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Module Name: Ethics and society
Module Code: CSR3204 B
Explain the role of ethics in business organization. Use examples from Mauritian society to support your answer.

Programme: BSc (Hons) Applied Social Sciences with Specialisation in Sociology
Cohort: BSS_S/15B/FT
Bolaky Karuna (151036)Collet Audrey (151039)Mungur Rajeswaree (151046)
Table of content
Introduction to ethics
Its place in business organization
Types of ethics
Role of ethics
Impact of ethics in the workplace
Examples of unethical behavior from Mauritian context
Ethics is based on well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of right, obligations, benefits to society, fairness, or specific virtues (Velasquez et al., 2010). Business Ethics is a system of moral principles applied in the commercial world. Business ethics provide guidelines for acceptable behavior by organizations in both their strategy formulation and day-to-day operations. An ethical approach is becoming necessary both for corporate success and a positive corporate image. A code of conduct has to be respected by all organizational levels and is essential for the proper running of the business. The role of ethics plays a crucial part in business organization and this will be discussed in the following paragraphs.

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Types of ethics
> Confidentiality
Members of staff should keep the maximum intensity of discretion when they trade with investors. Employees should display respect for the confidential nature of educational and professional records. They should confirm that any revelation shall be with suitable approval and in harmony with the regulation constantly preserving the interest of all those whose documents and information they supervise in the implementation of their professional responsibilities (Gragg, 1997). For instance employees of the bank of Mauritius has for policy that members of the public are hereby notified that administrators and workers of financial organisation controlled by the Bank of Mauritius are forbidden under section 64 of the Banking Act 2004 from revealing data concerning the businesses of any of their clients comprising credits, borrowings or trades or other personal, financial or business affairs, without the permission of the client or his private delegate. In order to keep assertion in the banking segment as well as to ward off possible legal and regulatory risks, it is essential that privacy should be preserve in the banking sector. Revelation of private data represents a violation of section 64 of the Act and is an immoral crime which, on condemnation, may perhaps involve a penalty not beyond one million rupees and to incarceration for a period not exceeding 5 years.
> Conflict of interest
Regardless of any status an employee may occupy, if a condition in which delicate and financial contemplation is likely to have an effect or concede any professional behaviour, they have the personal commitment without delay to reveal same, declare interest, and wherever required, retract themselves to prevent any sort of conflict of interests. It could be interrelated to the enrolment of novices and staff, any matter affecting investigations, participation in any board assembly, investment in university, non-academic project, assignment of a contract, or any other situation. Directors must certify that officers affirm interest as and when required as provided in law (Gragg, 1997). For occurrence, the state bank of Mauritius before they employed a person, in the forms to be filled they asked to the person who is applying for a job there. If any of their family members do work at the Sbm bank.
> Transparency and Accountability
Employees are urged to devote themselves towards sincerity and openness in all their doings, campaigns and choice and judgement. Lucidity should be present in all their contracts which at any time could be subject to public scrutiny. In addition, they should acquire a sense of rights and belongingness to whatever duty they are being appointed and be entirely liable for their choices and consequences. They are advised to firmly respect the levels of conduct recognised by the company and account the consequences of their deeds in a translucent and responsible way (Gragg, 1997). For instance I.C.A.C make sure that regularity in the organization function, ensure supervision is detailed and statements are set and presented in a judicious way, make sure concrete and possible circumstances of conflict of interests are immediately testified in script and are dealt with as per the Prevention of Corruption Act and make certain instructions and principles are occurring with.
> Loyalty
Employees need to be trustworthy to the organisation, colleagues and yourself, though working in a convincing ethical area. Loyalty shapes trust, and displays that staff assign a prominent value on improving the benefits of both the business and the co-workers. Never put allegiance beyond other values, or employ it as reason for unethical behaviour. Display loyalty but constantly make an impartial decision, and certainly not use data obtained in confidence for personal improvement. Steer clear of conflicts of interest, and if you ever decide to leave your company do it on the best of terms. Communicate practical remarks, value any data that was obtained in former employer, and never engage in illegal actions (Gragg, 1997).
> Respect &Honesty
Staff members should regulate that, the civil rights of each worker are valued and conserved. They should avoid treating in any such act which put at risk the rights of a worker and they should not be judgmental or victimize against people base on gender, age, colour, disability, socio-cultural and religious back grounds or ethical beliefs. To enhance that an important amount of assistance is kept, employees must discern high requirements of honesty. Fairness and appeal to establish the appropriate conduct of business and a high level of service. They are supposed to provide the community in an equitable and neutral way be courteous, caring and more customer-oriented in
their trades with the public judiciously handy in their transactions with the public To serve members of the society as clients who are call to obtain great levels of service have regard for the circumstances and concerns of the public in performing their official duties and in the making of decisions affecting them, respond in a timely manner to any query from the public, refrain from abusing their position in the institution to promote or prejudice the interest of any political party or interest group, respect and protect every person’s dignity and her/his rights as stipulated in the constitution recognise the public’s rights (Gragg, 1997).
> Integrity
To be fair in business entails preserving a high level of personal integrity. This is how you obtain the reliance of others, whether they are your clients, co-workers or directors. In this description integrity means having a stable personality that is shown by an affiliation of your judgements, words and action. It necessitates to have proper audacity to do the right thing, and it takes inner strength to live up to mistakes and admit when a fault has been made. Even with a numerous difficulty, ethical business directors live by an ethical policy they believe in, principles to maintain and they fight for their beliefs without sacrificing their honour for the sake of just getting a job done (Gragg, 1997).

