CHAPTER 3

ETHICAL DILEMMAS

1. What is an Ethical Dilemma?

An ethical dilemma (ethical paradox or moral dilemma) is a problem in the decision-
making process between two possible options, neither of which is absolutely acceptable from
an ethical perspective. Although we face many ethical and moral problems in our lives, most
of them come with relatively straightforward solutions.
On the other hand, ethical dilemmas are extremely complicated challenges that cannot
be easily solved. Therefore, the ability to find the optimal solution in such situations is critical
to everyone.
Every person may encounter an ethical dilemma in almost every aspect of their life,
including personal, social, and professional.
Some examples of ethical dilemma include:
 Taking credit for others’ work
 Offering a client a worse product for your own profit
 Utilizing inside knowledge for your own profit

2. Characteristics of Ethical Dilemmas.

 Uncertainty about the consequences
 Rule book does not apply
 No good options
 Multiple choices and alternatives.
 Mixed consequences

3. Sources of ethics/ethical behaviour in business.

 Religion:
Business ethics are heavily sourced from religious sentiments. Every religion
has some theories describing what is right and wrong, and businesses follow the same
while surviving in society. By doing what is ethically right, businesses follow societal
rules and responsibilities and contribute to the economy's welfare. In a way, the
business follows the social and religious code of conduct.

 Culture:
Business ethics are also sourced from the culture people follow in the area where
the business is operated. Going against the morals, norms, and perceptions of the culture
 of people will make the business culturally misfit. People will not prefer such
companies that do not respect their culture. For example, in India, cows and other cattle
are considered holy (by Hindus), so many people do not consume beef. Any company
selling beef or beef products will be considered culturally misfit and won't survive in
society for long.

 Law:
The legal rules and regulations guide the businesses to follow and apply ethics
to the business that must be followed. These ethics are the rules that society expects
businesses to follow. Any basic shop or large business enterprise should follow these
rules. For example: poor quality products, unnecessarily high prices, pollution, and so
on.

4. Code of Personal Ethics for Employee.

1. Be inclusive.
We welcome and support people of all backgrounds and identities. This includes, but is not
limited to members of any sexual orientation, gender identity and expression, race,
ethnicity, culture, national origin, social and economic class, educational level, color,
immigration status, age, size, family status, political belief, religion, and mental and
physical ability.

2. Be considerate.
We all depend on each other to produce the best work we can as a company. Your decisions
will affect clients and colleagues, and you should take those consequences into account
when making decisions.

3. Be respectful.
We won't all agree all the time, but disagreement is no excuse for disrespectful behavior.
We will all experience frustration from time to time, but we cannot allow that frustration
to turn into personal attacks. An environment where people feel uncomfortable or
threatened is not a productive or creative one.

4. Choose your words carefully.

Always conduct yourself professionally. Be kind to others. Do not insult or put down
others. Harassment and exclusionary behavior aren't acceptable. This includes, but is not
limited to:
 Threats of violence.
 Insubordination.
  Discriminatory jokes and language.
 Personal insults
 Advocating for, or encouraging, any of the above behaviour.

5. Don't harass.
In general, if someone asks you to stop something, then stop. When we disagree, try to
understand why. Differences of opinion and disagreements are mostly unavoidable. What
is important is that we resolve disagreements and differing views constructively.

6. Make differences into strengths.

We can find strength in diversity. Different people have different perspectives on issues,
and that can be valuable for solving problems or generating new ideas. Being unable to
understand why someone holds a viewpoint doesn’t mean that they’re wrong. Don’t forget
that we all make mistakes, and blaming each other doesn’t get us anywhere. Instead, focus
on resolving issues and learning from mistakes.

Here is an example of a personal code of ethics:

 I will treat others as I wish to be treated.
 I will be honest and transparent in my personal and professional life.
 I will always put forth my best effort, and I will maintain a healthy work-life
balance.
 I am dedicated to continually improving myself.
 I will keep my promises and honor my commitments.
 I will remain accountable for my shortcomings or mistakes.
 I will always uphold my beliefs.
 I appreciate my life and will be grateful for it every day.

5. How to resolve an ethical problem?

1. Gather the relevant facts and identify the problems
 Do I have all the facts relevant to the situation?
 Am I making assumptions? If so, could facts be identified to replace these assumptions?
 Is it really your problem? Can anybody else help?

2. Identify the affected parties

 Who are the individuals, organizations and key stakeholders affected?
 In what way are they affected?
 Are there conflicts between different stakeholders?
  Who are your allies?

3. Consider the ethical issues involved

 Have you referred to related Code of Ethics?
 What are the professional, organizational and personal ethics issues?
 Would these ethical issues affect the reputation of the accountancy profession?
 Would these ethical issues affect the public interest?

