Business Ethics

IMP Questions Concepts

Ethics ,Normative Ethics, Applied Ethics, Morality, Legality, Business Ethics, Rights, Duties,
Corporate Code of Conduct, Egoism, Altruism, Artha ,Dharma, Kama, Moksha, Ethical Dilemma
,Environmental Ethics, Corporate Governance, Corporate Social Responsibilities, Triple Bottom
Line, Environmental ethics.
Questions
1. Explain Concept of Ethics? Explain its types.
2. What is Business Ethics? Explain Scope of Business Ethics.
3. What is Business Ethics? Explain importance of Business Ethics.
4. Explain concept of Morality & legality
5. Explain concept of Rights & Duties
6. What is Ethical Dilemma? Why it arises? How to solve ethical dilemma?
7. Write note on Egoism V/s Altruism
8. What is Corporate Code of Conduct? Explain its importance.
9. Explain Different theories of ethics.
10. What is Corporate Code of Conduct? Explain its importance.
11. Write note on Egoism V/s Altruism
12. Explain Role & Responsibilities of manager and Entrepreneur Towards Stakeholder
13. Write note on : profit making An objective with Ethical Dimension.
14. Write Note on : Indian Perspective of Ethics
15. Explain Ethics in Global Marketing & Advertising
16. Write note on Ethics in Employment
17. Write Note on ILO
18. Write note on Ethics in IT : E- Commerce & Privacy Codes
19. Explain Ethical Dilemma ? Why it arises ? How to solve Ethical Dilemma?
20. What is Environmental Ethics? Explain Environmental Issues in India.
21. Define Corporate Governance . Explain it features
22. Explain Objective/Scope of Corporate Governance
23. Explain Importance of corporate of corporate Governance.
24. Write note on Corporate Governance Reporting
25. Explain Role of CEO, Chairman & BOD in Corporate Governance.
26. Explain Rights of Investors & Shareholders
27. Write Note on Cadbury Committee report on Corporate Governance.
28. Write Note on Birla committee report on Corporate Governance.
29. Write Note on Narayan Murthy Committee report on Corporate Governance.
30. Explain meaning & Scope Of CSR
31. What is CSR? Explain its significance in Business.
32. Explain Corporate Social Responsibilities Towards Different Stakeholder/ Society.
33. Explain CSR Relating to Labour Relations
34. Explain CSR in relation to work Atmosphere
35. Explain CSR in relation to Exploitation ,atrocities & Harassment at work place.
36. Explain Role of NGO & International Agencies in Integrating CSR into Business
37. Explain CSR & Sustainable Development
38. Explain CSR & Triple Bottom Line
BUSINESS ETHICS
Q.1.Explain concept of Ethics, Normative ethics, Descriptive ethics, Applied ethics Ethics
The word "ethics" has been derived from the Greek word "ethos" which means conduct,
customs or character or accepted behaviour. Ethics according to the Greeks would mean a code
of conduct, the manner of customs and the characterization of a persons morals. It refers to
code of conduct that guides an individual while dealing with others. It would also mean in a
positive way the accepting of responsibilities. Ethics is a normative science. Ethics deals with
what is proper course of action for man. It means, laying down norms or standards of what is
good and what is bad. It specifies what we ought to do and what we ought not to do, in acertain
situation. Ethics means someone's principle which leads to good or bad future in the process of
any operation, personal or professional.
Types of Ethics
Ethics can be broadly divided into three categories, they are as follows:
(a)Normative Ethics
Normative Ethics which is also known as Prescriptive Ethics is concerned with the
principles by which we ought tolive. In simple words, a normative theory is specifically meant to
provide men with ethical guidance when they carryon their day to day business. Normative
Ethics is the study of principles, rules or theories that guide our actions and judgment,
determines what actually is morally right or wrong. The highest values by which moral
judgments are made are often referred to as norms, principles, ideals and standards. Ex.: It is
never alright to lie. This is the statement that doesnt say what people are actually doing. It
says what people ought to be doing. The Golden rule is an example of a normative principle.
e.g.- we should treat others the same way that we want others to treat us. Since I dont want
my colleague to cheat me, it is unethical on my part to cheat my colleague.-If I would like to
receive help from others in times of trouble, then I should help others when they are in trouble
(b)Descriptive Ethics.
