Unit 3 - Indian Perspective & Global Issues

8/11/2019 Unit 3 - Indian Perspective & Global Issues

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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)

Section 2

A) Indian Perspective of Ethics

1. Purusharthas: Dharma, Artha, Kama, Moksha2. Concept of Dharma

B) Ethics: A Global Perspective:

1. Ethics in Global Marketin ! A"#ertisin2. Ethical perspecti#e in Emplo$ment inclu"in the international labour

%rani&ation St"'

3. Ethics an" (): E*commerce, Pri#ac$ Co"es'4. En#ironmental Ethics: (n"ian an" +estern perspecti#es5. Ethics an" Cross* culture inuences6. Ethical issues an" functional aspects of business

A- Indian Perspective of Ethics

1. Purusharthas: Dharma, Artha, ama, !o"sha

#. $oncept of Dharma

Purushameans either Go" or a human bein'Artha means an ob.ect or ob.ecti#e' /Purusharthas/ means ob.ecti#esof a human bein' Purusha "oes not mean male in the ph$sical sense,but an$ soul in its "i0erentiate" aspect'

So the purusharthas are applicable to both men an" 1omen euall$')he purusharthas ser#e as pointers in the life of a human bein' )he$ arebase" on the #ision of Go" 1hich is e#i"ent in the creation 3e manifeste"

an" 1hich can be follo1e" b$ man to be part of that #ision an" inharmon$ 1ith 3is aims' 3is 1orl"s are establishe" on the principles of"harma' )he$ are 4lle" 1ith the abun"ance of material an" spiritualbeins an" eneries, 1ho seek ful4llment b$ achie#in their "esires an"liberation' Since man is Go" in his microcosmic aspect, he too shoul"emulate Go" an" manifest the same realit$ in his o1n little 1orl"' 3eshoul" pursue the same aims, e5perience life in its fullness an" be aninstrument of Go" b$ ser#in the purpose for 1hich he has been create"')he four chief aims or purusharthas are:

1. Dharma %ri&hteousness),#. Artha %'ealth),

(. ama %desire) and. !o"sha %salvation or liberation)

)he rationale behin" these purusharthas becomes clear 1hen1e consi"er the basic tenets of 3in"uism' Man is an aspect of Go"' 3eis Go"6s ob.ecti#e realit$ in creation' 3e e5ists in relationship 1ith Go"like a reection in the mirror that is some1hat "i0erent $et inseparable

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an" some1hat similar' 7eile" in him is the true self b$ the inuencean" in#ol#ement of Prakriti or primor"ial nature'

)he purpose of his life upon earth is to follo1 the la1 8"harma- of Go"

an" achie#e sal#ation 8moksha- or free"om from his false self8ahamkara- b$ lea"in a balance" life in 1hich both material comfortsan" human passions ha#e their o1n place an" leitimac$'

Man cannot simpl$ take birth on earth an" start 1orkin for his sal#ationriht a1a$ b$ means of .ust "harma alone' (f that is so man 1oul" ne#erreali&e 1h$ he 1oul" ha#e to seek liberation in the 4rst place' As hepasses throuh the riors of life an" e5periences the problem of humansu0erin, he learns to appreciate the #alue of liberation' 3e becomessincere in his uest for sal#ation' So 1e ha#e the four oals, instea" of.ust one, 1hose pursuit pro#i"es us 1ith an opportunit$ to learn important

lessons an" mo#e for1ar" on the spiritual path' +hat the purusharthascharacteri&e is not a life of self*neation, but of balance, comple5it$,richness, opportunities an" mo"eration in a cosmic "rama of immenseproportions in 1hich man ultimatel$ en#isions an" e5periences his trueran"eur an" ful4lls the #er$ purpose of his creation'

E#er$ in"i#i"ual in 3in"u societ$ is e5pecte" to achie#e these fourob.ecti#es 1ith "etachment, 1ithout an$ e5pectation an" as a sacri4cialo0erin to Go" in the ritual of human life' )he$ ha#e to be pursue"selessl$ for a hiher an" reater cause' Depen"in upon the attitu"e an"the manner in 1hich 1e pursue them, the$ either set us free or entanleus "eeper 1ith the allurements of human life'

Dharma

)he 4rst of the oals is "harma, a 1or" 1hich is "i9cult to translate inEnlish' Since the same 1or" is use" in man$ eastern reliions, it meansman$ thins to man$ people an" elu"es a true "e4nition' (t has been#ariousl$ translate" as "ut$, faith, reliion, rihteousness, sacre" la1, .ustice,ethics, an" moralit$ an" so on' Accor"in to one school of 3in"uism, "harmais an obliator$ "ut$ as prescribe" b$ the 7e"as to be performe" b$ anin"i#i"ual in accor"ance 1ith the rules prescribe" for the caste to 1hich he orshe belons' Go" is an uphol"er of "harma because he performs 3is "uties

e#en thouh the$ are not obliator$ an" 3e is 1ithout "esire or preference'

)here is no 1or" in atin or Enlish that can trul$ e5plain the comple5meanin of "harma' (ts 4rst letter /"ha/ is also the 4rst letter of "haritri, theearth, 1hich is suesti#e of its connection 1ith the earth or earthl$ life' (n a1i"er sense, "harma is the secret lue, the bin"in force, 1hich uphol"s an"reulates this entire creation .ust as the ra#itational force controls an" hol"sthe entire material uni#erse as one piece' (t is the "i#ine constitution that

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"e4nes our roles an" responsibilities, our social an" moral or"er, our purposean" oals an" the re1ar"s an" punishments that are appropriate for ouractions' (t is the la1 of Go" that is sacre", in#iolable an" per#asi#e' (t isresponsible for or"er, reularit$, harmon$, control, pre"ictabilit$ an"accountabilit$' Accor"in to Manusmriti, "harma is four foote" in the Krita aean" loses one le in each successi#e ae' )hus in the fourth an" last ae of

Kali, it becomes cripple" an" rests upon .ust one le'

Dharma e5ists in all planes, in all aspects an" at all le#els of creation' (n theconte5t of human life, "harma consists of all that an in"i#i"ual un"ertakes inharmon$ 1ith "i#ine in.unctions an" his o1n sense of moralit$ an" .ustice'3o1e#er to comprehen" the true nature of "harma is not an eas$ task' )he1orl" is en#elope" in illusion as our human min"s are' +hat 1e see in the1orl" an" learn from it ma$ not be true an" reliable' +hat 1e consi"er asriht an" 1ron or "harma an" a"harma ma$ not stan" the test of truth'3ence to practice "harma 1e are a"#ise" to rel$ upon the scriptures an"follo1 the in.unctions containe" there in'

)he sources of "harma are the 7e"as, the 7e"anas, the Sutra literature of1hich the most important are the Dharmashastras, an" scriptures such as the;haa#a"ita' (n ancient (n"ia "harmashastras 8la1 books- pla$e" animportant role in ui"in people on the path of "harma' (t is ho1e#er "i9cultto sa$ ho1 far the$ are rele#ant in the present ae' %ne shoul" alsoremember that "harma shoul" not be #ie1e" as en" in itself but the meansto a still hiher en", liberation'

Artha

Artha means 1ealth' 3in"uism reconi&es the importance of material 1ealth

for the o#erall happiness an" 1ell bein of an in"i#i"ual' A house hol"erreuires 1ealth, because he has to perform man$ "uties to uphol" "harmaan" take care of the nee"s of his famil$ an" societ$' A person shoul" not seek1ealth for 1ealth sake but to uphol" "harma an" help the members of hisfamil$ an" societ$ achie#e their oals' 3in"uism therefore rihtl$ placesmaterial 1ealth as the secon" most important ob.ecti#e in human life' +hile"harma an" moksha are meant for oneself, 1ealth an" se5 are to be pursue"for the sake of others' or" 7ishnu is the best role mo"el for an$househol"er' 3e lea"s a lu5urious life, ser#e" b$ the o""ess of 1ealthherself, but is #er$ "utiful, helpful, responsi#e an" rihteous' So 1as or"Krishna 1hile he 1as in human form' 3e li#e" a #er$ lu5urious life, but 1asrihteous, "etache" an" balance"'

3in"uism a"#ocates austerit$, simplicit$ an" "etachment, but "oes notlorif$ po#ert$' +ealth is not an impe"iment to self*reali&ation, butattachment to 1ealth is' Desire for 1ealth is "i0erent from ree" for 1ealth'Seless "esire for 1ealth is preferable to sel4sh "esire for 1ealth' Mone$ an"1ealth are a form of "i#ine ener$' Go" is abun"ance' 3e is en"o1e" 1itheiht kin"s of 1ealth' ;ut as Sri Aurobin"opointe" out 1e ha#e neati#e

