Business Ethics Case Study: Values, Scenarios, and Analysis

This case study analyzes various business ethics scenarios, including ethical dilemmas related to workplace discrimination, employee absence, purchasing practices, and accounting fraud. The analysis explores the application of ethical principles such as fairness, justice, and virtue, and provides potential solutions to the ethical challenges presented in each case. The study examines factors that influence ethical decision-making within a business context, offering insights into how organizations can foster ethical behavior and address unethical conduct. The cases cover a range of issues, from employee relations to corporate governance, and offer a comprehensive overview of ethical considerations in the business environment. The study also examines the importance of ethical values for the long-term success of a business.

LECTURER: MR.MANSOOR KHAN
SUBMISSION DATE: 01 September 2024
LOCATION: DOHA, QATAR
TOPIC NAME: BUSINESS VALUES ETHICS
STUDENT NAME: [Author]
STUDENT ID:

Executive Summary:
Ethics generally means principles and rules that provide guidelines Business ethical values
differs from company to company and are further defined by the behaviors and worth that
prevails in a business environment. Business ethical values are a set of statutory guidelines that
give confidence to individuals in an organization to formulate decisions complying with the
company's affirmed beliefs and approaches toward business observance in the industry. Every
company must ensure five standards of ethics such as utilitarian approach or the principle which
states that principle that asserts that morally correct actions provide the widest range of benefits
over harms for the maximum number of people, the right approach or principle which puts
human dignity as the foremost important factor for living and every person must engage in such
activities which should not cause harm to their dignity, the fairness or justice approach promotes
that every act must be done in such a way so that it can result in an impartial way, the common
good approach promotes that every act should be done in such a way so that it can promote the
greater goods to the people of every community, the virtue approach focuses on attitudes,
temperaments, or characteristic attributes that facilitate people to act in such ways which help in
developing human perspective. The aim of this study is to identify different factors of business
conducts that are necessary to follow for the successful running of a business by both the
business organization and their member. Further, this study will show reasonable solutions that
are available in cases of unethical conduct.
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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................4
Analysis...........................................................................................................................................4
Case Scenario I:...............................................................................................................................4
Will you be ethical in this situation? If yes how? And if no! Why?...............................................4
If you be ethical, how you will survive your business....................................................................4
Case Scenario II:..............................................................................................................................4
Are Marian’s co-workers correct in their evaluation?.....................................................................4
Should Marian confront the co-workers?........................................................................................4
Should Marian file a discrimination suit?........................................................................................4
Should Marian go to the supervisor?...............................................................................................4
What else could Marian do?............................................................................................................4
Case Scenario III:............................................................................................................................4
Was the suspension fair?.................................................................................................................4
Did Sylvia act responsibly?.............................................................................................................4
Should Joan be fired?.......................................................................................................................4
Should the babysitter be fired?........................................................................................................4
Was Sylvia fair in her actions?........................................................................................................4
Is there ever a solution for working mothers?.................................................................................4
Should working fathers take turns staying home?...........................................................................5
Case Scenario IV:............................................................................................................................5
Were any ethical norms or principles violated by Sandoz?.............................................................5
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Are liquid diet products ethical products?.......................................................................................5
What moral responsibility might Sandoz have considered when developing its promotion
messages for the customers?............................................................................................................5
Case Scenario V:..............................................................................................................................5
What do you think can be the outcomes of accounting fraud to the society and business at large?
.........................................................................................................................................................5
Why do you think that the history of accounting fraud repeats itself, such as so many frauds
which we have heard after the Enron scandal?................................................................................5
Case Scenario – VI:.........................................................................................................................5
Since J.R. was over the purchasing department and had final decision authority, should
purchasing have gone through the normal bidding routine?...........................................................5
Is it acceptable for a V.P. to bypass the normal routine to do business with a family member?....5
Was J.R.'s decision not to request bids an ethical choice?..............................................................5
What should the college purchasing agent do?................................................................................5
Should anyone else at CCVU have any interest in this activity?....................................................5
Has Tiddley's Cripple Creek franchise owner been wronged?........................................................5
Should Jim have made the sale? Received a commission?.............................................................6
Conclusion.......................................................................................................................................6
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Introduction
A business ethical value differs from company to company and is further defined by the
behaviors and worth that prevails in a business environment (American Library Association
2019). Business ethical values are a set of statutory guidelines that give confidence to individuals
in an organization to formulate decisions complying with the company's affirmed beliefs and
approaches toward business observance in the industry (McQuerrey n.d.). It is important for
every company to follow minimum ethical values to be in the long run for their business. This is
important due to various factors like if a company is ethically strong then it will definitely thrive
to ensure their employee's interest and offers them with such principles that comply with the
moral and ethical values. Further, every employee wants to be a part of an ethically strong
company. This due to the fact that in an unethical environment, employees do not get a chance to
grow their skills, which adversely affects their career graph. Therefore, every company must add
the minimum standard of ethical value in the value statement of such a company so that more
skilled and efficient employees can join the organization and be a part of its success wheel. The
major ethical concerns are conflict of interest, bribery, employer or employee interest and insider
trading. Therefore, every business organization must make policies that eradicate the rise of
these above-mentioned risk from the company .
