[ Ethics in Market Structures ]

Monopoly, Oligopoly, Perfect Competition

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Group Members

Nabeel Altaf BB-09-101

Umar Farooq khan BB-09-93

Raza Najam BB-09-107

Code of ethics Company's assets, funds and records Conflict of interest Management and employee practices Information on competition

Ethical business practices

Investors Employees Customers Competitors Government Environment

Unethical business practices

Resorting to dishonesty, trickery or deception. Distortion of facts to mislead or confuse. Manipulating people emotionally by exploiting their vulnerabilities. Greed to amass excessive profit. Creation of false documents to show increased profits.

 Avoiding penalty or compensation for unlawful act Lack of transparency and resistance to investigation. Harming the environment by exceeding the government prescribed norms for pollution. Invasion of privacy used as leverage, for obtaining personal or professional gains. Sexual discrimination

Preventing unethical practices in organization Codes of corporate ethics must be formulated An appeal process must be in place Seminars Compliance officers must be appointed To promote ethical behavior

Umar Farooq khan

BB-09-093

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Monopoly
A single entity control the entire market to purchase of good and service. Thus single firm dominate the market. These are some example of Monopolistic competition.

Monopoly Role Ethics

Why we involved ethics in Monopoly?

Corruption by the employees Pepsi recent corruption done by manager in Multan, (Restaurant) Misrepresentation of products PTCL representation of Nitro and evo internet speed.

it

Monopoly Role Ethics Misleading the Price list

Wapda and PTCL. High Prices They charge high price regardless of it actual cost. Harassment of Employees (low wages) Working environment To much discipline problems and congested offices

Monopoly Role Ethics

Working Hours of Employees Because there are no competitors employees are forced to stay with them Advertisments I was really surprised that the company in monopoly dont advertise at all in Pakistan.

How we can effectively used ethics in it

We can form Employee union so they may have some one to represent them. Improve there working environment.
Dont Mislead customers (there are no competitors)

How we can effectively used ethics in it

Implementation of Social Responsibility in there business. Allow other competitors to enter in the market so there is a healthy competition.
Learn from the Best Google and Microsoft they do implement CSR and Ethics in Business having almost a Monopoly (1996-2005)

Raza Najam
BB-09-107

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DOES COMPETITION DESTROY ETHICAL BEHAVIOR?

Oligopoly

Perfect Competition

five censured activities

1 2 3 4 3

Employment of children Corruption Excessive executive pay Corporate earnings manipulation

Involvement of universities in commercial activities

Where Ethics can play a role

Leakage of Secret Information Short Cuts and unfair means Cheap Publicity Insider trading Employee Work Load Price War Shares Manipulation

What can be done

We can think of (at least) three strategies for curtailing unethical conduct, involving increasing amounts of coercion: long run market pressure, moral suasion, government regulation.

Influence - Business Culture & Industry Practices - B to C Early 1900s: Caveat Emptor
A Latin phrase meaning let the buyer beware - what you see is what you get, &if its not what you expected, too bad
Belief that competition in the marketplace corrects abuses

1962, Kennedys Consumer Bill of Rights

Business Culture & Industry Practices - B to B

Ethics of Competition
Economic Espionage stealing trade secrets Bribes -payment before service Kickbacks-payment after service Both are illegal in U.S., but very common in developing nations

Organization Should focus on 4 core things Corporate Governance: Corporate Social Responsibility: Human Rights Global Economy Long Run benefits

Admirable business principles

Be Trustful Be Open Mind Meet Obligations Become Community involved Be Respectful

Question & Answer There is no Wrong Question. But answer maybe .

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