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BUSINESS ETHICS

CHAPTER 1: INTRODUCTION TO BUSINESS ETHICS


When business people speak about business ethics they usually mean one of three things:
(1) avoid breaking the criminal law in ones work-related activity; (2) avoid action that may result in
civil law suits against the company; and (3) avoid actions that are bad for the company image. Ethics
refers to a system of moral principles a sense of right and wrong, and goodness and badness of
actions and the motives and consequences of these actions. As applied to business firms, ethics is the
study of good and evils, right and wrong and just and unjust actions of businessmen.
Ethics is a body of principles or standards of human conduct that govern the behavior of individuals
and groups. Ethics arise not simply from man's creation but from human nature itself making it a
natural body of laws from which man's laws follow. Ethics is a branch of philosophy and is
considered a normative science because it is concerned with the norms of human conduct, as
distinguished from formal sciences such as mathematics and logic, physical sciences such as
chemistry and physics, and empirical sciences such as economics and psychology. Ethics is seen as
an individuals own personal attitude and a believe concerning what is right or wrong, good or bad. It
is important to note that ethics reside within individuals and that organization doesnt have ethics.
People have ethics. Consequently, its definition and understanding varies from person to person.
These are not absolute, but are relative. Ethical behaviors are in the eye of beholder. What is right or
wrong is a personal individual matter, but is still influenced by socially accepted norms. Right, and
proper and fair are the ethical terms. It expresses a judgment about behavior towards people they felt
to be just. Ethics are useful tools for sorting out the good and bad components within complex human
interactions. Business ethics does not differ from generally accepted norms of good or bad practices.
If dishonesty is considers to be unethical and immoral in the society, then any business man who is
dishonest his or her employees, customers shareholders, or competitors is unethical and immoral
person. Businessmen should not try to evolve their own principles to justify what is right and what is
wrong Businesses
Fairness principle: business should be fair in all of their practices.
Human rights principle: businesses should respect human rights.
Autonomy principle: businesses should not infringe on the rationally reflective choices of
people.
Veracity principle: businesses should not be deceptive in their practices.
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CHAPTER 2: FORMATION OF ETHICS

An individuals ethics are formulated through the operation of forces in theindividuals environment.
These are discussed in the succeeding paragraphs.
Family influences
The formation of ethics begins when the individual is a child. Thus the familyenvironment has a
significant influence in determining what the child learnsabout good and bad, right and wrong.
Peer influences
As the child develops contacts outside the home through home, school,play and work, peers exert
considerable influence on the individuals ethicalbeliefs.
Experiences
As a person matures and develops as a human being, he or she will beexposed to many critical
experiences that will be affect his or her ethicalstandards.
Values and morals
Ones ethical standards are also greatly influenced byvalues and morals.People who place high value
on money and material possessions may nothave strong ethical standard regarding behaviors that
facilitate theaccumulation of that wealth.
Situation Factors
People often change their ethics in response to unknown situational factors.An employee, who is
threatened with loosing a job that has been held for years, may commit unethical acts in order to save
the job.

Religion
One of the oldest sources of ethical inspiration is religion. More than 1,00,000different religion exist
across the globe .Despite doctrinal differences, themajor religion coverage on the believe that ethics
is an expression of divine will that reveals the nature of right and wrong in business and others walks
of life.
The legal system
Laws are rules of conduct, approves by legislatures, that guide humanbehavior in any society .They
codify ethical expectations and change as newevils emerge. But law cannot cover all ethical
expectation of society.Whenever ethics the law codifies, itis binding on businesses. The
societyexpects businesses to abide by the law. Obeying the law is presumed to beethical behavior
.Law breaking in business is common. Taxes are evaded,hundred of employees die because of
occupational disease, many perishbecause of industrial accidents, and million others receive disabling
injurieson the job. The blame for these death and injuries had to be shared byemployees and
employers who fail to adhere to occupational health and
safety laws. Consumer suffer because of poor quality and highpriced products by the supplied by the
businessmen .Businessesthat degrade the environment by disregarding environmentprotection laws
cause misery to the society.

