Business Ethics

Business ethics (also known as Corporate ethics) is a form of applied

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 business
organizations as a whole. Applied ethics is a field of ethics that deals with
ethical questions in many fields such as medical, technical, legal and
business ethics.
In the increasingly conscience-focused marketplaces of the 21st century,
the demand for more ethical business processes and actions (known
as ethicism) is increasing.[1] Simultaneously, pressure is applied on industry
to improve business ethics through new public initiatives and laws (e.g.
higher UK road tax for higher-emission vehicles).[2] Businesses can often
attain short-term gains by acting in an unethical fashion; however, such
behaviours tend to undermine the economy over time.
Business ethics can be both a normative and a descriptive discipline. As a
corporate practice and a career specialization, the field is primarily
normative. In academia descriptive approaches are also taken. The range
and quantity of business ethical issues reflects the degree to which
business is perceived to be at odds with non-economic social values.
Historically, interest in business ethics accelerated dramatically during the
1980s and 1990s, both within major corporations and within academia. For
example, today most major corporate websites lay emphasis on
commitment to promoting non-economic social values under a variety of
headings (e.g. ethics codes, social responsibility charters). In some cases,
corporations have redefined their core values in the light of business ethical
considerations (e.g. BP's "beyond petroleum" environmental tilt).
 History of Maruti Suzuki
Maruti Suzuki is one of India's leading automobile manufacturers and the market leader
in the car segment, both in terms of volume of vehicles sold and revenue earned. Until
recently, 18.28% of the company was owned by the Indian government, and 54.2%
by Suzuki of Japan. The Indian government held an initial public offering of 25% of the
company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to
Indian financial institutions. With this, Govt. of India no longer has stake in Maruti
Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei
car which at the time was the only modern car available in India, its' only competitors-
the Hindustan Ambassador and Premier Padmini were both around 25 years out of date
at that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are
sold in India and various several other countries, depending upon export orders. Models
similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and
manufactured in Pakistan and other South Asian countries.

The company annually exports more than 50,000 cars and has an extremely large
domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was
the India's largest selling compact car ever since it was launched in 1983. More than a
million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the
sales charts and Maruti Swift is the largest selling in A2 segment.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is
commonly used to refer to this compact car model. Till recently the term "Maruti", in
popular Indian culture, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has
been the leader of the Indian car market for over two decades.

Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of
New Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000 units per
annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly
plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual
capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a
combined capability to produce over 700,000 units annually.
More than half the cars sold in India are Maruti cars. The company is a subsidiary of
Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is
owned by the public and financial institutions. It is listed on the Bombay Stock Exchange
and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,
over six million Maruti cars are on Indian roads since the first car was rolled out on 14
December 1983.

Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto, Versa, Ritz,
Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift,
Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported from
Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti
Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and compact
cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and
performance into a compact, lightweight engine that is clean and fuel efficient.

Maruti is clearly an “employer of choice” for automotive engineers and young managers
from across the country. Nearly 75,000 people are employed directly by Maruti and its
partners.

The company vouches for customer satisfaction. For its sincere efforts it has been rated
(by customers)first in customer satisfaction among all car makers in India for ten years
in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner to
make a people's car for middle class India. Over the years, the product range has
widened, ownership has changed hands and the customer has evolved. What remains
unchanged, then and now, is Maruti’s mission to motorise India.
 MARUTI SUZUKI TODAY

More than half the number of cars sold in India wear a Maruti Suzuki badge.   We are a
subsidiary of Suzuki Motor Corporation Japan.

We offer full range of cars- from entry level Maruti 800 & Alto to stylish hatchback Ritz,
A star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand
Vitara.

Since inception, we have produced and sold over 7.5 million vehicles in India and
exported over 500,000 units to Europe and other countries. 

Our turnover for the fiscal 2008-09 stood at Rs. 203,583 Million & Profit After Tax at Rs.
12,187 Million

In these competitive times the challenge is to keep inventing newer

ways of doing things to keep the customers in your fold. 

Over the last few years ,the company strengthened the existing
practices and experimented with many new initiatives by way of
 
kaizens (continuous improvements) to delight its customers.

