Ethical And Unethical Issues....
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ETHICS: Ethics are the set of moral principles that guide a person's behaviour. These morals are shaped by social norms, cultural practices, and religious influence. Ethics reflect beliefs about what is right, what is wrong, what is just, what is unjust, what is good, and what is bad in terms of human behaviour.
- BUSINESS ETHICS: Business ethics is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities.
ETHICS: Ethics are the set of moral principles that guide a person's behaviour. These morals are shaped by social norms, cultural practices, and religious influence. Ethics reflect beliefs about what is right, what is wrong, what is just, what is unjust, what is good, and what is bad in terms of human behaviour.
ETHICAL AND UNETHICAL ISSUES OF HR, FINANCE AND MARKETING
HUMAN RESOURCES(HR): Human resources or HR is the company department charged with finding, screening, recruiting, and training job applicants, and administering employee-benefit programs.
ETHICAL ISSUES OF HUMAN RESOURCES (HR)
1. Employment Issues:
HR professionals are likely to face maximum ethical dilemmas in the areas of hiring of employees.
Major challenges in this area are:
a. Pressure to hire a friend or relative of a highly placed executive.
b. Faked credentials submitted by a job applicant.
c. Discovery that an employee who has been with the organisation for some time, is skilled and has established a successful record, had lied about his educational credentials.
2. Employees Discriminations:
A framework of laws and regulations has been evolved to avoid the practices of treatment of employees on the basis of their caste, sex, religion, disability, age etc. No organisation can openly practice any discriminatory policies, with regard to selection, training, development, appraisal etc. A demanding ethical challenge arises when there is pressure on the HR manager to protect the firm or an individual at the expense of someone belonging to the group which is being discriminated against.
HUMAN RESOURCES(HR): Human resources or HR is the company department charged with finding, screening, recruiting, and training job applicants, and administering employee-benefit programs.
ETHICAL ISSUES OF HUMAN RESOURCES (HR)
1. Employment Issues:
HR professionals are likely to face maximum ethical dilemmas in the areas of hiring of employees.
Major challenges in this area are:
a. Pressure to hire a friend or relative of a highly placed executive.
b. Faked credentials submitted by a job applicant.
c. Discovery that an employee who has been with the organisation for some time, is skilled and has established a successful record, had lied about his educational credentials.
2. Employees Discriminations:
A framework of laws and regulations has been evolved to avoid the practices of treatment of employees on the basis of their caste, sex, religion, disability, age etc. No organisation can openly practice any discriminatory policies, with regard to selection, training, development, appraisal etc. A demanding ethical challenge arises when there is pressure on the HR manager to protect the firm or an individual at the expense of someone belonging to the group which is being discriminated against.
3. Safety and Health:
Industrial work is often hazardous to the safety and health of the employees. Legislations have been created making it mandatory on the organisations and managers to compensate the victims of occupational hazards. Ethical dilemmas of HR managers arise when the justice is denied to the victims by the organisation.
UNETHICAL ISSUES OF HUMAN RESOURCES(HR)
1. Misusing company time
Whether it is covering for someone who shows up late or altering a time sheet, misusing company time tops the list. This category includes knowing that one of your co-workers is conducting personal business on company time. By "personal business" the survey recognizes the difference between making cold calls to advance your freelance business and calling your spouse to find out how your sick child is doing.
2. Abusive behaviour
Too many workplaces are filled with managers and supervisors who use their position and power to mistreat or disrespect others. Unfortunately, unless the situation you're in involves race, gender or ethnic origin, there is often no legal protection against abusive behaviour in the workplace.
3. Lying to employees
The fastest way to lose the trust of your employees is to lie to them, yet employers do it all the time. One of out every five employees report that their manager or supervisor has lied to them within the past year.
- FINANCE:
UNETHICAL ISSUES OF HUMAN RESOURCES(HR)
1. Misusing company time
Whether it is covering for someone who shows up late or altering a time sheet, misusing company time tops the list. This category includes knowing that one of your co-workers is conducting personal business on company time. By "personal business" the survey recognizes the difference between making cold calls to advance your freelance business and calling your spouse to find out how your sick child is doing.
2. Abusive behaviour
Too many workplaces are filled with managers and supervisors who use their position and power to mistreat or disrespect others. Unfortunately, unless the situation you're in involves race, gender or ethnic origin, there is often no legal protection against abusive behaviour in the workplace.
3. Lying to employees
The fastest way to lose the trust of your employees is to lie to them, yet employers do it all the time. One of out every five employees report that their manager or supervisor has lied to them within the past year.
