Lecture-20-24 Synopsis

Consumer Safety: Business touches all of our lives through manufacture, distribution, sale of consumer goods. When the products marketed and sold fail to perform as expected or worse, injures consumers then different questions of morality and public policy arises which gives a new concept called Consumer safety. Cigarette, lighters, oral equipments, sport-utility vehicles, car, batteries, drain cleaners, power tools, ladders, automobiles, airplanes-all have been claimed to be cause of injury or even death to consumers. In some cases, those injured were paid millions of dollars in damages by the companies who made and marketed the offering products. Consumer advocates defend such awards as a necessary check on corporate greed and callousness On the other hand business advocates complain that holding the companies liable is not always fair. Some products such as cigarettes silicone implants desired by large no of consumers anyway. About Silicone: Silicon is the second most abundant element on earth, next to oxygen. Silicones are actually a family of chemical compounds. They are made of silicon, which is a naturally occurring element found in sand, quartz, and rock. When silicon is mixed with oxygen, hydrogen, and carbon, it becomes silicone. Silicone is found in many other types of implants, such as facial implants, artificial joints, drainage systems, etc. BMW forced to pay $ 4 million to a lady doctor whose BMW had been partially repainted due to acid-rain damage, destroying its original shine. A woman awarded nearly $ 3 million from MCDonalds for burns she suffered after dropping a cup of McDonalds coffee in her laptop-the coffee she claimed was too hot. Both of these cases involved so called punitive damages as both deserve extra punishment. According to the corporations these punitive awards are wholly unjustified. Now there is a question:

 Is it fair to leave these cost with whomever is unlucky enough to incur them? Or is there a morally defensible basis for shifting the costs over to the producer? Consumer Protection Laws: A consumer is simply anyone who uses the goods or services marketed and sold by another. There are many ways in which society currently seeks to protect consumers from unfair or dangerous services or products. Some laws such as consumer product safety act of 1972,authorize consumers to sue in court to enforce a product safety rule; and a defendant accused of improper consumer practices can face either civil or criminal penalties. Most consumer legislation does not protect consumers from their own negligence or carelessness. Other consumer protection laws cover a wide area: Regulating the labeling of products Prohibiting improper sales technique Full disclosure of sales terms Regulating the charges imposed by the credit card companies. Discriminatory credit or collection practices The law currently says that those who make and sell consumer goods may be held responsible for the design and construction of their products, as well as for the labels affixed to them and the instructions come with them and warning given concerning them. Manufactures and distributors of consumer goods can be held liable for promises made concerning their products. Warranty Law protects consumers by requiring manufactures to live up to promises they have made relating to the nature and quality of what they have to sell. A bottle of aspirin with a label reading Containing 500 tablets expressly warrants the quantity of the product. I had purchased a fish from someone who before buying knew the fitness of the fish. That fish was poisonous for health. After eating the fish one of my relative died.(Breach of Implied warranty) Moreover, by placing liability on the manufacturer, the law will be putting the burden on the party that can best guard against such a loss in the future.

Strict Product Liability: A seller may be strictly liable for defective products even though the seller was in no way negligent. Seller may be held liable where it makes and sells a product in a defective condition, unreasonably dangerous to the consumer. It is generally accepted that a product is defective if it was manufactured incorrectly; parts not in the right place. Manufactures can also be liable for defects in the design of their products. A company that made buses was held liable when a passenger riding one of its buses, fell to the floor and was injured as the bus made a sharp right turn. The bus was defectively designed as there was no vertical pole for the passengers to hold on. Here the law has employed at least two different tests: It fell below reasonable consumer expectations The cost of making the product is outweighs its benefit to society. Common household items as knives and scissors cause many accidents each year, yet few would argue that we would be better off without them. Some products of course, cannot be made completely safe such Unavoidably unsafe goods. A product can be made hazardous to consumers, if they are not properly instructed on how to use it. Consumer misconduct frequently raise defense to product liability. Suppose that seller markets a car capable of going tremendous speed. Seller can foresee that at least some buyers of its cars will drive them at the dangerous speed of which they are capable. Should such foreseeable misuses of a product be sellers problem as well??? Through Caveat Emptor we can protect our consumers using defective products. Critics strictly attack strict liability on the grounds of basic fairness. Consumers will be less mindful of product instructions and warnings and will have less incentive to use caution with the products they purchase.

