INTERNAL ASSIGNMENT

Name of the candidate: MEHAK SHARMA Enrollment no. : 05215903911 Course: MBA Batch: 2011-13 Subject: MANAGEMENT PROCESS AND ORGANIZATION BEHAVIOUR Subject code: MS-101 Topic of assignment: Can Profit and Business Ethics co-exists in the organization, critically examine this statement and supplement the answer with minimum three live examples of the same. Subject Teachers name: MS. SONIKA BHOJ

1. CONCEPT OF BUSINESS ETHICS:

Business ethics refers to the moral principles which should govern business activities. They are concerned with determining what is right and what is wrong while doing business. Business ethics provide a code of conduct for managers. The purpose of business ethics is to guide the managers and employees in performing their jobs. They lay down norms of behavior for the business and guide it in undertaking socially responsible activities. Few examples of ethical business practices are: To pay taxes to the government honestly. To give fair treatment to the workers. To ensure genuine and safe products to public.

A business is a part of society and expect of profits the business is also their to serve society. Thus, business should be guided by the principles which are considered right by the society. Business ethics can also be said as an umbrella term which covers all business practices which are desirable from the point of view of the society. Ethics aim at perfection in the conduct of life. It emphasize on making a business honest, just and responsible. They create self-imposed discipline on the part of business firms.

Some examples of unethical practices are: adulteration of goods, sale of duplicate products, pollution of environment, exploitation of workers etc.

Nowadays, business ethics have gained importance because of following reasons: Business is a part of society. Social values must become the guiding principles for doing business. When an organization fails to behave in accordance with the societys expectations, it may lose its image, market share, and even its right to exist. Various laws reflect the ethics of society. If a business is not ethical, it will attract the intervention of government and courts of law.

Consumers are no longer at the mercy of business firms. They have organized associations to discipline the business firms. To avoid any conformation, it is advisable for a business to follow ethical practices.

2. STATUS OF BUSINESS ETHICS IN INDIAN CORPORATE WORLD:

For those who are working in the business, they are expected to practice their ethics properly. Clients look to them to provide impartial information about their company and industry. The community expects job to be performed to the highest degree of accuracy and ethical standards. But does it actually happen as expected? Somewhere along the way, as one chase their goals, deadlines, targets or simply their daily to-do lists, they tend to forget the real issues in the world outside their windows. India Inc. has moved away from regulation since early 1990's and with the markets coming into their own, it became important to have a proper set of ethics to be followed by businesses. Board of Directors, has to ensure accountable autonomy by fostering its own culture which includes promoting constructive dissatisfaction, actively monitoring the firm's risk policies and practices, not contingent on having considerable expertise in the areas concerned and avoiding soft conflicts. Scandals have been taking place which made the need of following the ethical standards more important as well as the guidelines to be strict. Dis-connect between an employee and the ground realities widen as one moves up the ladder. Today, businesses are very target driven. At each level, targets are set and are interlinked. The performance of one's superior is determined by one's own performance and this process goes on till the very top level. Till such time one meets or surpasses the targets no questions are asked on the way of achieving those targets. It is only when the shortfall occurs, explanations are demanded. In nutshell, only the end and not the means is what matters. In such an environment, where targets are means to not only success but more importantly survival, ethics boil down to a personal call. These calls have to be taken every day by millions of people in real time with targets and survival at top of the mind. Corporate entities in India stand out in terms of complexities in the ownership structure. The direct ownership of promoters is quite substantial and if that is not enough, the promoters

indirectly have tremendous equity in and control of the firm. It was believed that with the capital market reforms initiated in 1991, the dominance of promoters in the firms will lessen down. But unfortunately the last decade of the 20th century was marred by scams. The corporate entities went in for private placements making use of the relaxed regulations. These developments made the public spooky. In the last few years SEBI has put its foot down to crack down on the perpetrators and raised the disclosure standards leading to a renewed interest in the markets. For example: Giants like TCS and Infosys have set global benchmarks in reporting standards and have implemented ethics in the fabric of their organizations. With capital markets becoming dominant as the time passes and as organizations increasingly care to heed the market and keep the investors happy, it is safe to assume that the Indian corporate entities are veering away from organization-control to market-control approaches towards ethical standards

