Ques 1 EXPLAIN THE IMPACT OF ETHICS IN BUSINESS WITH SPECIAL REFERENCE TO MARKETING, Hr ,IT ,FINANCE

Ethics concern an individual's moral judgements about right and wrong. Decisions taken within an organisation may be made by individuals or groups, but whoever makes them will be influenced by the culture of the company. The decision to behave ethically is a moral one; employees must decide what they think is the right course of action. This may involve rejecting the route that would lead to the biggest short-term profit. Ethical issues include the rights and duties between a company and its employees, suppliers, customers and neighbors, its fiduciary responsibility to its shareholders. Issues concerning relations between different companies include hostile take- overs and industrial espionage. Related issues include corporate governance; corporate social entrepreneurship; political contributions; legal issues such as the ethical debate over introducing a crime of corporate manslaughter; and the marketing of corporations' ethics policies.[ Ethical behaviour and corporate social responsibility can bring significant benefits to a business. For example, they may:

attract customers to the firm's products, thereby boosting sales and profits make employees want to stay with the business, reduce labour turnover and therefore increase productivity attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees attract investors and keep the company's share price high, thereby protecting the business from takeover.

Finance Fairness in trading practices, trading conditions, financial contracting, sales practices, consultancy services, tax payments, internal audit, external audit and executive compensation also fall under the umbrella of finance and accounting. Particular corporate ethical/legal abuses include: creative accounting, earnings management, misleading financial analysis insider trading, securities fraud, bribery/kickbacks and facilitation payments. Outside of corporations, bucket shops and forex scams are criminal manipulations of financial markets.

Human resource management Human resource management occupies the sphere of activity of recruitment selection, orientation, performance appraisal, training and development, industrial relations and health and safety issues.[76] Business Ethicists differ in their orientation towards labour ethics. Some assess human resource policies according to whether they support an egalitarian workplace and the dignity of labor. Sales and marketing Marketing ethics involves pricing practices, including illegal actions such as price fixing and legal actions including price discrimination and price skimming. Certain promotional activities have drawn fire, including green washing, bait and switch, shilling, viral marketing, spam (electronic), pyramid schemes and multi-level marketing. Advertising has raised objections about attack ads, subliminal messages, sex in advertising and marketing in schools.

Q 2 HOW THE ETHICAL ISSUE EFFECT CAPITALISM MARKET SYSTEM

Capitalism has slipped its moral moorings. Since the financial crisis erupted, remedies have focused on capital, equity and structure. These are certainly necessary. But it is even more important that we address the deficiency in moral and human spirit which was the real root of the crisis. We are doomed to repeat our mistakes if we do not restore sound ethics to economic behaviour. In recent years finance has forgotten or ignored that it is a servant and not a master. Letting the market decide was the morality of our time. We became identified with the market and lost sight of its real purpose: to enable us to fulfill a duty owed by virtue of a shared humanity to the wider community. The task we face is to recover that discourse, to rediscover the moral spirit of capitalism so that it best serves all people. Regulation, though necessary, is not enough. A box ticked is not a duty done. It does not address the complexity of human beings. We have spiritual desires (longing for happiness) and a moral spirit (an instinct that doing well comes from doing right), as well as financial imperatives

Q3 EXPLAIN THE ETHICAL THEORIES AND APPROACHES IN BUSINESS

1. Ethical theories and approaches in Business 2. Ethical theories provide a framework for judging right or wrong decisions. There are two types of Ethical theories a. consequentialist b. Non consequentialist a. Consequentialist theories:- If the consequences are good, the action is right; if they are bad, the action is wrong. There are two theories under this category : Egoism Utilitarianism Egoism : Egoism as an ethical theory. The view that equates morality with self- interest is referred to as egoism. An egoist contends that an act is morally right if and only if it best promotes his interests. Moral philosophers distinguish between two kinds of egoism:

personal and impersonal. Personal egoists claim they should pursue their own best interests, but they do not say what others should do.

 Impersonal egoists claim that everyone should let self-interest guide his or her conduct. UTILITARIANISM: Utilitarianism tells us to bring about the most happiness for everyone affected by our actions. Six Points about Utilitarianism: 1. First, when deciding which action will produce the greatest happiness, we must consider unhappiness or pain as well as happiness. 2. Second, actions affect people to different degrees.