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attitu"e mostl$ about 1ealth because hostile an" neati#e forces 1ant usbelie#e so an" thereb$ pre#ent its use for rihteous reasons'

Seekin 1ealth throuh human actions is not "iscourae" in 3in"uism' )he#e"ic h$mns are mostl$ in#ocations a""resse" to o"s an" o""esses b$men "esirin 1ealth an" prosperit$' 3o1e#er the$ also emphasi&e the nee"

for riht intention, riht means an" mo"eration in the pursuit of 1ealth'Aimin for 1ealth is a #irtue, but ree" is not' Amassin 1ealth for the famil$an" for the 1elfare of oneself is not sinful, but takin 1hat "oes not belon toone is' 3in"uism,


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them so that the 1a$ of the "harma also becomes the 1a$ of ful4llment of"esires'

Moksha

)he pursuit of "harma reulates the life of a human bein an" keeps him onthe rihteous path' )he pursuit of artha an" kama enrich his e5perience an"impart to him #aluable lesson' )he pursuit of moksha or sal#ation liberateshim an" lea"s him to the 1orl" ;rahman' )he pursuit of "harma usuall$beins in the earl$ ae 1hen one is initiate" into reliious stu"ies' )hepursuit of artha an" kama beins in most cases after one becomes ahousehol"er' )he pursuit of moksha ho1e#er is the most important of all aimsan" can bein at an$ time' )he other aims are preparator$ for this 4nal aim'3o1e#er, in most cases, thouh not correctl$, moksha becomes an importantpursuit in the ol" ae "urin #anaprastha or the ae of retirement' Moksha isboth a purushartha an" a paramartha 8transcen"ental aim-, 1hich isimportant not onl$ for men but also for the "i#ine beins'

Moksha actuall$ means absence of moha or "elusion' Delusion is cause" b$the inter pla$ of the triple unas, the acti#it$ of the senses, attachment 1ithan" "esire for sense ob.ects' A person achie#es liberation 1hen he increasesthe ualit$ of satt#a, suppressin ra.as an" tamas an" o#ercomes his "esirefor sense ob.ects b$ "etachment, self control, surren"er to o" an" o0erinof one6s actions to Go"' )here are man$ paths to sal#ation an" all of themlea" to Go"' )he main paths are the path of kno1le"e, of action, of "e#otionan" of renunciation' Each path has its o1n a"#antaes an" "isa"#antaes'1hate#er ma$ be the path, the help an" ui"ance of a uru is in"ispensable

to one6s spiritual .ourne$' A uru is Go" in human form 1hose his chiefpurpose is to remo#e the "arkness hi""en in the hearts an" min"s of his"isciples an" help them 4n" their true sel#es'

)he purpose of purusharthas is to ensure that people 1oul" not nelect theirobliator$ "uties in their "elu"e" state b$ becomin obsesse" 1ith particular"esires that ma$ lea" to moral an" social "eca"ence an" "estruction offamil$ #alues' )he four Purusharthas are responsible for balance in humanlife' )he$ make life a re1ar"in an" enrichin e5perience' )he$ cater to thespiritual an" material aspirations of human beins an" lea" them in the riht"irection on the path of liberation' )he e5emplif$ the #er$ functionin of Go"1ho, 1ithout an$ particular aim or "esire, "etache", seeks to establish these

four aims in the entire manifest creation throuh his trinit$ of ;rahma, 7ishnuan" Mahesha an" 3imself as the hihest an" supreme aim of all' )hus b$1orshippin ;rahma 1e can ain the kno1le"e of "harma an" perform ourobliator$ "uties 1ith precision an" perfection' ;$ 1orshippin 7ishnu 1e canain material an" spiritual 1ealth an" 1ork for the 1elfare of our families an"societ$' ;$ 1orshippin Si#a 1e can seek the ful4llment of our "esires an"o#ercome our "elusion an" 4nall$ b$ pursuin ;rahman, or an$ of these o"sas ;rahman, 1e can achie#e liberation b$ becomin ;rahman 3imself'

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*he $oncept of Dharma:

Dharma is the path of righteousness and living one's life according to the

codes of conduct as described by the Hindu scriptures.

Dharma is a term that is frequently used in Indian spiritual thought. Though it is aterm with wide and far reaching ramifications, it essentially signifies a sense ofduty, a sense of obligation or a sense of responsibility.

Goo" Dharma ? Goo" Karma

@Dharma basicall$ means to nourishB, to uphol"B an" sini4es1hate#er supports the uni#ersal or"er an" also the in"i#i"ual life insociet$' Dharma is the basic #alue in life as 1ell as in transactions *social, reliious, secular an" #ocational' Dharma is the 4rst of the three

normal human purposes, the other t1o bein the acuisition of 1ealth8artha- an" the en.o$ment of pleasures 8kama-' Dharma ischaracteri&e" b$ certain common human #alues like truth, enerosit$,compassion, s$mpath$, self*restraint, fori#eness, non*enmit$,frien"liness, absence of en#$ an" rectitu"e in con"uct')he scriptures sa$ atten" to this, the essence of "harma, "o not "o toothers 1hat $ou 1oul" not "o to $ourself' Put $ourself in the position ofothers an" then actB' (n other 1or"s, "harma is the inner liht of clearconscience, min"ful of the 1elfare of all an" minimi&in eoin#ol#ement an" sel4shness in institutional beha#iour'

'

Dharma is closel$ linke" 1ith the i"ea of oriinal human in"ebte"nessor inescapable obliation' E#er$ human bein is born 1ith three "ebts')he 4rst is to1ar"s his ancestors, the secon" is to1ar"s the saes an"the thir" is 1hat he o1es to the Go"s'

;$ continuin the famil$ line b$ ha#in his o1n chil"ren, he "ischareshis "ebts to1ar"s his ancestors, b$ stu"$in, un"erstan"in thecultural conte5t an" milieu into 1hich he is born, he "ischares his"ebt to1ar"s the saes, as the saes ha#e been responsible for theunbroken cultural heritae of the lan"' ;$ respectin an" 1orshippin

the elemental an" en#ironmental forces like the air, the ri#ers, themountains, plants, animals etc, he "ischares his "ebts to the Go"s'8)he stress on en#ironmental a1areness is to be note" here-' )hisconcept of in"ebte"ness is the #er$ source of "harma, 1hich shifts thefocus from "esire rati4cation to "ut$ ful4llment, thus makin humanlife meaninful an" 1orth1hile '

)he t1o reat epics of (n"ia, the =ama$ana an" the Mahabharata both

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emphasi&e the role of Dharma in in"i#i"ual life as 1ell as in collecti#ee5istence' (f the =ama$ana illustrates the nee" to subor"inate 1ealthan" en.o$ment to "harma, thus makin it the mirror of (n"ian culture,the Mahabharata e5poun"s on the challenes that "harma faces fromree" an" 1ealth in personal an" public life an" ho1 real "harma is

sabotae" b$ surroates an" counterfeits' )his is Dharma, thebe"rock of human e5istence'

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B) Ethics: A Global Perspective:

1. Ethics in Global Marketing & Advertising

. Ethical perspective in E!ploy!ent including in the international labour

"rgani#ation Std.

$. Ethics and %' E(co!!erce) *rivacy Codes.

+. Environ!ental Ethics' %ndian and ,estern perspectives

-. Ethics and Cross( culture inluences

/. Ethical issues and unctional aspects o business

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1) Ethics in Global Marketing & A!ertising"

"A customer is the most importantvisitor of our premises.

He is not dependent on us -we are dependent on him.

He is not an interruption on our work -he is the purpose of it.

He is not an outsider on our business -he is a part of it.

We are not doing him a favourby serving him -

He is doing us a favour by giving usan opportunity to do so."

