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Ethics and Transparency of Ethics and Transparency of business business

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OutlineIntroduction.

Objectives.

Work ethics

Dimensions of work Ethics.

What Does Business Ethics Mean?

Ethics, Economics and Law: Venn Model

Do’s and don’ts.

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Introduction

Every individual of this world wants to live in an ideal world,where he seeks to determine the norms,ideals and standards of the particular society or organization.The ideals of good refer to the ethics.Ethics is the subject of philosophy.It refers to the standards on which the person decides what is right or wrong or good or bad.It prescribes what human beings ought to do,usually in terms of rights,obligations, benefits to society,fairness ,or specific virtues.Ethics can be defined as a ‘set of moral principles,which guides the code of conduct and behaviour of a human being in his life and society.’

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DefinitionsEthics involves a discipline that examines good or bad practices within the context of a moral dutyMoral conduct is behavior that is right or wrongBusiness ethics include practices and behaviors that are good or bad

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Two Key Branches of EthicsDescriptive ethics involves describing, characterizing and studying morality

“What is”

Normative ethics involves supplying and justifying moral systems

“What should be”

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Objectives

To develop the value system. To create strong work culture. To prevent social evils To define the working pattern of professional life. To improve the social life. To set the standards of personal life and norms of

behaviour. To set a standard for do’s and the dont’s. To set a mission to succeed in life.

To balance the need and wishes of human beings.

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Work ethics

Work ethics is a set of moral principles or accepted norms of

behaviors governing the conduct of a group of persons involved

in some work situation to achieve certain desired objectives.

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Most people want to live in a good society where justice and

charity prevails. If we consider ourselves good persons we must take the responsibility of helping the society.Every human being has got some negative characteristic but some are treated as very bad such as cheating, stealing and prevaricating is not exactly forgiven in the business world. In modern business environment where the globalization has spread all over the world the need for commonly accepted ethical standards is of great importance.

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Expe

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Ethical Problem

Ethical Problem

Society’s Expectations of Business Ethics

Actual Business Ethics

1950s Early 2000sTime

Business Ethics:Today vs. Earlier Period

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Rightfull expectations When an employer gives an oppurtunity,career and a status to an

employee,the employee should give out his or her best to the organization.This is ethical demand of duty.

On the other hand an employee also has rightful expectation from the employer that they should get career advancement,recognition and reward for their work.This is called ethical employee-employer relationship.

Sense of loyalty towards the organizations Loyalty means safeguarding and promoting the interest of the

organization.A loyal employee should not promote thoes personal interest of a competing organization at the cost of the organization.

Discipline Every organization has written or unwritten rules,norms and ways of

working which the employees have to follow.

Dimensions of business ethics.

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Sources of Ethical Norms

Fellow Workers

Family

Friends

The Law

Regions of Country

Profession

Employer

Society at Large

Fellow Workers

Religious Beliefs

The Individual

Conscience

Do’s and don’ts

DO’sPunctuality.CourtesyEfficiencyHard workSincerityDevotion to dutyDisciplinePromptnessRegularityInitiative

Don’ts InsubordinationLethargyCorruptionDishonesty

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Making Ethical Judgments

Behavior or act that has been committed

Prevailing norms of acceptability

Value judgments and perceptions of the observer

compared with

Transparency

Definition

Transparency ,as used in the humanities, implies openess,communication and accountability.

In business context, transparency means following certain rules and regulations and displaying relevant information to the investors for better understanding.

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Will your business be a window or a wall ?

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How to introduce transparency

Shoot videos that give an glimpse into the way your company operates.Allow your employees to blog, build public relationships, and share their ideas about your industry with the world.Provide a way for your customers (and everyone, really) to peek in and see how your product is performing.could encourage customers to share their ideas and write about their experience with your brand in a public forum( eg. Mouthshut.com).

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Corporate Social Responsibility

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Defintion

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CSR is a form of corporate self-regulation integrated into a business model.The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere.An obligation, beyond that required by the law and economics, for a firm to pursue long term goals that are good for society

Key Issues in CSRLabour rights:

child labour forced labour right to organise safety and health

Environmental conditionswater & air emissionsclimate change

Human rightscooperation with paramilitary forcescomplicity in extra-judicial killings

Poverty Alleviationjob creationpublic revenuesskills and technology

Reasons to undertake CSR

It aids the attraction and retention of staffIt attracts green and ethical investmentIt attracts ethically conscious customersIt can lead to a reduction in costs through re-cyclingIt differentiates the firm from its competitor and can be a source of competitive advantageIt can lead to increased profitability in the long run

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Spectrum of CSR

Good CSRPoor CSR

•No employment

•No concern for indirect effect (land, water, air)

•Destruction of agricultural land

•Not willing to listen to other stakeholders

•Appropriate of land not being compensated

•Non compliance of rule of land

•Taking care of workers

•Low dependence on non renewable resources

•High awareness about CSR initiatives

•Land compensation

•Increased monitoring system

•Environment responsibility

Responsibility towards employees

Living wage and social securityRespect for the maximum amount of working hour(especially in India)Occupational health and safetyNon-discriminationWell lit and ventilated working environment.

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Responsibility towards customers.

Fair prices.Unfair means like under weighing the product, adulteration, etc. must be avoided.Products and services must be qualitativeThere must be regularity in supply of goods and services

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Responsibility towards government.

Setting up units as per guidelines of governmentPayment of fees, duties and taxes regularly as well as honestly.Not to indulge in monopolistic and restrictive trade practices.Conforming to pollution control norms set up by government.Not to indulge in corruption through bribing and other unlawful activities.

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Responsibility towards society

to help the weaker and backward sections of the societyto preserve and promote social and cultural valuesto generate employmentto protect the environmentto conserve natural resources and wildlifeto promote sports and cultureto provide assistance in the field of developmental research on education, medical science, technology etc.

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Responsibilty towards investors.

Ensuring safety of their investment,Regular payment of interest,Timely repayment of principal amountRun the business efficientlyProper utilisation of capital and other resources.Growth and appreciation of capital.Regular and fair return on capital invested

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THANK YOU

By- Avneesh Bansal, Vinay Jain, Akshay Gupta Nishita Kanodia

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