Business Ethics Unit 1 - 5 - Aug 2020

Business Ethics & Global
Business Environment
UNIT 1 AN INTRODUCTION
DR. S. A. MOHAMED ALI

CMS ACADEMY OF MANAGEMENT &
TECHNOLOGY
Business Ethics - An Introduction
“The principles and standards that define acceptable conduct in business.”

TECHNOLOGY
Business Ethics - Definition
 Business ethics can be defined as written and unwritten codes of principles

and values that govern decisions and actions within a company.
 In the business world, the organization’s culture sets standards for

determining the difference between good and bad decision making and
behaviour

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General Business Ethics
 Ethics of Human Resource Management.

 Ethics of Sales and Marketing.
 Ethics of Production.
 Ethics of Intellectual property, knowledge and Skills

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Importance of Business Ethics
ETHICS INFLUENCE AND CONTRIBUTE TO :

Employee Commitment
Investor and Customer Loyalty
Customer Satisfaction
Ability to build Relationship with Stakeholders
Greater Earning

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Importance of Business Ethics
 Public expects business to exhibit high levels of ethical performance and social
responsibility.
 Encouraging business firms and their employees to behave ethically is to
prevent harm to society.
 Promoting ethical behaviour is to protect business from abuse by unethical
employees or unethical competitors.
 High ethical performance also protects the individuals who work in business.

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Factors influencing Business Ethics

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Factors influencing Business Ethics
 Formal and informal policies and rules

 Norms for acceptable behaviour
 Financial reward system
 Hiring practices
 Applications of legal behaviour
 Degree to which professionalism is emphasized
 The company’s decision making processes

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Developing Moral Judgment

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ETHICAL ISSUES
Fundamental Ethical Issues:
The most fundamental or essential ethical issues that businesses must face are integrity and trust. A
basic understanding of integrity includes the idea of conducting your business affairs with honesty and
a commitment to treating every customer fairly.
When customers think a company is exhibiting an unwavering commitment to ethical business

practices, a high level of trust can develop between the business and the people it seeks to serve.
A relationship of trust between you and your customers may be a key factor in your company's
success.

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Diversity and the Respectful Workplace
Your current and potential employees are a diverse pool of people who deserve to have their
differences respected when they choose to work at your business.
An ethical response to diversity begins with recruiting a diverse workforce, enforces equal
opportunity in all training programs and is fulfilled when every employee is able to enjoy a respectful
workplace environment that values their contributions.
Maximizing the value of each employees' contribution is a key element in your business's
success.

TECHNOLOGY
Decision-Making Issues
A useful method for exploring ethical dilemmas and identifying ethical courses of action includes
collecting the facts, evaluating any alternative actions, making a decision, testing the decision for
fairness and reflecting on the outcome.
Ethical decision-making processes should centre on protecting employee and customer rights,
making sure all business operations are fair and just, protecting the common good, and making sure
the individual values and beliefs of workers are protected.

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Compliance and Governance Issues
Businesses are expected to fully comply with environmental laws, federal and state safety
regulations, fiscal and monetary reporting statutes and all applicable civil rights laws.
For example, the Steel Authority of India approach to compliance ensures no one at the company may
ask any employee to break the law or go against company values, policies and procedures.
The company's commitment to compliance is shored up by its approach to corporate governance:

the company expects all directors, officers and executives to conduct business in accordance with its
business conduct policies.

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Ethical Issues Categories
Fairness and honesty

Conflict of interest
Communications
Business relationships

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Fairness and honesty
 The heart of business ethics

General values of decision makers
Continues…..
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Conflict of interest
 Occurs when a person must choose whether

to advance their own personal interest or
those of others
Continues…..
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Communication
 False and misleading advertising and deceptive

personal-selling tactics anger customers and
may cause a business to fail
Continues…..

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Business relationships
 Business people must be ethical toward

their customers, suppliers, and others in
their workplace
Continues…..
Reasons for not Reporting Observed Misconduct
1. Feared retribution from supervisor.
2. Didn’t believe corrective action.
3. Feared they wouldn’t remain anonymous.
4. Thought someone else would report the misconduct.
5. Didn’t know who to contact.

