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BUSINESS ETHICSBUSINESS ETHICS

Prof. P. K. BRAHMAProf. P. K. BRAHMA

IMT,CDLIMT,CDL

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..How lonely are the Humans!How lonely are the Humans!

A bundle of contradictions,A bundle of contradictions,

Ignorance and arrogance,Ignorance and arrogance,Prejudice and superstitions,Prejudice and superstitions,

Bigotry and fanaticism,Bigotry and fanaticism,

Illusions and hallucinations.Illusions and hallucinations.Tamoso Maa Jyotirgamayo.Tamoso Maa Jyotirgamayo.

Let the Lights remove all Darkness,Let the Lights remove all Darkness,

Let Noble Thoughts come from all sides.Let Noble Thoughts come from all sides.

..

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1. Introduction: Concepts of Market, Business1. Introduction: Concepts of Market, Business

and Ethicsand Ethics1.1 Definition of Ethics1.1 Definition of Ethics1.2 History of Ethics and Business Ethics1.2 History of Ethics and Business Ethics

1.3 Scope of Business Ethics1.3 Scope of Business Ethics

1.4 Applicability of Business Ethics1.4 Applicability of Business Ethics

2. Theoretical Issues of Business Ethics2. Theoretical Issues of Business Ethics2.1 Deontological Theory of Emanuel Kant2.1 Deontological Theory of Emanuel Kant

2.2 Utilitarianism2.2 Utilitarianism

2.3 Cognitivism vs Non2.3 Cognitivism vs Non--CognitivismCognitivism2.4 Consequentialism vs non2.4 Consequentialism vs non--ConsequentialismConsequentialism

2.5 The Concept of Rights2.5 The Concept of Rights

2.6 Ethical Relativism2.6 Ethical Relativism

2,7 Secular Morals vs Religious Morals2,7 Secular Morals vs Religious Morals

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3.Indian Ethos3.Indian Ethos-- Ethical Heritage of IndiaEthical Heritage of India

3.1 Vedic and Vedantic Ethics3.1 Vedic and Vedantic Ethics

3.2 Ethics of the Gita3.2 Ethics of the Gita

3.3 Buddhist Ethics3.3 Buddhist Ethics

3.4 Ethics of Jainism3.4 Ethics of Jainism

3.5 Philosophy and Ethics of Swami Vivekananda3.5 Philosophy and Ethics of Swami Vivekananda

3.6 Philosophy and Ethics of Mahatma Gandhi3.6 Philosophy and Ethics of Mahatma Gandhi

3.7 Philosophy of Rishi Aurobindo3.7 Philosophy of Rishi Aurobindo

3.8 Philosophy of Rabindra Nath Tagore3.8 Philosophy of Rabindra Nath Tagore

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4. Ethics in Action: Corporate Governance4. Ethics in Action: Corporate Governance

and Corporate Social Responsibilityand Corporate Social Responsibility

4.1Ethics and Laws4.1Ethics and Laws-- the Iron law of Responsibilitythe Iron law of Responsibility

4.2 Basic Responsibilities of Companies and4.2 Basic Responsibilities of Companies andCorporationsCorporations

4.3 Shareholders vs Stake4.3 Shareholders vs Stake--holdersholders4.4 Economic Responsibilities4.4 Economic Responsibilities

4.5 Social Responsibilities4.5 Social Responsibilities

4.6 Total Social Responsibilities4.6 Total Social Responsibilities

4.7 Corporate Social Reporting4.7 Corporate Social Reporting

4.8 Social Audit4.8 Social Audit

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5. Ethics in Action: Ethics of Professions5. Ethics in Action: Ethics of Professions

5.1 Ethics of Chartered Accountants / Public Auditors5.1 Ethics of Chartered Accountants / Public Auditors

5.2 Ethics of Doctors and Medical Profession5.2 Ethics of Doctors and Medical Profession

5.3 Ethics of Engineers5.3 Ethics of Engineers

5.4 Ethics of Lawyers5.4 Ethics of Lawyers

5.5 Ethics of Public Servants5.5 Ethics of Public Servants

5.6 Ethics of Teachers and Education Profession5.6 Ethics of Teachers and Education Profession

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6. Ethics of Finance6. Ethics of Finance

6.1 Ethics of Accounting and Accounts Manager6.1 Ethics of Accounting and Accounts Manager

6.2 Ethics of Financial Advisor6.2 Ethics of Financial Advisor

6.3 Ethics of Investment Bankers and Lenders6.3 Ethics of Investment Bankers and Lenders

6.4 Ethics of the Stock Exchange6.4 Ethics of the Stock Exchange

6.5 Ethics of Investments6.5 Ethics of Investments

6.6 Positive and Negative Areas of Investment6.6 Positive and Negative Areas of Investment

6.7 Government Control in Investment6.7 Government Control in Investment6.8 Ethics of Investment in Social Sectors6.8 Ethics of Investment in Social Sectors--EducationalEducational

Institutions and HealthcareInstitutions and Healthcare

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7. Ethics in Action: Ethics of Production7. Ethics in Action: Ethics of Production

7.1 Safety and Security of Industrial Establishments and7.1 Safety and Security of Industrial Establishments and

EquipmentEquipment

7.2 Working Conditions and Environment in factories7.2 Working Conditions and Environment in factories

and Officesand Offices

7.3 Quality, Quantity, Price and Supply of Products7.3 Quality, Quantity, Price and Supply of Products

7.4 Control of Pollution7.4 Control of Pollution-- Air, Water, Soil andAir, Water, Soil and

EnvironmentEnvironment7.5 Transparency in Disclosure of Contents of Products7.5 Transparency in Disclosure of Contents of Products

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8. Ethics in Action: Ethics of Sales and8. Ethics in Action: Ethics of Sales and

MarketingMarketing

8.1 Ethics of Commercial Advertising8.1 Ethics of Commercial Advertising

8.2 Control of Advertising8.2 Control of Advertising

8.3 Customer Service and After8.3 Customer Service and After--sales servicesales service

8.4 Customer Complaints Redressal Mechanism8.4 Customer Complaints Redressal Mechanism

8.5 Media Ethics8.5 Media Ethics-- Paid NewsPaid News

8.6 Aggressive Marketing, Hostile Takeovers,8.6 Aggressive Marketing, Hostile Takeovers,

ManipulationsManipulations

8.7 Mergers and Aquisitions8.7 Mergers and Aquisitions

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. Ethics in Action : Ethics at Work Place and9. Ethics in Action : Ethics at Work Place and

Organization cultureOrganization culture

9.1 Factors Contributing to Bad Work Culture and Factors9.1 Factors Contributing to Bad Work Culture and Factors

Promoting good Work CulturePromoting good Work Culture

9.2 Role of HRD and Qualities of a Good Manager9.2 Role of HRD and Qualities of a Good Manager

9.3 Age of Stress9.3 Age of Stress Manifestations of Stress at Work PlaceManifestations of Stress at Work Place

9.4 The Executive as a Yogi9.4 The Executive as a Yogi-- the Indian Solutionthe Indian Solution

9.5 Ethical Behaviour of Employers9.5 Ethical Behaviour of Employers

9.6 Unethical Behaviour of Employees9.6 Unethical Behaviour of Employees

9.10 White collar Crime9.10 White collar Crime

9.11 Sexual harassment9.11 Sexual harassment

9.12Whistle Blowing9.12Whistle Blowing

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12. Ethics in Governance12. Ethics in Governance--Ethics of the StateEthics of the State

12.1 Ethics of the Political System12.1 Ethics of the Political System--the Politiciansthe Politicians

12.2 Ethics of Policing12.2 Ethics of Policing

12.3 Business12.3 Business--PoliticianPolitician--CriminalCriminal--Police NexusPolice Nexus

12.4 Ethics of the Bureaucracy12.4 Ethics of the Bureaucracy

12.5 Ethics of the Judiciary12.5 Ethics of the Judiciary

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International Business Ethics and Ethics ofInternational Business Ethics and Ethics of

Economic SystemsEconomic Systems

12.1 Economic Blocs and Cartels12.1 Economic Blocs and Cartels

12.2 Discriminatory Treatment of Nations on Issues like12.2 Discriminatory Treatment of Nations on Issues like

Child Labour, Subsidy, Exploitation etc. in TradeChild Labour, Subsidy, Exploitation etc. in Trade

12.3 Ethics of Intellectual Property Rights12.3 Ethics of Intellectual Property Rights

12.4 Political Influence of Transnational Companies12.4 Political Influence of Transnational Companies

12.5 Discriminatory Treatment world Bodies like the12.5 Discriminatory Treatment world Bodies like the

IMF, World Bank, WTO etc..IMF, World Bank, WTO etc..12.6 Treatment of Democratic and non12.6 Treatment of Democratic and non--DemocraticDemocratic

RegimesRegimes

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Chapter 1:IntroductionChapter 1:Introduction

IntroductionIntroduction

Shakespeare said the world is a stage (he meant actingShakespeare said the world is a stage (he meant acting --

we are all actors) but today, the entire world is a stagewe are all actors) but today, the entire world is a stage

not for acting but for business and marketing.not for acting but for business and marketing. You find business anytime, anywhere and inYou find business anytime, anywhere and in

anything. And if there is Business (i.e. an economicanything. And if there is Business (i.e. an economic

activity where there are buyers, sellers andactivity where there are buyers, sellers and

transactions for a consideration), there will be atransactions for a consideration), there will be aMarket.Market.

