Business Ethics 1

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Busi
nessEt
hics 1
SURESHAKS, SKDEC
Uni
t–1: Busi
nessEt
hics 12Hr
s
Int
roduction–Meani ng-Scope–Ty pesofEt hi
cs–Char act
eri
sti
cs–Factorsinfl
uenci
ng
Busi
nessEthics–I mport
anceofBusi
nessEthi
cs-Argumentsforandagai
nstbusi
nessethi
cs-Basi
cs
ofbusi
nesset hi
cs-Corporat
eSoci
alResponsi
bil
i
ty–IssuesofManagement–Cr i
si
sManagement
Uni
t–2: Per
sonal
Ethi
cs 12Hr
s
I
ntr
oducti
on–Meani ng–Emot i
onalHonest
y–Vi
rt
ueofhumi
l
ity–Pr
omot
ehappi
ness–
kar
may
oga–pr oact
ive–f
lexibi
l
ityandpuri
tyofmi
nd.
Uni
t–3: Et
hicsI
nManagement 12Hr
s
I
ntr
oducti
on–Ethi
csinHRM –Mar ket
ingEt
hics–Et
hicalaspect
sofFi
nanci
alManagement
–Technol
ogyEthi
csandPr
ofessi
onal
ethi
cs.
Rol
eofCor
porat
eCul
tur
ein
Uni
t–4: 12Hr
s
Busi
ness
Meani
ng–Funct
ions–I
mpactofcor
por
atecul
tur
e–cr
osscul
tur
ali
ssuesi
net
hics
Uni
t–5: Cor
por
ateGov
ernance 12Hr
s
Meani
ng,scope,composi
ti
onofBODs,Cadbur
yCommi tt
ee,vari
ouscommi t
tees,r
eportson
cor
porat
e gov
ernance,scope ofCor
porat
e Gover
nance,Benefi
ts and Li
mit
ati
ons ofCor porat
e
Gover
nancewi
thli
vingexampl
es.
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Busi
nessEt
hics 2
SURESHAKS, SKDEC
Uni
t–1: Busi
nessEt
hics
Meani
ngofBusi
ness–
Busi
nessr
efer
stoeconomi
cact
ivi
ti economi
es{ cact
ivi
ti
esar
econcer
nedwi
tht
hepr
oduct
ion
anddi
str
ibut
ionofweal
th(i
.e.
,goodsandservi
ces)ei
therf
orownconsumpti
onorforsalet
oothers
atapr
ofi
t}concer
nedwit
hthepr oduct
ionandsal
eofgoodsandserv
icesf
orthepurposeofear
ning
pr
ofi
t.
Initsl
i
teralsense,busi
nessmeansthestateofbei
ngbusy.Inthi
ssense,anyeconomi
c
act
ivi
tywit
hwhichamankeepshi msel
fbusycanberegar
dedasbusi
ness.
I
ncommonpar lance(i.
e.,
int
hegeneralsense),
busi
nessisi
dent
if
iedwit
hexchangeofgoods
andser
vices.I
nthi
ssense,busi
nessref
erst
omer et r
ading(
i.
e.,
buyi
ngandsel
li
ngofgoods.
Def
ini
ti
onsofBusi
ness-
I
nthewor
dsofUr
wickandHunt–
“Busi
nessi
sanyent
erpr
isewhi
chmakes,dist
ri
butesorprov
idesanyar
ti
cl
eorser
vicewhi
ch
ot
hermembersoft
hecommunit
yneedandar
ewill
ingtopayfor
.”
Or
igi
nofEt
hics-
Theword“ ethi
cs”i
nLatinlanguageiscal
l
ed‘
Ethi
cus’andinGreek,
iti
scal
l
ed‘ Et
hica’
,whose
rooti
s“ et
hos.
”“ Ethos”event
uall
ycamet omeanaper son’
s“ i
nter
iordwel
li
ngplace,
”t he“basi
c
ori
ent
ati
onordispositi
onofapersont owar
dsli
fe.
”
I
nf act
,thi
swordhasori
ginat
edf
rom ‘
Ethos’
,meani
ngchar
act
er;nor
ms,i
deal
sormor
als
pr
evai
l
inginagrouporsoci
ety
.
Meani
ngofEt
hics-
Et
hicsar
ekindofl
ikemor al
sandcommonsense.I
tiswhatyouthi
nki
sri
ghtorwr
ong.Bei
ng
“
ethi
cal
”meanstryi
ngtobereasonableanddoi
ngwhaty
outhi
nkisri
ght
.
Et
hicsr ef
erst
ot hecodeofconductt
hatgui
desani ndi
vi
duali
ndealingwi
thother
s.Et
hics
i
nvol
vethef undament
aldefi
nit
ionofwhatisgoodorbad,r
ightorwrong;andwhatshoul
dbedone
andwhatshouldbeavoided.
Def
ini
ti
onsofEt
hics–
Accordi
ngt
ot hedi
cti
onar
y ,t
heterm ethi
cshasav ar
iet
yofdiff
erentmeanings.Oneoft
he
meani
ngsgiventoi
tis“t
hepri
nci
plesofconductgover
ningani
ndivi
dual
oragr oup.
”
Accor
dingt
oPet
erF.Dr
ucker–
“Ther
eisonlyoneet
hics,onesetofr
ulesofmor
ali
ty,
onecodet
hatofi
ndi
vi
dualbehav
iouri
n
whi
cht
hesamer ul
esapplyt
oev er
yoneali
ke.
”
Accor
dingt
oDav
is&Fr
eder
ick–
“
Ethi
csr
efer
stot
her
ulesandpr
inci
plest
hatdef
iner
ightandwr
ongconduct
.”
Gr
oundRul
esofEt
hics–
Thefoll
owingaresomeoft heuni
ver
salv
irt
ueswhi
chev
eryhumanbei
ngshoul
dimbi
be
dev
elopandpracti
cetobeet
hical
inl
i
fe;
 Bet
rust
wor
thy
 Hav
erespectf
orot
her
s
 Ownr
esponsi
bil
i
ty
 Bef
airi
ndeal
i
ngs
 Becar
ingt
owar
dswel
lbei
ngofot
her
s

Busi
nessEt
hics 3
SURESHAKS, SKDEC
 Pr
ovet
obeagoodci
ti
zen–t
hroughci
vi
lvi
rt
uesanddut
ies
ScopeofEt
hics-:
01. Et
hicsasNor
mat
iveSci
ence–
Ethi
csasnormati
vesci
encedealswi
thmor
ali
dealort
hegoodinordertoenquirethenat
ure
ofourconduct
.Itenqui
resi
ntothenatureoft
hespr
ingsofact
ions,mot
ives,i
ntent
ions,vol
unt
ary
act
ionsandsoon.
I
tdet
erminesr
ight
nessorwr
ongnessofhumanact
ions.I
tdoesnotenqui
rei
ntot
heor
igi
n
andgr
owthofhumanconduct.
02. Absol
uteGood–
Ethicsisconcernedwiththehi
ghestgoodorabsol
utegood.I
tinv
est
igat
est
henat
ureofi
ts
f
undamentalnot
ionsi.
e.,r
ight
,dut
yandgood.
03. Mor
alJudgment
s–
Moralj
udgmentspassedonourvol
unt
aryact
ionsar
eal
soincl
udedwit
hinthescopeofethi
cs.
I
ndiscussi
ngthemoralj
udgementithasal
sotoconcernwi
tht
henatur
e,obj
ect
,facul
tyandstandar
d
ofmoralj
udgment.
04. Fr
eeHumanAct
s–
Thescopeofethicsincludeswhateverhasrefer
encetofr
eehumanacts,whet
heraspri
nci
ple
orcauseofaction(l
aw,conscience,v
irt
ue)orasef f
ectorci
rcumstanceofact
ion(
merit
,puni
shment
et
c.,
)Ethi
csdiscussest
henat ureofhumanf reedom.
Ethicsi
nvesti
gateswhatconst
it
utesgoodorbad,justorunj
ust.I
talsoinqui
resi
ntowhatare
vi
rt
ue,law,conscienceanddut y?Whatobli
gati
onsarecommont oall
?Whati sthegoodinallgood
act
s?Thesequest ionsli
ewithi
nthescopeofethi
cs.Thesenseofduty,oughtnessormor
alobl
igati
on
andther esponsi
bil
it
yforact
ionsareal
soincl
udedwithi
ntherangeofethics.
05. Mor
alGoodness–
Theparti
cul
araspectunderwhichethi
csconsi
dersfreeact
sisthatoft
hei
rmoralgoodness
ortherecti
tudeofor
derinvol
vedinthem ashumanacts.Et
hicshasmerel
ytodowit
htheorderwhich
rel
atestomanasmanandwhi chmakesofhi m agoodman.
06. Appl
iedEt
hics–
Ethicsi
sessent i
all
yrel
atedtoal lot
herbranchesofknowl edgeli
kesociol
ogy ,
pol
it
icalsci
ence,
j
uri
sprudence,law and l egal study,psy chology,anthropology,cultur
e study ,ecology and
envi
ronmentalstudy,economics,reli
gion,aest
het i
csandot hersimil
arareas.Et
hicsconcernedwi t
h
pol
it
ical
,sociol
ogical,cul
tur
al,psychical
,economi c,env
ironment al
,rel
i
giousproblemsinpur sui
tof
hi
ghestgood.Sot heseproblemshav eanaddi t
ionalpl
acent hescopeofet hi
cs.
Ty
pes/Ki
nds/Cl
assi
fi
cat
ionofEt
hics-:
I
. Tr
ansact
ionalEt
hics–
Manissocialani
mal.Hehastoactandr eactwit
hot her
sthroughdiff
erenttr
ansact
ions.The
pract
iceofethi
csinallthesetr
ansact
ionsi
scall
edast ransacti
onalethi
cs.Theconceptofinterest
s
needstobespecif
iedbecauseofcommoni nt
erestthatcandisti
ngui
sh.Commoni susedint
hesense
ofoccurr
ingsimul
taneously.
Fori
nstance;
weneedvegetables,
vegetabl
ev endorneedscustomerlikeusforsur
viv
al,
sowe
bot
har edependentoneachot
her,aslongaswebot hcontri
buteappr
opriat
elytoget
herwegenerat
ea
sur
plusthatnoneofusonhisowni sabletoproduce.
I
I. Par
ti
cipat
oryEt
hics–
Guidedbycommongood, al
lthepart
ici
pati
onsfoll
owsomeet hicalpract
ices.I
tisapri
v i
l
eged
par
tofbusinessethi
cs,wi
thint
hecategoryofotheri
ncludingact
ions,gui dedbycommoni nterest
s,
wefindanothert
ypeofact
ions(
notbysimult
aneousorconnectedinterests)butbysharedint
erests.

Busi
nessEt
hics 4
SURESHAKS, SKDEC
Par
ti
esco-
oper
atei
nor
dert
opr
oducemor
edi
stantcommongoodt
hathast
hechar
act
eri
sti
c
f
eat
ures–
 Thegoodcanonl
yber
eal
i
zedt
hrought
hepar
ti
ci
pat
ionofal
lpar
tner
s.
 Par
ti
cipat
ioncannotbeenf
orced(
notexpl
i
citmor
alobl
i
gat
iont
otakepar
tint
hepr
oject
)
 Part
ici
pati
onmaybepr ofi
tabl
ebyparti
ci
patingpar
tiesaswel
last
hecommuni
tyatl
arge;
noneofthepar
ti
eshav
et opart
ici
pat
einordertosur
vive.
I
II
. Recogni
ti
onEt
hics–
Ashumanbei ngs,peopl
eareendowedwi ththeabil
i
tyt
ounderst
andtheproblemsofothers.
Thi
squali
tyl
eadstother ecogni
ti
onofi
ndi
vidual
s,inst
it
uti
onsandsoci
eti
es,
confl
i
ctingsit
uat
ionscan
besol
vedbythecorr
ectr ecogni
ti
onoft
hesituat
ion.
Her eanethi
csofselfdev
elopmentgui
dedbyt hepr
inci
pleoffi
del
i
tytoonesbasi
cself
.Basi
c
mor
alprincipl
eswhichcharact
eri
zethefi
eldofrecogni
ti
onethi
csisthepri
nci
pleofr
ecogni
ti
onit
sel
f
t
hefor
mal andconsci
ousrecogni
ti
on.
I
V. Nor
mat
iveEt
hics–
Theword‘normati
ve’ref
erstothenor
msorgui
deli
nesandisof
tenusedint
erchangeabl
ywi
th
t
hewor
d‘prescr
ipt
ive.
’Inasense,i
tsigni
fi
esf
orani
dealbehav
iourf
ori
ttobeter
medaspr oper
.
“Nor
mat i
veethi
csisanat
temptt
oanal
yzewhatpeopl
eshoul
ddo,orwhet
hert
hei
rcur
rent
behav
iouri
sreasonabl
eornot
.”
Businessethi
csar
econcer nedwithtrut
handj usti
ceandhaveav ar
iet
yofaspectssuchas
the expectati
ons ofsoci
ety
,f aircompetit
ion,advert
isi
ng,publi
crel
ati
ons,socialr
esponsi
bil
i
ty,
consumer sautonomyandcorporatebehav
iourinthehomecountryaswel
lasabroad.
V. Descr
ipt
iveEt
hics–
Descr
ipt
iveet
hicsdescribehowpeoplebehaveand/orwhattypesofnormalst
andar
dsthey
clai
mt ofol
low.Theconcl
usionsaboutthedescr
ipt
iveet
hicsofagi
vensetofpeopl
earebasedonthe
resear
chinthefiel
dsofant
hr opology
,psy
chol
ogy,soci
ologyandhi
stor
y.
Descri
pti
veethi
cshel
pinunder
standi
nghowaper
sonact
ual
l
ymakesmor
alchoi
cesi
nreal
or
hy
pot
het
icalsi
tuat
ion.
VI
. Manager
ialEt
hics–
Managerialethi
csr epr esentanet hi
calapproachtowardsattai
ningcorporat
egoalsi
nan
envi
ronmentthatinv
olvesot herpeople.Iti
sanenqui r
yint
othenatureandback–gr oundofmoral
ity
i
n an organi
zation setti
ngs.Manager ialethi
cs invol
ved examini
ng the appli
cati
on ofet
hical
di
mensionstomanager ialdecisionmaking.
VI
II
. Anal
yti
cEt
hics–
Al
soreferredtoasMet aet
hics,
thi
scategor
yisper
hapsthemostdiffi
cul
tt ounderst
and.I
tis
thestudyofassumpt i
onspeoplemakewhenengaginginnormati
veethi
cs–e. g.,exi
stenceofGod,
natur
eofreal
ity
, useful
nessofethi
calpr
oposi
ti
onsetc.I
tst
atest
hat,“
Morali
tyi
sr el
ativ
e.”
I
targuest hatther
earenomor alstandar
dsindependentofoursoci
algr
oupsandhence
what
everasocial
gr oupdeci
desi
sri
ghti
srightandwhateveri
tdeci
dedi
swrongiswrong.
Or
igi
nofBusi
nessEt
hics-
I
tori
ginatedi
nUSAi nt he1970’
s.Busi
nessethi
cshighlight
edsoci
alvaluesandsociety’
s
concernsi
nrel
ationst
obusinessandfor
cedthecor
porat
einthatcountryt
oabst
ainfrom pol
i
ciesand
pract
iceswhi
chwer ehost
il
etoconsumersandenvi
ronment
alprotecti
on.

Busi
nessEt
hics 5
SURESHAKS, SKDEC
I
ntr
oduct
ionofBusi
nessEt
hics–
Businesset
hicsconcer
nsit
sel
fwi
tht
her
elat
ionshi
pbet
weenbusi
nessobj
ect
ives,pr
act
ices,
andt
echniquesandthegoodofsoci
ety
.
Busi
nessethi
csref
erst
ot hesoci
all
ydetermi
ned mor
alpr
inci
pleswhi
chshoul
d gov
ern
busi
nessact
ivi
ti
es.Af
ewexampl
esofbusi
nesset
hicsar
e;
 Char
gingf
airpr
icesf
rom cust
omer
s.
 Usi
ngf
airwei
ght
sformeasur
ementofcommodi
ti
es.
 Gi
vi
ngf
airt
reat
mentt
owor
ker
sandear
ningr
easonabl
epr
ofi
ts.
 Abusinessper
sonbehav
eset
hical
l
ywhenherorhi
sact
ionsar
eupr
ightandser
vet
hei
nter
est
ofsoci
ety.
Meani
ngofBusi
nessEt
hics-:
Busi
nessEthi
csr ef
erstothepr i
ncipl
esperformsandphi losophiesthatdir
ectt
hebusi
ness
peopleinthedayt odaybusinesschoice.Itr
elat
edt othebehav i
ourofbusi nessmaninabusi
ness
condit
ion.Busi
nessethi
csisprinci
pal
l
yconcer nedwiththoseissuesnotcov eredbythel
aworwhere
ther
eisnodef i
nit
econsensusonwhet hersomethingiscorr
ectorincorrect.
BusinessEthi
cscanbedef i
nedaswri
ttenandunwrit
tencodesofpri
nci
plesandval
uesthat
governdecisionsandact
ionswi
thinacompany.Inthebusi
nessworl
d,theor
gani
sati
on’scul
tur
esets
standar
dsf ordeter
mini
ngthedi
ffer
encebet
weengoodandbaddeci si
onsmakingandbehavi
our.
Def
ini
ti
onofBusi
nessEt
hics-:
Accor
dingt
oRogeneA.Buchhol
z,
“
Busi
nesset
hicsr
efer
stor
ightorwr
ongbehav
iori
nbusi
nessdeci
si
ons.
”
Accor
dingt
oThomasM.Gar
ett
,
“
Business ethi
cs i
s pr
imar
il
y concer
ned wi
tht
he r
elat
ionshi
p ofbusi
ness goal
s and
t
echni
questospecifi
chumanneeds.
”
Char
act
eri
sti
cs/Feat
uresofBusi
nessEt
hics-:
1. CodeofConduct–
BusinessEthi
csi
sacodeofconduct
.Itt
ell
swhatt
odoandwhatnott
odof
ort
hewel
far
eof
t
hesoci
ety
.Itisfol
l
owedbyal
ltheor
gani
zati
ons.
2. BasedonMor
alandSoci
alVal
ues–
Businesset
hicsisbasedonmor alandsocialvalues.Itcont
ainsmor alandsoci
alpr
incipl
es
(r
ules)fordoingbusiness.Thi
sincl
udessel f–cont r
ol,consumerpr otect
ionandwelfar
eserviceto
societ
y,fai
rtreat
menttosocialgr
oups,nottoexpl
oitothers,etc.
3. Gi
vesPr
otect
iont
oSoci
alGr
oups–
Businesset
hicsgi
vepr
otect
iont
odifferentsocialgroupsuchasconsumer
s,empl
oyees,
smal
lbusinessmen,
gover
nment
,shar
ehol
der
s,credit
ors,
et c.
4. Pr
ovi
desBasi
cFr
amewor
k–
Businessethi
csprovi
deabasi
cf rameworkfordoi
ngbusiness.I
tgivesthesoci
alcul
tur
al,
economi
c,legalandotherl
i
mit
sofbusi
ness.Busi
nessmustbeconductedwit
hinthesel
i
mit
s.
5. Vol
unt
ary–
Busi
nessethi
csmustbevol
unt
ary.Thebusinessmenmustacceptbusi
nesset
hicsont
hei
r
own.Busi
nesset
hicsmustbel
i
kesel
f–disci
pli
ne.I
tmustnotbeenfor
cedbylaw.

