GOOD ETHICS MAKES GOOD BUSINESS

SUBMITTED BY NAME: ENROLLMENT No.: COURSE CODE: STUDY CENTRE: SESSION: Abhineet Bhardwaj 0911000929 PG Gurgaon 01 January 2009/ Sem-6

TABLE OF CONTENTS

WHAT ARE ETHICS? NATURE OF BUSINESS ETHICS DEFINITIONS FEATURES OF BUSINESS ETHICS NEED/OBJECTIVES OF BUSINESS ETHICS IMPORTANCE OF BUSINESS ETHICS GOOD ETHICS IS GOOD BUSINESS ETHICAL DILEMMAS o ETHICAL BUSINESS PRACTICES o UNETHICAL BUSINESS PRACTICES REASONS FOR THE PRESENCE OF UNETHICAL BUSINESS PRACTICES IN INDIA CORPORATE CULTURE & ETHICAL CLIMATE CAN ETHICS & BUSINESS CO-EXIST PRINCIPLES OF BUSINESS ETHICS POSITION OF BUSINESS ETHICS IN INDIA TATAS CODE OF CONDUCT GLAXOSMITHKLINES CODE OF CONDUCT MOTOROLAS CODE OF CONDUCT ROLE OF TRADE ASSOCIATIONS TRADE ASSOCIATION- FEI o ENFORCEMENT OF BUSINESS PRACTICES o DIFFICULTIES IN DECISION MAKING SUGGESTIONS FOR ETHICAL DECISION MAKING 10 PHASES IN ETHICS BIBLIOGRAPHY

WHAT ARE ETHICS?Ethics refers to a system of moral principles-a-sense of right and wrong and goodness and badness of actions and their motives and consequences. The term Ethics, refers to a code of conduct while dealing with others. It is a study of individual and collective moral awareness, judgment, character and conduct. It relates to the social rules and cardinal values that motivate people to be honest in dealing with others. Ethics directs human behaviour and differentiates between fair and unfair human behaviour or actions. It creates decency, decorum and discipline in the behaviour of individuals and also in the society. The Ethics is derived from the Greek word ethos which refers to the character. According to Webster dictionary ETHICAL means conforming to professional standard of conduct.Hurtly says, ethics can be defined as a system of moral values. It is concerned with that branch of philosophy which deals with values relating to human conduct/behaviour. The term ethics has wide scope and application. It is applicable to our economic, social, political and religious activities. Businessmen and business enterprises are expected to follow a fair and decent code of conduct while managing their business activities. They are free to make profit but not by exploiting consumers employees and the society at large. They should have fair deal with all social groups. They study of business ethics is essential in these days when the importance of ethical values is fast declining. Ethics is the conspicuous causality in the emerging business scenario. However, businessmen should be told that ethics and ethical business alone will help them to survive and more towards prosperity. They will have social respect, social recognition and consumer support only when they follow ethical principles in their business and that too without any compromise as ethics should never be compromised.

NATURE OF BUSINESS ETHICS:Business ethics refers to the system of moral principles applied to business activities. It deals with morality in the business. There should be ethics behind all business activities. This means the business activities should be conducted according to certain selfrecognized moral standards. The coverage of Business ethics is very wide as it deals with norms relating to customers, shareholders, employers, dealers, government and competitors. These are, in fact, the different areas of business ethics. Every professional has its own ethical standards i.e, rules of conduct and individuals conducting that activity are expected to follow such ethical standards honestly. In this sense, medical practitioners, lawyers, engineers, teachers, chartered accountants, etc, have ethical standards and concerned professionals are expected to follow them unscrupulously. The same is the case with businessmen and business enterprises. In fact, everyone needs some framework of values to guide personal behaviour. The dual source of ethical, social and political standards is both natural and necessary. The most important professional ethics is expressed by the Hippocratic Oath of the Greek physician: primum non nocere (Not knowingly do harm). These dictum suggest that a professional should evaluate his decisions and ensure that his decisions/actions will not produce harmful effects on others. A businessman, for example, should not use unfair trade practices as they are always harmful to customers.

Business ethics suggests certain golden rules which are fair to all and should be followed by businessmen. Business ethics is a part of social responsibility which the businessmen have to honour in practice. It is the application of ethical values to business. Business ethics from the Legal point of view If it is legal, it is ethical too is their approach. This is inadequate and even dangerous oversimplification of the concept of business ethics. Sometimes line of demarcation between ethical and unethical is very thin.

DEFINITIONS:According to Wheeler, Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as reorganizing the moral responsibility for the rightness or wrongness of business conduct

There are two theories when we talk about nature of ethics: The theory of moral unity essentially advocates the principles that business actions should be judged by the general ethical standards of society. There exists only one ethical standard which applies to business and to non-business situations. Second theory is the theory of amorality, which argues that business can be amoral, and the actions of businessmen need not be guided by general ethical standards. Managers may act

selfishly because the market mechanism distills their actions into benefits to shareholders and society at large.Adam Smith argued that the invisible hand of the market assures that by pursuing his own interest frequently promotes that of the society more effectively than when he really intends to promote it. In this way, capitalism provides moral justification for the pursuit of profit through behaviour which is not purposefully ethical.

FEATURES OF BUSINESS ETHICS:1.Refers to code of conduct. Business ethics is the code of conduct which businessmen should follow while conducting their normal business activities. 2.Based on moral and social values. Business ethics is based on well accepted moral and social values. It suggests moral principles/rules of conduct for businessmen. They include self-control, service to society, fair treatment to social groups and not to harm/exploit others. 3.Facilitates protection of social groups.

Business ethics gives protection to consumers and other social groups such as shareholders, employees and the society at large. Business should give priority to social interest or social good. Such ethical approach creates good name and status to business and facilitates its expansion. 4.Provides basic framework. Business ethics provides the framework within which business is to be conducted. It suggests a legal, social, moral, economic and cultural limit within business is to operate. It suggests what is good and what is bad in business. 5.Needs willing acceptance for enforcement. Business ethics cannot be enforced by law or by force. It must be accepted as self-discipline by businessmen. It should come from within. Businessmen should go for ethical trade practices on their own and not by force of law. 6.Education and guidance required for introduction. Businessmen should be given proper education, guidance and training in order to motivate to follow ethical business practices. Trade associations and chambers of commerce have to play a positive role in this regard. 7.Not against profit making. Business ethics is not against fair profit making. However, it is against profiteering by cheating and exploiting consumers, employees or investors. It supports expansion of business activities but by fair means and not through illegal activities activities or corrupt practices. 8.Acts as summum bonum of human life. Ethics, as a science seeks to determine the summum bonum of human life. It passes judgments of value upon human actions with references to the moral values. Judgments of value are judgments of what ought to be. Such judgments may be different from the judgments of facts as they are judgements of what is.

