Group 7 Sapna Bangera – 04 Sudhakar Lakka–26 Pankaj Mahajan-27 Laukik Pradhan– 40 SIMSR-BE-2015

Whenever you do a thing, act as if all the world were watching." Thomas Jefferson Businesses are more likely to succeed when they base themselves in ethics—in honesty, integrity, and quality.

AGENDA What is Business Ethics What is Ethics in Production Who are the stakeholders Case Study

 MORAL PRINCIPLES THAT GOVERN A PERSON`S OR GROUP`S BEHAVIOUR.  THE MORAL CORRECTNESS OF A SPECIFIED CONDUCT. BUSINESS ETHICS ?

Introduction PRODUCTION The processes and methods employed to transform tangible inputs (raw materials, semi finished goods, or subassemblies) and intangible inputs (ideas, information, knowledge )into goods or services  This area of business ethics deals with the duties of a company to ensure that products and production processes do not cause harm.

Introduction  The fact that there is usually a degree of danger in any product or production process and it is difficult to define a degree of permissibility, or the degree of permissibility may depend on the changing state of preventative technologies or changing social perceptions of acceptable risk.  Defective, addictive and inherently dangerous products and services (e.g. tobacco, alcohol, weapons, motor vehicles, chemical manufacturing).  Ethical relations between the company and the environment: pollution, environmental ethics, carbon emissions trading  Ethical problems arising out of new technologies: genetically modified food, mobile phone radiation and health  Product testing ethics: animal rights and animal testing, use of economically disadvantaged groups (such as students) as test objects.

ETHICS IN PRODUCTION WORKERS SOCIETY/ ENVIRONMENT GOVERNMENTPACKAGING SIMSR-BE-2015

What happened at the Bhopal Disaster?  45 tons of Methyl Isocyanate (MIC) gas escaped from two underground storage tanks at a Union Carbide pesticide plant  When did it occur?  December 3, 1984 BHOPAL GAS TRAGEDY SIMSR-BE-2015

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 Official immediate death toll  Government of Madhya Pradesh toll  Others estimate death within two weeks-8000  According to government affidavit in 2006  (a) Injuries-558,125  (b) Temporary partial-38,478  (c) Permanently disabling injuries-3900 …And you thought only weapons could cause Mass Destruction

 Storing MIC in large tanks and filling beyond recommended levels.  most of the safety systems were not functioning  many valves and lines were in poor condition.  several vent gas scrubbers had been out of service.  steam boiler, intended to clean the pipes was nonoperational.

Government Actions  Civil and criminal cases are pending in the United States District Court, Manhattan and the District Court of Bhopal, India, involving UCC, UCIL employees, and Warren Anderson, UCC CEO at the time of the disaster.  In June 2010, seven ex-employees, including the former UCIL chairman, were convicted in Bhopal of causing death by negligence and sentenced to two years imprisonment and a fine of about $2,000 each, the maximum punishment allowed by law.  An eighth former employee was also convicted, but died before the judgment was passed. 14

 Respiratory Disorders – Irritation to the lungs, causing coughing and/or shortness of breathing. Higher exposure caused build up of fluids (pulmonary edema). Caused Asthma.  Cancer Hazard – Caused mutation (genetic changes). It caused cancer.  Reproductive Hazard – Association between exposure to Methyl Isocyanate and miscarriages. It may damage the growing fetus.May also affect fertility in men and women.  Traces of many toxins were found in the Brest Milk of mothers and were intern transmitted to the recipient babies. Effects on Human Health

 Bhopal continues to suffer the environmental contamination produced by the release of MIC  Donations and medical/volunteer assistance has been provided  Union Carbide accepted responsibility and agreed to a $470 million settlement

What’s the situation now?  To this day, the Union Carbide location in Bhopal is not remediated.  The plant still leaks toxic chemicals such as:  Mercury  Trichloroethane  Chlorinated organics  Lead

 Regarding registration of new industries  Regarding NOC`s  Regarding land allocation  Regarding plant layout  Proper periodic inspection  Regarding implementation of rules Ethical issues related to Government

 Working environment  Odd jobs  Proper work study  Proper incentives  Safety issues  Training program Ethical issues related to worker

Requirements for Industries 1.Registration with Industries Department. 2.Land allotment from Industrial Development Authority. 3.NOC from Pollution Control Board under the provision of Water (Prevention of Pollution) Act 1974, Air (Prevention of Pollution) Act 1981,Environment (protection) Act Building Map approval from concerned Development Authority/Designated Authority of notified area. 5.Fire Department NOC. 6.Registration under Central Sales Tax Act 1956.

 Air  Water  Soil  Noise  Living Creatures 21

Amazing things can happen when all stakeholders (employees, customers, suppliers, neighbourhoods residents, even competitors) become your active companions-but that only happens if your business specifically empowers each of these groups and addresses their different needs and desires Line employees, managers, and even CEOs need support to show that ethical principles will help their businesses succeed, and that they won't be penalized by the marketplace for taking an ethical stand.

Ethics in Pricing 1.Price Fixing- Where a group of sellers selling similar range of product decide a fixed price for a specific product. 2.Bid Rigging- Seller Sells the product at a particular price according to its favoritisim 3.Price Skimming- Price difference is done by looking at the need of the market for a particular product. 4.Supra competitive Pricing- Seller decides the price of the product with reference to the scarcity of the product arises in the market due to a particular event or disaster.

Questions? Thank You !