Busi
nessEt
hics 6
SURESHAKS, SKDEC
6. Requi
resEducat
ionandGui
dance–
Busi
nessmenmustbegi venpropereducat
ionandguidancebeforeint
roduci
ngbusiness
ethi
cs.Thebusinessmenmustbemot iv
atedt
ousebusinesset
hics.Theymustbei
nformedaboutthe
advantagesofusingbusi
nesset
hics.Tr
adeAssoci
ati
onsandChamber sofCommercemustalsoplay
anactiverol
einthismatt
er.
7. Rel
ati
veTer
m–
Businesset
hicsi
sarel
ati
veterm.Thati
s,i
tchangesf
rom onebusi
nesstoanot
her
.Ital
so
changesf r
om onecountr
ytoanother
.Whatisconsi
der
edasgoodi nonecount
rymaybetabooin
anothercountry.
8. NewConcept–
Busi
nessethi
csisanewerconcept.I
tisstri
ctl
yfol
l
owedonl
yindev
elopedcount
ri
es.I
tnot
f
oll
owedpr
operl
yinpooranddev
elopi
ngcount
ries.
I
mpor
tance/Pur
posesofBusi
nessEt
hics-:
01. Busi
nessEt
hicsI
mpr
oveCust
omer
sConf
idence–
Busi nessethicsar
eneededt oi
mprovethecust
omer s’conf
idenceaboutthequali
ty,
quant
it
y,
pri
ceetc.,ofthepr oduct
s.Thecustomershavemoretrustandconf i
denceinthebusinessmenwho
fol
lowethicalrul
es.Theyfeelt
hatsuchbusi
nessmenwil
l notcheatt
hem.
02. Sur
viv
alofBusi
ness–
Busi
nessethicsaremandat or
yf ort
hesurvi
valofbusiness.Thebusinessmenwhodonot
fol
low i
twillhaveshort–t er
m success,buttheywi
llf
ailinthelongrun.Thi
si sbecausetheycan
cheatacustomeronlyonce.Aftert
hat,t
heconsumerwillnotbuygoodsfrom t
hatbusinessman.Thi
s
wil
l r
esul
tinfai
lur
eoft hebusi
ness.
03. Saf
eguar
dingConsumer
sRi
ght
s–
Theconsumerhasmanyr i
ght
ssuchasr ightt
oheal
thandsaf
ety
,ri
ghtt
obei
nfor
med,r
ight
t
ochoose,
rightt
obehear
d,r
ightt
oredress,
etc.
04. St
opBusi
nessMal
pract
ices–
Someunscr upulousbusi nessmendo busi nessmal practicesbyi ndulginginunfai
rtrade
practi
cesli
keblack–mar keti
ng,arti
fi
cialhi
ghprici
ng,adulter
ati
on, cheatingi
nwei ghtsandmeasures,
sell
ingofdupl
icateandhar mfulproducts,hoar
ding,etc.Thesebusi nessmal pr
acticesarehar
mfulto
theconsumers.Businesset hi
cshel ptostopthesebusinessmal practices.
05. Pr
otect
ingEmpl
oyeesandShar
ehol
der
s–
Busi
nessethi
csarerequir
edtoprot
ecttheint
erestofemployees,shar
ehol
ders,compet
it
ors,
deal
ers,
suppl
ier
s,et
c.Itpr
otect
sthem f
rom expl
oit
ati
onthroughunfai
rtr
adepracti
ces.
06. Dev
elopsGoodRel
ati
ons–
Busi
nessethicsarei
mpor t
anttodevel
opgoodandf r
iendl
yrel
ati
onsbetweenbusinessand
soci
ety
.Thiswillr
esultinaregul
arsupplyofgoodquali
tygoodsandser vi
cesatlow pr
icestothe
soci
ety
.Itwi
ll
alsoresulti
npr
ofit
sforthebusi
nesst
herebyresult
ingi
ngrowthofeconomy.
07. I
tCr
eat
esGoodI
mage–
Busi
nessethi
cscreat
eagoodimageforthebusinessandbusinessmen.I
fthebusi
nessmen
f
oll
owallethi
calr
ules,t
hentheywil
lbef
ull
yacceptedandnotcr i
ti
ci
zedbyt hesoci
ety
.Thesociet
y
wi
llal
wayssuppor
tthosebusi
nessmenwhofol
lowthisnecessar
ycodeofconduct.

Busi
nessEt
hics 7
SURESHAKS, SKDEC
08. Smoot
hFunct
ioni
ng–
I
fthebusi
nessfoll
owsallt
hebusi nessethics,
thentheemployees,
sharehol
ders,consumer
s,
dealersandsuppl i
erswil
lallbehappy.Sot heywi l
lgiveful
lco-
operati
ontothebusiness.Thiswil
l
resulti
nsmoot hfuncti
oningofthebusiness.So,thebusinesswil
lgrow,expandanddi v
ersif
yeasi
ly
andqui ckl
y.I
twill
havemor esal
esandmor eprof
its.
09. ConsumerMov
ement–
Businessethicsaregai ni
ngimpor tancebecauseoft hegrowt hoftheconsumermov ement.
Today ,t
heconsumer sar eawar eoft heirr
ights.Nowt heyaremoreor ganizedandhencecannotbe
cheatedeasily.Theytakeactionsagai nstt
hosebusi nessmenwhoi ndulgeinbadbusinesspracti
ces.
Theyboy cottpoorqual i
ty,harmful,high–pr icedandcount er
fei
t( dupli
cate)goods.Ther
efore,t
he
onlywayt osurvivei
nbusinessi stobehonestandf air
.
10. ConsumerSat
isf
act
ion–
Today
,theconsumeristhekingofthemar ket.Anybusinesssi
mpl ycannotsurvi
vewit
hout
theconsumers.Theref
ore,t
hemai naim orobjecti
veofbusi nessisconsumersat i
sfact
ion.I
fthe
consumeri snotsat
isf
ied,t
hentherewillbenosal esandt husnotprofi
tst oo.Consumerwillbe
sati
sfi
edonlyift
hebusi
nessfol
lowsallt
hebusinessethicsandhencearehighl
yneeded.
11. I
mpor
tanceofLabour–
Labour
,i.e.
,employeesorwor kersplayav erycruci
alrolei
nt hesuccessofabusiness.
Therefore,
busi
nessmustusebusi nessethicswhil
edeali
ngwithemployees.Thebusi
nessmustgiv
e
them properwagesandsalari
esandprovidethem wit
hbett
erworkingcondi
ti
ons.
Ther
emustbegoodr elat
ionsbet
weenempl
oyerandempl
oyees.Theempl
oyeesmustal
so
begi
venproperwel
far
efaci
l
iti
es.
12. Heal
thyCompet
it
ion–
Thebusinessmustusebusinessethi
cswhil
edealingwi
ththecompeti
tor
s.Theymusthav e
heal
thycompetit
ionwit
hthecompetit
ors.Theymustnotdocut–t hr
oatcompeti
ti
on.Si
milar
ly,t
hey
mustgiveequaloppor
tuni
ti
estosmall–scalebusi
ness.Theymustavoi
dmonopoly.Thi
sisbecause
amonopolyisharmfult
otheconsumers.
Fact
orsI
nfl
uenci
ngBusi
nessEt
hics–
01. Per
sonal
CodeofBehav
iour–
Codeofet
hicsr
eferstoawr it
tensetofguidel
inesi
ssuedbyanorgani
sat
iontoi
tsworker
s
andmanagementtohelpthem conductthei
ract
ionsinaccor
dancewi
thi
tspri
maryval
uesandet
hical
standar
ds.
Et
hicalcodesarestatementofthenormsandbel
i
efsofanorgani
sati
on.Thesenor
msand
bel
iefsaregener al
lyproposed,di
scussedanddefi
nedbyseni
orexecuti
vesinthefir
m andt
hen
publi
shedanddi st
ri
butedtoallt
hemember s.
02. Company
’sPol
icy–
Et
hicsstart
satt het
op,wit
hsmallandbi gcompani
es.I fowner
sandexecuti
vesarenot
percei
vedastrustwort
hyandarel
owinmoral
s,employ
eeswil
lfol
lowsuitandwi
l
llacket
hicst
oo.Any
ethi
cspoli
cyshouldincl
udeowner
sandexecut
ivesori
twil
lbeuseless.
Busi
nesset hi
csi
nvol
v eseveryoneinacompanyandisawor t
hwhil
eendeav or
.Ifacustomer
i
sscammedonce,hewi l
lnotgobackt othatf
ir
m.Withoutet
hics,abusinessisnotli
kelytosurvi
ve
l
ong.Acompany’scodeofethicsgiv
esempl oy
eesgui
danceonbusi nessmatters,i
ncl
udingthoseof
t
heboar
dofdirector
sandexecutiv
eof f
icer
s.

Busi
nessEt
hics 8
SURESHAKS, SKDEC
03. Et
hicalSt
andar
dsI
mposedonManager
s–
Ethi
calstandardsarethest
andardsoft heet hicalenvi
ronmentt
hatareacceptabl
etomost
peopl
e.General
lyrefer
redtoasmorals,et
hicalstandardsar ewhatthemajor
it
yacceptsasgoodand
thewaytheybehavewi t
houti
mposedr ul
esandr egulat
ions.
04. Et
hicalCl
imat
eoft
heCount
ry–
Anyacti
ononclimatechangeconfr
ontsseriouset
hicali
ssuesoff
air
nessandr
esponsi
bil
i
ty
acr
ossi
ndi
vi
dual
s,nat
ions,
generat
ionsandtherestofnat
ure.
Cli
matechangei soneoft hemostchal
l
engingissuesfacingthewor
ldtoday
.Herewe
i
ll
ustr
atehowethicalanal
ysi
scanhelpust
ounder
standboththenatureoft
hecl
imatepr
obl
em and
const
rai
ntsonpossibl
esolut
ions.
05. Unheal
thyCompet
it
ion–
Unet
hicalcompetit
ionmeanst heunethi
calbusinesspract
icestomeetthecompeti
ti
on.The
r
ightki
ndof“freemarket”competi
ti
oni sgood;t
hewr ongkindcanki l
lyou.Thet
eam wi
l
lbegint
otry
t
oundercutt
heirpeerbecausetheywil
lseethem aspersonalcompetiti
on.
06. Abnor
malPr
ofi
tMot
ive–
I
tisgeneral
l
yassumedthatbusi
nessispri
mari
l
ymot i
vat
edbythedesi
retomakeprof
it
.
Howev er
,thedesi
retomakepr
ofi
tmayt emptbusi
nessl
eader
stoacti
nwaysthatar
eregar
dedas
unet
hical
.
07. Pol
it
ical
Int
erf
erence–
I
nsurancecompaniesar eregul
atedbybot hstatesandt hefeder
algovernment.Thismeans
that
,inst
eadoft herebeingonev astnati
onwidemar ket,whereinnumerablei
nsurancecompanies
competewi t
heachot herfr
om coastt ocoast,thereare50f r
agmentedmar ket
swithdiff
erentr
ules.
Thataddstot hecost
sandr educesthecompet i
tioninagivenstat
e.
08. Pol
it
ical
Uncer
tai
nty–
Pol
it
icaluncer
tai
ntyi
sanoutcomethati
sdriv
enbypolit
icswher
etheendresul
tisknown.It
i
sal
soastat
eofdoubtaboutthef
utureorwhati
stheri
ghtt
hingtodoint
heeyesoftheel
ect
orate.
09. Cor
rupt
ion–
Corpor
ateexecut
ivesandbusinessownersneedtoreal
i
zethatther
ecanbenocompr
omi
se
wheni
tcomestoethi
csandt hatt
her
ear enoeasyshort
cut
stosuccess.
Corr
upt
ioni
nevi
tabl
yleadstoadimini
shedbusi
nesscl
i
mat
ewhent
hepubl
i
ctr
usti
sputat
r
isk,
accordi
ngt
oStanf
ordGraduat
eSchoolofBusi
ness.
Corr
upti
oncantakemanyfor
mst hatcanincl
udegr
aft
,bri
ber
y,embezzlementandextor
ti
on.
I
tsexist
encereducesbusi
nesscr
edi
bil
i
tyandpr ofi
tswhenprof
essi
onalmisusethei
rposit
ionsfor
per
sonalgai
n.
10. LackofEducat
ion–
Lackofeducationisanotherinf
luenci
ngfactorofbusi
nessethics.Thel
ackofeducat
ion
cannothelptounder
standtheconceptanditsimpor
tanceofbusi
nesset
hics.

Busi
nessEt
hics 9
SURESHAKS, SKDEC
Ar
gument
sForEt
hicsi
nBusi
ness-:
1) Ethi
csshouldgov er
nal lvol
untar
yhumanact i
vi
ties.Likewi
seethi
csshoul
dal
so
governbusi
nessoperat
ion,
becausebusi
nessi
sav olunt
aryhumanacti
vi
ty.
2) Anyhumanact i
vi
tycannotexistunl
esspeopleandthesurr
oundingsoci
etyadhereto
minimalstandar
ds ofethics.Business as a co-
oper
ati
ve acti
vi
tyneeds ethical
behavi
our
.
3) A mini
maladher
encet
oet
hicsi
srequi
redont
hepar
toft
hosewhoi
nvol
vedi
n
busi
ness.
4) Al
lbusi
nessesneedast
abl
esoci
etywher
esoci
etalmember
spr
act
icet
hemi
nimal
st
andar
dsofethi
cs.
5) Asoci
etywher
ely
ing,
thef
t,cheat
ingbecomer
ampantbusi
nessact
ivi
ti
esbr
eakdown.
6) Sever
alstudies havefound a posi
ti
ver el
ati
onship bet
ween soci
alr
esponsi
ble
behavi
ourandprofi
tabi
l
ity
,somestudi
esfoundnorelati
onshi
p.
7) Thoughbybei ngunethi
calotherpar
tysometimesbecomesgai ner.Butunethi
cal
behavi
ourunderminesthelong– term harmoni
ousrelat
ionshi
pswi t
hcustomers,
employees,and communit
ymember s upon whom busi
ness success ul
ti
mately
depends.
8) Businessbecomesshor
tsi
ght
edwhent
heyf
ailt
oimpl
ementet
hicalv
aluesi
nthe
organisat
ion.
Ar
gument
sAgai
nstEt
hicsi
nBusi
ness-:
Ar
gument–1;
Prof
iti
sthemai
nmot
iveoft
heBusi
nessi
nPer
fect
lyFr
eeMar
ket–
Theyar
guethatt
hepursui
tofprof
iti
nperf
ectl
ycompet i
ti
vefr
eemar ketwil
l
,byitsel
f,ensure
thatthemembersofasoci et
yareservedinthemostsoci al
lybenefi
ci
alway s.Ifanybusi ness
engagesi
nunet
hical
acti
vi
ti
es,t
hensuchbusi
nesswil
lnotsur
viveint
helongrun.
Count
erAr
gument
s–
Notal
lmar ketsareper
fect
lyf
ree.Ther
ear
esev
eralway
sofi
ncr
easi
ngpr
ofi
tst
hatwi
l
l
act
ual
l
yharm soci
ety.Suchas–
 Unconst
rai
nedpol
l
uti
on
 Decept
iveAdv
ert
isi
ng
 Pr
icef
ixi
ng
Ar
gument–2;
Loy
alAgent
’sAr
gument–
Manager
sareempl oyeesoftheor
gani
sat
ion,t
heyarecal
l
edagent
softheemploy
ers.They
areobli
gatedtoserv
et hei
rempl oy
ers–astheemployerwant
stobeserv
edinwhatev
erway swil
l
advancetheemploy
er’ssel
finter
est.
Si
nce,empl
oyees(l
oyalagents)ar
eobl
i
gat
edt
oobeyt
hei
rempl
oyer
,andt
henwhati
sthe
needt
ointr
oduceet
hicsi
nthebusiness.
Ar
gument–3;
Busi
nessEt
hicsi
sessent
ial
lyJustObey
ingt
heLaw–
Obey
ingt
helaw i
ssuff
ici
entforbusi
nessesandthatbusi
nessethi
csisnot
hingmorethan
obey
ingthel
aw.I
fabusi
nessi
ssimplyobeyi
ngthelaw,t
henwhyshouldet
hicsbei
mplement
ed.
Basi
csofBusi
nessEt
hics-:
1. Et
hicsi
nMar
ket
ing–
Market
ingethi
csaddressesprinci
plesandstandar
dsthatdef
ineacceptabl
econducti
nthe
marketpl
ace.Thisisthebasicpri
nciplesandv al
uesthatgover
nthebusinesspract
icesoft
hose
engagedi
npromotingproduct
sorserv
est oconsumers.

Busi
nessEt
hics 10
SURESHAKS, SKDEC

Busi
nessEt
hics 11
SURESHAKS, SKDEC
2. Et
hicsi
nFul
fi
ll
ment–
Ful
fil
l
menti saboutobeyi
ngandadheri
ngt
or ul
esandabil
it
y.Themot i
vat
ionf
orbei
ng
complai
ntcouldbetodot heri
ghtthi
ngoutoft
hef
earofbei
ngcaughtr
athert
hanadesir
etobe
abi
dingbythelaw.
3. Et
hicsi
nFi
nance–
Financeisthebackboneofbusi
ness;nobusinesscanrunwithoutf
inance.Theethi
calissues
ar
einf i
nancet hatcompaniesandemployeesar econfront
edwithinaccountingwindow dressing,
misl
eadi
ngf i
nancialanal
ysi
sandrel
atedpart
ytransact
ionsnotatar
m’ sl
ength.
4. Et
hicsi
nHumanResour
ces–
HumanResourceManagement( HRM)play
sadeci si
veroleinintr
oducingandi mplement
ing
ethi
cs.Ethi
csshouldbeapiv
otalissuef orHRspeci
ali
sts.Theet
hicsorhumanr esourcemanagement
coversthoseethi
cali
ssuesari
singar oundtheemployer–empl oyeerelat
ionship,suchastheri
ghts
anddutiesowedbetweenemploy erandempl oy
ee.
5. Et
hicsofPr
oduct
ion–
Et
hicsi
npr oducti
onisasubsetofbusi
nessethi
cthati
smeanttoensuret hatthepr
oduct
ion
functi
onoracti
vit
iesar enotdamagingtotheconsumerorthesoci
ety.Likeotherethicst
her
eisa
certai
ncodeofconductorst andar
dstobef ol
l
owed,howeverensur
ingthattheethicsarecompl
ied
withisoft
endif
fi
cult.
Cor
por
ateSoci
alResponsi
bil
it
y{CSR}-:
I
ntr
oduct
ion–
Corpor
ateSocialResponsibi
li
tyi
sabouthow compani esmanaget hebusinessprocesses
produceanov er
allposi
ti
veimpactonsociety.I
tisaform ofcorpor
ateself–regulati
onint
egrat
eda
businessmodel.CSRi salsoknownasCor porat
eResponsibi
li
ty,Corpor
ateCit
izenshi
p,Responsi
ble
Business,
Sustai
nableResponsibl
e,Busi
nessorCorpor
ateSocialPerf
ormance.
CSRdescr ibedt
hebodyofmanagementsy stemsandt ool
st hathel
pcompaniesmi
nimize
thei
renv
ironmentalimpact
,adher
etoi
nter
nati
onallaborstandar
ds,contri
but
etothei
rcommunit
ies
andmanaget owardsamoreeconomi
cal
lysust
ainabl
ewor l
d.
CSRhasbeendef i
nedmuchmoreinter
msofaphi l
anthropi
cmodel
.Companiesmakepr
ofi
ts,
unhi
nderedexceptbyful
fi
ll
i
ngthei
rdut
ytopaytaxes.Thentheydonat
eacert
ainshareoft
heprof
it
s
tochar
it
ablecauses.
CSRisthedeci
sion–maki ngandimplementati
onpr ocessthatgui
desal
lcompanyact i
vit
ies
i
nt hepr
otect
ionandpromot i
onofi nter
nati
onalhumanr ights,l
abourandenvir
onmentalstandards
andcompli
ancewit
hlegalrequi
rementswi t
hini
tsoperat
ionsandi nitsgoal
s.Aproper
lyi
mplement ed
CSRconceptcanbr
ingalongav ar
ietyofcompeti
ti
veadv antages,suchas–
 Enhancedaccesst
ocapi
tal
andmar
ket
s.
 I
ncr
easedsal
esandpr
ofi
ts.
 Oper
ati
onal
costsav
ings.
 I
mpr
ovedpr
oduct
ivi
tyandqual
i
ty,
 Ef
fi
cienthumanr
esour
cebase.
 I
mpr
ovedbr
andi
mageandr
eput
ati
on.
 Enhancedcust
omerl
oyal
ty.
 Bet
terdeci
sionmaki
ngand
 Ri
skManagementPr
ocess.
Meani
ngofCSR-:
CSRr
efer
stot
het
houghtwher
ebycompani
esmakeadeci
si
onv
olunt
ari
l
ytodonat
etoa