CHAPTER 3: CODE OF ETHICS


Code of ethics hasbecome popular .Nearly 95 percent of the Fortune 500companies have codes, and a
trend is visible in the corporate sector in Indiaalso.Industry association have evolved codes of
conduct their own. For example,the council of fair business practices (CFBP) established in 1916, by
leadingprivate sector industrialist in western India, and adopted a code of fair business practices.The
code constitutes a primary level, self regulation character for enlightencitizenship among business
entities. The CFBP hasinitiated a set of prizes and awards called Jamnalal Bajaj Uchit Vyavahar
Puraskar or(JamnalalBajaj prize for fair Business Practices) to promote exemplary application of the
above norms .The CFBP president claimed that sustained pressure fromhis council has resulted in
creation of Advertising standards Council of India(ASOI) and in promulgation of the consumer
protection act (CPA) ,1986.TheFederation of Indian chambers of commerce industry (FICCI,which
includesthe MNCs)has recently issued a declaration on Norms of business consistingof ten points.
The Punjab, Haryana and Delhi chamber of commerce has alsolately formulated a code of
ethics.Whoever evolves the code, its purpose is to provide guidance to manager and employees when
they face ethical dilemma. The most effective codesare those drawn up with the cooperation and
widespread participation of employees. An internal enforcement mechanism, including penalties for
violating the codes, adds teeth to the code.Code of ethics is guidelines tosteer the conduct of both the
organizationsand its employees in all business activities. These are intra and inter organizational in
nature and relate to all activities of an organization and itsenvironment. They provide positive and
productive orientation and directionto the code of business, besides giving an individual identity to
thatorganization.Code of ethics provide general guidelines with respect to the values andethical
standards of the company Business ethics is concerned with truth and justice and has a variety of
aspects, such as expectation of society, fair completion, advertising, publicrelations, social
responsibilities, consumer autonomy, and corporatebehaviors with in and with out. A code is a
statement of policies, Principles, or rules that guide behaviors.
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OBJECTIVES OF CODES OF ETHICS


A code of ethics aims at the following:
Guidance
It provides direction to the most important element of anorganization namely the People, so that
they know how to conductthemselves in terms of ethical behavior and give them a sense of common
identity.
Confidence
It inspires public confidence besides enhancing thereputation of the organization.
Initiative
it provides initiative and stimulation to the suppliers andcustomers for proper conduct by creating a
sense of moral obligation
Ethical culture
It promotes a culture of excellence by not justformally teaching ethics, but by demonstrating through
leaders thecommitment of the organization to ethical behavior.

CHAPTER 4: BUSINESS ETHICS


Companies, led by top management, are increasingly adopting ethical codesof conduct. Modern
ethics codes aren't just some simple platitudes set in abreak-room plaque. Companies now commit
considerable time and money toillustrate their reliance on ethical behavior.Ethical behavior starts at
the top. Before a company can expect to be viewedas ethical in the business community, ethical
behavior within its own walls-toand by employees-is a must, and top management dictates the mood.
Ethicalbehavior by the leaders of an organization will inevitably set the tone for therest of the
company-values will remain consistent. Further, a well-communicated commitment to ethics sends a
powerful message that ethicalbehavior is considered to be a business imperative. Companies are also
interested in determining whether ethical behavior canbe measured, just as efficiency and
productivity companies must innovateways to measure ethical behavior, which in turn motivates
ethical behavior.Once training, measurement and a new ethical code have been developed,companies
are also hiring full-time ethical compliance officers, and startingethics hotlines to report possible
policy violations. Hiring a full-time ethicsofficer is another signal to employees that ethical violations
will be taken veryseriously. However, this person isn't just a watchdog-they will take a
proactiveapproach to identifying possible violations before they develop.Ethics are important not
only in business but in all aspects of life because itis an essential part of the foundation on which of a
civilized society is build. Abusiness or society that lacks ethical principles is bound to fail sooner or
later.