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Analysis:
Case Scenario I:
Will you be ethical in this situation? If yes how? And if no! Why?
Yes, I will be ethical in this situation adopting the core values of ethics in a business such
as fairness, virtue, and morality. My fairness or justice approach, in this case, will be applicable
for my rivals as this approach elaborates fair treatment to every person and fairly choosing one's
action which can be resulted in the benefit and harm of a larger group of people. This is further
required for justice to business (Josephson, 2015). Therefore, opening the envelope will cause
injustice to the rival and their rights to win in such auction (Anon., 2017). Through the Virtue
approach, I will further restrain myself from opening the envelope, as the virtue approach
elaborates that one should adopt an honest, moral and honorable character which reflects through
one’s work. Further, my morality approach will be reflecting through my business conduct.
Therefore, I will follow the intuition of my morale. This is further necessary for the protection of
my business’s reputation in the market.
If you be ethical, how you will survive your business?
It is important to be ethical to run a business for the long run, as a business owner has
some additional duties like legal duties (Anon., n.d.). Therefore, if in the present case I prefer to
cheat and upon investigation by the regulatory bodies if this fact of cheating gets disclosed, then
I might face consequences that will rupture my business reputation as well as I might have to
face huge monetary punishment. Such monetary loss might be huge than the loss I am facing or
will face in the future in case my business does not work. Therefore, to save my business I need
to focus to be more business mind maintaining all ethical standards necessary for a business
rather than choosing the shortcut which might cause me huge legal consequences in the future.
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Case Scenario II: Discrimination in the Workplace
Are Marian’s co-workers correct in their evaluation?
It can be seen from the fact of the case that Marian is performing really well in her job.
Furthermore, she topped the corporation's management training program out of the total trainees
who were with Marian at the training (Anon., 2017). Further, the facts stated that she is doing
exceptionally good and over-performing that what can be expected from her to do at this initial
stage. Therefore, the allegations made by Marian's colleagues are totally baseless. This can be
said because they were not unhappy with her performance but because of her appearance and
over the rule of the company which makes it mandatory for the appointment of a female in their
team. Therefore, their allegation is said to be discriminatory against Marian.
Should Marian confront the co-workers?
Marian, in this case, should definitely confront her colleagues as it is always preferential
to resolve a dispute through a peaceful talking between the person having such a problem with
each other (Hill, n.d). Therefore, Marian should definitely have a discussion and asking them
why they possess such a negative opinion about her. Further, if they have any complaint
regarding her work and performance Marian can definitely ask them to point that out so that she
can work on them (Mujtaba, 2005). Further, if they have a problem with her gender then Marian
can make them understand that she got selected for the position because of her efficiency and not
for her Gender or some legal guidelines which makes it mandatory for the hiring of women in
such a position.
Should Marian file a discrimination suit?
Firstly, Marian should have a discussion with her colleagues to find out what the problem
is and why they have such a negative opinion about her. If after having a conversation with them
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she is unable to make them understand or unable to change their opinion and further if they try to
defame her name in the company regarding an irrational issue, then Marian can definitely
complain about the same to the Harassment Committee of the organization (Miller, n.d). After
informing the committee if the issue does not get resolved or get worse, then she can further
proceed with a legal defamation suit against her colleagues for intentionally maligning her
character in the workplace. She can also bring a suit for discrimination by her colleagues on the
ground of her gender which breaches the constitutional right of equal treatment.
Should Marian go to the supervisor?
Marian can definitely go to her supervisor to complain about the same if after having a
discussion with her those colleagues who were complaining about her and defaming her without
reason, the whole issue does not get resolved. Further, she can also inform her supervisor in case
the situation gets worse. This is necessary to avoid any serious issue in the future that can happen
to Marian by such colleagues. Further, if Marian's supervisor advised her to lodge a complaint in
the Harassment Committee of such company if any, then she can further lodge the same and wait
for the investigation and resolution about the whole matter (Anon n.d).
