 Ethics – Greek word – Ethika or Ethos – referring to

character  Broadly referring to principles of conduct governing groups or individuals and trying to distinguish between:
 Right / Wrong  Good / Bad  Proper / Improper

 BE is a form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment
 System of moral principles applied in the commercial world  Moral principles concerning acceptable and unacceptable behavior by business people and organizations or corporations

 B E is a normative science – as a branch of philosophy, it is concerned with norms of human conduct
 Not empirical like physics and chemistry  Not formal like math and logic  Ethical decisions are real life and not theoretical  They have an impact on people, society, culture, economy, ecology etc.

History of Ethics  6th Century BC – Pythagoras founded Orphism  5th Century BC – Socrates and Pluto  4th Century BC – Aristotle – Nicomachean Ethics  Propagated theories of Virtues – essentially Good Habits .

Hinduism.Continued. Jainism. then Christianity. Buddhism and Sikhism .. with principles like:  Nature is orderly and rational  Man should endure and renounce worldly goods and trappings  All other religions also had their own theories of ethics – Pre-Christian Zoroastrianism. Islam.  3rd Century BC – Romans developed theory of Stoicism.

Vietnam war  Sale of defective material  Illegal political contributions  Discrimination and reverse discrimination  Trade union tyrannies .History of Business Ethics  1960 – Ralph Nader raised issue of consumer safety from unsafe automobiles  1965 .Unsafe At Any Speed  Watergate scandal.

excessive selfinterest by one will be checked by that of other .Continued.. Purpose of business? In an economically free and competitive society.

Ethics anyone?? .

Morality Term synonymous with Ethics Represents a code of conduct Seems ideal Is more personal than ethics .

g.  Can be applied to social contexts  E.. – Prohibition against taking human lives in the form of:  Mercy killing  Abortions  Wars .Continued.

Stages of Moral Development  Pre-conventional morality:  Self focus and self interest  Forms of punishment. and law and order . obedience and relativity  Conventional morality:  Group focus and pressure of expectation of group from person  Forms of interpersonal concordance.

Continued…  Autonomous / Post-conventional morality:  Universal focus  Impartial orientation  Forms of universal ethical stance and self sacrifice  Development of different individuals at different stages and rates  Implications for managers .

principle. the human within – the quiet judge and arbiter of our conduct .Adam Smith  Adam Smith on ethics and morality:  Why do humans behave in generous and noble ways?  It is due to reason. conscience.

It has to consider whether the action is likely to contribute to its stability. strength and harmony .Peter Drucker  Peter Drucker:  What is important is that management realizes that it must consider the impact of every business policy and action upon society.

people do  Therefore. the people who made the unethical decision should be held responsible . The employee who made the unethical decision  Corporations don’t make decisions.Moral Responsibility  Who is responsible for unethical conduct in business? 3 Views:  1.

Continued. The corporation  Employees’ decisions are made in the context of corporate policies. 2. and corporate culture  Therefore. organizational structure. the corporation as a whole should be held responsible  3.. corporate norms. Both the corporation and the employees involved .

 Does the following reduce moral responsibility?  True ignorance of fact  Ignorance due to negligence  Ignorance of ethics  True inability to do anything else ..Continued.

MNCs  MNC entry into less developed countries:  One nation cannot control them as they operate in      multiple locations Behave more immorally in less developed countries Exploitation of natural resources in host country Exploitation of labor in host country Changes in culture of host country Luring host country nationals into buying products they cannot afford .

Value systems and ethical practices differ from society to society  Decisions are ethical if they result in benefit to larger society and are unethical if they result in benefit to self only  Decisions are ethical if they are proper. just. right and equitable . there is no ‘ethics’ that is universally accepted  Business ethics decisions could be clear or gray.  Ethics is unstructured. good. fair. at the same time.Nature of Business Ethics  Ethics is omnipresent.

