Md.

Usman Ahmed



BUSINESS ETHICS IN
PRICING
ADVERTISING
PRODUCT PROMOTION
WORKING CONDITIONS
CONSUMER SERVICE
DOWNSIZING WORKFORCE
ENVIRONMENTAL POLLUTION
SUPPLIER RELATIONS





ETHICS IN PRICING
The price of a product or service plays a large part in how well it sells. Producers and retailers practice
ethical pricing strategies to earn profits without defrauding competitors or consumers. Despite that,
competitor's prices, convenience, availability and other factors affect consumer impressions of fair
pricing. Business laws protect competitors and consumers from many unethical pricing strategies that
unscrupulous marketers may wish to attempt. There is a general consensus that marketing strategies
must not infringe on values like honesty, transparency, and autonomy. As such, the main crux of pricing
ethics concerns the establishment of a balance of power (through information) between the producer
and the consumer. In a completely free market, producers often have the upper hand because they are
in control of their products and processes. This potentially lead to unethical practices (using cheap or
harmful materials, lying about benefits, etc.), which are deemed harmful for society as a whole.
UNETHICAL PRICING PRACTICES:
1. Price fixing: Collusion at its worse
Price fixing involves the an agreement between a group of people on the same side of a market to
buy or sell a good or service at a fixed price. Typically, competition between these participants
for consumers drives down prices for goods. Yet, imagine a world where every ice cream shop in
America vowed that all single scoops were now $15. Consumers would lost out, because wed
find alternatives or shell out an exorbitant amount of cash, as we couldnt go to another
neighborhood joint to battle the high prices/low quality offering of another.
2. Bid rigging: Favoritism
This ones more for the proposal crows, but bid rigging involves promising a commercial
contract to one group, even though you make it look like multiple parties had the opportunity to
submit a bid. Not only is this a moral no no, but its also one of the few the government follows
up on, especially within their own ranks, because of the number of bids and contracts the
government deals with on a yearly bases. This practice hurts consumers considerably, because
the best producer doesnt receive the work necessarily. There are many variations of this offense,
and all include some pre-determined agreements between corporations involved in securing a
contract. Considered a form of collusion, big rigging is illegal under the Sherman Act, our
government's rockstar market regulator.
3. Price discrimination: Anti-favoritism
Price discrimination is the strategy of selling the same product at different prices to different
groups of consumers, usually based on the maximum they are willing to pay. The practice also
surfaces in hiding lower priced items from customers who have a higher willingness to pay. This
one is a little tricky, because it is socially accepted in some cases, yet rejected in others. For
example, very few people would complain that the 80 year old man and his 2 year old great-
granddaughter pay $10 less to enter the carnival. Yet, only showing the more expensive hotels to
more affluent customers caused an enormous amount of PR backlash for travel site Orbitz.
4. Price skimming: Discriminating through time
Once again, another shady area. Price skimming is when the price for a product is first sold at a
very high price and then gradually lowered. The goal here is pretty obvious, producers want to
capture each step on the demand curve; consumers who are willing to pay more buy the product
first, and then a new groups purchases are triggered with each decrease in price.

This strategy is most commonly seen in the tech industry, as some consumers are willing to pay a
premium price for the newest gadgets. Apple is a prime example, as prices drop within months of
a release and new iterations happen within six to 12 months. Like price discrimination, this
practice isnt illegal, but if too obvious and not tested enough, it can trigger an unfortunate PR
backlash. Apple received a lot of flack for cutting their production cycle on the latest iPad,
instantly lowering the prices of the older models.
5. Supra competitive pricing: Monopoly gouging
Sometimes the value that consumers place on a good is much greater than the cost of producing
that good. In such cases, there is controversy about whether the corporation is justified in
charging a much higher price and matches the perceived value. This situation can take place
during a shortage, such as the price of food or fresh water after a hurricane, or when a certain
product is the only one of its kind available. Pharmaceuticals and the patents that surround them
are a great example.
Producers in these instances can charge an exorbitant amount of money, but should they? I think
wed agree that setting skyrocketing prices for food or generators following a hurricanse is
wrong (and some states have laws against it), but most software costs are relatively cheap
compared to the value provided to a customer. Very different contexts, but more generally, some
consider taking advantage of consumers' needs unethical, while others feel like it's an inevitable
result of a free market and a just reward for innovation.
6.Price Cutting
At times firms cut prices to sell off outdated stock or to make way for a new line of products.
Some vendors set prices very low for new products to introduce them to the market and inspire
customers to try them. These are both legal and ethical pricing strategies. A company uses
unethical pricing cuts to squash the sales of competitors by selling the same products for lower
prices. Federal laws protect competitors from undercutting.

