Module 1

Introduction to Ethics
• Ethics
Ethics is the study of standards of conduct and
moral Judgment. It studies what ought to be,
what is ultimate good, and how to achieve it.
Ethic is a “system of moral principals ,rules and
Conduct”
• Meaning of Business Ethics
By definition, business ethics are the moral
principles that act as guidelines for the way a
business conducts itself and its transactions.

Business ethics is the application of ethical

principles and methods of analysis to business
 Business Ethics
• Business ethics refers to contemporary
organizational standards, principles, sets of
values and norms that govern the actions and
behavior of an individual in the business
organization.
 characteristics of business Ethics
• It is Important in all Types Of Business
• It is above law .It require behavior which is socially desirable and legally
binding
• It is the systematic handling of Values
• It concentrates on moral standards which apply to Business strategy
 Characteristics that make a business
decision ethical
• Equitable: The decision be just and equal
• Right: Morally correct and due
• Proper :That which is appropriate to the
situation and generally acceptable
• Good: which highest good for highest number
of concerned people
• Fair-which is honest and due
• Just-Justice is done to all
 Nature of business ethics
• Contains Rules And Principles
• Voluntary
• Avoids Cheating And Frauds
• Education And Training Required
• Dynamic Concept
• Social welfare
• New Concept
 Nature of business ethics

Contains Rules And Principles

Nature of Business Ethics defines the code of conduct for
every business. It tells various rules and principles that
every business should implement in its operations
Voluntary
Business ethics are moral principles and social values that
are not enforceable by law. These ethics are required
to be adopted by businessmen by their own will.
Business ethics brings self-discipline within the
business environment.
 Nature of business ethics

• Avoids Cheating And Frauds

• Ethics in business keeps an eye on every activity of the
business. It ensures that no malpractices take place
within the business organization. Rules and principles
provided by these ethics focus on that business does
not indulge in any unfair practices like black marketing,
adulteration, misleading advertisement, inaccurate
weight measures, misleading advertisement etc. Every
employee working with a business need to respect
these ethics, failure of which leads to a penalty.
 Nature of business ethics

• Education And Training Required

• Proper education and training should be
provided to businessmen and people working
with business before ethics implementation.
 Nature of business ethics

• Dynamic Concept
• Business ethics is a dynamic concept and changes
from time to time for the welfare of the business.
Ethics differs from business to business as per the
nature and type of business. It also differs from
region to region and country to country. Business
ethics are designed in accordance with culture,
traditions and religions of a particular area. Same
business ethic may be good for one region and a
taboo for another region.
 Nature of business ethics

• Social Welfare
• Ethics in business provides a framework for the
welfare of society and peoples associated with it.
These ethics ensures that business should not
exist for its growth only but should also work for
upliftment of its stakeholders. Business should
provide fair wages and better working condition
to its employees, fair payment of taxes to the
government, transparency of information to
shareholders
 Importance of Ethics
• Part of Society
• Expectations of Public
• Trust Of Employees
• Image
• Pride of Best Companies
 Causes of Unethical Behavior
[Link] code of ethics-Employees are more likely to do
wrong if they don’t know what is right
[Link] of peer Influence
[Link] a Bad Example-Ethical behavior should
start from the [Link] setting Bad
examples lead to unethical behaviour.
4-Competition for scarce resources,Power or
posotion
[Link] mistakes lead to bigger mistakes in the
Future
 Causes of Unethical Behavior
[Link] of Reprisal-People don’t know how to report
malpractices or they fear it will harm them in the
[Link] are afraid to speak up
[Link] to succeed-Pressure can drive people to
do things that they would’t do
[Link]’s No policy for reporting Unethical
Behaviour
[Link]-Intrest,Personal gain,ambition,and greed are
at the bottom of a lot of unethical activity in
Business
 Indian Ethos and Value system
• Ethos is a set of beliefs, ideas, etc., about
social behaviour and relationship of a person
or group.