- Mahatma Ganhi

)he %5for" ni#ersit$ Press "e4nes &lobal mar"etin&as @marketinon a 1orl"1i"e scale reconcilin or takin commercial a"#antae oflobal operational "i0erences, similarities an" opportunities in or"er tomeet lobal ob.ecti#es'

* -ford niversit/ Press0 Glossar/ of !ar"etin& *erms

Marketin ethics is the area of applie" ethics1hich "eals 1ith themoral principles behin" the operation an" reulation of marketin'Some areas of marketin ethics 8ethics of a"#ertisinan" promotion-o#erlap 1ith me"ia ethics'

undamental Issues in the Ethics of !ar"etin&

rame'or"s of anal/sis for ethical mar"etin& 2

Possible frame'or"s:

7alue*oriente" frame1ork, anal$&in ethical problems on thebasis of the #alues 1hich the$ infrine 8e'' honest$, autonom$,pri#ac$, transparenc$-' An e5ample of such an approach is theAMA Statement of Ethics'

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Stakehol"er*oriente" frame1ork, anal$sin ethical problems onthe basis of 1homsoe#er the$ a0ect 8e'' consumers,competitors, societ$ as a 1hole-'

Process*oriente" frame1ork, anal$sin ethical problems in termsof the cateories use" b$ marketin specialists 8e'' research,

price, promotion, placement-'>one of these frame1orks allo1s, b$ itself, a con#enient an" completecateori&ation of the reat #ariet$ of issues in marketin ethics'

3ature and 4cope of !ar"etin& Ethics

Marketin ethics is #ie1e" as important because of marketinBsinterface 1ith man$ "i#erse stakehol"ers' Marketin is a ke$ functionalarea in the business orani&ation that pro#i"es a #isible interface 1ithnot onl$ customers, but other stakehol"ers such as the me"ia,

in#estors, reulator$ aencies, channel members, tra"e associations,as 1ell as others' (t is important 1hen a""ressin marketin ethics toreconi&e that it shoul" be e5amine" from an in"i#i"ual,orani&ational, an" societal perspecti#e' E5aminin marketin ethicsfrom a narro1 issue perspecti#e "oes not pro#i"e foun"ationalbackroun" that pro#i"es a complete un"erstan"in of the "omain ofmarketin ethics' )he purpose is to "e4ne, e5amine the nature an"scope, i"entif$ issues, pro#i"e a "ecision*makin frame1ork, an" tracethe historical "e#elopment of marketin ethics from a practice an"aca"emic perspecti#e'

DEI3I*I3 !A5E*I3G E*6I$4

Ethics has been terme" the stu"$ an" philosoph$ of humancon"uct, 1ith an emphasis on the "etermination of riht an" 1ron'or marketers, ethics in the 1orkplace refers to rules 8stan"ar"s,principles- o#ernin the con"uct of orani&ational members an" theconseuences of marketin "ecisions' )herefore, ethical marketinfrom a normati#e perspecti#e approach is "e4ne" as @practices thatemphasi&e transparent, trust1orth$, an" responsible personal an"orani&ational marketin policies an" actions that e5hibit interit$ as1ell as fairness to consumers an" other stakehol"ers' Marketin ethics

focuses on principles an" stan"ar"s that "e4ne acceptable marketincon"uct, as "etermine" b$ #arious stakehol"ers an" the orani&ationresponsible for marketin acti#ities'

+hile man$ of the basic principles ha#e been co"i4e" as la1s an"reulations to reuire marketers to conform to societ$Bs e5pectationsof con"uct, marketin ethics oes be$on" leal an" reulator$ issues'

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Ethical marketin practices an" principles are core buil"in blocks inestablishin trust, 1hich help buil" lon*term marketin relationships'(n a""ition, the boun"ar$*spannin nature of marketin 8i'e' sales,a"#ertisin, an" "istribution- presents man$ of the ethical issues face"in business to"a$'

;oth marketin practitioners an" marketin professors approachethics from "i0erent perspecti#es' or e5ample, one perspecti#e is thatethics is about bein a moral in"i#i"ual an" that personal #alues an"moral philosophies are the ke$ to ethical "ecisions in marketin'7irtues such as honest$, fairness, responsibilit$, an" citi&enship areassume" to be #alues that can ui"e comple5 marketin "ecisions inthe conte5t of an orani&ation' %n the other han", approachin ethicsfrom an orani&ational perspecti#e assumes that establishinorani&ational #alues, co"es, an" trainin is necessar$ to pro#i"econsistent an" share" approaches to makin ethical "ecisions'

Key Issues in Marketing Ethics

;$ its #er$ nature, marketin ethics is contro#ersial, an" there is nouni#ersall$ accepte" approach for resol#in uestions' Ethical issuesa""ress a problem, situation, or opportunit$ that reuires an in"i#i"ual,roup, or orani&ation to choose amon se#eral actions that must bee#aluate" as riht or 1ron' )he orani&ation an" stakehol"ers "e4nemarketin ethical issues that must be i"enti4e" an" resol#e" to buil"trust an" e0ecti#e relationships 1ith stakehol"ers' ;ecause marketin

ethics sometimes "eals 1ith sub.ecti#e moral choices, this reuires"ecisions about the moral stan"ar"s to appl$ an" the "e4nition ofethical issues' 3o1e#er, man$ roups in societ$, inclu"ino#ernment, are "e4nin ethical an" leal issues an" proacti#eapproaches to "eal 1ith these issues' or e5ample, millions of blos orpersonal 1eb los e5ist on the (nternet 1ithout an$ formal co"e ofethics or reulation' Man$ 4rms, such as Au"i, ha#e their o1n blos1ith man$ stakehol"ers reuestin the formation of an ethicscommittee to create uni4e" stan"ar"s' %rani&ations are bein aske"to pre#ent an" control miscon"uct b$ implementin ethical complianceprorams' Ethics brins man$ re1ar"s to orani&ations that nurture it,

but manain ethics reuires acti#it$ an" attention on se#eral le#elsFcompl$in 1ith the la1, settin ethical stan"ar"s, an" "ealin 1ith thecomple5 "ecisions relate" to tra"e*o0s bet1een the bottom line an"ethical con"uct'

3ih ethical stan"ar"s reuire both orani&ations an" in"i#i"uals toconform to soun" moral principles' air )ra"e has emere" to linkethicall$ min"e" consumers 1ith marketers concerne" 1ith

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"isa"#antae" pro"ucers in "e#elopin nations' Starbucks 1orks totreat co0ee farmers fairl$ in their business relationships b$ pa$inpremium prices, lon*term contracts, a0or"able cre"it, "irectpurchasin, an" in#estin in social pro.ects in co0ee communities'

3o1e#er, eneral special factors must be consi"ere" 1hen appl$inethics to marketin' irst, to sur#i#e, marketers must contribute topro4ts or other orani&ational ob.ecti#es' Secon", marketers mustbalance their "esire for success aainst the nee"s an" "esires ofsociet$' Maintainin this balance often reuires compromises ortra"eo0s' )o a""ress these uniue aspects, societ$ has "e#elope"rulesFboth leal an" implicitFto ui"e marketers in their e0orts toreach their ob.ecti#es in 1a$s that "o not harm in"i#i"uals or societ$as a 1hole'

E5ternal stakehol"ersB interests, concerns, or "ilemmas help

trier ethical issue intensit$' or e5ample, the >ational Do*>ot Call=eistr$ has tremen"ous impact on telemarketersB business practices'%rani&ational culture 8internal stakehol"ers- an" in"i#i"ual moralphilosophies an" #alues inuence the reconition of ethical issues an"marketin ethics "ecisions' >e1 ;eluim ;re1in Compan$, the thir"larest craft beer bre1er in the nite" States, uses onl$ 1in" ener$an" co*eneration as 1ell as a #iorous rec$clin initiati#e' (n a""ition,the compan$ practices open*book manaement' )he "ecisions oroutcomes are e#aluate" b$ both internal an" e5ternal stakehol"ers'

Marketin ethics relates to issues such as honest$ an" fairness,

conicts of interest, "iscrimination, pri#ac$, an" frau"' Go#ernmentreulator$ aencies an" self*reulator$ roups such as the ;etter;usiness ;ureau ha#e "e#elope" formal mechanisms to "eal 1ithethical issues relate" to marketin' )he e"eral )ra"e Commission8)C- enforces consumer protection la1s' +ithin this aenc$, the;ureau of Consumer Protection 1orks to protect consumers aainstunfair, "ecepti#e, or frau"ulent practices' (n a""ition to the )C, otherfe"eral aencies such as the oo" an" Dru A"ministration, theConsumer Pro"uct Safet$ Commission, an" the e"eralCommunications Commission tr$ to assist consumers in a""ressin"ecepti#e, frau"ulent, or "amain con"uct' At the state le#el,

consumer protection statutes e5ist, an" "ecepti#e tra"e practices la1se5ist in most states' (n >e1


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shoul" be an ethical concern for marketers' E5amples of issues inclu"emarketin communications that are false an" mislea"in, materialmisrepresentations in e5ternal an" internal communications, an" theuse of telecommunications to "ecei#e customers' Antitrust, "eceptionin pricin, pro"uct liabilit$, an" marketin channel relationships all

encompass ethical "ecisions'

