BUSINESS ETHICS

WHAT IS ETHICS?

 Ethics are principles that explain what is right or

wrong, good or bad, and what is appropriate or
inappropriate in various settings.
 It is a code of conduct that guides an individual
while dealing with others. It relates to the social
rules and cardinal values that motivate people to
be honest in dealing with others.
 IMPORTANCE OF ETHICS
 Ethics corresponds to basic human needs.
 Values create creditability with public.
 Value gives creditability to management.
 Values help better decision making.
 Ethics and profits.
 Law cannot always protect society.
 WHAT IS BUSINESS
ETHICS?
 Business ethics is a form of applied ethics that
examines ethical principles and moral or ethical
problems that arise in a business environment.
 It provide standards or guidelines for the conduct
and decision making of employees and
managers.
 Although we may different have different ethical
standards in different countries, still we have
certain values common worldwide.
 NAME A FEW SUCH ETHICAL
CORE VALUES FOR BUSINESS

 TRUST
 HONESTY
 FAIRNESS
 DIGNITY AND RESPECT FOR HUMANITY
 RESPECT FOR LAW
 RESPECT FOR PROPERTY
 FREEDOM AND AUTONOMY
 OBJECTIVITY
 COMPASSION
 CASE STUDY: BHOPAL GAS
TRAGEDY

 Spreading of poisonous
Gas.

 Effect of gas on people.

 Main reason of spreading of poisonous gas. MIC in the tank

was filled to 87% of its capacity while the maximum
permissible was 50%. MIC was not stored at zero degrees
centigrade as prescribed
 Report submitted to UC officials. The report
described the surroundings of the site as
being ‘strewn with oily old drums, used
piping, pools of used oil and chemical waste
likely to cause fire.’

 In the autumn of 1983, there was shutting

down of the principal safety systems in the
plant.
 EFFORTS TO OVERCOME
TRAGIC EVENT
 Initially, the Government of India filed a
compensation lawsuit against the UCC for an
estimated US$3 billion.

 In December 1986, UCC filed a countersuit against the

Government of India and the State of Madhya Pradesh.

 One of the strategies employed was that of ‘corrective

action’ and this formed a part of the UCC’s document
titled “Safety Emphasized”.
 THE SETTLEMENT

 On February 14, 1989, the Supreme Court

directed UCC to pay up US $ 470 million in
“full and final settlement” of all claims,
rights and liabilities arising out of the
disaster. The Supreme Court of India ruled
that the $470 million settlement was “just,
equitable and reasonable.”
 CONCLUSION
 Growing Awareness

 Help To Both Faculty And Students

THANK YOU