ETHICAL ISSUES

IN MANAGEMENT
 ISSUES

 CULTURAL DIFFERENCE
 ETHICAL DILEMMA
 HUMAN RIGHTS
 RACIAL AND SEXUAL DISCRIMINATION
 CORRUPTION
 ENVIRONMENTAL ISSUES
 CULTURAL DIFFERENCES

 Culture is a set of common values, norms, beliefs, and ideas shared by member of the same group and not
written
 Organizational culture is determined by the interaction of systems, norms and values, all of which influence
behaviour
 Cultural differences : various beliefs, behaviors, languages, practices and expressions considered unique to
members of a specific ethnicity, race or national origin
 CULTURAL DIFFERENCES - Meaning

 Cultural differences are the various beliefs, behaviors, languages, practices and expressions considered
unique to members of a specific ethnicity, race or national origin

IMPACT : international negotiations and marketing management, reflect

differences in personal values
 HUMAN RIGHTS

 GLOBAL LEVEL
UDHR – Universal Declaration of Human Rights 1993
a. ICCPR – International Covenant on Civil and Political Rights 1966
Art. 26 – Human Rights Committee of UN
b. ICESCR – International Covenant on Economic, Social and Cultural Rights 1966

 NATIONAL LEVEL
THE PROTECTION OF HUMAN RIGHTS ACT 1993
 S.2(1)(d) : Human rights means the rights relating to life, liberty, equality and dignity of the individual guaranteed by the
constitution or embodied in the International Covenants and enforceable by courts in India
 National Human Rights Commission
 HUMAN RIGHTS

 STATE LEVEL
STATE HUMAN RIGHTS PROTECTION ACTS
STATE HUMAN RIGHTS COMMISSION
 HUMAN RIGHTS & BUSINESS
ETHICS

 Human rights and ethics diligence

 Compliance with international human rights standards
 Development of corporate policies and procedures
 Litigation arising from alleged infringements of human rights
 Regulatory investigations in to business practices
 Supply chain diligence, certifications and disclosure requirements
 Managing business ethics risk in transactions
 Risk analysis for business transactions and mitigants
 Disclosure obligations
 HUMAN RIGHTS DILEMMAS IN
BUSINESS

 Discrimination of women
 Unequal pay
 Harassment of colleagues
 Access to banking
 Investments of PF
 Freedom of speech
 DISCRIMINATION

 NATURE OF DISCRIMINATION : meaning – “to distinguish one object from another”

Act of giving an employee or potential employee an unfair advantage or disadvantage in the workplace based on
his or her gender, age, creed, or religion, political affiliation, handicap, marital status or ethnicity
 DISCRIMINATION IN EMPLOYMENT : 3 elements
1. that is not based on individual merit
2. that derives from some morally and unjustified attitude
3. that has a harmful or negative impact on the interest of the employees
 DISCRIMINATION

 SEXUAL HARASSMENT
 RACIAL
 COLOR
 PRICE
 SEXUAL HARASSMENT

 A kind of discrimination directed primarily at women

 Equal Employment Opportunity Commission (EEOC) 1978 guidelines about sexual harassment
 Quid Pro Quo Sexual Harassment - is a form of harassment where someone in a position of power over an
employee offers incentives for certain behaviours
 Hostile environment – a hostile environment is created due to one employee initiating sexual advances
towards another worker
 OFFENCES

 Section 354 A – sexual harassment

 Section 354C – Voyeurism
 Section 354D – Stalking
 Section 354 – assault or criminal force intent to outrage the modesty of woman
 Section 509 – insult the modesty of woman
 RACIAL DISCRIMINATION

 Practice of treating individuals differently because of their race or colour

 Federal law prohibits racial discrimination in the workplace
 Treating someone unfavorably because of a certain race or personal characteristics associated with race –
hair texture, skin color, or certain facial features
 TYPES

 DIRECT DISCRIMINATION
 INDIRECT DISCRIMINATION
 RACIAL HARASSMENT
 VICTIMIZATION
 RACIAL DISCRIMINATION BY ASSOCIATION
 BENEFITS OF CORPORATION FOR
NON DISCRIMINATION

