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By
Prof. Nikhil Bangde
(S. B. Jain Institute of Technology, Research &
Management, Nagpur)
Business Ethics
Module V- Environment Ethics
This Unit will help You
[Course Outcome (CO)]
To Analyze:
Infer the environmental social
responsibility by an organization
Prof. Nikhil Bangde, Asst. Professor, SBJITMR
Environmental Ethics
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
• Application of ethical standards to relationships between
human and nonhuman entities
• Environmental ethics is related to environmental
philosophy & defines what is right and wrong at
ecological level. It is more a moral binding than legal
compulsions
• Environmental ethics is the discipline that studies the
moral relationship of human beings and also the value &
moral status of the environment and its nonhuman
contents
• Study of the ethical basis of environment or discussion
of the ethical basis of environmental protection
India’s Environment Policy
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
• There are two main article’s in India’s Constitution which
have direct implications for environmental protection
• Nodal agency in India which is responsible for the protection
of environment & wildlife is the Union Ministry of
Environment, Forests and Climate Change (MoEFCC)
• Responsibility of framing and implementing the national
environmental policy of India rests with the MoEFCC
Article Description
Article 48A Protection and improvement of environment and
safeguarding of forests and wildlife: The State shall endeavor
to protect and improve the environment and to safeguard the
forests and wildlife of the country
Article 51A
(g)
Fundamental Duties: It shall be the duty of every citizen of
India to protect and improve the natural environment
including forests, lakes, rivers and wild life, and to have
compassion for living creatures.
India’s Environment Policy
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
Policies Made in India other than NEP,2006:
• Environment Protection Act 1986
• National Forest Policy, 2008
• National Conservation Strategy And Policy Statement
On Environment And Development, 1992
• Policy Statement On Abatement Of Pollution, 1992
But the main policy regarding Environment in India is
National Environment Policy, 2006
National Environment Policy (NEP),
2006
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
 Formulated in 2006, Ministry of Environment and Forest,
GoI
 NEP seeks to extend the coverage, and fill in gaps that
still exist, in other policies. It does not displace, but
builds on the earlier policies
 Dominant theme of this policy is that while conservation
of environmental resources is necessary to secure
livelihoods & well being of all. The most secure basis of
conservation is to ensure that people depend on
particular resources to obtain better livelihoods from the
fact of conservation rather than the degradation of the
National Environment Policy (NEP),
2006
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
OBJECTIVES
Conservation of
Critical
Environmental
Resources
To protect & conserve critical ecological systems and
resources, invaluable natural and man-made heritage,
which are essential for life support, livelihoods, economic
growth & a broad conception of human well-being
Intra-generational
Equity: Livelihood
Security for the Poor
To ensure equitable access to environmental resources and
quality for all sections of society, also ensure that poor
communities, which are most dependent on environmental
resources for their livelihoods, are assured secure access
to these resources
Inter-generational
Equity
To ensure judicious use of environmental resources to meet
the needs & aspirations of the present and future
generations
Integration of
Environmental
Concerns in
Economic & Social
Development
To integrate environmental concerns into policies, plans,
programmes, and projects for economic and social
development.
National Environment Policy (NEP),
2006
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
OBJECTIVES (contd..)
Efficiency in
Environmental
Resource use
To ensure efficient use of environmental resources in the
sense of reduction in their use per unit of economic output,
to minimize adverse environmental impacts
Environmental
Governance
To apply principles of good governance (transparency,
rationality, accountability, reduction in time and costs,
participation, and regulatory independence) to the
management and regulation of use of environmental
resources
Enhancement of
Resources for
Environmental
Conservation
To ensure higher resource flows, comprising finance,
technology, management skills, traditional knowledge, and
social capital, for environmental conservation through
mutually beneficial multi-stakeholder partnerships between
local communities, public agencies, the academic and
research community, investors, and multilateral and
bilateral development partners.
