DETECTING ETHICAL AND UNETHICAL PRACTICES IN HUMAN RESOURCE MANAGEMENT (HRM) ,FINANCE AND MARKETING.

DETECTING ETHICAL AND UNETHICAL PRACTICES IN HUMAN RESOURCE MANAGEMENT (HRM) ,FINANCE AND MARKETING:

BUSINESS ETHICS

Ethics means the set of rules or principles that the organization should follow. While in business ethics refers to a code of conduct that businesses are expected to follow while doing business. Through ethics, a standard is set for the organization to regulate their behavior. This helps them in distinguishing between the wrong and the right part of the businesses.

WHY IS ETHICAL ADVERTISEMENTS/MARKETING NEEDED:

Ethics in advertising is important, because by acting ethically with their advertising, a company is being responsible towards the needs of the customer. Ethical advertising evens the playing field for the consumer by giving them the information they need to make an informed decision on what products to buy and how these products will enhance their lives--whether they need the product or they just want that product.

Despite the fact that not every company currently prioritizes ethical sourcing, and that many of the products in developed markets are still tied to unethical business practices, the long-term trend is turning toward sustainability. Social networking sites and the internet are making the world much more connected. It’s easier than ever before for ethics violations and bad business practices to be seen and reported on.

One of the companies which follow ethical practices with high standard profits and revenue is "H&M"

H&M

Clothing retailer H&M is committed to supply chain transparency. They publish a list of 98.5% of their suppliers’ names and addresses on their website, and update it on a quarterly basis. This ensures they can be held publicly accountable for the conduct of their suppliers, and that anyone can verify whether their suppliers are living up to the standards set by the company.

The fashion industry is viewed by many as problematic in terms of sustainable and ethical sourcing. If a leading clothing retailer like H&M can demonstrate its dedication to ethical practices and sustainability while maintaining profits, there is a potential to change this reputation as other retailers follow this example.

“The most powerful element in advertising is the truth.”  is the important thing which should be followed by all the companies whose advertisements are going under unethical practices.

UNETHICAL MARKETING/ADVERTISING:

Unethical marketing is the practice which should not be done by any business-man. These are the ways to approach people in a wrong way. For example, difference in color, gender discrimination,

or advertising unconditional products are being done as unethical practices.

Questions from society starts with racism

ETHICS IN HUMAN RESOURCE MANAGEMENT:

Various types of market systems affect business and HR ethics differently and hence, business ethics becomes negotiable. Occupations in which the market conditions do not favor the employees, it becomes necessary to have government and labor union interventions for controlling the possible exploitation of employees.

• Free market systems empower employees and the employers equally; negotiations are used to create win-win situations for both of these parties. Government or labor union interventions are often harmful in free market systems because they stall the operations and create unnecessary hindrances.
• With the growth of globalization, the concept of globalizing labor has gained importance. Trade unions have ceased to exist and the role of HR as such in issues like employee management, desirable policies and practices has become debatable topics

"The strongest thing that any human being has going for itself is its own integrity and its own heart."

UNETHICAL PRACTICES IN HUMAN RESOURCE MANAGEMENT:

In order to survive in the competitive world the employees resort to various fair and unfair means. Those who adopt fair means achieve slow growth. Employees following unfair methods are likely to grow faster or loose the job, which means they are taking known risk in chase of greed. No company is good enough to work in an ethical manner. Now-a-days even recruiting employees has become a business. As we are aware of the known fact that the senior employees are being removed from the companies and their payroll's are given to 5-6 employee's who are new to field. So that work can be done faster and company can make more profits.

ETHICS IN FINANCE:

The simplest ethical guide for finance professionals should have three objectives −

• The first is to have higher ethical standards and a more inclusive financial system.

• The second, we should be more conscious of moral choices, but morals should not be imposed upon people in suffocating ways.

• The third objective is to keep things simple.

We often see financial market participants hesitate a moment before deciding whether to go ahead with a transaction. It is when they assess whether the transaction makes sense, feels odd or is avoidable. In that moment, people tend to ask whether they know the individuals involved in the transaction and whether a similar transaction was made earlier.

"A man without ethics is like a wild beast loosed upon this world."  

UNETHICAL PRACTICES IN FINANCE:

The most frequently occurring ethical violations in finance relate to insider trading, stakeholder interest versus stockholder interest, investment management, and campaign financing. Businesses in general and financial markets in particular are replete with examples of violations of trust and loyalty in both public and private dealings. Fraudulent financial dealings, influence peddling and corruption in governments, brokers not maintaining proper records of customer trading, cheating customers of their trading profits, unauthorized transactions, insider trading, misuse of customer funds for personal gain, wrong pricing customer trades, and corruption and larceny in banking have become common occurrences.

OVERVIEW:

Business ethics ensure that a certain basic level of trust exists between consumers and various forms of market participants with businesses. For example, a portfolio manager must give the same consideration to the portfolios of family members and small individual investors. These kinds of practices ensure the public receives fair treatment.

The concept of business ethics began in the 1960's as corporations became more aware of a rising consumer-based society that showed concerns regarding the environment, social causes, and corporate responsibility. The increased focus on so-called social issues was a hallmark of the decade.Since that time period, the concept of business ethics has evolved. Business ethics goes beyond just a moral code of right and wrong.