Managing the ethical dilemma in business

BE & CG:
Unit 4: Managing ethical
dilemmas in Business:
Prepared by:
Mr. B.M.Naik, Teaching Assistant
Department of Studies in Commerce
Rani Channamma University, Belagavi
P.G. Centre, Jamkhandi.
Mail: basunaik221@gmail.com

Meaning, Nature & Significance
of ethical dilemmas:
O An ethical dilemma or ethical paradox is a decision-making
problem between two possible moral imperatives, neither of
which is unambiguously acceptable or preferable.

O An ethical dilemma is a moral situation in which a choice
has to be made between two equally undesirable
alternatives. Dilemmas may arise out of various sources of
behavior or attitude, as for instance, it may arise out of
failure of personal character, conflict of personal values and
organizational goals, organizational goals versus social
values, etc. A business dilemma exists when an
organizational decision maker faces a choice between two
or more options that will have various impacts on (i) the
organization’s profitability and competitiveness; and (ii) its
stakeholders. ‘In situations of this kind, one must act out of
prudence to take a better decision. As we can see, many of
these ethical choices involve conflicts ...

Nature & Significance of ED
O It is critically evaluates the situation in which a different
choice to be made between two or more alternatives
especially equally undesirable ones
O In ED no matter what course of action is taken, some
ethical principles are to be compromise ( there is no perfect
solution)
O ED helps to distinguish between values, ethics, moral
values, laws & policies. And business entity can prefers the
necessary aspects
O There must be different course of action choose from
alternative course of action are required in critical situation.
O ED also makes distinguish which personal & professional
ethics & also explains which one we have to follow up in
various situations.

O ED helps to understand the situation and
guide to the relevant body to choose the right
one.
O ED in business break down the situation &
identifies the ethics, moral values & policies
involved in dilemma.
O It distinguishes between personal and
professional dimensions. It helps for decision
making process in approximate dilemma.
O ED is a confused situation there is no way for
solution but ultimately we have to choose the
best one among the available situation.

ED v/s Ethical issues:
O ED is when one is faced two or more
multiple option of choice or a confusion of
understanding based on ethics.
O But ethical issue when a matter has both
aspects of right & wrong, if it is practising
unethical activities. Then it will be
considered as ethical issue.

Ethics in marketing:
O Ethical marketing is process through which
companies generates the customer interest in
products or services and builds strong
customer relationship. It create value for all
stakeholders by incorporating social &
environmental considerations in products &
promotions.
O Ethics in marketing refers to the applications
of ethical values in production or product,
pricing placing or distribution, promotion or
advertisement, services after sales etc.
O s

Why a company needs ethics
in marketing?
O When company adopts ethics in
marketing that helps to increase the
number of customer & positive attitudes
towards the company which helps to
reduce the advertisement cost.
O Ethics in marketing builds good image
about the company in the minds of
customers, employees or all the
stakeholders.

Ethical issues in marketing are
like;
O Low quality products or services
O Fixation of high price
O Late or delay in distribution
O Misleading advertisement
O No service after sales
O Misguiding to customers

Ethical practices in marketing
O Providing good quality product or services
O Safe delivery of products
O Providing proper information about the products
how to use.
O Fixing the reasonable price
O No marketing of the expired goods
O True advertisement
O Consumer education
O Discloser of consumer responsibilities
O Marketing of environmental friendly products
O Prevent black market activities

Ethics in Finance &
Accounting
Ethics in Finance: it refers to applications of ethical in financial
activities like raising funds & allocation of funds etc.
O Effective use of financial resources like banks, insurance,
money lenders, creditors, debtors, debentures holders etc.
O Allocation of financial assets in profitable projects
O Providing reasonable salary, wages to the employees.
O Regular payment of all taxes
O Effective use of government subsidies
O Some portion of fund to reserve for CSR
O Focusing on profit and wealth maximisation
O Maintaining good relationship with banks, insurance
company, creditors, debtors and with all the financial
institutions.
O Discloser of financial information to the concerned bodies.

Ethics in accounting practices:
Perceptive about a company is highly
depends upon the final accounts of the
company. Every companies financial
statements are prepared on the basis of
accounting records. That’s why here
accounting plays an important role.

O Ethics in accounting are like;
O Recording every aspects of financial activities in the
concerned books of accounts.
O Maintaining all the books of accounts already prescribed by
the concerned bodies.
O Follow up all the rules & regulations and guidelines relating
to the accounts
O Providing all the recorded information to the auditor as well
as concerned bodies.
O Proper allocation and classification of financial transactions
O Do not creating & recording artificial/ fake transactions.
O Reporting all the accounting information to the
management in the regular basis

HRM practices and ethical
implications:
Managing ethically all the manpower of the
company is known as ethical human
resource management or applications of
ethical values in the human resource
management is called as the ethical human
resource management.

Ethical implications in HRM
practices
O Fair Working hours ( Normally 8 hours)
O Good training facilities
O Organising career development programmes
O Good infrastructure for the employees
O Providing directions with integrity
O Adopting appropriate performance appraisal
system
O Awarding the employee for work excellence
O Equality
O Job security

Ethical issues relating to IT
1) Computer system crime related ethical issues:
O information theft
O Financial fraud ( using OTP)
O Destroying information
O Hacking the computer system
O Creation fake accounts and user id
O Stealing the system password
2) Intellectual Property related issues:
O Copying others name ( Airtel-Aircel)
O Copying designs, inventions, images etc.
O Copying symbols or logo

O 3) Security issues
O 4) Privacy issues
O 5) IT is impact on environment
O 6) difficult to adopt by small concerns

Ethics in Global Business:
O Normally global business is a large
business activity. It is operating its
operations in more than 20 countries, but
in such kind of business activities we can
not find the ethics. There are so many
reasons for unethical behaviour like
religion, region, language, political
interests, tradition, culture etc.

Importance or need of ethics
in global business:
O It is needed for sustainable development of the
host country: a) Environmental protection b)
Effective use of resources c) pollution control d)
Producing quality products.
O Its needed to prefer the regionality:
a) prefers for local interests
b) prefer to regional culture, tradition and language.
O Coordination between home country and host
country
O Providing good working environment for the
employees and good salary, carrier development
programmes, no discrimination among home
country and host country employees.

O Regular payments of taxes & other
responsibilities.
O It helps to earn goodwill in the host
country
O It helps to earn maximum profit
O It helps to grab the market opportunities
O It helps to stay for long time on particular
business line on the healthy basis. Ex:
apple, Microsoft etc.

Managing the ethical dilemma in business

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