Six Steps to Improve Business Ethics
1. Top management support

2. Expectations begin at the top
3. Ethics embedded in training
4. Ethics office set up
5. External stakeholders informed
6. There must be enforcement

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TECHNOLOGY
 Social responsibility is the obligation of the decision makers to take
actions which protect and improve the welfare of the society as a
whole along with their own interests.
- Howard R. Bowen

Social responsibility of business has responsibility to the
customer, workers, shareholders and the community.

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 Impact of its own Operations.
 Long life of business
 Employee satisfaction
 Fair Pricing & Market dynamics
 Demand & Supply of goods & services
 Taxation & compliances towards Government
 Financial Support to Social & Cultural activities
 Support to Social causes like Poverty, Education, HealthCare,
Environment Renewable Energy etc.

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 Public Image
 Resources
 Government Control
 Trusteeship
 Changes
 Consumer Movement
 Help to the Government
 Pressure of trade unions
 Long term self interest
 Globalization
 Role of Media
 Protection of Environment

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 Philanthropic
 Ethical
 Legal
 Economic

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Responsibilities towards:
Owners
Employees/Workers
Consumers/Customers
Community/Society/Public
Investors/Shareholders
Government

TECHNOLOGY
 Profit maximization
 Exploit business opportunities
 Expansion & diversification
 Careful use of capital
 Optimum use of resources
 Fair practice on stock exchange
 Business efficiency
 Periodic Information and Creating Confidence
 Effective use of shareholder’s fund
 Creating Goodwill

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 Harmonious Employer-Employee Relation
 Job Security, Promotion & career opportunity
 Division of Labor & recognition to trade unions
 Good Working Conditions
 Protect Health & Provide Safety Measures
 Fair Remuneration and allowances
 Proper personal policies, education & training
 Code of conduct & proper grievance procedures
 Workers Participation in Management
 Opportunities for development

TECHNOLOGY
 Supply as per demand
 Charging Fair price
 Honest Advertisement/ Advertisement ethics
 After Sales Service
 Reply to Complaints/ Customer Service Cell
 Good Quality Products & Services
 Avoid Monopolistic Competition
 Avoid Unethical Trade Practices
 Consumer Safety
 Accurate Information
 Consumer Welfare

TECHNOLOGY
 Social & Cultural Activities
 Location of Industries/ Rehabilitation
 Development of Backward Area/Locality
 Financial Assistance
 Protect anti-social activities
 Address Social Problem/Avoid Class conflict
 Help during Natural Calamities
 Proper use of economic power
 Providing Employment Opportunities
 Provide Employment & raise standard of living

TECHNOLOGY
 Return on Investment
 Stability
 Information
 Proper Disclosure
 Full and Factual Information
 Proper conduct of Shareholders Meetings
 Good Public Image
 Manipulation of Share Prices
 Maintain Transparency
 Handling Grievance
 Maintain Solvency and Prestige

TECHNOLOGY
 Observance of Law and Order
 Guidelines
 Payment of Taxes
 Avoid Unethical Practices
 Foreign Exchange
 Advice to Government
 Help in Emergencies
 Extent Co-operation
 Respecting Rules & Regulations
 Political Stability
 Implementation of Socio-economic programmes

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 Violation of ‘Profit Maximization’ concept
 Burden on Consumer
 Lack of Social Skills
 Lack of Public Support

TECHNOLOGY
ENVIRONMENTAL
POLLUTION
Session 3
AND CONTROL
ENVIRONMENTAL POLLUTION
 Environmental Pollution can be defined as any undesirable change in physical,
chemical, or biological characteristics of any component of the environment i.e. air,
water, soil which can cause harmful effects on various forms of life or property.
 Pollution: The term pollution can be defined as influence of any substance causing
nuisance, harmful effects, and uneasiness to the organisms
 Pollutant:- Any substance causing Nuisance or harmful effects or uneasiness to the

organisms, then that particular substance may be called as the pollutant.

