Be All PPT - Merged

Business Ethics
Dr. Trilok Sharma

Session-1:
A Comprehensive Perspective
‘Business Ethics’
Business Isn’t it an oxymoron ?
Ethics?? ★ Purpose of Business….

What is ★ Purpose of Ethics….
that ???
Business
Ethics??
What is
that ???
Business
Ethics??
What is
that ???
Business
Ethics??
What is
that ???
Objectives
● To understand the basics of ethics and its significance in the

business.
● To understand the various factors affecting business ethics.
● To develop the competence of the students in understanding the
scope, advantage and limitations of business ethics.
● To impart the knowledge about the ethics and values in business.
Introduction
In the current globally competitive business environment

ethical conduct is the key to success for every business
organisation.
Ethic defines a thin line between wrong and right, it

basically guides an individual or an organisation according
to the morally correct and socially acceptable norms.
Definitions
“A system of accepted beliefs that control behaviour, especially such a system based on
morals.” -Cambridge dictionary.
“Moral principles that govern a person’s behaviour or the conducting of an activity.”

Oxford dictionary.
"Business ethics is the study of business situations, activities and decisions where issues
of rights and wrongs are addressed". -Andrew
Crane.
In nutshell it can be said that the business ethics are the broad guidelines which steers an
organisation in the legitimate and socially accepted pathway that leads to long run profitability for
the organisation and welfare of the society.
➔ Values are beliefs and thoughts of a
community or culture that stimulate them to
act in a certain manner.
➔ It triggers their inner concise to behave in a
certain way.
➔ Values have an impact on the way an
Values
individual responds or behaves in the given
circumstances. Honesty, truthfulness, fairness
etc are examples of personal values.
Morals ➔ In many situations the value set of an

individual defines his actions.
➔ An individual derives values from his/her
Behaviour socio cultural environment but his/her family
background also plays a vital role in formation
of value set for him/her.
➔ The word has been derived from Latin
'Moralis' which means character.
➔ It counts on Righteous' and assuming
what is right and what is wrong.
➔ Morality is about setting a higher
Values standard for conduct in the light of

righteous behavior acceptable by
Morals
society and backed by culture or
religion.
➔ Morality of a person is reflected in the
Behaviour choices he makes and decisions he
takes.
➔ It reflects the temperament of an
individual.
➔ It flashes the vibes that a person
exhibits while interaction with others.
➔ It is the way an individual expresses
Values himself and interacts verbally or non-
Morals verbally through his actions in a

group or society in the prevailing
Behaviour circumstances.
Business ethics are the golden rules within the moral
framework of socially accepted conventions that guides the
way a business acts. They are set of rules that decide the
right and wrong. Ethics of a business can be defined by
written and unwritten codes of principles and values that
Ethics control the decisions of a company.
Ethical issues at the workstation can be:
In Harassment Misrepresentation of data or facts
Business Fraud Filtering of information

Theft Insider trading.
Malpractice Poor disclosure
Business ethics are the broader guidelines based or morals
for the rightful conduct of business in line with the socially
acceptable norms. The ethics defines the acts, policies,
decisions of an organisation in the light of right and wrong.
The business ethics are also based on certain principles.
Principles The founding principles of business ethics are as follows
of Respectfulness Trustworthiness
Business
Sense of responsibility Legitimate
Altruistic Law abiding

Ethics Commitment to Social Justice
excellence
Profit is earning is the main motive of every business and it is
the universal truth that every businessman wants to achieve
profits. Earning profits is not at all unethical, provided it is not
through hook and crook i.e. by harming others and involving in
fraudulent activities. Primarily a business organisation should
Why Ethics endeavour ethical behaviour because -
➢Ethics are related to code of conduct.
in
➢Ethics guide good and bad.
Today’s ➢Ethics distinguish the right way of doing things and
wrong means to achieve ends.
Business ➢Ethics define the things that harm others and are
unethical.
World? ➢Ethical conduct safeguards the organisations interest in
the long run
➢It acts as a protective shield against legal wrangles.
In the present globally competitive environment business
How ethics play a key role in the survival of any business

organization.
Relevant is Ethical behavior endeavors good name and reputation in

the market which helps an organization to overcome the
cut throat competition the long run.
Ethics in It is not just about the competitors, in the free economy
Today’s
the flow of information cannot beholden for a long time.
Today the investors and the consumers are empowered
with the information, they have many choices in the
Business market and they are fully aware about their rights.
In such circumstances an organization cannot succeed
World? in the long run with maleficent business practices
so following good business practices and enduring
ethical conduct becomes binding for every business
organization.
Most importantly, the reasons for the ethical behavior in
How the business in the current business environment are as

follows.
Relevant is 1 Deals with human beings

Ethics in 2.Protects the interest of society
Today’s 3. Gratuitous:
Business 4. Code of conduct
World? 5. Moral and social values:
6. Entrustment
Ethics clarifies the difference between good and bad, correct
or incorrect, right and wrong, proper or improper from the
perspective of socially accepted norms. Business ethics are
those axioms, practices and ideologies which are related with
Attributes moral judgement in the decision making process related to

the business. Followings are some of the significant attributes
of the business ethics.
of Ethical values Guiding principle
Business Relative Term Provides framework
Ethics Interest of the society Systematic study.

Code of conduct Universal application
Business – Society dynamics
● As it is a well established fact that no business runs
in isolation. It needs the society and society is
composed of various environmental factors.
●
Does These environmental factors are highly dynamic in
the nature and have direct and sometimes indirect
bearing on the functioning of the business
Business ●
organizations.
The ethical behaviour of an organization is reflected
Ethics ●
in the decisions taken by the organization.
Being the part and parcel of society the business
organizations and their decisions are also affected
Gets by the changes in the environmental factors.
● These factors may be Internal factors related to the
Affected? ●
organization or the External factors.
The internal factors related to an organization can be
controlled by some extent but external factors are
beyond the control of the organization and are highly
dynamic in nature.
Internal Factors
Internal factors are related to the business organisation.
They can be controlled to some extent. Internal factors
Does affecting business ethics are largely govern by vision,
mission, policies and company culture.
Business Vision statement Perception
Ethics Policy statement and

programmes
Individual
characteristics
Gets Psychological attributes Leadership
Affected? Measurement and follow ups Company Culture
Targets and Budgets Atmosphere

External Factors
Unlike internal factors external factors are highly dynamic in
the nature. External factors affecting business ethics are
Does beyond the control of any organisation. No individual lives

in isolation all come from a social background this background
consist of values and belief system which we get through our
Business family, society, culture ect.
Society Government Philosophy

Ethics
Technology Regulatory and legislative
Gets framework
Competition Public perception of law

Affected? Religion and Role of ethical values in society
culture
Almost every business has high level of dependency over
society for inputs and for disposing off its output. Ethical
behaviour of a company creates a good image about it,
Need which ultimately is beneficial for the company itself.
A business firm cannot run in isolation it needs people,
And resources which comes from the society.
Followings are the reasons why ethical behaviour is so
Significance important for a business perspective:
Of Survival Controls Transgression
Business Contentment Smooth functioning of business
Ethics Protection of society Protection of consumer right
Portray a good picture of business

Business ethic has pervasive dimensions.
The concept of ethics is so wide that it is
Business
applicable in almost all the walks of life.
It is always desirable to be ethical in the conduct
Ethics let it be personal or professional front of the life.
1. Ethics in conformity
Are 2. Ethics in finance
Pervasive 3. Ethics in human resources
In Nature 4. Ethics in marketing

5. Ethics in production
Business ethics play a vital role in achieving sustainable
Boons growth. Especially when the decisions have significant

consequences, the ethical aspect of business and society
dynamics cannot be overlooked. Endeavouring ethical
of business culture in the organisation is also significantly
desirous.
Business As it has many benefits attached to it, which are discussed as
below.
Ethics 1 Attracting and retaining talent

2 Investor Loyalties
(Why should an
3 Customer Satisfactions
Organisation
4 Regulators
follow the ethics?)
5. Build customer loyalty
6. Retain good employees
Stumbling As there are many benefits attached to the ethical
behaviour of the business there are some costs
Blocks in are also there which has to be paid by the
organization.
Implementation
As these part of business ethics can be said as
of other side of the coin.
Business 1. Ethics - Cost on the resources

Being ethical involves cost. In order to provide
Ethics quality products at reasonable and affordable
(what stops an price without involving in any malpractice one
needs to incur some cost.
Organisation to
In order to reduce their cost many businessman
follow the ethics?)
indulge in malpractices such as hoardings,
adulteration etc.
2. Reduction in profits
Stumbling When cost increases the profits automatically
Blocks in goes down. In order to work ethically one has to
Implementation incur some cost and thus the profits margins get
affected.
of
It can be also explained as when your competitors
Business are involved in malpractices and incurring huge
Ethics profits one can also get tempted towards such
(what stops an malpractices and earning more profits.
Organisation to
Even if there are some stumbling blocks in way of
follow the ethics?)
implementing ethics in the business; the boons
attached to this are countless.
Examples of
a few
Unethical
Business
Practices
Ability may get you
to the top, but it
takes character to
keep you there.
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Business Ethics
Dr. Trilok Sharma
Session 2
Theories & Approaches of Ethics
Objectives
In this session we will discuss about various approaches and theories of ethics
propound by different scholars and give a deep insight to the contentious
psychological issues related to morality. After completing this session, you -
1. will get a fair idea about various ethical theories and approaches developed
by philosophers and different scholars.
2. should be able to develop a strong analytical power to differentiate ethical
and unethical practices.
3. shall have a better understanding of the acts of morality and different
psychological contradictions attached to those actions.
Introduction
➢ Can you analyze an ethical issue in a way that you can justify to
others?
➢ Today we will learn some ways of doing this.
➢ Always remember, Ethical issues and their solutions are not like
solving mathematical problems with a single solution. There could be
multiple right answers.
➢ “Theories of Ethics” are the outcomes of the thinking of different
Philosophers who tried to grapple with the basic question, How do
you know that what you are doing is right???
Philosophical Foundations
1. Consequentialism Or Utilitarianism:- Principle of

Greatest good for the greatest number. (which
focuses on Consequences)
2. Principle of Duty, Right and Justice
3. Universal Principles, Theory of Moral Instinct
Theoretical positions
1. Soul based school
Universal codes possible – Take recourse to spirituality – Vedanta, Hindu,
Christian / catholic scriptures, yoga and meditation
1. Mind based school
Choice and rationality – Inherent goodness of mankind –
Soul a metaphysical construct
TEN COMMANDMENTS OF SANATAN DHARMA