4. Identify which fundamental principles are affected

 What are the threats to compliance with the fundamental principles of:
 Integrity
 Objectivity
 Professional competence and due care
 Confidentiality
 Professional behaviour
 Have you considered the following threats?
 Self interest
 Self-review
 Advocacy
 Familiarity
 Intimidation
 If so, are the treats to compliance with the fundamental principles clearly insignificant?
 Are there safeguards which can eliminate or reduce the threats to an acceptable level?
Safeguards can be created by:
 Profession, legislation and regulation
 Work environment
 Individual

5. Refer to the employing organization's internal procedures

 Does your organization's policies and procedure provide guidance on the situation?
 How can you escalate concerns within the organization? Who should be involved, in
what role and at what stage?
 Does the organization have a whistleblowing procedure?
 At what point should you seek guidance from external sources

6. Consider and evaluate alternative courses of action

 You should consider:
 Your organization's policies, procedures and guidelines
  Applicable laws and regulation
 Universal values and principles generally accepted by society
 Consequences
 Test your proposed course of action. Ask yourself the following questions:
 Have all the consequences associated with the proposed course of action been discussed
and evaluated?
 Is there any reason why the proposed course of action should not stand the test of time?
 Would a similar course of action be undertaken in a similar situation?
 Would the suggested course of action stand to scrutiny from peers, family and friends?

7. Implement the course of action and monitor its progress

 When faced with an ethical issue, it may be in your best interests to document your
thought processes, discussions and the decisions taken.
 Written records will be useful if you need to justify your course of action.

6. How to resolve an ethical dilemmas?

 What do you do when you find yourself in an ethical dilemma? How do you figure out the
best path to take? Before thinking about which path is the most ethical one, be sure to spell
out the problem and the feasible options at hand.
 Many times, our mind limits itself to two conflicting options and does not see the presence
of a third, better option.
 Generally, philosophers outline two major approaches in handling ethical dilemmas after
assessing the legality of the actions.
 One approach, while focusing on the consequences of the ethical dilemma, argues 'no harm,
no foul', while the other focuses on the actions themselves, claiming that some actions are
simply inherently wrong.
 While these approaches seem to conflict each other, they actually complement the other in
practice.
 A brief three-step strategy can be formulated by combining these two schools of thought.

1. Analyze the consequences

 When you have two options, considering the positive and negative consequences
connected with each of those options gives you a better outlook on which option is
better.
 It is not enough to count the number of good and bad consequences an option has, it is
also important to note the kind and amount of good it does.
 After all, certain 'good things' in life (e.g.. health) are more significant than others (e.g.,
a new phone).
 Similarly, a small quantity of high-quality good is better than a large quantity of a low-
quality good and a small quantity of a high-quality harm (like betraying someone's
 trust) is worse than a large quantity of low-quality harm (like waiting a few more
months before asking for a promotion).

2. Analyze the actions

Now, look at those options from an entirely different perspective.
Some actions are inherently good (truth-telling, keeping promises), while others are bad
(coercion, theft).
No matter how much good comes from these bad actions, the action will never be right.
How do your actions measure up against moral principles of honesty, fairness and respecting
the rights and dignity of others? If there is a conflict between one or more of these principles,
consider the possibility of one principle being more important than the others.

3. Make a decision
 Each of the above approaches acts as a check on the limitations of the other and must
therefore be analyzed in combination.
 They provide the basic elements that we can use in determining the ethical character of
the options at hand and make the process relatively easy.
 When you find yourself in a fix, consider speaking to others about the situation and
getting the opinion of more knowledgeable people to find a possible solution.
 Once the decision is made, explain it to those who will be affected by your decision.
 Be aware and reactive to new developments in that situation that may require you to
make changes in your course of action.
 It will also help to reflect on your past actions, and consider whether there is anything
you can do to prevent the dilemma from happening again.