ETHICS INADVERTISING
The advertising industry operates within strict federal regulations and is monitored by the Federal Trade
Commission. Even with truth-in-advertising laws in place, advertisers have significant leeway to violate
the ethical standards of a wide range of consumers. Advertisers have to be especially careful to act
ethically at all times, taking extra care when advertising to children, advertising potentially harmful
products and using psychological tactics to stimulate demand. Having a list of ethical and legal issues at
hand when creating advertisements can help you to craft legal, responsible ad messages.
UNETHICAL ADVERTISING PRACTICES:
1.Deceptive Advertising
Deceptive or false advertising is prohibited under Section 43(a) of the Lanham Act, which is
enforced by the Federal Trade Commission. Rooted in the principle that customers have a legal
right to know precisely what they are buying, the Lanham Act establishes clear rules for false or
deceptive advertising. Most states also regulate advertising through state consumer fraud and
deceptive practice laws. Thus, there is no shortage of information on false or deceptive
advertising as forbidden by federal and state statutes. Moreover, there is no excuse for small-
business owners not to keep their advertising lawful.
2.Unethical but Lawful Advertising
Unethical but lawful advertising is beyond the reach of law enforcement. It is more a matter of
self-regulation. Ethical advertising is informed by an intuitive knowledge of right and wrong,
commonly accepted as being innate to human nature. Consequently, self-regulation must be
guided by an inherent respect for the dignity of other people. Where self-regulation fails, the
community is empowered to enforce its norms for ethical advertising through patronage denial.
One disgruntled consumer with access to the internet and social media can cause unwanted
financial penalties to an advertiser that violates the community's ethical standards.

3.Truth in Advertising
The Federal Trade Commission Act set forth requirements for truth in advertising and created the
FTC to enforce the provisions of the act. The Bureau of Consumer Protection's Business Bureau
notes that advertisements in the U.S. must by truthful, not deceptive and not unfair. Advertisers
must also have evidence available to back up claims they make.
The FTC defines deceitful statements as those that are likely to mislead consumers who act
reasonably under normal circumstances and that are likely to affect consumers' purchase
decisions. The FTC defines unfair advertisements as those that are likely to cause substantial,
unavoidable injury when using a product, unless the injury is outweighed by the provable
benefits.
4.Advertising to Children
Although the FTC places special emphasis on truth-in-advertising laws when applied to children,
the law allows for a great deal of unethical behavior here. Former FTC commissioner Roscoe B.
Starek states that children are not likely to understand exaggerated statements or images, citing
the example that children may believe a toy helicopter to come fully assembled when in fact
assembly is required.
This interpretation of the law completely ignores the unethical ramifications of purely legal
advertising, such as building brand loyalty in children before they even understand what a brand
is, encouraging children to develop negative self images or getting children hooked on products
that can impede social development. The best way to act ethically in this area is to advertise to
parents, not children.
5.Advertising Harmful Products
Different countries look differently on the advertising of vice products and services, striking a
balance between placing personal responsibility on citizens and regulating what citizens are
allowed to indulge in. The United States highly regulates some forms of vice, prohibits others
and gives still others a free hand. For example, cigarette advertising is only permitted on specific
media, excluding television and radio, while alcohol advertising is allowed on all media.
Companies have to take a good look at the true nature of their product lines when deciding
whether they are acting ethically as advertisers. Television ads for fast food hamburgers are
completely legal and effective at building demand, for example, but doctors in the 21st century
are beginning to find links between fast food and a national obesity epidemic. Pharmaceutical
ads with lists of side effects, as another example, are often followed 10 years later by attorneys'
ads for class-action lawsuits against the companies for wrongful injury.
6.Advertising Tactics
Advertising tactics present additional ethical challenges. Advertisers have a range of less-than-
ethical yet legal tools at their disposal, including subliminal advertising, emotional appeals,
taking advantage of less educated individuals, spreading propaganda for political campaigns, and
other tactics ethical advertisers consistently refrain from using. At the end of the day, consumers
will be more attracted to companies that do not use underhanded, psychologically manipulative
tactics to gain their business.
ADVERTISING STANDARDS AND COUNCIL OF INDIA seeks to ensure that advertisement confirm to its
Code for Self-Regulation.
Advertisements need to be:
Truthful & Honest
Truthful, fair and non-derogatory to competitors. Advertisements should not be misleading and
plagiarized.

Non-Offensive to public
Within the bounds of generally accepted standards of public decency and propriety.

