ETHICS - Study of good or bad .

In other woYds,
ethics is the study of moYals and moral
values

Ethics focus on standards,rules&code of

conduct that goveyn the behavior of
individual and gDups
Standard - Aset of auality which l never compromise
at any cost

Code of Conducb - Ghuide (ines or sometning unique

OY 8pecific in nature that belong
to a gYoup

Ethics is Concer ned with how peop le think about

and benave towards each other, how the consequence
of theiY decisior. and behavior împact human life.

Compensation Act - 1423

Trade Union Act - 1926
Payment of Waqe Act - 1436
Industrial Employ ment Act - 1q46
Industrial Dispute Act - 1947
Factors Act - 1q48
ESI Act - 1q4 8

Minimum Wage Act - 1q48

Materrnity Act - 1961
Payment of Bonds Act - 1965
Gratuity Act - 1472
Equal Remuneration Act -1476
Consumer Protection Act -19 86
Child Loabour Act -1486
Sexual Harrassment against Women at - 2013
Work place

Law Ethics
1 Formal Rules 1: Moral Principles

2. Legislatives make law 2.PhiloSophers , religibus thinkers,

professibnal groups
3. Interprete dby judiciary 3.Individuals
4.followed Compulsarily 4.Freedom
5 Based on 5 Generally applicable
country
6. Aims at preventing 6 Aims at making people
misconduct Tesponsible

7 Disobeyance of law is 7-hose who disobey ethics

are called immorals
acrime

Parame ters Morality Ethics

Origin mos( Grre ek) Ethos( Gre ek)

Customs character
Meaning
s0cietylgroups| individuals
Design
religion
Individual
BehavioY Gr oup

Giroup|socie ty Individual
Responsibility
No Yes
Freedom
Consistent
Consisterncy Varying
Business Possible
Applications Impossible
utilitarian heory
Proposed by Je ermy Bentherm and Jonn Stuart Mll
An action is good or bad when it produces
reates tt
amount of goodne55 to greatest number of people
foY this it qives More emphasis 0n resultS 0Y Consequence or er
his kind of theory is aiso known as teleologicol
consequentalist the ory
There are two types of utilitarian Iheory .

" Act utilitarian heory

2biw Accovdina to this, an action is YIght when
it produces tne greatest balance of pleas ure
DD over pain foY the greatest number of people
Propos ed by. JeTemy Bentha
Rule Utilitarian heovy
According to this theory ,an action is righs
if it conforms to a set of Tules and produ cs
plegsure over pain for the qrea test number of
people Poposed by Tohn Stuart Mill
Deontaiogist heory
roposed by Immanyel Kant. Theve aye certain kinds
0f act which we. ouaht to do and cevtain other
of acts which we ouaht to avoid . For him,
Kinds 0f
to
auty is MDYe impprtant . He insist thar an ac tion
theory
be moral must be done duty sake .1his
are
acknowledqes that actions and their outcomes
not
independent things. In other words, duty is
what is pleasant and bene fcial but Ya the
based on
the
upon obtigation e itsel f

Self Eqoist Ethical Egois

an ethicoal theory that treats self-jnteres
It is
morality Egpism says tnat an
0s the foundation of
vignt if it promotes Dr produces a
act is morally
an orqaniza bion 's long term
person's or qroup 's oY
stands for self promotion tr thr pbjecHs
benefit. It
Space for altrusm
lt has no space
Vittue Ethics
Proposed by Aristotle .
It is concened with charactey based on vittues
hese virtues can be kant and, rerained thaough
Involvement, understanding and practtce -1his learning
within an individual 's family and communi
ta he place
interacts throughout his Iife
in which he
ethical person
ViYtues are considered as eKamples 0f an
generosity , courage self -(ontrol, hones ty,vespect,
are
fairness, eguality, modesty ,justice etc
1herefore, bygonizathönal manages should learn and
Yetain these viYtues i thelr life

kthcal knlighment
According to this theory, A company's prime
obective is to make profit But this qoal can be
achieved by fulfilling Its social and envitonmen tal
responsibilities- It believes that companjes can
increase their brand value if they identity
and mespond to needs of socie ty
Secure and mantain
In couYse of time ,it will Caws to
worktorce
attrac and re
market share, attract tain a skile d
Ye tain
and ensure natural esource for future

The stakenolder hebry

Proposed by Edward Freeman
It cleariy spe aks that managers should promote

intere s ts Of all st akeholders . This stakehol der is

the
divided into primary and second ary
CreditOrs
Primar y - shareholders,employees ,Guppliers;
and cus tomers

SecondaY y - Media , consumer, qovernment judiciary,

SDciety , trade unipn, finan cial community.
local commu nity ,envion ment etc

This thepry insists that managers should be

obliqate d to partially sacrifice the inter es ts of

shareholders for the benefit of Dbner stake holders Jt
is a call to the overall social res ponsibi lits of the
a wide
0YQ anizati on and this theory has received
Qcceptance among ethictsts
Gtolden Tule of ethics - loVe otners as you are pcRc
to be loved by others

Relevance ef Etnics in Business

°It is the part and parcel of busines 5

" Creating good brand image

business
"Hel ps for long term existence in
Attyact inves tors
Protects the uinerable
shDuld
Advertisement and promotional activities
be ethical

between business & environment should be

"Rela tion
ethical.