2006
Principles
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
i. Human Beings are at the Centre of Sustainable
Development Concerns
ii. Right to Development:
Equitably meet developmental and environmental needs of present and
future generations
iii. Environmental Protection is an Integral part of Development
Process
iv. Precautionary Approach
v. Economic Efficiency:
Polluters Pay: Impacts of acts of production and consumption of one
party may be visited on third parties who do not have a direct economic
nexus with the original act. Such impacts are termed “externalities”, so
polluters have to pay
Cost Minimization: When the economic valuation of the impact on
environment of a development activity cannot be calculated, the
2006
Principles (Contd..)
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
vi. Entities with “Incomparable” Values
Economic valuations & cost-benefit analyses for utilizing/exploiting some
natural resources (tiger population) or build heritage(Taj Mahal) simply
cannot be done, since these are incomparable resources
vii. Equity
All human beings must be given equitable access to nature and natural
resources
viii. Legal Liability
Any person or company causing harm to the environment must be liable in
the court of law & must be penalized as discussed in the ‘polluter pays’
principle
ix. Public Trust Doctrine
State is not an absolute owner but only a trustee of the natural resource
wealth of the country
x. Decentralization
2006
Principles (Contd..)
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
xi. Integration
Inclusion of environmental consideration in sectoral policymaking across
all sectors & strengthening of linkages between various agencies at
Central, State & Local levels is required for ensuring sustainable
development
xii. Environmental Standard Setting
Such as risks to human health, risk to other environmental entities,
technical feasibilities etc
xiii. Preventive action
xiv. Environmental Offsetting
NEP provides provisions for exceptional cases where endangered
species or natural systems required for supporting life cannot be protected
for some reason. In this case, policy advocates that cost-effective
offsetting measures must be undertaken to restore and/or reclaim the
damages so that the lost environmental services are returned to the public
Environment Risk Management
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
• Environmental risk management seeks to determine
what environmental risks exist and then determine how
to manage those risk in a way best suited to protect
human health & environment.
Ex: i. orHow much of a substance a company may discharge into
river
ii. Deciding which substances may be stored at a hazardous
disposal facility
iii. Setting permit levels for discharge
• Risk assessment provides information on potential
health or ecological risks
&
Risk management is the action taken based on
consideration of that and other information like Political
factors, Economic factors, Social factors, Technological
factors and Legal factors
Environmental Audit
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
• According to International Chamber of Commerce
“Envt. Audit is a mgmt tool comprising systematic,
documented, periodic & objective evaluation of how
well environmental organisation, mgmt, equipment
are performing
With the aim of helping to safeguard the envt. by
facilitating mgmt control of practices & assessing
compliance with company policies, which would
include regulatory requirements & stds. applicable”
Environmental Audit
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
Features
• Management tool
• Environmental Impact
Assessment (EIA)
• Systematic process
• Documented & Periodic
• Objective evaluation
• Environmental
performance
Objectives
 Improve environmental
performance
 Assist facility management
 Increase overall level of
environmental awareness
 Development of environmental
management control system
 Improve risk management
systems
 Protect corporation from
potential liabilities
 Develop a basis for optimizing
Types of Environmental Audit
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
Environmental Compliance Audit
• To provide
assurance that
organizational
activities are
conducted in
accordance
Environmental Performance Audit
• To assess
whether an
organisation
meets its
environmental
objectives & is
Environmental Financial Audit
• To enable an
auditor to
establish
whether
reporting entity
has
Ethics on Sale by
Marketers
Prof. Nikhil Bangde, Asst. Professor, SBJITMR
Ethics in Marketing/ Beyond the 4
P’s
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
• Ethical marketing is about making marketing decisions
that are morally right.
• Marketing ethics is an area that deals with the moral
principles behind marketing.
• Ethics in marketing applies to different spheres such as
in product, pricing, placing (distribution), promotion
(advertising & social media etc.
