IMPACT OF GOVERNMENT POLICIES ON CORPORATE

OVERVIEW
1. MEANING AND UNDERSTANDING OF ETHICS.

2. MEANING AND UNDERSTANDING OF BUSSINESS ETHICS.

3. GOVERNMENT POLICIES AND BUSSINESS ETHICS. 4. LAW Vs ETHICS(DIFFERENCE AND SIMILARITIES). 5. FRAMEWORK FOR ETHICAL DECISION MAKING.

6. CONCLUSION.

1.MEANING AND UNDERSTANDING OF ETHICS

DEFINITION AND MEANING OF ETHICS. APPROACHES TO ETHICS.

SOURCES OF ETHICS.

DEFINITIONS OF ETHICS.

MEANING OF ETHICS.
Ethics is concerned with what is good for individuals and society and is also described as moral philosophy. The term is derived from the Greek word ethos which can mean custom, habit, character or disposition. Ethics covers the following dilemmas: how to live a good life. our rights and responsibilities. the language of right and wrong. moral decisions - what is good and bad?

APPROACHES TO ETHICS.
1. Meta-ethics- deals with the nature of moral judgement. It looks at the origins and meaning of ethical principles. 2. Normative ethics- is concerned with the content of moral judgements and the criteria for what is right or wrong. 3. Applied ethics- looks at controversial topics like war, animal rights and capital punishment.

SOURCES OF ETHICS.
I. SUPERNATURALISM. II. SUBJECTIVISM(RELATIVISM). III. CONSEQUENTIALISM. IV. INTUITIONISM. V. EMOTIVISM. VI. DUTY-BASED ETHICS. VII.VIRTUE ETHICS. VIII.SITUATION ETHICS.

2.MEANING AND UNDERSTANDING OF BUSSINESS ETHICS.

MEANING OF BUSSINESS ETHICS. HISTORY OF BUSSINESS ETHICS.

SOURCES OF BUSSINESS ETHICAL STANDARDS.

CASE STUDIES.

MEANING OF BUSSINESS ETHICS.

HISTORY OF BUSSINESS ETHICS

The term 'business ethics' came into common use in the United States in the early 1970s. By the mid-1980s at least 500 courses in business ethics reached 40,000 students, using some twenty textbooks and at least ten casebooks along supported by professional societies, centres and journals of business ethics. The Society for Business Ethics was started in 1980. European business schools adopted business ethics after 1987 commencing with the European Business Ethics Network (EBEN).

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In 1982 the first single-authored books in the field appeared. Firms started highlighting their ethical stature in the late 1980s and early 1990s, possibly trying to distance themselves from the business scandals of the day. The idea of business ethics caught the attention of academics, media and business firms by the end of the Cold War.

SOURCES OF BUSSINESS ETHICAL STANDARDS(APPROACHES)

I. The Utilitarian Approach: Some ethicists emphasize that the ethical action is the one that provides the most good or does the least harm, or, to put it another way, produces the greatest balance of good over harm. The ethical corporate action, then, is the one that produces the greatest good and does the least harm for all who are affected -- customers, employees, shareholders, the community, and the environment.

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II. The Rights Approach: Other philosophers and ethicists suggest that the ethical action is the one that best protects and respects the moral rights of those affected. This approach starts from the belief that humans have a dignity based on their human nature. On the basis of such dignity, they have a right to be treated. The list of moral rights, including the rights to make one's own choices about what kind of life to lead, to be told the truth, not to be injured, to a degree of privacy, and so on.

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III. The Fairness or Justice Approach: Aristotle and other Greek philosophers have contributed the idea that all equals should be treated equally. Today we use this idea to say that ethical actions treat all human beings equally -or if unequally, then fairly, based on some standard that is defensible. IV. The Common Good Approach: Thinking about the society as a whole is itself a part of ethics.

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V. The Virtue Approach: A very ancient approach to ethics is that ethical actions ought to be consistent with certain ideal virtues that provide for the full development of our humanity. These virtues are dispositions and habits that enable us to act according to the highest potential of our character and on behalf of values like truth and beauty. Honesty, courage, compassion, generosity, tolerance, love, fidelity, integrity, fairness, selfcontrol, and prudence are all examples of virtues.

CASE STUDIES
i. Coca-Cola in India: Innovative Distribution Strategies with 'RED' Approach..

II. TATA STEEL: Vibrant efforts against greenhouse effect and other environmental issues.

 ACCORDING TO DAME ANITA RODDICK BEING GOOD IS GOOD BUSSINESS

QUOTATIONS REGARDING BUSSINESS ETHICS

ACCORDING TO HENRY FORD A BUSSINESS THAT MAKES NOTHING BUT MONEY IS A POOR KIND OF BUSSINESS

INTRODUCTION TO GOVERMENT POLICIES. TYPES OF GOVERNMENT POLICIES.

3.GOVERMENT POLICIES AND BUSSINESS ETHICS

IMPACT ON BUSSINESS ETHICS(CASE STUDIES).

 A policy is a principle or rule to guide decisions and achieve rational outcomes. The policy enacted and framed by the Government is called as Government policy. Policies can assist in both objective and subjective decision making. The impact of a government policy can either be intended or unintended in nature, to parties who are effected by it. A government policy is usually framed with a view to public welfare, irrespective of individual or corporate benefits.

