Ethics & Governance Prof. Varsha Dhotre Unit 2. Ethics in Marketing, Finance & HRM ETHICAL ISSUES IN MARKETING MIX Product Issue Place Issue Price Issue Promotion Issue Unethical Marketing Practices in India • • • • • • • • • • Making false, exaggerated or unverified claims Distortion of facts to mislead or confuse potential buyers Concealing side effects of products and services Bad-mouthing rival product Using women in irrelevant advertising Fear tactics Plagiarism of marketing message Exploitation Discriminating people for their age, sex, religion… Spamming messgage Ethical Dilemma in Marketing Pricing Advertis ing Promoti on Working conditions Custome r Service Environ ment Ethical Issues in Advertising Concealment of facts Glorifying glamorous look Advertisements using children Improper usage of languages Manipulative advertising Harmful advertisement Types of Unethical advertisements Surrogate Advertising Exaggeration Puffery Stereotyping Women Total Lies Children in advertising Creates materialistic demand Ethics for Finance Manager A . Important points need to be considered as finance manager • Legal issues • Balancing act • Whistle blowers • Competence • Professionalism • Integrity • Confidentiality B. Code of conduct for financial managers Whistle Blowing & Balancing Act Types of Whistle Blowing Internal External Corporate Crime White Collar Crime Organizational Crime Ethics in Human Resource Management Positive Ambience Guide and mentor their employees Career Growth Need to retain and nurture talent Creating strong bond among employees Guidelines and Role for Ethical workplace • • • • • Guidelines for Ethical workplace Rules and regulations should be same for everyone Management need to communicate clearly with everyone Employees not to attend the office 365 days a year Give employee their space No to be strict with your employees Role for Ethical workplace • • • • • • • • Source of Inspiration Motivate Employee Constant communication Try to solve the problems of employee Do not stop your employee from leaving your organization Need to be careful while recruiting employees No Special treatment Support employees Importance of Employee Code of Conduct Features of Code of Conduct • Written format • Penalties • Professional behaviour • Voluntary in Nature • Build trusts • Bring discipline Imp/Benefits of code of conduct • Focuses on ethical behaviour • Laws and rules • Professional attitudes • Good Image • Relationship Measures to improve ethical conduct of business The THREE-TIER system of ethical conduct Institutional level Society level Government level Ethical Issues in HR Employee Responsibility Cash and compensation plan Privacy issues Race and disability Safety and health Employment issues Ethical Leadership Characteristic Justice Respect others Honesty Humane Focus on team building Value-driven decision making Encourage initiative Leadership by example Value awareness