Ethical Expectations:Employers and Employees

Steps against Sexual Harassment

There are a number of steps that organizations usually take to ensure that their personnel do not engage in sexual harassment and if they do so, it should be deal with proper action. The following steps can be taken in crucial situations: Taking the initiative to implement a meaningful program that addresses personal biases and harassment. Securing commitment from top management, since without it all efforts are doomed from the start. Developing and implementing a program that strives to change behaviors, not just attitudes, in the short run. Using the resources of an employee assistance program to develop a company policy regarding sexual harassment and make sure that the program has the ability to address claims when it first occurs.

Expectations to and from Employers and Employees

A number of traditional expectations from both the employers and from the employees are listed below: Employers to Employees Employees to Employers

Regular and timely attendance to the Satisfactory working condition-safety workplace and security

Efficient/Skillful work attempts with a Fair wage and reasonable hour sense of belongings provisions. Fair wages should be based on employee productivity. Quality Performance with least rejections Workers should be permitted to band together for the purpose of bargaining with their employers on matter of wages, hours of work, and other conditions. Must not be ordered/ forced for any illegal immoral/unethical involvement for actions inside or outside the work

Maximum Utilization of Working hoursHonestly and Efficiently

place. Protection of organizations property Equal opportunities for both minorities from theft, misappropriation, reckless use and disadvantaged persons. or family use. Upheld organizations goodwill Comparable benefits provided in other firms of the same industry.

Organizations interests to be ordered Medical facilities for employees and before personal interests their family members. Maintain organizations trade secret at Vacation and time off to care for sick any cost children Work should be accomplished to best Right to information about what is interest of the company. going on in the organization. Work accomplishment should not be Right to want the managers to be harmful or injurious to the fellow workers responsive to their problems and complains Adequate notice should be served before leaving the job Opportunity to grow out

Refrain from heavy drinking, gambling Right to free speech and privacy in the work place

Avoid loose talks, political talks, Greater assurance of job security personal or family gossip in the offices. Taking no bribe, extortion and gift in violation of fiduciary relationship with the employers Improved quality of work life

Refrain from any type of insider trading, Adequate care for the retired employees. information selling and the like Avoid acceptingoffers of entertainment, Employees welfare should be given lunches, dinners etc from the parties according to weight. No false vouchers, Imaginary expenses Should not remain careless Employees be not asked to do anything unlawful or unethical Any disciplinary action required to be taken.

Workplace Ethics

As far as workplace ethics goes, employers must do their part to make ethical expectations clear and trust the employee to deliver. Sometimes ethics training works and sometimes ethics training doesn't. Work place ethics shouldn't be a guessing game if the employer has truly done all he or she can do to set employees up for ethical success. Understand that one's ethic is his or her system of moral standards or principles that may or may not agree with the company's professional work ethics standards. Despite the differences, promoting professional work ethics requires the employer to do everything in his or power to set up employees for success. The following four questions can be asked by both employees and employers who want to seriously assess how well their company promotes self-discipline: 1. Are the work place ethics expectations in my organization clearly

communicated? People need to know what is expected of them. It's human nature. Some employers cloud expectations in vague concepts to accommodate gray areas, while others promote distrust by controlling every aspect of the employee's existence. Clarity in ethics training is the key. Most people want to know what's expected so they can get on with their job good work ethics. 2. Are the ethical expectations in the ethics training of my organization based in common sense and reality? Expectations shouldn't be burdensome, attainable only by saints. Having unattainable expectations with regard to ethics in the work of people makes criminals out of perfectly good people. It sets them up for failure. The key to this is to not be so locked into rules that you fail to see how they affect real people in the real world. There must be balance in ethics training. 3. Does the system of dealing with ethical problems show respect and due process to people involved? In a nutshell, how are people treated once they are caught or accused of unethical conduct? Our legal system operates under the assumption of innocence, in contrast to the workplace, which operates on the assumption of guilt. Although the administration of justice is the prerogative of the company, it must always be done with fairness and respect for everyone involved. Using disciplinary action to punish or intimidate people is

