ETHICS

SUBMITTED BY:
SIMRANJEET KAUR
 BUSINESS ETHICS AND SOCIAL
RESPONSIBILITY
◦ Social responsibility of business refers to its obligation to take
those decision and perform those actions which are desirable
in terms of the objectives and values of our society.
◦ Business ethics take into consideration responsibilities not just
inside the workplace, but also within the environmental,
cultural, and social structures of communities. They also deal
with accountability issues involved in scientific research,
consumer protections, and the overall structure of any
business or corporation.
◦ Corporate social responsibility has been divided into four
types that must be considered simultaneously, including
ethical, legal, economic and philanthropic responsibilities to
consumers and society.
 EXAMPLES OF CSR ACTIVITIES
1) BMW
BMW holds its pride in being one of the most socially
responsible companies in its industry. BMW has set the bar
high with a goal of helping over one million people by
2020. They plan to do this by creating programs such as
“The Schools Environmental Education Development
Project” to help raise awareness of social and
environmental issues. BMW’s key to CSR success has
always been alignment. They’re a great example of
corporate social responsibility because of their balance
between a good business model and helping social
causes.
 EXAMPLES OF CSR ACTIVITIES
2) Starbucks Coffee
Since the beginning of its existence in 1971, Starbucks Coffee has
always focused on ethical and social responsibilities. Starbucks
aims at creating a product that is not only beneficial to its
customers, but also to the environment. With the start of the
C.A.F.E. program, Starbucks has set guidelines to increase product
quality, social and economic responsibility, and environmental
management. Partnering with Ethos Water, Starbucks is helping
bring clean water to over one billion people who don’t have
access to it. What separates Starbucks from its competitors is that
they focus on society before themselves. Giving back to the
community is a great factor to why the brand is so well known. It
goes to show that companies with great giving programs are
valued more than ones that don’t.
 ETHICS AND VALUES
◦ Values are a set of principles that people cherish. They
enhance the quality of individual and collective life. They
involve personal and community discipline and sacrifice of
immediate gratification needs. Quality of life is a product of
physical, social, environmental, mental and spiritual health
and wholeness. Values refer to intrinsic worth or goodness.
◦ Managers need to develop the following values:
 Optimum utilization of resources
 Attitude towards work
 Work commitment
 Willingness to take risk.
 Responsibility.
 Integrity
EXAMPLES OF CORE COMPANY
VALUES
EXAMPLES OF CORE COMPANY
VALUES
EXAMPLES OF CORE COMPANY
VALUES
 ETHICAL AUDITS
◦ Ethics audit refers to an audit conducted in order to adjudge
whether the organization is following the code of conduct goals
and values that it has set for itself in the social sphere.
◦ It measures the culture and behaviour of an organization, and
determines the extent to which its values are embedded across
its people and processes.
◦ Common parameters which may be evaluated in an ethics audit
include job satisfaction, awareness of the organization’s policy
on equality and diversity, contribution towards the society,
whether the processes of the organization follow ethical
standards set by the society etc.
◦ Assessing the outcomes and achievements of corporate social
responsibility in order to improve future outcomes is an example
of ethics audit. Another example is performance related to
company’s policies on whistle-blowers and grievance redress.
SIX STEPS TO HIGHLY EFFECTIVE ETHICS
AUDITS
◦ Start with a detailed foundation.
◦ Develop metrics.
◦ Create a cross-functional team.
◦ Audit efficiently.
◦ Look for other issues.
◦ Respond consistently and
communicate.
ETHICAL AUDIT PROCESS
 ETHICS AND SPIRITUALITY
◦ Spirituality is personal
◦ It has to do with:
– Authenticity
– A factor integrating one’s personality
– Meaning
– Connectedness
– Living from the core of one’s being
◦ It reflects one’s attitude towards
– “living life”
– “making sense of life” and
– “seeking for relationships with others and
ultimately with that which is transcendent”
 BUSINESS AND SPIRITUALITY
◦ Embodying personal values of honesty, integrity, efficiency,
and good quality work, treating co-workers and
employees as a human being in a responsible, caring way.
◦ For some, it may mean, participating in spiritual study and
activities such as prayer, meditation, or intuitive guidance at
work.
◦ For some, it’s making their business socially responsible in how
it impacts the environment, serves the community or helps
create a better world.
◦ And for some it means, responsibility, integrity, moral,
honesty, accountability, quality, cooperation, caring, service,
intuition, loyalty, trustworthiness, respect, justice, guidance,
motivation & passing benefits to concerned.
 ADVANTAGES OF SPIRITUALITY IN
WORKPLACE
◦ The organization will become purpose-driven
and meaning-based.
◦ Management with a mission will replace
management of efficiency and control.
◦ There will be a shift from fear-based culture to
love-based culture.
◦ Management practices and decisions will be
clearly consistent
◦ Spread of spiritual values such as integrity,
honesty, love, hope, kindness, respect and
nurturing
 ETHICS AND MARKETING
◦ Marketing ethics is an area that deals with the moral
principles behind marketing.
◦ Ethics in marketing applies to different spheres such as in
product, pricing, Placing (Distribution), promotion &
advertising etc.
◦ When an organization behaves ethically, customers
develop more positive attitudes about the firm, its
products, and its services.
◦ To create Values or trust with key stakeholders
◦ To build good image about the organization in the minds
of customer, employees, shareholders and the society.
ETHICS AND P’s
 UNETHICAL PRACTISES IN MARKETING
◦ Misleading statements
◦ Making false or deceptive comparisons about a rival
product.
◦ *Inciting* fear or applying unnecessary pressure. (“Limited
time offers)
◦ Exploiting emotions or a news event.
◦ Stereotyping or depicting women as sex symbols merely to
draw attention to a product.
◦ Disparaging references to age, gender, race or religion.
◦ Doctoring photos or using photos that are not authentic
representations.
◦ Plagiarizing* a competitor.
◦ Spamming, or sending unsolicited emails to potential
customers.
 ETHICS AND FINANCE
◦ Ethics in finance is one of the main things which
everyone has to follow from small, medium and
big level company.
◦ It is considered important as without financial
component no business can run for a long time.
◦ Ethics in finance may vary from industry to
industry but everyone is liable to do their work at
utmost good faith.
 CODE OF ETHICS IN FINANCE
◦ Act with honesty and integrity avoiding
conflicts of interest in personal and
professional relationship
◦ To provide information which is full, accurate,
fair, objective, timely and understandable.
◦ To promote ethical behavior among other
associates
◦ Respect the confidentiality of info acquired
in course of business except authorized
◦ Adhere to and promote this Code of Ethics.
 ETHICAL ISSUES IN FINANCIAL
MARKETS
◦ Deception: Act of misrepresenting relevant information
◦ Churning: Excessive or inappropriate trading for clients
account by a broker who has a control over the
account with intent to generate commissions rather
than to benefit client
◦ Unsuitability: Not all investments are suitable for every
investors. For e.g. : certain high risk investments are
inappropriate for retired or conservative investors
◦ Unfairness in markets: The gain of one may equal loss
to other, though market exchanges are advantageous
to both the parties