LAM Project Group2

8/3/2019 LAM Project Group2

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GROUP NO 2

Submitted By2011

Project Report

Self Regulation and Business EthicsLegal Aspects of Management

Moitrayee Majumdar (wmp7104)

Nitin Kumar Tonk (wmp7105)

Vikram Arora (wmp7136)

Dipyaman Paul (wmp7093)

Dibyendu Dhara (wmp7092)

I I M L U C K N O W , N O I D A C A M P U


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Project Report on Self Regulation and Business Ethics

I I M L u c k n o w , N o i d a C a m p u s Page 2

Table of Contents

1 INTRODUCTION ............................................................................................................................... 4

1.1 Law and Ethics ................................ .............................. ...................... ................................ ...... 5

1.2 Relationship between Ethics & Law ........................... ................................ ...................... ......... 6

1.3 Nature of Ethics in Business ........................ ................................ ....................... ....................... 7

1.4 Characteristics of Business Ethics .......................... ................................ ...................... ............. 9

2 Status ofthe problem/Internationalandnational ....................................................................... 12

2.1 Human rights: ................................ ......................... ........................... ........................... .......... 12

2.2 Labor: .............................. ........................ ................................ ...................... ......................... 12

2.3 Environment: ................................ ......................... ............................ ................................ .... 12

2.4 Anti-corruption: ............................ ......................... ............................ ................................ .... 12

2.5 Problem and Codes of Business Conduct ................................................................................ 132.5.1 CORPORATE GOVERNANCE: RELATIONSHIPS WITH SHAREHOLDERS ............................... 13

2.5.2 RELATIONSHIP WITH EMPLOYEES .......................... ................................ ...................... ... 13

2.5.3 RELATIONSHIP WITH OTHER ENTERPRISES ............................ ................................ .......... 14

2.5.4 RELATIONSHIP WITH THE GLOBAL COMMUNITY ............................ ............................. .... 15

2.5.5 RELATIONSHIP WITH GOVERNMENT AUTHORITIES ............................. .......................... .. 15

2.5.6 PREVENTION OF EXTORTION AND BRIBERY ........................... ................................ .......... 16

2.5.7 CREATION OF A CULTURE THAT FOSTERS SOUND BUSINESS STANDARDS AND CORPORATE

PRACTICES ..................................................................................................................................... 17

3 Laws Affecting Business Commerce: ............................................................................................. 18

3.1 Antitrust Laws: .............................. ......................... ........................... ........................... .......... 18

3.2 Consumer Safety Laws: .......................... ................................ ...................... ........................... 18

3.3 Environmental Protection Laws: ........................... ................................ ...................... ............ 19

3.4 Laws Affecting Business Occupations: ........................ ................................ ...................... ....... 19

3.5 Laws Regulating Occupations: ......................... ................................ ...................... ................. 20

3.6 Laws Governing Diversity:................................................. ........................ .............................. 20

3.7 Laws Promoting Occupational Health and Safety: ............................... ...................... .............. 21

4 BUSINESS ETHICS, COMPLIANCE AND ENFORCEMENT MECHANISM AND THEIR EFFECTIVENESS . 22

4.1 Operational Activities ........................ ............................... ....................... ............................... 22

4.2 Competitive Advantage ......................... ................................ ...................... ........................... 23

4.3 Commercial Relationships .......................... ................................ ...................... ...................... 23


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4.4 Corporate Social Responsibility ........................ ................................ ....................... ................ 23

4.5 Cultural Diversity ............................ .............................. ...................... ................................ .... 24

4.6 Growth and Financial Security ......................... ................................ ...................... ................. 24

4.7 Business Ethics Barriers .......................... ................................ ...................... .......................... 24

4.8 Organizational Culture ........................ .............................. ...................... ................................ 25

4.9 Business Ethics and it Social Implications ......................... .............................. ......................... 25

4.10 Economic Responsibilities........................................... ............................. ............................... 25

4.11 Green Technology and Waste Minimization.............................................. ...................... ........ 26

4.12 Government Policies .......................... .............................. ...................... ................................ 26

4.13 Ethical Concerns ............................ ......................... ........................... ........................... .......... 26

4.13.1 Environmental Risks................................. ................................ ...................... ................. 27

4.13.2 Industrys Sustainability ...................... ................................ ...................... ...................... 27

4.13.3 Ethics and the Environment .......................... ................................ ...................... ............ 28

4.13.4 Information Security ........................... ................................ ...................... ...................... 28

4.13.5 Legal aspects ............................. .......................... .......................... ............................ ..... 28

4.13.6 Corporate Environmental Strategy .......................... ................................ ...................... .. 28

5 ROLE OF JUDICIARY .......................................................................................................................31

5.1 Definitions ............................ ........................ ................................ ...................... .................... 31

5.2 What Are The Punishments For Breaking The Code Of Ethics? ............................... ................. 32

6 NGOs/CivilSociety Groupsand Business/Industry Associations................................................... 34

6.1 Role of NGOs ............................ ......................... ................................ ........................... .......... 34

6.2 Role of Civil Society Groups ........................ ................................ ....................... ..................... 35

6.3 Business/Industry Association ......................... ................................ ...................... ................. 36

7 The Advantages of Behaving Ethically ...........................................................................................39

7.1 Reputation is the trust ....................... ............................... ....................... ............................... 39

7.2 Consequences ............................... ......................... ............................. .............................. ..... 39

7.3 Business activity ........................... .......................... ........................... ........................... .......... 40

8 Conclusion:.................................................................................................................................... 41

References: ........................................................................................................................................... 42


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1 INTRODUCTION

Despite the recent rash of corporate scandals and the resulting rush to address the

problem by adding more laws and regulations, seemingly little attention has been paid

to how the nature of rules may or may not affect ethical decision making.

Drawing on work in the law, business ethics, management and self regulations, this

project explores how several characteristics of rules may interface with the process of

reaching and implementing ethical decisions. Such a relationship would have practical

implications for regulatory policy and managers of organization.

The idea of self-regulation within legislative parameters can be interpreted as a moveaway from state responsibility and as a form of deregulation.Regulating self-regulation

has always meant more emphasis on persuasion, such as collaboration, training and

education, than on development or enforcement of any existing regulations.

The self-regulatory approach in general include its inability to take account of relatively

new forms of work, such as that associated with the private service sector, outsourcing

work intensification and the casualization of work; its assumption of common interest in

the workplace, which ignores unequal power between capital and labor; and the lack of

recognition of the role of criminal law, largely because of this assertion of common

interest.

