Corporate Integrity:

Word *Integrity* means doing the right thing, even when no one is looking.
Integrity is a foundational moral virtue, and the bedrock upon which good
character is build.
Acting with integrity means understanding, accepting, and choosing to live in
accordance with one principles, which will include
Honesty Fairness Decency
A corporation of integrity will consistently demonstrate good character by being
free of corruption and hypocrisy.
1) Integrity as consistency
2) Integrity as relational awareness
3) Integrity as inclusion
4) Integrity as pursuing a worthwhile purpose
5) Madoff’s corporation

Dimensions:

1) Cultural
Culture is what holds things together. The language, rituals, and patterns of
communication provide a rich context in which we discover how to relate to
persons, experiences, and things.
Matrix of Pearce’s four types of communication.
Monocultures Ethnocentric Modernistic Cosmopolitan
2) Interpersonal
The interpersonal, focuses on the relationships that define the self.
• Realistic image Official image Ideal image
3) Organizational
Refers to corporations as agents. Agents have integrity when their actions are in
alignment with their purposes, assuming these purposes are worthwhile.
Economic Perspective Management Perspective (David Packard)
Civic Perspective
4) Social
Corporate relationships to society
 5) Nature
Corporate relationships to nature

What are 7 ethical principal in business?

There are 7 ethical principal in business.
2.Honesty 3.Integrity 4.Promise-keeping & Trustworthiness 5.Loyalty
6.Fairness 7.Concern for others 8.Respect for others 9.Law abiding.

What is corporate integrity pledge?

The corporate integrity pledge ,sets out principal for corporations to adopt to
demonstrate their commitment toward creating a business environment that is
fair, transparent and free from corruption. The principles are intended to act as
guidance on areas that

Challenges of corporate integrity:

The challenge on the cultural level is to be open to differences and disagreements.

On the interpersonal level, the challenge is to acknowledge the relationships that
constitute one’s relational self.
On the organizational level, the challenge is to insure consistency between
organizational purpose and conduct.
The challenge of the fourth dimension, a corporation’s social context, is for
corporations to develop cooperative relationships with other.

Importance:
i. A Culture Of Integrity Improves Productivity And Behavior
ii. In good companies, employees see few bad acts but are likely to report them.
iii. In bad companies, employees often see bad acts, but stay silent.
iv. A Culture Of Integrity Creates A Reputation For Ethics And Goodwill
v. A Culture Of Integrity Directly Impacts Financial Performance
Business Ethics:
Ethics refers to accepted principles of right or wrong that govern the conduct of a
person, the members of a profession, or the actions of an organization Business
ethics are the accepted principles of right or wrong governing the conduct of
business people Ethical strategy is a strategy, or course of action, that does not
violate these accepted principles.

Importance of ethics in international business:

Ethics is important in international business as it establishes a healthy and
pleasant relationship for all parties involved. Thirdly, performing in harmony with
ethics is vital for attaining client's attention and support and achieving a significant
competitive advantage in a particular market segment.

Ethical Issues In International Business:

Employment practices:
If work conditions in a host nation are clearly inferior to those in a multinational’s
home nation, should companies apply: home country standards host country
standards something in between.

Human rights
In developed countries, basic human rights such as freedom of association,
freedom of speech, freedom of assembly, and freedom of movement, are taken
for grantedIn other countries, these rights may not exist.

Environmental regulations:
Ethical issues arise when environmental regulations in host nations are far inferior
to those in the home nation Environmental questions take on added importance
because some parts of the environment are a public good that no one owns, but
anyone can despoil

Corruption:
The U.S. Foreign Corrupt Practices Act outlawed the practice of paying bribes to
foreign government officials in order to gain business.
Moral Obligation of multinational companies:
Social responsibility refers to the idea that business people should take the social
consequences of economic actions into account when making business decisions,
and that there should be a presumption in favor of decisions that have both good
economic and good social consequences.

What is Ethical dilemmas

Ethical dilemmas are situations in which there is a difficult choice to be made
between two or more options, neither of which resolves the situation in a manner
that is consistent with accepted ethical guidelines.

• Truth vs reality • Short term vs Long term • Justice vs Mercy

The Roots Of Unethical Behavior

There is no clear cut reason why managers behave unethically.

The causes of unethical behavior are

• Personal ethics • Decision-making processes • Leadership • Unrealistic
performance expectations • Organizational culture

(i).Personal ethics: Refers to the ethics that a person identifies with in respect to
people and situations that they deal with in everyday life.

(ii).Decision Making Process: People may behave unethically because they rely on
economic analysis when making decisions and fail to ask the relevant question Is
this decision or action ethical?

(iii). Leadership: Leaders help to establish the culture of an organization, and set
the example that others follow When leaders act unethically, subordinates may
act unethically, too

(iv).Unrealistic Performance Expectations: When the parent company sets

unrealistic performance goals, managers may cut corners or act in an unethical
manner Organizational culture can legitimize unethical behavior or reinforce the
need for ethical behavior.

(v).Organizational Culture: Organization culture refers to the values and norms

that are shared among employees of an organization firms with an organization
culture that does not emphasize business culture, unethical behavior may exist.

EFFECTS OF UNETHICAL BUSINESS PRACTICES:

1.Legal Problems:
Businesses that act unethically in ways that break the law may face large fines and
other penalties.

2.Poor employee performance:

A lack of ethics within a company affects the way employees do their job. People
can decide that because leaders can break the rules, they can too. This can lead
them to damage the company. They may also become discouraged or not see the
need to work hard in an unethical environment.
3.Poor company credibility:

When a company is unethical, it affects its reputation. Not only will the leaders
and company lose respect from employees, they will lose credibility with the
general public as well. This can result in reduced sales, lost customers, and
significant financial harm.
Employees Rights:

Not be harassed or discriminated against (treated less favorably) because

of race, color, religion, sex (including pregnancy, sexual orientation, or gender
identity), national origin, disability, age (40 or older) or genetic
information (including family medical history).