3. Third, because utilitarians evaluate actions according to their consequences and because actions produce different results in different circumstances, almost anything might, in principle, be morally right in some particular situation. 4. Fourth, utilitarians wish to maximize happiness not simply immediately but in the long run as well. 5. Fifth, utilitarians acknowledge that we often do not know with certainty what the future consequences of our actions will be. Accordingly, we must act so that the expected or likely happiness is as great as possible. 6. Sixth : my pleasure and pain should be equally treated as others Use of utilitarianism in organizational context :

Formulating policies Second, utilitarianism provides an objective and attractive way of resolving conflicts of self- interest.

Third, utilitarianism provides a flexible, result- oriented approach to moral decision making.

Non-Utilitarian theories1. Formulate the maxim of the action. That is, figure out what general principle you would be acting on if you were to perform the action.("in situations in which I need money and know I cant pay it back, I will falsely promise to pay it back.")

Universalize the maxim. That is, regard it not as a personal policy but as a principle for everyone.( "in situations in which anyone needs money and knows he or she cannot pay it back, he or she will falsely promise to pay it back."

Determine whether the universalized maxim could be a universal law, that is, whether it is possible for everyone to act as the universalized maxim requires.(if everyone started making false promises, the institution of promising would disappear, so no one would be able to make a false promises, since there would be no such thing as a promise to falsely make.)

Humanity as an End, Never as Merely a Means Treat human being as end not as a mean : Human are worth in themselves so you should respect their rights. All effort should be done to improve the well being of human being.

Organizational implications. There are two alternative formulations of the categorical imperative. The first is that an act is right only if the actor would be willing to be so treated if the positions of the parties were reversed. The second is that one must always act so as to treat other people as ends, never merely as means.

Q4 What is Intellectual Property AND How Ethical Issues protect the rights of Intellectual Property?

Intellectual property (IP) is a legal concept which refers to creations of the mind for which exclusive rights are recognized. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights, trade dress, and in some jurisdictions trade secrets. Although many of the legal principles governing intellectual property rights have evolved over centuries, it was not until the 19th century that the term intellectual property began to be used, and not until the late 20th century that it became commonplace in the majority of the world. The British Statute of Anne (1710) and the Statute of Monopolies (1623) are now seen as the origins of copyright and patent law respectively.

Intellectual Property Defined

Intellectual Property (IP) is a very debated thing, as we have seen so far. It is not the idea that is so touchy, but the use of it. IP comes in vaguely two forms: industrial property and copyright. Industrial property includes patents, trademarks and industrial designs. Copyright includes literary and artistic works. All of these things are tangible items. Music, sculptures and novels can all be copyrighted, but ideas cannot. IP is a constructed protection of the physical form of people's ideas. The construct of IP is not so bad. It protected Gutenberg and his printing press and Mozart when produced his many orchestral compositions, but we see that IP is being used more to stifle creativity rather than protect it with each new court case (e.g. Napster, Stream cast, etc).

How Ethical Issues protect the rights of Intellectual Property?

RIGHTS ETHICS AND DUTY ETHICS Rights and duties are reciprocal concepts. Where there is a right to be left alone, others have a duty to leave you alone. In cases where there is a right that others not do something, that is called a negative right. While many believe in strictly rights concerning liberty, such as Libertarians, others believe that people have at least a right to have basic needs met, such as Socialists. One can simultaneously have liberty rights and welfare rights, such as having the freedom of speech and to Medicaid.

On one hand, liberty is preserved by allowing people the freedom to create without the fear of someone stealing your invention. On the other hand, once something is copyrighted or patented, people are no longer free to create it. Even with knowledge of how something works is readily accessible, one would be prohibited from selling it, themselves. People presumably have the right to not have things taken from them, but the only things taken if someone's intellectual property is copied is potential profit, recognition, and/or control of the invention. Even if one were to consider this theft, it could be justified if the person had a right to welfare that they were being denied.