3. RELATIONSHIP BETWEEN BUSINESS ETHICS AND PROFIT IN AN ORGANIZATION:

The impression of most people is that ethics and profits are mutual, and that if a company is ethical, it may forget about making profits. People are also seemed to believe that a profitable company must necessarily be unethical. This is like saying that a company can make profits only through unethical means. Nothing can be more to have ethical companies made profits, but more importantly it is, only ethical companies which discharged its social responsibilities, that have survived competition and turbulent changes through the years and have contributed to social welfare and have contributed to flourish undiminished. In fact, we can also say that it is unethical to not to make profits because every business is existing with its foremost objective to make profits and it is unethical for any business to exist without making any profits and going into losses. Because, a company which cannot make profits and makes losses, improperly utilizes scarce national resources and cannot pay back to creditors, does not make wealth for its shareholders, make huge liabilities, promotes inefficiency and most importantly, cannot, at any cost discharge its social responsibility, meet its welfare commitments. Thus, we cannot say that business ethics are contrary to profits rather they became

the first and the most important thing for any business to be achieved, because without it a business cannot work in the ethical direction. But how much profits to make, the means and methods of making it, and at what cost- that is the ethical question.

4. CAN PROFIT AND BUSINESS ETHICS CO-EXISTS IN THE ORGANIZATION:

Is making a profit ethically good, or bad, or neutral? Or, better still, are there situations in which making a profit is either good, or bad, or neutral? Profit is often the subject of criticism. After all, everyone knows that saying about money being the root of all evil. But here comes the question that can profit and business ethics co-exist in the business organization. According to me, yes profits and business ethics can co-exist in the organization because it is not so that for making profits one has to follow unethical practices. Business exists in society for making profits but also to serve society because society is the one which is giving profits to the organization. Thus, it becomes the responsibility of the managers to see that they are making profits while working ethically. But its not that a business cannot make profits while working ethically. We have many such examples from our corporate world by which we can show that a business can make profits while working ethically.

5. COMPANIES WHICH IS EXISTING WHILE WORKING ETHICALLY:

ADITYA BIRLA GROUP: this group has been serving society in many ways and controls the companies like hindalco, idea cellular, Grasim etc. they have been following and maintaining great level of ethics in their organization and they have also been making profits. The company is doing well and to proof that they are ethical we can say that Kumar Mangalam Birla was himself the chairman of corporate governance committee. HDFC (HOUSING DEVELOPMENT FINANCE CORPORATION): as per the latest report by etisphere HDFC has been in the list of having great ethical standards but also have been

making profits. Thus, it is an example of company which is able to co-exist with profits and ethics. PEPSI CO.: the company headed by Indira Nooyi was also included in the list of ethical companies by the report of etisphere and pepsi is also making profits. So we can say that, pepsi is also been able to manage to gain profits and maintain ethical standards.

6. CONCLUSION:
Thus, from above research we can conclude that profit and business ethics can co exist in the organization. It is so because a business organization is the one which exist because they want to make profits but it is not so that profits can only be made by unethical practices. Profits can also be made by following the ethics of the business. And it is equally important to follow the ethics so that a company can make profits but also serve the society in a better way besides its goods and services offered to customers.