• According to Oxford Advanced Learner’s

Dictionary, “Ethos are the moral ideas and
attitudes that belong to a particular group or
society”
• Indian ethos refers to the principles of self-
management and governance of society, entity or
a system by wisdom as revealed and brought-
forth by great scriptures like Veda, Upanishads,
Gita, Mahabharata, Bible and Quran.
• This wisdom evolved through the old practices of
Indian mystics, philosophers and religious ‘gurus’,
and is now found to have profound implications
for self-management and good governance of a
stormy society and business environment, or
even a politically divided world.
 Indian Ethos Features
• 1. Divinity of Human Being: Indian ethos focuses on
the existence of human being as truth. There is nothing
more perfect than the supreme soul.
• 2. Balance or Equilibrium: Balance or equilibrium is a
stable state of Indian thought, i.e., balance between
desire and desirelessness, spiritual and secular values,
subjective and materialistic world.
• 3. Balance of Personal and Work Life: Indian ethos
focuses on the concept that if you are good then the
world is also good for you. every individual should have
an effective management and balance of personal and
work life in the organisation.
• 4. Pure Consciousness: The divine element, which is an
inner part of an individual, is a part of cosmic or pure
consciousness. It gives a base for mutual trust, cooperative,
teamwork and common good.
• 5. Importance to Character: The Indian ethos gives much
importance to character not to the knowledge. It is the
character, which is the real power and wealth.
• 6. Whole-Man Approach: Indian ethos is based on Indian
scripture like-Shruties of Gita and Upanishad and Smruties
of Puranas. Indian thought provides the whole-man
approach through knowledge of creation, cosmos and
internal relation between spiritual and materialistic life
7. Work in Worship: Indian ethos works with the fact that
all work is worthy and honourable. ‘Work is worship’ is
the guiding principle for all effort as advocated in the
Indian ethos.
8. Duty and Responsibility: Indian ethos rarely talks of
rights and prevail ages. It always emphasizes only on
the duties and responsibilities of human beings.
9. Knowledge
10. Excellence at Work: According to Indian ethos, total
quality management can be assured through
excellence at work, through self-motivation and self-
development.
 ROLE OF INDIAN ETHOS IN
MANAGERIAL PRACTICES
• 1. Creates strong relation: Organizations following Indian ethos
consider humanity as supreme. This provides a strong bond with
internal as well as external customers, resulting in an improved
performance.
• 2. Inward considerations: Indian ethos focuses on ‘if a person is
good then the whole world is good’. Any organization which follows
the above ethical thought automatically get converted into an
ethical organization with less conflicts and hindrances.
• 3. Avoids unethical aspects: As Indian ethos is a principle derived
from Upanishads, Bhagwat Gita and Puranas, where the
performance is always ethical
• 4. Balanced values: Indian ethos promotes a person to live a life of
materialism and spirituality by maintaining a balance between
spiritual values and secular values.
• 5. Improves performance: Indian ethos impacts
the performance of business by emphasising on
the concept like sacrificing individual desires in
favour of social benefits, preferring long-term
benefits.
• 6. Improves quality: Self-motivation and self-
development helps a lot in development of
business and its quality
• 7. Helps in problem solving
• 8. Develops self-reliability
 ELEMENTS OF INDIAN ETHOS
1. Focus on the permanent: In real life fashions change,
concepts change, situations change, environments
change, however, certain things do not change. These
are the values of the good, truth and beautiful.
2. Quest for Perfection: This quest for perfection
ultimately, is the quest for quality. When it comes to
quality, the concepts like total quality management,
etc., have only once again underlined this principle of
the fact that quality products and services cannot
come out of an organisation unless the principle of
quality pervades every function of that organisation
 ELEMENTS OF INDIAN ETHOS
• 3. Joy in Performing One’s Function:
• It is the pride which an artist takes in his art. If
one is enjoying what one is doing, automatically,
he is bound to do extremely well; and while
excellence becomes a by-product or a spin of the
benefit of happiness, it also leads to success.
• After all, every excellent organisation has
excellent morale. Excellence, in terms of
enjoyment through doing is the third aspect of
Indian ethos.
 Components of Indian ethos
Indian believe:
• Ego sublimation rather than ego assertion
• Sacrificing spirit rather than fighting spirit
• Team achievement rather than individual achievement
• Spiritual attainment rather than material prosperity