Except perhaps for a few hours at home ,you willExcept perhaps for a few hours at home ,you will

always find yourself in some market place or other.always find yourself in some market place or other.

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Types of MarketsTypes of Markets

1.1. The Retail MarketsThe Retail Markets Food, Vegetables, fruits,Food, Vegetables, fruits,groceries, books, medicines etc.groceries, books, medicines etc.

2.2. Commodity MarketsCommodity Markets food grains, Cotton, jute etc.food grains, Cotton, jute etc.3.3. The Raw Materials MarketsThe Raw Materials Markets Inputs for finishedInputs for finished

products.products.

4.4. The Finished Goods MarketsThe Finished Goods Markets

5.5. The Capital Goods MarketsThe Capital Goods Markets6.6. The Labour MarketsThe Labour Markets

7.7. The Financial MarketsThe Financial Markets-- stock market, Banking,stock market, Banking,Insurance etc.Insurance etc.

8.8. The Service Sector MarketsThe Service Sector Markets TransportationTransportation--airairroad, railways ,water Communications, Health,road, railways ,water Communications, Health,Hospitality, Entertainment ,Sports, Marriage BeautyHospitality, Entertainment ,Sports, Marriage Beautyetc..etc..

9.9. International MarketsInternational Markets-- ExportExport--Import etc.Import etc.

10.10. Cyber MarketCyber Market

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A pplicability of Business EthicsA pplicability of Business Ethics

The common concept is business ethics concerns theThe common concept is business ethics concerns the

corporate sector. Modern concept is it should cover:corporate sector. Modern concept is it should cover: Ethics of companies & corporations.Ethics of companies & corporations.

Ethics of Public Accountants.Ethics of Public Accountants.

Ethics of Doctors and Medical profession.Ethics of Doctors and Medical profession.

Ethics of Lawyers and Law Firms.Ethics of Lawyers and Law Firms. Ethics of Public Administrators.Ethics of Public Administrators.

Ethics of EngineersEthics of Engineers

Ethics of Educators, Teachers & EducationalEthics of Educators, Teachers & Educational

Institutions.Institutions. Ethics of traders, retailers and vendors.Ethics of traders, retailers and vendors.

Ethics of NGOs, Trusts and Institutions.Ethics of NGOs, Trusts and Institutions.

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Definition of Business and EthicsDefinition of Business and Ethics

BusinessBusiness is an economic activity , a transaction whereis an economic activity , a transaction where

an offer is made by a seller and the offer is acceptedan offer is made by a seller and the offer is acceptedby a buyer for a consideration with the hiddenby a buyer for a consideration with the hiddenagenda of a gain or profit .agenda of a gain or profit .

EthicsEthics comes from the Greek wordcomes from the Greek word Ethos whichEthos which

means character of the individual or the culture of themeans character of the individual or the culture of thecommunity.community.

BusinessBusiness ethicsethics is a form ofis a form ofapplied ethicsapplied ethics thatthatexamines ethical principles and moral or ethicalexamines ethical principles and moral or ethical

problems that arise in a business environment. Itproblems that arise in a business environment. Itapplies to all aspects of business conduct and isapplies to all aspects of business conduct and isrelevant to the conduct of individuals and businessrelevant to the conduct of individuals and businessorganizations as a whole. Applied ethics is a field oforganizations as a whole. Applied ethics is a field ofethics that deals with ethical questions in many fieldsethics that deals with ethical questions in many fields

such as medical, technical, legal and business ethics.such as medical, technical, legal and business ethics.

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History of Business EthicsHistory of Business EthicsBusiness ethics being part of the larger social ethics,Business ethics being part of the larger social ethics,

always been affected by the ethics of the epoch. Atalways been affected by the ethics of the epoch. At

different epochs of the world, people, especially thedifferent epochs of the world, people, especially theelites of the world, were blind to ethics and moralityelites of the world, were blind to ethics and moralitywhich were obviously unethical to the succeedingwhich were obviously unethical to the succeedingepoch. History of business, thus, is tainted by andepoch. History of business, thus, is tainted by andthrough the history of slavery history of colonialismthrough the history of slavery history of colonialismand later by the history of cold war. The currentand later by the history of cold war. The currentdiscourse of business ethics is the ethical discoursediscourse of business ethics is the ethical discourseof the postof the post--colonialism and postcolonialism and post--world wars. Theworld wars. Theneed for business ethics in the current epoch hadneed for business ethics in the current epoch hadbegun gaining attention since 1970s.Historically,begun gaining attention since 1970s.Historically,firms started highlighting their ethical stature sincefirms started highlighting their ethical stature sincethe late 1980s and early 1990s, as the worldthe late 1980s and early 1990s, as the worldwitnessed serious economic and natural disasterswitnessed serious economic and natural disastersbecause of unethical business practices. Thebecause of unethical business practices. The BhopalBhopaldisasterdisaster, and the fall of, and the fall ofEnronEnron are instances of theare instances of themajor disasters triggered by bad corporate ethics.major disasters triggered by bad corporate ethics.

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..

It should be noted that the idea of business ethics caughtIt should be noted that the idea of business ethics caughtthe attention of academics, media and business firmsthe attention of academics, media and business firmsby the end of the overtby the end of the overt Cold WarCold War. Cold Wars, seen. Cold Wars, seenthrough pages of history were fought through andthrough pages of history were fought through andfought for American business firms abroad.fought for American business firms abroad.Ideologically, promotion of firms owned byIdeologically, promotion of firms owned byAmerican nationals were presented as if it wereAmerican nationals were presented as if it werefreedom and the local resistance against the excess offreedom and the local resistance against the excess ofAmerican firms were labeled as communist upraisingAmerican firms were labeled as communist upraisingsponsored by the Soviet Block. Further, evensponsored by the Soviet Block. Further, evenlegitimate criticism against unethical practice of thelegitimate criticism against unethical practice of thefirms were presented as if it were infringement intofirms were presented as if it were infringement intothe 'freedom' of thethe 'freedom' of the entrepreneursentrepreneursby activists backedby activists backed

byby communistcommunist totalitarianstotalitarians. This scuttled the. This scuttled thediscourse of business ethics both at media anddiscourse of business ethics both at media andacademics. Overt violence by business firms haveacademics. Overt violence by business firms havedecreased to a great extent in the democratic anddecreased to a great extent in the democratic andmedia affluent world of the day, though it has notmedia affluent world of the day, though it has not

ceased to exist. The war in Iraq is one of the recentceased to exist. The war in Iraq is one of the recentexample of overt violence by the liberal westernexample of overt violence by the liberal western

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Plethora of Laws, Rules and Regulations toPlethora of Laws, Rules and Regulations to

govern Businessgovern Business

The Companies ActThe Companies Act

The Income Tax ActThe Income Tax Act

The SEBI ActThe SEBI Act

The Factories ActThe Factories Act The Environment ActThe Environment Act

The Minimum Wages ActThe Minimum Wages Act

The Provident Fund ActThe Provident Fund Act

The Hazardous Substances ActThe Hazardous Substances Act The FEMAThe FEMA

The Consumer Protection Act etc.etc.The Consumer Protection Act etc.etc.

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Two Questions which arise:Two Questions which arise:

1.When there is a plethora of Acts ,Rules and1.When there is a plethora of Acts ,Rules andRegulations to control business, where is theRegulations to control business, where is theneed to frame a separate Code of Businessneed to frame a separate Code of Business

Ethics?Ethics?2.Why should the Corporate world be2.Why should the Corporate world be

periodically rocked by scandals in spite ofperiodically rocked by scandals in spite ofhaving the Code of Business Ethics?having the Code of Business Ethics?

The answer is Ethics begins where the LawThe answer is Ethics begins where the Lawends.ends.

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Chapter 2. Indian Ethos: Ethical HeritageChapter 2. Indian Ethos: Ethical Heritage

of Indiaof India1.2 Indianness of Indian Business-Rediscovery of

Indian Schools of thought and Philosophy.Treasure of Indian Philosophy and Ethical Values:

The Vedas (4)- Rigveda, Samaveda,Yajur-veda,Atharvaveda (Nalayira Divya Prabhandham-

Tamil) The Upanishads (123 books; 13 basic)

The Puranas (18)

The Greatest Epics -The Ramayana & TheMahabharata

The Greatest Book of Philosophy-The Gita

Indian Schools of Philisophy (6)

Buddhism, Jainism, Jataka Tales,Panchatantraand a treasure of unparalled Sanskrit & PaliLiterature, Ayurveda, Economics,Law, Logic etc.