In Ashtanga yoga part of the Patanjali Maharshi’s yoga sutra, 10
commandments are given as primary requirement for learning and teaching
yoga. But these commandments are essential qualities of all persons and can
be applied in his/ her daily walks of life.
These commandments can be learnt under two headings:-
Yama are ethical discipline transcending creed, Niyama are rules of conduct that apply to individual and
country, age and time. These commandments are are self-purification by discipline.
rules of morality for the society and the individual. Five niyamas are:-
1.Ahimsa (non violence) 1.Shaucha (purity)

2.Satya (telling and doing truth) 2. Santosha (contentment)
3.Asteya (stealing) 3. Tapas (ardour or austerity)
4.Bramahmacharya 4. Swadhyay (study of self)
5.Aparigraha (non-coveting) 5. Ishwara pranidhana.(sakshi bhav)
Theories of Ethics
Theories of ethics are the different approaches towards the moral behaviour of a
person at individual level, with others and in the society.
Ethical theories help in deciding the criteria for justifying the action of a person
whether his/her actions are ethical or unethical.
These theories help in understanding the issues related to morality.
It gives a better justification of what is moral and what is not.
The different theories of ethics propounded by various scholars and ethical
psychologist are divided into Four major theories, namely- 1. Meta Ethics, 2. Normative
Ethics, 3. Applied Ethics, and 4. Shareholders & Stakeholders Theory of Ethics.
Meta ethics is about the study of the things exists in
Theory 1
the universe.
The universe is an exceptionally astonishing unique
combination of physical and non physical elements.
Meta For example the mountains, sea, rocks, etc are

physical in nature whereas the thoughts,
Ethics
conventions, god and spirits are no physical
elements of the universe.
For the better understanding of Meta ethics issues
they are clearly divided into two streams:
1. Metaphysical issues and

2. Meta Psychological issues.
Normative ethics is all about classifying the
human actions into right and wrong.
Theory 2
It is that part of moral philosophy which
basically studies the ethical actions.
Normative It heavily draws from the set of good
Ethics
character principles.
Normative ethics are based on one basic
principle, criteria or golden rule which stands
as a landmark for judging all the human
actions whether they are morally correct or
not.
With the further development in the field of ethical philosophy
the normative ethics were further classified into three parts.
Theory 2
Virtue Duty Theory Consequentialist
Normative
Theory Theory
★ Samuel ★ Ethical egoism,

Pufendorf’s Ethical altruism
Ethics Approach
★ Right Theory
★ Kant’s
and
Utilitarianism
★ Jeremy
Approach Bentham’s
★ W.D.Ross’s Utilitarianism
Approach ★ Hobbes Social
Contract Theory
● Applied ethics are that part of moral
philosophy which deals with controversial
Theory 3 issues of the human life.
● These ethics are not the rules of policy matters
Applied they are simply the issues needs immediate

attention on which people differ in their
Ethics
opinion.
● The media on daily basis also discusses the
current contentious issues related to different
sections of the society, economy, and politics
but all those issues cannot be considered as
applied ethics.
For qualifying the criteria to be considered as applied
Theory 3 ethics two basic conditions has to be fulfilled, firstly

the issue needs to be contentious and a fairly large
number of people must be in favour and similarly
Applied large number of people must be against the issue.
Ethics
The second criterion for being an applied ethic is that
the issue has to be moral or related to morality. The
controversial issues related to economy, military
actions, economy etc cannot be considered as
applied ethics unless and until an issue related to
morality of an action is not questioned.
Theory 3 Issues in Applied Ethics
Applied
a) Issues related to environmental ethics
b) Issues related to business ethics
Ethics c) Issues related to medical ethics
d) Issues related to sexual morality
e) Issues related to social morality

Dr. Freeman defined the stakeholders as the
Theory 4 groups without whom the organization cannot
survive and succeed in the long run.
Shareholders These groups are made of the people in the society

and includes:-
and
➢ Employees ➢ Suppliers
Stakeholders ➢ Creditors ➢ Dealers
Theory of ➢ Investors ➢ Customers
Ethics ➢ Govt. bodies ➢ Local community

According to the Dr. Freeman an organization
Theory 4 cannot be successful in the long run without
fulfilling its obligations towards the different
Shareholders segments of the society.
and According to him the only way to survive the
Stakeholders cut throat competition and to be successful in

business is to be benevolent towards the
Theory of stakeholders of the company as the
Ethics stakeholders play a key role in deciding the

fate of any organization.
● An organization cannot be
Theory 4 successful for a long time by
exploiting its employees or by
Shareholders
cheating its customers.
and
Stakeholders ● At one point of time they will realize
Theory of the exploitation and get dissatisfied

which will bring a downfall to the
Ethics
company.
Final Points
Teleological Ethics Deontological Ethics
This concept is exemplified Deontology is a theory that
by the famous aphorism, suggests actions are good or bad
"the end justifies the according to a clear set of rules.
means," i.e. if a goal is Its name comes from the Greek
morally important enough, word deon, meaning duty.
any method of achieving it is Actions that obey these rules are
acceptable. Teleological ethical, while actions that do not,
theories differ among are not. This ethical theory is
themselves on the nature of most closely associated with
the particular end that German philosopher, Immanuel
actions ought to promote. Kant.
There is no such thing as a right or wrong decision.
A decision is a vehicle to help

you take action, and taking
action is the only way you move
forward.
It's the only way you live life.

Refusing to make a decision is like taking a pause on life.
Too many choices exhaust us, make us unhappy
and lead us to sometimes abscond from making a
decision all together. ...
“As the number of options increases, the costs, in

time and effort, of gathering the information
needed to make a good choice also increase,”
- Schwartz.
Business Ethics
Dr. Trilok Sharma
Session 3
Ethical Dilemmas
Let us look back
1. It is possible to reason, up to a point, the ethics of a decision.
2. There are multiple approaches that needs to be utilized. They may
lead to different conclusions. Again, you need to apply your value
system to make a choice.
3. No matter what approach you take, ethical decisions are not like
engineering problems where some formulae can be applied. The
context is always important.
4. Appreciation of how to apply the principles in a context can be done
only by reflection and development of your personality and character.
Objectives
➢ This session reveals ethical dilemmas of choosing between morality and
profitability about various decisions to be taken by a manager for an organization.
➢ You will get a fair idea about various ethical dilemmas faced by the managers in
different functional areas of an organization and their possible solutions.
➢ You will have awareness about the different kinds of ethical decisions making and
effect thereof .
➢ Knowledge of the global dimension of business ethics. And also the desirable
business conduct with the help of Walton’s model.
➢ You will be able to develop a better understanding of ethical decision making
process
Ethical Dilemmas Faced By The Managers In
An Organization
Choosing between the right and personal gain is source for ethical dilemma
in most of the cases.
Ethical dilemmas are faced by the managers at every managerial and functional
level of management.
Ethical dilemmas can be classified into two categories
1. At functional levels of the management, and
2. General ethical dilemmas.
An Organization
I. Ethical dilemmas at functional levels

1. Ethical dilemmas faced by Human resource manager
2. Ethical dilemmas faced by the Finance manage
3. Ethical dilemmas faced by Marketing manager
4. Ethical dilemmas faced by the Production manager
5. Ethical dilemma faced by Research and development department
manager
An Organization
II General Ethical Dilemma

1. Goal conflict
2. Family work life balance
3 Fear or pressure
4 Financial emergency
How to Resolve Ethical Dilemmas ?
There are three steps in resolving the ethical

dilemma mentioned as follows
Step 1 Analysis of consequences
Step 2 Analysis of Action
Step 3 Decision Making
➔ In this first step of ethical decision
making process the managers analyses
Step 1 the consequences of his decision in
Analysis of detail.
➔ All the pros and cons of the decision
consequences are considered before making a final
decision.
➔ An in depth analysis of the impact of
decision gives a clear idea to the
manager.
➔ Second step in ethical decision
Step 2
making is analysis of the action.
Analysis
of ➔ This step involves what action is
to be taken for the decision

Action
making.
➔ After analysis of the consequences
Step 3 or the results of the decision and

the action the final step is to take
the decision.
Decision
➔ The manager following this
Making decision making process finally
gets success in ethical decision
making.
Merits of Ethical Decision Making
It demands great courage on the part of management to be ethical in decision

making every time some of the merits of ethical decision making are as follows.
Customer satisfaction Survival and growth in the long run

Facing competition Protection against legal wranglers
Fulfilment of social obligations Investors’ happiness
Good market image Lower cost of financing
Employee satisfaction International recognition
Components of Ethical Decisions
Ethical decision making is the process of choosing the most

ethically correct decision amongst the available choices in the given
situation.
Ethics act as a moral compass in the decision making process.
The ethical decision making is a multifaceted activity it comprises of

many elements which are universal in the nature.
Components of Ethical Decisions
The components of ethical decision making are as follows:-
Probity Respecting
Integrity Law abiding
Fairness Leadership
Caring Morality and Accountability
How An Unethical Decision Affects
Stakeholders ?
An unethical decision by the management affects all the stakeholders of the company. The
stakeholder can be internal stakeholders such as employees and investors or external
shareholders like customers, suppliers, dealers, and society.
The unethical decisions made by the management of the company have both direct and
indirect bearing on the stakeholders which is explained as below.
Effect on Employees Effect on Investors

Effect on Customers Effect on suppliers and creditors
Global Dimension of Business Ethics
➔ In international business there are two parties first is the host country and
other is the multinational corporation.
➔ Ethical conduct is a mandatory factor for survival and the growth of any
business organisation.
➔ Ethical conduct not the sole responsibility of host country or the
multinational company alone it is a binding on both the parties.
➔ Both the parties have their own perspectives, agenda and interest aligned
to the business venture
Global Dimension of Business Ethics
The ethical consideration of the international business

can be expressed from two perspectives i.e
Host Country’s Perspective Multinational Corporation’s Perspective

1. Ease to do business 1. Respect for the culture of host country
2. Facilitate local support 2. Abiding the legal and regulatory
3. Fairness and transparency obligations
4. Fair taxation 3. Employment laws
5. Ease in repatriation 4. Human rights
6. Equality 5. Pollution and environmental concerns
"The most important human endeavor is the
striving for morality in our actions.
Our inner balance and even our very existence
depend on it.
Only morality in our actions can give beauty and
dignity to life."
- Albert Einstein (1879-1955), Physicist and Nobel Laureate

An ethical dilemma or ethical paradox is a
decision-making problem between two possible
moral imperatives, neither of which is
unambiguously acceptable or preferable.
The complexity arises out of the situational
conflict in which obeying would result in
transgressing another.
Business Ethics
Dr. Trilok Sharma
Session-5
Ethical Aspects of Marketing
Objectives
➔ This session deals about the marketing function of an organization.