A Framework for Understanding Ethical DecisionMaking In Marketing

Ethical "ecision makin in marketin parallels ethical "ecisionmakin across all orani&ational "omains' )here is much o#erlapbet1een marketin ethics an" business ethics because the basic

frame1orks that "escribe ethical "ecision makin in an orani&ationinclu"e "ecisions that encompass marketin' (n other 1or"s, 1ithin theconte5t of an orani&ation, there is an ethical component to business"ecisions, rear"less of 1hether it is marketin or some otherfunctional area component' E5ternal stakehol"er interests, concerns or"ilemmas help trier ethical issue intensit$' or e5ample, PE)A hasencourae" KC an" other fast*foo" restaurants to make the ethicaltreatment of animals a priorit$' %rani&ational culture 8internalstakehol"ers- an" in"i#i"ual moral philosophies an" #alues inuencethe reconition of ethical issues an" marketin ethics "ecisions' )he"ecisions or outcomes are e#aluate" b$ both internal an" e5ternalstakehol"ers' +hile it is impossible to "escribe precisel$ ho1 or 1h$ anin"i#i"ual or a 1ork roup ma$ make a speci4c "ecision, 1e canenerali&e about a#erae or t$pical beha#ior patterns 1ithinorani&ations'

irst, as pre#iousl$ "iscusse", marketin can i"entif$ theimportance of stakehol"ers, stakehol"er issues, an" ather informationto respon" to sini4cant in"i#i"uals, roups, an" communities' >e5t, inthe "ecision*makin process, marketers shoul" i"entif$ the importanceor rele#ance of a percei#e" issue i'e', the intensit$ of the issue 8


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an" alternati#es' (n"i#i"ual factors are ob#iousl$ important in thee#aluation an" resolution of ethical issues, an" familiarit$ 1ithprincipal, theoretical frame1orks from the 4el" of moral philosoph$ ishelpful in "eterminin ethical "ecision makin in marketin 8Murph$,ac&niak, ;o1ie, an" Klein, 2IIJ-' Personal moral "e#elopment an"

philosoph$, orani&ational culture, an" co1orkers, "etermine 1h$"i0erent people percei#e issues 1ith #ar$in intensit$'

)he ethical climate of an orani&ation is a sini4cant element oforani&ational culture' +hereas a 4rmBs o#erall culture establishesi"eals that ui"e a 1i"e rane of beha#iors for members of theorani&ation, its ethical climate focuses speci4call$ on issues of rihtan" 1ron' )he ethical climate is the orani&ationBs character orconscience' Co"es of con"uct an" ethics policies, top manaementBsactions on ethical issues, the #alues an" moral "e#elopment an"philosophies of co1orkers, an" the opportunit$ for miscon"uct allcontribute to an orani&ationBs ethical climate' (n fact, the ethicalclimate actuall$ "etermines 1hether or not certain "ilemmas arepercei#e" as ha#in an ethical intensit$ le#el that reuires a "ecision'

%pportunit$ usuall$ relates to emplo$eesB imme"iate .ob conte5tF1here the$ 1ork, 1ith 1hom the$ 1ork, an" the nature of the 1ork')he speci4c 1ork situation inclu"es the moti#ational @carrots an"sticks that superiors can use to inuence emplo$ee beha#ior' Pa$raises, bonuses, an" public reconition are carrots, or positi#ereinforcement, 1hereas repriman"s, pa$ penalties, "emotions, an"e#en 4rins act as sticks, the neati#e reinforcement' or e5ample, asalesperson 1ho is publicl$ reconi&e" an" i#en a lare bonus for

makin a #aluable sale that he or she obtaine" throuh unethicaltactics 1ill probabl$ be moti#ate" to use unethical sales tactics in thefuture, e#en if such beha#ior oes aainst oneBs personal #alues$stem' =esearch has sho1n that there is a eneral ten"enc$ to"iscipline top sales performers more lenientl$ than poor salesperformers for enain in i"entical forms of unethical sellin beha#ior8;elli&&i an" 3ast$, 2II-' >either a compan$ polic$ statin that thebeha#ior in uestion 1as unacceptable nor a repeate" pattern ofunethical beha#ior o0sets the eneral ten"enc$ to fa#or the top salesperformers' A superior sales recor" appears to in"uce more lenientforms of "iscipline "espite manaerial actions that are speci4call$

institute" to pro"uce more eual forms of "iscipline' ;ase" on theirresearch, ;elli&&i an" 3ast$ conclu"e" that an opportunit$ e5ists fortop sales performers to be more unethical than poor sales performers'

(n 2IIN, the American Marketin Association appro#e" a ne1co"e of ethics entitle"L @Ethical >orms an" 7alues for Marketers' )heAMA co"e pro#i"es #alues 1hich are assumptions about appropriatebeha#ior, as 1ell as norms that pro#i"e sueste" beha#iors' )he AMA

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reconi&es the "i#ersit$ of marketin, an" encouraes members toaccess co"es of ethics that a""ress speci4c functional areas such asmarketin research, "irect sellin, "irect marketin, an" a"#ertisin'

A!A $ode of Ethics

!embers of the American !ar"etin& Association are committed toethical professional conduct. *he/ have 7oined to&ether insubscribin& to this $ode of Ethics embracin& the follo'in& topics:

5esponsibilit/ of the !ar"eter

Marketers must accept responsibilit$ for the conseuences of their acti#itiesan" make e#er$ e0ort to ensure that their "ecisions, recommen"ations an"actions function to i"entif$, ser#e an" satisf$ all rele#ant publics: customers,orani&ations an" societ$'

!ar"eters0 Professional $onduct must be &uided b/:

H' )he basic rule of professional ethics: not kno1inl$ to "o harmL2' )he a"herence to all applicable la1s an" reulationsL' )he accurate representation of their e"ucation, trainin an" e5perienceLan"N' )he acti#e support, practice an" promotion of this Co"e of Ethics'

6onest/ and airness

Marketers shall uphol" an" a"#ance the interit$, honor an" "init$ of the

marketin profession b$:

H' ;ein honest in ser#in consumers, clients, emplo$ees, suppliers,"istributors an" the publicL2' >ot kno1inl$ participatin in conict of interest 1ithout prior notice to allparties in#ol#e"L an"' Establishin euitable fee sche"ules inclu"in the pa$ment or receipt ofusual, customar$ an"Oor leal compensation for marketin e5chanes'

5i&hts and Duties of Parties in the !ar"etin& E-chan&e Process

Participants in the marketin e5chane process shoul" be able to e5pect that

H' Pro"ucts an" ser#ices o0ere" are safe an" 4t for their inten"e" usesL2' Communications about o0ere" pro"ucts an" ser#ices are not "ecepti#eL' All parties inten" to "ischare their obliations, 4nancial an" other1ise, inoo" faithL an"N' Appropriate internal metho"s e5ist for euitable a".ustment an"Oor re"ressof rie#ances

concernin purchases'

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(t is un"erstoo" that the abo#e 1oul" inclu"e, but is not limite" to, thefollo1in responsibilities of the marketer:In the area of product development and mana&ement:

"isclosure of all substantial risks associate" 1ith pro"uct or ser#ice usaeL i"enti4cation of an$ pro"uct component substitution that miht materiall$

chane the pro"uct or impact on the bu$erBs purchase "ecisionL i"enti4cation of e5tra cost*a""e" features'

In the area of promotions:

a#oi"ance of false an" mislea"in a"#ertisinL re.ection of hih*pressure manipulations, or mislea"in sales tacticsL a#oi"ance of sales promotions that use "eception or manipulations'

(n the area of distribution:

not manipulatin the a#ailabilit$ of a pro"uct for the purpose of

e5ploitationL not usin coercion in the marketin channelL not e5ertin un"ue inuence o#er the resellerBs choice to han"le a pro"uct'

In the area of pricin&:

not enain in price 45inL not practicin pre"ator$ pricinL "isclosin the full price associate" 1ith an$ purchase'

In the area of mar"etin& research:

prohibitin sellin or fun"raisin un"er the uise of con"uctin researchL maintainin research interit$ b$ a#oi"in misrepresentation an" omissionof pertinent research "ataL treatin outsi"e client an" suppliers fairl$'

r&ani8ational 5elationships

Marketers shoul" be a1are of ho1 their beha#ior ma$ inuence or impact thebeha#ior of others in orani&ational relationships' )he$ shoul" not "eman",encourae or appl$ coercion to obtain unethical beha#ior in theirrelationships 1ith others, such as emplo$ees, suppliers, or customers'

H' Appl$ con4"entialit$ an" anon$mit$ in professional relationships 1ithrear" to pri#ilee" informationL2' Meet their obliations an" responsibilities in contracts an" mutualareements in a timel$ mannerL' A#oi" takin the 1ork of others, in 1hole, or in part, an" representin this1ork as their o1n or "irectl$ bene4tin from it 1ithout compensation orconsent of the oriinator or o1nersL an"N A#oi" manipulation to take a"#antae of situations to ma5imi&e personal

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1elfare in a 1a$ that unfairl$ "epri#es or "amaes the orani&ation of others'