INTRODUCTION TO GOVERNMENT POLICIES

TYPES OF GOVERNMENT POLICIES

CASE STUDIES...
1. ADVERTISEMENT POLICIES OF GOVERNMENT FOR LIQUOR INDUSTRIES WORKING IN INDIA: According to Cable TV Regulation Act 1995,no company can directly or indirectly advertise for alcoholic beverages, through any form of media. It resulted into the change in entire scenario of working of liquor industry in India and the companies had to stop the advertisements of liquor, thereby directly affecting their work ethics.

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Big Indian liquor conglomerates like UB group and other companies had to opt for other advertising strategies like surrogate advertisement, which was far better than directly adverting for such ill products. Such companies were also forced in a way to diversify their products and increase their product lines, thereby giving more attention to some other product of a company which could be allowed to advertise and sold. The companies in a way to make an impression among its customers and government, got involved in several CSR activities. Example: Mallya multi speciality Hospital at Bangalore.

CASE STUDIES......
2. GOVERNMENT POLICIES AGAINST TOBACCO AND CIGARETTE INDUSTRY: Again according to Cable TV Regulation Act 1995,no company can directly or indirectly advertise for tobacco and smoking products, through any form of media. This law was revolutionary in its way and this has tremendously declined the consumption of tobacco in India. The best were benefitted were the consumers in a way because Government led campaigns against cigarettes and tobacco was overwhelming.

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One of the stringent laws for tobacco industry was to mention in the wrappers that tobacco consumption was bad for health. In a way the tobacco industry was forced to participate in the government led campaign. The tobacco industry presently has no fixed strategy to attract its consumers except through sales promotion like pos, event marketing and surrogate advertising. Today we see, even in their wrappers they give warning to consume their product, since it is hazardous to health and this very fact cannot be denied. Big business firms in this sector like ITC have diversified their business, since it has been very well realised that it will no more be a profitable business venture in near future.

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BEFORE GOVERNMENT POLICIES:

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AFTER GOVERNMENT POLICIES:

CASE STUDIES.......
3. GOVERNMENT INITIATION AGAINST UNEMPLOYEMENT THROUGH A VIBRANT POLICY VIA CANARA BANK: On 13th march 2013,ie recently, Canara Bank signed MOU with the National Skill Development Corporation (NSDC) for skill development and recruitment of graduate unemployed youth of Jammu and Kashmir under UDAAN. UDAAN is a special industry initiative of Ministry of Home Affairs for Jammu and Kashmir. The project as part of bank's Corporate Social Responsibility (CSR) initiative aims at skill development and employability of youth of the state

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Under the project, the bank will impart residential training of 3 months to 300 unemployed graduates from the state. After successful completion of training, 150 candidates will be selected for employment in the bank as Probationary Officer (135) and Clerks (15). The project will be implemented by the bank in coordination with NSDC and the government of Jammu and Kashmir.

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UDAAN is the best example of the government initiative towards implementing a policy which could benefit the general public, through the working of a company, in a way effecting and implementing its ethical standards. Corporate ethics are all about following moral values and standards and implementing them along with daily business activities. In a business organisation, a company well engaged in CSR activities is synonymous to an ethical company, since ethics are all about ,doing, what is right and in CSR too righteousness is the essence. UDAAN forms the best example of CSR and ethics, go hand in hand.

4.LAW Vs ETHICS
DEFINITIONS OF LAW.

DIFFRENCE AND SIMILARITY WITH ETHICS.

EXAMPLE OF LEGAL RULES.

DEFINITIONS OF LAW

DIFFERENCE AND SIMILARITY WITH ETHICS

ETHICAL AND LEGAL

UNETHICAL AND ILLEGAL.

ETHICAL BUT ILLEGAL. UNETHICAL BUT LEGAL

EXAMPLES OF LEGAL RULES HELPING IN THE PROTECTION OF ETHICS.

1. THE FEMA ACT,1999.

2. THE COMPANIES ACT,1956. 3. THE CONSUMER PROTECTION ACT,1986.

4. THE ENVIRONMENT PROTECTION ACT,1986. 5. THE ESSENTIAL COMMODITIES ACT,1955.
The Environment Protection Act, 198

 Once Ratan Tata, chairman of the Tata Group, observed, "If you choose not to participate in corruption, you leave behind a fair amount of business. This was said in context to doing business in India. More often Less has been said about the ability of companies in India to thrive by bending rules, greasing palms and broadening ethical boundaries. At a time when the issue of corruption threatens the stability of the Indian government and scandals unearthed in sectors from sports to telecommunications total tens of billions of dollars, it is becoming increasingly critical for multinational managers to ask whether business success in India comes at an ethical cost.

GOVERNMENT NOT ALWAYS A SUPPORTER OF ETHICS(FROM INDIAN CONTEXT)

CONCLUSION
WE CAN VERY WELL MAKE OUT FROM THE ABOVE EXAMPLES SHARED AND PRESENTED,THAT DESPITE A GOVERNMENT BEING CORRUPT AND UNWILLING,THE POLICIES FORMULATED AND LAWS FRAMED ARE ALWAYS POSITIVE TO CORPORATE ETHICS.IT RARELY HAS NEGATIVE IMPACT ON ETHICS AND HENCE WE CAN SAY THAT POLICIES ARE THE GUIDLINES AND AN EVALUATION CRITEREA TOWARDS CORPORATE ETHICS.POLICIES ENDEVOR CONSISTENTLY TOWARDS THE WORKING OF BUSINESS IN A FAIR AND APPROPRIATE MANNER.