➔ We will discuss in detail about various unethical business practices in
marketing and their remedial aspects.
➔ We will also discuss about the marketing functions and 7 essential Ps of
marketing.
➔ The unethical marketing practices will also be discussed in detail at every
functional level of marketing.
➔ Bringing awareness about constitutional rights and the legal protection
available to consumers against unethical marketing practices.
➔ Developing a better understanding of the justice mechanism against such
corrupt business practices.
What is Marketing?
➢ Marketing is one of the most significant aspect of any

business enterprise.
➢ An efficient marketing strategy can bring great
success to an enterprise.
➢ Marketing has a vital role in generation of revenue for
any organization.
➢ Around the world many institutions and scholars
have given different definitions of marketing.
What is Marketing?
Some of the definitions of Marketing are as such given :
➔ American Marketing Association (AMA) has defined marketing as “The activity, set of
institutions and processes for creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners and society at large .”
➔ Philip Kotler defines marketing as “The science and art of exploring, creating and
delivering value to satisfy the needs of a target market at a profit”.
In nutshell it can be said that, “ Marketing is an activity directed towards the supply of
goods or services that have want satisfying capacity, it is focused on generating the
higher sales and revenues thorough exchange process for the goods/services for an
economic value.”
CAVEAT EMPTOR : BUYER, BE AWARE
This was the credo in the early days of capitalism.
The Buyer was expected to look at a product to his satisfaction before

buying it; but once he had bought it, the responsibility of seller
ceased.
This is still in existence…

Most second hand sales are still done on “as is-where is basis”….
But it is understood in such deals
CAVEAT EMPTOR : BUYER, BE AWARE
➔ But this is not the way corporation have to function today.

They have certain duties towards their customers
➔ They have to be truthful about the product/service offered and its
features; the price to be charged; warranty against defects…and
above all, not to coerce a buyer into buying a product.
➔ They have to follow the truthfulness in advertising, misleading
advertisements and promotion practices.
➔ Here, besides corporations, advertising agencies are also
involved.
Relationship between a
Corporation and a Buyer
➔ Buying constitutes a contract between the buyer and seller (even though no
contract might have been formally entered into)
➔ The sales contract is governed by the Contract Act and the Sale of Goods Act, and
a seller cannot get away with saying that there is no written contract with buyer
➔ This contract implies the fulfilment of certain obligations by both the parties
(Buyer has to pay and use the product with due prudence and diligence, on the
other hand seller has the obligation that the product must be what it is purported
to be, and do what it meant to do, it must be free from defects and it should not
cause any harm to buyer; if it carries risks, these need to be disclosed….and so
on. (Railway amenities are good examples)
7 Ps of Marketing
With the rapid revolutions in the
The Neo classical services industry three more Ps came
approach to the into existence they are
marketing
propounds four Ps People ,
of marketing I.e. Process and
1. Product, Physical evidence.
2. Price,
3. Promotion and All the seven Ps of the marketing are
4. Place. equally significant for any organization.
The entire marketing concepts revolve
around these 7 Ps of marketing.
The detail description of these 7 Ps is
mentioned as below.
7 Ps 1. Product
2. Price
of 3. Promotion
Marketing 4. Place
5. People
6. Process
7. Physical Evidence
Unethical Practices in Marketing
Some business organisations in order to sell their product make false claims through
advertisements and sell the poor quality products at a higher price. By doing this they breach the
trust of customers. Some of the unfair and unethical marketing tactics are explained as follow:
1. Unethical Practices in Marketing Research
2. Manipulating Target Market Audience
3. Unethical practices in Pricing
4. Unethical practices in Advertising and promotion
5. Unethical Marketing practices on Internet
6. Unethical Marketing Strategies
7. Other Miscellaneous Issues in Marketing
Unethical Practices in Marketing Research

1. Invasion of privacy
2. Stereotyping
3. Honesty in Research Process
Manipulating Target Market Audience
1. By excluding potential customers

2. Targeting the susceptible
Unethical Practices in Pricing
Price fixing Price war
Price collusion Bid rigging
Dumping Predatory Pricing
Price Discrimination Price Gouging
Price Skimming Supra Competitive Pricing
Unethical Practices in Advertising and Promotion

1. Truthfulness
2. Profanity and Violence
3. Negative Advertising
4. Shilling and Astroturfing
5. Native advertisements.
Unethical Marketing Practices on Internet

1. Click fraud
2. Spamming
3. Intrusion of Privacy
Unethical Marketing Strategies

1. Anti competitive practices
2. Bait and Switch
3. Planned Obsolescence
4. Pyramid Schemes
5. Vendor Lock in.
6. Subliminal Advertisements
Other Miscellaneous Unethical Issues in Marketing

1. Most of the ethics are violated when the buyers and sellers are not
in contact with each other It mostly occurs in the case of e-
marketing.
2. Product related unethical marketing practices
3. Unethical marketing practices in the Packaging
Remedial Measures to Overcome Unethical
Practices in Marketing
In a perfectly competitive market companies face cut throat competition for
both survival and growth. Many times it is observed that in such a
competitive environment for securing its economic interest companies put all
its ethics at shelves. In such circumstances the customer becomes the prey
to exploitation. Unethical marketing practices are universal issue, almost
every country irrespective of however strong legal and regulatory framework
faces this problem.
I. United Nations Guidelines for Protection of Consumers Rights
II. Legislative Shield for Consumer Protection in India
Sustainable growth and development,
governing and regulating authorities of a
United country must ensure a fair balance
Nations between economic interest of the
Guidelines corporate and consumer rights and
for interest.
Protection
For protecting the consumer interest UN
of
has issued some guidelines to all the
Consumers
countries for strengthening their
Rights
consumer policy based on following
eight points.
i) Physical safety
United ii) Economic interest

Nations
iii) Quality standards
Guidelines
for iv) Essential goods and services
Protection
v) Redress
of
Consumers vi) Education and information
Rights
vii) Specific areas concerning health
viii) Sustainable consumption

In order to safeguard the consumers’ interest
and to protect the consumers from unethical
marketing practices government of India has
Legislative passed a regulation i.e. Consumer Protection
Shield for Act, 1986.
Consumer Under act empowers the consumers by
Protection ensuring their safety and protecting their rights.
in India Under the Consumer Protection Act, 1986 there
is a provision for grievance handling
mechanism where consumers can directly
appeal against the unfair marketing practices
with them.
Consumer Protection Act, 1986 have defined some
consumer rights which are as follows:
1. Right to safety – This right ensures the protection
of consumers from the goods or services that may be
Legislative hazardous to consumer health and safety.
Shield for 2. Right to Information – Right to information
Consumer empowers the consumers by giving them full
Protection information about quality, quantity, purity, contents,
in India potency and price of the goods and services.

3. Right to Choose – Right to choose ensures
availability of qualitative good at reasonable prices. It
discourages the condition of monopoly.
4. Right to be Heard – This right empowers
the consumer by ensuring that his/her
complaints are heard by and addressed
Legislative by the organization.
Shield for 5. Right to Redressal – Right to redressal
Consumer gives right to the consumers to be heard
Protection on their grievances and empowers the
in India consumers to seek redressal in the case
of infringement of their rights.
6. Right to Education – Right to education
gives right to consumer to get full
consumer education regarding the matters
concerning their interest.
1. Pharmaceutical Industry
The pharmaceutical industry has become more marketing-oriented to
maintain profit levels. Many drug companies try to influence medical
professionals to prescribe their drugs by hosting lavish events at
conferences and showering doctors with gifts and benefits. Smaller
Examples businesses can use similar tactics to influence intermediaries and agents to
give preference to their products. The ethics of such a marketing strategy
of are questionable. Ethical marketing is to provide information so the
customers can make an informed choice.
Questionable
2. Infant Formula
Marketing Infant formula producers such as Nestle marketed their product as a breast milk
replacement in developing countries. Their marketing campaigns told local mothers
Ethics that formula was superior to breast milk and a more modern way of feeding their
babies. They persisted in this campaign despite evidence that breast milk led to
better health outcomes for babies in these countries. Continuing such a campaign
when it hurts the consumer is ethically questionable. If you make claims for your
products, and your customers hurt themselves because they purchased your
products as a result of these claims, your marketing practices are ethically
questionable.
3. Fast Food
Fast food companies specialize in lifestyle marketing and often aim such
ads at teens and younger children.
Many of the ads are digital, and marketing campaigns online via social
Examples media are a favorite channel for reaching these consumers.
It is ethically questionable to aim ads that use marketing techniques other than
of information at audiences that may not have the maturity to treat them skeptically.
Questionable 4. Cosmetics
Marketing In 2011, Wal-Mart rolled out a cosmetics line aimed at girls as young as 9
years old. The marketing campaign targeted both the girls and their
Ethics parents, emphasizing the "environmentally friendly" nature of the eye-liner,
lip gloss and mascara.
Apart from the questionable practice of placing undue emphasis on a child's
appearance, it also is ethically questionable to use a popular movement such as
environmentalism to market a completely unrelated product.
5. Magazine Content
Print magazines operate in a challenging environment where
Examples ad revenue is migrating online while printing and distribution
of costs increase.
Some magazines are responding by skewing their content
Questionable
toward favorable coverage of products sold by desirable
Marketing advertisers and marketing their advertising accordingly.
Ethics Such a shift in marketing orientation is ethically questionable.