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..Many Hindu intellectual traditions were classifiedMany Hindu intellectual traditions were classified

during the medieval period of Brahmanicduring the medieval period of Brahmanic--SanskriticSanskriticscholasticism into a standard list of six orthodoxscholasticism into a standard list of six orthodox

(astika) schools (darshanas), the "Six Philosophies"(astika) schools (darshanas), the "Six Philosophies"((adad--darana), all of which cite Vedic authority asdarana), all of which cite Vedic authority astheir source:their source:

1.Nyaya, the school of logic1.Nyaya, the school of logic

2.Vaisheshika, the atomist school2.Vaisheshika, the atomist school

3.Samkhya, the enumeration school3.Samkhya, the enumeration school

4.Yoga, the school of Patanjali (which provisionally4.Yoga, the school of Patanjali (which provisionallyasserts the metaphysics of Samkhya)asserts the metaphysics of Samkhya)

5.Purva Mimamsa (or simply Mimamsa), the tradition5.Purva Mimamsa (or simply Mimamsa), the tradition

of Vedic exegesis, with emphasis on Vedic ritual, andof Vedic exegesis, with emphasis on Vedic ritual, and6.Vedanta (also called Uttara Mimamsa), the6.Vedanta (also called Uttara Mimamsa), the

Upanishadic tradition, with emphasis on VedicUpanishadic tradition, with emphasis on Vedicphilosophy.philosophy.

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Ethical Principles of Indian SocietyEthical Principles of Indian Society Individuals. Business andIndividuals. Business and

GovernanceGovernance1.Aims of Life: Four Phases of Life-Brahmacharya(Duties asBrahmacharya(Duties as

Student life), Grihastha (Duties as a Householder),Student life), Grihastha (Duties as a Householder),

Banaprastha (Pilgrimage and Meditation), MokshaBanaprastha (Pilgrimage and Meditation), Moksha(Salvation).(Salvation).

2.2. Duties of Life:Duties of Life: Artha, Kama, Moksha, DharmaArtha, Kama, Moksha, Dharma

Every individual including businessman and ruler mustEvery individual including businessman and ruler mustconduct himself according to DHARMA i.e. honesty,conduct himself according to DHARMA i.e. honesty,

fairness, equity and with a sense of divine duty andfairness, equity and with a sense of divine duty andNishkam Karma.Nishkam Karma.

3.3. Style of Living:Style of Living: Spiritualistic against Materialistic:Spiritualistic against Materialistic:Simple Living andHigh ThinkingSimple Living andHigh Thinking

4.4. Reverence for Elders:Reverence for Elders:Matrideva bhaba, Pitrideva bhava,Matrideva bhaba, Pitrideva bhava,acharyadeva bhaba , Atithideva bhavaacharyadeva bhaba , Atithideva bhava

5.Attitude towards Self:5.Attitude towards Self:InnerHappiness, peace of mind,InnerHappiness, peace of mind,Detachment, Yoga and Meditation. ChidanandamDetachment, Yoga and Meditation. Chidanandam

6.Attitude to the World6.Attitude to the World::Shanti, Sukham, AnandamShanti, Sukham, Anandam--let therelet therebe peace evrywherebe peace evrywhere--to humans, to vegetation, to theto humans, to vegetation, to theuniverse.universe.

Vasundhara KutumbakamVasundhara Kutumbakam-- the whole world is your family.the whole world is your family.

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Indian Concept of IndebtednessIndian Concept of IndebtednessFive Categories of Indebtedness (Rin)Five Categories of Indebtedness (Rin)

11.Devarin.Devarin ::--Indebtedness to supraIndebtedness to supra-- human powershuman powersfor the gifts of Sun, air, water light etc.for the gifts of Sun, air, water light etc.

2.RishiRin2.RishiRin ::--Indebtedness to sages who leading aIndebtedness to sages who leading alife of utter self denial, realised the highest truthslife of utter self denial, realised the highest truthsand gave the wisdoms.and gave the wisdoms.

3.PitriRin3.PitriRin ::--Indebtedness to Parents and ancestorsIndebtedness to Parents and ancestorsfor their cumulative contributions to us.for their cumulative contributions to us.

4.NriRin4.NriRin ::--Indebtedness to humanity at large, toIndebtedness to humanity at large, tocountless people who have contributed to makecountless people who have contributed to makeexistence a reality.existence a reality.

.Bhuta Rin5.Bhuta Rin::--Indebtedness to all subIndebtedness to all sub--humanhumanspeciesspecies -- trees, animals, birds, fish, insects etc. fortrees, animals, birds, fish, insects etc. fortheir incalculable gifts to us.their incalculable gifts to us.

Albert Einstein had the same concept.Albert Einstein had the same concept.

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Principles of the GitaPrinciples of the Gita Raj Yoga, Gyan Yoga, Bhakti Yoga (the Beauty ofRaj Yoga, Gyan Yoga, Bhakti Yoga (the Beauty of

Surrender)Surrender)

Karma YogaKarma Yoga --Nisham KarmaNisham Karma--Egoless work with DivineEgoless work with DivineDuty.Duty.

Karmanye aadhikaresthey maa phaleshu kadachanaKarmanye aadhikaresthey maa phaleshu kadachana

Soul is indestructibleSoul is indestructible-- as you discard old clothes, the Soulas you discard old clothes, the Soul

discards the old body and enters into a new body.discards the old body and enters into a new body. The cycle of death and birth is painful. You can avoid thisThe cycle of death and birth is painful. You can avoid this

cycle and achieve Moksha (Salvation) through Nishkamcycle and achieve Moksha (Salvation) through Nishkam

Karma and Surrender to God.Karma and Surrender to God.

Be Fearless and do your duty with Dharma .Be Fearless and do your duty with Dharma . Dont fear death because death is certain when one is bornDont fear death because death is certain when one is born

and birth is certain when one diesand birth is certain when one dies-- so why worry?so why worry?

A person who can give up ego, power, pride, lust ,angerA person who can give up ego, power, pride, lust ,anger

and taking favours, he only is qualified to think ofand taking favours, he only is qualified to think of

achieving Brahma.achieving Brahma.

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System of Education in Ancient IndiaSystem of Education in Ancient India-- VedicVedic

System and Buddhist SystemSystem and Buddhist System

Essentials of Indian Philosophy:Essentials of Indian Philosophy:

The law of Karma, Rebirth and Salvation (ideaThe law of Karma, Rebirth and Salvation (idea

of liberation)of liberation)--Brahmacharya, Grihastha,Brahmacharya, Grihastha,Baanprastha, and Moksha.Baanprastha, and Moksha.

Eight Schools of Thoughts or Philosophy.Eight Schools of Thoughts or Philosophy.

Common principlesCommon principlessimple living highsimple living highthinkingthinking--nonattachment to material things.nonattachment to material things.

Difference with Buddhist philosophy.Difference with Buddhist philosophy.

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Ethics of BuddhismEthics of Buddhism--the principle of Sufferingthe principle of Suffering--

existence, causes and cessation of sufferings.existence, causes and cessation of sufferings.Eightfold Noble Path or MadhyapanthaEightfold Noble Path or Madhyapantha

1.Sat Vakya1.Sat Vakya -- Right SpeechRight Speech

2.Sat Karma2.Sat Karma-- Right Action (Right Conduct)Right Action (Right Conduct)

3.Sat Chinta3.Sat Chinta-- Right Thinking (Right Resolve)Right Thinking (Right Resolve)

4.Sat Cheshta4.Sat CheshtaRightEffortRightEffort5.Sat Smriti5.Sat Smriti-- Right Remembrance (Right Views)Right Remembrance (Right Views)

6.Sat Jeevan6.Sat Jeevan-- Right LivelihoodRight Livelihood

7.Samyag Drisht7.Samyag Drisht-- Right Perception ( Mindfulness)Right Perception ( Mindfulness)

8.Smyag Samadhi8.Smyag Samadhi-- Right MeditationRight Meditation -- ( Concentration).( Concentration).

ShortShort--cut principles for ordinary peoplecut principles for ordinary people-- dont steal,dont steal,dont lie, respect ladies and abjure violence.dont lie, respect ladies and abjure violence.

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Ethics of Buddhist EconomicsEthics of Buddhist Economics

Sustainable GrowthSustainable Growth--Planting and nurturing of treesPlanting and nurturing of treesand nature.and nature.

Utilization of local resourcesUtilization of local resources

Full employmentFull employment DanaDana--giftsgifts--and charities to othersand charities to others--profitprofit-- sharingsharing

(ethics of the wealthy and the business class)(ethics of the wealthy and the business class)

Least expenditure on armies and promoteLeast expenditure on armies and promote

development through nondevelopment through non--violence (ethics ofviolence (ethics ofgovernance)governance)

Following Dharma by the Rulers (ethics of rulers)Following Dharma by the Rulers (ethics of rulers)

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Ethics of JainismEthics of Jainism

1.Ahimsa (Abstinence from all injury)1.Ahimsa (Abstinence from all injury)

2.Satyam (Abstinence from falsehood)2.Satyam (Abstinence from falsehood)

3.Asteyam (Abstinence from stealing)3.Asteyam (Abstinence from stealing)

4.Brahmacharyam (Abstinence from self4.Brahmacharyam (Abstinence from self--indulgence)indulgence)5.Aparigraha (Abstinence from all attachments)5.Aparigraha (Abstinence from all attachments)

Bondage of the soul:Bondage of the soul: causes: anger, pride, infatuationcauses: anger, pride, infatuationand greed.and greed.

Liberation of the soul: dissociation of the soul fromLiberation of the soul: dissociation of the soul fromthe matter.the matter.

Believes in the Theory of Karma and Rebirth but notBelieves in the Theory of Karma and Rebirth but notin God.in God.