Against harmful products/unsafe situations
Not used indiscriminately for the promotion of products, hazardous or harmful to society or to
individuals particularly minors, to a degree unacceptable to society at large.

Fair in Competition
Ensure that Advertisements observe fair in competition so that the consumers need to be
informed on choices in the market place and the canons of generally accepted competitive
behavior in business are both served.








ETHICS IN PRODUCT PROMOTION
Business marketing often gets a bad rap and not without some legitimate cause. Some businesses still
use deceptive but legal promotional tactics to bring customers into the stores. Unethical promotions
hurt not only the businesses that employ them, but the image of business and marketing in general.
Promoting in an ethical way, on the other hand, helps a business to build trust as a brand and with
individual customers.
Legal
The Promotion Marketing Association makes compliance with local, state and federal laws the
first item in its code of ethics. Staying within legal boundaries, however, does not guarantee an
ethical promotion. Promotions that highlight the phrase half off, when the business actually
means buy one-get one half off, stay within legal boundaries, but customers often regard these
promotions as misleading. Businesses should probably regard legal compliance as the minimum
baseline, rather than the goal line, for ethical promotions.
Product Honesty
Every business wants to show its products or services in the best possible light, which leads to
highlighting benefits. For example, if a new kitchen appliance performs 15 separate functions,
the business can and should feature that information. If it takes five minutes to switch parts in
order to change functions, however, that information bears on consumer decision-making.
Withholding or disguising relevant information robs consumers of the ability to make informed
choices and ignores ethical best practices.
Originality
Some degree of imitation becomes inevitable in promotion. In some cases, though, promotional
materials bear such a close resemblance to another product or service that customers might
confuse one for the other. A burger joint might design its logo, for example, to closely resemble
that of Burger Kings. Doing so infringes on the intellectual property rights of Burger King
Corporation but also serves little purpose except to trick distracted drivers into stopping. Any
such purposeful imitation, which violates the legal rights of another business and deceives
customers, fails to provide a business with ethical promotion. Developing original promotional
materials, either in house or through a third party, helps you avoid both the ethical and legal
issue.
General Principles
All sales promotion activities should be legal, honorest and truthful.
All sales promotion activities must be created with responsibility towards the consumer
and society. They must be conducted decently and agreeably, and should be deemed fair
and honest to all consumers.
All sales promotion activities shall respect the rules of good ethics in business
competition.
Public Interest
Sales promotion activities shall not be created or conducted in a way that would
contradict the public interest or that could justly be considered socially undesirable
or offensive. They will not contain anything that could incite violent or anti-social
behavior, improperness, personal injury or material damage. Nor will they contain
anything that violates laws or prompts such violation, or undercuts what is imposed
by laws.
The organizers will not offer sales promotion products (advertising and gift items,
prizes, samples, etc.) the nature of which could cause offense or which are
considered socially unacceptable.
Consumer Protection
Sales promotion and related communications will neither abuse nor exploit consumer
trust, inexperience or lack of knowledge, nor will they misrepresent via equivocalities,
ambiguities, exaggerations or preteritions, etc.
The conditions for participation in sales promotion activities must be clear, full, and
easily comprehended by consumers. Provided the conditions or rules have a
consequences that some consumers can not participate with them or are faced
before requests that restrict their decision on participation, it is important to state
that in time and clearly so that such circumstances are known to consumers before
they bind themselves to anything.
Sales promotion activities shall be created and conducted in a way that respects
consumers rights to privacy and to protection from harassment. All relevant
aspects of the law on personal data protection, valid in the relevant country, must be
complied with. Consumers must be informed beforehand particularly when they
give consent to their participation being used for publicity or advertising, whether
in connection with the ongoing sales promotion or for other occasions.