Media consumers rely on strict separation of advertising and
coverage. When a magazine changes such a separation
without informing its readers, it is misleading them.
Did you know that 92% of Millennial consumers
are more likely to buy products from ethical
companies?
Or that 82% of those consumers believe ethical
brands outperform similar companies that lack a
commitment to ethical principles?
According to World Fair Trade Organization (WFTO), Ethical
marketing refers to the process by which companies market their
goods and services by focusing not only on how their products
benefit customers, but also how they benefit socially responsible or
environmental causes.
Ethical marketing isn’t a strategy; it’s a philosophy.
It includes everything from ensuring advertisements are
honest and trustworthy, to building strong relationships
with consumers through a set of shared values.
Companies with a focus on ethical marketing evaluate

their decisions from a business perspective (i.e. whether a
particular marketing initiative will deliver the desired
return) as well as a moral perspective (i.e. whether a
decision is “right” or morally sound).
Business Ethics
Dr. Trilok Sharma
Session-6
Ethics in HR Management
Introduction
Human Resource Management (HRM) deals with work force
management, manpower planning and other employee related
activities in an organization.
Therefore, we can say that it is a special branch of

management where ethics play a crucial role.
HRM concerns human issues, especially those related with

compensation, development, industrial relations, health and
safety issues. However, there are sufficient disagreements in
managing HRM issues that stem from various quarters.
Introduction
Human resource of any organization is the backbone of the organization. The success or failure of any
organization largely depends upon the quality of the human resource in the organization. Human resource
management is a continuous long term process.
WHAT IS HUMAN RESOURCE MANAGEMENT ?
Human resource management can be defined as –
“Planning, organizing, directing and controlling of the procurement, development, compensation,
integration, maintenance and separation of human resources to the end that individual, organizational
and social objectives are accomplished.”
-Edwin Filippo.
Functions of HRM
Human resource management is a broad term. It is not just about procurement and placement of
employees it involves series of functions which a human resource manager has to perform. It is not only
about hiring right people but developing them and keeping them for a longer time. It is about welfare of
people working for the organization and maintaining harmonious relationships between management and
employees. Followings are the functions of human resource management.
Human Resource Planning Acquisition Function
Placement Performance Appraisal
Training and Development Career Development
Maintenance Function . Employee Welfare
Employee Management Relationship

Ethics & Market System
Ethics and Market System
Various types of market systems affect business and HR

ethics differently and hence, business ethics becomes
negotiable.
Occupations in which the market conditions do not favor

the employees, it becomes necessary to have government
and labor union interventions for controlling the possible
exploitation of employees.
 Free market systems empower employees and the employers equally;
negotiations are used to create win-win situations for both of these
parties.
 Government or labor union interventions are often harmful in free
market systems because they stall the operations and create unnecessary
hindrances.
 With the growth of globalization, the concept of globalizing labor has
gained importance.

 Trade unions have ceased to exist and the role of HR as such in issues like
employee management, desirable policies and practices has become
debatable topics.
 Many people now have the opinion that HR is nothing but a part
of the stakeholders, which initiates major strategic and policy
decisions to divulge the organization and gear it towards profit
making.
There cannot be a single opinion about ethics in HR that is

completely convincing.
Market is neither an ethical institution nor an unethical
one; no policies and procedures can govern and align the
markets for human well-being.
However, the need of these policies and procedures cannot
be denied or ignored because human development is the
ultimate aim of all human initiatives.
Significance of Ethics in HRM
An unethical behavior with employees may 1 Positive Environment

distain them from giving their fullest 2 Harmonious Relationships
potential. Therefore ethical behavior in
3 Facilitate Ease in Decision Making
human resource management is very
important. The significance of ethics in human 4 Helps in Gaining Employee Loyalty
resource management are as follows. 5 Long term Benefits
6 Social Welfare
7 Law Abiding
8 Good Reputation
Ethical Issues in HRM
HRM Ethics
Out of all
organizational
issues or policies,
ethical
considerations are
the most difficult
to deal with.
Issues arise in
employment,
remuneration and
benefits, industrial
relations and
health and safety.
Challenges Faced by HR Managers
Managing people in an organization can be a tough
task for a manager. The globalization and ● 1. Coping with Globalization Pressure
privatization has increased the complexities of the ● 2. Managing Strategic Dynamics.
work place. Highly dynamic progressive work place ● 3. Managing Cultural Diversities
has left a deep impact on the work culture and ● 4. Managing Demography
ethics of the employees. The classical desire of job
● 5. Quality Management and Knowledge
security is replaced by the carrier growth. It is
Management
difficult for a manager to manage the emerging
● 6. Increasing Role of Information Technology
issues at work place such as cultural diversity,
carrier development, employee loyalty, coping with ● 7. Developing and Maintaining Employee
globalization pressure, managing demography of Loyalty
work place and many other issues, like- ● 8. Ensuring the Ethical Conduct at Work Place
Emerging Ethical Issues in HRM
1. Accepting Bribes and Commission
Ethics in management refers to good and bad right or
wrong human resource policies and practices. Human 2. Biased Selection Process
resource manager has to deal with various employee 3. Violation of Human Rights
related issues. HR manager is guided by various codes
of conduct and also frames the ethical policies for the 4. Ignoring the Health and Safety Norms
organization. These policies acts as guidelines in the 5. Involving Child Labor
decision making process. Unethical HR practices are
detrimental for an organization and an organization 6. Breach of Secrecy Norms
must identify these practices and get rid of it as soon as 7. Conflict of Interest
possible. Most common unethical HR practices are
discussed as below
8. Unethical Practices in Performance Appraisal
9. Unfair Compensation Policies
So far we have discussed many unethical practices related to
human resource management in an organization. In the long run
almost every organization faces one or another problem related
to managing its workforce. These employees’ related issues can
be overcome by framing, implementing and practicing objective,
scientific and standard human resource policies. By endeavoring
How to the ethics in the HR policies the unethical HR practices can be
Overcome prohibited. The measures to overcome unethical practices can

be classified into two categories I.e. I) Voluntary measures II)
Unethical Issues Legal And Regulatory Provisions. Some of the measures to
in HRM overcome unethical issues in HR are discussed as below:
I Voluntary Measures
Voluntary measures to overcome unethical practices in the
human resource management are the steps taken by the
management for endeavoring the ethical conduct in the
organization. These are the voluntary actions taken by the
management to improve the work quality and culture in the
How to organization. Taking voluntary measures is a proactive
Overcome approach towards making an ethical work environment. It
Unethical Issues includes the followings

1.Clearly defined human resource policies.
in HRM 2.Fair remuneration polices
3.Transparent and fair promotion and transfer policies
4.Scope for career development
5.Grievance handling mechanism
6.Encouragement for ethical behavior in the organization
II. Legal And Regulatory Provisions In India
There are many voluntary measures that can be taken by
the organizations in order to overcome unethical practices
in human resource management. Other than these
How to
voluntary actions the Indian constitutional and regulatory
bodies have also made the provision for curbing the
Overcome unethical practices at workplace. Some of those provisions
Unethical Issues are mentioned as below
in HRM 1) Defined Human Resource Policies

2) Right to choose the employment.
3) Scientific and Fair Selection Process
4) Right to be Part of an Association
5) Safe and Hygienic Working Environment
II. Legal And Regulatory Provisions In India
6) Prohibition of Child Labor
How to
7) Fair Remuneration and Wage Policy
8) Standard Working Hours
Overcome 9) Policy of Non-Discrimination
Unethical Issues 10) Regularity of Employment

11) Training and Motivation
in HRM 12) Timely review of HR policies.
What led to the fall of Jet Airways?
Commenced operations 5 May 1993
Ceased operations 17 April 2019
Apperantly, Jet Airways struggled in the face of increasing
competition, a volatile currency and higher oil prices. Things went
from bad to worse this year, when the airline was forced to start
grounding its planes because of an inability to pay aircraft leasing
Examples companies.
Real Story
of In fact, the down fall of Jet Airways started with the retrenchment
drama that unfolded in Oct 2008. More than thousand employees
Questionable were laid off.
Officially it was a part of major Cost-cutting exercise to tackle
HRM Global slowdown and price hike of Aviation fuel.
Ethics It had a fleet of 107 Domestic aircraft serving 1,009 daily flights
and 82 International routings.
Total strength of 19000 employees.JET AIRWAYS AS ON OCT
2008
Oct 16, 2008, Jet announced that it would lay off nearly 1,100 of its
staffs to streamline operation. A day after it had already laid off around
800 of its cabin crew members. Simultaneously announced second
phase of lay-off of 1100 employees, mainly from departments like flight
attendant, cockpit crew etc.
Amidst great furor and opposition by various organizations and political
Examples parties, NareshGoyal , chairman of Jet, reinstated the employees a day
later the great emotional drama. November 2008, Jet decided on a
of 20% cut in the salaries of its pilots, engineers, and some other staffs.
Questionable Result?
HRM Due to this unethical HRM approach, Jet airways faced a lot of
ground level issues which further increased its losses, due to
Ethics delayed flights, compensation to passangers, more charges for
parking et.
The employees were no more loyal to the company, their
behaviour reflected on customers and people started avoiding
Jetairways...further losses
Some salient issues……
Employees were FIRED with no PRIOR NOTICE
Examples The entire force of unconfirmed staff was being laid off on a 30-day
compensation package
of Company took action only against lower staffs.
Ethical issues……
Questionable Where would those 1900 employees go?
Why took action only against lower grade staffs?
HRM Senior management was very less affected.
Ethics What would be the future of those students currently taking courses in
cabin crew, captain etc?
Why did the Jet CEO enter the competitive market, instead of playing
down after foreseeing risks?
Quotes made by higher officials…..
"A total of 1,900 people are being served separation notice. 800
have already been served notice. In the next few days the others will
also be served notice. It is an attempt to save the jobs of remaining
11,100 employees,“SarojDatta (Exe Director)
Some observations…..
Examples • The very existence of any company is because of its employees.
• Company keeps on focusing on customer satisfaction when its
of own people are so highly dissatisfied.
• Employees are more than just-a-resource.
Questionable • Protest against management……
Points to ponder
HRM • No company would know of a risk over night, its built over a
Ethics period and there should not be any drastic decision which may
endanger its employees.
• More accountability from top management.
• The role of HR executive is important to ascertain that people’s
interests are not left aside in the race for profits
• The HR executive to ensure no discrimination in pay cut and lay
off.
• Before reaching to decision, make environment conducive to
acceptance of decision.
“Regard your soldiers as your children, and
they will follow you into deepest valleys;
look on them as your own beloved sons, and
they will stand you even unto death.”
- Sun Tzu, The Art of War