• Unethical marketing can send wrong signals about the
products & services, destroy the brand’s reputation, &
possibly legal problems
Area/Code Of Ethics in Marketing
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
Responsibility
of the Marketer
Honesty &
Fairness
In Marketing
Research
In Product
development &
Management
In Promotions In Distribution
In Pricing
Area/Code Of Ethics in Marketing
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
i. Responsibility of the Marketer
• Marketers must accept responsibility for consequences of
their activities
• Effort must be made to ensure that their decisions,
recommendations & actions are able to identify, serve &
satisfy the customers and society
ii. Honesty & Fairness
• Marketers should be honest & fair in serving consumers,
clients, employees, suppliers, distributors and the public
iii. In the area of Marketing Research
 Prohibiting selling under the guise of conducting research
 Maintaining research integrity by avoiding misrepresentation
Area/Code Of Ethics in Marketing
(Contd..)
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
iv. In the area of Product development & Management
• Disclosure of all substantial risks associated with
product/service usage
• Identification of substitution of any product component that
might materially change the product or impact on the buyer's
purchase decision
• Identification of extra cost-added features in the product
v. In the area of promotions
• Avoiding of false and misleading advertising
• Rejecting the high-pressure manipulations or misleading
sales tactics
Area/Code Of Ethics in Marketing
(Contd..)
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
vi. In the area of distribution
• Not manipulating the availability of product for the purpose of
exploitation
• Not using coercion or threat in the marketing channel
• Not exerting undue influence over the retailer, wholesaler
etc.
vii. In the area of pricing
• Not engaging in price fixing
• Not practicing predatory pricing
• Disclosing the full price associated with any purchase
Unethical Marketing Practices
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
i. Making false, exaggerated or unverified claim
ii. Distortion of facts to mislead or confuse potential
buyers
iii. Concealing side effects of products or services
iv. Criticizing rival products
v. Using fear tactics
vi. Plagiarism of marketing messages
vii. Exploitation
viii. Discriminating people of different races, age, sex
or religion
Is it Ethical?
McDonald’s
targeting Children
via cartoons
&
Youth via Social
Media
Prof. Nikhil Bangde, Asst. Professor, SBJITMR
Ethics in HRM
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
• Ethics in HRM indicates the treatment of employees
with ordinary decency & distributive justice
• Ethical business contributes to the business goals
as employees feel motivated and they will work with
efficiency and effectiveness
• It basically deals with the affirmative moral
obligations of the employer towards employees to
maintain equality & justice
Areas of HRM Ethics
Basic Human
Rights, Civil
&
Employment
right
(Job security)
Safety in
workplace
Justifiable
treatment of
employees
(Equal
opportunity)
Respect,
Fairness &
Honest
based
process in
workplaces
Privacy
Role of HR in Promoting Ethics
Prof. Nikhil Bangde, Asst.
Professor, SBJITMR
Role
of HR
Improve
recruitment
& selection
tests
Conduct
Ethics
Training
Avoid
discrimination
amongst
employees
Rewards &
Disciplinary
system
(Ex: Performance
Appraisal)
Improve &
facilitate two
way
communicatio
n
Unethical HRM Practices
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR
i. Creating split in union leaders
ii. Biased attitude in selection, transfer, promotion etc.
