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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Introduction Importance of Business Ethics

Introduction to Business ethics

What is Business ethics?

Applied Ethics Integration of honesty, trust, equality and respect

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Introduction Importance of Business Ethics

Importance of Business Ethics

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Common Decency Justice EDM

Common Decency

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Common Decency Justice EDM

Justice

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Common Decency Justice EDM

Ethical Decision Model

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Common Decency Justice EDM

What is the question?

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Common Decency Justice EDM

Is it relevant to this business?

Discussing abstract ethical issues will not contribute to business.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Common Decency Justice EDM

What are the external constraints on the business?

If action against law, no need to consider for ethical discussion. prohibitive costs may be involved (Dont consider).

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Common Decency Justice EDM

Apply the ethical principles

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Advertising and Marketing Human Resource Environmental Considerations Ethical issues in Finance

Advertising and Marketing

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Advertising and Marketing Human Resource Environmental Considerations Ethical issues in Finance

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Advertising and Marketing Human Resource Environmental Considerations Ethical issues in Finance

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Advertising and Marketing Human Resource Environmental Considerations Ethical issues in Finance

Why should businesses be green?

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Advertising and Marketing Human Resource Environmental Considerations Ethical issues in Finance

Ethical issues in Finance

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Advertising and Marketing Human Resource Environmental Considerations Ethical issues in Finance

Takeovers

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

i-ex Solutions Ltd.

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

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.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

Ethics towards employees

Facilities like Mediclaim, Insurance, accommodation Regular holidays, casual leaves, medical leaves, maternity leaves. Sports and cultural activities. Full funding for specialized certications and dierent 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.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

Ethics towards customers

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

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-exers from Bangalore recently spent a day with 160 children from SOS Childrens Village. Infrastructure Support to school for the economically backward children at the Hope Foundation in Bangalore. i-exers with other enumerable organizations, have brought immediate succor to the aicted.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

State Bank of India

Ethical Code of Conduct To provide services in professional, ecient, 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 nancial advice to the customers.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

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!

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

Ethics towards customers

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

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

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 nance.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

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.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

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 prot maximization.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

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.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

i-ex Solutions State Bank of India Beans and Intellect Pvt. Ltd. and Eisodus Networks Pvt. Ltd

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.

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

Introduction Ethical Decision Model The Ethical Questions Case Studies Conclusion

Conclusion

Conclusion

Crux of ethical decision making model touched Well established rms mostly:
follow ethical considerations strictly. have taken admirable CSR initiatives.

Startups/small rms mostly rely on verbal mutual understanding. Ethics not strictly followed.

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