7. Common Ethical Dilemmas Business Owners Face (And How To Overcome Them):
1. Supporting Other Businesses When Money Is Tight
Sometimes business owners have to choose between keeping costs down to survive and
supporting other businesses. This is a difficult choice to make and one with significant impact
on different people. It helps to find alternative ways to do your part in helping other businesses.
It doesn't always have to be about money. If you want to support other businesses and avoid
losing money, you could cross-promote other businesses or help in different ways. Keep an
open mind and keep looking for solutions and you could come up with interesting ways to help
your business and others around you.
2. Compromising On Product Quality
Compromising on product quality is usually the first place business owners go to make
a few extra bucks. Cheaper cost of goods sold looks great on a spreadsheet, but the reality of
the situation is your customers will notice. In most industries, the goal is to maximize the
lifetime value of the customer. It is very important to put your best foot forward with your
product quality and not try to cut corners. If there’s a manufacturing error, don’t sell it. If the
software is buggy, don’t ship it. If the food isn't cooked right, send it back. It’s always
financially beneficial in the long term to do the right thing. Give the customer the highest
quality you can for the money they’re paying you.
3. Letting Clients Go
Walking away from toxic clients can be a common ethical dilemma. It's hard to know
what the right thing to do is if they are bringing good income into your company and there are
contracts signed. But if it's a toxic relationship, boundaries need to be set. If those aren't
working, the relationship needs to end—as difficult as that can be.
4. Responding To Employee Social Media Behaviour
The question of how to respond to employees' social media behaviour outside of work
is a difficult one. It's sometimes hard to draw the line. It's entirely justifiable to fire an employee
over poor behaviour on their personal social media accounts, but it's sometimes tricky to
determine exactly when that line is crossed. In today's day and age, there's no excuse for
crossing a boundary on social media. Internet etiquette is taught to everyone these days. So if
your employee, no matter how valuable they are, crosses a line into propagating hate speech or
is discriminating against a particular community of people, then I'd let them go.
5. Keeping Employees Because Of Seniority
Keeping employees around because of seniority is an ethical dilemma. It's normal for
business owners to feel that they should be good to people who have been around a company
for a long time. However, the people who got you to where you are today are not necessarily
the ones who are going to get you to where you need to go in the future. It can be
counterintuitive and downright heartbreaking, but keeping people around too long is actually
unethical. Business owners may want to keep a "family" atmosphere within their team, but as
Reid Hoffman, founder of LinkedIn, says in his book The Alliance, teams are gauged on
performance, and you can be cut from the team. Having people on the team who are
incompetent destroys the morale of the competent ones on the team. Know when to terminate!
6. Accepting Job Applicants from Competitors
We recently had an implementation consultant apply to our firm who was coming from
another firm in a similar space. The applicant was willing to jump ship without notice and even
threw out that some clients would probably come with her. While it could seem easy to take a
person with such experience, how they treat their former employers is how they will also treat
you one day. If things don't feel right in your gut before day one even happens, it may be best
to steer clear.
7. Creating Honest Marketing
Being honest with your marketing message is one of the biggest ethical dilemmas that
the modern business owner faces. A casual review of your social media feeds will quickly
reveal that using unethical manipulation, misleading your market and overpromising benefits
is still rampant across industries. The good news is one of the best ways to stand out in your
marketplace is to actually care about your customers and tell the truth. Instead of rushing the
sale, what I’ve found that works really well is to show your marketplace that you can help them
by delivering valuable content that actually helps them solve real challenges they're having. By
doing this, you generate incredible amounts of goodwill and trust with your market and this
trust leads to more sales over a longer period of time.

8. Ethical Issues in Business and How to Address Them.

Ethical issues in business can be a difficult challenge to navigate for any business
owner. Though there are laws and statutes that exist to hold workers and employers
accountable, these alone do not entirely deter employees from behaving unethically.

1. Harassment and Discrimination in the Workplace:

Harassment and discrimination are arguably the largest ethical issues that impact
business owners today. Should harassment or discrimination take place in the workplace, the
result could be catastrophic for your organization both financially and reputationally.
Every business needs to be aware of the anti-discrimination laws and regulations that
exist to protect employees from unjust treatment. There are many different types of
discrimination and harassment statutes that can have an effect on your organization, including
but not limited to:
 Disability: accommodations and equal treatment provided within reason for
employees with physical or mental disabilities.
 Equal Pay: compensation for equal work regardless of gender, religion, etc.
 Pregnancy: accommodations and equal treatment provided within reason for
pregnant employees.
 Religion: accommodations and equal treatment provided within reason
regardless of employee religion.
 Gender: employee treatment consistent regardless of gender identity.
2. Health and Safety in the Workplace:
Employees have a right to safe working conditions. The most frequently cited violations
were:
 Fall Protection, e.g. unprotected sides and edges and leading edges
 Hazard Communication, e.g. classifying harmful chemicals
 Lockout/Tagout, e.g. controlling hazardous energy such as oil and gas
 Electrical, Wiring Methods, e.g. procedures for how to circuit to reduce electromagnetic
interference
 Electrical, General Requirements, e.g. not placing conductors or equipment in damp or
wet locations
However, health and safety concerns should not be limited to physical harm. An emphasis
was placed on the rise of “psychosocial risks” and work-related stress and mental health
concerns. Factors such as job insecurity, high demands, effort-reward imbalance, and low
autonomy, were all found to contribute to health-related behavioural risks, including sedentary
lifestyles, heavy alcohol consumption, increased cigarette smoking, and eating disorders.
3. Whistleblowing or Social Media Rants:
The widespread nature of social media has made employees conduct online a factor in
their employment status. The question of the ethics of firing or punishing employees for their
online posts is complicated. However, the line is usually drawn when an employee’s online
behaviour is considered to be disloyal to their employer. This means that a Facebook post
complaining about work is not punishable on its own but can be punishable if it does something
to reduce business.
In the same vein, business owners must be able to respect and not penalize employees
who are deemed whistle-blowers to either regulatory authorities or on social media. This means
that employees should be encouraged, and cannot be penalized, for raising awareness of
workplace violations online.
4. Nondisclosure and Corporate Espionage:
Many employers are at risk of current and former employees stealing information,
including client data used by organizations in direct competition with the company. When
intellectual property is stolen, or private client information is illegally distributed, this
constitutes corporate espionage. Companies may put in place mandatory nondisclosure
agreements, stipulating strict financial penalties in case of violation, in order to discourage
these types of ethics violations.