iii. Off-shoring & exploiting cheap labour markets (Nike
Example)
iv. Child Labour
v. Physical violence
vi. Coercion
vii. Longer and inflexible working hours
viii. Putting on more stress on employee for increasing the
productivity
ix. Reneging on company pension agreements
This Unit will help You
[Course Outcome (CO)]
To Analyze:
Infer the environmental social
responsibility by an organization
Prof. Nikhil Bangde, Asst. Professor,
SBJITMR

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Module V Environment Ethics

  • 1. By Prof. Nikhil Bangde (S. B. Jain Institute of Technology, Research & Management, Nagpur) Business Ethics Module V- Environment Ethics
  • 2. This Unit will help You [Course Outcome (CO)] To Analyze: Infer the environmental social responsibility by an organization Prof. Nikhil Bangde, Asst. Professor, SBJITMR
  • 3. Environmental Ethics Prof. Nikhil Bangde, Asst. Professor, SBJITMR • Application of ethical standards to relationships between human and nonhuman entities • Environmental ethics is related to environmental philosophy & defines what is right and wrong at ecological level. It is more a moral binding than legal compulsions • Environmental ethics is the discipline that studies the moral relationship of human beings and also the value & moral status of the environment and its nonhuman contents • Study of the ethical basis of environment or discussion of the ethical basis of environmental protection
  • 4. India’s Environment Policy Prof. Nikhil Bangde, Asst. Professor, SBJITMR • There are two main article’s in India’s Constitution which have direct implications for environmental protection • Nodal agency in India which is responsible for the protection of environment & wildlife is the Union Ministry of Environment, Forests and Climate Change (MoEFCC) • Responsibility of framing and implementing the national environmental policy of India rests with the MoEFCC Article Description Article 48A Protection and improvement of environment and safeguarding of forests and wildlife: The State shall endeavor to protect and improve the environment and to safeguard the forests and wildlife of the country Article 51A (g) Fundamental Duties: It shall be the duty of every citizen of India to protect and improve the natural environment including forests, lakes, rivers and wild life, and to have compassion for living creatures.
  • 5. India’s Environment Policy Prof. Nikhil Bangde, Asst. Professor, SBJITMR Policies Made in India other than NEP,2006: • Environment Protection Act 1986 • National Forest Policy, 2008 • National Conservation Strategy And Policy Statement On Environment And Development, 1992 • Policy Statement On Abatement Of Pollution, 1992 But the main policy regarding Environment in India is National Environment Policy, 2006
  • 6. National Environment Policy (NEP), 2006 Prof. Nikhil Bangde, Asst. Professor, SBJITMR  Formulated in 2006, Ministry of Environment and Forest, GoI  NEP seeks to extend the coverage, and fill in gaps that still exist, in other policies. It does not displace, but builds on the earlier policies  Dominant theme of this policy is that while conservation of environmental resources is necessary to secure livelihoods & well being of all. The most secure basis of conservation is to ensure that people depend on particular resources to obtain better livelihoods from the fact of conservation rather than the degradation of the
  • 7. National Environment Policy (NEP), 2006 Prof. Nikhil Bangde, Asst. Professor, SBJITMR OBJECTIVES Conservation of Critical Environmental Resources To protect & conserve critical ecological systems and resources, invaluable natural and man-made heritage, which are essential for life support, livelihoods, economic growth & a broad conception of human well-being Intra-generational Equity: Livelihood Security for the Poor To ensure equitable access to environmental resources and quality for all sections of society, also ensure that poor communities, which are most dependent on environmental resources for their livelihoods, are assured secure access to these resources Inter-generational Equity To ensure judicious use of environmental resources to meet the needs & aspirations of the present and future generations Integration of Environmental Concerns in Economic & Social Development To integrate environmental concerns into policies, plans, programmes, and projects for economic and social development.
  • 8. National Environment Policy (NEP), 2006 Prof. Nikhil Bangde, Asst. Professor, SBJITMR OBJECTIVES (contd..) Efficiency in Environmental Resource use To ensure efficient use of environmental resources in the sense of reduction in their use per unit of economic output, to minimize adverse environmental impacts Environmental Governance To apply principles of good governance (transparency, rationality, accountability, reduction in time and costs, participation, and regulatory independence) to the management and regulation of use of environmental resources Enhancement of Resources for Environmental Conservation To ensure higher resource flows, comprising finance, technology, management skills, traditional knowledge, and social capital, for environmental conservation through mutually beneficial multi-stakeholder partnerships between local communities, public agencies, the academic and research community, investors, and multilateral and bilateral development partners.
