BUSINESS ETHICS:

Business ethics (also known as Corporate ethics) is a form of applied ethics or professional ethics that
examines ethical principles and moral or ethical problems that arise in a business environment. It
applies to all aspects of business conduct and is relevant to the conduct of individuals and business
organizations as a whole. Applied ethics is a field of ethics that deals with ethical questions in many
fields such as medical, technical, legal and business ethics.

Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a
career specialization, the field is primarily normative. In academia descriptive approaches are also taken.
The range and quantity of business ethical issues reflects the degree to which business is perceived to be
at odds with non-economic social values. Historically, interest in business ethics accelerated dramatically
during the 1980s and 1990s, both within major corporations and within academia

Good business ethics should be a part of every business. There are many factors to consider. When a
company does business with another that is considered unethical, does this make the first company
unethical by association? Some people would say yes, the first business has a responsibility and it is now
a link in the chain of unethical businesses.

Many global businesses, including most of the major brands that the public use, can be seen not to think
too highly of good business ethics. Many major brands have been fined millions for breaking ethical
business laws. Money is the major deciding factor.

If a company does not adhere to business ethics and breaks the laws, they usually end up being fined.
Many companies have broken anti-trust, ethical and environmental laws and received fines worth
millions. The problem is that the amount of money these companies are making outweighs the fines
applied. Billion dollar profits blind the companies to their lack of business ethics, and the dollar sign
wins.

A business may be a multi-million seller, but does it use good business ethics and do people care? There
are popular soft drinks and fast food restaurants that have been fined time and time again for unethical
behavior. Business ethics should eliminate exploitation, from the sweat shop children who are making
sneakers to the coffee serving staff who are being ripped off in wages. Business ethics can be applied to
everything from the trees cut down to make the paper that a business sells to the ramifications of
importing coffee from certain countries
ENVIRONMENTAL ETHICS:
Environmental ethics is the part of environmental philosophy which considers extending the traditional
boundaries of ethics from solely including humans to including the non-human world. It exerts influence
on a large range of disciplines including law, sociology, theology, economics, ecology and geography.

There are many ethical decisions that human beings make with respect to the environment. For
example:

 Should we continue to clear cut forests for the sake of human consumption?

 Should we continue to propagate?

 Should we continue to make gasoline powered vehicles?

 What environmental obligations do we need to keep for future generations? [1][2]

 Is it right for humans to knowingly cause the extinction of a species for the convenience of
humanity?

Environmental ethics believes in the ethical relationship between human beings and the natural
environment. Human beings are a part of the society and so are the other living beings. When we talk
about the philosophical principle that guides our life, we often ignore the fact that even plants and
animals are a part of our lives. They are an integral part of the environment and hence have a right to be
considered a part of the human life. On these lines, it is clear that they should also be associated with
our guiding principles as well as our moral and ethical values.

What is Environmental Ethics?

We are cutting down forests for making our homes. We are continuing with an excessive consumption
of natural resources. Their excessive use is resulting in their depletion, risking the life of our future
generations. Is this ethical? This is the issue that environmental ethics takes up. Scientists like Rachel
Carson and the environmentalists who led philosophers to consider the philosophical aspect of
environmental problems, pioneered in the development of environmental ethics as a branch of
environmental philosophy.

The Earth Day celebration of 1970 was also one of the factors, which led to the development of
environmental ethics as a separate field of study. This field received impetus when it was first discussed
in the academic journals in North America and Canada. Around the same time, this field also emerged in
Australia and Norway. Today, environmental ethics is one of the major concerns of mankind.

When industrial processes lead to destruction of resources, is it not the industry's responsibility to
restore the depleted resources? Moreover, can a restored environment make up for the originally
natural one? Mining processes hamper the ecology of certain areas; they may result in the disruption of
plant and animal life in those areas. Slash and burn techniques are used for clearing the land for
agriculture.

Most of the human activities lead to environmental pollution. The overly increasing human population is
increasing the human demand for resources like food and shelter. As the population is exceeding the
carrying capacity of our planet, natural environments are being used for human inhabitation.

Thus human beings are disturbing the balance in the nature. The harm we, as human beings, are causing
to the nature, is coming back to us by resulting in a polluted environment. The depletion of natural
resources is endangering our future generations. The imbalance in nature that we have caused is going
to disrupt our life as well. But environmental ethics brings about the fact that all the life forms on Earth
have a right to live. By destroying the nature, we are depriving these life forms of their right to live. We
are going against the true ethical and moral values by disturbing the balance in nature. We are being
unethical in treating the plant and animal life forms, which coexist in society.

