fairness

ETHICS

Value Principle
s

Choice Honesty

Rights
Significance of the ethical values:

The growth and development of Indian ethics and values till date has been mainly depends on
few areas till date. There is more value for our culture and throughout the world. Indian
culture plays an important role in including ethical values. Indian values gave prime
importance to right to happiness for all human beings. Indian culture is complex in nature and
with diversity in religion and their customs we live with unity .the two most important tenets
of Indian culture are human values and holism. Human values refer to moral, spirituals and
ethical values while holism means oneness or unity.

Indian culture is very rich and diverse and teaches us to be tolerant to others. Human values
are inculcated from the Vedic teaching to lead a peaceful life. The Bhagawad Gita is
considered as the essence of the Vedas and Upanishads. important values that are ever
relevant and unchanging are found in the form of scriptural texts in the Indian culture.

1. Vedas
2. Bhagawad Gita
3. Manusmriti
4. Ramayana
5. Dhammapadda

Indian culture is one of the oldest culture in the world. India had an urban civilization even
during the Bronze Age. The Indus valley civilization (Harappan civilization) dates back to
3300BC- 1300BC. The way people live in India reflected its culture.

 Unity in diversity
 Touching feet of elders
 Fasting
 Atithi devo Bhava
 Festivals

Causes of moral degradation among the Indian youth:

Values are the principles, standard conviction and beliefs that people adopt as their guidelines
in their daily activities. Some of the reasons which are responsible for degradation of ethical
values in youth:

1. Parental behaviours
2. Influence of mass media
3. Defective education system
4. Value placed on the sex of the child
5. Economic change
6. Dirty politics
Conclusion:

According to me, ethic play important role in the life of every human, but in modern era the
degradation in ethical values are increasing day by day. So reduce this serious problem,
everyone have a duty to understand the ethical values and morality and adopt these good
values in the life, respect elders, treat everyone equally, respect all religions and all casts.

“The greatness of a nation and its moral progress can be judged by the way its animals are
treated.”………………Mahatma Gandhi
2. CORPORATE SCAMS FROM INDIA
Introduction:

Day by day countries are starts developing and new technology comes into existence. But
some where it also introduces various types of scams. These scams really effect the growth of
country as well as the growth citizen. Corporate frauds have emerged as the biggest risks
which companies are exposed to, and are increasingly becoming a big threat.

“A scam is a deceptive scheme or trick used to cheat someone out of something,


especially money”. In other words is defined as, a fraud or scam is an intentional deception
made for personal gain or to damage another entity.

Incidents of the frauds are increasingly at an alarming rate and in the process:

 Destroy the confidence of the investors in stock markets


 Results in enormous destruction in wealth of investors
 Damage the reputation of the affected company

Scam

Criminal Civil law


voilation

According to Indian Law: Indian contact Act, section of the act defines “scam or fraud” as
Fraud means and include any of the following acts committed by a party to a contract or with
his connivance, or by his agents, with intent to deceive another party there to his agent, or to
include him to enter into a contact. Some regulatory legislations are as follows:

 Indian Contract Act 1872


 Indian Penal Code
 Prevention of Corruption Act
 Prevention of Money Laundering Act
 The Companies Act 1956
 Clause 49 of Listing Agreement
 CARO 2003
Major corporate scams in India:

1. Satyam computer
Satyam was the first major scam of its kind, which shocked the country and led to
tightening of regulations, reporting and governance mechanism. This scam had the
same shock and awe affect like what Enron and Lehman brothers had in the USA.
Promoters of the company had devised ingenious methods to commit frauds with
large scale dummy billing for service rendered to foreign clients. the company was
consistently showing large bank balances in its financial statements, which were not
consistent with other IT companies considering the size of its business. At the closure
of financials and to satisfy auditor, fake bank confirmation and statements were
generated and produced as evidence of balances to auditors. The amount involved in
the scam was around USD 1 Billion.

2. Kingfisher Airlines (KLA)

KLA was another corporate fraud, which was first of its kind in the Airlines industry,
which ultimately led to fall of the empire of king of good times. The airline was
launched by flamboyant Vijay Mallya, well known as king of good times. Over a
short period of time KLA established a reputation of finest private airline of the
country with high quality service.

Currently Vijay Malia is in the UK and fighting battle in courts to stop his
repatriation into India. Consortium of banks led by SBI has exposure of around RS,
9000 crores to now a virtually bankrupt airline.

3. Jet Airways

The airline, which was once India’s pride, landed in IBC for rescue. After multiple
bidding over 18 months, jet finally had bidder, who is non- experienced in the airlines
business. Jet had acquired an unassailable position in the industry and was a preferred
airline for the business community, top industrialists and CEOs of the country. The
company indulged in multiple fraudulent practices of-

 Overstating commission paid to a Dubai related party based in Dubai for


years. This resulted in significant overstatements of expenses and
underreporting of profits.
 diversion of funds by giving loans of around Rs.3353 Crores
 accounting of invoices of fake on jet miles
4. Bhusan Steel

Bhusan Steel was an unprecedented case of defrauding major banks of India. The
company was acquired by Tata steel, though matter is still under litigation. Promoters
of the otherwise profitable company, with modern large scale plants, indulged in
multiple fraudulent practices of:
 Transfer of funds borrowed by the company to various related parties by way
of loans or advances
 Accounting of bills for capital and other purchases, which were never incurred
and funds so generated were misappropriated by promoters for their benefits
 Amount involved was around Rs.5000 crores
5. PNB

PNB was the first major banking scam reported in the country, involving a massive
amount of around Rs.1500 crores. Fraud was committed by Nirav Modi and Mehul
Choksi, through Gitanjali Gems a listed company owned by him.

