1. Ethics in Functional Areas of an Organisation
1. Marketing Ethics
2. Finance Ethics
3. Accounting Ethics
4. Human Resource Management
5. Management information system
6. Production and Operations
7. Environmental Ethics

2. Marketing Ethics What is Marketing Ethics ? .
Principles and standards that define acceptable marketing conduct as determined by various stakeholders.
Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.
Companies need to develop corporate marketing policies that will serve as a broad guidelines that everyone in the organization must follow.
Good ethics is a cornerstone of sustainable marketing. .

3. Marketing Ethics What is Marketing Ethics ? .
Marketing ethics, regardless of the product offered or the market targeted, sets the guidelines for which good marketing is practiced.
When companies create high ethical standards upon which to approach marketing they are participating in ethical marketing.
To market ethically and effectively one should be reminded that all marketing decisions and efforts are necessary to meet and suit the needs of all stakeholders, competitor, community, customers, suppliers and the environment.
Ethical behavior should be enforced throughout company culture and through company practices. .

4. 1. Salespeople 2. Marketing Research Marketing Ethics
a. Distortions- misleading information
b. Use of personal charisma to sell
c. Use of connections or threats
d. Get salesperson to get in debt so they sell more
2. Marketing Research
a. Distort findings to fit own views
b. Pretend to be a study when it is really a sales pitch
c. Report surveys not held or ask leading questions

5. Marketing Ethics 3. Deceptive Advertising and Puffing a. Lies
b. Puffing- an exaggeration of the benefits through the selling process
c. Puffing can be illegal if:
there is a probability of deception for most consumers
a reasonable consumer would believe the deception
the material would have you believe what is printed
d. Deception can be beneficial, decreases cognitive dissonance
e. Subliminal advertising and packaging
message presented below the perception threshold, message in cloud or picture ad, message in shape of package, double meaning words “take it all off,” “fly me,” “my men wear English leather or nothing at all”

6. Marketing Ethics 4 Product Offerings 5. Pricing a. Dangerous products
b. Cause social or physical harm
5. Pricing
a. Quote an original or normal price that is sometimes dishonest
b. Two for one price--consumer distorts as two for one
c. Odd pricing $1.98
d. Price breaks--trade up, sell additional features
e. Bait and switch- never intend to sell the low-priced product
f. Package to price (eg., Hershey reduced size of candy bar instead of increasing price)
g. High price for a short period then quote old price to show appeal for the low price

7. Marketing Ethics 6. Consumers
a. Safe goods: information about product quality, safety, content, usage purposes
b. Right to choose
c. Right to be heard
d. Right to compensation

8. Finance Ethics What is Finance Ethics?
Ethics in Finance skillfully explains the need for ethics in the personal conduct of finance professionals and the operation of financial markets and institutions.
Finance Ethics include;
Financial statements
Hostile Takeovers
Financial Markets
Insider Trading

9. Finance Ethics Fraud in Financial Statements Fictitious Revenues
Concealed Liabilities and Expenses
Fraudulent Asset Valuations
Improper or Fraudulent Disclosures or Omissions
Creative accounting – form of fraudulent financial reporting so as to provide misleading information.

10. Finance Ethics Ethical Issues in Financial Markets
Deception: act of misrepresenting relevant information
Churning: excessive or inappropriate trading for clients account by a broker who has control over the account with intent to generate commissions rather than to benefit client
Unsuitability
Unfairness in Markets

11. Finance Ethics Insider Trading
Buying and selling of a company shares on the basis of “inside” information. This information is normally available to company executives, consultants, auditors and their friends and relatives.
Refers to trading on price sensitive information by company employees or individuals closely connected with the firm
This information has not been disclosed to other market participants (public)
Insider Trading

12. Finance Ethics Ethics & Insider Trading
It violates equality of opportunity
Does not give a level playing field between insiders and outsiders
Might harm exchange as a whole because investors might not be willing to trade on exchange that does not give shareholders their rights.