These initiatives ranged from product design and quality to network

expansion, and included new service programs to meet unsaid needs
of customers.
The company has retained its competitive edge by offering high quality products. 

In the field, the products are supported by rapidly expanding networks. The company has
diverse networks for new cars, spares, service, pre owned cars and so on, and all of them
were in expansion mode last year to enable the company get closer to the customer.
Servicing customers 24X7 ..... 365 days....
The company takes great pride in sharing that customers have rated Maruti Suzuki first once
again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia
Pacific. It is 10th time in a row. 

The award mirrors the company's commitment towards "Customer Obsession".

 MARUTI SUZUKI EXPORTS

What do countries like Poland, Finland, Iceland, Malta, Switzerland, The Netherlands, Algeria and Italy
have in common?

Maruti Suzuki cars ply on the roads of these countries, and what's more, they are soon becoming the
fastest selling cars in those lands.

Maruti Suzuki exports, entry-level models across the globe to over 100 countries and the focus has been
to identify new markets. Some important markets include Latin America, Africa and South East Asia. 

The Company clocked its highest ever exports at 70,023 units, a growth of 32.1% in the Fiscal Year
2008-09.
 
The export effort is being led by Suzuki's fourth World Strategic Model, A-star, which is
being manufactured exclusively in Maruti Suzuki. 

This was a year of a major boost to the Company's export business with the launch of A-star
as the new Suzuki Alto in Europe. It represents Suzuki's re-entry into the European small-car
market. 

A-star, as a Made-in-India car, represents Maruti Suzuki aspirations as an Indian company to

emerge as a global hub for manufacturing and exporting small cars.

VISION AND CORE VALUES

CUSTOMER OBSESSION

FAST,FLEXIBLE AND FIRST MOVER

INNOVATION AND CREATIVITY

NETWORKING AND PARTNERSHIP

OPENESS AND LEARNING

ETHICAL POINTS OF MARUTI SUZUKI

ECONOMIC SUSTANABILITY
The complex nature of automobile industry places huge responsibility on the O riginal E
quipment M anufacturers (OEMs) like us. In addition the sustainability of a number of
enterprises in the value chain of the automotive industry depends on us.
One Component
One Gram Weight Reduction We launched the "One Component, One Gram Weight
Reduction" program to improve component designs with an objective to reduce raw material
usage. This has helped us remain cost-effective during a time when prices are on the rise.
Suggestion Schemes
The Suggestion Scheme of the company continues to motivate employees for creativity and
innovation. Collectively, the employees of the company implemented over 100,000
suggestions giving the company an annualized saving of over Rs.700 Million. The employees
are duly recognized and rewarded financially for their contribution.
Support to vendors
As far as the vendors are concerned, the company has supported vendors with short term
financial loans while imparting them guidance on financial management.

ENVIRONMENT
At a product level

To us, environmental sustainability begins with our products. The KB-

series engines introduced in 2008-09 are the most fuel efficient and environment
friendly engines. The Ritz, a new car with a KB-series engine is the first car in
India that meets Bharat Stage - 4 emission requirements, ahead of the
deadline of 1st April, 2009 set by Government. 

The company promotes 3 R (Reduce, Reuse and Recycle) in its manufacturing

facilities, supply chain and logistic operations. We have initiated projects toward
waste minimization and utilization.  

At the Production Area

The multi axes painting robot at paint shops has improved paint transfer
efficiency and thereby reduced paint consumption and paint sludge
generation. Sheet metal press stampings coming out of the press shop are
reused at the company¿s sheet metal component suppliers that make smaller parts
for use in car manufacturing. The protection caps of sensitive components and
supply bins are collected and are sent back to the suppliers for reuse. 

The company has introduced Production Management System to identify wastages

in the manufacturing process and to minimize them. A similar system is being
replicated at service workshops across the country.

Power and Resources

The company has its own captive power plants to meet its power requirements
and of its joint venture companies located in its vicinity. The major fuel used for
power generation is natural gas. 

We are a zero waste water discharge company. Canal water is the main source
of fresh water. All the waste water generated is recycled and reused.

