Unit 3

1. ETHICS IN
MANAGEMENT
PREPARED & PRESENTED BY: MS. HIMANI
R.

2. LAYOUT
• INTRODUCTION
• ETHICS IN HRM
• MARKETING ETHICS
• ETHICAL ASPECTS OF FINANCIAL MANAGEMENT
• TECHNOLOGY ETHICS AND PROFESSIONAL ETHICS.
2Prepared by: Ms. Himani R.

3. INTRODUCTION
• ETHICS IN ORGANIZATION IS THE ETHICAL
TREATMENT OF EMPLOYEES,
STOCKHOLDERS, OWNERS, PUBLIC, ETC.
• ETHICS AND ETHICAL BEHAVIOR ARE THE
ESSENTIAL PART OF THE HEALTHY
ENVIRONMENT.
• ETHICAL BEHAVIOR IMPROVES THE
WORK ATMOSPHERE AND HELPS TO
MOTIVATE EMPLOYEES, EVOKES A SENSE
OF PRIDE FOR THE COMPANY AND
IMPROVES PUBLIC IMAGE.
3
Prepared by: Ms. Himani R.

4. LEVELS OF ORGANIZATIONAL
ETHICS
• Company
concentrat
es on its
long term
goals for
the benefit
of society.
Social
Responsibilit
y
• Company
shows
carelessne
ss for the
consequen
ces of it’s
actions.
Social
Disregard • Company
adjusts its
policies
according
to the
social
conditions,
demands
&
pressures.
Social
Responsiven
ess
• Company
does not
extend its
activity any
further
than
meeting its
legal
responsibil
ities.
Social
Obligation
4Prepared by: Ms. Himani R.

5. ETHICS IN HRM
• HRM IS THE PROCESS OF PLANNING, ORGANIZING,
DIRECTING AND CONTROLLING HUMAN ACTIVITIES TO
ACHIEVE THE ORGANIZATIONAL GOAL AND INDIVIDUAL
GOALS.
• ETHICS ARE THOSE VALUES, WHICH HAS BEEN IMBIBED
WITHIN AN INDIVIDUAL ON REINFORCED EXTERNALLY THAT
HELP HIM TO DISTINGUISH BETWEEN RIGHT AND WRONG AND
TO ACT ACCORDINGLY.
• THERE CAN BE SEVERAL SOURCES OF ETHICS LIKE
RELIGION, ORGANIZATIONAL CULTURE, LEGAL OBLIGATIONS
ETC. 5Prepared by: Ms. Himani R.

6. AREAS OF HRM ETHICS
• BASIC HUMAN RIGHTS, CIVIL AND
EMPLOYMENT FIGHT. (E.G. JOB
SECURITY, FEEDBACK FROM
TESTS);
• SAFETY IN THE WORKPLACE;
• PRIVACY;
• JUSTIFIABLE TREATMENT TO
EMPLOYEES. (E.G. EQUITY AND
EQUAL OPPORTUNITY);
• RESPECT, FAIRNESS AND
HONESTY BASED PROCESS IN
THE WORKPLACE.
6Prepared by: Ms. Himani R.

7. ROLE OF HR IN PROMOTING
ETHICS
• IMPROVE RECRUITMENT AND SELECTION TESTS
• CONDUCT ETHICS TRAINING
• ENSURE THAT THERE ARE NO PITFALLS IN PERFORMANCE
APPRAISAL
• REWARDS AND DISCIPLINARY SYSTEM
• IMPROVE AND FACILITATE TWO WAY COMMUNICATION
• AVOID ANY KIND OF DISCRIMINATION AMONG THE
EMPLOYEES BASED ON CERTAIN FACTORS LIKE CASTE,
COLOUR, CULTURE, RELIGION, APPEARANCES ETC.
• EQUAL OPPORTUNITIES MUST BE GIVEN TO EVERY
EMPLOYEE FOR HIS ADVANCEMENT AND DEVELOPMENT.
• MEASURES SHOULD BE TAKEN FOR EMPLOYEE SAFETY
WHILE WORKING IN THE ORGANIZATION.
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Prepared by: Ms. Himani R.

8. UNETHICAL PRACTICES OF HRM
1. EMPLOYERS
• CREATING SPLIT IN UNION LEADERS;
• BIASED ATTITUDE IN SELECTION, TRANSFER, PROMOTION ETC.;
• OFF-SHORING AND EXPLOITING ‘CHEAP’ LABOUR MARKETS;
• CHILD LABOUR;
• RENEGING(BREAKING PROMISES) ON COMPANY PENSION
AGREEMENTS;
• PHYSICAL VIOLENCE;
• COERCION (FORCING);
• LONGER AND INFLEXIBLE WORKING HOURS;
• PUTTING ON MORE STRESS ON EMPLOYEES FOR INCREASING
THE PRODUCTIVITY;
• THE USE OF DISPUTED AND DUBIOUS PRACTICES IN HIRING AND
FIRING OF PERSONNEL. 8
Prepared by: Ms. Himani R.

9. CONTINUED
2. EMPLOYEES
• FALSE CLAIM OF PERSONAL DETAILS LIKE AGE,
QUALIFICATIONS ETC.
• PRODUCING FALSE CERTIFICATES.
• TAKING DECISIONS AS PER THEIR CONVENIENCE.
3. GOVERNMENT
• ANNOUNCING THE VACANCIES AND NOT TAKING ANY ACTION
FURTHER.
• FUNCTIONING OF GOVERNMENT OFFICES IS NOT
TRANSPARENT AND RELIABLE.
• SELECTION COMMITTEES WILL BE EXCESSIVELY CAUTIOUS
OF RESERVATION QUOTAS AND POSSIBLE COURT CASES
RATHER THAN GAINING THROUGH THE RESPONSIBILITIES.
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Prepared by: Ms. Himani R.

10. MARKETING ETHICS
• ETHICS: IS THE ART & SCIENCE OF DETERMINING GOOD AND
BAD OR RIGHT OR WRONG MORAL BEHAVIOR.
• MARKETING: IS THE PROCESS OF COMMUNICATING THE VALUE
OF A PRODUCT OR SERVICES TO CUSTOMERS FOR THE
PURPOSE OF SELLING IT.
• MARKETING ETHICS: IS THE AREA OF APPLIED ETHICS WHICH
DEALS WITH THE MORAL PRINCIPLES BEHIND THE OPERATIONS
AND REGULATIONS OF MARKETING.
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Prepared by: Ms. Himani R.

11. ETHICS & MARKETING MIX
11Prepared by: Ms. Himani R.

12. ETHICS & MARKETING MIX
Product
• Consumer
safety
• Product
reliability
• Product
design
Price
• Bid rigging
• Predatory
pricing
• Price fixing
Place
• Coercion to
buy more
• False
shortages
• Fake delivery
promises
Promotion
• Unhealthy
products
• Deceptive ads
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Prepared by: Ms. Himani R.