DEFINITION

The term "ethics" is derived from the Greek word "ethos" which refers to
character or customs
or accepted behaviour’s. The Oxford Dictionary states ethics as "the moral
principle that
governs a person's behaviour or how an activity is conducted". The synonyms of
ethics as per
Collins Thesaurus are - moral code, morality, moral philosophy, moral values,
principles, rules
of conduct, standards.
Ethics is a set of principles or standards of human conduct that govern the
behaviour of
individuals or organizations. Using these ethical standards, a person or a group
of persons or
an organization regulate their behaviour to distinguish between what is right and
what is wrong
as perceived by others
BUSINESS ETHICS
Business ethics is a form of applied ethics or professional ethics that examines
ethical
principles and moral or ethical problems that can arise in a business
environment. It is also
known as Corporate ethics. It applies to all aspects of business conduct and is
relevant to the
conduct of individuals and entire organizations.
SOURCES
The various sources from where ethical values have been evolved. The main
sources are
◦ Religion
◦ Society
◦ Legal System
◦ Genetic inheritance
◦ Marketplace
◦ Nature
◦ Culture
CHARACTERISTICS OF BUSINESS ETHICS
1. Business ethics are based on social values, as the generally accepted norms of
good or bad
and ‘right’ and ‘wrong’ practices.
2. It is based on the social customs, traditions, standards, and attributes.
3. Business ethics may determine the ways and means for better and optimum
business
performance.
4. Business ethics provide basic guidelines and parameters towards most
appropriate
perfections in business scenario.
5. Business ethics is concerned basically the study of human behaviour and
conducts.
6. Business ethics is a philosophy to determine the standards and norms to make
mutual
interactions and behaviour between individual and group in organisation.
7. Business ethics offers to establish the norms and directional approaches for
making an
appropriate code of conducts in business.
8. Business ethics are based on the concepts, thoughts and standards as
contributed as well as
generated by Indian ethos.
9. Business ethics may be an ‘Art’ as well as ‘Science’ also.
10. Business ethics basically inspire the values, standards and norms of
professionalism in
business for the well-being of customers.
11. Business ethics is to motivate and is consistently related with the concept of
service motives
for the customers’ view point.
12. Business ethics shows the better and perspective ways and means for most
excellences in
customization.
13. Business ethics aims to emphasize more on social responsibility of business
towards
society.
ELEMENTS OF BUSINESS ETHICS
(i) A Formal Code of Conduct:
Code of conduct is statements of organizational values. The Sarbanes-Oxley
Act, 2002 made
it important for businesses to have an ethics code, something in writing which
will help the
employees know – with both ease and clarity – what is expected of them on the
job. The code
should reflect the managements desire to incorporate the values and policies of
the
organization. Code of Ethics:
For every new business incorporated, it is important for the management to
have a code of
ethics for his business. It is usually unwritten for small businesses. It is basically
a buzzword
for the employees to observe ethical norms and form the basic rules of conduct.
It usually
specifies methods for reporting violations, disciplinary action for violation and a
structure of
the due process to be followed.
A code of ethics must summarize the beliefs and values of the organization. For
a large business
empire, it is important to hire talent to assist existing personnel with regards to
integrity,
understanding, responsibility, and cultural norms of the country.
(ii) Ethics Committee:
Ethics committees can rise concerns of ethical nature; prepare or update code of
conduct, and
resolve ethical dilemma in organization. They formulate ethical policies and
develop ethical
standards.
They evaluate the compliances of the organisation with these ethical standards.
The committee
members should be conscious about the corporate culture and ethical concise of
the
organisation.
The following committees are to be formed:
a. Ethics committee at the board level- The committee would be charged to
oversee
development and operation of the ethics management programme.
b. Ethics management committee – It will be charged with implementing and
administrating
an ethics management programme, including administrating and training about
policies and
procedures, and resolving ethical dilemmas.
(iii) Ethical Communication System:
Ethical communication system helps the employees in making enquiries, getting
advice if
needed and reporting all the wrong done in the organisation.
Objectives of ethical communication system are:
a. To communicate the organizations values and standards of ethical conduct or
business to
employees.
b. To provide information to employees on the company’s policies and
procedures regarding
ethical code of conduct.
c. To help employees get guidance and resolve queries.
d. To set up means of enquiries such as hotlines, suggestion boxes and e-mail
facilities.