Business Ethics
Dr. Trilok Sharma
Session-7
Ethics in Finance and their
Significance
Objective
This session deals about the ethical aspect in finance. It discusses in detail about
various unethical and fraudulent practices in finance and their remedial aspects.
After completing this session, you will –
✓ have knowledge about the ethical aspect of finance and core decision making
area of finance.
✓ get a fair idea about significance of ethics from the stake holders perspective
and various types of unethical practices in finance.
✓ have an insight knowledge about the reasons why people behave ethically and
how to overcome such issues.
✓ have awareness about the regulatory provisions and legal protection available
to the investors against unethical practices in finance.
Introduction
Ethics in finance refers categorization of to what is right and what is wrong in the financial policies and the
practices of the organization. There is a history of corporate frauds in India starting from Mundhra Scam the very
first corporate fraud after independence. Haridas Mundhra an industrialist and stockbroker was found guilty of a
financial scam amounting to Rs.125 crore by Justice Changla commission set up by prime minister Pandit
Jawahar Lal Nehru and was sentenced 22years of imprisonment. Since then there had been series of corporate
frauds/scams in India. Hawala scam, Enron, Harshad Mehta, Ketan Pareikh, Satyam fiasco, Commonwealth
scams (2010), 2G spectrum scam, Indian Coal Allocation Scam (2012), Sharda Chit Fund scam (2013) are some
of the most discussed financial scams in India.
In the wake of such unethical practices in financial sectors, observing high ethical standards becomes mandatory
injection for every organization. Ethics in finance refers to practicing the truthful and honest policies in recording
and reporting the financial transactions. It also includes the transparency and complete disclosure of the material
facts in the company’s financial statements and reports.
Finance, Accounting & Ethics
Finance and Accounting ethics is an important topic because, as accountants/Finance controller,

we are the key personnel who access the financial information of individuals and entities.
Such power also involves the potential and possibilities for abuse of information, or manipulation
of numbers to enhance company perceptions or enforce earnings management.
Ethics is also absolutely required in the course of an audit. Without meeting the requirements of
auditing and accounting ethics, an audit must instantly be paused.
What are the Challenges?
✓ Transparency International - Corruption Perception Index(CPI)
(https://www.transparency.org/en/cpi/2019/results/ind) - India-80 out of 198 (2019)
(Score 41 out of 100) in 2017 India-81 out of 175 (Score 40 out of 100)
✓ Need-Greed – Vanishing companies : (Harshad Mehta, Ketan Parekh)

✓ Financial Sector is Huge - Trillions of Dollars, connected with real sectors, systemic
implications, Banks are highly leveraged institution (The good leverage ratio is
considered to be 1:2 and 1:3, but the best is 1:1; Banks in India have 1:10 and in USA
1:30).
Small unethical transaction in absolute terms becomes big and
receives a lot of media attention
Why Ethics are important in Finance?
Companies rely on the financial reports prepared by their

accountants and attested by their Auditors to be true and
accurate to make sound business decisions.
Inaccurate financial reporting caused by the unethical or
deceptive practices of a company’s Accountants/ Auditors
can lead to loss of revenue through an exposed accounting
scandal, or worse, corporate collapse.
 The purpose of financial accounting ethics is to ensure that certified public

accountants (CPAs)/Chartered Accountants CAs) conduct their duties
objectively and with integrity.
 Financial accounting ethics form the basis for legal and regulatory
requirements and include issues related to maintaining public trust.
 Professional organizations such as the Institute of Chartered Accountants
of India (ICAI), American Institute of Certified Public Accountants (AICPA)
and the Institute of Management Accountants (IMA) have codes of ethical
conduct to which their members must adhere.
Maintaining Public Faith

 In the wake of the numerous accounting scandals, transparency
regarding a company's accounting methods and practices has
become increasingly important to the general public.
 A company that provides a clear explanation of the accounting
methods used to prepare its financial statements appears to be more
ethical and trustworthy than companies that do not.
 Often, the more ethical and trustworthy a company appears, the
more likely it is to attract new investors.
Avoiding Regulatory Investigations and Sanctions

✓ If a company's financial reports contain suspicious accounting methods, it can lead to a regulatory
investigation such as a Securities and Exchange Commission (SEC) investigation or an IRS audit.
✓ If regulatory bodies find any accounting malfeasance on the part of the company and/or on the part of
the accountant, they can levy costly fines or sanctions against the company and the CPA/CA could
lose his license.
✓ An example of corporate malfeasance is if the company failed to report all of its earned income.
✓ Accounting malfeasance can include actions such as the accountant knowingly using false
information provided by the company or accepting cash or other incentives outside of his regular pay
to prepare the company's financial statements.
Avoiding Stock Price Volatility

✓ When companies are accused of, or under investigation for, unethical accounting practices, investors
begin selling off their shares in an attempt to avoid a total loss on the investment.
✓ This leads to a decline in the price per share. However, as some investors are selling their shares,
market speculators and high-risk investors may be purchasing the shares at the lower price, causing a
temporary increase in share price.
✓ Constant share price volatility can lead to investor panic and induce a large selloff of the company's
shares, driving the share price down.
✓ If the price per share drops low enough for a long enough time, the company is delisted from its
respective stock exchange, its credit rating can go down and it will have a difficult time obtaining the
money it needs to continue operation.
✓ Banks and other creditors to which the company owes money may call in their loans.
✓ If the company cannot obtain the funding to pay its creditors, bankruptcy and corporate collapse could
follow.
Ethical Issues in Finance
Unethical practices in the finance includes bank frauds, Bribery, Credit card fraud,
Embezzlement, Forger Insider trading Insurance fraud, Investments scheme Larceny/Theft
Money laundering Tax evasions Securities frauds and many more to count.
For the purpose of better understanding the unethical practices in finance can be classified
into four different categories
1. Ethical Issues in Financial Market
2. Ethical Issues in Financial Services
3. Ethical Issues in Financial Reporting
4. Ethical Issues in Employees Conduct
1) Brokerage misguidance 2) Technology frauds
a) Forgery of D-mat shares
b) Scalping
1 c) Pump and Dump
d) Phishing
Ethical 3) Market manipulations
Issues in a) Pools i) Quote Stuffing

b) Churning j) Insider Trading
c) Stock Bashing k) Corporate Misconduct
Financial d) Runs l) Dummy Corporations
e) Ramping m) Boiler Rooms
Market f) Wash Trade n) Mutual Fund Frauds
g) Bear Riding o) Short Selling Abuse
h) Lures and Squeeze p) Ponzi Schemes
Maintaining good working morals and ethical
behavior in the financial service is a must
2 condition for any organization as people’s
money is involved in the financial services.
Ethical The major issues pertaining to the ethical
behavior in the financial sector can be
Issues in classified into –
Financial ✓ Ethical issues in banking sector ,
✓ Ethical issues in Insurance sector ,
Services ✓ Ethical issues in non-banking financial
corporation (NBFCs)
I) Ethical issues in banking sector
1. Cyber crime
2. Identity Theft
2 3. Money Laundering
4. Loan Loss
Ethical 5. Data security
Issues in 6. Debit and Credit Card
7. Fraudulent documentation
Financial 8. Counterfeit cheques
9. Tunneling
Services 10. Mobile banking frauds
11. SIM Swap
12. Fake or similar interface apps
II) Ethical Issues in Insurance Sector
1) Misrepresentation
2) Forgery or tampering the documents
2 3) Bogus business
4) Cash defalcation
Ethical 5) Mis-selling
6) Pre signed forms
Issues in 7) Doctor’s nexus
III) Ethical issues in Non Banking Financial Corporation
Financial (NBFCs)
1) Incorrect KYC details
2) Incorrect date and stamp
Services 3) Siphoning of funds by intermediaries
4) Incorrect commission
5) Front running
1) Financial Frauds
✓ Unethical practices in preparing
3 accounting records
✓ Misrepresentation or intentional
Ethical omission of amounts
✓ Misapplication of accounting principles
Issues in ✓ Misleading disclosures
2) Misappropriation of Assets and
Financial Liabilities
Reporting ✓ Window Dressing
✓ Non disclosure of sales of proprietary
information
1) Occupational Frauds
-Giving and accepting bribes
-Embezzlement by the employees
4 -Charging commissions for releasing orders ect
2) Management Frauds
Ethical -Insider trading
-Tunneling etc.
Issues in 3) Vendor fraud
Vendor fraud can be classified into three
Employees categories
-Billing Schemes
Conduct -Cheques Tampering Schemes
-Bribery or Extortion Schemes.
4) Customer fraud
✓ As conclusion, we can say that proper ethics and ethical behavior
are extremely important in Finance for a variety of reasons.
✓ To begin with, accountants are often privy to sensitive information
regarding their clients, such as Social Security or bank account
numbers.
✓ This gives accountants a good deal of power in regard to their
clients and it is important that the trust between an accountant
and their clients not be abused.
✓ In the same way it is important that the industry itself does not
become stigmatized as an unethical one, something that could
potentially harm business for all accounting firms.
Business Ethics
Dr. Trilok Sharma
Session-8
Ethics in Finance – Reason of
being Unethical and way of
prevention
Greed and Pressure are two basic reasons
for unethical behavior of a person.
Why People
Behave
Unethically?
Greed refers to a non rational wish to have
more and more of material pleasures.
A person may be greedy by nature or the
opportunities and situations motivate him/her.
Why People On the other hands Pressure is working
Behave
under influence of somebody with a fear of
losing something. Pressure can be referred
Unethically? as a fear factor.

Greed and Pressure (fear) both the factors
play a very significant role in determining the
moral character of an individual and how
these factors affect the ethical behavior of a
person is important to understand.
A) Greed
Why People 1. Weak morale
Behave 2. Lose internal control