Alongside a deregulatory tendency ushered in by globalization and economic liberalism

and not unconnected with it was a growing pressure on business to behave in a socially

responsible manner. In a global economy, business itself is more pervasive and more

powerful, while at the same time the power and scope of government was seen to be

dismissed and heightened media activity led to far reaching criticisms of business.

As well the move to a goal setting approach to employer responsibilities with fewer

resources allocated to say inspection and enforcement in favor of more workplace

initiatives, made promotion for corporate social responsibility (CSR) increasingly

attractive for government agencies, in turn making it easier to justify self-regulation.


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1.1 Law and Ethics

Law is a code of conduct which the authority in power prescribes for society. It basically

differs from ethics in its option to use force if and when necessary and by the fact that it

is backed by power. Laws are, by and large, fair and moral. But it is not easy to accept

that laws can be the foundations of ethics, or even that laws can ensure ethical

behavior.

There are many situations in life, where just following the law does not make one

ethical. For example, if your next door neighbor has just today lost their only son in a

motorcycle accident, just when you wanted to celebrate the birthday of your only son

with gaiety, music, guests, enjoyment and much merry making, there is no law to

prohibit you from doing so. If you decide not to, it is because of the dictates of your

conscience, not because of the dictates of the law. Your conscience, your ethical value

system and your principles forbids you to rejoice when someone else nearby is in

sorrow. The law has no role to play in such a situation.

Moreover, not all laws have moral choice. There are many laws which do not involve

any ethicality questions - for example, we are required to walk on the left hand side of

the road. This is done to ensure traffic control and the traffic discipline, but a question of

ethics is not involved here.

Again, all moral and ethical actions do not involve the law. For example, it is ethical to

love and respect your parents, but there is no law for it, except when they are

deliberately mistreated by their children. Law represents the minimum standards of

behavior expected from people. Merely following the law, does not make one ethical.

Another aspect of the legal system is that it prohibits us of certain actions. It also spellsout the negative consequences of our not following the law - that is legal punishment.

However, ethical behavior encourages us to do certain things and explains the benefits,

i.e., the positive aspects of this ethical behavior. For example, the law tells us not to

steal, not to kill, but ethics tells us to do good, speak the truth, help others in distress.


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Thus there is a positive aspect inherent in ethical behavior, whereas the law is more

concerned about negative behavior.

Yet another aspect of the law is that ethics precedes the action, the law follows it. Ethics

tells us what we should strive to develop in ourselves (high moral standards), on the

other hand, law tends to be more concerned with the consequences of the negative

action - what punishment would follow, who is guilty and how shall justice be done.

Moreover, the law is a universally accepted, published document, whereas ethics do be

not yet have a universally accepted, consistent and published concept - it is abstract,

culture specific and left to the individual for interpretation and action.

Again, the law clearly specifies what action would be taken against a person if he or she

violates the provisions of the legal system. But, in case of ethics, there is no specific

outcome of an unethical action. What would be the consequences of an unethical

action is not very clear, not always the same and not universally accepted. An unethical

action may have many repercussions and widespread consequences.

Some Laws have nothing to do with morality because they do not involve serious

matters. These include parking laws, dress codes and other laws covering similar

matters.

1.2 Relationship between Ethics & Law

Perhaps the easiest way to think about the relationship between business ethics and

the law is in terms of a Venn diagram. If we think of the law as reflecting society's

minimum norms and standards of business conduct, we can see that there is a great

deal of overlap between what's legal and what's ethical. Generally speaking, most

people believe that law-abiding behavior is also ethical behavior. But there are many

standards of conduct agreed upon by society that are not codified in law. For example,

conflicts of interests may not be illegal, but they are generally considered to be unethical

in our society and are commonly covered in codes of ethics. So, the domain of ethics


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includes the legal domain but extends beyond it to include the ethical standards and

issues that the law does not address.

Finally there are times when you might encounter a law that you believe is unethical.

For example, not so long ago racial discrimination was legal in the United States.

Therefore, the legal and ethical domains certainly overlap to a large degree, but not

completely. It is conceivable to think of something as being legal and unethical, or

unethical but not covered by law.

L AW Ethics

Overlap area

1.3 Nature of Ethics in Business

1. In business activities, most ethical questions could be of two types---overt and

covert. Overt ethical problems like bribery, theft, sabotage etc are clear for

everyone to see and are generally considered reprehensible. Covert ethical

problems are more complex, types of problems occur in corporate acquisitions,

marketing and personnel policies, capital investment, market war etc. They are

difficult to locate, to eliminate and are consequently much more dangerous and

threatening to business.


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2. For a decision to be ethical, it should possess the following characteristics. It

should be:

(a) RIGHT- that which is morally correct and due;

(b) EQUITABLE-that which is just and equal;

(c) GOOD-that which brings in the highest good for all concerned;

(d) PROPER-that which is appropriate and acceptable;

(e) FAIR-that which is honest and due;

(f) JUST-that justice is not only done; but is also seen to have been done.

3. Ethics is unstructured, i.e., it does not have a structured format or framework. It is

abstract in concept. Hence it does not have universal acceptance, mainly

because:

a. Ethics depends upon our moral standards;

b. Moral standards depend upon our value system;

c. The value system of people depend upon their background & childhood

experience; &

d. The background & experience of people are vastly different. Hence the

ethical practices of people are also different.

4. Ethical decisions should express some obligations to others. The very concept of

being ethical means that it results in some well for the larger society and not just

for oneself.


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1.4 Characteristics of Business Ethics

1. Ethical decisions differ with the individual perspective of different persons. Each

person views the ethical question in terms of his or her own frame of reference.

And this frame of reference is the persons own unique value system. Hence

ethical decisions do not have unique solutions, but a multitude of alternatives.

For example, In case of a Dam building project, the company loses Rest. 2 lac

per day, if operations are stopped. One day during work, it is found that a worker

is missing inside the dam. Work will definitely be stopped to search for the

missing man. However, if the man is not found within a day or two, how long

should work be stopped, inspire of the losses to the company, will depend upon

the value system of the manager & what according to him is the ethical thing to

do. Given the same situation, but a different manager, work will be stopped only

unto what that manager thinks is the ethical course of action, or work may not be

stopped at all.

2. Ethical decisions are not limited only to them, but affect a wide range of other

situations as well. Similarly, unethical decisions do not end in themselves, buthave widespread consequences. One ethical action is like a pebble thrown into a

pond of water, it produces endless ripples in the pond, until it disturbs the water

in the entire pond. Similarly the single unethical action is not limited to the

individual in the company who commits it, but spreads within the entire

organization and one unethical organization affects the entire industry.

