Ethical issues in Production

and Operation department

Presented by

Names Roll No.

Neha Gupta 73
Durgesh Pandey 97
Syuog Pitale 99
Darshan Pujari 100
Kanchan Rajput 101
Krishna Rana 102
The basic concepts and fundamental principles of right human
conduct.
It includes study of universal values such as the:
 Essential equality of all men and women,
 Human or natural rights,
 Obedience to the law of land,
 Concern for health and safety and,
 Increasingly, also for the natural environment.
 We live in an era of cut throat competition and competition breeds
enmity
 This enmity reflects in business operations, code of conduct
 Business houses with deeper pockets crush small operators and
markets are monopolized
 In such a scenario certain standards are required to govern how
organizations go about their business operations, these standards are
called ethics
 All of us want businesses to be fair, clean and beneficial to the
society
 For that to happen, organizations need to abide by ethics or rule of
law, engage themselves in fair practices and competition; all of
which will benefit the consumer, the society and organization
 It is the individual, the consumer, the employee or the human social
unit of the society who benefits from ethics
 These ethics are meant to analyze problems that come up in day to
day course of business operations.
 Satisfying Basic Human Needs
 Creating Credibility
 Long Term Gains
 Improving Decision Making
 Securing the Society
Uniting People and Leadership
To retain the public image of the business
To take business operations seriously and direct towards missions
To reduce decision making dilemmas
To inculcate the fundamental and moral change
 Production is the functional area responsible for turning inputs into
finished outputs through a series of production processes.
Five production sub-functions:-
1. Production and planning department
2. Purchasing department
3. Stores department
4. Design and technical support department
5. Works department
 Receiving raw materials
 Storing materials at safe place
 Supervising the movement of material in the whole plant
 Ensuring that the employees produce the right quality
 Ensuring proper health and safety for the workers
 Motivate the staff and set high work performance.
 Systematic direction, control, and evaluation of the entire range of
processes that transform inputs into finished goods or services.
 It deals with design and management of products, processes,
services and supply chains
 Inputs-HR, capital, materials, land, energy, information, customer
 Transformations-convert inputs into outputs
 Outputs-goods or services, and waste
 Make efficient use of materials, capacity, and knowledge to
achieve output
 Has to follow certain specified codes to achieve the desired output
levels
 Management of human, technology and system resources
 He also does planning, organizing, directing, staffing, and
controlling
 Worker safety
 Product safety
 Quality
 Hiring and firing workers
 Workers’ rights
• Ethically produced goods are defined as goods produced under
conditions of progressive stakeholder relations, advanced
environmental practices and respect for human rights
• An ethical business has to be concerned with the behaviour of all
businesses that operate in the supply chain – i.e.
- Suppliers
- Contractors
- Distributors
- Sales agents
 Ethics in production is a subset of business ethic
 Cost efficiency is sometimes achieved at the cost of quality
 Poor processes and technology is used to keep the cost down, this
is especially true for small players who cannot afford economies of
scale
All the production functions are governed by production ethics but
there are certain that are severely harmful or deleterious which need
to be monitored continuously. The following are worth mentioning:
 Less problems are more of dilemmas (advanced technology)
 Defective services and products or products those are innately
deleterious
 Animal testing and their rights or use of economically or socially
deprived people for testing or experimentation is another area of
production ethics
 Ethics of transactions between the organization and the
environment
 In certain products the danger is greater i.e. a slight error can
reduce the quality and increase the danger associated with
consumption or usage of the same exponentially
Eg. Johnson & Johnson
 Social perceptions also create an impasse sometimes. Eg. Coco
cola.
 Maintenance of standard procedure with supplier
 Consistency in training process
 Helps in auditing
 Helps in increased brand value & trust of customer
DISADVANTAGES OF UNETHICAL PRACTICES
IN PRODUCTIONS
 Loss of customer
 Loss of confidence
 High rate of rejection
 Stock-out, if unethical code of conduct
 Problems in certification
Sections 11 to 20 of the Act deal with the provisions of health
of workers in factory. These are:
 Sec 11 – Cleanliness
 Sec 12 – Disposal of wastes and effluents
 Sec 13 – Ventilation and Temperature
 Sec 14 – Dust and Fumes
 Sec 15 – Artificial humidification
 Sec 16 – Over crowding
 Sec 17 – Lighting
 Sec 18 – Drinking Water
 Sec 19 – Latrines and urinals
 Sec 20 – Spittoons
Sections 21 to 41
 Sec 21 – Fencing of machinery
 Sec 22 – Work on or near machinery in motion
 Sec 23 – Employment of young children on dangerous machines
 Sec 24 – Striking gear and devices for cutting off power
 Sec 25 – Self acting machines
 Sec 26 – Casing of new machines
 Sec 27 – Prohibition of employment of women and children near cotton
openers
 Sec 28 – Hoists and lifts
 Sec 29 – Lifting machines, chains, ropes and lifting tackles
 Sec 30 – Revolving machinery
 Sec 31 – Pressure plant
 Sec 32 – Floors, stairs and means of access
 Sec 33 – Pits, sumps, openings in floors
 Sec 34 - Excessive weights
 Sec 35 – Protection to eyes
 Sec 36 – Precautions against dangerous fumes, gases etc and use
of portable electric light
 Sec 37– Precautions against explosives or inflammable dust, gas
etc.
 Sec 38 – Precautions in case of fire
 Sec 39 – Power to require specifications of defective parts or tests
of ability
 Sec 40 – Safety of buildings and machinery/(A &B) SAFETY
OFFICERS -1000 workers
 Sec 41 – Power to make rules to supplement the provisions.
Six factors are involved in ethical decision making:
1. Magnitude of consequence
2. Probability of the effect
3. Social Agreement
4. Time Interval
5. Proximity
6. Concentration of Effect
ETHICAL CASES

1. ENVIRONMENTALLY PC