Contents
PART 1: THEORIES UNDERLYING THE ISSUES AND PROBLEMS OF BUSINESS ETHICS
Chapter 1: Business Ethics: An Overview
Principles of Professional Ethics
Code of Conduct and Ethics for Managers
Evolution of Ethics Over the Years
Importance and Need for Business Ethics
Significance of Business Ethics
Honesty, Integrity and Transparency are the Touchstones of Business Ethics
Values, Ethics and Business Strategy
Distinction Between Values and Ethics
Why Does Business Have Such a Negative Image?
Why Should Businesses Act Ethically?
How Corporations Observe Ethics in Their Organizations?
Changing Business Environment and Ethical Challenges
How Ethics Can Make Corporate Governance More Meaningful?
Benefits from Managing Ethics in Workplace
Characteristics of an Ethical Organization
Recognizing Ethical Organizations
CASE STUDY: Infosys Technologies—the Best Among Indian Corporations
Chapter 2: Concepts and Theories of Business Ethics
Personal Ethics and Business Ethics
How Are Moral Standards Formed?
Morality, Etiquette and Professional Codes
Ethical Theories in Relation to Business
Some More Normative Theories of Business Ethics
CASE STUDY: Biocon—India’s Own Home-Grown Biotech Company
Chapter 3: Ethical Dilemmas, Sources and Their Resolutions
How Ethical Dilemmas in Business Affect the Stakeholders?
Corporate Dilemma Over Ethical Behaviour
Why Does Business Have a Negative Image?
Why Businesses Should Act Ethically?
How Corporations Observe Ethics to Reduce Dilemmas?
Code of Personal Ethics for Employees
How to Create an Ethical Working Environment?
How Does a Company Establish Ethical Standards?
Walton’s Six Models of Business Conduct
How to Resolve an Ethical Problem?
How to Resolve Ethical Dilemmas
CASE STUDY: Hll’s Folly: Mercury Spill in Kodaikanal
Chapter 4: Ethical Decision Making in Business
Ethical Models that Guide Decision Making
Ethical Decision Making with Cross-Holder Conflicts and Competition
Applying Moral Philosophy to Ethical Decision Making
Kohlberg’s Model of Cognitive Moral Development
Influences on Ethical Decision Making
Personal Values and Ethical Decision Making
Corporate Values and Ethical Decision Making
Role of Corporate Governance in Ensuring Ethics in the Workplace
A Framework of Ethical Decision Making
The Process of Making Good Ethical Decisions
CASE STUDY: Global Trust Bank: The Bank that Went Bust
Chapter 5: Globalization and Business Ethics
Factors Facilitating Globalization
Doing Business in A Diverse World
Role of Multinational Corporations
Current Issues—Multinational Corporations
Benefits of MNCs to the Host Nation
Disadvantages of MNCs to the Host Country
International Codes of Business Conduct
The Limits of Voluntary Approach
Caux Round Table: Principles for Business
Challenges of Globalization in the Context of Growing Market Economies
Technological Challenges and Opportunities
Key Global Issues for Business
Corporate Governance is a Prerequisite for Globalization
CASE STUDY: Sterlite: Using Money Clout to Maximum Advantage
Chapter 6: Creating an Ethical Organization
The Problem Is Not with Corporations, but the People Who Run Them
Fat Pay Did Not Ensure Better Governance
Fraudulent Accounting Too Played Its Destructive Role
Independent Directors Too Did Not Help Reduce Malpractices
Reasons for the Failure of Conventional Measures
Suggestions to Improve Corporate Virtue
Role of Corporate Social Responsibility
Other Influences in Creating an Ethical Organization
Developing and Executing a Comprehensive Ethics Programme
CASE STUDY: Wipro Limited: An Earnest Effort to Create an Ethical Organization
PART 2: HOW CAN ETHICS BE APPLIED IN DAY-TO-DAY BUSINESS?
Chapter 7: Corporate Ethics: Good Governance
Definitions of Corporate Governance
Desiderata of Corporate Governance
A Historical Perspective of Corporate Governance
Significance of Corporate Governance to Developing Countries
Issues in Corporate Governance
Major Thrust Areas of Corporate Governance
Strategies and Techniques Basic to Sound Corporate Governance
Indian Model of Corporate Governance
What Is ‘Good’ Corporate Governance?
Implementation of Recommendations of Birla Committee Report
The Reserve Bank’s and Other Regulations
Pioneers in Good Governance Practices
Corporate Governance in India—A Performance Appraisal
Future of Corporate Governance in India
Impetus for the Growth of Corporate Governance in India
CASE STUDY: Tata Steel—A Company that also Makes Steel
Chapter 8: Corporate Ethics: Investors Rights, Privileges, Problems and Protection
Ethical Governance Needed to Protect Stakeholders
Theoretical Basis—Agency Costs
Views of Various Committees on the Issue
Dr J. J. Irani Committee Report on Company Law, 2005
Poor Track Record of Shareholder Protection in India
Guide for Investors/Shareholders
N. K. Mitra Committee on Investors Protection
Problems of Investors in India
Law Enforcement for Investor Protection
Lacunae in Investor Protection
Sebi’s Poor Performance and Suggestions for Improvement
CASE STUDY: On Insider Trading (HLL-BBLIL Merger)
Chapter 9: Handmaid of Ethics: Corporate Social Responsibility
Why Social Responsibility of Business?