Busi
nessEt
hics 12
SURESHAKS, SKDEC
bet
tersoci
etyandacl
eanerenv
ironment
.
UnderCSR companiesincorpor
atesoci
aland env
ironmentalconcer
nsint hei
rbusi
ness
oper
ati
onsandint
heiri
nter
acti
onwiththei
rst
akehol
der
sonachar i
table/vol
unt
arybasi
s.
Themai nfuncti
onofanent erprisei
stocreat
eval
uethroughpr
oduci
nggoodsandser
vices
t
hatsocietydemands,therebygener
atingprofi
tsf
orit
sownersandsharehol
der
saswellaswel
fare
f
orsoci
et y
,part
icul
arl
ythroughanongoi ngpr
ocessofj
obcreat
ion.
CSRcanbeexpl
ainedas;
 Cor
por
ate - meansor
gani
zedbusi
ness
 Soci
al - meansev
ery
thi
ngdeal
i
ngwi
tht
hepeopl
e.
 Responsi
bil
i
ty - meanst
heaccount
abi
l
itybet
weent
het
wo.
CSRmeansopenandt r
anspar
entbusi
nesspr act
icet
hatar
ebasedonet
hicalv
aluesand
r
espectforempl
oyees,
communi
ti
esandtheenv
ironment.
 Empl
oyees
Shar
eHolders(
who
Busi
ness Runf
orBenef
it
Cor
por
ati
ons Ar
epr
imar
il
y haveResponsi
bil
it
ies  Cust
omer
s
Or
gani
sat
ions of to)
Def
ini
ti
onsofCSR-:  Suppl
ier
s
Accor
dingt
oICAI
“CSRisachi
evingcommer ci
alsuccessi
nway
sthathonour
,et
hicalv
alues,r
espectpeopl
e,
communi
ti
esandthenatur
alenv
ironment.
”
Accor
dingt
otheUni
tedNat
ionsI
ndust
ri
alDevel
opmentOr
gani
sat
ion{
UNI
DO}–
“CSR isamanagementconceptwher ebycompani
esint
egratesocialandenv
ironment
al
concer
nsinthei
rbusi
nessoper
ati
onsandi
nter
actionswi
tht
hest
akeholder
s.”
Benef
it
sofCor
por
ateSoci
alResponsi
bil
it
y-:
01. TheI
ronLawofResponsi
bil
it
y–
Theinsti
tuti
onofbusinessexi
stsonlybecausei
tper
formsinvaluabl
eserv
icesf
orsociet
y.
Soci
etygi
versbusinessi
tsl
icenset
oexistandthi
scanbeamendedorrevokedatanyti
meifi
tfai
l
sto
l
iveuptosociet
y’
sexpectat
ions.
Theref
ore,
ifabusi
nessintendst
oret
ainit
sexist
ingsoci
alr
oleandpower
,itmustr
espondt
o
soci
ety
’sneedsconst
ruct
ivel
y.Thi
sisknownastheIr
onLawofResponsibi
li
ty.
02. Achi
evementofLongTer
m Obj
ect
ives–
Busi
nesseshavebeendelegat
edeconomicpowerandhav eaccesst
opr
oduct
iveresour
ces
ofacommuni t
y.Theyareobli
gedt ousethoseresourcesforthecommongoodofsocietywhich
del
egat
edthese’t
othem t
ogeneratemorewealt
hforit
sbetterment
.
03. EnhancedBr
andI
mageandReput
ati
on–
Customers are drawn to br
ands and companies with good reput
ati
ons.A company
consider
edsoci al
lyr
esponsibl
ecanbenefi
tbothfr
om itsenhancedreputat
ionwit
hthepubli
caswell
asitsreputati
onwi t
hthebusinesscommunity,i
ncreasi
ngacompany ’
sabili
tyt
oattr
actcapit
aland
tr
adingpartners.
04. ChecksGov
ernmentRegul
ati
on/Cont
rol
s–
Regulati
onandcont rolarecostl
ytobusiness,bot hi nter
msofener gy/andmoneyand
rest
ricti
tsfl
exibil
i
tyofdeci
si on–maki ngasfai
lur
eofbusi nessmentoassumesocialr
esponsi
bili
ti
es
i
nv i
tesgovernmenttointer
v eneandr egul
ateorcontroltheiract
ivi
ti
es.Busi
nessmenhavelear
ntthat
once a gover nmentcontroli s est
abli
shed,i
ti s seldom r emoved even t
hough t
he warranti
ng

Busi
nessEt
hics 13
SURESHAKS, SKDEC
condi
ti
onschange.
05. Hel
psMi
nimi
zeEcol
ogi
cal
Damage–
Theeff
luentsofmanybusinessesdamagethesurr
oundi
ngenvi
ronment.Bythei
rownsociall
y
r
esponsi
blebehav i
or,t
heycanpreventgovernmenti
nter
vent
ionift
heyareproacti
veinrecogni
zing
t
hei
recologi
calresponsi
bil
i
tyt
owardssociety
.
06. I
mpr
ovedFi
nanci
alPer
for
mance–
Businessandinvest
mentcommunit
ieshavelongdebat
edwhethert
her
eisarealconnect
ion
bet
weensocial
lyr
esponsi
blebusi
nesspr
act
icesandposi
ti
vefi
nanci
alper
for
mance.
07. ReducedOper
ati
ngCost
s–
SomeCSRi ni
ti
ati
vescanreduceoper
ati
ngcost
sdramati
call
y.Manyr
ecy
cli
ngi
nit
iat
ivescut
wast
e–disposal
cost
sandgenerat
eincomebysell
i
ngrecy
cledmater
ial
s.
08. I
ncr
easedSal
esandCust
omerLoy
alt
y–
A numberofstudieshavesuggest
edal argeandgr owi
ngmar ketfortheproductsand
serv
icesofcompaniesperceiv
edtobesoci al
l
yr esponsi
ble.Whil
ebusinessesmustf i
rstsat
isf
y
customer
s’keybuy
ingcr
it
eria,
suchaspr
ice,
quali
ty,avai
l
abil
ity
,saf
etyandconveni
ence.
09. I
ncr
easedPr
oduct
ivi
tyandQual
it
yofWor
kLi
fe–
Ef
for
tstoimprov
eworkingcondi
tions,l
essenenvi
ronmentali
mpactsorincreaseemploy
ee
i
nvol
vementindeci
sion–makingoftenleadt oincr
easedproduct
ivi
tyandreducederrorr
ateina
company.
10. I
ncr
easedAbi
li
tyt
oat
tractandr
etai
nempl
oyees–
Companiesper
ceiv
edtohavestr
ongCSRcommi tment
softenfinditeasi
ertor ecr
uitand
r
etai
nempl
oyees,r
esul
ti
nginar
educt
ioni
ntur
nov
erandassoci
atedr
ecrui
tmentandtrai
ningcosts.
Ar
gument
sinFav
ourofCSRofBusi
ness-:
01. Businessi
sacr
eat
ionofsoci
etyandt
her
efor
eisshoul
drespondt
othedemandsoft
he
soci
ety–
Businessmanagersar
eobligedtouseit
sresour
cesforthecommongoodofsoci et
ybecause
thebusi
nessusesresour
ceswhichbelongtothesoci
ety
.Iti
stheref
orenecessar
ythatev
erybusi
ness
enter
pri
seshouldf
ulfi
l
lit
sobli
gati
onstosociet
y.
02. Thesel
f–i
nter
estofbusi
nessi
sbestser
vedbymeet
ingt
heaspi
rat
ionsofsoci
ety–
Thelong–term sel
finter
estofthebusi
nessarebestser
v edwhenbusinessassumessoci
al
responsi
bil
i
ties.Peopl
e who hav e good envi
ronment,educat
ion and opport
unit
y make bett
er
employeesandcustomersforthebusi
ness.
03. ToI
mpr
ovet
hepubl
ici
mageofbusi
ness–
The busi
nesswi l
lret
aint
he needed cr
edi
bil
i
tywiththe publi
cifitperfor
msi tssocial
obl
i
gat
ions.Goodrelat
ionswit
hwor
ker
s,consumersandsuppl
ier
swill
leadtosuccessofbusi
ness.
04. I
tist
hemor
alt
hingt
odo–
Thesoci
alr
esponsibi
l
iti
esofbusi
nessmanager smustbepr opor
tionat
etothei
rsoci
alpower
.
I
fthebusi
nessmanagersdonotassumesoci al
responsi
bil
it
y,thei
rsoci
alpowerwil
lbetakenawayby
t
hesociet
ythr
oughgovernmentcontr
olandregulat
ionsandothermeasures.

Busi
nessEt
hics 14
SURESHAKS, SKDEC
Ar
gument
sagai
nstCSRofBusi
ness-:
01. Responsi
bil
it
yofGov
ernment–
Welfar
eschemesar ethesol
eresponsibi
l
ityofthegov
ernment.Busi
nessshoul
dnothaveany
rel
ati
onshi
pwithwelf
areschemes.Itisforthegov er
nmenttoadoptschemesandmeasuresforthe
upl
ift
mentoftheweakersecti
onsofthesoci
ety.
02. Conf
li
cti
ngconsi
der
ati
onsofpr
ivat
emar
ketmechani
sm andsoci
alr
esponsi
bil
it
y–
Pri
vat
e mar ketmechani
sm and soci
alresponsi
bil
i
ties ar
e opposi
tet o each ot
herand
t
her
efor
eabusinessmanwil
lhavetobegui
dedbyanyoneoft hetwoconsider
ati
ons.
03. Di
sregar
dofMar
ketMechani
sm –
Marketmechani sm i
st heappropri
atewayt
oal
locat
escar
ceresour
cestoal
ter
nati
veuse.The
doct
ri
neofsocialresponsibi
l
ityint
erfereswitht
hemar
ketmechani
sm andresul
tsi
naninappr
opri
ate
waytoal
locatescarceresources.
04. Ar
bit
rar
yPowert
oBusi
nessmen–
Busi
nessmenwil
lgetar
bit
rar
ypowersint
hematterofal
l
ocationofresour
cesi
nthewel
far
e
ofsoci
ety
.Theyshoul
dhavenori
ghtt
oint
erf
erewi
thgov
ernmentresponsi
bil
i
ty.
CSRI
ssuesofManagement-:
1. I
mpr
ovedCust
omerAt
tent
ion–
Ther
ei sevidencet
hattheethi
calconductofcompaniesexer t
sagr owinginf
luenceonthe
pur
chasi
ngdeci si
onsofcustomers.I
nar ecentsurv
ey,moret hanonei nfi
v econsumersrepor
ted
hav
ingeit
herrewardedorpuni
shedcompaniesbasedonthei
rper cei
vedsoci
alperfor
mance.
2. Ri
singI
nvest
orSt
ress–
I
nvest
ors ar
e changing the wayt heyassess company
’s per
for
mance and ar
e maki
ng
deci
sionsbasedoncrit
eri
athatincludeet
hicalconcer
ns.
3. Thedecr
easi
ngr
esponsi
bil
it
yofgov
ernment–
Inthepast,gov er
nmentshav ereli
edonl egi
slati
onandr egulat
iont o del
iv
ersocialand
envi
ronmentalobj
ecti
vesint hebusi
nesssector.Shri
nkinggover
nmentr esources,coupl
edwi tha
di
str
ustofregul
ati
ons,hasledtot
heexplorat
ionofvol
untaryandnon–r egulat
oryini
ti
ati
vesi
nstead.
4. Demandsf
orgr
eat
erdi
scl
osur
e–
Thereisagr owi
ngdemandf r
om st
akeholder
s,i
ncl
udi
ngcust
omer
s,suppl
i
ers,empl
oyees,
communi
ti
es,i
nvest
orsandact
ivi
stor
gani
zat
ions.
5. Aggr
essi
veLabourMar
ket
s–
Empl
oyees ar
ei ncr
easi
ngl
yl ooki
ng beyond paychecks and benefi
ts and seeking our
empl
oyerswhosephil
osophi
esandoper at
ingpr
acti
cesmat chtheirownprinci
ples.Inordertohire
andr
etai
nski
ll
edemployees,
companiesarebei
ngforcedtoimprovedworki
ngcondi t
ions.
Cr
isi
sManagement–
Crisi
smanagementhasbeengai ni
ngmoreimport
ancenowaday
suponhappeni
ngofsome
recentev ent
sandt hebusinesscommunity,aswellascommuniti
esatl
arge,ar
ev ul
ner
abl
eto
disrupt
ionsthatcanbeext
remelycost
ly.
 Examplesofr ecentcri
sisthatresul
tedinlostl
i
ves,di
splacedf amil
iesandcommuni ti
es,
shutdown businesses and damaged economyarethe U.K’s Brexi
t,Nepalear
thquakes,
ter
rori
stat
tacks,etc.
,
 Otherseri
ousev ents,suchasfi
nancialfai
l
urefr
om poorbusi
nessmanagement,workpl
ace
vi
olence,fi
res,cybercr
ime,computervir
uses,pr
oducttamper
ingoruni
onstr
ikes,canalso
l
eadt osubstanti
aldamageandloss.
Acr
isi
scanoccurasar
esul
tofanunpr
edi
ctabl
eev
entorasanunf
oreseeabl
econsequence

Busi
nessEt
hics 15
SURESHAKS, SKDEC
ofsomeev entthathadbeenconsi deredapotent

ialr
isk.Ineit
hercase,crisi
salmosti nvari
abl
y
requi
resthatdecisi
onsbemakequi ckl
yt ol
imi
tdamaget otheorgani
sat
ion.Forthatreason,oneof
thefi
rstact
ionsincri
sismanagementplanni
ngi
stoident
ifyanindi
vi
dualt
oser v
eascr i
sismanager .
Meani
ngofCr
isi
sManagement–
Crisi
smanagementreferstotheappli
cati
onofstr
ategi
esconsi
der
edt
ohel
panor
gani
sat
ion
agr
eementwithasuddenandsigni
fi
cantnegat
iveevent
.
St
epsi
nthePl
anni
ngPr
ocess-:
St
ep–1: Est
abl
ishaPl
anni
ngTeam –
 Pr
ovi
debr
oadper
spect
iveont
hei
ssues.
 Est
abl
i
shaschedul
eandabudget
.
St
ep–2: Anal
yzeCapabi
li
ti
esandHazar
ds–
 Meetwi t
hout
sidegr
oups(
gov
ernment
alagenci
es,communi
tyor
gani
zat
ionsand
ut
il
it
ies)
 I
dent
if
yappl
i
cabl
efeder
al,
stat
eandl
ocal
regul
ati
ons.
 I
dent
if
yint
ernal
andext
ernal
resour
cesandcapabi
l
iti
es.
 Est
imat
epr
obabi
l
ityandpot
ent
ial
impact
.
St
ep–3: Dev
elopt
hePl
an–
 Dev
elopemer
gencyr
esponsepr
ocedur
es.
 I
dent
if
ychal
l
engesandpr
ior
it
izeact
ivi
ti
es.
 Est
abl
i
shat
rai
ningschedul
e.
St
ep–4: I
mpl
ement
ati
ont
hePl
an–
 I
ntegr
atet
hepl
ani
ntocompanyoper
ati
ons.

Busi
nessEt
hics 16
SURESHAKS, SKDEC
Uni
t–4: Rol
eofCor
por
ateCul
tur
einBusi
ness
Meani
ngofCor
por
ateCul
tur
e–
Cor
por
ate Cul
tur
erefer
st ot he shar
ed v
alues,att
it
udes,st
andar
ds,and bel
i
efst
hat
char
act
eri
zemembersofanor
ganisat
ionanddefi
nei
tsnatur
e.
Corporat
eCultur
eisrootedi
nanorgani
zat
ion’
sgoal
s,st
rat
egi
es,st
ruct
ure,andappr
oaches
t
olabour,
customers,
invest
ors,
andthegr
eat
ercommunity
.
Corpor
ateCultureisalso r
efl
ect
ed int
heamountofst
ressplaced on v
ari
ousdefi
ning
el
ementssuchashierarchy
,pr
ocess,moderni
sm,
col
l
abor
ati
on,
compet
it
ion,communityi
nvol
vement
andsoci
alengagement.
Def
ini
ti
onofCor
por
ateCul
tur
e–
Accor
dingt
oJ.
C.Spender
,“Cor
por
ateCul
tur
easabel
i
efsy
stem shar
edbyanor
gani
zat
ion’
s
member
s.”
Funct
ionsofCor
por
ateCul
tur
e-:
01. I
tPr
omot
esCodeofConduct–
Astr
ongcult
ureint
heorgani
sati
onexpl
ici
tl
ycommunicat
esaccept
edmodesofbehav
iour
whichmakest hepeopl
econsci
ous.Promot
ionofthecul
tur
eofquali
tycanhel
ptoachi
evegood
businessr
esul
ts.
02. I
tFaci
li
tat
esRecogni
ti
on–
Ev
eryor
gani
sat
ion i
sr ecogni
zed byits cul
tur
e.Itknown factwhenev erwe name an
or
gani
sati
onwei
mmediatel
yrememberthecult
ureassoci
atedwi
ththatorgani
sat
ion.
03. I
tPr
ovi
desSel
fSat
isf
act
ion–
Organi
sati
onalcult
ureenablesempl
oyeest
o besat
isf
ied i
nter
nal
l
y,t
heygetani
nter
nal
sat
isf
act
ionwithanesteemedcul
ture.
04. I
tPr
ovi
desOppor
tuni
tyt
osett
heSt
andar
dsofPer
for
mance–
Itprovi
desemploy
eest ogetanopport
unit
ytosetthestandar
dsofper
for
manceandtheytr
y
toachi
evet hest
andar
ds.Itbecomesaselfcontr
olmechanism whi
chhel
pstheorgani
sat
iont
ogrow
andfl
ourish.
05. I
tGui
desandCont
rol
stheEmpl
oyees–
I
tact
sasamot
ivat
ort
hatgui
desandcont
rol
stheempl
oyees.
06. I
tDi
rect
sEmpl
oyeeBehav
iourt
owar
dsGoal
Achi
evement–
Asoundcul
tur
edi
rect
stheat
ti
tudeandbehav
iouroft
heempl
oyeest
owar
dst
heachi
evement
ofgoal
s.
07. I
tmakespeopl
edev
elopmentor
ient
ed–
I
tmakesi mpli
citrul
es,whi
chmakespeopl
edevel
opmentori
ent
ed.Theserul
esaremore
ef
fecti
vet hanexpl
i
citrul
es.Confor
mit
yofimpl
i
citr
ulesmakestheempl
oyeesdevel
opedandsel
f
di
scipl
ined.
08. I
tdev
elopsaposi
ti
veat
ti
tude–
Cul
tur
eleadst
odev
elopagoodbehav
iourandgoodbehav
iourmakesgoodcul
tur
e.

Busi
nessEt
hics 17
SURESHAKS, SKDEC
I
mpactofCor
por
ateCul
tur
e-:
Corpor
ateCulturerepresentstheprofessi
onalval
uesacompanyadopt sthatdictat
ehow it
i
nteractswi themployees,vendors,part
ner
sandcl ient
s.Themi ssi
onstr
ategyofanor gani
sati
onisa
summar yofhowt hecompanyper ceiv
esit
sr oleandthebeli
efsitusest
oachi ev
eitsgoals.Because
thecor poratecult
ureisadr i
vingf or
ceinhow t hecompanydoesbusi ness,i
thasani mpacton
developingbusinessstrat
egy.
01. Ri
skI
mpactofCor
por
ateCul
tur
e–
Thecorpor
atecul
tur
edictat
eshowmuchr i
skanor gani
sat
ioni
swill
ingt
otakewhenitcomes
t
or esearchanddev el
opment,cl
i
entint
eract
ion,i
nvest
inginequipmentandanyotheract
ivi
tythat
i
nvolvesrisk.
I
fthecorpor
atecul
turei
sonethatpr
omotesenv
ironmentalr
esponsi
bil
i
ty,
thatwi
l
limpactt
he
r
iskst
hatthecompanywill
takewhendevel
opi
ngnewproducts.
02. Empl
oyeeRet
ent
ionI
mpact–
Whenthecompanydev el
opsapol i
cyofwit
hholdinginf
ormati
onfrom employeesthatcan
star
tto devel
op acultur
eofdi st
rustamong thestaf
f.Theabi li
tytoretai
nempl oyeescanbe
weakenedwhent hepromisesmadebyt hecompanyinr egar
dst ocompanygr owt
handempl oyee
opport
unit
yarecompromisedbyalackoftr
ust.
03. I
ncent
ivePayI
mpact–
I
ncenti
ve pay is somethi
ng thatempl oyers use toimprove producti
vi
ty and mai
ntai
n
employeemor al
e.Butincentiv
eprogramsneedt obemoni t
oredandadmi ni
steredcar
efull
ytoavoi
d
creat
ingacultur
eofexpect ati
on.I
fani ncent
ivepayprogram issetuptorewardempl oyeest
hatdo
notperf
orm,thenthatcreatesadangerouscult
ureprecedent
.
04. Focusamongt
heSt
aff–
Acorporat
ecult
urethateachemploy
eesubscr
ibestohel
pstocreatef
ocusamongthestaf
f.
Whenemployeesabidebythecompany’sbel
ief
sandvalues,
itgi
vesaunif
iedi
mpressi
ont
ov endor
s,
cl
i
entsandpartner
s.
Thecompanycant
hencreat
eabusinessstr
ategyknowingthatt
heenti
reorganisat
ionwi
l
l
appl
ythegui
del
inesi
nauni
for
m mannerandi
mprovethechancesthatast
rat
egywil
lsucceed.
05. Gr
eat
erEf
fi
ciency–
I
tallbegi
nswi l
ltheat
ti
tudeofyourempl
oyees.I
fyouhaveaheal
thycompanycul
tur
eitwi
l
l
hav
eaposi
tiv
eeffectonhoweffi
cient
lyy
ourempl
oyeesgetthei
rwor
kdone.
Theotherwaysi
nwhichtheorgani
sati
onmaybeabl etohel
pdri
veef
fi
ci
encyarebypr
ovi
ding
employ
eeswi t
hconsist
entandconci seinf
ormati
on,aswel lasmakingsur
et her
eisseamless
col
l
aborat
ionbetweenempl
oyees,par
tner
s,suppl
i
ers,andcust
omers.
06. Cohesi
veVi
sion–
I
tisi
mpor t
anttoaccurat
elycommuni cat
et heover
allvi
si
onandmi ssi
onofy ourorgani
sat
ion.
Makesur eyoukeepy ouremployeesinf
or medofchangest heor gani
sat
ionimplement sandaskf or
thei
rinputonhowt oimproveandgr owt hebusiness.I
twillbeimpossibletoachievethegoalsyou
havesetforyourcompanyifyouremployeesdon’tseeorunderstandthebiggerpi
cture.
Cr
ossCul
tur
e-:
Meani
ng–
CrossCult
uremeanst hei nt
eract
ionofpeopl efr
om diff
erentbackgr
oundi nthebusiness
worl
d.Crosscul
turei
sav i
talissueini nt
ernat
ionalbusi
ness,asthesuccessofinternat
ionalt
rade
dependsupont
hesmoothinter
actionofempl oy
eesf r
om di
ffer
entcult
uresandregi
ons.
Forexample,crosscult
urecanbeexper
iencedbyanempl oy
eewhoi stransf
erredt
oa
l
ocat
ioninanothercountr
y.Theempl
oyeemustl
earnthel
anguageandcul
tur
eofthosearoundhi
m,

