Ethics in operation

8/13/2019 Ethics in operation

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BUSINESS ETHICS INPRODUCTION


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INTRODUCTION

Ethics-is the branch of philosophy concerned with the rules of humbehaviour.It considers what is right and wrong and examines how moral

and values are created and evolve.

Business ethics-The study and establishment of moral and socialresponsibility in relation to business practices and decision making in

Setting ethical objectives is therefore a process by which organizationethical values to their targets and establish basic principles about theibehaviour in achieving these targets.


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Ethics in production and operation

Itis a subset of business ethic that is meant to ensure that the productionactivities are not damaging to the consumer or the society.

Like other ethics there is a certain code of conduct or standards to be fol

In order to survive in the competitive sphere organizations try to reduce thinvolved in production processes.

This cost efficiency is sometimes achieved at the cost of quality, Poor pro

technology is used to keep the cost down This is especially true for small players who cannot afford economies of s

Industry giants that compromised on certain production processes, cola coup for a good example.


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Factors Affecting Ethics In Operatio

Major factors which have to be considered in production and operatioare

Technology used or process involved

Products manufactured or service offered testing or experimentation

environment that lead to pollution, global warming, increase in waterand diminishing natural resources.


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Ethical practices in procurement

How to establish ethical procurement practices? Purchasing code of conduct

Integrate ethical purchasing to the existing management

Rewards and reviews

Top management and support Business environment and culture

Training to employees and staff

Ethical audits-Surprise visits to factories,

warehouses


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PRODUCTION:-

The processes and methods employed totransform tangible inputs (raw materials, semifinished goods, or subassemblies) and intangible inp

(ideas, information, knowledge )into goods or servi


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Ethical Objectives

Ethical values cover all aspects of business

conduct. This includes:

corporate strategies.

treatment of employees.

treatment of suppliers.

sales and accounting practices

Most activities of business have some ethical

features.


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Strategic Questions & Ethical Issues

Is it ethical to reduce costs by exploiting cheaperresources in less economically developed countries?Eg: large Western MNCs have been accused of using

child labour in some of their overseas factories.

Is it ethical to sell products that are legal, but known tharm those who use them? Eg: tobacco.


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Strategic Questions & Ethical Issu

Is it ethical to target young children with advertisingmessages?

Is it ethical to manufacture products that are used to ki

The arms industry?

Is it ethical to look for loopholes in the law to avoid patax?


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Individual Behaviour and

Ethical QuestionsExamples of questions about individual

behaviour which contribute to the overall ethical

approach of an organization include:

How do I manage my team?

Should I massage the truth?

Can I ever justify being disrespectful when selling products or services to mcustomers?


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Ethical issues related to worker:-

Working environment

Odd jobs

Proper work study

Proper incentives

Safety issues

Training program


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Effects on Human Health

Respiratory DisordersIrritation to the lungs, causing coughing andshortness of breathing. Higher exposure caused build up of fluids (pedema). Caused Asthma.

Cancer HazardCaused mutation (genetic changes). It caused cance

Reproductive HazardAssociation between exposure to Methyl Isocand miscarriages. It may damage the growing fetus.May also affect fermen and women.

Traces of many toxins were found in the Brest Milk of mothers and intern transmitted to the recipient babies.


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Ethical Issues related to packaging:

a) Label information

b) Packaging graphics

c) Packaging safetyd) Environmental issues

e) Amount of packaging material used

f) Disposal


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Y EMPLOYEES

ARE FIRED ???????

Being Dishonest Being Unreliable Abusing & Using Alcohol Bossing Others

Not taking the responsibility Not following the proper code of

conduct


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ADVANTAGES OF ETHICS

Attention to business ethics has substantially improved society

Ethics programs help maintain a moral course in turbulent times

Ethics programs cultivate strong teamwork and productivity

Ethics programs support employee growth and meaning


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CONTDDDD

Ethics programs are an insurance policythey help ensure that polegal

Ethics programs help avoid criminal acts of omission and can low

Ethics programs help manage values associated with quality managestrategic planning and diversity management

Ethics programs promote a strong public image


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REASONS BEHIND MAINTAINING HIGH ESTANDARDS

Improved employee and organizational morale

Increased ability to attract new customers

Improved customer loyalty

Reduced risk of negative exposure and public backlash caused by poor eth

Attraction of new stakeholders

Making a positive impact on the community

Business ethics offer companies a competitive advantage


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DISADVANTAGES OF ETHICS

Business ethics reduce a company's freedom to maximize its profit.

