Business Ethics And Corporate Governance
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This document discusses business ethics and corporate governance. It defines business ethics as applying ethical principles to complex moral dilemmas in business. Corporate governance involves balancing stakeholder interests like shareholders, management, and customers. The document also discusses the importance of business ethics for gaining trust, loyalty, and sustaining business. It provides examples of unethical issues like bribery and insider trading. Additionally, it outlines Tata's strong principles of business ethics in areas like national interest, financial reporting, and equal opportunities.
Business Ethics And Corporate Governance
- 1. Business Ethics And Corporate Governance Submitted By: Divanshu Pahwa
- 2. Flow Of Content  Business Ethics  Importance Of Business Ethics  Corporate Governance  Issues in Corporate Governance  Ethics and Corporate Governance  Unethical Issues  Ethical Organization  TATA Introduction  TATA’s Business Ethics Principles  Conflicts  Conclusion
- 3. What Is business ethics? ï‚š Business Ethics IS the art and discipline of applying ethical principles of solve complex moral dilemmas ï‚š Business ethics prove that business has been ethical and can continue to do so while earning profits ï‚š A business is considered to be ethical only if tries to reach a tradeoff between economics objectives and social obligations
- 4. Importance of Business Ethics ï‚š Gaining trust ï‚š Customer loyalty and satisfaction ï‚š Preventing harm to society ï‚š Protecting business from abuse by unethical employees ï‚š Sustaining the business ï‚š Protecting their own reputation
- 5. What is Corporate Governance  Corporate governance is the system of rules, practices and processes by which a company is directed and controlled.  It essentially involves balancing the interests of a company’s many stakeholders, such as SHAREHOLDERS, MANAGEMENT, CUSTOMERS, GOVERNMENT, COMMUNITY.
- 6. Issues in Corporate Governance ï‚š Distinguishing the roles of board and management ï‚š Composition of board ï‚š Board committees ï‚š Directors and executive remuneration ï‚š Protection of shareholder rights and expectations ï‚š Disclosure and audit
- 7. Ethics and Corporate Governance  Corporate Governance is meant to run companies in an ethical manner such that the interest od the all stakeholders is taken care of  Corporate governance should come from within.  Corporations should ensure that confidential information made available in the place of work shouldn’t be used for personal benefits.
- 8. Unethical Issues ï‚š Bribery ï‚š Coercion(forcing people to do things) ï‚š Insider Trading (Misuse of official position) ï‚š Unfair Discrimination ï‚š Political Donations And Gifts ï‚š False Income Statements
- 9. Characteristics of Ethical Organization ï‚š Based on principle of fairness ï‚š Stakeholders are treated equally ï‚š Benefits of stakeholders in given precedence over own interest ï‚š What is to be done, how to done Is clearly Stated ï‚š No bureaucracy ï‚š Compliance with applicable laws E.g. Rules made by SEBI, Federal Government, etc ï‚š Honesty, Fairness And Accuracy In Operation
- 10. Business Ethics | TATA • LARGEST PRIVATE GROUP IN INDIA • 114 COMPANIES IN 7 BUSINESS SECTORS • Type: PRIVATE • Founded: 1868 • Founder: JAMSHETJI TATA • Headquarters: Mumbai • Area Served: WORLDWIDE • Key People: RATAN TATA
- 11. Why TATA? India’s Largest investor in CSR India’s 1st Glocal Company India’s Oldest Business House India’s Most Employee Friendly Company
- 12. TATA’s Business Ethics Principles  National Interest: Committed to benefit the economic development of countries which it operates  Financial reporting and records: Prepare and maintain its accounts fairly and accurately and in accordance with the accounting and financial of the country  Competition: Fully support the development and operation of competitive open markets  Equal Opportunities Employer: Provide equal opportunities to all its employees and all qualified applicants for employment  Gifts and Donation: its employees shall neither receive nor offer or make any illegal payments, remuneration, donations.
- 13. • Government Agencies: A Tata company and its employees shall not, unless mandated under applicable laws, offer or give any company funds or property as donation to any government or its representative. • Political non-alignment: Be committed to and support the constitution and governance systems of the country in which it operates. • Ethical conduct: Employees of a Tata company, in their business conduct, shall comply with all applicable laws and regulations, in letter and spirit • Conflict of interest: Employees act in the interest of the company, and ensure that any business or personal association which he / she may have does not involve a conflict of interest with the operations of the company • Protecting company assets: The assets of a Tata company shall not be misused • Integrity of data furnished: Every employee of a Tata company shall ensure, at all times, the integrity of data or information furnished by him/her to the company.
- 14. TATA & CONFLICTS Fire cases in TATA NANO cars Recent 2G Spectrum issues "Save Farmland“ movement against Nano plant at Singur
- 15. TATA Awards And Recognisation TATA motors most valued brand of India Hellen Keller Award for CSR CII Award for Corporate Sustainability Reporting Golden Peacock Global Award for Corporate Social Responsibility Bombay Natural History Award for Green Governance
- 16. CONCLUSION  Business Ethics cultivate strong teamwork and productivity.  It supports employees growth.  It helps to ensure policies are legal.  It promotes strong public image.  It improves trust and relationships.  It cultivates a greater sensitivity towards the impact of the enterprise’s values and messages.