Busi
nessEt
hics 18
SURESHAKS, SKDEC
andv
ice–v
ersa.
Cr
ossCul
tur
alI
ssuesi
nEt
hics-:
01. Cr
ossCul
tur
alI
ssuesi
nHRM –
Wi
tht
her apidincreasei
nt heglobali
zati
onofbusiness,workf
orcesar ebecomingincr
easi
ngly
div
erseandmul t
icult
ural.Managingglobalwor kfor
ceshasi ncr
easedpr essureonHumanResour ce
Managerstorecognizeandadaptt ocul t
uraldif
fer
ences,whichwheni gnoredcanr esul
tincross–
cult
uralmi
sunderstanding.HRM i sfacingi ncr
easeddiff
icul
tyinmanagi ngcr oss– bordercult
ure
rel
ati
onshi
ps.
02. Cr
ossCul
tur
alI
ssuesi
nMar
ket
ing–
Cross – cult
uralmar keti
ng’sisi nternat i
onalmar ket
ing on a per
sonallevel.I
tmeans
consi
deri
ngcultur
aldif
ferenceswhenpl anningmar ket
ingcampaignsandmedi a;r
eali
zingtheneed
forabalancebetweenlocali
zati
onandgl obalization;andmosti mport
antl
y,impl
ementingstrat
egi
es
thatr
espectdi
ff
erenceswhileseekingtounifybr andmessages.
03. Cr
ossCul
tur
alI
ssuesi
nInt
ernat
ional
Busi
nessandNegot
iat
ion–
Businessesallov
ertheworldtodayareextendi
ngthei
rfront
ier
sbey onddomesticmarkets.I
n
thi
sglobalbusinessenvi
ronment,crosscult
uralnegot
iati
onbecomesacommonf i
eldofresearch.
Thisi
spr i
maril
yduet othefactthatthenegotiat
ingparti
esareoft
enf r
om diff
erentcount
ries,wit
h
dif
fer
entcult
uralval
uesandbeli
efswhi cht
heyusuall
ybringwi
ththem tothenegoti
ati
ngtabl
e.

Busi
nessEt
hics 19
SURESHAKS, SKDEC
Uni
t–5: Cor
por
ateGov
ernance
Meani
ngofCor
por
ati
on–
Acor
por
ati
onisaform ofanorgani
sati
onwhereagroupofpeopl
ecancomet
oget
herand
sy
ner
giset
hei
rski
ll
s,t
imeandmoneyfortheprof
itornon–pr
ofi
tact
ivi
ti
es.
I
nI ndi
a,a corporati
on is gener
all
yrefer
red t o as a companyand i
s governed byt
he
CompaniesActof1956.Itstatesthatcompanyincludescompanyf or
medandregist
eredundert
he
Actoranexist
ingcompany ,i
.e.
,acompanyf or
medorr egi
ster
edunderanyoftheprevi
ouscompany
l
aws.
Meani
ngofGover
nance–
Thet
erm“gover
nance”meanscontr
oli.
e.,cont
rol
li
ngacompany,anorganisati
onetc.,ora
companyandcor
porat
egoverni
ngorcontr
oll
ingthecorporat
ebodi
esi
.e,
,ethi
cs,values,pr
incipl
es,
moral
s.
Meani
ngofCor
por
ateGover
nance–
Corpor
ateGover
nanceref
erst
othewayacor porati
onisgoverned.I
tist
hetechniqueby
whichcompani
esaredir
ect
edandmanaged.I
tmeanscarr
yingthebusi
nessaspert
hestakeholder
s’
desir
es.
Def
ini
ti
onsofCor
por
ateGover
nance–
Accor
dingtoShl
eif
erandVi shny; Cor
porat
egovernancedeal
swiththewaysi
nwhi
ch
suppl
i
ersoffi
nancet
ocor
porat
ionsassuret
hemselv
esofget
ti
ngar et
urnont
hei
rinv
est
ment
.
Accor
dingtoJ.Wolfensohn,Cor
por
ategov
ernancei
saboutpr
omot
ingcor
por
atef
air
ness,
t
ranspar
encyandaccount
abi
l
ity.
ScopeofCor
por
ateGover
nance–:
01. Val
uebasedcor
por
atecul
tur
e–
Val
uebasedcor por
atecul
turei sgoodpract
iceofcorpor
ategover
nance.Iti
sasetofbel i
efs,
ethics,pri
nci
pleswhichareinv
iol
able.Itcanbemot t
oi.e.
,Ashortphr
asewhichisuniqueandhelpsin
runningorganisat
ion,t
herecanbevisioni.e,
dream t
obef ul
fi
ll
ed,
missi
onandpur pose,obj
ect
ive,
goal,
target.
02. Hol
ist
icVi
ew–
Thisholi
sti
cvi
ewismor eorl
essgodl
y,rel
i
giousat
ti
tudewhi
chhelpsinrunningor
gani
sati
on.
I
tisnoteasiert
oadoptit
,itneedsspeci
alef
for
tsandonceadoptedi
tleadstodevelopi
ngqual
i
tiesof
nobi
l
ity
,tol
eranceandempat hy
.
03. Compl
iancewi
thl
aws–
Thosecompanieswhi
chreal
lyneedprogr
ess,havehi
ghet hi
calv
aluesandneedtolongrun
businesstheyabideandcomplywithlawsofSecur i
ti
esExchangeBoardofI ndi
a(SEBI
),Forei
gn
ExchangeRegulat
ionAct,
Competi
ti
onAct2002,CyberLawsandBankingLawsetc.,
04. Di
scl
osur
e,Tr
anspar
encyandAccount
abi
li
ty–
Discl
osur
e,transparencyand account
abil
i
tyareimpor
tantaspectf
orgood gover
nance.
Timelyandaccurat
ei nfor
mat i
onshouldbedi scl
osedonthematter
sl i
ket
hefi
nancialposi
ti
on,
perf
ormanceetc.
05. Cor
por
ateGov
ernanceandHumanResour
ceManagement–
Foranycorpor
atebody,theemployeesandstaf
farejustli
kefamil
y.Foracompanyt obe
perf
ecttherol
eofHRM becomesv eryvit
al,t
heybothar
edirect
lyl
inked.Ev
eryindi
vi
dualshoul
dbe
tr
eatedwit
hindi
vi
dualr
espect
,hisachi
evementsshoul
dberecogni
zed.

Busi
nessEt
hics 20
SURESHAKS, SKDEC
06. I
nnov
ati
on–
Ever
ycorpor
atebodyneedtot
akeriskofinnov
ati
oni
.e.
,innov
ati
oni
npr
oduct
s,i
nser
vices
andi
tpl
aysapi
votal
rol
eincor
porat
egover
nance.
07. Necessi
tyofJudi
cialRef
orm–
Ourjudi
cialsystem t houghhavingperf
ormedsalut
aryrol
ealltheseyear
s,cer t
ainlyare
becomingobsoleteandout datedovertheyear
s.Thedelayinjudi
ci
aryi
sduet oseveralinterest
s
i
nvolv
edi nit
.Butt henwi t
hchangi ngscenar
ioandfastgr
owingcompeti
ti
on,t
hejudi
ciaryneedst o
bri
ngreformsaccordingl
y.
08. Gl
obal
izat
ionhel
pingI
ndi
ancompani
est
obecomegl
obalgi
ant
sbasedongoodgov
ernance
–
I
ntoday’
sageofcompeti
ti
onandduetogl
obali
zat
ionoursever
alIndi
ancorpor
atebodi
esar
e
becomi
ngglobal
giant
swhichar
epossi
bleonl
yduetogoodcorpor
ategovernance.
09. Lessonsf
rom Cor
por
ateFai
lur
e–
Ev
eryst
oryhasamoral
t olear
nf r
om, ever
yfai
l
urehassuccesst
olearnfr
om inthesameway
,
cor
por
atebodyhavecer
tai
npol
icieswhichifgoesasafail
uret
heyneedtolear
nfrom i
t.
Composi
ti
onoft
heBoar
dofDi
rect
ors-:
Boar
dofdir
ector
sisabodyofel ect
edorappointedmemberswhoj oi
ntl
yov er
seethe
acti
vit
iesofacompany.TheBoar
dofdir
ector
sistheformall
inkbet
weenthesharehol
dersofan
organi
sati
onandmanager
sent
rust
edwi
thdaytodayf
unct
ioni
ngoftheor
gani
sat
ion.
TheGover
nmentofIndiahasrecent
lynot
if
iedCompani
esAct
,2013(
“CA 2013”
),whi
ch
r
epl
acest
heer
stwhi
leCompani
esAct,
1956(CA1956).
Keychangesi
ntr
oducedbyCompani
esAct–2013–
I
. Boar
dComposi
ti
on–
CA2013hasintr
oducedsi
gni
fi
cantchangesi
ntheboar
dofdi
rect
orsofacompany
.Thekey
changesi
ntr
oducedar
esetoutbel
ow;
01. NumberofDi
rect
or–
 Aoneper
soncompanyshal
lhav
eami
nimum of1(
one)di
rect
or.
 CA2013,howev
er,
speci
fi
cal
l
ypr
ovi
dest
hatacompanymayhav
eamaxi
mum of15(
fi
ft
een)
di
rect
ors.
 CA2013however
,permi
tsever
ycompanyt oappoi
ntdi
rectorsabovethepr
escr
ibedl
i
mitof
15(
fi
ft
een)byaut
hori
zi
ngsuchincr
easet
hroughaspeci
alresolut
ion.
02. Resi
dentDi
rect
or–
CA2013i ntr
oducestherequi
rementofappoi
nti
ngar esi
dentdi
rect
or,i.
e.,aper
sonwhohas
st
ayedinI ndiaforat otalper
iodofnotlessthan182( onehundredandei ghtytwo)day
sinthe
pr
eviouscalendaryear.
03. I
ndependentDi
rect
ors–
UnderCA2013,
thef
oll
owi
ngcompani
esar
erequi
redt
oappoi
nti
ndependentdi
rect
ors.
a) Publi
clist
edcompany– At
leastonet
hir
doft
heboar
dtobecompr
isedofi
ndependent
di
rector
s.
b) Cert
ainspecif
iedcompaniesthatmeett
hecr
it
eri
ali
stedbel
owar
erequi
redt
ohav
eat
least2
(t
wo)independentdi
rect
ors;
 Publi
ccompani
eswhi
chhav
epai
dupshar
ecapi
talofI
NR100,
000,
000(
Rupeesone
hundredmi
l
li
ononl
y)
 Publ
i
ccompani
eswhi
chhav
eat
urnov
erof1,
000,
000,
000(
Rupeesonebi
l
li
ononl
y);

Busi
nessEt
hics 21
SURESHAKS, SKDEC
and
 Publi
ccompani eswhichhave,i
ntheaggregat
e,outst
andi
ngloans.debent
uresand
deposi
tsexceedingI
NR500,000,
000(Rupeesfi
vehundredmil
l
iononly
)
c) Qual
if
icat
ionCr
it
eri
a–
 He/Sheshoul
dbeaper
sonofi
ntegr
it
y,r
elev
antexper
ti
seandexper
ience;
 He/Sheisnotorwasnotapromoterof,orr
elat
edtothepr
omot
erordi
rect
oroft
he
companyori
tshol
ding,
subsi
diar
yorassoci
atecompany;
 He /She has orhad no pecuniar

yr elat
ionshi
p witht he company,it
s hol
ding,
subsi
diar
yofassoci
atecompany,ortheirpromoters,ordirect
orsduri
ngthe2(two)
i
mmedi at
elypr
ecedi
ngfi
nanci
alyearsorduringthecurrentfi
nanci
alyear
.
 Aperson,noneofwhoser elati
veshav eorhadpecuniaryrelat
ionshiport r
ansaction
wi
ththecompany ,i
tholdi
ng,subsidiar
yorassoci
atecompany ,ortheirpromoters,or
di
rect
orsamount ingto2( t
wo)per centormoreofi t
sgr ossturnoverortotali
ncome
orINR 5,
000,000( rupeesfivemi ll
i
ononl y
),whicheverisl over
,dur i
ngt he2(t wo)
i
mmedi at
elyprecedingfi
nancialyearsordur
ingt
hecur rentf
inancialyear.
d) Dut
iesofI
ndependentDi
rect
ors–
 CA2013i ncl
udesagui det oprofessi
onalconductforindependentdir
ectors,whi
ch
cry
stall
i
zestheroleofindependentdir
ectorsbyprescri
bingfaci
li
tati
ver
oles,suchas
off
eri
ng independent judgment on i ssue of strat
egy,per for
mance and key
appoint
ments,andtaki
nganobj ecti
veviewofperf
ormanceev aluati
onoftheboard.
 Independentdi
rector
sar eaddit
ional
lyrequi
redtosat i
sfythemsel
vesontheintegri
ty
off i
nanci
alinf
ormation,tobalancet heconfl
i
ctinginter
estsoftheallst
akeholders
and,inpart
icul
ar,t
opr ot
ecttheright
softhemi nori
tysharehol
der
s
e) Li
abi
li
tyofI
ndependentDi
rect
ors–
 CA2013howev er,pr ovi

desthattheliabi
li
tyofindependentdi
rect
orswouldbeli
mited
to acts ofomi ssion orcommi ssi
on by a company whi ch occurr
ed wi
tht hei
r
knowledge,attri
but ablet hr
ough boar d processes,and witht hei
rconsentand
connivanceorwher et heyhavenotact eddil
i
gently.
04. Nomi
neeDi
rect
ors–
 CA2013st
atest
hatanomi
needi
rect
orcannotbeani
ndependentdi
rect
or.
 CA 2013def i
nesnomineedirect
orasadi r
ectornominat
edbyanyf i
nanci
ali
nsti
tut
ionin
pursuanceoftheprov
isi
onsofanyl aw f
ortheti
mebeinginforce,orofanyagr
eement,or
appointedbyGover
nmentoranyotherper
sontorepr
esenti
tsi
nterest
s.
05. WomanDi
rect
or–
 List
edcompani
esandcert
ainot
herpubl
i
ccompani
esshal
lber
equi
redt
oappoi
ntat
least1
(one)womandi
rect
oroni
tsboar
d.
 Compani
esi ncor
porat
edunderCA 2013shallber
equi
redt
ocompl
ywi
tht
hispr
ovi
sions
wit
hin6(
six)monthsfrom dat
eofi
ncor
por
ati
on.
Dut
iesofDi
rect
ors–
a) Toacti
naccor
dancewi
thcompany
’sar
ti
cl
es.
b) Toactingoodfai
thtopromotetheobj
ectsofthecompanyforbenefitofthemembersasa
whole,
andthebesti
nter
estofthecompany,i
tsemploy
ees,shar
eholders,communi
tyandfor
pr
otecti
onoft
heenvi
ronment.
c) Exer
cise duti
es wi
thr
easonabl
e car
e,ski
l
land di
l
igence,and exer
cise ofi
ndependent
j
udgement .

Busi
nessEt
hics 22
SURESHAKS, SKDEC
I
I. Commi
tt
eesoft
heBoar
d–
01. Audi
tCommi
tt
ee–
CA 2013howev er
,requi
restheboardofev eryl
i
stedcompanyandcert
ainotherpubl
ic
companiestoconsti
tutetheauditcommi
tteeconsi
sti
ngofamini
mum of03(t
hree)di
rect
ors,wi
th
thei
ndependentdi
rector
sformingamajor
it
y.
Theaudi
tcommi t
teehasbeenentrustedwitht hetaskofprovidi
ngr ecommendati
onsfor
appoint
mentandremunerati
onofaudi
tor
s,revi
ewofi ndependenceofaudit
ors,prov
idi
ngapprov
alof
rel
atedpart
ytr
ansact
ionsandscr
uti
nyoverotherf
inancialmechani
smsoft hecompany.
02. Nomi
nat
ionandRemuner
ati
onCommi
tt
ee–
Thecommi t
teehasthetaskofi
dent
ify
ingper
sonswhoarequali
fi
edtobecomedi
rect
orsand
provi
derecommendati
onstotheboardr
egardi
ngthei
rappoi
ntmentandremoval
,aswel
lascarr
yout
thei
rper
formanceeval
uat
ion.
03. St
akehol
der
sRel
ati
onshi
pCommi
tt
ee–
CA 2013 requi
resever ycompanyhav i
ng moret han1000 (onethousand)shar
eholder
s,
debent
urehol
der
s,depositholdersandanyothersecuri
tyholder
satanytimeduringafi
nanci
alyear
toconst
it
uteastakehol
dersrelati
onshi
pscommi t
teetoresolvet
hegri
evancesofsecur
it
yholdersof
thecompany.
04. Cor
por
ateSoci
alResponsi
bil
it
yCommi
tt
ee(
CSRCommi
tt
ee)–
CA2013however
,requi
rescer
tai
ncompaniestoconst
it
uteaCSRCommi t
tee,whi
chwoul
d
ber
esponsi
blet
odevi
se,r
ecommendandmonitorCSRini
ti
ati
vesofthecompany
.
I
II
. Boar
dMeet
ingandPr
ocesses–
a) Fi
rstboar
dmeet
ingofacompanyt
obehel
dwi
thi
n30(
thi
rt
y)day
sofi
ncor
por
ati
on.
b) Not
iceofmi
nimum 07(
seven)daysmustbegi
venf
oreachboar
dmeet
ing.Not
icef
orboar
d
meeti
ngsmaybegi
venbyelect
roni
cmeans.
c) CA2013hasper mi
t t
eddir
ect
orstopar
ti
cipat
einboardmeeti
ngsthroughvideoconf
er enci
ng
orot
heraudiovi
sualmeanswhicharecapabl
eofrecordi
ngandrecognizi
ngthepart
icipati
on
ofdi
rect
ors.Par
ti
cipati
onofdi
rect
orsbyaudiovi
sualmeanswouldalsobecountedt owards
quor
um.
d) Requir
ementforholdi
ngboar
dmeet i
ngever
yquar
terhasbeendi
scont
inued.Nowatleast4
(f
our)meet
ingshavetobeheldeachyear
,wit
hagapofnotmorethan120(onehundr
edand
twenty
)daysbetween02(t
wo)boardmeeti
ngs.
Cadbur
yCommi
tt
eeRepor
t-:
TheCadburyCommi tt
eewassetinMay1991byt heFi
nanci
alRepor
ti
ngCouncil(
FRC)oft he
LondonStockExchangeundertheChai
rmanshipofSi
rAdri
anCadbury
.Thecommi t
teepubl
ishedits
repor
tin December1992 known as “ The Commit
tee on t
he Fi
nanci
alAspects ofCorporate
Gover
nance.
”
Pur
pose/Obj
ect
ive–
Anovervi
ewtoovercomethehugeprobl
emsofscamsandf
ail
uresoccur
ri
ngi
nthecor
por
ate
sect
orworl
dwideint
helat
e1980’sandtheearl
y1990’
s.
TheCont
ent
sofCadbur
yCommi
tt
eeRepor
t–
Thecommi t
teepubli
sheditandrevi
ewedCorporat
eGover
nancewi t
hr ef
erencet
oCodeof
BestPr
acti
ces.Thecodeofbestpr
acti
ceshasbeendi
videdi
ntof
oursect
ions.Theyare–
I
. Rol
eofBoar
dofDi
rect
ors,
Dut
iesoft
heBoar
dandi
tsComposi
ti
ons–
a) Theboar
dshouldmeetr egul
arl
y,ret
ainf
ullandef
fect
ivecont
rolov
ert
hecompanyand
moni
tort
heexecut
ivemanagement.