9. Assuming that you are the H.R. Manager of a firm, state any ten sources you would
look into while recruiting employees.
Step 1: Understand your need – job analysis.
Critically evaluate your existing resources. How does that measure up to what you need going
forward. This gap, which might be described in functional terms like tasks, responsibilities,
skills is the basis of defining the role. It is important to go one step further though and consider
what would someone who is doing the job well look like. Always aim for a high performance
level not an average one.
Step 2: Understand what you want
It isn’t just about what you need for the business but about the type of person you want, or
more precisely the type of organisation you want to create or maintain. Broadly speaking what
I am talking about is culture – “the way we do things around here”. It is about the values and
ethos you want your business and the people in your business to promote.
It is about how you communicate with each other, the level of engagement and involvement,
the way customers and suppliers are dealt with, the degree of flexibility and “we’re all in this
together” that you need, the image your business portrays and so on. It is a fundamental part of
your brand. It is important therefore that each person you bring into the business reflects and
buys into that culture.
Step 3: Write a job description
By now you should know the following:
Broadly what the role definition. The tasks, responsibilities and accountabilities involved.
What a good performer looks like and what competencies i.e. skills, knowledge and attitudes
are necessary to achieve that. What challenges and opportunities will be involved. What type
of person will fit your organisation – the personal characteristics.
These elements basically make up your Job Description or Job profile and shouldn’t just be
used for the recruitment process, but form the basis of your selection criteria, your training
plans, goal / target setting and performance review.
Step 4: Decide on your selection process and criteria
Once you have decided what you need and want and have written your job description you
should figure out how you are going to receive applications and assess and select candidates.
Applications are typically by CV and perhaps cover letter or by application form. Some
organisations opt for online processes. It really depends on what you prefer.
Interviewing is the most common form of assessment, with competency-based interviewing
being the most robust interview method (it is proven to be the best in terms of predicting or
assessing future performance capability).
In addition you might want to consider shortlisting as a first step – this is a CV screening
process and is usually based on some limited essential criteria. Given the high volumes of CVs
being received currently this is a sensible addition to the process.
You should also consider aptitude tests and / or psychometric tests. These should never be used
as the only selection method but rather as an additional aid.
Step 5: Identify sources and launch search
Now that you have all the ground work done think about where you can find suitably qualified
candidates.
You can of course resort to newspaper adverts and recruitment agencies. More likely though
you will go the route of Jobs Boards / websites. But please don’t forget your networks and
contacts. LinkedIn, Twitter and Facebook are all valid (and increasingly popular) sources.
The more targeted you can be, the better the outcome. Networks are probably the most cost
effective way of targeting new employees but may not always be the most efficient.
Step 6: Shortlist candidates
Using the criteria you have already set and taking pen and paper sift through all of the CVs and
identify those that meet the requirements. You may want to have a marking system for
particular criteria – this will make life easier if you have a large number who meet this first
stage but only want to progress a small number to the next stage of the process.
Step 7: Make your selection – Interview, assessment, reference check, medical – dig deep
Once you have your shortlist of candidates you will move to the next stage. We have already
mentioned the value of psychometric testing.
In terms of interview you may decide to do one, two or several. You can conduct telephone
interviews, one-to-one or panel.
In any case what is most important is that you know in advance what you are going to ask, that
it is based on assessing the extent to which the person meets the criteria and that you dig beyond
the surface.
Step 8: Offer
You should now have a top preferred candidate so time to make an offer. The offer should
include: details of salary, job role and responsibilities etc.
You should never make an offer before completing Step 7 but if you do, please ensure it is
conditional on a satisfactory outcome to checks and medical. The offer should also be subject
to the candidate having provided you with accurate and honest information.
Step 9: On boarding and Training
Well there should be some form of induction – rules, regulations, health and safety and other
policies should be explained, introductions made, arrangements made to ensure the “newbie”
has a buddy for lunch.
Step 10: Review
There are two elements of review needed.
Firstly look back over the recruitment and selection process. Did it go as well as you had hoped?
What could have been improved upon.
More importantly is the review of the new employee’s performance. You should always
include a probationary period in your contract (and offer) – at least six months.

10. Neelam is working as senior HR manager at Zion IT Company. Mention the code of
Personal ethics she needs to possess as an employee of the organization.
As a senior HR manager at Zion IT company, Neelam should possess a strong sense of
personal ethics to effectively fulfill her responsibilities and maintain the organization's
reputation. Here are some key ethical principles that she should adhere to:
Confidentiality: Neelam should respect the confidentiality of sensitive employee information,
such as personal data, grievances, and performance evaluations. She should ensure that such
information is only shared on a need-to-know basis and with proper authorization.
Integrity: Neelam should act with honesty and transparency in all her interactions. She should
avoid any form of deception, dishonesty, or misrepresentation and should maintain the highest
level of integrity in her decisions and actions.
Fairness and Equity: Neelam should treat all employees fairly and without bias. She should
ensure that hiring, promotions, benefits, and other HR decisions are based on merit and do not
discriminate based on factors such as gender, race, religion, or ethnicity.
Respect: Neelam should treat all employees and colleagues with respect and courtesy. She
should create a positive and inclusive work environment where diversity is valued, and
everyone's opinions are considered.
Conflict of Interest: Neelam should avoid any situations where her personal interests could
conflict with the interests of the company or its employees. If such a situation arises, she should
disclose it and take appropriate measures to mitigate any conflicts.
Compliance: Neelam should adhere to all relevant laws, regulations, and company policies.
She should ensure that HR practices, such as recruitment, compensation, and employee
relations, are carried out in accordance with legal and ethical standards.
Professional Development: Neelam should engage in continuous learning and professional
development to stay updated with the latest trends and best practices in HR. This will enable
her to provide effective guidance and support to employees and the organization.
Whistleblowing: Neelam should encourage a culture where employees feel safe to report any
unethical behavior or wrongdoing. She should ensure that whistleblowers are protected from
retaliation and that their concerns are properly addressed.
Accountability: Neelam should take responsibility for her decisions and actions. If mistakes
are made, she should acknowledge them, take corrective measures, and learn from them.
Safeguarding Employee Welfare: Neelam should prioritize the well-being of employees.
This includes addressing concerns related to harassment, discrimination, and providing a safe
and healthy work environment.
By embodying these personal ethics, Neelam can contribute to the ethical culture of the
organization, promote employee satisfaction, and ensure the effective functioning of the HR
department.