• Self control rather than outside control
• Concept of duties rather than concept of rights
• Yielding rather than dominating
• Concern for this age world and improvement
• Respect for and search for all truth whatever be its
source
 Business ethos principles practiced by
Indian Companies
• 1. Principle of `sacrifice’
• An individual is trained by the principle of `sacrifice’ through the
process of `give and take’ policy. A person, who is willing to sacrifice
part of his bread or effort, commands a superior place in the
organization.
• 2. Principle of `harmony’
• An individual is trained in such a way that to avoid conflicts and
friction one should be guided by certain set of moral conducts and
principles.
• 3. Principle of `non-violence’
• This principle protects an organization from strikes and lockouts and
unnecessary avoidable conflicts. Indian companies are guided by
certain rules of conduct in the form of ethical and moral standards.
Some of the business ethos principles, practiced by Indian
companies are listed below
 Contd…
• 4. Principle of `reward’
• The one who performs well are encouraged to do so. This implies that the
activities of individuals need to be monitored and encouragement in the
form of `rewards’ may cultivate the spirit of higher productivity among
groups.
• 5. Principle of `justice’
• The one who works hard is `rewarded’ and the one who fails to do so is
`punished’. This is essence the principle of Justice.
• 6. Principle of `taxation’
• The one who is taxed more is encouraged to stay fit for a longer period by
proper appreciation and encouragement. This principle applies to
individuals who are hardworking and productive.
• 7. Principle of `Integrity’
• An integrated mind is more productive. Groups are encouraged to stay
united in order to reap the benefits of division of labour.
• The salient ideas and thoughts of Indian Ethos in
Management revealed by our ancient scriptures are:
• 1. Atmano Mokshartham, Jagat hitaya cha: All work is an
opportunity for doing good to the world and thus gaining
materially and spiritually in our lives
• 2. Archet dana manabhyam: Worship people not only with
material things but also by showing respect to their
enterprising divinity within.
• 3. Atmana Vindyate Viryam: Strength and inspiration for
excelling in work comes from the Divine, God within,
through prayer, spiritual readings and unselfish work.
• 4. Yogah karmashu Kaushalam, Samatvam yoga uchyate: He
who works with calm and even mind achieves the most.
• 5. Yadishi bhavana yasya siddhi bhavati tadrishi: As we
think, so we succeed, so we become. Attention to means
ensures the end.
• 6. Parasparam bhavayantah shreyah param bhavapsyathah:
By mutual cooperation, respect and fellow feeling, all of us
enjoy the highest good both material and spiritual.
• 7. Tesham sukhm tesham shanti shaswati: Infinite
happiness and infinite peace come to them who see the
Divine in all beings.
• 8. Paraspar Devo Bhav: Regard the other person as a divine
being. All of us have the same consciousness though our
packages and containers are different.
 values
• A broad definition of values, derived from an
insight into ancient India’s
psychophilosophical wisdom literature is:
“Values are states of feelings/emotions that
underpin the content of a choice/decision and
determine the manner of using the
intellect/reason for justifying and
implementing that choice/decision.”
 Human values
• Human values refer to spiritual, ethical and
moral values. These values form a basis for
thoughts, actions, skills and behaviour and
eventually lead to formation of a good
character. These values will make good man,
good manager and a good organization and
ultimately remove pollution from the minds of
the people
 values
• Human Values is the sum total of qualities like
truthfulness, integrity, gratitude, humbleness,
forgiveness, patience, transparence,
charitableness, simplicity, etc.
• Human Values make a person Antarmukhi
(interiorized) while skills will make him more
and more Bahirmukhi (exteriorized
• Human values transcend moral, ethical and
spiritual values.
• Values: Human value is defined as “a principle
that promotes well-being or prevents harm.
• The various people responsible for inculcating
and evolving human values are parents,
religious leaders & gurus in daily life and
teachers at the institute’s level.
• Human values can assure a happy and
harmonious human society
Types of Values Values related to Right Conduct are:
(a) Self-help Skills: Care of possessions, diet, hygiene,
modesty, posture, self-reliance, and tidy appearance.
(b) Social Skills: Good behavior, good manners, good
relationships, helpfulness, No wastage, and good
environment.
(c) Ethical Skills: Code of conduct, courage, dependability,
duty, efficiency ingenuity, initiative, perseverance,
punctuality, resourcefulness, respect for all, and
responsibility.
 Human values
• The five human values which are expected in all human beings,