NEED/OBJECTIVES OF BUSINESS ETHICS:

It is a fact that many undesirable and unethical practices entered in the business field along with its growth and development. Market competition, large-scale production; lust for money and economic power are some major factors responsible for the downfall of the ethical values in Business. Conduct of business activities on unethical principles is harmful to the society and also to the businessmen in the long run. Ethical principles and values should so be introduced in the business. The following points justify the need of business ethics. 1.Checking business malpractices: Business ethics is needed to make business activities fair to consumers. It checks business malpractices and offers protection to consumers. 2.Improving consumer confidence: Business ethics is needed in order to improve the confidence of consumers as regards quality, price, reliability, etc. of goods and services. 3.Making businessmen conscious of social responsibilities: Business ethics is needed in order to make businessmen conscious as regards their duties and responsibilities towards consumers and other social groups. The old fashioned slogan that, the business of business is business is no more valid. Businessmen have to accept certain social responsibilities for their benefit and also for the welfare of the society. 4.Safeguarding consumer rights and social welfare: Business ethics is needed for the protection of rights of consumers at the business level. It is also needed for raising social welfare. 5.Protecting other social groups: Business ethics is needed in order to protect the interests of all those concerned with business the employees, shareholders, dealers and suppliers. It avoids their exploitation through unfair trade practices. 6.Developing cordial relations between business and society:

Business ethics is needed in order to develop cordial and friendly relations between business and society. It is also needed for social regulation and support to business. 7.Creating good image of business: Business ethics is needed in order to create good image of businessmen in the society and also for avoiding public criticized by all. The need for business ethics is felt more in recent years. This may be the net result of various factors. They include growing competition in business, growing alertness among consumers as regards their rights and growing awareness among employees, shareholders and the local community. People are not in a mood to tolerate unethical business. The oppose business malpractices and other anti-social policies of businessmen. Even the government will not allow unethical business practices. It may introduce new legal provisions for controlling unfair trade practices. In general, the socio-economics situation in India as well as in other countries is not favorable to unethical business. As a result, the importance of ethics in business is growing in recent years than ever before. Unfortunately, ethics (moral values) is the conspicuous casualty in the emerging business scenario. However, businessmen should be told that ethical and ethical business alone would help them to survive and move towards prosperity. They will have social respect, social recognition and consumer support only when they follow ethical principles in their business without any compromise. Ethics was an important aspect of business in the olden days. Its relevance is felt more now than ever before due to changes in the business environment. We are reaching to a stage of No ethics, No business. This suggests the growing need and importance of ethical business.

IMPORTANCE OF BUSINESS ETHICS:Business ethics is important as it has wider social significance. Society will get true benefits of business activities only when business is conducted by respecting ethical values. In addition, it is important as it offers the following advantage to the businessmen, consumers, and employees.

Advantages to businessmen/ managements/ business:1) Orderly functioning:Business ethics ensures orderly functioning of a business enterprise due to less public criticism.

2) Favorable social image:It creates good social image for business through alertness as regards social responsibilities.

3) Guidance to businessmen:Business ethics offers guidance to businessmen in decision making for social good and not simply for profit maximization.

4) Support from employees:Management gets support and cooperation from employees as regards future plans and programmes of the company.

5) Creates social consciousness:Due to business ethics, businessmen are made conscious as regards honesty and social obligations ion business. It will lead to high level of corporate governance. Respect to ethical values will create socially responsible business obligations.

6) Facilitates business expansion:Business ethics facilitates the expansion and growth of business activities due to the support and cooperation from different social groups.

7) Encourages fair business:Business ethics encourages businessmen to use fair business practices for the protection of consumers and the society. It is concerned with morality in business. Ethics is a system of moral values and ethics suggests the extent to which moral values are respected in the conduct of business activities. Businessmen should conduct business activities with selfcontrol. This is necessary for the protection of consumers and the society at large.

Advantages to consumers and the society at large:1) Consumer protection:Business ethics offers protection to consumers through the use of fair business practices by businessmen.

2) Protection of consumer rights:Due to business ethics, the rights of consumers are honored and protected. This avoids their exploitation and ensures their safety and welfare. 3) Pro-consumer business: Due to business ethics, business activities become proconsumer friendly and this gives satisfaction and pleasure to consumers. 4) Control of business malpractices: Due to business ethics, consumers do not suffer as a result of business malpractices, which are dangerous and troublesome to consumers. 5) Protection to environment: Due to business ethics, pollution will be avoided or at least minimized. Businessmen can make positive contribution in maintaining ecological balance by respecting laws made for pollution control and ecological balance.

Advantages to employees/workers:1) Fair deals: Employees get justice and fair deal when ethical rules and standards are followed while dealing with them. 2) Fair wages: Employees get fair wages and other monetary and nonmonetary benefits, their exploitation is also avoided. 3) Fair treatment:

Employees are treated with dignity and this raises their moral and mental satisfaction. 4) Benefit of profit sharing: Employees get a share of profits of the company in the form of bonus/ profit sharing or other special monetary benefit. Business ethics involves protection of consumers and other social groups, honor and respect to social responsibilities and conduct social relations for the growth of business. This will lead to more expansion and diversification of business activities. Reasonable profit is possible even when ethical practices are respected/honored by businessmen. It is rather unfortunate that in the present world, in the pursuit of economic objectives, moral and ethical scruples fall prey to neglect and finally decay. Moreover concern for such scruples is considered as pursuit of outdated values. Businessmen should decide what is good and what I bad and act accordingly. By following this rule, they can make their business ethical and also beneficial to them and also to the society at large. Business ethics is important as it offers long-term benefits. It is rightly said, Truth and Ethics are more important to build, business and development, than just profits and growth. Business ethics may not give quick profit or quick expansion of business. However, it creates good image of the business and facilitates its development over a long period. Ethical business creates favorable atmosphere for public confidence and government support.

