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

Breach of trust  Resource Misallocation  Hostile Takeovers

Ethical issues in Mergers & Acquisitions

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

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