Ethical Dilemma in Business

8/8/2019 Ethical Dilemma in Business

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Ethical dilemma is a complex situation that involves an

apparent mental conflict between

one¶s personal and professional values

two values/ethical principles

two possible actions each with reasons strongly favorable and unfavorable two unsatisfactory alternatives

one¶s values/principles and one¶s perceived role

the need to act and the need to reflect

Ethics involves learning what is right or wrong, and then

doing the right thing Business ethics set the standard for how your business is

conducted.

They define the value system of how you operate in the

marketplace and within the business

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Ethical Code A set of principles governing morality andacceptable behavior. It covers

Personal Behavior when dealing with customers & clients

Corporate behavior when negotiating deals

Behavior towards society when recruiting

Behavior towards environment when deciding on process of production

Ethical Audit It is a process which measures the internaland external consistency of an organizations values base. Itis done in order

To check that ethical principles are being pursued

To check the extent to which actions are consistent with theorganizations stated ethical intentions

To establish action plans if they are not. 3



It requires a trained sensitivity to ethical issues and a practicedmethod for exploring the ethical aspects of a decision and weighing

the considerations that should impact

It ensures that all companies not only meet but continue to performat the highest ethical level without leaving any room for laxity.

It ensures to promote an ethical conduct while penalizing thoseactions that are not in line with the rules.

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Utilitarianism: do what provides the most utility tothe group.

Duty Ethics: do your duty.

Rights Ethics: respect others moral rights.

Virtue Ethics: try to be a virtuous person.

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Building a new dam will cause dislocation of the localpopulation, but it will provide substantial benefits to society:

Drinking water

Water for crops

Flood control

Recreational boating

Variations of Utilitarianism

Act utilitarianism - Judge individual actions based on whether they

provide the most good in a given situation. Break rules if the actionsproduce the most good (A military officer may need to decide tosacrifice one life to save a thousand)

Rule utilitarianism - Moral rules are most important; e.g., do not

harm others, do not steal.

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Ethical actions are those actions that can bewritten as a list of duties; e.g.,

Be honest

Dont cause others to suffer

Treat others fairly

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People have fundamental rights, that others

have a duty to respect.

Example. There are 6 fundamental rightsthat are observed by the constitution of

India

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Virtue ethics addresses

determining what kind of people we should be.

Virtue is moral distinctionand goodness.

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Example 1. A chemical plant near a city

discharges a hazardous waste into theground water. The city takes its water fromnearby wells.

Rights Ethics: Pollution is unethical, since it

harms city residents.

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Example 1. A chemical plant near a city

discharges a hazardous waste into the

ground water. The city takes its water fromnearby wells.

Virtue Ethics: The plant manager is notdemonstrating loyalty to the community.

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Exampl . c ical la t ar a cityisc ar s a azar s ast i t t

r at r. T city tak s its at r frar y lls.

Utilitarianism. c ic fits f tla t ar t i y t ativ ff ctsf ll ti a saf ty vi lati s.

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Ethical consumerism is the intentional purchase of products andservices that the customer considers to be made ethically.

The rise in ethical consumerism and green brands that identifythemselves as ethical, has led to a rise in ethic-based decisions in

the mass market.

Alternative terms for the same are ethical consumption, ethical

purchasing, moral purchasing, ethical sourcing, ethicalshopping or green consumerism.

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An electric wire reel reusedlike a center table in a Riode Janeiro decoration fair.

When consumers chooseand reuse environmentallyfriendly material like this,

they are practicing ethicalconsumerism.

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Positive buying means favoring ethical products, be they fair trade, cruelty free,organic, recycled, re-used, or produced locally.

A number of standards and labels have been introduced to induce positive buyinglike equal exchange, product red.

The international symbol for recycling.

Along with disclosure of ingredients, some mandatory labeling of origins of clothingor food is required in all developed nations. This practice has been extended insome developing nations, e.g., where every item carries the name, phone numberand fax number of the factory where it was made so a buyer can inspect its conditions

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Conscious Consuming: is a social movement that based around increased

awareness of the impact of purchasing decisions on the environment and theconsumers health and life in general.

Alternative giving is a form of gift giving in which the giver makes

a donation to a charitable institution in the recipients name, rather than giving anitem.

Some charities promote alternative giving at weddings in place of weddingfavors normally providing several cards to be left on tables at the reception

letting guests know a donation has been made rather than individual cards foreach guest.

Pull apart is a curbside packaging recycling classification system used in

the UK which combines both environmental and consumer packaging surveys. It

encourages local people to buy products that are fully, and simple to curbsiderecyclable. 16



Green websites:

A lot of organics is a portal of sites "bringing you organic food, fairtrade, vegan, special diets, ethical, eco-friendly and other organic

products allthingsgreen.net specializes in promoting ethical companies

that produce ecologically sound products.

BuyOrganics say they are "passionate about organic shopping

and specialize in bringing you the purest, toxin-

free, genuineorganic products on the market.

Econatural "an on-line store offering a wide range of natural,organic, eco-friendly and Fair Trade products for you, your family,your home and your workplace."

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General Stores:

EcoHip has a simple philosophy to offer the best naturalproducts around, so you can maintain a chemical-free home,

body and spirit. Nigel's Eco Store "sells eco friendly stuff" including towels made

from bamboo fiber.

Spirit of Nature sell natural and environmentally-friendly products

including baby stuff, organic clothes and cosmetics andhousehold goods.

Guide me green was created to provide a platform for 'green'businesses and brands to reach consumers who are increasinglybecoming ethically and environmentally conscious

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The term 'employee poaching' can be defined as an act of enticing key employees to move from one firm to a competitorin return for an appreciable raise in salary and/or allowances.

It has emerged as the biggest HR challenge for enterprises, bothbig and small, across all industry verticals.

Losing employees to competitors is common; but now manyindustries are increasingly finding their employees poached bytheir own vendors and distributorse.g.. "Poaching by vendors and distributors has becomerampant in the past two years. Of the 20 people we lost, 10were certified mid-level sales and technical executives, whilethe rest were from our telemarketing team," says CEO SanjaySrivastava.

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The problem all industries face is the lack of enoughqualified and skilled people not just from within their ownranks but also from outside.

They have recognised that in reality they are all competingfor a small pool of people and will end up drawing peopleaway from other member organisations.

Why Poaching takes place?

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Getting currently employed

Well Trained & high caliber employees.

Cost Saving

Strategic move for competitive edge

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Transfer of Trade secrets.

Money & time are lost-e.g.. if a senior manager in charge of a

particular tender quits at a critical time, you lose that tender and thiscould cost a couple of crores in revenues. Getting another employee

and training him can easily take 5-6 months.

Trust-trust between the vendor and partner that's the biggest

casualty

Competitive Strength

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Contractual agreements, either with the employee or

vendors or competitors, serve little purpose- We are here

to do business. Who has the time and money to fight

protracted legal cases with employees, competitors andvendors? Besides, you don't want to make enemies of your

vendors. The problem can only be tackled by collective

action.

E.g.. APPLE ,GOOGLE,ADOBE had entered into a anti

poaching agreement. Likewise there are many other

companies which enter into such contracts

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Ask 3 questions:

Utility

Rights Justice

Then follow these steps:

Analyze the consequences Analyze the actions

Make a decision

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solution can not be predicted

No software, mathematical solution or magicwand to solve them.

Think deep, well and take responsibility for

your actions.

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Thank You!!!

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Ethical Dilemma in Business

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