Q.1) difference between ethics and ethos ?

and need , significance ,characteristics of

ethics and ethos in business ? and how profit and ethics can go together ?

Difference Between Ethics and Ethos

Ethics refers to a set of moral principles or values that govern the behaviour of individuals
or groups. It is concerned with what is good for individuals and society. - Focus: Ethics is
more about rules and guidelines that dictate what is right and wrong. - Scope: Ethics
applies universally, though it may vary slightly with different cultures and societies. -
Application: Ethics can be applied in various fields like medical ethics, business ethics,
etc.

Ethos is the characteristic spirit, moral values, or guiding beliefs of a person, community,
or institution. It reflects the fundamental values that shape actions and attitudes.- Focus:
Ethos is more about the character and credibility that arise from adhering to a set of values
and beliefs. - Scope : Ethos is more specific and subjective, often associated with a
particular group, organization, or culture. - Application: Ethos is evident in organizational
cultures, branding, and personal reputations.

Need and Significance of Ethics and Ethos in Business

Ethics - Need –

Ensures compliance with laws and regulations. - Builds trust with stakeholders, including
customers, employees, and investors. - Prevents unethical practices that could lead to
scandals and financial losses.

- Significance - Enhances the reputation and brand value of a business. - Leads to

sustainable business practices. - Encourages a fair and just working environment.-
Mitigates risks associated with unethical behaviour.

Characteristics- Universality: Ethical principles are generally applicable across different

situations. - Accountability: Ethical business practices demand accountability from
individuals and organizations. - Transparency: Ethics in business promotes transparency
and openness in operations and communication. - Fairness: Ethical behaviour ensures
fairness in dealings with all stakeholders.

Ethos - Need -

Creates a strong organizational culture. - Aligns the behaviour of employees with the core
values of the company. - Helps in distinguishing the company from its competitors.
- Significance - Fosters a sense of identity and belonging among employees. - Builds a
positive public image and brand loyalty. - Drives consistency in decision-making and
business practices.

Characteristics - Culture-Specific: Ethos reflects the unique culture of an organization or

community. - Inspirational: Acts as a source of motivation and inspiration for employees
and stakeholders. - Long-Term Orientation: Ethos is deeply ingrained and persists over
time. - Reflective of Core Values: Ethos is a manifestation of the core values and beliefs of
an organization.

How Profit and Ethics Can Go Together

1.Corporate Social Responsibility (CSR) - Companies that engage in CSR activities

demonstrate that they care about more than just profits. This can enhance their reputation
and attract customers who value ethical behaviour, ultimately leading to increased
profitability.

2.Long-Term Sustainability - Ethical practices ensure long-term sustainability by avoiding

legal issues, maintaining customer trust, and fostering loyalty. Businesses that operate
ethically tend to survive and thrive over the long term.

3.Employee Satisfaction and Productivity - Ethical businesses often have more satisfied
and motivated employees, leading to higher productivity and lower turnover rates. This can
result in better overall performance and profitability.

4.Customer Trust and Loyalty - Ethical behaviour builds trust with customers, leading to
increased loyalty and repeat business. Customers are more likely to support companies
they perceive as ethical.

5.Innovation and Creativity - An ethical environment encourages openness and trust,

which can lead to greater innovation and creativity within the company. This can result in
new products, services, and business models that drive profit.

6.Risk Management - Ethical practices help in identifying and managing risks effectively,
reducing the likelihood of crises that can damage a company’s reputation and financial
standing.

By integrating ethics into their business models, companies can achieve a balance
between profitability and social responsibility, creating value for both shareholders and
society at large.
Q.2) define values ? its characteristics , importance , need of values ? types of values
and relevance in an organisation

Values are the fundamental beliefs and principles that guide behaviour and decision-
making. They represent what is important to individuals, groups, or organizations and serve
as a foundation for ethical conduct and attitudes.

Characteristics of Values 1.Enduring: Values are stable and consistent over time.
2.Guiding: They provide direction and guidelines for behaviour and decision-making.
3.Hierarchical: Values often have a rank or order of importance. 4.Cultural: They are
influenced by cultural, social, and personal contexts. 5.Motivational: Values motivate
individuals to act in certain ways to achieve goals that reflect their beliefs.

