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					                                             Introduction
                                   Ethical Decision Model
                                    The Ethical Questions
                                             Case Studies
                                               Conclusion




               Ethical Considerations in Business Decision
                       Making in Indian Companies


                                             Aditya Mishra,
                                            Bhavana Dalvi,
                                            Saurabh Sahni,
                                            Vibhooti Verma
                                           under Guidance of
                                          Prof. K. Narayanan
                                                     IIT Bombay


                                                8th April 2006
                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model
                                                               Introduction
                                    The Ethical Questions
                                                               Importance of Business Ethics
                                             Case Studies
                                               Conclusion


Introduction to Business ethics




             What is Business ethics?
                     Applied Ethics
                     Integration of honesty, trust, equality and respect




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model
                                                               Introduction
                                    The Ethical Questions
                                                               Importance of Business Ethics
                                             Case Studies
                                               Conclusion


Importance of Business Ethics




             Avoid bankruptcy, fines, lawsuits and criminal Charges.
             Strengthens sales, brand image, and reputation.
             Strengthens employee loyalty.
             Avoid loss of business.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      Common Decency
                                    The Ethical Questions      Justice
                                             Case Studies      EDM
                                               Conclusion


Common Decency




             The common decency is the maintenance of standards of
             ordinary decent behavior by all to all associated with business.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      Common Decency
                                    The Ethical Questions      Justice
                                             Case Studies      EDM
                                               Conclusion


Justice




             Relates rewards to contributions.
             Pays should reflect contribution to achieving business aims.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      Common Decency
                                    The Ethical Questions      Justice
                                             Case Studies      EDM
                                               Conclusion


Ethical Decision Model




             What is the question?
             How does it affect this business?
             What are the external constraints?
             Apply the ethical principle.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      Common Decency
                                    The Ethical Questions      Justice
                                             Case Studies      EDM
                                               Conclusion


What is the question?




             The question for this business, now?
             Not required to solve general moral problems.
             What is at stake?who is affected and how?




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      Common Decency
                                    The Ethical Questions      Justice
                                             Case Studies      EDM
                                               Conclusion


Is it relevant to this business?




             Discussing abstract ethical issues will not contribute to
             business.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      Common Decency
                                    The Ethical Questions      Justice
                                             Case Studies      EDM
                                               Conclusion


What are the external constraints on the business?




             If action against law, no need to consider for ethical
             discussion.
             prohibitive costs may be involved (Don’t consider).




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      Common Decency
                                    The Ethical Questions      Justice
                                             Case Studies      EDM
                                               Conclusion


Apply the ethical principles




             Apply the principles of Justice and decency.
             Do actions contribute to, ”Long term owner value”?




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                                               Advertising and Marketing
                                   Ethical Decision Model
                                                               Human Resource
                                    The Ethical Questions
                                                               Environmental Considerations
                                             Case Studies
                                                               Ethical issues in Finance
                                               Conclusion


Advertising and Marketing



             Campaign material is expected to follow legal norms.
             Benetton, displayed posters of a newly borned baby.
             There is no predefined ethical standard.
             Many people find these ADs exciting.
             Eg. Breast feeding poster won industry awards.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                                               Advertising and Marketing
                                   Ethical Decision Model
                                                               Human Resource
                                    The Ethical Questions
                                                               Environmental Considerations
                                             Case Studies
                                                               Ethical issues in Finance
                                               Conclusion


Advertising and Marketing




             marketing of tobacco
             Not only encourages people to satisfy wants, it creates these
             wants
             It shapes our notion about quality of life




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                                               Advertising and Marketing
                                   Ethical Decision Model
                                                               Human Resource
                                    The Ethical Questions
                                                               Environmental Considerations
                                             Case Studies
                                                               Ethical issues in Finance
                                               Conclusion


Human Resource




             Equality in the workplace
             Win-Win condition between employer & employee
             People motivated by desire to be treated fairly
             Criteria need to be publicly available




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                                               Advertising and Marketing
                                   Ethical Decision Model
                                                               Human Resource
                                    The Ethical Questions
                                                               Environmental Considerations
                                             Case Studies
                                                               Ethical issues in Finance
                                               Conclusion


Why should businesses be green?