Top management can communicate the ethical standards to the lower
management which can
be further transferred to the operational level. (iv) An Ethics Office with Ethical
Officers:
The job of an ethics officer is to communicate and implement ethical policies
amongst
employees of the organisation. Ethics officer should develop a reputation for
credibility,
integrity, honesty and responsibility.
Functions of ethics officer are:
a. Assessing the needs and risks that an ethical programme must address.
b. Develop and distribute code of conduct.
c. Conduct ethical training programme.
d. Maintain confidential service to answer employee’s questions about ethical
issues.
e. To ensure that organisation is in compliance with governmental regulations.
f. To monitor and audit ethical conduct.
g. To take action on possible violation of company’s code.
h. To review and update code in time.
(v) Ethics Training Programme:
Any written ethical code will not work unless supported and followed by a
proper training
programme. Some companies have an in-house training department while others
may opt for
an out-source expert. To ensure ethical behaviour, a corporate training
programme is
established which deals in assisting employees to understand the ethical issues
that are likely
to arise in their workplace.
When new employees are to be recruited, the induction training should be
arranged for them.
Training will help them to familiarize with company’s ethical code of
behaviour.
(vi) A Disciplinary System:
A disciplinary system should be established in the organisation to deal with
ethical violations
promptly and severely. If unethical behavior is not properly dealt with, it will
result in
threatening the entire social system. A company should adopt fair attitude
towards everyone
without any discrimination.
(vii) Establishing an Ombudsperson:
An ombudsperson is responsible to help coordinate development of policies and
procedures to
institutionalize moral values in the workplace.
(viii) Monitoring:
To make an ethical programme, a successful monitoring programme needs to be
developed. A
monitoring committee isformed. Monitoring can be done by keen observation
by ethics officer,
surveys and supporting systems. SCOPE OF BUSINESS ETHICS
Ethical problems and phenomena arise across all the functional areas of
companies and at all
levels within the company.
1. Ethics in Compliance
Compliance is about obeying and adhering to rules and authority. The
motivation for being
compliant could be to do the right thing out of the fear of being caught rather
than a desire to
be abiding by the law. An ethical climate in an organization ensures that
compliance with law
is fuelled by a desire to abide by the laws. Organizations that value high ethics
comply with
the laws not only in letter but go beyond what is stipulated or expected of them.
2. Ethics in Finance
The ethical issues in finance that companies and employees are confronted with
include:
• In accounting – window dressing, misleading financial analysis.
• Related party transactions not at arm’s length
• Insider trading, securities fraud leading to manipulation of the financial
markets.
• Executive compensation.
• Bribery, kickbacks, over billing of expenses, facilitation payments.
• Fake reimbursements
3. Ethics in Human Resources
Human resource management (HRM) plays a decisive role in introducing and
implementing
ethics. Ethics should be a pivotal issue for HR specialists. The ethics of human
resource
management (HRM) covers those ethical issues arising around the employer-
employee
relationship, such as the rights and duties owed between employer and
employee.
The issues of ethics faced by HRM include:
• Discrimination issues i.e. discrimination on the bases of age, gender, race,
religion,
disabilities, weight etc.
• Sexual harassment.
• Affirmative Action.
• Issues surrounding the representation of employees and the democratization of
the
workplace, trade etc.,
• Issues affecting the privacy of the employee: workplace surveillance, drug
testing.
• Issues affecting the privacy of the employer: whistle-blowing.
• Issues relating to the fairness of the employment contract and the balance of
power
between employer and employee. • Occupational safety and health.
Companies tend to shift economic risks onto the shoulders of their employees.
The boom of
performance-related pay systems and flexible employment contracts are
indicators of these
newly established forms of shifting risk.
4. Ethics in Marketing
Marketing ethics is the area of applied ethics which deals with the moral
principles behind the
operation and regulation of marketing. The ethical issues confronted in this area
include:
• Pricing: price fixing, price discrimination, price skimming.
• Anti-competitive practices like manipulation of supply, exclusive dealing
arrangements, tying arrangements etc.
• Misleading advertisements
• Content of advertisements.
• Children and marketing.
• Black markets, grey markets.
5. Ethics of Production
This area of business ethics deals with the duties of a company to ensure that
products and
production processes do not cause harm. Some of the more acute dilemmas in
this area arise
out of the fact that there is usually a degree of danger in any product or
production process and
it is difficult to define a degree of permissibility, or the degree of permissibility
may depend
on the changing state of preventative technologies or changing social
perceptions of acceptable
risk.