The company has constructed Rain Water Harvesting structures within the

factory premises to collect rain water and recharge back into the aquifer below
ground level. Total recharge rain water handling storage and recharging capacity is
20,000 cubic meters. 

The steam generated from exhaust gases of gas turbine is used as a prime mover
for compressor to reduce electricity consumption. This steam is then further
supplied for process requirement during car manufacturing.  

Awareness and Promotion

The company celebrates Environment Month in June every year to promote

awareness about environment protection among its employees, suppliers and local
communities. Various activities are organized such as tree plantation, nukkar
nataks (Street Shows) for community people, training programs for employees and
suppliers. In 2008-09, the company planted over 1000 trees in Manesar plant
and in the nearby villages. 

SERVICE AT YOUR DOOR STEP THROUGH MARUTI MOBILE SUPPORT

Service at your Door Step through Maruti Mobile Support

Another unique initiative is the door step service facility through Maruti Mobile
Support.

Maruti Mobile Support is a first of it's kind initiative and is expected not only to 
help the company reach out customers in metro cities but also as a mean to
reach semi urban /rural areas where setting up of new workshop may not be
viable.

NATIONAL ROAD  SAFETY MISSION

Maruti Suzuki considers road safety to be an integral part of its social
initiatives. Taking forward its commitment to road safety, Maruti Suzuki has
adopted a National Road Safety Mission launched in Dec 2008 under which
500000 people will be trained in road safety in the next three years. This will be
done through the two channels - Institute of Driving Training and Research
(IDTR) and the Maruti Driving Schools spread across the country. Of the
500,000 people to be trained, at least 100,000 will be people from
underprivileged section of society, who are keen to take driving as a
profession.

Local Community
 
We consider the local community our important stakeholder. The CSR team along with
an NGO partner work with the community, identify their needs and do social projects
accordingly. These community initiatives have helped in developing a cohesive
relationship between the community and the company. 

We have adopted four villages around the Manesar manufacturing facility for overall
development the well being of people living in these villages
 
The areas of focus include Health Care, Education, Employability and Infrastructure.
Free health camps are organized regularly in these villages
Unemployed educated youth are identified from these villages and given vocational
 training at ITI Gurgaon (Being upgraded by Maruti Suzuki) and Maruti Driving School,
Gurgaon. The company also facilitates their employment.
The company has improved infrastructure of a Government Senior Secondary
School, Kasan in 2008-09, by constructing toilets, pavements and erecting drinking
water supply system. This year the company has planned to upgrade infrastructure of
school in another village. The upgradation work is undertaken as per the specific
needs of that school.
School students are given exposure to the company's manufacturing facilities by
organizing plant visits. Career guidance is part of the factory visit program.
Besides, the company runs two schools in Gurgaon area in collaboration with the
DPS society. These schools cater to the educational needs of the children of MSIL
employees and the people living in the local communities of Gurgaon
 

Occupational Health and Safety

 

Safety at the Workplace The company has a robust framework to promote work place safety
at its manufacturing facilities, offices and other business operations.

Safety Leadership Program We have constituted a structured Safety Leadership organization

comprising of Central Safety Leadership Council (CSLC) and Business Vertical Safety
Leadership Committees (BVSLC). The key role of this safety organization is to focus on
safety process improvements in measurable terms.

Safety Training: There is a dedicated safety department in the company and a safety
coordinator in each department. All new employees are given compulsory safety training at
the time of joining. Regular training programs on work place safety and mock drills happen all
through the year.

Safety Month Every year, the company observes Safety Month. All employees, starting from
Managing Director take Safety Oath to work safely and promote safety at the work place.
Safety awareness programs are organized for the employees, their families and school
children.

Health Awareness Programs We organize health awareness and immunization programs in

association with reputed hospitals and Government Health Centers through out the year for
the employees.
 

UNETHICAL POINTS OF MARUTI SUZUKI

Fuel efficiency of some of the cars is not efficient

People are not satisfied with some of the service station in india

BASICS OF CORPORATE GOVERNMENT AND

BUSINESS ETHICS

ASSIGNMENT-1

MARUTI SUZUKI

NAME- DEEPAK PATHAK

CLASS- BBA-A

SEMESTER-1V

ROLL NO-42