Causes of scams:

There are various major causes of these types scams happened in the country some are
listed below;

 political support
 banks / agents support
 simple government policies for rich people
 less paper work and lack of investigation during investment or loan procedure
for a large scale business men

According to me, these types of scams can be neglected while using certain measures. these
measures should adopt by the government and government also started taking some methods
to reduce these scams like

 Reduce corruption
 Proper Taxation
 Regulatory paper work
 Proper investigation before giving loans to company
 Strict policies
 Shares percent
 Proper & complete financial audit report
3. MORE SENSITIVE GENDER
According to the various researches it’s not cleared about who is more sensitive gender on
the earth. But according to me, women are more sensitive gender on earth it have certain
reasons. Ethical decision making is sometimes challenging for managers because although
they often have enough knowledge to make ethical decisions in different situations, they
sometimes fail to make the right decisions. The reason is that several factors are at work
between the decision making process and the actual decision made at the end that can affect it
all. Many of these factors are considered organizational constraints or requirements which are
related to the environment and conditions under which a decision has to be made.

A review of various studies has shown that moral sensitivity plays a significant role in the
process of ethical decision making, commitment to ethics, and preventing moral misconduct.
Esmaelzadeh et al. have referred to moral sensitivity in their study as a model that would
allow ethical managing. They believe that this sensitivity has critical effects on many aspects
of nursing manager’s professional performance, especially that it can contribute to the
development to the development of moral performance in them. there are various principles
of ethical sensitivity:

 Respect others
 serve others
 show justice
 honesty
 build community

Women are always more sensitive than men because she plays various roles in her life. she
do large number of duties but never she charge any type of payments, she play variety of
character: mother, daughter, wife, friend etc. She always fulfill his siblings needs never
complaint anything. She works 27*7 never went on holiday. If she works somewhere but she
will manage both home and office work with equal energy. In our Indian culture women
treated as the “Devi” or “Maa”. So it’s our duty to respect women, and treat all women as our
mother or a sister.
4. THE ROLE OF EDUCATION IN ETHICS
Education is the fundament process of human life. Therefore, in education ethics has a very
important and effective role. In order to be a good human, ethics should be placed as course
in educational system. Ethics plays a very important role in education. ethics interpreted a the
discipline of dealing with good and bad with commitment and moral duty.

Ethics is the most essential and functioning branch of philosophy in today’s world. Ethics are
important part of the decision making but students are not taught to think ethically. students
not understood ‘what is ethics’ even they don’t know about difference between ethic and
morals.

Four principles of Ethics:

 Honesty
 Confidentiality
 Conflict of interest
 Responsibility

Nowadays, ethics has an essential place in all the field of life. Education is the basic need of
the citizen, but without ethics education is not up to that level. Since in education we study
about science, commerce, and arts it give us huge knowledge but never give good
personality, so ethics helps to grow up the personality. Ethics teach us about life, about
manners, about surrounding and creatures, about respect, and various things. Ethics helps
know the real meaning of human life.

In Bhagavad Gita, Lord Krishna says” whatever happened, happened for the good.
Whatever is happening is happening for the good. Whatever will happen, will also happen for
the good.”
5. ROLE OF ETHICS IN THE MARKETING OF COMPANIES
PRODUCT
There are various companies use children to market their product even it is not for them, this
is the serious issue going in the world. Due to the money greed some parents allow their
children to do advertising for the various product even it is not for children use it create a
huge impact in the mind of children who are watching that types of ads.

Ethics is also important in company’s work because if they do marketing in the wrong way it
teaches children bad knowledge. Many time companies target children as their even while the
product is not for them, just to earn profit. According to me it is just a scam which fit wrong
information to society.

For example:

1. Ads of alcohol teenagers are used for doing ads, so it make wrong impact on the mind
of youngster to promote alcohol , so the teen think drinking beer or wines is the
quality of cool person and there are many other example of wrong advertisement. for
just earning little profit companies forget the ethics and values they just only and only
want to earn money never think what impact it create on the minds of the teenagers.
2. Ads of junk food, junk food processing companies use children for their marketing
and consumer. Using children in ads create cute impact on the consumers, and
consumer easily convinced with the ads. product like ice cream, cold drinks,
chocolate and many more.
3. ads of smoking product

Conclusion:

Companies has a right to market their product make profit but they also work with right
manner make ads but use correct method to publish their product or service in the market.
Earning profit is not bad but using wrong method and procedure is wrong, so company have a
duty to use proper method and valid measure.
6. ETHICAL DELIMMA IN FINANCE, MARKETING HRM AND
INTERNATIONAL BUSINESS

Role of Ethics: Ethics plays an important role in finance, marketing and international
business and sources of ethical behavior in finance and accounting can be form the
following:-

 Code of conduct for Accountants and Auditors


 Code of conduct for Merchant bankers
 Code of conduct for Insurance Agent
 Code of conduct for Bankers
 Code of conduct for Brokers and Members
 Code of conduct for CEO

Ethical dilemma in Finance

Ethics in finance can be developed around three broad themes:

1. In financial markets
2. In financial services industry
3. By financial people is organizations

Ethical dilemma in HR

1. Employee responsibility
2. cash and compensation plans
3. Performance appraisal
4. Privacy issues
5. Race and disability
6. Safety and health
7. Employment issues
8. Restructuring and Layoffs

Ethical dilemma in international business

1. Labor standard
2. Environment
3. Marketing
4. Corruption
5. Human rights
6. Cultural diversity

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