• Defective, addictive and inherently dangerous products and
• Ethical relations between the company and the environment include pollution,
environmental ethics, and carbon emissions trading.
• Ethical problems arising out of new technologies for eg. Genetically modified
food
• Product testing ethics.
The most systematic approach to fostering ethical behaviour is to build
corporate cultures that
link ethical standards and business practices.
NATURE OF BUSINESS ETHICS
Egoism – is a theory that suggests that an action is morally right if in a given
situation all
decision makers freely decide to pursue their own self interests. In such it is
okay to make a
decision that bene ts oneself. Important to ensure oneself does not confuse self-
interest
with selfishness. Enlightened self-interest, we are well aware that any act of
self-interest will reap future benefits for self-interest.
Egoism limitations – Relies on an external mechanism to control individual
egoists, it can
result in significant short-term harm, an egoist persona may know what they
want but not
what they need.
Utilitarianism –is a theory that seeks the greatest happiness for the greatest
number, the
maximum pleasure with the minimum pain. The ultimate consequentialist
theory, as it
focuses clearly on the consequences of a decision
1. Ensure legality of business activities: Business activities must be legal and a
business
man should not do any kind of illegal activity.
2. Customer orientation: All of his operations must be customer oriented. He
must bear
in his mind that the “customer is the kinds” So, he should produce and distribute
that
types of goods and services which can satisfy the customers.
3. Supplying good quality product: A businessman must have to ensure the
supply of
good quality products and services. He has to maintain minimum standard of his
product and service.
4. Price: Businessman has to claim a reasonable price for has products or
services that is
under buying capacity of the customers.
5. Following rules and regulations: A businessman must have to follow all
businessrelated rules and regulations that is formulated by the government.
6. Employer-employee relationship: This is an important issue to build up a
friendly
relationship between employer and employees in an organization because a
success of
the organization largely depends on it.
7. Avoiding fraud and cheating: A businessman has to avoid unfair means. He
should
not try to cheat or fraud the customers or general public. He should always
practice
honesty and sincerity in his activities.
8. Environmental issues: in the present world, environmental issues are
considered a
vital matter. A businessman ensures healthy environment for the insiders as well
as the
outsiders for running the organization smoothly.
9. Avoiding artificial shortage: Some dishonest businessmen create artificial
shortage of
products and thereby they want to gain more profit. This is not acceptable.
10. Avoiding harmful competition: In order to survive in the market
successfully, each
and every business organization should co-operate with each other. They should
avoid
harmful competition.
COMPANIES WITH BEST ETHICAL CORPORATE POLICIES
• Google
• Microsoft
• Intel
• TATA Steel
• Wipro Limited
ETHICAL THEORIES
The various ethical theories are
 Teleological Ethics (Consequentialism)
Ethical Egoism
Hedonism
Utilitarianism
 Deontology
Kantian
 Virtue ethics
Teleological Ethics
The Teleological Ethical Theories are concerned with the consequences of
actions which
means the basic standards for our actions being morally right or wrong depends
on the good or
evil generated. The teleological theory suggests an action is good or bad
depending on its
outcome.
It is based on measuring the probable outcome of the consequences of the
decisions taken. For
instance, most people would agree that telling a lie is wrong. But if telling a lie
would help to
save a person's life, consequentialism says it's the right thing to do.
Ethical Egoism
Ethical egoism is the normative theory that the promotion of one's own good is
in accordance
with morality. Each person should focus exclusively on his or her interest. It
requires that we
promote only our self interest, and not both our interests. Hedonism
The term hedonism is derived from the Greek word “hedone” which means
pleasure. Ethical
hedonism is said to have been started by Aristippus of Cyrene, a student of
Socrates. It is the
idea that each person should do everything in their power to achieve the greatest
amount of
pleasure possible to them.
There are two types of hedonism
• Psychological hedonism
o Psychological hedonism is the view that humans are psychologically
constructed in such a way that we exclusively desire pleasure.
• Ethical hedonism
o Ethical hedonism is the view that our fundamental moral obligation is to
maximize pleasure or happiness.