Arkansas  Publicly traded in 1970  More than 5000 stores all over the world. with more than 3000 in the US  138 million people shop at Wal-Mart each week  Has had a single minded strategy of ‘Everyday Low Prices’ .Case Study – Wal-Mart  Founded in early 1960s by Sam Walton in Rogers.

Continued. in the US  Largest private employer in the US  Single largest employer in 25 US states  Controls costs through leveraging buying power as the world’s largest retailer and by controlling labor costs ..  Account for:  Being the single largest US importer from China  30% sale of all household goods – domestic products.

 Benefits to all:  Stockholders – financial benefits  Employees – jobs  Consumers – low prices  Businesses – benefits through supplying to Wal-Mart  Beliefs of Sam Walton – ‘respect for individuals.. service to customers and striving for excellence .Continued.

 Flip side:  Least admired corporation  Has been charged with manipulative pricing and     marketing Control of labor costs through paying only minimum wages Very less healthcare benefits provided as an employer Charged with illegally requiring workers to work overtime without pay Has been charged with employee discrimination ..Continued.

Suppliers then need to outsource to keep costs low so that they can supply to Wal-Mart  Significant contributor to practice of sweat-shops .  Has been charged with employing illegal immigrants to keep labor costs low  Has been responsible for closing down small time businesses in smaller towns who find it difficult to compete on basis of prices  Harms suppliers by making them bid for low prices against each other – reverse auction.Continued..

Need for BE  Protect interests of those related to business  Check malpractices  Create an identity associated with ethics  Make people conscious about their rights and responsibilities  Increase customer confidence  Avoid exploitation .

Factors influencing BE Personal code of conduct and behavior Standards of superiors Corporate policies Country’s ethical climate .

Ethical Decisions  Most ethical decisions have long range consequences  They have multiple alternatives  They involve trade off between cost incurred and benefits received  They have mixed outcomes  They are voluntary actions .

Thalidomide  Developed by a German pharmaceutical company Grünenthal in the 1950s  Was found to act as an effective tranquilizer and painkiller and was proclaimed a "wonder drug" for insomnia. colds and headaches . coughs.

more than 10.. the wonder drug was found to be effective on morning sickness.  Also.000 children in 46 countries were born with deformities such as phocomelia as a consequence of thalidomide use  Early research findings not taken seriously enough .Continued. so thousands of pregnant women took it to relieve themselves of morning sickness during the first 2 trimesters of pregnancy  In the late 1950s and early 1960s.

.Continued. but pregnant women vacationing in Europe had access to it.  US had not permitted the drug due to inadequate testing.  In 1968 Chemie Grünenthal executives were tried for involuntary manslaughter .  Free samples distributed to physicians – ethics issue.

.Continued.  By this time the company stated that Thalidomide was not recommended for use during pregnancy as such  The qualifying term obstetrics was employed.  It was used in hindsight to strengthen the argument that doctors would interpret the word to mean either the final stage of pregnancy or from conception to delivery .

Corporate Responsibility  Responsibility towards shareholders:  Safety of investment  Maximizing dividends  Participation in management  Information to shareholders  Retaining public image .

 Responsibility towards consumers:
 Production as per requirement  Prompt and adequate service

 Co-operation
 Adequate research and development  Testing of products  Innovation  Improvement

 Responsibility towards workers / employees:
 Fair wages  Security

 Opportunities for development
 Proper working conditions  Trade union rights

 Responsibility towards community and

Government:  Abide by laws and regulations  Cooperation  Improvement of community standards by spread of education and through other help

Drivers of CSR  Ethical consumerism  Globalization and market forces  Social awareness and education  Laws and regulations  Crisis and consequence .

British American Tobacco and McDonalds  Reeks of corporate hypocrisy and insincerity as companies claiming to promote CSR simultaneously engage in harmful activities .CSR Concerns  Purpose of corporations is to maximize returns of shareholders  CSR with questionable motives – BP.

