UNETHICAL TABLE OF CONTENTS

Komal (K248)
Unethical practices

PRACTICES Divyansh (K235) in Business with example

Palash (K221)

In Preet (K251)
Bribery

BUSINESS Prakhar (K203) Insider Trading: Meaning

and Legal Provisions

Roshan (K201) Conflict of interest

Rushabh (K252) Anti corruption and integrity

 BRIBERY
● Bribery is defined by Black's Law Dictionary as the offering, giving,
receiving, or soliciting of any item of value to influence the actions of an
official, or other person, in charge of a public or legal duty.
● Bribery is defined as the act of giving, promising soliciting, or accepting
money, gift or other advantageous things with the intention to induce or
reward improper performance.
● Bribery is one of the most dangerous and hazardous type corruptions
which become one the major obstacle in the economic, social and
political environment.
● BRIBERY CAN BE OF ANY FORMS. SOME OF THEM ARE :-

● CASH
● GIFTS
● FREE TICKETS (TRAVEL)
● FUNDING
● SALE OF PROPERTIES
● FREE FOOD
● VINTAGE VALUED ITEMS
● Even tipping is also considered as a bribe for some instances.
 Causes
There are many ways that cause bribery :-

● Low Salaries
● Personal Greed : leads to an unrestricted desired for money or power
● Poor internal policies / administration
● Decline of personal ethical sensitivity : due to lack of education or less/
negative learning experience causes downplay
● Lack of tolerance
● It is considered as a acceptable behaviour’
● Lack of effective political ledership
 Effects
● Bribery makes a country less attractive for the foreign investors and may thus
keep down the standard of living of the country.

● POLITICS SECTOR :

Undermines democracy by disregarding formal processes like rigging in

elections leads to undeserved leaders.

Corruption in public administration results in provision of ineffecient provision

of services
● SOCIAL SECTOR

● HEALTH SECTOR

Payments made to reputed surgeon by the patients to be in the top list that
sometimes lead to death.

Bribes made by most of the industries related to medicines and equipment to

the suppliers to sell their low quality product which leads to rise of risk of
death and danger.

● EDUCATION SECTOR

Seeking for admission in good schools or colleges certain institutes ask for
donations to give seat for the student.
Sometimes certain people bribe the officials for the exam paper , sometimes
teachers (externals also) for good marks and for the reputation of the
institutes.

● ECONOMIC SECTOR

It creates the insecurity in the economy and ineffective economic results.

● It prevents the market from working it efficiently and leads to higher

prices.
REMEDIES TO OVERCOME BRIBERY

● Strengthening of Institutions , by camera in most of the Government

offices.
● Supremacy of Law i.e. law to dismiss from the service if found to be
involved in corruption.
● Proper check and balance on all officials as well as citizens.
● Hiring of new employees on merit rather than beneficiaries.
● Proper awareness campaigns need to be formed.
● ANTI BRIBERY ACT , be implied.
● Increase in salaries and incentives.
● Open meetings and records policies
● Disclosure of the policies
● Transparency and Professional accountability.
● Be a responsible citizen.
 ISO 37001
● ISO 37001 is an Anti-bribery Management System standard (ABMS)
published in October 2016.
● Designed to help an Organization establish, Implement, Maintain and
Improve an anti-bribery compliance program.
● It includes a series of measures and controls that represent global anti-
bribery good practices.
 WHO ALL CAN USE ISO 37001?
The standard is flexible and can be adapted to a wide range of Organization,
including:-

● Large Organizations
● Small and Medium sized Enterprises (SMEs)
● Public, SOEs and private Organizations
● Non-governmental Organizations (NGOs)

The standard can be used by Organizations in any country.

INSIDER TRADING
What is Insider Trading?

● Insider Trading is a white collar crime wherein trade of a company's

securities is undertaken by people who by virtue of their work have
access to non public information

● Insider trading is the buying or selling of a publicly traded company's

stock by someone who has non-public, material information about that
stock

● This info could provide advantage to potential investors.

● This form of insider trading is illegal and comes with stern penalties
including both potential fines and jail time.

● Insider trading can be legal as long as it conforms to the rules set forth by
the SEC.

● Legal insider trading happens when directors of the company purchase

or sell shares, but they disclose their transactions legally.
Who are generally involved?
● Officers,Directors and Employees of Involved Corporations;

● Lawyers, Accountants, Government Regulatory Bureaucrats, Printing

Company Employees;

● In some cases, even family members also.

EXAMPLES
● Martha Stewart and Insider Trading -
In 2003, Martha Stewart was charged by the SEC with obstruction of
justice and securities fraud – including insider trading – for her part in the
2001 ImClone case.

● Amazon Insider Trading Case -

In September 2017, former Amazon.com Inc. (AMZN) financial analyst
Brett Kennedy was charged with insider trading, information on Amazon's
2015 first quarter earnings.
SEBI (Prohibition of Insider Trading)
Regulations, 2015 & Companies Act, 2013

● SEBI (Prohibition of Insider Trading) Regulations, 2015 has come into

force with effect from 15th May, 2015 and it contains the definitions
related to Insider Trading.