What else could Marian do?
Options available to Marian are;
 Having a discussion with the colleague,
 Informing the supervisor in case the situation does not get better after having a
discussion,
 Marian can officially lodge a complaint in the harassment committee of the company, if
any, about such harassment and unequal treatment by her colleagues.
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 Marian can complain about the same to the local police about her colleague's action
which causing harm to her workplace reputation and mental peace.
 Marian can file a suit for defamation in the court of law against colleagues for maligning
her character without reason.
 Marian can further bring a suit for discrimination and unequal treatment in the workplace
by her colleagues merely on the ground of her sex, which surely breaches the constitution
provision of equal treatment in the workplace.
Case Scenario III: Employee Absence
Was the suspension fair?
In this case, the suspension can be said to be fair by Sylvia. This is because Joan was
given multiple warnings regarding her regular absence from the work by the management of the
company. Further, she was well informed that her unapproved leaves are causing disturbance to
the regular business for the company. Further, on the day of her leave before the suspension,
Joan was informed by Sylvia that she has exceeded the maximum leaves balance available in her
bucket and if she does not report to the work, they might suspend her. Therefore, in this case, the
suspension is right, at various times, management of a company takes a strict decision in order to
maintain discipline in the company. Therefore, the suspension order does not violate the ethical
rule of fairness from Sylvia's side.
Did Sylvia act responsibly?
Sylvia can be said to be fair in her action of suspending Joan in the present case scenario.
This is because the absence of an employee from work without proper reason can be considered
as unethical conduct. Therefore, the employer has a right to take against such an employee
causing misconduct and disturbance to the day to day operation of the company. Further, before
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taking action like suspension as mentioned in this case, every company must give warning to
their employees regarding such absence and ask for a written explanation for the same, which
was followed by Sylvia in this case. Further, Joan did not try to arrange any back up for her work
on that specific day, which constituted another unethical conduct on her part regarding the duty
she owes to the company by completing her part of the work.
Should Joan be fired?
Considering the fact of terminating Joan in the present scenario for regular misconduct of
not being present in the office as well as her habit of takes unplanned leaves, it can be said that,
at present, it will be adequate to continue with the suspension of Joan for taking leave without
the consent of Sylvia. Further, her suspension can be continued on the ground of not taking
adequate means to find her replacement at the workplace on the day of her absence. If after
joining back from her suspension, she continued her such lethargic act, then Sylvia and her
company's management can think about such a huge step of suspension which can be considered
as the breach of a moral and fundamental breach of contractual rights of Joan.
Should the babysitter be fired?
The babysitter for Joan's children can also get terminated by Joan for being absent from
her work without any prior intimation. However, such a decision will depend upon Joan's will
and if she generally takes such unplanned leaves from her babysitting job, then Joan can think to
find her replacement so that she can also concentrate on her job and daily attendance at the
workplace. However, such a decision of Joan must comply with the principle of justice, morale
and fair decision, all of which she owes to her babysitter on the basis of human conduct and good
conscience. This is to be considered Joan before terminating the babysitter because such
termination will not only affect the babysitter but her dependants as well.
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Was Sylvia fair in her actions?
Sylvia can be said to be fair in her decision of suspending Joan. This can be said because,
though the suspension of an employee is always an attack on the contractual right and moral
conduct of such an employee by the terminating company. However, in some cases of regular
misconduct by an employee, like in this can, companies have to take a drastic decision so as to
maintain the discipline in the company. Further, such suspension was necessary to set an
example for the other employees so that they also do not engage in such kind of acts.
Nonetheless, Sylvia has complied with the principle of moral conscience and equity to ensure
such ethical conduct which she owed to Joan as an employer before granting such retributive
justice. This can be said from the fact of the tenure of her suspension (Anon n.d).
Is there ever a solution for working mothers?
The solution that can be made available to a working mother to continue with her job
without taking leaves for her baby and home in addition to mandatory paid maternity leaves (the
number of days varies in different countries) is that, to consider the emergency situation where a
mother has to take leave for her child. This leave can be granted through Leave without pay
provision. Further, companies can arrange child care facilities or crèches in their office or nearby
location to the office, so that a mother can pay equal attention to her official work and children at
the same time. These actions are necessary for the companies so that they do not lose an efficient
employee merely on the ground of her motherhood. It is also important so that the mother aka
employee does not have to take sabbatical leave just because her newborn baby will stay alone at
home while she will be working (Furxhi, Still and Zake 2016).
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Should working fathers take turns staying home?