An$ AMA member foun" to be in #iolation of an$ pro#ision of this Co"e ofEthics ma$ ha#e his or her Association membership suspen"e" or re#oke"'

Preamble

)he (nternet, inclu"in online computer communications, has becomeincreasinl$ important to marketersB acti#ities, as the$ pro#i"e e5chanesan" access to markets 1orl"1i"e' )he abilit$ to interact 1ith stakehol"ershas create" ne1 marketin opportunities an" risks that are not currentl$speci4call$ a""resse" in the American Marketin Association Co"e of Ethics'

)he American Marketin Association Co"e of Ethics for (nternet marketinpro#i"es a""itional ui"ance an" "irection for ethical responsibilit$ in this"$namic area of marketin' )he American Marketin Association is committe"to ethical professional con"uct an" has a"opte" these principles for usin the(nternet, inclu"in on*line marketin acti#ities utili&in net1ork computers'

General 5esponsibilities

(nternet marketers must assess the risks an" take responsibilit$ for theconseuences of their acti#ities' (nternet marketersB professional con"uctmust be ui"e" b$:

* Support of professional ethics to a#oi" harm b$ protectin the rihts ofpri#ac$, o1nership an" access'

* A"herence to all applicable la1s an" reulations 1ith no use of (nternetmarketin that 1oul" be illeal, if con"ucte" b$ mail, telephone, fa5 or otherme"ia'

2A1areness of chanes in reulations relate" to (nternet marketin'

* E0ecti#e communication to orani&ational members on risks an" policiesrelate" to (nternet marketin, 1hen appropriate'

* %rani&ational commitment to ethical (nternet practices communicate" toemplo$ees, customers an" rele#ant stakehol"ers'

Privac/

(nformation collecte" from customers shoul" be con4"ential an" use" onl$ fore5presse" purposes' All "ata, especiall$ con4"ential customer "ata, shoul"be safeuar"e" aainst unauthori&e" access' )he e5presse" 1ishes of othersshoul" be respecte" 1ith rear" to the receipt of unsolicite" e*mail

messaes'

'nership

(nformation obtaine" from the (nternet sources shoul" be properl$ authori&e"an" "ocumente"' (nformation o1nership shoul" be safeuar"e" an"respecte"' Marketers shoul" respect the interit$ an" o1nership of computeran" net1ork s$stems'

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Access

Marketers shoul" treat access to accounts, pass1or"s, an" other informationas con4"ential, an" onl$ e5amine or "isclose content 1hen authori&e" b$ aresponsible part$' )he interit$ of othersB information s$stems shoul" be

respecte" 1ith rear" to placement of information, a"#ertisin or messaes'

$3$94I34

Much proress has been ma"e in a"#ancin theor$ an" researchin marketin ethics' (n a""ition, the practice of marketin has beenele#ate" to hiher le#els of ethics from professional co"es of con"uctpro#i"e" b$ the American Marketin Association, Direct SellinAssociation, Direct Marketin Association, Marketin =esearchAssociation, American e"eration of A"#ertisin an" the >ationalA"#ertisin Di#ision of the Council of ;etter ;usiness ;ureaus' (n

a""ition, most corporations ha#e "e#elope" comprehensi#e co"es ofcon"uct that a""ress speci4c ethical risk areas in marketin practice'=ecent reulator$ chanes that reuire boar"s of "irectors to beresponsible for o#ersiht on all ethics issues 1ithin an orani&ationele#ate the importance of marketin ethics' (t is clear that marketinethics is part of orani&ational responsibilit$ an" in"i#i"uals cannotmake in"epen"ent "ecisions about appropriate con"uct' )here isreconition throuh aca"emic research an" reulator$ initiati#es thatcorporate culture pla$s a ke$ role in impro#in marketin ethics'

Ethics in A!ertising"

People in a"#ertisin spen" a lot of their time "ealin 1ith ethicalchoices, an" those choices are almost ne#er black an" 1hite' )he$6resubtle, sha"es*of*ra$ choices, .uic$ enouh for a Philosoph$ ma.or'

>o1 let6s look at a more subtle sha"e of truth in this infamous 7ol#ocommercial' (n a real*life monster truck sho1, the 7ol#o 1as the onl$car left uncrushe" * a reat i"ea for a commercialQ ;ut to make the a",the 4lm compan$ nee"e" to shoot se#eral takes' So the$ reinforce" thebeams insi"e the car to stan" repeate" suashin' +hen this came outin the press, 7ol#o 1as pillorie" an" their a" aenc$ ot 4re",ultimatel$ oin out of business' Di" it ser#e them rihtR %r 1as it abum rapR >o uestion the "emo 1as rie"' ;ut 1hat it sho1e" 1asthe truth: if a monster truck runs o#er $ou once, $ou6re safer in the7ol#o'

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An ethical brainteaser 1e "eal 1ith e#er$ "a$ is: /+hat can $ouleitimatel$ simulate to illustrate the truthR/ ;efore $ou ans1er/nothinQ, ask $ourself if a 3iher Purpose 1oul" be ser#e" if Pampersan" Kote5 commercials sho1e" the real thin instea" of that fake blue1ater'

A"s for reputable companies almost ne#er lie' )he$ ha#e to be able topro#e 1hat the$ sa$ to their o1n corporate counsel, the a" aenc$6sla1$ers, the net1ork6s appro#al committees an" to an$ number ofreulatin bo"ies like the DA an" the )C' +ith at least 4#e "i0erento#ernment aencies lookin o#er our shoul"er, the cost of beincauht cheatin is simpl$ too hih' (n a""ition, the in"i#i"uals insi"e acompan$ 1ant to be able to look at themsel#es in the mirror' Some liketo think of business people as belonin to some other species, butremember that most of them are $ou a fe1 $ears from no1'

So 1e tell the truth ** but not al1a$s the +hole )ruth' ike la1$ers, our.ob is to put our clients in the best liht' +hen $ou o on a .obinter#ie1 or a 4rst "ate, $ou "on6t assume a false i"entit$ * but $ouprobabl$ "on6t make a full "isclosure either' Chances are $ou keep $ourlactose intolerance an" foot o"or issues in the backroun", an" sa#e$our e"eration Stareet uniform for later in the relationship * if there(S a later'

or a compan$ tr$in to sell somethin, an a" is like ettin a .obinter#ie1 1ith millions of people all at once' )he a" 1ants to make aoo" 4rst impression an" reall$, reall$ "oesn6t 1ant to make people

ma"' ;ut "i0erent people react "i0erentl$'

Durin the 2III Super ;o1l, millions of people sa1 the follo1incommercial for Christopher =ee#e 1alkin aain'

Some of us sa1 an upliftin messae of hope' Some sa1 a c$nicalcompan$ manipulatin people6s hope to make a buck' Still others *man$ of them 1ith "isabilities * sa1 an a" that a#e false hope' +hat"i" $ou seeR

(t6s an a5iom in a"#ertisin that 1hen $ou "o somethin bol", it6s likel$

to polari&e $our au"ience' An" bi e#ents like the Super ;o1l or the%l$mpics make a"#ertisers bol"er'

ou can tell the a" aenc$ reall$ en.o$e" creatin the horror mo#iespoof 1ith an %l$mpic runner' )his >ike commercial ran "urin the2III %l$mpics' ;ut this commercial recei#e" o#er 2,III complaints'>ike hear" them an" kille" the spot an" unlike re""ie Kruer, this a"sta$e" "ea"Q

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A lot of people uestion the ethics of sellin consumers thins the$"on6t nee" * 1hich presupposes that 1e shoul"n6t ha#e the thins 1e"on6t nee" but 1ant an$1a$' +e "on6t nee" IT of the stu0 in ourapartments' +e "on6t nee" art1ork, amon other thins' >ean"erthals"i"n6t nee" ca#e paintins, but the$ sure brihten up a rotto' +h$ "i"

so man$ of us brin bottle" 1ater * that 1e pai" for * into this meetinroom to"a$, 1hen carr$in a canteen of tap 1ater is so much moreUrationalR

A"#ertisin, like human beins, li#es 1here =eason meets Desire' earsao, )he Coca*Cola Compan$ in#ente" a better pro"uct' >o consumerpro"uct ha" e#er been so thorouhl$ teste" 1ith so man$ consumers')his ne1 Coke 1as pro#abl$ much better' ;ut consumers not onl$"i"n6t bu$ it, the$ "emonstrate" aainst it' ;ecause a lot of 1hat the$lo#e" about /real/ Coke 1asn6t insi"e the bottle' (t 1as the i"ea of Cokean" their e5periences 1ith it an" ho1 those e5periences 1ere

connecte" to so much of 1hat 1e imaine life in America shoul" belike' A"#ertisin isn6t .ust about the thins 1e bu$' (t6s about ho1 1efeel about thins, inclu"in oursel#es' )hat6s 1hat makes it interestin'

