Business Ethics-Corruption & Bribery MMS

Business Ethics-Corruption & Bribery MMS

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  BROADER ETHICAL ISSUESIN SOCIETY-CORRUPTION & BRIBERY Presented By: Ajesh Raj 1261 Sijo Johnson 1272 Suyash Kotian 1287 Jyoti Surywamshi 1311
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  Meaning of Ethics •A branch of philosophy that involves systematizing, defending and recommending concepts of right and wrong conduct, often addressing disputes of moral diversity • Term comes from Greek word ethos which means "character", "habit", "praxis“ • Philosophical ethics investigates what is the best way for humans to live, and what kinds of actions are right or wrong in particular circumstances • Ethics seeks to resolve questions dealing with human morality—concepts such as good and evil, right and wrong, virtue and vice, justice and crime.
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  Cont’d… • Ethics maybe divided into four major areas of study: • Meta-ethics-the theoretical meaning and reference of moral propositions and how their truth values (if any) may be determined; • Normative ethics-the practical means of determining a moral course of action; • Applied ethics draws upon ethical theory in order to ask what a person is obligated to do in some very specific situation, or within some particular domain of action (such as business); • Descriptive ethics-known as comparative ethics, is the study of people's beliefs about morality;
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  Key Points • Ethicalbehavior is based on written and unwritten codes of principles and values held in society • Ethical principles and values serve as a guide to behaviors on a personal level, within professions, and at the collective organizational level • Business ethics involves personal, professional, and corporate behaviors
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  Business Ethics • Aform of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment • It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations
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  Importance of Ethicsin Business • Ethical behavior and corporate social responsibility can bring significant benefits to a business – attract customers to the firm's products, thereby boosting sales and profits – make employees to stay with the business, reduce labor turnover and therefore increase productivity – attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees – attract investors and keep the company's share price high, thereby protecting the business from takeover.
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  Corruption • The wordcorrupt means “utterly broken” • Corruption is described as the illegitimate use of public power to benefit a private interest • Corruption is an action to (a) secretly provide (b) a good or a service to a third party (c) so that he or she can influence certain actions which (d) benefit the corrupt, a third party, or both (e) in which the corrupt agent has authority
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  Scale of Corruption •Corruption can occur on different scales – Petty corruption occurs at a smaller scale and within established social frameworks and governing norms – Grand corruption is defined as corruption occurring at the highest levels of government in a way that requires significant subversion of the political, legal and economic systems – Systemic corruption (or endemic corruption)[5] is corruption which is primarily due to the weaknesses of an organization or process
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  Effect of Corruptionon Business • Corruption is one of the worst enemies of business because it can result in far-reaching consequences, including total closure of the company • Corruption in business involves misappropriation of funds, bribery, misuse of office by company officials and dishonesty in financial matters • Corruption can hurt the image of the business and jeopardize its profitability
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  Cont’d… • Losses • Discouragementof Shareholders and Investors • Damaged Business Image • Business Inefficiency
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  Bribery • It anact of giving money or gift giving that alters the behavior of the recipient • Bribery refers to the offering, giving, soliciting, or receiving of any item of value as a means of influencing the actions of an individual holding a public or legal duty • It constitutes a crime such as offering, giving, receiving of any items of value to influence the actions of an official or other person in charge of a public or legal duty • Bribe is the gift bestowed to influence the recipient's conduct
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  Factors That PushBusiness to Pay Bribe • Competitors are giving bribes to obtain business (which can cause the misuse of the country’s resources) • The pressure for higher levels of performance by top management and shareholders • This is an accepted practice in the host country. • Tax laws of the country encourage bribery. It can be written off as a business expense. • Government control over business activities.
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  Cont’d.. • In economics,the bribe has been described as rent • Government officials are poorly paid and use bribery to supplement salaries. • Bureaucratic delays can be costly for business. • Pressure from politicians to make contributions to political parties or causes.