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INDUS INTERNATIONAL UNIVERSITY

ASSIGNMENT NO. 2

Student Name: _____________ ___________________ Course: MBA

Student Roll No : Semester Faculty : II : vishal

Subject: Business ethics and corporate governance chauhan Issue Date: 2nd April Marks

Return Date : Assignment Weightage: 10

PURPOSE:-

The assignment is designed to assess what students have learnt over last three weeks.
ASSIGNMENT OBJECTIVE/ OBJECTIVES;-

The objective behind the assignment to make students aware of ethics and its influence on governance and working culture of organization.. Assignment Question: Task 1: example. Task 2: Take TCS and INFOSYS as a subject of study and try to find out Governance is reflection of ethics. Justify statement with the help of

best among them from ethical/governance point of view.

The maximum length of each Task should be six (6) pages 1.5 spaced, with 1 inch margins and 12 point Time new roman font.

ASSESSMENT GUIDANCE:-

Individual or in group? To obtain 40%:To obtain 50%:To obtain above 60%:-

Individual Presentation Presentation + Interpretation Presentation + Interpretation + Innovation

COMMENTS:Criterion (Grade): Excellent Poor Excellent Poor Excellent Poor Excellent Poor Yes No Well Focused Relevant Good Satisfactory

Presentation:

Good

Satisfactory

Interpretation:

Good

Satisfactory

Innovation:

Good

Satisfactory

Adequate reference to sources:

Relevance of Content: Irrelevant

Marks/Grades Obtained:-____________________

Faculty Signature

Date:-______________

INDUS INTERNATIONAL UNIVERSITY

Task:-1 Business ethics


Business ethics is the application of general ethical principles to business dilemmas and encompasses a broader range of issues and concerns than laws do, as everything that is legal is not ethical. Ethics involves learning what is right or wrong, and then doing the right thing -- but "the right thing" is not nearly as straightforward. objectives relates to a number of wider ethical and societal considerations. It is the application of best management practices, compliance of law in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders. Corporate governance is all about "promoting corporate fairness, transparency and accountability." Any corporation's growth to a great extent depends on the sense of direction and purpose of the board. Corporate governance is concerned with the ownership, control and accountability of companies, and how the corporate pursuit of economic objectives relates to a number of wider ethical and societal considerations. It is the application of best management practices, compliance of law in true letter and spirit and adherence to ethical standards for effective management and distribution of wealth and discharge of social responsibility for sustainable development of all stakeholders. Good Corporate Governance is key to Growing Profits and Reputation. It represents the relationship among stakeholders that is used to determine and control the strategic direction and performance of organizations. Corporate Governance deals with the questions: (1) who benefits from corporate decisions/senior management actions? (2) Who should benefit from corporate decisions/senior management actions?

There are a number of reasons why businesses should act ethically.

As behavior is based on values priorities, a mutual effort at all levels to deal with corporate ethics begins with a clear understanding of core values, both individually and organizationally. Good corporate governance begins with a company's own internal practices and policies. While corporate governance issues are common across organizations, each company requires governance principles that are unique in their approach. Good governance is, ultimately, most important for continued growth and prosperity. Corporate governance ensures that long term strategic objectives and plans are established and that the proper management structure is in place. Corporate Governance represents the moral framework, the ethical framework and the value framework under which an enterprise takes decisions. In the long run ethical behavior has a positive impact on the company's performance. With the growing strength of consumer movements and rising levels of awareness among stakeholders, corporations are realizing that stakeholders and consumers are no longer indifferent to unethical practices like financial irregularities, tax-evasion, poor quality products and services, kick-backs, non-compliance with environmental issues. For example-

Good Corporate Governance is key to Growing Profits and Reputation. It represents the relationship among stakeholders that is used to determine and control the strategic direction and performance of organizations. Accountability is a key element as well as requirement for corporate governance, fortifying the latter in such a way that it provides a transparent template for governing critical decisions, procedures, and activities. Organizations frame corporate codes that lay down ethical standards for employee behavior. The development of a corporate code involves identifying the key behavior, reviewing the codes containing the key behavior, communicating by distributing copies of the code and, finally, updating the codes according to the laws and regulations. Once the code is developed, it has to be implemented. An approach proposed for implementing the corporate code involves organizational structure, coordination, motivation and communication. If an organization develops a corporate code to guide the behavior of its employees, and if the company's' Espoused and Values in practice are aligned then the organization can be termed as ethical organization.

Many Indian companies like Tata group and Infosys have recognized the importance of integrity, transparency, and open communications. The ethics of the chief mentor of Tata group, Ratan Tata is an ethical person so as the corporate governance of the company is also very good. Today, investors want to ensure that the companies they invest in are not only managed properly, but also have proper corporate governance. They regard corporate governance as a control mechanism that ensures the optimum use of the human, physical and financial resources of an enterprise By reading all these concepts we can say that corporate governance is the reflection of business ethics. Business ethics means ethical value in business and governance corporate them in a firm or company by the help of code of conduct.

TASK:-2
TCS :TCS embodies the Tata groups philosophy of building strong sustainable businesses that are firmly rooted in the community and demonstrate care for the environment. The elements that make for strong corporate sustainability at TCS include the following:

A fair, transparent and value-driven corporate governance A strong strategy for longer-term business growth Best-in-class HR processes

At the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate.