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Swami VivekanandaSwami Vivekananda--Philosophy & EthicsPhilosophy & Ethics

Dont forget that the poor, the downDont forget that the poor, the down--trodden, andtrodden, andthe untouchables are your brothers & sisters.the untouchables are your brothers & sisters.

You will reach God by playing football rather thanYou will reach God by playing football rather thanby reading the Gita.by reading the Gita.

You can not preach religion to people with emptyYou can not preach religion to people with emptystomachstomach--food and education come first beforefood and education come first before

anything else. Education, education, & education foranything else. Education, education, & education forallall-- womens freedom, enlightenment and freedomwomens freedom, enlightenment and freedomfrom superstition and blind faith.from superstition and blind faith.

Service to Humanity .Those who are servingService to Humanity .Those who are servingjiva i.ejiva i.e

living beings are serving God.living beings are serving God. Building of a strong nation and character throughBuilding of a strong nation and character through

education, economic and spiritual development.education, economic and spiritual development.

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Philosophy of Mahatma GandhiPhilosophy of Mahatma Gandhi

AhimsaAhimsa-- NonNon--violence ( imbibed Buddhism & Jainism &violence ( imbibed Buddhism & Jainism &Tolstoy)Tolstoy)

DharmaDharma-- Moral Law (Gita)Moral Law (Gita)

TruthTruth--Truth is God and God is Truth (Aristotle: know Thyself)Truth is God and God is Truth (Aristotle: know Thyself)

Communal Harmony (Indian tradition of tolerance andCommunal Harmony (Indian tradition of tolerance andharmony)harmony)

Equality of all human beings and Women (Western thoughts)Equality of all human beings and Women (Western thoughts)

HarijansHarijans-- upup--liftment of the downtrodden (Vivekananda)liftment of the downtrodden (Vivekananda)

Khadi & Village developmentKhadi & Village development-- dev. from grassrootsdev. from grassroots

(innovation)(innovation) Trustee for Industries & Industrial Houses (innovation)Trustee for Industries & Industrial Houses (innovation)

Sarvodaya & Community Development ( Marxism)Sarvodaya & Community Development ( Marxism)

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Philosophy of Rishi AurobindoPhilosophy of Rishi Aurobindo--the Divine Manthe Divine Man

Evolution of Consciousness. Divine Life on earth.Evolution of Consciousness. Divine Life on earth.

Money not despisedMoney not despised--it is an instrument of Lifeit is an instrument of LifeDivineDivine-- I do not regard business as something evilI do not regard business as something evilor tainted..or tainted..

SuperSuper--consciousness and mindconsciousness and mind--ascent of humanascent of human

soul to Supreme Spirit.soul to Supreme Spirit. India cannot perish ...among all the divisions of India cannot perish ...among all the divisions of

mankind, it is to India that is reserved the highestmankind, it is to India that is reserved the highestand most splendid destiny, the most essential toand most splendid destiny, the most essential tothe future of human race. It is she who must sendthe future of human race. It is she who must sendforth from herself the future religion of the entireforth from herself the future religion of the entireworld, the eternal religion which is to harmonizeworld, the eternal religion which is to harmonizeall religions, science and philosophies and makeall religions, science and philosophies and makemankind one soul. It is for this Shi Ramkrishnamankind one soul. It is for this Shi Ramkrishna

came and Vivekananda preached.came and Vivekananda preached.

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Philosophy ofRabindranath TagorePhilosophy ofRabindranath Tagore

Universalism against Nationalism;Universalism against Nationalism; Humanism; Humanizing Education System inHumanism; Humanizing Education System in

natural environment (Shantiniketan); Agriculturalnatural environment (Shantiniketan); Agriculturaldevelopment (Sriniketan);development (Sriniketan);

The religion of Man;The religion of Man;

Peace and NonPeace and Non--violence;violence; Unity of Mankind,Unity of Mankind,

Freedom and Fearlessness;Freedom and Fearlessness;

Truthfulness; those who do injustice and thoseTruthfulness; those who do injustice and those

who tolerate injustice are equally condemnable.who tolerate injustice are equally condemnable. Where the mind is without fear and the head isWhere the mind is without fear and the head is

held high.held high.

Tagore epitomized the entire Indian Culture of fiveTagore epitomized the entire Indian Culture of five

thousand years. A unique example of Total Qualitythousand years. A unique example of Total Quality

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ap er . eore ca spec s oap er . eore ca spec s o

EthicsEthics Cognitivism and NonCognitivism and Non--cognitivismcognitivism

Consequentialism and NonConsequentialism and Non--consequentialismconsequentialism

Deontological Theory of Emanuel KantDeontological Theory of Emanuel Kant --goodwillgoodwill

UtilitarianismUtilitarianism-- maximum good for the maximum numbermaximum good for the maximum number--Jeremy BenthamJeremy Bentham

EgoismEgoism-- Enlightened EgoismEnlightened Egoism-- Market Ethic (AdamMarket Ethic (AdamSmith), Protestant Ethic (work ethicSmith), Protestant Ethic (work ethic--Max Weber), LibertyMax Weber), LibertyEthic (John Lock).Ethic (John Lock).

Rights PrinciplesRights Principles-- Animal Rights, Human Rights,Animal Rights, Human Rights,Democratic Rights, Women Rights, Childrens RightsDemocratic Rights, Women Rights, Childrens Rights

Theory of JusticeTheory of Justice--based on principles of rights, fairnessbased on principles of rights, fairnessand equality.and equality.

Distributive Justice. Retributive Justice. CompensatoryDistributive Justice. Retributive Justice. CompensatoryJustice.Justice.

Ethical RelativismEthical Relativism-- attitudes of races, religion & societiesattitudes of races, religion & societies

Secular EthicsSecular Ethics-- truth, rationality and humanism.truth, rationality and humanism.

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Ethics is all about distinguishing between:Ethics is all about distinguishing between:

*Good & bad or good and evil*Good & bad or good and evil

*Right & wrong*Right & wrong

*Morality & immorality*Morality & immorality

*Rationality & irrationality*Rationality & irrationality*Justice & Injustice*Justice & Injustice

*Reason & unreason or prejudice*Reason & unreason or prejudice

*Fairness & unfairness*Fairness & unfairness*Truth and untruth*Truth and untruth

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Cognitivism and NonCognitivism and Non--CognitivismCognitivism Moral principles which can be identified orMoral principles which can be identified or

recognized. (mainly religion based e.g. abortion,recognized. (mainly religion based e.g. abortion,

drinking, cow slaughter or killing of animals fordrinking, cow slaughter or killing of animals formeat or hunting, female infanticide, sati, interestmeat or hunting, female infanticide, sati, intereston deposits etc.)on deposits etc.)

The second view is Moral principles can never beThe second view is Moral principles can never beknown because there is nothing in the world whichknown because there is nothing in the world whichis absolute truth and which does not depend uponis absolute truth and which does not depend uponor vary with time, place, situations andor vary with time, place, situations andcircumstances.circumstances.

What is moral today may be immoral tomorrow,What is moral today may be immoral tomorrow,

what immoral in one society may be moral inwhat immoral in one society may be moral inanother society depending on the culturalanother society depending on the culturaldifferences. There is nothing in the world which isdifferences. There is nothing in the world which isunconditional except mans Free will and Goodunconditional except mans Free will and GoodWill.Will.

Ethical RelativismEthical Relativism

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Consequentialism & NonConsequentialism & Non--ConsequentialismConsequentialism

ConsequentialismConsequentialism::

UtilitarianismUtilitarianism--Jeremy BenthamJeremy Bentham

EgoismEgoism-- Enlightened Self InterestEnlightened Self Interest Adam SmithAdam Smith

NonNon-- Consequentialism:Consequentialism:

Deontological Theory of Emmanuel KantDeontological Theory of Emmanuel Kant

(Duty and Goodwill).(Duty and Goodwill).

Justice PrinciplesJustice Principles Distributive Justice,Distributive Justice,Retributive Justice, Compensatory Justice.Retributive Justice, Compensatory Justice.

Rights PrinciplesRights Principles Human Rights, Women Rights,Human Rights, Women Rights,Animal Rights, Environmental Rights, ChildrenAnimal Rights, Environmental Rights, ChildrenRights, Minority Rights, Education Rights,Rights, Minority Rights, Education Rights,

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Human Values For Indian ManagersHuman Values For Indian Managers In spite of the fact that ancient India setIn spite of the fact that ancient India set

highest ethical, moral and spiritual standards,highest ethical, moral and spiritual standards,there is no evidence of those in Corporatethere is no evidence of those in Corporate

governance.governance.

While Japan has largely retained their ownWhile Japan has largely retained their own

cultural values in managementcultural values in management

Indian managers are governed by westernIndian managers are governed by western

values which are mainly materialistic.values which are mainly materialistic.

Need for moral regeneration and adopt anNeed for moral regeneration and adopt an

Indian Style of Management.Indian Style of Management.

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.. Basic Questions in EconomicsBasic Questions in EconomicsWHAT,WHAT,

HOW and FOR WHOMHOW and FOR WHOManswers allanswers all

questions.questions. When there are plethora of Acts, Rules,When there are plethora of Acts, Rules,

Guidelines and Regulatory Authorities toGuidelines and Regulatory Authorities toregulate Business ,the question arises whyregulate Business ,the question arises why

should there be a separate set of Businessshould there be a separate set of BusinessEthics?Ethics?