3. Most ethical decisions involve a trade-off between costs incurred & benefitsreceived. It needs to be clearly understood that costs & benefits, profits &

responsibilities are two ends of a single spectrum. Both cannot be mixed

simultaneously .If you want some benefits for your organization or for yourself;

you need to incur some costs or make some sacrifice. Similarly, maximum profits

cannot go hand in hand with maximum social responsibilities or maximum


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welfare obligations. Maximum concern for task or productivity cannot go hand in

hand with maximum concern for people. There has to be a trade-off, a

compromise. And this compromise, where it is done, how it is done, results in a

decision being ethical or unethical. One cannot get everything for nothing.

4. The consequence of most ethical decisions is not clear. They are ambiguous in

nature. The only certainty is that somewhere, sometime, somehow, something

positive would result from an ethical decision and something negative from an

unethical one. The consequences of both may not be immediate and may not be

clear.

5. Every person is individually responsible for the ethical or unethical decision &

action that he or she takes. Taking an ethical or unethical decision cannot be an

impersonal activity as it involves the persons individual & unique value system

along with his moral standards. The same is the case with ethical or unethical

actions. Every person has to take decisions, & whether this decisions are ethical

or unethical, will depend upon his own conscience & upon what he is comfortable

with. His own value must justify his actions .For example, In case of

parliamentary democracy, during a vote of confidence of a government, if the

prime minister of the country pays bribes to a few independent MPs to buy their

votes in the favor of the government, he is doing so, not for his own sake alone,

but to save the entire government. In other words, the unethical action & decision

of bribery, is taken on behalf of the entire government, & not merely on his own

behalf. Yet he alone is personally & individually responsible for the crime, & not

his entire government. Ex: in Hindu mythology Rants (Sage Valrico).

6. Ethical decisions are voluntary human actions .A person cannot escape his

personal liability for his crimes by saying that he was forced to pay the bribe in

order to get the job. All human beings have the freedom of choice & of free will.

Even under compelling situations, many men have refused to divert from the


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ethical way of life. Hence, no one can excuse himself or herself of his or her

actions by citing force of circumstances or pressure of men for his or her

unethical activates. Hence all ethical or unethical actions are supposed to result

from voluntary human actions & not from situations beyond their control.


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2 Status of the problem/ International and national

2.1 Human rights:

y Business should support and respect the protection of internationally

proclaimed human rights.

y Make sure they are not complicit in human rights abuses.

2.2 Labor:

y Business should uphold the freedom of association and the effective

recognition of the right to collective bargaining.

y The elimination of all forms of forced and compulsory labor.

y The effective abolition of child labor.

y Eliminate discrimination in respect to employment and occupation.

2.3 Environment:

y Business should support a precautionary approach to environmental

challenges.

y Undertake initiatives to promote greater environmental responsibility.

y Encourage the development and diffusion of environmentally friendly

technologies.

2.4 Anti-corruption:

y Businesses should work against all forms of corruption, including extortion

and bribery (Source: www.unglobalcompact.org)


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2.5 Problem and Codes of Business Conduct

2.5.1 CORPORATE GOVERNANCE: RELATIONSHIPS WITHSHAREHOLDERS

A trusting relationship between management and shareholders is critical. Investors and

lenders must be satisfied with the manner in which shareholders oversee the

performance of management and participate in key decisions. Sound principles of

corporate governance include the following:

y Delineating in the company charter the respective roles and responsibilities of

both management and shareholders.

y Transparency of voting rules.

y Respect for the rights of minority shareholders.

y Open communications with shareholders through the provision of audited

accounts and information about the progress and operations of the company.

y A well-functioning board of directors who have the skills, the time, and the

access to information needed to discharge its responsibilities effectively.

y The board will act in a fiduciary capacity on behalf of all the shareholders.

2.5.2 RELATIONSHIPWITH EMPLOYEES

Enterprises have an important responsibility towards their employees. A number of

basic principles typically guide the attitudes of successful enterprises toward their

employees:

y Due regard for labor laws.

y Commitment to adequate standards of worker health and safety.

y Non-discrimination in the recruitment, compensation, and promotion of

employees. Respect for the rights of workers to engage in union activity.


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y Effective systems for consultation with employees on employment conditions and

other issues that affect the employees.

y Clearly stated and transparent policies relating to compensation, benefits,

promotions, and other employment conditions.

y Commitments by the enterprise for contributions to pension plans; and strict

protection of the integrity of company-sponsored pension plans.

These principles do not limit the right of an enterprise to enforce discipline on its labor

force or to terminate workers in accordance with applicable law.

2.5.3 RELATIONSHIPWITHOTHER ENTERPRISES

A relationship of mutual trust in which all parties benefit is the most significant aspect of

relations between partners in joint ventures, contractual arrangements, or business

relations with other enterprises. The reputation of a company is its most valuable asset.

Once the reputation of an enterprise is tarnished, it is very difficult to gain trust with the

same or other business relations. A number of basic principles that typically promote

mutual trust in business relations include:

y Commitment to excellence in products and services;

y Commitment to gain respect and trust in all business relations;

y Respect for the sanctity of contracts and business relations;

y In case of a commercial dispute, a willingness to negotiate and compromise in

order to reach an amicable solution.

y Respect for the sanctity of rule of law, including abiding in a timely manner with

decisions of any court, arbitral panels, or other administrative bodies.


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2.5.4 RELATIONSHIPWITH THE GLOBAL COMMUNITY

As a company is an integral part of the community in which it operates, a sound

relationship with the community is essential. Caring for the environment is aresponsibility of the enterprise towards the immediate community, but it also extends to

all communities and areas whose environment may be affected by the enterprises

activities. Enterprises must:

y Be sensitive to concerns of the local population;

y Communicate with the local population;

y Abide by all applicable environmental laws and regulations; and

y Show tolerance for people of other cultures, races, beliefs, and countries.

2.5.5 RELATIONSHIPWITH GOVERNMENTAUTHORITIES

Well-managed enterprises are law abiding enterprises. To maintain a sound relationship

with governmental authorities, enterprises must:

y Pay all taxes that are owed and due;

y Abide by all mandatory government and local regulations;

y Obtain all governmental permits, licenses, and approvals required to do

business;

y Deal with government authorities on an arms length basis, and make no

attempts to improperly influence governmental decisions;

y Establish transparent procedures regarding transactions engaged in byenterprises with any government agency or official or in dealings with any

enterprise owned or controlled by a government agency or official; and

y In transactions with any government agency or officials or with any enterprise

owned or controlled by a government or government official, include appropriate


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provisions to ensure compliance with international or national codes against

extortion and bribery.

