Presentation on Ethics in Business

Prepared by : CA Sandeep Kotriwal

ACA, A.CS, B.Com

Business Ethics - Meaning

Ethics in business is simply the application of everyday moral or ethical norms to business.

Acting with an awareness of how the products and Services of an organization, and the actions of its employees, can affect its stakeholders and society as a whole, either positively or negatively.

Who is responsible for ethics in the company?

“Everyone”

Ethics @ Workplace

reward employees fairly based on their qualifications and performance (Avoiding Discrimination)

provide all employees with equal opportunities to training and skills development;

respect the privacy of all employees and safeguard the confidentiality of employee information; and

not tolerate behaviour which is tantamount to any form of harassment in the workplace

On-the-Job Ethical Dilemmas

Honesty & Integrity

“Telling the truth and adhering to deeply felt ethical principles in business decisions”

Whistle blowing

“Employee’s disclosure of illegal, immoral, or unethical practices in the organization”

Loyalty versus Truth

“Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise”

Conflict of Interest

“Conflicts of interest are situations where employees may make decisions based on personal gain rather than the best interests of Company.”

Environmental Ethics

understand the environmental impact

principles of sustainable development

implement and maintain comprehensive environmental policies

be transparent about and accountable for environmental performance;

refrain from doing business with third parties who do not conduct their business in an environmentally responsible manner; and

require all our business partners to have appropriate systems to safely handle hazardous materials.

Adherence to Law

“All employees shall act in accordance with the Law of the jurisdictions in which Company’s conducts its business.”

Ethics in Accounting

“Company’s books, records and accounts are to reflect accurately and fairly, in detail all transactions and acquisitions and dispositions of assets in accordance with the highest standards of integrity and generally accepted accounting principles.”

Promotion of Fair Competition

“The Company should strongly believes in a free market economy and embraces fair competition.”

Relationships with Governments

“The Company Should respect the authority of the governments in the countries in which it conducts its business. It is therefore imperative that employees maintain an honest, transparent and ethical relationship with the government, their agencies, officials and personnel”.

Corporate Social Responsibility

“CSR is the continuing commitment by businesses to behave ethically and contribute to the economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”

Cultural Sensitivity

“As representatives of Company, all employees should be aware, when dealing with business partners in other countries and/or when visiting other countries with family members that their behaviour is a reflection on Company and are therefore expected to familiarise themselves with the norms, laws and customs of the respective countries and abide thereby”

How Organizations Shape Ethical Conduct??

Ethical AwarenessCode of Conduct Formal statement that defines how the organization expects and requires employees to resolve ethical questions.

Ethical ReasoningCodes of conduct cannot detail a solution for every ethical situation, so corporations provide training in ethical reasoning.

Ethical ActionHelping employees recognize and reason through ethical problems and turning them into ethical actions.

Ethical Leadership

“Executives must demonstrate ethical behavior in their actions”

When the situation needs improvement, Gandhi offers guidance: “You must be the change you wish to see in the world.”

Thank you for listening Patiently