● Section 195 of the Act of 2013 provides for prohibition of insider trading
of securities.
 Provisions under the Companies Act,2013
A company is incorporated under the Companies Act and on being listed with a Stock Exchange after
executing the listing agreement the SEBI (Prohibition of Insider Trading) Regulations, 2015 apply from
15/5/2015. It is important to know S 195 of the Companies Act,2013 which reads as under :

(1) No person including any director or key managerial personnel of a company shall enter into insider
trading.

Provided that nothing contained in this sub-section shall apply to any communication required in the
ordinary course of business or profession or any other law.

(2) If any person contravenes the provisions of this section, he shall be punishable with imprisonment for a
term which may extend to five years or with fine which shall not be less than five lakh rupees but which
may extend to twenty-five crore rupees or three times the amount of profits made out of insider trading,
whichever is higher, or with both.
BUSINESS ETHICS

CONFLICT OF INTEREST
 MEANING OF CONFLICT OF INTEREST
• In 2005 THERE was an interesting case
• The issue was that the finance minister wife had joined
the income tax department which was under her
husband charge . The implication was that she was
misusing her husband position of political and
government power
• When a person’s personal concerns stand to benefit
from the professional ones , a case is made for conflict
of interest ( A manager sanctioning loan to his relative)
 Kinds of conflict of interest
>Public –Private conflict
>Outside employment
>When an organization is asked to investigate its own affairs
it will make exceptions to suit itself ( Audit)
>The purchase manager buys only from those suppliers who
are friends or relatives
>Revolving door: It is where officials quitting public offices get
into some corporation and pass insider information
 METHODS TO AVOID CONFLICT OF
INTEREST
1. Prevention
2. Disclosure
3. Third party
evaluation
4. Code of ethics
1 Prevention : Before occupying any position in the
department one should carefully examine all the
policies of that department so in order to prevent
COI

2. Disclosure : In INDIA the rule is that everybody

has to disclose his assets which he posses Ex.
POLITICIAN, Financial statements(true profit)
3.Third party evaluation : Third party evaluators
are called when any transaction involves
people from within the company eg To fix a
price of product

4.Code of ethics : Well established COE help in

avoiding the conflict of interest
 Ways to solve conflict
. of interest
1. Admit possible conflict of interest
If you are upright person and you know that you have done
nothing wrong and yet are being accused of conflict of interest
, then be open to investigation
It is natural to resist in order to defend your image

2. Determine conflict of interest

You must begin the process of identifying the nature of conflict as
most of the conflicts may be determined easily and rectified by
disclosures and recusals
3. Take immediate action .
Action should be taken immediately once COI is identified Ex If a
politician holding a minister post is charged against
COI than it is morally advisable to resign from public post until
cleared all charges

4 Create a code of conduct

COI will always teach you regarding creation of a personal code of
conduct
Make effort to re create and re work on it

5.Apply
After a bad experience of COI one should always try to apply a new code
of conduct
ANTI CORRUPTION AND INTEGRITY
10 WAYS TO FIGHT
CORRUPTION
 1. Corruption is not only about bribes: People
especially the poor get hurt when resources are
wasted. That’s why it is so important to understand
the different kinds of corruption to develop smart
responses.

2. Power of the people: Create pathways that give

citizens relevant tools to engage and participate in
their governments – identify priorities, problems and
find solutions.
 3. Cut the red tape: Bring together formal and
informal processes (this means working with the
government as well as non-governmental groups) to
change behavior and monitor progress.

4. It’s not 1999: Use the power of technology to

build dynamic and continuous exchanges between
key stakeholders: government, citizens, business,
civil society groups, media, academia etc.
 5. Deliver the goods: Invest in institutions and
policy – sustainable improvement in how a
government delivers services is only possible if the
people in these institutions endorse sensible rules
and practices that allow for change while making the
best use of tested traditions and legacies – imported
models often do not work.
 6. Get incentives right: Align anti-corruption
measures with market, behavioral, and social forces.
Adopting integrity standards is a smart business
decision, especially for companies interested in
doing business with the World Bank Group and other
development partners.
7. Sanctions matter: Punishing corruption is a vital
component of any effective anti-corruption effort.

8. Act globally and locally: Keep citizens engaged

on corruption at local, national, international and
global levels – in line with the scale and scope of
corruption. Make use of the architecture that has
been developed and the platforms that exist for
engagement.
 9. Build capacity for those who need it most:
Countries that suffer from chronic fragility, conflict
and violence– are often the ones that have the
fewest internal resources to combat corruption.
Identify ways to leverage international resources to
support and sustain good governance.

10. Learn by doing: Any good strategy must be

continually monitored and evaluated to make sure it
can be easily adapted as situations on the ground
change.
THANK YOU