irrespective of whether they are employees or not in whichever profession
or service, are:
1. Right Conduct – Contains values like self-help skills (modesty, self-reliance,
hygiene etc.), social skills (good behavior, good manners, environment
awareness etc.), ethical skills (courage, efficiency, initiative, punctuality
etc.) and Ownership.
2. Peace – Contains values like equality, focus, humility, optimism, patience,
self-confidence, self-control, self-esteem etc.
3. Truth – Contains values like accuracy, fairness, honesty, justice, quest for
knowledge, determination etc.
[Link] co-existence – Contains values like psychological (benevolence,
compassion, consideration, morality, forgiveness etc.) and social
(brotherhood, equality, perseverance, respect for others, environmental
awareness etc.)
5. Discipline – Contains values like regulation, direction, order etc.
 Golden Rule of Ethics
• The following are the forms of the golden rule
in ethics
1. Everything you want others to do to you, you
shall do to others.
2. Do not do to others that which you do not
wish them to do to you.
3. Do not do anything to others that if done to
you, would cause harm to you
 code of ethics
• A code of ethics is a guide of principles designed
to help professionals conduct business honestly
and with integrity.
• A code of ethics document may outline the
mission and values of the business or
organization, how professionals are supposed to
approach problems, the ethical principles based
on the organization's core values, and the
standards to which the professional is held.
• A code of ethics, also referred to as an "ethical
code," may encompass areas such as business
ethics, a code of professional practice, and an
employee code of conduct.
• A code of ethics reflects an organizations
principals and values and provide guidelines for
employees to follow.
• It is a set of formalized rules and standards
describing what an organization excepts of its
employees.
 Code of Ethics
• Beneficence. concern for well-being and safety of clients.
• Non meleficence. refrain from causing intentional harm to
clients.
• Autonomy/Confidentiality. respect client's rights and opinions.
• Social Justice- provide services in a fair and equitable manner.
• Procedural Justice- comply with institutional rules, local, state,
federal, and international laws .
• Veracity- Provide comprehensive, accurate, and objective
information
• Fidelity- treat colleagues and other professionals with respect,
fairness, discretion, and integrity
 Indian work Ethics
• The Economy of India is largely dependent on
the corporate sector, and the increasing
number of corporate scams has more ethical
implications than ever.
• With the growing economy and evolving
global demand from India, the proactive
transformation into an ethical organization
has became desirable.
 Indian work Ethics
• An ethical business environment also gives
high importance to equal pay, equal rights,
and fairness. While most businesses have
straightforward guidelines on employee
integrity, privacy, and sexual harassment,
comparatively few have recognized policies
regarding inducement, exploitive child labor,
human rights violations, and other matters
they may meet in the global market place.
 Indian work Ethics
• Bribery and corruption
India is ranked 81 out of 176 countries in the Corruptions Perceptions Index
(CPI) and it is, unfortunately, a common practice in most businesses.
• Removing double standards
In order for a business to be ethical, the employer should strive to eliminate
double standards and cultivate trust among the team members. There
should not be any policies that managers are allowed to ignore when
subordinates are required to follow it or are reprimanded for not following
it.
• Create a respectful environment
Every ethical business should have an environment that makes it possible for
every employee to take pride in their work and identify with the industry
as a whole. There should be no discrimination based on any kind and no
employee should be made to feel inferior or threatened in any way.
 Indian work Ethics
• The direct relation between performance and rewards
Every workplace should function in such a way that there is a direct
relationship between the performance and rewards. The company
should be transparent when it comes to outlining decisions
regarding performance, pay, and promotion.
• CSR and social obligations
Corporate Social Responsibility is an emerging concept that is
incorporated into the foundation of most companies today. Every
company is socially obligated to keep their social relations in check
• Encouraging workers to report illegal activities
Any workplace is ethically sound will always encourage its employees
to report illicit and unethical activities such as discrimination,
harassment, or corruption. A proper channel must be in place to
ensure that employees can report these activities with the utmost
ease and security
 Corporate Frauds in India

