GROUP NO: 1 GROUP NO: 2Sarvanan.V.R Harpreet SinghNandita Sinha Roy Suchita KhannaNarendra Sharma Somyata KrishnaNischinth Bhardwaj Nitin MalikVipul Kotadia Rochak KhannaKapil Raina Saurav Rawat

INTRODUCTION & NATURE OF BUSINESS

ETHICS

Business Ethics: What Does It Really Mean?

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

BUSINESS ETHICS It is a form of applied ethics that

examines ethical principles and moral or ethical problems that arise in a business environment

Applied Ethics is field of ethics that deals with ethical questions in many fields such as Medical, Technical, Legal.

Importance of Ethics in Business Common good of Society

Ethical Motivation

Balance the need and wishes of Stake Holders

Setting the Example

Preventing Civil Lawsuits

Employee Retention

Ethical Companies around the Globe

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Business Ethics: What Does It Really Mean?

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”

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”

Importance of Ethics in business

Media keeps a close eye on businessPower and importance of business in

society is important then ever before.Business malpractice inflicts harm to the

individuals and environment.Complex demands by stakeholders.Ethical knowledge for manager is

important.Ethical knowledge for employees to

manage ethics in the organizationEthical behavior leads to satisfied and

loyal customers.

It’s one of the great untold stories in business - the success

of individuals and companies who know there’s more to good

business than next quarter’s bottom line.

3 P’s of Ethical and Sustainable Business

The Three P’s of Ethical and Sustainable Business

Purpose: Creating environmental, social and financial wealth

Principles: Honesty, Fairness, Caring, Courage

Practices

Issues in defining the nature ofbusiness ethics...• individual character – religion• personal moral development – philosophy• legal & regulatory concerns –Sarbanes-Oxley Act, etc.• ‘issue’ focused vs. ‘framework’

focused• integrated, managerial program tied

to organizational goals & objectives

Ethical Issues faced by BusinessSignificance of cultural, economic,

regulatory and ecological issues while establishing business in a foreign country – KFC in India(1995)

Consequences of a misleading advertising and false advertising

Issues involving affecting privacy of employee(workplace surveillance) and employer(whistle blowing)

Patent infringements – Nokia sues Apple

Ethical relations between the company and the environment

Ethical problems arising out of new technologies – GM brinjal (Bt Brinjal)

Product testing ethics – more than 65000 animals are used in US each year for testing in the fields of neurology, biomedics and genetics

Issues regarding workplace social behaviors Issues regarding bribery and facilitating

payments

Moral & Ethics Misconception : Morality and Ethics are

one and the same. But Morality is more concerned with what

we believe is good and bad or right or wrong, it is set of prepackaged answer

Morality gives us the values and principles for making our decisions.

It Defines how one should behave given this situation and they get formed and become a tradition in a certain society for a certain period of time

Moral rules may be different in different countries or even in the same country in different epochs

Morals are a subjective phenomenon, since most of their rules don’t follow from objective necessity and advisability.

Moral Rules are about How to dress?, Where and How Much One can bare the body?, What tones of Speech are Decent and what are not?

Religion and Ethics Central Aspect of Ethics is “ the good life” the

life worth living or life that is simply satisfying, which is held to be more important than moral conduct.

Most religions have an ethical component, often derived from purported supernatural revelation or guidance.

Example:Christian Ethics tend to stress the need for

grace, mercy & forgiveness because of Human Weakness

Hindu Ethics are related to reincarnation, Intention is seen as very important without being selfless - KARMA YOGA

Relation B/W Ethics and Business Management Relationship b/w business and ethics can

be compared to marriage and morality.

Commitment to Loyalty

Absence of Unethical Extraneous Relationships

Healthy Concern for Employee Welfare

 Ethics Behind Profits

Social Responsibility

Business Ethics Case Studies:The Polluter's Dilemma

Jonica Gunson is the environmental compliance manager for a small plastics manufacturing company. She is currently faced with the decision whether or not to spend money on new technology that will reduce the level of a particular toxin in the wastewater that flows out the back of the factory and into a lake. 

The factory's emission levels are already within legal limits. However, Jonica knows that environmental regulations for this particular toxin are lagging behind scientific evidence. In fact, a scientist from the university had been quoted in the newspaper recently, saying that if emission levels stayed at this level, the fish in the lakes and rivers in the area might soon have to be declared unsafe for human consumption. 

Further, if companies in the region don't engage in some self-regulation on this issue, there is reason to fear that the government — backed by public opinion — may force companies to begin using the new technology, and may also begin requiring monthly emission level reports (which would be both expensive and time consuming). 

But the company's environmental compliance budget is tight. Asking for this new technology to be installed would put Jonica's department over-budget, and could jeopardize the company's ability to show a profit this year.  

Questions for Discussion:

What motives would the company have to install the new technology?

What motives would the company have to delay installing the new technology?

Why might the companies in this region prefer for the government to impose new regulations?

CASE II : Incredible Shrinking Potato Chip Package

Due to a 25 percent increase in raw potato prices Julie, a potato chip brand manager, would need to raise her potato chip prices about 15 percent in order to maintain margins of 5 percent. This would necessitate a price hike of $.24 on the most popular 7.5 oz. size.

Julie is evaluated solely on the basis of monthly profits.

Historical data shows that downsizing, i.e., holding price constant while decreasing net weight, is a popular strategy in Julie’s industry as well as in other packaged goods industries.

Julie fears that raising the price to cover the increased cost would incur the bad will of her loyal customers, who would view the price hike as unfair.

Julie is worried that competitors might maintain their prices and incur a short-run loss.

Past industry data indicates that buyers might not notice a package size reduction.

Julie believes that consumers don’t usually examine the net weight label on subsequent purchases.

Julie’s boss, Dave, the Marketing Director, indicated that downsizing is a very common practice in this and other packaged goods industries.

According to Dave, downsizing marketers are aboveboard in clearly labeling products regarding weight, serving size, price, and quantity.

CASE III: The Accidental Bank RobberyAs a relief branch manager, Chris works in

a variety of retail bank offices where he is unfamiliar with local bank customers, employees, and daily office routines.

Chris makes branch policy decisions concerning check cashing, loan approval, and employee supervision in the absence of the regular branch managers.

Chris often relies on the knowledge and experience of local branch personnel to gain information when making management decisions.

Carole, a new drive-in teller at a branch under Chris’s management, faces a $900 shortage in reconciling her teller window.

Chris is able to trace the source of Carole’s error to a $100 check cashed for $1000, but the recipient of the $1,000--a regular depositor at the branch-- reports receiving only $100 from Carole.

If Chris reports the loss on Carole's shortage report, she will be fired.

The bank’s branch operations policy requires Chris to report the loss on Carole's shortage report.