REFERENCES:
WEBSITES:
http://EzineArticles.com/1664279 on 27th October 2011 at 11:45 am

BOOKS:
Managerial Process and organization behavior T.N Chabbra

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RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES INTERNAL ASSIGNMENT Name of the candidate: MEHAK SHARMA Enrollment no. : 05215903911 Course: MBA Batch: 2011-13 Subject: MANAGEMENT PROCESS AND ORGANIZATION BEHAVIOUR Subject code: MS-101 Topic of assignment: Can Profit and Business Ethics co-exists in the organization, critically examine this statement and supplement the answer with minimum three live examples of the same. Subject Teacher's name: MS. SONIKA BHOJ 1. CONCEPT OF BUSINESS ETHICS: Business ethics refers to the moral principles which should govern business activities. They are concerned with determining what is right and what is wrong while doing

business. Business ethics provide a code of conduct for managers. The purpose of business ethics is to guide the managers and employees in performing their jobs. They lay down norms of behavior for the business and guide it in undertaking socially responsible activities. Few examples of ethical business practices are: To pay taxes to the government honestly. To give fair treatment to the workers. To ensure genuine and safe products to public. A business is a part of society and expect of profits the business is also their to serve society. Thus, business should be guided by the principles which are considered right by the society. Business ethics can also be said as an umbrella term which covers all business practices which are desirable from the point of view of the society. Ethics aim at perfection in the conduct of life. It emphasize on making a business honest, just and responsible. They create self-imposed discipline on the part of business firms. Some examples of unethical practices are: adulteration of goods, sale of duplicate products, pollution of environment, exploitation of workers etc. Nowadays, business ethics have gained importance because of following reasons: Business is a part of society. Social values must become the guiding principles for doing business. When an organization fails to behave in accordance with the society's expectations, it may lose its image, market share, and even its right to exist. Various laws reflect the ethics of society. If a business is not ethical, it will attract the intervention of government and courts of law. Consumers are no longer at the mercy of business firms. They have organized associations to discipline the business firms. To avoid any conformation, it is advisable for a business to follow ethical practices. 2. STATUS OF BUSINESS ETHICS IN INDIAN CORPORATE WORLD: For those who are working in the business, they are expected to practice their ethics properly. Clients look to them to provide impartial information about their company and industry. The community expects job to be performed to the highest degree of accuracy and ethical standards. But does it actually happen as expected? Somewhere along the way, as one chase their goals, deadlines, targets or simply their daily to-do lists, they

tend to forget the real issues in the world outside their windows. India Inc. has moved away from regulation Students Paper: from regulation since early 1990's and with the markets coming into their own, it became http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance toward latitude since early 1990's and with the markets coming into their own, the governance style , it became important to have a proper set of ethics to be followed by businesses. Board of Directors, Students Paper: of Directors, has to ensure accountable autonomy by fostering its own culture which includes promoting constructive dissatisfaction, actively monitoring the firm's risk policies and practices, not contingent on having considerable expertise in the areas concerned and avoiding soft conflicts. Scandals have http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance venerable interface has to ensure accountable autonomy by fostering its own culture which includes promoting constructive dissatisfaction, actively monitoring the firm's risk policies and practices, not contingent on having considerable expertise in the areas concerned and avoiding soft conflicts. Enron and . Scandals have been taking place which made the need of following the ethical standards more important as well as the guidelines to be strict. Students Paper: be strict. Dis-connect between an employee and the ground realities widen as one moves http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance

 or Organization's Dis-connect between an employee and the ground realities widen as she moves Students Paper: widen as one moves up the ladder. Today, businesses are very target driven. At each level, targets are set and are interlinked. The performance of one's superior is determined by one's own performance and this process goes on till the very top level. Till such time http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance as she moves up the ladder. Today, businesses are very target driven. At each level, targets are set and are interlinked. The performance of one's superior is determined by one's own performance and this process goes on till the very top echelons. Till Students Paper: top level. Till such time one meets or surpasses the targets no questions are asked on the way of achieving those targets. It is http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance top echelons. Till such time one meets or surpasses the targets no questions are asked on the way of achieving those and disconnect . Students Paper: those targets. It is only when the shortfall occurs, explanations are demanded. In nutshell http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance huge role. It is only when the shortfall occurs, explanations are demanded and then