Receive equal pay for equal work.

Receive reasonable accommodations (changes to the way things are normally

done at work) that are needed because of their medical condition or religious
beliefs , if required by law.

Expect that any medical information or genetic information that they share with

their employer will be kept confidential.

Report discrimination, participate in a discrimination investigation or lawsuit, or

oppose discrimination (for example, threaten to file a discrimination complaint),
without being retaliated against (punished) for doing so.

These rights are based on federal employment discrimination laws

Main Responsibilities of Employees 

Employees have responsibilities towards their employers, even if they work part
time or don’t have a written contract with their employers. 

These are the main responsibilities of employees:

 to personally do the work they were hired to do 

 to do their work carefully and seriously (In some cases, they could be fired or
disciplined if they’re often late for work, or if they’re absent too often or for
no good reason.) 
 to avoid putting themselves or others in danger   
 to follow their employer’s instructions (There are some exceptions. For
example, if an employer asks an employee to do something dangerous or
illegal, the employee doesn’t have to follow these instructions. 
  to be loyal

Employees – your responsibilities

As an employee, you have a 'duty of care' responsibility for safety and health at
the workplace. Under Section 20 of the Occupational Safety and Health Act 1984,
your 'duty of care' means that you must:

 work safely to ensure your own safety and health;

 make sure your actions do not cause injury or harm to others;
 follow your employer's instructions on safety and health – ask for assistance
if you do not understand the information;
 take care of any protective clothing and equipment (PPE) in the way you
have been instructed and report any concerns about it;
 report any hazards, injuries or ill health to your supervisor or employer; and
 cooperate with your employer when they require something to be done for
safety and health at the workplace.

Workers are entitled to some employment rights, including:

 The National Minimum Wage

 Holiday pay and adequate time off
 Adherence to the Working Time Regulations
 Protection against unlawful discrimination, bullying and harassment
 The right not to be treated less favourably if working part time.

What common responsibilities do employees have to their employer?

 Rendering faithful service to an employer
 Not to compete in business against an employer (whilst still employed by
them)
 To obey lawful and reasonable orders (that are consistent with his or her
contract)
  To exercise reasonable skill and care in terms of fulfilling their role
 To provide a personal service
 Not to disclose any private or confidential information
 Maintain trust and confidence by behaving in a reasonable manner
 To fully disclose any wrongdoing
To look after an employer’s property if using it

Employee Rights and Responsibilities:

Rights:
That which belongs to a person by law, nature, or tradition.
Responsibilities:
Obligations to perform certain tasks and duties.
Statutory Rights:
Rights based on specific laws and statutes passed by federal, state, and local
governments.
1.Equal employment opportunity 2.Collective bargaining 3.Workplace safety

Contractual Rights:
Rights based on a specific contract between employer and employee.
Employment Contract:
An agreement that formally outlines the details of employment.
Implied Contract:
Notion that a contract exists between employer and employee based on implied
promises of employer.
Non-Compete Agreements:
Prohibit individuals who quit from competing with employer in the same line of
business for a period of time.

Rights Affecting the Employment Relationship:

1.Employment-at-Will (EAW) 2.Wrongful and Constructive Discharge 3.Just Cause
4.Due Process 5.Distributive and Procedural Justice

Employment-at-Will (EAW):
Employers:
Employers have the right to hire, fire, demote, or promote as they choose, unless
there is a law or contract to the contrary.
Employees:
Employees have the right to quit and get another job under the same constraints.

Employment-at-Will Restrictions:
Wrongful Discharge: Termination of an individual’s employment for improper or
illegal reasons .
Fortune National Cash Register

Constructive Discharge: An employer deliberately makes working conditions

intolerable in an attempt to get (to force) an employee to resign or quit.

Employment-at-Will: Fairness:
Just Cause: Reasonable justification for taking an employment-related action.
Due Process: The means used to allow individuals to explain and defend their
actions against charges or discipline.

CONSUMER RIGHTS

Consumer:
A person who has indicated his or her willingness to obtain goods and/ or services
from the supplier with the intention of paying for them.

Consumer rights:
The right to have information about the quality, potency, quantity, purity, price
and standard of goods or services.

1.RIGHT TO SAFTEY:
According to this right the consumers have the right to be protected against the
marketing of goods and services which are hazardous to life and property.
For example the manufacturing defects in medicines and other electronic
appliances may cause damage to life of consumers.

2.RIGHT TO INFORMATION:-
According to this right the consumer has the right to get information about the
quality, quantity, purity, standard and price of goods or service so as to protect
himself against the abusive and unfair practices.
The producer must supply all the relevant information at a suitable place.

3.RIGHT TO CHOOSE:-
According to this right every consumer has the right to choose their desired goods
and services.
The producer or supplier or retailer should n. force the customer to by a particular
brand only.

4.RIGHT TO BE HEARD:-
According to this right the consumer has the right to represent him (or) right to
advocate his interest.
In other words, consumers have a right to complain when there are problems or
concerns.

5.RIGHT TO SEEK REDRESSAL:

According to this right the consumer has the right to get compensation or seek
redressal against unfair trade practices or any other exploitation.
The right to redressal includes compensation in the form of money or replacement
of goods or repair of defect in the goods as per the satisfaction of consumer.

6.RIGHT TO CONSUMER EDUCATION:-

According to this right it is the right of consumer to acquire the knowledge and
skills to be informed to customers.
The government of India has included consumer education in the school
curriculum and M various university courses. Government is also making use of
media to make the consumers aware of their rights .