1.Misappropriation of Assets
On an individual employee level, the most common ethical issue in accounting is the misappropriation of assets. Misappropriation of assets is the use of company assets for any other purpose than company interests. Otherwise known as stealing or embezzlement, misappropriation of assets can occur at nearly any level of the company and to nearly any degree.
2.Time
Timely financial information is just as important as accurate and transparent information. Management, investors and other stakeholders require timely information to make the right decisions. Many cases exist of a publicly traded company's stock reacting sharply and negatively to negative earnings surprises or unpleasant product-related news. For example, a company should promptly disclose manufacturing problems that could temporarily affect sales. Similarly, the company should not hold back news of a major contract loss in the hope that it can replace the lost revenue with new contracts.
3.Transparency
Financial documents reflect a company's performance relative to its peers, and its internal strengths and weaknesses. Regulatory agencies require publicly traded companies to submit periodic financial statements and make full disclosures of material information. A change in the senior executive ranks, buyout offers, loss or win of a major contract and new product launches are examples of material information. Transparency also means explaining financial information clearly, especially for those who aren't familiar with the company’s operations. Financial managers should not hide, obscure or otherwise render relevant financial information impossible for ordinary shareholders to understand.
On an individual employee level, the most common ethical issue in accounting is the misappropriation of assets. Misappropriation of assets is the use of company assets for any other purpose than company interests. Otherwise known as stealing or embezzlement, misappropriation of assets can occur at nearly any level of the company and to nearly any degree.
2.Time
Timely financial information is just as important as accurate and transparent information. Management, investors and other stakeholders require timely information to make the right decisions. Many cases exist of a publicly traded company's stock reacting sharply and negatively to negative earnings surprises or unpleasant product-related news. For example, a company should promptly disclose manufacturing problems that could temporarily affect sales. Similarly, the company should not hold back news of a major contract loss in the hope that it can replace the lost revenue with new contracts.
3.Transparency
Financial documents reflect a company's performance relative to its peers, and its internal strengths and weaknesses. Regulatory agencies require publicly traded companies to submit periodic financial statements and make full disclosures of material information. A change in the senior executive ranks, buyout offers, loss or win of a major contract and new product launches are examples of material information. Transparency also means explaining financial information clearly, especially for those who aren't familiar with the company’s operations. Financial managers should not hide, obscure or otherwise render relevant financial information impossible for ordinary shareholders to understand.
3.Accuracy
A company’s financial manager ensures that all financial publications accurately and fairly reflect the financial condition of the company. Accounting errors and financial fraud, such as what was seen in the cases of Enron and WorldCom, damage the interests of shareholders, employees and affect confidence in the financial system. Some organizations document ethics guidelines specifically for financial managers. For example, the ethics code of the United States Postal Service requires senior financial managers to maintain accurate records and books, maintain internal controls and prepare financial documents in accordance with generally accepted accounting principles.
UNETHICAL ISSUES OF FINANCE
- Deliberate abnormal delays in payments to (a) Vendors, (b) Dealers commissions and promotion costs.
- Delays in paying wages, interest to financiers, incentive, bonus to employees.
- Holding up bills of vendors on silly reasons and ultimately buying from others to avoid payment to earlier vendors.
- Not prompt in statutory payments of ESI, PF, Sales Tax and Excise Duties.
- MARKETING: Marketing refers to activities undertaken by a company to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses. Some marketing is done by affiliates on behalf of a company.
ETHICAL ISSUES OF MARKETING
Market Research
Some ethical problems in market research are the invasion of privacy and stereotyping. The latter occurs because any analysis of real populations needs to make approximations and place individuals into groups. However, if conducted irresponsibly, stereotyping can lead to a variety of ethically undesirable results.
Market Audience
Selective marketing is used to discourage demand from so-called undesirable market sectors or disenfranchise them altogether. Examples of unethical market exclusion are past industry attitudes to the gay, ethnic minority, and plus-size markets.Another ethical issue relates to vulnerable audiences in emerging markets in developing countries, as the public there may not be sufficiently aware of skilled marketing ploys.
Delivery Channels
Direct marketing is the most controversial of advertising channels, particularly when approaches are unsolicited. TV commercials and direct mail are common examples. Electronic spam and telemarketing push the borders of ethics and legality more strongly.
