Ethics

Meaning
The overall ability to incorporate values and principles that distinguish right from wrong in making decisions and choosing behaviors.

What does it include?

Identifying and describing ethical principles Assessing the importance of ethical issues Applying laws, regulations, and rules in making decisions and taking action. Demonstrating dignity and respect for others Being honest and open in communication

ACTIONS FOR ETHICS

Act Responsibly Consider Ethical Principles Trust your judgment Identify Impact on Stakeholders Obey the Rules Notify Appropriate Persons

Managerial Practices Promoting an Ethical Culture

Communicating ethical expectations. Providing ethical training. Visibly rewarding ethical acts and punishing unethical ones.

EXAMPLES OF UNETHICAL PRACICES

Is it ethical, for example, to pay a bribe to obtain a business contract in a foreign country? Is it ethical to allow your company to withhold information that might discourage a job candidate from joining your organization? Is it ethical to ask someone to take a job you know will not be good for their career progress? Is it ethical to do personal business on company time?

Jamsetji Tata's vision

Jamsetji's offer to give almost half his fortune 14 buildings and four landed properties to the University of Research (later to be the Indian Institute of Science) came from his love to lift a subdued agricultural India to one as advanced as the nations of the West he regularly visited. Built the city of Jamshedpur.

Ethics at TATA
After the Mumbai attacks, salaries of then heavily attacked Taj Hotel employees were paid despite the hotel being closed for reconstruction. About 1600 employees were provided food, water, sanitation and first aid through employee outreach centres. Ratan Tata personally visited families of all the employees that were affected. The employees relatives were flown to Mumbai from outside areas and were all accommodated for 3 weeks.

Ethics at TATA
Tata also covered compensation for railway employees, police staff, and pedestrians. The market vendors and shop owners were given care and assistance after the attacks. A psychiatric institution was established with the Tata Group of Social Science to counsel those who were affected from the attacks and needed help. Tata also granted the education of 46 children of the victims of the terrorist attacks

Ethics
Derived from the Greek word, ethos, which means character. Concerned with human character and conduct. Moral duty and obligations. Generally accepted human character and behavior.

Business Ethics
Special obligations that a citizen accepts when he becomes a part of the world of commerce. Relationship of business goals and techniques to specific human needs. E.G. Tata Nano created for a special section of the society.

Ford Motor Co.

Decided to produce the first lowest priced car in U.S.A. Wanted a car costing less than Usd 2000. Could not include the safety feature in that price. Decided to sell without the safety feature. Within six months, a car met with an accident. Killed all the passengers.

Ford Motor Co.

News published. Highlighted the absence of safety features. Resulted in loss of sales. Loss of Usd 250 million.

Principles of Business Ethics

Produce products that do not harm the consumers. Top priority to service and next priority to profits. Utilize natural resources in an optimum way. Transfer technology to the developing countries.

ANALYSE THE SITUATION

Tom and Brad were working together on a project for ABC corporation, under manager Casey. Casey gave important documents and material to Tom that would help them in the project. Casey forgot to tell Tom to pass on the information to Brad. It was to be understood. Tom did not pass the information to Brad.

ANALYSE THE SITUATION

While presenting their individual work to Casey, during a meeting, Toms work was better. Casey was happy and promoted Tom. Brad did not know that Tom had the extra information. Casey was extremely busy and forgot about the documents. Brad was highly de motivated and lost confidence.