. Students Paper: are demanded. In nutshell, only the end and not the means is what matters. In such an environment, where targets are means to not only success but more importantly survival, ethics boil down to a personal call. These calls have to be taken every day http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance short shrift. In nutshell, only the end and not the means is what matters. In such an environment, where targets are means to not only success but more importantly survival, ethics boil down to a personal call. These calls have to be taken everyday by every day Students Paper: every day by millions of people in real time with targets and survival at top of the mind. Corporate entities http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance taken everyday by millions of people in real time with targets and survival at top of the mind. The line between . Students Paper: the mind. Corporate entities in India stand out in terms of complexities in the ownership structure. The direct ownership of promoters is quite substantial and if that is not enough, the promoters indirectly have tremendous equity in and control of the firm. It was http://www.simama.org/article/business-ethics-in-the-world-of-corporate-

governance Governance Evolution Corporate entities in India stand out in terms of complexities in the ownership structure. The direct ownership of promoters is quite substantial and if that is not enough, the promoters indirectly have tremendous equity in and control of the firm through the Students Paper: and control of the firm. It was believed that with the capital market reforms initiated in 1991, the dominance of promoters in the firms will lessen down http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance holding companies. It was believed that with the capital market reforms initiated in 1991, the dominance of promoters in the firms will pare. But lessen Students Paper: will lessen down. But unfortunately the last decade of the 20th century was marred by scams. The corporate entities went in for private placements making use of the relaxed regulations. These developments made the public spooky. In the last few years SEBI has put its foot down to crack down on the perpetrators and raised the disclosure standards leading to a renewed interest in the markets. For example: Giants http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance will pare. But unfortunately the last decade of the 20th century was marred by scams. The corporate entities went in for private placements making use of the relaxed regulations. These developments made the public spooky. In the last few years SEBI has put its foot down to crack down on the perpetrators and raised the disclosure standards leading to a renewed interest in the markets. The corporates are example:

Students Paper: For example: Giants like TCS and Infosys have set global benchmarks in reporting standards and have implemented ethics in http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance enhanced credibility. Giants like TCS and Infosys have set global benchmarks in reporting standards and have implemented CSR in ethics Students Paper: implemented ethics in the fabric of their organizations. With capital markets becoming dominant as the time passes and as organizations increasingly care to heed the market and keep the investors happy, it is safe to assume that the Indian corporate entities are veering away from organization-control to market-control approaches towards ethical standards http://www.simama.org/article/business-ethics-in-the-world-of-corporategovernance implemented CSR in the fabric of their organizations. With capital markets becoming dominant as the time passes and as organizations increasingly care to heed the market and keep the investors happy, it is safe to assume that the Indian corporate entities are veering away from organization-control to market-control approach toward corporate governance. Right ethical standards 3. RELATIONSHIP BETWEEN BUSINESS ETHICS AND PROFIT IN AN ORGANIZATION: Students Paper: AN ORGANIZATION: The impression of most people is that ethics and profits are mutual, and that if a

http://www.slideshare.net/simply_coool/b-ethics-final Morality Frequently the impression of most people is that ethics and profits are mutual, opposed to Students Paper: are mutual, and that if a company is ethical, it may forget about making profits. People are also http://www.slideshare.net/simply_coool/b-ethics-final one another and that if a company is ethical, it may forget about making profits. People also frequently are also Students Paper: are also seemed to believe that a profitable company must necessarily be unethical. This is like saying that a company can make profits only through unethical means. Nothing can be more to have ethical companies made profits, but more importantly it is, only ethical companies which discharged its social responsibilities http://www.slideshare.net/simply_coool/b-ethics-final also frequently seem to believe that a profitable company must necessarily be unethical. This is like saying that a company can make profits only through unethical means. Nothing can be more have ethical companies made profits, but more importantly it is, only ethical companies which discharged its 4|Page Students Paper: discharged its social responsibilities, that have survived competition and turbulent changes through the years and have contributed to social welfare and have contributed to flourish undiminished. In fact, we can http://www.slideshare.net/simply_coool/b-ethics-final 4|Page