• Corporate frauds have emerged as the biggest risks

which companies are exposed to, and are increasingly
becoming a big threat. Incidents of frauds are
increasingly at an alarming rate and in the process:
• Destroy the confidence of investors in stock markets
• Results in enormous destruction in wealth of investors
• Damage the reputation of the affected company, its
management and board of directors
• Erode ability of affected company to borrow and thus
creating financial stress.
 Corporate Frauds in India

• 1. Satyam computer (Satyam)

• Satyam was the first major fraud of its kind, which shocked the
country and led to tightening of regulations, reporting and
governance mechanisms. The company was consistently showing
large bank balances in its financial statements, which were not
consistent with other IT companies considering the size of its
business. At the closure of financials and to satisfy auditors, fake
bank confirmations and statements were generated and produced
as evidence of balances to auditors. The amount involved in the
fraud was around USD 1 billion.
• Government had to initiate an unprecedented rescue mission to
save the company, by first dismissing the board members of the
company, followed by the appointment of professionals as board
members led by Deepak Parikh. Ultimately, the company was sold
to Mahindra group and is now a major part of the successful
technology business of the Group.
 Corporate Frauds in India

2Kingfisher Airlines (KLA)

• KLA was another corporate fraud, which was first of its kind in the Airlines
industry, which ultimately led to fall of the empire of King of good times.
The airline was launched by flamboyant Vijay Mallya.
• The company resorted to borrowing funds by all possible means, including
related parties and pledge of Kingfisher brand by over-valuation of brand
value. Currently Vijay Malia is in the UK and fighting battle in courts to
stop his repatriation into India. Consortium of banks led by SBI has
exposure of around Rs, 9000 crores to now a virtually bankrupt airline.
Most employees lost or quit jobs as salaries were nor paid for months
together. The company went to the extent of defaulting in depositing
statutory dThere were a lot of red flags which could have been picked by
lenders and regulators, which were ignored and could have saved airlines
which had good potential. Lending against a brand which had never been
a practice is a glaring exampleues like PF, TDS deducted from salaries to
government authorities.
 Corporate Frauds in India

3. PNB
• PNB(Punjab national bank was the first major banking fraud reported in the
country, involving a massive amount of around Rs. 15000 crores. Fraud was
committed by Nirav Modi and Mehul Choksi, (through Gitanjali Gems, a listed
company owned by him). Both were in the business of importing rough diamonds
and exporting polished diamonds.
[Link]
• DHFL was the first ever fraud in a housing finance company, which happened
mainly due to active involvement of promoters in syphoning of funds and alleged
money laundering.
• How fraud was committed:
• Granting of loans to related parties of promoters
• Loans granted to parties, who were not credit worthy or were unknown having
same addresses in obscure locations
• Evergreening of bad loans
• Creation of around 6 lacs dummy accounts at one branch, using name of
borrowers who had already repaid loans.
• The Ethisphere Institute is a for-profit company
that defines and measures corporate ethical
standards, recognizes companies that excel, and
promotes best practices in corporate ethics.
• Three Indian companies have made it to the list
of the World Most Ethical Companies in the world
for the year 2021. The IT companies Infosys and
Wipro and the other one Tata Steel have found
the place in honorees.
Ethisphere Awards 2021
• CRISIL Limited: Credit Rating Information
Services of India Limited (CRISIL), one of the
oldest credit rating agencies, was set up in
1987. The agency stepped on to infrastructure
rating in 2016
• The full form of ICRA is Investment
Information and Credit Rating Agency of
India Limited.
 Ethics programs
• Ethics programs are designed to ensure that
there is no deviation from the standards laid
down and also to ensure that employees are
fair and honest in their conduct to the
organization.
 Ethics programs
• The four elements necessary to quantify an
organization's ethics are a
• written code of ethics and standards
• ethics training for executives, managers, and
employees
• availability for advice on ethical
situations (i.e, advice lines or offices)
• And systems for confidential reporting.
 Components of Ethics program
• Ethical Leadership
• Code of Ethics
• Ethics Training
• Ethics Committee
• Ethics Officer
• Communicating Ethics
• Support to whistleblower
• Ethics Audit
• Commitment from Top Management
 Ethics Committee
• Ethics Committees are formed in many
organizations that are exclusively devoted to the
pursuit of ethics at their workplaces.
• These committees may raise concerns of ethical
nature ,prepare or update codes of conduct and
resolve ethical dilemmas in companies.
• These committees may formulate ethics
policy,develop ethical standards and evaluate the
company’s compliance with them.
 Structure of Ethics Committee
• A committee should be chaired by a senior
non-executive .A senior executive should be
responsible to the committee for the
organizations ethics program .A member of
the committee should also be the member of
the audit committee.
• Members should be selected based on their
experience and conduct and there should be
complete freedom of speech.
 Functions of Ethics Committee
• Holding regular meeting to discuss ethical issues.
• Communicating the codes to all members of the
organization
• Checking the possible violations of the code
• Enforcing the codes
• Rewarding compliance and punishing violation
• Reporting activities of the committee to the
board of directors.
 Ethics Officer
• The Ethics Officer serves as the organization's
internal control point for ethics and
improprieties, allegations, complaints, and
conflicts of interest and provides corporate
leadership and advice on corporate
governance issues.
 Ethics Officer
• An Ethics Officer stands at the intersection
between auditing, internal control and
management's legal responsibilities, and is the
guardian of the company's code of conduct.
• The EO acts independently. He/she supplies
the top management with the necessary
information for the corporate leadership to
act appropriately in instilling and maintaining
the ethics culture the top management wants
 Duties of Ethics officer
• Advising Top management and board of directors
• Ensuring that the company makes the necessary regulatory
filings
• Resolving discrimination and sexual harassment cases
• Creating ethics cases
• Creating Ethics training
• Instituting Ethics reforms
• Developing and revising ethics code
• Monitoring ethical performance
• Overseeing Complaint systems
• Creating ethics policies
• Communicating ethics concerns and policies to employees
 Ethics Audit
• An ethical audit is an inspection or examination of
processes or systems to ensure compliance with
ethics-related requirements. It is an investigation into
how well, or poorly, a company or organization
conforms to the ethical standards of its industry or
society in general.
• The purpose of the ethical audit is to assess and
diagnose the ethics behind an organization's actions
and goals. An ethical audit would assess how well a
company is living up to generally accepted ethical
standards as well as its own ethical goals as an
organization
Ethics Audit
 CONDUCTING AN ETHICS AUDIT