Human beings have certain duties towards their fellow beings. On similar lines, we have a set of duties
towards our environment. Environmental ethics says that we should base our behavior on a set of
ethical values that guide our approach towards the other living beings in nature.

Environmental ethics is about including the rights of non-human animals in our ethical and moral values.
Even if the human race is considered the primary concern of society, animals and plants are in no way
less important. They have a right to get their fair share of existence.

We, the human beings, along with the other forms of life make up our society. We all are a part of the
food chain and thus closely associated with each other. We, together form our environment. The
conservation of natural resources is not only the need of the day but also our prime duty.
EXAGGRATED CLAIMS:
Tall claims

A recent television commercial for Complan has got consumer activists up in arms. Saheli Mitra on why
advertisements aimed at children need to be subjected to strict scrutiny

A mother is upset that her son is often teased about being short. She tries various methods to increase
his height, even going to the extent of keeping him hanging from a parallel bar. Nothing works. But
then the child begins to have the health drink, Complan, and hey presto! He starts to become taller.

The advertisement has infuriated consumer groups and the authorities alike. For it not only
discriminates against short children — the child is called a “half ticket” by his friends in the ad — it also
makes nutritional claims that may not hold up to scrutiny.

In fact, after receiving complaints from the Indian Academy of Paediatrics (IAP) and the Association for
Consumers’ Action on Safety & Health (Acash), the Maharashtra Food and Drug Administration
recently filed a chargesheet against food major Heinz India (the makers of Complan), terming the
offence as “an exaggerated advertisement on television channels”.

Of course, this is not the first time that companies have made “exaggerated” claims for their products.
There are television commercials of baby oils that show an infant growing faster and walking sooner
after being massaged regularly with the oil. Or those that claim that an iron-rich cereal or a calcium-
rich biscuit can work wonders for a child’s intelligence.

This despite the fact that in some cases the claims may be totally contrary to the facts. For example,
paediatrician Dr Santanu Ray speaks of instances where infants massaged with baby oils develop
rashes. “We advise mothers not to massage babies below six months of age with oil, as it might lead to
the clogging of sebacious pores and lead to rashes.”

Experts say that it is always easier for companies to woo parents by targeting children. “Parents have a
tendency to follow flashy ads that promise to make their children sharper, stronger and taller,” says
clinical psychologist Rajyasree Bandopadhyay.

But don’t all advertisements tend to pump up the products they are selling? Then how do you
distinguish between harmless exaggeration and harmful misinformation?

Heinz India defends itself by saying that its claims are based on a scientific study conducted by the
department of food science and nutrition of a well known Tamil Nadu university. In response to The
Telegraph’s queries, a company spokesperson, who did not wish to be named, replied in an email,
“The study, conducted on 900 children from different backgrounds in the age group of 7-12, proves
that children who drink Complan along with a regular diet grow faster compared to those who had
only a regular diet.”
But paediatrician Dr R.K. Anand, who in the late ’70s helped to formulate the Infant Milk Substitute Act
(that stopped using pictures of babies on baby food tins to lure mothers into buying these products),
says that there are loopholes in the Complan study. “There were three control groups — one put on
usual diet, another on usual diet plus Complan and the third group on usual diet plus Complan and
milk. The company claims that the third group grows the best. Interestingly, the study did not include a
group that was given the usual diet plus milk. The question is, do our children, especially those from
poor backgrounds, need the usual diet plus milk or the usual diet plus Complan?”

Besides, says Dr Anand, growth and how tall a child will be depend more on genetic factors, weight at
birth, lack of breastfeeding, and so on, rather than on the intake of health drinks.

Consumer activists also point out that the Complan study was a company-sponsored one and hence
cannot be completely relied upon. “How can we accept the data as independent and fair,” asks Bejon
Misra, an expert on consumer affairs. Besides, the maximum number of malnourished children in India
is found to be below the age of five years. Yet the study was conducted on children between seven and
12 years.

Moreover, there is a protocol for using clinical studies that are to be cited as evidence for a
promotional. “Such studies have to be registered with the Clinical Trial Registry of India, under the drug
controller of the Government of India. If not, the study cannot be quoted as evidence,” says Dr Arun
Bal of Acash.

Heinz India claims that its study was published in The Indian Journal of Nutrition and Dietetics, an
internationally indexed journal. “But that’s not the authorised body,” counters Dr Bal.

