Typical problems in

business ethics

Presented By:
N. Rakesh (07BS2382)
Shraddha Thakker (07BS4614)
Urmi Shukla (07BS4643)
 NEW ECONOMY, NEW ETHICS
“ The future is not known, it is not what older
people think about…. But what younger people
do.”

Today, 4 POWERFUL FORCES are driving change:

vTechnology
vGlobalization
vIntangible Assets
vThe War for Talent
 NEW ETHICAL DIMENSION

“Avoiding these conflicts is a Greater

Management Challenge.”
Typical problems in business
ethics
Problems relating to:

 The Environment
 Human Resource Practices

 Marketing and Consumer Protection

 Finance

 Strategic Business Management

 Competition and Business Alliances

Typical problems related
to the Environment
 ETHICS AND ENVIRONMENT

“Environmental
responsibilities
have to be weighed
against the
responsibilities to
stakeholders and
societal benefits, as
any damage caused
to environment has
an impact on
society as well as
on stakeholders”
ENVIRONMENTAL ISSUES
 Air Pollution
 Water Pollution

 Noise Pollution

 Energy Consumption and Carbon Emission

 Toxic Waste

 Contamination of Ground Water

 Oil Spills

 Soil Erosion

 Depletion of Ozone Layer

DISASTERS we cannot forget

Bhopal Gas Disaster

Shell Oil Spill

GREENING

When a company adopts an Anti-Pollution

environment policy, it is said to be ‘Going Green.’

Reasons for adoption of Green Initiatives:

vEconomic benefits from increased efficiency

vCompetitive advantage through innovation
vPublic Image
INDIA’S GREENEST COMPANY - ABB
 ABB’s Vadodra Plant ranked as the Greenest
co. in India
 Planted 2500 trees in its 100 acre premise

 To dispose of dry leaves and wooden waste –

Vermiculture ( Breeding Earthworms)
 Production of manure because of the same

 Implementation of ISO14001 to gauge

‘Corporate Sustainability’ – i.e. Economic,
Social and Environmental Performance
 Aimed at reducing waste, identifying
environmental hazards and maximizing
resources
Typical problems related
to Human Resource
Management
NATURE OF EMPLOYMENT CONTRACT

 Employment Contract: It is a Legal document

that governs the relationship between a
business and an employee. It spells out the
tasks and responsibilities of an employee,
hours of work, remuneration, location, travel
requirements, etc.
Issues related to HRM

 HIRING
Discrimination
Ageism
Credentials
Testing
 EQUALITY OF OPPORTUNITY
 REMUNERATION
Need v/s Effort and Ability v/s Contribution
Seniority v/s Loyalty
 RETRENCHMENT
‘at will’ v/s ‘for a cause’
Retrenchment at Jet Airways
Typical problems related
to Marketing Management
ETHICAL ISSUES IN MARKETING
MANAGEMENT
 Ferrell and Gresham have identified 3 factors
that determine the code of ethics framed by a
marketer :

Individual Factors
Significant Factors
Opportunity Factors (Organizational Climate)

A common ethical standard is

important for these shared values. –
Donaldson & Davis
ETHICAL ISSUES IN MARKETING
STRATEGY
 A marketing strategy should be :
Customer Oriented
Approach towards rivals
ETHICAL ISSUES IN MARKETING
MIX
Issues and rights involved in ethical
research
Typical problems related
to Finance
Importance of financial statements

 Finance underpins what a business does

 Misinterpreting financial information has a
negative impact on long term owner value
 Ethical audit

 Concealed liabilities and expenses

 Fraudulent asset valuations

 Fictitious revenues

 Improper or fraudulent disclosures or

omissions
 Ethical issues in Mergers &
Acquisitions
 Breach of trust
 Resource Misallocation

 Hostile Takeovers
Protecting their own interest
Disagreement over price

 Management Buyouts
 Insider Trading

 Money Laundering
Typical problems related
to Strategic Management
Ethical Issues In Strategic
Management
Strategic management – An Overview
Ethical issues in strategic management
Developing the vision statement
Developing the vision statement
Leadership and Senior Manager's
Remuneration
Leadership and Senior Manager's
Remuneration
 According to Cannon there are three types of
contracts:
Leadership and Senior Manager's
Remuneration
Leadership and Senior Manager's
Remuneration
Implementing Strategic Changes
Implementing Strategic Changes
Implementing Strategic Changes
Changes in Organization Ownership
Changes in Organization Ownership
 Changes in strategy bring changes in ownership.
 Change in ownership results in activities such as:-
Changes in Organization Ownership
Global Strategic Operations
Global Strategic Operations
Ethical Decision Making Model
Principles Underlying An Ethical Approach
To Management
THANK YOU