social responsibilities, that have survived competition and turbulent changes through the years and have contributed to social welfare and have contributed to flourished undiminished. In fact, considered from , we can also say that Students Paper: say that it is unethical to not to make profits because every http://www.slideshare.net/simply_coool/b-ethics-final all angles, it is unethical, NOT to make profit. It is unethical, for a because every business is existing with its foremost objective to make profits and it is unethical for any business to exist without making any profits and going into losses. Because, a company which cannot make profits and makes losses, improperly utilizes scarce national resources and cannot pay back to Students Paper: back to creditors, does not make wealth for its shareholders, make huge liabilities, promotes inefficiency http://www.slideshare.net/simply_coool/b-ethics-final pay back creditors, does not make wealth for its shareholders, make huge liabilities, upsets the , promotes inefficiency and most importantly, cannot, Students Paper: importantly, cannot, at any cost discharge its social responsibility, meet its welfare commitments. Thus, we http://www.slideshare.net/simply_coool/b-ethics-final can not, at any cost discharge its social responsibility, meet its welfare commitments and jeopardises . Thus, we cannot say that business ethics are contrary to profits rather they became the first and the most important thing for any business to be achieved, because without it a business cannot work in the ethical direction.

Students Paper: ethical direction. But how much profits to make, the means and methods of making it, and at what cost- that is the ethical question. 4. CAN http://www.slideshare.net/simply_coool/b-ethics-final welfare commitments. But how much profits to make, the means and methods of making it, and at what cost- that is the ethical question. No business . 4. CAN PROFIT AND BUSINESS ETHICS CO-EXISTS IN THE ORGANIZATION: Students Paper: THE ORGANIZATION: Is making a profit ethically good, or bad, or neutral? Or, better still, are there situations in which making a profit is either good, or bad, or neutral? Profit is often the subject of criticism. After all http://businessethicsblog.com/2011/03/22/ethics-of-profit-part-1-excessive-profits/ the ethics of profit.

Is making a profit ethically good, or bad, or neutral? Or, better still, are there situations in which making a profit is either good, or bad, or neutral?

Profit is often the subject of criticism. The film, http . Students Paper: of criticism. After all, everyone knows that saying about money being the root of all evil. But here comes http://businessethicsblog.com/2011/03/22/ethics-of-profit-part-1-excessive-profits/

 filthy lucre.' After all, everyone knows that saying about money being the root of all evil. But in the here comes the question that can profit and business ethics co-exist in the business organization. According to me, yes profits and business ethics can co-exist in the organization because it is not so that for making profits one has to follow unethical practices. Business exists in society for making profits but also to serve society because society is the one which is giving profits to the organization. Thus, it becomes the responsibility of the managers to see that they are making profits while working ethically. But it's not that a business cannot make profits while working ethically. We have many such examples from our corporate world by which we can show that a business can make profits while working ethically. 5. COMPANIES WHICH IS EXISTING WHILE WORKING ETHICALLY: ADITYA BIRLA GROUP: this group has been serving society in many ways and controls the companies like hindalco, idea cellular, Grasim etc. they have been following and maintaining great level of ethics in their organization and they have also been making profits. The company is doing well and to proof that they are ethical we can say that Kumar Mangalam Birla was himself the chairman of corporate governance committee. HDFC( HOUSING DEVELOPMENT FINANCE CORPORATION): as per the latest report by etisphere HDFC has been in the list of having great ethical standards but also have been making profits. Thus, it is an example of company which is able to co-exist with profits and ethics. PEPSI CO.: the company headed by Indira Nooyi was also included in the list of ethical companies by the report of etisphere and pepsi is also making profits. So we can say that, pepsi is also been able to manage to gain profits and maintain ethical standards. 6. CONCLUSION: Thus, from above research we can conclude that profit and business ethics can co exist in the organization. It is so because a business organization is the one which exist because they want to make profits but it is not so that profits can only be made by unethical practices. Profits can also be made by following the ethics of the business. And it is equally important to follow the ethics so that a company can make profits but also serve the society in a better way besides its goods and services

offered to customers. REFERENCES: WEBSITES: http://EzineArticles.com/1664279 on 27th October 2011 at 11:45 am BOOKS: Managerial Process and organization behavior T.N Chabbra