Utilitarianism
Utilitarianism is a tradition of ethical philosophy that is associated with Jeremy
Bentham
and John Stuart Mill (1806 – 1873) British philosophers. Utilitarianism is a
normative
ethical theory that places the locus of right and wrong solely on the outcomes
(consequences)
of choosing one actions.
Three Basic Principles of Utilitarianism
 Pleasure or Happiness Is the Only Thing That Truly Has Intrinsic Value
 Actions Are Right as they Promote Happiness, Wrong as they Produce
Unhappiness
 Everyone's Happiness Counts Equally.
Deontology
Deontology is a theory that suggests actions are good or bad according to a clear
set of rules.
Its name comes from the Greek word deon, meaning duty. In moral philosophy,
deontological
ethics or deontology is the normative ethical theory that the morality of an
action should be
based on whether that action itself is right or wrong under a series of rules,
rather than based
on the consequences of the action. It is sometimes described as duty, obligation,
or rule-based ethics. Deontological ethics is commonly contrasted to
consequentialism, virtue ethics,
and pragmatic ethics. In this terminology, action is more important than the
consequences.
Kant's theory is an example of a deontological theory.
Kantian
Kantian ethics refers to a deontological ethical theory developed by German
philosopher Immanuel Kant. According to these theories, the rightness or
wrongness of actions
does not depend on their consequences but on whether they fulfill our duty.
Virtue ethics
Virtue ethics is developed by the philosopher [Link] ethics mainly
deals with the
honesty and morality of a person. It states that practicing good habits such as
courage, honesty,
ambitious, truthfulness and patience makes a moral and virtuous person. Virtues
are admirable
qualities that lead to moral excellence
UNETHICAL BEHAVIOUR
The Civil Service Commission of Philippines defined an unethical behaviour as
any behaviour
prohibited by law. An unethical behaviour would therefore be defined as one
that is not morally
honourable or one that is prohibited by the law. Many behaviours will fall in the
classification
including corruption, mail and wire fraud, discrimination and harassment,
insider trading,
conflicts of interest, improper use of company assets, bribery
CAUSES OF UNETHICAL BEHAVIOUR IN WORKPLACE
1. Misusing Company Time
One of the most regularly revealed “bad behaviours” in the workplace isthe
misuse of company
time. This category includes knowing that one of your colleagues is directing
personal business
on company time, staff appearing late, extra breaks or fake timesheets. These
negative
behaviour patterns can rapidly spread to different workers. It can also cultivate
hatred amongst
colleagues, severely influencing morale and efficiency. 2. Unethical Leadership
Having a personal issue with your boss or manager is a certain thing, yet
reporting to a person
who is acting dishonestly is another. This may come in a clear form, such as
manipulating
numbers in a report or sending company money on improper activities;
nonetheless, it can also
happen more subtly, through bullying, accepting inadequate gifts from
suppliers, or requesting
that you avoid a standard system just once. With studies demonstrating that
managers are
responsible for 60 percent of workplace wrongdoing, the abuse of leadership
authority is a
disastrous reality.
3. Lying to Employees
The quickest way to lose the trust of your employees is to lie to them, but
managers do it
constantly. One out of every five workers report that their supervisor or
manager has lied to
them within the previous year.
4. Harassment and Discrimination
Laws require associations to be equivalent to business opportunity employers.
Organizations
must select a various workplace, authorize policies and training that help an
equivalent opendoor program, and encourage a situation that is respectful of a
wide range of people.
Unfortunately, there are still numerous people whose practices break with
EEOC rules and
regulations. When harassment and discrimination of employees based on
ethnicity, race,
gender, handicap or age occur, has a moral line been crossed as well as a
legitimate one also.
Most companies are attentive to maintain a strategic distance from the costly
legal and public
implications of harassment and discrimination, so you may experience this
ethical problem in
more delicate ways, from apparently “harmless” offensive jokes by a manager
to a more
unavoidable “group think” mindset that can be a symptom of a toxic culture.
This could be a
group mindset toward an “other” group. Your best reaction is to keep up your
qualities and
repelsuch intolerant, illegal or unethical group standards by offering an option,
inclusive aspect
as the best decision for the group and the company.
5. Violating Company Internet Policy
Cyberloafers and Cybershackers are terms used to recognize people who surf
the web when
they ought to work. It’s a huge, multi-billion-dollar issue for organizations.
Every day at least
64 percent of employers visit sites that have nothing to do with their work. 6.
