You are previewing Business Ethics, 2nd Edition.
O'Reilly logo
Business Ethics, 2nd Edition

Book Description

Business Ethics: An Indian Perspective provides a comprehensive coverage of the theories of business ethics and emphasizes the importance of ethical principles in overcoming moral dilemmas in the business world. Using a large number of India-centric case studies and examples, this book helps readers develop the reasoning and analytical skills needed to apply ethical concepts to business.

Table of Contents

  1. Cover
  2. Title Page
  3. Brief Contents
  4. Contents
  5. About the Author
  6. Preface to the Second Edition
  7. Preface
  8. Abbreviations
  9. Part 1: Theories Underlying the Issues and Problems of Business Ethics
    1. Chapter 1: Business Ethics: An Overview
      1. Introduction
      2. Principles of Personal Ethics
      3. Principles of Professional Ethics
      4. What Is Business Ethics?
      5. What Is Not Business Ethics?
      6. Code of Conduct and Ethics for Managers
      7. Evolution of Ethics Over the Years
      8. Importance and Need for Business Ethics
      9. Significance of Business Ethics
      10. Honesty, Integrity and Transparency Are the Touchstones of Business Ethics
      11. Values and Ethics in Business
      12. Values, Ethics and Business Strategy
      13. Distinction Between Values and Ethics
      14. Roots of Unethical Behaviour
      15. Why Does Business Have Such a Negative Image?
      16. Why Should Businesses Act Ethically?
      17. Ethical Decision-making
      18. How Corporations Observe Ethics in Their Organizations?
      19. Changing Business Environment and Ethical Challenges
      20. Corporate Governance Ethics
      21. How Ethics Can Make Corporate Governance More Meaningful
      22. Benefits from Managing Ethics in Workplace
      23. Characteristics of an Ethical Organization
      24. Recognizing Ethical Organizations
      25. Summary
      26. Key Words
      27. Discussion Questions
      28. Further Readings
      29. Case Study: Satyam Computer Services Limited
    2. Chapter 2: Concepts and Theories of Business Ethics
      1. Introduction
      2. Definitions of Ethics
      3. Personal Ethics and Business Ethics
      4. Morality and Law
      5. How Are Moral Standards Formed?
      6. Religion and Morality
      7. Morality, Etiquette and Professional Codes
      8. Management and Ethics
      9. Normative Theories
      10. Ethical Theories in Relation to Business
      11. Some More Normative Theories of Business Ethics
      12. Teachings of the Church
      13. Indian Ethical Traditions
      14. Summary
      15. Key Words
      16. Discussion Questions
      17. Further Readings
      18. Case Study: Biocon—India’s Own Home-grown Biotech Company
    3. Chapter 3: Ethical Dilemmas, Sources and Their Resolutions
      1. Introduction
      2. What is an Ethical Dilemma?
      3. How Ethical Dilemmas in Business Affect the Stakeholders?
      4. Corporate Dilemma Over Ethical Behaviour
      5. Sources of Ethical Problems
      6. Why Does Business Have a Negative Image?
      7. Why Businesses Should Act Ethically?
      8. How Corporations Observe Ethics to Reduce Dilemmas?
      9. Code of Personal Ethics for Employees
      10. How to Create an Ethical Working Environment?
      11. How Does a Company Establish Ethical Standards?
      12. Walton’s Six Models of Business Conduct
      13. How to Resolve an Ethical Problem?
      14. How to Resolve Ethical Dilemmas?
      15. Summary
      16. Key Words
      17. Discussion Questions
      18. Further Readings
      19. Case Study: HLL’s Folly: Mercury Spill in Kodaikanal
    4. Chapter 4: Ethical Decision-making in Business
      1. Introduction
      2. Ethical Models That Guide Decision Making
      3. Which Approach to Use?
      4. Ethical Decision Making with Cross-holder Conflicts and Competition
      5. Applying Moral Philosophy to Ethical Decision Making
      6. Kohlberg’s Model of Cognitive Moral Development
      7. Influences on Ethical Decision Making
      8. Personal Values and Ethical Decision Making
      9. Corporate Values and Ethical Decision Making
      10. Role of Corporate Governance in Ensuring Ethics in the Workplace
      11. A Framework of Ethical Decision Making
      12. The Process of Making Good Ethical Decisions
      13. Summary
      14. Key Words
      15. Discussion Questions
      16. Further Readings
      17. Case Study: Global Trust Bank: The Bank That Went Bust
    5. Chapter 5: Globalization and Business Ethics