The answer is Acts and Rules are not enoughThe answer is Acts and Rules are not enough--

Business has to do much more than this andBusiness has to do much more than this andthat brings us to the question of Morality andthat brings us to the question of Morality andMoral Judgements.Moral Judgements.

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Nature of Business EthicsNature of Business Ethics

Three Approaches to Study of Business Ethics:Three Approaches to Study of Business Ethics:

Descriptive (describing practices, moral codes andDescriptive (describing practices, moral codes andbeliefs)beliefs)

Prescriptive (attempt to formulate and defend basicPrescriptive (attempt to formulate and defend basicmoral norms)moral norms)

Conceptual study of ethics (analysing central ethicalConceptual study of ethics (analysing central ethical

terms such as right, good, justice, virtueterms such as right, good, justice, virtue--an attemptan attemptto distinguish what is moral and what is immoral).to distinguish what is moral and what is immoral).

FourFour--part structure of Business Ethics:part structure of Business Ethics:

1.Specification of Moral Judgement.1.Specification of Moral Judgement.

2.Moral Judgement and Moral Standards.

2.Moral Judgement and Moral Standards.

3.Logical Reasoning and Moral Standard.3.Logical Reasoning and Moral Standard.

5.Moral Judgement and Moral Responsibility.5.Moral Judgement and Moral Responsibility.

V i A f B i E hiV i A f B i E hi

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Various Aspects of Business Ethics.Various Aspects of Business Ethics.1.General Business Ethics

This part of business ethics overlaps with theThis part of business ethics overlaps with thephilosophyphilosophy

of businessof business, one of the aims of which is to determine the, one of the aims of which is to determine thefundamental purposes of a company. If a company'sfundamental purposes of a company. If a company'smain purpose is to maximize the returns to itsmain purpose is to maximize the returns to itsshareholders, then it should be seen as unethical for ashareholders, then it should be seen as unethical for acompany to consider the interests and rights of anyonecompany to consider the interests and rights of anyone

else.else. Corporate social responsibilityCorporate social responsibility or CSR: an umbrellaor CSR: an umbrella

term under which the ethical rights and duties existingterm under which the ethical rights and duties existingbetween companies and society is debated.between companies and society is debated.

Issues regarding the moral rights and duties between aIssues regarding the moral rights and duties between acompany and its shareholders:company and its shareholders: fiduciaryfiduciary responsibility,responsibility,stakeholder conceptstakeholder concept v.v. shareholder conceptshareholder concept..

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.. Ethical issues concerning relations betweenEthical issues concerning relations between

different companies: e.g.different companies: e.g.hostile takehostile take--oversovers,,

industrial espionageindustrial espionage..

Leadership issues:Leadership issues: corporate governancecorporate governance;;Corporate Social EntrepreneurshipCorporate Social Entrepreneurship

Political contributionsPolitical contributions made by corporations.made by corporations.

Law reform, such as the ethical debate overLaw reform, such as the ethical debate overintroducing a crime ofintroducing a crime ofcorporate manslaughtercorporate manslaughter..

The misuse of corporate ethics policies asThe misuse of corporate ethics policies asmarketing instruments.marketing instruments.

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..

..

2.2 . Ethics ofAccounting andFinancial Information

Creative accountingCreative accounting,, earnings managementearnings management,,misleading financial analysismisleading financial analysis..

Insider tradingInsider trading,, securities fraudsecurities fraud,, bucket shopsbucket shops,,forex scamsforex scams: concerns (criminal) manipulation of: concerns (criminal) manipulation ofthe financial markets.the financial markets.

Executive compensationExecutive compensation: concerns excessive: concerns excessive

payments made to corporate CEO's and toppayments made to corporate CEO's and topmanagement.management.

BriberyBribery,, kickbackskickbacks,, facilitation paymentsfacilitation payments: while: whilethese may be in the (shortthese may be in the (short--term) interests of theterm) interests of the

company and its shareholders, these practices maycompany and its shareholders, these practices maybe antibe anti--competitive or offend against the values ofcompetitive or offend against the values ofsociety.society.

Cases:Cases: accounting scandalsaccounting scandals,, EnronEnron,, WorldComWorldCom,,

SatyamSatyam

3 Ethi f H R M tEthi f H R M t

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.. 3. Ethics ofHuman Resource ManagementEthics ofHuman Resource Management

The ethics ofThe ethics ofhuman resource managementhuman resource management (HRM)(HRM)covers those ethical issues arising around thecovers those ethical issues arising around theemployeremployer--employee relationship, such as the rightsemployee relationship, such as the rightsand duties owed between employer and employee.and duties owed between employer and employee.

DiscriminationDiscrimination issues include discrimination onissues include discrimination onthe bases of age (the bases of age (ageismageism), gender, race, religion,), gender, race, religion,

disabilitiesdisabilities, weight and attractiveness. See also:, weight and attractiveness. See also:affirmative actionaffirmative action,, sexual harassmentsexual harassment..

Issues arising from the traditional view ofIssues arising from the traditional view of

relationships between employers and employees,relationships between employers and employees,also known asalso known as AtAt--will employmentwill employment..

Issues surrounding the representation ofIssues surrounding the representation ofemployees and the democratization of theemployees and the democratization of the

workplace:workplace: union bustingunion busting,, strike breakingstrike breaking..

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... Issues affecting the. Issues affecting the privacyprivacy of the employee:of the employee:

workplace surveillanceworkplace surveillance,, drug testingdrug testing. See also:. See also:privacyprivacy..

Issues affecting the privacy of theIssues affecting the privacy of the employeremployer::whistlewhistle--blowingblowing..

Issues relating to the fairness of the employmentIssues relating to the fairness of the employmentcontract and the balance of power betweencontract and the balance of power betweenemployer and employee:employer and employee: slaveryslavery,, indenturedindenturedservitudeservitude,, employment lawemployment law..

Occupational safety and healthOccupational safety and health..

All of the above are also related to the hiring andAll of the above are also related to the hiring andfiring of employees. An employee or futurefiring of employees. An employee or futureemployee can not be hired or fired based on race,employee can not be hired or fired based on race,age, gender, religion, or any other discriminatoryage, gender, religion, or any other discriminatory

44 Ethi f S l d M k ti

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4.4. Ethics of Sales and Marketing

Marketing, which goes beyond the mere provision ofMarketing, which goes beyond the mere provision ofinformation about (and access to) a product, mayinformation about (and access to) a product, mayseek to manipulate our values and behavior. Toseek to manipulate our values and behavior. Tosome extent society regards this as acceptable, butsome extent society regards this as acceptable, butwhere is the ethical line to be drawn? Marketingwhere is the ethical line to be drawn? Marketingethics overlaps strongly withethics overlaps strongly with media ethicsmedia ethics, because, becausemarketing makes heavy use of media. However,marketing makes heavy use of media. However,

media ethicsmedia ethics is a much larger topic and extendsis a much larger topic and extendsoutside business ethics.outside business ethics.

Pricing:Pricing: price fixingprice fixing,, price discriminationprice discrimination,, pricepriceskimmingskimming..

AntiAnti--competitive practices: these include but gocompetitive practices: these include but go

beyond pricing tactics to cover issues such asbeyond pricing tactics to cover issues such asmanipulation of loyalty and supply chains. See:manipulation of loyalty and supply chains. See:antianti--competitive practicescompetitive practices,, antitrust lawantitrust law..

Specific marketing strategies:Specific marketing strategies: green washgreen wash,, baitbaitand switchand switch,, shillshill,, viral marketingviral marketing,, spamspam(electronic)(electronic),, pyramid schemepyramid scheme,, plannedplanned

C t t f d ti tC t t f d ti t tt k dtt k d bli i lbli i l

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. Content of advertisements:. Content of advertisements: attack adsattack ads,, subliminalsubliminalmessagesmessages,, sex in advertisingsex in advertising, products regarded as, products regarded asimmoral or harmfulimmoral or harmful

Children and marketing:Children and marketing: marketing in schoolsmarketing in schools.. Black marketsBlack markets,, grey marketsgrey markets..

See also: ,See also: , disinformationdisinformation,, advertisingadvertising techniques,techniques,false advertisingfalse advertising,, advertising regulationadvertising regulation

Cases:Cases: BenettonBenetton..

55 Ethi f P d ti

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5.5. Ethics of Production

This area of business ethics usually deals with theThis area of business ethics usually deals with theduties of a company to ensure that products andduties of a company to ensure that products and

production processes do not cause harm. Some ofproduction processes do not cause harm. Some ofthe more acute dilemmas in this area arise out ofthe more acute dilemmas in this area arise out ofthe fact that there is usually a degree of danger inthe fact that there is usually a degree of danger inany product or production process and it isany product or production process and it is

difficult to define a degree of permissibility, or thedifficult to define a degree of permissibility, or thedegree of permissibility may depend on thedegree of permissibility may depend on thechanging state of preventative technologies orchanging state of preventative technologies orchanging social perceptions of acceptable risk.changing social perceptions of acceptable risk.

Defective, addictive and inherently dangerousDefective, addictive and inherently dangerousproducts and services (e.g. tobacco, alcohol,products and services (e.g. tobacco, alcohol,weapons, motor vehicles, chemical manufacturing,weapons, motor vehicles, chemical manufacturing,bungee jumpingbungee jumping).).

