Ethical Dilemmas in Business

Ethical Dilemmas in Business

• 1.
  Ethical Dilemmas in Business
• 2.
  Everfelt cheated orexploitedby youremployer? Did you pay extra fora product that actually costs less? Did you everhave to bribe someone to get some work done? Ethical Dilemmas in Business
• 3.
  What are BusinessEthics?
• 4.
  Business Ethics  artthat examines ethical principles and moral or ethical problems that can arise in a business environment  behavior that a business adheres to in its daily dealings with the world  how the business interacts with the world at large, and also to their one-on-one dealings with a single customer  the manner in which some businesses conduct themselves that brings up the question of ethical behavior
• 5.
  Business Ethic Issuesacross Organizational Functions Accounting Information:  misleading financial analysis  forex scams: criminal manipulation of the financial markets  Executive compensation: concerns excessive payments made to corporate CEO's  Bribery, kickbacks, facilitation payments While these may be in the (short-term) interests of the company and its shareholders, these practices may be anti-competitive oroffend against the values of society.
• 6.
  Business Ethic Issuesacross Organizational Functions Human Resource Management:  employee discrimination  representation of employees  privacy of the employee  privacy of the employer  fairness of the employment contract and the balance of power between employer and employee It covers those ethical issues arising around the employer- employee relationship, such as the rights and duties owed between employer
• 7.
  Business Ethic Issuesacross Organizational Functions Sales & Marketing:  price fixing, price discrimination, price skimming  anti-competitive practices such as manipulation of loyalty and supply chains  marketing strategies such as greenwash, viral marketing, spam (electronic), and planned obsolescence  immoral or harmful content of advertisements  black markets and grey markets Marketing ethics overlaps strongly with media ethics, because marketing makes heavy use of media.
• 8.
  Business Ethic Issuesacross Organizational Functions Production:  defective, addictive and dangerous products and services  ethical relations between the company and the environment  ethical problems arising out of new technologies  animal rights and animal testing, use of economically disadvantaged groups (such as students) as test objects This area of business ethics deals with the duties of a company to ensure that products and production processes do not cause
• 9.
  Case Study -KFC Protest Against KFC:  KFC entered India in 1995  KFC's chickens did not adhere to the Prevention of Food Adulteration Act, 1954  Chickens contained nearly three times more monosodium glutamate as allowed by the Act  KFC faced severe protests by PETA, an animal rights protection organization  PETA accused KFC of cruelty towards chickens and released a video tape showing the ill-treatment of birds in KFC's poultry farms
• 10.
  Case Study -KFC  PETA brought a five-foot tall chicken complete with an ensemble of feathers and beak hobbled on a pair of crutches outside KFC Indian outlet in Bangalore  It was a peaceful protest was held against the alleged ill treatment of birds in KFC's poultry farms  By late 2003, PETA further intensified its campaign through protests at regular intervals  Celebrities like Anouska Shankar, Anil Kumble, John Abrahan and others supported  However, undeterred by the continued protests, KFC added three more outlets to its existing one at Bangalore
• 11.
  Case Study –Baazee.com  breach of the IT Act of India 2000 by Baazee.com and presents the concerns of the people at large about the liability for crimes on the Internet  charges of allowing the sale of VCDs showing two Delhi school students in an explicit sexual act  Avinash Bajaj, CEO of Baazee.com in 2004 was arrested on these charges  raised serious doubts on the efficacy of India’s cyberlaws
• 12.
  Conclusion  Good businessethics should be a part of every business  The manner in which some businesses conduct themselves brings up the question of ethical behavior  Companies should continuously monitor the ethical values that are part of the business they are into
• 13.
  Thank You !