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Shikha Sota
Are we Ethical?
Have you ever cheated in exams/
tests?
Have you ever copied assignments
from you classmates/ colleagues?
Have you ever borrowed something
and then forgot to return?
Have you ever talked during class
while teacher is delivering lecture?
Have you ever accessed ideas from
the internet and told that it was
yours?
Have you ever reached late to
college and lied that your car
broke down?
Have you ever lied to your parents
that you were doing combined
studies, but actually you were busy
partying?
Have you ever lied to your girlfriend/
boyfriend that you are going away
while you busy dating another
girl/boy?
Have you ever bribed traffic
policeman to avoid challan?
Have you ever bribed the watchman
to enter your girlfriend’s hostel?
Have you ever crossed red
signal at the traffic lights?
Ethics in business
An employee surfs the Internet
shopping for personal items on
company time.
A plant manager decides to ship
product to a customer even though
he knows the parts have a quality
problem because the problem
doesn't affect part function and
the customer probably won't
notice.
An employee spends several hours a
week on company’s phone talking
with her children, family and friends.
A manager shares important
company information with a
competitor for her potential gain.
An employee takes office supplies
home to stock his home office.
An accountant tells a supplier that
their "check is in the mail" when he
knows he hasn't written the check.
Ethics
Hard to pin down one universal
definition

"Ethics consists
"Ethics has to do with
of the standards
"Ethics feelingsdo
has to tell
what my
of behavior our
withrightreligious
me is my or wrong."
society accepts."
beliefs."
Business Ethics? What are they?
Being honest and responsible
Business Ethics? What are they?
Being unprejudiced
Business Ethics? What are they?
Doing what is fair to all concerned

•

Being fair & objective
Business Ethics? What are they?
Its important…
Defining a specific
guide to behavior

Enhancing employee
morale
Its important…
Its important…
Reducing employee turnover

Inculcating loyalty in employees
Code of Ethics
Aspirations of business
Responsibility towards employees,
community, shareholder & nation
Employee conduct & their rights
Transparency within & outside
the organization
Creating code of ethics
Purpose of code
Goals & objectives of organization
Universally acceptable
Presentation
Clear, non ambiguous
Written in language, understood by
all
Contact information for
clarifications
Must describe procedure in
case of non compliance
Communication
Training material
Website
Company newsletter
Business presentations
Cost of not being ethical
Loss of customers—especially those
who value ethics
Loss of employees
Loss of reputation
Why companies are not fair?
Competition
Organizational Goals
Government policies
Pressure from above
Why companies are not fair?
Ambiguous situations
Comparative conceptual disparity
Personal benefits
To reduce expenses
Why companies are not fair?
Legislation
Employee concern
Public perception
Media and NGO interest
S o c ia l
r e s p o n s ib il i
ty

Non
d is c r im in a ti o
n

ri
g

t

e
nt y
I

Objec
ty

e
Fairn
s

s

tivi

Respe
ct
Honest
y
Factors driving India’s unique business
practices
Governance rules & Regulations
Business Culture
Management Style
Rapid growth of private sector
Implications for business ethics in
a global world
Fusion of Business Ethics
Borderless Flow Of Professionals
Rise of Glocal Governance
Emergence of Compassionate
Capitalism
Obstacles in business conduct
Lack of management support
Company politics
Insufficient resources
Obstacles in business conduct
Personal financial worries
Little or no recognition of
achievements
Need to meet sales, budget or
profit goals
Satyam Scam
Prevention
Tighter rules for accounting and
corporate governance
Appointment of independent
directors by selection committees
Perfecting the corporate law
Prevention
Greater oversight from regulatory
and government authorities
Fasten court procedures
Giving SEBI more rights
It always pays to be ethical..

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Business ethics

  • 3. Have you ever cheated in exams/ tests? Have you ever copied assignments from you classmates/ colleagues? Have you ever borrowed something and then forgot to return?
  • 4. Have you ever talked during class while teacher is delivering lecture? Have you ever accessed ideas from the internet and told that it was yours? Have you ever reached late to college and lied that your car broke down?
  • 5. Have you ever lied to your parents that you were doing combined studies, but actually you were busy partying? Have you ever lied to your girlfriend/ boyfriend that you are going away while you busy dating another girl/boy?
  • 6. Have you ever bribed traffic policeman to avoid challan? Have you ever bribed the watchman to enter your girlfriend’s hostel? Have you ever crossed red signal at the traffic lights?
  • 8. An employee surfs the Internet shopping for personal items on company time. A plant manager decides to ship product to a customer even though he knows the parts have a quality problem because the problem doesn't affect part function and the customer probably won't notice.
  • 9. An employee spends several hours a week on company’s phone talking with her children, family and friends. A manager shares important company information with a competitor for her potential gain.
  • 10. An employee takes office supplies home to stock his home office. An accountant tells a supplier that their "check is in the mail" when he knows he hasn't written the check.
  • 11. Ethics Hard to pin down one universal definition "Ethics consists "Ethics has to do with of the standards "Ethics feelingsdo has to tell what my of behavior our withrightreligious me is my or wrong." society accepts." beliefs."
  • 12. Business Ethics? What are they? Being honest and responsible
  • 13. Business Ethics? What are they? Being unprejudiced
  • 14. Business Ethics? What are they? Doing what is fair to all concerned • Being fair & objective
  • 16. Its important… Defining a specific guide to behavior Enhancing employee morale
  • 18. Its important… Reducing employee turnover Inculcating loyalty in employees
  • 19. Code of Ethics Aspirations of business Responsibility towards employees, community, shareholder & nation Employee conduct & their rights Transparency within & outside the organization
  • 20. Creating code of ethics Purpose of code Goals & objectives of organization Universally acceptable
  • 21. Presentation Clear, non ambiguous Written in language, understood by all Contact information for clarifications Must describe procedure in case of non compliance
  • 23. Cost of not being ethical Loss of customers—especially those who value ethics Loss of employees Loss of reputation
  • 24. Why companies are not fair? Competition Organizational Goals Government policies Pressure from above
  • 25. Why companies are not fair? Ambiguous situations Comparative conceptual disparity Personal benefits To reduce expenses
  • 26. Why companies are not fair? Legislation Employee concern Public perception Media and NGO interest
  • 27. S o c ia l r e s p o n s ib il i ty Non d is c r im in a ti o n ri g t e nt y I Objec ty e Fairn s s tivi Respe ct Honest y
  • 28. Factors driving India’s unique business practices Governance rules & Regulations Business Culture Management Style Rapid growth of private sector
  • 29. Implications for business ethics in a global world Fusion of Business Ethics Borderless Flow Of Professionals Rise of Glocal Governance Emergence of Compassionate Capitalism
  • 30. Obstacles in business conduct Lack of management support Company politics Insufficient resources
  • 31. Obstacles in business conduct Personal financial worries Little or no recognition of achievements Need to meet sales, budget or profit goals
  • 33. Prevention Tighter rules for accounting and corporate governance Appointment of independent directors by selection committees Perfecting the corporate law
  • 34. Prevention Greater oversight from regulatory and government authorities Fasten court procedures Giving SEBI more rights
  • 35. It always pays to be ethical..