2.5.6 PREVENTION OF EXTORTIONAND BRIBERY

Principles concerning prevention of extortion and bribery are intended as a method of

self-regulation by businesses. The voluntary acceptance of these principles by

enterprises will not only promote high standards of integrity in business transactions,

whether between enterprises and public bodies or between enterprises themselves, but

will also protect enterprises that are subject to attempts at extortion. The business

community objects to all forms of extortion and bribery. The highest priority should be

directed to ending extortion and bribery involving politicians and senior officials. Bribery

and extortion threaten democratic institutions and cause grave economic distortions.

All enterprises should observe both the letter and spirit of the following rules:

y No one may, directly or indirectly, demand or accept a bribe;

y No enterprise may, directly or indirectly, offer or give a bribe, and any demands

for such a bribe must be rejected;

y Enterprises should take measures reasonably within their power to ensure that

any payment made to any agent represents no more than an appropriate

remuneration for legitimate services rendered by the agent; that no part of any

such payment is passed on by the agent as a bribe or otherwise in contravention

of these principles;

y All financial transactions must be properly, accurately, and fairly recorded in

appropriate books of account available for inspection by the board of directors as

well as by auditors. Enterprises must take all necessary measures to establish

independent systems of auditing in order to bring to light any transactions that

contravene these principles. The enterprise must then take appropriate corrective

action;


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y The board of directors of the enterprise should periodically review compliance

with these principles, and take appropriate action against any director or

employee who acts in a manner inconsistent with these principles;

y Contributions to political parties or to individual politicians may be made only in

accordance with applicable law, and in accordance with all applicable

requirements for public disclosure of such contributions.

2.5.7 CREATION OF A CULTURE THAT FOSTERS SOUND BUSINESS STANDARDS AND

CORPORATE PRACTICES

Ultimately, for an enterprise to live by sound business standards and ethical practices it

must develop a culture that fosters such standards of integrity. This effort must be led

by management and key shareholders. Steps that management and key shareholders

may take to promote this positive attitude throughout the company include:

y The preparation and dissemination within the company of a code of conduct for

employees;

y Employee training;

y Encourage proper conduct and sanctions against misconduct; and

y Creation of an ethics office and ethics officers to advise and educate employees,

and provide guarantees for confidential counseling.


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3 LawsAffecting Business Commerce:

3.1 AntitrustLaws:

Perhaps the single most important reason U.S. laws governing trade and commerce

were initially passed was to prevent the abuse of monopoly power, however a number

of powerful antitrust laws were passed making it illegal for one or more companies to

conspire to limit supply and control a products price. This was a huge blow to big

business. Violators face severe penalties.

3.2 Consumer Safety Laws:

The Consumer Protection Act 1986 is a social welfare legislation which was enacted as

a result of widespread consumer protection movement. The main object of the

legislature in the enactment of this act is to provide for the better protection of the

interests of the consumer and to make provisions for establishment of consumer

councils and other authorities for settlement of consumer disputes and matter therewith

connected.

In order to promote and protect the rights and interests of consumers, quasi judicial

machinery is sought to be set up at district, state and central levels. These quasi judicial

bodies have to observe the principles of natural justice and have been empowered to

give reliefs, of specific nature and also to impose penalties for non compliance of the

orders given by such bodies.

The main object of these bodies is to provide speedy and simple redressal to consumer

disputes. It is one of the benevolent pieces of legislation intended to protect the

consumers at large from exploitation.


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3.3 Environmental Protection Laws:

A third class of commercial laws governs how companies treat the natural environment.

This is one of the primary functions of governmentto preserve the long-term health

and prosperity of people when unregulated markets fail to do so. In the 2000s, the costs

of disposing both toxic and nontoxic waste products increased substantially. Land has

become more scarce and expensive. So to protect it, more laws are being passed to

regulate the way products are disposed of. Stricter air pollution regulations have also

been passed to, among other things, limit acid rain caused by the emissions of coal-

fired power stations.(Whole forests around the world have been killed by acid rain.)

Similarly, there is increasing realization that our seas are becoming over polluted and

overfished. Laws and regulations now govern the size of fish catches and oil drilling at

sea throughout Canada, Alaska, the Gulf Coast, and elsewhere.

Unfettered by laws and regulations, unethical companies will simply maximize their own

short-run returns at the expense of the environment and the people in it. Future

generations will not only suffer physically because of pollution but also economically as

the worlds natural resources are depleted. The long-run consequences future

generations faces when these companies exploit the environment are not part of their

business models.

Legal regulations can change this, however. When companies are forced to pay the real

cost of obtaining valuable inputs and properly disposing of their waste products costs

they would otherwise impose on the rest of us in terms of the wastes cleanup, the

higher health costs we experience, or the depleted resources we no longer have access

to their incentives change

3.4 Laws Affecting Business Occupations:

Many types of laws have been passed to prevent unethical practices related to business

occupations: laws regulating occupational qualifications, laws governing business

diversity, and laws promoting employee health and safety.


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3.5 Laws Regulating Occupations:

In many countries regulations exist that specify the skills, qualifications, and experience

people must possess to be hired for government occupations. Air traffic controllers, taxauditors, schoolteachers, firefighters, and police officers, for example, all must have

certain credentials. This serves the public interest because it ensures people have the

skills they need to properly serve the public. It also prevents people from being hired for

whom they knew versus what they know. Certainly, no person wants to feel he or she

wasnt hired or promoted

Because the person who was went to the same school or belonged to the same club as

the boss. Unethical hiring practices also mean that best people are not being hired.

They are not being put to their most highly valued uses, so there is a loss in social

welfare, and the public interest is threatened.

3.6 Laws Governing Diversity:

Laws governing diversity seek to create a level playing field for people in the job market.

Once again, the goal of these laws is to foster the hiring, promotion, and retention of

people based on their ability to do a jobnot based on their ethnicity, religion, gender,age, and so on. If a company decides it needs to lay off workers, for example, the

layoffs cannot unfairly affect a particular group of employees, such as workers over 50,

or women or minorities. The procedures used to decide who should be hired, promoted,

or laid off have to be defendable in court.

One reason such laws are necessary is to lessen the impact of the psychological bias

called the similar to me effect, which research shows is a common tendency. As the

name implies, people commonly tend to recruit, promote, and retain people from within

their own religious, ethnic, or age groups because its easier dealing with people who

are more like themselves. Diversity laws help prevents this from happening by making it

illegal to choose between people on no job-related grounds.