Importance - Behavioural Influence: Values influence behaviour and attitudes, leading to

consistency in actions. - Decision Making: They provide a framework for making decisions,
especially in complex situations. - Social Cohesion: Shared values promote unity and
cooperation within groups or organizations. - Moral Foundation : Values form the moral
foundation of individuals and organizations, guiding ethical conduct.

Need - Identity: Values help define individual and organizational identity. - Consistency:
They ensure consistent behaviour and decision-making. - Trust: Values build trust among
stakeholders, including employees, customers, and the community. - Direction: They
provide direction and purpose, aligning actions with long-term goals.

Types of Values 1.Personal Values: Individual beliefs and principles that guide personal
behaviour (e.g., honesty, integrity, kindness). 2.Cultural Values: Shared beliefs and norms
within a cultural group (e.g., respect for elders, community service). 3.Social Values:
Values that guide behaviour in social contexts (e.g., equality, justice, freedom).
4.Professional Values: Principles that guide professional behaviour (e.g., confidentiality,
accountability, excellence). 5.Organizational Values: Core beliefs that shape the culture
and practices of an organization (e.g., innovation, customer focus, teamwork).

Relevance of Values in an Organization 1.Culture Building: Values shape the

organizational culture, influencing how employees interact and work together. 2.Strategic
Alignment: They ensure that organizational strategies and goals are aligned with core
beliefs. 3.Employee Motivation: Values motivate employees by creating a sense of purpose
and belonging. 4.Decision Making: They provide a framework for ethical and consistent
decision-making across all levels. 5.Brand Image: Organizational values contribute to the
public perception and reputation of the company. 6.Conflict Resolution: Shared values
help in resolving conflicts by providing common ground for understanding and negotiation.
7.Leadership: Leaders who embody organizational values inspire trust and loyalty .
Q.3) explain professional ethics of a manager ? and principal of ethics

Professional Ethics of a Manager refer to the moral principles and standards that guide
managers in their roles and responsibilities. These ethics ensure that managers conduct
themselves with integrity, fairness, and accountability, promoting trust and respect within
the organization and with external stakeholders.

Key Components of Professional Ethics for Managers

1.Integrity - Acting with honesty and transparency in all dealings. - Keeping promises and
commitments. - Avoiding conflicts of interest and disclosing them when they arise.
2.Fairness - Ensuring impartiality in decision-making and treating all employees equitably.
- Avoiding favouritism and discrimination. - Providing equal opportunities for growth and
development. 3.Accountability - Taking responsibility for one’s actions and decisions. -
Being answerable to stakeholders, including employees, customers, and shareholders. -
Implementing policies and procedures that promote ethical behaviour. 4.Respect -
Valuing the dignity and rights of all individuals. - Encouraging open communication and
listening to diverse viewpoints. - Addressing concerns and complaints in a respectful
manner. 5.Competence - Maintaining and improving professional knowledge and skills. -
Staying informed about industry standards and best practices. - Providing leadership and
guidance to employees. 6.Confidentiality - Protecting sensitive information and
respecting privacy. - Ensuring that confidential information is not misused. -
Implementing measures to safeguard data and information.

Principles of Ethics Ethical principles are the foundational concepts that guide moral
conduct and decision-making. They provide a framework for evaluating actions and
ensuring that they align with ethical standards.

Key Principles of Ethics

1.Autonomy - Respecting the right of individuals to make their own decisions. -

Encouraging self-determination and informed consent. 2.Beneficence - Promoting the
well-being of others and acting in their best interests. - Striving to do good and prevent
harm. 3.Non-Maleficence - Avoiding actions that cause harm or injury to others. -
Ensuring that any potential harm is minimized and justified by the benefits. 4.Justice -
Ensuring fairness and equality in the distribution of resources and opportunities. - Treating
individuals with impartiality and without discrimination. 5.Fidelity - Maintaining loyalty
and faithfulness in relationships and commitments. - Honouring promises and
agreements. 6.Veracity - Being truthful and honest in all communications. - Providing
accurate and complete information. 7.Respect for Persons - Valuing the inherent dignity
and worth of all individuals.
Q.4) explain stages of global corporate citizenship ?

