• MGT401 BUSINESS ETHICS & CORPORATE GOVERNANCE (3)

COURSE OBJECTIVES:

CEO I: To introduce business ethics as a basic managerial approach to ethical handling of a

business setup in traditional and current business world.
CE02: To understand Indian ethos with its role in good managerial practice and justification
for their inculcation. The reference cases/episodes from the scriptures to understand
their values;' . .•
CE03: To understand the role of ethics in different functional areas of business i.e. production,
marketing, sales and profit & record keeping etc.

•.. ·
CE04: To understand the business ethical leadership especially in non-profit organizations i.e.
Society and trust trusteeship and their importance.
CEOS: To teach fundamental theories and practice of corporate governance with a focus on
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ethical business practices .

SECTION -I BUSINESS ETHICS

.•
I. Introduction -M~aning, Nature &Objectives of ethics- studies human Behavior, establishes •
norms, bases of judgment, Meaning & objectives; business ethics & profitability; Need for
ethics in business; pros & cons of ethics in business.
2. Relationship between Business & Ethics- Unitarian view- business a subset of ethics;
Separatist view- two entities & the Integration view- two related subsystems, Ethical

.
D1,lemma- Difference betwe.en self & superior; Ethical Relativism- ethics. varies v,vi~h plac~~;
Ethical Gap- lack of awareness. . .
3. E~ployee Rights & Duties- Code of Conduct- employees workplace re~ponsibilities,
customers and other external constituencies responsibility, corporate social responsibility,
Administration qf Code- Distribution, approvals, Monitoring compliance, Investigation &
Disciplinary actions. Whistle Blowers- meaning, definition, origin, role in organization,
concept in India. ·
I 4. Ethical Awareness in Organization- Training and communication- Management speeches,
posting on websites, Publishing articles & newsletters, Ethical brochures; Systems to
r-- monitor and enforce ethical standards among employees, Ethics audit.
SECTION -II INDIAN ETHOS
I. Indian Ethos Overview- Meaning, Features, History, Need, Relevance, , Role of Indian
; Ethos in Managerial Practices.
2. Management Lessons from Scriptures- Management lessons from various scriptures,
Indian Heritage in Business Management, Production and Consumption. Ehtics vs Ethos,
Indian Management vs. Western Management.
3. Values- Meaning, Features, Values for Indian Managers, Relevance of Value Based •
Management in Global Change, Impact of values on Stakeholders: Employees,
Customers, Government, Competitors and Society. Trans Cultural Human Values in
management, 'Importance qf value system in work culture.

SECTION-Ill ETHICS IN BUSINESS FUNCTIONAL AREA

I. Ethics in Mark~ti~g- responsibility to self, to company & customers, unethical sales
practices & steps to ethical behavior.
2. Ethics in Advertising- purpose, types, advertising on children, advertising controversial
products, concept ofsurrogate marketing, Advertising Standllrds & Council of India (ASCI)
3. Ethics in Mass Media- Meaning, Types of unethical practices, importance & need of ethics
in mc!,ss.media. ..

SECTION-IV INDIAN BUSINESS ETHICAL LEADERSHIP

I. Principles practiced by Indian Companies- Meaning, Principle of sacrifice. Principle of
harmony, principle of non- violence, Principle of reward, principle of justice, Principle of
taxation, principle of integri~,
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2.
Leadership in Indian Businesses- Contemp~rary Approaches to Leadership, Joint Hindu
Family Business - Leadership Qualities of Karta
3 Trusteeship- Meaning, objective, Gandhinian approach in management _
SECTION -V CORPORATE GOVERNANCE, COMMITTEES & COMPLIANCES
I. Introduction-Meaning of corporate governance, evolution, need and importance, genesis in
India, developments in India's fundamental objective & provisions regarding corporate
governance in the listing agreement.
2.
Board Governance and Independence- meaning, training and professional development of
board members; board systems and procedures}- frequency of meeting,. notice , quorum,
3. matters to be placed before the board, Good Board Room Practice- code of conduct
Board Committees & - Disclosure Requirements - Types of committees- Executive,
nomination, advisory, compliance, shareholders / investor's grievance committee,
remuneration and audit committee. Structure of audit committee- constitution, membership.
Companies Act- 1956. Disclosure as per Companies Act- 1956, & as per listing agreement.
Reporting Requirements- Guidelines for companies- drafting and preparation,
promulgation and communication, enforcement, periodic review, Board of Directors report,
annual report and ·accounts, listing agreement evolution, meaning, importance. Related party
4. · Transactions- Introduction, related parties at a glance, disclosures.
Compliance- Compliance of the conditions of the listing agreement with respect to
corporate
report. governance, checklist for timely compliance of listing agreement, compliance

COURSE OUTCOMES

COl: The students wiiLdevelop responsiveness towards contextual social issues and problems
involving busfoes~ ethics and exploring solutions to them.
CO2: The students wiJI be able to understand Indian ethos resolving ethical dilemmas and
adopting the ethical b4siness practices to the extent of feasibility.
C03: The studeritswill identify the contemporary problems involving ethical approaches.
Also, explore the opportunities for social entrepreneurship. ·
C04: The students will be able to design business solutions and demonstrate ethical standards
in organizational decision making through various cases and exposure visits.
COS: The students will be able to distinguish ethical and unethical behaviors in business
ventures and how to take the right decision.
REFERENCES
BOOKS:
I. Chakraborty, S.KFoundations of Managerial Work - Contributions from Indian
Thought, Himalaya Publishing
2. Chakraborty, S.K.: Ethics in Management: Vedantic Perspectives, Oxford University
Press,Deihi
4. S~thish Modh: Ethical Management: Macmillan.
5. Griffiths, B: The Marriage ofEast and West, Colling, London.
6. Trevion and Nelson: Managing Business Ethics, John Wiley and Sons,
7. Koontz, Hand \1/echrick, H: Management, McGraw Hill Inc, New York
8. Drucker, Peter, F: Management: Tasks, Responsibilities and Practices, Allied
Publishers,New Delhi
JOURNALS: ,

I. Journal of Buslness
, Manageme'lt, Bangaloreethics in. developing economies , Indian Institute of Plantation
2.
Journal of Business Ethic, Springer Science, Germany
E-SOURCES:
• I.
2. http://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article==I055&context==jekem
http://www.ethicsbasedmarketing.net/articles.html

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