Pressure to Succeed
Employees may choose to act unethically based on unrealistic expectations to
succeed. For
example, a salesperson may make false claims to secure a deal to meet their
quota.
ETHICAL ABUSES IN BUSINESS
Corporate ethical/legal abuses include:
• Creative accounting
• Earnings management
• Misleading financial analysis
• Insider trading
• Securities fraud
• Bribery/kickbacks
• Facilitation payments

MANAGEMENT ETHICS
‘Management Ethics’ is related to social responsiveness of a firm. It is “the
discipline dealing
with what is good and bad, or right and wrong, or with moral duty and
obligation. It is a standard
of behavior that guides individual managers in their works”.
“It is the set of moral principles that governs the actions of an individual or a
group.”
TYPES OF MANAGEMENT ETHICS
Three types of management ethics are
1. Immoral management:
It implies lack of ethical practices followed by managers. Managers want to
maximize profits
even if it is at the cost of legal standards or concern for employees.
2. Moral management:
According to moral management ethics, managers aim to maximize profits
within the confines of
ethical values and principles. They conform to professional and legal standards
of conduct. The
guiding principle in moral management ethics is “Is this action, decision, or
behavior fair to us
and all parties involved?”
3. Amoral management:
This type of management ethics lies between moral and immoral management
ethics. Managers
respond to personal and legal ethics only if they are required to do so; otherwise
there is lack of
ethical perception and awareness.
There are two types of amoral management:
(a) Intentional:
Managers deliberately avoid ethical practices in business decisions because they
think ethics
should be followed in non-business activities.

(b) Unintentional:
Managers do not deliberately avoid ethical practices but unintentionally they
make decisions
whose moral implications are not taken into consideration.
APPROACHES TO MANAGEMENT ETHICS
There are three approaches to management ethics:
1. Utilitarian approach:
In this approach, managers analyze the effects of decisions on people affected
by these decisions.
The action rather than the motive behind the action is the focus of this approach.
Positive and
negative results are weighed and managerial actions are justified if positive
effects outweigh the
negative effects. Pollution standards and analyzing the impact of pollution on
society is
management ethics code under utilitarian approach.
2. Moral rights approach:
In this approach, managers follow ethical code which takes care of fundamental
and moral rights
of human beings; the right to speech, right to life and safety, right to express
feelings etc. In the
context of business organizations, managers disclose information in the annual
reports necessary
for welfare of the people concerned. The nature, timing and validity of
information is taken into
account while reporting information in the annual reports.
3. Social justice approach:
According to this approach, managers’ actions are fair, impartial and equitable
to all individuals
and groups. Employees are not distinguished on the basis of caste, religion, race
or gender
though distinction on the basis of abilities or production is justified. For
example, all employees,
males or females with same skills should be treated at par but it is justified to
treat employees
who produce more differently from those who produce less.
BARRIERS TO MANAGEMENT ETHICS
James A. Waters describe three “Organizational blocks” of management ethics:
1. Chain of command:
If employees know that superiors are not following ethical behavior, they
hesitate in reporting
the matter up the hierarchy for the fear of being misunderstood and penalized.
The chain of
command is, thus, a barrier to reporting unethical activities of superiors.
2. Group membership: Informal groups lead to group code of ethics. Group
members are strongly bonded by their
loyalty and respect for each other and unethical behavior of any member of the
group is
generally ignored by the rest.
3. Ambiguous priorities:
When policies are unclear and ambiguous, employees’ behavior cannot be
guided in a unified
direction. It is difficult to understand what is ethical and what is unethical.
ETHICAL ANALYSIS (HOSMER MODEL)
Fig 1 : Hosmer Model
The view is that a manager should always act in accordance with either a single
principle of
behavior or a single statement of belief that is "right" and "proper" and "just" in
and by itself.
This is "moral reasoning": logically working from a first principle through to a
decision on the
duties we owe to others.
7 HOSMER’S PRINCIPLE OF ETHICAL DECISION MAKING
• Principle of Long-term self-interest
Never take any action not in your organization's long-term self-interest
• Principle of Personal Virtue
Never do anything that is not honest, open, and truthful and that you would
never be glad
to see reported in the newspapers or on TV• Principle of Religious injunction
Never take any action that is not kind and that does not build a sense of
community.