3. Opportunity
Unethically?
4. Desire
B) Pressure
Why People 1. Top management
Behave 2. High personal debt
Unethically? 3. High financial needs
Major Financial Frauds of INDIA
9 of the biggest financial scams in India
From Vijay Mallya to Nirav Modi, all the big names are involved
1. Vijay Mallya – Rs. 9000 Crore : In 2016, Vijay Mallya absconded the country and sought refuge in the
UK after he was accused of fraud and money laundering in the country. Vijay Mallya allegedly owes various
banks over Rs 9000 crores, which he'd taken as a loan to keep his now defunct Kingfisher airlines from
failing. He was recently declared a fugitive economic offender under the Fugitive Economic Offenders Act.
2. Coalgate Scam – Rs. 1.86 lakh crore: The coal allocation scam or ‘Coalgate’ is a political scandal that
surfaced in 2012 when the UPA government was in power. The scam was brought to notice by the
Comptroller and Auditor General (CAG), when they accused the government of illegally allocating 194 coal
blocks between 2004 and 2009. This was one of the scams that shook the whole nation from its core as
many bureaucrats and politicians were involved in this. Although the CAG initially estimated the loss of over
Rs 10 lakh crore, the final report mentioned the scam amount was Rs 1.86 lakh crore.
3. 2G Spectrum scam – Rs. 1,76,000 crore: In 2008, the government came under scrutiny when it was
alleged that they had undercharged mobile telephone companies for frequency allocation licenses that were
used to create 2G spectrum subscriptions, and at the centre of this controversy was the former Telecom
minister A. Raja himself. The CAG had stated that “the difference between the money collected and that
mandated to be collected was Rs. 1.76 trillion.” (Rs. 1,76,000 crore) In 2012, the spectrum was declared as
“unconstitutional and arbitrary” by the Supreme Court and led to the cancellation of over 120 licenses.
4. Commonwealth Games scam – Rs. 70,000 crore: In 2010, the Commonwealth Games held in India made
more headlines for the controversies and corruption it was involved in than the games itself. The whole event
was marred with accusations of criminal conspiracy, cheating and forgery and the chairman of Common
Wealth Games 2010 Suresh Kalmadi was accused of corruption and malpractices. It was also reported that
the Indian athletes were forced to stay in terrible conditions instead of the accommodation allotted to them by
the authorities.
5. BOFORS scandal – Rs. 64 Crore
This is a major weapons-contract scandal that took place between India and Sweden during the 1980s and
90s. In 1986, India reportedly signed a deal worth Rs 1437 crore (approx) with the Swedish arms manufacturer
Bofors AB, to supply their 155mm field howitzer to the Indian Army. Many politicians including the then PM
Rajiv Gandhi were accused of receiving bribes or “kickbacks” worth over Rs. 64 crores for the deal. In today’s
time, the Bofors scam is estimated to be around Rs. 400 crore.
6. Nirav Modi PNB Bank fraud – Rs. 11,400 Crore
Diamonds are a man or woman’s best friend, but diamantaires like Nirav Modi are not. One of the most
controversial scams, this fraud reportedly took place through Punjab National bank’s Brady house brand. Not
just Nirav Modi, his uncle Mehul Choksi and two senior PNB officials were also involved in this fraud. In 2018,
PNB filed a case with CBI accusing Nirav Modi and the companies he was connected to of obtaining Letters of
Undertaking (LoUs) from PNB without paying up the margin amount against loans. This meant that if those
companies failed to pay the loan, PNB would have had to pay the amount.
7. AgustaWestland chopper scam – Rs. 3600 Crore : ne of the infamous defence

scandals in India, this case is about a 2010 deal signed between the UPA government and
AgustaWestland for acquisition of 12 helicopters that were supposed to be used by the
President of India, the Prime Minister and perform other VVIP duties. The deal was worth
Rs 3600 crore and it was alleged that many middlemen include some politicians and
defence officials received bribes to tweak the deal to help AgustaWestland.
8. Satyam scam – Rs. 14,000 crore: This 2009 corporate scam is also known as ‘India’s
Enron Scandal’ and revolves around B Ramalinga Raju and his Satyam Computer
Services Ltd. The company admitted that they misrepresented, manipulated and falsified
their accounts of over Rs 14,000 crore, in front of its board, stock exchanges, investors
and other stakeholders.
9. Hawala scam – $18 million: Hawala scandal came to public attention in the 1990s,
which also threw spotlight on politicians like LK Advani, Arjun Singh, Yeshwant Sinha and
Madan Lal Khurana and more who were said to be involved in the bribery. This scam
revolved around the hawala brothers also known as Jain brothers, who were linked to a
raid on terrorists. It was found that the payments of supposed black money were done by
these politicians through the brothers.
We can overcome the financial
How to frauds through the three
Overcome following steps:
Financial 1. Fraud Detection

Frauds 2. Fraud Reporting
3. Fraud Prevention
I Fraud Detection
How to Early detection of these fraudulent activities helps in
preventing them and making the security system stronger.
Overcome Followings are some of the recent trends in fraud detection

technology which facilitates easy detection of malicious
Financial activities in finance.

1. Data visualization tools
Frauds 2. Behavioral analysis

3. Deep learning
4. Forensic tools
How to II Fraud Reporting
Overcome 1) Suspicious Transaction Reporting
2) Effective Risk Management Measures
Financial 3) Whistle blowing
Frauds 4) Effective control mechanism

5) Fixing the responsibility and accountability
III Fraud Prevention
How to 1. Automated control
Overcome 2. Real time screening

3.Bench Marking
Financial 4. Internal Control
Frauds 5. Adherence to accounting standards
6. Simple organization structure
7. Governance, Awareness and Vigilance
Business Ethics
Dr. Trilok Sharma
Session-10
Ethics in Information
Technology (IT) & Intellectual
Property Rights (IPRs)
Learning Objectives
This session is about ethical aspect in information technology (IT) and intellectual property
rights(IPRs).
The session discusses in detail about various unethical activities in IT and IPRs.
By the end of this session:
✓ You will have knowledge about the role of information technology in the current business
world.
✓ You will get a fair idea about ethical challenges in the field of Information Technology. They
will also understand the motives behind such unethical practices.
✓ You will have an understanding about the significance of ethics in Intellectual property rights
(IPRs).
✓ You will have awareness about various types of unethical practices in Intellectual property
rights (IPRs) and the legal and regulatory framework for the protection of IPRs in India.
✓ You will be able to clearly understand about the different kinds of unethical and fraudulent
practices in Information and Technology (IT) and Intellectual Property Rights (IPRs).
✓ Not only this, you will also learn about the preventive and regulatory mechanism in India
against unethical practices.
INTRODUCTION
Information technology facilitates the exchange of thoughts, ideas or information between

two or more people utilizing an electronic media.
Information technology is a broad term which uses the different application of internet to
store, retrieve, manipulate, access, and transform the information for the business
purposes.
This information is very useful to attain some objectives through different technology.
Sometimes common man abstruse and correlate IT with the term computer network but IT
deals with the distribution technologies like television, telephone, mobile network and also
work in many industries such as computer related services, health care, banking system,
e-commerce, railways, airports, telephone exchange companies, rig sector etc.
A. Technical Challenges
Technical challenges are mainly related to
hardware , software and network of the
computers.
1. Denial of Services Attack /Distributed Denial of
Ethical Services (DDS)

2. Botnet
3. Hacking
Challenges B. General Challenges
Other than the technical issues discussed above
in IT there are some other general issues related to
ethics in information and technology which
includes
1) Plagiarism
2) Piracy
3) Virus Attack
4) Work pressure
WHAT ARE THE MOTIVES BEHIND CYBER ATTACK ?
Growth in the multiple sources of attacks, providing a platform for

malicious activities. It has become a serious cause of concern for
almost all the countries around the world.
According to Amorso (2012), there are five possible motives
behind the cyber attack:-
1. Warfare Sponsored by the Country
2. Terrorist Attack
3. Commercially Motivated Attack
4. Financially Motivated Criminal Attack
5. Hacking
WHAT ARE THE MOTIVES BEHIND CYBER ATTACK ?
1) Warfare sponsored by the country
It is similar to the physical warfare between two countries in which the attacking country aims the critical resources of
the other country. In this case also, the bot masters from the attacking country target the national infrastructure of the
opponent country. The intensity of such attacks largely depends upon the intension and resources of the attacking
nation. To stand by the nation and for strengthening the national resources the citizens, some times donate their
computing powers to the nation.
2) Terrorist Attack
The terrorist groups execute attack to accomplish their evil goals. In this type of attack, a normal internet user can
help this terrorist attack simply by donating his computer equipment to the attacker. Simply means involving in a
terror attack without acquiring any formal training expertise or knowledge or skills.
3) Commercially motivated attack
Such attacks are motivated with the intension of hampering the market reputation and finances of the rival company.
In such attacks the competing company attacks the cyber infrastructure of the rival company. Such attacks are more
evident in the e-commerce business.
4) Financially driven criminal attack
Such attacks intend to harm the user financially. In such type of botnet attacks the botmaster targets to attack on the
financial data such as particular’s banking details, mode of making payments online and similar other financial
services. Such attacks are up to individuals they target companies as well by giving them threat for their online
infrastructure.
5) Hacking
Hacking is practice by an individual or a group seeking pleasure from such notorious activities and looking for some
extra attention on the internet.
ETHICAL ASPECT OF INFORMATION TECHNOLOGY
The field of information ethics was established by mathematician Norbert Wiener in the 1940s.
It is also related to computer ethics.
Ethical issues in IT involve breach of copy rights by downloading the files without a valid license
or permission from the copyright holder.
The practice of keeping an eye on the internet usage of employees by the organization.
Unsolicited emails, hacking the online databases, use of cookies or spyware to observe user’s
online behavior.
Presently, IT applications are almost used by every person for one or the other purpose such as
for learning, sharing ideas with other people, entertainment, sharing resources, businesses etc.
Only the legitimate or responsible use of the internet will be advantageous for the people in
using its services.
Generally companies are focused on the following prevention according to IT law
1) Security
2) Network Forensics
3) Privacy Issues
4) Ergonomics
5) Ethical Hacking
ETHICS IN INTELLECTUAL PROPERTY RIGHTS (IPRs)
Ethics in intellectual property rights (IPRs) is one of the most contentious issues around the
globe.
Intellectual property rights includes patents, trademarks, copy rights,
industrial designs, geographical indications etc.
The individual or the firm holding intellectual property rights (IPRs) on a product or a
process is entitled to receive monetary gains, if those products or processes are used by
other individuals or organizations.
Most of the developed countries invest billions of dollars on research for developing new
products and processes. The innovators of the products get intellectual property rights
(IPRs) after registration and other processes which further can be used as exclusive rights
for commercial purposes.
Ethics in Intellectual property rights refers to application of honest, transparent and morally
correct policies and practices in creating products or process. It refers to the righteous
approach to the research and development process.
Ethics become enormously significant when the IPRs are related to clinical studies,
Ethical conduct is a universally expected behavior in
all the walks of life.
Ethical conduct in intellectual property rights is a
much desirous conduct as it not only affects human
life but also has impact on animals and all the other
Why Ethics living forms of life.