VIRTUE ETHICS Virtue ethics is a moral framework within which if you act according to the virtues of character (i.e. wisdom, prudence, righteousness, etc) and for the right reasons, you are a good person. Consequences are less important in this framework because despite doing one's best, fate often intervenes and disturbs one's plans. The best known promoter of virtue ethics is Aristotle. In Nicomachean Ethics and The Politics, Aristotle defines the virtuous person and society as something that is culturally defined, community oriented, and directed toward the perfection of character. These goals trump claims for the respect our modern notion of concrete rights.

Intellectual property, in terms of rights of copyright holders, is not necessarily a meaningful concept as it relates to virtue. If one creates a product in order to make a living, that is a necessary means to the end of being a virtuous person. On the other hand, if one meets their own needs, and by a lack of generosity doesn't share their wealth with those who need it, that is greedy and wrong. It would be hard for multi-millionaires to argue that they are not being greedy by hoarding money and living a life of luxury off of a product, especially if there are people who need the product and can't afford it or there are people who are starving. The key is to find the ``Golden Mean,'' the intermediate position between greed and being too open-handed with one's money.

The progress of science and the arts would most likely be considered a good thing under virtue ethics because it allows people to, for example, overcome childhood illness and live a full life and become virtuous. To this end, a virtuous society would find ways to promote science and the arts. That society would find uses for these things is not a blank check for people to behave immorally in other ways, which is the sticking point for intellectual property today. Examples of this would include things like nuclear weapons creation (because of the excess of destruction they cause), and withholding AIDS drugs for those unable to pay for them (because of greediness of the act).

SELF-INTEREST Theories of self-interest would tend to suggest that if everyone acts according to their own interest, the world would be a better place. The classic self-interest theorist is Thomas Hobbes, who promoted self-interest as a way for people to mutually restrain each other. Free-market capitalism would be another expression of this ideal. Hobbes would leave the decision about whether to acknowledge intellectual property to the ``Leviathan,'' or dictator, while capitalism supports the idea of patenting and copyrighting and would leave all further decisions in the hands of the owner.

Q5 EXPLAIN THE TERMS:

a. COPYRIGHT : Copyright is a legal concept, enacted by most governments, giving the creator of an original work exclusive rights to it, usually for a limited time. Generally, it is "the right to copy", but also gives the copyright holder the right to be credited for the work, to determine who may adapt the work to other forms, who may perform the work, who may financially benefit from it, and other related rights. It is a form of intellectual property (like the patent, the trademark, and the trade secret) applicable to any expressible form of an idea or information that is substantive and discrete. b. PATENT : A patent is a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time, in exchange for the public disclosure of

the invention. An invention is a solution to a specific technological problem, and may be a product or a process. Patents are a form of intellectual property. The procedure for granting patents, requirements placed on the patentee, and the extent of the exclusive rights vary widely between countries according to national laws and international agreements. Typically, however, a patent application must include one or more claims that define the invention. These claims must meet relevant patentability requirements, such as novelty and non-obviousness. The exclusive right granted to a patentee in most countries is the right to prevent others from making, using, selling, or distributing the patented invention without permission. c) TRADEMARK: Distinctive design, graphics, logo, symbols, words, or any combination thereof that uniquely identifies a firm and/or its goods or services, guarantees the item's genuineness, and gives it owner the legal rights to prevent the trademark's unauthorized use. A trademark must be (1) distinctive instead of descriptive, (2) affixed to the item sold, and (3) registered with the appropriate authority to obtain legal ownership and protection rights. Trademark rights are granted usually for 7 to 20 years and, unlike in case of patents, are renewable indefinitely. These rights are protected worldwide by international intellectual property treaties and may be assigned by their owner to other parties. Although a trademark has no limited term of existence, the rights to use it may be lost due to misuse or lack of use. Trademarks are divided into 42 international classes, each class representing similar goods or services. Whereas a trademark may be registered under multiple classes, it is protected only in the class (es) relevant to the business or trade area of the item. And, whereas the use of symbol 'TM' does not provide any legal benefit, it precludes the infringer's defense of lack of knowledge of a trademark claim. Costs incurred in design and registration of, and in defending, a trademark is usually amortized over the life the trademark or 40 years, whichever is shorter. In balance sheets, trademarks are identified as intangible assets and, in some cases such as Coca Cola Co., are far more valuable than the firm's all other assets. The term trademark includes the associated term service mark (SM).