Ethical Leadership
whicn a.person influences
It is a way of life in
in the
individuals to achieve Comnon goals
a qroup of
set of moYa! principles,
O7gam2ation on the basis of
standards, values and noTMS
E thical Qualities 0f Leaders
Being trustworthy
" Integrity, promtse keeping
"Being aman of justice
. Being honest - telling truth
Focus on team ouilding
Respect others - tisrening, value uther's Conmibution, 9enerosiy

Ethical Decision Making

It is a cogritive process Of evaluating and choosing
decision Wt moral principles, standards , rules and
an
viYtues in oYdeY o Solve the ethical pyoblem of
organization
Steps:
1. ldentifying the problem
2. Grathiering information
3. Generating alternatives

t. Evaluating
5. Selection
6 Action
7. Feedback .
 Financial Management
It is a process of plannira, 0Ya anizing, controlling9
and monitoring financial gesouYces with a vie) to
achieve its orgaizatoral obje cives
Financial Statement
It is a TepoTt prepared ay a company's maranmnt
financia! performance at a point
t0 present the
of ttme .
Principle of Conservatism8
speaks about not anticipating any futuYe 12veny
lt
but provide for all possible expenses and losses
It stares that it is the qen eral cuncept of
liabllities as soon as pessble
TeCOgnizing expenses arnd
ag uncertaintes abcut the outcome out
when there
income and assets when they
only hecognize
assured of being received
are
"Exaggeration of Nevenue

· Concealing f liabilities
"Frauduent Asset Valuatiou .
Churning
Excessive oY inappropria te trading for clYents
broker who las Control of all the
account bu a
commission
Qccount with the intention of generatBng
Deception
lIt is very attractive but false presentatun Of
tinancial assets, tangactions by manipulatets
whose aim is t pocket those iVestorS Savings

Insider hedhirng
refers to trading on price sernsitte
ernplyees or individuals
information bycmpans
coinected tie fim
witi
Closely
Types uf Bank Fraud
Marketing Management
It is a process by which individuals| groups dbtain
what they need and want thrOugh creabing, offering
and exchanging prOducts and services
4P's
Product
"Price
" Place
Promobon
Jho
-Penetrating price -low price. Eg-
Skimming price - hgh price. eg-cD
Premium price
Price
F Psychologicalprice - 499 instead of Zlo00
Bundle price
.oiuging prlce -3 ines nomal priçe Eo : Ma sk& sarngu
during pandt m
Kictback
Products offered as qift witn tne motive like
omottng theiy prod
 Information Technoloqs
1. No value for loyalty
2.
Shating of confidential information of the clients
with unauthorized people
Credit data emall,tor data, credit ca1d no,
education details, medical data
3Phishing
Biggest threat for internet banking . Phisher set up
foke websites and email and spam email inboxes wthi
official looking ernalls toat reads Sormething ike
nequines you to login and c¡nfirm some details
ita ckng
Hackers disrupts the flow of informaton on the inlere1
mey publish false infoxmatiorn and dinect the vi'siors
other sites lhey send virus which may affect
to
your computer .
5 Addictiorn
6. Cyber stalking
defamatin
terreri^m
8
6 Use of in ternet to contact, harass,tthrea ten another
berson in an unsolicited manner

7. t can Cause damage to anotner peson 's name and

different
Tepuration in the sociehy by namma ting
Sturi es

8. act against the state using cuber mean3

q. uork cultura| enviYonmeint
Environmental Maagement
I Kole Df public . Placima da,- Cocalcda
2- Role of media - Endosulfan
3 Role of environental giOups
mercury theTmometer _
nreen peace -HUL ’ mercury
Shola for est
4Role of companies
5 Role of govt
6G Role bf Legislation s
 Recent challenges ssues of Ethics
1 Discrimination
En7on
2. Unethical accounting > Cooking the books Satyan

3- tarrossment <Racism
Sexigm > abusing teasing, bullying ,staving

4 Corporate Espionage >Spy uonking

5- favori tism &Nepotism
6 Unethical Advertisement - legal1zed lie - HC Wel
|7: Privacy lssues
8-Social Media

Cultural Displacement
It is a concept that describes the process of
a culture either bing physically seperated from
having the imposi toh of another
its roots or
e0lace that culture. As a esult,
Culture or
lose thei orig1nal iolen tity aue to
they may
of nieracthng with other otho culti
the pressure
Corporate Social Responsi bility
un tary action of a company contribute to
Vol
society and a ceaner enviYonment
a better
corporahe citizenship. Four types
Also known as
of CSR Acivities.
) Economic responsibiliy
i) Philanthropic responsibili ty
i)Ethical & Human Rights responsibi lity
i) Envi ronmental responablity

Discriminatiorn in WoTkplace
Harrassment and
Based Dn
"age
" diability
(women ae paid less)
"Equal pay
. Race.
 Non disclosure and Corporate Esplorage
Employees are made to sign Non Disclosure lre
ments
Corporate Espibnage - employees stealing corfident
information of the ompany
Corporate Ghovernance
Framewpr k of Yules and practices by which a
board of directors ensure accountability, fairness
ecurity
CG Committees

Cadburs Committee
Paul Ruthman Committee
Greenbury Comneittee
"Hampel Committee
. Turnbull Commitee
 CSR
It is a CDntinuing commi tment by the busines s to

behave ethicals

CSR of Tata Motors

7 pillars
"Aarogya
"Vidhyadhanam
" Kaushalya
. Vasundhara
" Amrutd hara
" Aadhar
" Seva