Good Ethics Is Good BusinessThis quotation/slogan/observation suggests the importance of ethics in business. It provides protection, justice, and fair treatment to all social groups. In addition, ethical business gets social support and recognition. It facilitates business expansion and growth. Ethical business is equally profitable. Businessmen should therefore support the concept of business ethics. Business ethics is important to business community, consumers and the society at large. The most common belief that good ethics is good business is true. All (including businessmen) should support this common belief of wider social significance. Businessmen have economic power, which they can use for making the life of people happy or miserable. Businessmen should conduct business in a fair and ethical manner and make people happy. This is good business and good ethics. Businessmen may earn quick profits through unethical practices. Along with this, they may also invite consumer displeasure, government control and non-co-operation from the employees. These factors harm the future prospects of business. Business will not get support from the society when justice is not done to different social groups. It is rightly said that honesty is the best policy and also beneficial in the long run. The same rule is applicable to business. Businessmen should not be shortsighted. They should have vision and foresight. They should consider what is good to them and also to the society in the long run. Undue importance need not be given to profit-making in business even when reasonable profit is a must in business. At the same time, businessmen should treat business as a tool for social service. They should be fare to all social groups and offer them

benefits and happiness. Businessmen should conduct business with high ethical standard. Ethical values should not be discarded in any human activity and business is not an exception to this rule. Businessmen should not run after profit maximization at any cost. They should support ethical values while managing business activities. Such outlook is beneficial to them and also to the entire society and social system. One can support the slogan of Good business is good ethics with many examples of usual business activities. The slogan Good ethics is good business has special significance/relevance in India. Ethical business is useful to businessmen and also to the society. Businessmen should act as friends and well-wishers of consumers. This is possible when they avoid the exploitation of different social groups but offer protection and support to them. It is rather unfortunate in todays world; moral and ethical scruples fall prey to neglect and finally decay. It is always desirable to strike a balance between economic performance and social performance of a business unit. Business ethics facilitates such balance. Businessmen should decide what is socially good and what is socially undesirable and act accordingly. This will make their business ethical and also beneficial to them and to the society at large. Business also gets public support when it is conducted in a fair manner. In this regard, reference may be made to another slogan, which again indicates the importance of ethics in business. This slogan is: No Ethics, No Business. It suggests one eternal truth in regard to business. It is possible to expand business or earn profit far a short period through unethical business activities. In other words, consumers can be exploited or cheated by unfair trade practices for a short period but not permanently. In the long run, the survival, growth and popularity of business depend on the use of ethical business practices. A business enterprise may not be able to conduct over a long period if it fails to honor moral/ethical values. There are some principles of business ethics. Businessmen are expected to honor them honestly and on their own. Their long term survival and growth depend on their support to ethical values. They will be forced to stop their business if they failed to honor

business ethics in theory and also in practice. This means that unethical business has no chances of survival over a long period. In this sense, the slogan No Ethics, No Business is true and acts as a guideline to businessmen/business enterprise. It also indicates the importance of ethics in business.

Ethics is a leadership issue. Poor ethics can sap business production and long-term results. Here is a concise list of ethical behavior you can keep to guide you in your future dealings (or make a copy for your boss to do the same). My Ten Commandments of Ethical Business Behavior have their roots in "Ethics: Easier Said than done," by Michael Josephson. 1 Be honest: To be honest means to be truthful, sincere, forthright, straightforward, frank and candid. You should have zero personal tolerance for lying, stealing, cheating, deceiving or acting deviously. 2. Have integrity: Always be principled, honorable, upright and courageous, acting upon your convictions. Strive not to be unscrupulous or two-faced with a philosophy that the-end-justifiesthe-means. 3. Keep your word: Be worthy of others' trust by keeping promises, fulfilling commitments and abiding by the spirit as well as by the letter of an agreement. Shy away from the temptation to rationalize non-compliance or create an excuse to break a commitment on the basis of technical or legalistic interpretations of agreements.

4. Maintain fidelity: Be faithful to your employees, family, friends and country, and never disclose information earned in confidence. Scrupulously avoid undue influences and conflicts of interest lest they cloud your ability to make independent and impartial decisions. 5. Always be fair: Be open-minded, willing to admit errors and change positions. Demonstrate a commitment to justice, with equal treatment of all, and a tolerance for diversity. Never take undue advantage of another's mistakes or adversities. 6. Care for others: Be kind, sharing and compassionate; share, give of yourself and serve others. Help those in need and avoid actions that will bring harm to others. 7. Respect others: Demonstrate respect for human dignity, privacy and the right of self-determination of all people. Be courteous, prompt and decent. Provide others with information they need to make informed decisions and do not patronize, embarrass or demean. 8. Be a responsible citizen: Obey just laws (and protest unjust ones). Exercise democratic rights and privileges responsibly by participation, social consciousness and public service. When in a position of leadership, openly respect the democratic decisionmaking process, avoid unnecessary secrecy or concealment of information and ensure others have the information they need to make intelligent decisions and exercise their rights. 9. Rigorously pursue excellence: Pursue excellence in all you do. Be diligent, reliable, industrious and committed in meeting personal and professional responsibilities. Perform all tasks to the best of

your ability while developing and maintaining a high degree of competence. Be well informed and well prepared. Never be content with mediocrity, and never strive to win "at any cost." 10. Always be accountable: Being accountable means accepting responsibility for decisions and the foreseeable consequences of actions and inactions, and for setting an example for others. Employers, along with parents, teachers, professionals and public officials have a special obligation to lead by example and to safeguard and advance the integrity and reputation of their companies, families, professions and the government. Avoid even the appearance of impropriety and take whatever actions are necessary to correct or prevent inappropriate conduct by others. The consequences of lost ethics are summed up well in an ancient Chinese proverb, "He who sacrifices his conscience to ambition burns a picture to obtain the ashes."

ARE BUSINESSMEN ETHICAL?

Are our businessmen ethical? The answer (with honorable exceptions) is in the negative. As is too well known, most of our businessmen are lured by the fast-buck culture, i.e., to earn as much money and as fast as possible. Ends justify the means for our businessmen.

ETHICAL DILEMMAS:The ethical dilemmas stem from three sources are face-to-face ethics, corporate policy ethics and functional-area ethics.

Face-to- Face Ethics: These arise mainly because there isa human element in most business transactions. For example, a purchasing agent may develop personal relationship with the sales representatives who sell supplies to a company; they frequently know one another on a first-name basis, have lunch together and talk often on a phone. A companys best customers may be well known to people in the production department; it helps to ensure that the companys product fits the customer needs.

Corporate policy: Companies are often faced with ethicaldilemmas that affect their operations across all departments and divisions. Following conflicting situations are typical: Your R & D department has modernized one of your products. It is not really new and improved but you know

printing this statement on the package and using it in the advertisement will increase sales. What would you do? You are interviewing a former product manager who just left a competitors company. You are thinking of hiring him. He would be more than happy to tell you all the competitors plans for the coming years. What would do you? You have a chance to win big account that will mean a lot to you and our company. The purchasing agent hinted that he would be influenced by a gift. Your assistant recommends sending a fine colour television set to his home. What would you do?

Functional area ethics: They are likely to confront ethicalissues. Accounting is a critical function of any business. Managers, investors, regulating agencies, tax collectors and trade unions rely on accounting data to make key decisions. Honesty, integrity and accuracy are absolute requirements of the accounting functions. When they are followed, these standards ensure a high level of honest and ethical accounting disclosures. Rarely are they followed in practice.

