Ethical and Unethical Business Practices Business ethics is the most debated topic of our times.

The difference is between doing the right thing and the wrong thing. Business ethics are the philosophical core of any business and their outcome is crucial for economic development. Peter Cooper the great American Investor says "I have always recognized that the object of business is to make money in an honorable manner. I have endeavored to remember that the object of life is to do good." Business ethics are more than moral values and principles that determine our conduct in the business world. It refers to the commercial activities, either with other business houses or with a single customer. They can be applied to all aspects of business; from generation of an idea to its sale. Business uses the society for its resources and functioning, thereby obligating it to the welfare of the society. While the objective of all business is to make profits, it should contribute to the interest of the society by ensuring fair practices. However, greed has led the present business scenario towards unethical business practices, legal complications and general mistrust. Code of Ethics Lot of organizations implement the code of ethics in their company polices, which they implement during induction and regular training. A Code of Ethics is generally a more blanket statement of values and beliefs that defines the organization. So what is it for?

Company's assets, funds and records Conflict of interest Management and employee practices Information on competition

Ethical Business Practices Here are a few ethical business practices that should be followed to build a honest reputation and ensure smooth running of any organization.

Investors: Ensuring safety of their money and timely payment of interest. Employees: Provision of fair opportunities in promotions and training, good working environment and timely payment of salaries. Customer: Complete information of the service and product should be made available. Personal information of the customers should not be used for personal gain. Competition: Unscrupulous tactics, competitor bashing and wrong methods should be avoided while handling competitors. Government: Rules and regulations regarding taxes, duties, restrictive and monopolistic trade practices and unlawful activities like corruption and bribing should be adhered to.

Environment: Polluting industries should ensure compliance with the government norms regarding air, water and noise pollution.

Unethical Business Practices You might find many companies who blatantly thrive on unethical behavior and practices. A free environment is present or promoted where acts of violation of norms to amass wealth in an unethical manner is followed. Following are some of the activities that come under the ambit of unethical practice.

Resorting to dishonesty, trickery or deception. Distortion of facts to mislead or confuse. Manipulating people emotionally by exploiting their vulnerabilities. Greed to amass excessive profit. Creation of false documents to show increased profits. Avoiding penalty or compensation for unlawful act. Lack of transparency and resistance to investigation. Harming the environment by exceeding the government prescribed norms for pollution. Invasion of privacy used as leverage, for obtaining personal or professional gains. Sexual discrimination

Business houses that comply with ethics to determine their conduct are shrinking in number. The lack of business ethics in the market, is the reason the world economy is presently in crisis. Organizations now recognize the positive effects and outcomes of being ethical, humane and considerate. They have a competitive edge in the market, because of the honesty they show in their services. Their morally upright reputation attracts better staff and helps in retention. Though ethics are legally binding in most cases, self-monitoring, transparency and accountability will go a long way in establishing trust of the people. Besides this, it makes sense to change, before you are penalized. When would we as Indians observe ethical business practices in totality? It is a big question but it has a straight simple answer. Each one of us should be accountable and responsible to stop unethical business practices. We must create an environment which adheres to strictest philosophies of clean, transparent, honest business

Environmental Ethics and Corporate Responsibility

A New Issue Businesses Can't Afford to Ignore

The Townie, Yahoo! Contributor Network May 31, 2007 "Share your voice on Yahoo! websites. Start Here."

