Ethical Practices for Indian Business

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ETHICAL PRACTICES FOR INDIAN BUSINESSES: THE STRATEGY TO ACHIEVE GLOBAL SUCCESS

Abstract:
Business ethics is not codified but yet literature’s on the subject matter has developed to extent that it has made its identity visible in corporate world and business at large. With the rapid pace globalization is gaining momentum it is must for organizations operating all over the world to adopt ethics in trade. Since, the ethical practices are culture specific, the Indian business ethics practice is also found to be differentiated on the basis of nature of business and demographic location of business. This paper concentrates upon ethical business practices to be adopted by the MNC’s of Indian origin for achieving success on a global platform. Through this paper an attempt has been made to identify some of the best ethical practices, Indian MNCs should adopt while operating in foreign land and in the home country. The paper also brings in light real examples of ethical practices from the Indian corporate that set lessons for other organizations operating worldwide.

Keywords: Business ethics, Corporate social responsibility, Indian MNCs, globalization

“When we transform ourselves, the world will be transformed. When we reform ourselves, the world will be reformed.” Pandit Shriram Sharma Acharya (Founder Gayatri Pariwar)

Business, Globalization and Ethics:

Business itself is as old as civilization and the most significant feature of business today is globalization. Globalization is a process of interaction, integration and interdependence among people, corporations and government of distinct nations. The driving force behind globalization is international trade, investment and rapid growth in information technology.Globalisation has effect on economy, environment, culture, political system, prosperity and on human physical well being in societies around the globe. Ethics continuous to constitute a part of business since the time business existed in its different form to till now, in this era of globalization.

Ethics as the study of morality, describes, analyzes, and judges what is considered to be right and wrong behavior in a given context(Bandsuch,2009).Business ethics is the application of that evaluative process to the behavioral norms and standards as designated in the world of commerce(Bandsuch,2009).Ethics of business is whatever moral values and beliefs individuals brings to their business activities(Baotright,2000).There is ethics involved in every business but it consist mainly rules imposed by society and specifically by law. Business ethics is an evolving field whose decision making and actions include corporate social responsibility, sustainable development and philanthropy among its many forms (Bandsuch, 2009).Business ethics is applicable to many dimensions from the acquisition of natural resources to the distribution of the final product or services.

In a broader term the responsibilities that business has towards society is termed as Corporate Social responsibility (CSR).Carroll (1979) has suggested four categories of responsibilities a business has to bear i.e. Economic, legal, ethical and discretionary or phalinthropic.The definition suggested by Carroll extends the responsibilities of business beyond the basic economic role of the firm and argues that business cannot only be profitable and ethical, but they should fulfill these obligations simultaneously. The economic responsibility refers to business to be profit making enterprise and profit being essential as motivation and reward for those individuals who take commercial risk. In this era of global competitiveness economic responsibility is very significant. Legal responsibility of business includes responsibility to abide by laws under which the business is expected to pursue its economic role .In addition to fulfill their economic and legal responsibilities, business are expected to fulfill ethical responsilities as well (Carroll,...
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