Ethical conduct is significant not only on the moral
are
grounds but there are many other aspects related to
it.
The significance of the ethical conduct in Intellectual
Significant property rights (IPRs) can be explained from following
perspectives
in IPRs ? 1 Consumers perspective
2 Environmental perspective
3 Competition perspective
4 Employees perspective
5 Legal prospective
6 Long run perspective
1) PATENTS
a) Patent infringement
b) Gene patenting
2) Industrial Design
Unethical a) Irresponsible product designs
b) Hazardous manufactured goods
Practices in c) Illegal manufacture

d) Poor quality control
IPRs
3) Trademark/Service mark
4) Copy rights
5) Semiconductor and Integrated Circuits
6) Trade secrets
7) Protection of plant varieties and breeding rights
8) Geographical Indications (GI)
1. Patents
Legal 2. Industrial Designs
Protection 3. Trade Mark/Service Mark
Against 4. Copy Rights

5. Layout for Semiconductor and
Unethical Integrated Circuits (IC)
Practices 6. Plant Variety & Breeding Rights
in IPRs 7. Geographical Indications (GI)
LEGAL PROTECTION AGAINST UNETHICAL PRACTICES IN IPRs
1) Patents
✓ Patent Act, 1970 governed patents in India which was amended in the year
2003, 2005, 2006, 2012, 2013, 2014 so that the international standards
and norms can be fulfilled.
✓ After making many remarkable adjustments and by introducing new changes
now patents in India are ruled and governed by Patent Amendment Rule,
2016. The Office of the Controller General of Patents, Designs & Trade Marks
(CGPDTM) administers the patents in India. CGPDTM is a subordinate office of
the Government of India’s subordinate office.
✓ The headquarters of patent office is in Kolkata with branches in Delhi,
Mumbai and Chennai.
✓ The duration of patent is 20 years in India for both product and process
patents.
2) Industrial designs
✓ Protection to industrial designs in India can be traced back from the 18th and
19th century i.e. the period of British rule in India.
✓ With the changing international trade scenario and requirements the legislation
for industrial designs kept changing from time to time.
✓ Following dig. number reveals the evolution of industry designs in India.
✓ Currently the industrial designs are protected by the design rules, 2001.
✓ The legislation provides a protection shield to the registered industrial design
holders against the frauds.
✓ The regulation also aims at encouraging innovations in the industry. It covers
both product and process of designing.
✓ The term of designing is 10 years which can be extended maximum up to 15
years from the date of registration.
3) Trademark/Service mark
✓ The Trade mark and service mark in India are regulated and governed by Trade
Mark Amendment Act, 2010.
✓ Being a member of World Trade Organization (WTO) India has obligation
towards trademark under Trade Related Intellectual Property Rights (TRIPS).
✓ Infringement of trademarks/service mark is a cognizable offence and both civil
and criminal proceedings can be initiated against the offenders.
✓ Section 135 of Trade Mark Amendment Act, 2010.deals with the infringement
of trademark and passing off action.
✓ In the case of criminal action of infringement imprisonment from 6 months to
maximum up to 3 years and /or a penalty varying from Rs.50K up to Rs.2 lakh,
maximum or both can be imposed on the offender.
✓ The period of trade mark/service mark is valid for 10 years from the date of
application and must be renewed before six month of expiry date.
✓ The motive behind empowering trademark legislations in India is to secure the
4. Copy Rights
✓ The copy right issues in India were governed by Copyright Act,
1957.
✓ With the globally changing scenario and timely need for up
gradation the laws for copy rights have changed five times since
its inception.
✓ The copyright regulations have undergone legislative surgery in
the years 1983,1984,1992,1994 and 1999.
✓ India under obligation of compliance with the international laws
advocated by WTO and TRIPS has made its copyright laws
compatible with World Intellectual Property Organization (WIPO)
and introduced a new amendment in the legislature.
4. Copy Rights
✓ Now the copyrights in India are governed by Copyright Amendment Bill,
2012.
✓ The new Copyright Amendment Bill, 2012 is compatible and compliant
with international internet treaty as well. It further has two components
i.e.
WIPO Copyright Treaty (WCT)
WIPO Performance and Phonograms Treaty (WPPT)
✓ The Copyright Amendment Bill, 2012 provides protection to the
copyright holders under different categories such as
Works of arts – audio, video and cinematography.
Authors – Writers, Poets etc.
Protection from internet piracy.
5. Layout for Semiconductor and Integrated Circuits (IC)
✓ The layout for industrial designs and circuits are protected by Integrated Circuits
Layout Design (SICLD) Act, 2000 in India.
✓ The framework of a semiconductor integrated circuit refers to a combination of
transistor architecture and other circuit elements which includes lead wires.
✓ These lead wires are inseparably associated and electrically interconnected for in
any form. The SICDL Act, 2000 is sui generis in nature and aims at protecting the
IPR rights of a registered semiconductor integrated circuits designs holder.
✓ The duration of a semiconductor IC is 10 years from the date of filing the application
for registration.
✓ The infringement of IPR rights of a registered holder is a criminal offence and is
subject to imprisonment up to 3years or a monitory penalty of minimum Rs.50, 000
which can be extended up till Rs.10 lacks or both.
✓ For resolving the grievances the registered IPR holder can appeal to Layout Design
Appellate Board (LDAB) or Intellectual Property Appellate Board (IPAB) which has its
office in Chennai.
6. Plant Variety & Breeding Rights
✓ The Protection of Plant Varieties and Farmer’s Rights Act, 2001 (PPV&FR Act, 2001)
protects the farmers, plant breeders and researchers intellectual property rights in
India.
✓ The legislation has exclusive provisions farmers, breeders and researchers who
invent or discovers the new plant variety which gives them an exclusive right for
using, saving, sowing or re-sowing, exchanging selling or exporting their farm
products including seeds.
✓ Registered IPR holders get protection from the fraudulent practices. An annual fee is
required to keep the registration valid.
✓ The duration of this exclusive protection IPR right under PPV&FR Act, 2001 differs
according to the nature of plant variety such as for
Field crops – 15 years
Trees and Vines – 18 years
Notified Varieties – 15 years from the date of notification.
6. Plant Variety & Breeding Rights
✓ Infringement of a registered IPR holders rights is a criminal offence
and subject to imprisonment of minimum 6 months which can be
extended up to maximum 3 years or a penalty of minimum Rs.2
lacks and maximum up to 20 lacks or both.
✓ Depending upon the gravity of the offence and provisions laid
down in the Protection of Plant Varieties and Farmer’s Rights Act,
2001.
✓ For handling the grievances of the registered IPR holders i.e.
farmers, researchers and plant breeders there is a provision of
Plant Variety Protection Appellate Tribunal which exercises the
jurisdiction, powers and authority conferred on it by the PPV and
FR Act, 2001.
7. Geographical Indications (GI)
✓ Geographical indications gives a distinct identity to the product that ensures the
authenticity of the product related to its geographical origin (place, region or a
country) and the basic characteristics related to that geographical area.
✓ The geographical indications in India are subject to registration and are protected by,
The Geographical Indications of Goods (Registration and Protection) Act, 1999.
✓ The act provides the highest level of protection to the IPR rights of a geographical
indicator holder.
✓ In the past there had been several contentious cases related to the IPR in
geographical indication such as Basmati rice, Darjeeling tea, Nagpur Orange,
Alphanso mango and many more.
✓ Infringement of GI in India is an criminal offence and the offender may be sentenced
an imprisonment for a term between six months to three years and a fine between
Rs. 50K to Rs. 2 lakhs .
✓ With the changing global scenario and the terms of trade international regulations are
also changing at a rapid pace.
7. Geographical Indications (GI)
✓ India being part of the different trade blocks and organizations at
international level is bound to have certain voluntary and some statutory
obligations towards them.
✓ Here the fine line comes between the compatibility and compliance with the
international trading fraternity regulations and protecting the rights and
interest of native traders of the country.
✓ The legal and regulatory framework of India aims at nurturing and protecting
the Intellectual Property Rights IPRs .The constant effort of the legislative
and regulatory authorities is towards maintaining the balance between these
two ends and moving forward towards the peace, progress and prosperity at
large.
✓ Any illegal or unethical conduct is condemned and there are adequate
provision for legal proceedings, the offenders has to face the nemesis of the
unethical act.
Business Ethics
Dr. Trilok Sharma
Session-11
Challenges in the Field of
Business Ethics in 21st Centuary
Learning Objective
The Session puts light on the emerging issues in the field of
business ethics.
After completing the session, you-
✓ will have a fair idea of corporate culture.
✓ will be able to identify the reasons behind the unethical
behavior of the people.
✓ will also understand the emerging issues and challenges in
front of managers in implementing ethical policies.
The Session further develops a good understanding of recent
trends in the business ethics.
You will be empowered not only with the theoretical aspects
explained but the practical and rational solutions to the ethical
issues.
INTRODUCTION
➢ The world is changing at a rapid pace, due to revolutionary advancement
in information technology, communication and transportation the entire
world has become a single market.
➢ The organization structures have also gone through metamorphic
changes.
➢ Business in 21st century is about creativity, quality, knowledge,
excellence, and public relations.
➢ In this rapidly changing modern business environment the managers
have to encounter more complex issues as compared to the traditional
business setups of yesteryears.
➢ The managers in the 21st century not only face challenges on the front of
domestic competition, but they also have to tackle the international
pressures reason being the international competition, international
standards & regulation and multicultural environment endorsed by
multinational corporations (MNCs).
CONCEPT of CORPORATE CULTURE
❑ Corporate culture is the collection of beliefs, expectations and

values leaned and shared by organization members.
❑ The corporate culture is not only leaned and shared but it is also
passed from one generation of employees to another generation.
❑ Corporate culture of an organization is inclusive of the vision,
mission, objectives and the policy statements of an organization.
❑ Corporate culture of an organization has significant impact on the
ethical conduct of the company.
The organization culture is a mix of socio-
cultural, psychological and physiological
What are dynamics of an organization.
It has both direct and indirect bearing on
the the organizational behavior of the people
working for the organization in the given
Attributes manner –
1. Psychological Impact
of the 2. Competitive Edge
3. Long Term Process
Corporate 4. Unique Identity
Culture? 5. Intangible.
6. Flexible.
➢ Corporate culture can be related to business
organization in many ways.
➢ Good corporate culture paves the way for ethical
conduct in all the levels of management.
➢ It also ensures ethical behavior in all the functional
areas of the organization.
Corporate ➢ It has pervasive effect on an organization both
vertically and horizontally.
Culture & ➢ It helps in promoting ethical behavior in the

organization.
➢ Promotes ethical conduct in Top, Middle and lower
Business levels of management.
➢ Helpful in encouraging and motivating the
Ethics employees
➢ It increases the overall productivity in the
organization.
➢ It reduces the employee turnover ratio.
➢ Helps the organization to fulfill its duty towards
society and the nation.
➢ It helps in optimum utilization of available
resources.
➢ It reduces various intrinsic and extrinsic
costs involved in procurement and
disbursement of various financial and non
Corporate
financial resources.
➢ It provides competitive edge to the
organization.
Culture & ➢ It helps in value creation and share holders
wealth maximization.
Business ➢ It fetches goodwill in the long run.
➢ It facilitates growth to the organization.
Ethics ➢ In the nutshell it can be said that corporate

culture can ensure and endeavor ethics in the
organization.
➢ Corporate culture can inculcate ethical
conduct as inevitable part of the
organization’s policy.
It is a very interesting matter which can be subject to investigation that,
why a person behaves unethically? And like any other behavioral query
the answer is also subjective.
There cannot be a single reason which can be pointed for the unethical
behavior of a person. Human behavior has many shades it can be
Reasons for
ethical, professional, emotional, rational, criminal or unethical and
every type of behavior is associated with the different types of
personality traits.
Unethical
Unethical behavior of a person may be an outcome of a unique
personality trait of that person or it may be out of the past experience
and learning or group influence. Some of the reasons for unethical
Behaviour behavior of people are explained as below:-