Types of Ethics  Philosophical Foundations of Ethics:  Ethics is a brainchild of philosophy  Philosophy is a study of thoughts and morality  Ethics:  Normative ethics  Meta ethics .

or what is goodness and bad . morally speaking? Meta Ethics tries to look at what is right and what is wrong.Normative and Meta Ethics Normative ethics tries to discover criteria or rules with which moral judgments can be made – how ought one act.

Normative Theories  Normative ethics has the following theories:  Relativism  Teleological theories Egoism  Utilitarianism  Deontological theories  Immanuel Kant’s Categorical Imperative  .

Relativism  Relativism:  Ethical standards must be regarded as relative to and dependent on individual and society  No action can be judged right or wrong or good or bad by a universal standard that applies to all people at all times  Cultural relativism says that no standards can judge morality of a particular culture .

Relativism – Continued.  This approach ensures that we acknowledge diversity and are ready to face the challenges of it professionally  It is the opposite of ethical absolutism which holds that morally right behavior is cross cultural and holds good across all kinds of society ..

 Teleological theories determine rightness and wrongness of actions by looking at the end of the action  The ends or consequences of an act determine whether an act is good or evil  It is consequentialist in nature .Teleological theories  Teleological theories:  Derived from the Greek word ‘Telos’ meaning End.

then it is Egoism ..Continued. Egoism: If the good produced is supposed to benefit only the agent of action.

gave the concept of Utility to the world  .Continued. an English Philosopher..  Utilitarianism: The good produced should benefit maximum number of people  Jeremy Bentham. and legal and social reformer.

or ‘The Principle of Utility’ .  His basic principle was that:  The right act or policy was that.Continued. which would cause "the greatest good for the greatest number of people"..  Also known as “The Greatest Happiness Principle".

.e. i. It is the idea that the moral worth of an action is solely determined by its contribution to overall utility. its contribution to pleasure or happiness among maximum persons .Continued.

 Traditional Utilitarianism holds that an action is right from an ethical point of view if and only if the sum total of the utilities produced by that act is greater than the sum total of the utilities produced by any other act the agent could have performed in its place ..Continued.

 Which thereby means that only one action is right  Immediate and foreseeable cost and benefit analysis of each action needs to be taken into consideration  That alternative that produces the greatest sum total of utility must be chosen as the ethically most appropriate action ..Continued.

of Ford ordered engineers to build a car that was ‘not to weigh an ounce over 2.000.’ .Case Study – Ford Pinto  Late 1960s – US cars manufacturers were in danger of being overshadowed by Japanese car makers  Lee Iaccoca. then President .000 pounds and not cost a cent over $2.

.Continued.  Normal time for a car from conception to production is 43 months  Pinto was brought to the shopfloor in 25 months  Testing after design and initial production revealed a serious defect in the placing of the gas tank  Design required the gas tank to be placed behind the rear axle. where it became vulnerable to being punctured in case of a rear end collision of more than 30 miles per hour. possibly burning the trapped passengers .

. continued on grounds that:  Design met with all applicable legal and governmental standards then  Government regulations required that the gas tank remains intact in case of a rear end collision of less than 20 miles per hour  Ford Managers felt that the car was comparable in safety with other cars in the same segment  Cost benefit analysis showed that it was more beneficial to go ahead with production .  Production was none the less.Continued.

$137 million  Statistical Data:  Modification would prevent loss of:  180 burn deaths valued at $200.5 million  Cost of design modification .Analysis of cost benefit  Cost:  Autos to be produced – 12.$11 per unit  Total cost .000 each  180 injuries valued at $67000 each  2100 cars valued at $700 each .

Continued.15 million  This is a utilitarian view of cost benefit analysis ..  Benefits:  In monetary terms. the modification would have the benefit of preventing losses with a total value of $49.15 million  Argument is that it is not correct to spend $137 million of society’s money to provide a benefit that was valued at $49.