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RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES INTERNAL ASSIGNMENT Name of the candidate: MEHAK SHARMA Enrollment no. : 05215903911 Course: MBA Batch: 2011-13 Subject: MANAGEMENT PROCESS AND ORGANIZATION BEHAVIOUR Subject code: MS-101 Topic of assignment: Can Profit and Business Ethics co-exists in the organization, critically examine this statement and supplement the answer with minimum three live examples of the same. Subject Teacher's name: MS. SONIKA BHOJ 1. CONCEPT OF BUSINESS ETHICS: Business ethics refers to the moral principles which should govern business activities. They are concerned with determining what is right and what is wrong while doing business. Business ethics provide a code of conduct for managers. The purpose of business ethics is to guide the managers and employees in performing their jobs. They lay down norms of behavior for the business and guide it in undertaking socially responsible activities. Few examples of ethical business practices are:

To pay taxes to the government honestly. To give fair treatment to the workers. To ensure genuine and safe products to public. A business is a part of society and expect of profits the business is also their to serve society. Thus, business should be guided by the principles which are considered right by the society. Business ethics can also be said as an umbrella term which covers all business practices which are desirable from the point of view of the society. Ethics aim at perfection in the conduct of life. It emphasize on making a business honest, just and responsible. They create self-imposed discipline on the part of business firms. Some examples of unethical practices are: adulteration of goods, sale of duplicate products, pollution of environment, exploitation of workers etc. Nowadays, business ethics have gained importance because of following reasons: Business is a part of society. Social values must become the guiding principles for doing business. When an organization fails to behave in accordance with the society's expectations, it may lose its image, market share, and even its right to exist. Various laws reflect the ethics of society. If a business is not ethical, it will attract the intervention of government and courts of law. Consumers are no longer at the mercy of business firms. They have organized associations to discipline the business firms. To avoid any conformation, it is advisable for a business to follow ethical practices.

2. STATUS OF BUSINESS ETHICS IN INDIAN CORPORATE WORLD: For those who are working in the business, they are expected to practice their ethics properly. Clients look to them to provide impartial information about their company and industry. The community expects job to be performed to the highest degree of accuracy and ethical standards. But does it actually happen as expected? Somewhere along the way, as one chase their goals, deadlines, targets or simply their daily to-do lists, they tend to forget the real issues in the world outside their windows. India Inc. has moved away from regulation since early 1990's and with the markets coming into their own, it became important to have a proper set of ethics to be followed by businesses. Board of Directors, has to ensure accountable autonomy by fostering its own culture which includes promoting constructive dissatisfaction, actively monitoring the firm's risk policies and practices, not contingent on having considerable expertise in the areas concerned and avoiding soft conflicts. Scandals have been taking place which made the need of following the ethical standards more important as well as the guidelines to be strict. Dis-connect between an employee and the ground realities widen as one moves up the ladder. Today, businesses are very target driven. At each level, targets are set and are interlinked. The performance of one's superior is determined by one's own performance and this process goes on till the very top level. Till such time one meets or surpasses the targets no questions are asked on the way of achieving those targets. It is only when the shortfall occurs, explanations are demanded.In nutshell, only the end and not the means is what matters.