Stages of Global Corporate Citizenship refers to the extent to which a company takes
responsibility for the impact of its activities on society and the environment, both locally
and globally. The stages of global corporate citizenship outline the progression companies
typically follow as they integrate corporate social responsibility (CSR) into their operations
and culture. These stages are often represented in a maturity model, which demonstrates
increasing levels of commitment and integration of ethical, social, and environmental
considerations into business practices.

1.Elementary Stage - Characteristics: At this initial stage, companies are primarily

focused on compliance with laws and regulations. There is little to no formal commitment
to CSR beyond what is legally required. - Actions: Basic environmental and labour law
compliance, minimal community engagement, and reactive responses to social and
environmental issues. - Mind-set: Compliance-driven and risk-averse.

2.Engaged Stage -Characteristics: Companies begin to recognize the importance of CSR

and start to engage with stakeholders. There is a growing awareness of the business
benefits of CSR. - Actions: Implementing basic CSR programs, engaging with key
stakeholders (e.g., employees, customers, and local communities), and starting to report
on CSR activities. -Mind-set: Awareness and stakeholder-oriented.

3.Innovative Stage -Characteristics: Companies start to integrate CSR into their business
strategies and operations. Innovation in CSR practices becomes more common, and
companies seek to differentiate themselves through their CSR efforts. - Actions:
Developing innovative CSR initiatives, integrating CSR into core business processes, and
actively seeking stakeholder feedback to improve CSR performance. - Mind-set: Strategic
and innovative.

4.Integrated Stage -Characteristics: CSR is fully integrated into the company’s business
model and culture. There is a strong alignment between the company’s values and its CSR
practices. - Actions: Comprehensive CSR strategies and policies, robust stakeholder
engagement, transparent reporting, and measuring CSR performance against clear targets.
- Mind-set: Integrated and value-driven.

5.Transforming Stage - Characteristics: Companies at this stage are leaders in CSR and
aim to drive systemic change. They actively promote CSR within their industry and
collaborate with other organizations to address global challenges. - Actions: Leading
industry-wide CSR initiatives, setting ambitious sustainability goals, actively participating
in multi-stakeholder collaborations, and influencing public policy. - Mind-set:
Transformational and purpose-driven.
Q.5) explain corporate governance of India ? its problems, features, functions,
objectives and explain important theories of corporate governance

Corporate Governance in India refers to the system by which companies are directed and
controlled. It involves the mechanisms, processes, and relations by which corporations are
managed and held accountable. In India, corporate governance has gained significant
attention, particularly following various corporate scandals and the need for greater
transparency and accountability in the business environment.

Features of Corporate Governance in India

1.Regulatory Framework - The Companies Act, 2013, is the primary legislation governing
corporate governance in India. - The Securities and Exchange Board of India (SEBI) plays a
crucial role in regulating listed companies through its Listing Obligations and Disclosure
Requirements (LODR) Regulations. - Independent directors and audit committees are
mandated to ensure oversight and independence. 2.Board Structure - Boards are required
to have a mix of executive and non-executive directors, including independent directors. -
The roles of the Chairman and CEO are often separated to ensure independence and
balance of power. 3.Disclosure and Transparency - Companies must adhere to stringent
disclosure requirements, including financial performance, shareholding patterns, and
related party transactions. - Regular reporting and transparency are crucial for building
investor trust. 4.Stakeholder Interests - Corporate governance in India emphasizes
protecting the interests of all stakeholders, including shareholders, employees, customers,
and the community.

Problems in Corporate Governance in India

1.Lack of Independence - Independent directors often lack true independence due to

personal or professional relationships with the promoters or management.
2.Concentration of Ownership - A significant number of Indian companies are family-
owned or promoter-driven, leading to potential conflicts of interest and challenges in
maintaining effective checks and balances. 3.Regulatory Compliance - Despite robust
regulations, compliance is often seen as a tick-box exercise rather than a genuine
commitment to good governance. 4.Ethical Practices - Instances of unethical practices
and lack of integrity among corporate leaders can undermine governance structures.
5.Board Effectiveness - Boards may lack the necessary skills, diversity, and effectiveness
to provide robust oversight and strategic guidance.