Roles/importance of ethics in business organization.
Ethical firmness in an organization are subjective by three important aspects: individual moral standards, the influence of managers and co-workers, and the prospect to participate in wrongdoing while you have great power over your own ethics outside the workplace, your co-workers and management team apply important rules throughout your alternatives at work across authority and example. Activities and examples set by co-workers, along with regulations and guidelines created by the company, are significant in increasing reasonable ethical agreement in a firm. If the organisation fails to deliver moral standards and ways for proper behaviour, misunderstandings and divergence will increase and leads to wrong doing actions. If directors or colleagues leave work early, employees may be enticed to do so as well. If a worker is using personal long-distance phone calls at work and alleging them to the company, then other employees will do the same. In addition, having sound personal values contributes to an ethical workplace. Codes of ethics, guidelines on ethics, and ethics training programs develop ethical behaviour because they advise
which action are adequate and which are not, and they reduce the opportunity for misconduct by providing punishments for violations of the rules and standards. The administration of instructions and policies over recompenses and retribution enlarges the approval of ethical standards by employees. (Azam, Jalil& Rahman, 2010)
Ethics corresponds to basic human needs: It is a human characteristic that man requirements to be ethical; not only in personal life but also in business affairs where, being manager, he knows his decisions may have an impact on the lives of thousands of employees. Besides the public wish to be part of a firm which they can value and be openly honoured because they perceive its purpose and activities to be honest and beneficial to the society. Most top managers would like to respond to this need of their employees and they themselves feel an equal need to be sincerely proud of the company, they are directing. These basic-ethical needs require the companies to be ethically oriented. Ethics create credibility with the public: An organisation recognized by the society to be virtuously and socially receptive will be esteemed and respected even by those who have no personal familiarity of its actual working. There will be a natural preconception in favour of its goods, as people would believe that the firm proposes value for capital. Its public issue will give an instant reaction (Azam, Jalil& Rahman, 2010).
Values are also supported to be a common language to bring leaderships and its people together. Organizational ethics, when perceived by employees as genuine, create common goals, values and language. The management has credibility with its employees precisely because it has credibility with the public, neither sound business strategy nor a generous compensation policy and fringe benefits. Decision making is an ethical approach helps the executives to make better decisions, choices which are in the advantage of the community, the staff members and the firm’s possess long term objectives although decision making is slower. This is so because respect for ethics will compel the directors to take several features like economic, social and ethical into concern in making decisions. The good ethical conduct can in some way influence on a person’s aptitudes to turn out to be a specialist in a particular area. Ethical conduct and proficiency in the place of work is a boundless advantage for an employee’s job and can surge working environment levels. The way mangers consider their employees and their behaviours, one can increase production, success, work quality which is highly valued by the directors. When employees respect the tasks allocated they will do their best to complete the given work in time and reach their objectives this will greatly
affect the sales and the productivity. Due to this it is assured that you will have a group of people who will sail your business even in the worst of the downfall of the market, and keep the growth of the company and business consistent (Azam, Jalil; Rahman, 2010) .
In addition, when everything is organised and operational employees are compliant and indulgent then you won’t be facing any issues or legal obligations from the employees as all the employees are considered to be equal and all are well known with their duties which the job requires from them. When everything is managed and systematic then all the paperwork and the legal formalities are the primary things which is considered the most, so there is no question of any legal issues. Level of Success: When everything is so managed and systematic along with the understanding of the workers because of their strong ethics, the company will surely touch new heights of success and even the growth of the company will be guaranteed. When the workers turn out to be proficient in their duties and in particular area, their commitment and motivation to do the work will show true colours and give more fruitful results (Azam, Jalil& Rahman, 2010).