E hi l l i b h d hE hi l l i b h d h

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Ethical relations between the company and theEthical relations between the company and the

environment:environment: pollutionpollution,, environmental ethicsenvironmental ethics,,

carbon emissions tradingcarbon emissions trading

Ethical problems arising out of new technologies:Ethical problems arising out of new technologies:

genetically modified foodgenetically modified food,, mobile phone radiationmobile phone radiation

and healthand health..

Product testing ethics:Product testing ethics: animal rightsanimal rights andand animalanimaltestingtesting, use of economically disadvantaged groups, use of economically disadvantaged groups

(such as students) as test objects.(such as students) as test objects.

See also:See also: product liabilityproduct liability

Cases:Cases: Ford PintoFord Pinto scandal,scandal, Bhopal disasterBhopal disaster,,asbestosasbestos // asbestos and the lawasbestos and the law,, PeanutPeanut

Corporation of AmericaCorporation of America

66 Ethics of Intellectual Property Knowledge and Skills

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6.6. Ethics of Intellectual Property, Knowledge and Skills

Knowledge and skills are valuable but not easily "ownKnowledge and skills are valuable but not easily "ownable" as objects. Nor is it obvious who has the greaterable" as objects. Nor is it obvious who has the greaterrights to an idea: the company who trained the employee,rights to an idea: the company who trained the employee,

or the employee themselves? The country in which theor the employee themselves? The country in which theplant grew, or the company which discovered andplant grew, or the company which discovered anddeveloped the plant's medicinal potential? As a result,developed the plant's medicinal potential? As a result,attempts to assert ownership and ethical disputes overattempts to assert ownership and ethical disputes overownership arise.ownership arise.

Patent infringementPatent infringement,, copyright infringementcopyright infringement,, trademarktrademark

infringementinfringement.. Misuse of the intellectual property systems to stifleMisuse of the intellectual property systems to stifle

competition:competition: patent misusepatent misuse,, copyright misusecopyright misuse,, patent trollpatent troll,,submarine patentsubmarine patent..

Even the notion of intellectual property itself has beenEven the notion of intellectual property itself has been

criticized on ethical grounds: seecriticized on ethical grounds: see intellectual propertyintellectual property.. Employee raidingEmployee raiding: the practice of attracting key employees: the practice of attracting key employees

away from a competitor to take unfair advantage of theaway from a competitor to take unfair advantage of theknowledge or skills they may possess.knowledge or skills they may possess.

The practice of employing all the most talented people in aThe practice of employing all the most talented people in a

specific field, regardless of need, in order to prevent anyspecific field, regardless of need, in order to prevent anycom etitors em lo in them.com etitors em lo in them.

7 I7 International Business Ethics and Ethics of

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7. I7. International Business Ethics and Ethics ofEconomic Systems

International business ethicsInternational business ethics

While business ethics emerged as a field in the19

70s,While business ethics emerged as a field in the

197

0s,international business ethics did not emerge until theinternational business ethics did not emerge until the

late 1990s, looking back on the internationallate 1990s, looking back on the internationaldevelopments of that decade. Many new practicaldevelopments of that decade. Many new practicalissues arose out of the international context ofissues arose out of the international context of

business. Theoretical issues such as cultural relativitybusiness. Theoretical issues such as cultural relativityof ethical values receive more emphasis in this field.of ethical values receive more emphasis in this field.Other, older issues can be grouped here as well.Other, older issues can be grouped here as well.Issues and subfields include:Issues and subfields include:

The search for universal values as a basis forThe search for universal values as a basis for

international commercial behaviour.international commercial behaviour. Comparison of business ethical traditions in differentComparison of business ethical traditions in different

countries. Also on the basis of their respective GDPcountries. Also on the basis of their respective GDPand [and [Corruption rankingsCorruption rankings].].

Comparison of business ethical traditions fromComparison of business ethical traditions from

Ethical issues arising out of international businessEthical issues arising out of international business

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. Ethical issues arising out of international business. Ethical issues arising out of international businesstransactions; e.g.transactions; e.g.bioprospectingbioprospecting andandbiopiracybiopiracy in thein thepharmaceutical industry; thepharmaceutical industry; the fair tradefair trade movement;movement;transfer pricingtransfer pricing..

Issues such asIssues such as globalizationglobalization andand cultural imperialismcultural imperialism..

Varying global standardsVarying global standards -- e.g. the use ofe.g. the use ofchild laborchild labor..

The way in which multinationals take advantage ofThe way in which multinationals take advantage ofinternational differences, such as outsourcinginternational differences, such as outsourcing

production (e.g. clothes) and services (e.g. callproduction (e.g. clothes) and services (e.g. callcentres) to lowcentres) to low--wage countries.wage countries.

The permissibility of international commerce withThe permissibility of international commerce withpariah states.pariah states.

Foreign countries often use dumping as a competitiveForeign countries often use dumping as a competitivethreat, selling products at prices lower than theirthreat, selling products at prices lower than theirnormal value. This can lead to problems in domesticnormal value. This can lead to problems in domesticmarkets. It becomes difficult for these markets tomarkets. It becomes difficult for these markets tocompete with the pricing set by foreign markets. Incompete with the pricing set by foreign markets. In2009

, the International Trade Commission has been2009

, the International Trade Commission has been--

Ethics of Economic Systems

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Ethics of Economic Systems

This vaguely defined area, perhaps not part of butThis vaguely defined area, perhaps not part of butonly related to business ethics, is where businessonly related to business ethics, is where businessethicists venture into the fields ofethicists venture into the fields ofpolitical economypolitical economyandandpolitical philosophypolitical philosophy, focusing on the rights and, focusing on the rights andwrongs of various systems for the distribution ofwrongs of various systems for the distribution ofeconomic benefits.economic benefits. John RawlsJohn Rawls andand Robert NozickRobert Nozickare both notable contributors.are both notable contributors.

I.Theoretical Issues in Business Ethics- Conflicting interests

Business ethics can be examined from various newBusiness ethics can be examined from various newperspectives, including the perspective of theperspectives, including the perspective of theemployee, the commercial enterprise, and society as aemployee, the commercial enterprise, and society as awhole. Very often, situations arise in which there iswhole. Very often, situations arise in which there isconflict between one or more of the parties, such thatconflict between one or more of the parties, such thatserving the interest of one party is a detriment to theserving the interest of one party is a detriment to theother(s). For example, a particular outcome might beother(s). For example, a particular outcome might begood for the employee, whereas, it would be bad forgood for the employee, whereas, it would be bad forthe company, society, or vice versa. Some ethiciststhe company, society, or vice versa. Some ethicists

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Unit 4 Features and Purpose ofUnit 4 Features and Purpose of

EthicsEthics EthicsEthics a Normative Science.a Normative Science.

Postulates of EthicsPostulates of Ethics--(a) Free will, (b) Reason, and (c)(a) Free will, (b) Reason, and (c)Personality.Personality.

Motive or IntentionMotive or Intention--What is the Objective of MoralWhat is the Objective of MoralJudgment?Judgment?

The Scope of EthicsThe Scope of Ethics--Concerns all sciences and allConcerns all sciences and allactions of individuals, politics and society.actions of individuals, politics and society.

The Need for EthicsThe Need for Ethics

The Need to go beyond EthicsThe Need to go beyond Ethics Spirituality is not Denial of the WorldSpirituality is not Denial of the World

Ethics and ReligionEthics and Religion

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Features of ValuesFeatures of Values--Types of valuesTypes of values--

Formulation of valuesFormulation of values

The Relevance of Human Values in ManagementThe Relevance of Human Values in Management

Elements of Indian EthosElements of Indian Ethos

Secular Vs Spiritual Values in Management.Secular Vs Spiritual Values in Management.

An independent rational morality not based onAn independent rational morality not based on

religious faith or commandments.religious faith or commandments.

Work Ethos.Work Ethos.

Development of work cultureDevelopment of work culture Factors responsible for poor work culture in anFactors responsible for poor work culture in an

organization.organization.

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Unit 5. Importance of Ethics andUnit 5. Importance of Ethics and

Moral standardsMoral standardsImportance ofEthics in BusinessImportance ofEthics in Business--essential for longessential for long--termterm

success in business.success in business.

-- Unethical behaviour will damage Public Image, erodeUnethical behaviour will damage Public Image, erodeGoodwill( biggest Asset), affect efficiency and willGoodwill( biggest Asset), affect efficiency and will

invite Govt. Intervention.invite Govt. Intervention.Unethical Behaviour from a Macro PerspectiveUnethical Behaviour from a Macro Perspective..

BriberyBribery

Coercive ActsCoercive Acts

Deceptive InformationDeceptive Information TheftTheft

DiscriminationDiscrimination

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The Macro PerspectiveThe Macro Perspective--Ethics and TrustEthics and Trust

Trust in Supplier RelationsTrust in Supplier Relations

Trust in Customer RelationsTrust in Customer Relations

Trust in Employee RelationsTrust in Employee Relations

Moral StandardsMoral StandardsEssential Elements of Social contract theoryEssential Elements of Social contract theory

Consequentialist PrinciplesConsequentialist Principles--decision ethical ordecision ethical orunethical will depend on consequences.unethical will depend on consequences.