For example, a multinational company may move its manufacturing fa developing country to reduce costs. Practices acceptable in that cousuch as child labor, poor health and safety, poverty-level wages and c

employment, will not be tolerated by an ethical company.

Less Revenue


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CONTDDDD.

Personal Gain: Some employees may use the conducts as a way to usesuite against the company for any minor misbehavior.

Expanding the problem: If for instance the ethical problem is not woa verbal warning or suspension would do. The code of ethics within a

may be used to expand the problem further than it should be which is of time, money and sometimes employees may leave.

H l h d S f f E l


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Health and Safety of EmployeesOccupational Safety and Health Administration (OSHA) responsibility

1. Researching, Identifying and determining workplace health hazards

2. Setting safety and health standards3. Enforcing the standards

According to OSHA safety standards, employers are obliged to provide informfollowing:

1. Risks and Health hazards related to work

2. Products and environment exposed to those risks

3. Health insurance program

4. Benefits to employees exposed to workplace hazards

Family and Medical Leave Act (FMLA)


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LABOUR LAWS


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Sections 11 to 20 of the Act deal with the provisions of health of workers in factory

Sec 11Cleanliness

Sec 12Disposal of wastes and effluents

Sec 13Ventilation and Temperature

Sec 14Dust and Fumes

Sec 18Drinking Water

Sec 19Latrines and urinals

Sec 20Spittoons

PROVISIONS OF HE LTH OF WORKER


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Sections 22 to 41

Sec 22Work on or near machinery in motion

Sec 29Lifting machines, chains, ropes and lifting tackles

Sec 32Floors, stairs and means of access

Sec 36Precautions against dangerous fumes, gases etc and use of porta

Sec 38Precautions in case of fire

Sec 40Safety of buildings and machinery/(A &B) SAFETY OFFICER

Sec 41Power to make rules to supplement the provisions.

PROVISIONS OF SAFETY TO THE WORK


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CORPORATE SOCIAL

RESPONSIBILITY (CSR)

CSR is an umbrella term under which the ethical rights and duties exbetween companies and society are examined.

There is a distinct crossover between ethics and CSR, since CSR is oabout doing ethical things.

In both cases the business attempts to maximize its positive impactsstakeholders and society and minimize its negative impacts


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What is the difference

between ethics and CSR?

Ethics are the concerns of individual managers and employees.

CSR is a concern of the entire organization.

Legal Issues and CSRAll organizations will need to comply with the legal requirements in day to doperations, but CSR means going beyond these legal duties and accepting thfunction of a business is not just making profit for its shareholders.


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Sweatshops: Are Companies Willing to Sol

Problem?

Employees are exploitedto the core by denying them their due human

Rampant in developing countries

Big brandsturn a blind eye to the problem

Notoriously famous in industries like footwear, apparel and electronics

Race to the Bottom Large no of contractors and sub contractors imanufacturing chainaim absolute lowest cost.


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Large retailers likeWal-Mart and TargetLow price strategy

Outsourcing is profitable not only because of cost factor but also becauscompliance to CSR and Local laws.

Acc to Investor Responsibility Research Centre, only 4% of S&P 500 comoverlook if their suppliers address issues like child labor, forced labor and

discrimination.


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Currently 3 Major groups oversee factory inspections to monitor sweatsho

SAI(Social Accountability International)

FLA(Fair Labor Association)

ETI(Ethical Trading Initiative)

But all of them follow different methodologies and measures to combat sw

Because of this Wal-Mart says it does self-monitoring


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30 month experiment called the Initiative on Corporate AccountabilityRights

To devise a single set of labor standardswith a common factory-inspesystem.

Only about 100 large, mostly Western companies actively involved in the amovement.

Unfair for those companies adopting anti-sweatshop initiatives to competenot adopting it.

Business Standard: An iPhone Tester Caught in Apple's Supply Cha


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Thank You

Ethics in operation

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