Presented by Jamvant

Shrenik Zaveri 60 Karan vala 57 Akash Rajpura 35 Chandresh Chavda 07 Ritesh Prajapati 34 Ravi Vaghela 56

What Is Business Ethics?

Business ethics involves applying general ethical

principles and standards to business behavior

Ethical principles in business are not different from

ethical principles in general

Business actions are judged
By general ethical standards of society

Not by a set of rules businesspeople

apply to their own conduct

BUSINESS ETHICS
Business ethics is mainly seen in 4 departments.

1. Finance 2. Marketing 3. Human resource management 4. production

Business ethics in Finance dept.

The finance dept. should consider the following measures. 1. Ban on insider trading, securities fraud, and foreign ex-change scams. 2. Clear reporting to share-holder, creative accounting and financial requirement. 3. Fair compensation to executives to top management.

Marketing dept.

Production dept.

Human Resource Dept.

Unethical business environments can: 1. Demotivate individuals 2. Make good employees leave the company 3. Attract unethical employees 4. Lead to the lack of trust by the employees for the company.

The Best H.R.D. (TATA GROUP)

Akash Rajpura

Are Ethical Standards Universal or Dependent on Local Norms?

Three schools of thought regarding extent

to which ethical standards can be applied . . .

Ethical Universalism

Ethical Relativism

Integrative Social Contracts Theory

Concept of Ethical Universalism

According to the school of ethical universalism . .

.
Same standards of what is ethical and what is unethical

resonate with peoples of most societies regardless of

Local traditions and

Cultural norms

Thus, common ethical standards can be used to judge

conduct of personnel at companies operating in a variety of

Country markets and
Cultural circumstances

Ex. Honesty, trustworthiness, respecting rights of others

Concept of Ethical Relativism

According to the school of ethical relativism . . .
Different societies/cultures/countries
Put more/less emphasis on some values than others Have different standards of right and wrong Have different social mores and behavioral norms

What is ethical or unethical

Must be judged in light of local

customs and social mores and

Can vary from one country to another

Ex. Whats right for my culture wont necessarily be whats right for your culture. McDonald's, which was accused of wrongfully selling its French fries as 100% vegetarian products when they contained beef flavoring.

Concept of Integrative Social Contracts Theory

According to the integrative social contracts

theory, the ethical standards a company should try to uphold are governed by both
A limited number of universal ethical principles that

are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and
The circumstances of local cultures, traditions, and

shared values that further prescribe what constitutes

Ethically permissible behavior and What does not

Ex. Giving bribe is common in India, but does this justify paying them ?

Three Categories of Management Morality

Moral manager
Managerial ethical and moral principles

Immoral manager

Amoral manager

Characteristics of a Moral Manager

Dedicated to high standards of ethical behavior in
Own actions How the companys business is to be conducted

Considers it important to
Be a steward of ethical behavior Demonstrate ethical leadership

Pursues business success

Within confines of both letter and spirit of laws

With a habit of operating well above what laws require

Ex. Ratan Tata, Ajit Premji

Characteristics of an Immoral Manager

Actively opposes ethical behavior in business

Willfully ignores ethical principles in making

decisions Views legal standards as barriers to overcome Pursues own self-interests Is an example of capitalistic greed Ignores interests of others Focuses only on bottom line making ones numbers Will trample on others to avoid being trampled upon Ex. Dhirubhai Ambani founder of Reliance group

Characteristics of an Intentionally Amoral Manager

Believes business and ethics should not

be mixed since different rules apply to

Business activities Other realms of life

Does not factor ethical considerations into

own actions since business activity lies outside sphere of moral judgment Views ethics as inappropriate for tough, competitive business world Concept of right and wrong is lawyer-driven (what can we get by with without running afoul of the law) Ex. MR.Ramalinga Raju founder of Satyam computers

Characteristics of an Unintentionally Amoral Manager

Is blind to or casual about ethics of

decision-making and business actions

Displays lack of concern regarding

whether ethics applies to company actions

Sees self as well-intentioned or personally ethical
Typical beliefs
Do what is necessary to comply with laws and

regulations
Government provides legal framework stating what

society will put up withif it is not illegal, it is allowed

Ritesh Prajapati

Do Company Strategies Need to Be Ethical?