Descriptive Ethics simply involves describing how people actually live and what moral standard
they claim to follow. Descriptive Ethics are not value judgments about what is right and wrong.
They are just observation about how people tend to behave and what ethics they tend to follow.
Descriptive Ethics is a process of understanding what people do or have believed about moral
norms. Ex.: Some people believe that it is alright to lie in certain circumstances. Here
descriptive Ethics dont judge whether or not it is alright to lie. They just say that some people
believe it is alright.
(c)Applied Ethics
It refers to implementing moral values or ethics in the different field of human lives. Applied
Ethics identifies morally correct course of an action in various fields of human lives. Applied
Ethics means making of moral judgment about actions and conditions. Ethics can be applied in
various fields like on animals, Business Ethics, Environmental Ethics, Social Ethics, Bio Ethics, etc.
Applied Ethics is certain branch of Ethics which consists of specific, controversial, moral issues
such as animal rights, environmental concerns, abortion and infanticide, homosexuality,
capital punishment and nuclear war.

Q.2.What is BUSINESS ETHICS? Explain Scope of Business Ethics.-
Business ethics means the attitude, culture and manner of doing business by the business
community.
-Business ethics refers to a code which businessmen are expected to follow while dealing with
others.
-Business ethics are those principles, policies or philosophies that are concerned with moral
judgment & goodconduct as theyare applicable to business situation.
-Business Ethics is a branch of ethics which prescribes standards of how the business is to be
carried out. It laysdown guidelines for the companys response and accountability to its various
stakeholders. It has to maintain a fine balance and take care of the interest of the shareholders
at one hand and other like the employees, suppliers,customers, and community at
large.Business Ethics will tell us what RIGHT is and what is JUST in a globalized world. Business
ethics means the scalewhere you measure the do's or don't for the purpose of the future of
business. Business ethics is a form of the art of applied ethics that examines ethical rules and
principles within a commercial context, the various moral or ethical problems that can arise in a
business setting and any special duties or obligations that apply to persons who areengaged in
commerce.
Scope for business ethics
The framework has to be outlined before the business activity starts.
Criminal behavior and legal framework every business needs to have a code of ethics
pertaining to criminal behavior and legal issues. The employees in a business need to be trained
sufficiently regarding legalities of the business and the consequences their actions would
have upon them and the business.
Human values and personal behavior every business needs to have an ethical framework or
policy for human values and behavior. Employees should be given training on how to interact
with different people, be it customer, suppliers or competitors. They need to be aware of how
they are expected to behave with people at different levels and that inappropriate behavior
will have consequences.
Corporate and business ethics though we are discussing business ethics, this strictly pertains
to the corporate ethics, ethical policies for business and actions that are going to be under check
and need to be in compliance with legal framework and standards.
Q.3 Explain Need and Importance of Business Ethics.
It is our means of deciding a course of action. Without it our actions would be random and
aimless.
Business Ethics is about standard of behavior in workplace, with partners, colleagues,
customers etc. Many companies have standard code of ethics which everyone in the
organization has to follow.
Customer will be satisfied only if the business follows all the business ethics
Business ethics is needed in order to make businessmen conscious as regards their duties and
responsibilities towards consumer and other social group.
Business ethics is needed to make business activities fair to consumers. It checks business
malpractices and offers protection to consumers.
Business ethics is needed in order to improve the confidence of consumers as regards quality,
price, reliability etc. of goods and services supplied.
Business ethics is needed for the protection of rights of consumers at the business level such as
right to health& safety, right to be informed, right to choose, right to be heard etc.
Business ethics is needed in order to protect the interest of all those concerned with business-
the employees, shareholders, dealers, and suppliers. It avoids their exploitation through unfair
trade practices.
Business ethics is needed in order to create good image of businessmen in the society and also
for avoiding public criticism. Ethical business gets public support while unethical business is
criticized by all.
Public will be ready to invest or lend money only if they are convinced that the organization is
following fair business practices.
Business ethics is needed in order to develop cordial and friendly relations between business
and society.
Organizations doing business ethically will continue to survive & prosper for the long time.
Ethics in business are important most of all because we pass them on to others. We have the
ability to show others the correct way to act and behave by remaining ethical in the way we live
Ethical Dilemma
There are situations when there is not simple choice between right or wrong. Dilemmas are
complex when managers have no clear guidelines either in law or in religion. Managers are infix,
predicament, mess, perplexity, difficulty. Choice one is faced is clearly of the right versus right
sort.