Busi
nessEt
hics 23
SURESHAKS, SKDEC
b) Theboar
dshoul
dincl
udenon–executi
vedir
ector
sofsuf f
ici
entcal
i
berandnumberf
ort
hei
r
vi
ewstocar
rysi
gni
fi
cantwei
ghti
ntheboar
d’sdeci
sions.
c) Alldir
ector
sshouldhav
eaccesstotheadviceandserv
icesofthecompanysecr
etar
y,whois
responsi
bletotheboar
dforensuri
ngthatboar
dproceduresar
ef ol
l
owedandthatappl
icabl
e
rulesandregul
ati
onsar
ecompliedwit
h.

Busi
nessEt
hics 24
SURESHAKS, SKDEC
I
I. Rol
eofNon–Execut
iveDi
rect
ors–
a) Non– execut
ivedir
ector
sshoul
dbr i
nganindependentj
udgementtobearoni ssuesof
st
rat
egy
,perf
ormance,r
esour
ces,
incl
udi
ngkeyappoi
ntment
s,andst
andar
dsofconduct.
b) Non–execut
ivedi
rect
orsshoul
dbeappoi
ntedf
orspeci
fi
edt
ermsandr
eappoi
ntmentshoul
d
notbeaut
omati
c.
c) Non–execut
ivedi
rect
orsshoul
dbesel
ect
edthr
oughafor
malpr
ocessandbot
hthi
spr
ocess
andt
hei
rappoi
ntmentshoul
dbeamat t
erf
ort
heboardasawhol
e.
I
II
. Deal
ingwi
tht
hei
rRemuner
ati
ons–
a) We r ecommend thatfutur
e ser
vice cont
racts shoul
d notexceed t
hree y
ears wi
thout
shareholder
s’appr
ovalandthattheCompani esActshouldbeamendedi nli
newiththis
recommendat i
on.
b) Not
iceofmini
mum 07(
seven)day
smustbegi
venf
oreachboar
dmeet
ing.Not
icef
orboar
d
meeti
ngsmaybegi
venbyel
ectr
oni
cmeans.
c) CA2013hasper mi
t t
eddir
ect
orstopar
ti
cipat
einboardmeeti
ngsthroughvideoconf
er enci
ng
orot
heraudiovi
sualmeanswhicharecapabl
eofrecordi
ngandrecognizi
ngthepart
icipati
on
ofdi
rect
ors.Par
ti
cipati
onofdi
rect
orsbyaudiovi
sualmeanswouldalsobecountedt owards
quor
um.
d) Requir
ementforhol
dingboardmeeti
ngev eryquar
terhasbeendi
sconti
nued.Nowatleast04
(f
our)meet
ingshavetobeheldeachy ear
,wi t
hagapofnotmor ethan120(onehundredand
twenty
)daysbetween02(two)boar
dmeet ings.
Var
iousCommi
tt
eesRepor
tsonCor
por
ateGover
nance-:
01. Nar
simham Commi
tt
ee–1991–onBanki
ngRef
orms
Nar
asi
mham CommitteeReportwasmajorl
yf ocusedonBanki
ngSect
orRef
orms,i
tal
so
madesomehighl
i
ght
sonIssuesofCorpor
ateGov
ernance.
The Narasimham Commi ttee’
s r ecommendati
ons wer e based on the fundament
al
assumpti
onthattheresour
cesoft
hebankscomef r
om thegeneralpubl
i
candwer ehel
dbythebanks
i
nt r
ustandt
hattheywer et
obedeployedformaximum benef
itofthedeposi
tor
s’.
Thi
s assumpti
on automaticall
yi mpli
ed thateven the gover
nmenthad no busi
ness t
o
endangerthesolvency
,heal
thandef fi
ciencyofthenat i
onal
izedbanksunderthepr
etextofusi
ng
banksresourcesf
oreconomicplanning,social
bankingpover
tyeradi
cati
on,
etc.
,
TheNar
asi
mham Commi
tt
eer
ecommendat
ionswer
eai
medat–
 Ensur
ingadegr
eeofoper
ati
onal
flexi
bil
i
ty.
 I
nter
nal
aut
onomyf
ort
hepubl
i
csect
orbanksi
nthei
rdeci
si
onmaki
ngpr
ocess.
 Agr
eat
erdegr
eeofpr
ofessi
onal
i
sm i
nbanki
ngoper
ati
ons.
02. TheCodeofCor
por
ateGov
ernancef
orl
ist
edCompani
esbyCI
I–
Confederati
onofIndi
anIndustry{CI
I}setupacommi tteetoexami
necorpor
ategover
nance
i
ssues,andt or ecommendav ol
untarycodeofbestpr acti
ces.Thecommi t
teewasdr i
venbythe
convi
cti
ont hatgoodcor por
ategovernancewasessent
ialforIndi
anCompaniestoaccessdomesti
c
aswellasglobal capi
tal
atcompeti
tiv
er at
es.
Thefi
rstdraf
tofthecodewaspr epar
edbyApri
l1997,andt
hef
inaldocument(
Desi
rabl
e
Cor
por
ateGov
ernance:ACode)waspubl
i
clyrel
easedi
nApri
l1998.
TheCI
Irecommendedt
hef
oll
owi
ng14Keyaspect
swhi
chshoul
dbeshar
edbyBOD–
a) Annual
plans,
budget
sandl
ongt
erm pl
ans.
b) Budget
sforCapi
tal
,ManpowerandOv
erheads.

Busi
nessEt
hics 25
SURESHAKS, SKDEC
c) Quar
ter
lyr
esul
tsf
ort
hecompanyasawhol
e.
d) Fat
alandser
iousacci
dent
s,pol
l
uti
onr
elat
edi
ssuesandcases.
e) Def
aul
tsi
npay
mentofi
nter
est
sandpr
inci
pal
s,t
oanybankf
inanci
ali
nst
it
uti
ons.
f
) Labourpr
obl
emsandt
hei
rpr
oposedsol
uti
ons.
03. KumarMangal
am Bi
rl
aCommi
tt
eeRepor
t–
Thesecondmajorcorpor
ategover
nancei
nit
iati
veinthecount
rywasundert
akenbySEBI.I
n
ear
ly1999,i
tsetupacommi tt
eeunderKumarMangalam Bi
rl
atopromoteandr
aisethest
andar
dsof
goodcorpor
ategover
nance.
TheI
mpor
tantaspect
s,i
nbr
ief
,ar
e;
a) Boar
dofDi
rect
orsar
eaccount
abl
etoshar
ehol
der
s.
b) Boardcont
rol
sarelai
ddowncodeofconductandaccount
abl
etoshar
ehol
der
sforcr
eat
ing,
tr
anspar
entmannerwhil
enoti
nvol
vi
ngi
nday-t
o-daymanagement
.
c) Classi
fi
cat
ionofnon-
execut
ivedi
rect
orsi
ntot
hosewhoar
eindependentandt
hosewhoar
e
not.
d) Independentdi
rector
s notto hav
e mat er
ialorpecuni
aryr
elat
ions wi
tht
he company/
subsidi
ari
esandifhad,t
odiscl
oseinAnnualRepor
t.
e) Layi
ngemphasi
soncal
i
beronnon-execut
ivedi
rect
orsespeci
all
yespeci
all
yindependent
di
rect
ors.
f
) Opti
mum combi nati
onofnotl essthan50% ofnon– execut i
vedi r
ectorsandofwhi ch
companieswithnon–execut
iveChairmantohaveatleastonethir
dofi ndependentdi
rect
ors
andunderexecuti
veChai
rmanatleastonehal
fofindependentdi
rector
s.
g) Nomi
needi
rect
orst
obet
reat
edonparwi
thanyot
herdi
rect
or.
h) Quali
fi
edindependentaudi
tcommitteetobeset ,wit
hmi ni
mum ofthreeal
lbei
ngnon–
execut
ivedi
rect
orswithonehav
ingf
inanci
alandaccounti
ngknowl
edge.
i
) Corpor
ate governance r
eportto be par
tofAnnualRepor
tand di
scl
osur
e on di
rect
ors’
remunerat
ionetc.,
tobeincl
uded.
04. TheNar
eshChandr
aCommi
tt
eeRepor
tonCor
por
ateGov
ernance–
The Naresh Chandra Commi
ttee wasappoi
nted i
n August2002 bythe Depar
tmentof
CompanyAffair
s( DCA)undert heMinist
ryofFi
nanceandCompanyAf f
airst
oexami nev ar
ious
cor
por
ategovernanceissues.I
tmader
ecommendationi
ntwoaspectsofcor
porat
egov er
nance;
i
. Fi
nanci
alandNon-
fi
nanci
aldi
scl
osur
es
i
i
. I
ndependentaudi
ti
ngandboar
dov
ersi
ghtofmanagement
.
05. Mr
.N.
R.Nar
ayanaMur
thyCommi
tt
ee{
2002–2003}
TheNaray
anaMur t
hyCommi t
teewasfr
amedbySEBItoeval
uat
eandimprov
etheexisti
ng
pr
act
ices,i
twassetupundert
heChair
manshi
pofMr.N.
R.Nar
ayanaMurt
hy.Thecommit
tee’
sreport
wasbasedonthefol
lowi
ngaspect
s.
i
. Tor
evi
ewt
heper
for
manceofcor
por
ategov
ernance.
i
i
. Todeter
minetherol
eofcompaniesinther espondi
ngt orumorandotherpri
cesensi
ti
ve
i
nfor
mati
oncir
cul
ati
ngint
hemarkett
oincreasethetranspar
encyi
nthemarket
.
Benef
it
sandLi
mit
ati
onsofCor
por
ateGover
nance-:
Thebenef
it
sofcor
por
ategov
ernancecanbev
iewedf
rom t
hreedi
mensi
ons.
I
. Tot
heCompani
es.
Compl
i
ancewi
thCor
por
ategov
ernancepr
inci
plescanbenef
itt
heowner
sandmanager
sof

Busi
nessEt
hics 26
SURESHAKS, SKDEC
compani
es,
transpar
encyanddi
scl
osur
escanbeachi
evedby
 I
mpr
ovi
ngaccesst
ocapi
tal
andf
inanci
almar
ket
s.
 I
thasaabi
l
ityt
oat
tractequi
tyi
nvest
orswi
thi
nandf
rom abr
oad.
 I
tal
sor
educest
hecostofl
oans/cr
edi
tforcor
por
ati
on.
 I
tlower
sthecapi
tal
cost
.
 I
thel
psi
nbr
andf
ormat
ionanddev
elopment
.
I
I. Tot
heShar
ehol
der
s–
 Str
ongcorpor
ategovernancemai
ntai
nsinvest
ors’conf
idence,asar
esul
tofwhi
ch,company
canrai
secapi
talef
fi
cient
lyandef
fect
ivel
y.
 Gr
eat
ersecur
it
yont
hei
rinv
est
ment
s.
 I
tensuresthatsharehol
der
saresuff
ici
entl
yinf
ormedondecisi
onsconcer
ningamendment
s
ofst
atutesorar
ti
clesorlawini
ncor
porat
ingsal
eofasset
setc.,
I
II
. Tot
heNat
ionalEconomy–
 Goodcor
por
ategov
ernanceensur
escor
por
atesuccessandeconomi
cgr
owt
h.
 Ther
eisaposi
ti
vei
mpactont
heshar
epr
ices.
 Goodcor
por
ategov
ernanceal
somi
nimi
zeswast
ages,
cor
rupt
ion,
risksandmi
smanagement
.
Li
mit
ati
ons/Dr
awbacksofCor
por
ateGov
ernance–
01. TheSepar
ati
onofOwner
shi
pandManagement–
Manymanager sst r
ivetoachievegoalsthatarenotali
gnedwithor
gani
zati
onalgoal
s.This
causes‘ agencyproblem’andcanhar mt hecompanyi nthelongrun.Eveni
nvestor
sandot her
stakeholdershav
ingani nterestinthecompanywi l
lfacethenegat
ivei
mpactoft
heagencyprobl
em.
Thisislargel
ywitnessedinor gani
zati
onsthatpubl
icl
ytradei
nstocks.
02. I
nsi
derTr
adi
ng–
Ifcompanyoff
ici
al,abr
eastwit
hsuchi
nfor
mation,useitf
orthei
rownbenef
itandsel
lthei
r
shar
est
oapersonunawareofthati
nfor
mati
on,
thi
siscall
edinsi
dertr
adi
ng.
03. Mi
srepr
esent
ati
onofI
nfor
mat
ion–
Ther
earemanyway sinwhi chcorporateoff
ici
alscanmisr
epresentf
inanciali
nfor
mati
ont o
avoidpayingheavytaxesortoaffectthev al
ueofcompanyshar esi nthemar ket.Thi
sisalsoa
drawbackofcorpor
ategover
nance,asmi sl
eadinginf
ormationcanl
etcompaniesgetawaywi t
ht hei
r
corr
uptacts.
04. Moni
tor
ingCost
s–
Due t
o extensi
ve abuse oft
he powerdelegat
ed to company of
fi
ci
alundercor
por
ate
gover
nance,l
awshav ebeenf or
mulat
edtopr ev
entsuchmi suseandabuseofpower.However
,
complyi
ngwit
htheselawscanbecostl
yandstr
essful
formanycompanies.
05. Cor
por
ati
onsGov
ernedbySt
atut
es–
Cor
por
ati
onsaregov
ernedbyf
ederalandstat
estat
utes.Onemajorreasonbusi
nessowner
s
f
orm cor
por
ati
onsist
oli
mitt
heowner’
sli
abil
it
ytotheamountofthei
rinv
est
ment s.
06. Fi
duci
aryDut
yofBoar
d–
Offi
cer
sandt heboardofdi
rect
orshavefi
duciar
ydutiestoactinthebestint
erestoft
he
corporat
ion.I
ftheybr
eachthosedut
iesbynotexer
cisi
nghonestandprudentcar
e,t
heycanbeheld
l
iable.
07. I
ncr
easedCost
s–

Busi
nessEt
hics 27
SURESHAKS, SKDEC
Cor
por
ati
ons have higher admi
nist
rat
ive costs because of gr
eat
er admi
nist
rat
ive
r
equi
rementst
hanthoser
equi
redofLLCsandli
mitedpar
tnershi
ps.
08. Pr
inci
palAgentConf
li
ct–
Confli
ctsari
sewhenacor porati
on’
sshareholdersdonotactiv
elypar
ti
ci
pateinthebusiness
and i
nstead hi
re prof
essi
onalmanagementt or un the busi
ness.The managerrepresentsthe
shar
eholder
sbutof t
enhasdiff
erentgoalsandperspecti
ves.Themanageract
sinhisbestinter
estas
anemployeebutnotinthebesti
nterestoft
heshareholders.

Busi
nessEt
hics 28
SURESHAKS, SKDEC
Uni
t–2: Per
sonal
Ethi
cs
I
ntr
oduct
ion-:
Personalet
hicsisacat egoryofvi
ewpointt hatdet
ermineswhatani ndi
vidualbeli
evesabout
mor al
it
yandr i
ghtandwr ong.Thisisusual
lydist
inguishedf
rom busi
nesset hi
csorlegalethi
cs.These
branchesofet hi
cscomef rom outsi
deorganizat
ionsorgov er
nments,nottheindi
v i
dual
lyconscience.
Thesebr anchesofethicsoccasionall
yoverl
ap.Personalethi
cscanef fectal
lareasofl i
fe,i
ncl
uding
family
,fi
nancesandr el
ati
onships.
Personalethi
csaremot i
vat
edbyhumani tari
anint
erest
s.Thesepersonalethi
cscanbr eed
superi
orgoals.Somepeopl eshapetheiracti
onsandpr i
ori
ti
esaroundendi
ngwor ldhunger,sl
owing
globalwarmingorencouragi
ngwor l
dpeace.Ar el
igiousper
sonmi ghtmakepersonalet
hicalchoi
ces
thatsimul
taneouslypl
easehergodwhilealsohel
pinghercommuni ty
.….
Meani
ngofPer
sonal
Ethi
cs–
Aper sonalet
hicsr
efer
stothestatementwhichi
sapointofvi
ewbasedoncer t
ainethi
csor
moral
s.Thesest at
ementsarenotobj
ect
iveandrefl
ectani
ndi
vi
dual’
spersonalv
iewsorf
eeli
ngsona
cer
tai
nsubject.
I
mpor
tanceofPer
sonalEt
hics-:
01. ToKnowThy
sel
f/Onesel
f–
Havi
ngacodeofet hi
csallowsyoutounder
standyour
sel
fandwhaty
oustandfor
.For
i
nstance,somemaybeli
evethatabort
ioni
swrongandother
smaybeli
evei
tasameansofhavi
ng
contr
olonpopul
ati
onanditi
sgoodforone’
sheal
tht
oo.
Thesebel
i
efsgi
vey
ouacor
eofet
hicst
haty
oucanhol
dti
ghtt
oandwhi
chgi
vesy
ouasense
ofsel
f.
02. ToDealwi
thOt
her
s–
I
thel
psusast oknowhowweneedt odealwi t
hother
s.Whaty oubeli
eveandf eelconst
antl
y
af
fectsyouropi
nionsandfeeli
ngsaboutother
s.Ifyoubel
ievethatvi
olenceiswrong,theny oul
ikel
y
won’tgetal
ongwellwi
thprofessi
onalfi
ght
swhor eall
yenj
oytheircr
aft
.Ont heotherhand,youwould
bemor eli
kel
ytogetal
ongwithanor dai
nedpri
estwhobeli
evesintheway sofpeace.
03. Goal
s–
I
fyourcodeofet
hicsisst
rongenough,
itcanhel
pyouachi
eveyourgoal
s.Whet
herit
’swr
it
ing
abook,get
ti
ngabet t
erjoborhelpingyoumakey ourmar
ri
agework,yourcodeofet
hicscanhelp
gui
deyouinyourbi
gdeci
sions.
04. Rel
igi
ouscodes–
Apersonalcodeofet
hicsal
somayincl
udeot
heret
hicalcodes.Fori
nst
ance,manypeopl
e
hol
dtheIsl
am Codeor10Commandment sorthecodeofBushidoorVedi clawsasthei
rown,
per
sonal
code.
05. Tr
ust
ingRel
ati
onshi
ps–
Et
hicalemployeesbuil
dt r
usti
ntheirworkpl
acerel
ati
onships,al
l
owingpeopl
etoopenupt o
them, shareprivat
einf
ormationandfeelmoreateasecommuni cat
ingwitht
hem.Areasofet
hicst
hat
affecttr
ustincludehonesty
,fai
rnessandavoidi
ngrumors.
06. Team Cohesi
veness–
Theethi
calcommitmentsofindivi
dualemployeeshaveanef f
ectonteam anddepart
ment
per
formancei
naddit
iont
oindiv
idualperf
ormance.Beinganethi
calemploy
eemakey ouabett
erteam
pl
ay,al
waysmakingposi
ti
vecontr
ibuti
onsingroupsetti
ngsandneverhi
nderi
nggrouppr
ogr
ess.
07. Val
uet
oEmpl
oyer
s–
Compani
esl
i
veordi
eont
het
rustt
heypl
acei
nthei
rempl
oyees.Et
hicalempl
oyeesar
ebet
ter

Busi
nessEt
hics 29
SURESHAKS, SKDEC
peoplet
ohav ewor
kingf
oranycompany,
astomanagersandbusinessowner
scanrestassur
edthat
thei
remploy
eesadheret
oethi
cspol
ici
esanduseet
hical
reasoni
ngwhenmakingcompanydecisi
ons.
08. Per
sonal
Wel
lness–
Bei
ng an ethi
calemployeecan makey ou abet terperson on theinsi
dein addit
ion t
o
i
ncreasi
ngyourvaluetoother
s.Usingethi
cst oguideallofyourdecisionsatwor kcangrantyou
peaceofmi
nd,emot i
onalst
abi
li
tyandtheabi
li
tytocult
ivat
elast
ingfri
endships.
Et
hicalemployeesarethosewhomakedeci si
onsinthebestint
erestoftheirempl
oyer
s,co–
worker
sandout si
destakehol
dersinaddi
ti
ont othemselves.Wor
kplaceethicscenteronsuchdi
verse
i
ssuesasdiscri
minati
on,fr
aud,thef
tandpersonalpoli
ti
cs.
09. St
rengt
h–
Apersoncandrawst
rengthf
rom hercodeofethicsi
nti
mesofdoubt
.Acodeofethi
csgi
ves
youconfi
dencethaty
ouaredoingwhatyoufeelisr
ight,whi
chcancutdownonalotofstr
essand
anxi
ety
.
Ti
psf
ort
heDevel
opmentofPer
sonalEt
hics-:
01. Pr
act
iceCommonCour
tesy–
Thisistheoi
lthatkeepstheengineofco–oper ati
onrunni
ngsmoot
hly
.Itdoesn’
tmeany
ou
hav
etochatovercof
feeforanhouranditcert
ainl
ydoesn’tmeanyouhav
etoki
ssanyone.
02. UseEf
fect
iveCommuni
cat
ion–
Lear
nwhowor ksbestt
hroughemai
l,phone,inst
antmessagi
ng,orper
sonalv
isi
tsandt
ryt
o
ut
il
izet
hesepref
erenceswhenengagingy
ourco-workers.
Some peopl
e pref
eremailsi
nce theyli
ke t
o keep a wr
it
ten r
ecor
d ofthei
racti
onsor
responses t
o quest
ions.Other
s wi
l
lv al
ue a phone cal
lmore si
nce i
t’
s a qui
ckermedi
um of
communi cat
ion.
03. RespectOt
herPeopl
e’
sTi
me–
Everyjobisaservi
cejob.Whetheryouwor
kinIT,HR,Mar
ket
ing,orAdmi
nist
rat
ion,y
ouhave
somethi
ngot herpeopl
eneed.Itcouldbeknow –how inyourj
obroleorthecapabi
li
tytoper
for
m
cer
tai
nbusinessfuncti
ons,
li
kesigni
ngpurchaseor
der
s.
Unl
essit
’sagenuineemergency,don’
thoveroutsi
desomeone’
scube/of f
icewhil
ethey’
re
busywithsomeoneel
se,to“wai
tforthem t
ogetoffthephone,
”orf
ini
shanexi
sti
ngconver
sati
on;j
ust
comebackl ater
.Conductbusi
nessoper at
ionswithother
satt i
mesthatareconveni
entforboth
part
ies.
04. Hel
pYour
sel
f–
I
fy ouneedassist
ancefr
om someoneel
seatworkorhav
eaquest
ion,seei
fyoucanlookup
thei
nfor
mat i
on/trythetaskbefor
eseeki
nghel
p.Eveni
fyoucandot
hisonlypart
ial
l
y,i
twil
lhel
p–
andi
twill
earnrespect
.
05. Pr
oceedwi
thCaut
iononSoci
alMedi
a–
There’
sreally nothi
ng di f
ferentaboutinter
acti
ng wit
h co-workers on soci
almedia as
comparedtothestandardrulesofr ealli
fet
hathavebeenaroundfordecades.I
fyoudoconnectwith
co-
workersthr
oughsoci almedi a,don’tengageininappr
opri
aterel
ati
onshipsanddon’ tpr
esentan
unpr
ofessi
onalsi
deofy ourself
.

