Post on 07-Aug-2015
transcript
BUSINESS & ETHICS DO NOT GO TOGETHER
ETHICS:Moral principles that govern a person's behaviour or the conducting of an activity.
Ethics is knowing the difference between what you have a right to do and what is right to do.
FOUNDATIONS OF ETHICAL BEHAVIOUR
Treat others as you would be treated
Respect
Honesty
Trust
BUSINESS ETHICSBusiness ethics are moral principles that guide the way a business behaves. The same principles that determine an individual’s actions also apply to business.
Acting in an ethical way involves distinguishing between “right” and “wrong” and then making the “right” choice. It is relatively easy to identify unethical business practices.
For example, companies should not use child labour. They should not unlawfully use copyrighted materials and processes. They should not engage in bribery.
IMPORTANCE OF BUSINESS ETHICS
Employee commitmentInvestor and customer loyalty and confidenceLegal problems and penaltiesCustomer satisfactionAbility to build relationships with stakeholdersPerformance, revenue and profitsReputation and image
ETHICAL ISSUES RELATING TO BUSINESS
Honesty
Unfair competition
Just compensation
Respecting rights of others
AREAS OF RESPONSIBILITY
GENERAL PUBLIC• Public Health Issues. What to do about inherently dangerous products such as alcohol, tobacco, vaccines, and steroids.
• Protecting the Environment. Using resources efficiently, minimizing pollution.
• Recycling. Reprocessing used materials for reuse.
• 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.
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.
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.
Age Discrimination in Employment Act of 1968 protects workers age 40 or older.
Sexual Harassment and Sexism.
Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender.
INVESTORS
•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.
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
• Management’s consideration of profit, consumer satisfaction, and societal well-being of equal value in evaluating the firm’s performance.
• Contributions to the overall economy, job opportunities, and charitable contributions and service.
• Organizations measure through social audits.
UNETHICAL BEHAVIOURUnethical behaviour is an action that falls outside of what is considered morally right or proper for a person, a profession or an industry.
Individuals can behave unethically, as can businesses, professionals and politicians
COMMON CAUSES OF UNETHICAL BEHAVIOR
Pressure
Fear
Greed
Convenience
Following boss’s directives
Meeting overly aggressive business/financial objectives
Helping the organization survive
Meeting schedule pressures
Be a team player (group think)
Rationalizing that others do it
Resisting competitive threats
Advancing own career
COMMON MISCONDUCTS IN ORGANIZATIONS
Misrepresenting hours worked Employees lying to supervisors Management lying to employees, customers, vendors or the public
Misuse of organizational assets Lying on reports/falsifying records Sexual harassment Stealing/theft Accepting or giving bribes or kickbacks Withholding needed information from employees, customers, vendors or public
BUSINESS AND ETHICS CAN NOT GO TOGETHER
• Morals and values differ for an individual
• Ethics are often ignored at a work place
• In today’s situation with immense pressure and competition, business and ethics can’t go together
• Everyone wants to make quick money. In today’s market being ethical takes a toll on you.
• People judge you on how much money you have and not on the basis of your morality.
Non ethical business is the quickest way to earn profit
No reward for ethical conduct
The number of business houses that comply with ethics to determine their conduct are shrinking in number
CONSEQUENCES OF UNETHICAL BEHAVIOUR
Damaged relationship between management and employees
Lower employee performance and productivity
Incurrence of legal issues (e.g.: suits)
Lack of organisational credibility
WAYS TO PREVENT UNETHICAL BEHAVIOUR
Hire the right peopleHave regular checks and auditsProvides incentives for doing the right thing
Promote open and transparent business practices
Leadership must walk the talk
UNETHICAL PRACTICE FOLLOWED BY COCA-COLA IN
KALADERA VILLAGE, JAIPUR
YEAR 2008
KALA DERA - THIRSTING FROM COCA-COLA
Kala Dera is a large village outside the city of Jaipur.
Agriculture is the primary source of livelihood.
Coca-Cola started its bottling operations in Kala Dera in 2004, and within a year, the community started to notice a rapid decline in groundwater levels
Kala Dera lies in an overexploited groundwater area and access to water has been difficult.
Summers are particularly intense in the area, when water shortages are most acute.
Moreover summer months are also when Coca-Cola reaches its peak production.
Coca-Cola bottling plant in Kala Dera continued to extract the most water, making already existing water shortages even worse.
The conditional license granted by the local panchayat authorized the use of motorized pumps. But the company drilled more than six wells & illegally installed high-powered electric pumps to extract millions of litres of pure water.
The level of the water table fell from 45 to 150 meters below the surface.
COMMUNITY RESPONSE
The community in Kala Dera organized itself to challenge the Coca-Cola company for the worsening water conditions - through extraction and pollution - and demanded the closure of the Coca-Cola bottling plant.
Farmers of the region blame the drastic fall on the bottling plant set up by Hindustan Coca-Cola Beverage, which allegedly draws far more water than can be naturally recharged.
The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing local community opposition. They claimed to have conducted an environmental study and found the project safe to the village
COMPANY RESPONSE
GROUND WATER LEVEL : PUBLISHED BY CENTRAL GROUNDWATER BOARD
COCA-COLA'S RESPONSE - UNETHICAL AND DISHONEST
Coca-Cola took seven month to respond
Coca-Cola did not respond properly to the
concern raised
Unethical and dishonest campaign
Company chose to continue the operation
Continued in misery of thousand people
Coca-Cola was supposed to have conducted an
Environmental Impact assessment.
Coca-Cola, claims it recharges “at least nine times
more groundwater than it uses, thanks to the
rainwater harvesting potential created by the bottling
plant.”
According to Coca Cola, the decline in the
groundwater level is a regional problem and
attributing it to the plant will be unfair.
PRESENTED BY:
SIDDHARTH RANJAN
VIPLUV PATHAK
DIVYA BAWA &
MUSHARRAF FAROOQ