in itself unethical and hypocritical. Employers must listen to all the facts. Discipline is something that no one likes, but the process can work toward the good of the organization if justice is genuinely sought and lessons are learned. 4. Is ethics a positive or negative issue in my organization? It's no surprise that ethics is predominantly viewed in a negative light. Turning this perception around requires a different way of thinking about what makes an organization successful. There's more to ethics in workplace situations than just preventing loss of assets. It's about making the company a better place to work and conduct business. A positive ethics approach looks out for the best interests of both the employees and the company with positive workplace ethics training. People want to go to work every day knowing that they won't be harassed, that coworkers play by the rules, supervisors treat them with respect, and the company will honor the ethical principles they hold dear.

International Business Ethics

MNC stands for Multi-national Company Corporation. David W Ewing defined MNC: A company having production and marketing facilities in many countries Enjoying world wide access to capital Depending on foreign income Being managed with a worldwide point of view.

Multinationals are corporations that operate extensively in more then one country, usually through branches or subsidiaries engaged in production, marketing or both. They pose special moral problems. Because their activities are not confined to a single nation, no one national can effectively control them. The dimensions to the story of the ethics of international business are varied. The western business system and the international business system inextricably intertwined. This means that ethics in international business involves ethics in western business, and vice-versa. A multinational corporation is one that carries on operations in a number of different countries. Its international operations contribute significantly to overall revenues and

size. In recent years many of differences have been negotiated and shared. IBM, General Motors Corporations, General Electric Co, Exxon, Chrysler Corp., Deere, ITT, Johnson & Johnson, General Foods Corp, FMC Corp, Amerada Hess Corp, and Scores of other giant companies are true MNCs.

Misunderstandings about MNCs

Multinational corporations are not immoral in themselves. The following are three general, major charges: MNCs, operate immorally in this less developed countries by exploiting workers, by exploiting natural resources, and by reaping exorbitant profits; (2) MNCs compete unfairly in the LDCs, to the determent of the host countries; and (3) MNCs are a major cause of the impoverishment of the LDCs, and of the unrest found there. Each of the charges has some basis in fact and history. MNCs leave their own country to start ventures in another or in more than one countries. In the process MNCs earned profit and the host countries also get a touch of the development. Yet MNCs are, often, misunderstood in their own country as well as in the countries they operate. Some of such allegations may be seen as under: Allegations by the Home Country 1. Investible funds are transferred for higher profits ignoring the need for national investment. 2. Brain drainage to host countries. Allegations by the Host Country or Countries 1. MNCs are giant companies. They make contracts with the govt. of the host country almost in equal status which affects sovereignty of the host country. 2. MNCs dictates terms of contract with govt. of the host country as if they are donor 3. Technology transfer made secretly for personal gains over national benefits. 4. Creation of jobs in other countries while there is already unemployment problem in the country of origin. 5. Persuading undemocratic agencies/agent of a sovereign country. 3. MNCs often involve themselves directly or indirectly to over through a popular govt. if that appears to be not obedient to them. 4. MNCs reduces the ability of the host country in controlling the movement of currency to and from the host country. 5. Inferior jobs are given to the people of the host

governments of the host countries for MNCs own interest. 6. MNCs, often. Bribe to secure, their personal interest which, in turn, earn bad name for the country of origin. 7. MNCs to maximize their profit, reportedly engage themselves in many of the social/cultural activities of the host countries which are not acceptable to the people of country of origin. 8. MNCs reportedly do not submit actual profit and wealth position at the end of each financial year, in order to evade taxes payable to the country of origin. 9. Many influential executive, key personnel get themselves married in the countries and bring those wives to the country of origin. This they complain have ill effects on the social custom of the country of origin. 10. People in the country of origin, often, complained about the cultural aggregation caused by large number trainees of the host countries taking training in the country of origin.

country while the superior ones.expert positions are given to the people of the country of origin. 6. The rate of pay/salary structure and fringe benefits are, often, found to be discriminating against the people of the host country. 7. The tools and raw materials normally are procured from the parent country at a higher price even though these are available at a very low price in the host countries.

