Engineering, Ethics and Management Lecture - PDF

ENGG. ECO& MANAGEMENT By Mohammad Nasir Khan Assistant Professor, MED 1–1  ETHICS Ethics: an individual’s personal beliefs about whether a behavior, action, or decision is right or wrong Ethical behavior: conforms to generally acce...

ENGG. ECO& MANAGEMENT By Mohammad Nasir Khan Assistant Professor, MED 1–1  ETHICS Ethics: an individual’s personal beliefs about whether a behavior, action, or decision is right or wrong Ethical behavior: conforms to generally accepted social norms. Unethical behavior: does not conform to generally accepted social norms. 1–2 ETHICS 1–3  CASE STUDY Amit is running an NGO to help poor children. He receives government grant of Rs.2 lakh rupees for a project to teach the “out of school” children, who work at tea-stalls, do boot- polishing etc. A year passes, but Amit managed to utilize only 50,000 rupees from the grant. Despite his best efforts, he couldn’t convince many poor children or their families to join his NGO’s program. As per the grant rules, Amit has to return all the unspent money back to government by the end of March 31st. But his colleague Rahul suggests following: 1–4  CASE STUDY 1.If we honestly return Rs.1.5 lakh back, then government officials will think we are amateur, ineffective NGOs and they’ll substantially reduce our grant for next year or even worse- they’ll not give us any project next time! 2.We should take help of CA Rahul to manipulate our account books and show majority of the grant was utilized for education. 3.Many other NGOs do the same thing- there is no problem – nobody will raise any objection, as long as we give 20% of the grant to SDM in charge of this project. 4.Although it sounds unethical but we won’t use this money for personal needs, we’ll use it on poor children only. Hence our act is fully ethical and moral. What should Amit do with the money? 1–5  CASE STUDY Amit is working as a clerk in Collector’s office. Due to staff shortage, Amit also performs the task of raising flag over the office building every morning and taking it down every evening, although it is not part of his official job description. One day a criminal turned politician Sachin dies. Years ago, Amit’s best friend was murdered during a riot allegedly orchestrated by Sachin. Nonetheless, State secretariat passes an order to all District collectors, to keep National flag at “half-mast” over their offices, to mourn the death of the Mr. Sachin. Amit sees this news on TV, gets angry with such mockery of our national flag. He decides not to go to office next morning and keeps the door key of rooftop with himself. He is confident, “no formal punishment can be given to me, because this was not part of my official duty. At most Collector sahib will reprimand me informally but I don’t care because Madan Sachin my best friend.” Do you think Amit has made the right decision? Yes/No/Why? 1–6  CASE STUDY Rahul runs a company that offers private security guards, CCTV, burglary alarm and other security devices. DCP Amit learns that every time after a theft or robbery takes place, Police Inspector Man Singh advices the victim and bystanders to install security devices from Rahul’s company to make their home and shops secure from criminals. Mr. Man Singh even tells them “When you go to Rahul’s office, tell him I’ve sent you, he’ll give you special discount. Amit confronts Mr. Man Singh about this matter. Man Singh justifies his action by saying: Yes, I take money for Rahul to endorse his security products for homes and offices. No, I’m not doing anything unethical because: 1. I use this money to pay my informers and keep a check on criminal elements. I don’t spent this money on myself or my family. 2. Even municipal buses and railway-wagons have advertisements, then why is an endorsement by a city official unethical or illegal? 3. Besides, Rahul’s security devices are very effective at preventing burglary. Should Amit permit Man Singh to continue 1–7this endorsement activity? Yes/No/Why? ORGANISATIONAL STAKEHOLDERS 1–8  ORGANISATIONAL STAKEHOLDERS Stakeholders are directly affected by the organization and have a stake in its performance These are people/organizations for whom an organization is responsible 1–9  MANAGERIAL ETHICS The three basic areas of concern for managerial ethics are the relationship of : The firm with the employee Employee to the firm Firm to other economic agents 1–10  HOW AN ORGANIZATION TREATS ITS EMPLOYEES Areas of managerial ethics include: Hiring Firing Wages Working conditions Employee privacy Employee respect 1–11  HOW EMPLOYEES TREAT THE ORGANIZATION Especially in regard to: Conflicts of interest Security Confidentiality Honesty Company policies guard against such violation 1–12  HOW ORGANIZATION TREAT OTHER ECONOMIC AGENTS Behaviors between the organization and other economic agents that may be subject to ethical ambiguity include: Advertising Promotions Financial disclosures Purchasing Shipping Bargaining Negotiation, and other business relationships. 1–13  ORGANIZATIONS AND SOCIAL RESPONSIBILITY Social Responsibility: Set of obligations an organization has to protect and enhance the societal context in which it functions 1–14 ORGANIZATIONS AND SOCIAL RESPONSIBILITY 1–15 ORGANIZATIONAL APPROACHES TO SOCIAL RESPONSIBILITY 1–16  ORGANIZATIONAL APPROACHES TO SOCIAL RESPONSIBILITY Obstructionist stance: An organization does as little as possible to solve social or environmental problems Starbucks closed 616 stores because they were not performing very well Tobacco companies like Philip Morris follow all rules in the domestic market, but use stronger marketing methods, the cigarettes higher levels of tar and nicotine and their packets carry few or no health warning labels in other countries 1–17  ORGANIZATIONAL APPROACHES TO SOCIAL RESPONSIBILITY Defensive stance: Organization does everything that is required of it legally but nothing more  Warning on cigarette packets 1–18  GOVERNMENT AND SOCIAL RESPONSIBILITY Direct regulation Through laws and rules that dictate what businesses can and cannot do in prescribed areas Indirect regulation: The government can indirectly influence the social responsibility of organizations through its tax codes. 1–19  HOW ORGANIZATIONS INFLUENCE GOVERNMENT Personal contacts: Political leaders and executives travel in the same circles and may be able to contact a politician directly Lobbying: Persons or groups to represent an organization formally Political action committees Created to solicit and distribute money to political candidates Favors: Organizations sometimes rely on favors and other influence tactics to gain support 1–20 HOW BUSINESS AND GOVERNMENT INFLUENCE EACH OTHER 1–21  MANAGING SOCIAL RESPONSIBILITY Legal compliance: Extent to which an organization complies with local, state, and international laws Ethical compliance: An organization and its members follow basic ethical (and legal) standards of behavior Philanthropic giving: Awarding of funds or gifts to charities or other social programs Whistle-Blowing: Disclosure by an employee of illegal or unethical conduct on the part of others within the organization.  Thanks Any Question Please