OBJECTIVES OF BUSINESS ETHICS

Ethical issues exist at all levels of business activity. As per Peter Pratley, Business
Ethics has a two fold objective:1. Evaluates human practices by calling upon moral standards.

2. Gives prescriptive advice on how to act morally in a specific kind of situation.


The first objective implies Analysis and Evaluation. It leads to an ethical diagnosis
of past actions and events.
The second objective is to provide the Therapeutic advice. It suggests slowdowns and
policies when facing the present dilemmas and future dangers, based on well- informed
opinions. This specially requires an identification of relevant stakeholders and a clear
understanding of the vital issues at stake.

THE MAJOR PRINCIPLES OF BUSINESS ETHICS

No discrimination should be done on the basis of caste ,color , andreligion,

The polices should be fair and transparent

Proper provision of safety should be provided by the company tothe employees.

There should be proper honesty, loyalty, and integrity in theemployees.

The companys resources should not be utilized by the employeesfor their personal usage

Company should provide better environment condition

Information about employees personal lives, health, and workevaluations should be kept
confidential.

Regular measurement of employee satisfaction should by company.

To neither give nor take any illegal payment, remuneration, gift,donation, or comparable,

benefits to obtain business or favours.


To comply with all regulations regarding preservation of the environment.
Employee should report to management any actual or possibleviolation of code or an event
that could affect the business or reputation of the employees company.

CHAPTER 5 : IMPORTANCE OF BUSINESS ETHICS


Ethics is important to business in general and HR in particular, for severalreasons as stated below:
Ethics corresponds to basic human needs
It is mans basic nature that he desires to be ethical, not only in his private life but also in his
businessaffairs where, being a manager he knows that his decisions may affectthe life of thousands of
employees. Moreover, most people want to bethe part of organization which they can respect and be
proud of, becausethey perceive its purpose activities to be honest and beneficial to society.Most HR
manager would like to respond to this need of their employeesand, they (managers) themselves feel
an equal need to be genuinelyproud of the company they are directing. These bases ethical
needscompel the organizations to be ethical oriented.
Values creates credibility with the public
A company perceived by thepublic to be ethical and socially responsive will be honored ands
respectedeven by those who have no intimate knowledge of its actual working.There will be an
instinctive prejudicein favour of its products, since peoplebelieve that the company offers value for
money. Its public issues willattract an immediate response.
Values gives the management credibility with its employees
Values

are

supposed

to

be

common

language

to

bringthe

leadership

and

its

peopletogether.Organisational ethics, when perceived by employee as genuine,create common goals,


values, and language. The HR management canhave credibility with its employees simply because it
has credibility with thepeople. Neither a sound business strategy, nor a generous compensationpolicy
and fringe benefits can win employee credibility, but perceivedmoral and social uprightness can.
Values help better decision making
Another point of great importanceis that an ethical attitude helps the management make better
decisions,that is ,decision which are in the interest of the public, their employees,and the companys
own long-term good, even though the decision makingis slower. This is so because respect for ethics
will force a management totake various aspect-economic, social and ethical-in making decision.
Ethics and profit go together

A company which is inspired by ethicalconduct is also profitable. Value-driven companies are most
likely to besuccessful in long run,though in the short run, they may lose money.
Law cant protect society, ethics can
Ethics is important because, lawand lawyer cannot do every thing to protect society. Technology
developsfaster than the government can regulate. People in an industry know thedangers in the
particular technology better than the regulatoryagencies.Futher; the government cannot always
regulate all activitieswhich are harmful to the society. Where law fails, ethics can succeed.
Anethically-oriented management takes measures to prevent pollution andprotect workers health even
before being mended by law .An ethicallysound HR manager, who can reach out to agitated
employees, will quell atrouble more effectively than the police.

CHAPTER 6: SCOPE OF BUSINESS ETHICS


Scope of business are as follows in different levels :

1. Stakeholders
Level:I. Employees: Security of Job
Better working condition
Better Recommendation
Participative Management
Welfare Facilities.

