Institute of Management Technology

Centre for Distance Learning

A16, Site 3, UPSIDC Industrial Area, Meerut Road, Ghaziabad - 201 003

Subject Code: IMT-49

Subject Name : BUSINESS ETHICS
Objectives
The course intends to present some broader perspective on basic issues in business ethics which are of
relevance to various functions and systems of an organisation.

Contents
1. Ethics and Business : an overview
2. The Ethical Theory
3. Ethical issues related to Employees:
a. Personnel / service contract issues
b. Privacy and confidentiality issues
c. Health and Hygiene issue at work place
d. Employee conduct at work place
4. Ethical issues related to Consumers:
a. Product liability and safety
b. Advertising and Marketing (for the business or products or services)
5. Business and Environment
6. Discrimination at workplace
7. The ethical issues related to Finance and Investment
8. Corporate Governance

References
1. Essentials of Business Ethics, George Chryssides and John Kaler, McGrewHill.
2. Contemporary issues in Business Ethics, Joseph R. Desjardins, John J. McCall, Wadsworth.

Notes:
a. Write answers in your own words as far as possible and refrain from copying from the text books/handouts.
b. Answers of Ist Set (Part-A & Part-B), IInd Set (Part-C, Part-D), IIIrd Set (Short Answer Questions) and Case
Study must be sent together.
c. Mail the answer sheets alongwith the copy of assignments for evaluation & return.
d. Only hand written assignments shall be accepted.

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Subject Code : IMT-49
Subject Name: BUSINESS ETHICS
A. First Set of Assignments: Part-A : 5 Marks & Part-B : 5 Marks. Each question carries 1 marks.
B. Second Set of Assignments: Part-C : 5 Marks & Part-D : 5 Marks. Each question carries 1 marks.
C. Third Set of Assignments: 20 Short Answer Questions : 10 Marks. Each question carries ½ marks.
Confine your answers to 150 to 200 Words.
D. Forth Set of Assignments: Two Case Studies : 10 Marks. Each case study carries 5 marks.

ASSIGNMENTS
PART– A
1. What are the Core values of any society? How business values can be integrated with core values.
2. Discuss with suitable examples Socio-Economic character of Business. How business ethics is an integral
part of business?
3. What are the major principles of ethical powers to individuals? Discuss and cite some examples also.
4. Discuss the concept of right? What does “Distributive Justice” means? Comment.
5. Discuss, what are the major ancient ethical learning’s can be adopted in modern business? Cite some
examples of Gandhiji views on ethical business.

PART– B
1. What are the major factors to be taken into consideration for classifying the” Socially Responsible
Organization”?
2. What are the major ethical issues involved in Multinationals business. Discuss by giving the suitable
illustrations.
3. Thomas Aquinas notes two values necessary for a `good society’, unity and peace. What kind of world
systems would be necessary to ensure unity and peace? Can a `good society’ exist in our present
interdependent but lawless world?
4. What are the major ethical issues involved in false advertising? Discuss with it’s on the society.
5. Discuss the various ethical tests proposed for Corporate Executives. Are these tests essential for checking
the ethical attitude of executives?

PART – C
1. Discuss the need of structural changes for suitable corporate governance is required in any organization?
2. In your opinion, what should be the Codes for effective Corporate Governance? Discuss.
3. What true security needs would a world order system have to satisfy? How could these be managed at a
global level?
4. Carefully examine two advertisements taken from current newspaper or magazines and assess the extent
to which they meet what you would consider adequate ethical standards for advertisers- Give suitable
reasons for your ethical standards.
5. Write a note by citing suitable examples on current status of Social and Ethical accountability in Indian
Business.

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 PART– D
1. Discuss the major ethical issues involved in commercial law of contract? Is “Whistle Blowing” is justified in
certain cases? Discuss and cite some examples also.
2. Why trademark is the most ethical issue in marketing practices? Discuss.
3. “Leaders of Industry – managers as well as trade union leaders – should become the vanguard of new
culture, the culture of work ethic. Set an example of l devotion to duty that will suffuse the entire workforce
through layer by layer progression. The, and then only, we and redeem our obligations to stakeholders”. In
reference to above statement discuss the obligations of business towards stakeholders.
4. What are the various facets of social sciences researches, which may endanger ethics of society? Discuss.
5. What kinds of ethical values are essential for contesting the Lok Sabha Election? Discuss the role ethics in
prevailing political parties.