11. Presume that pawan is a senior officer working for cyber security agency. He comes
to know that his junior officer has been a victim of honey trapping through social
media. In all of this, his phone was hacked and confidential files were leaked. The
entire department has come together and wants pawan to take strict actions against
junior officer for his behavior. That junior officer is highly skilled and is an asset to
organization. He is also close to pawan as he had mentored him throughout and
respects him a lot. Moreover, any action against him might attract media attention
and bring a bad repute to the entire organization at large.
i. What are the ethical issues involved and options available to pawan in such a
situation?
ii. Suggest a course of action that pawan would take to resolve it.
i. Ethical Issues and Options:
Ethical Issues Involved:
Confidentiality: The confidential files were leaked, indicating a breach of trust and
confidentiality.
Professional Responsibility: As a senior officer, Pawan has a responsibility to uphold the
organization's standards of conduct and ensure the security of sensitive information.
Personal Relationship: Pawan shares a personal and professional relationship with the junior
officer, which may create a conflict of interest.
Reputation and Media Attention: Taking strict actions against the junior officer might attract
media attention and damage the organization's reputation.
Options Available to Pawan: Strict Action: Pawan can choose to take strict disciplinary actions
against the junior officer to uphold the organization's standards and deter such behavior in the
future.
Mentoring and Counseling: Pawan could opt for mentoring and counseling the junior officer,
guiding him to understand the severity of his actions and helping him rectify his behavior.
Confidential Investigation: Pawan might conduct an internal investigation to determine the
extent of the breach and the junior officer's involvement before deciding on a course of action.
Mediation: Pawan could involve a neutral third party to mediate between him and the junior
officer, facilitating a resolution without damaging their relationship.
Reprimand and Training: Pawan might provide a reprimand to the junior officer while also
offering cybersecurity training to educate him about the importance of data security.

ii. Suggested Course of Action:

Considering the situation and the ethical issues at hand, Pawan could take the following course
of action:
Internal Investigation: Initiate a confidential internal investigation to ascertain the extent of the
breach and gather evidence to make an informed decision.
Private Discussion: Have a private discussion with the junior officer to understand the context
of his actions, his involvement, and his intentions.
Mentoring and Counselling: Mentor and counsel the junior officer about the gravity of his
actions and guide him on rectifying his behaviour.
Appropriate Disciplinary Action: Depending on the findings of the investigation and the junior
officer's response, Pawan should take appropriate disciplinary action. This could range from a
formal warning to temporary suspension or even termination, if warranted.
Education and Training: Along with the disciplinary action, provide the junior officer with
training and workshops on cyber security and ethical conduct to prevent such incidents in the
future.
Reputation Management: If media attention is a concern, Pawan should involve the
organization's public relations team to handle any potential fallout and maintain the
organization's reputation.
Pawan's approach should aim to balance the ethical considerations, organizational standards,
and the need to uphold confidentiality while ensuring that the organization's best interests are
protected.
Please note that this is a suggested approach and may need to be adapted based on the
specific policies and practices of Pawan's organization and relevant legal considerations.

12. Describe how failure of personal character can be considered as one of the sources of
ethical problems stating one real life scenario.
Failure of personal character can contribute to ethical problems when individuals
compromise their values.
For example, John, a respected financial advisor, starts prioritizing his own profits over his
clients' well-being due to personal financial difficulties.
Ethical Issues:
Conflict of Interest: John's personal problems influence his advice, conflicting with his clients'
interests.
Dishonesty: He's not truthful with clients about his motives, damaging trust.
Breach of Trust: Clients rely on his integrity, but he's failing in that responsibility.
Neglecting Professional Duty: John is neglecting his duty to act ethically as a financial advisor.
Options for John:
Self-Reflection: Recognize his compromised values.
Seek Help: Consult a mentor or therapist.
Make Amends: Disclose mistakes to clients, rectify errors.
Rebuild Trust: Focus on ethical decisions to regain trust.
Suggested Action:
John should openly admit his wrongdoings to clients, work on personal character, and make
ethical choices to regain trust and preserve his career.
Extra GTU Questions Based on topic of Unit-1/2/3:

