ETHICS

ETHICS IN FINANCE

Ethics in general is concerned with human behaviour that is acceptable or "right" and that is not acceptable or "wrong" based on conventional morality. General ethical norms encompass truthfulness, honesty, integrity, respect for others, fairness, and justice. They relate to all aspects of life, including business and finance
"Financial ethics is therefore a subset of general ethics.”

Financial sector in INDIA regulates SRBI, SEBI, FMC, IRDA, PFRDA, MOF, HLCC MARKETS COMMODITIES, EQUITIES, DEBT, FOREIGN EXCHANGE PLAYERS BROKERS, FIRMS, BANKS, FINANCIAL INSTITUTIONS, FII, MUTUAL FUND MANAGERS, INVESTORS, EXCHANGES, DEPOSITORIES, CUSTODIANS, REGISTRARS

The financial industry is a major backbone in society with consequences that can drastically change the economy and influence the personal finances of every Indian. Major events like the housing market crash in 2007 were perpetuated by poor ethics and ultimately led to a great recession that effected most Indian’s and the larger global economy. Ethics in the financial industry are crucial as the system is largely built on regulatory guidelines and variances of trust.

Modern financial theory runs counter to the ideas of trustworthiness, loyalty, fidelity, stewardship, and concern for others that underlie the traditional principle-agent relationship. The traditional concept is based on moral values

Ethical dilemmas and ethical violations in finance can be attributed to an inconsistency in the conceptual framework of modern financial theory The financial theory underlies the modern capitalist system is based on the rational-maximize paradigm, which holds that individuals are self-seeking and that they behave rationally when they seek to maximize their own interests.

The principle-agent model of relationships refers to an arrangement whereby one party, acting as an agent for another, carries out certain functions on behalf of that other, such arrangements are an integral part of the modern financial system, and it is difficult to imagine it functioning without them.

 FOR INSTANCE-

The relationship between an individual and their personal financial adviser or broker is built on trust and ethics. The adviser should always work in the best interest of the client, making financial decisions and suggestions that will benefit them in the long run.

ETHICS IN HR

Ethics is a special branch of philosophy that focuses on the questions related to morality, that is concepts such as good and bad, right and wrong; fairness and righteousness’. Business ethics in HR deals with the degree and extent of morality to be used in business 

Human Resource Management is the systematic and effective management of people to achieve the desired objectives. To gain a strategic edge, it is very important to manage the ‘people’ resources productively. This will help to attain the strategic goals as well as the satisfaction of the individual employee needs. All the Human Resource practices are based on ethical foundation. It is the responsibility of the employers to maintain health and safety of their employers in the workplace.

Ethical considerations are becoming increasingly important to HR departments in INDIAN industries. A tension often exists between a company's financial goals and strategies to improve profits, and ethical considerations with right-behaviour concerns

Since human resources departments are often focused on employees and employee behaviours, it falls to them to define ethical behavior, communicate specialized ethical codes and expectations. Human resource management systems are expected to communicate ethical values and so improve company performance.

One of the ways the HR department can support ethics management for their company is through the maintenance of a code of ethics. An ethical code for a business help employees build trust with each other and their company, while clarifying any uncertain or grey areas that may exist in the company's ethical considerations.

Instead of only supporting existing ethical standards, a proper code of ethics should seek to raise the standard and improve employee behaviour. The code should show members of the company how to make judgment decisions and encourage such proper decision making, while at the same time providing enforcement protocols to prevent misconduct. A code of ethics is only one part of the entire ethical system in an organization. The HR department should also make use of several other ethical tools to ensure employees are practicing right-behaviour and fully understand their ethical requirements.

ETHICS IN MARKETING

Morals, standards, values and ethics have becoming more complex in the present modern society and the concept of absolutes is taken away by ambiguity. Before making the decisions, the various alternatives catering to the needs of the business must be checked and their effects on the lives of the employees must be considered.

Marketing refers to the application of marketing ethics into the marketing process. Marketing ethics has the potential to benefit society as a whole, both in the short- and long-term. Study of Ethical marketing should be included in applied ethics and involves examination of whether or not an honest and factual representation. Marketing ethics has influenced companies and their response to market their products in a more socially responsible way, the increasing trend of fair trade is an example of the impact of ethical marketing

The business ethics related to marketing mainly put attention on the social and ecological responsibilities of the companies within the society. Ethics are now becoming one of the most important internal concerns for the companies.

Ethics are a collection of principles of right conduct that shape the decisions people or organizations make. Practicing ethics in marketing means deliberately applying standards of fairness, or moral rights and wrongs, to marketing decision making, behaviour, and practice in the organization.

In a market economy, a business may be expected to act in what it believes to be its own best interest. The purpose of marketing is to create a competitive advantage. An organization achieves an advantage when it does a better job than its competitors at satisfying the product and service requirements of its target markets. Those organizations that develop a competitive advantage are able to satisfy the needs of both customers and the organization.Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.

Marketing practices are deceptive if customers believe they will get more value from a product or service than they actually receive. Deception can take the form of a misrepresentation, omission, or misleading practice, can occur when working with any element of the marketing. Because consumers are exposed to great quantities of information about products and firms, they often become sceptical of marketing.

Ethical marketing is less of a marketing strategy and more of a philosophy that informs all marketing efforts. It seeks to promote honesty, fairness, and responsibility in all advertising. Ethics is a notoriously difficult subject because everyone has subjective judgments about what is “right” and what is “wrong.” For this reason, ethical marketing is not a hard and fast list of rules, but a general set of guidelines to assist companies as they evaluate new marketing strategies.

The philosophy of marketing is not lost with this newfound ethical slant, but rather hopes to win customer loyalty 

It is impossible to claim that any company is completely ethical or unethical. Ethics resides in a gray area with many fine lines and shifting boundaries. Many companies behave ethically in one aspect of their advertising and unethically in another.

Unethical practices in marketing involves - Pricing lack of clarity in pricing, Dumping, Price fixing cartels, Encouraging people to claim prizes when they phoning premium rate numbers, Counterfeit goods and brand piracy, Copying the style of packaging in an attempt to mislead consumers, Deceptive advertising, Irresponsible issue of credit cards and the irresponsible raising of credit limits, Unethical practices in market research and competitor intelligence