�

�

Report on Ethics and business Management

BY

Arvind kumar Lariya

Lecturer, Maharana Pratap Management Institute

Bhopal (M.P.)

Email-arvind_lariyabsd@yahoo.com

Abstract

This paper identifying the problem of ethics in business, what are challenges in this areas. Just like Tata and other world largest business ethics supported company. It is a big challenging task today. How to face and run the organization what is the key role it is the study about that . ISO 14000 is designed to provide customers with a reasonable assurance that the performance claims of a company are accurate. In fact, ISO 14000 will help integrate the environmental management systems of companies that trade with each other in all corners of the world. The institute recognizes companies that truly goes beyond making statements about doing business ‘ethically’ and translate those words into action. Of these companies, 26 are new to the list in 2010, while there are 24 companies which have been dropped off from the 2009 list due to ethical violations.

Here is a Bummer, not a Single India company features in this list of most Ethical companies in the world. Solae, LLC, a world leader in soy-based ingredients within the food and nutritional industry, has been recognized as one of the world’s most ethical companies for implementing upright business practices and initiatives in harmony with company and social objectives.

Key Words : Ethics , ISO 14000, Social objectives , Companies.

�

�

Report on Ethics and business Management

BY

Arvind kumar Lariya

Lecturer, Maharana Pratap Management Institute

Bhopal (M.P.)

Email-arvind_lariyabsd@yahoo.com

Ethics is a moral principles and values, which justify two things. First, ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Ethics, for example, refers to those standards that impose the reasonable obligations to refrain from rape, stealing, murder, assault, slander, and fraud. Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty. And, ethical standards include standards relating to rights, such as the right to life, the right to freedom.

Secondly, ethics refers to the study and development of one's ethical standards. As mentioned above, feelings, laws, and social norms can deviate from what is ethical. So it is necessary to constantly examine one's standards to ensure that they are reasonable and well-founded. Ethics also means, then, the continuous effort of studying our own moral beliefs and our moral conduct, and striving to ensure that we, and the institutions we help to shape, live up to standards that are reasonable and solidly-based.

WHAT IS BUSINESS ETHICS?

The concept has come to mean various things to various people, but generally it's coming to know what it right or wrong in the workplace and doing what's right -- this is in regard to effects of products/services and in relationships with stakeholders. Wallace and Pekel explain that attention to business ethics is critical during times of fundamental change -- times much like those faced now by businesses, both nonprofit or for-profit. In times of fundamental change, values that were previously taken for granted are now strongly questioned. Many of these values are no longer followed. Consequently, there is no clear moral compass to guide leaders through complex dilemmas about what is right or wrong. Attention to ethics in the workplace sensitizes leaders and staff to how they should act. Perhaps most important, attention to ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass. However, attention to business ethics provides numerous other benefits.

many people react that business ethics, with its continuing attention to "doing the right thing," only asserts the obvious ("be good," "don't lie," etc.), and so these people don't take business ethics seriously. For many of us, these principles of the obvious can go right out the door during times of stress. Consequently, business ethics can be strong preventative medicine. Anyway, there are many other benefits of managing ethics in the workplace.

�

�

12 Ethical Principles for Business Executives :-

Ethical principles are standards of conduct defining the kind of behavior an ethical person should and should not engage in. The following list of principles incorporate the characteristics and values that most people associate with good character and ethical behavior These principles not only provide a guide to making decisions they also establish the criteria by which your decisions will be judged by others.

1. HONESTY. Ethical executives are, above all, worthy of trust. They are honest in all their actions and communications. They are not only truthful they are candid and forthright. Ethical executives do not deliberately mislead or deceive others by misrepresentations, overstatements, partial truths, selective omissions, or any other means and when trust requires it they supply relevant information and correct misapprehensions of fact.

2. INTEGRITY. Ethical executives earn the trust of others through personal integrity. They demonstrate moral courage, doing what they think is right even when there is great pressure to do otherwise. Ethical executives are principled, honorable, upright and scrupulous. They fight for their beliefs and do not sacrifice principle for expediency.

3. PROMISE-KEEPING. Ethical executives can be trusted because they make every

reasonable effort to fulfill the letter and spirit of their promises and commitments. They do not interpret agreements in an unreasonably technical or legalistic manner in order to rationalize non-compliance or create justifications for escaping their commitments.

