Professional Documents
Culture Documents
Business Ethics: by Prof. Reena Mehta
Business Ethics: by Prof. Reena Mehta
MTBE
Chevron, BP and 10 other oil companies paid $423 million to water supplies of US for contaminating ground water with chemical MTBE.
Saraswati
Shri Parvati
Naked Draupadi
Hussein's Daughter
Everybody doing it
Your refraining from this behavior will not unavoidably lead others to engage in it in ways that are substantially more harmful than would have been the case had you chosen to engage in it yourself and this would be true if your refraining from this behavior were to become public knowledge.
Everybody doing it
Will refraining from bribery cause you (or those you care for or for whom you are responsible) serious and unavoidable harm or loss? Will your engaging in bribery also cause significantly more harm or loss to others? Will your engaging in bribery lead others to engage in it in ways that are equally or more harmful, and would this still be true if your engaging in bribery were to become public
Everybody doing it
Will your refraining from bribery lead others to refrain from it, and would this still be true if your refraining from bribery were to become a public knowledge. Will your refraining from bribery unavoidably lead others to engage in if in ways that are substantially more harmful than would have been the case had you chosen to engage in it.
DEFINITION
Ethics : Ethos means character It is science of morals It is recognised rule of conduct It is science pf character of a person expressed as right or wrong conduct or action.
Nature of Ethics
Ethics deals with human beings only Ethics is a field of social science It is a normative science :
Normative science judge the value of the facts in terms of an ideal. What ought to be?
It deals with human conduct which is voluntary and not forced or coerced by persons and circumstances
Trusteeship
Capitalism Socialism Egalitarian
(The principle of equal rights for all persons) Non-Violence,Ahimsa,Stealing,Non-possession
Swaraj- self rule and self discipline Ahimsa - Non violence, non exploitation, equality and freedom Economic Equality Equal Distribution Concept of theft
Trusteeship
Raw material should be purchased to ensure a living wage to producers Natural resources not digging cost, replacement cost. Reduce disparity the ratio between lowest and highest 1:7 in the initial stages
Expansionism and centralization shall be resisted , decentralization should be encouraged Enterprise is ultimately responsible to the world at large Consumer should be on the board Capital for such enterprises should be interest free
Ethics in Marketing
Product Pricing Physical distribution Product promotion
Product
No safety Hazardous products Duplication
Product Pricing
Dumping Deceptive pricing Predatory pricing Price fixation Insider trading
Product Promotion
Making false claims and misleading advertisement Ethics in advertisement Lower the dignity of women False promise
Physical distribution
Territorial restrictions Full line forcing Exclusive dealing arrangement Artificial scarcity of the product
DIFFERENCE
GOOD COMPANY Excellent Products & Services GREAT COMPANY Excellent Products/services & Makes the world a better place
a) 50% of children under 4 malnourished b) 33% of children below 14 out of school c) 60% women anemic d) 5 Mln.++ are HIV positive growing at a compounded rate of 10% each year e) f) 500,000 child deaths/year due to respiratory disease 1 Mln. preventable infant deaths (63/1000 for India, 13/1000 in Kerala)
g) 130 Mln. without basic health h) 226 Mln. without safe drinking water
NO
ITC notebook contributes Re. 1 from the purchase of each notebook for the education of the under privileged children Indian Oil Corporation contributes a fixed percentage of its profits for the development of SC and ST community Lifebuoy contributes Re.1 from the purchase of each soap for NGO Motorola Mobile phone - Motoslvr and Motorazer V3i (every purchase of the same contribute $8.50 to the global fund that fights AIDS in Africa Surf Excel saves two buckets of water on every wash and preserves the water Hall Mark cards - 8% of the net wholesale sales goes to the global fund that fights AIDS in Africa
Stage
Manager Mindset
Resource Commitment
Minimal resource commitment Budgets for problems as they occur Consistent yet minimal budget
1. Beginner
Environmental management unnecessary Environmental issues addressed when necessary Environmental management is a worthwhile function
2. Firefighter
3. Concerned citizen
4. Pragmatist
5. Proactivist
Open-ended funding
Actively involved
Whistle blowing
The disclosure by organisation members (former or current) of illegal, immoral or illegitimate practices under the control of their employers to persons that may be able to effect action.
Whistle blowing
Cynthia Cooper of World com, Sherron Watkins of Enron Coleen Rowley of FBI Satyendra Dubey
Whistle blowing
There is a misdeed or illegal activity in the organization A perception that either the management can prevent it or that it has been initiated by management or certain employees. Important factor is the presence of an individual or group of people who view that some action should be taken against the illegal activity. There is a process by which the individuals or group try to expose the problem to the authorities who can take action.
2. Issues analysis
ORIENTATIONS
Stockholder
Model
Stakeholder
Model
MOTIVES
Self-Interest
1 Productivism 3 Philanthropy
Moral Duty
11
12
Alabama
Tennessee
28.7
26.7
STAKEHOLDER ANALYSIS
2. Political Awareness Netscape Navigator is introduced; 1. Social Microsoft Control retaliates. Clinton Microsoft administration dominates takes position market for PC against Microsoft. operating systems; OS/2 and Mac OS fail
3. Legislative Engagement Judge Jackson declares Microsoft a monopoly.4. Litigation Microsoft is currently engaged in settlement talks with the U.S. Department of Justice and State Attorneys General.
Societal Awareness
1
Low
High
Stakeholders potential for Cooperation with Organization Type 4 MIXED BLESSINGS
Low
Type 1 SUPPORTIVE
High
Strategy: COLLABORATE Strategy: INVOLVE
Type 3 NONSUPPORTIVE
Low Strategy: DEFEND
Type 2 MARGINAL
Strategy: MONITOR
Low
Type 1 Supportive Stakeholders Strategy: Involve Suppliers Trade Associations Shareholders Many Customers Type 2 Maginal Stakeholders Strategy: Monitor OEMs, ISPs, OLS, ICPs Media Apple (OS) IBM (OS/2)
High
Low
Federal Government State Government Browser Suppliers (Netscape and Spyglass) Sun Microsystems AOL Netscape 18 States