. This one lawsuit was three times what Ford executives and engineers had estimated their final cost would be.. and lawsuits involving millions of dollars. a California jury created a nationwide sensation when it awarded the recordbreaking sum of $128 million in a lawsuit stemming from a Pinto accident.Continued.  After about 60 deaths in the following decade and numerous burns cases.5 million units of the car in 1978  In February of 1978. Ford recalled 1.

freedom etc.Problems of Measurement  Measuring utility is in itself a challenge  How can the utilities that different actions have for different people be measured and compared?  Some costs and benefits are intractable to measurement – like value of health and life  Some costs and benefits cannot be immediately and reliably predicted  What is a cost and what is a benefit?  Who and how do we measure the value of non economic goods – love.? . beauty.

Illustration:  Using low wage foreign workers in response to price competition  Retaining market share by decreasing capital cost  Laying off some US workers in the process and retaining some  Refusing to use low wage foreign workers might end up in a situation where US workers also are laid off and foreign workers don’t benefit in any case. for whom the income might be essential .

Deontological Theories  Derived from the Greek word ‘Deon’ meaning obligation or duty  It is an approach to ethics that judges the morality of an action based on the action's adherence to a rule or rules  Deontologists look at rules and duties .

people must act from duty  It was not the consequences of actions that make them right or wrong but the motives of the person who carries out the action  The highest good must be both good in itself. and good without qualification .Immanuel Kant’s Theory  To act in the morally right way.

such as pleasure. intelligence etc.  Those things that are usually thought to be good. . fail to be either intrinsically good or good without qualification  Nothing in the world .indeed nothing even beyond the world ..Continued.can possibly be conceived which could be called good without qualification except a good will.

. regardless of any utilitarian benefits that might arise out of them  Categorical Imperative:  Everyone should be treated as a free person equal to everyone else .  There are some moral rights and duties that all human beings possess.Continued.

and only if.  First formulation of Kant’s Theory of CI:  An action is morally right for a person in a certain situation if. at least in principle . in any similar situation  Universalizability – the person’s reasons for acts must be reasons that everyone could act on.Continued.. the person’s reason for carrying out the action is a reason that he or she would be willing to have every person act on.

. and only if. but also respects and develops their capacity to choose freely for themselves . the person does not use others merely as a means for advancing his interests. in performing that action.  Second formulation of Kant’s Theory of CI:  An action is morally right if.Continued.

W D Ross  Duty of beneficence: A duty to help other people (improve conditions of others)  Duty of non-maleficence: A duty to avoid harming other people.  Duty of self-improvement: A duty to improve ourselves. .  Duty of justice: A duty to ensure people get what they deserve.

 Duty of reparation: A duty to recompense someone if you have acted wrongly towards them.
 Duty of gratitude: A duty to benefit people who have benefited us.  Duty of promise-keeping: A duty to act according to explicit and implicit promises, including the implicit promise to tell the truth.

Rights and Justice
 Utilitarianism is unable to deal with moral

issues related to rights and related to justice  Some utilitarian actions which are deemed to be morally right, actually violate people’s rights or could be unjust to some  By engaging in utilitarian acts, corporations might snatch away the right to information, choice etc. of people

Concept of Right
 Right is an individual’s entitlement to

something  Legal rights: Entitlements that are derived from the legal system – permission or empowerment to act in a specified way  Moral rights: Entitlements that are derived from moral systems – that people have just by the virtue of being human beings

Continued.  Features of rights:  Rights are correlated with duty  Rights provide individuals with autonomy in pursuit of their interest  Rights provide basis for justification of actions  Utilitarianism defies the Rights theory  While looking at maximum utility to many.. it takes away the rights of some .

by a chemist  Crucial contributions are mass production of penicillin and super-specialization in psychiatric medicine  Innovations – fruit flavoring of medicines and sugar coating of pills .Case – Eli Lilly  Eli Lilly – a pharmaceutical giant. was founded in 1876 in Indiana.