13. Finance Ethics Hostile Takeovers
Are those that elicit opposition from the boards or employees of a target company
Reasons for opposition are as follows:
Disagreements over price
Protecting their own interests

14. Finance Ethics Anti-takeover defense measures Poison Pills Green mail
Golden Parachute
People Pill
Management Buyout

15. Finance Ethics Poison Pills Ethics & Poison Pills
An anti-takeover device used by company’s management to make takeover prohibitively expensive for the bidders
Company under target changes AOA so that group of Shareholders have special rights to buy and sell preferred stock at highly favorable prices (At times below market price)
Ethics & Poison Pills
Poison pills are prohibited in Britain by takeover code because they prevent open competition between bidders for shares
Use of poison pills are ethical if they are designed to protect the management from unwanted takeover bids.

16. Finance Ethics Greenmail Ethics & Greenmail
It occurs where a potential takeover agent purchases stock in a company
After the purchases have totaled five percent the agent must announce his intention to takeover the company, if that is the intent
Stock prices go up in anticipation of takeover battle
Management of target company sends greenmails to prevent a shareholder from taking over the company
Takeover agent ends up selling the shares back to company at an increased or higher negotiated price
Ethics & Greenmail
Target company may be forced to incur debts to raise funds to finance the buy back of shares at premium price

17. Finance Ethics Golden Parachute People Pill
A company gives lucrative benefits to its top executives such as stock options, bonuses etc
Presence of parachute allows management to evaluate takeover bid more objectively
People Pill
Management threatens that in event of a takeover the entire management team will resign
If managers act in their own interest rather than company’s long term value then they are acting unethically

18. Finance Ethics Management Buyout Ethics & Management Buyout
It occurs when management decide to bid for the company
They convert the company into a private company and at a later date, bring it back to market to make substantial profits.
Ethics & Management Buyout
Shareholder believe that management may resort to unethical practices to bring down share prices and buy out at cheaper rate
Unethical activities can involve leaking confidential information by managers for their benefit during buy out

19. Accounting Ethics Accounting Ethics?
Accounting ethics in the field of accounting refers to the guidelines (consisting of judgments and moral values) that a professional needs to follow while practicing accounting.
Accountants are expected to adhere to the set ethical standards which are designed to ensure that they behave in a way which is ethical and consistent.
The people who receive the services of an accounting professional not only rely on his skill and ability, but also on his professional integrity.
People using the service of accounting professionals rely on their professional competency to take decisions and in the process also relies on the ethics followed by them.  
Ethical and professional accounting forms a clear financial image of a business, and allows managers to make informed decisions, keeps investors abreast of developments in the business, and keeps the business profitable

20. Accounting Ethics Unethical Issues in Accounting
There are multiple reasons for which one might consider acting unethically when preparing financial information as follows:
For self-interest—greed.
An accountant may embezzle funds from his or her employer for financial gain.
The Chief Financial Officer of a publicly traded corporation may prepare financial statements to appear as though the company is performing much better than it actually is, because he or she wants their stock portfolio to increase.
An accountant may feel pressured from his or her client to report false information or may be a Chief financial officer is experiencing demand for improvements from the board of directors, the company’s president, owners, or stockholders; or he or she may be in fear of losing his job.
An accountant working in a company where there is conflict of interest. If the accountant is owed money or has a significant stake in a firm, he or she may not be the ideal individual to prepare certain companies’ financial statements.
The failure for an accountant to conduct an in-depth analysis when preparing and revising financial information. There are many individuals who prefer to take short-cuts in life; and frankly, this simply is not acceptable when expected to perform in a professional manor.

21. Accounting Ethics Unethical Accounting Practices
Misappropriation of Cash Receipts and payments.
Misappropriation of cash is easier in big organizations when owners or top managers have no time to keep close watch on persons handling cash.
Receipts.
Non -recording of cash sales and embezzling the money so received
Misappropriation of cash from unusual sources such as donations and gifts
Under recording or recording only part of the cash sales and pocketing the balance
Misappropriation of cash received on miscellaneous eg. recovery of bad debt
Misappropriation of money received on discounting bills

22. Accounting Ethics Misappropriation of Cash Receipts and Payments.
Recording of false cash purchases and pocketing the amount
Recoding cash purchases at a higher figure than actual amount and pocketing the difference
Recording payment of cash which are not made at all
Recording payment of some account at a figure higher than the actual payment and pocketing the difference