In such an environment, where targets are means to not only success but more importantly survival, ethics boil down to a personal call. These calls have to be taken every dayby millions of people in real time with targets and survival at top of the mind. Corporate entities in India stand out in terms of complexities in the ownership structure. The direct ownership of promoters is quite substantial and if that is not enough, the promoters indirectly have tremendous equity in and control of the firm. It was believed that with the capital market reforms initiated in 1991, the dominance of promoters in the firms will lessen down. But unfortunately the last decade of the 20th century was marred by scams. The corporate entities went in for private placements making use of the relaxed regulations. These developments made the public spooky. In the last few years SEBI has put its foot down to crack down on the perpetrators and raised the disclosure standards leading to a renewed interest in the markets. For example: Giants like TCS and Infosys have set global benchmarks in reporting standards and have implemented ethics in the fabric of their organizations. With capital markets becoming dominant as the time passes and as organizations increasingly care to heed the market and keep the investors happy, it is safe to assume that the Indian corporate entities are veering away from organization-control to market-control approaches towards ethical standards 3. RELATIONSHIP BETWEEN BUSINESS ETHICS AND PROFIT IN AN ORGANIZATION:

The impression of most people is that ethics and profits are mutual, and that if a company is ethical, it may forget about making profits. People are also seemed to believe that a profitable company must necessarily be unethical. This is like saying that a company can make profits only through unethical means. Nothing can be more to have ethical companies made profits, but more importantly it is, only ethical companies which discharged its social responsibilities, that have survived competition and turbulent changes through the years and have contributed to social welfare and have contributed to flourish undiminished. In fact, we can also say that it is unethical to not to make profits because every business is existing with its foremost objective to make profits and it is unethical for any business to exist without making any profits and going into losses. Because, a company which cannot make profits and makes losses, improperly utilizes scarce national resources and cannot pay back to creditors, does not make wealth for its shareholders, make huge liabilities, promotes inefficiency and most importantly, cannot, at any cost discharge its social responsibility, meet its welfare commitments. Thus, we cannot say that business ethics are contrary to profits rather they became the first and the most important thing for any business to be achieved, because without it a business cannot work in the ethical direction. But how much profits to make, the means and methods of making it, and at what cost- that is the ethical question. 4. CAN PROFIT AND BUSINESS ETHICS CO-EXISTS IN THE ORGANIZATION:

Is making a profit ethically good, or bad, or neutral? Or, better still, are there situations in which making a profit is either good, or bad, or neutral? Profit is often the subject of criticism. After all, everyone knows that saying about money being the root of all evil. But here comes the question that can profit and business ethics co-exist in the business organization. According to me, yes profits and business ethics can coexist in the organization because it is not so that for making profits one has to follow unethical practices. Business exists in society for making profits but also to serve society because society is the one which is giving profits to the organization. Thus, it becomes the responsibility of the managers to see that they are making profits while working ethically. But it's not that a business cannot make profits while working ethically. We have many such examples from our corporate world by which we can show that a business can make profits while working ethically. 5. COMPANIES WHICH IS EXISTING WHILE WORKING ETHICALLY: ADITYA BIRLA GROUP: this group has been serving society in many ways and controls the companies like hindalco, idea cellular, Grasim etc. they have been following and maintaining great level of ethics in their organization and they have also been making profits. The company is doing well and to proof that they are ethical we can say that Kumar Mangalam Birla was himself the chairman of corporate governance committee. HDFC( HOUSING DEVELOPMENT FINANCE CORPORATION): as per the latest report by etisphere HDFC has been in the list of having great

ethical standards but also have been making profits. Thus, it is an example of company which is able to co-exist with profits and ethics. PEPSI CO.: the company headed by Indira Nooyi was also included in the list of ethical companies by the report of etisphere and pepsi is also making profits. So we can say that, pepsi is also been able to manage to gain profits and maintain ethical standards. 6. CONCLUSION: Thus, from above research we can conclude that profit and business ethics can co exist in the organization. It is so because a business organization is the one which exist because they want to make profits but it is not so that profits can only be made by unethical practices. Profits can also be made by following the ethics of the business. And it is equally important to follow the ethics so that a company can make profits but also serve the society in a better way besides its goods and services offered to customers. REFERENCES: WEBSITES: http://EzineArticles.com/1664279 on 27th October 2011 at 11:45 am BOOKS: Managerial Process and organization behavior T.N Chabbra