Objectives

1. Definition of terms related to ethics

2. Business Ethics and levels of morality in managers

3. Non market forces and business ethics – 4 I model

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 Definitions
• Ethics involves a discipline that examines
good or bad practices within the context of a
moral duty
• Moral conduct is behavior that is right or
wrong as accepted by a prevailing ideology
that is political- legal , religious-scriptural or
philosophical
• Business ethics include practices and
behaviors that are good or bad while
conducting business and specific professions
& vocations
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Scope of Ethical Relations in Agri
-Business

• Employee-Employer Relations
• Employer-Employee Relations
• Company-Customer Relations
• Company-Shareholder Relations
• Company-Community/Public Interest
• Company – Environment

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 Sources of Ethical Norms
Regions of
Fellow Workers Self Learning
Country

Family Profession
Individual
Conscience
Friends Employer

The Law Religious

Society at Large
Beliefs

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 Ethics and the Law
• Law often represents an ethical minimum
• Ethics often represents a standard that
exceeds the legal minimum- it fulfills the
spirit of law Frequent Overlap

Ethics Law

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Levels of Organizational
Responsibility

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 Areas of Comfort
• Area 1 leads to no discomfort in taking decisions
• Area 2a is profitable and legal but may not have
support of non market forces
• Area 2b is profitable and ethical but you are nor sure
of legality – proceed carefully
• Area 3 is ethical and legal , but not profitable – find
ways and means to become profitable without
diluting the others

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 Important Ethical Questions
• What is?
Existing practices in Agribusiness
• What ought to be?
Desired practices with in ethics & sustainability
• How do we get to what is desired ?
Measures taken by organization , policy makers and
managers
• What is our motivation for acting ethically?
Soul searching
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Three Types of Management Ethics

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 Immoral Amoral Moral

ETHICAL Decision and actions Belief that decision Decision and actions
NORMS- are in opposition to and actions lie conform to legal,
ethical norms outside moral code- professional and
lacks ethical social norms
awareness
MOTIVES Selfish Well intentioned self Enlightened Self
interest – basically Interest
selfish

GOALS Personal profit at any Personal profit is the Personal profit as per
cost motivator law and ethical
standards

ORIENTATI Laws are barriers Letter of law is the Letter and spirit of
ON TO LAW that must be turned minimum guideline law is important and
& and broken- Exploit for actions and they guide actions and
STRATEGY
and manipulate decisions decisions
situations
 Making Moral Management
Actionable

• Role of Senior management

• Ethics training
• Self-analysis

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 Components of Business
Environment

Market component
Non-market component

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The Environment of Business

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 The Agribusiness Market
component
… Market environment includes interactions
between farmers , firms, suppliers, and
customers that are governed by markets and
contracts.

Interactions typically involve voluntary

economic transactions and exchange of
property.

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The non-market component

… is composed of the social,

political, and legal
arrangements that structure
interactions outside of, but
in conjunction with, markets
and contracts.

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ETHICS AND NONMARKET
ENVIRONMENT

4 I Model

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 4 I Model

ISSUE
INTEREST
INSTITUTIONS
INFORMATION
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 4 I Model
• ISSUE - What is the problem
• INTEREST- Who seeks to gains or lose from
the issue
• INSTITUTION- Law, regulation,
organizations and systems
• INFORMATION- knowledge that influences
the issue

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 Role of Managers
Managers operate in both the market and non-
market environments.

Managers are in the best position to assess the

impact of their firm’s market activities on its non-
market environment and the consequent result both
on performance of company.

Managers are responsible for formulating and

implementing non-market as well as market
strategies.
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 Some Examples of Non Market
Issues
• Environmental protection
• Health and safety
• Regulation and deregulation
• Intellectual property protection
• Human rights
• International trade policy
• Regulation and antitrust
• Activist pressures
• Media coverage of business
• Corporate social responsibility
• Ethics

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• THE 4 I’S OF HUMAN CONSUMPTION OF
TOBACCO

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 Tobacco- ISSUES
• Health hazard- Lung cancer is the leading cause of death for
men and women, 90% of lung cancer rates in men is caused
by smoking and 80% in women
• Smoking is responsible cancers namely cancer of larynx, oral
cavity, pharynx, esophagus and bladder
• Every day over 3000 teenagers begin to smoke cigarettes and
go on to become daily steady smokers.
• Cigarette smoking during pregnancy increases the risk of low
birth weight, prematurity, spontaneous abortion, and
perinatal mortality in humans called fetal tobacco syndrome.
 INTEREST GROUPS -Organized

• Manufacturers of Cigarette
• Workers’ Unions of the different cigarette
producing units
• Medical and Health Insurance industry
• Farmers involved in tobacco production

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 INTEREST GROUPS -Unorganized
• Cigarette buyers
• NGOs
• Action Council Against Tobacco (ACT)
• Voluntary Health Association of India (VHAI)
• Health Action Network (Hriday – SHAN)
• Asia-Pacific Council in Cigarette Smoking & Health (APCCSH)
• Pacific-Asia Resource Center (PARC)
• Asia-Pacific Anti-Tobacco League (APATL)
• Religious bodies and associations with interest in tobacco control
:Prajapati Brahakumari ,Arya Samaj ,Buddhist Associations
• Pharma companies:Novartis ,SmithKline Beecham ,Glaxo India Limited

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 INSTITUTIONS
• WHO Framework Convention on Tobacco Control .
• Mandated by Supreme Court of India, the Central
(Union) Government has the responsibility for
initiating legislative and administrative measures for
tobacco control at the national level.
• Indian Council for Medical Research (ICMR), New
Delhi

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 INSTITUTIONS Contd.
• The Ministry of Information and Broadcasting
• The Supreme Court – This apex judicial institution has
been instrumental in making orders and notices to
control tobacco use
• The Ministry of Agriculture
• The Ministry of Commerce and Industry
• The Ministry of Finance
• The Tobacco Board and the Tobacco Research Institute:
• The Ministry of Education
• The Ministry of Labour
• The Ministry of Health and Family Welfare

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 INFORMATION
• India’s tobacco package warning covers only 40% of front panel and
none on the back as compared to Uruguay, where it covers 80% of
both front and back of cigarette packets.
• The Global Adult Tobacco Survey India Report 2010 estimates that
currently 5.7% adults smoke cigarettes. In the survey, 98%
respondents chose the picture of a cancer-ridden mouth as a
suitable substitute for the present-day picture of a lung and
scorpion.
• Exposure to secondhand smoke (or environmental tobacco smoke)
causes an estimated 3,000 deaths from lung cancer, alone, among
American adults.
• The smoke slows down the flow of blood in the body.

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 INFORMATION
Diseases caused by Smoking
• Pulmonary emphysema
• Bronchial conditions
• Coronary failure
• Chronic Obstructive Pulmonary Disease (C.O.P.D.)
• Lung cancer
• Cardiovascular accidents (more commonly referred to as
strokes
• Bronchial asthma
• Heart Attacks
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 Non Market Impact on firms dealing with
Tobacco
1. Scientific discovery and technological
advancement
2. New understandings of health
3. Institutional change and their power
4. Interest group activity and their intesity
5. Moral concerns
6. Firms own actions

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Making Ethical Business Decisions

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 Topics
• GM plants & animals - Group 1
• Fast Food – Group 2
• Environment pollution -Group 3
• Narcotics -Group 4
• Animal farming & meat industry–Group 5
• Animal use in research - Group 6
• Farmer suicides – Group 7
• Leather industry-Group 8
• - Group 9
• -Group 10

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