• To be effective, an ethics audit must be a systematic

effort for which documentation is routinely kept and
must be sanctioned by the top management and
oversight boards, yet be independent of them.
• Ideally, depending upon the size of an organization, an
ethics audit committee should be established to
oversee the process and scope of the audit
• . Any conflicts of interests should be addressed,
confidentiality contracts should be signed, and
reporting relationships should be clarified in writing
 BENEFITS AND CAUTIONS OF ETHICS
AUDIT
• An ethics audit can benefit the organization by identifying
areas of misconduct before they grow into major problems
for the organization.
• It can also identify ethical issues that may have potential
legal impacts, and those that are negatively impacting
organizational performance. The data generated from the
audit can be used to establish goals to measure
organizational performance and to improve transparency
reporting with stakeholders. In terms of maximizing
organizational performance,
• A well-executed organizational audit of the type described
here could yield significant returns in the form of greater
organizational goal alignment, improved employee morale.
 Theories Of Ethics
• Theories are set of principals thoughtfully
devised to explain a group of facts.
• There are main three philosophical
approaches, to ethical reasoning.
1Teleological Ethics
2Deontological Ethics
[Link] Ethics
 Teleological Ethics
• The word teleological is derived from the greek word
telos, “end” logos, “science”.
• Teleology is the study of end , goals and purposes.
• It is also known as consequentiality approach, It
determines the moral conduct on the basis of
consequences of an activity.
• Whether an action is right or wrong would depend
upon the judgment about the consequences of such an
action.
• The idea is to judge the action moral if it delivers more
good than harm to the society.
• It must be understood that this satisfaction or
happiness should be for the society in general
and not to the people commiting the act or
the people who are involved in the act.
Consequentialist Theory Has 3Forms
[Link] Egoism
[Link]
[Link]
• [Link] Egoism
Egoism is the theory that ones self is or should be,
the motivation and the goal of one's own action.
Ethical Egoisms states that we are always morally
required to do what’s in our self interest .
It posits an action is good if it reduces or is likely to
reduce results that maximize the person’s self
interest as defined by him.
 Ethical Egoism

• According to the ethical egoism a particular

action, whose consequences will bring
benefits to the doer is ethical in this sense. It
claims that one’s own good is in line with
morality.
Utilitarianism
 Utilitarianism
• Utilitarianism would say that an action is right if it results in
the happiness of the greatest number of people in a society
or a group.
• Utilitarianism is a tradition of ethical philosophy that is
associated with Jeremy Bentham and John Stuart Mill, two
late 18th- and 19th-century British philosophers,
economists, and political thinkers.
• Utilitarianism holds that an action is right if it tends to
promote happiness and wrong if it tends to produce
sadness, or the reverse of happiness—not just the
happiness of the actor but that of everyone affected by it.
• utilitarianism, in normative ethics,
• According to the rules utilitarianism, individual acts are
judged in theory, not only in practice, according to whether
they are subject to a justified moral rule, and the utilitarian
criterion applies only to common rules.
• According to the act utilitarianism, if a particular act is right
or not depends only on the use it generates in comparison
with its possible alternatives. The act utilitarianists,
however, agree that in most cases empirical rules like “Keep
your promises” can be used in practice because their
pursuit maximizes the generate uses.
 Eudemonism
• Eudemonism is a moral philosophy that
defines right action as that which leads to
the "well-being" of the individual, thus holding
"well-being" as having essential value.
• Eudemonism is an ethical theory which maintains
that happiness (eudemonia) is reached
through virtue.
• A virtue is a trait or disposition of character that
leads to good behavior, for
example, wisdom, courage, modesty, generosity,
and self-control.
Theories OF Ethics
 Kantianism
• Kant’s theory is an example of a deontological
moral theory–according to these theories, the
rightness or wrongness of actions does not
depend on their consequences but on whether
they fulfill our duty.
 Kantianism
•
Kant believed that there was a supreme principle of
morality, and he referred to it as The Categorical
Imperative. The CI determines what our moral duties
are.
• Kant characterized the CI as an objective, rationally
necessary and unconditional principle that we must
always follow despite any natural desires or
inclinations we may have to the contrary. All specific
moral requirements, according to Kant, are justified by
this principle, which means that all immoral actions are
irrational because they violate the CI.
 Meta-ethics
• In meta philosophy and ethics, meta-ethics is the study
of the nature, scope, and meaning of moral judgment.
It is one of the three branches of ethics generally
studied by philosophers, the others being normative
ethics (questions of how one ought to be and act)
and applied ethics (practical questions of right behavior
in given, usually contentious, situations).
• While normative ethics addresses such questions as
"What should I do?", evaluating specific practices and
principles of action, meta-ethics addresses questions
such as "What is goodness?" and "How can we tell
what is good from what is bad?"
• The study of meta-ethics refers to the nature
of ethical terms and concepts and to the
attempt to understand the underlying
assumptions behind moral theories; therefore,
it is the branch of ethics that seeks to
understand the nature of ethical properties,
statements, attitudes, and judgments.
• It covers a broad range of questions
surrounding how we know what moral truth is
 Transparency International
• Transparency International is a global movement
working in over 100 countries to end the injustice
of corruption.
• They focus on issues with the greatest impact on
people’s lives and hold the powerful to account
for the common good.
• Through their advocacy, campaigning and
research, they work to expose the systems and
networks that enable corruption to thrive,
demanding greater transparency and integrity in
all areas of public life.
 Transparency International
• Transparency International (TI) is a German
registered voluntary association founded in
1993 by former employees of the World Bank.
• Based in Berlin, its nonprofit and non-
governmental purpose is to take action to
combat global corruption with civil
societal anti-corruption measures and
to prevent criminal activities arising from
corruption.
• In 1995, Transparency International developed
the Corruption Perceptions Index (CPI). The
CPI ranked nations on the prevalence of
corruption within each country, based upon
surveys of business people. The CPI was
subsequently published annually.
 Ethics Training