TECHNOLOGY
TYPES OF POLLUTION
 WATER POLLUTION
 AIR POLLUTION
 LAND POLLUTION
 NOISE POLLUTION DR. S. A. MOHAMED ALI

TECHNOLOGY
WATER POLLUTION

Water Pollution can be defined as alteration in physical,
chemical, or biological characteristics of water through natural or
human activities and making it unsuitable for its designated use.
 Fresh Water present on the earth surface is put to many uses. It is

used for drinking, domestic and municipal
uses, agricultural, irrigation, industries, navigatio n, recreation.
The used water becomes contaminated and is called waste water.

TECHNOLOGY
SOURCES OF WATER POLLUTION
 Most of Water Pollution is man made It may also occur naturally by addition of soil
particles through erosion animal wastes and leaching of minerals from rocks
 The sources of water pollution can be classified as

 Municipal Waste Water
 Industrial Waste
 Inorganic Pollutants
 Organic Pollutants
 Agricultural Wastes
 Marine Pollution
 Thermal pollution

TECHNOLOGY
MUNICIPAL WASTE WATER
INDUSTRIAL WASTE
The major source of water pollution is the waste water

discharged from industries and commercial bodies,
these industries are
chemical, metallurgical, food processing industries,
textile, paper industries. They discharge several
organic and inorganic pollutants. That prove highly
toxic to living beings.

TECHNOLOGY
INDUSTRIAL WASTE
INORGANIC POLLUTANTS
 They include fine particles of different metals, chlorides, sulphates, oxides of iron,
cadmium, acids and alkalies.
ORGANIC POLLUTANTS
 They Include oils, fats, phenols, organic acids grease and

several other organic compounds
AGRICULTURAL WASTES
 Chemical fertilizers and pesticides have become
essential for present day high yielding crops.
 Consequently , they have become a

potential source of water pollution.
These fertilizers contain major plants
nutrients mainly
nitrogen, phosphorous, and potassium.
 Excess fertilizers may reach the ground water by

leaching or may be mixed with surface water of rivers,
lakes and ponds by runoff and drainage.
MARINE POLLUTION
 Ocean are the final sink of all natural and manmade pollutants. Rivers discharge
their pollutants into the sea. The sewage and garbage of costal cities are also
dumped into the sea. The other sources include, discharge of oils, grease,
detergents, and radioactive wastes from ships.
THERMAL POLLUTION
 Thermal Pollution of water is caused by the rise in temperature of water. The
main source of thermal pollution are the thermal and nuclear power plants. The
power generating plants use water as coolants and release hot water into the
original source. Sudden rise in temperature kills fish and other aquatic animals.
AIR POLLUTION
 Air pollution is the introduction of chemicals, particulate matter, or
biological materials that cause harm or discomfort to humans or
other living organisms, or cause damage to the natural environment
or built environment, into the atmosphere.
 A substance in the air that can cause harm to humans and the
environment is known as an air pollutant.

TECHNOLOGY
CAUSES OF AIR POLLUTION
 Carbon dioxide-this happens because of Deforestation and
fossil fuel burning.
 Sulfur dioxide –Due to the burning of sulfur containing

compounds of fossil fuels.
 Sulfur oxides- very dangerous to humans at a high

concentration. Sulfur in the atmosphere is responsible for
acid rain.

TECHNOLOGY
CONSEQUENCES OF AIR POLLUTION

CO2 is a good absorber of sunlight, but it also partially restricts
infrared radiation going back from the earth into space, which
produces the so- called greenhouse effect that prevents a drastic
cooling of the Earth during the night.
 CO2 in atmosphere --> GLOBAL WARMING