. suffer from organ failure or damage etc.  Testing of drugs is a situation which contradicts itself:  FDA requires drugs to be tested on healthy humans to determine side effects  Healthy humans will not offer themselves as subjects to untested drugs  Test subjects can die.Continued. .

soup kitchens etc  Tests running for several months ensured all three for these people  Tests provided enormous benefit to society ..Continued.  Eli Lilly discovered a large number of volunteers willing to take untested drugs at $85 per day plus free food and shelter  Source was homeless people taking refuge in shelters.

 Participants needed to give ‘informed consent’  The people whom Eli Lilly had chosen were mostly illiterate. so even if they had signed a consent form. they had no clue what they were getting into ..Continued.

Justice and Fairness  These are essentially comparative terms  They are concerned with comparative treatment is given to members given when:  Rules and laws are administered  Benefits and burdens are distributed  Punishment is decided  Groups are in competition or cooperation .

relevant to the kind of treatment in question. should be given equal / similar benefits and burdens. even if they are dissimilar in other irrelevant respects .Types of justice  Distributive justice:  Concerned with sharing burdens and benefits with members of a society  Individuals who are similar in all respects.

.. task.  Justice as equality – Egalitarianism:  Every person should be given exactly equal in terms of burdens and benefits  Justice as contribution – Capitalist:  Benefits and burdens should be distributed according to the value of the contribution the individual makes to the society. group etc.Continued.

.Continued. if it is the result of individuals freely choosing to exchange with each other the goods each person already owns .  Justice based on needs and abilities – Socialism:  Burdens should be distributed according to abilities and benefits according to peoples’ needs  Justice as freedom – Libertarianism:  Any distribution of benefits and burdens is just.

.  Justice as fairness – Rawl’s Theory:  Principle of equal liberty – each person’s liberties must be protected from invasion  Principle of difference – steps must be taken to improve the position of the most needy members of society  Principle of fair equality of opportunity – everyone should be given an equal opportunity to qualify for more privileged positions in society .Continued.

Retributive Justice  Justice of blaming or punishing a person for wrong actions  People cannot be held morally responsible for what they do out of ignorance or inability  There should be certainty before punishing about the person being actually wrong  Punishment should be consistent and proportioned to the wrong .

Compensatory Justice  Justice of restoring a person what he / she has lost when wronged by someone  Compensation should happen only when the action causing the harm was deliberate and wrong  The person’s action was the real cause of harm .

physical capital and intellectual capital . previously warring countries need to be cooperative with each other  Modern society – free movement of monetary capital.Building a Good Society  Society is a dynamic and ever changing body  Base level classification is Warrior Society and Industrial Society  As industrialization and economic activities increase.

Continued.  Businesses therefore need to be wise about instituting changes which benefit only themselves  Extreme concentration on own survival could lead to a self defeating scenario of consumers lacking means to buy products and enjoy services  It is therefore in the best interest of a business to build a good society ..

Continued.  A good society is a just society where everyone shares burdens according to capability and benefits according to contribution  As Gandhiji puts it: it is a society where the poorest of the poor are just as happy as the richest of the rich ..

Organizations  Organizations do not exist in isolation. but operate within an environment of:  Investors  Suppliers  Customers  Government  Competitors  Employees  General Society .

 Every action that an organization performs is bound to have an effect on someone  Businesses face ethical decisions in mere existence through:  Choice of product or service  Labor management  Advertising and promotions ..Continued.

 Finally. businesses do a cost-benefit analysis and take most decisions depending on the result of weighing factors against each other  Businesses are more amoral than immoral  Their existence boosts economy.Continued. and actions stir society  Adherence to ethics does not matter. but violation is noticed ..

Types of Business Ethics  General Business Ethics:  Corporate social responsibility  Moral rights and duties between a company and its shareholders  Ethical issues concerning relations between different companies  Leadership issues – corporate transparency  Misuse of ethical policies as marketing instruments .

Finance and Accounting: Creative accounting Misleading financial analysis Insider trading Executive compensation Bribery / facilitation payments .

