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Term Paper On :

Ethical Business Scenario in Bangladesh with Future


:: Submitted To ::

:: Submitted By ::

Submission Date : 20 January ,2019.

Govt. College of Commerce ,Chattogram.
Term Paper

Ethical Business Scenario in Bangladesh with

Future Potentiality.


At first ,I would like to convey my deepest gratitude to almighty God for giving me
the strength and the compose to finish the task with in the schedule time.
Dissertation is an important part of MBA program as one can gather knowledge.
In this regard term paper has been arrange on “Ethical Business Scenario in
Bangladesh with Future Potentiality.”

And I would like to pay my gratitude to my honorable supervising teacher

MOSHTAQ MUHAMMAD MURAD KHAN (Lecturer, Department of
Management Govt. College of Commerce ,Chattogram) who instructs me in the
right way and proper guidelines for preparing this term paper.
I also acknowledge my indebtedness to Abdul kader akib (founder of ICT School)
,Salma katun (executive at Grammen Telecom Trust ) who extended their
wholehearted cooperation to me despise their huge work load during my practical
orientation .At last I must mention the wonderful working environment and group
commitment of this sector that enake me a lot of deal to do and observe the
banking and other business sector .

The issue of business ethics in Bangladesh is becoming important and not widely studied before. The
study aims to evaluate ethical practices and programs today and for the next ten years with survey
questionnaire applying non-probability purposive sampling. The study includes 43 business
organizations from two largest cities, Dhaka and Chittagong. The results indicate that protecting
reputation is the prime reason for ethical business while corporate scandals and rules and regulations
are the influential business and external environmental factors of ethical practices. The code of conduct
is the main internal ethical aspect for Board of Directors. In addition, the ethics survey and audits are
the most important effectiveness measures of ethical programs. Finally, the findings draw implications
for Ministry of Legal Affairs, regulatory bodies, management and policy makers to adapt multi-multi


Serial No. Page no.

Subject Name
1 1
2 8
Business Ethic in Bangladesh
3 14
Primary and important sources of Business Ethic
4 15
Importance of Ethical Business

7 17
Problem of ethic Business
8 Ethic Business – Practice in Bangladesh 18

with future potential

9 26


1. Introduction

The main objective of the study is to evaluate the ethical practices and programs in business
organizations today and within next ten years. In order to attain the main objective the following

specific objectives have been identified - (1) to know the influential factors in today's business
organizations (2) to identify the best-in-class ethics programs and practices, and (3) to know how
business ethics might move from its current position to next ten years. .


The study is based on primary data collected through a survey questionnaire employing a purposive
sampling technique. The population of the study consists of an e-mail list of senior-level human
resources professionals and individual contributors, supervisors, managers and executives collected
from the database of Bangladesh Society for Human Resources Management (BSHRM). A total of 63
completed questionnaires were distributed through their mail addresses and 46 (76%) were returned
out of which 3 (4.7%) were rejected due to incomplete response, and finally 43 (68.25%) have taken into
account for analysis. The questionnaire consists of eight core questions requiring respondents to rate
multiple items within each core dimension. The response scored on a five-point Likert scale ranging from
1 as not important to 5 extremely important. The survey questions address the below-mentioned
 The importance of business ethics to the organization
 Environmental factors driving business ethics
 Establishing and sustaining a business ethics culture
 Business ethics practices and programs
 Drivers of unethical behavior
 Ethical leadership behaviors
 Business ethics effectiveness measures
 Ethics-related global workplace issues

1.4 Limitations of the study:

1.5 Ethics in literature Review :
The role of ethics and social responsibility as components of business affecting organizational
effectiveness is essential (Singhapakdi et al., 1996). Ethics in business is related to national factors as
well as global perspectives, varies from country to country, and potentially it is affected by many factors
including the strength of legal, business regulation and human characteristics such as ethnicity, gender,
level of education and socio-cultural environment. There is often a International Journal of Business and
Technopreneurship Volume 5, No. 3, Oct 2015 [307-324] 309 conflict between the pursuit of profit and
the exercise of ethical conduct in business as managers pursue profit to maximize returns to investors
and often to maximize their own self-interest. Carr (2004) argues that most executives are mostly
compelled in the interests of their companies or themselves, while negotiating with customers, dealers,
labor unions, or governmental officials. Ahmed (2009) describes this as a moral hazard that arises when
managers are tempted to act in their own self-interest and not those of the principal.

