VALUES Values can be defined as broad preferences concerning appropriate courses of action or be.

outcomes. As such, values reflect a persons sense of right and wrong or what ought to

Values are core beliefs that guide and motivate attitudes and actions. Values can be defined as those things that are important to or valued by someone. That someone can be decisions about right and wrong, should and shouldn't, good and bad. They also tell us value over another. an individual or, collectively, an organization. Values are the rules by which we make which are more or less important, which is useful when we have to trade off meeting one

A value system is a set of consistent values and measures. A principle value is a foundation upon which other values and measures of integrity are based.

According to Morris Massey values are formed during three significant periods: 1. Imprint period from birth to 7 years. 2. Modelling period from 8 13 years. 3. Socialization period from 13 21 years.

Personal Values provide an internal reference for what is good, beneficial, important,

useful, beautiful, desirable, constructive, etc. Values generate behaviour and help solve common human problems for survival by comparative rankings of value, the results of which provide answers to questions of why people do what they do and in what order they choose to do them. Morals Morals have a greater social element to values and tend to have a very broad acceptance.

Morals are far more about good and bad than other values. We thus judge others more strongly on morals than values. A person can be described as immoral, yet there is no word for them not following values. Ethics Ethics tend to be codified into a formal system or set of rules which are explicitly adopted by a group of people. For example- medical ethics. Ethics are thus internally defined and adopted, whilst morals tend to be externally imposed on other people.

Greek root ethos meaning character, guiding beliefs, standards or ideals that pervade a group, community or people

Ethics refers to a set of moral principles which should play a very significant role in guiding the conduct of managers and employees in the operation of any enterprise It is normative and perspective, not neutral Utilitarian proposed course of action should be judged from the standpoint of the greatest good for the greatest number of people

Moral indicates what people do, while ethics represent what people should do

IMPORTANCE OF ETHICS AND VALUES IN BUSINESS 1. Profit Maximization

Ethical businesses tend to make much more profits than the others. The reason for this is that customers of businesses which follow ethics are loyal and satisfied with the services and product offerings of such businesses. 2. Efficient Utilization of Business Resources

If the management or seniors of an organization follow ethical business practices, i.e., they do not cheat the customers, investors, suppliers, etc., the employees will follow suit. This will result in better and efficient utilization of the business resources. 3. Creates Goodwill in the Market

An organization, which is well-known for its ethical practices, creates goodwill for itself in the market. Investors or venture capitalists are more willing to put their money in the ethical business. 4. Some businesses which they can trust. Shareholders too, remain satisfied with the practices of an Stop business malpractices: unscrupulous

unfair trade practices like black-marketing, artificial high pricing, adulteration, cheating in weights and measures, selling of duplicate and harmful products, hoarding, etc. These business malpractices. business malpractices are harmful to the consumers. Business ethics help to stop these

businessmen

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business malpractices

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5.

Business ethics are needed to improve the customers' confidence about the quality, businessmen who follow ethical rules. 6. Survival of business:

Improve customers' confidence:

quantity, price, etc. of the products. The customers have more trust and confidence in the

Business ethics are mandatory for the survival of business. The businessmen who do not they can cheat a consumer only once. After that, the consumer will not buy goods from

follow it will have short-term success, but they will fail in the long run. This is because that businessman. He will also tell others not to buy from that businessman. So this will defame his image and provoke a negative publicity. This will result in failure of the business. Therefore, if the businessmen do not follow ethical rules, he will fail in market. 7.

the market. So, it is always better to follow appropriate code of conduct to survive in the Safeguarding consumers' rights:

The consumer has many rights such as right to health and safety, right to be informed, respect and protect these rights. Business ethics are must to safeguard these rights of the consumers. 8. Protecting employees and shareholders:

right to choose, right to be heard, right to redress, etc. But many businessmen do not

Business ethics are required to protect the interest of employees, shareholders, competitors, dealers, suppliers, etc. It protects them from exploitation through unfair trade practices. 9. Develops good relations:

Business ethics are important to develop good and friendly relations between business and society. This will result in a regular supply of good quality goods and services at low prices to the society. It will also result in profits for the businesses thereby resulting in growth of economy. 10. Creates good image:

Business ethics create a good image for the business and businessmen. If the businessmen follow all ethical rules, then they will be fully accepted and not criticised by the society. conduct. 11. The society will always support those businessmen who follow this necessary code of Smooth functioning:

If the business follows all the business ethics, then the employees, shareholders, consumers, dealers and suppliers will all be happy. So they will give full cooperation to

the business. This will result in smooth functioning of the business. So, the business will grow, expand and diversify easily and quickly. It will have more sales and more profits. 12. Consumer movement:

Business ethics are gaining importance because of the growth of the consumer movement. cannot be cheated easily. They take actions against those businessmen who indulge in bad (duplicate) goods. Therefore, the only way to survive in business is to be honest and fair. 13. Consumer satisfaction:

Today, the consumers are aware of their rights. Now they are more organised and hence business practices. They boycott poor quality, harmful, high-priced and counterfeit

Today, the consumer is the king of the market. Any business simply cannot survive without the consumers. Therefore, the main aim or objective of business is consumer too. Consumer will be satisfied only if the business follows all the business ethics, and hence are highly needed. 14. Importance of labour: satisfaction. If the consumer is not satisfied, then there will be no sales and thus no profits

Labour, i.e. Employees or workers play a very crucial role in the success of a business. Therefore, business must use business ethics while dealing with the employees. The business must give them proper wages and salaries and provide them with better working employees must also be given proper welfare facilities. 15. Healthy competition:

conditions. There must be good relations between employer and employees. The

The business must use business ethics while dealing with the competitors. They must have

healthy competition with the competitors. They must not do cut-throat competition. Similarly, they must give equal opportunities to small-scale business. They must avoid monopoly. This is because a monopoly is harmful to the consumers.

BUSINESS RESPONSIBILITIES TOWARDS STAKEHOLDERS Stakeholders are individuals or groups that have interests, rights, or ownership in an example of primary stakeholder groups. Each has interest in how an organization success and can be harmed by its mistakes.

organization and its activities. Customers, suppliers, employees, and shareholders are performs or interacts with them. These stakeholder groups can benefit from a companys

Secondary stakeholders are also important because they can take action that can damage

or assist the organization. Secondary stakeholders include governments (especially through regulatory agencies), unions, nongovernmental organizations (NGOs), activities, political action groups, and the media.

In orders to serve their stakeholders in an ethical and social manner, more and more

organizations are adapting the model of corporate social responsibility. The term Corporate Social Responsibility goes by many other terms such as corporate citizenship, responsible business or simply corporate responsibility.

Corporations have certain responsibilities and duties toward their customers and consumers in society:

1. Duty to inform

2. Duty not to misrepresent

3. Duty not to force or take undue advantage

4. Duty to take due care to prevent any unforeseeable injuries Rights consumers have in their social contact with corporations include: 5. Right to safety 7. Right to know

6. Right to free and rational choice 8. Right to be heard

9. Right to be compensated Corporate Responsibility toward Consumer Stakeholders 1. The free-market theory holds that the primary aim of business is to make a profit. 2. There are several arguments regarding the free-market theory. 3. The mixed market economy perspective includes a balance between the private property systems and the government laws, policies, and regulations that protect consumers and citizens.

Corporate Responsibility and the Environment 1. The most significant environmental problems include: Toxic air pollution Water pollution and the threat of scarcity Hazardous waste and land pollution 2. Causes of environmental pollution include: Consumer affluence Urbanization Materialistic cultural values Population explosion Industrial activities

New and uncontrolled technologies

3. A number of governmental regulatory agencies have been created to develop and enforce policies and laws to protect the general and workplace environments: OSHA CPSC EPA CEQ 4. An innovative trend in new ecology ethical thinking is linking the concepts of: Green marketing

Environmental justice Industrial ecology

5. The ethical principles of rights and duties regarding the treatment of the environment and multiple stakeholders are: Rights of future generations

Right to a livable environment 6. New assumptions and practices driving corporate changes toward the environment include:

International community

 Green marketing

Environmentally friendly strategies

When an organization builds ethical and social elements in its operating philosophy and

integrate them in its business model, it is said to have possessed a self-regulating mechanism that guides, monitor and ensure its adherence to law, ethics, and norms in carrying out business activities that ensures the serving the interest of all external and achieved when its activities meet or exceed the expectations of all its stakeholders. internal stakeholders. In other words, the objective of being socially responsible business is

Total Corporate Social Responsibility

Social Responsibility Social responsibility is the duty and obligation of a business to other stakeholders. Stakeholder Employee Supplier Local Example of responsibility to that stakeholder Good return on investment Fair pay and working conditions Regular business and prompt payment Fair price and safe product Jobs and minimum disruption Employment for local community Less pollution

Shareholder

Customer community

Government Environment