1. Greed
in 2. Lack of Patience
3. Poor Check and Control Mechanism
Corporate 4. Poor Education

5. Reference Group
World 6. Poor Organization Culture

7. Lack of Integrity
8. Gambling Thrills
Growth in the science and technology has paved the ways for
rapid industrialization. Similarly information technology and
electronic communication revolution has reduced the gaps
between markets by facilitating easy and quick flow of
information.
Entire globe has emerged as one market where the
Challenges in geographical boundaries of the countries have become just

virtual lines. World trade is dominated by some powerful
Implementin
multinational corporation having their subsidiaries in almost all
the countries.
This multinational corporate culture has come with many socio -
g Ethics in
economic and cultural changes and challenges described as
below:-
1. Three faced competition
Front of
2. Socio- Cultural Issues
3. Demographic Factors
4. Political Pressure
Managers of 5. Undefined Policies

6. Lack of Transparency
7. Lack of Cooperation
21st Century 8. Lack of Motivation

9. Personality Traits
There are many stumbling blocks in the way of
inculcating and developing a good ethical culture in
the organization.
There may be many problems in ensuring ethical
behavior in an organization and a manager may find it
How to difficult to face all these challenges but at the same

time these problems can be overcome by following
precautionary measure and being proactive to the
Overcome situation.
These measures are explained as below:
The
1. Well Defined Policies
2. Reward and Motivation
3. Spirit – De – Corps
Challenges 4. Education and Development

5. Practice by Top Management
6. Good Leadership
? 7. Mechanism for Dealing with Unethical Behavior

8. Effective Communication
9. Transparency
10. Strict Legislation and Regulatory Provisions
‘Profit maximization is the only goal of an
organization’ this classical theory of business does
not stand true in the today’s business world.
The traditional concept of the profitability left no room
for welfare and ethics, as all these activities were
Globally considered as wastage of time money and
resources.
Emerging
With the changing times corporate world realized the
significance and the direct linking between ethics
and long term profitability.
Trends in The business has reached far ahead of the concept
of profitability and welfare now the trend has
Business changed and with this changing socio-economic and

regulatory environment organizations are also
changing their approach in dealing with customers,
Ethics employees, investors and stakeholders as the
organizations have become cautious in their ethical
endeavors.
Followings are the recent trends in business ethics.
1. More Security and Surveillance
2. Dissemination of Ideas
Globally 3. Increased Visibility/Exposure

4. Damage Control
Emerging 5. Whistle Blowing
Trends in
6. Social Media Tools
7. International Ethical Norms
Business 8. Transparency
9. Higher Living Standards
Ethics 10. Changing Demography

ETHICS IN
TIMES OF PANDEMIC
• Such outbreaks are frequently characterised by
• Scientific uncertainty
• Social & Institution disruptions
• Climate of fear and distrust
• Policy Makers have to weigh and prioritise potentially

competing ethical values
• Severe time and resource constraints

Situations of particular vulnerability
• Frontline workers (Doctors, Nurses, social workers)
• Daily wage earners
• Migrant workers
• Seniors and people with co-morbidities

Specific situations needing attention
• Increase in domestic violence (Globally and in India too)
• Assault, threat, humiliation & intimidation
• Higher mental disorders and depression

• Isolation
• Loss of jobs
• Schisms between “haves” and “have-nots” have deepened

Obligations of Governments
• Well functioning and accessible health care system

• Availability of manpower
• Availability of hospital beds
• Protective equipment & Equipment for treatment
• Supply chain for medicines
• Keeping costs low and affordable
• Engage in public health surveillance & prevention activities
• Responsibility not only towards its citizens, but people stuck abroad and its
diaspora
Freedom of Movement
• International boarders being closed
• Public transport (train, flights, buses) may not be

available
• State / District borders closed

Involvement of the community
• Transparency
• Accountability
• Role of Media
• Role of citizens
Issues in scientific research
• Clinical trials
• Vaccines
• Treatment Avenues
Exemplary…….
• Merck & Co developed a cure for river blindness (an
eye and skin disease caused by a worm). Cost of
development was $ 100 million. Market existed only in
poor countries, where people could not afford it.
Greater good outweighed profits & it gave the
medicine free.
• COVID – 19 offers such opportunities.

Exemplary……
• WIPRO converted its 4,00,000 sq ft office space in Pune into quarantine facilities within
one week asking all employees to work from home.
• Tata group has announced that no employees of the group (including contract
workers) will be layed-off during the COVID crisis.
• Many small companies / businesses are keeping all employees on the payroll, perhaps
with reduced salaries / wages.
Why Should One Be Ethical?
……… A Rhetorical Question
• Does ethics triumph in the end?

• Do virtuous people do better in life?
-------------------------------------------------------------
The clear answer is NO.
People following straight & narrow path of virtue,
end up being side lined,
if not being persecuted.
Some Learnings from “Mahabharat”
• Four classic epics:

• Iliad & Odyssey
• Ramayan & Mahabharat
• Both ‘Ramayana’ & ‘Mahabharat’ address the question of “duty” at

its core
• But arrive at very different answers.

Ramayan’s answers
• Your duty is clear, though it may entail sufferings.

• Straight forward story of ideals to be pursued.
• No Moral Dilemmas
• Happy ending with ‘Maryada Purushottam’ Ram back on his throne.
(Righteousness triumphing in the end.)
Mahabharat’s questions
• Mahabharat takes life as it is, not as it should be. - Presents no ideals.

• Does not leave the reader with comfort of a happy ending.
• Full of unsolved dilemmas & riddles.
• Characters struggle to find what is right, make mistakes & suffer full
consequences.
Bhishma
• Child of Shantanu & Ganga
• Great sacrifice – Never sit on throne, never marry & have children
(Bhishma Pratigya)
• Blessing of “Itchha Mrityu” Choose the time of his death

“Bhishma” Pitamaha
• Choosing brides for Dhrutarashta & Pandu

• Draupadi’s vastraharan
• In war, to be on whose side / be neutral
-----------------------------------------------------
- Not merely knowing, but doing
- Act of omission can also be unethical, not
only act of commission
- Outstanding self sacrifice, but is he
accountable?
Dhritarashtra
• Elder son of Vichitravirya
• After Pandu’s death, ruled Hastinapur, never formally crowned.
• Considered a great scholar – Practice ?

Dhritarashtra
• Could never understand his dharma as a king and distinguish it from

his duties as a father (fairness and impartiality expected from a king)
• End of exile, when Pandavas came back – not even 5 villages
• Blindness is more metaphorical
Karna
• Highly principled and generous
• Life deprived him of a lot

• Kunti did not accept him
• Drona rejects him as pupil
• Parsuram gives a
• Searching for his identity

Karna
• Always in the company of unscrupulous Kauravas & Shakuni – Never

could rise above them
• In friendship & loyalty, there is a fine line which one should never
cross.
• Friendship with Duryodhan was his ethical albatros
Krishna
• Lives life to its fullest – No effort to make golden rules
• Newphew to Kunti – Partial to Pandavas – Sakha to Draupadi

Krishna
• “Nishkam Karma” – Action without attachment to the fruits of action
• War as a necessity to achieve larger goals

Why should one be ethical ?
• Non of the theories that we studied, are really useful in telling us

what to do. At the most they help us evaluate different courses of
action. After which, the judgement is one’s own.
• Ethics is not for convincing others, it is about convincing oneself.

……………….. As we end
• Character of Don Quixote, reminds us

• if we trust only when trust is warranted,
• love only when love is returned,
• learn only when learning is valuable,
we abandon our humanness.
• If we act ethically, only if it pays, we loose an essential part of our

humanness.

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Business Ethics

Dr. Trilok Sharma

Ethics?? ★ Purpose of Business….

● To understand the basics of ethics and its significance in the

In the current globally competitive business environment

Ethic defines a thin line between wrong and right, it

“Moral principles that govern a person’s behaviour or the conducting of an activity.”

Morals ➔ In many situations the value set of an

Values standard for conduct in the light of

Values himself and interacts verbally or non-

Morals verbally through his actions in a

In Harassment Misrepresentation of data or facts

Business Fraud Filtering of information

Principles The founding principles of business ethics are as follows

Altruistic Law abiding

How ethics play a key role in the survival of any business

Relevant is Ethical behavior endeavors good name and reputation in

How the business in the current business environment are as

Relevant is 1 Deals with human beings

Attributes moral judgement in the decision making process related to

Business Relative Term Provides framework

Ethics Interest of the society Systematic study.

Ethics Policy statement and

Gets Psychological attributes Leadership

Affected? Measurement and follow ups Company Culture

Targets and Budgets Atmosphere

Does beyond the control of any organisation. No individual lives

Society Government Philosophy

Competition Public perception of law

Of Survival Controls Transgression

Business Contentment Smooth functioning of business

Ethics Protection of society Protection of consumer right

Portray a good picture of business

Ethics let it be personal or professional front of the life.

In Nature 4. Ethics in marketing

Boons growth. Especially when the decisions have significant

Ethics 1 Attracting and retaining talent

Business 1. Ethics - Cost on the resources

1. Consequentialism Or Utilitarianism:- Principle of

TEN COMMANDMENTS OF SANATAN DHARMA

1.Ahimsa (non violence) 1.Shaucha (purity)

Meta For example the mountains, sea, rocks, etc are

1. Metaphysical issues and

★ Samuel ★ Ethical egoism,

Applied they are simply the issues needs immediate

Theory 3 ethics two basic conditions has to be fulfilled, firstly

Applied large number of people must be against the issue.

b) Issues related to business ethics

Ethics c) Issues related to medical ethics

d) Issues related to sexual morality

e) Issues related to social morality

Shareholders These groups are made of the people in the society

Theory of ➢ Investors ➢ Customers

Ethics ➢ Govt. bodies ➢ Local community

and According to him the only way to survive the

Stakeholders cut throat competition and to be successful in

Ethics stakeholders play a key role in deciding the

Theory of the exploitation and get dissatisfied

A decision is a vehicle to help