The fathers are also liable to get paid or unpaid maternity leave in order to support their
partner in raising their children. For example: under the Federal Law of Family and Medical
Leave Act (FMLA). A father is liable to get 12 weeks of unpaid paternity leaves. However,
under California's Paid Family Leave fund, few eligible employees are liable to get partially paid
family leaves in the first 12 months of the birth of their child. Therefore, every father should
share an equal responsibility to raise their child during the initial months after the child was born.
They should further utilize this paternity leaves of different nature provided by the Government
of each country so that their partners can work accordingly without compromising their career
and do well in their respective jobs.
Case Scenario IV
Were any ethical norms or principles violated by Sandoz?
Sandoz has violated the ethics of moral standards, trust, and integrity for publishing
reports that are not established on proven facts. The business principle of moral standard
elaborates that every company must distinguish between right and wrong conduct and always
adopts the right conduct which can make an impact on a huge number of people in the society
especially to the clients of such business. Therefore, every company must adopt such conduct
which engages with an honest consideration of fundamental motive, which can eradicate
potential harm and to maintain conformity with established values and rules. The principle of
trust and integrity ensures that every business organization should maintain transparency
regarding their documents and data related to work, which is necessary to comply with the moral
code of ethical value to run a business in the long run. The transparency is further important to
maintain honesty towards the clients and protect their interest over the business
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Are liquid diet products ethical products?
Liquid diet products are a quick solution to the food need of busy people who did not get
time to have solid food because of their tight schedule. A liquid diet can also be helpful for those
people who are unable to chew or swallow food. However, in order to comment on the ethical
conduct of diet food, it cannot be determined generally, due to the fact that every person's
nutrition need is different. Therefore, instead of relying on the promotional advertisements or
disclaimers of a liquid food product, one needs to ensure that whether such consumption will
fulfill the regular basic nutrition need of such a person's body.
What moral responsibility might Sandoz have considered when developing its promotion
messages for the customers?
Sandoz failed to follow the principle of business ethics for consumers such as unsafe
products, deception, and unfairness in advertising, price-fixing. Firstly, Sandoz promoted the
Optifast program by stating that it is clinically proven, safe and effective. Further, the
advertisement of e program stated that it is a lifetime solution of every weight gain problem and
it will control a person's weight for their entire life. Both of these statements do not have any
scientifically proven value. Further, the research of the University of Pennsylvania showed that
people who lost weight effectively after going through the program are about to gain weight.
Further, the research report of the University of Michigan specified near about 90 percent of
dieters have regained weight within five years after losing it. Furthermore, Oprah, the celebrity
brand ambassador of the program also regained 17 pounds in the first year after completion of
the program. Therefore, it can be said that Sandoz's behavior towards their clients is unethical
and deceptive regarding the claims made during the promotion of the product. Therefore, the
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company was supposed to follow the principle of moral and fair business conduct during the
promotion of the program (Anon n.d).
Case Scenario V:
What do you think can be the outcomes of accounting fraud to the society and business at
large?
Accounting fraud is said to be the intentional exploitation of financial records in order to
create an artificial appearance of corporate financial strength. Fraud can happen to be pricey in
different ways. It devastates the retirement funds of a person, tarnishes reputations and causes
mental suffering. Businesses generally lose a huge amount of money from the misconduct of
stealing cash and other assets. It can be seen that businesses are often facing the
economic downturn in the attempt to mitigate the losses of their company, which unknowingly
place them to a huge fiscal and reputational risks (Anon n.d). This is generally because when a
company cuts back on expenses, they actually increase the chance of them being a victim of
fraud. In case of an economic depression, the chances or pressure to commit fraud by the
employee of a company is increased due to an increase of impractical corporate targets failure to
which they might end up losing their jobs. This may further result in cheating the company for
the personal benefits of the employees, which itself is a breach of ethical conduct of employee
theft (Anon 2016).
Why do you think that the history of accounting fraud repeats itself, such as so many
frauds which we have heard after the Enron scandal?
The accounting frauds often repeat itself in every sector of the industry. There is an
ample number of factors that exist to show as reasons behind the repetition of such misconduct.
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Firstly, the mentality of the business franchise to earn more money by manipulating its financial
statement. Secondly, to reduce the number of tax returns of the business, a business organization
often instruct their accountants or accounting firms to manipulate financial data. Thirdly, to stay
in the competition the organizations often put immense pressure to achieve unimaginable targets
upon their employees, which further increases the chances of financial fraud. Fourthly, the
lacuna of the prompt and steady financial monitoring system by the Government over these
organizations increased the chance of account fraud (Ferguson, 2016).
