OBJECTIVES OF BUSINESS ETHICS
ï¶ Provide a comprehensive framework for ethical decision making
ï¶ Examine intensity of ethical issues
ï¶ To introduce organisational and individual factors into ethical decision making
ï¶ To improve ethical leadership
To provide leadership styles and habits that promote ethical cultureTo provide major contribution to society
To reduce mal practices
To improve ethical decision making
PURPOSE OF BUSINESS ETHICS
ï¶ Improves customer confidence
ï¶ It helps in survival of business
ï¶ Safeguarding the consumer rights
ï¶ Stop business malpractises
ï¶ Protecting employees and shareholders
ï¶ Develop good relations
ï¶ Create good image
ï¶ Smooth functioning of business
ï¶ Consume movement
ï¶ Consumer satisfaction
ï¶ Importance to labour
ï¶ Healthy competition
FACTORS INFLUENCING BUSINESS ETHICS
ï¶ Personal code of behaviour
ï¶ Company policy
ï¶ Ethical standards imposed on managers
ï¶ Ethical climate of the country
ï¶ Unhealthy competition
ï¶ Abnormal profit motive
ï¶ Political interference
ï¶ Political uncertainity
ï¶ Corruption
ï¶ Lack of education
ARGUMENTS FOR BUSINESS ETHICS
ï¶ Should be governed by all voluntary human activities
ï¶ Business as a cooperative activity needs ethical behaviour
ï¶ People involve in business need ethics
ARGUMENTS AGAINST BUSINESS ETHICS
ï¶ Purpose of profit
ï¶ Managers don't impose their own valves on business
ï¶ Managers should be single minded
ï¶ Employer need profit
ï¶ Problem to equalise both law and ethics
BASIS OF BUSINESS ETHICS
ï¶ Ethics in marketing
ï¶ Ethics in fulfillment
ï¶ Ethics in finance
ï¶ Ethics in human resource
ï¶ Ethics in production
CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of local community and society at large
BENEFITS OF CSR...
ï¶ Strengthened brand positioning.
ï¶ Enhanced corporate image.
ï¶ Increased ability to attract, motivate, and retain employees.
ï¶ Increased sales and market share.
ï¶ Increased appeal to investors and financial analysts.
DRIVERS OF CSR
ï¶ The shrinking role of government
ï¶ Demands for greater disclosure
ï¶ Growing investor pressure
ï¶ Competitive markets
ARGUMENTS IN FAVOUR OF CSR
ï¶ Business is a creation of society and therefore it should respond to the demand of society
ï¶ The self interest of business is best served by meeting the aspirations of society
ï¶ To improve the public image of business
ï¶ Its is a moral thing to do
ARGUMENTS AGAINST CSR
ï¶ Responsibility of government
ï¶ Conflicting considerations of private market mechanism and social responsibility
ï¶ Disregard of market mechanism
ï¶ Arbitrary power to businessman
CSR EXAMPLES
IBM UK - Reinventing Education Partnership programme Interactions and sharing of knowledge through a web-based technology - the "Learning Village" software. Culture of openness and sharing of good practice
AVON - a partnership with Breakthrough Breast Cancer, and its Breast Cancer Crusade has raised over 10 million pounds since its launch 12 years ago
TOI's Lead India campaign, campaign for contribution towards educating the poor
CRISIS MANAGEMENT
Cri sis management refers to the appilication of strategies considered to help an organisation agreement with a sudden and significant event
BEST PRACTICES OF CRISIS MANAGEMENT
ï¶ Planning in detail
ï¶ Establish monitoring systems and practices to detect early warning signals of an foreseeable crisis
ï¶ Establishing and training a crisis management team
ï¶ Involving as many stakeholders as possible in all planning and action stages
About Author / Additional Info:
RAGHU YADAGANTI-PES