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3.7 Laws Promoting Occupational Health and Safety:

A final set of laws governs how companies must protect the health and safety of their

employees while on the job. Most companies make the need to protect their employeesfrom harm a major priority. But because abiding by health and safety regulations can be

expensive, other companies do not or they take shortcuts to save money. For example,

in 2001 a huge power generator blew up in one of Fords car plants killing several

employees and inuring many others. Although Ford had generally followed U.S. health

and safety laws, it became clear to investigators that Ford could have been more

proactive. For instance, it could have better trained the workers responsible for repairing

and servicing the generator. Instead, the workers had been allowed to take shortcuts

that saved them time and Ford money, which indirectly may have contributed to the

explosion.


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4 BUSINESS ETHICS, COMPLIANCE AND ENFORCEMENT

MECHANISMAND THEIR EFFECTIVENESS

Business ethics and it legal implication has become an enhancing region of concentrate

for companies today. The Companies focuses on the growth of ethical elements of the

business as it concerns to trade and business. The Companies also centered on the

collective obligation confines relative to daily assessment of the business Ethics. Social

responsibility and Ethics go hand in hand. Social responsibility and principles impacts

Inc or individuals within the place of work, over there The social responsibility refers to

the overall route in which an Inc decides to balance its involvement with employees,

stake holders and the environment .The core cause for trade and work to do the correct

thing is that the correct time researcher considers that good ethics is good for the base

line of the product. The work area is a gathering of dissimilar acculturations that

disagrees in their behavior related to ethics. It could be said firms might not afford to

ignore ethics.

4.1 Operational Activities

It is enormously significant for management to behave in ways that are ethical and

consider the greater good of the organization and its employees. Since ethics plays a

major role in business management future managers therefore need to be aware of the

positive and negative implications with ones behavior and hence this will allow them to

think about how ethical and unethical behavior has future effects.

One of the main roles of business ethics in business management is for managers to

act as a role model by demonstrating ethical behavior in order to set a leading example

for other employees to look upon.


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4.2 Competitive Advantage

Another role of Business Ethics in business management involves creating a

competitive advantage by creating imaginations that are collectively multifaceted,complicated to reproduce and exceed through with significant time subordinate. The

Companies who creates association with shareholders based on trust, honesty, and

business are in a great situation to gain a benefit over organization which does not .The

cause constituting is that formulating corporation and trust between shareholders

considers time, which successively conducts to commonly favorable worth accuse that

assist increase compensation which guide to enhanced performance.

4.3 Commercial Relationships

Business ethics also plays a vital role in helping an organization in creating a

comprehensive convinced collective image which is believed to be the basics for

structure fortunate industrial contribution through numerous objectives of the public

interest and relation. However, business ethics is also central in generating faith and

trust between an organization and its stakeholder. Furthermore, a firm with a superior

representation can more simply effective customers that manipulate the achievement ofthe as partners, investors, customers and employees. Therefore Business Ethics highly

contributes to enhanced performance.

4.4 Corporate Social Responsibility

CSR undeniably plays a very important role in Business Management. CSR plays a

major role in building a sustainable development for business concern in a considerable

comportment. It has further observed that the CSR of the Companies contributes

numerous kinds of business activities that comprise enhanced reputation of the firm and

superior retention and loyalty. In addition it created by The Sustainable Development of

the World Business Council for on CSR and this sector companies create a vital


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position in insuring risk, recognizing market share, improving value of the firm and

asserting support of the customers.

4.5 Cultural Diversity

International firms which are enrolling the personnel of the firm might differently find it

complicated to get engaged this comprise the selection of colonist, refugees and disable

people. In such a situation, CSR of the firm have an important position in accomplishing

a summary of politeness within societies, and could have the benefit of appealing good

fame of the firm authorities in their attempts to incorporate migrant employers or

refugees who would otherwise have to be supported out of public funds.

4.6 Growth and Financial Security

Organizations firmly consider that long run financial feasibility is in the interest of all

stakeholders and that by integrating CSR into their organization, it will play a role of

providing long term development and financial protection for those shareholders and to

preserve or improve their position in market for instance safety and health consideration

at employment, management development and training all assist to support security,

stability, and effectiveness inside the workforce.

4.7 Business Ethics Barriers

These are the few sectors of ethical consequences that firm would come across

throughout the exercise of Business Ethics. The two main barriers an organization may

encounter are:

o Bribery and corruption

o Counterfeiting or the production of fake goods

Corruption is essentially dishonest and at times completes illegal, inducing damage to

the economy, individuals and public life, and, if conventional, may support planned


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misdeed in the Companies these kinds of elements are not exist and they should be

careful regarding these kinds of elements which will be harmful for the management

point of view Counterfeiting or the production of fake goods, that is the cause of the

theft of rational property, is one more region of ethical distress in the firm with the

barriers above, deference for the unfeigned brand drops when multitudes of counterfeits

are produced that conduct to low execution by the organization.

4.8 Organizational Culture

Organizations required an assurance to maintaining and developing an ethical culture in

Organizational. The culture related to organization in Companies is relate social glue as

it obliges the firm approximately its standards, viewpoint and conduct over there itexecutes and created Organizational practice. If CSR is practiced effectively, it can be

extremely beneficial to an organization by creating customer loyalty and also helps in

gaining a competitive advantage. However, I disagree with Altruistic CSR as I feel it is

immoral. I strongly contemplate that seizing ones wealth for another is immoral and

therefore Altruistic CSR is partially inequitable, in my point of view.

4.9 Business Ethics and it

Social

Implications

It is significant to keep in mind that and Corporate Social Responsibility (CSR) and

business ethics deals with each other. In order to appreciate the business ethics, firm

should also appreciate business ethics in Companies these elements of the social

elements strictly follow and created with the management cooperation. Also, a business

ethics in Companies should also be an ethical firm and an ethical firm should also be a

socially responsible firm. Furthermore, it may wonderment as to for what purpose CSR

and business ethics accept so much significance.

4.10Economic Responsibilities

The responsibilities related to economic matters admits existence productive for

stakeholders, furthermore demonstrating economic and financial remuneration to other


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commercial shareholders, like that fair-paying works for personnel and superior choice,

fairly-priced merchandise for consumers. Effectual obligations necessitate carrying

business concern legally and economically. Companies responsibilities of the ethics exit

outside of the legislation by deflecting impairment or social consequences regarding

moral of the people consideration and behaving what is correct, exactly, average and

handling.

