Business Ethics

Prof. Rashmi Nadange

What is ethics ???

 Why People / Business want to be ethical: Why people behave unethically / What are the roots of unethical behavior: How companies observe ethics in their organization:

 Derived from the word Ethikos

Business Ethics

Course of behavior considered correct:

What is Business Ethics - application of general ethics ideas to business. Business ethics is the art and discipline of anything ethical principles to examine and solve complex moral dilemmas helps to assess the benefits and problems associated with different ways of managing ethics in management
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 What is not Business Ethics:

Ethics is not synonymous with law: Ethical standards are different from cultural traits: Ethics is different from feelings:

Imp Code of Conduct for manager

Integrity:
Impartiality: Responsiveness to the public interest :

Honesty:
Transparency:
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Need of Business Ethics

Supplier Relationship:
Employee Relationship: Customer Relationship:

Benefits of Business ethics

Improvement in society:
High Productivity and good team work: Ethical education:

Strong Public image:

Acts as an Insurance:
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 Morality and Law: Morality and Etiquette:

WORK ETHICS

Work Ethics
Tom wants to go to the opening game of the baseball season, but he is scheduled to work. Should he telephone his employer to tell her that he is sick so he can go to the game? What is the right decision? Carla needs a computer disk to work on a school project. Should she take a disk home from her job? What is the right decision? Sue goes shopping during her lunch break and extends her break from a half hour to an hour and a half. Should she report on her time card that she has worked a full shift? What is the right decision?

Activity
Manager (encourages each person to contribute) Recorder (writes down the answers to the discussion sheet) Reporter (reports the answers to the larger group)

Corporate Social Responsibility (CSR)

The impact of a companys actions on society Requires a manager to consider his acts in terms of a whole social system, and holds him responsible for the effects of his acts anywhere in that system

.operating in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business.

The four faces of Social responsibility

PUC

Illegal

legal

Working Condition

Irresponsible

A B

C D

Responsible

Spectrum of CSR
Good CSR

Poor CSR
No employment No concern for indirect effect (land, water, air) Destruction of agricultural land Not willing to listen to other stakeholders Appropriate of land not being compensated Non compliance of rule of land

Taking care of workers Low dependence on non renewable resources High awareness about CSR initiatives Land compensation Increased monitoring system Environment responsibility

Levels of CSR
Social Obligation Meet minimum regulations, do what is required by law, no more Social Responsibility Go beyond what is required by law, mitigate negative effects Social Responsiveness Proactive approach, promote positive change

Levels of CSR: Example in Labour Markets

Social Obligation

Social Responsibility

Social Responsive

Comply with wage and working time laws, minimum benefits

Provide added labour benefits

Improve quality of work life

Arguments For CSR

The rise of large corporations has created social problems and they should be responsible for solving these problems Protects business self-interest Prevents unethical conduct which can have serious reputation and financial costs Public strongly supports it

Arguments Against CSR

Social issues are not the concern of businesses Managers do not have the expertise to make social decisions they are oriented towards finance and operations Business already has enough power if given decision making power in the social domain, businesses will be given too much power The ability to compete in a global market place could be limited

Long term social responsiveness

Pro-active responsiveness : Reactive responsiveness :

CSR Management: PDCA method

Plan Do

Consult stakeholders
Establish code of conduct Set targets

Establish management systems and personnel

Promote code compliance

Act

Check

Corrective action Reform of systems

Measure progress Audit Report

Different aspects of Enterprise Social responsibility

Economic Responsibility
Legal Responsibility Ethical Responsibility

Reactive

Pro- active
Discretionary Responsibility D

Corporate Actions Toward Social Demands

Obstructive Defensive : Do Only What is Legally Required Accommodative : Accept Ethical Responsibility Proactive

Shelling out money for CSR OR Ethical business

Supply Chain Management

Importance's of Supply chain :
Supplier Manufacturer Distributor Customers

The majority of the staff contribute directly or indirectly to the Supply chain performance Few have been formally trained in the areas of SCM

Need

Most firms dont see cross functional, cross organizational perspective

Perception of few career options in SCM

Poor collective supply chain performance

Training Staff as Supply chain professional is crucial

Dr vn brims & Supply Chain Foundation

Motto : Enrich professional lives (among Supply Chain Professional) Vision: Provide a global environment for enhancing the recognition of supply chain professional

Goals:
Provide supply chain & leadership qualification ensure the professional and academic recognition of skills in SCM Enable high standards of training for Supply Chain Professional Provide specialized recruitments services for supply chain professional Offer professional networking services of supply chain professional

CREDENTIALS

Courses
Course Guided learning hours Training hours Award

Level 2 SC Award Level 2 SC Award

Foreign Language studies

Duration

Three, Six & vacation batches

Commencement
Schedule Contents

January, April , July & September

weekday & weekend Interactive classroom sessions include group activity & role plays

EpMBA Pharma & General Management

Duration Commencement Schedule Experience Contents Minimum 2 years General Management 1 year two Semesters

Case study
The BIG BULL Damayanti group