II. Customers: Better quality of goods.


Goods and services at reasonable price.
Not to corner stocks and create securities.
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Not to practice discriminatory pricing.


Not to make fake claims about product in advertisements.

III.Shareholders: Ensure capital appreciation.


Ensure steady and regular dividends.
Disclose all relevant information.
Protect minority shareholders interest.
Not to window dress balance sheets.
Protect interest in times of merges, amalgamations and takeovers.
IV. Bank and other lending institutions: Guarantee safety of borrowed funds.
Prompt repayment of loans.
V. Government: Complying with rules and regulations.
Honesty in paying taxes and other dues.
Acting as Partner in the progress of the country.

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2.

Personal Policy level: Not to use office Car, Stationary and other facilities for personal use
Not to fall prey to short ends.
Not to misuse others for personal.
Not to indulge in policies to gain power.
Not to spoil promotional chances to others.
Promise keeping
Mutual help.

3.

Societal level: Concern for poor and downtrodden.


No discrimination against any particular section or group.
Concern for clean environment.
Preservation of scarce resources for prosperity.
Contributing to better quality of life.

4.

Internal policy level: Fair practices relating to requirement, compensation, layoffs, perks promotion etc.
Transformational leadership to motivate employees to aim at better and higher things in
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life.
Better communication at levels.

CHAPTER 7:ETHICAL ISSUES THAT ARISE FOR


MANAGERS
The Ethical issues that arise for Managers are indeed for all people, including Employees,
Customers, Consumers and Members of the public.
Corporate activities affects us all and so the conduct of business is a matter of concern for everyone
with a stake in ethical management. The ethical issues are regularity faced by the Managers in the
Ordinary Course of their works.
These are also major issues debated in the Parliament and scrutinised by the courts, This is because
ethical issues in Business are closely tied to important matters of Public Policy and to the Legislative
and Judicial Processes of the Government.

REASONS FOR ETHICAL PROBLEMS:1. Cross Cultural Contradiction:These problems arise and occur because Corporations do business in other societies where
ethical standards differ from those at home.
2. Competitive Pressures: When Companies are squeezed by severe competition, Managers sometimes engage in unethical activities to beat out a competitor.
3. Personal Gain: 13

Personal gain or even greed, causes some ethical problems.


Business sometimes employs people whose personal values are less than desirables.
4. Organisational Goals:Ethical conflicts in Business frequently occur when a Company pursues goals or uses methods that
are not acceptable to some of the Employees. Managers are the key people to investigate whether a
Company will act ethically or un-ethically. As major decision makers and policy makers, they have
more opportunities than others to set an ethical time for the Company.

HOW TO USE ETHICAL REASONSING


What business needs is a set of guidelines for thinking about ethics. The guidelines should
help Corporate managers and employees.
Identify the nature of the ethical problems.
Decide which course of action is likely to produce the most ethical results.
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Methods of Ethical Reasoning Are

Utilitarian
Rights
Justice
Utilitarian are comprising benefits and costs where an action is ethical when net benefits exceeds net
costs. Its limitation is, it is difficult to measure some human and social costs. Majority may disregard rights of minority.
Rights: - The critical determining factor is to respect the basis human Rights, where it is difficult to
balance conflicting Rights.
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Justice: - Here an action is ethical when benefits and costs are fairly distributed. But it is difficult to
measure benefits and a cost as these is lack of agreement on fair shares.
The levels of Decision - making occurs in 3 distinct levels: Level of the Individual.
Individuals in the work place require to make a decision about their own
response whether to live with the difficult boss or blow the whistle?

Level of the Organisation.


Problems at the level of the organisation To bring out some organizational change e.g.
Sexual Harassment an individual matter for the person suffering the abuse.

Level of the Business System.


Problems resulting from accepted business practices cannot effectively be addressed by any
single organisation, much less a line individual.

