�������� Business ethics����

Beginning of ethics

• Ethics is a greeK Word ethos , It means character or mannerS
• Business ethics Are that functions Which leads to choosing Right decision At right time Which leads For the welfare of not only Business owners but also society , stakeholders , consumers And it’s employees

Business ethics

• The value Of what Should be done And what should not be done From the business.
• Business ethics Involve Adhering To Legal , regulatory, professionAl And Companies standardS, keeping promises and commitments And abiding by general principles Like Fairness , truth , honesty and respect .

Importance of business ethics

Control business malpractice

A business malpractice is any activity undertaken by a Worker, individually or on behalf of the Company, which is conducted illegally or without due care to their or the Company’s responsibility to shareholders, customers, workers or local environment.

Control over the business malpractices

Better relations with employees

By maintaining positive, constructive employee relations, organizations hope to keep employees loyal and more engaged in their work

Importance of business ethics

Improves customer satisfaction

When customers are dissatisfied with a purchase, they appreciate it if the company promptly addresses their concerns and takes action to bring about customer satisfaction. In this case, high ethical standards means standing by the promises that were made, spoken or implied, when the customer made a purchase.

Increase profitability

Ethical companies are more profitable for numerous reasons – employees are more productive; employees are less likely to leave a company; consumers respond positively to companies that are perceived as ethical; vendors and suppliers prefer to deal with ethical companies; and ethical companies attract higher talented executives and employees.

Importance of business ethics

Protection of society

Business is one of the most important entities in the society. Its decisions and actions have the potential of creating a change in society, good and bad both. Therefore to not misuse the trust of the society, businesses are bound by business ethics. It means fulfilling the commitments given, undertaking responsibility, not compromising in the quality and to ensure reliability.

Improves business goodwill

Ethical decision-making is based on core character values like trustworthiness, respect, responsibility, fairness, caring, and good citizenship. Ethical decisions generate ethical behaviors and provide a foundation for good business practices.

Common businesses Ethical challenges ���

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Honesty&

integrity

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loyalty Whistle-

Versus truth. Blowing

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Ehical

Challenge

Conflict of

Interest

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An opposition between the private interests and the official or professional responsibilities of a person in a position of trust, power, and/or authority.

Telling the truth And deeply felt Ethical princIples in business decisions

Telling the truth or Being honest With the values Responsibility or promise keeping

Employees disclosure of immoral , unethical or illegal practices in the organisation

factors influencing the business ethics

1. Formal and informal Polices And rules
2. Norms for acceptable behaviour
3. Financial reward system
4. Hiring practices
5. Application of legal behaviour
6. The companies decision making process

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Ethical awareness

Formal statement that defines how the organisation expects and require employees to resolve ethical question .

Ethical education

Code of conduct

Cannot detail a solution for every ethical situation.

So corporations provide

training in ethical

reasoning .

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Ethical action

Code of conduct

Helping Employees Recognize

And reason through Ethical problems and turning them into ethical action.

Ethical leadership

Executives must demonstrate Ethical behaviour in their actions.

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Whistle blowing when an employee informs official or the public about the illegal or ethical violation.

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World’s most ethical companies

Patagonia

Kellogg’s

PepsiCo

Patagonia

• Based In: California, United States�Ethics: Organic cotton, environmental sustainability, Fair Trade certificate�Known For: Outdoor apparel, swimwear�Patagonia easily makes it to the top of any environmental or ethical business list. It’s one of the first outfitters to use recycled materials and organic cotton. �Also, Patagonia is expanding its ethical commitments to fair labor ethics and it works with US factories as often as it can, supporting local economies�The positive impact that Patagonia’s fair trade factories have around the world is often taken as an example of business ethics.

Kellogg’s

• Based In: Michigan, United States�Ethics: Supports farmers, reduces food loss & waste, low-impact packaging�Known For: Cereal, crackers, pastries.�The convenience foods giant from Battle Creek, Michigan continues to set ethics standards for other companies to follow.�Kellogg has one of the smallest plastic packaging footprints among paper food companies, with 76% of its packaging being recycled globally. Their goal is to use 100% sustainable packaging by 2025.�All along its value chain, Kellogg is reducing food loss and organic waste to ensure that as much food as possible goes to feeding people.

PepsiCo

• Based In: New York, United States�Ethics: Racial equality, sustainable agriculture, pay equity, sustainable plastics�Known For: Grain-based snack foods, beverages�PepsiCo is one of those ethical companies that achieve best practices in different fields, such as human rights, sustainable farming, and equal employment opportunities.�Earlier this year, the soft drinks giant announced a more than $400 million initiative over 5 years to empower Black communities and Black representation.�PepsiCo works with over 40,000 farmers through its Sustainable Farming Program. Nearly 80% of its potatoes, whole corn, oats, and oranges are sustainably sourced.

Indian ethical companies

• Three Indian companies have made it to the list of the World Most Ethical Companies in the world for the year 2021. The IT companies Infosys and Wipro and the other one Tata Steel have found the place in honorees. The list was compiled by the American company Ethisphere Institute. As many as 135 companies from 22 countries across the world had represented among which 47 industries have made to the list of World Most Ethical Companies honorees.