SHAHZAD AZEEM (02)

SEHRASH BASHEER(34)

Presented to
Dr. hasan bucha
Business ethics
Ethics definition;

Ethics is the study of what is right or good human

conduct.
Ethics is the science of moral judgment.
What is Business Ethics?
Business ethics is the study of business situations, activities, and decisions where issues of
right and wrong are addressed.
Business Ethics is the evaluation of Business in terms of certain ethical principles and
norms.
Relation between Ethics and
Business Ethics
Ethical theories offer various concepts like
deonticism, utilitarianism, consequentialism,
morality, value and virtues.
Ethical theories provide a set of analytical guidelines
and moral standards.
The building up of ethical models (framework)
about ethical decision-making, ethical audit, solving
ethical dilemmas and so on.
Nature of Business Ethics

Code of conduct
Based on moral and social values
Gives protection to social groups
Provides basic framework
Voluntary
Requires education and guidance
Relative Term
New concept
Importance Of Business Ethics

Broad framework
Trust building
Good social image
Improves and strengthens organizational culture
Strategic value and decision-making goals of a business concern with ethical
beliefs and values rather balance sheet or profit mark up
Sense of empowerment and security
Strong team work.
Code of Conduct in Business
Code of conduct in business is important to organize certain
business activities. These days code of conduct in business is
developed by many business houses and also by the corporate
sector (for example: the code of conduct in business of Jet
airways, Coca Cola Company, Dow etc.)All codes of conduct in
business are based on the core values of the company, its
mission and vision.
Some Major Unethical Business Practices
1. Sexual Harassment at workplaces
2. Forced Labor and Bonded Labor
3. Sweat Shops
4. Discriminations
5. Fraud
6. Theft
7. Corruption
Ethical issues in different business areas

Unethical Practices in Marketing

Ethics of Consumer Issues
Unethical Financial Practices
Ethical issues in Production and Operation Management
Unethical Practices in Accounting
Ethical Issues in Human Resource Management (HRM)
Unethical Practices in IT Industry
Unethical Practices in Marketing
The are some major unethical practices in marketing
Products
Pricing
Packaging
Placing (Distribution)
Promotion (Advertisements)
Ethics of Consumer Issues
The following are the major issues that consumer ethics is now trying to address:
The first and foremost issue is the consumer protection and safety.
Consumer organization is looking after the interest and welfare.
Assurance about product life, product safety, reliability and maintenance.
Disclosure of all necessary and relevant information about the product.
There should be no information asymmetry about the product between
the seller and the buyer.
 Proper marketing and advertisement ethics
for selling products.
Proper product labeling with warnings and
methods of use.
Protection against unfair trade practices and
unfair and false advertisement.
Consumers grievance cells run by the state.
Strong consumer organizations and agencies.
Consumer-seller relations agencies.
Consumers law and policy.
Unethical Financial Practices
share prices artificially raised
Insider trading is a very notorious form of financial practice.
Merger of companies may be a financial stunt
unusual delay in making payments
Different bank account
Financial irregularities
Cooking data or creative accounting
Ethical issues in Production and Operation Management
There are two major areas in POM
Product and its quality
Safety and security working environment
Unethical Attributes of Products
There are seven major unethical and socially unacceptable standards of products:
The product may be unsafe and damaging to health either in the short or in the long run.
The product is not reliable.
The product may be sub-standard.
The service life of the product may be shorter than what is claimed.
The maintenance standard as claimed by the producer may not be correctly stated.
The product may produce unwanted side-effects.
Unethical Working Condition

Many serious diseases like cancer, asthma and bronchitis are job-related.
Noise Pollution
Death due to physical accidents in factories.
To work under the conditions of occupational safety is one of the important rights of workers,
but it is not carefully implemented by POM authorities.
Unhealthy production site, buying of second quality machinery and poor maintenance.
The working conditions and facilities may be inadequate.
Inside and outside pollution by chemical substances.
Unethical Practices in Accounting
Misappropriation by not recording the cash
receipts.
Misappropriation of cash payments.
Misappropriation of goods by wrong
recording.
Window dressing
Ethical Issues in Human Resource Management (HRM)
Discriminatory policies
Firms often do not care for safety, health, job satisfaction and comfortable working environment.
HRM policies may be absent or biased with respect to promotion, recruitment, reward and punishment.
Workers rights and unionism are not looked upon favorably by employers.
While practicing downsizing and lay-offs, sufficient prior notice is not given to employees.
Many firms are engaged in exploiting workers by giving them unjustifiable lower wages.
Sometimes privacy is not allowed and this goes against the women workers.
Forces labors and child laborers are used by many firms.
Unethical Practices in IT Industry
Spreading Viruses
Piracy
Hacking
Hijacking
Spoofing
It involves the replacement, destruction, forging or
corrupting a resource. It is a variation of hijacking.
Infringement of copyright materials
Credit Card Fraud
Account take-over
Phishing