Business Ethics :

Business ethics in Bangladesh :

As Bangladesh is an economy in transition, the evolutionary process of transforming its business ethical
values, norms and moralities has greatly hampered its organizational culture (Hoque, Khan & Mowla,

2013) and development. Business organizations are not yet fully implementing international standards
or codes of ethics, though, Islamic motivation significantly can contributes to the organizational ethics in
Bangladesh (Ather, Khan & Hoque, 2011). In current days, business ethics is a burning issue. A low level
of ethics in the business sector is a part of wider socio-economic and political problems faced by many
countries: often loopholes in legal and business regulation contribute to the corruptions that can
disarray business operations. As the globalization process is in progression, the world begins to
resemble a global village, so business ethics has become an international issue. Business ethic
measurement has been constructed by World Bank (2009) based on ten different component factors for
about 180 countries. It is shown that Singapore having the best ranking while Bangladesh is ranked quite
unfavorably in 119th position. This ranking does not give a good picture of business ethics in the country
and indicates that further improvements in its institutional, structural and policy environments are
needed. In recent years, the issue of business ethics has gained increased attention. Ethics has an
immense impact on the brands and reputations as well as on customer trust and investor confidence.
Hence, the concepts of transparency, good governance, and political reformation have come to the
cultural spotlight of Bangladeshi elites. But there is very little research that has examined ethical issues
in the newly emerging economy of Bangladesh. The study of ethical issues in Bangladesh is important to
understand the views on ethics and ethical management practices. Thus, the prime focus of this study is
to surface the ethical practices and programs among the organizations is desperately felt.

Importance of Business ETHICAL ? :

world of
business is by


5.1 Problem of ethic Business

When does a manager face an ethical issue? According to Ferrell and Fraedrich (1991: 35), “an ethical
issue is a problem, situation or opportunity requiring an individual or organization to choose among
several actions that must be evaluated as right or wrong, ethical or unethical.” Josephson helps us to
understand an ethical issue when he states that conduct has a significant ethical dimension if it involves
dishonesty, hypocrisy, disloyalty, unfairness, illegality, injurious acts, or unaccountability. These
represent at least two ways of thinking about ethical issues managers face. Managers today face many
such ethical issues and these issues may be grouped according to different levels at which they occur.
Managers experience ethical issues at the personal, organizational, trade/professional, societal and
global levels (Carroll, 1996: 145-8). Furthermore, ethical issues may be categorized in a number of
different ways. Vitell and Festervand identify conflicts between companies’ or managers’ interests and
personal ethics. In their study, these issues arise between managers and their conflicts with such
stakeholder groups as customers, suppliers, employees, competitors, law and government, superiors,
wholesalers, and retailers. In terms of specific issues, these same researchers see ethical conflicts arising
in these situations: the giving of gifts and kickbacks, fairness and discrimination, price collusion and
pricing practices, firings and layoffs, and honesty in communications and executing contracts with
investors (Vitell and Festervand, 1987: 114). According to a major report from The Conference Board,
there is widespread agreement that the following constitute ethical issues for managers: employee
conflicts of interest, inappropriate gifts, sexual harassment, unauthorized payments, affirmative action,
employee privacy, and environmental issues (Berenbeim, 1987: 3). In this same report, CEOs reported
specific topics which constituted ethical issues for them, which were categorized as follows:
• Equity: Executive salaries, comparable worth, product pricing
• Rights: Corporate due process, employee health screening, privacy, sexual harassment, affirmative
action/equal employment opportunity 93 RIC (85 - 100) Anton Jamnik The Challenges of Business ethics:
The Basic Principles of Business Ethics
• Honesty: Employee conflicts of interest, security of employee records, inappropriate gifts,
unauthorized payments to foreign officials, advertising content
• Exercise of corporate power: Political action committees, workplace/product safety, environmental
issues, disinvestment, corporate contributions, closures/downsizings Finally, Waters, Bird and Chant
(1986: 375), provide us with insights into what managers consider to be ethical issues based on their
research using open-ended interviews with managers in a variety of organizational positions. In
response to the question “What ethical questions come up or have come up in the course of your work
life?” the following ethical, or moral, issues were identified most frequently:
• With respect to employees: feedback about performance and standing; employment security;
appropriate working conditions
• With respect to peers and superiors: truth-telling, loyalty and support • With respect to customers:
fair treatment, truth-telling, questionable practices, collusion
• With respect to suppliers: fair/impartial treatment, balanced relationship, unfair pressure tactics,
truth-telling • With respect to other stakeholders: respecting legal constraints, truthtelling in public
relations, stockholder interests

6.1 ACI Limited

6.3 Unilever Bangladesh Limited :

Women Development and Women Empowerment:

Figure 3- Customer Response with company on Significant Contribution toward
Ethical business Marketing


Carroll, Archie B. “Stakeholder thinking in three models of management morality: a perspective with
strategic implications.” Understanding stakeholder thinking (1995): 47-74 Carroll, A. B., Business and
Society: Ethics and Stakeholder Management, 3rd edn. Cincinnati: SouthWestern Publishing
Co./International Thompson Publishing. 1996.