UNIT- 14 & 15_Applied Ethics_ Combating Unethical Practices in Business.pdf

UNIT- 14 & 15_Applied Ethics_ Combating Unethical Practices in Business.pdf

• 1.
  Applied Ethics: Combating UnethicalPractices in Businesses
• 2.
  Whistleblowing Concept and Mechanism Definition:A whistleblower is a person, who could be an employee of a company, or a government agency, disclosing information to the public or some higher authority about any wrongdoing, which could be in the form of fraud, corruption, etc.
• 3.
   A whistlebloweris a person who comes forward and shares his/her knowledge on any wrongdoing which he/she thinks is happening in the whole organisation or in a specific department. A whistleblower could be an employee, contractor, or a supplier who becomes aware of any illegal activities.
• 4.
   To protectwhistleblowers from losing their job or getting mistreated there are specific laws. Most companies have a separate policy which clearly states how to report such an incident.  A whistleblower can file a lawsuit or register a complaint with higher authorities which will trigger a criminal investigation against the company or any individual department.
• 5.
  Types of whistleblowers Internal whistleblowers are those who report the misconduct, fraud, or indiscipline to senior officers of the organisation such as Head Human Resource or CEO.  External whistleblowing is a term used when whistleblowers report the wrongdoings to people outside the organisation such as the media, higher government officials, or police.
• 6.
   The crimeor wrongdoing could be in the form of fraud, deceiving employees, corruptions, or any other act which misleads people. The Whistle Blowers Protection Act, 2011 lays down the complete framework to investigate alleged cases of wrongdoing.
• 7.
  What Is CorporateSocial Responsibility (CSR)?  Corporate social responsibility (CSR) is a self- regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.  By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.  To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment instead of contributing negatively to them.
• 8.
   Corporate socialresponsibility is a business model by which companies make a concerted effort to operate in ways that enhance rather than degrade society and the environment.  CSR helps both society and the brand image of companies.  Corporate responsibility programs are a great way to raise morale in the workplace.
• 9.
  CSR & CORPORATE GOVERNANCE Corporate Governance is basically referred to as set of standards through which companies are ethically governed and regulated. It aims in improving company’s overall image, efficiency and effectiveness through proper reporting and disclosure.  Corporate Social Responsibility is a long term commitment of business in contributing socio economic development for all sections of the society by engaging stakeholder’s i.e government, NGOs, civic society, investors in improving standard of living & quality of life.
• 10.
   The objectiveof the study is to understand relationship between CG and CSR as both are deemed to be essential for effective governance, compulsory disclosure and creating sustainable business model.  Corporate Social Responsibility is an indispensable part of corporate planning, strategy and operational performance. As per the Companies Act 2013, it is mandatory for every company to spend minimum 2 % of its net profit on Corporate Social Responsibility.
• 11.
   Companies shouldn’tbe formed for the purpose of making only profit, they should have a larger picture in developing and serving society at large. CSR address various sensitive issues such as human rights, worker’s rights, suppliers’ relations & involvement, providing basic amenities.  Profit is equally needed to spend in Corporate Social Responsibility activities for uplifting underprivileged sections of society.
• 12.
   Companies tendto assure regulators and investors that they are fully transparent and accountable, they commit for fair governance principles on various aspects of business practises. Similarly, CSR has been streamlined by taking in to Corporate Governance for broader ethical decisions.  Now a days, CSR practised by the corporations are more attuned in balancing shareholders goals, environmental, and social needs.
• 13.
  Corporate Governance  CorporateGovernance has laid a framework of business decision making which can be applied for smooth functioning of organisational needs. It also helps in improving the relations among board of directors, shareholders and managers to resolve “agency conflicts”.
• 14.
  ADR – alreadycovered in ADR Unit