But does the advertising industry also not have a responsibility to filter out potentially contentious ads
of this nature? Says Alan Collaco, secretary general of the Advertisements Standard Council of India
(Asci), “We demand that ads should be honest. If based on any independent research study, the source
and date of the study has to be mentioned along with the ad. The advertisement agencies have to keep
a copy of the research data and in case of a complaint they too have to substantiate the claim in the
advertisement by producing the relevant papers.”

Asci also has a code of conduct and the guidelines that advertisements need to be follow. Anybody
who feels that a particular advertisement is in violation of these guidelines can lodge a complaint at
asci@vsnl.com.

The 63rd World Health Assembly in May this year passed a resolution on how to market food and non-
alcoholic beverages to children. It stressed that television advertising was influencing a child’s
preference, purchase and consumption of foods. The assembly suggested independent and
transparent monitoring of claims made in ads by the private sector at national and international levels.

Till such a practice is implemented, consumers need to keep their eyes and ears open and not trust
every fabulous claim made by advertisements.
Be cautious of exaggerated claims and over-promises
For advertisements of health supplements (particularly those promoting slimming effects) making claims
on data to show that the products are “clinicially tested” and “scientifically proven”, these data often do
not adequately support many of the claims made in the advertisements.

You should be especially cautious with health supplements that promise quick cures and easy solutions
to serious problems.  In addition, you are advised to spend more time and effort to check out products
and available alternatives.  Do not buy a health supplement impulsively.

HUMAN RIGHTS:
The situation of human rights in India is a complex one, as a result of the country's large size and
tremendous diversity, its status as a developing country and a sovereign, secular, democratic republic,
and its history as a former colonial territory. The Constitution of India provides for Fundamental rights,
which include freedom of religion. Clauses also provide for Freedom of Speech, as well as separation of
executive and judiciary and freedom of movement within the country and abroad.

It is often held, particularly by Indian human rights groups and activists, that members of the Dalit or
Untouchable caste have suffered and continue to suffer substantial discrimination. Although human
rights problems do exist in India, the country is generally not regarded as a human rights concern, unlike
other countries in South Asia[1]. Based on these considerations, the report Freedom in the World 2006 by
Freedom House gave India a political rights rating of 2, and a civil liberties rating of 3, earning it the
highest possible rating of free[2]

Top 10 Principles for Positive Business Ethics:

1. Business Ethics are built on Personal Ethics. There is no real separation between doing what is right in
business, and playing fair, telling the truth and being ethical in your personal life.

2. Business Ethics are based on Fairness. Would a dis-interested observer agree that both sides are being
treated fairly? Are both sides negotiating in good faith? Does each transaction take place on a "level
playing field"? If so, the basic principles of ethics are being met.

3. Business Ethics require Integrity. Integrity refers to whole-ness, reliability and consistency. Ethical
businesses treat people with respect, honesty and integrity. They back up their promises, and they keep
their commitments.

4. Business Ethics require Truth-telling. The days when a business could sell a defective product and hide
behind the "buyer beware" defense are long gone. You can sell products or services that have
limitations, defects or are out-dated, but not as first-class, new merchandise. Truth in advertising is not
only the law, business ethics require it.
5. Business Ethics require Dependability. If your company is new, unstable, about to be sold, or going
out of business, ethics requires that you let clients and customers know this. Ethical businesses can be
relied upon to be available to solve problems, answer questions and provide support.

6. Business Ethics require a Business Plan. A company's ethics are built on its image of itself and its vision
of the future and its role in the community. Business ethics do not happen in a vacuum. The clearer the
company's plan for growth, stability, profits and service, the stronger its commitment to ethical business
practices.

7. Business Ethics apply Internally and Externally. Ethical businesses treat both customers and
employees with respect and fairness. Ethics is about respect in the conference room, negotiating in
good faith, keeping promises and meeting obligations to staff, employers, vendors and customers. The
scope is universal.

8. Business Ethics require a Profit. Ethical businesses are well-run, well-managed, have effective internal
controls, and clear expectations of growth. Ethics is about how we live in the present to prepare for the
future, and a business without profits (or a plan to create them) is not meeting its ethical obligations to
prepare for the future well-being of the company, its employees and customers.

9. Business Ethics are values-based. The law, and professional organizations, must produce written
standards that are inflexible and universal. While they may talk about "ethics", these documents are
usually prescriptive and refer to minimal standards. Ethics are about values, ideals and aspirations.
Ethical businesses may not always live up to their ideals, but they are clear about their intent.