Realization
Sales promotion activities shall be conducted using sufficient resources and under
attentive supervision.
The organizers should allow due time for each phase of the sales promotion, starting
with informing the sales network and distribution of goods to publicizing the rules
and collecting proof of participation to evaluating and announcing the results.
Sales promotion activities should not cause disappointment. It is the organizers job
to conduct qualified estimates of the probable response and to ask the producer to
prepare to satisfy it. Provided goods that were the subject of a special offer are
damaged or faulty, they must be replaced or the money returned without delay.
When a participant of a sales promotion activity does not obtain the thing that
he/she should according to the rules/conditions, the organizers should provide a
remedy, in as short as time as possible and without causing the participant any
additional expense.
Quality
The organizers shall take care to ensure that the sales promotion products (advertising and gift
items, prizes, samples, etc.) correspond to high safety, durability and practical use standards.
Children
Sales promotion activities aimed at children or designed to attract children shall be
created and realized in a way that does not cause physical, mental or moral injury to
children. They must not exploit childrens devotion, gullibility and inexperience.
Organizers shall devote special attention to safety guarantees in order to preclude the risk
of injury to consumers, particularly children.
Free Items
A free offer can be used only when the consumer covers only the regular rate of
postage, the regular rate for the actual weight or delivery, or the cost of his/her own travel
if he/she must retrieve the item in person. It must nevertheless be stated clearly
beforehand that these costs will be paid by the consumer. Additional payments, such as
those for packaging or processing, must not be demanded.
Offers to try out a product can not be labeled free if the consumer is expected to pay the
cost of returning the goods, unless that requirement was distinctly listed in the offer.
Provided the offer is placed directly on the product and repeated purchase is a condition
of the offered advantage, that condition must be clearly and distinctly presented. Provided
the offer contains two products and one of them is free, it must be obvious to the
consumer which of them he/she is paying for and which he/she is obtaining for free.
Provided unsolicited samples or gift items are distributed under the framework of sales
promotion, it must be obvious that the consumer will not be required to pay for them or
return them.
Prizes
Sales promotion activities with the offer of one or more prizes must be formulated
comprehensibly and must contain all the information that is relevant from the perspective
of the consumers interest. Provided it is necessary to refer contenders elsewhere for
other rules, they must be informed of how to familiarize themselves with them.
Organizers of this type of sales promotion shall ensure that the details of the winners of
the main prizestheir names (alternatively only surnames) and regionare published or
at least made available upon request. In so doing, the organizers must keep in mind the
risk of theft or harassment that could arise if providing the details would enable
identification of the addresses of winners of prizes with greater values. The prizes should
be delivered to the winners in a reasonable period of time.
Provided the selection of winners is the result of subjective judgment, an independent
judge or commission, with at least one member who is independent of the producers,
organizers and other collaborating partners, must be named.
The difference between a prize and a gift should always be evident to consumers, and the
likelihood of winning should not be exaggerated.
Links with Mass Media
Sales promotion activities linked with mass media, for example, the daily press, shall be
created and conducted in a manner that makes it easily distinguishable from
news/editorial materials.
Provided the need for repeated purchases of additional issues of some periodical arises
from the sales promotion concept, the accompanying communications must distinctly
point that out to consumers.
Links with Charity
In the event participation in sales promotion activities is meant to benefit a charity organization
or charity concern, the organizers must identify the organization or charity concern and state the
nature and intended value of the promised benefit, and they also must demonstrate that they are
doing so with the consent of the given charity organization or the initiators of the charity
concern. The organizers are required to publicize the current or final result upon request.