Approaches of most company managers
Ensure a companys strategy is legal May or may not ensure all elements of strategies

are ethical
Approach of senior executives with strong

ethical convictions
Insist all aspects of strategy fall within ethical

boundaries
Approach of immoral or amoral senior

executives
Use shady strategies if they think they can

get by with it Use unethical or borderline business practices Hide ethically questionable actions

What Are the Drivers of Unethical Strategies and Business Behavior?

Large numbers of immoral and amoral business people
Overzealous pursuit of personal gain, wealth, and other selfish interests Heavy pressures on company managers to meet or beat earnings targets

Company cultures that place profits and good performance ahead of ethical behavior

Approaches to Managing a Companys Ethical Conduct

Unconcerned or non-issue approach

Damage control approach

Compliance approach Ethical culture approach

The Business Costs of Ethical Failures

Chandresh Chavda

CORPOTARE SOCIAL RESPOSIBILTY

 ACTING RESPONSIBLY TO

SATISFY SOCIETY
Social Responsibility Managements acceptance of the

obligation to consider profit, consumer satisfaction, and societal well-being of equal value in evaluating the firms performance. opportunities, and charitable contributions and service.

For example, contributions to the overall economy, job Measured through social audits

Responsibilities to the General Public

Public Health Issues What to do about inherently dangerous products such

as alcohol, tobacco, vaccines, and steroids. Ex. The major producer of cigarettes ITC Ltd. has also diversified in to agricultural product to help rural people of India. ITC E-Choupal invention
Recycling Reprocessing used materials

for reuse. Ex. Nokia has put drop box in each service center to drop old hone and recycle it

Responsibilities to the General Public

Protecting the Environment Using resources efficiently, minimizing

pollution. Ex. Surf excel tag line Do bucket pani ab rojana he bachana
Developing the Quality of the Workforce Enhancing quality of the

overall workforce through education and diversity initiatives.

Corporate Philanthropy Cash contributions, donations of equipment and

products, and supporting the volunteer efforts of company employees.

Ex. Waren Buffet and Biil Gates visited India recently for the same reason

Ravi

Responsibilities to Customers

Responsibilities to Customers
The Right to Be Safe Safe operation of products, avoiding product liability. The Right to Be Informed Avoiding false or misleading advertising and

providing effective customer service.

The Right to Choose Ability of consumers to choose the products and

services they want.

The Right to Be Heard Ability of consumers to express legitimate

complaints to the appropriate parties.

Responsibilities to Employees
Workplace Safety Monitored by Occupational Safety and Health Administration.

Quality-of-Life Issues Balancing work and family

through flexible work schedules, subsidized child care, and regulation such as the Family and Medical Leave Act of 1993.

Ensuring Equal Opportunity on the Job

Providing equal opportunities to all employees without discrimination; many aspects regulated by law.
Age Discrimination in Employment Act of 1968 protects workers age 40 or older.

Age Discrimination

Sexual Harassment and Sexism

Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender.

Responsibilities to Investors and the Financial Community

Obligation to make profits for shareholders.

Expectation of ethical and moral behavior. Investors protected by regulation by the

Securities and Exchange Commission and state regulations.

EXAMPLE.
1.WIPRO WAS INCORPORATED ON 1945.

2. WIPRO CAME UP WITH IPO IN FEB-MARCH 1946.

3. WIPRO HAD ISSUED 17000 SHARES WITH RS 100.EACH A HAS INVESTED RS. 10000 AND HOLDING 100 SHARES.

YEAR SHARES 1971 1980 1984 1986 1989 1992 1995 1998 1999 2004 2005 2010 TOTAL 100 133 266 533 5332 10,664 21,328 42,656 1,27,968 6,39,840 19,19,520 38,39,040 63,98,400

BONUS/SPI LT 1:3 1:1 1:1 100 TO 10 (S) 1:1 1:1 1:1 2:1 10 TO 2 (S) 2:1 1:1 2:3

TOTAL SHARES 133 266 533 5332 10,664 21,328 42,656 1,27,968 6,39,840 19,19,520 38,39,040 63,98,400

CONT..
So, Total Amount As On (29-09-11)

6398400 * 340 = its comes out to more then 2

billion rupees