EgoismEgoism--individuals personal interest.individuals personal interest.

UtilitarianismUtilitarianism--utility to individual & community.utility to individual & community.

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Unit 6. Model of Management in the IndianUnit 6. Model of Management in the Indian

SocioSocio--political Environmentpolitical Environment Role of Indian Ethos in Management : A TwentyRole of Indian Ethos in Management : A Twenty--

First Century PerspectiveFirst Century Perspective

Fragmentation of human consciousness acceleratedFragmentation of human consciousness acceleratedby science and technology is a prime cause of theby science and technology is a prime cause of thewidespread fall in the level of human values reflectedwidespread fall in the level of human values reflectedin our lives.in our lives.

Prospective scenario of the Future Organization:Prospective scenario of the Future Organization:

StressStress --second nature of Executivessecond nature of Executives

Total Quality ControlTotal Quality Control--zerozero--defect product, qualitydefect product, qualityconscious production, increased creativity, reducedconscious production, increased creativity, reducedobesity, flattened hierarchy, customer satisfaction etc.obesity, flattened hierarchy, customer satisfaction etc.

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Relevance of Indian Ethos to FutureRelevance of Indian Ethos to Future

OrganizationsOrganizations

The Executive as a YogiThe Executive as a Yogi-- Karma and DharmaKarma and Dharma

Imaan and Izzat.Imaan and Izzat.

TheE

ast and the West Plain Living and HighTheE

ast and the West Plain Living and HighThinking : a Study in ContrastThinking : a Study in Contrast

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Problems Relating to Stress in CorporateProblems Relating to Stress in Corporate

Management and Indian PerspectiveManagement and Indian Perspective

Age of Discontinuity (Peter Drucker)Age of Discontinuity (Peter Drucker)

Age of Uncertainty (J.K. Galbraith )Age of Uncertainty (J.K. Galbraith )

Age of Future Shock (Alvin Toffler )Age of Future Shock (Alvin Toffler )

Age of Anxiety ( Karl Albrecht )Age of Anxiety ( Karl Albrecht ) STRESS :STRESS :

Symptoms ,causes and SolutionsSymptoms ,causes and Solutions

Environmental Factors & Life style

Environmental Factors & Life style

Indian Perspectives :Meditation, Yoga,Indian Perspectives :Meditation, Yoga,Mindfulness, Music, SelfMindfulness, Music, Self--introspection, Brainintrospection, Brainstilling, family values and bonding.stilling, family values and bonding.

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Unit 7 Corporations and SocialUnit 7 Corporations and Social

ResponsibilitiesResponsibilities

The concept of Social ResponsibilityThe concept of Social Responsibility

Plethora of Acts, Laws, Rules and RegulationsPlethora of Acts, Laws, Rules and Regulationsexist, then why other responsibilities?exist, then why other responsibilities?

Howard Bowen ( Social Responsibilities ofHoward Bowen ( Social Responsibilities ofBusinessman )Businessman )

K. R . Andrews (intelligent and objectiveK. R . Andrews (intelligent and objective

concern )concern ) Keith DavisKeith Davis social responsibility beginssocial responsibility begins

where the law ends.where the law ends.

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Need for Social Responsibilities The iron Law of Responsibility

To fulfil long-run Self-interest

To establish a better Public Image

To avoid Government Regulation or Control

To avoid misuse of National resources and economicpower

To avoid Class conflicts

To convert resistance into Resources

To minimize Environmental damage.

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Responsibility of Business Towards SocietyResponsibility of Business Towards Society

Four Categories of Responsibilities:Four Categories of Responsibilities:

1.Resposibility Towards the Shareholders.1.Resposibility Towards the Shareholders.

2.Responsibilities Towards their own Employees.2.Responsibilities Towards their own Employees.

3.Responsibility Towards the Consumers and the3.Responsibility Towards the Consumers and theGovernment.Government.

4.Responsibility Towards the Society in General4.Responsibility Towards the Society in General

especially Environment.especially Environment. Economic ObjectivesEconomic Objectives

Social Objectives ( profits can no longer be theSocial Objectives ( profits can no longer be the

Sole objective of BusinessSole objective of BusinessUrwick)Urwick)

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..Social Responsibility towards Government:Social Responsibility towards Government:

1.Be Law abiding Citizen.1.Be Law abiding Citizen.

2 .Pay Taxes and dues to Govt. honestly and promptly .2 .Pay Taxes and dues to Govt. honestly and promptly .

3.Not to corrupt Govt. Servants and the Democratic3.Not to corrupt Govt. Servants and the Democratic

processes for selfish ends.processes for selfish ends.

4.Not purchase Political support by unfair means.4.Not purchase Political support by unfair means.

5 Not to produce and sell Sub5 Not to produce and sell Sub--standard commoditiesstandard commodities

and services .and services .

6.Not to resort to hoarding and unfair Trade practices.6.Not to resort to hoarding and unfair Trade practices.

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Place of Ethics and Values.Place of Ethics and Values.

To Whom Are Organizations Socially Responsible?To Whom Are Organizations Socially Responsible?

Total Social ResponsibilitiesTotal Social Responsibilities

Economic ResponsibilitiesEconomic Responsibilities

Legal ResponsibilitiesLegal Responsibilities

Ethical responsibilities

Ethical responsibilities

Discretionary ResponsibilitiesDiscretionary Responsibilities

*Social Responsibility and Economic Performance.*Social Responsibility and Economic Performance.

*Milton Friedmans Thesis*Milton Friedmans Thesis

*Ethics in Management.*Ethics in Management.

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Corporate and SocioCorporate and Socio--Economic ConflictEconomic Conflict

The Social Audit *The Social Audit *

The Sachar Committee Recommendations*The Sachar Committee Recommendations*

Corporate Social Reporting*Corporate Social Reporting*

Corporate Social ObjectivesCorporate Social Objectives Social Report in Practice :Social Report in Practice :

--Environmental controls,Environmental controls,

--Minority EmploymentMinority Employment

--Responsibility to personnelResponsibility to personnel--Community activitiesCommunity activities

--Product Improvement (Fortune 500 companies )Product Improvement (Fortune 500 companies )

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Unit 8.Ethics and EnvironmentUnit 8.Ethics and Environment

EnvironmentalEthicsEnvironmentalEthics--1 :1 :

Bhopal Gas Tragedy (Union Carbide)Bhopal Gas Tragedy (Union Carbide)

Chernobyl Nuclear power plant Tragedy (USSR)Chernobyl Nuclear power plant Tragedy (USSR)

Ecological SustainabilityEcological Sustainability

Indira Gandhi on Environment. (development withoutIndira Gandhi on Environment. (development without

environmental destruction)environmental destruction)

Environmental EthicsEnvironmental Ethics--II (John Locke)II (John Locke) the Earth isthe Earth isgiven to men to protect and comfort all beings.given to men to protect and comfort all beings.

A Brief Historical Sketch of Environmental Ethics *A Brief Historical Sketch of Environmental Ethics *

Rachel CarsonRachel Carson--Silent Spring. Peter SingerSilent Spring. Peter Singer--AnimalAnimal

Liberation. Ancient Indian Values. Ashokas Edicts.Liberation. Ancient Indian Values. Ashokas Edicts.

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Unit 9. Ethics in ActionUnit 9. Ethics in Action Ethics ofEthics of

ProfessionsProfessions

A.A.Medical Profession.Medical Profession.

International Code Of Medical Ethics:International Code Of Medical Ethics:

Duties ofDoctors in General :THEHIPPOCRATICDuties ofDoctors in General :THEHIPPOCRATIC

OATH. (Ancient Greece)OATH. (Ancient Greece)

Duties ofDoctors Towards the Sick:Duties ofDoctors Towards the Sick:

Duties ofDoctors Towards Each Other:Duties ofDoctors Towards Each Other:

THEDECLARATION OFGENEVA (GeneralTHEDECLARATION OFGENEVA (GeneralAssembly of World MedicalAssociation,1948)Assembly of World MedicalAssociation,1948)

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B. Code Of Ethics For EngineersB. Code Of Ethics For Engineers

Code of Ethics for Corporate MembersCode of Ethics for Corporate Members

mandated by the Institution ofmandated by the Institution of

Engineers(India),1954 , 1997.Engineers(India),1954 , 1997.

The Tenets of the Code Ethics: 11 Codes ofThe Tenets of the Code Ethics: 11 Codes of

Conduct and 10 Instructions as Guidelines.Conduct and 10 Instructions as Guidelines.

CC. Professional Ethics for Chartered. Professional Ethics for Chartered

Accountants:(Accountants:( Chartered AccountantsChartered AccountantsAct,1949.Act,1949.

The Council of the Institute has two bookletsThe Council of the Institute has two booklets--

(i ) Code of Conduct and (ii) Professional(i ) Code of Conduct and (ii) Professional

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Fundamental Principles for CharteredFundamental Principles for Chartered

AccountantsAccountants

IntegrityIntegrity ObjectivityObjectivity

Professional Competence and Due Care (e.g.Professional Competence and Due Care (e.g.Satyam ScandalSatyam Scandal--PWC )PWC )

ConfidentialityConfidentiality Professional Behaviour. (ProfessionalProfessional Behaviour. (Professional

Misconduct Defined by the CA Act)Misconduct Defined by the CA Act)

Four Basic Needs to be met:Four Basic Needs to be met: CredibilityCredibility

ProfessionalismProfessionalism

Quality of Service andQuality of Service and

Con idenceCon idence

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D. Professional Ethics for LawyersD. Professional Ethics for Lawyers--NotNot

CodifiedCodified--Fundamental Moral Values Only.Fundamental Moral Values Only.