Busi
nessEt
hics 30
SURESHAKS, SKDEC
06. St
ayont
heLev
el–
Treatever
yonethesame.Off
icepol
iti
cscanbedeadl yandsomet i
meevenunavoi
dabl
e,but
r
educey
ourinvol
vementint
hem wher
everpossibl
e.Don’
tgossiporgeti
nvolv
edi
nitwhenother
sdo.
07. Don’
tGr
ipeaboutWor
katWor
k–
Ev
eryonev ent
saboutthej obatti
me.Wear eav ent–ori
entedsoci
ety
.Gri
pingisokay–so
l
ongasy oudoi tyoursigni
fi
cantother,rel
ati
ve,non– workfri
end,ordog.Keepi tout
sidet
he
companyi
fy oucan,though.Gett
ingpaidtocomplainaboutwor
kwhi l
eyou’
reatworkisalit
tl
eover
thet
opandjustfoster
sanunhealthyvi
cti
mhoodcul t
ure.
08. PutoutaWel
comeMat–
Gooutofyourwaytomakenew hir
eswelcome.Ever
yonepl
aysanimport
antr
olei
na
busi
nessandev
eni
nter
nbui
l
dingwor
kst
ati
onsdeser
vesa“Wel
comestot
hecompany
.”
09. Fol
lowupwi
thPeopl
e–
Thi
sonegoesalongway,
wheny ou’
vecomplet
edataskinv
olv
ingothers,
itt
akes20seconds
t
obangoutanemai
lacoupl
eofdaysl
ateraski
ng“Di
dthatworkf
oryou?”or“Howarethi
ngsgoing?
”
Thesestrat
egi
esmaycompl ementanagenda–or
ient
edwor
kpl
acet
ohel
pkeept
hewheel
s
ofbusi
nesstur
ninginaheal
thyandproduct
ivef
ashi
on.
Emot
ionalHonest
y-:
I
ntr
oduct
ion–
Emoti
onsof feran essent
ialtruth and i
nsi
ghtint
o whatitmeanst o behuman.Whi
ch
emotionsareawi ndowint
ot heownr eali
ty,t
hinki
ngoff
ersthebal
ancedper
spect
iveofi
ncl
udi
ngt
he
real
i
tyoftheotherperson.
Emoti
onalhonestymayal sogivet heabil
it
ytodeci dewheni tisinthebestinter
estto
emot i
onall
yhonestbyshari
ngtherealf
eeli
ngs.Therear
etimewheni ti
snotheal
thyorsaf
eforusto
emot i
onall
yhonest.Emoti
onshavetwov i
tal
lyi
mpor t
antpurposesforhumanbeings.Emoti
onsarea
for
m ofcommuni cati
on.Thefeeli
ngsareoneoft hemeansbywhi chwedef i
neoursel
ves.The
i
nteracti
onofourintel
l
ectandouremoti
onsdet er
mineshowwer el
atetoour
sel
ves.
Theemot ionalpoweri st hef
uelt
hatpropel
sdownt hepathwaysofourlif
ejourney.Emoti
ons
aret
heorchestrathatprov i
dest hemusicforouri
ndivi
dualdancesthatdict
atet
herhy t
hmicfl
owand
movementoft hehumandance.Thef eeli
ngshelpust odef i
neour selv
esandt henpr ov
idethe
combusti
blefuelthatdictatesthespeedanddi r
ecti
onofourmot ionratherweareflowingwithi
tor
dammingitupwi t
hinour sel
v es.
Quotefrom GerrySpace(
mostsuccessf
ull
awy
eri
nUSA)
,“Openl
yrev
eal
ingourf
eel
ings
est
abl
ishescredi
bil
it
y.”
Meani
ngofHonest
y–
Honest
yr ef
er sto an aspectofmor alcharacterand connotes opt
imisti
c and vi
rt
uous
att
ri
butessuchasi ntegr
it
y,trut
hful
nessandst r
aight
for
wardness,i
ncludingstr
aightfor
wardnessof
conduct,al
ongwitht heabsenceofl y
ing,cheat
ing,t
heftetc.I
not herwordshonestymeansbei ng
tr
ustworthy
,loy
al,
fairandsincer
e.
Meani
ngofEmot
ional
Honest
y–
Emot
ionalhonest
ymeansexpressi
ngthetruefeel
i
ngs.Tobeemotional
l
yhonestsomeone
mustbeemoti
onall
yaware.Thi
semot
ionalawar
enessisrel
atedt
otheemot
ionali
ntel
l
igence.

Busi
nessEt
hics 31
SURESHAKS, SKDEC
El
ement
sofEmot
ions–
1. Lov
e–
Lov
er efer
st oav ari
ety ofdif
ferentf eel
i
ngs,states and att
it
udes t
hatr
anges f
rom
i
nter
per
sonalaf
fecti
ontopl
easur
e.Loveoffersconnecti
on.I
tisgenerous.
2. Fear–
Feari
sanemotioni
nducedbyat
hreatpercei
vedbyl
ivi
ngent
it
ies,whi
chcausesachangei
n
br
ainandorganf
unct
ionandul
ti
matel
yachangeinbehavi
our
.
3. Gr
ief/Sadness–
Sadnessisemoti
onal
painassociat
edwith,
orchar
act
erizedbyfeel
i
ngsofdisadv
ant
age,
loss,
despai
r,helpl
essnessandsor
row.Grief/Sadnessmakesusallsmall
erandret
urnsustoasenseof
pri
vacyinbeingalonewit
hour
selves.
4. Anger–
Angerisanemot i
onalr
esponserel
atedtoone’
spsy
chologi
cali
nter
pret
ati
onofhavingbeen
off
ended,wronged,ordeni
ed.Angerifi
tisaimedatsomeone,angeri
smuchmor ehur
tful.Bei
ng
angryi
sdif
ferentt
hanwanti
ngtohurtsomeone.
5. Hat
e–
Hat
eisadeepandemot i
onalext
remedisl
i
kethatcanbedi
rect
edagainsti
ndiv
idual
s,ent
it
ies,
object
sorideas.Peopl
ehatewhenangeri snotaconstr
ucti
veworki
ngpartofthei
remot i
onaltool
box.Itcanbedestruct
iveandbecomesanat t
empttoelimi
natet
heot her
.Thereissti
llapowerful
connecti
on.
6. Gr
ati
tude–
Grati
tude, t
hankful
ness, grat
eful
ness or appr
eciat
ion is a f eel
ing or att
it
ude in
acknowl
edgementofabenef i
tthatonehasrecei
vedorwi
ll
recei
v e.Gr
ati
tudeknowingwhati
senough
andappr
eciati
ngblessi
ngs.
7. Joy–
Joyi
safeeli
ngofgreatpl
easur
eandhappi
ness,j
oyt
hef
unct
ioni
stof
eelf
ree.Getf
atwi
th
j
oy.Funcanbeasubsti
tut
eforr
ealj
oy.
8. Humor–
Humort hequal
it
yofbeingamusingorcomic,
especi
all
yasexpr
essedinl
i
ter
atureorspeech.
Humormakesthehardpartsofl
ifemorebear
abl
e.Thisev
olv
esi nt
obei
ngevenmorepreci
ousaswe
age,
Humorisanalt
ernat
ivetodespai
r.
Benef
it
sofEmot
ionalHonest
y-:
01. Emot
ional
Honest
yPr
omot
eAut
hent
ici
ty–
Honestyisaref
lect
ionofyourownt hought
sandf
eel
i
ngs.I
fyouwanpeopl
etoknowwhoy
ou
r
eal
l
yar
e,behonesti
nyourself–expressi
on.
02. Emot
ional
Honest
yFost
ersCour
age–
Courageisnott heabsenceoffear.Courageisdoi
ngwhatyouknow wantorneedtodo,
despit
ey ourfear
.Itt
akesanimmenseamountofcour agetosaywhaty
oufeel
.Iti
sof
tendi
ffi
cul
tand
takespracti
cesandpatience,
buthispay
offsareenormous.
03. Emot
ional
Honest
yshowsy
ouCar
e–
Being honestwi thy ourselfand wit
h ot her
s shows how much y
ou r
eal
lycar
e.Ital
so
demonstr
atesselfr espectandr espectforothers.Acaringat
tit
udemakespeopl
estopandthi
nk.
Gent
lehonestyisalsov er
yattracti
veandappealing.

Busi
nessEt
hics 32
SURESHAKS, SKDEC
04. Emot
ional
Honest
yCr
eat
esaCi
rcl
eofLov
e–
Honest
yset
sanexampl ethatinvi
tesot
her
stoimitat
e.Whenot
hersrespondwit
hhonest
y,i
t
cancreat
emor ei
nter
per
sonalclosenessandauthent
ici
ty.Thi
soft
entransl
atesint
oloveandcan
creat
eanongoi
ngevol
uti
onoflovi
ngr el
ati
onshi
ps.
05. Emot
ional
Honest
yshowsMat
uri
tyandSel
f–accept
ance–
Amat ureper
sonconveyshonestexpr
essioninast
ylet
hatmini
mi zespai
nfuli
mpact.When
other
sar ehurt,t
hematur
e,self–accepti
ngpersonremai
nsinther
elat
ionshipt
owor kthr
oughany
painexperi
encedbytheot
herperson.
06. Emot
ional
Honest
yfost
eraConnect
ion–
Honest
ycanbr ingpeopl
ecloserbycreat
ingasafeconnect
ion.Iffor
msacont extfort
he
r
elat
ionshi
pwit
hinwi t
hbothpart
iesfeelsecur
eenoughtobegenuinei nthei
rint
eract
ions.Sucha
r
elat
ionshi
pcaninv
iteandempowereachpartytoworkt
hroughsomehighlyper
sonali
ssues.
07. Emot
ional
Honest
yFeel
sExhi
lar
ati
ngbecausei
tissoFr
eei
ng–
Beingaut
henti
candsay
ingwhaty
ouf
eelandt
hinkf
eel
sgr
eat
!Bydoi
ngso,
youbr
eakf
reeof
t
hel
i
mit
ati
onsoffear
.
08. Emot
ional
Honest
yEl
imi
nat
esGar
bage–
Hi
dingtruef
eeli
ngsorwit
hhol
dinginfor
mat i
oncreat
esemot ionalgarbage.Thi
si sknownas
gunnysacki
ng,whichrequi
resal
otofsel
f–def eat
ingenergy
.Beinghonestfrom thebeginni
ngofany
i
nteract
ionprev
entsthebui
ld–upofemotionalgar
bageandcl eansoutyouremot i
onalgunnysack.
09. Emot
ional
Honest
yAt
tract
sHonest
y–
I
fhonestybecomesanunconscioushabit,y
ouwi l
lbecomev
eryat
tract
ivet
oot
herhonest
peopl
e.Ali
fef
il
ledwit
hauthent
icpeopl
eisvast
lyenri
ched.
10. Emot
ional
Honest
ycankeepy
ououtofTr
oubl
e–
Weallknowhowy oucandi
gyour
sel
fifdeeperi
ntoahol
ewi t
hli
esanddecei
t.Sof
rom t
he
star
t,don’tevengo there.Keepacleansl
atebyst ay
inghonest
,especi
all
ywheny oufeart
he
anti
cipat
edconsequences.
Vi
rt
ueofHumi
li
ty-:
Vi
rt
ueet hi
csfocusesoni ndi
vi
dual
sbecomi
ngi
mbuedwi
thv
irt
ues– Ar
ist
otl
eandPl
ato.
Humi
l
ityisthequal
it
yorstateofbei
nghumble.
Humi
l
ityi
s–
 St
rengt
hundercont
rol
.
 Choosi
ngnott
odr
awat
tent
iont
osel
fbuthi
ghl
i
ght
ingt
heabi
l
iti
esofot
her
s.
 Opent
oinputofot
her
s.
 Notdef
ensi
veorov
erl
ysel
f–awar
ebutt
eachabl
e,wi
l
li
ngt
otakeadv
ice.
 Sel
f–cont
rol
l
ed.
 Conf
identi
nyour
sel
fbutmodestandr
espect
ful
towar
dot
her
s.
Humil
i
tycomesf r
om theLati
nwordhumi l
is,
whichmeanslow.I
fyoufeelhumi
li
tyinfr
ontof
someone,y
ouf eelsmal
lintheschemeoft hi
ngs–t haty
ouarejustasimpl
e,insi
gni
fi
cantperson.
Someonewhospendshisli
fetaki
ngcareofother
sshowshumil
it
y.
Thedi
cti
onarymeaningofHumi
l
ityi
shumblenessormeekness.Thi
sisoneoft
hev
irt
ue
whi
chi
sver
yessent
ialf
ort
hingst
ogosmoothandnotev
eryper
sonpossesst
his.
Humili
tyr
eferstotheactorpostur
eofl oweri
ngonesel
finrelat
iont
oot
her
sorconv
ersel
y,
hav
ingaclearper
specti
veandther
efor
erespect
,forone’
spl
aceincontext.

Busi
nessEt
hics 33
SURESHAKS, SKDEC
Meani
ngofVi
rt
ueofHumi
li
ty–
Thevi
rtueofhumil
i
tyr
eferstoaqual
it
ybywhichapersonconsi
der
inghi
sowndefect
shasa
l
owl
yopi
nionofhimsel
fandwi
ll
ingl
ysubmit
shimsel
ftoGodandtoother
sforGod’
ssake.
Def
ini
ti
onofVi
rt
ueofHumi
li
ty–
Accor
dingt
oSt
.Ber
nar
d,“
Avi
rt
uebywhi
chamanknowi
nghi
msel
fast
het
rul
yis,abases
hi
msel
f.
”
I
nthewordsofSt.Thomas,“I
tconsi
stsi
nkeepingonesel
fwi
thi
none’
sownbounds,not
r
eachi
ngoutt
othi
ngsabov
eone,butsubmit
ti
ngtoone’
ssuper
ior
.”
Howt
oPr
act
iceHumi
li
ty–
01. Gi
veCr
edi
twher
eCr
edi
tisdue–
Thepri
def
ulmanwilltakeasmuchcredi
tforasuccessashepossibl
ycan.thehumbl
eman
seekstoshinetheli
ghtonalltheot
herpeopl
eandstrokesofl
uckthatcametogethert
omakethat
successhappen.
I
nnat
etal
ent
,asupport
ivefami
l
ymember
,fr
iend,t
eacherorcoach,andl
uckybr
eaksal
way
s
cont
ri
but
esomewheredowntheli
ne.
02. Dowhat
’sexpect
ed,
butdon’
tmakeabi
gdealabouti
t–
Mygrandpar
ent
’sgenerat
ionunderst
oodt hei
deaoff ul
fi
ll
i
ngy ourduty.TheWorl
dWarII
gener
ati
ondi
dwhatwasexpectedofthem.Buttheynev
ert
alkedabouti
t.Itwaspartoft
heCode.
03. Per
for
m ser
viceandchar
it
yanony
mousl
y–
Pridef
ulmenwantev er
yonetoknow whent heydoacharit
ableact.Theydroptheamount
theydonatedtoacauseint
oconversat
ion,t
heypostpict
uresoft
heirser
vicetoFacebook,andt
hey
nevermissachancetor
emindsomeonet heyser
vedofthei
rgener
osi
tytowardsthem.
Real
char
it
yisnotsel
f–seeki
ngandi
sdonesol
elyf
ort
hebenef
itofot
her
s.
04. St
opone–uppi
ngpeopl
e–
Few t
hingsar
emor
eannoy
ingt
hanamanwhomustconst
ant
lyone– upot
her
sdur
ing
conv
ersat
ion.
05. AcceptHumi
li
ati
ons–
Perhapst
hemostpainf
ul,butalsothemostef
fect
ive,wayt
olear
nhumi
l
ityi
sbyaccept
ing
humi
l
iat
ingandembar
rassi
ngci
rcumstances.
06. ObeyLegi
ti
mat
eSuper
ior
s–
Oneoft heclear
estmanifestat
ionsofpri
deisdisobedience.Ontheotherhand,humil
it
yis
al
waysmanif
estedbyobediencetolegiti
mateauthor
it
y,whetheritisyourbossorthegovernment
.
AsSt
.Benedi
ctsays,
“Thefi
rstdegreeofhumil
it
yispromptobedience.”
07. Acknowl
edgey
ourNot
hingness–
Anotherhi
ghl
yeff
ect
ivewayofcul t
ivati
ng humili
tyi
st o medit
ateonthegrandeurand
gr
eat
nessofGod,whi
l
esi
mult
aneousl
yacknowledgingyourownnothi
ngnessi
nrel
ati
ont
ohim.
08. Thi
nkbet
terofot
her
sthanofy
our
sel
f–
Whenweareproud,weinev
itabl
yt hi
nkwearebet
tert
hanother
s.Scri
ptur
eandt
hesai
nts
bot
haf
fi
rmthatt
heonl
ysafepat
hisconsideri
ngev
ery
oneasbet
tert
hanoursel
ves.
“Donot
hingf
rom sel
fi
shnessorconcei
t,buti
nhumi
l
itycountot
her
sbet
tert
hany
our
sel
ves,
”
say
sSt
.Paul
.

