Presentation on Business Ethics

2. Ethics = Ethos (moral character)
• Ethics (also known as moral philosophy) is a branch
of philosophy that addresses questions about
morality — that is, concepts such as good and evil,
right and wrong, justice, virtue.
• It is the study of universal values such as the
essential equality of all men and women, human or
natural rights, obedience to the law of land, concern
for health and safety and, increasingly, also for the
natural environment.
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3. Ethics & Ethical Principles
• These extend to all spheres of human activity.
• They apply to our dealings with each other and the
environment.
• They should govern our interactions not only in
conducting research but also in commerce,
employment and politics.
• Ethics server to identify – Good, Orderly, Desirable or
acceptable conduct and provide reasons for those
considerations.
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4. Ethics in Business
Businesses have a role to play in
improving the lives of all their
customers, employees, and
shareholders/stakeholders by
sharing with them the wealth they
have created. Suppliers and
competitors as well should expect
businesses to honour their
obligations in a spirit of honesty
and fairness. As responsible citizens
of the local, national, regional, and
global communities in which they
operate, businesses share a part in
shaping the future of those
communities. 4

5. Importance of Ethics in Business
• Ethics correspond to basic human dignity.
• It creates credibility in public.
• It gives the Management credibility with the employees.
• It helps in better decision making.
• Law cannot “spirit” society, but Ethics can.
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6. Corporate Ethics
Is based on Principles of Integrity and Fairness.
Focuses on :
• Customers / Market culture
• Shareholders / Stakeholders
• Employees
• Suppliers / Vendors
• Competitors
• Environment
• Communities
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7. Corporate Ethics are implemented to:
• Define the framework of acceptable behaviour.
• Follow high standards of practice.
• Create benchmarks for self evaluation.
• Enhance sense of community and fairplay.
• Create transparency in business activities.
• Comply with government laws and norms.
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8. Assembling ethical codes
• When a corporation assembles a code of ethics for business
practice, all these elements come into play.
• Codes of ethics are written by prominent figures within a given
industry .
• The assembled code of conduct should be suitable for profitability
and reputability since profit and reputation are often dependant
on one another.
• These rules of conduct are important for the success of the
business as a whole.
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10. Who is responsible for Ethics in a Company ?
“ EVERYONE”
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11. If a company paints the below picture,
there is a problem.
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12. Responsibilities of a Business towards Customers
• To provide our customers with the highest quality products and
services consistent with their requirements.
• To treat our customers fairly in all respects of our business
transactions, including a high level of service and remedies for
their dissatisfaction .
• Making every effort to ensure that the health and wealth of our
customers, as well as the quality of their environment, will be
sustained or enhanced by our products and services .
• Assuring respect for human dignity in products offered,
marketing, and advertising; and respect the integrity of the
culture of our customers.
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13. Responsibilities of a Business towards Market culture
• When considering the global market of today, if the rules of conduct conflict with
those of business in other countries and other markets, both reputation and
profit will be negatively affected.
• When considering the global market, one must address the "legal, ethical, and
moral issues relevant to business and the workplace“ When it comes to legalities,
the lines are much clearer as to what is right and wrong.
• When it comes to ethics and morality, there is such a diverse selection of what is
considered right and wrong in various cultures that the lines are not so clearly
drawn.
• The extended issues include "confidentiality, compliance with [foreign] laws,
financial integrity, and political activities" . All of these factors come into play
when doing business in a multicultural, global economy.
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14. Responsibilities of a Business towards
Stakeholders / Shareholders
• The value of a business to its Stakeholders and
Shareholders is the wealth creation .
• To create such value, a business must maintain its own
economic health and viability, but just survival is not a
sufficient goal.
• Dynamic sustainable progress is a key ingredient in
maintaining positive wealth creation.
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15. Responsibilities of a Business towards
Employees
• Work conditions that respect each employee's health and dignity.
• Honesty in communications with employees and open in sharing information,
limited only by legal and competitive restraint.
• Forum for employee suggestions, ideas, requests, and complaints.
• Avoiding discriminatory practices and guarantying equal treatment and
opportunity in areas such as gender, age, race, and religion.
• Negotiations in good faith ,and when conflict arises seek a resolution in a
consensus.
• Promote in the business itself the employment of differently abled people in
places of work where they can be genuinely useful. 15

16. Circle of Ethical Manageability
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17. Most employees reaction to Ethics!
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18. Responsibilities of an Employee towards a Business
• Employees must understand that ethical behaviour is
demonstrated not only in how they act toward others but
also in how they treat property that doesn't belong to
them.
• The key to success is understanding who owns what and
what boundaries exist for its use.
• An ethical person doesn't put a rupee amount on
respecting the property of others. He or she always makes
a moral connection between property, ownership, and
responsibility.
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19. Responsibilities of a Business towards Suppliers/
Vendors
• Seek fairness and truthfulness in all of our activities, including
pricing, licensing, and rights to sell.
• Ensure that business activities are free from coercion and
unnecessary litigation.
• Foster long-term stability in the supplier relationship in return for
value, quality, competitiveness, and liability .
• Pay suppliers on time and in accordance with agreed terms of
trade.
• Seek, encourage, and prefer suppliers and subcontractors whose
employment practices respect human dignity.
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20. Responsibilities of a Business towards Competitors
• Congratulate Their Success
Appreciate your competition to create a healthy
environment.
• Sales & Marketing Strategies
Never indulge in outright criticism of your competitor; be
tactful in mentioning both positives and negative aspects of
their service/product.
• Don’t Bite
Avoid getting involved in any tit-for-tat. This will help your
business to keep its reputation intact.
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21. Responsibilities of a Business / Employee towards the
Environment
• To contribute to sustainable development through the
establishment and implementation of environment standards
that are scientifically tested and meet the requirement of
relevant laws, regulations and codes of practice.
• To reduce waste, conserve energy, and promote recycling of
materials wherever possible.
• To ensure safe handling, storage, use and disposal of all
substances and materials that are classified as hazardous to
health and environment.
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22. Responsibilities of a Business towards the Community
• Respect human rights and democratic institutions, and promote them
wherever practicable.
• Recognize government's legitimate obligation to the society at large and
support public policies and practices that promote human development
through harmonious relations between business and other segments.
• Collaborate with those forces in the community dedicated to raising
standards of health, education, workplace safety, economic well being.
• Support peace, security, diversity, and social integration.
• Respect the integrity of local cultures.
• Be a good corporate citizen through charitable donations, vocational and
cultural contributions, and employee participation in community and civic
affairs.
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23. Thank You!
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