10. Business Ethics come from the Boss. Leadership sets the tone, in every area of a business. Ethics are
either central to the way a company functions, or they are not. The executives and managers either lead
the way, or they communicate that cutting corners, deception and dis-respect are acceptable. Line staff
will always rise, or sink, to the level of performance they see modeled above them. Business ethics starts
at the top.

Corporate philanthropy (doing social service).

Ethics is about the quality of our lives, the quality of our service, and ultimately, about the bottom line.
An unhappy customer complains to an average of 16 people. Treating employees, customers, vendors
and the public in an ethical, fair and open way is not only the right thing, in the long run, it's the only
way to stay in business.

At the heart of our organization, lies this realization of our responsibility towards the society that
has given us our identity. Arjun Rao, our invincible baton, having been associated with social
welfare initiatives from a very long time, is inspiration enough to the whole family. Under his  
aegis, we support causes like Poverty, Education for the underprivileged, Blood Donation and
many more.
We work closely with the Ramakrishna Math, part-financing the social schemes that they are
running in different parts of the country. We are participants in one of their schemes to provide
drinking water solutions in more than 100 villages. A case in point is the financial aid we provided
to Peddapuram, an important Municipal town in the East Godavari District of Andhra Pradesh.
 
The aid, which was used in digging a bore-well for the village, proved to be a blessing in disguise
to its people. It ensured safe drinking water for all the villagers. Besides the drinking water
initiative, we are also helping with free medical care at a hospital managed by the Math and food
for orphans, poor, aged and disabled people.

We have also been closely associated with Rural Development Foundation (RDF). Over the last 10
years, RDF has done some good work in the rural education space. Our CEO has been associated
with them personally since inception as a founding member. We regularly make contributions to
RDF. Moreover, people from ValueLabs actively volunteer in their fund-raising drives. Last year,
 
we participated with great success, at a fund-raiser to support RDF's flagship projects - the
Kalleda rural school in Warangal, Matendla rural school in Medak and their up-coming school in
Anantpur. It was a great evening with cultural activities and mind blowing performances by
students.

As our CEO says, ” When we go out of our way to help with causes that are beyond ourselves, I
believe that we will become that much better as individuals. The same thing holds true at the
company level too. As we continue to grow at the rapid rate of growth we have seen over the  
past few years, we will make increasing budgetary allocations towards Corporate Social
Responsibility initiatives.”

Regular donations to charitable organizations, blood-donations, association with numerous NGOs

that support different causes, and sponsorships of deserving students in colleges are some of the  
ways we give back to society.

On the cards is a plan to set up the ValueLabs Foundation that, as an independent function, will
 
soon:

Work closely with underprivileged children and help them gain independence through
education.

Provide free health care to the poor, especially senior citizens.

Support physically and mentally challenged persons in gaining independence of actions and
thought by collaborating with other charitable organizations and NGOs

Spreading social messages on different causes in person through street plays, close interactions,
seminars etc.
 Business Ethics

Paper Pattern

Case study------30 Marks.

3 out of 5-------*15= 45 Marks.

There are 2 sets of paper……. One will come.

SET 1

Section A : Case study-----Dabur Ltd.

Section B :

1. Pollution is major problem faced by the society. What is Environmental Ethics? Explain with an
example?

2. Truth in advertising is a complex issue and an emotional one. A totally untruth TVC or magazine
advt. with widely exaggerated would be illegal. Discuss with 3 examples of advt. which u feel are
making exaggerated claims of their product?

3. Define Business Ethics and its Importance? Principles of business ethics in Detail?

4. What is ur opinion of an Indian Manage, Business man, Political neta and govt.
servicemen…………..r they ethical?

5. Short Notes

 Exploitation of consumers.

 Human rights.

 Managers facing unethical management (Ex. SATYAM).

 Avoidance of political parties and company union activities.

 Ethics in financial disclosure.

SET 2

Section A : case study- Ethical problems are purely Managerial. In a survey conducted by INDIA TODAY. It
was observed that 90% of the staff resolve two tests

1. Taking home office supplies like pencil, Cd ’s, off. Magazines.

2. They were producing fake medical bills for REIMBURSEMENT.

Section B :

1. FMCG co. is gearing up counter field?

2. Short Notes

 Ethics in Advertising.

 Ethics in financial disclosure.

 Principles of business ethics.

 Corporate philanthropy (doing social service).

 Unethical business practices with example.

ALL THE BEST………….HAPPY READING.