The terms ‘ethics’ and ‘business ethics’ are two different aspects.
ETHICS : Ethics is a branch of philosophy which is concerned with human character and conduct. Under the study of ethics, we consider what things are good or bad and about what actions are right and wrong.
BUSINESS ETHICS: Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment.
It is optional for an organisation to be ethical because it only relates with the moral values. Ethics play a vital role in each and every phase of the business like
ETHICS : Ethics is a branch of philosophy which is concerned with human character and conduct. Under the study of ethics, we consider what things are good or bad and about what actions are right and wrong.
BUSINESS ETHICS: Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment.
It is optional for an organisation to be ethical because it only relates with the moral values. Ethics play a vital role in each and every phase of the business like
- production
- Human Resource
- Finance
- Marketing
Ethics are needed in production to ensure that the production function or activities are not damaging to the consumers or the society.
Ethical Issues in Production : Nowadays it is very difficult for an organisation to survive in the competitive market. It can make its place by adopting ethics as it adds to the reputation. Following are the ethical issues in production:
- Good quality products attract large volume of customers.
- It increase the faith and loyalty of customers.
- It increases the sale of that product.
- The increased sales raise the profit margin of the company.
Unethical Issues of Production : One of the most important characteristics of the business is that there is a great degree of interdependence between various business functions. In order to survive in the competitive sphere organisations, some organisations try to reduce their cost involved in production processes. It ultimately leads to harmful consequences. Following are some factors of unethical practices of the production:
- Technological advancements like genetically modified food, radiations from mobile phones, etc.
- Defective services and products like alcohol, tobacco, fast motor vehicles, chemical manufacturing, etc.
- Production also increases pollution, global warming, water toxicity and depletes natural resources.
HRM
Human resource management is a management function that helps manager in plans,recruitment,selection,training,development,
remuneration,and maintaining the members of organisation.
Ethical issues in HR
Employee Responsibility: Organisation also have responsibility of their employer,as an employee you have a duty of care,responsibility of safety at work place,ensuring workers receive sufficient,information, ,instruction and training in the work place that the work may be required to perform.
Restructu
Employee Responsibility: Organisation also have responsibility of their employer,as an employee you have a duty of care,responsibility of safety at work ring and lay offs: It is temporary suspension or permanent termination of employment of an employee or more commonly group of employee for corporate reason such as personnal management or downsizing an organization.
Performance Appraisal: Ethics should be considered on the basis of performance appraisal. Highly ethical evaluations demands the honest assessment of the performance and steps should be taken to improve the effectiveness of employee.
.
Cash and incentives plans: cash and incentives plans should be includes the basic issues like salaries, bonus, annual increment, or incentives, executive perquisites,and long term incentives plans.
Employees discrimination: A frame work of laws and regulation has been evolved to avoid the practice of treatment of employee on the basis of their caste,gender,religion,age,disability,etc . there should be no discrimination with the worker.
Unethical issues in HR
There are following unethical issues in human resource management which is listed below.
Misusing company time : Whether it is covering for someone who shows an update or altering a time sheet , misusing company time top list . This category includes knowing that one of your worker is receiving personal business during company time.
Abusive behavior : There are many workplace where are so many managers or supervisors who use their power and position to mistreat the workers or disrespect them. Unfortunately, the situations are involved in discrimination,race,gender,etc. Often there is no legal protection against such an abusive behavior in the workplace.
Employee theft : According to recent study by Jack L.Hayes International, one out of every 40 workers in 2012 was caught stealing from their employer. Employee fraud is also on the uptick ,whether its checking ,tempering, not recording sales in order to skim etc.
The FBI recently reported that employee theft is the fasting growing crime in the U.S today.
Lying to employee : The bad way to lose the believe of their your employee is to lie them. Yet , workers do it all the time.One of out of every 10 employee report that their manager and supervisor had lied to them within the past year.
Human resource management is a management function that helps manager in plans,recruitment,selection,training,development,
remuneration,and maintaining the members of organisation.
Ethical issues in HR
Employee Responsibility: Organisation also have responsibility of their employer,as an employee you have a duty of care,responsibility of safety at work place,ensuring workers receive sufficient,information, ,instruction and training in the work place that the work may be required to perform.
Restructu
Employee Responsibility: Organisation also have responsibility of their employer,as an employee you have a duty of care,responsibility of safety at work ring and lay offs: It is temporary suspension or permanent termination of employment of an employee or more commonly group of employee for corporate reason such as personnal management or downsizing an organization.
Performance Appraisal: Ethics should be considered on the basis of performance appraisal. Highly ethical evaluations demands the honest assessment of the performance and steps should be taken to improve the effectiveness of employee.
.
