Business Ethics PDF

# Business Ethics ## Section I ### Introduction to Business Ethics: - **Definition**: - **Role in various types of business structures:** - **Why Are Ethics in Business Important?**: - Define responsibilities and obligations. - Structure of business ethics. ### Ethics in the Workplace: -...

# Business Ethics ## Section I ### Introduction to Business Ethics: - **Definition**: - **Role in various types of business structures:** - **Why Are Ethics in Business Important?**: - Define responsibilities and obligations. - Structure of business ethics. ### Ethics in the Workplace: - **Small Business Ethics:** - **Code of Conduct:** - **Code of Ethics:** - Corporate Responsibility - Case study ### Corporate Compliance: - Definition - Responsibility - Causant Regulations ## Section II 1. **Social Responsibility, Business Accountability, Ethical Envirinment**: 2. **Ethics' positive impact on Business**: - Employee rights - Productivity (legality, issues) 3. **International Business Ethics**: - Why is it necessary? - Integrity - Global Competition - Corporate Competition ## Section III 1. **Consumer Rights**: - Expectations vs. Reality - A bridge between business & society. 2. **Business Ethics and the Financial World**: - Various examples of Insider Trading. - Junk Bonds and Leveraged Buyout ## Answer the Following: 1. Why is the role of ethics in business important? 2. Discuss the need of Corporate Social Responsibility. 3. Write a short note on corporate integrity. 4. Discuss the rights of an employee. 5. How does the consumer right play a vital role to develop a healthy relationship between the corporate house and the society? ## Long Questions: 1. What are the major Codes of Conduct for business ethics? Explain. 2. Discuss the law and regulations related to corporate ethics. 3. What are the positive impacts of Corporate ethics on society?
 4. Discuss the Common features that Constitute a good ethical environment. 5. What is Environmental Ethics? Explain. 6. Various aspects of environmental ethics. 7. Why do organizations require business ethics? What is the importance of Corporate governance these days? ## Characteristics of Business Ethics: - Defines Code of Conduct - Portrets Social groups - Controls Business Malpractices - Related to Moral and Social values - It studies activities, decisions, and behavior which are related to human behavior. ## Need of Business Ethics: - Good Reputation - Better Service to Society - Ethical Decision Making - Long Term Sustainability of a Business. - Prevention of Fraud. ## Importance of Business Ethics: - Long Term Growth - Cost and Risk Reduction - Core Values - Leadership - Culture in the Company - Environment in the Country - Moral Values of a Person ## Types of Ethics: - Individual Ethics - Institutional Ethics - Social Ethics - Global Ethics ## Individual Ethics It includes practices in private and personal life of an individual according to the beliefs of an individual. Responsibility may change from one individual to another. Example - Not to tell lies, to keep one's word, try not to hurt others. ## Institutional Ethics It refers to the application of ethics in institutions such as hospitals, professional organizations and corporations. These institutions are regarded as moral agents with responsibilities and accountability. ## Social Ethics It is the systematic evaluation of Social Structures, Systems, Issues and Communities. Its duty is to make ethical decisions that positively impact society. ## Global Ethics It refers to a set of common values and standards which are shared by the different faith and culture on Earth. ## Principles of Businers ethics - Integrity - Honesty - Accountability - Respect - Law Compliance - Transparency - Trustworthiness - Diversity - Sustainability - Corporate citizenship ## Corporate Social Responsibility (CSR) It is a strategy undertaken by companies to not just grow profits but also to take an active and positive social role in the world around them. CSR also means to aiming for a positive societal impact. ## Professional Ethics It is a code of conduct of profession that governs how members of a profession deal with each other and third parties. ## Need/Purpose/Importance of CSR? - Being fair and honest. - Helping people and communities. - Taking care of the environment. - Listening and building a good reputation. - Keeping employees happy. ## Advantages of Corporate Social Responsibility: - Increased Customer Loyalty - Attracting Investors - Employee retention - Better financial performance. - Competitive advantages - Sustainability ## Concern Principles of