      1. Introduction
      2. Growth of Global Corporations
      3. Factors Facilitating Globalization
      4. Doing Business in a Diverse World
      5. Role of Multinational Corporations
      6. Excessive Economic Clout
      7. Current Issues—Multinational Corporations
      8. International Business Issues
      9. Benefits of MNCs to the Host Nation
      10. Disadvantages of MNCs to the Host Country
      11. International Codes of Business Conduct
      12. The Limits of Voluntary Approach
      13. Caux Round Table: Principles for Business
      14. Challenges of Globalization in the Context of Growing Market Economies
      15. Public Awareness and Scrutiny
      16. Technological Challenges and Opportunities
      17. The Physical Environment
      18. The Social Environment
      19. Key Global Issues for Business
      20. Corporate Governance Is a Prerequisite for Globalization
      21. Global Compact
      22. Summary
      23. Key Words
      24. Discussion Questions
      25. Further Readings
      26. Case Study: Sterlite: Using Money Clout to Maximum Advantage
    6. Chapter 6: Creating an Ethical Organization
      1. Introduction
      2. The Problem Is Not with Corporations, But the People Who Run Them
      3. Fat Pay Did Not Ensure Better Governance
      4. Fraudulent Accounting Too Played Its Destructive Role
      5. Independent Directors Too Did Not Help Reduce Malpractices
      6. Reasons for the Failure of Conventional Measures
      7. Suggestions to Improve Corporate Virtue
      8. Role of Corporate Governance
      9. The Role of Corporate Culture
      10. Role of Corporate Social Responsibility
      11. Other Influences in Creating an Ethical Organization
      12. Developing and Executing a Comprehensive Ethics Programme
      13. Codes of Conduct
      14. Ethics Committees
      15. Ethics Communication Systems
      16. Ethics Office/Officers
      17. Ethics Training Programmes
      18. Disciplinary System
      19. Summary
      20. Key Words
      21. Discussion Questions
      22. Further Readings
      23. Case Study: Wipro Limited: An Earnest Effort to Create an Ethical Organizations
  10. Part 2: How Can Ethics be Applied in Day-to-Day Business?
    1. Chapter 7: Corporate Ethics: Good Governance
      1. What Is Corporate Governance?
      2. Definitions of Corporate Governance
      3. Desiderata of Corporate Governance
      4. A Historical Perspective of Corporate Governance
      5. Significance of Corporate Governance to Developing Countries
      6. Issues in Corporate Governance
      7. Major Thrust Areas of Corporate Governance
      8. Strategies and Techniques Basic to Sound Corporate Governance
      9. Benefits to Society
      10. Benefits to Corporation
      11. Indian Model of Corporate Governance
      12. What Is ‘Good’ Corporate Governance?
      13. Obligation to Investors
      14. Obligation to Employees
      15. Obligation to Customers
      16. Managerial Obligation
      17. Legislative Changes
      18. Introduction of Regulations
      19. Implementation of Recommendations of Birla Committee Report
      20. The Reserve Bank’s and Other Regulations
      21. Self-regulation
      22. Pioneers in Good Governance Practices
      23. Corporate Governance in India—A Performance Appraisal
      24. Future of Corporate Governance in India
      25. Impetus for the Growth of Corporate Governance in India
      26. Summary
      27. Key Words
      28. Discussion Questions
      29. Further Readings
      30. Case Study: Tata Steel—A Company That Also Makes Steel
    2. Chapter 8: Corporate Ethics: Investors’ Rights, Privileges, Problems and Protection
      1. Introduction
      2. Ethical Governance Needed to Protect Stakeholders
      3. Theoretical Basis—Agency Costs
      4. Long-term Shareholder Value
      5. Rights of Shareholders
      6. Views of Various Committees on the Issue
      7. Poor Track Record of Shareholder Protection in India
      8. Guide for Investors/Shareholders
      9. Investor Protection in India
      10. N. K. Mitra Committee on Investor Protection
      11. Problems of Investors In India
      12. Law Enforcement for Investor Protection
      13. Lacunae in Investor Protection
      14. SEBI’s Poor Performance and Suggestions for Improvement
      15. Summary
      16. Key Words
      17. Discussion Questions
      18. Further Readings
      19. Case Study: On Insider Trading (HLL–BBLIL Merger)
    3. Chapter 9: Handmaid of Ethics: Corporate Social Responsibility
      1. Introduction
