Managing the ethical dilemma in business

Here there is a complete explaination about how we manage the ethical dilemma in business.Hope this is helpful for the students as well as the teachers. Especially for the the m.com students

1. 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 : [email protected]

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

3. 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 ...

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

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

6. ED v/s Ethical issues: ED is when one is faced two or more multiple option of choice or a confusion of understanding based on ethics. 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.

7. Ethics in marketing: 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. 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. s

8. Why a company needs ethics in marketing? 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. Ethics in marketing builds good image about the company in the minds of customers, employees or all the stakeholders.

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

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

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

12. 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.

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

14. 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.

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

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

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

18. Ethics in Global Business: 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.

19. Importance or need of ethics in global business: 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. Its needed to prefer the regionality : a) prefers for local interests b) prefer to regional culture, tradition and language. Coordination between home country and host country Providing good working environment for the employees and good salary, carrier development programmes, no discrimination among home country and host country employees.

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

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