Cash and incentives plans: cash and incentives plans should be includes the basic issues like salaries, bonus, annual increment, or incentives, executive perquisites,and long term incentives plans.
Employees discrimination: A frame work of laws and regulation has been evolved to avoid the practice of treatment of employee on the basis of their caste,gender,religion,age,disability,etc . there should be no discrimination with the worker.
Unethical issues in HR
There are following unethical issues in human resource management which is listed below.
Misusing company time : Whether it is covering for someone who shows an update or altering a time sheet , misusing company time top list . This category includes knowing that one of your worker is receiving personal business during company time.
Abusive behavior : There are many workplace where are so many managers or supervisors who use their power and position to mistreat the workers or disrespect them. Unfortunately, the situations are involved in discrimination,race,gender,etc. Often there is no legal protection against such an abusive behavior in the workplace.
Employee theft : According to recent study by Jack L.Hayes International, one out of every 40 workers in 2012 was caught stealing from their employer. Employee fraud is also on the uptick ,whether its checking ,tempering, not recording sales in order to skim etc.
The FBI recently reported that employee theft is the fasting growing crime in the U.S today.
Lying to employee : The bad way to lose the believe of their your employee is to lie them. Yet , workers do it all the time.One of out of every 10 employee report that their manager and supervisor had lied to them within the past year.
Marketing
Marketing management is the process of developing strategies and planning for product or services,advertising, promotion, sales to reach desired customer satisfaction.
Ethical issues in marketing
Market Research
Market audience
Ethics in advertisement and promotion
Delivery channels
Deceptive advertising and ethics
Anti competitive practices
Using ethics as a marketing tactics
Unethical issues in Marketing
Finance 
It is defined as the management of money and which involves the activities like investing,lending,budgeting,forecasting,savings,
borrowing.
Ethical issues in finance
Financial statement : Fictitious revenue
Journal should be prepare on chronological basis
concealed assets and liabilities
swindling in asset valuation.
Improper disclosure of statement
For example: The Satyam computer service scandal
Financial marketing : Deception : an act of misinterpret the appropriate information.
Churning : It is a practice by stockbrokers of buying and selling a client investment
more often then necessary in order to make more profit in commission.
Unfairness in market
Unworthiness
For example : Harshad Mehta Scam
Insider trading : It is defined as essentially denotes dealing in a company's securities on the basis of confidential information relating to the company which is not published or not known to the public used to make profit or loss
Hostile takeover : Hostile takeover is an accession in which the company being acquired doesn't want to b purchased by the particular purchaser that is making a offer. How can someone can purchase something which is not for sale ?
hostile takeovers only work with publicly traded company.That is , they have issued stock that can be bought and said the stock in market.
Unethical issues in finance
Marketing management is the process of developing strategies and planning for product or services,advertising, promotion, sales to reach desired customer satisfaction.Ethical issues in marketing
Market Research
Market audience
Ethics in advertisement and promotion
Delivery channels
Deceptive advertising and ethics
Anti competitive practices
Using ethics as a marketing tactics
Unethical issues in Marketing
- Making false, unaggerated, or unverified claims'
- Distortions of facts to mislead or confuse potential buyers.
- Sad mouthing rival product.
- Using fear tactics.
- Exploitation
- Spamming
- Pla of marketing message
- concealing dark sides or side effects of product and services
It is defined as the management of money and which involves the activities like investing,lending,budgeting,forecasting,savings,borrowing.
Ethical issues in finance
Financial statement : Fictitious revenue
Journal should be prepare on chronological basis
concealed assets and liabilities
swindling in asset valuation.
Improper disclosure of statement
For example: The Satyam computer service scandal
Financial marketing : Deception : an act of misinterpret the appropriate information.
Churning : It is a practice by stockbrokers of buying and selling a client investment
more often then necessary in order to make more profit in commission.
Unfairness in market
Unworthiness
For example : Harshad Mehta Scam
Insider trading : It is defined as essentially denotes dealing in a company's securities on the basis of confidential information relating to the company which is not published or not known to the public used to make profit or loss
Hostile takeover : Hostile takeover is an accession in which the company being acquired doesn't want to b purchased by the particular purchaser that is making a offer. How can someone can purchase something which is not for sale ?
hostile takeovers only work with publicly traded company.That is , they have issued stock that can be bought and said the stock in market.
Unethical issues in finance
- Deliberate abnormal delays in payments to (a)vendors (b)dealers, commissions and promotions costs.
- Delay in paying wages, interest to financier,investives,bonus to employers.
- Holding up bills of vendor on silly reasons and ultimately buying from others to avoid payments to earlier'
- Cheating employee of their dues towards medical expenses,leave travel,assistance,children education fee etc.
