ETHICS
AND
ORGANIZATION
Presented By:
Geetanjali
UID 132562051

ETHICS:
A group of moral principles or set
of values that define or direct us to
the right choice.
ORGANIZATION:
A social unit of people that is structured and
managed to meet a need or to pursue collective
goals.
BAD
GOOD

ETHICS AND ORGANIZATION:
 Organizational Ethics are the responsibility of
the organizational leadership and the
challenges of leaders to create an
organizational ethics.
 It is how an organization ethically respond to
an
internal and external stimulus.
 Business ethics contains corporate governance
and corporate ethics.

IMPORTANTS OF ETHICS IN ORGANIZATION
 Business ethics help the organization to protect their
reputations .
 Business ethics is needed to make business activities fair
and reasonable for consumers .
 Attract customers to the firm's products, thereby boosting
sales and profits.
 Make employees want to stay with the business, reduce
labor turnover and therefore increase productivity.

BUSINESS ETHICS THEORIES
Utilitarian theory
Egoism theory
Right theory
Justice theory
Common Good
theory

FACTORS THAT INFLUENCE BUSINESS ETHICS
 Leadership
 Personality
 External environment
 Competitors
 Organizational culture

COST OF USING UNETHICAL BUSINESS
 If the organization acts in illegal way the organization is forced to have a
supervisor from outside the organization , this supervisor is considered as ethics
monitor not as control manager , he is responsible for evaluating the
performance of the organization .
:
The organization should have members resist the employee who try to behave in
illegal and unethical ways for their interest at the expense of interest of the
organization .
so

 Capgemini is the world's leading technology solutions
provider and offers Consulting, Technology and
Outsourcing Services in India.
 Capgemini's business objectives and shared standards
are designed to benefit not only shareholders and
employees, but also every other participant in the
value chain.
 Seven shared values at the heart of Capgemini are :

McDonald's Legislation
 In 1972, Ray Kroc, the company’s founder made a rare donation of
$250,000 to Nixon's reelection campaign and in return got a favorable
legislation that allowed companies such as McDonald's to pay teenage
employees 20 percent less than federal minimum wages.
 Most observers consider this a typical case of corporate influence on
lawmakers to enact legislation that serve their selfish ends and harm
society.

Criticism against McDonald’s -
McLibel Case
• Allegations of unethical practices
• Criticized for serving fatty foods
• Exploiting children with their advertisements
• Cruelty to animals
• Antipathetic to unions
• Low wages to workers
• False advertisement of nutritious food
• Risked the health of most regular
and long-term customers

Investors: Ensuring safety of their money and timely payment of interest.
Employees: Provision of fair opportunities in promotions and training,
good working conditions, and timely payment of salaries
Customer: Complete information of the service and product should be made
available.
Personal information of the customers should not be used for personal gain.
Environment: Polluting industries should ensure compliance
with the government norms regarding air, water and noise pollution.
ETHICAL BUSINESS PRACTICES
• Following are a few ethical business practices that should be
followed to build an honest reputation and ensure smooth running
of the organization.

FORCES THAT SHAPE BUSINESS
ETHICS
Business
Ethics
Beliefs and Values
Moral Development
Ethical Framework
History
Defining Moments
Stories of Development
Government Regulations
Customers
Structure
Policies and Rules
Code of Ethics
Reward System
Selection and Training
External StakeholdersOrganizational Systems
Personal Ethics Organizational Culture

Example of HDFC BANK
• ETHICAL PARCTICE :: every corporation shall make available
facilities at each of its branches and offices for the customers to submit
their grievance if Any the corporation will ensure that its grievances
procedure is made available on its website. This ethical practice
followed by HDFC BANK
 SO Only one Indian HDFC BANK has made a place in the 110
World most ethical companies.
 HDFC bank provide an
EmaiIDGrievance.Redressal@HDFCBANK.Com to national
consumer helpline for any complaints pertaining to HDFC BANK.

UNETHICAL BUSINESS PRACTICES
Child labour, bad working condition, bribge
Refusing to give an employee a final paycheck for hours worked after the
employee leaves the company.
Refusing to honor a warranty claim on a defective product
Using bait and switch or false advertising tactics to lure customers
Not paying an employee for all of the hours worked.
Abusive Behavior and
Incomplete Disclose information

Example of Unethical parctice
• It includes advertisements of “energy drinks” which tells
us about the number of vitamins and how they help
children to grow strong and tall.
• There is no way of verifying these false claims.
• For example:-Horlicks Complan, Tiger biscuits.

Unethical practice from
government Employee
Ration Card: The Indian ration card is mainly
used for drawing subsided food and fuel. This
card important document for poor people
We can obtain Ration card free of cost but
government employee the will not sign on any
document without taking bribe and if we do not
give bribe our work will put off.

CODES OF ETHICS FOR ORGANISATION
Code of ethics is generally a more blanket
statement
Of values and belief that defines the organization.
So What is it for
 Company Asset, proper records
 Management and employee practices
 Conflict of interest

Example of Coca Cola company
Code of ethics of Coca cola company
 Act with integrity
 Follow the law
 Comply with code
 Be accountable
 Be honest

Values
Rights
MANEGEMENT
SUPPORT
Duties

 HONESTY
 INTEGRITY
 KEEPING YOUR PROMISE
 LOYALITY
 FAIR
 CARING

 RESPECT
 OBTAINING THE LAW
 EXELLENCE
 BEING A LEADER
 MORALE
 ACCOUNTABLE

Step 1 - Stop and Think
Step 2 - Review Long-Term Goals
Step 3 - Determine the Facts
Step 4 - Consider the Options
Step 5 - Consider the Consequences
Step 6 - Choose
Step 7 - Monitor Results

Compliances
& government
issues
Harassment in
workplace
Decision making
issues
Diversity
issues
Fundamental
issues

•Satyam was founded in 1987 by Mr. B Ramalinga Raju.
•The company offers consulting and information technology services
spanning various sectors, including engineering and product
development, supply chain management, client relationship management,
business process management and business intelligence.
•The company was listed with New York stock exchange, National stock
exchange, and the Mumbai stock exchange. In June 2009, the company
unveiled its new brand identity “Mahindra Satyam”

• Raju and his brother, B Rama Raju, were arrested by the Andhra
Pradesh police on charges of breach of trust, conspiracy, cheating,
falsification of records.
• Raju has mislead various investors.
• Raju had also used dummy accounts to trade in Satyam's shares.
• He has violated the insider trading norm.
• Funds from Satyam were diverted to Maytas