             Improves employee morale and helps attract better quality
             staff
             Cuts costs by eliminating wastes and saving energy
             Bring competitive advantage
             Producing cheaper but less green or selling green at a premium




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                                               Advertising and Marketing
                                   Ethical Decision Model
                                                               Human Resource
                                    The Ethical Questions
                                                               Environmental Considerations
                                             Case Studies
                                                               Ethical issues in Finance
                                               Conclusion


Ethical issues in Finance




             Not concerned with the morality of making money
             About why and how money is made




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                                               Advertising and Marketing
                                   Ethical Decision Model
                                                               Human Resource
                                    The Ethical Questions
                                                               Environmental Considerations
                                             Case Studies
                                                               Ethical issues in Finance
                                               Conclusion


Takeovers




             Should not be unthinking reflex action
             Acceptable if it makes a net contribution to shareholders’
             wealth




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


i-flex Solutions Ltd.




             i-flex solutions provide IT solutions to the financial services
             industry.
             Follows Business ethics quite strictly.
             Well written corporate code of conduct as well as ethical
             policies.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


i-Flex Code of Conduct




             Conformance to laws, regulations and corporate policies.
             Respect Human dignity and esteem.
             Honest and accurate communications.
             Fairness in actions and decision making.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Ethics towards employees

             Facilities like Mediclaim, Insurance, accommodation
             Regular holidays, casual leaves, medical leaves, maternity
             leaves.
             Sports and cultural activities.
             Full funding for specialized certifications and different training
             programmes.
             Promotes higher education and encourages research work.
             Recent sponsorship for employees to participate in ”The Asian
             Banker Summit 2006”, ”FSIUG User Conference 2006” and
             ”Gartner Outsourcing Summit 2006” and many more.


                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Ethics towards customers




             Customer care cell which operates 24 X 7.
             Builds sustained and comprehensive relationships with
             customers.
             Software bugs fixed without any additional cost.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Corporate Social Responsibility


             Funds to Vatsalya Trust, Mumbai, an orphanage and adoption
             agency.
             Coaching, kits, and other assistance to physically challenged
             children at the Freedom Trust, Chennai.
             i-flexers from Bangalore recently spent a day with 160
             children from SOS Children’s Village.
             Infrastructure Support to school for the economically
             backward children at the Hope Foundation in Bangalore.
             i-flexers with other enumerable organizations, have brought
             immediate succor to the afflicted.


                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


State Bank of India
      Ethical Code of Conduct
             To provide services in professional, efficient, courteous,
             diligent and speedy manner.
             Not to discriminate on the basis of religion, caste, sex,
             descent or any of them.
             To be fair and honest in advertisement and marketing.
             To provide accurate and timely disclosure of terms, costs,
             rights and liabilities.
             To comply with all the regulatory requirements.
             To spread general awareness about potential risks in
             contracting loans
             To provide financial advice to the customers.
                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Ethics towards employees




             Low loan interest rates and high interest rates on deposits.
             Medical reimbursements, accommodation, insurance, PF,
             pension, etc.
             Healthy, safe and productive work environment.
      Still unrest in employees. Latest SBI strike!




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Ethics towards customers




             Keep customer information confidential.
             Notify interest rate changes.
             Send details for all charges payable by customers.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Ethics towards society



             Interest free loans for crop production, horticulture and
             plantation crops etc.
             Launched ”Gram Nivas Scheme” with focus on the poor for
             Housing Loans
             Contributed in poverty alleviation programme by Micro
             finance.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt.
Ltd



             Beans and Intellect Financial Solutions is a startup with focus
             on solving complex quantitative problems by using
             mathematical modelling
             Eisodus Networks another startup, focus on next generation
             technology for broadband access.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt.
Ltd




             Verbal practices based on mutual understanding.
             Ethical standards are not very strictly followed.
             Short term goals are profit maximization.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Ethics towards employees




             Employees are underpaid due to lack of revenue in BI.
             No provisions for higher studies or educational leave.
             No mediclaim and insurance.
             Few recreational activities.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model      i-flex Solutions
                                    The Ethical Questions      State Bank of India
                                             Case Studies      Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd
                                               Conclusion


Ethics towards customers and society




             Contract based services are provided for maintenance.
             Being startups no CSR initiatives.
             Customer satisfaction for the product is average
             Plan to charge high because of an innovative product.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com
                                             Introduction
                                   Ethical Decision Model
                                    The Ethical Questions      Conclusion
                                             Case Studies
                                               Conclusion


Conclusion



             Crux of ethical decision making model touched
             Well established firms mostly:
                     follow ethical considerations strictly.
                     have taken admirable CSR initiatives.
             Startups/small firms mostly rely on verbal mutual
             understanding. Ethics not strictly followed.




                                                              Ethical Considerations in Narayanan
Aditya Mishra, Bhavana Dalvi, Saurabh Sahni, Vibhooti Verma under Guidance of Prof. K. Business Decision Making in Indian Com

				
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posted:7/7/2011
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