LAND POLLUTION
 Land pollution is the demolition of Earth's land surfaces often
caused by human activities and their misuse of land resources.
It occurs when waste is not disposed properly.
 Urbanization and industrialization are major causes of land

pollution.
CAUSES OF LAND POLLUTION
 Four Main causes of land pollution:
 Construction
 Agriculture
 Domestic waste
 Industrial Waste
CONSTRUCTION
 Buildings take up resources and land, the trees are chopped down
and used to make buildings.
 Takes away the places for animals and other organisms to live.
AGRICULTURE
 As there are more and more people inhabiting the earth, food is in
higher demand and so forests are chopped down and turned into
farmland
 In addition, herbicides, pesticides, artificial fertilizers, animal

manure are washed into the soil and pollute it.
DOMESTIC WASTE
 Tons of domestic waste is dumped every day. Some waste from homes,
offices and industries can be recycled or burnt in incinerators .
 There is still a lot of garbage, such as refrigerators and washing machines

that are dumped in landfills simply because they cannot be reused in
anyway, nor recycled .
INDUSTRIAL WASTE
 Plastics factories, chemical plants, oil refineries, nuclear waste
disposal activity, large animal farms, coal-fired power plants,
metals
production factories and other heavy industry all contribute to
land pollution.
NOISE POLLUTION
 Noise pollution is excessive, displeasing
human, animal, or machine-created environmental noise that
disrupts the activity or balance of human or animal life.
 Sound becomes undesirable when it disturbs the normal activities

such as working, sleeping, and during conversations.
 World Health Organization stated that “Noise must be

recognized as a major threat to human well- being”

TECHNOLOGY
SOURCES OF NOISE POLLUTION
 Transportation systems are the main source of noise pollution in urban areas.
 Construction of buildings, highways, and streets cause a lot of noise, due to

the usage of air compressors, bulldozers, loaders, dump trucks, and pavement
breakers.
 Industrial noise also adds to the already unfavorable state of noise pollution.
 Loud speakers, plumbing, boilers, generators, air conditioners, fans, and

vacuum cleaners add to the existing noise pollution.
EFFECTS OF NOISE POLLUTION
 According to the USEPA, there are direct links between noise and health. Also,
noise pollution adversely affects the lives of millions of people.
 Noise pollution can damage physiological and psychological health.
 High blood pressure, stress related illness, sleep disruption, hearing loss,
and productivity loss are the problems related to noise pollution.
 It can also cause memory loss, severe depression, and panic attacks.
SOLUTIONS FOR NOISE POLLUTION
 Planting bushes and trees in and around sound generating sources is an
effective solution for noise pollution.
 Regular servicing and tuning of automobiles can effectively reduce the noise
pollution
 Social awareness programs should be taken up to educate the public about

the causes and effects of noise pollution.
 Workers should be provided with equipments such as ear plugs and earmuffs
for hearing protection.

Similar to automobiles, lubrication of the machinery and servicing
should be done to minimize noise generation.
 Soundproof doors and windows can be installed to block unwanted

noise from outside.

Regulations should be imposed to restrict the usage of play
loudspeakers in crowded areas and public places.

Factories and industries should be located far from the residential
areas.
WAYS TO STOP POLLUTION
 We believe that it is the responsible thing to do to increase recycling.
 It is just like doing laundry and separating blacks and colors.
 The residents of the country should also try and do their part and put
in at least one day of litter picking up.
GLOBAL WARMING AND THE
GREENHOUSE EFFECT
DIFFERENCE BETWEEN GLOBAL WARMING
AND THE GREENHOUSE EFFECT
Global warming refers to a rise in the temperature of the

surface of the earth.
The Greenhouse Effect is a process by which thermal

radiation from a planetary surface is absorbed by
atmospheric greenhouse gases, and is re-radiated in all
directions.
SOME PROOF OF GLOBAL WARMING
PORTAGE GLACIER ALASKA PORTAGE GLACIER ALASKA
NOW….
THEN….
COLORADO RIVER, AS OF COLORADO RIVER, AS OF
JUNE 2002 DECEMBER 2003
ANY QUESTIONS??
THANK YOU
ENVIRONMENTAL ETHICS
 It
is concerned with company’s responsibility to protect
environment in which it operates.
INTERNAL AND EXTERNAL
BUSINESS ENVIRONMENT
FACTORS
 INTERNAL
 Organisational direction
 Other internal factors(strength of employee, business
process, etc.)
 EXTERNAL
 External competition
 Other external factors(political, socio- economic,
technological, etc.)
BUSINESS’S TRADITIONAL
ATTITUDES TOWARDS THE
ENIVORNMENT
 Environmental protection was rarely seen as an issue.