Ethical business practices:Lying, stealing, deceiving and harming others are generally condemned as immoral and ethical, while honestly, keeping ones promises, helping others and respecting basic human rights are accepted as morally right and ethical. These ethical rules can be applied to business in order to decide which business practices are ethical or unethical. Business practices can be ethical or unethical. Business practices which are legally, morally and socially fair and consumer friendly and ethical practices. Such practices are proved to be beneficial to all social groups. E.g. to supply goods regularly, to give

return to shareholders, to utilize natural resources in best possible manner and to pay fair wages to employees etc .are the ethical practices, which a businessman should follow. They also facilitate the expansion of business activities. Consumers always support ethical business practices as they are for their own good so is it advisory for a businessman to follow ethical business practices.

Unethical business practices:Business practices, which are legally, socially and morally not fair, are termed as unethical business practices. They are basically used for profit maximization at the cost of exploitation of poor

consumers who feel that they are treated to ethical business practices. However, the consumer protection act, 1986 puts control on such practices. Businessmen should be aware of these unethical business practices as they can bring in bad name of the firm as well the entrepreneur. Consumers can oppose these practices individually and collectively. These unfair practices affect the consumers but also the employees, shareholders, government and the society at large. Their main purpose is to exploit the specific social group for profiteering. For example, artificial scarcity, price rise, adulteration and misleading advertising are unethical practices in the case of consumers while low wages, bad working conditions and absence of welfare facilities are unethical pratices in regard to employees. The usual unethical practices in India noted are as follows: 1) Giving false, confusing and misleading advertisements of the products and services. 2) Supplying inferior quality goods to consumers. 3)Disregard to labour laws and other rights of the employees including the right to from trade union and right to make strike. 4)Exploitation of child labour and women workers. 5)Charging high prices by creating artificial scarcity for profit maximization. 6)Supplying inadequate information on the packages. 7)Lack of safety measure to workers and not give them the benefits of permanent services. 8)Over invoicing. 9)Inadequate measures in regard to pollution control and violation of legal provisions relating to pollution control. 10) Paying low rate of dividend. 11) Formation of business combinations for avoiding competition and creating monopolies. 12) Creating inconveniences to local people due to growing industrial activities without due care to local community. 13) Avoiding payment of taxes as per existing laws. 14) Using unfair sales promotion techniques.

15) Giving bribes, gifts, donations, and payment of kickback money to politicians and government officers for certain benefits. 16) Misbranding, hoarding and black-marketing. 17) Disregard to business laws, government policies and misuse of facilities and incentives offered by the government. 18) Providing inefficient services to bank depositors/customers. 19) Misuse of funds and mismanagement of the company with which the shareholders are closely linked. 20) Paying low wages, providing inferior quality welfare facilities and indecent treatment to employees. 21) Adulteration and short weights and measures.

Reasons for the presence of unethical business practices in India:It is a fact that unethical business practices are reduced in western countries as the businessmen conducting their business over there have realized that profit can be made even without the consumers. But then too unethical practices are practiced on a large scale. Our businessmen feel that more than the normal profit can be achieved by exploiting the consumers. This is the main reason of the unethical practices being followed in India. The most important reasons for presence of such unethical practices is as follows: 1) Psychology of businessmen is favorable to unethical practices: The traditional approach to profit making had not changed that is profit can be earned more by exploiting the consumers. 2) Indian consumers are poor, illiterate and submissive:

The consumers in India are such in a bad condition that even if they are aware of unethical practices they do not take any action against it. This attitude of accepting injustice silently has also lead to unethical business practices. 3) Absence of well organized consumer movement at the national level: Absence of well-organized consumer movement at the national level is one more cause adding to the presence of unethical business practices. As the consumers do not have consumer education and guidance, they accept such unethical business practices.4)

The presence of unethical business practices is also due to ineffective laws for consumer protection in India. Many laws are made for consumer protection. However, they are not executed properly. Unethical business practices are used even when laws are against such practices.

There are many more causes responsible for the presence of unethical business practices in India, which include lack of education, training of businessmen, and limited interest of political parties in consumer protection and inadequate support of the government to consumer movement for its rapid growth. Unethical business practices are now reducing in India. This trend is going on in the right direction and also pro-consumer. Growing market competition, economic reforms, globalization, growing consumer awareness are the major causes due to which the intensity of unethical business practices is reducing in India.5)

CORPORATE CULTURE AND ETHICAL CLIMATE:Corporate culture is a blend of ideas, customs, traditional pratices, company values and shared meanings that help define normal behaviour for everyone who works in a company. Every organization has a culture and it exercises considerable influence on employee behaviour.In some companies, one can feel the blowing of ethical winds. People picks up subtle hints and clues that tell them what behaviour is approved and what are forbidden. This unarticulated under-standing among employees is called an ethical climate. There are three ethical yardsticks are egoism (selfcentredness), benevolence (concern for others), and principle (respect for ones integrity, for group norms, and societys laws). These ethical yardsticks can be applied to dilemmas concerning individuals, ones company or society at large. The Components of Ethical Climate:

Focus of Ethical Concern Ethical Criteria Individual Person Company Society

Egoism Self-interest Economic efficiency Benevolence Friendship Social responsibility Principle Personal Laws and Morality Professional codes

Company interest Team interest Company rules & procedures

CAN ETHICS AND BUSINESS CO EXIST?It is a basic issue which businessmen have to address to themselves. Many businessmen feel that business is for profit making and policies which give more profit are fair and ethical. They use all sorts of unethical practices and exploit social groups for profit maximization. This philosophy of separating business from ethics or arguing that business has nothing to do with ethical or moral values is highly objectionable and socially dangerous. It is harmful to business and the society as well .Moreover, society expects businessmen to act ethically. Business and ethics are closely related. They have to stay together and move together. Ethical/moral principles and values are universal and are applicable to all human activities. Business is not an exception to this rule. However all accepted ethical values (truth, fair treatment to others, not to cheat or exploit others or not

knowingly do harm others) are equally applicable to business. No one since early historical period has supported the view that business is not concerned with moral or ethical values. On the other hand, it is universally accepted that businessmen should be honest to all social groups. Business should be conducted with certain ethical values. Moreover, businessmen can earn adequate profits even by supporting / following ethical values. Thousands of e.g. can be given to prove that ethical business has wealth, social recognition and happy life to businessmen. It is not correct to say that profit can be earned only by using unethical practices. In short, ethics and business can stay together and move together. Peaceful co-existence of the two is easily possible if businessmen are honest, properly educated and socially conscious as regards their social obligations.