4. LOYALTY. Ethical executives justify trust by being loyal to their organization and the people they work with. They do not put their loyalty above other ethical principles but they place a high value on protecting and advancing the lawful and legitimate interests of their companies and their colleagues

5. FAIRNESS. Ethical executives strive to be fair and just in all dealings. They do not exercise power arbitrarily nor do they use overreaching or indecent means to gain or maintain any advantage nor take undue advantage of another’s mistakes or difficulties. Ethical executives manifest a commitment to justice, the equal treatment of individuals, tolerance for and acceptance of diversity. They are open-minded; willing to admit they are wrong and, where appropriate, change their positions and beliefs.

6. CARING – CONCERN FOR OTHERS. Ethical executives are caring, compassionate, benevolent and kind. They always consider the business, financial and emotional consequences of their actions on others and seek to accomplish their business objectives in a manner that causes the least harm and the greatest positive good.

7. RESPECT FOR OTHERS. Ethical executives demonstrate respect for the human dignity, autonomy, privacy, rights, and interests of all those who have a stake in their decisions; they are courteous and treat all people with equal respect and dignity regardless of sex, race or national origin. Ethical executives adhere to the Golden Rule, striving to treat others the way they would like to be treated.

�

�

8. LAW ABIDING. Ethical executives abide by laws, rules and regulations relating to their business activities.

9. COMMITMENT TO EXCELLENCE. Ethical executives pursue excellence in performing their duties, are well-informed and prepared, and constantly endeavor to increase their proficiency in all areas of responsibility.

10. LEADERSHIP. Ethical executives are conscious of the responsibilities and opportunities of their position of leadership and seek to be positive ethical role models by their own conduct and by helping to create an environment in which principled reasoning and ethical decision making are highly prized.

11. REPUTATION AND MORALE. Ethical executives seek to protect and build the company’s good reputation and the morale of it’s employees by engaging in no conduct that might undermine respect and by taking whatever actions are necessary to correct or prevent inappropriate conduct of others.

12. ACCOUNTABILITY. Ethical executives acknowledge and accept personal accountability for the ethical quality of their decisions and omissions to themselves, their colleagues, their companies, and their communities.

3 SOURCES OF MORAL OBLIGATION :-

�

1. Law-Based Moral Obligations. Good citizens have a moral as well as a legal obligation

to abide by laws; it is part of the assumed social contract of a civilized society. If a law is

unjust, however, (such as those that mandated ethnic and religious persecution during the

Nazi regime and those that discriminated against a person on the basis of race in South Africa

and elsewhere) there may be a moral obligation to disobey it under the specific and

demanding doctrine of civil disobedience. Many, but by no means all, of these moral

standards of conduct are so fundamental to healthy social relations that they have been

codified into laws. For example, most aspects of the moral duty to not endanger or harm

others are embraced in criminal and civil laws prohibiting homicide, assaults, drunk driving,

and other dangerous behavior. Similarly, the ethical duty to be honest is enforceable by laws

forbidding perjury, robbery, forgery, fraud, and defamation among others. Nevertheless, in

struggling to be an ethical person we need to remember that many forms of dishonesty

remain solely within the moral domain. If we fail to perform or live up to a legal duty, we can

be criminally prosecuted or sued. If we fail to live up to a moral duty, the external sanction is

�

�

blame and condemnation — and, if one has a well developed conscience, feelings of guilt and

shame leading to remorse.

2. Agreement-Based Moral Obligations. The second source of moral obligation is

agreement. Even if an agreement doesn’t reach the level of an enforceable contract, there is a

moral obligation to do the things we agree to do, especially if others are counting on us to do

so. When we borrow money promising to pay it back in a week, or tell a friend we will pick

her up at the airport, or take a job involving the supervision of other employees, we undertake

a moral duty to do what we say we will do and perform dutifully the responsibilities of the

positions we accept. This kind of duty is the product of the commitments we make to others

and is the basis of the ethical principle requiring us to keep our promises. The idea that we

have a moral obligation to keep our promises seems so basic as to be hardly worth

mentioning. But nothing can be taken for granted anymore. As a lawyer, I am troubled by the

popularity of a relatively new philosophy that analyzes contractual obligations and other

commitments purely in terms of economic impact. According to this line of reasoning, there

is an inherent right to breach a promise so long as one is willing to pay for any damages

caused. The moral obligation to keep one’s word is treated as an irrelevant sentimentality.

