Current Ethical and Unethical issues in business

February 17, 2019

⏩Present Ethical and Unethical issues in an ORGANISATION⏪

1.What is ethical?

Ethics is the process we need to go to reach a decision about an ethical issue.
it helps us to differentiate:
* facts:description of the way the world is; an actual state of affairs"is"
* values:judgement about the way the things should be ("ought").
* ethical principle:they are meant to guide actions.key values in bioethics have corresponding
(e.g.,principle of respect of autonomy).

2.What are ethical objectives?

Ethical values cover all aspects of business conduct. this includes:
*corporate strategies.
*treatment of employees.
*treatment of suppliers.
*sales and accounting practices.
Most activities of business have some ethical features.

3.What is an ethical issue?

*When you have to judge what is right or wrong.
*A dilemma-making a different choice.
*prolonging life,ending life..etc.
*Day to day issues can involve:
*Respecting people,treating people with dignity,supporting patient choice etc.

4.What is Ethical behavior?

conforming to individual believes and social arms about what is right and good.

5.What is Unethical?

*Unethical comes from the word "Ethical" which means conforming to accepted standards of social or professional behavior.

*unethical in the other hands, are opposite meaning of ethical which means not conforming to approved standards of social or professional behavior; that is the "unethical business practices"

*It is a wrong contrary to conscience or morality or law;For examples "it is wrong for the rich to take advantage of the poor";"cheating is wrong"; and "it is wrong to lie".

6.What are Unethical objectives?

*Overemphasis on individual and firm performance.

*Sole objective is profit.

*Intense internal and external competition

*"Letter of Law" rather than the "Spirit of the law"

*Ambiguous "window-dressing" policies.

7.What are Unethical issues?

*Abusive or Intimidating Behavior

*Accurate but Incomplete Disclosures

*Discriminating against Protected Class

*Receiving/Offering Bribes,Kickbacks or Incentives

*Theft or Fraud:Personal Use of Company Property or Expensive Account Misrepresentations

*Termination without Fair Notice or Cause.

8.What is Unethical behavior?

Behavior conforming to social beliefs and social norms about whats right and good.

HUMAN RESOURCE MANAGEMENT

➡Ethical issues in HR Management.

*Employee Responsibility.
*Cash and Compensation Plans.

*Performance Appraisal.

*Privacy issues.

*Race and Disability.

*Safety and Health.

*Employment issues.
*Restructuring and Layoffs.

➔Unethical issues in HR Management.

*Disguised salaries

*Training policy

*Job Description

*separation policy

*Lean Management

*Direct line to CEO

*Compensatory off

*Ethics policy.

FINANCE MANAGEMENT

⇒Ethical issues in Finance Management

*Intended false reporting,creative accounting and/ or misrepresentation of facts, earnings mismanagement, and misleading financial analysis.

*Insider trading,securities fraud,and foreign exchange.

*Criminal activities such as bribery, kickbacks,and facilitating payments for favors towards funding of projects, sanctioning of loans, and soliciting equity comprise.

*Unfair executive compensation to top management either directly or indirectly.

⇒Unethical issues in Finance Management

*Delays in paying wages, interest to financiers, incentive,bonus to employees.

*Not prompt in statutory payments of ESI,PF, sales Tax and Excise Duties.

*Holding up bills of vendors on silly reasons and ultimately buying from others toy avoid payment to earlier vendors.

*Deliberate abnormal delays in payments to vendors, Dealers commissions and promotion costs.

*Cheating employees of their dues towards medical expenses,leave travel assistance, children education fees...,

*Creating bogus bills of purchase to show higher costs and hence losses to avoid bonus payments to employees.

*Opening of current accounts in different banks to avoid adjustments against loans by earlier banker.