PRINCIPLES OF BUSINESS ETHICS:Principles of business ethics suggest the code of conduct for businessmen. They suggest how businessmen should conduct business activities for social good. Such principles are related to consumers, employees, investors, local community and the society as a whole. Important. principles of good business ethics (Code of Business Ethics) are as noted below: 1) Avoid exploitation of consumers: Do not cheat / exploit consumers through business malpractices such as artificial, price rise and adulteration. 2) Avoid profiteering: Do not resort to hoarding, black marketing, profiteering and sale of harmful goods. 3) Encourage healthy competition: Do not destroy healthy competition which offers certain benefits to consumers. Do not tarnish the image of competitors by unethical means. 4) Ensure accuracy: Ensure accuracy in weighing, packaging and quality while supplying goods to consumers. 5) Regular tax payment: Pay taxes and other charges to concerned authorities honestly and regularly. Avoid bribing officials and lobbying for favours. 6) Proper accounts keeping: Maintain accurate business records, accounts and make them available to all authorised persons and authorities. 7) Fair treatment to employees: Pay fair wages, provide facilities and incentives and also give human treatment to employees. 8) No bribe: Refrain from secret commissions, kickbacks/ payoffs to customers, suppliers, administrators and finally politicians. 9) Service before profit: Accept the principle of service first and profit next . Similarly, accept the eternal truth in business that the customer is the most important person in business and all business activities are for meeting his needs and also for raising his satisfaction and welfare. 10) Accept social responsibility: Honour responsibilities (in theory as well as in practice) towards different social groups on voluntary basis and not by force.

POSITION OF BUSINESS ETHICS IN INDIAThe following points indicate the position of business ethics in India: 1) Limited attention to business ethics: The concept of business ethics is universal and also applicable to Indian business community. In India, the principles of business ethics were incorporated in our ancient culture. However, at present, they are not given much importance and attention by the business community in general. We have a long history of unethical trade practices. Such unfair / unethical practices are followed by businessmen even at present and that too on a massive scale. 2) Unethical practices are used extensively: In India, the business community in general has failed to understand the importance of customers (i.e., society) in business. Businessmen use various unethical practices for exploiting / cheating consumers, employees, shareholders and others connected with the business directly or indirectly. 3) Businessmen are severely criticized due to their unethical practices: Businessmen give too much importance to profit making and desire to maximize profit even at the cost of consumers. In India, businessmen have to face severe public criticism and government controls due to their unethical practices. Businessmen have been accused of scandals, bribery, tax evasion, illegal payment to politicians and environmental pollution. Unfortunately, businessmen have limited respect in the society image by honoring business ethics. This situation also suggests the urgent need for the introduction of ethical standards in India business.

Socially conscious and progressive businessmen support ethical business: Many of our businessmen are lured by fast buck culture, i.e., to earn as much money and as fast as possible. However, there are some cultured businessmen who respect and follow business ethics with honesty. Tatas, Godrej, L&T are some companies which give protection to consumers, liberal wages and welfare facilities to employees , attractive dividend to shareholders , positive contribution to pollution control, ecological balance and community service activities. Some may not be able to follow business ethics due to reasons beyond their control. A businessman, for e.g., has to bribe someone in order to get the work done quickly even when he is not favorable to such bribe giving. His business may suffer if the matter is delayed due to non payment of such bribe. 5) Business environment in India is not favourable for business ethics: The importance of business ethics is now well accepted by the professional management in India. Progressive business enterprises in India do understand the importance of business ethics and try to follow ethical business practices. However, in general, the business environment in India is not favourable for business ethics. The business community also shows limited initiative in the introduction of ethical norms in their regular business activities. Even the role of trade associations and chambers of commerce in guiding businessmen in this regards is rather insignificant.4)

TATAS CODE OF CONDUCT:

For the Company the EmployeesTo supply goods and services of themselves professionally with The highest quality standards to honesty, integrity as well as Ensure the total satisfaction of ethical standards & to be fair & Customers. to be seen so by third parties.

For

*Conductprofessionalism, high moral & Transparent &

To engage only in activities benefit from any information Beneficial to the national interest or group which constitutes Of country they operate in. information.

*Not derive anyabout the company Inside

To be fully transparent in accounting management any actual or And financial reporting standards. of the code or an event that To fully strive for the establishment becomes aware of, that could And support of a competitive open business or reputation of employee Market economy and to abhor Tata company Unfair trade practices.

*Report to thePossible violation the employees affect the or any other

To neither give nor take any illegal employees to pursue an active role in Payment, remuneration, gift, donation affairs as long as it does not Or comparable benefit to obtain favours business or interests of the

*Permitscivic in political affect the

Or business. Company or the group. To comply with all regulations regarding The preservation of environment. To be good corporate citizen & to actively Assist in the improvement of the quality Of life of the community with the objectIve of making it self-reliant. These social Activities are regarded as an integral part Of their business plans & not as an optional Part. To co-operate & share physical, human & Management resources with other Tata Companies so long as this does not adversely Affect its business interests& shareholders Value.

practices

Tata Motors wins award for fair businessFebruary 11, 2004

Tata Motors has won the Jamnalal Bajaj Uchit Vyavahar Puraskar2003 for Fair Business Practices in the 'Manufacturer- Large' category, conferred by CFBP (Council for Fair Business Practices). The award was presented by the chief guest - Former Chief Justice of India, Mr. S. P. Bharucha at a ceremony held on February 7, 2004 at the Indian Merchants' Chamber, Mumbai. The award was received by Mr. P. P. Kadle, executive director, Finance and Corporate Affairs. Last year, Tata Motors received a merit certificate for being the runner-up.

GLAXO SMITHKLINES CODE OF CONDUCT

For the Company & Employees. GlaxoSmithKline is committed to sales and marketing activities that are ethical, responsible, principled and patient focused. Govern sales and marketing activities through company policy, on Pharmaceutical Marketing and Promotion Activity, and through industry and company marketing codes. GSK believes that it is important to work with governments to contribute to constructive debate on issues surrounding pharmaceuticals and healthcare. GSK have company wide auditing in place to fully investigate suspected breaches of company standards and take appropriate disciplinary action, including dismissal where appropriate. GSKs Code of Conduct and policies on Anti-Competitive Behaviour set out the standards of behaviour they expect from their employees and agents, thus helping to ensure that they

operate within the letter and spirit of the law and maintain high standards of ethical business behaviour. GSK has a specific policy on Prevention of Corruption which fully reflects major US and UK legislation on the subject. The policy does not contain any exception permitting facilitating payments, and there is a separate policy relating to political contributions or donations. GSK also recognizes the dangers regarding employees accepting inducements and there is a separate policy on Acceptance of Gifts or Entertainment by GSK employees. Their audit system enables them to identify and deal with breaches of company policy. They also operate confidential phone lines and an offsite PO Box address for employees to report unethical behaviour. Disciplinary action including dismissal is a potential consequence of any policy violation. Management Certification promotes awareness of GSKs ethical standards and the Code of Conduct. It emphasizes the importance of the Code to thousands of other GSK employees who, in the course of their daily activities, must comply with the law and company policies in the conduct of company transactions. GSK can make a valuable contribution to the debate on public policy issues relating to research and development, the use of pharmaceuticals and healthcare. They also comply with relevant industry codes of practice, such as the International Federation of Pharmaceutical Manufacturers Associations (IFPMA) Code of Pharmaceutical Marketing Practices and the PhRMA Code on Interactions with Healthcare Professionals. GSKs risk mapping process is used by business units and functions to document, manage and report on risks and mitigation plans. GlaxoSmithKline aims to produce safe and effective medicines and vaccines that benefit patients by addressing their unmet medical needs.