Core values
Tata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five core Tata values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve. Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide. Unity: We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

National interest
The Tata group is committed to benefit the economic development of the countries in which it operates. No Tata company shall undertake any project or activity to the detriment of the wider interests of the communities in which it operates.

Equal opportunities employer


A Tata company shall provide equal opportunities to all its employees and all qualified

applicants for employment without regard to their race, caste, religion, color, ancestry, marital status, gender, sexual orientation, age, nationality, ethnic origin or disability. Human resource policies shall promote diversity and equality in the workplace, as well as compliance with all local labor laws, while encouraging the adoption of international best practices.

Gifts and donations


A Tata company and its employees shall neither receive nor offer or make, directly or indirectly, any illegal payments, remuneration, gifts, donations or comparable benefits that are intended, or perceived, to obtain uncompetitive favors for the conduct of its business. The company shall cooperate with governmental authorities in efforts to eliminate all forms of bribery, fraud and corruption.

Health, safety and environment


A Tata company shall strive to provide a safe, healthy, clean and ergonomic working environment for its people. It shall prevent the wasteful use of natural resources and be committed to improving the environment, particularly with regard to the emission of greenhouse gases, and shall endeavor to offset the effect of climate change in all spheres of its activities

Quality of products and services


A Tata company shall be committed to supply goods and services of world class quality standards, backed by after-sales services consistent with the requirements of its customers, while striving for their total satisfaction. The quality standards of the companys goods and services shall meet applicable national and international standards.

Use of the Tata brand


The use of the Tata name and trademark shall be governed by manuals, codes and agreements to be issued by Tata Sons. The use of the Tata brand is defined in and regulated by the Tata Brand Equity and Business Promotion agreement. No third party or joint venture shall use the Tata brand to further its interests without specific authorization.

Ethical conduct
Every employee of a Tata company, including full-time directors and the chief executive, shall exhibit culturally appropriate deportment in the countries they operate in, and deal on behalf of the company with professionalism, honesty and integrity, while conforming to high moral and ethical standards. Such conduct shall be fair and transparent and be perceived to be so by third parties. Every employee of a Tata company shall preserve the human rights of every individual and the community, and shall strive to honour commitments.

Securities transactions and confidential information


An employee of a Tata company and his / her immediate family shall not derive any benefit or counsel, or assist others to derive any benefit, from access to and possession of information about the company or group or its clients or suppliers that is not in the public domain and, thus, constitutes unpublished, price-sensitive insider information.

Reporting concerns
Every employee of a Tata company shall promptly report to the management, and / or third-party ethics helpline, when she / he becomes aware of any actual or possible violation of the Code or an event of misconduct, act of misdemeanor or act not in the companys interest. Such reporting shall be made available to suppliers and partners, too. Any Tata employee can choose to make a protected disclosure under the whistleblower policy of the company, providing for reporting to the chairperson of the audit committee or the board of directors or specified authority. Such a protected disclosure shall be forwarded, when there is reasonable evidence to conclude that a violation is possible or has taken place, with a covering letter, which shall bear the identity of the whistleblower.

Infosys Foundation
We are committed to contributing to the society and established the Infosys Foundation in 1996 as a not-for-profit trust to support our social initiatives. The Foundation supports programs and organizations devoted to the cause of the destitute, the rural poor, the mentally challenged, and the economically disadvantaged sections of the society. The Foundation also helps preserve certain cultural forms and dying arts of India. Grants to the Foundation aggregated Rs. 19 crore during the fiscal year 2007, as compared to Rs. 13 crore in the previous year.

SOCIAL CONTRACT Our social contract inspires more than 130,000 employees to contribute to community welfare, environment sustainability and digital literacy.In 2010-11, Infosys organized several programs, enabling employees to give back to the society: Emergency aid Our employees donated US$ 259,695 towards rehabilitating victims of the earthquake in Tohoku, Japan. The Infosys USA Foundation donated US$ 50,000 to the Leggett & Platt Benevolence Fund to support victims of the tornado that struck Joplin, Missouri. Digital empowerment Infosys initiates children into Information Technology through the spark program. Since 2008, it has touched the lives of more than 350,000 students across India by undertaking IT training and mentoring teachers of government-aided schools in rural areas. Shaping policies Members of the board of directors of Infosys serve on global councils and contribute to policy making in corporate governance, education, healthcare, diversity, and the environment. Infosys was a delegate of the World Business Council for Sustainable Development (WBCSD) at the UN COP-16 climate change conference in 2010. We are involved in the People Matter project where CEOs share their experiences of talent and sustainability. Promoting education and research The Infosys USA Foundation supports the New York City (NYC) Science Education Initiative to spread science and math literacy among students of underserved communities. The Foundation provided a grant of US$ 380,000 to the New York Academy of Sciences for implementing the program in New York schools and Citizen Schools of New Jersey. Project Genesis bridges the skills gap among undergraduate students across tier 2 and 3 towns in seven states of India. In 2010-11, the project mentored over 2,500 teachers who imparted training to more than 85,000 students. Through reading all the data or information about corporate ethics these companies we can say thats TCS has better corporate /ethical values. We cant says thats Infosys company has not good ethical value but is comparative manner we say that TCS is better