  • 9. 2006 Principles Prof. Nikhil Bangde, Asst. Professor, SBJITMR i. Human Beings are at the Centre of Sustainable Development Concerns ii. Right to Development: Equitably meet developmental and environmental needs of present and future generations iii. Environmental Protection is an Integral part of Development Process iv. Precautionary Approach v. Economic Efficiency: Polluters Pay: Impacts of acts of production and consumption of one party may be visited on third parties who do not have a direct economic nexus with the original act. Such impacts are termed “externalities”, so polluters have to pay Cost Minimization: When the economic valuation of the impact on environment of a development activity cannot be calculated, the
  • 10. 2006 Principles (Contd..) Prof. Nikhil Bangde, Asst. Professor, SBJITMR vi. Entities with “Incomparable” Values Economic valuations & cost-benefit analyses for utilizing/exploiting some natural resources (tiger population) or build heritage(Taj Mahal) simply cannot be done, since these are incomparable resources vii. Equity All human beings must be given equitable access to nature and natural resources viii. Legal Liability Any person or company causing harm to the environment must be liable in the court of law & must be penalized as discussed in the ‘polluter pays’ principle ix. Public Trust Doctrine State is not an absolute owner but only a trustee of the natural resource wealth of the country x. Decentralization
  • 11. 2006 Principles (Contd..) Prof. Nikhil Bangde, Asst. Professor, SBJITMR xi. Integration Inclusion of environmental consideration in sectoral policymaking across all sectors & strengthening of linkages between various agencies at Central, State & Local levels is required for ensuring sustainable development xii. Environmental Standard Setting Such as risks to human health, risk to other environmental entities, technical feasibilities etc xiii. Preventive action xiv. Environmental Offsetting NEP provides provisions for exceptional cases where endangered species or natural systems required for supporting life cannot be protected for some reason. In this case, policy advocates that cost-effective offsetting measures must be undertaken to restore and/or reclaim the damages so that the lost environmental services are returned to the public
  • 12. Environment Risk Management Prof. Nikhil Bangde, Asst. Professor, SBJITMR • Environmental risk management seeks to determine what environmental risks exist and then determine how to manage those risk in a way best suited to protect human health & environment. Ex: i. orHow much of a substance a company may discharge into river ii. Deciding which substances may be stored at a hazardous disposal facility iii. Setting permit levels for discharge • Risk assessment provides information on potential health or ecological risks & Risk management is the action taken based on consideration of that and other information like Political factors, Economic factors, Social factors, Technological factors and Legal factors
  • 13. Environmental Audit Prof. Nikhil Bangde, Asst. Professor, SBJITMR • According to International Chamber of Commerce “Envt. Audit is a mgmt tool comprising systematic, documented, periodic & objective evaluation of how well environmental organisation, mgmt, equipment are performing With the aim of helping to safeguard the envt. by facilitating mgmt control of practices & assessing compliance with company policies, which would include regulatory requirements & stds. applicable”
  • 14. Environmental Audit Prof. Nikhil Bangde, Asst. Professor, SBJITMR Features • Management tool • Environmental Impact Assessment (EIA) • Systematic process • Documented & Periodic • Objective evaluation • Environmental performance Objectives  Improve environmental performance  Assist facility management  Increase overall level of environmental awareness  Development of environmental management control system  Improve risk management systems  Protect corporation from potential liabilities  Develop a basis for optimizing
  • 15. Types of Environmental Audit Prof. Nikhil Bangde, Asst. Professor, SBJITMR Environmental Compliance Audit • To provide assurance that organizational activities are conducted in accordance Environmental Performance Audit • To assess whether an organisation meets its environmental objectives & is Environmental Financial Audit • To enable an auditor to establish whether reporting entity has
  • 16. Ethics on Sale by Marketers Prof. Nikhil Bangde, Asst. Professor, SBJITMR