• Principle of Government Requirements
Never take any action that violates the law, for the law represents the minimal
moral
standard
• Principle of Utilitarian benefit
Never take any action that does not result in greater good for society
• Principle of Individual rights
Never take any actions that infringes on others agreed-upon rights
• Principle of Distributive Justice
Never take any action that harms the least among us: the poor, the uneducated,
the
unemployed.

ETHICAL DILEMMA
An ethical dilemma (moral dilemma) is a problem in the decision-making
process between two
possible options, neither of which is absolutely acceptable from an ethical
perspective. Ethical
dilemmas can be solved in various ways, for example by showing that the
claimed situation is
only apparent and does not really exist, or that the solution to the ethical
dilemma involves
choosing the greater good and lesser evil, or that the whole framing of the
problem omits
creative alternatives that situational ethics or situated ethics must apply because
the case cannot
be removed from context and still be understood.
A popular ethical conflict is that between an imperative or injunction not to
steal and one to care
for a family that you cannot afford to feed without stolen money. Debates on
this often revolve
around the availability of alternate means of income or support such as a social
safety net, charity, etc.
The debate is in its starkest form when framed as stealing food. Under an ethical
system in which stealing is
always wrong and letting one's family die from starvation is always wrong, a
person in such a situation would
be forced to commit one wrong to avoid committing another, and be in constant
conflict with those whose
view of the acts varied.
However, there are no legitimate ethical systems in which stealing is more
wrong than letting one's family die.
Ethical systems do in fact allow for, and sometimes outline, trade-offs or
priorities in decisions. Resolving
ethical dilemmas is rarely simple or clear cut and very often involves revisiting
similar dilemmas that recur
within societies.
HOW TO SOLVE AN ETHICAL DILEMMA
The biggest challenge of an ethical dilemma is that it does not offer a solution
that would comply with ethical
norms. Throughout the history of humanity, people have faced such dilemmas
and philosophers aimed and
worked to find solution
The following approaches to solve an ethical dilemma were deducted:
• Refute the paradox (dilemma): The situation must be carefully analysed. In
some cases, the existence
of the dilemma can be logically refuted.
• Value theory approach: Choose the alternative that offers the greater good or
the lesser evil.
• Find alternative solutions: In some cases, the problem can be reconsidered and
new alternative
solutions may arise.
ETHICS IN PRACTICE
• Human dignity, human rights and justice, which refers to the duty to promote
universal respect
for the human person. In the context of fisheries, this principle relates, for
example, to fishers'
self-determination, access to fishing resources and the right to food. It is best
represented by a
rights-based approach in ethics that emphasizes the protection of the personal
domain of each
individual. It may require, however, the establishment of individual or
community rights, the
exact nature of which will depend on local conditions.
• Beneficence, which concerns human welfare, reducing the harms and
optimizing the benefits
of social practices. In the context of fisheries, this principle needs to be
observed when the
effects of policies and practices upon the livelihoods of fishing communities are
evaluated. The
principle relates to working conditions (safety on board), as well as food qua
lity and safety. The
issue of genetically modified organisms should also be addressed in this context
(FAO, 2001b).
This principle invites an ethical approach to fisheries that puts consequences to
general welfare
in focus.
• Cultural diversity, pluralism and tolerance, which relates to the need to take
different value
systems into account within the limits of other moral principles. The pressing
moral issues in
fisheries take different shapes across different cultures, and it is an important
moral demand that
people themselves define how their interests are best served in a particular
cultural setting. Thisprinciple squares well with dialogical ethics, which stresses
the actual participation of those
concerned.
• Solidarity, equity and cooperation, which refers to the importance of
collaborative action,
sharing scientific and other forms of knowledge, and non-discrimination. In the
context of
fisheries, this principle underpins the moral imperative to eradicate poverty in
developing
countries and ensure equity within fisheries and between sectors. It also requires
transparent
policies and stresses the need to reduce the gap between producers and
consumers. This principle
is relevant at the level of policy as well as at the individual level of virtues and
professional
duties to further trust and tolerance among stakeholders.
• Responsibility for the biosphere, which concerns the interconnections of all
life forms and the
protection of biodiversity. This principle stresses that ecosystem well-being is a
sine qua non
condition of sustainable fisheries providing for the needs of future generations,
as well as for the
lives of those who currently rely on the natural environment and are responsible
for its use. This
principle combines ethical reasoning based on rights and on consequences for
human welfare, as
well as on individual virtues and duties to respect the environment.