1. What values company expect from their employees?

Companies typically expect their employees to demonstrate a range of values and
behaviours that contribute to a positive and ethical work environment. Here are some key
values that companies commonly expect from their employees:
1. Honesty and Integrity: Companies want employees to be truthful and act with integrity in
all their interactions, both within the company and with external parties. This includes being
honest about their work, respecting confidentiality, and not engaging in deceitful
behaviour.
2. Reliability and Accountability: Employees are expected to be dependable and fulfill their
responsibilities and commitments. This means showing up for work on time, meeting
deadlines, and taking ownership of their tasks and mistakes.
3. Professionalism: Companies look for professionalism in how employees dress,
communicate, and behave. This includes being respectful, courteous, and maintaining a
positive attitude towards colleagues, clients, and customers.
4. Teamwork and Collaboration: Most companies value teamwork and expect employees to
work well with others. This involves being a good team player, sharing knowledge, and
supporting colleagues to achieve common goals.
5. Respect for Diversity and Inclusion: Employees are encouraged to treat all individuals with
respect, regardless of their background, ethnicity, gender, or beliefs. Embracing diversity
and fostering an inclusive environment is a growing expectation in many workplaces.
6. Ethical Decision-Making: Companies want employees to make ethical choices, even in
challenging situations. This means avoiding conflicts of interest, not accepting bribes, and
following the company's code of ethics.
7. Customer Focus: Many companies prioritize delivering value to customers. Employees are
expected to understand customer needs, provide excellent service, and ensure customer
satisfaction.
8. Environmental and Social Responsibility: In today's world, companies also often expect
employees to consider the environmental and social impact of their work. This may involve
sustainable practices and community engagement.
9. Continuous Learning and Improvement: Companies appreciate employees who are open to
learning and self-improvement. Staying updated with industry trends and enhancing one's
skills is often encouraged.
10. Adherence to Company Policies: Lastly, employees are expected to follow company
policies and guidelines. This includes compliance with rules related to safety, data
protection, and other specific regulations.
In summary, companies expect their employees to embody values such as honesty,
reliability, professionalism, teamwork, respect, ethics, customer focus, responsibility, and a
commitment to personal and professional growth. These values contribute to a positive
workplace culture and help organizations achieve their goals while maintaining their reputation
and integrity.
2. Why should businesses act ethically? Discuss one example where acting unethically
harmed the business and its stake holders?
Businesses should act ethically for several important reasons. One primary reason is to
build trust and maintain a good reputation with customers, employees, investors, and the
community. When businesses behave ethically, it creates a positive image and fosters trust
among stakeholders. Here's a simple explanation of why businesses should act ethically, along
with an example of unethical behavior harming a business and its stakeholders:
Why Businesses Should Act Ethically:
 Maintaining Trust:
o Ethical behavior helps businesses build trust with customers. When customers
trust a company, they are more likely to buy its products or use its services.
 Attracting and Retaining Customers:
o Ethical businesses often attract and retain more customers because people prefer
to support companies that treat them and the environment well.
 Employee Satisfaction:
o Ethical businesses tend to have happier and more motivated employees. When
employees feel that their company cares about ethics, they are more likely to be
loyal and productive.
 Investor Confidence:
o Ethical businesses are more appealing to investors. People are more willing to
invest in companies that are known for doing the right thing.
 Legal Compliance:
o Acting ethically helps businesses avoid legal troubles. Unethical behavior can
lead to fines, lawsuits, and damage to the company's reputation.

Example of Unethical Behavior Harming a Business and Its Stakeholders:

One well-known example of unethical behavior harming a business is the case of Enron
Corporation. Enron was a large energy company in the United States. They engaged in
unethical and fraudulent practices, such as inflating their profits and hiding debts.
Harm to Business and Stakeholders:
 Collapse of the Company:
o Enron's unethical actions eventually led to its bankruptcy in 2001, which was
one of the largest corporate bankruptcies in U.S. history.
 Investor Losses:
o Many investors lost their savings because they had invested in Enron's stock,
thinking it was a profitable and trustworthy company.
 Employee Losses:
o Enron's employees lost their jobs and retirement savings when the company
collapsed.
 Loss of Trust:
o The Enron scandal eroded trust in the business world. Investors and the public
became more skeptical of corporate ethics.
  Legal Consequences:
o Several Enron executives were prosecuted and sentenced to prison for their
unethical behavior.
In this example, acting unethically not only caused harm to the business itself but also had
severe consequences for its investors, employees, and the broader community. It highlights the
importance of ethical behavior in business to avoid such devastating outcomes and maintain
trust with stakeholders.