4.11Green Technology and Waste Minimization

It has become apparent that industry needs to install cleaner technologies to minimize

waste. With traditional views, that being greener has a detrimental effect on

organizations competitiveness, consequently, the economic performance oforganizations is affected negatively due to high initial costs of implementation (e.g. the

expense of a new filter which reduces the number of harmful waste products into the

air) and lesser quality of products due to restriction on components used, therefore

fewer sales, resulting in a less competitive organization.

4.12GovernmentPolicies

The Government policies on waste include recovering 50% and recycling 25% on

packaging, effective from 2001. The Companies claim to have set these targets before

they were implemented by the government, therefore the Companies is self-regulated,

further evidence of this is which the packaging of Companies is not superior, as are

their product like carrier bags that produce dissipate in the form of small pollution,

furthermore this is not still a legal prerequisite, the Companies are recovering waste in

the way that they are not harming the environment through pollution which can harm

species and damage habitats.

4.13Ethical Concerns

It concerns to the entire technique through which a firm efforts to correspondence its

dedications to applicable individuals and Inc in its community. Ethical concern relates to


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the firms and individuals must perform ethically and with predisposition towards cultural,

social, environmental and economic consequences. Determined for social obligation

helps people, authorities and Companies members have an optimistic affect on

development, business and society with a positive involvement to outcome (George, et

al, 2009). In current natural life numerous customers have been upset by extensively

advertised instances of impostor by administrators and abusive goods developed by

some firms. As outcomes customers have become more cognizant of whom they are

doing trade with and those goods customers should purchased. Many companies who

are looking for long-term profitability are looking for ways to become more socially

responsible.

Ethics of Outsourcing and Others opinion

4.13.1 Environmental Risks

If the environmental risks of the organization are small but the market opportunities are

large, then the organization could be seen as offensive, or being proactive. For

example, a waste collection Inc who is helping the environment by collecting waste has

high market opportunities because they could use their optimistic elements as a

marketing implementation for example, a chemical Inc who is highly legislated may lose

competitive advantage (Denis, 2009).

4.13.2 Industrys Sustainability

This means that organizations should be highly integrated with governments in terms of

sustainable development. The way that the Companies strategy is implemented is

evidence that a lot of companies are operating in the fourth era. However, some

companies are not in this era and so many models have been developed to try and

identify where companies are in terms of a progression towards an environmental

strategy, and the relationship between strategy and the environment.


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4.13.3 Ethics and the Environment

According to the Companies shopping with attitude survey, 72% of consumers are

more concerned with ethics and the environment than they were ten years ago and 60%

of consumers are manufactured to not produce goods that did not assemble their ethicalexpectations. The 28% may take an apathetic, skeptical or defeatist view over ethical

consumerism. It has 72% of consumers are interested in how ethical a business by the

Companies strategy (Jeffery, 2009). It is wise for an organization to respond to ethical

consumerism. First of all, organizations need to be informed of what issues consumers

are concerned with so they need to do their research. The Companies does the

following as a response to ethical consumerism.

4.13.4 Information Security

The centre apprehension of outsourcing ethics is secret information and data safety.

Chief Privacy Officers are extremely apprehensive about correct data safety practices. If

people outsourcing associate does not have sufficient data safety process, it may be

prudent to continue clear of them. Everyone arrogates to be ethical. Though a clear

perspective of the parameters for identify organizations with ethical conscience will be

difficultness, some elements are vivid.

4.13.5Legal aspects

Legal perceptions may differ from one nation to the other and ambiguity could arise

when a dispute occurs, leaving both parties in a fix. The association becomes easier

when the parties have a legal, moral and ethical obligation to comply with the

agreement, with due respect to international law.

4.13.6 Corporate Environmental Strategy

Ethical program and model might be detailed as the capacity and instruction of a firm

over the long expression, preferably which corresponds its imaginations to its converting

surround and in contribution its customer, markets, and buyers as so to gather


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shareholder prospect (Elaine, 2000). Therefore, environmental plans must be the

identification above, plus an appearance of a firm assurance to the environment; so

where an organization tries to meet stakeholder expectations, this must be in balance

with the protection of the environment.

Corporate ethics is taking on increased prominence at U.S. companies, according to a

recent survey by Deloitte and Corporate Board Member magazine. Eighty-three percent

of companies surveyed have developed formal codes of ethics or conduct. And more

than 98 percent of survey participants agree that an ethics and compliance program is

an essential component of corporate governance.

These findings should come as no surprise, given the heightened attention paid to

corporate ethics over the last couple of years, as well as the business imperative to

strengthen ethics programs in response to Sarbanes-Oxley.

But although many companies have taken the fundamental first step of establishing a

code of ethics, results are decidedly mixed concerning other activities designed to

improve corporate ethics.

For example, when asked if compliance with their code of ethics is tracked, only about

75 percent of companies that have a code said they actually check to make sure it is

being adhered to.

Slightly lower numbers were recorded for corporate performance in educating their

employees on business ethics. Only about 68 percent of companies surveyed provided

training to their employees on the requirements and responsibilities contained in their

code of ethics. Further slippage can be seen regarding the allocation of resources to

ethics activities. When asked if their company had an ethics officer (either full- or part-

time), only 55 percent answered in the affirmative.

However, positive data also emerged from the survey, with progress being made on

several fronts. For example, better than 95 percent of companies said their code of


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ethics applied to every member of their organization, including senior management and

board members. And more than 90 percent of companies with global operations said

their code covered both their domestic and foreign outposts. Among the highlights of the

survey are the following questions and responses, along with our comments on the

results.


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5 ROLE OF JUDICIARY

A relationship exists between law and ethics. In some instances, law and ethics overlap

and what is perceived as unethical is also illegal. In other situations, they do not

overlap. In some cases, what is perceived as unethical is still legal, and in others, what

is illegal is perceived as ethical. A behavior may be perceived as ethical to one person

or group but might not be perceived as ethical by another. Further complicating this

dichotomy of behavior, laws may have been legislated, effectively stating the

governments position, and presumably the majority opinion, on the behavior. As a

result, in todays diverse business environment, one must consider that law and ethics

are not necessarily the same thing.