An ethical dilemma is a complex situation that will often involve an apparent mental
conflict between moral imperatives, in which to obey one would result in transgressing
another. In other words, ethical dilemmas are complex judgments on the balance between the
economic performance & social performance of an organisation. An ethical dilemma exists
when one is faced with having to make a choice among following alternatives
a) Significant value conflicts among differing interests,
b) Real alternatives that are equally justifiable, &
c) Significant consequences on stakeholders in the situation
Four common Ethical Dilemmas
Truth versus loyalty
Individual versus community
Short term versus long term
Justice versus mercy
Examples of Ethical Dilemmas Accounting:
Your supervisor enters your office and asks you for a check for $150.00 for expenses he tells you
he incurred entertaining a client last night. He submits receipts from a restaurant and lounge. At
lunch your supervisors girlfriend stops by to pick him up for lunch and you overhear her telling
the receptionist what a great time she had at dinner and dancing with your supervisor the night
before. What do you do?
Computers:
In your spare time at work, you have developed a new spreadsheet program on the personal
computer in your office. It is even more powerful, yet easier to sue than anything on the market.
You share your new program with a friend who encourages you to market it on your own
because you could probably make an incredible profit in a very short time. This is a very
attractive option, yet you developed it using company equipment and during time that you were
at work. What do you do?
Personnel:
Your company has a firm policy regarding cases of theft of company property. Used company
equipment is on a table to be sold by bid each month. You see a valued employee who is 2
months from retirement slip an electric drill from the table and put it in his car before the day of
the sale. What so you do?
Corporate Example
Ethical Dilemma at Coca-Cola
AN ASSESSMENT OF AN ETHICAL DILEMMA AT COCA-COLA RELATED TOEQUITY IN
RETIREMENT COMPENSATION
Is the Ethical Dilemma Facing the Coca-Cola Company Illegal?
The AFLCIO (2003b) describes a situation that is widespread among American
corporations wherein (a) retirement benefits for top executives are inequitable in comparison
with retirement benefits for rank and file employees and (b) excessive retirement benefits for
top executives have been de-linked from company performance. The AFLCIO (2003a) provided
specific evidence linked to selected major American corporations (of which Coca-Cola is one) of
the existence of such inequities.
In the case of Coca-Cola, the AFLCIO describes a situation in which corporate executives
at several levels of the organization receive generous retirement benefit packages, while
offering only limited (and partly self-funded) retirement plans for rank and file employees. The
company's own Proxy Statement for 2003 (Coca-Cola, Inc., 2003b) and Annual Report for 2002
(Coca-Cola, Inc., 2003a), however, provide details relevant to executive retirement
compensation and employee retirement savings plans that show that the inequities are greater
even that indicated in the AFLCIO (2003a) assessment.
While the company has an ethical dilemma relative to inequity in retirement compensation
benefits, there is little evidence to indicate that the company views the dilemma in an ethical
context. Rather, the company appears to view the dilemma in a legal context.
How to Resolve Ethical Dilemmas in Business
In the current era of ever-growing competition and limited financial resources, entrepreneurs
and business managers constantly encounter certain dilemmas related to business. Most of the
times, entrepreneurial managers tend to feign away from ethical issues while taking decisions
on dilemmas either due to ignorance or on purpose.
In todays business, the workforce comprises of people who are diverse in their nationality,
religion, caste, race, age, education and even socioeconomic status. They are all expected to
work together as a team towards the success of the organization. Dilemmas are bound to rise in
issues such as downsizing the staff, pollution control, toxic waste disposal, utilization of
resources, changes in law and technology, issues related to discrimination, employee rights and
even on product quality. All these issues are relatively complex and are difficult to resolve.
Entrepreneurial managers have to rely on their individual judgment while resolving all these
different dilemmas related to business.
However, before making any decision, one needs to be aware of the ethical issues concerned
with the business. There are two different ways of resolving ethical dilemmas in business. While
one approach concentrates on analyzing the practical consequences of the decision, another
approach concentrates on the action.
Ethical resolution of conflicts requires discussion, analysis, problem solving and decision making.
In order to resolve ethical dilemmas, managers need to have interpersonal communication and
negotiation skills, conflict resolution skills and critical thinking. Before making any decision, one
has to analyze all the positive and negative consequences that are connected with the issue.
