Importance of Ethics in Business Management Practice

To put in simple words, ethics is the principle of moral values which helps you to take actions that are considered as the right thing to do. However, doing what is ‘right’ is not that straightforward. Since everyone has different backgrounds and cultures, we therefore possess different conceptions and perceptions. This causes complication in the process of understanding the meaning of ethics as each person’s point of view on what is ethical varies significantly. Ethics is not a set of rules that should be followed inevitably but is a guideline to lead you to behave with integrity. It includes values such as equity, responsibility, honesty, and fairness. The importance of ethics can be seen from the fact that many of what were considered as ethical behaviors in the past has developed into law today. For example, stealing is known as an unethical act and is against the law as it Continue reading

Securities Scams In India

Securities Scam 1992 In April 1992, press reports indicated that there was a shortfall in the Government Securities held by the State Bank of India. Investigations uncovered the tip of an iceberg, later called the securities scam, involving misappropriation of funds to the tune of over Rs. 3500 Crores. The scam engulfed top executives of large nationalized banks, foreign banks and financial institutions, brokers, bureaucrats and politicians: The functioning of the money market and the stock market was thrown in disarray. The tainted shares were worthless as they could not be sold. This created a panic among investors and brokers and led to a prolonged closure of the stock exchanges along with a precipitous drop in the price of shares. Soon after the discovery of the scam, the stock prices dropped by over 40%, wiping out market value to the tune of Rs. 100,000 crores. The normal settlement process in Continue reading

Arguments For and Against Social Responsibility of Business

Business entities should pay attention to the welfare of workers, consumers needs and their security, the well-being and privileges of creditors, government regulations and the obligations of the enterprise towards the social order as a whole. Nowadays, numerous organizations are concerned about social activities and are playing an active role in the same. While the outlook of the society have transformed, companies have become further conscious of their social responsibilities. A cautious analysis of opinions for and against the participation of organizations in social welfare activities is essential to conclude whether an organization should employ social programs. Arguments Favoring Social Responsibilities of Business The needs of present day customers have changed, ensuing in a change in their outlook of businesses. As businesses oblige their profits to humanity, they have to thus counter to the needs of the society. Society and business gain mutual advantage when there is a symbiotic association Continue reading

Case Study: The Microsoft Antitrust Case

In fall 1998, the U.S. Justice Department sued Microsoft, the world’s largest software company, accusing it of illegally using its Windows operating system near monopoly to overwhelm rivals and hurt consumers. Specifically, the government accused Microsoft of merging its Web browser into its Windows operating system in order to crush Netscape Communication Corporation, its chief competitor in the browser business. By bundling the browser with Windows and using exclusionary contracts to prevent personal computer makers form hiding or removing the Microsoft browser, Microsoft prevented consumers from using rival browsers (particularly Netscape’s) and also discouraged systems other than Windows. Furthermore, the government accused Microsoft of conducting a campaign to curtail other potential threats form Intel, Sun Micro Systems, Apple Computer, and IBM that enabled Microsoft to extend its power to other areas, such as computer servers and Internet protocols, thus causing substantial and far-reaching harm to consumers by stifling competition and Continue reading

Evolution of Workplace Spirituality Concept

Spirituality at work is the recognition that employees have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community. Thus spirituality at work has three components: the inner life, meaningful work, and community. Conditions for community include items that assess the extent to which necessary elements or enabling conditions for community are present. Thus, a community is a place in which people can experience personal growth, be valued for themselves as individuals, and have a sense of working together. Meaning at work includes items that capture a sense of what is important, energizing, and joyful about work. That is, it taps into work-related dimensions of human experience that are neither physical nor intellectual, but spiritual. Inner life is composed of items that capture an individual’s hopefulness, awareness of personal values, and concern for spirituality. Five societal trends have formed the basis Continue reading

Case Study on Business Ethics: Al Dunlap at Sunbeam

Early Days of Sunbeam Sunbeam was formed in 1897 as the Chicago Flexible Shaft Company. The company originally manufactured and sold agricultural tools. By 1910 the company introduced the iron as its first electrical home appliance. Later other appliances such as mixers, toasters and coffeemakers were introduced. Sunbeam came to be known as a recognized designer, manufacturer and marketer of innovative consumer products aimed at improving lifestyle. In 1946, the company changed its name to Sunbeam Corporation. In 1960, Sunbeam acquired Oster which allowed Sunbeam to expand into other home products such as hair dryers and health and beauty appliances. The company later added electric blankets, mattresses, humidifiers, vaporizers and thermostats, among other innovations. Sunbeam soon became the leading manufacturer of electric appliances. The company survived the 1980’s as the US economy suffered, and many companies underwent acquisitions, restructuring, and closings. In 1981, Allegheny International acquired Sunbeam, and the company Continue reading