Its Importance , Functions , examples, conclusion, pictures, case study

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?
 Business Ethics IS the art and discipline of applying ethical principles of solve complex moral
dilemmas
 Business ethics prove that business has been ethical and can continue to do so while earning
profits
 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
 Gaining trust
 Customer loyalty and satisfaction
 Preventing harm to society
 Protecting business from abuse by unethical employees
 Sustaining the business
 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
 Distinguishing the roles of board and management
 Composition of board
 Board committees
 Directors and executive remuneration
 Protection of shareholder rights and expectations
 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
 Bribery
 Coercion(forcing people to do things)
 Insider Trading (Misuse of official position)
 Unfair Discrimination
 Political Donations And Gifts
 False Income Statements

9. Characteristics of Ethical Organization
 Based on principle of fairness
 Stakeholders are treated equally
 Benefits of stakeholders in given precedence over own interest
 What is to be done, how to done Is clearly Stated
 No bureaucracy
 Compliance with applicable laws
E.g. Rules made by SEBI, Federal Government, etc
 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.