Targeting a Sales Network
Sales promotion activities and motivational programs can not be created and conducted with
consideration for the interests of only one group of involved parties. It must not lead to a conflict
between employees and their job responsibilities to their employers, nor jeopardize a
sellers responsibility to provide the consumers honest counsel.
ETHICS IN WORKING CONDITIONS
Business ethics is a particularly complex issue as ethical standards are different depending on
where you are. Corporate governance, bribery, corruption, working conditions and targeted
marketing are all issues that require organisations to establish an ethical standpoint from which
they can work on.There is an increasing emphasis on the corporate responsibility of large
organisations from developed nations and the way they operate in third world countries. Many
nations now impose their ethical standards on developing countries even though they themselves
have been guilty of arguably unethical practices in the past. For example, the poor working
conditions suffered in the third world were commonplace during the industrialisation of many
western economies.Some of the most common international ethical issues surround the
environment, child labour, working standards and conditions, targeting marketing to vulnerable
individuals and corruption.Unethical practices include not paying workers a fair wage,
employing children under the legal working age and unsafe or unsanitary working conditions.
Any practices that are not in compliance with fair labor standards and federal working guidelines
fall into this category.
Some of the Types of Unethical Practises Relating To Wages
and Working Conditions
1Child labor
Even today, millions of children in developing countries such as India, Indonesia, and Pakistan
are doing hard labor for miniscule payment. Nike and Reebok, as well as other major businesses,
have been accused of buying goods from subcontractors which we are produced by child labor.
Alongside of this, there have been strong allegations that China is using the free of price labors
of prisoners to produce exportable materials. It seems that businesses are sacrificing human
rights in order to cut costs.
2Exploitation of workers (by paying them low wages)
Paying extremely low amounts an hour is not far from slave labor, even if workers are happy
with their pay. People should be paid a fair wage based on the benefit you gain from them, not
what the fair wage is based on the standards in their economy.
If people work for you at pennies on the dollar, and you reap massive profits because of that in
other words, they do the work and you keep the money its simply not fair. Why should one
group do most of the work for enough money to survive, while another group becomes stinking
rich?
3Pressure Groups
Business acting irresponsibly
Businesses that use business practices they find unacceptable
Consumer action can also be positive supporting businesses with a strong ethical stance &
Businesses and industries increasingly find themselves facing external pressure to improve their
ethical track record. An interesting feature of the rise of consumer activism online has been
increased scrutiny of business activities.
Pressure groups are a good example of this. Pressure groups are external stakeholders they
Tend to focus on activities & ethical practice of multinationals or industries with ethical issues
Combine direct and indirect action can damage the target business or industry
Some examples of business-related pressure groups can be found from the following links:
Direct consumer action is another way in which business ethics can be challenged. Consumers
may take action against:
Businesses they consider to be unethical in some ways (e.g. animal furs)
record. A good example of this is Fair trade.
4.Choosing Morality versus Greed
Even though $300 USD a month may not seem like much to someone living in a developed
country, in Thailand, or Romania, the Philippines, or India, its above the average monthly wage.
Sometimes as much as three times the average wage in that country, meaning this person is
actually very well off when compared to others in their country.
That money affords the worker a quality lifestyle in their homeland. It may even provide enough
money for them to support their family, which no one is going to argue, is a bad thing. Throw in
a few bonuses, some extra incentives for good work, and you have a situation where you feel like
you are empowering someone and saving them from a situation where they might otherwise be
earning half that money doing something like washing dishes.
Solution to many international ethic practices lies in the development of international agreements
and code of ethics.
5.Employee Behavior
From large corporations to small businesses, individuals involved in all types of business often
face ethical issues stemming from employee behavior. For example, whether an employee can
spend work time checking personal email accounts, how a manager deals with claims of
harassment and to what extent a manager can "groom" a certain employee for a promotion are all
examples of ethical issues regarding employee behavior. There are legal consequences for some
unethical employee behavior. For example, if a supervisor discriminated against an employee
based on her gender, religion or ethnicity when making recommendations for a promotion, legal
action could be sought. Small business owners can help to prevent ethical problems stemming
from employee behavior by drafting a clear, attorney-reviewed set of standards that dictate
behavior policies for employees at all levels.
6.Supplier/Customer Relations
In addition employees and business owners must consider the ethical issues involved with their
relationships between suppliers and customers. Business owners in particular must consider
whether it is ethical to do business with suppliers who have unethical practices. When dealing
with customers or clients, business people must ensure that they use their information correctly,
do not falsely advertise a product or service, and do not intentionally do sub-standard work.

ETHICS IN CONSUMER SERVICE
Customer service is an important aspect of business development and continuous business
relationships. Ethics of customer service define the quality of the services received by customers, which
means a business owner has to concentrate on the behaviors and cultures that are cultivated among his
front-line customer service staff. In a broader view, even the executive management of companies is
involved in customer service, although in a passive mode. So customer service ethics are not confined by
designations of front-line staff of a business. Instead, they govern the overall image of the organization.
1.Communication
Customer service and communication are two entities that cannot exist on their own within a
business. In fact, customer service ethics mainly revolve around communication between the
customer service-staff of the organization and its customers. Telephone and email ethics play a
prominent role in portraying the image of a business in the minds of customers. Similarly,
customer service that is not confined by a code of ethics is merely useless to both the business as
well as the customers.
2.Management
The common perception is that a code of ethics for customer service operations is meant only for
front-line staff who deal directly with customers. While it's essential for every modern-day
business to have a code of ethics clearly written in hard copy, it's as important to make each and
every employee aware of the document, including executive and managerial staff members who
otherwise would be ignorant of such company code governing customer service.
3.Organizational Cultures
Cultures and habits involving employees are unique to each and every company. As such, the
attitude toward customer service may be affected by organizational cultures. Staff cultures,
however, are the spirit of the working environment of a business. So a unique culture does not
always have an adverse effect on customer service. On the contrary, it might help to improve the
existing code of conduct with regard to customer service or establish a better code.
4.Marketing
An ethical and professional approach to customer service alone can help an existing business
grow on its own. Because better customer service makes customers happy and gets them to talk
about the company and its products, word-of-mouth marketing is inevitable for a company that
follows a code of ethics in customer service.
5.Benefits
The immediate advantage of ethical customer service is happy customers, which means returning
customers, who then subconsciously are involved in marketing the company and/or products.
That ultimately results in an automated growth of the business. With customers expecting more
and more from businesses, it has become essential for companies to have outstanding customer
service ethics even to stand a chance of survival. So it's a matter of necessity and survival for a
business rather than a value-added service and benefits
6. Facts
Business ethics is the responsibility companies have to act responsibly in production, marketing,
sales and accounting. Companies often include honesty, integrity and transparency among the
most important ethical traits. Interacting with customers offers companies the opportunity to
advance these principles in the business environment.