$ause2related mar"etin&:

Speakin of feelins, VIT of Americans sa$ the$ feel better aboutcompanies that are aline" 1ith social issues' )1o thir"s of us sa$ 1e6"be incline" to s1itch to a bran" that 1e i"entif$ 1ith a oo" cause' (t6s1h$ American E5press put on the )ribeca ilm esti#al in lo1er

Manhattan to help brin people back to the area after September HHth'+al*Mart focuses on communit$ e0orts of their associates an" stores'General Mills6 /Spoonfuls of 3ope/ campain features ance Armstronpromotin cancer research'


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tobacco isn6t the onl$ leal * an" potentiall$ lethal * pro"uct that posesethical, not to mention public polic$ uestions for us'

A" aencies an" in"i#i"ual a"#ertisin people make their o1n"ecisions about cateories like tobacco an" uns' Man$ sa$, />o,

thanks/ to 1orkin on certain businesses' ;ut 1oul" $ou turn "o1n theKraft Macaroni an" Cheese assinment because another "i#ision of thesame corporation makes MarlborosR )hat6s a touher uestion'

Alcohol:)here are hun"re"s of beer commercials on the air, but not one ofthem sho1s somebo"$ actuall$ "rinkin the beer' Does that makethem more ethicalR An" althouh there6s the same amount of the samechemical in a can of ;u" an" a shot of


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1hich also monitors ki"6s prorammin, reuires that a"ults be sho1nsuper#isin chil"ren 1hen pro"ucts or acti#ities coul" be risk$' So6%real chane" the commercial to mo"el oo" parental beha#ior'Score one for Societ$' Another commercial for Aim toothpaste sho1e"a chil" 1ho 1ent to the bathroom in a museum to brush her teeth'

Goo" h$iene or not, it ha" to be taken o0 the air 1hen teacherscomplaine" that the$6" ne#er, e#er, let a chil" lea#e the roupunatten"e"'

A"#ertisers spen" most of their 1akin hours tr$in to anticipate 1hattheir au"iences 1ill 1ant an" ho1 the$6ll react' +e tr$ our best, butsometimes 1e miss'

Pharmaceutical advertisin& :(nformation is ethicall$ neutral' (n an aca"emic settin like this, 1e1elcome more information because the marketplace of i"eas enables

in"i#i"uals to form their o1n .u"ments * 1hich brins us toa"#ertisin about prescription "rus' >ot lon ao, onl$ a "octor coul"tell $ou about a ne1 me"icine' ou probabl$ ne#er hear" of it before$ou 1alke" inL $ou "i"n6t kno1 if it 1as the onl$ one in the 1orl" orone of "o&ens that "i" prett$ much the same thin' >o1 a"#ertisersspen" millions of "ollars tellin $ou about their me"icines' A"#ertisinputs more information in people6s han"s' Stu"ies sho1 that "ru a"sraise a1areness of some con"itions so more people seek treatment'An" the$ kno1 more about their options before seein the "octor')hat6s oo", rihtR

;ut of course the "ru companies "on6t a"#ertise their cheapestpro"ucts' )he$ promote the bi mone$makers' )here6s moreinformation out there, but it comes 1ith a hea#$ "ose of Point*of*7ie1'Sometimes there are t1o points of #ie1 in the same commercial' )heDA reuires that, if $ou promote the bene4ts of $our me"icine, $oumust also re#eal an$ sini4cant risks or si"e e0ects' So 1e ha#e themto thank for the no1 leen"ar$ "isclaimer for a 1eiht*loss "ru' )heme"icine 1orke" miracles, but the compan$ 1as also oblie" tomention its unpleasant si"e e0ects, 1ith the result that the "ruturne" into a national .okeQ Does more information ele#ate the national"ialoueR

Product placement:

+hat are the ethics of a"#ertisin that "oesn6t look like a"#ertisinR (na mo#ie chase scene, the hero an" the ba" u$ are oin to nee"some kin" of car to "ri#e' (n the theatre 1e ha#e no 1a$ of kno1in1hether the "irector chose those cars because the$ ful4lle" his artistic

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#ision * or because the car manufacturer ma"e a "eal 1ith thepro"ucer' )he car people et e5citin e5posure for their bran" an" shesa#es a nice piece of chane on her pro"uction bu"et' Au"iences likerealism in mo#ies' Ma"e*up bran"s break the spell because the$6reob#ious fakes' ;ut the "i0erence bet1een somethin that6s .ust a prop

an" somethin that6s a pro"uct promotion is ettin murkier all thetime, on )7 sho1s as 1ell as mo#ies'

)his kin" of /pro"uct placement/ happens in real life, too' (f $ou o outto a club toniht, $ou miht see some particularl$ oo"*lookin $ounpeople usin a ne1 kin" of cell phone' (t lets them shoot pictures ofpeople to their frien"s across the room: /3ere6s a cute u$ * 1ant tocome an" meet himR/ un stu0 like that' (f $ou6re curious, ma$bethe$6#e taken $our picture an" the$6ll be happ$ to sho1 $ou the phonean" let $ou tr$ it' )he phone is #er$ cool' An" the people are 1hata"#ertisers call /aspirational/ because the$6re 1a$ cooler than $ou are'

)he$6re people $ou 1ant to be' )he$6re also actors an" this is a i forthem' )heir .ob is creatin the impression that usin this phone is )he>e5t )ren"' (f $ou ask them "irectl$ if the$ are actors, the$ 1on6t lie';ut if $ou "on6t ask, the$ 1on6t tell' )his is the re#erse of the 7ol#ostor$' 7ol#o6s "emonstration 1as rie", no uestion, but 1hat #ie1erssa1 on )7 1as the truth' +ith this cell phone, the "emonstration is theabsolute truth, but the scene in the club is pure theater'

8>ote: )his ne1 /uerrilla/ marketin campain for Son$ Ericsson hasrecei#e" a reat "eal of neati#e publicit$ alrea"$ for bein "ecepti#ein its approach'-

4ubliminal advertisin&:)here6s one more thin ( kno1 $ou 1ant me to talk about' (f $oubelie#e subliminal a"#ertisin e5ists, $ou "on6t an$ more because (embe""e" a con#incin subliminal "enial in this talk' (n case $oumisse" it, subliminal a"#ertisin is one of those /urban leen"s'/ )r$this e5periment' )ake a photoraph of a lass of ice 1ater or thebe#erae of $our choice an" make a fake a" out of it' )hen in#itepeople in $our Ps$ch "epartment to 4n" the subliminal messaes in$our a"' )he$ 1on6t "isappoint $ou'

(f a bunch of stu"ents can create subliminal messaes, imaine 1hatthe pros on Ma"ison A#enue can "o'

$3$94I3

)his 1oul"n6t be a talk about ethics in a"#ertisin 1ithout a 1or" fromour sponsor an" here it comes'

22


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VIT of American companies ha#e a 1ritten Co"e of Ethics' An"probabl$ HIIT of $ou "o too, if $ou a#e it some thouht an" 1rote it"o1n' Ethics happen, or "on6t, in our relationships 1ith others'A"#ertisers are in the business of communicatin 1ith thousan"s, e#enmillions, of /others/ all the time' )hat i#es us thousan"s or millions of

chances to practice 1hat 1e belie#e e#er$ "a$' An" tr$ to et it riht'

Ethical #ers#ecti!e in Em#lo$ment incl%ing in the nternational 'abo%r

rganiation Stanar"

)he "iscussions on ethical issues that ma$ arise in the emplo$mentrelationship, inclu"in the ethics of "iscrimination, an" emplo$eesBrihts an" "uties are commonl$ seen in the business ethics te5ts +hilesome arue that there are certain inalienable rihts of 1orkplace suchas a riht to 1ork, a riht to pri#ac$, a riht to be pai" in accor"ance1ith comparable 1orth, a riht not to be the #ictim of "iscrimination,others claim that these rihts are neotiable' Ethical "iscourse in 3=Moften re"uce" the ethical beha#ior of 4rms as if the$ 1ere charit$ fromthe 4rms rather than rihts of emplo$ees' E5cept in the occupations,1here market con"itions o#er1helminl$ fa#our emplo$ees,emplo$ees are treate" "isposable an" e5pen"able an" thus the$ are"efenselessl$ cornere" to e5treme #ulnerabilit$' )he e5pen"abilit$ ofemplo$ees, ho1e#er, is .usti4e" in the te5ts of business moralit$B onthe roun" the ethical position aainst such e5pen"abilit$ shoul" besacri4ce" for reater merit in a free market s$stem' urther, it isarue" since because both emplo$ees an" emplo$ers "o in factpossess economic po1erB in the free market, it 1oul" be unethical ifo#ernments or labour unions impose emplo$ment terms on the laborrelationshipB )here are "iscussions of ethics in emplo$mentmanaement in"i#i"ual practices, issues like policies an" practices ofhuman resource manaement, the roles of human resource 83=-practitioners, the "ecline of tra"e unionism, an" issues of lobali&inthe labour etc', in the recent 3=M literature, thouh the$ "o notoccup$ the central stae in the 3= aca"emics' (t is obser#e" that 1iththe "ecline of labour unions 1orl" o#er, emplo$ees are potentiall$