Busi
nessEt
hics 34
SURESHAKS, SKDEC
Pr
omot
ingHappi
ness-:
Meani
ngofHappi
ness–
Happi
nessisasenseofwell–bei
ng,j
oy,orcont
ent
ment
.Whenpeopl
ear
esuccessf
ul,or
saf
e,orl
ucky,
theyf
eelhappi
ness.
Happinessisament aloremoti
onalstat
eofwel
l–bei
ngdef
inedbyposi
ti
veorpl
easant
emot
ionsrangingfr
om cont
entmentt
ointensej
oy.
Happi
nessas“t
heexper
ienceofjoy
,cont
ent
ment,orposi
ti
vewel
lbei
ng,combi
nedwi
tha
senset
hatone’
sli
fei
sgood,
meaningf
ul,
andwort
hwhi
le.
”
Def
ini
ti
ons–
Accor
dingtoM.K.
Gandhiasst
atedt
hat“
Happi
nessi
swhenwhaty
out
hink,
whaty
ousay
,and
whaty
oudoar einhar
mony.”
Ti
pst
oImpr
oveHappi
ness-:
01. Bei
ntheMoment–
Sincehappi
nessinadecisi
on,decideeachmomenttobehappyi nthatmomentandenjoy
whatthatmomenthast ooff
er.Thepasti sgoneandcannotbechanged.Thefutureandal
lit’
s
worr
ieshasnothappenedyet
.Bepresentnowandpurposei
nyourhear
ttobehappyinthenow.
02. LaughoutLoud–
Li
stent
ocomedi
enneoncomedycent
ral
.Laught
eri
sgoodf
ort
hesoul
.
03. Got
oSl
eep–
Ournat
ioni
sanat
ionofover
worked,
sleep–depri
vedpeopl
e,sot
oincreasey
ourhappi
ness,
t
akeadai
l
ynap.Youar
emoreli
kel
ytobehappyandheal
thywhenyouarer
ested.
04. Hum Al
ong–
Musi
csoothesmorethant hesavagebeast
!Musiccanaff
ectourmoodandexpressour
emoti
ons,sotochoosehappi
ness,choosemusicwithanuptempoandapleasantbeati
nmajor
chor
ds.
05. Vi
sitaQui
etPl
ace–
Li
brar
ies,museums,gardens,andplacesofworshi
pareal
lpl
acest
hatcancal
m,soot
he,de-
st
ressandbri
ngbackthehappinesstoy ourf
ast-
paced,
crazyl
i
fe.
06. SpendTi
meAl
one–
Al
thoughrelat
ionshipsareoneoft hebestanti
dotest
ostress,somet
imesyouneedti
me
al
onetorechargeandr ef
lect.Dur
ingy
ouraloneti
me,lear
nabouty
our sel
fandwhaty
ourneedsar
e.
Bui
ldy
ourownspi r
itandy ourowncharact
er.
07. Wal
kMi
ndf
ull
y–
Youpr obablyal
readyknowthatexerci
seisbet
tert
hantr
anquil
i
zersf
orr
eli
evinganxi
etyand
str
ess,butwhenwast hel astt
imeyout ookyourwalkandnoti
cedwhereyouare,whatyouf eel
againstyourskin,whatyousmell
,andthesoundsyouhear–fi
ndi
ngjoyint
hemomentofthewalk.
08. Doonet
hingatat
ime–
Sooftenwefalli
ntothehabitofeat
ingwhi l
ewewatchTV…..andwenevergett
hej
oyofthe
t
ast
eandtext
ureofthefood,nordowepayf ullat
tenti
ont
otheshow.Sochoosetodoonet
hingata
t
imeandt
horoughl
yfindthej
oyinthatonething.
09. Tuneoutt
heNews–
Whent hebadnewsi sdraggi
ngy oudown,choosehappiness….unpl
ug,changet
henews
channel
,anddon’
tpickt
hatnewspaper(exceptt
oreadt
hecomicssection)
!
10. TakeDai
lyRi
sks–

Busi
nessEt
hics 35
SURESHAKS, SKDEC
Structur
eandrouti
neareimportant
.Butyoualsomi ghtgetst
uckinar ut
.“Chal
lengey
our
self
totakear i
skeachday ,whet
herit’
stalki
ngtosomeonenew,asser t
ingyoursel
f,tr
ust
ingsomeone,
dancing,setti
ngatoughworkoutgoaloranyt
hingthatpushesyououtofyourcomf or
tzone.
Kar
maYoga-:
I
ntr
oduct
ion–
Kar
maYogai sanEngli
shbookofSwamiVi
vekananda,t
hebookwaspublishedinFebr
uar
y
1896from NewYork.Goodwi
nrecor
dedsomeoft
hel
ecturesofVi
vekanandaandt
hoselect
ureswer
e
publ
ishedasthebookKarmaYogain1896.
Karmay
oga(Sanskr
it
)orthe“di
sci
pli
neofact
ion”isaf
orm ofyogabasedontheteachi
ngof
t
heBhagav
adGi
ta,
asacredSanskri
tscr
ipt
ureofHi
nduism.Oft
hefourpathst
oreal
izat
ion;
 Kar
maYogai
sthepr
ocessofachi
evi
ngper
fect
ioni
nact
ion.
 Kar
maYogai
ssai
dtobet
hemostef
fect
ivewayt
opr
ogr
essi
nSpi
ri
tual
li
fe.
 Kar
maYogai
sapar
tofnat
ure.
 Kar
maYogai
staughtbyt
eacher
sofZenwhopr
omot
etr
anqui
l
ity
.
Meani
ngofKar
maYoga–
Thewor
d“Karma”i
sder
ivedf
rom t
heSanskr
itKri,
meani
ng“t
odo.”KarmaYogaisdoi
ngwell
tot
hewholeworl
d,t
olovet
hewholewor
ldandal
lbeings.Mosti
mpor
tantf
ortheworl
distheyogaof
act
ion,
ofdoi
ngwell
.
Karmay ogaisdescribedasawayofact i
ng,thinki
ngandwi
ll
ingbywhi
choneorientsonesel
f
towardsr eali
zat
ion byacting i
n accordancewi th one’sdut
y(dharma)wit
houtconsider
ati
on of
personalself–centereddesir
es,l
ikesordisl
ikes.
Def
ini
ti
onofKar
maYoga–
SwamiVivekanandadescri
bedKar
maYogaisamentaldi
sci
pli
nethatal
lowsaper
sont
o
car
ryouthi
s/herdutiesasaserv
icetot
heent
ir
ewor
ld,
asapat
htoenl
ight
enment.
TheI
mpor
tanceofKar
maYoga–
1. KarmaYogaist
hepathwayofYogathatachi
evesmyst
icalknowl
edget
hroughthework
donei
nday–t o–dayl i
fe,bydoi
ngone’
sdutyandworkinsuchawayt hatt
heinmost
knowl
edgecomest
hrough.
2. I
ti susedinapar t
icul
arsensewhendef i
ningt
helaw ofKarma,whichst
atest
hatwe
alwaysrecei
vetheresul
tsofouract
ions;goodr
esul
tsforgoodacti
onsandbadresul
ts
forbadacti
ons.
3. The descr
ipt
ion ofsuch a l
aw i
s usual
lyti
ed up wi
ththe anci
entHindu bel
i
efof
rei
ncar
nati
on,inwhichiti
susedtomeanthatourKar
mawi l
ldeter
minetheki
ndofbody
wegetinthenextli
fe.Buti
nthecont
extofKar
maYoga, Kar
mai ssi
mplyusedtodenot
e
acti
on.
4. Kar
maYogai
sconcer
nedwi
tht
hecor
rectwayofdoi
ngwor
k.
5. Iti
sbasedont heteachi
ngthatifwedoourwor kinadi spassionat
emanner ,wewil
lbe
ablet
oachieveaninnert
ranquil
i
tyi
nli
feunt
il
,fi
nall
y,weachi evecomplet
el i
berat
ionf
rom
all
ofli
fe’
stemptat
ionsandattai
nthei
nnermysti
calwisdom oft heabsol
ute.
6. Itset
soutt
oteachwhatourdut
iesar
eandhowweshoul
dper
for
mthem t
oat
tai
nthi
s
sense.
7. KarmaYogaisthepat
htobefoll
owedbythosewhocannotordonotabandonawor
ldl
y
l
if
e,yetar
efi
l
ledwit
hthet
hir
sttohavemysti
calknowl
edge.
8. I
fweliv
eintheworl
d,weareperfor
ceboundt
odowor k.Wehavet
owor ksi
mplyt
oearn
ali
vi
ngforour
sel
vesandforthoseforwhom wecar
e.Ourci
rcumstancei
nsoci
etyal
so

Busi
nessEt
hics 36
SURESHAKS, SKDEC
l
eav
esuswi
thmanydut
iesatasoci
all
evel
.
9. Aslongasweli
vei
nsoci
ety
,wearef
orcedt
odot
hiswor
k.Onl
ywhenwecanr
enounce
ev
erythi
ngwi
l
lwebefr
eefr
om wor
k.
10. Athousandjoy
sandsor rowspummelusev erymomentoft hedayandwear etornapar
t
bysuccessandfai
lur
e,byr egr
etsfort
hepastandf or
ebodingsf
orthefut
ureandsoon.It
appearsal
mostimpossibletoholdontooursearchfortr
ueknowledgewhil
eatt hesame
ti
mel i
vi
ngamidstsuchstorms.Butthi
sabil
i
t ycanbegainedthr
oughKarmay oga.
Pr
inci
plesofKar
maYoga–
1. Ri
ghtAt
ti
tude–
I
t’
snotwhatyoudothatcounts,i
t’
stheat
ti
tudewhi
l
edoingitt
hatdet
ermi
nesi
faj
obi
sa
kar
may
ogajob,
i.
e.,
ali
ber
ati
ngjob,orabindi
ngj
ob.Worki
sworshi
p.
“
Giv
eyourhandst
owor
k,andkeepy
ourmi
ndf
ixedatt
hel
otusf
eetoft
heLor
d.”
2. Ri
ghtMot
ive–
I
tisnotwhaty
oudot
hatcount
sbuty
ourr
eal
mot
ivebehi
ndi
t.Yourmot
ivemustbepur
e.
3. Doy
ourDut
y–
Oft
en“ dut
y”isref
err
edtoas“ ri
ght
eousness.”Youwil
lincurdemer
iti
fyoushunyourdut
y.
Yourdutyi
st owardsGod,orself,ortheInnerteacherwhoteachesyouthr
oughallt
hespecif
ic
ci
rcumst
ancesofy ourl
i
feastheyappear
.
4. Doy
ourBest–
What
every
ouhav et
odo, doyourbest
.Ifyouknowofabet t
erwayt
oserv
e,youmustuseit
.
Donothol
dbackbecauseoffearofef
for
torbecauseoffearofcr
it
ici
sm.Tr
ytodosuchact
ionst
hat
canbr
ingmaxi
mum goodandmi ni
mum evil
.
5. Gi
veupResul
ts–
Godi st
hedoer.Youarenotthedoer
.Youareonlythei nst
rument
.Youdonotknow God’
s
i
ntenti
onsorGod’ spl
ans.Godistheactor
.Thesel
fneveracts,changes.I
tisonl
ythethr
eeGunas
(qual
i
ties)ofnatur
ewhichareplay
ing.Thewaytor
eali
zethi
st ruthistoconst
ant
lywor
kforwork’
s
sakeandl etgooft
heresul
ts,
goodorbad.
6. Ser
veGodort
heSel
finAl
l–
Dotoother
swhaty ouwoul dl
iket
obedonet oyour
self.Lovetheynei
ghborast
hysel
f.Adapt
,
adjust
,accommodat e.Beari nsult
,beari
njury.Unit
yindiversit
y.Wear epar
tsofthesamebody .
Practi
cehumil
it
yinaction.Bewar eofpower
, f
ame, name,pr
aise,censure.
7. Fol
lowt
hedi
sci
pli
neoft
heJob–
Eachjobisateacherofsomesort
.Youcanlearndiff
erentski
l
lsbydoingdi
ffer
entj
obs.Each
j
ob hasdiff
erentrequir
ementsi nter
msoft i
me.degr eeofconcentrat
ion,ski
l
lsofexperience,
emoti
onali
nput,phy
sicalener
gy,wi
ll
.Tr
ytodowhateverjobyouaredoingwell.
Pr
oact
ive-:
Meani
ngofPr
oact
ive–
Pr
oacti
veiscontrol
li
ngasi
tuat
ionbycausi
ngsomet
hingt
ohappenr
athert
hanwai
ti
ngt
o
r
espondtoitaf
teri
thappens.
Theter
m pr oact
iveref
erst
oanyatt
empttodirectacour
seofev
ent
sbef
orei
toccur
s.A
pr
oact
iveact
iontakestheini
ti
ati
vei
ndeal
i
ngwit
hfut
ureprobl
ems.

Busi
nessEt
hics 37
SURESHAKS, SKDEC
Benef
it
sofPr
oact
iveAppr
oach–
01. St
rat
egi
cPl
anni
ngandPol
icyMaki
ng–
Str
ategi
cpl
anningi
sapr oacti
vebusi
nesstact
ic.Thepl
anningprocessi
nvol
vestop–l
evel
managersmeeti
ngper
iodi
cal
lyt
or ev
iewandestabl
i
shgoalsandstr
ategi
esmov i
ngfor
ward.
A pr
oact
iveapproach t
o pol
i
cymaki ng meanscompanyleadersest
abl
i
sh pol
i
ciest
hat
opt
imi
zeworkpl
aceperf
ormanceandmi ni
mizel
egal,
ethi
cal
orf
inanci
alr
isk.
02. HumanResour
ces–
Closel
yal
ignedwit
hstrat
egi
cplanni
ng,pr
oact
iveHRmeansi
ntent
ionalandpl
annedef
for
tst
o
r
ecr
uitt
alentedworker
stofi
ll
specif
icr
olesi
nthecompany.
03. Manager
’sRol
e–
Oneoft hekeystosuccessinaleadershi
pr ol
ei sproact
ivemanagement
.Amanagerhas
gr
eatercont
roloverthesuccessofhist
eam andhi sresourceuti
li
zat
ionwit
hproact
ivel
eader
shi
p.
Upfr
ontandclearcommunicat
ioni
salsoi
mportantforproact
ivemanagers.
04. Empl
oyee’
sRol
e–
Bei
ngpr oact
ivehelpsanempl oyeesucceedinhisr ol
eandi mpresshir
ingmanagersf
or
possi
blepromot i
on.Employeesshowinit
iat
ivebyalway
sfindi
ngt hi
ngstodo,makingdeci
si
onswi
th
confi
dence,seeki
ngtheirowngrowthopport
unit
iesandi
denti
fyinnovat
ivei
mprov
ements.
05. AcceptChal
lenges–
Engagingi
npr
oact
ivebehav
iouri
sli
kel
ytochal
l
enget
het
ime,
ment
alandphy
sicalr
esour
ces
ofempl
oyees.
06. Achi
evet
heGoal
s–
Pr
oacti
vi
tyhasbenefi
tforbothemployeeandor gani
sat
ionmaybethatpr
oactiv
eemployees
engageacti
vel
yinshapi
ngtheirworkpl
aceandor gani
sat
ionsoastobet
terf
itt
hei
rpersonal
str
engths,
faci
l
itat
ethei
rperf
ormance,andsati
sfythei
rneeds.
07. TheBendofTi
me–
Oneofthechiefbenefi
tsofbeingproact
ivei
sthati
thel
psusrecov
er‘
l
ost
’ti
me.Aswewrest
cont
rolf
rom thehandsoft hereact
ivemind,webegintoseethatt
imewasneverthepr
obl
em.We
cometoreal
i
zet hatbei
ngproacti
ve;
wehav eallt
heti
meweneed.
08. Pr
esenceofMi
nd–
Proact
ivi
tyhel
psbringahealthybal
ancebacktoli
fe.I
tbri
ngsconsci
ousnessandpauseto
thereacti
vemi nd.I
tall
owsf orpr
esenceofmi ndt
oprevai
l.Pr
oacti
vi
tyi
sacor ner
stoneofspi
ri
tual
growthandmeani ngf
ulchange.
Fl
exi
bil
it
yandPur
it
yofMi
nd-:
Fl
exi
bil
it
yofMi
nd–
Theconceptof“ fl
exi
blemind”isoneoft hemostval
uabl
eskill
sonecanlearninlif
e.Lif
eis
change.Butresistchange,becauseit
’sscary.Thi
smeanswhenthingschange,wefeelanxi
ety
,fear
.
Unfort
unatel
y,that’
snotpossibleLi
feischange.Exampl
es,
 Wegetnewj
obs.
 Wemeetnewf
ri
ends,
orf
ri
endshi
psf
adeaway
.
 Wear
eputi
nanewsi
tuat
ion,
becauseofwor
kort
rav
el.
 Wel
oseahousei
nadi
sast
er.
 Wel
osef
ami
l
ymember
s,orbr
eakupwi
thagi
rl
fr
iend/boy
fri
end.
Meani
ngofFl
exi
bil
it
yofMi
nd–

Busi
nessEt
hics 38
SURESHAKS, SKDEC
Fl
exi
bil
i
tyofmi
ndr
efer
stot
heabi
l
ityofmi
ndt
ocopeuporadj
ustwi
tht
hesi
tuat
ionofv
ari
ed
needs.
Pur
it
yofMi
nd-:
Pur
it
yofMindisanimport
antdi
vi
nequal
it
yextol
l
edint
heBhagvadGit
a.Pur
it
yisconsi
der
ed
t
odescribeunsel
fi
shness.I
talsodescr
ibeswi
l
li
ngnesstoserv
eothersforthegreat
ergoodof
manki
nd.
Somet
ipsonPur
if
yingt
heMi
ndar
e–
01. Becomi
ngt
heSoul–
I
nordert
opuri
fyy
ourmind,
thebestt
hingt
odoi
sfeelev
erydayf
orf
ewmi
nut
esdur
ingy
our
medi
tat
iont
hatyouhav
enomind.
02. Thei
nnerf
lame–
Bef
or eyoumedit
ate,t
rytoimagineafl
amei nsi
deyourhear t.Rightnowthef
lamemaybet i
ny
andfl
i
cker i
ng; i
tmaynotbeapower fulf
lame.Butonedayitwilldefi
nitelybecomemostpower
fuland
mostil
lumining.Tryt
oimaginethatt
hisflameisi
ll
uminingyourmi nd.
03. Pur
if
yingt
heBr
eat
h–
Befor
ey oustar
ty ou’
reameditati
on,r
epeat“Supr
eme”abouttwent
yti
mesasfastaspossi
ble
i
nor
dertopuri
fyyourbreath.I
tfeel
sthatyouarereal
lygr
owi
ngintothever
ybreat
hofgod.
04. Asser
ti
ngcont
rol
overt
hemi
nd–
Youcantel
lyourmi
nd,“
Ishal
lnotal
l
owy outogoinyourownway
.NowIwantt
othi
nkof
God.”RepeatthenameofGodi nwardl
yoraloud.Thensay
,“Iwantt
ohavepur
it
yinmywhole
exi
stence.
05. Thr
owt
hem out–
Eachti
meanundi vi
nethoughtentersintoy
ourmind,t
hrow itoutofyourmind.I
tisl
ikea
f
orei
gnelement,athei
r,thathasenteredyourroom.Whenanundivinethoughenter
sint
oyourmind,
j
ustcapt
urethethoughtandthrowitintot
heblazingf
ir
eofyouri
nneraspir
ati
on.
06. St
rangl
ingBadThought
s–
Whenathoughcomest
hatisnotpur
e,goodordivi
ne,i
mmedi
atel
yrepeatt
hewor
d“Supr
eme”
v
eryf
ast
.Thesupr
emeismyguru,
yourguru,
everybody
’sguru.

Busi
nessEt
hics 39
SURESHAKS, SKDEC
Uni
t–3: Et
hicsi
nManagement
Et
hicsi
nManagement-:
Managementethi
csistheet hi
calt
reat
mentofemployees,stockhol
ders,owner sandt he
publi
cbyacompany .Acompany
, whil
eneedi
ngtomakeaprofi
t,shouldhavegoodethics.Employees
shouldbet r
eatedwell
,whet
hert heyareemployedher
eorov erseas.Bybeingr espectf
uloft he
envir
onmentinthecommunit
yacompanyshowsgoodet hi
cs,andgood,honestr ecordsalsoshow
respectt
ostockhol
der
sandowners.
Meani
ngofEt
hicsi
nManagement–
Et
hicsi
nManagementcanbedefinedasdecision– makingandl eader
shipinafir
m or
organi
sati
onthati
sbasedoncor
por
atesocialr
esponsi
bil
it
y,sust
ainabi
l
ity
,fair–tradeandsi
mil
ar
concepts.
Et
hicsi
nHumanResour
ceManagement{
HRM}-:
Meani
ngofHRM
Humanr esourcemanagementi sconcernedwiththepeoplewhowor ki
nt heorgani
zati
onto
achi
evetheobj
ectiv
esoft heorganizat
ion. Human r esource management t he process of
accompl
ishi
ngorganizati
onalobjecti
vesbyacqui r
ing,r
etai
ning,ter
minat
ing,dev
elopingandproper
ty
usi
ngthehumanr esourcesint
heor ganizat
ion.
{Acquir
ing:Thehumanr esourcepeoplewithtalentandskil
landmotivat
ionshouldbe
recr
uited.Terminat
ing:Thoseempl oyeeswhoareunrulyanddonotf ol
l
owther
ulesandprocedures
shouldbemadet er
minated.Dev
eloping:Invol
veseducati
ng,tr
aini
ngandmadet
hehumanr esources
toacceptanyt y
peofcurrentorf
uturewor k.
}
Inotherwords,HRM i
stheprocessofpl
anning,or
ganizi
ng,di
rect
ingandcont
rol
l
inghuman
act
ivi
ti
estoachiev
etheorgani
zat
ional
goalandi
ndiv
idualgoal
s.
Accor
dingt
oWendel
lLFr
anch
Humanresour
cemanagementref
erstothephil
osophy
,pol
i
cies,pr
ocedur
esandpr
act
ices
r
elat
edt
hemanagementofpeopl
ewi
thi
nanorgani
zat
ion.
Meani
ngofEt
hicsi
nHRM –
Ethi
csinHRM indicatesthetreatmentofempl oy
eeswit
hordi
nar
ydecencyanddistr
ibut
ive
j
usti
ce.Theethi
calbusi
nesscont r
ibut
est othebusinessgoal
sastheempl
oyeeswil
lfeelmoti
vat
ed
andtheywil
lwor
kwi t
heffi
ciencyandef f
ecti
veness.
I
not herwordsEthi
csinHRM basical
l
ydealswiththeaf
fi
rmat
ivemor
alobl
i
gat
ionsoft
he
empl
oyertowardsemploy
eestomaint
ainequal
it
yandjust
ice.
Ar
easofEt hicsinHRM i ncludebasichumanr i
ghts,civi
landempl oymentfi
ght
.(Ex.
,Job
secur
ity
,feedbackfrom test
s);Safetyintheworkplace;Pr
ivacy;Justi
fi
abl
et r
eatmentt
oemployees.
(E.
g.,
Equityandequal oppor
tuni
ty)
; Respect
,Fai
rnessandhonest ybasedprocessint
heworkpl
ace.
Et
hicalI
ssuesi
nHRM -:
I
. CashandI
ncent
ivePl
ans–
01. BaseSal
ari
es–
TheHRf unct
ionisoft
enpresumedt ojust
if
yahi gherl
evelofbasesal
ari
es,orahi
gher
per
cent
ageincr
easethanwhatcompet
it
ivepr
acti
cecall
sfor
.
02. AnnualI
ncent
ivePl
an–
TheHRmanageri
sof
tenfor
cedtodesi
gnandadmi
nist
ert
op–managementi
ncent
ivepl
ans,
athi
gherrat
est
hanwhatt
hei
ndi
vi
dualdeser
ve.