Examples of unethical behavior in business organization
Mr Eddysen Pachee, 39 year old Goodlands inhabitant was in police custody for drug dealing. He was beaten up by police officers and taken to hospital and died there. When an autopsy has been carried out,the report concluded he did not die of natural causes, his death was due to brain oedema and injuries on his body, broken rib, injuries to his head, lips and left foot. While being a governmental body, Police has done some unethical acts by torturing a human to the extent that he died due to physical injuries and this is unacceptable to the Mauritian society.

An investment company named white dot International Consultancy Limited based in Port Louis, without legal license to transact, offered their customers to place their savings in financial products profitable in the short term with rates exceptional yield. One of the business partners of the company transferred 700 million rupess ($ 17.5 million ) to an account in Switzerland and vanished. So ,this is a financial scam of 17.5 million euro which is totally unethical in business organization which implies that there is no trust at all.

Meritocracy Patronage appointment is not a new concept. Originated in Italy, patrons were exhibiting power and control in making appointment and the appointees were getting prestige and public recognition through the association with that patron. We are all aware that in Mauritius there exists no systematic system to recruit directors and executives in the public sector. Engagements are made or recommended by ministers based on whether the nominees are affiliated with the party in power, family ties (Backing as known in Mauritius) or other political factors. We are also aware that their performance cannot be measured as would be in the private sector simply because their performance is not driven by factors such as return on investment, market share, industry benchmarks or share value. They should however understand the responsibilities and expectations of directorship and be educated about the unique facets of serving in the public sector. Roshi Bhadain – ‘Ministre des Services financiers et de la Bonne governance’ has committed to create a competency-based recruitment process and practice in Mauritius this year. But the problem remains that the underlying recruitment process in most jurisdictions (government departments) is not structured to ensure competency-based appointments. Recent appointments in core positions show us contrary to his commitment unless they are justifiable. At the end of the day, we should be asking ourselves, is there a real thing called meritocracy today?
Employee Exploitation
Working conditions accepted by the Bangladeshi workers who have been pissed off during the week: 60 hours of work per week for a salary of Rs 8 000. The agreement was signed by the Minister Shakeel Mohamed, August 2. However, they could not get what was agreed at the end of the month. Indeed, they were forced to work on Sundays, carry out overtimes with no remuneration in return.

Ramgoolam was arrested for the final time, with the number of charges now totalling 13, for having misallocated a contract for the transportation of petroleum to Betamax Shipping. In 2009, the government gave Betamax a 15-year monopoly on petroleum transportation from Mangalore in India to Mauritius, whilst committing the State Trading Corporation to pay overprice. For his decision, the police suspect that Ramgoolam received $24,000 in bribes from, the managing director of Betamax, after envelopes with money were discovered at his place. The latter is to have accelerated procedures for Betamax to get the contract, including by threatening a permanent secretary into approving the award.

The prime minister, MSM leader Pravind Jugnauth, was condemned to 12 months in prison in June 2015 for conflict of interest under Mauritius’ corruption legislation. He was condemned as he had signed for the payment for the clinic, which was owned by his sister and brother-in-law and for which the state paid overprice. Arrest under corruption
legislation must be embarrassing for a government that has promised to rid Mauritius of corruption.

On a conclusive note, business ethics reaches far beyond employee loyalty and morale or the strength of a management team bond. As with all business initiatives, the ethical operation of a company is directly related to profitability in both the short and long term. With consistent ethical behavior comes an increasingly positive public image, and there are few other considerations as important to potential investors and current shareholders. To retain a positive image, businesses must be committed to operating on an ethical foundation as it relates to treatment of employees, respecting the surrounding environment and fair market practices in terms of price and consumer treatment.

Cragg, w., 1997. Teaching business ethics: The role of ethics in business and in business education. Journal of Business Ethics, p. 231.
Dr. Md. Abdul Jalil, F. A. ,. M. K. R., 2010. Implementation Mechanism of Ethics in Business Organisations. International Business Research , 3(4).

Ethics IIE V1 N1 (Fall 1987). Revised in 2010.

From 1890-1938 the journal was known as The International Journal of Ethics. In 1938 the title was changed to Ethics.

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