3. A personal moral standard can impact an employee’s decision making. Elaborate.

A personal moral standard is like a set of rules or values that a person believes in and
follows in their life. When it comes to employees in a workplace, these personal moral
standards can have a big impact on how they make decisions. Here's how:
Guiding Principles: Personal moral standards serve as guiding principles for employees. These
are the inner rules they use to judge what is right and wrong. So, when they face a decision at
work, they often refer to their personal moral standards to decide what to do.
Ethical Choices: Personal moral standards help employees make ethical choices. For example,
if someone believes strongly in honesty, they are more likely to make truthful and fair decisions
in their work because it aligns with their personal moral standard.
Conflict Resolution: When employees encounter situations where there's a conflict between
their personal moral standards and what the company or their boss asks them to do, it can be
challenging. They may feel torn between following their inner values and following orders.
This can lead to moral dilemmas where they must decide how to balance their personal morals
with their job responsibilities.
Consistency: Employees who stick to their personal moral standards tend to make consistent
decisions. This consistency can build trust with colleagues and clients because they know what
to expect from that person.
In summary, a personal moral standard is like an internal compass that guides an
employee's decision-making. It influences the choices they make in their work, helps them
make ethical decisions, but can also lead to challenges when their personal morals clash with
workplace expectations.

4. Briefly elaborate below statements in context to why they cannot be considered

business ethics:
i. Ethics is different from religion.
ii. Ethical Standards are different from cultural traits.
i. Ethics is different from religion:

Business ethics is about how businesses and individuals behave in the business world, making
decisions that are considered morally right or wrong within that context. While ethics can
sometimes overlap with religious beliefs, it's important to understand that not all ethical
principles are based on religion.
Religion often encompasses a broader set of beliefs and practices that may extend beyond
business activities. Business ethics, on the other hand, focuses specifically on what is right or
wrong in the professional and business environment. People from various religious
backgrounds, as well as those who may not adhere to any religion, can still agree on ethical
standards for business conduct. Therefore, business ethics is distinct from religion and can be
based on a wider range of principles that apply universally in the business world.

ii. Ethical Standards are different from cultural traits:

Ethical standards refer to the moral principles and guidelines that dictate how individuals and
organizations should behave in a morally acceptable way. These standards are intended to be
universal and apply consistently, regardless of cultural differences.
Cultural traits, on the other hand, are characteristics and practices that are specific to a
particular culture or group of people. Different cultures have their own customs, traditions, and
values, which can vary significantly from one place to another. These cultural traits can
influence behavior but may not always align with ethical standards.
Business ethics aims to establish a set of principles that transcend cultural differences and
provide a common framework for ethical behavior in the business world. While cultural traits
can shape individual behaviors and perceptions of ethics, ethical standards are designed to be
impartial and applicable across diverse cultures. Therefore, ethical standards are distinct from
cultural traits because they are meant to provide a universal and consistent basis for ethical
decision-making in business, regardless of cultural influences.

5. Why do businesses have a negative image?

Businesses can sometimes have a negative image for several reasons:
Unethical Behavior: Some businesses engage in unethical practices, such as fraud, deception,
or exploitation. When people hear about these actions, it can tarnish the reputation of all
businesses.
Corporate Scandals: High-profile scandals involving large corporations can make people
distrustful of businesses in general. Examples include financial scandals, environmental
disasters, or safety violations.
Poor Customer Service: When businesses provide poor customer service or fail to meet
customer expectations, it can lead to negative perceptions. Bad experiences often spread
through word of mouth or online reviews.
Environmental Impact: Companies that harm the environment through pollution or
unsustainable practices can face public backlash and negative image.
Labor Practices: Businesses that mistreat their employees, pay low wages, or have unsafe
working conditions can face criticism, damaging their image.
Product Quality and Safety: If businesses sell low-quality or unsafe products, it can lead to
harm and erode trust.
Greed and Excessive Profit-Seeking: When businesses prioritize profit over the well-being of
their customers or the community, it can create a negative image.
Lack of Transparency: When businesses are not transparent about their operations or hide
important information, it can lead to suspicion and mistrust.
It's important to note that not all businesses have negative images, and many strive to
act ethically and responsibly. However, the actions of a few unethical businesses can impact
the reputation of the entire business community. Building and maintaining a positive image
requires businesses to prioritize ethical behavior, social responsibility, and transparency in their
operations.

6. Mention the business ethics in Islam keeping into context the Indian ethical traditions.
Business ethics in Islam, as well as Indian ethical traditions, emphasize principles that
guide ethical conduct in economic and business activities. Here are some key points regarding
business ethics in Islam and how they relate to Indian ethical traditions:

1. Honesty and Truthfulness:

Islam: Honesty (Sadaqah) and truthfulness (Sidq) are fundamental principles in Islam. Muslims
are encouraged to be truthful and honest in their business dealings.
Indian Ethical Traditions: Indian ethics also value honesty and truthfulness. Concepts like
"Satyam" (truth) and "Dharma" (righteousness) emphasize moral integrity.

2. Fair Trade and Justice:

Islam: Islamic ethics emphasize fair trade and justice in business transactions. Unfair practices
like fraud or exploitation are discouraged.
Indian Ethical Traditions: Indian philosophies, including Hinduism and Buddhism, stress the
importance of fairness and justice in economic activities.

3. Charity and Social Responsibility:

Islam: The concept of "Zakat" in Islam encourages giving to the less fortunate. Muslims are
encouraged to be socially responsible and contribute to the welfare of society.
Indian Ethical Traditions: Indian traditions promote the idea of "Dana" (charity) and "Seva"
(selfless service) as ways to address social responsibility.

4. Respect for Workers:

Islam: Islam emphasizes fair treatment of workers and laborers. Payment of fair wages and
humane working conditions are important.
Indian Ethical Traditions: Indian ethics also value the dignity of labor and advocate for fair
treatment of workers.