 INCREASES DIVERSITY
 PROMOTES MORAL COMMITMENT
 PROVIDES GREATER OPPORTUNITIES
 COLOR DISCRIMINATION

 Discrimination in the shade of his or her skin color

 Racial and color discrimination – not same
 Treating unfavourably because of skin color complexion
 Harssment in the racial slurs, racially offensive symbols, derogatory remarks
 PRICE DISCRIMINATION

 Price strategy that charges different prices to different groups of consumers for the same product or service
 TYPES OF PRICE DISCRIMINATION

 First Degree Price Discrimination

• Perfect price discrimination
• firm charges a different price for every unit consumed

 Second Degree Price Discrimination

• different price for different quantities
 Third Degree Price Discrimination
• different price to different groups of consumers or varying prices by time of purchase
 LEGAL PROVISIONS

 Section 4 of The Competition Act, 2002

Abuse of dominant position
 S.15 of Constitution – discrimination on the ground of religion, race, caste, sex and place of birth
 CASES FOR PRICE DISCRIMINATION

 Allows an unprofitable business to avoid going bankrupt

 Firms will be able to increase revenue and that can be used for research and development
 Profit maximization
 Some groups benefit from cheaper prices
 Reducing inequalities of personal incomes
 Brings new consumers who otherwise will be excluded by a normal higher price
 Less wastage
 CORRUPTION

 Meaning – misuse of public power for private gain

DEFINITIONS
 Practice of unlawful or improper use of influence, power and other means
 Corruptness is the lack of integrity or honesty, use of position of trust for
dishonest gain
 Corruption is the one which may influence the action of any person by offering,
giving and acceptance of any reward or inducement
 TYPES

 CORRUPTION : 1. Petty level – internal and at small level . Eg: clerk,

low paid servants
2. Grand level - political, industrial, bureaucratic
international level
 BRIBERY V. CORRUPTION

 Bribery is the the act of giving money, goods or other forms of recompense to a recipient in exchange for an
alteration of their behaviour that the recipient would otherwise not alter
 Bribery – specific offence which concerns the practice of offering something, usually money to gain and
illicit advantage
 Corruption – abuse of a position of trust in order to gain an undue advantage
 CAUSATIVE FACTORS

INDIVIDUAL’S PERSPECTIVES SOCIETY’S PERSPECTIVES

1. Culture
2. Inadequate salaries
3. Weak laws
4. Lack of accountability & transparency
5. Other reasons
 IMPACT OF CORRUPTION

 slows down economic development

 Reduces investment
 Increases poverty
 Leads to poor administration
 Decline in human development
 Increases discrimination and unfair treatment
 Supports criminal activities
 BRIBERY

 Practice of offering something (usually money) inorder to gain an illicit advantage

 Bribery can be defined as an unlawful act, but it can also be a business ethics in that a culture includes such
fees as standard practice
 TYPES OF BRIBERY

 ACTIVE BRIBERY : person who promises or gives the bribe to commit the offence
 PASSIVE BRIBERY : offense committed by the receiver of the bribe
 LEGISLATIVE PROVISION
RELATING TO BRIBERY AND
CORRUPTION

 THE PREVENTION OF CORRUPTION ACT 1988 : commercial organizations liable – retain business or
conduct of business
 THE INDIAN PENAL CODE 1860 : Cheating, Criminal breach of trust, Extortion
 The Companies Act 2013 : duty of statutory auditors to disclose any instance of fraud
increased penalties for fraud, provisions for establishment of vigilance mechanisms and audit committees
 THE FOREIGN CONTRIBUTION (REGULATION) ACT 2010 : regulates the use and acceptance of
foreign contributions by corporate entities and individuals
 THE PREVENTION OF MONEY LAUNDERING ACT 2002
 CORPORATE ANTI BRIBERY CODE IN 2017
 HARMFUL PRODUCTS