7. Features
Acting ethically in regards to customer service includes answering all customer questions
honestly, carefully handling any safety or product-related issues, and honestly promoting the
company's values to consumers. Lying about business products or practices can lead to a
negative relationship with consumers.
8.Considerations
Because ethics can mean different things to different people, companies often create a standard
code of ethics for employees to follow. Business owners and managers use this code to promote
the actions deemed most important with customer relations. Ethical customer service can also
become a competitive advantage companies use to gain more market share than their
competitors.


ETHICS IN DOWNSIZING WORKFORCE
Downsizing refers to a company's decision to reduce its workforce for reasons other than poor
performance, criminal conduct, or unethical behavior on the part of those being let go. The word
is a euphemism meant to soften the blow as much for the company as it is for the soon-to-be
eliminated. There is nothing wrong with making a difficult task easier to bear. In fact, there are
good ethical reasons for doing so, as we'll soon see. Still, there is no getting around the fact that
downsizing is a type of layoff, with all that this implies. The ethical manager will keep in mind
what is really going when he or she is charged with letting good people go.
WHY DOWNSIZING IS AN ETHICAL ISSUE
Anytime we're faced with a decision that can affect the rights or well-being of others, we're
looking at an ethical issue. No matter how strong the justifications for reducing the workforce are
or seem to be, laying off loyal and productive employees is an upsetting experience for all
concerned, and those on the receiving end face not just financial but psychological injury.
How so? For many of us, the workplace isn't just a place for work; it's where we develop and
maintain some of the most important relationships we have. During the week, we spend more
time with co-workers than with our families, and for better or worse, work is how many of us
define ourselves and give meaning to our lives. Getting laid off compromises all of these things,
so managers should think of downsizing as a deep and painful trauma for those being let go, and
not as a mere setback or reversal of fortune.
Yes, downsizing has legal implications, and it is understandable that companies want to
minimize their liability when they downsize. Yes, there are economic matters to consider, which
makes downsizing a management issue, too. But at its core, downsizing is an ethical issue, and
the good manager is concerned not just with protecting the company's financial and legal
interests but also with honoring the dignity and integrity of the human beings who work on the
front lines and who are the lifeblood of the organization.
DOING IT THE RIGHT WAY
I propose the following management guidelines for downsizing ethically:
1. Do it in person.
This seems obvious thing to do, but I'm surprised by the number of reports I've heard about
employees who were downsized on the phone or by e-mail. Managers who use this method claim
it makes the whole thing easier to deal with. Yes, but for whom? Certainly not for the employee
being let go. As uncomfortable as it is to end someone's employment, the right thing to do is to
have a private conversation with him or her in person. The ethical principle of respect for others
(BusinessWeek.com, 1/31/07) requires nothing less.
2. Do it privately.
Respecting others means honoring their wishes and values, and it is reasonable to assume that
most people would prefer to have troubling news delivered in private. This means in your office,
with the door closed. I've heard of managers who broke the bad news at the employee's cubicle
within earshot of everyone in the vicinity. Again, one would think that this would be a matter of
common sense and common decency, but apparently neither is all that common.
3. Give the person your full attention.
Interrupting the conversation to take phone calls, check your BlackBerry, or engage in other
distractions isn't just rude, it tells the other person that the matter at hand isn't all that important
to you. That's yet another violation of the principle of respect. The impulse to turn your attention
to less troubling matters is understandable, but along with the privileges of being a manager
come responsibilities, and downsizing with integrity is one of the most important obligations you
have.
4. Be honest, but not brutally so.
Must you always tell the truth, the whole truth, and nothing but the truth? Yes, if you're giving
sworn testimony in a court of law, but beyond the courtroom the duty to tell the truth is
constrained by the duty to minimize harm. In practical terms, this means being forthright with
the employee but also choosing with the care the words, tone of voice, and demeanor you use.
Compassion (BusinessWeek.com, 2/22/07)literally, "suffering with" someonehonors the
dignity of your employee and speaks to the better part of your nature.
We can't always make things better (BusinessWeek, 1/18/07), but we shouldn't make things
worse.
5. Don't rush.
A shock takes time to absorb. Imagine that your physician says you have a serious illness.
Wouldn't you expect him or her to allow the news sink in, rather than to summarily dismiss you
and call for the next patient? Being let go isn't as serious as getting a diagnosis of cancer or heart
disease, but it is still a major, life-changing event. You owe your employee the space to absorb
the information, and you may have to explain more than once what is happening and why. You
would demand nothing less if it were happening to you, and you would be right to do so.
YOU VS. THE COMPANY
These guidelines assume that the organization has good reasons for downsizingbut what if you
don't see things this way? For example, suppose your company believes that it is necessary to
shift its customer service jobs overseas (BusinessWeek.com, 9/27/07), and you believe that
doing so is both unethical and bad for business. In this case, you not only have a right to object,
you have an ethical obligation to object.
Does this mean that you should be prepared to give up your job on moral grounds? Not
necessarily. Depending on your personal circumstances, your duties to your family or to yourself
might justifiably override the value of making a statement by quitting. Even if you are committed
to keeping as many jobs in the U.S. as possible, this goal will take time to achieve, and it may be
easier to do so from within the company than from the outside.
ETHICS IN ENVIRONMENTAL POLLUTION

