Business Ethics & Corporate Governance

Prof Bharat Nadkarni

Business Communication

Survival Rate for Globalised Corporates

Age in Years Percentage Perish Percentage surviving

5
10 15 20

62
79 86 90

38
21 14 10

25
50 75 100

93
98 99 99.50

7
2 1 0.50

Stakeholder Concept

Business Ethics : Prof Bharat Nadkarni

Who are the Stakeholders of Business ? Shareholders and Promoters Customers

Employees
Suppliers and Partners (incl Contractors, Agents etc) Government Society

Business Ethics : Prof Bharat Nadkarni

Most Admired Business Balancing and Exceeding the Expectations of all its Stakeholders.

Business Ethics : Prof Bharat Nadkarni

Ethics at Stakeholders level

Business Ethics : Prof Bharat Nadkarni

Shareholders Ensure capital appreciation Ensure steady and regular dividends

Disclose all relevant information Protect minority shareholders interests Not to window dress balance sheets Protect interest in times of mergers, amalgamations takeovers and

Business Ethics : Prof Bharat Nadkarni

Customers Better quality of goods Goods and services at reasonable price Not to corner stocks and create temporary shortage Not to practice discriminatory pricing

No carteling
Not to make false claims about products in advertisements

Business Ethics : Prof Bharat Nadkarni

Employees Payments as per skill sets and organisational worth.

Security of job Better and safe working conditions

Better recommendation
Participative management Welfare facilities Equal opportunity employer

Business Ethics : Prof Bharat Nadkarni

Suppliers and partners Prompt Payments

Fair practices of business Creating a level playing field

Reciprocity
Banks and Lending institutions Guarantee safety of borrowed funds Prompt repayment of loans

Business Ethics : Prof Bharat Nadkarni

Government

Complying with rules and regulations

Honesty in paying taxes and other dues Acting as partner in progress of the country

Business Ethics : Prof Bharat Nadkarni

Society / Community Concern for poor and down trodden No discrimination against any particular section or group Concern for clean environment Preservation of scarce resources for posterity Contributing to better quality of life

Business Ethics : Prof Bharat Nadkarni

Internal Policy Level Fair practices relating to recruitment, compensation, lay-offs, perks, promotion, etc. Transformational leadership to motivate employees to aim at better and higher things in life Better communication at all levels Respecting principle of collective bargaining

Business Ethics : Prof Bharat Nadkarni

Personal Policy Level Not to misuse others for personal ends Not to indulge in politics to gain power Not to spoil promotional chances of others Not to use office car, stationary and other property for personal use Not to fall prey to shortcuts and easy money Promise keeping No violence, i.e. preventing or not causing physical harm to others Mutual help Respect for persons and property

Excellence Behaviour Habits Attitude Thoughts Values

Core Values & Concepts of World Class Organizations

Visionary Leadership Customer- Driven Excellence

Organizational & Personal Learning

Focus on the Future

Agility

Management By Fact

Valuing Employees & Partners

Focus on Results & Creating Value

Managing for Innovation Systems Perspective

Social Responsibility