23. Accounting Ethics 2.Misappropriation Of Goods
Misappropriation of goods means wrongful conversion or fraudulent appropriation by those who handle the goods.
This usually involves goods which are small in size but high in value such as watches, jewelry, spare parts etc.
Goods can be Misappropriated by actual theft.
By supplying more than what is stated in the invoice and privately receiving the difference.
Recording purchased of higher quantity than what is actually supplied
Controlling Misappropriation Of Goods.
Proper methods of keeping accounts of purchases and sales.
Periodic stock -taking, stock -checking, strict internal checking and control .
Cross checking.

24. 3.Fraudlent Manipulation Of Account
Accounting Ethics
3.Fraudlent Manipulation Of Account
Manipulation of account is fraud, normally done by officers on the advice of top management
Objectives Of Manipulation Of Accounts
1. To show more profit than what is actually is so that
Top management may be retained by showing more profit.
Obtain further Credit from the banks
Top management get more commission
Have their share prices increased which will attract more subscribers to their shares
2. To show less Profit than what is actually is so that
Top management can purchase their company’s share in the market at a lower price

25. Accounting Ethics 3.Fraudlent Manipulation Of Account
Manipulation of account is fraud, normally done by officers on the advice of top management
Objectives Of Manipulation Of Accounts
Reduce or avoid the payment of income tax
Give wrong impressive about the success of the business to their competitors
Withhold the declaration of dividends
Declare law rate of dividend
Reject demand by workers unions
Give wrong impression about the company to competitors.
Ways of Fraudulent Manipulation of account includes:
Deliberate false entries
Erasing entries
Alteration
Not- recording some entries that are factual.

26. Accounting Ethics Ways Of Manipulating Account
Not providing for depreciation on fixed assets
Overvaluation and undervaluation of assets and liabilities
Not recording items of expenses to show higher profit
Recording revenue expenditure as capital expenditure.
Recording fictitious sales & return outwards to show less profit & purchases 7 return inwards
Recording fictitious purchases return inwards to show profit

27. Role Of Auditing Accounting Ethics
Auditing is the examination of books of account and checking the financial statement for the purpose of finding out the true and fair position and results of operation of a concern. 
Auditing work is to be done by independent professional who are honest and sincere to the profession.
The primary objective of the audit is to express an opinion on the financial statements.

28. Accounting Ethics Auditor As A Guide To Ethics
He can suggest to management the proper methods of maintaining accounts relating to purchases and sales of goods, Stock- taking etc.
He can suggest ways for very strict internal Check and control system
He can suggest to management to maintain perpetual inventory
Ho can suggest that management should undertake surprise checking of cash balance
Suggest to management regarding external scrutiny arrangement

29. Human Resource Management Ethics
Human Resource Management is a business function that is concerned with managing relations between groups of people in their capacity as employees, employers and managers.
Inevitably, this process may raise questions about what the respective responsibilities and rights of each party are in this relationship, and about what constitutes fair treatment. These questions are ethical in nature
Human aspect and human relations are applicable anywhere and in any department, hence individual behavior, group behavior, personality, attitudes, perception are some of the factors which have to be taken into account to evaluate fair-unfair, good-bad, or ethical – unethical behavior.

30. Human Resource Management Ethics
Recruitment
Recruitment based on financial favors
Gender based recruitments
Giving less minimum wages as fixed by the state.
Recruitment of under- or over qualified persons
Recruitment without assessing their capabilities

31. Human Resource Management Ethics
Employers:
Creating split in unions.
Not caring for just demands of trade unions
Giving different treatment to different people in the same level.
Bias attitude in selection, transfer, promotions etc

32. Human Resource Management Ethics
b. Employees
False claim of ages, qualification and experience.
Producing fake certificates to obtain jobs.
Taking decisions very slowly or very fast to suit convenience of their own.

33. Human Resource Management Ethics
c. Government Agencies
Announcing the vacancies and not taking actions further
The government methods of selection is best suited to low paid jobs and not senior level post
Functioning of government employment offices is not transparent, not reliable and purpose not well served.

