ETHICAL AND UNETHICAL PRACTICES IN HUMAN RESOURCES, FINANCE AND MARKETING.
** ETHICAL AND UNETHICAL PRACTICES IN HUMAN RESOURCES **
HUMAN RESOURCES (HR) :-
Human resource is an management function that helps managers recruit, select, train and development members for an organisation.
Ethical issues faced by Human resources are as follows:-
1) SOCIETAL OBJECTIVE-
To be ethically and socially responsible to the needs and challenges of the society while minimising the negative impact of such demands upon the organisation.
Example : The society may limit HR decisions through laws that enforce reservation in hiring and laws that address discrimination, safety or other such areas of society concern.
2) TRAINING AND DEVELOPMENT -
The training and development programme should cover the number of trainees required, training and development programme necessary for the existing staff, identification of resources personnel for conducting development programme, frequency of training and development programme and budget allocation for such programmes.
3) RECRUITMENT, SELECTION AND PLACEMENT -
After the job vacancies are known, efforts must be made to identify sources and search for suitable candidates. The selection programme should be professionally designed and, among other considerations, special care must be taken to ensure compliance with the reservation policies of the government.
4) JOB EVALUATION -
Job evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Relative worth is determined mainly on the basis of job description and job specification.
5) SAFETY AND HEALTH -
The process of conducting a detailed job analysis provides and excellent opportunity to uncover and identify hazardous conditions and unhealthy environmental factors such as heat, noise, fumes and dust, so that corrective measures can be taken to minimise and avoid the possibility of human injury.
* ETHICAL AND UNETHICAL PRACTICES IN FINANCE *
FINANCE - Finance is a field that is concerned with the allocation of assets and liabilities over space and time, often under conditions of risk or uncertainty. Finance can also be defined as the art of money management.
ETHICAL ISSUES IN FINANCE :
1) ACCURACY :
A companies financial manager ensures that all financial publications accurately and fairly reflect the financial financial condition of the company. Accounting errors and financial fraud, such as hwat was seen in the cases of Enron and World Com, damage the interest of of shareholders, employees and affect confidence in the financial system .
2) TRANSPARENCY :
Financial documents reflects a company,s performance relative to its peers , and its internal strengths and weaknesses. Regulatory agencies require publicly traded companies to submit periodic financial statements and make full disclosures of material information.
3) TIMELINESS :
Timely financial information is just as important as accurate and transparent information. Management, investors and other stakeholders required timely information to make the right decisions.
EXAMPLE - A company should promptly disclose manufacturing problems that could temporarily affect sales.
ROLE OF ETHICS
Ethics plays an important role in finance and sources of ethical behavioural in finance and accounting can be from the following:-
a) Code of Conduct for Accountant and Auditors.
b) Code of Conduct for Merchant Bankers.
c) Code of Conduct for Insurance Agent.
d) Code of Conduct for Brokers and Members.
*ETHICAL AND UNETHICAL PRACTICES IN MARKETING*
MARKETING:
The marketing refers to the set of actions, or tactics, that a company uses to promote its brands or product in the market. The 4Ps make up a typical marketing mix are as follows :
1) PRICE:-
Price refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factor that has several types of pricing strategies each tied in with an overall business plan.
2) PRODUCT :
It refers to the item actually being sold. The product must deliver a minimum level of performance , otherwise even the best work on the other elements of the marketing mix won,t do any good.
3) PLACE :
It refers to the point of sales. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location'.
4)PROMOTION :
This refers to all the activities undertaken to make the product or service known to the users and trade. This can include advertising, word of mouth, pres reports, incentives etc. It can also include consumer schemes, direct marketing, contests and prizes.
** ETHICAL AND UNETHICAL PRACTICES IN HUMAN RESOURCES **
Human resource is an management function that helps managers recruit, select, train and development members for an organisation.
Ethical issues faced by Human resources are as follows:-
1) SOCIETAL OBJECTIVE-
To be ethically and socially responsible to the needs and challenges of the society while minimising the negative impact of such demands upon the organisation.
Example : The society may limit HR decisions through laws that enforce reservation in hiring and laws that address discrimination, safety or other such areas of society concern.
2) TRAINING AND DEVELOPMENT -
The training and development programme should cover the number of trainees required, training and development programme necessary for the existing staff, identification of resources personnel for conducting development programme, frequency of training and development programme and budget allocation for such programmes.
3) RECRUITMENT, SELECTION AND PLACEMENT -
After the job vacancies are known, efforts must be made to identify sources and search for suitable candidates. The selection programme should be professionally designed and, among other considerations, special care must be taken to ensure compliance with the reservation policies of the government.
4) JOB EVALUATION -
Job evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Relative worth is determined mainly on the basis of job description and job specification.
5) SAFETY AND HEALTH -
The process of conducting a detailed job analysis provides and excellent opportunity to uncover and identify hazardous conditions and unhealthy environmental factors such as heat, noise, fumes and dust, so that corrective measures can be taken to minimise and avoid the possibility of human injury.
* ETHICAL AND UNETHICAL PRACTICES IN FINANCE *
FINANCE - Finance is a field that is concerned with the allocation of assets and liabilities over space and time, often under conditions of risk or uncertainty. Finance can also be defined as the art of money management.
ETHICAL ISSUES IN FINANCE :
1) ACCURACY :
A companies financial manager ensures that all financial publications accurately and fairly reflect the financial financial condition of the company. Accounting errors and financial fraud, such as hwat was seen in the cases of Enron and World Com, damage the interest of of shareholders, employees and affect confidence in the financial system .
2) TRANSPARENCY :
Financial documents reflects a company,s performance relative to its peers , and its internal strengths and weaknesses. Regulatory agencies require publicly traded companies to submit periodic financial statements and make full disclosures of material information.
3) TIMELINESS :
Timely financial information is just as important as accurate and transparent information. Management, investors and other stakeholders required timely information to make the right decisions.
EXAMPLE - A company should promptly disclose manufacturing problems that could temporarily affect sales.
ROLE OF ETHICS
Ethics plays an important role in finance and sources of ethical behavioural in finance and accounting can be from the following:-
a) Code of Conduct for Accountant and Auditors.
b) Code of Conduct for Merchant Bankers.
c) Code of Conduct for Insurance Agent.
d) Code of Conduct for Brokers and Members.
*ETHICAL AND UNETHICAL PRACTICES IN MARKETING*
MARKETING:
The marketing refers to the set of actions, or tactics, that a company uses to promote its brands or product in the market. The 4Ps make up a typical marketing mix are as follows :
1) PRICE:-
Price refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factor that has several types of pricing strategies each tied in with an overall business plan.
2) PRODUCT :
It refers to the item actually being sold. The product must deliver a minimum level of performance , otherwise even the best work on the other elements of the marketing mix won,t do any good.
3) PLACE :
It refers to the point of sales. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location'.
4)PROMOTION :
This refers to all the activities undertaken to make the product or service known to the users and trade. This can include advertising, word of mouth, pres reports, incentives etc. It can also include consumer schemes, direct marketing, contests and prizes.