5.1 Definitions

Law can be defined as a consistent set of universal rules that are widely published,

generally accepted, and usually enforced. These rules describe the ways in which

people are required to act in their relationships with others in a society. They are

requirements to act in a given way, not just expectations or suggestions to act in that

way. Since the government establishes law, the government can use police powers to

enforce laws. The following chart defines the terms in the definition of law above.

y Consistent If two requirements contradict each other, both cannot be termed a

law, because people cannot obey both.

y Universal The requirements must be applicable to every one with similar

characteristics facing the same set of circumstances.

y Published The requirements have to be published, in written form, so that they

are accessible to everyone within the society.

y Accepted The requirements have to be generally obeyed.

y Enforced Members of society must be compelled to obey the law if they do not

choose to do so voluntarily.


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The word ethics is derived from the Greek word ethos (character), and from the Latin

word mores (customs). Together they combine to define how individuals choose to

interact with one another. In philosophy, ethics defines what is good for the individual

and for society and establishes the nature of duties that people owe themselves and

one another. The following items are characteristics of ethics:

y Ethics involves learning what is right and wrong, and then doing the right thing.

y Most ethical decisions have extended consequences.

y Most ethical decisions have multiple alternatives.

y Most ethical decisions have mixed outcomes.

y Most ethical decisions have uncertain consequences.

y

Most ethical decisions have personal implications.

It is important to note that there is also a difference between ethics and morality.

Morality refers both to the standards of behavior by which individuals are judged, and to

the standards of behavior by which people in general are judged in their relationships

with others. Ethics, on the other hand, encompasses the system of beliefs that supports

a particular view of morality.

5.2 WhatAre The Punishments For Breaking The Code Of Ethics?

If an organization has disobeyed the ethical code or deviated from it in any way, they

are liable in a court of law. Common corporate crimes committed by companies are:

1. Breaking anti-trust

2. Environmental laws

These kinds of crimes see organizations fined for millions of pounds. It is important forlarge organizations to be fined amounts which are reasonable in terms of how much the

company makes. If a multi-million pound company commits an environmental crime, for

example, mass fly-tipping, they must pay the consequences of perhaps a fine of up to

2 million.


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It is the responsibility of the company to maintain an ethical approach to their

employees the consumer. It is often the case that the public may have to flag up any

ethical problems that become apparent, as it is sometimes easier to see clearly inside

from the outside, as it is to see inside when you are on the inside.

The competitive nature of the global business market means that companies have to set

higher targets, work their employees harder and ultimately make more profit than ever

before.

This however, is problematic because not all business corporations have the time or

resources to ensure that an ethical policy is being followed. Yet considering the heavy

fines that a corporation is likely to be served, it is more important to avoid deviating from

a code of ethics than it is to focus on profit and pay up the fine.

Some well-known examples of unethical behavior demonstrated by corporations are:

MacDonalds using poor quality meat and raising cattle in poor conditions

Primark exploiting sweat shop workers in developing countries

Some coffee shops inadequately paying suppliers who are often from lesseconomically developed countries (LEDCs)

Ethical business is more important for companies who trade oversees, as there are

more implications involved when unethical behavior is demonstrated to another country

and causes its native people physical hurt or financial trouble.

The business world carries many implications for local life on a community level

throughout the world. The Fair Trade Association was established to abolish westernbusinesses and their tendency to take advantage of disadvantaged workers in LEDCs.

If you are employed in a corporation and you think the ethical values are not being

considered in the carrying out of daily tasks, it is important you notify your manager of

this immediately. A fine could be detrimental to the company is it is a small business.


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6 NGOs/Civil Society Groups and Business/Industry

Associations

6.1 Role ofNGOs

Non-governmental or third sector organization (NGOs) have grown rapidly in number,

size and influence in recent decades. This third sector is made up of non-profit-

organization governed by private law and with independent legal status, pursuing

programmers of general interest for the improvement of society in the field of social

welfare and sustainability. Nowadays some are multinational, substituting or partnering

with international bodies and playing a role as economic and political actors on the

international stage, where they often set agenda.

The rapidly increasing number of NGOs and their growing influence has made them key

player in society, which demands responsibility and accountability. NGO has led other

agents (government, companies, unions and public opinions) to question their

legitimacy. Their rapid growth has outpaced the ability of many governments to

effectively regulate the areas in NGOs operate. Even in countries with proper regulation,

self-regulation is seen as a way of going beyond the legal minimum to promote higher

standards of governance and accountability. NGOs need to maintain societys trust and

to do diversify source of funding and attract other donor makes self-regulation a

necessity.

Self-regulation can be achieved in many different ways along a continuum between two

extremes: Code of conduct are self regulatory mechanisms where groups of

organizations agree on standard governing their conduct, with each promising to abide

by established norms.


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6.2 Role of Civil Society Groups

Let me begin my remarks with a working definition of civil society. Civil society is vast

terrain, populated by a bewildering array of organizations, interests and actors that lie

between the family/household and the state. It includes, but is not co-extensive with

non-governmental organizations (NGOs) and community-based organizations (CBOs).

Some are progressive, others are conservative; some are civil, others are uncivil.

However, in the context of fostering fighting corruption in bureaucracy and in corporate

world and promoting democracy, it is the civic sub-species of civil society (public

interest advocacy groups, independent publicly and state-owned media, human rights

bodies, environmental groups etc) and the others - in their civic roles (professional

bodies, religious organizations, business associations) that we should be focusing on.

Largely repressed and or marginalized, civil society has played only a limited role in the

fight against corruption in the post-independence period. Its role has been limited

largely to:

1. Exhortations against corruption by religious and other society-based moral leaders;

2. Episodic focus on corruption scandals, often after they had been exposed by political

insiders and other extra-media sources attempting to best their competitors (usually

presented as an affair within the monolithic political party;) and

3. Condemnation of official corruption by middle class professional organizations,

student and trade unions often as part of broad protests against authoritarian rule and

economic mismanagement.

Awareness of the problem of corruption is growing. The desire to curb the canker

appears to be high among domestic and transnational actors. And the partialliberalization of economies and politics in the last decade creates an enabling

environment for civic activism. All of this presents an unprecedented opportunity for

civil society and other non-state agencies - who really represent the main stakeholders

in any scheme of good governance and low corruption environment to play an

enhanced role in the anti-corruption struggles in the country. The question is what role


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can civil society play in the fight against corruption or self-regulation in corporate world?

How may this role be enhanced?

6.3 Business/Industry Association

Business associations in some emerging market economies have succeeded in

influencing governments to adopt one-stop registration for new businesses.