  • 17. Ethics in Marketing/ Beyond the 4 P’s Prof. Nikhil Bangde, Asst. Professor, SBJITMR • Ethical marketing is about making marketing decisions that are morally right. • Marketing ethics is an area that deals with the moral principles behind marketing. • Ethics in marketing applies to different spheres such as in product, pricing, placing (distribution), promotion (advertising & social media etc. • Unethical marketing can send wrong signals about the products & services, destroy the brand’s reputation, & possibly legal problems
  • 18. Area/Code Of Ethics in Marketing Prof. Nikhil Bangde, Asst. Professor, SBJITMR Responsibility of the Marketer Honesty & Fairness In Marketing Research In Product development & Management In Promotions In Distribution In Pricing
  • 19. Area/Code Of Ethics in Marketing Prof. Nikhil Bangde, Asst. Professor, SBJITMR i. Responsibility of the Marketer • Marketers must accept responsibility for consequences of their activities • Effort must be made to ensure that their decisions, recommendations & actions are able to identify, serve & satisfy the customers and society ii. Honesty & Fairness • Marketers should be honest & fair in serving consumers, clients, employees, suppliers, distributors and the public iii. In the area of Marketing Research  Prohibiting selling under the guise of conducting research  Maintaining research integrity by avoiding misrepresentation
  • 20. Area/Code Of Ethics in Marketing (Contd..) Prof. Nikhil Bangde, Asst. Professor, SBJITMR iv. In the area of Product development & Management • Disclosure of all substantial risks associated with product/service usage • Identification of substitution of any product component that might materially change the product or impact on the buyer's purchase decision • Identification of extra cost-added features in the product v. In the area of promotions • Avoiding of false and misleading advertising • Rejecting the high-pressure manipulations or misleading sales tactics
  • 21. Area/Code Of Ethics in Marketing (Contd..) Prof. Nikhil Bangde, Asst. Professor, SBJITMR vi. In the area of distribution • Not manipulating the availability of product for the purpose of exploitation • Not using coercion or threat in the marketing channel • Not exerting undue influence over the retailer, wholesaler etc. vii. In the area of pricing • Not engaging in price fixing • Not practicing predatory pricing • Disclosing the full price associated with any purchase
  • 22. Unethical Marketing Practices Prof. Nikhil Bangde, Asst. Professor, SBJITMR i. Making false, exaggerated or unverified claim ii. Distortion of facts to mislead or confuse potential buyers iii. Concealing side effects of products or services iv. Criticizing rival products v. Using fear tactics vi. Plagiarism of marketing messages vii. Exploitation viii. Discriminating people of different races, age, sex or religion
  • 23. Is it Ethical? McDonald’s targeting Children via cartoons & Youth via Social Media Prof. Nikhil Bangde, Asst. Professor, SBJITMR
  • 24. Ethics in HRM Prof. Nikhil Bangde, Asst. Professor, SBJITMR • Ethics in HRM indicates the treatment of employees with ordinary decency & distributive justice • Ethical business contributes to the business goals as employees feel motivated and they will work with efficiency and effectiveness • It basically deals with the affirmative moral obligations of the employer towards employees to maintain equality & justice
  • 25. Areas of HRM Ethics Basic Human Rights, Civil & Employment right (Job security) Safety in workplace Justifiable treatment of employees (Equal opportunity) Respect, Fairness & Honest based process in workplaces Privacy
  • 26. Role of HR in Promoting Ethics Prof. Nikhil Bangde, Asst. Professor, SBJITMR Role of HR Improve recruitment & selection tests Conduct Ethics Training Avoid discrimination amongst employees Rewards & Disciplinary system (Ex: Performance Appraisal) Improve & facilitate two way communicatio n
  • 27. Unethical HRM Practices Prof. Nikhil Bangde, Asst. Professor, SBJITMR i. Creating split in union leaders ii. Biased attitude in selection, transfer, promotion etc. iii. Off-shoring & exploiting cheap labour markets (Nike Example) iv. Child Labour v. Physical violence vi. Coercion vii. Longer and inflexible working hours viii. Putting on more stress on employee for increasing the productivity ix. Reneging on company pension agreements
  • 28. This Unit will help You [Course Outcome (CO)] To Analyze: Infer the environmental social responsibility by an organization Prof. Nikhil Bangde, Asst. Professor, SBJITMR