23


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more #ulnerable to opportunistic an" unethical beha#ior' (t is critici&e"that 3=M has become a strateic arm of sharehol"er pro4teerinthrouh makin 1orkers into 1illin sla#esB' A 1ell cite" article pointsout that there are softB an" a har"B #ersions of 3=Ms, 1here in thesoft*approach rear" emplo$ees as a source of creati#e ener$ an"

participants in 1orkplace "ecision makin an" har" #ersion is moree5plicitl$ focuse" on orani&ational rationalit$, control, an" pro4tabilit$'(n response, it is arue" that the stereot$pes of har" an" soft 3=M areboth inimical to ethics because the$ instrumentall$ atten" to the pro4tmoti#e 1ithout i#in enouh consi"eration to other morall$ rele#antconcerns such as social .ustice an" human 1ellbein' 3o1e#er, thereare stu"ies in"icatin, lon term sustainable success of orani&ationscan be ensure" onl$ 1ith humanel$ treate" satis4e" 1orkforce'

Market, ob#iousl$, is not inherentl$ ethical institution that coul" be le"b$ the m$thical in#isible han"B aloneL neither, it can be allu"e" that

market is inherentl$ unethical' Also, ethics is not somethin that coul"be achie#e" throuh establishment of proce"ures, "ra1in co"es ofethics, or enactment of la1 or an$ other heteronomous means, thouhtheir necessit$ coul" remain unuestione"'3o1e#er, thouh marketnee" not be the cause of moral or ethical ha&ar"s it ma$ ser#e anoccasion for such ha&ar"s' )he moral ha&ar"s of 3=M 1oul" be onincrease so much as human relations an" the resources embe""e"1ithin humans are treate" merel$ as commo"ities'

Discriminationissues inclu"e "iscrimination on the bases of ae8aeism-, en"er, race, reliion, "isabilities, 1eiht an"

attracti#eness' See also: a9rmati#e action, se5ual harassment' (ssues arisin from the tra"itional #ie1 of relationships bet1een

emplo$ers an" emplo$ees, also kno1n as At*1ill emplo$ment' (ssues surroun"in the representation of emplo$ees an" the

"emocrati&ation of the 1orkplace: union bustin, strike breakin' (ssues a0ectin the pri#ac$ of the emplo$ee: 1orkplace

sur#eillance, "ru testin' See also: pri#ac$' (ssues a0ectin the pri#ac$ of the employer: 1histle*blo1in' (ssues relatin to the fairness of the emplo$ment contract an"

the balance of po1er bet1een emplo$er an" emplo$ee: sla#er$,in"enture" ser#itu"e, emplo$ment la1'

%ccupational safet$ an" health'

All of abo#e are relate" to the hirin an" 4rin of emplo$ees' Anemplo$ee or future emplo$ee can not be hire" or 4re" base" on race,ae, en"er, reliion, or an$ other "iscriminator$ act'

International 9abour r&ani8ation %I9)

24
http://en.wikipedia.org/wiki/Discriminationhttp://en.wikipedia.org/wiki/Ageismhttp://en.wikipedia.org/wiki/Disabilitieshttp://en.wikipedia.org/wiki/Affirmative_actionhttp://en.wikipedia.org/wiki/Sexual_harassmenthttp://en.wikipedia.org/wiki/At-will_employmenthttp://en.wikipedia.org/wiki/Union_bustinghttp://en.wikipedia.org/wiki/Strike_breakinghttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Workplace_surveillancehttp://en.wikipedia.org/wiki/Workplace_surveillancehttp://en.wikipedia.org/wiki/Drug_testinghttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Whistle-blowinghttp://en.wikipedia.org/wiki/Slaveryhttp://en.wikipedia.org/wiki/Indentured_servitudehttp://en.wikipedia.org/wiki/Employment_lawhttp://en.wikipedia.org/wiki/Occupational_safety_and_healthhttp://en.wikipedia.org/wiki/Discriminationhttp://en.wikipedia.org/wiki/Ageismhttp://en.wikipedia.org/wiki/Disabilitieshttp://en.wikipedia.org/wiki/Affirmative_actionhttp://en.wikipedia.org/wiki/Sexual_harassmenthttp://en.wikipedia.org/wiki/At-will_employmenthttp://en.wikipedia.org/wiki/Union_bustinghttp://en.wikipedia.org/wiki/Strike_breakinghttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Workplace_surveillancehttp://en.wikipedia.org/wiki/Workplace_surveillancehttp://en.wikipedia.org/wiki/Drug_testinghttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Whistle-blowinghttp://en.wikipedia.org/wiki/Slaveryhttp://en.wikipedia.org/wiki/Indentured_servitudehttp://en.wikipedia.org/wiki/Employment_lawhttp://en.wikipedia.org/wiki/Occupational_safety_and_health


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International labour standards are con#entions, treaties an"recommen"ations "esine" to eliminate un.ust an" inhumane labourpractices' )he primar$ international aenc$ chare" 1ith "e#elopinsuch stan"ar"s is the (nternational abour %rani&ation 8(%-'Establishe" in HH, the (% a"#ocates international stan"ar"s as

essential for the era"ication of labour con"itions in#ol#in /in.ustice,har"ship an" pri#ation/' Accor"in to the (%, international labourstan"ar"s contribute to the possibilit$ of lastin peace, help to mitiatepotentiall$ a"#erse e0ects of international market competition an"help the proress of international "e#elopment'

)he most basic labor rihts ha#e been co"i4e" b$ the (% in the HVDeclaration of un"amental =ihts at +ork after some "e#elope"countries trie" to inclu"e them at the +)%Bs Sinapore Meetin inHW' )he "eclaration outlines 4#e @core labor stan"ar"s 8CS- that alllabor markets shoul" stri#e to meet: free"om of association, the riht

to collecti#e barainin, abolition of force" or compulsor$ labor,elimination of chil" labor, an" free"om from "iscrimination'

abor stan"ar"s an" their implementation "i" not merel$ arise topromote economic ro1th' )he$ also emere" as a ne1 an" importantarea of concern for sociall$ responsible in#estors, especiall$ in the@problematic foot1ear, apparel, an" to$ in"ustries' or most in#estorsin#ol#e" 1ith this issue, the fun"amental matter of concern is theprotection of human rihts in the 1orkplace' )his is 1h$ there is astron mo#ement to consi"er the core labor rihts "e4ne" in the HV(% Declaration as @uni#ersal human rihts' )he (% Declaration on

un"amental Principles an" =ihts at +ork "eclares inter alia that allmember states, 1hether the$ ha#e rati4e" the rele#ant con#entions ornot, ha#e an obliation "ue to their membership in the (%, to respect,to promote, an" to reali&e in oo" faith an" accor"ance 1ith theConstitution, the fun"amental rihts 1hich are the sub.ect of thosecon#entions'

Ethics an T" E-commerce* +ri!ac$ ,oes"

Information ethics is the 4el" that in#estiates the ethical issuesarisin from the "e#elopment an" application of informationtechnoloies' (t pro#i"es a critical frame1ork for consi"erin moralissues concernin informational pri#ac$, moral aenc$ 8e'' 1hetherarti4cial aents ma$ be moral-, ne1 en#ironmental issues 8especiall$ho1 aents shoul" one beha#e in the infosphere-, problems arisinfrom the life*c$cle 8creation, collection, recor"in, "istribution,processin, etc'- of information 8especiall$ o1nership an" cop$riht,

25
http://en.wikipedia.org/wiki/Convention_(norm)http://en.wikipedia.org/wiki/Treatyhttp://en.wikipedia.org/wiki/International_Labour_Organizationhttp://en.wikipedia.org/wiki/Peacehttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Competitionhttp://en.wikipedia.org/wiki/International_developmenthttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Infospherehttp://en.wikipedia.org/wiki/Convention_(norm)http://en.wikipedia.org/wiki/Treatyhttp://en.wikipedia.org/wiki/International_Labour_Organizationhttp://en.wikipedia.org/wiki/Peacehttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Competitionhttp://en.wikipedia.org/wiki/International_developmenthttp://en.wikipedia.org/wiki/Privacyhttp://en.wikipedia.org/wiki/Infosphere


