Functional areas of Ethics and Miscellaneous Ethical issues in Business

CORPORATE GOVERNANCE!!!

“Functional Areas Of Ethics In Business

& Miscellaneous Ethical Issues In

Business”

VAIRAKUMAR R

2nd M.Com A

No:117

ETHICS…..

The word Ethics is originated from the Greek word “ethos” which means customary or habitual conduct. Ethics is also referred to a philosophy. Ethics enables people to make a clear separation of the dos and don’ts in their life. Ethics is primarily concerned with the ascertainment of good and bad, right and wrong, justice and injustice, moral and immoral virtue and voice of the behavior and action of individuals.

BUSINESS ETHICS…

Business ethics is a discipline of the applied ethics that analyses the moral qualities of the Commercial activities. Business ethics is a branch of study deals with the principles, values and standards that describes right conduct in Business.

DEFINITION….According to the Business Dictionary, “ Business ethics is a system of moral principles applied in the commercial word. Business ethics provides guidelines for acceptable behavior by organization in both their strategy formulation and day-to-day operation”

Functional Areas of Ethics in Business….

1. Production Ethic

Adulteration

Production of harmful products

Inferior components and raw materials

Lack of information to customers on side effects

Unsafe and unhealthy packaging

Ignoring environmental standards

2. Marketing and Sales Ethics

Unfair pricing strategy

Creation of monopoly

Dumping

Non-disclosure of substantial risk

Deceptive communication

Poor after sales service

Substantial advertisement

Obscene advertisement

Unhealthy competition

3. Human Resource Management Ethics

Low salary and wages

Unsafe working condition

Discrimination

Child labour

Employee raiding

4. financial and Accounting Ethics

Embezzlement of cash

Window dressing

Creation of secret reserves

5. Research and Development Ethics

Use of animals for testing the new products

Inaccurate and incomplete testing of products

Patent and copy right infringement

Miscellaneous Ethics Issues in Business…

Bribery and Extortion

Insider trading

Theft and disclosure of trade secrets

Unfair related party transaction

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