BUSINESS AND ECOLOGICAL / ENVIRONMENTAL ISSUES IN THE
INDIAN
CONTEXT AND CASE STUDIES
There are many environmental issues in India. Air pollution, water pollution,
garbage
domestically prohibited goods and pollution of the natural environment are all
challenges for
India. Nature is also causing some drastic effects on India. The situation was
worse between
1947 through 1995. According to data collection and environment assessment
studies of World
Bank experts, between 1995 through 2010, India has made some of the fastest
progress in
addressing its environmental issues and improving its environmental quality in
the world. Still,
India has a long way to go to reach environmental quality similar to those
enjoyed in developed
economies. Pollution remains a major challenge and opportunity for India.
Environmental issues
are one of the primary causes of disease, health issues and long term livelihood
impact for India.
Major environmental issues are forests and agricultural degradation of land,
resource depletion
(such as water, mineral, forest, sand, and rocks), environmental degradation,
public health, loss
of biodiversity, loss of resilience in ecosystems, livelihood security for the poor.
The major sources of pollution in India include the rapid burning of fuelwood
and biomass such
as dried waste from livestock as the primary source of energy, lack of organised
garbage andwaste removal services, lack of sewage treatment operations, lack
of flood control and monsoon
water drainage system, diversion of consumer waste into rivers, cremation
practices near major
rivers, government mandated protection of highly polluting old public transport,
and continued
operation by Indian government of government-owned, high emission plants
built between 1950
and 1980.
Air pollution, poor management of waste, growing water scarcity, falling
groundwater tables,
water pollution, preservation and quality of forests, biodiversity loss, and
land/soil
degradation are some of the major environmental issues India faces today.
India's population growth adds pressure to environmental issues and its
resources. Rapid
urbanization has caused a buildup of heavy metals in the soil of the city of
Ghaziabad, and these
metals are being ingested through contaminated vegetables. Heavy metals are
hazardous to
people's health and are known carcinogens.
• Acidification (includes algal bloom, coral reef loss, etc.)
• Air quality (air pollution, ozone pollution, ties to human health with asthma,
diesel
emissions, etc.)
• Biodiversity (conservation of biological diversity)
• Climate change (encompasses "global warming", greenhouse effect, loss of
glaciers, climate
refugees, climate justice, equity, etc)
• Conservation (nature and animal conservation, etc.)
• Consumerism (linking the state of consumers within the economy to
environmental
degradation and social malaise, planned obsolescence)
• Deforestation (illegal logging, impact of fires, rapid pace of destruction, etc.)
• Desertification
• Eco-tourism
• Endangered species / threatened species (CITES, loss of species, impact of
chemical use on
species, cultural use, species extinction, invasive species, etc.)
• Energy (use, conservation, extraction of resources to create energy, efficient
use, renewable
energy, etc.)
• Environmental degradationEnvironmental health (poor environmental quality
causing poor health in human beings, bioaccumulation, poisoning)
• Environmental impact assessment (one major current form of assessing human
impact on the
environment)
• Food safety (including food justice, impacts of additives, etc.)
• Genetic engineering or modification (includes GMOs)
• Global environmental issues (in recognition that environmental issues cross
borders)
• Global Warming
• Grassroots solutions (local and regional environmental issues solved from the
bottom-up)
• Habitat loss (destruction, fragmentation, changed use)
• Intergenerational equity (recognition that future generations deserve a healthy
environment)
• Intensive farming
• Invasive species (weeds, pests, feral animals, etc.)
• Land degradation
• Land use planning / Land use (includes urban sprawl)
• Natural catastrophes (linked to climate change, desertification, deforestation,
loss of natural
resources such as wetlands, etc.)
• Nuclear power, waste and pollution
• Over-exploitation of natural resources (plant and animal stocks, mineral
resources (mining),
etc.)
• Overfishing (depletion of ocean fish stocks)
• Ozone depletion (CFCs, Montreal Protocol)
• Pollution (air, water, land, toxins, light, point source and non-point source, use
of
coal/gas/etc., reclaimed land issues)
• Population issues (overpopulation, access to reproductive control
(reproductive health), etc.)
• Reduce, reuse, recycle (and refuse) (ways to reduce impact, minimise
footprint, etc.)