3. Moral Principle as the Basis of Moral Obligation. The third source of moral obligation

is moral principle, a standard of conduct that exists irrespective of laws or agreements. The

great German ethicist, expressed the power of moral principle when he said, “Two things fill

my mind with ever-increasing wonder and awe: The starry heavens above me and the moral

law within me.”Moral principles can be mandated by religious doctrine or derived through

rational philosophical reasoning. In other words, if abiding by a law or living up to a contract

requires dishonest or disrespectful conduct that violates my core moral principles, as an

ethical person I must honor the principles even if it means being prosecuted or sued. Such

decisions, however, must be made cautiously and with due recognition of the ethical

implications of breaking laws and breaching contracts. The moral principles of

trustworthiness and citizenship establish a very strong presumption that laws should be

obeyed and commitments should be kept.

�

�

GLOBAL GREEN STADARDS

This report is a heads-up analysis about ISO 14000 standards. A decade from now we may recognize these standards as one of the most significant international initiatives for sustainable development. ISO 14000 defines a voluntary environmental management system. Used in conjunction with appropriate goals, and with management commitment, the standards will help improve corporate performance. They will provide an objective basis for verifying a company's claims about its performance. This is particularly important in relation to international trade, where at present almost anyone can make assertions about environmental performance - and there are only limited means to address veracity.

Consumers, governments and companies up and down the supply chain are all seeking ways to reduce their environmental impact and increase their long-run sustainability. For companies, the key goals are to become more efficient - to get more output per unit of input - while earning profits and maintaining the trust of their stakeholder. The ISO 14000 voluntary standards will help. It is important to note that the ISO 14000 standards do not themselves specify environmental performance goals. These must be set by the company itself, taking into account the effects it has on the environment, and the views of its stakeholders. How then can ISO 14000 help meet the global need to move toward sustainable development? .Implementation of a management system based approach will help companies focus attention on environmental issues, and bring them into the main stream of corporate decision-making.

ISO 14000 is designed to provide customers with a reasonable assurance that the performance claims of a company are accurate. In fact, ISO 14000 will help integrate the environmental management systems of companies that trade with each other in all corners of the world.

�

� � �

���������������

���������������������������������������When any company take ISO 14000 than consumer have a trust on product . today consumer more aware about surrounding , so company also more alert and involved in this area. If you involved than trustiness will be increased.

�

�

Seminar on business ethics :-

The seminar is being organised by Gujarat Technological University (GTU) which has collaborated with the Shri Mahavira Jaina Vidyalaya's C K Shah Vijapurwala Institute of Management (CKSVIM) and the Federation of Gujarat Industries (FGI). tnn

GTU had organised the first national conference on business ethics for 'global success of Indian businesses' in September 2010 at Ahmedabad in collaboration with CKSVIM.

After the first national conference, GTU has in fact introduced a paper on business ethics and corporate governance as an elective subject for all MBA colleges of the state. This subject will be taught to budding managers at management institutes from fourth semester from this academic year,director of CKSVIM Dr Rajesh Khajuria said while addressing media persons here on Tuesday.

As India is emerging as preferred investment destination, it is important that upcoming entrepreneurs are given seeds of ethics and corporate governance,said FGI president Geeta Goradia, adding that with large multi nationals adopting ethical audit policy, Indian companies too will have to learn the nuances of ethical business if India is to become a big exporter to the world.

Except the inaugural session on Friday, all other sessions are panel discussions. A unique feature of this national conference is the second round table on ethics which will be also held during the programme. Our attempt is to prepare a framework on ethical practices that corporates can perform well.

Interpretation :-

Seminar is major concern for development of ethics. India and other country arranging such seminar for awairing about global warming. And it is a successful idea for give knowledge to the company.

�

�

The institute recognizes companies that truly goes beyond making statements about doing business ‘ethically’ and translate those words into action. Of these companies, 26 are new to the list in 2010, while there are 24 companies which have been dropped off from the 2009 list due to ethical violations.

Here is a Bummer, not a Single India company features in this list of most Ethical companies in the world. Solae, LLC, a world leader in soy-based ingredients within the food and nutritional industry, has been recognized as one of the world’s most ethical companies for implementing upright business practices and initiatives in harmony with company and social objectives.

Some of the other companies from the food industry which bagged this recognizable award are PepsiCo, Campbell Soup Company and General Mills. The Ethisphere Institute has reviewed nominations for companies ranging over 36 different industries from Apparel, Banking and Chemicals to Construction and Engineering, Consumer Products, Healthcare and Real Estate.

Here is the list of Most Ethical Companies in the world !