MOTOROLAS CODE OF MOTOROLA CONDUCT.For The Company & Employees :

o Motorola is committed to acting on them--through the potential of the technology and the way they conduct their business. o Motorola has established the Ethics Line for its employees, business partners and others to report any questions or concerns they may have about compliance with the Motorola Code of Business Conduct, or the laws, regulations or contract provisions that govern Motorola's business. o Times will change. Our products will change. Our people will change. Our customers will change. What will not change is our commitment to our key beliefs. o This Code is neither a contract nor a comprehensive manual that covers every situation Motorolas throughout the world might encounter. It highlights key issues and identifies policies and resources to help Motorolas reach decisions that will make Motorola proud. o Abusive, harassing or offensive conduct is unacceptable, whether verbal, physical or visual. o Responsible for immediately reporting accidents, injuries and unsafe equipment, practices or conditions to a supervisor or other designated person. o They build long-term relationships with our customers by demonstrating honesty and integrity. o Motorolas who deal with government officials and contracts are responsible for knowing and complying with applicable laws and regulations. o Require honest and accurate recording and reporting of information. This includes such data as quality, safety and personnel records, as well as all financial records. o Motorola and all their employees are required to comply with the antitrust and unfair competition laws of the many countries in which they do business. o Motorola is committed to protecting the environment by minimizing the environmental impact of operations and operating businesses in ways that foster sustainable use of the world's natural resources.

o Motorola will provide fair, accurate, timely and easy to understand information to the public. o The Ethics Line offers information, advice and suggestions. o The Audit Committee Line has been established to allow access to the Audit and Legal Committee of the Motorola, Inc. Board of Directors for any interested party with a concern about Motorola's accounting, internal controls or audit matters.

ROLE OF TRADE ASSOCIATIONS:Efforts are being made at the business level to promote business ethics by businessmen and business enterprise. In this regard, business groups / houses and business organizations /associations play a leading role. Tata group is one business group which is pioneering in regard to business ethics. A business organization needs institutionalized ethics which Tata group has provided to its companies. In addition, L &T, Godrej and Reliance are some moir business houses which support well accepted ethical practices .Along with business groups, business organizations i . e. associations of businessmen also support ethical trade practices. Many trades associations have formed code of conduct for their members. . Other associations of businessmen such as IMC, AIMO and ASSOCHAM have prepared code of conduct for their members. 1 Formation of Code of Ethics: Trade associations can formulate a code of conduct for their members. Such code contains rules and principles of fair / ethical practices which all members are expected to follow while conducting their business activities. The purpose of such business code is to encourage members to follow fair trade practices. It has educative value. The code should be functional and practicable. 2 Education and Persuasion of Members i.e. Businessmen: Trade associations provide education, guidance and training to members through annual meetings or monthly meetings. Similarly, workshops, seminars, special lectures, etc., are arranged for education and guidance of businessmen. The businessmen have to realize that honesty is the best policy even in business. Being

honest is to build character and character is the greatest asset even in the case of businessmen. 3 Moral Sanctions: Trade association can introduce incentives to those members who follow business ethics honestly. Press publicity should be given to members who respect business ethics.

TRADE ASSOCIATIONS:FEI's mission includes significant efforts to promote ethical conduct in the practice of financial management throughout the world. Senior financial officers hold an important and elevated role in corporate governance. While members of the management team, they are uniquely capable and empowered to ensure that all stakeholders' interests are appropriately balanced, protected and preserved. This Code provides principles to which members are expected to adhere and advocate. They embody rules regarding individual and peer responsibilities, as well as responsibilities to employers, the public, and other stakeholders. Violations of FEI's Code of Ethics may subject the member to censure, suspension or expulsion under procedural rules adopted by FEI's Board of Directors.

All members of FEI will:1. Act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationships. 2. Provide constituents with information that is accurate, complete, objective, relevant, timely and understandable. 3. Comply with applicable rules and regulations of federal, state, provincial, and local governments, and other appropriate private and public regulatory agencies.

4. Act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing one's independent judgment to be subordinated. 5. Respect the confidentiality of information acquired in the course of one's work except when authorized or otherwise legally obligated to disclose. Confidential information acquired in the course of one's work will not be used for personal advantage. 6. Share knowledge and maintain skills important and relevant to constituents' needs. 7. Proactively promote ethical behavior as a responsible partner among peers, in the work environment and the community. 8. Achieve responsible use of and control over all assets and resources employed or entrusted. 9. Report known or suspected violations of this Code in accordance with the FEI Rules of Procedure. 10. Be accountable for adhering to this Code.

IBE's code of business ethics:Introduction by the Chairman of the Trustees: As a registered UK charity, the trustees and staff of The Institute of Business Ethics (IBE) seek to provide an effective service to its subscribers, the business community and the wider public. The IBE is accountable, through the Trustees, to the Charity Commission. It will conduct its affairs in accordance with all relevant legislation. The IBE aims to conduct its affairs responsibly and in an open manner. We will endeavour to maintain the highest standard of practice in all our work and in our dealings with those outside the organization. This code of ethics sets out how we intend these core values should be applied in our dealings with those with whom we work.

Management Commitment: The Institute will do all in its power to conform to the letter and spirit of this code. In order to monitor its performance in this regard, the IBE has sought and obtained accreditation from Good Corporation. This takes into account the views of all our stakeholder groups and, through an independent assessment process, verifies that we 'practice what we proclaim'. The work of the Institute, as expressed in its publications, meetings and other activities, will endeavour to be objective and reflect current best practice in topics addressed. The Institute has identified five principle constituents to whom it has a responsibility: employees; subscribers and other users of our services; suppliers; the community and its trustees.

Employees: The IBE values its staff highly and respects their dignity and rights. We

will be open and honest with our staff; provide clear and fair terms of employment; provide clean, healthy, safe and secure working conditions; have a fair remuneration policy; strive for equal opportunities; encourage staff to develop skills and progress in their careers; do not tolerate any harassment of our staff of any kind; do not discriminate on any grounds other than the ability to work effectively; only employ those who are eligible to work; meet requests for flexible working arrangements wherever possible.