8. MNCs, often, in neglect of local demand export goods elsewhere outside the country of production.

9. MNCs eliminate local firms to minimize competition through setting up their own subsidiary companies.

10. MNCs through the expatriate executive make cultural aggression on the host countries.

11. MNCs charge higher prices for the goode produced and sold in the host country while for foreign exchange benefits, these are sold at lower prices out side the host country. 12. MNCs, often, found dishonest in making financial disclosure. In the process, they avoid

payment of taxes and duties payable to the host country. 13. MNCs imports duty free raw materials to be used for production purposes but reportedly they sell those at a higher price through open market for earning higher profits. 14. MNCs for higher profits make repaid use of local raw materials and thus exhausting the local resources much earlier than postulated. 15. MNCs reportedly influence the govt. of the host country to invest in the prefered sectors leaving the unprofitable sectors for entrepreneurs of the host country.

Environmental Ethics
Environmental ethics is the discipline in philosophy that studies the moral relationship of human beings to, and also the value and moral status of, the environment and its nonhuman contents. Environmental ethics is the part of environmental philosophy which considers extending the traditional boundaries of ethics from solely including humans to including the non-human world. It exerts influence on a large range of disciplines including law, sociology, theology, economics, ecology and geography. There are many ethical decisions that human beings make with respect to the environment. For example:

Should we continue to clear cut forests for the sake of human consumption? Should we continue to spread? Should we continue to make petrol powered vehicles? What environmental obligations do we need to keep for future generations?

Is it right for humans to knowingly cause the destruction of a species for the ease of humanity? It is often said to be morally wrong for human beings to pollute and destroy parts of the natural environment and to consume a huge proportion of the planet's natural resources

Immanuel Kant (Duties to Animals and Spirits, in Lectures on Ethics), for instance, suggests that unkindness towards a dog might encourage a person to develop a character which would be sensitive to cruelty towards humans.

Possible recommendations to ensure Environmental Ethics in Bangladesh

Although Bangladesh is still wrestling with problems of illiteracy for masses of its population, it cannot afford to neglect the need for environmental education and development of skilled environmental management. Although general education, even functional literacy may increase environmental awareness, specific policies for Environmental Education, including a delivery program that touches the school curriculum at all levels, as well as mobilizing resources in non-formal and informal education programs is overdue. As a major training resource, a leading sector in fostering in research to understand the environment, and a catalyst for new ways of thinking about sustainable development and the ecology of the modern State of Bangladesh universities have a key role to play. Although some universities offer specialized environmental education courses at undergraduate levels, many are lacking in resources (of equipment, teaching staff, library and Internet communications. The following recommendations seek to address this gap: The Government of Bangladesh should develop a strategic approach to Environmental Ethics Education and establish a policy framework to support requirements for sustainable development. Effective policies will enable delivery of environmental education that is tailored to the educational level and the life context (urban/rural) of participants, local

issues and integrates traditional wisdom. It will enable participants to learn by doing in their own environment. Existing environmental education curriculum for primary and secondary schools needs to be upgraded to clearly indicate the priority issues. In addition to integration of environmental education into the compulsory school curriculum, lifelong environmental education needs to be encouraged to enable government institutions and the private sector to constantly update knowledge and skills. To facilitate partnership with NGOs, the government needs to simplify and minimize rules and regulations and establish transparent procedures. Environmental Education programs should be designed to facilitate the participation of the NGOS. Existing environmental education programs in universities, such as Environmental Science of Khulna University need better resourcing, especially with practical equipment, teaching staff and Internet facilities. Personnel with expertise in environment should be deployed in monitoring and evaluation processes of government agencies (eg., Ministries of Planning, Environment, Education, Industries, etc.) to ensure transparency and accountability with respect to environmental performance. The government should establish a new Environmental Cadre in the Public Service Commission (PSC) in Bangladesh. Like other technical Cadres, it would recruit appropriately qualified graduates directly into the PSC, where they should be deployed across agencies.