Egoism Vs Altruism
Psychological egoism is another important perspective that is relevant to the study of business
ethics. Egoism is an ethical theory that treats self-interest as the foundation of morality. Egoism
contends that the is morally right if and only if it best promotes an agents (persons, groups or
organizations) long term interest. Egoists make use of their Self-interest as the measuring rod of
their actions. Decisions based on egoism mainly are indented to provide positive consequences
to a given partys interest without considering the consequences of other parties. All human
beings act solely out of their own self- interest. This is called as psychological egoism. Egoism is
often raised as a skeptical challenge to the legitimacy of business ethics. Constraining or
preventing selfish behavior of human beings in the name of ethics is a challenging task. Many
ethical theories take egoism as a major obstacle to overcome since ethics sometimes requires us
to limit our own self-interests. Ethics requires us to act out of a concern for others. This is called
altruism. Altruists are primarily concerned with other people. Altruists relinquish their own
personal interests for the good of others. The altruists moral authority and motivation is to
produce the greatest good for the largest number of people. Altruists would not diligently
calculate and measure cost and benefits. Altruists are akin to philanthropists.
Moral duty does arise where goods for others, which may or may not overlap goods for the self,
are concerned. Moral duty consists of respect for the autonomy of others, which means allowing
the free exercise of the innocent, competent will of others in regard to their own interests.
Allowing the free exercise means the use of neither fraud (deception) nor force (coercive
threat of violence or actual violence) against the will of other persons in the disposing of their
interests.
Innocent means that the other is not actually committing or effecting a wrong, whether or not
they intend wrong (although they actually are morally innocent if they do not intent wrong and
are not negligent). The intentional or negligent commission of a wrong entails loss of some
rights of autonomy and self-interest both in order to prevent the active commission of the
wrong and in order to extract retribution (through the loss of goods, proportional to the wrong)
as just punishment for wrongs committed.
Competent means mentally able to rationally evaluate and pursue ones own self-interest.
Incompetent persons do not lose rights of self-interest and only lose rights of autonomy in so far
as their self-interest can be better evaluated and pursued, in their behalf, by others.
Their own interests are self-defined in the areas or matters where, according to the types of
interests considered below, we have rights of possession, use, and exchange.
It has become common to say that people have rights wherever they they have interests, but
this principle does not allow for compensability, the possibility that the rights can all be
exercised at the same time, since many interests overlap and conflict. Such rights must
necessarily be abridged, a dangerous characteristic, since any rights can then be abridged for
any expedient reason. If not all interests are protected by rights, however, then rights can be
moral and legal claims that cannot be abridged.
The fallacy of altruism, : or altruistic moralism (or moralistic altruism), is the sense that there is
a general duty, or that morality as such requires us always, to act in the interest of others. On
the other hand, an altruistic moral aestheticism *or, simply, altruistic aestheticism) is not a
moral fallacy; for this only means that a person may act for the good of others if this seems
good, which is unobjectionable as long as the action respects the autonomy of others, i.e. is not
against their innocent and competent will. The asymmetry between egoistic and altruistic moral
aestheticism, that one is a fallacy and the other isnt, is due to the circumstance that morality
limits the pursuit of self-interest with respect for others. The removal of moral constraint in
aestheticism thus would be motivated for the self, which can then gain through wrong, but
would not be motivated for others, who were protected from wrongful loss.
Altruistic moralism is often a tempting doctrine because the rule for the specification of non-
contractual duties of commission appears to be complex. There will be such a duty on a person
only where:
The other is unable to help themselves, the other is in danger of serious and irreversible harm,
there is no one else present who has a more defined contractual obligation to help the other
(e.g. lifeguard, parent, physician, policeman, etc.) and who is able to do so, and a person is able
to act competently to prevent that harm without comparably endangering either themselves
personally or the interests of those who are contractually dependent upon the agent for support
(e.g. children or other family, etc.).
A person who does more than is required by these conditions, i.e. who acts even at the cost of
endangering themselves or damaging their own interests of comparable magnitude to those
originally endangered, acts with supererogation, i.e. beyond the requirements of moral duty.