The Individuals are faced with questions about ethics in their relations with customers, employees
and members of the larger society. Frequently the ethical correct course of action is clear and people
in Business act as per that. Exceptions occur, when these is uncertainty about ethical obligations in
particular situation or when considerations of ethics come into conflict with practical demands of
Business e.g. Sales Representative not sure about the extent to which he is obliged to provide
information about possible delays in Delivery to Customers.
In deciding on an ethical course if action, we can reply to some extent on the rules of right
conduct that we employ in everyday life. Deception is wrong (e.g. whether we deceive a friend or a
customer)
One of the feature that distinguishes business activity is an economic character. In the world of
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business, we interact with each other not as family members, friends or neighbours but as Buyers and
Sellers, employers and Employees and the like Employment is also recognised as a special relation
with its own standard of Right and Wrong. Employers are generally entitled to hire and promote
whomever they wish and to lay off (or terminate) the workers without regards for the consequences.
The Ethics of Business, is atleast impart the ethics of economic relation such as those involving
buyers, sellers, employers, employees.

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CHAPTER 8: TATA GROUP OF COMPANIES

In India, Tata Group of Companies are practicing Business Ethics and Tata Code of Conduct have
governed the manner in which Tata Companies and their Employees should conduct themselves.
Tatas code of conduct serves as a Guide to each Employee on the values, Ethics and Business
Principles expected of him or her. Each Tata Employee take pride in up-holding the high standards of
Corporate and Personal Behaviour on which the Tata Groups reputation and respectability have been
built.
Over the past 130 years. For the stages of Ethical Growth and Ethical
organisation, Tata Group of Companies have highest standards and Values in India.

Some of the Codes in Tata Code of Conduct:1. National Interest.


2. Financial Reporting as per financial
Reporting Standards.
3. Equal opportunity Employer.

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4. Gifts and Donations.


5. Political, Non Alignment.
6. Health, Safety and Environment.
7. Quality of Products and Series.
8. Corporate Citizenship.
9. Use of Tata Brands.
10. Shareholders
11. Ethical Conduct
12. Regularly Compliance
13. Conflict of Interest
14. Citizenship and
15. Reporting Concerns.
Every Employee of a
Tata Company shall promptly report to the management any actual or possible violation of the Code
or event he becomes aware of that could affect the business or reputation of his or any other Tata
Company.

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CHAPTER 9: CODE OF BEST PRACTICE


THE CADBURY REPORT

The Cudbury Report gave a Code of Best Practice which was to serve as a guideline to those public
companies which wanted, on voluntary basis, higher standards of Corporate Governance.
These are as follows :-

1.

In every firm there should be a separate CEO and Chairman of the Board of Directors. When
the same person carries on with the two roles, that of the CEO and the Chairman of the Board, it
provides too much authority with little check on such power with the person. ( The old saying that
Power Corrupts and absolute power Corrupts absolutely) holds good in Corporate
Governance also).
2.It should be the function of the Chairman to manage the affairs of the Board, including the
hiring and firing of the CEO of a Company when necessary. The CEO on the other hand is
responsible for the day-to-day management of the organization.

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3.The Chairman should be responsible for setting up Goals and Objectives of the CEO and of
monitoring the CEOs performance in the implementation of the oranisations strategy. If the
Chairman and the CEO are one and the same person, this level of supervision is lost, bringing
it with higher risks to the organisaton.
4.

It is the interests of the organization to have Non-Executive Directors bringing to the Board
their experiences and expertise and not as Rubber-Stamps for endorsing the Chairmans decisions.
The rational is that these Experienced Part-Time Directors are already in Senior Executive Position
with other organizations and they would supplement the efforts of the full-time Executive Directors
on the Board.