Functions of Corporate Governance

1.Accountability - Ensuring that the company’s management is accountable to the board

and the board is accountable to the shareholders and other stakeholders. 2.Oversight -
Monitoring and evaluating the performance of the management and the company to ensure
alignment with the company’s strategic goals. 3.Risk Management - Identifying, managing,
and mitigating risks to protect the company’s assets and ensure long-term sustainability.
4.Compliance- Ensuring compliance with laws, regulations, and ethical standards.
5.Transparency - Promoting transparency in reporting and communication to build trust
with stakeholders.

Objectives of Corporate Governance

1.Protecting Stakeholder Interests - Safeguarding the rights and interests of all

stakeholders, including shareholders, employees, customers, and the community.
2.Enhancing Accountability - Establishing clear lines of accountability within the
organization to ensure responsible decision-making. 3.Promoting Transparency - Ensuring
that the company operates with transparency and openness in its dealings and
disclosures. 4.Ensuring Fairness - Ensuring equitable treatment of all shareholders and
stakeholders. 5.Sustainable Growth - Promoting long-term sustainability and value
creation for the company and its stakeholders.

Important Theories of Corporate Governance

1.Agency Theory - Concept: This theory focuses on the relationship between principals
(shareholders) and agents (management). It addresses the conflicts that arise due to the
separation of ownership and control. - Objective: To align the interests of managers with
those of shareholders through mechanisms like performance-based incentives and
monitoring by the board of directors. 2.Stewardship Theory - Concept: Contrary to agency
theory, stewardship theory posits that managers, as stewards, are motivated to act in the
best interests of the company and its shareholders. - Objective: To empower managers by
giving them autonomy and trust, thereby fostering a collaborative and trust-based
organizational culture. 3.Stakeholder Theory - Concept: This theory broadens the focus
beyond shareholders to include all stakeholders, such as employees, customers,
suppliers, and the community. - Objective: To ensure that the company’s actions and
policies consider the interests and well-being of all stakeholders. 4.Resource Dependency
Theory - Concept: This theory emphasizes the importance of external resources and the
role of the board in securing and managing these resources. - Objective: To leverage the
board’s network and expertise to secure critical resources and strategic advantages for the
company. 5.Transaction Cost Theory: This theory deals with the costs associated with
economic exchanges within a company and between the company and external parties
Q.6) define SEBI ? it's function ,importance. and two scams of corporate.

SEBI (Securities and Exchange Board of India) is the regulatory authority in India
responsible for overseeing the securities market and protecting the interests of investors. It
was established in 1988 and given statutory powers through the SEBI Act, 1992.

Functions of SEBI 1.Regulation of Stock Exchanges - SEBI regulates stock exchanges and
ensures that their activities are conducted in a fair and transparent manner. 2.Protection of
Investor Interests - SEBI implements measures to protect investors from fraudulent
activities and unfair practices. 3.Regulation of Market Intermediaries - SEBI oversees and
regulates intermediaries such as brokers, underwriters, and registrars to ensure their
compliance with the law. 4.Promotion of Fair Trading Practices - SEBI promotes fair trading
practices to ensure that securities transactions are conducted efficiently and fairly.
5.Development of Securities Market. 6.Regulation of Mutual funds 7.Investor Education
and Awareness 8.Inspection and Audits

Importance of SEBI 1.Market Integrity - SEBI ensures the integrity of the securities market
by enforcing rules and regulations that prevent fraud and manipulation. 2.Investor
Confidence - By protecting investor interests and ensuring transparency, SEBI boosts
investor confidence, which is crucial for market growth. 3.Economic Growth - A well-
regulated securities market facilitates capital formation and economic growth by providing
a platform for companies to raise funds. 4.Innovation and Development - SEBI promotes
innovation in financial products and services, contributing to the development of the
securities market.