The Universal Moral Codes are wantonlyThe Universal Moral Codes are wantonlyviolated in this Professionviolated in this Profession

No Accountability( Ghaziabad TreasuryNo Accountability( Ghaziabad Treasury

Scandal)Scandal) Justice Delayed, Justice DeniedJustice Delayed, Justice Denied

Plight of Common ManPlight of Common Maneither you lose alleither you lose all

your money or lose your life before justiceyour money or lose your life before justicecomes.comes.

Strict Codes for both inside and outside courtsStrict Codes for both inside and outside courts

needed for speedy justice.needed for speedy justice.

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Modern Concept of Professional BehaviourModern Concept of Professional Behaviour

Responsibilities Towards ClientsResponsibilities Towards Clients

Responsibilities Towards the Profession ItselfResponsibilities Towards the Profession Itself

Responsibilities Towards SocietyResponsibilities Towards Society* Professional Ethics in Public and Private* Professional Ethics in Public and Private

Organizations.Organizations.

Unit 10. Ethics in ActionUnit 10. Ethics in Action--Ethics at WorkEthics at Work

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PlacePlaceWhat Are Work Ethos?What Are Work Ethos?

Work CultureWork Culture-- discipline, commitment, sense ofdiscipline, commitment, sense ofbelonging, sense of pridebelonging, sense of pride

Unethical orDysfunctional Behaviour inUnethical orDysfunctional Behaviour inOrganizations: Employees & EmployersOrganizations: Employees & Employers

LyingLying FreeFree--ridingriding

Employee CrimeEmployee Crime

White Collar CrimeWhite Collar Crime

Embezzlement and FraudEmbezzlement and Fraud

Sexual HarassmentSexual Harassment

BriberyBribery

Whistle BlowingWhistle Blowing

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Operational Systems for improvement ofOperational Systems for improvement of

work culturework culture

Job EnrichmentJob Enrichment-- Herzbergs twoHerzbergs two--factorfactortheorytheoryHygienes and MotivatorsHygienes and Motivators

Job RotationJob Rotation

Quality Circles*Quality Circles*

Workers ParticipationWorkers Participation

Organizational Development ( OD )Organizational Development ( OD )

Labour WelfareLabour Welfare Human EngineeringHuman Engineering--to fit man into machine.to fit man into machine.

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Modern Concept of Professional BehaviourModern Concept of Professional Behaviour

Responsibilities Towards ClientsResponsibilities Towards Clients

Responsibilities Towards the Profession ItselfResponsibilities Towards the Profession Itself

Responsibilities Towards SocietyResponsibilities Towards Society* Professional Ethics in Public and Private* Professional Ethics in Public and Private

Organizations.Organizations.

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Unit 11. Ethics and EmployeesUnit 11. Ethics and Employees

DecisionDecision--Making and MoralityMaking and Morality

Moral ApprobationMoral Approbation

Organizational CultureOrganizational Culture Organizational ClimateOrganizational Climate

Organizational GoalsOrganizational Goals

Decision ProcessesDecision Processes Total Benefit TestTotal Benefit Test

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Embedding Ethics in Organizational CultureEmbedding Ethics in Organizational Culture

*Decision Support Model .*Ethical Models*Decision Support Model .*Ethical Models

Developing Organizational Values :Developing Organizational Values : SelectionSelection

PromotionPromotion

TransferTransfer TerminationTermination

Prevent other unethical practices:Prevent other unethical practices:

1.Sexual harassment, 2. Unfair labour practices,1.Sexual harassment, 2. Unfair labour practices,3Unsafe work places, bad conditions and long3Unsafe work places, bad conditions and longworking hours ,4.No redresal of ILOworking hours ,4.No redresal of ILOgrievances ,and 5. Nongrievances ,and 5. Non --implementation of ILOimplementation of ILO

conventions.conventions.

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Qualities of a Personnel ManagerQualities of a Personnel Manager

1. Training and learning opportunities1. Training and learning opportunities

2. Growth opportunities2. Growth opportunities

3.Accountability along with power for decision

3.Accountability along with power for decisionmakingmaking

4. Openness4. Openness

5. Nurturing innovation and allowing5. Nurturing innovation and allowingpaticipationpaticipation

6 Employee welfare6 Employee welfare

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An Ethical HRD ManagerAn Ethical HRD Manager

A Personnel Manager must be a good managerA Personnel Manager must be a good managerand to be a good manager,one has to a goodand to be a good manager,one has to a goodmanman--bigbig--hearted, genuine concern for others,hearted, genuine concern for others,

commands respect,bigcommands respect,big--minded andminded anddevelopment of people below manager.development of people below manager.

HR men should provide proper Leadership.HR men should provide proper Leadership.

You shall others as equalsYou shall others as equals

You should show the ability to forgiveYou should show the ability to forgive

You shall love your fellowmen and womenYou shall love your fellowmen and women

Unit 12. Ethics of AdvertisingUnit 12. Ethics of Advertising

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gg

Critics of Advertising argue:Critics of Advertising argue:

Ad is unethical, is inherently a social evil.Ad is unethical, is inherently a social evil. It induces people to buy things they dont needIt induces people to buy things they dont need

or cant afford. Increases expectations.or cant afford. Increases expectations.

Propagates and perpetuates Capitalistic valuePropagates and perpetuates Capitalistic value

system.system.

It creates undue pressure on the ConsumersIt creates undue pressure on the Consumers

Big firms can afford it but small producersBig firms can afford it but small producers

cantcant Huge money involved should be better spentHuge money involved should be better spent

on improving the quality of productson improving the quality of products

*The critics blame the tool and not the user like*The critics blame the tool and not the user like

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Impact of Advertisement : To InfluenceImpact of Advertisement : To Influence

Advertisements can be categorized into 7 groups:Advertisements can be categorized into 7 groups:

1.Informative1.Informative--to create awareness of the presence ofto create awareness of the presence ofa company or a producta company or a product-- Govt. Advt; launching ofGovt. Advt; launching ofnew products.new products.

2.Neutral and Aesthetic. (specially with children,2.Neutral and Aesthetic. (specially with children,

dogs)dogs)3.Message Bearing (Tata Tea)3.Message Bearing (Tata Tea)

4.Competitive and Comparative( cars)4.Competitive and Comparative( cars)

5..Aggressive and Offensive5..Aggressive and Offensive

6.Dangerous Stunts6.Dangerous Stunts

7.Deceptive7.Deceptive

*Deception is the main problem*Deception is the main problem it is immoral &it is immoral &

unethicalunethical

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Regulation of AdvertisingRegulation of Advertising

LegislationLegislation--Govt. ControlGovt. Control

VoluntaryVoluntary--SelfSelf--Regulatory ControlRegulatory Control--AdAd

Council as WatchdogCouncil as Watchdog

Media ControlMedia Control

Consumer ForaConsumer Fora

Public ControlPublic Control

UNIT 13 Ethi i B i dUNIT 13 Ethi i B i d

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UNIT 13 Ethics in Business andUNIT 13 Ethics in Business and

InvestmentInvestment

Negative and Positive Forms of EthicalNegative and Positive Forms of EthicalInvestment.Investment.

Negative Criteria in Ethical InvestmentNegative Criteria in Ethical Investment

DecisionsDecisions Positive Criteria InfluencingEthicalPositive Criteria InfluencingEthical

Investment DecisionsInvestment Decisions

Animal RightsAnimal Rights--A Moral Concept ?A Moral Concept ?--The BigThe BigDebateDebate-- International Movement forInternational Movement forPrevention of Cruelty to Animals.Prevention of Cruelty to Animals.

Oth L di Ethi l I t tOth L di Ethi l I t t

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Other Leading Ethical InvestmentOther Leading Ethical Investment

Target IndustriesTarget Industries

Alcoholic Beverages Production andAlcoholic Beverages Production andDistribution.Distribution.

International Narcotics TradeInternational Narcotics Trade

International Arms TradeInternational Arms Trade

Use of Additives in Food Production.Use of Additives in Food Production.

Different Value Systems in Different CulturesDifferent Value Systems in Different Cultures

Kants Kingdom ofEndsKants Kingdom ofEndsOther Possible ApproachesOther Possible Approaches

Unit 14 Ethics in SCIUnit 14 Ethics in SCI TECH andTECH and

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Unit 14 Ethics in SCIUnit 14 Ethics in SCI--TECH andTECH and

LAWLAW

*Bio*Bio--EthicsEthics--Manufacture of Medicines, MedicalManufacture of Medicines, Medical

Treatments (sex determination, fertility etc.)Treatments (sex determination, fertility etc.)

*Bio*Bio--TechnologyTechnology--Limits ?Limits ?

*Genetic Engineering*Genetic Engineering Moral and Safety IssuesMoral and Safety Issues

*Human Genome Project*Human Genome Project

*Stem Cell Research.*Stem Cell Research.