Business Ethics: - **Standardization**: It means that all rules should be followed in the right way. - **Workable**: It laid-down rules and norms should be workable and show tangible benefits. - **Driven From Top**: Means top-level should take all relevant shares for business. ## Ethics in the workplace: Ethics at work are the moral principles to determine what actions are appropriate or inappropriate at work. ## Workplace Ethics: The set of principles, values, and standards of moral rules that both employees and employers follows in the workplace. It helps everyone to concern what is right and wrong so that a proper work can be performed. ## Importance and Advantage of Workplace ethics: - Teamwork - Decision Making - Productivity - Professionalism - Honesty - Integrity/Consistency ## Code of Conduct: It is the collection or set of principles, rules and policies about how employee can behave and cannot behave during working hours. ## Major Codes of Conduct in Business Ethics: - Provide excellent service to our customers. - Treat each other with respect. - Keep information private.. - Keep company property safe. - Respect law. - Keep your conflicts of interest in check. - Social participation. - Integrity of work. ## Code of Ethics: A set of rules and principles designed to encourage ethical conduct among a group of professionals. ## Code of Ethics: - Integrity: Maintaining honesty and transparency. - Teamwork: Working together to get the job done. ## Responsibilities Under Corporate Compliance: - Monitoring and auditing. - Centralized compliance management. - Corrective action. - Train employees. - Leadership. - Code of Conduct & Ethics. - Enforcement and Discipline. ## Advantages of Corporate Compliance: - To avoid legal penalties and fines. - Helps in the retention of employees. - A positive image of your business. - Building Strong Foundations. - Better Data Security and Privacy - Risk Management - Improved Operational Efficiency ## Objectivity: Don't make career decisions based on whom you like or dislike. ## Confidentiality Maintaining client's confidential information. ## Growth: Always pursue professional growth ## Corporate Compliance: It refers to the way businesses firms, companies, and organizations ensure that they are following all the rules, regulations, and policies that apply to their business in all aspects. It involves designing, implementing, and monitoring all practices, procedures, and training. Example: Code of conduct, corruption, information security. ## Corporate Responsibility Compliance: Involves making sure that your business is following the latest regulations and industry standards. ## Responsibilities under Corporate Compliances: - Monitoring and auditing. - Centralized Compliance Management. - Corrective Action. - Train Employees. - Leadership. - Code of Conduct & Ethics. - Enforcement and Discipline ## Advantages of Corporate Compliance: - To avoid Legal Penalties and Fines. - Help in the Retention of Employees. - A Positive Image of your Business. - Building Strong Foundations. - Better Data Security and Privacy. - Risk Management. - Increased Operational Efficiency. ## Corporate Governance: It is the system by which businesses are directed and controlled. Good corporate governance is a key factor in underpinning integrity and efficiency of a company. Poor corporate governance can weaken a company's financials, lead to financial difficulties, and in some cases, can cause long term damage to a company's reputation. ## Benefits of Corporate Governance * Better Decision-making * Enhances Sustainability * Strategic Planning * Higher Staff Retention * Improved Capital flow * Better management ## Major Key Points of Corporate Governance: - **Fairness**: Fairness refers to equal treatment, for ex: All shareholders should receive equal consideration. - **Accountability**: It refers the obligation and responsibility to give an explanation for the company's actions and conduct. - **Responsibility**: The BOD is given authority to act on behalf of the company. They have the responsibility to exercise the duties and are appointed as monitoring the performance of the company. - **Disclosure and Transparency**: It refers to willing to provide clear information to stakeholders and other parties. - **Disclosure of Materials**: Matters concerning the organization's performance and activities should be timely and accurate to ensure that all investors have access to clear financial, social data. ## Code of Conduct: It is a collection or set of principles, rules and policies about how employees can behave and cannot behave during working hours.