5. Avoiding Unlawful (Haram) Business Activities:

Islam: Islam prohibits engagement in activities deemed as "Haram," such as gambling, alcohol,
and pork-related businesses.
Indian Ethical Traditions: Indian ethical traditions also discourage involvement in activities
that are considered harmful or unethical.

It's important to note that both Islamic and Indian ethical traditions emphasize ethical
behavior, fairness, and social responsibility in business activities. While they may have
different religious and cultural contexts, they share common values that promote ethical
conduct and the well-being of individuals and society. These principles provide a foundation
for ethical business practices in both contexts.

7. Can an effective decision be unethical? Explain.

Yes, an effective decision can sometimes be unethical. Here's an explanation of why:
Effectiveness vs. Ethics:
 Effectiveness refers to how well a decision achieves its intended goals or outcomes. An
effective decision is one that gets the job done efficiently and produces the desired
results.
 Ethics, on the other hand, involves making decisions that are morally right and fair.
Ethical decisions consider the impact on people, society, and values like honesty,
fairness, and justice.
When Effectiveness Is Unethical:
Sometimes, to achieve effectiveness in a decision, people might compromise ethical principles.
For example:
Lying for Short-Term Gain: In some cases, people may tell lies or withhold important
information to make a deal or project successful quickly. While this might seem effective in
the short term, it's unethical because it involves deception.
Exploiting Workers: Cutting labor costs to maximize profits might be an effective business
decision, but if it involves exploiting workers by paying them unfairly or subjecting them to
unsafe conditions, it's unethical.
Environmental Harm: Some decisions that maximize profits can harm the environment, such
as pollution or resource depletion. These decisions may be effective economically but unethical
due to their negative impact on the planet.
Discrimination: Discriminating against certain individuals or groups may be seen as an
effective way to maintain a particular corporate culture or achieve specific goals. However, it
is unethical and goes against principles of fairness and equality.
In summary, while effectiveness is essential in decision-making, it should not come at
the expense of ethics. Ethical considerations should always be taken into account, and decisions
that prioritize effectiveness over ethics can lead to negative consequences for individuals,
society, and a company's reputation in the long run.

8. Explain Honesty, Integrity, Transparency are the touchstones of Business Ethics.

Below is why honesty, integrity, and transparency are considered the touchstones of business
ethics:
1. Honesty:
Honesty is like a cornerstone of business ethics. It means telling the truth and being
straightforward in all business dealings. Here's why it's important:
Building Trust: When people know they can trust you and your business, they are more likely
to work with you or buy from you. Honesty helps in creating trust.
Long-Term Success: Honest businesses tend to have better long-term success because they
have a reputation for being truthful and fair.
Avoiding Legal Issues: Honesty can help a business stay out of legal trouble. Misleading
customers or partners can lead to lawsuits and fines.

2. Integrity:
Integrity is closely related to honesty but goes beyond it. It means having strong moral
principles and doing what is right, even when it's difficult. Here's why it's vital in business
ethics:
Consistency: Businesses with integrity act consistently with their values and principles. This
consistency builds trust with stakeholders.
Respecting Ethics: It ensures that a business respects ethical boundaries and doesn't engage in
activities that harm others or break the law.
Long-Term Reputation: Businesses with integrity often have a strong, positive reputation,
which can lead to customer loyalty and business growth.

3. Transparency:
Transparency means being open and clear in all business operations. Here's why it's considered
a touchstone of business ethics:
Trust and Accountability: Transparency builds trust because it shows that a business has
nothing to hide. It also holds the business accountable for its actions.
Informed Decision-Making: Transparent businesses provide stakeholders with the information
they need to make informed decisions. This is essential for investors, customers, and
employees.
Compliance: Transparency helps ensure that a business follows laws and regulations, which is
a key aspect of ethical behavior.
In summary, honesty, integrity, and transparency are like guiding principles in business ethics:
 Honesty means telling the truth and being straightforward.
 Integrity means having strong moral principles and doing what's right.
 Transparency means being open and clear in all business operations.
These principles help businesses build trust, maintain a good reputation, and act in ways that
are morally right and fair. They are the foundation of ethical conduct in the business world.

9. Explain the following terms with respect to business: i) Loyalty ii) Reliability
i) Loyalty: Loyalty in business means sticking with a company or brand because you like it and
trust it. It's like being a faithful friend to the business.
Employee Loyalty: Employees who stay with a company for a long time and work hard are
loyal.
Customer Loyalty: Customers who keep buying from a company and like its products or
services are loyal.
Business Partner Loyalty: When businesses work together and support each other, they are
showing loyalty in their partnership.
Loyalty is important because it builds trust and long-lasting relationships.

ii) Reliability: Reliability in business means being dependable and doing what you say you will
do, every time.
Product Reliability: Reliable products work well all the time without breaking.
Service Reliability: Reliable services are consistent and always meet expectations.
Employee Reliability: Reliable employees are on time, get their work done, and can be counted
on.
Reliability is crucial because it builds trust and keeps customers, partners, and employees
happy.