34. Human Resource Management Ethics
Discrimination
Discrimination covers unequal treatment between individuals and groups and between men and women either based on race, gender color religion, nationality and place or origin.
Discrimination Practices
Unequal pay for equal work .
Different wages and salaries for men and women.
Treat handicapped in lower esteem.
Preferences for a particular religion
Delay in promotions.
Faulty screening to avoid particular applicants
Reverse Discrimination
Reverse discrimination is an unfair treatment of a majority groups resulting from preferential policies, as in college admissions or employment, intended to remedy earlier discriminatory policies

35. Human Resource Management Ethics
Restructuring and layoffs
Human resource planning undergoes structuring of departments and these are periodically restructured to the under-listed reasons;
New recruits
Lay off retirement and retrenchment
Promotions and transfer
Change of location, processes and products
Layoffs
Layoff also called redundancy is the temporary suspension or permanent termination of termination of employment of an employee or (more commonly) a group of employees for business reasons, such as when certain positions are no longer necessary or when a business slow-down occurs.

36. Human Resource Management Ethics
Unethical practices in restructuring and layoffs
To remove some employees who do not toe the line of management.
To create situations where in some unwanted employees leave the organization themselves.
Create panic in workers and staff to have an upper hand to deal with union members.
Keep away trouble creators and poor performers. This also serve as warning to others who do not perform well.

37. Human Resource Management Ethics
Sexual harassment
Sexual harassment is intimation, bullying or coercion of a sexual nature, or the unwelcome or inappropriate promise of rewards in exchange for sexual favors
Forms of Sexual harassment
Turning work discussions to sexual topics.
Sexual innuendos or stories.
Asking about sexual fantasies, preferences, or history.
Personal questions about social or sexual life.
Sexual comments about a person's clothing, anatomy, or looks.
Kissing sounds, howling, and smacking lips.
Telling lies or spreading rumors about a person's personal sex life.
Neck massage.
Touching an employee's clothing, hair, or body.
Giving personal gifts.
Hanging around a person.
Hugging, kissing, patting, or stroking.
Touching or rubbing oneself sexually around another person.
Standing close or brushing up against a person.
Looking a person up and down (elevator eyes).
Staring at someone.
Sexually suggestive signals.
Facial expressions, winking, throwing kisses, or licking lips.
Making sexual gestures with hands or through body movements.

38. Human Resource Management Ethics
Prevention of Sexual Harassment
Leadership
De-sexualize the workplace
(Focus on professionalism, not sexuality)
Address/stop sexist behaviors
Ensure people know the policy
Training
Policy
Grievance procedure

39. Human Resource Management Ethics
Whistle Blowing
An attempt of an employee or former of an organization to disclose what he/she believes to be wrong in or by the organization.
Whistle can be internal, external and interpersonal
Condition For Justifying Whistle Blowing
●A product or policy that will commit serious and considerable harm to the public.
●When the employee identifies a serious threat of harm to the consumer, employee, other stakeholder and things against his or her concern
● When immediate supervisors does not act
● Employees must have documented evidence that is convincing to a reasonable
level
● Valid reasons to believe that reveals the wrongdoing to the public

40. Human Resource Management Ethics
Whistle Blowing
Wrong Type Of Whistle Blowing
● In case of disclosing business secrecy, inventions, future plans which are exclusive to the company
● Whenever an employee remarks are irrelevant to the organization work and product
● In case of wrong accusations which cannot be proved
● Complaining against transfer, demotions, when such action is taken ion the basis of routine performance appraisal
Precautions Before Whistle Blowing
● Whistle blowing has consequences of moral, legal, personal, economic, family and career demand.
● Be clear about your 9intentions and likely consequences
● Allegations should be stated appropriately with document
● Take internal route
● Whistle blowing can be done openly or anonymously
● Consult a lawyer about possible legal battle and possible defense mechanisms

41. Human Resource Management Ethics
Alternatives to Whistle Blowing
Create an effective internal grievances system to both present and former employees.
Appreciate employees and even adopt reward system for solving problems through grievances redressed system.
Keep special officers in each unit to study
Punish with heavy fines or retrenchment of employees who indulge in unlawful and corrupt