• The purpose of Ethics Training is "to enable

employees to identify and deal with ethical
problems developing their moral intuitions,
which are implicit in everyday choices and
actions“
• Ethics training activities aim "to enable all
organizational members to understand, share
and apply the values stated in the code of
ethics"
 Importance of Ethics Training

Ethics Training Helps

• The members of an organization judge the moral legitimacy of their
decisions, enabling them to apply moral principles and values in
business decision-making.
• Ethics training fosters the employees' agreement and compliance
with the organization's ethical vision representing a mutually-
acceptable balance between different stakeholders.
• Helps employees to understand, interiorize and contribute to the
corporate mission achievement through a conscious orientation of
their own choices and everyday behavior.
• Helps to identify warning signs of corruption.
• Equip people to handle ethical dilemma.
• Helps to understand ethical standards and code of ethics
 Importance of Ethics Training
• Strengthening the communication of the
corporate values and promoting a shared
ethics culture within the organization, and
• Facilitating the implementation of
sustainability and Corporate Social
Responsibility tools (e.g. code of ethics; social
and ethical accounting; sustainability
reporting; Internal ethical auditing; ethics
committee, etc.);
These benefits can be achieved through various
training formats and methods, including:
• Awareness raising seminars;
• Dilemma analysis training;
• Focus groups on specific organizational
issues/stakeholder relations; and
• Group role-play.
 WHISTLEBLOWING