Two Corporate Scams in India

1.Satyam Computer Services Scam (2009) - Overview: Often referred to as "India's

Enron," the Satyam scam involved the company's founder, Rama lingam Raju,
manipulating the accounts by falsifying revenues, margins, and cash balances. The fraud
amounted to approximately ₹7,000 crore (around $1.5 billion). - Impact: The scam led to
a loss of investor confidence, a sharp fall in Satyam’s stock price, and the resignation and
arrest of key executives. It highlighted significant gaps in corporate governance and
auditing practices in India. - SEBI's Role SEBI conducted an investigation and imposed

2.Harshad Mehta Scam (1992) - Overview: Harshad Mehta, a stockbroker, manipulated

the stock market by exploiting loopholes in the banking system. He used fake bank receipts
to obtain loans, which were then invested in the stock market, causing a massive surge in
stock prices. The scam was valued at around ₹4,000 crore. - Impact: The scam caused a
major crash in the stock market, leading to huge losses for investors and financial
institutions. It exposed weaknesses in the regulatory and banking systems.
Q.7) explain the role of board of directors in good governance and duties and
restriction’s of directors

Role of the Board of Directors in Good Governance The board of directors plays a crucial
role in ensuring good governance within an organization. Their responsibilities include
overseeing the management of the company, making strategic decisions, and ensuring
accountability and transparency. Here are key aspects of their role:

1.Strategic Direction - Responsibility: The board sets the overall strategic direction and
long-term goals of the company. - Actions: Approving major policies, strategic initiatives,
and ensuring alignment with the company’s vision and mission. 2.Oversight and Monitoring
- Responsibility: The board monitors the performance of the company and its
management. - Actions: Reviewing financial statements, performance reports, and key
performance indicators (KPIs). 3.Risk Management - Responsibility: Identifying and
managing risks that could impact the company. - Actions: Establishing risk management
policies and regularly reviewing risk assessments and mitigation strategies. 4.Compliance
and Legal Obligations - Responsibility: Ensuring the company complies with laws,
regulations, and ethical standards. - Actions: Overseeing compliance programs, internal
audits, and ethical conduct policies. 5.Financial Stewardship - Responsibility:
Safeguarding the company’s financial health and resources. - Actions: Approving budgets,
financial plans, and significant investments or expenditures. 6.Executive Leadership -
Responsibility: Appointing, compensating, and evaluating the performance of the CEO and
senior management. - Actions: Conducting performance reviews, succession planning,
and ensuring leadership development.

Duties of Directors 1.Duty of Care Directors must act with the care, diligence, and skill
that a reasonably prudent person would exercise in similar circumstances. 2. Duty of
Loyalty Directors must act in the best interests of the company, avoiding conflicts of
interest. 3.Duty of Obedience : Directors must ensure that the company complies with its
articles of incorporation, bylaws, and relevant laws and regulations. 4.Duty of Disclosure
Directors must ensure that accurate and complete information is disclosed to
shareholders and regulators.

Restrictions on Directors 1.Conflict of Interest - Restriction: Directors must avoid

situations where their personal interests conflict with the interests of the company.
2.Insider Trading - Restriction: Directors are prohibited from using non-public information
for personal gain. 3.Competition with the Company -: restriction should not engage in
activities directors that compete directly with the company. 4.Corporate Opportunities: -
Restriction: Directors must not take personal advantage of opportunities that belong to the
company.
Q.8) implications of Indian Heritage on business ethics explain in detail

Indian heritage, with its rich cultural, philosophical, and spiritual traditions, significantly
influences business ethics in India. The core values derived from ancient scriptures,
traditions, and cultural practices shape the ethical framework and corporate behavior in
the Indian business environment. Here are detailed implications:

1.Dharmic Principles: - Concept: Dharma represents duty, righteousness, and moral order.
It is a central concept in Indian philosophy, particularly in Hinduism, Buddhism, and
Jainism. - Implications Businesses are expected to operate ethically and responsibly,
adhering to the principles of honesty, fairness, and justice.

2.Karma: - Concept: Karma refers to the law of cause and effect, where every action has
consequences. Good actions lead to positive outcomes, while unethical actions result in
negative repercussions. - Implications: Business leaders and employees are encouraged
to act ethically, with the understanding that their actions will have long-term impacts on
their personal and professional lives.