Busi
nessEt
hics 40
SURESHAKS, SKDEC
03. Long–Ter
mIncent
ivePl
an–
Justaswit
hannuali
ncent
ivepl
an,manyHRexecut i
vehavetheresponsi
bil
i
tyofdesi
gni
ng
andadmi nist
eri
ngt
hefi
rm’sl
ongtermincent
ivepl
ans,buti
nconsul
tat
ionwithCEOandanexternal
consul
tant.
04. Execut
ivePer
qui
sit
es–
Execut
iveper
quisi
tesmaket
heethicalst
andar
doft
heHRexecut
ivedi
ff
icul
tbecauset
hei
r
costi
softenoutofpr
oport
iont
othev
alueadded.
I
I. Per
for
manceAppr
aisal–
Per
for
mance apprai
sallends it
selfto ethi
cali
ssues.Assessmentof an i
ndiv
idual’
s
per
for
manceisbasedonobser vat
ionandj udgement
.HRmanagersar eexpect
edtoobser
vet he
per
for
manceinor
dert
oj udgei
tseff
ecti
veness.
I
II
. Race,
Gender
,AgeandDi
sabi
li
ty–
Thepract
iceoftr
eatmentofempl
oyeesaccor
dingtothei
rrace,et
hnicor
igi
n,sex,
ordisabil
i
ty
hasl
argelybeenstopped.Aframeworkoflawsandr egul
ati
onsar eevolv
edthathassi gni
fi
cantl
y
i
mprovedworkplacebehavi
our.
I
V. Empl
oymentI
ssues–
Whil
ediscr
iminat
ionandhar
assmentsi
tuat
ionrecei
vesmostpubl
i
cit
y,HRpr
act
it
ioner
sar
e
mor
eli
kel
ytofaceet
hicaldi
l
emmasinthear
easofemployeehir
ing.
 Onechall
engecommonl
yencount
eredi
spr
essur
etohi
rear
elat
iveoraf
ri
endofahi
ghl
y
pl
acedexecut
ive.
 Anot
herar
ear
elat
edt
oempl
oymenti
sthatoff
akedcr
edent
ial
ssubmi
tt
edbyaj
obappl
i
cant
.
V. Pr
ivacyI
ssues–
Pr
ivacyissuestoprot
ectaper son’
sprivat
el i
fefr
om intr
usi
veandunwarrantedact
ions.The
employeebeliev
est hathi
sorherr
eli
gious,pol
it
ical
,andsocialbel
ief
saswellaspersonal
li
festyl
eare
pr
ivat
emat tersandshouldbesafeguardedfrom beingsnoopedoranal
yzed.
VI
. Saf
etyandHeal
th–
Muchoftheindustri
alwor
ki shazardous.Thisisbecauseoftheextensi
veuseofhi ghspeed
andnoi
symachi ner
y,producti
onpr ocessesrequir
inghight emper
ature,anincreasingreli
anceon
chemi
calcompounds.Accident
s,i
njuri
esandi l
l
nessar el
ikel
ytooccurunderthesecircumstances.
VI
I. Rest
ruct
uri
ngandLay
off
s–
Rest
ructur
ingandconsequentl
ayoffshav ebecomer el
evantbecauseofpoormanagement,
butincompetencedoesnotbecomeunethical.Thereareet
hicali
mplicat
ionsi
ntheprocessbywhi
ch
ter
mi nat
iondeci
sionsar
emadeandact i
onst aken.
Mar
ket
ingEt
hics-:
Marketingethicsi
stheresear
chofthebaseandstruct
ureofr
ulesofconduct
,st
andar
ds,
and
mor
aldeci
sionsrel
atingtomarketi
ngdeci
si
onsandpract
ices.
Market
inget
hicsi
sanareaofappl
i
edet
hicswhi
chdeal
swi
tht
hemor
alpr
inci
plesbehi
ndt
he
oper
ati
onandregul
ati
onofmarket
ing.
Mar
ket
ingexecuti
veswhotakestrat
egi
cdeci
sionsoft
enfacewit
hethi
cal
condi
ti
onsandt
hei
r
deci
sionsi
srel
atedtoall
sidesofmarket
ingmixaspr
oduct,pri
ce,pl
aceandpr
omoti
on.
Whyet
hicsi
nMar
ket
ingi
srequi
red?
 Whenanorgani
sati
onbehav
esethi
cal
ly
,customersdevel
opmoreposi
ti
veat
ti
tudesaboutt
he
f
ir
m,it
sproduct
s,andi
tsser
ves.Tocr
eatevaluesort
rustwi
tht
hecompany.
Rol
eofEt
hicsi
nMar
ket
ing–

Busi
nessEt
hics 41
SURESHAKS, SKDEC
01. Cr
eat
eTr
ust–
Thepredict
ableansweristhat
,ideall
y,ther
oleofethi
csi nmar keti
ngandadver
ti
singist
o
enablethecreationofat rusti
ng,mutuall
y– benefi
cialr
elat
ionshipbet weenacompanyandi t
s
customers– ar el
ati
onshi
pt hatul
ti
mat el
ydr i
vesacompany ’sfinancialsuccessbyr
ecipr
ocal
l
y
del
iver
ingval
uet ocustomers.
02. Gi
vesDi
rect
ion–
Ethicscanplayaroleinbusinessinwhi chr i
ghtacti
onsshouldbeunder takenpreci
sely
because they ar
er i
ghtacti
ons and notbecause ofany i nstr
umentalvalue t
hey can offer
i
ndependentlyofthei
rri
ght
ness.I
nt hisrespect
,st r
ucturi
ngmar ket
ingandadv er
ti
singstr
ategi
es
wit
hinaspecifi
candmeasur
ableet
hicalfr
ameworki sreasonabl
eanddesir
able.
03. ConsumerOr
ient
ati
on–
Thi
s social
l
yr esponsibl
e pract
ice t
eaches t
hatcompanies shoul
d base pol
ici
es and
operati
onsonaconsumerper specti
ve.Notonl
ywillt
hemarket
erdi
scovert
hecustomer
s’needs,
they
wil
lalso,l
ookatthei
rpl
ansasi ftheyweretheuser
s.
04. I
nnov
ati
on–
I
mprovi
ngpr oductsandser vi
cesini
nnovati
vemannerimprov
est
heexper
ienceforusers.And
i
mprovi
ngmarketingstrategi
es,
polici
es,andbrandpersonal
i
ty,
onanongoi
ngbasiswil
lposit
ionyour
companyasaninnovati
v eexper
iencetoberepeatedandpassedon.
05. Val
ueoft
hePr
oduct–
A companyt hatproducesval
uablepr
oduct
sandf ocusesonoffer
ingthecustomergreat
pri
cing,
excellentexperi
encesandgreatcust
omerser
vicewi
l
l nothav
etor
esorttopushysal
estact
ics
andgimmi cks.
06. SenseofMi
ssi
on–
Aclear
lydef
inedcor
por
atemi
ssi
onwi
l
lhel
pcompani
esbecl
earaboutt
hei
rpl
ans,
goal
sand
pr
act
ices.
07. I
mpactonSoci
ety–
Unl
iketr
aditi
onalmarket
ingfocus,whichwascostr educt
ionandpr ofi
tincrease,sociall
y
responsi
blemarketersar
emor efocusedonprovi
dinggoodsandser v
icesconsumerswant ,gaining
feedbackforimprovementandgivi
ngbacktothecommuni t
iesthathelpedthem becomewhot hey
are.
08. Mor
alMar
ket
ingCompass–
Thisi
s especi
all
yimpor
tanti
n economi
c downt
urns,when unet
hicalpr
act
ices become
t
empt
ing.
Et
hicalI
ssuesi
nMar
ket
ing-:
01. Mar
ketResear
ch–
Marketresearchisthecoll
ectionandanal ysi
sofinfor
mationaboutconsumer s,competi
tor
s
andtheeffect
ivenessofmar keti
ngofmar keti
ngpr ogr
ams.Wi t
hmar ketresearch,busi
nessescan
makedecisi
onsbasedonhowt heresponsesoft hemarket,
leadi
ngtoabett erunderst
andingofhow
thebusi
nesshast oadapttothechangingmar ket.
02. Mar
ketAudi
ence–
Select
ivemarketi
ngisusedtodiscour
agedemandf r
om socall
eddesir
ablemarketsect
oror
di
sfr
anchi
set hem alt
ogether
.Examplesofunethicalmarketexcl
usi
on( sel
ect
ive)ar
epastindust
ry
at
ti
tudestothegay,ethni
cminori
ty,
andobese(plus–size)market
s.
Anotherethi
calissuerel
atest
ov ul
nerabl
eaudiencesi
nemergi
ngmarket
sindev
elopi
ng
count
ri
es,asthepubl
ictheremaynotbesuff
ici
entl
yawar
eofskil
l
edmar
keti
ngpl
ays.

Busi
nessEt
hics 42
SURESHAKS, SKDEC
03. Et
hicsi
nAdv
ert
isi
ngandPr
omot
ion–
Et
hical
pit
fal
l
sinadv
ert
isi
ngandpr
omot
ional
cont
enti
ncl
ude-
 Issuesovertr
uthandhonest
y–I nthe1940sand1950s,tobaccousedtobeadver
ti
sedas
promotingheal
th.Todayanadv
erti
serwhof ai
l
stotellthetruthnotonl
yoff
endsagainst
mor al
i
tybutal
soagainstt
hel
aw.
 Issueswi t
hv iol
ence,sexandpr of
ani
ty– Sexualinnuendoisamai nst
ayofadver
ti
sing
content,andy etisalsoregardedasaf orm ofsexualharassment
.Viol
enceisanissue
especial
lyforchi
ldr
en’
sadv er
ti
singandadver
ti
si
ngli
kelytobeseenbychil
dren.
 TasteandCont
roversy– Theadv er
ti
si
ngofcer tai
nproductsmayst r
ongl
yoff
endsome
peopl
ewhil
ebei
ngi nt heint
erest
sofot her
s.Examplesi
nclude;f
emi
ninehygi
enepr
oduct
s,
hemorr
hoi
dandconstipati
onmedicati
on.
 Negati
veadver
tisi
ngtechni
ques,suchasatt
ackads–Innegat
iveadv
ert
isi
ngtheadver
ti
ser
hi
ghli
ghtst
hedisadvant
agesofcompeti
torpr
oduct
srat
hert
hantheadv
antagesoft
hei
rown.
04. Del
iv
eryChannel
s–
Dir
ectmarket
ing isthe mostcontrov
ersi
alofadver
ti
si
ng channel
s,par
ti
cul
arl
y when
appr
oachesar
eunsoli
cit
ed.TVcommerci
alsanddir
ectmai
lar
ecommonexamples.
05. Decept
iveAdv
ert
isi
ngandEt
hics–
Thi
sf or
m ofadv ert
isi
ng i
snotspeci fi
ct o one tar
getmarket,and can someti
mesgo
unnoti
cedbyt hepubli
c.Thereareseveralwaysinwhi chdecept
ivemarket
ingcanbepr esent
edt
o
consumers;oneofthesemethodsisaccompli
shedthroughtheuseofhumor.
06. Ant
i–Compet
it
ivePr
act
ices–
Bai
tandswi
tchisaf orm offr
audwher
ecustomersare“
bai
ted”byadver
ti
si
ngf oraproduct
orservi
ceatalowpr
ice;second,thecust
omer
sdiscov
erthatt
headv
erti
sedgoodisnotavai
labl
eand
are“swi
tched”t
oacostl
i
erpr oduct.
07. Et
hicsi
nPr
ici
ngofPr
oduct–
Thepri
ceofapr oductorser
vicepl
aysalar
gepar ti
nhowwel litsel
l
s.Producersandr
etai
l
ers
pr
act i
ceethi
calpri
cingst rat
egiestoearnprofi
tswithoutdefraudi
ngcompet i
tor
sorconsumer s.
Despitethat,competi
tor’s pri
ce,conveni
ence,avai
l
abi l
i
ty and otherf act
ors aff
ectconsumer
i
mpr essi
onsoffai
rpri
cing.
Et
hicalAspect
sinFi
nanci
alManagement-:
Whatdoesf
inancemeans?
Fi
nancemeansf
undorot
herf
inanci
alr
esour
ces;i
tdeal
swi
thmat
terr
elat
edt
omoneyand
mar
ket
.
Fi
nanceisthesetofacti
vi
ti
esthatdeal
swithmanagementoffunds.I
thel
psi
nmakingthe
deci
sionlikehowtousethecol
lect
edfund.I
tisal
soanartandsci
enceofdeter
mini
ngi
fthef
undsof
anorganisati
onar
ebeingusedinari
ghtmannerornot.
WhatdoesEt
hicsi
nFi
nancemeans?
Ethi
csmeansdoi
ngri
ghtt
hingst
oothers,bei
nghonesttoot
her
s,bei
ngf
airandj
ust
icet
o
ot
her
s.Ev
enethi
csi
nfi
nancei
sacompart
menttogeneral
ethi
cs.
Et
hicsinf
inancemayvaryfrom onei
ndustr
ytoanot
herindust
rybutever
yonei
sli
abl
etodo
thei
rworkatutmostgoodf ai
th.Peopl
ewhoi nvol
vedinfi
nanceactiv
ityhav
et oser
vebot
hthei
r
companyandthei
rcustomer
satutmostgoodfai
th.

Busi
nessEt
hics 43
SURESHAKS, SKDEC
CodeofEt
hicsi
nFi
nance–
a) Pr
otect
ingt
hef
inanci
ali
nter
estofcl
i
ent
s.
b) Conduct
ingbusi
nesswi
thhi
ght
ranspar
ency
.
c) Conduct
ingneedsanal
ysi
sbef
oreanypr
oductorser
vicer
ecommendat
ions.
d) Respect
ingandmai
ntai
ningconf
ident
ial
i
tyofanyi
nfor
mat
ionent
rust
ed.
e) Useofonl
ysalesil
l
ustrat
ionst
hatcompl
etel
yaccur
ateandcompl
i
antwi
thst
ateandcent
ral
gover
nmentr
egulat
ions.
Et
hicalI
ssuesFaci
ngFi
nanci
alManager
s-:
01. Fr
audul
entFi
nanci
alRepor
ti
ng–
Fraudulentf
inanci
alreporti
ngisthemi sstat
ementoft hefinancialst
atement
sbycompany
management .Usual
ly,t
hisi
scar ri
edoutwitht
hei nt
entofmi sleadi
ngi nvest
orsandmaintai
ningt
he
company’ssharepri
ce.While,t
heef f
ectsofmisleadingfi
nancialreport
ingmayboostt hecompany’
s
stockpr
iceintheshort–term,thereareal
mostalway sil
leff
ectsi nthelongrun.
02. Mi
sappr
opr
iat
ionofAsset
s–
Mi sappropri
ati
onofasset
sistheuseofcompanyasset sforanyotherpur
posethancompany
i
nter
ests.Ot herwi
seknownasst eal
ingorembezzl ement,misappropri
ati
onofassetscanoccurat
near
lyanyl evelofthecompanyandtonearlyanydegree.Forexampl e,aseni
orlev
elexecut
ivemay
char
geaf ami l
ydinnertot
hecompanyasabusi nessexpense.
03. Accur
acy–
Acompany’
sf i
nanci
almanagerensur
est
hatal
lfi
nanci
alpubl
i
cat
ionsaccur
atel
yandf
air
ly
r
efl
ectt
hefi
nanci
alcondi
ti
onofthecompany.
Forexampl
e,theethicscodeoft heUnit
edStatesPostalServi
cerequir
esseniorf
inanci
al
managerstomaint
ainaccurater
ecordsandbooks,mai nt
aini
nternalcont
rolandpreparef
inanci
al
documentsi
naccor
dancewithgeneral
lyaccept
edaccounti
ngpr
inci
ples{GAAP}.
04. Tr
anspar
ency–
Transpar
encymeansexplaini
ngfinancialinf
ormat
ionclear
ly,especial
lyforthosewhoaren’
t
f
amili
arwiththecompany ’
soperati
ons.Financialmanagersshouldnothi de,obscureorother
wise
r
enderrel
evantfi
nanci
ali
nformat
ionimpossibl
ef orordi
nar
ysharehol
der stounderstand.
05. Ti
mel
iness–
Ti
melyfi
nanci
ali
nfor
mat i
onisjustasimport
antasaccurat
eandtr
anspar
entinf
ormati
on.
Management
,inv
estor
sandotherst
akehol
dersr
equi
reti
melyi
nfor
mationt
omaketheri
ghtdeci
si
ons.
06. I
ntegr
it
y–
Fi
nancialmanagersshouldstri
veforuni
mpeachabl
eint
egr
it
y.Cust
omers,shar
ehol
ders,and
empl
oyeesshouldbeablet otr
ustafinanci
almanager
’swor
ds.Manager
sshoul
dnotall
owpr ej
udice,
bi
asandconfl
ictsofi
nterestt
oinfl
uencethei
ract
ions.
Pr
ofessi
onalEt
hics-:
Meani
ng–
Pr
ofessi
onalethi
csencompasst hepersonal
,organizat
ionaland cor
poratestandardsof
behavi
ourexpectedofprof
essi
onals.Prof
essi
onalsandthosewor ki
nginacknowledgedprofessi
ons,
exer
cisespecial
istknowl
edgeandski l
l
.How theuseoft hisknowl edgeshoul
dbegov er
nedwhen
provi
dingaservi
cetothepubl
iccanbeconsider
edamor alissueandi st
ermedprofessi
onalethi
cs.

Busi
nessEt
hics 44
SURESHAKS, SKDEC
Pr
ofessi
onalCodeofEt
hics–
1) St
ri
vetoachi
evethehighestqual
i
ty,
eff
ect
ivenessanddi
gni
tyi
nbot
hthepr
ocessand
pr
oduct
sofprofessi
onalwork.
2) Tomai
ntai
nahi
ghl
evel
ofcompet
enceandknowl
edgei
none’
sfi
eld.
3) Toknowandr
espectl
awsper
tai
ningt
opr
ofessi
onal
wor
k.
4) Acceptandpr
ovi
deappr
opr
iat
epr
ofessi
onal
rev
iew.
5) I
mpr
ovepubl
i
cunder
standi
ngofcomput
ingandi
tsconsequences.
6) Honourcont
ract
s,agr
eement
sandassi
gnment
s.
7) Gi
ve comprehensi
ve and t
hor
ough evaluat
ions ofcomput
ersy
stems and t
hei
r
i
mpacts,
incl
udinganal
ysi
sofpossi
bler
isks.
8) Oneshoul
daccesscomput
ingandcommuni
cat
ionr
esour
cesonl
ywhenaut
hor
ized
t
odoso.
9) Tor
ejectbr
iber
yinal
li
tsf
orms.
10) Todi
scl
oseanyconf
li
ctsofi
nter
est
s.
11) Whengivent
her
esponsi
bil
i
tyf
oragr
oup,
oneshoul
dpr
omot
egoodpr
inci
plesamong
t
hegroup.
Technol
ogyEt
hics-:
“
Ethi
csofTechnol
ogy
”ref
erst
otwobasi
csubdi
vi
si
ons;
i
. Theethicsinv
olvedi
nt hedev
elopmentofnew t
echnology–whetheri
tisal
way
s,nev
er,or
cont
extual
lyri
ghtorwrongtoi
nventandi
mplementatechnol
ogi
cal
innov
ati
on.
i
i. Theethi
calquest
ionst
hatar
eexacer
bat
ebyt
heway
sinwhi
cht
echnol
ogyext
endsorcur
tai
l
s
thepowerofindi
vi
dual
s.

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ALL COURSES IALL SEMESTERS I NOTES I

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