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8/8/2019 Ethical Dilemma in Business
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Ethical dilemma is a complex situation that involves an
apparent mental conflict between
one¶s personal and professional values
two values/ethical principles
two possible actions each with reasons strongly favorable and unfavorable two unsatisfactory alternatives
one¶s values/principles and one¶s perceived role
the need to act and the need to reflect
Ethics involves learning what is right or wrong, and then
doing the right thing Business ethics set the standard for how your business is
conducted.
They define the value system of how you operate in the
marketplace and within the business
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Ethical Code A set of principles governing morality andacceptable behavior. It covers
Personal Behavior when dealing with customers & clients
Corporate behavior when negotiating deals
Behavior towards society when recruiting
Behavior towards environment when deciding on process of production
Ethical Audit It is a process which measures the internaland external consistency of an organizations values base. Itis done in order
To check that ethical principles are being pursued
To check the extent to which actions are consistent with theorganizations stated ethical intentions
To establish action plans if they are not. 3
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It requires a trained sensitivity to ethical issues and a practicedmethod for exploring the ethical aspects of a decision and weighing
the considerations that should impact
It ensures that all companies not only meet but continue to performat the highest ethical level without leaving any room for laxity.
It ensures to promote an ethical conduct while penalizing thoseactions that are not in line with the rules.
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Utilitarianism: do what provides the most utility tothe group.
Duty Ethics: do your duty.
Rights Ethics: respect others moral rights.
Virtue Ethics: try to be a virtuous person.
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Building a new dam will cause dislocation of the localpopulation, but it will provide substantial benefits to society:
Drinking water
Water for crops
Flood control
Recreational boating
Variations of Utilitarianism
Act utilitarianism - Judge individual actions based on whether they
provide the most good in a given situation. Break rules if the actionsproduce the most good (A military officer may need to decide tosacrifice one life to save a thousand)
Rule utilitarianism - Moral rules are most important; e.g., do not
harm others, do not steal.
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Ethical actions are those actions that can bewritten as a list of duties; e.g.,
Be honest
Dont cause others to suffer
Treat others fairly
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People have fundamental rights, that others
have a duty to respect.
Example. There are 6 fundamental rightsthat are observed by the constitution of
India
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Virtue ethics addresses
determining what kind of people we should be.
Virtue is moral distinctionand goodness.
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Example 1. A chemical plant near a city
discharges a hazardous waste into theground water. The city takes its water fromnearby wells.
Rights Ethics: Pollution is unethical, since it
harms city residents.
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Example 1. A chemical plant near a city
discharges a hazardous waste into the
ground water. The city takes its water fromnearby wells.
Virtue Ethics: The plant manager is notdemonstrating loyalty to the community.
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Exampl . c ical la t ar a cityisc ar s a azar s ast i t t
r at r. T city tak s its at r frar y lls.
Utilitarianism. c ic fits f tla t ar t i y t ativ ff ctsf ll ti a saf ty vi lati s.
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Ethical consumerism is the intentional purchase of products andservices that the customer considers to be made ethically.
The rise in ethical consumerism and green brands that identifythemselves as ethical, has led to a rise in ethic-based decisions in
the mass market.
Alternative terms for the same are ethical consumption, ethical
purchasing, moral purchasing, ethical sourcing, ethicalshopping or green consumerism.
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An electric wire reel reusedlike a center table in a Riode Janeiro decoration fair.
When consumers chooseand reuse environmentallyfriendly material like this,
they are practicing ethicalconsumerism.
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Positive buying means favoring ethical products, be they fair trade, cruelty free,organic, recycled, re-used, or produced locally.
A number of standards and labels have been introduced to induce positive buyinglike equal exchange, product red.
The international symbol for recycling.
Along with disclosure of ingredients, some mandatory labeling of origins of clothingor food is required in all developed nations. This practice has been extended insome developing nations, e.g., where every item carries the name, phone numberand fax number of the factory where it was made so a buyer can inspect its conditions
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Conscious Consuming: is a social movement that based around increased
awareness of the impact of purchasing decisions on the environment and theconsumers health and life in general.
Alternative giving is a form of gift giving in which the giver makes
a donation to a charitable institution in the recipients name, rather than giving anitem.
Some charities promote alternative giving at weddings in place of weddingfavors normally providing several cards to be left on tables at the reception
letting guests know a donation has been made rather than individual cards foreach guest.
Pull apart is a curbside packaging recycling classification system used in
the UK which combines both environmental and consumer packaging surveys. It
encourages local people to buy products that are fully, and simple to curbsiderecyclable. 16
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Green websites:
A lot of organics is a portal of sites "bringing you organic food, fairtrade, vegan, special diets, ethical, eco-friendly and other organic
products allthingsgreen.net specializes in promoting ethical companies
that produce ecologically sound products.
BuyOrganics say they are "passionate about organic shopping
and specialize in bringing you the purest, toxin-
free, genuineorganic products on the market.
Econatural "an on-line store offering a wide range of natural,organic, eco-friendly and Fair Trade products for you, your family,your home and your workplace."
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General Stores:
EcoHip has a simple philosophy to offer the best naturalproducts around, so you can maintain a chemical-free home,
body and spirit. Nigel's Eco Store "sells eco friendly stuff" including towels made
from bamboo fiber.
Spirit of Nature sell natural and environmentally-friendly products
including baby stuff, organic clothes and cosmetics andhousehold goods.
Guide me green was created to provide a platform for 'green'businesses and brands to reach consumers who are increasinglybecoming ethically and environmentally conscious
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The term 'employee poaching' can be defined as an act of enticing key employees to move from one firm to a competitorin return for an appreciable raise in salary and/or allowances.
It has emerged as the biggest HR challenge for enterprises, bothbig and small, across all industry verticals.
Losing employees to competitors is common; but now manyindustries are increasingly finding their employees poached bytheir own vendors and distributorse.g.. "Poaching by vendors and distributors has becomerampant in the past two years. Of the 20 people we lost, 10were certified mid-level sales and technical executives, whilethe rest were from our telemarketing team," says CEO SanjaySrivastava.
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The problem all industries face is the lack of enoughqualified and skilled people not just from within their ownranks but also from outside.
They have recognised that in reality they are all competingfor a small pool of people and will end up drawing peopleaway from other member organisations.
Why Poaching takes place?
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Getting currently employed
Well Trained & high caliber employees.
Cost Saving
Strategic move for competitive edge
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Transfer of Trade secrets.
Money & time are lost-e.g.. if a senior manager in charge of a
particular tender quits at a critical time, you lose that tender and thiscould cost a couple of crores in revenues. Getting another employee
and training him can easily take 5-6 months.
Trust-trust between the vendor and partner that's the biggest
casualty
Competitive Strength
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Contractual agreements, either with the employee or
vendors or competitors, serve little purpose- We are here
to do business. Who has the time and money to fight
protracted legal cases with employees, competitors andvendors? Besides, you don't want to make enemies of your
vendors. The problem can only be tackled by collective
action.
E.g.. APPLE ,GOOGLE,ADOBE had entered into a anti
poaching agreement. Likewise there are many other
companies which enter into such contracts
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Ask 3 questions:
Utility
Rights Justice
Then follow these steps:
Analyze the consequences Analyze the actions
Make a decision
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solution can not be predicted
No software, mathematical solution or magicwand to solve them.
Think deep, well and take responsibility for
your actions.
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Thank You!!!
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