• A whistleblower discloses information about

corruption or other wrongdoing being
committed in or by an organisation to
individuals or entities believed to be able to
effect action – the organisation itself, the
relevant authorities, or the public.
 Whistle blowing
• Whistle blowing is one of the most effective
ways to detect and prevent corruption and
other malpractice.
• “The attempt of an employee or former
employee of an organization to disclose what
he or she believes to be wrong doing in or by
the organization”
 Whistle Blower
• A whistle blower is a person who raises a concern
about the wrongdoing occurring in an organization or
body of people.
• He can be an employee working within the
organization or a contractor or a customer who
becomes aware of or notices any illegal activities
occurring within the organization.
• These activities can be of the form of fraud, corruption,
misconduct, deceiving employees, indiscipline, willful
misuse of power, criminal activity, health and safety
violations, non-compliance with the regulations, etc.
 Steps in Whistle blowing
• Step 1 – Get Evidence
• This is the most important step in your
whistleblower claim. It’s crucial that you get
documentary evidence of the fraud. Such
evidence can include emails, internal studies,
billing records, or test results.
• Step 2 – Presenting the Evidence
• Under the False Claims Act, the whistleblower
must file a complaint in court as well as submit it
to the government, along with a Disclosure
Statement that details the alleged misconduct.
 Steps in Whistle blowing
• Step 3 – Government Investigation
• Now comes the longest part of the claims
process – the government’s investigation.
During this time, all aspects of the matter,
including the whistleblower’s identity and the
investigation itself, will remain confidential
• Step 4 – The Decision
 Legal Support to whistle -Blower
• There have been multiple instances of threatening,
harassment and even murder of various
whistleblowers.
• An engineer, Satyendra Dubey, was murdered in
November 2003; Dubey had blown the whistle in a
corruption case in the National Highways Authority of
India’s Golden Quadrilateral project.
• Two years later, an Indian Oil Corporation officer,
Shanmughan Manjunath, was murdered for sealing a
petrol pump that was selling adulterated fuel. A
movie/Film has been made based on the said incident
titled ‘Manjunath’(2014).
 Legal Support to whistle -Blower
• Whistleblower Protection Act 2011
• Whistle Blowers Protection Act, 2011 is an Act
of the Parliament of India which provides a
mechanism to investigate alleged corruption
and misuse of power by public servants and
also protect anyone who exposes alleged
wrongdoing in government bodies, projects
and offices.
 Legal Support to whistle -Blower
• The Act seeks to protect whistleblowers
• Every complaint has to include the identity of the
complaintant
• The vigilance commission shall not disclose the
identity of the complainant except to the head of
the department if he deems it necessary. The bill
penalizes any person who has disclosed the
identity of the complainant.
• The Act prescribes penalties for knowingly
making false complaints.
 Legal Support to whistle -Blower
• The requirement that whistle-blower disclosures are made
in “good faith” is a principal component of much of the
whistle-blower protection legislation
• protection is only provided if the whistle-blower acts with
the belief, “on reasonable grounds”, that a violation or a
breach has occurred.
• Protection is granted if the above-mentioned condition is
met, even if the allegation is unfounded. Allegations of
intent to harm the employer or to abuse or misuse the
reporting procedures to gain advantage are commonly
considered and examined by the courts.
• People making false claims would not be granted
protection, if the falsehood were proven.
 Tips to successful Whistle Blowing
• 1. Blow the whistle at the right time
• You're entitled – and sometimes even legally
bound – to blow the whistle if you've become
aware of wrongdoing, unlawful conduct or
malpractice in the work environment and you feel
that it must be raised with your employer.
• 2. Blow the whistle when you are obliged to
• In certain circumstances, you may be subject to
reporting obligations under your professional
code of conduct,
 Tips to successful Whistle Blowing
• Blow the whistle according to company policy
• Your employer should have a whistleblowing policy in
place, which will tell you whom you should raise your
concerns with in the first instance and what the
procedure will then be for investigating your concerns
• Keep a record of your whistleblowing
• Even if your company policy is that you should raise
concerns verbally, it's a good idea to also put your
concerns in writing, and follow up your conversation
with a letter, or better still an email. This ensures you
have a record of what you said, when, and to whom.
 Tips to successful Whistle Blowing
• Be very careful about the words you use
• In law, protection for whistleblowers is based
on the fact that you're 'disclosing information'
about wrongdoing, not that they're making
unfounded allegations.
• Only blow the whistle on unlawful activity
• Whistleblower protection is there to ensure
that people feel safe revealing unlawful
and/or dangerous practices
 Tips to successful Whistle Blowing
• Remember to report – not to investigate
• Use a regulator if you must
• In some cases, it's evident that your employer is fully aware of wrongdoing
and wouldn't welcome your involvement as a whistleblower. This is when
you may be better taking the advice of an employment solicitor about the
best route for whistle blowing.
• Don't go public or go to the press
• Whistleblowing legislation is designed to protect people who blow the
whistle in the right way, and for the right reasons.
• Don't worry about confidentiality clauses
• While many employers ask people to sign non-disclosure agreements
("NDA") and compromise agreements in order to ensure confidentiality,
they don't prevent you from legitimate whistleblowing.
 Types of Whistle Blowers

Internal Whistleblower
• These whistleblowers report the wrongdoings of the
company to a superior authority within the organization.
• For e.g. an employee may report a fraud committed by his
co-worker to his CEO or head human resource.
External Whistleblower
• These whistleblowers reports the wrongdoing happening
inside a company to an outside authority like law
enforcement agencies, media groups, regulators, higher
government officials, etc. For e.g. a contractor may report a
big scam to appropriate government agency.
 Types of Whistle Blowers

• Cybersecurity Whistleblowers. They protect

the consumers and employees in online
spheres like hacks, breach in cloud storage
systems, unsecure practices, etc.