Altruistic moralism denies supererogation. Since non-contractual duties of commission involve
judgments of incompetence or physical disability, altruistic moralism implies paternalism, i.e.
the judgment that the agent knows better the interests of others, and how to pursue them, than
they do themselves. Paternalism and altruistic moralism thus will lead to basic violations of
moral duty as the actual innocent and competent autonomous will of others may be abridged
by force. That is a general problem with any form of altruism, that the self-defining character of
what is good is transferred from the other to the altruistic agent, always raising the danger
that, another may be judged incompetent simply because, their judgment about what is good
for them may differ from the agents.
Ethics in information technology
The growth of the Internet, the ability to capture and store vast amounts of personal data, and
greater reliance on information systems in all aspects of life have increased the risk that
information technology will be used unethically. In the midst of the many IT break throughs in
recent years, the importance of ethics and human values has been under emphasized-with a
range of consequences. Here are some examples that raise public concern about the ethical use
of information technology:
Many employees have their email and Internet access monitored while at work, as employers
struggle to balance their need to manage important company assets and work time with
employees desire for privacy and self direction.
Millions of people have downloaded music and movies at no charge and in apparent violation
of copyright laws at tremendous expense to the owners of those copyrights.
Organizations contact millions of people worldwide through unsolicited email (spam) as an
extremely low-cost marketing approach.
Hackers break into databases of financial and retail institutions to steal customer information,
then use it to commit identity theftopening new accounts and charging purchases to
unsuspecting victims.
Students around the world have been caught downloading material from the Web and
plagiarizing content for their term papers.
Web sites plant cookies or spyware on visitors hard drives to track their online purchases and
activities.
This book is based on two fundamental tenets. First, the general public needs to develop a
better understanding of the critical importance of ethics as it applies to IT; currently, too much
emphasis is placed on technical issues. Unlike most conventional tools, IT has a profound effect
on society. IT professionals and users need to recognize this fact when they formulate policies
that will have legal ramifications and affect the well-being of millions of consumers.
The second tenet on which this book is based is that in the business world, important decisions
are too often left to the technical experts. General business managers must assume greater
responsibility for these decisions, but to do so they must be able to make broad-minded,
objective decisions based on technical savvy, business know-how, and a sense of ethics. They
must also try to create a working environment in which ethical dilemmas can be discussed
openly, objectively, and constructively.
Thus, the goals of this text are to educate people about the tremendous impact of ethical issues
in the successful and secure use of information technology; to motivate people to recognize
these issues when making business decisions; and to provide tools, approaches, and useful
insights for making ethical decisions.
Computer crime
Computer crime refers to any crime that involves a computer and a network.[1] The computer
may have been used in the commission of a crime, or it may be the target.[2] Net crime refers to
criminal exploitation of the Internet.[3] Debarati Halder and Dr. K. Jaishankar (2011) defines
Cybercrimes as: "Offences that are committed against individuals or groups of individuals with a
criminal motive to intentionally harm the reputation of the victim or cause physical or mental
harm to the victim directly or indirectly, using modern telecommunication networks such as
Internet (Chat rooms, emails, notice boards and groups) and mobile phones (SMS/MMS)".Such
crimes may threaten a nations security and financial health.*5+ Issues surrounding these types
of crimes have become high-profile, particularly those surrounding cracking, copyright
infringement, child pornography, and child grooming. There are also problems of privacy when
confidential information is lost or intercepted, lawfully or otherwise.
An Australian nationwide survey conducted in 2006 found that two in three convicted cyber-
criminals were between the ages of 15 and 26.
Internationally, both governmental and non-state actors engage in cybercrimes, including
espionage, financial theft, and other cross-border crimes. Activity crossing international borders
and involving the interests of at least one nation state is sometimes referred to as cyber
warfare. The international legal system is attempting to hold actors accountable for their
actions through the International Criminal Court.
Fraud
Computer fraud is any dishonest misrepresentation of fact intended to let another to do or
refrain from doing something which causes loss. In this context, the fraud will result in
obtaining a benefit by:
Altering in an unauthorized way. This requires little technical expertise and is not an
uncommon form of theft by employees altering the data before entry or entering false data,
or by entering unauthorized instructions or using unauthorized processes;
Altering, destroying, suppressing, or stealing output, usually to conceal unauthorized
transactions: this is difficult to detect;
Altering or deleting stored data;
Altering or misusing existing system tools or software packages, or altering or writing code
for fraudulent purposes.
Other forms of fraud may be facilitated using computer systems, including bank fraud,
identity theft, extortion, and theft of classified information.
A variety of Internet scams target direct to consumers