Subscribers and other users of our services: The IBE treats its subscribers and others for whom it provides services with respect. We

seek to be honest and fair in our relationships; seek to provide standards of agreed service;

take all reasonable steps to ensure that reports, training and other services we provide are of a high quality; treat all complaints seriously; treat all corporate and personal information confidentially

Suppliers: The IBE treats its suppliers with respect. We

seek to be honest and fair in our relationships with suppliers including those from whom we commission work; pay suppliers in accordance with agreed terms; have a policy not to offer, pay or accept bribes or substantial favours; encourage suppliers to abide by the principles of our code; aim to procure goods and services from those demonstrating good ethical practice.

Community and environment: The IBE seeks to be a good corporate citizen. We

will make sure that there is a clear public benefit in our programmes; seek to be sensitive to our landlord's and the local community's needs; try to protect and preserve the local environment; endeavour to support ethical trade in our purchasing practices.

Trustees: The IBE is accountable to the trustees for the use of its funds. We

make available financial reports to our trustees that are accurate and timely and give a fair understanding of the current and future prospects of the organisation; communicate honestly our policies, achievements and prospects. when appropriate, invest financial resources in ethical funds; aim to protect IBE funds, manage risks and ensure that donations are used for the purpose for which they were given;

encourage trustees to participate in IBE activities.

Implementation: This code will be given and explained to all staff, including those who are temporary or on contract. They will be expected to work within its letter and spirit. Good Corporation will be asked annually to assess how the Institute is performing in relation to this code. The code will be reviewed every two years.

Enforcement of business practices:Enforcement of business ethics is a complicated and delicate issue. Ethical values moral principles and code of fair business practices are good concepts but only when discussed in theory. However, the business ethics need to be followed while conducting various business activities. Businessmen do not take the model code of conduct of business practices seriously. The enforcement of business ethics is always difficult and ineffective enforcement defeats the very purpose of business ethics. It also must be taken into account that business ethics cannot be enforced by law or force. .Here are some suggestions that can be taken in to account for the enforcement of business ethics:1)

2)

3)

4)

Education and guidance of businessmen as regards business ethics and fair trade practices by associations of business, press, TV and so on. Pressure from consumers, employees and the society at large on businessmen or business practices to follow fair trade practices and respect the ethical values. Effective execution of consumer protection laws by the government agencies. This will put pressure on businessmen to follow certain fair practices due to fear of punishment. Effective role of trade associations, chambers of commerce and other professional associations of businessmen in making business ethics as an integral part of

business management itself. Such associations can educate and guide their members through annual meetings, seminars; lectures etc. and encourage businessmen to follow business ethics on their own.

Difficulties in Decision Making:1. Managers face dilemmas in deciding on a course of action. 2. Managers confront a distinction between facts and values when making ethical decisions. 3. Good and evil exist simultaneously, in tandem and interlocked. 4. Knowledge about the consequences of an action is limited. 5. Antagonistic interests frequently use incompatible ethical arguments to justify their intentions. 6. Some ethical standards vary with the passage of time. 7. The ethical behaviour is moulded from the clay of human imperfection st 8. The early 21 century presents managers with new and emerging ethical problems that are not solved easily with traditional ethical guidelines.

Suggestions for Ethical Decision Making:Three principles i.e. Moral idealism postulates that certain acts are good and others are bad.Intution leaves to it the individual concerned to sense the moral gravity of the situation. Utilitarianism seeks to establish the moral locus not on the act or the motives but on the consequences. 2. Consider some decision tactics that illuminate moral choices. 3. Write down pros & cons in the form of balance sheet. 4. Sort out ethical priorities before problems arise. 5. One should commit oneself publicly on ethical issues. 6. One should set a good example for employees.1.

Knowing How to Approach Situations Helps Make Ethics a part of Everyday Life.Respect Organizational Resources. All organizations need to create revenue and control costs in order to survive. Most must make a profit. Don't turn a blind eye to misusing supplies and resources, leaving lights on, requesting overnight shipping unnecessarily and other actions that expend the resources of the company needlessly. If each employee, representative, or volunteer avoids using only $100 less per year, imagine the amount of money that your business could save and put to more productive use. Say NO To Negativity. Ever notice how some people always seem to gravitate toward negative behaviors? You know them - they're the folks who say things like "It'll never work" before they even consider how to make it work. They're the ones who openly criticize the organization, spread rumors about co-workers, moan, complain and try to pull others into their "woe is me" funk. Well, don't be one of them! Negativity is counterproductive. It erodes integrity and sometimes

fosters illegal acts. Negativity is wrong. This makes it unethical. Avoid it yourself, and discourage it in others. Make Sure The Mission Matters. Know and follow your organization's mission regardless of whether it appears in a formal written statement or a service promise on advertisements and brochures. Be about what the business says it is about. If you don't have a clear understanding of what the mission is, ask! You have the responsibility to understand it. Your supervisor or manager has the responsibility to clearly describe it to you so you do understand it. This will help you become the most effective and productive employee possible. Tame The Blame. Assigning blame is a destructive action that causes defensiveness and shapes an environment in which co-workers become afraid to apply innovation, creativity and risk taking. One simply but effective method for taming blame in a group is to identify a code word. This word can then be used by everyone to tactfully point out when someone has slipped into blaming mode and needs to switch to problem solving. Don't view the problem as being the issue that something wasn't accomplished or it was done wrong. That is simply a symptom. The real problem is WHY it was not accomplished or WHY it was done wrong. Taking action to solve the basic issue will show you are more interested to determining the root of problems, not simply blaming people. Be Truthful. Lying is often the gut-level defensive reaction to perceived danger. When you feel the desire to hide the truth, take time to jot down what you will get out of a trusting relationship versus the shortterm gain you might get out of evading the truth. Lying begins a dangerous cycle that breaks down trust and encourages additional lying. The long-term impact on you and the business is never worth the short-term possible benefit.

01/27/2005 Press release from: Center for Corporate Ethics Institute for Global Ethics Expands Focus on Business Practices with Center for Corporate Ethics. Group Aims to Make Trust Part of Corporate Culture .(CSRwire) CAMDEN, ME The Institute for Global Ethics announces the expansion of its business ethics practice with the opening of the Center for Corporate Ethics. The new division is based in New York City, the financial capital of the world, and is devoted to helping chief executives and business leaders focus on the challenges of maintaining integrity within large, complex, values-driven corporations. "The objective of the Center for Corporate Ethics is to work with companies to create and sustain the finest corporate culture with the highest sense of integrity, the greatest customer loyalty, and the most dedicated and mission-driven group of employees," says Rush worth Kidder, founder and president of the Institute for Global Ethics. Robert W. Hutchinson, a respected corporate consulting executive, will serve as the Center's managing director Hutchinson has spent a lifelong career as a trusted adviser to CEOs and corporate executives from around the world, whom he counsels on critical decisions affecting corporate policies and procedures and supply chain management. "Companies may be open about their business practices, but what are they doing to foster an open-door culture that promotes honest feedback from their employees," says Hutchinson. The Center for Corporate Ethics helps business leaders separate perception from reality by identifying gaps in employee attitudes regarding their business," says Hutchinson. "We help identify those gaps and develop solutions to sustaining a culture of integrity and

trust." Prior to joining the Institute for Global Ethics, Hutchinson served as national director and global practice leader of Supply Chain Management Consulting at KPMG. He was executive vice president of Garr Consulting Group, a division of Deloitte & Touche and vice president of W&H Systems. He also served in executive positions at Dayton-Hudson Corporation (now Target) as well as the United States Air Force. "Under Bob's leadership, the Center for Corporate Ethics is wellpositioned to equip companies with the tools, knowledge and strategies that help minimize the risks and costs of potential ethical lapses," says Kidder. The Center for Corporate Ethics' assessment tools, training seminars and custom consulting services give organizations insight into the attitudes and values of employees and how their ethical outlook may impact business.