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CHAPTER 10 : CASE STUDY


CASE STUDY 1 :BRIBE TO GET SUPPLY ORDER
A Director of a company had to issue a supply order to a company supplying for purchasing of
computers. Marketing Manager of the Computer Supplying Company went to the Director for
expediting the supply order. But the Director had some problems with his college going Son and Wife.
The College going son wanted a Motor cycle and the Director did not have sufficient money to
purchase it. The case went to little more complication when his wife also justified the need of their son
for a Motor-Bike to go to College. So, the Director told to the Marketing Manager to come on other day
since that day was a bad day for him with difficulties with his family members like his son and his
wife. Hearing the difficulties of the Director, the Marketing Manager of the Computer Supplying
Company told to the Director that it did not appear to be a difficult case and offered to help the Director
to meet the need of his son and wife.
The MarketingManager asked the Director to give a cheque of Rs.50000/- in favour of M/s. Ram
Automobiles who would be supplying the Motor cycle. But The Director informed the Marketing
Manager that he did not have sufficient Balance in the Bank. Account and hence, if the cheque is issued
, it would be surely Bunched due to not having sufficient Balance. The Marketing Manager informed
the Director that he would take care of this Banks problem.
Next morning, the Marketing Managers came to the Director and delivered a New Motorcycle, a packet
containing Rs. 50000/- Cash and a payment receipt from M/S Ram Automobiles.
Marketing Manager asked the Director to deposit this cash of Rs. 50000/- in his Bank
Account. So that the cheque is not Bunched. Also informed the Director that Non- a- days vigilance
Department is very efficient and they might check and verify the payment details and hence a proper
Payment Receipt is obtained so that the Director do not have any problem with the Vigilance
Department at any time.

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CASE STUDY :2
The marketing manager is visiting a top office of his customers firm, who has to place a large order
on the firm.
Top Officer:- I think you have come on a wrong day. I am very disturbed today. My college going
son has been pestering me to buy a new Motorcycle, worth Rs. 50000/-. I do not have spare money
today to buy it. Even my wife joined my son and I do not get any peace at home. Naturally, I am in no
condition mentally to take a decision on your tender.
Marketing Manager:- Sir, why do you worry? Just give me a cheque in the name of Ram
Automobiles for Rs. 50000/- and the Motorcycle will be at your house by tomorrow.
Top Officer:- Why do you want the cheque? It May bounce!
Marketing Manager:- Sir, these days the Vigilance has become active and I am only booking at your
safety. The cheque will be encashed, please keep that much money in the Bank.
Next day the Motorcycle receipts for the cheque and an envelope with Rs. 50000/- cash was
delivered at the officers house.

CASE STUDY :3
Distributor:- I know my quota is only 7 tons per month. If you can allot 70 tons instead, I promise
to place Rs. 1000/- per ton, that is Rs. 70000/- per month in any Bank account you name in India or
even in Switzerland.
After 6 months, if you keep starving other distributors, I will double the amount. We both will
become richer by your decision and since other distributors will keep getting some quantities, they
will not complain. If any one complains I will settle with him by going him some quantities.
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Top Officer:- Mr. Distributor, you have come to the wrong place. I do not play such games. Now you
better leave the place or I will have you thrown out of my office by calling our security guards.

The story does not end here. The Distributor writes letters to the concerned Minister,
the Prime Minister and the Managing Director of the firm saying that the office is depriving him of
his legitimate quota because on the last visit to his office, the officer had asked for Rs. 2000/- per ton
on being allotted minimum quota of 70 tons.
Lucky for the officer, his implacable reputation as a rare honest officer came to his
rescue, when the Managing Director assured the concerned persons about his honesty.

CASE STUDY :4
The boss of an International Firm in India orders supply of 10 Tank Wagons of white oil (used in
dry cleaning process) to be delivered to one of the Major Distributors of the of the Firm. This high
demand came up because the boss came to know that the white oil can be mixed to the extent of up to
50%in petrol and the cars would run smoothly for at least 3 years is long enough period, and cars
mostly go bad in this period anyhow. On the financial side, the distributor would make Rupees
hundred thousand per wagon and he was agreeable of giving the boss Thirty Thousand per wagon. It
would amount to Three hundred thousand per month and in the next 4 years; the boss would have
enough money to retire in peace. All went well till some wise guy the bosss junior, stated prying into
the deal and in less than 3 months, the boss who was to take over as the Top Boss in the country, was
given the sack. It was his good luck that he was not handed over to the Police.
The students have to analyse the case for the following:1. The junior who disclosed the fraud risked his job. Was it the right thing to do?
2. Other juniors also had come to know about it and some had in fact abetted in the crime. How
should the firm treat them, in view of the fear under which they use operating?
The boss in India rules supreme as he keeps a sword hanging over the head of his employees,
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especially, those who are not part of a union, and with this fear psychosis the employees are ready
to do anything ordered by the Boss. These are people, who are extremely honest in their private life,
while they succumb to the bosss orders during office operations. Then these are others, who do the
illegal tasks ordered by the Boss willingly, almost eagerly, ready to deliver the bribe to the right
person as they would take a handsome cut from the bribe as personal insurance against any problem
they may face as a result of the act of giving the bribe.