 Harm the environment to whatever extent was profitable.
 Natural world as “free and unlimited goods”.
ENVIRONMENTAL ISSUES OF BUSINESS
ETHICS
 Pesticides harm or kill fish and birds, causes illness in
children.
 Air pollution contaminates the air.
 Carbon dioxide are causing global warming.
 Nuclear power plants causes cancer.
ENVIRONMENTAL POLLUTION
 CAUSES OF POLLUTION
1. Air pollution
2. Water pollution
3. Land pollution
4. Noise pollution
NEED FOR POLLUTION CONTROL
 TO ENSURE HEALTHY LIFE

 TO ENSURE SAFETY
 ECONOMIC LOSSES
 IMPROVED PUBLIC IMAGE
LAWS RELATED TO ENVIRONMENTAL
PROTECTION AND WILDLIFE
FEATURES OF ENVIRONMENTAL BUSINESS
ETHICS
 HUMAN CHOICES
 BUSINESS REALITIES
 SUSTAINABILITY
 NEW OPPORTUNITIES
ROLE OF BUSINESS IN
ENVIRONMENTAL ETHICS
 Environmental regulations
 Green energy
 Preventing waste
OBSTACLES
 Pressure from institutional frameworks

 Pressure from society
 Concentrate on more serious impacts
DIFFERENT WAYS BY WHICH BUSINESS
CAN PROTECT ENVIRONMENT
 Support planetary initiatives

 Electronic business cards
 Digitize the hiring process
 Opt for PCW products
IMPLEMENTING ENVIRONMENTAL ETHICS
1. Commit our organisation to the basic aim of

environmental ethics
2. Determine who is the subject of this environmental ethics
3. Determine what the impact of this subject is on the
environment
4. Determine what exactly we have to change to minimise
negative impacts
5. Determine which steps should be taken to implement changes
CONCLUSION
 Itis concerned with company’s responsibility to protect
environment in which it operates.
 Came in existence on first Earth day in 1970.There are
number of laws to protect environment.
 Business traditionally saw no need to be concerned
towards environment but we know externalities are of grave
importance and are matter of life and death.
Thank you

TECHNOLOGY

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Business Ethics & Global

DR. S. A. MOHAMED ALI

“The principles and standards that define acceptable conduct in business.”

DR. S. A. MOHAMED ALI

 Business ethics can be defined as written and unwritten codes of principles

 In the business world, the organization’s culture sets standards for

DR. S. A. MOHAMED ALI

 Ethics of Human Resource Management.

DR. S. A. MOHAMED ALI

ETHICS INFLUENCE AND CONTRIBUTE TO :

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

 Formal and informal policies and rules

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

Fundamental Ethical Issues:

When customers think a company is exhibiting an unwavering commitment to ethical business

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

The company's commitment to compliance is shored up by its approach to corporate governance:

DR. S. A. MOHAMED ALI

Fairness and honesty

DR. S. A. MOHAMED ALI

 The heart of business ethics

 Occurs when a person must choose whether

 False and misleading advertising and deceptive

DR. S. A. MOHAMED ALI

 Business people must be ethical toward

1. Feared retribution from supervisor.

2. Didn’t believe corrective action.

3. Feared they wouldn’t remain anonymous.

4. Thought someone else would report the misconduct.

5. Didn’t know who to contact.

1. Top management support

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

DR. S. A. MOHAMED ALI

 Lack of Public Support

DR. S. A. MOHAMED ALI

 Pollutant:- Any substance causing Nuisance or harmful effects or uneasiness to the

DR. S. A. MOHAMED ALI

 NOISE POLLUTION DR. S. A. MOHAMED ALI

 Fresh Water present on the earth surface is put to many uses. It is

DR. S. A. MOHAMED ALI

 The sources of water pollution can be classified as

DR. S. A. MOHAMED ALI

The major source of water pollution is the waste water

DR. S. A. MOHAMED ALI

 They Include oils, fats, phenols, organic acids grease and

 Consequently , they have become a

 Excess fertilizers may reach the ground water by