Q-1 What are the ethical issues faced by organizations in

today’s environment? What will be your suggestion for

Eliminating the evil of corruption in an organization?

Introduction:

Ethics, social responsibility of business and corporate

governance have become hot issues in the wake of a series
scandal reported from all over the world. This subject needs
special attention because multinationals operate in a large
number of countries with varying standards of moral behavior
and multicultural perceptions about what is right and what is
wrong. Their workface also consists of high diversity with
individuals having different values and beliefs. The is
important also as economic programs of developed and
developing countries cannot only be faster but also will be
long lasting if built on strong moral foundation.

What is ethics?

‘Ethics is the discipline that examines the moral standards

practiced by an individual or a corporate or a society.’ It is a
function of one’s consciousness. It is therefore beyond the
boundaries of law. Some activities may be legal but may not
be ethical, although law represents the moral code or standards
practices by a society or country to resolve conflicts and allow
freedom to achieve their uniqueness, pursue their goals and
live in peace. It represents the practiced value system.
While ethics, in general, is concerned with concepts of right
and wrong for societal purposes .its practical essential is best
expressed by the seven sins of Mahatma Gandhi, which are as
under:
 Politics without Principles
 Wealth without work
 Pleasure without Conscience
 Knowledge without Character
 Commerce without Morality
 Science without humanity
 Worship without sacrifice

Ethical issues faced by Organizations:

Some of the common unethical practices business resort to
include:
Manipulation of stock markets: In India manipulation of
stock market is not uncommon. There are several
investigations and a few brokerage firms and individuals have
been prosecuted. MNCs generally avoid manipulation of
capital markets.
Lobbying: This is a tool of public relations. Japanese more
than other countries spend millions of dollars in the US every
year to bend rules in award of contracts or to get sensitive
information or restricted equipment.
Fudging of Accounts and Balance Sheet: It is very common in
developing countries like India and Indonesia to manipulate
accounts to avoid taxes or manipulate share price before
public issue. Eg: Enron, world.com, water cooper and Satyam.
Product Piracy: Lax enforcement of intellectual property
rights has resulted in large-scale piracy of music and picture
videos, software, fake drugs and other intellectual property
capital in China, India, Latin America and Eastern Europe. It
is estimated that 30,000 shops in Shangai alone sell pirated
videos.
Surrogate and Deceptive Advertising: There are many
ethical issues in advertising, including violation of cultural
norms and nudity, apart from false information to customers.
Eg: cake and Pepsi.
Discrimination in selection, competition and promotion: In
spite of equality laws in different countries companions still
practice same bias in selection and other management process
on the basis of gender, colour, and race and show
ethnocentrism. Sexual harassment at workplace is a growing
trend.

Suggestions to eradicate corruption:

1. Institution of strong ethical structure based on social

values and professional requirements.
2. Institution and execution of sound process of business.
3. Promote a clear understanding of ethical behavior and its
advantages in individual and business growth.
4. Strong action against unethical behavior.
5. Speedy disposal of unethical behavior cases.
6. Sound appraisal system.
7. Planning and execution of a clearly defined award and
reward system based on professional ethics.
8. Transparency in working.