CASE STUDY :5 ETHICAL PROBLEM IN BUSINESS.


When orders dropped in any manufacturing company, the Supervisor is asked to terminate a few
employees to save cost. The Supervisor knows that some of them though loyal, hard working, they
have to be terminated to save his skin. He knows it is unfair to terminate the employees and still he is
helpless. Even if he is given two months termination time by the Company, he will not reveal his plan
of termination to the employees with a fear that employees will quit while still needed or not work as
hard as they usually did after being told. The Supervisor had to entre all company rules and policies.
For him, the ethical dilemma relates to two dimensions :- (I) Personal (II) Professional.

CASE STUDY :6
In another case, a senior Librarian who was very casual and negligent in his attitude, had to make one
of his weak Assistant a scapegoat at the end of the year when Library Inventory was checked and
nearly 500 books were short. The Senior Librarian know very
well that his Assistant is highly loyal, sincere and honest in his work and such a thing would not have
happened from him. However, the reason of the books lost could not be found out by him and he had to
put the blame on his junior who is mentally weak and innocent. Otherwise, he had to take the full
blame. He took the decision of putting the blame on his junior rather than on himself.
There would be many episodes like this, raising ethical question for a number of
reasons. Sometimes society is harmed. At other times the individual makes profit in an unfair way at
the expense of others. We all know the story of the clever monkey that ate the curd rice and smeared it
on the face of the goat. The Goat was punished severely by his master who thought that it had eaten the
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same

A business firm suffers many a times with higher costs when the firm has to
pay hidden costs for its suppliers.

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CONCLUSION
There are two types of firms: Some firms have stayed on the right track of ethical business for a long
time. These are a few elite firms, who have been carrying on their operations on ethical moral and even
religious lines. Such firms keep a steady but slow growth since they do not believe in get rich quick.
Techniques of the present day business. In fact in the 18 th century, rarely a firm could be found
indulging in unethical operations. They were turned to their social responsibilities. The emergence of
unethical firms can be traced to the twentieth century in India for the following reasons:1. Government controls on Private Business, which result in quota, permit raj.
2. Powers vested with even the junior government officers who demanded benefits each time the
firms wanted a favours, even if it was strictly under the law.
3. The Government departments like the public utility offices had an axe to grind with the firms
operations and they had to pay these people money for letting the firm carry out its legitimate
operations.
4. Government approvals, Licenses, No objection certificates all had a price and some of them are
still present giving opportunities to Government officers to make money.

Most persons are quick to blame the system, the Government for the state of affairs. They believe that
the laws are made for letting the Government officers make as much money as they can.
Today, the first kind of honest firm has become a rarity as the others have taken over the
business world. It must be argued that it is the businessmen who have corrupted the Government
officers for their benefit and in the process unleashed a major Frankenstein, who they find different to
tie down.

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BIBILIOGRAPHY
1. http://www.tutor2u.net/business/strategy/business-ethics-introduction.html
2. Scribd
3. http://carmine.se.edu/cvonbergen/Business%20Ethics_A%20View%20from
%20the%20Trenches.pdf
4. http://web.tepper.cmu.edu/ethics/whybizethics.pdf
5. http://www.universityofcalicut.info/syl/ManagementConceptsBusinessEthics.
pdf

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