IPR / Knowledge and skills Patent and copyright violation Employee raiding / poaching Bio-prospecting and bio-piracy .

Human Resource Management  Discrimination on basis of age. gender. disabilities  Illegal Unionization / union busting  Issues affecting privacy of employee – surveillance  Whistle blowing  Fairness of contracts  Compromise on occupational safety and health . religion. caste.

Sales and Marketing:  Anti-competitive practices – dumping. product tying etc. exclusive dealing.  Advertising – attack ads. harmful products  Marketing strategies – bait and switch. viral. spamming  Black and gray markets  Marketing in schools  Marketing in vulnerable groups . price fixing.

carbon emissions etc. radiation due to microwaves and mobile phones etc.  Product testing ethics – animal testing and testing on economically backward groups .Production:  Production of defective.  New technologies – genetic modification. addictive and dangerous products  Production and environmental effect – pollution.

Sustainable Responsible Business (SRB). Responsible Business. Corporate Citizenship. or Corporate Social Performance  Form of self regulation integrated into business models . also known as Corporate Responsibility.CSR  Corporate Social responsibility (CSR).

regardless of legality. employees. communities.. . and voluntarily eliminating practices that harm the public sphere. consumers. stakeholders and all other members of the public sphere  CSR-focused businesses should proactively promote the public interest by encouraging community growth and development.  A business is expected to take on responsibility for the impact of its activities on the environment.Continued.

.Continued. Planet and Profit . Essentially. and honoring of a triple bottom line – People. CSR is the deliberate inclusion of public interest into corporate decision making.

Drivers of CSR  Ethical consumerism  Globalization and market forces  Social awareness and education  Laws and regulations  Crisis and consequence .

CSR Benefits  Human Resource benefits by ensuring an identity to potential recruits  Risk mitigation  Brand differentiation .

British American Tobacco and McDonalds  Reeks of corporate hypocrisy and insincerity as companies claiming to promote CSR simultaneously engage in harmful activities .CSR Concerns  Purpose of corporations is to maximize returns of shareholders  CSR with questionable motives – BP.

and funded by the corporate executives who find that it serves their bottom line.Criticism  Thomson-Reuters columnist Chrystia Freeland has called CSR “a fetish encouraged by the philanthropies that feed off it.”  Consumers have been willing to pay more and buy more from companies with a CSR halo .

and cultures have become integrated through a globe-spanning network of communication and execution.Unit 3 – Globalization & Ethics Globalization describes an ongoing process by which regional economies. . societies.

economic and political activities.territorialisation Globalisation is the increasing and progressive eroding of the relevance of territorial bases for social. processes and relations .De .

Continued. Free flow of : Goods and services Labor and people Capital Technology ..

Some policy changes
Promotion of free trade: Elimination of tariffs, creation of free trade zones Reduced transportation costs, especially for ocean shipping. Reduction or elimination of capital controls Reduction, elimination, or harmonization of subsidies for local businesses Creation of subsidies for global corporations Harmonization of intellectual property laws across majority of states

Because of that:
 Increasing level of uncertainty in the following areas:
 Consumer demand for goods and services  Supply of inputs, resources and services  Government policies  Nature of relations among countries  Indirect repercussions of globalization like terrorism,

nuclear wars, bio-warfare, global warming, diseases etc.

Globalization and Ethics
 Globalization has brought forth ethics issue more
 Organizations attain a competitive edge due to ethical

practices  Companies need to deal with ethics as one of the backbones of corporate strategies  Realization that being ethically proactive is better than ethically reactive  Value creating strategies are being recognized as USPs; more than products and services

Changing business practices according to the geographical location  Bribery and corruption  Human rights  Consumerism  Safety and environmental issues .Absolute against relative  Business being conducted in the same way everywhere in the world. Or.Global Ethical Issues  Global business strategies .

 Have ethics policies or mandates  Appoint ethics officers to ensure compliances  Routinely have ethics audits  Require suppliers to participate in the ethics programs .Global Businesses Should:  As part of ethics.