      2. Why Social Responsibility of Business?
      3. Definitions of CSR
      4. Today’s Corporate Social Responsibility
      5. Theoretical Justification for CSR
      6. What Are Corporations Expected to Do?
      7. Models for Implementation of CSR
      8. CSR as a Business Strategy for Sustainable Development
      9. Advantages of CSR
      10. Scope of CSR
      11. Steps to Attain CSR
      12. External Standards on CSR
      13. Prestigious Awards for CSR
      14. The Indian Perspective
      15. India on the Ethical/CSR Matrix
      16. Core-BCSD India
      17. Ethics and Social Responsibility of Business
      18. Social Responsibility and Indian Corporations—A Score Card
      19. Future of Indian CSR
      20. Summary
      21. Key Words
      22. Discussion Questions
      23. Further Readings
      24. Case Study: Dr Reddy’s Laboratories: Commitment to All-round Corporate Excellence
    4. Chapter 10: Ethics of Consumer Protection
      1. Introduction
      2. Consumer—An Important Stakeholder
      3. Hidden Taxation on Society
      4. Stakeholder Alliance
      5. Consumer and Consumer Protection
      6. Parties to Consumer Protection
      7. History and Growth of Consumer Protection
      8. Ralph Nader’s Contribution to Consumer Protection
      9. Consumer Protection, Why and How
      10. Consumer Duties and Responsibilities
      11. Consumer Protection: Indian Scenario
      12. Spate of Consumer-oriented Legislations
      13. How Are Indian Consumers Exploited?
      14. Consumer Protection in India
      15. Legal Protection to Consumers
      16. Consumer Protection Act, 1986
      17. Consumer Protection (Amendment) Act, 2002
      18. Prevention of Food Adulteration Act, 1954
      19. Institutional Arrangements Under COPRA
      20. Quality Standards
      21. Standards of Weights and Measures
      22. Role and Initiatives of Voluntary Organizations
      23. Other Initiatives to Promote Consumer Protection
      24. Summary
      25. Key Words
      26. Discussion Questions
      27. Further Reading
      28. Case Study: Wockhardt Ltd—Divergence Between Precepts and Practices
    5. Chapter 11: Environmental Ethics
      1. Introduction
      2. Environmental Concerns
      3. History of Environmentalism
      4. Environmental Philosophy
      5. Environmental Preservation: Role of Stakeholders
      6. Future Outlook on Environment
      7. Partnerships
      8. International Issues
      9. Sustainable Development
      10. Costs and Benefits of Environmental Regulation
      11. Trade and the Environment
      12. Industrial Pollution
      13. Role of Corporations in Environmental Management
      14. Innovative Business Responses to Environmental Regulations
      15. Waste Management and Pollution Control
      16. Improving Corporate Environmental Performance
      17. Need for a New Approach
      18. Environmental Audit
      19. Managing Environmental Issues
      20. Product Differentiation
      21. Managing Regulation
      22. Redefining Markets
      23. Environmental Risk Management
      24. Environmental Management in India
      25. Charter for Voluntary Pollution Control
      26. Corporate India Gets Eco-friendly
      27. India’s Environment Policy
      28. Summary
      29. Key Words
      30. Discussion Questions
      31. Further Readings
      32. Case Study-1: E-Waste: The Latest Contributor to Environmental Degradation*
      33. Case Study-2: Tirupur—A Study on Its Environmental Degradation
    6. Chapter 12: Role of Various Agencies in Ensuring Ethics in Corporations
      1. Introduction
      2. Public Opinion
      3. Role of Auditors in Ensuring Business Ethics
      4. Role of Board of Directors in Ensuring Ethical Business
      5. Media and Business Ethics
      6. Ethics in Advertising
      7. Role of Government Agencies in Ensuring Ethical Practices
      8. Role of the Judiciary
      9. Role of SEBI in Ensuring Ethical Corporate Governance
      10. Role of Whistle-blowing
      11. Summary
      12. Key Words
      13. Discussion Questions
      14. Further Readings
      15. Case Study: Ketan Parekh Scam 2001
    7. Chapter 13: Ethics and Indian Business
      1. Impact of Globalization
      2. Role of Securities Market in Economic Growth
      3. Phenomenal Growth of Indian Capital Market
      4. Nature of the Indian Capital Market
      5. Development of the Indian Capital Market
      6. Deficiencies in the Indian Capital Market
      7. Major Indian Scams
      8. Can Unethical Behaviour Be Avoided?