UNETHICAL ISSUES OF MARKETING
1. Forcing Customers Into Making A Purchase
There are several ways to convince people to buy your product. This may be done honestly, or occasionally in a forceful manner. For instance, on their online sales page, there might be huge exclamations and banners falsely proclaiming charitable donations or how their product would help alleviate from poverty. Another example might be stating to their customers that buying their product may be the only way to make money online. If vendors claim that there is no use in trying to make money without their product, they are outright misinforming customers. In most cases your product should sell itself through referrals and word of mouth. You may inform customers of what they would gain by buying what you have to offer. Alternatively, you could also honestly say what difference your product could make over others.
2. Accuracy in text or advertising
Sometimes goods on the market are not worth buying. Online marketing often uses photography and writing techniques to mislead. Unfortunately, often if the prices are too cheap, there is an almost certain compromise on quality. If the pictures are of food, it may be much smaller than it seems to be. Close-ups, zooming in, and lighting can serve to trick a customer into placing an order. This practice may serve to get you a few initial orders, but very few repeat purchases. Customers would definitely not return to a vendor who has fooled them once. Hence, it is important to make sure you are not just concentrating solely on making sales, but providing the best product or service you can as well. This would satisfy your customers, and they would most likely make your products popular in return.
Selective marketing is used to discourage demand from so-called undesirable market sectors or disenfranchise them altogether. Examples of unethical market exclusion are past industry attitudes to the gay, ethnic minority, and plus-size markets.Another ethical issue relates to vulnerable audiences in emerging markets in developing countries, as the public there may not be sufficiently aware of skilled marketing ploys.
Delivery Channels
Direct marketing is the most controversial of advertising channels, particularly when approaches are unsolicited. TV commercials and direct mail are common examples. Electronic spam and telemarketing push the borders of ethics and legality more strongly.
UNETHICAL ISSUES OF MARKETING
1. Forcing Customers Into Making A Purchase
There are several ways to convince people to buy your product. This may be done honestly, or occasionally in a forceful manner. For instance, on their online sales page, there might be huge exclamations and banners falsely proclaiming charitable donations or how their product would help alleviate from poverty. Another example might be stating to their customers that buying their product may be the only way to make money online. If vendors claim that there is no use in trying to make money without their product, they are outright misinforming customers. In most cases your product should sell itself through referrals and word of mouth. You may inform customers of what they would gain by buying what you have to offer. Alternatively, you could also honestly say what difference your product could make over others.
2. Accuracy in text or advertising
Sometimes goods on the market are not worth buying. Online marketing often uses photography and writing techniques to mislead. Unfortunately, often if the prices are too cheap, there is an almost certain compromise on quality. If the pictures are of food, it may be much smaller than it seems to be. Close-ups, zooming in, and lighting can serve to trick a customer into placing an order. This practice may serve to get you a few initial orders, but very few repeat purchases. Customers would definitely not return to a vendor who has fooled them once. Hence, it is important to make sure you are not just concentrating solely on making sales, but providing the best product or service you can as well. This would satisfy your customers, and they would most likely make your products popular in return.
3. Having Lacklustre Customer Support/Service
A well-meaning company always has a great system of customer support. This serves to help the customers with any problem they may have. The system makes it easy for consumers to place orders, view their accounts and products, and register complaints.
It is also customer support which helps in analyse feedback from the customers. This contributes to the market research which can enhance the company’s performance. Plus, customers greatly appreciate a polite and efficient system. Even if they are less than happy with the products for some reason, good customer service may keep them coming back.
However, many companies find customer support a bit expensive to maintain. They may cut corners and choose not to have a strong system available for customers.
However, this practice is quite unethical, as it may not offer any way for consumers to complain or get information. Some companies may have a customer service department, but not fund or staff it enough. Some may also provide a customer helpline but not have it working 24/7. This can also help to erode the customers’ trust and patience.
A well-meaning company always has a great system of customer support. This serves to help the customers with any problem they may have. The system makes it easy for consumers to place orders, view their accounts and products, and register complaints.
It is also customer support which helps in analyse feedback from the customers. This contributes to the market research which can enhance the company’s performance. Plus, customers greatly appreciate a polite and efficient system. Even if they are less than happy with the products for some reason, good customer service may keep them coming back.
However, many companies find customer support a bit expensive to maintain. They may cut corners and choose not to have a strong system available for customers.
However, this practice is quite unethical, as it may not offer any way for consumers to complain or get information. Some companies may have a customer service department, but not fund or staff it enough. Some may also provide a customer helpline but not have it working 24/7. This can also help to erode the customers’ trust and patience.
Well explained and spread it.....
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