Pollution is the most important and most concern today. The environment pollution becomes a
harmful level of pollutants in the natural resources air, water, and land (soil), which these three
natural resources is the main, causes the global warming.
Air pollution exists when a harmful amount of pollutants contains in air, such as dust, gases,
smog or fumes. The pollutants could be harmful to health of humans and animals, or which may
cause damage to plants (EPA Victoria, 2006). However, the existing issue of global warming is
main cause by greenhouse gases (air) with major content of carbon dioxide (Teller et al., 1997).
Water pollution main cause is runoff from agricultural fields and industrial sites, in which
pollutants from agricultural fields and industrial sites in-flood to rivers and ocean. Other than air
(oxygen) is main source for human survival; water was the second important source for human to
survive. Additionally, water from forest always provides higher quality water, with the lower
pollutants (Dudley and Stolton, 2003).
Environmental pollution also involves of land(soil) pollution which defined as a phenomenon
characterized by the loss of structural and biological properties by the soil layer as cause by
human and natural factors, such as strong wind, chemical use, and deforestation, in which land
and forest also is home for millions of creatures (EHow, no date).

The impact of pollution
Land Pollution
The human being uprooting the old growth in forest reserve have cause the incident of silting
creeks that feed into the river , in which the river was main water supply for residents living at
Cameron Highland .However, uprooting the old growth or deforestation the forest reserve will
impact landslides which will indirectly lead to rising temperatures as global warming .
Water Pollution
From the article, the incident of silting creeks that feed into the river was clearly showed that
land pollution will impact water pollution. Besides, the river was the main water supply for
residents staying at Cameron Highlands. As mention on introduction, if well managed the water
from forest, it will provides higher quality water with the less pollutants. Therefore, the
development project on the article not only impact on polluted the land (soil), its also polluted
the water from forest.
Many of the environmental issues we face today:
1. Pesticides often harm or kill fish and birds (394), and can cause illness in children (395).
Too much pesticide is dangerous to adults, so only safe levels are allowed keeping adults
in mind, but such levels are still probably too dangerous for children. A 2011 study by
UC Berkeley has shown that prenatal exposure of pesticides in pregnant women can also
lower the IQ of their children.
2. Air pollution contaminates the air, despoils vegetation and crops, corrodes construction
materials, and threatens our lives and health (ibid.). A 2011 study by the EPA claims that
the Clean Air Act saved over 160,000 lives in 2010, but many people still suffer illness
and die from air pollution and more lives can be saved by stricter standards. We generally
assume we get sick from allergies, bacteria, or viruses; but pollution is a very common
cause of illness as well.
3. The ozone layer was damaged from chloroflourocarbons (ibid.).
4. Carbon dioxide (and other greenhouse gasses) are causing global warming (ibid.)
5. Toxic chemicals in our environment cause many health issues (ibid.).
6. Nuclear power plants require minding, processing, and transporting of nuclear materials
that causes cancer in many people, and its unclear that our methods of disposing of
nuclear waste are entirely safe (ibid.).
Business and ecology
Businesses damage the environment when they take natural resources from the Earth and dispose
of waste. All of this is done within the natural environment, a kind of ecological system or
ecosystem. Ecology refers to the science of the interrelationships among organisms and their
environments. The operative term is interrelationships, implying that an interdependence exists
all entities in the environment (397). For example, a pond is an ecosystem that contains a large
number of living organisms that exist in a complex web of dependence and interdependence.
Many companies discharge waste into bodies of water, like ponds. Sometimes this is relatively
harmless to the ecosystem, but increasing the amount of waste could become too toxic for some
of the organisms. If the toxins kill certain plants in a pond, then many fish could die. This in turn
could frustrate fishermen who make a living by catching fish in the pond (397-398). All of the
damage done to the pond, fish, and fishermen are externalities or spillovercosts to third
parties. Business transactions arent always just transactions between two people during trade.
Sometimes other people and nonhuman animals are also harmed by business transactions.
Imagine that a company dumps twice as much pollution into a pond to save $9,000 a year, but it
kills the fish in the pond. The fishermen lose $10,000 a year from the pollution because their
primary source of income is lost. In that case the companys decision to dump more waste into