SHORT ANSWER QUESTIONS

1. Ethics and business.
2. Competition and ethics.
3. Socially ethical organization.
4. Individual and Society.
5. Ethics of Multinationals.
6. Ethics in Marketing.
7. Ethical Issues in Media.
8. The concept of right.
9. Negative and Positive Rights.
10. Sexual Harassments in Workplace.
11. Corporate Governance.
12. Stakeholders of Business.
13. Obligations of Public Enterprises.
14. Scams and Ethical Issues.
15. Ethics of Politics.
16. Distributive Justice.
17. Core Values of Society.
18. Ecological Ethics.
19. Ethics and Computer Piracy.
20. Meaning of “Whistle Blowing”.

CASE STUDY-1
ETHICS AND CULTURE

B
ob Simpson is the managing director in the country of West Penguin for Packway Foods, a U.S. food
processing company with operations in 12 countries. He buys exotic fruits from the large plantation
owners in West Penguin, and Packway Foods has prospered from distributing the rare produce found
only in West Penguin as a result of this association. Of course, there are several other companies that are
anxious to buy the produce as well, but Bob has lived in West Penguin for many years, and has developed a
personal friendship with the half dozen plantation owners who control the entire production of the specialty
crops. He is a good friend with General Rafael Oregon, the unofficial leader of the plantation owners. General
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Oregon also is in charge of the West Penguin military, holds a cabinet post, and has strong ties to the president
of the country.
Although several packing companies have approached the growers, General Oregon has, until now,
convinced the owners to sell only to Bob, due to their special friendship and long business relationship.
General Oregon called Bob in early November, and mentioned in passing that yet another of Bob’s
competitors had just been to see him. He had sent her away, and repeated that the growers were quite happy
with their arrangement with Packway Foods. Oregon also told Bob that his children were coming home from
college over the Christmas holidays. Bob is quite fond of the children, and even helped them obtain
scholarships and admission to Florida State University. Oregon said he was thinking of buying jet skis for his
children as Christmas presents, and he recalled that Bob was a good friend with the local distributor of one of
the best brands available. The General wondered if Bob could call his friend and arrange for a special discount
for him.
Later that day, Bob thought about Oregon’s request. The special arrangement between the growers and
Parkway Foods represents perhaps 35 percent of Packway’s profits. In fact, it is primarily because of the West
Penguin business that Packway has been able to survive and prosper, since they are not nearly as well
financed as many of the other large packing companies. Because of this situation, Bob is truly one of the keys
to Packway’s success and continued financial health.
Oregon had never asked for anything of value for himself in the past. The assistance with the scholarships
had only been a question of good contacts and advice. Bob wondered if the General was asking for help in
obtaining a discount, or for an expensive gift. He also wondered if this would become a regular feature of their
relationship, and if the other growers would follow suit. He especially wondered what to say to his parent
company, or even if he should raise the issue, and he also wondered if they would encourage him to go ahead,
in spite of the U.S. laws restricting such activities.

Questions

1. Develop an effective negotiation process for management situations with possible legal and ethical
implications.
2. What are the major ethical issues involved in this case? Discuss.

CASE STUDY-2
THE FIVE PRINCIPLES OF ETHICAL POWER FOR INDIVIDUALS
PURPOSE: I see myself as being an ethically sound person. I let my conscience be my guide. No matter
what happens, I am always able to face the mirror, look myself straight in the eye, and feel
good about myself.
PRIDE: I feel good about myself. I don’t need the acceptance of other people to feel important. A
balanced self-esteem keeps my ego and my desire to be accepted from influencing my
decisions.
PATIENCE: I believe that things will eventually work out well. I don’t need everything to happen right now.
I am at peace with what comes my way!
PERSISTENCE: I stick to my purpose, especially when it seems inconvenient to do so! My behavior is
consistent with my intentions. As Churchill said, “Never! Never! Never! Never! Give up!”
PERSPECTIVE: I take time to enter each day quietly in a mood of reflection. This helps me to get myself
focused and allows me to listen to my inner self and to see things more clearly.

Questions
1. Read these five principles of ethical power for individuals. Comment how business is different from these
principles.
2. Discuss the significance of these in modern business.

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