ARATHI SIVARAM

M.Phil Scholar
University of Calicut

NISHIJAUNNIKRISHNAN
Guest lecturer, Le-Ment college of Management & Arts,
Pattambi
 KEY WORDS
 Business ethics
 Corporate governance
 Unethical issues
 Corporate governance ethics
 INTRODUCTION
 The word ethics has been derived from the Greek
work ethikos meaning custom or charater.
 Business ethics is the art and science of applying
ethical principles to examine and solve moral
dilemmas.
 The study of business ethics has been at the heart
of intellectual thought since the time of early
business and it is still continuing on.
 OBJECTIVES
 To understand the importance and need of
business ethics.
 To identify the roots of unethical behavior in an
organization.
 To examine the role of business ethics in
corporate governance.
 RESEARCH METHODOLOGY
This study is exploratory in nature. Data has been
collected from secondary source like
 Text books
 Websites
 Literature available in different scholarly
research articles belonging to several journals
 Business magazines
ETHICS BUSINESS BUSINESS
ETHICS
Importance and Need of Business
Ethics
 To gain trust in the supplier, employee and
customer relationship in the business.
 Predictability and efficiency of business
 Profitability
 Reputaion
 Social responsibility
 Better decision making
Roots of Unethical Behavior in an
Organization
 Balancing work and family
 Poor leadership
 Poor internal communication
 Lack of management support
 Need to meet sales or profit goals
 No recognition of achievements and heavy work
load
 Company politics
 Personal financial worries
 Some Unethical Issues
 Bribery
 Coercion
 Insider trading
 Tax evasion
 Conflict of interest
 Pollution
 Corporate Governance Ethics
 Corporate governance ethics discuss the theories of
ethics and corporate governance and explain how they
can be applied in various business situations.

 Companies have now begun to integrate corporate

cultures and concentrate on putting appropriate
corporate governance mechanisms in place.
 How Ethics Can Make Corporate
Governance More Meaningful

 All stakeholders are dealt in fair manner

 Considers the whole society.
 Ethics will automatically leads a company to perform
corporate governance.
 Make to obey the rules and regulations according to
law.
 FINDINGS & SUGGESTIONS
 It has been understood that the benefits of following the
ethics in business is enormous. Some of them are:
 Improvement in society
 High productivity and strong teamwork
 Cope up with changing situations
 Create strong public image
 Doing unethical behavior in the business will act as a two -
edged sword to both the business and to the society.
 So a firm must put its effort in maintaining ethics in its
decision making.
 CONCLUSION
 In present days environment, the value based
environment and practice of ethics has become
imperatives in corporate governance and also in the
foreseeable future.
 If values are bedrock of any corporate culture, ethics
are the foundation of authentic business relationships.
 The role of business ethics in a business and to its
corporate governance is very prominent.
 REFERENCES
 Business ethics and corporate social responsibility-
Joyner
 Corporate social responsibility theories- Garriga
 Business ethics and corporate governance- A.C
Fernando
 www.icmrindia.org
 www.investopedia.com