 Some products demanded by consumers may have potential to do harm if used improperly, or if they are
purchased by customers expressly prohibited from doing so
 Products that are generally good for your health can also become harmful if used in high amounts
 ETHICAL ISSUES IN HARMFUL
PRODUCTS

 Advertising such harmful products often is carried out by covering up the harmful effects and more or less,
glorifying the use of said products
 Companies that are majority involved in the business of these products more often than not do it for the
profit
 Advertising harmful products
 Misrepresentation
 Unrealistic expectation
 Children
 False statistics
 HARMFUL PRODUCTS & CSR

 Questions company’s ethical values and conduct

 In the long term, will lose customer loyalty
 Brand reputation takes a blow
 Increased chances of legal actions against the company
 Basic responsibility towards consumers and the environment
 Suggestions
 Full disclosure
 Informative
 Advertising Restrictions
 POLLUTION

 AIR POLLUTION
 WATER POLLUTION
 NOISE POLLUTION
 MAIN FACETS OF ENVIRONMENT
ETHICS

 RESOLVING CONFLICTS : 1. invisible area

2. visible area
 INTER GENERATIONAL ETHICS : Rawls – present pass on to future generation
 SPIRITUAL ETHICS : extends to reach animals, birds, plants and inanimate objects
 ENVIRONMENTAL PROTECTION IN
INDIA

 STOCKHOLM CONFERENCE 1976

 CONSTITUTION – Art. 48A (42nd Amendment) Directive Principles of State Policy &
 Art. 51-A (g) Fundamental Duties
 THE ENVIRONMENT PROTECTION ACT 1986
 THE FACTORIES ACT 1948 & Amendment 1987
 Hazardous wastes
 PUBLIC LIABILITY INSURANCE ACT 1991
 NATIONAL ENVIRONMENT TRIBUNAL ACT 1995
 THE NATIONAL ENVIRONMENT APPELLATE AUTHORITY ACT 1997
 EXAMPLES

 Bhopal Gas Tragedy

 Exxon Valdez disaster
 Chernobyl accident
 ROLE OF JUDICIARY

 M.C.MEHTA V. UNION OF INDA & Ors.

The Taj Mahal Case
Ganga Pollution case
Oleum Gas Leak case
Delhi Hazardous Industries
Safeguard from radiation
Environmental Education
 M.C.MEHTA V. ARCHELOGICAL SURVERY OF INDIA & Ors.
Delhi Monuments case
 M.C.MEHTA V. KAMALNATH & Ors.
Protecting Beas River
 PRIVACY

 PROTECT PRIVACY OF PRIVATE LIFE FROM UNWANTED PUBLICITY

 CONTROL OVER INFORMATION ABOUT OURSELVES OR OUR PERSONAL INFORMATION
 CERTAIN FACTS ABOUT A PERSON ARE NOT KNOWN BY OTHERS
 PRIVACY

EMPLOYEE PRIVACY CONSUMER PRIVACY

 EMPLOYEE PRIVACY

 Workplace monitoring
 Company collects employees information and data
 Psychological test
 Snoop ware : many organizations monitor employee e-mail and computer files using software
 Disclosure of personal information to persons outside a company
 ISSUES

 Kind of information collected

 Use of such information PURPOSE
 Persons who have access to the information
 Disclosure of information
 Means used to gain information : polygraph, hidden cameras etc.
 Steps taken to ensure accuracy
 The access that employees have to information about themselves fairness
 JUSTIFICATIONS

 JUSITIFIED BY PURPOSE
 Less intrusive used to gather information
 Fairness matters
 CONSUMERS

 use of information gathered in the database marketing

 Spyware : secretly record and report internet activities
 Information broker : collect and sell personal data
 Cookies :
traditional cookies - provide information to a single site, a cookies is deposited with the information
that identifies specifically and
ad network cookies : record your activities across different sites
 Internet privacy
 ETHICAL PRIVACY

 Specify the purpose for collection of data

 Storage of information
 Give employees right to access their personal information
 Disclosure of information