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"iital "i#i"e-' (nformation Ethics is relate" to the 4el"s of computerethicsan" the philosoph$ of information'

Dilemmas rear"in the life of information are becomin increasinl$important in a societ$ that is "e4ne" as /the information societ$/'

(nformation transmission an" literac$ are essential concerns inestablishin an ethical foun"ation that promotes fair, euitable, an"responsible practices' (nformation ethics broa"l$ e5amines issuesrelate" to o1nership, access, pri#ac$, securit$, an" communit$'

(nformation technolo$ a0ects fun"amental rihts in#ol#in cop$rihtprotection, intellectual free"om, accountabilit$, an" securit$'

Professional co"es o0er a basis for makin ethical "ecisions an"appl$in ethical solutions to situations in#ol#in information pro#isionan" use 1hich reect an orani&ationBs commitment to responsible

information ser#ice' E#ol#in information formats an" nee"s reuirecontinual reconsi"eration of ethical principles an" ho1 these co"es areapplie"' Consi"erations rear"in information ethics inuence@personal "ecisions, professional practice, an" public polic$')herefore, ethical anal$sis must pro#i"e a frame1ork to take intoconsi"eration @man$, "i#erse "omains 8ibi"'- rear"in ho1information is "istribute"'

Ethics for e2$ommerce

)hereBs nothin like bu$in somethin from the local merchants in to1n'ou kno1 them, $ou trust them, an" the$ kno1 $ou an" $ou s1ap car"s"urin the holi"a$s' )hese are relationships built on trust'

>ot so in the on*line 1orl" of commerce' ouBre a home pae' ourbu$ers are numbers an" e*mail a""resses' ou "onBt kno1 themL the$"onBt kno1 $ou' 3o1e#er, $ou can an" shoul" still con"uct businesslike a local merchant'

$ustomers 'ill come bac", &eneratin& repeat sales.

4atised bu/ers 'ill tell their friends. %6o' do /ou thin"

Ama8on became so bi&;)


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Post $ome2ns0 Alread/

9aptops: nl/ ?@.@@ =hile the/ last

ou see this kin" of come*onB all the time' So, $ou click to see 1hat a' laptop ets $ou an" "isco#er the site sells abacuses' %r, the$onl$ ha" one HI*$ear ol" laptop for ', 1hich "i"nBt last lon 81hilethe$ last-' (tBs the ol" bait*an"*s1itch, 1ith a cheap laptop the bait'%nce on the site, $ouBre reroute" to a pae of much hiher price"laptops' ouB#e been suckere" F aain' >o one likes to be suckere"'(tBs a 1aste of time an" an insult to the in"i#i"ualBs intellience'

Protect


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tra"in is "ri#in a 'S'Oin"ustr$ push for @stan"ar"i&ation ofmanaement techniues

E#en as the conseuences of lobal 1armin are becominclearer * climate chane impacts alrea"$ reconi&e" in the Arctic,1ith measurable "isruptions to Aboriinal lifest$les, 1il"life,

e5istin communities, an" in"ustrial "e#elopment Fthe e5actcauses are still "ebate", an" in turn une#en lobal approachesha#e create" uniue business challenes

)here is a "ire nee" to mitiate the 1orl"1i"e loss of 4sheriesan" un"er1ater habitats "ue to o#ere5ploitation an" collateral"amae

Acti#ities in the >or1eian sector of the >orth Sea "emonstratethe technical an" cost bene4ts of oil compan$ collaboration ina""ressin en#ironmental research, an" "e#elopin anen#ironmental manaement strate$

En#ironmental (ssues in (n"ia:

Across (n"ia, concern is mountin o#er an e#er ro1in list ofen#ironmental problems'

More people means increase" pressure on natural resources 8from1ater to forests-, 1hile an econom$ in hih*ear is lea#in a trail ofpollution thatBs a0ectin not onl$ (n"ia, but the rest of the 1orl" too

Deforestation

(n"ia is 1itnessin a risin "eman" for forest*base" pro"ucts' )his is

causin "eforestation an" encroachment into forest protecte" areas,

1hich lea"s to a se#ere loss of natural resources'

(t is estimate" that total in"ustrial roun"1oo" consumption in (n"ia

coul" e5cee" XI million mper $ear b$ the en" of the "eca"e 8JI,III

lare shippin containers-, 1hile "omestic suppl$ 1oul" fall short of

this 4ure b$ an estimate" HN million m'H

As the nation 1ill ha#e to "epen" hea#il$ on imports to meet this

ro1in "eman", there is fear that this coul" result in loss of hih

conser#ation #alue forests an" bio"i#ersit$ else1here'

A thirst for palm oil(n"ia is a bi e"ible oil consumer' (n fact, it is one of the three larest

30
http://wwf.panda.org/who_we_are/wwf_offices/india/india_environmental_problems/#1%231http://wwf.panda.org/who_we_are/wwf_offices/india/india_environmental_problems/#1%231


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importers of palm oil in the 1orl", alon 1ith E an" China' %f theseimports, JT come from (n"onesia an" Mala$sia, causin neati#esocial an" en#ironmental conseuences in these e5portin countries'

Con#ersion of natural forests for culti#atin oil palm is a ma.or threat

to bio"i#ersit$ an" li#elihoo"s in the tropics' Most of the lo1lan"rainforest on the (n"onesian islan" of Sumatra has alrea"$ been lost,larel$ because of the clearance for oil palm an" pulp 1oo" plantations

+ith the lobal "eman" for palm oil e5pecte" to increase from 2Vmillion tonnes at present to about JI million tonnes in 2II2, there are#er$ serious concerns that this 1ill happen at the e5pense ofbioloicall$ an" economicall$ important forests'

Pollution

(ncreasin competition for 1ater amon #arious sectors, inclu"inariculture, in"ustr$, "omestic, "rinkin, ener$ eneration an" others,is causin this precious natural resource to "r$ up' (ncreasin pollutionis also lea"in to the "estruction of the habitat of 1il"life that li#es in1ater1a$s'

)he aca"emic 4el" of en#ironmental ethics re1 up in response to the1ork of scientists such as =achel Carsonan" e#ents such as the 4rstEarth Da$in HXI, 1hen en#ironmentalists starte" urin philosophersto consi"er the philosophical aspects of en#ironmental problems'

)he 4rst international aca"emic .ournals in this 4el" emere" from>orth America in the late HXIs an" earl$ HVIs the S*base".ournal Environmental Ethicsin HX an" the Cana"ian base" .ournalThe Trumpeter: Journal of Ecosophy in HV' )he 4rst ;ritish base".ournal of this kin", Environmental Values, 1as launche" in H2'

Ecolo&ic e-tension

Alan Marshall6s cateor$ of ecoloic e5tension places emphasis not onhuman rihts but on the reconition of the fun"amental

inter"epen"ence of all bioloical 8an" some abioloical- entities an"their essential "i#ersit$' +here as ibertarian E5tension can be thouhtof as o1in from a political reection of the natural 1orl", EcoloicE5tension is best thouht of as a scienti4c reection of the natural1orl"' Ecoloical E5tension is rouhl$ the same classi4cation of SmithBseco*holism, an" it arues for the intrinsic #alue inherent in collecti#eecoloical entities like ecos$stems or the lobal en#ironment as a1hole entit$' 3olmes =olston, amon others, has taken this approach'

31
http://wwf.panda.org/who_we_are/wwf_offices/india/india_environmental_problems/#2%232http://en.wikipedia.org/wiki/Rachel_Carsonhttp://en.wikipedia.org/wiki/Earth_Dayhttp://en.wikipedia.org/wiki/Environmental_Ethics_(journal)http://en.wikipedia.org/w/index.php?title=The_Trumpeter:_Journal_of_Ecosophy&action=edit&redlink=1http://en.wikipedia.org/wiki/Environmental_Valueshttp://en.wikipedia.org/wiki/Holmes_Rolstonhttp://wwf.panda.org/who_we_are/wwf_offices/india/india_environmental_problems/#2%232http://en.wikipedia.org/wiki/Rachel_Carsonhttp://en.wikipedia.org/wiki/Earth_Dayhttp://en.wikipedia.org/wiki/Environmental_Ethics_(journal)http://en.wikipedia.org/w/index.php?title=The_Trumpeter:_Journal_of_Ecosophy&action=edit&redlink=1http://en.wikipedia.org/wiki/Environmental_Valueshttp://en.wikipedia.org/wiki/Holmes_Rolston


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)his cateor$ inclu"es

Documents

Unit 3 - Indian Perspective & Global Issues