• Soil conservation (includes soil erosion, contamination and salination of land,
especially
fertile land; see also desertification and deforestation) Sustainability (finding
ways to live more sustainably on the planet, lessening human
footprint, increasing human fulfillment with less impact) (see also sustainable
development
and poverty alleviation)
• Toxic chemicals (persistent organic pollutants, prior informed consent,
pesticides, endocrine
disruptors, etc.)
• Waste (landfills, recycling, incineration, various types of waste produced from
human
endeavors, etc.)
• Water pollution (fresh water and ocean pollution, Great Pacific Garbage Patch,
river and lake
pollution, riparianissues) • Water scarcity
RECENT CASE STUDY – ENVIRONMENTAL ISSUES
VISAKHAPATNAM GAS LEAK CASE STUDY
A gas leak has affected five villages in Visakhapatnam in Andhra Pradesh.
▪ The source of the gas leak was a styrene plant owned by South Korean
electronics giant
LG located in the area.
▪ The possible reason for gas leak is stagnation and changes in temperature
inside the
storage tank that could have resulted in auto polymerization (chemical reaction)
and
vapourisation of the styrene.
Styrene
o Description:
Styrene is an organic compound with the formula C8H8.
o It is a derivative of benzene (C6H6).
o It is stored in factories as a liquid, but evaporates easily, and has to be kept at
temperatures under 20°C.
o Sources:
Styrene is found in vehicle exhaust, cigarette smoke, and in natural foods like
fruits
and vegetables.
o Uses:
It is a flammable liquid that is used in the manufacturing of polystyrene plastics,
fiberglass, rubber, and latex.
o Risk of Exposure:
Short Term Exposure: It can result in respiratory problems, irritation in the eyes,
irritation in the mucous membrane, and gastrointestinal issues.
• Long-Term Exposure: It could drastically affect the central nervous system
and
lead to other related problems like peripheral neuropathy. It could also lead to
cancer and depression in some cases.
• State of Chemical Disaster Risk in India.
According to the National Disaster Management Authority (NDMA), in the
recent past,
over 130 significant chemical accidents have been reported in the country.
▪ Further, there are thousands of registered hazardous factories and unorganised
sectors
dealing with numerous ranges of hazardous material posing serious and
complex levels of
disaster risks.
o There are over 1861 Major Accident Hazard (MAH) units spread across 301
districts and 25 states and three Union Territories in all zones of the country.
o The Major Accident is defined as an incident involving loss of life inside or
outside
the site or ten or more injuries.
o Further it also involves the release of toxic chemical or explosion or fire of
spillage of
hazardous chemical resulting in ‘on-site’ or ‘off-site’ emergencies leading to
adverse
effects to the environment.
Laws to Protect Against Chemical Disasters in India
o Laws Before and During Bhopal Gas Tragedy (1984):At the time of the
Bhopal gas
tragedy, the Indian Penal Code (IPC) was the only relevant law specifying
criminal
liability for such incidents.
o Laws After Bhopal Gas Tragedy (1984):Bhopal Gas Leak (Processing of
Claims)
Act, 1985 : It gives powers to the central government to secure the claims
arising out
of or connected with the Bhopal gas [Link] the provisions of this Act,
such
claims are dealt with speedily and equitably.
o The Environment Protection Act, 1986: It gives powers to the central
government to
undertake measures for improving the environment and set standards and
inspect
industrial units.
o The Public Liability Insurance Act, 1991: It is an insurance meant to provide
relief
to persons affected by accidents that occur while handling hazardous
substances.
o The National Environment Appellate Authority Act, 1997: Under this Act, the
National Environment Appellate Authority can hear appeals regarding the
restriction
of areas in which any industries, operations or processes or class of industries
shall
not be carried out or shall be carried out subject to certain safeguards under the
Environment (Protection) Act, 1986. National Green Tribunal, 2010: It provided
for the establishment of
the National Green Tribunal for effective and expeditious disposal of cases
related to environmental protection and conservation of forests.
• According to PRS legislative, any incident similar to the Bhopal gas tragedy
will
be tried in the National Green Tribunal and most likely under the provisions of
the Environment (Protection) Act, 1986.
• If an offence is committed by a company then every person directly in charge
and responsible will be deemed guilty, unless he proves that the offence was
committed without his knowledge or that he had exercised all due diligence to
prevent the commission of such an offence.