the pond actually causes more harm than good, and its unfair to save money to pollute when
other people have to pay for those savings.
Businesss traditional attitudes towards the environment
Businesses have traditionally shown egregious indifference towards the environment.
Environmental protection was rarely seen as an issue. A company would harm the environment
to whatever extent was profitable, and they often harmed the environment despite the fact that it
was unwarranted to do so. Shaw discusses the attitudes of businesses that lead to unwarranted
environmental damage. In particular, people saw the natural world as a free and unlimited
good (398). People at one point thought that the worlds resources could be taken without end
and without any morally significant harm done. Pollution could damage the environment, but the
damage done was considered to be insignificant because the world was seen as such a large
place.
However, resources arent unlimited and many people and animals are harmed from
environmental damage. In Garrett Hardins parable, The Tragedy of the Commons, he
describes the importance of the environment to human interests based on the fact that its limited
(399). He describes villages who share a pasture and let farm animals graze indiscriminately. The
meadow eventually loses all its grass and the villagers are left with a serious problem of having
no way to feed their animals.
Hardins parable is often relevant to real life issues, such as overfishing (ibid.). If the fish
population is depleted by fishermen, then the fishing industry will go out of business.
Pollution permits
Companies could be charged money to get a license or permit to pollute. This can be done in
different ways such as (ibid.):
a. Every company could buy permits to get the right to pollute.
b. There could be a limited number of permits auctioned off.
c. Every company could get a permit to have to right to pollute a certain amount, and they
could sell permits to other companies that need to pollute more than the amount allowed
from a single permit.
Permits have been successful in the past, but their success depends on certain criteria (ibid.).
First, the pollution should be easy to monitor. Second, the number of firms involved should be
manageable. Third, the environmental goals should be clear and widely accepted.
Economists tend to favor pricing mechanisms and pollution permits, but its not obvious that
those are the most moral solutions (ibid.). One, the pollution costs might be arbitrary. Two, areas
with strict environmental controls could put companies out of business or require the company to
relocate. Three, areas with strict environmental controls could give certain businesses an unfair
disadvantage. Four, these forms of pollution control legalize pollution and might imply that
polluting isnt immoraleven when the polluting is egregious and entirely unnecessary (408-
409).
ETHICS IN SUPPLIER RELATIONS
With a view of sustainable procurement, Supplier selection and management of business
relationships are all based on a range of objective criteria, including:
Respect of hygiene, health and safety rules
Technical and economic competitiveness, promotion of innovative approaches
Environmental and social commitments
Contractual commitments compliance
Non-discrimination and diversity promotion
The relationship with strategic, preferred or critical suppliers is monitored by means of specific
activity review and evaluation processes. In particular, the Group Procurement Division develops
a regular measurement of performance with preferred and strategic Suppliers, in a continuous
improvement approach on the basis of a lasting and mutually beneficial relation.
The supply Function develops and implements the necessary means to warrant correct treatment
of the transactions with Suppliers and ensures the output of relevant indicators.
Ethics in supplier relations
Our Group strives to act at all times and in all places in compliance with applicable regulations
and in accordance with the rules and principles of its Ethics Charter.
We have therefore published a guide to Ethics in supplier relations for the Procurement Function.
This guide is for use by all GDF SUEZ staff who may have relationships with Suppliers (buyers,
purchasers, prescribers, project managers, operatives, etc.).
It is based on seven key principles that must be strictly observed in our relationships with
Suppliers:
Adhering to external laws, regulations and standards, Group values and internal procedures
Acting fairly, transparently and impartially towards suppliers
Respecting mutual commitments and ensuring they are respected
Maintaining confidentiality of all communicated information
Making clear and ensuring adherence to the Groups commitments on ethics, sustainable
development and social responsibility
Prohibiting all conflicts of interest that could impair the objectivity and independence of
decisions
Reporting any situation in breach of these rules

This guide defines the rules by which our employees must behave in actual situations
encountered in practice in the procurement process to ensure the major principles are observed.