Fri Jan- 28 14:28:23 2005 Pacific Time

A World of Business without RulesHOUSTON, Jan. 28 (Ascribe Newswire) -- On any particular ethical issue, multination corporations al re effectively adrift in today's global business arena with no universally agreed norms to guide their decisions. A researcher offers a path out of the chaos: an issue-by-issue process, beginning with an agreement in principle on a particular standard followed by the adoption of enforcement legislation in each country .In today's global business environment, there are no international rules governing multinational corporations. Acceptable business practices in one country may be illegal or unethical in others. And, argues a Rice expert in business ethics and international policy regimes, there is little guidance for concerned executives.

In a recent article in the October 2004 issue of Business Ethics Quarterly titled "The Development of International Business Norms," Duane Windsor, the Lynette S. Autrey Professor of Management at Rice University's Jesse H. Jones Graduate School of Management, describes the present state of international business ethics, business law and public policy and explains why consensus around a set of global business standards is unlikely in the near future. "The environment in which multinational businesses now operate is a very complicated world of multiple legal jurisdictions and varying standards of ethics and values," Windsor says. Pointing to an absence of international business norms coupled with disagreements among business ethicists, Windsor argues that global business standards may only come about as a result of initiatives outside the business community. He cites recent governmental and non-government efforts regarding corruption, environmental protection, human rights and fiduciary responsibility which may eventually define standards of acceptable, if not legallybinding, behavior within the international business community. "International business norms might evolve as a result of the interaction of enterprises, non-governmental organizations and stakeholders," Windsor says. "Their attempts to promote such issues as human rights, ecological sustainability and labor rights could eventually evolve into what I call informal or formal 'rules of the game' for global businesses." Windsor believes the path to global business norms is an issueby-issue, two-stage process, beginning with an agreement in principle on a particular standard followed by the adoption of enforcement legislation in each country. "If you can convince all parties to agree formally to a norm, such as the notion that sweat shops are bad, over time that agreement will evolve toward a general acceptance of the norm and better business behavior," he says Windsor's theory stems from his review of a number of governmental and non- governmental initiatives, in particular, passage of the U.S. Foreign Corrupt Practices Act. This

1977 legislation prohibited bribery of public officials abroad by U.S. corporations. . "Up to that point virtually every country prohibited bribery of its own public officials but none limited its corporations from bribing a public official abroad," says Windsor. "In fact, until recently, about 14 European countries permitted tax deductions of such bribes." Under pressure from the U.S. and a group of non-governmental organizations, increasing numbers of countries have cooperated to suppress business corruption of governmental and political officers. The United Nations adopted a formal condemnation of corporate bribery, as did the Organization of American States, the European Union and the Organization for Economic Cooperation and Development. Corporations such as British Petroleum, General Electric and Motorola also have taken positions on particular issues. BP has helped to establish a more environment-friendly approach for the energy industry, while the latter two companies have taken strong stands against corporate corruption. Regardless of whether companies are motivated by practical or moral concerns, Windsor stresses the fact that moral leadership on the part of a corporate executive means looking beyond simply the benefits to the company. Corporations may resist the development of global business norms because they think, in the short term; they are bad for business," Windsor says Issues facing multinational companies today, however, have long-term consequences for what has become a very interdependent world. Their leaders need to ask themselves what kind of world they want to help build."

A member of The Jones School faculty since 1977, Windsor has conducted research on corporate environment and social performance, business ethics, corporate governance, leadership, and socially responsible management. Some of his work appears as book chapters, most recently in Enron: Corporate Fiascos and Their Implications (New York: Foundation Press) and International Corporate Responsibility: Exploring the Issues (Pittsburgh: Carnegie Mellon University), and in the Journal of Public Affairs, the Journal of Corporate Citizenship, and the Cornell International Law Journal. A past president and program chair of the International Association for Business and Society and The 2005 program chair for The Academy of Management's Social Issues in. Management division, Windsor received his undergraduate degree from Rice and his master's and Ph.D. degrees from Harvard.

Respect, Responsibility, Results - by George. SWho's responsible for acting ethically? You are! It isn't the "company." It isn't just the business owner. It isn't only your manager. It is every person. Ultimately, each of us is responsible for our own actions, including being ethical. Considering the "3R's" will point you and your employees in the right ethical direction. The first "R" of business ethics is RESPECT. It is an attitude that must be applied to people, organizational resources and your environment. Respect includes behavior such as:

Treating everyone (customers, co-workers, vendors, etc.) with dignity and courtesy. Using company supplies, equipment, time, and money appropriately, efficiently, and for business use only. Protecting and improving your work environment, and abiding by laws, rules and regulations that exist to protect our world and our way of life.

The second "R" of business ethics is RESPONSIBILITY. You have a responsibility to your customers, your co-workers, your organization and yourself. Included are behaviors such as:

Providing timely, high-quality goods and services. Working collaboratively and carrying your share of the load. Meeting all performance expectations and adding value.

The third "R" of business ethics is RESULTS. Essential in attaining results is an understanding that the way results are attained the "means" are every bit as important if not more important than the ultimate goals the "ends." Using the phrase The ends justify the means is an excuse that is too often used to explain an emotional response, or action that was not well planned or carefully considered. Obviously, you are expected to get results for your organization and for your customers. However, you are also expected to get those results legally and morally, by being ethical. If you lose sight of the distinction, you jeopardize your job, your business and your career. By considering Respect, Responsibility and Results before taking action you will avoid the following common rationalizations for not doing what's right:

"Everyone else does it." "They'll never miss it." Nobody will care." The boss does it." No one will know." "I don't have time to do it right." "That's close enough."

"Some rules were meant to be broken." It's not my job."

10 PHASES IN ETHICS. ETHICS

BIBLIOGRAPHY: BIBLIOGRAP Y:www.indiainfoline.com www.business.com Business Environment By Kale-Ahmed Principles of Management By Harold Koo