Aerospace

• Harris Corporation • Rockwell Collins Inc. • The Aerospace

Corporation

Apparel

• Comme Il Faut • Nike • Patagonia

Auctions

• Barrett Jackson Auction Company

Automotive

• Cummins • Ford Motor Company • Johnson Controls

�

�

Banking

• Rabobank • Standard Chartered Bank • Westpac Banking

Corporation

Business Services

• Accenture • Noblis • Pitney Bowes • Dun & Bradstreet • Paychex

Chemicals

• Ashland • Dow Corning

Corporation • Ecolab • Flint Hills Resources

Computer Hardware

• Hewlett-Packard Company

Computer Software

• Adobe Systems • Salesforce.com • Symantec • Teradata

Construction and Engineering

• CH2M Hill • CRH • Fluor • Granite Construction • Parsons

Consumer Electronics

• Ricoh • Xerox

Consumer Products

• Henkel • Kao • L’ORÉAL • Mattel

Diversified Industries

• General Electric Co.

Electronics and Semiconductors

• Freescale Semiconductor • Texas Instruments

Energy and Utilities

• Duke Energy • FPL Group • National Grid • Sempra Energy • Wisconsin Energy

Corporation

Environmental Services

• Waste Management

Financial Services

• American Express • The Hartford • The Principal Financial

Food and Beverage

• Campbell Soup Company • General Mills • PepsiCo

�

�

Group • Solae

Food Service

ARAMARK

Sodexo

Food Stores

Trader Joe’s

Wegmans

Whole Foods Market

Forestry, Paper and Packaging

• International Paper • Stora Enso Oyj • Svenska Cellulosa • Weyerhaeuser

Healthcare

• Cleveland Clinic • Hospital Corporation of America • J M Smith Corporation • Johns Hopkins • Premier

Hotels, Travel & Hospitality

• Rezidor Hotel Group • Wyndham Worldwide

Industrial Manufacturing

• Caterpillar • Deere & Company • Eaton • Milliken and Company • Rockwell Automation • Timken

Insurance

• Aflac • Swiss Re • Wisconsin Physicians

Service

Internet

• Google • Zappos

Pharmaceuticals

AstraZeneca

Novo Nordisk

Real Estate

Jones Lang LaSalle

Aha, nice to see “Do no Evil” Google in the list of most ethical companies !

�

�

TATA AND ETHICS

The Tata group comprises over 100 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries.

The total revenue of Tata companies, taken together, was $83.3 billion (around Rs3,796.75 billion) in 2010-11, with 58 per cent of this coming from business outside India. Tata companies employ over 425,000 people worldwide. The Tata name has been respected in India for more than 140 years for its adherence to strong values and business ethics. Every Tata company or enterprise operates independently. Each of these companies has its own board of directors and shareholders, to whom it is answerable. There are 31 publicly listed Tata enterprises and they have a combined market capitalisation of about $81.07 billion (as on August 16, 2012), and a shareholder base of 3.6 million. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

Tata Steel is among the top ten steelmakers, and Tata Motors is among the top five commercial vehicle manufacturers, in the world. TCS is a leading global software company, with delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Global Beverages is the second-largest player in tea in the world. Tata Chemicals is the world’s second-largest manufacturer of soda ash and Tata Communications is one of the world’s largest wholesale voice carriers. In tandem with the increasing international footprint of Tata companies, the Tata brand is also gaining international recognition.

Interpretation :-

In India tata is social company which largely involved in ethics, This figer is also justify 60% involvement.

�

�

Business Ethics in a Global World: India's Changing Ethics

Sheth offered his perspective on why China and India are poised to dominate the 21st century, how Indian business practices differ from Western ones and what the consequences are for business ethics on a global basis.

The collapse of Communism is one of four forces that are driving the shift from the 20th century global business model to the 21st, Sheth said. He argued that the best capitalistic countries are former Communist countries, such as China: Communism imposed discipline on citizens, created greater gender equality and invested heavily in technical education.

Another driving force is that affluent nations are aging, and their traditional industries will not generate as many jobs in the future. Even in the U.S., which is not aging as fast as other affluent countries, General Motors stands as an example of a company that is hiring only one new employee for every eight who retire.

In addition, economic pragmatism means those in power have discovered economics’ crucial role in elections. Sheth cited the fall of George Bush Sr., who went from being wildly popular to losing his re-election bid when the economy faltered.

Finally, Sheth cited the idea that “the world is flat”: the IT revolution has leveled the playing field between emerging and advanced economies.

References :-

Aguilar, F. J. (1994), Managing Corporate Ethics, Oxford University Press, New York. Berenbeim, R. E. (1987), Corporate Ethics, The Conference Board, New York. Blanchard, K. and Peale. N. V. (1988), The Power of Ethical Management, Fawcett Crest, New York. �

www.google.com �

http://iisd.com �

http://whatwillmatter.com �

www.tata.com