Today’s Corporate Social Responsibility
Theoretical Justification for CSR
What Are Corporations Expected to Do?
Models for Implementation of CSR
CSR as a Business Strategy for Sustainable Development
India on the Ethical/CSR Matrix
Ethics and Social Responsibility of Business
Social Responsibility and Indian Corporations—A Score Card
CASE STUDY: Dr Reddy’s Laboratories: Commitment to All-Round Corporate Excelence
Chapter 10: The Ethics of Consumer Protection
Consumer—An Important Stakeholder
Consumer and Consumer Protection
Parties to Consumer Protection
History and Growth of Consumer Protection
Ralph Nader’s Contribution to Consumer Protection
Consumer Protection, Why and How
Consumer Duties and Responsibilities
Consumer Protection: Indian Scenario
Spate of Consumer-Oriented Legislations
How Are Indian Consumers Exploited?
Consumer Protection (Amendment) Act 2002
Prevention of Food Adulteration Act, 1954
Institutional Arrangements Under Copra
Standards of Weights and Measures
Role and Initiatives of Voluntary Organizations
Other Initiatives to Promote Consumer Protection
CASE STUDY: Wockhardt Ltd—Divergence Between Precepts and Practices
Chapter 11: Environmental Ethics
Environmental Preservation: Role of Stakeholders
Costs and Benefits of Environmental Regulation
Role of Corporations in Environmental Management
Innovative Business Responses to Environmental Regulations
Waste Management and Pollution Control
Improving Corporate Environmental Performance
Environmental Management in India
Charter for Voluntary Pollution Control
Corporate India Gets Eco Friendly
CASE STUDY-1: E-Waste: The Latest Contributor to Environmental Degradation
CASE STUDY-2: Tirupur—A Study on Its Environmental Degradation
Chapter 12: Role of Various Agencies in Ensuring Ethics in Corporations
Role of Auditors in Ensuring Business Ethics
Role of Board of Directors in Ensuring Ethical Business
Role of Government Agencies in Ensuring Ethical Practices
Role of SEBI in Ensuring Ethical Corporate Governance
CASE STUDY-1: Ketan Parekh Scam 2001
CASE STUDY-2: Satyendra Dubey: A Patriotic but Unfortunate Whistle-blower
Chapter 13: Ethics and Indian Business
Role of Securities Market in Economic Growth
Phenomenal Growth of Indian Capital Market
Nature of the Indian Capital Market
Development of the Indian Capital Market
Deficiencies in the Indian Capital Market
Can Unethical Behaviour Be Avoided?
Reasons for Unethical Practices Among Indian Corporations
Business Ethics in India Today
Corporations in India Cannot Afford to Be Ethical
Some Unethical Issues in India
Why Should Indian Business Be Ethical?
Studies on Ethical Attitudes of Managers
Some Questionable Business Practices
CASE STUDY: Demat Scam 2003–2005
PART 3: FUNCTIONAL AREAS IN BUSINESS MANAGEMENT
CASE STUDY: The Cola Conundrum
Chapter 15: Ethical Issues in Human Resource Management
Genesis and Growth of Human Resource Management
Scope of Human Resources Management
Different Aspects of Human Resources Management
Different Functional Areas of HRM
Changing Profile of HR Professionals
Role of HRM in Creating an Ethical Organization
Creating an Ethical Organization
CASE STUDY-1: The Phaneesh Murthy Sexual Harassment Case
CASE STUDY-2: HMSI—Better Wages Cannot Suppress Workers’ Demand for Their Rights
Chapter 16: IT Industry: An Overview and Ethical Perspective
Unique Characteristics of IT-ITES Industry
Ethical Perspective of IT-ITES Industry
CASE STUDY-1: Mphasis Case: If Individuals Do Not Comply, Safeguards Achieve Little
CASE STUDY-2: Credit Card Data Fraud
CASE STUDY-3: Cyber Crimes—The Glitches Amidst the Glow
Chapter 17: Financial Management: An Overview and Ethical Perspective
Constraints to Ethical Practices in Indian Nationalized Banks
Frauds in the Insurance Sector
Ethical Issues Arising Out of Activities of Professional Players
MINI CASE 1: Xeroxing Corruption
MINI CASE 2: Foulplay by Soundcraft Industries’ Promoter
MINI CASE 3: Tricking Investors for Personal Gain