      9. Reasons for Unethical Practices Among Indian Corporations
      10. Business Ethics in India Today
      11. Corporations in India Cannot Afford to Be Ethical
      12. Some Unethical Issues in India
      13. Why Should Indian Business Be Ethical?
      14. Studies on Ethical Attitudes of Managers
      15. Some Questionable Business Practices
      16. Summary
      17. Key Words
      18. Discussion Questions
      19. Further Readings
      20. Case Study: Demat Scam 2003–2005
  11. Part 3: Functional Areas in Business Management
    1. Chapter 14: Marketing Ethics*
      1. Introduction
      2. Role of Marketing
      3. Defining Marketing Ethics
      4. The Context of Indian Economy
      5. Normative Marketing Ethics
      6. Areas in Marketing Ethics
      7. Beyond the Four Ps
      8. Summary
      9. Key Words
      10. Discussion Questions
      11. Further Reading
      12. Case Study: The Cola Conundrum
    2. Chapter 15: Ethical Issues in Human Resource Management*
      1. Introduction
      2. Definition
      3. Genesis and Growth of Human Resource Management
      4. Scope of Human Resource Management
      5. Different Aspects of Human Resource Management
      6. Different Functional Areas of HRM
      7. Emerging Challenges of HRM
      8. Changing Profile of HR Professionals
      9. HR-related Ethical Issues
      10. Role of HRM in Creating an Ethical Organization
      11. Institutional Culture
      12. Creating an Ethical Organization
      13. Human Resource Development in India
      14. Functions
      15. Human Development Index
      16. Summary
      17. Key Words
      18. Discussion Questions
      19. Further Readings
      20. Case Study-1: The Phaneesh Murthy Sexual Harassment Case
      21. Case Study-2: HMSI—Better Wages Cannot Suppress Workers’ Demand for Their Rights
      22. Case Study-3: The HR Intervention at Rourkela Steel Plant: Involving People in Quality-driven Improvement Culture
    3. Chapter 16: IT Industry: An Overview and Ethical Perspective*
      1. Introduction
      2. Structure of IT–ITES Industry
      3. Unique Characteristics of IT–ITES Industry
      4. Ethical Perspective of IT–ITES Industry
      5. Key Words
      6. Further Readings
      7. Case Study-1: Mphasis Case: If Individuals Do Not Comply, Safeguards Achieve Little
      8. Case Study-2: Credit Card Data Fraud
      9. Case Study-3: Cyber Crimes—The Glitches Amidst the Glow*
    4. Chapter 17: Ethical Issues in Financial Management
      1. Introduction
      2. Financial Accounting
      3. Management Accounting
      4. Financial Management
      5. Ethical Issues in Finance
      6. Frauds in Banks
      7. Measures Against Bank Frauds
      8. Constraints to Ethical Practices in Indian Nationalized Banks
      9. Frauds in the Insurance Sector
      10. Ethical Issues Arising out of Activities of Professional Players
      11. Mini Case 1 : Xeroxing Corruption
      12. Mini Case 2 : Foul Play by Soundcraft Industries’ Promoter
      13. Mini Case 3 : Tricking Investors for Personal Gain
      14. Mini Case 4 : Dereliction of Duty by a CFO
      15. Key Words
      16. Discussion Questions
      17. Further Readings
    5. Chapter 18: Whistle-Blowing
      1. Introduction
      2. Whistle-Blowing in PSEs
      3. Who is a Whistle-Blower?
      4. Types of Whistle-Blowing
      5. Whistle-Blowing Is Not Accepted by All
      6. Emerging Trends in Accepting Whistle-Blowing
      7. Why Only a Few Act as Whistle-Blowers?
      8. Why is Whistle-Blowing a Significant Tool to Ensure Corporate Governance?
      9. Whistle-Blowing Promotes a Firm’s Competitive Advantage
      10. Whistle-Blowing Is Not Only Moral But Also an Obligation
      11. Whistle-Blowing Protection Law
      12. Guidelines for Whistle-Blowing
      13. Some Cases of Whistle-Blowing in India
      14. Key Words
      15. Discussion Questions
      16. Case Study: Satyendra Dubey: A Patriotic but Unfortunate Whistle-Blower
    6. Chapter 19: Corruption in India
      1. What Is Corruption?
      2. Indian Scenario
      3. How Can the Government Prevent Corruption?
      4. Case Study-1: The 2G Spectrum Scam
      5. Case Study-2: Widespread Corruption in Corporate India: An MDRA Study
      6. Computerisation Can Help Combat Corruption
      7. Ill Effects of Corruption on Indian Economy
      8. Indirect Effects of Corruption on the Economy
      9. Corruption Perceptions Index
      10. Key Words
      11. Discussion Questions
  12. Appendix
  13. Notes
  14. Bibliography
  15. Glossary
  16. Copyright
  17. Back Cover