3.Ahimsa (Non-Violence)Concept. Ahimsa is the principle of non-violence and respect for

all living beings, deeply rooted in Jainism, Buddhism, and Hinduism. - Implications:
Businesses adopt ethical practices that avoid harm to people, animals, and the
environment. 4.Satyam (Truthfulness) Concept. Satyam emphasizes the importance of
truth and transparency in all dealings. - Implications: Businesses are expected to maintain
honesty and transparency in their operations, communications, and financial reporting.
5.Seva (Service): - Concept: Seva means selfless service and is a vital aspect of Indian
culture, especially in Sikhism and Hinduism. - Implications: Businesses engage in
corporate social responsibility (CSR) activities, contributing to the welfare of society. 6.
Loka Samgraha (Welfare of All): - Implications: Businesses strive to balance profit-making
with social responsibility, ensuring that their operations benefit the broader community.
7.Yogic Principles:Yoga emphasizes self-discipline, balance, and ethical conduct, as
outlined in Patanjali’s Yoga Sutras. - Implications: Ethical leadership and corporate
governance are influenced by principles such as non-possessiveness (Aparigraha),
contentment (Santosha), and self-discipline (Tapas). 8.Caste and Community
Considerations Implications: While modern business practices aim to transcend caste
and community barriers, understanding these social dynamics helps in navigating
relationships and fostering inclusive practices in the workplace.

9.Joint Family System Concept: strong interpersonal relationships. - Implications:

Businesses often function like extended families, fostering a sense of loyalty, collaboration,
and support among employees.
Q.9) explain CSR ? its principle ,importance, nature .

Corporate Social Responsibility (CSR) refers to the ethical obligation of businesses to

contribute to the well-being of society and the environment beyond their profit-driven
activities. CSR encompasses a wide range of practices that address social, economic, and
environmental concerns, aiming to positively impact stakeholders, including employees,
customers, communities, and the planet.

Principles of CSR 1.Ethical Behaviour - Principle: Adhering to ethical standards in all

business dealings. – Application Implementing fair labour practices, anti-corruption
policies, and ensuring honesty and integrity in business transactions. 2.Respect for
Stakeholder Interests : - Principle Recognizing and considering the interests of all
stakeholders. - Application: Engaging with stakeholders, including employees, customers,
suppliers, and communities, to understand their needs and expectations. 3. Respect for
the Rule of Law : - Principle: Complying with all applicable laws and regulations. -
Application: Ensuring legal compliance in all areas of operation, including labour laws,
environmental regulations, and corporate governance. 4. Respect for Human Rights: -
Principle: Upholding and promoting human rights. - Application: Preventing human rights
abuses, promoting diversity and inclusion, and ensuring safe and healthy working
conditions. 5.Sustainable Development:

Importance of CSR 1.Reputation Management .Importance: Enhances the company’s

reputation and builds trust with stakeholders. -Impact: A positive reputation can lead to
increased customer loyalty, better employee retention, and improved investor relations.
2.Competitive Advantage - Importance: Differentiates the company from competitors. -
Impact: Attracts customers who prefer to engage with socially responsible companies and
opens up new business opportunities. 3. Employee Satisfaction- Importance: Improves
employee morale and satisfaction. - Impact: Engages employees, enhances productivity,
and reduces turnover by fostering a sense of purpose and pride in the workplace. 4. Social
Impact: 5. Environmental Protection:

Nature of CSR . 3. Integrated Approach: - Nature: CSR is integrated into the overall
business strategy and operations. - Explanation: Aligning CSR with core business activities
ensures that ethical practices are embedded in the company’s culture and decision-
making processes. 4. Stakeholder-Centric: - Nature: CSR focuses on the interests and
needs of various stakeholders. - Explanation: Engaging with stakeholders and considering
their perspectives is crucial for effective CSR implementation. 5. Long-Term Perspective: -
Nature: CSR initiatives are designed for long-term impact and sustainability. - Explanation:
Companies invest in projects and practices that offer enduring benefits to society and the
environment.