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FlagPost a comment Environmental ethics is becoming an important issue for many companies and businesses as there is a greater push for corporate responsibility. Leaders of organizations of all sizes and in all sectors face a growing number of issues related to ethical behavior, particularly in terms of environmental responsibility. As global understanding of the significant ecological and environmental ethics issues we face expands and moves to the forefront of debates, it is even more important for leaders to take action to both remedy the causes of the problem and to act as models for other organizations and individuals. Although there are many examples of responsible corporate and organizational environmental governance and behavior, there is yet to emerge a global initiative aimed at changing the face of environmentally ethical and responsible action that will promote further corporate responsibility. This lack of understanding of issues of environmental ethics and corporate responsibility occurs for a number of a reasons, one of which could be because of a lack of global consensus on the importance of taking the necessary steps to remedy the problem. As one scholar notes, "In our pluralistic societies, there is no uncontested common ethical ground in general and no undisputed conception of environmental responsibility in particular" (Enderle 2006) and as a result there is little unified action. If this assessment is valid then it is necessary to first define a clear set of issues and resolutions that organizations and leaders can agree upon. One issue related to environmental ethics in the corporate and organizational sphere is that most will concur is vital for all leaders is that there cannot be any fuzzy distinctions between what is good for business versus what is good for the environment. In other words, the consensus must be that there should be a hierarchy of interests-one which places environmental and sustainability concerns at the peak. "The claim is that the various benefits and harms of development are incommensurable and not easily weighed, involving differences between global and local goodsthe benefits of selling wood fiber for local populations versus the possible global benefits of a potential cure for cancer or a contribution to the reduction in greenhouse gases...Whose interests count for more?" (Light 2002). In short, the interests of the global good should always outweigh those of the short-term monetary or other gains produced by unethical or unsustainable practices and leadership decisions. Leaders in both business and civil society have focused too much on the friction between them and not enough on the points of intersection. The mutual dependence of corporations and society implies that "both business decisions and social policies must follow the principle of shared value. That is, choices must benefit both sides. If either a business or a

society pursues policies that benefit its interests at the expense of the other, it will find itself on a dangerous path (Porter 2006). The bulk of recent peer-reviewed literature on the topic of environmental ethics and corporate responsibility has granted a great deal of focus on matters of ethical behavior in the organizational context. Although there are still several debates about possible courses of action that could and should be followed at the management level, it is generally agreed that "environmental leadership is a collective dynamic, wherein the difference between leaders and followers is based more on degrees of social influence (through words and deeds) than on traditional institutional power differentials" (Egri 2006). In addition, this also suggests another popular paradigm that has emerged that insists that businesses and organizations are increasingly more accountable for their environmentally ethical behavior-both with the organization and in the view of the public at large. With growing global consciousness devoted to understanding and championing issues of environmental sustainability, companies and their practices on such a level can no longer be viewed as separate matters. "The evolution of business and societal concern has led to businesses gradually re-embracing formerly displaced social orientation for both social and environmental well-being" (Panwar 2006). What this means essentially, is that it is even more important for the overall success or failure of a corporation or organization to engage with public concerns and behave in a responsible way, particularly as far as environmental issues are concerned. As Panwar goes on to note, "When pursing [environmentally] ethical investments, individuals and organizations seek out companies with a positive reputation while avoiding companies linked to environmentally damaging practices, oppressive regimes, etc. The increase in environmental ethical investment has encouraged companies to give attention to corporate responsibility"(Panwar 2006). How organizations give this attention, however, is contested. The problem is becoming less a matter of recognizing that environmental ethics issues are present and pressing and more an issue of what to do, leadership-wise and on a metaorganizational level to address these problems. There are various approaches to solving the organizational (and for that matter, national and international) problems surrounding effective and environmentally ethical leadership. The main issue is, however, a lack of coherent ideology surrounding organizational and corporate responses-even if the desire to be more aware of environmental ethics matters exists. For example, according to a survey conducted in December of 2006, "198 medium-sized to large multinationals found that most said they lacked an active approach to developing new business opportunities arising from meeting citizenship and sustainability needs" (Marshall 2007). In order to remedy this crisis, many larger organizations hired corporate responsibility officers to monitor such things as environmental ethics. These individuals were charged with the task of reviewing and analyzing current policy and practices to ensure that the highest ethical standards were being met in a way that was conducive to the organization's mission statement, budget, and overall corporate culture. In short, one approach to solving the ethical demands that increasingly valued by both the public and investors is to ensure corporate responsibility through the hiring of an outside consultant. With larger organizations understanding the value of environmental ethical responsibility, it is natural to assume that smaller entities will take notice and follow suit.

Being an effective and responsible corporate leader is not simply something that is an issue in the organizational context, but it extends to the community level as well. Consider the case of Detroit and its rapidly dwindling reserve of natural areas and resources. In Detroit, an urban ecosystem analysis undertaken by American Forests revealed how land cover changes over the past 11 years have affected environmental quality in a nine-county area of southeast Michigan. "From 1991 to 2002 that region's open space declined by 10 percent while urban areas increased dramatically-21 percent. As a result, the region lost $1 billion in stormwater management services with a corresponding decline in water quality" (Kollin 2006). "The companies were rated on their ability to provide good jobs for employees, environmental sustainability, and healthy community relations" (Mirren 2006).