 Encourage suppliers and self to not to participate in any human or employment rights abuses  Support and respect human rights  Encourage and promote diversity in organizations .Continued..

Ethics Policy:  A statement pertaining to ethical conduct of employees and organization  Setting of expectations  Offering guidelines on handling ethical issues  Creating awareness about ethics .

It should be:  Given unequivocal support of top management through word and example  Explained in writing and verbally with reinforcement  Doable and easy to understand and perform .

Continued.  Monitored with routine inspections for compliance and improvement  Backed by clearly stated consequences in cases of disobedience  Should remain neutral and nonsexist ..

Global Good Society  Environmental perspective  Take care of finite resources  Encourage innovation in new material development  Invest in research  Economic  Concentrate on long term sustainability instead of short term profits  Social  Social responsibilities of business .

.  UN Millennium Development Goals        Eradicate extreme poverty and hunger Promote gender equality and empower women Reduce child mortality Improve maternal health Combat AIDS. Malaria and other such diseases Ensure environmental sustainability Develop global partnership for development .Continued.

Moral Issues in Business  Environmental Protection:  Role of industry and business in the overall degradation of ecology and environment is large  Clean air and unpolluted water are basic human rights. which so many people do not get .Unit 4 .

.  The activities generally considered harmful and their repercussions are:  Deforestation  Burning of fossil fuel  Leading to depletion of ozone layer  Increase in pollution  Unexplained phenomenon like acid rain  Global warming .Continued.

petroleum. natural gas  Fossil fuels are non-renewable resources because they take millions of years to form. coal. and reserves are being depleted much faster than new ones are being made .Fossil Fuel  Fossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms  Typically.

 The burning of fossil fuels produces around 21. so there is a net increase of 10.3 billion tonnes of carbon dioxide (CO2) per year. causing the average surface temperature of the earth to rise .65 billion tonnes of atmospheric carbon dioxide per year  Carbon dioxide is one of the greenhouse gases that enhances radiative forcing and contributes to global warming.Continued. but it is estimated that natural processes can only absorb about half of that amount..

Continued.  Agriculture:  Over grazing  Over cropping Soil erosion  Increased ground water salinity through depletion  ..

.  Chemical.Continued. automobile industries  Smoke and emission  Combustion of fossil fuel  Air pollution  Water pollution . metal processing. manufacturing. oil.

fish and animal life Poisons entering human food chain through edibles Increase in respiratory diseases Increasing number deformities at birth owing to pollution levels ..  Ground pollution through dumping toxic waste  Releasing effluents into oceans and rivers  Usage of fertilizers     Harm to food.Continued. water.

. earth and water with human intervention of substances that in turn cause harm to human beings and the environment  Usually considered relative in nature .Continued.e.  Pollution  Pollution is defined as the contamination of our living environment i. air.

 Rising population putting pressure on natural and man-made resources  Indiscriminate and unplanned growth of cities  Use of motorized vehicles  Industrial activities .Causes of Pollution  Natural factors like volcanic eruptions. floods. dust storms etc.

Other related issues:  Renew – ability of resources  New discoveries in resources  Resources being used faster that created  Extinction of species in fish. plants and animals .

Role of Business  Business and industries need to play a crucial and pro-active role in environment protection:  Use of pollution control in factories  Improve methods and techniques of production thereby minimizing waste and scrap  Use of eco friendly technology  Production of eco friendly products  Proper enforcement of governmental laws and regulations .

Continued..  Environment related international compliances .  Proper safety measures set and adhered to  Thorough maintenance of material  Training to workers  Environmental audit  Funds. tree plantations etc.

cultural and CSR issues  ISO 14000 – for environment management  Social Accountability International – SA8000 for labor and working conditions .Social Accounting Standards  Responsibility for impact on society  Set up of certain standards:  Green Globe Certification – for sustainability in environmental.

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