In the Russian Federation, for example, the Business Partnership of Seversk (Tomsk

Oblast), a nongovernmental organization (NGO), has worked with municipal authorities

to increase transparency and to reduce administrative barriers. With input from the

NGO, government authorities simplified procedures for leasing public property, which

included streamlining procedures to resolve disputes and eliminating illegal fees. A

database of federal and local laws and regulations was developed, and the business

community has received training in current laws and regulations related to business

operations and business rights and responsibilities. To facilitate good public

governance, the RBE can adopt standards, procedures, and expectations for

conducting business with government officials and entities as part of its business ethics

program. They should be based on knowledge of and respect for the specific rules that

govern the conduct of public officials. These standards, procedures, and expectationsshould make clear that employees and agents must abide by all laws and regulations,

especially refraining from bribery and other forms of corrupt conduct intended to

influence official decisions.

Responsible business leaders should encourage governments to adopt formal

programs to guide the choices and actions of civil servants through established

standards, procedures, and codes of conduct. These standards and procedures should

address issues such as values of public service, conflicts of interest, use of public officefor private gain, and acceptance of political contributions and bribes. Government

standards and procedures help ensure that government officials uphold the law and

avoid even the appearance of impropriety. Creating clear standards and procedures to

which public officials are held accountable helps instill respect and public confidence in

government institutions. Government officials should be encouraged to go beyond


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simply setting standards and procedures. Civil servants should be hired and assigned

transparently and should receive compensation adequate to support their families

properly without resorting to corruption.

Business leaders must also recognize, however, that good public governance requires

resources. Reasonable civil servant compensation, for example, tends to reduce

corruption, but it must be paid, in part, with the taxes that businesses pay. Failure to pay

business taxes when the government is trying to reform makes reform efforts virtually

fruitless. Being part of the solution to this challenge of developing a market economy

requires paying the enterprises fair share of the cost of government.

There are several obstacles to good public governance, including practices that enable

enterprises to influence government policy improperly. Enterprises operating in many

markets have adopted the practice of forming patron relationships with individual public

officials as a means of securing government contracts and preferential treatment. Many

large and successful enterprises strive to capture the state by securing the passage of

laws or obtaining licenses that benefit them over other enterprises. What many think of

as state capture is the effort of a firm to shape the laws, policies, and regulations of the

state to its own advantage by providing illicit, illegitimate, and non-transparent private

gains to public officials. Such practices may offer short-term gains, but they are a major

source of business risk and market instability.

State capture is also a cause of poor public governance, because decrees issued to

benefit one enterprise or organizations injure the economy as a whole by undermining

competition. An enterprise that engages in state capture has a stake in maintaining

conditions of poor public governance, including weak state institutions and ambiguous

laws and regulations. State capture seriously impedes the development of the rule of

law. It creates conditions under which effective and efficient enterprises support

ineffective and inefficient enterprises. World Bank studies show an association between

state capture and poor governance in emerging market economies.


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To foster stable conditions for economic growth, responsible business leaders should

help establish clearly defined laws and practices regulating how businesses might

influence government decision-making. RBEs conduct their business with government

on a transparent basis. They organize themselves around issues of mutual concern with

other enterprises to lobby the Government under applicable laws and procedures.


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7 TheAdvantages of Behaving Ethically

Several advantages result when companies and their managers behave in an ethical

way.

First, companies known for their ethical behavior enjoy a good reputation.

7.1 Reputation is the trust

Goodwill, and confidence others have in a company such that they want to do business

with it. A company with a good reputation will find it easier to do more business and

obtain resources from stakeholders. Behaving ethically is therefore the economically

right thing to do because it increases a companys profits.

7.2 Consequences

A second reason for companies to behave ethically is because when they dont, the

government (and taxpayers) has to bear the costs of protecting their stakeholdersby

providing laid-off employees with health care and unemployment benefits, bailing out

pension plans gone bust, or seeking compensation for shareholders. If all companies in

a society act socially responsibly the quality of life for people as a whole Increases.

Experts point to Japan, Sweden, Germany, the Netherlands, and Switzerland as

examples. In these countries, organizations act in a highly ethical way towards their

stakeholders. As a result, crime, poverty, and unemployment rates are relatively low,

literacy rates are relatively high, and socio cultural values promote harmony between

different groups of people.


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7.3 Business activity

It affects all aspects of peoples lives, so the way business behaves toward

stakeholders affects how stakeholders will behave toward businesses. You reap whatyou sow, as the adage goes. Everyone agrees that business managers must

understand finance and marketing. But is it necessary for them to study ethics?

Managers who answer in the negative generally base their thinking on one of three

rationales. They may simply say that they have no reason to be ethical. They see why

they should make a profit, and most agree they should do so legally. But why should

they be concerned about ethics, as long as they are making money and staying out of

jail?

Other managers recognize that they should be ethical but identify their ethical duty with

making a legal profit for the firm. They see no need to be ethical in any further sense,

and therefore no need for any background beyond business and law. A third group of

managers grant that ethical duty goes further than what is required by law. But they still

insist that there is no point in studying ethics. Character is formed in childhood, not

while reading a college text or sitting in class.


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8 Conclusion:

No other element in business life can profit so greatly for such a small

investment. Lacking this, no other element can cost business so dearly.

CEOs who commit their companies to ethics have done so in the name of maximizing

long term profits and fostering the health of their organizations. Benefits of an ethics

program include:

1. Providing organizational guidelines for business integrity in turbulent

times.

2. Helping employees deal with ethical issues they face daily on the job.

3. Building solid company teamwork and productivity.

4. Creating an insurance policy to help ensure that company policies

and procedures are legal.

5. Avoiding criminal acts of omission which can lower potential fines.

6. Reinforcing the values associated with quality management, strategic

planning, and diversity management.

7. Promoting a strong public image.

8. Improving society.

9. It is the right thing to do.


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There is already something odd about this question. It is like asking, Why are bachelors

unmarried? They are unmarried by definition. If they were married, they would not be

bachelors. It is the same with ethics. To say that one should do something is another

way of saying it is ethical. If it is not ethical, then one should not do it. Perhaps when

business people ask why they should be ethical, they have a different question in mind:

what is the motivation for being good? Is there something in it for them? It is perfectly

all right to ask if there is a reward for being good, but this has nothing to do with whether

one should be good. It makes no sense to try convincing people that they should be

good by pointing to the rewards that may follow. One should be good because good is,

by definition, that which one should be.

References:

Books:

Business Ethics, Corporate Social Responsibility and Globalization for the Common

Good by KAMRAN MOFID (SHEPHEARD-WALWYN (PUBLISHERS) LTD).

Business Ethics The Law of Rules,workingpaper_19_michael

Website:

http://www.commongood.info

http://www.cobalt-solutions.com

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