Case Scenario – VI: Purchasing Ethics
Since J.R. was over the purchasing department and had final decision authority, should
purchasing have gone through the normal bidding routine?
It is to be said that being an Administrative Vice President of the purchasing department
of the Cripple Creek Vocational University, it was the duty of J.R to comply with each and every
already established rule for the university, especially those which have been made to secure the
moral and ethical conduct of the university. Therefore, when the university had a bidding process
in order to purchase equipment for the same, J.R should have followed the same. This is also
because the purpose of making such a process is to endure fairness of pricing while purchasing
any product for the university. Failure of which J.R definitely can be made guilty of unethical
conduct of conflict of interest and employee theft, which occurs when a person has a duty to
obey on behalf of the company he or she is working for but he or she failed to comply with the
same or acted without the authority of the employer.
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Is it acceptable for a V.P. to bypass the normal routine to do business with a family
member?
A Vice-president of a company is definitely cannot engage with a family member,
especially on unethical rules. This is because it will then amount to a conflict of interest, bribery
and employee theft. According to the conflict of interest rule, a person when has been employed
to do some work on behalf of a company must not do such work in a way to ensure their own
interest from the result of such work and also must not do something that is morally wrong.
Further, the principle of bribery states that a person must not do unnecessary favor to some other
person while discharging any legal or public duty, the result of which might be regarded as a
corrupt dealing. Furthermore, the principle of employee theft elaborates that an employee must
not use or misuse any assets or property of an employer without valid authority. Therefore, a
Vice President is required to maintain the moral and ethical conduct of his designation while
doing any business transaction for their company.
Was J.R.'s decision not to request bids an ethical choice?
J.R's act of not arranging a bidding process for buying the computers is definitely said to
be misconduct and breach of his duty to follow the university norm. Further, he as an employee
owes some duty to his employer University, which includes maintaining ethical conduct while
taking the decision on behalf of the university. Therefore, intentionally not arranging an official
bidding process is said to be his first misconduct which also can be regarded as misuse of his
power. Buying a computer from his Son's company is the Second unethical conduct done by him.
The third misconduct is, buying those computers at a higher price where fewer price products are
available in the market ensuring better working features just to ensure commission for his son.
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Therefore, not arranging the bidding process is definitely not an ethical choice (Upadhyay and
Singh, 2010) .
What should the college purchasing agent do?
The agent of Tiddley's local Cripple Creek franchise dealer cannot raise an objection
because no legal right of the agent has been violated by the misconduct of J.R's part. If the
agent's franchise has any contractual obligation with the university or if there were any
guidelines that would have made the university to buy products from such dealer, then his claim
of bypassing the deal would have been entertained. Further, it has been cleared from the facts of
the case that if the normal bidding process would have taken place, then the model of Tiddley's
computer would not be selected. Therefore, the agent cannot do anything in this case.
Should anyone else at CCVU have any interest in this activity?
As J.R was the Vice President of the sales department of the Cripple Creek Vocational
University, he has the most interest in the buying of such computers from Tiddley. However, as
he was acting under the supervision of the President of sale and other management of the
University, it can be said that they might also have some interest in the non-conducting of the
bidding process. This can be said, as when the necessity of buying such computers has come into
the picture, J.R must need a sanction about the purchase price from the accounts department,
which is impossible to get sanctioned without clearance from the higher authorities of the
University. Therefore, there might be a possibility that the upper management together with J.R
and Tiddley corporation, might have caused some sort of unethical bribery and misconduct
during the whole scenario for protecting their individual interests.
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Has Tiddley's Cripple Creek franchise owner been wronged?
The agent of Tiddley's local Cripple Creek franchise dealer cannot be said to be wronged
due to such misconduct on the part of J.R as a Vice- President of the Cripple Creek Vocational
University. Further, he cannot raise an objection because no legal right of him has been violated
by such unethical dealing. Further, it has been cleared from the facts of the case that if a normal
bidding process would have taken place, then the model of Tiddley's computer would not be
selected. Therefore, the agent cannot claim any sort of right in this case.
Should Jim have made the sale? Received a commission?
It is clear from the fact of the case that Jim has arranged such unethical dealing from
Tiddley Corporation's side for the selling of computers to Cripple Creek Vocational University,
where his father J.R is designated as a Vice-President for the Sales Department. Further, it has
been cleared from the facts of the case that Jim has also received a huge amount of commission
from his company for conducting such sale. Therefore, it can be said Jim is also guilty of
committing unethical conduct such as bribery, conflict of interest and employee theft. This can
be said from the fact that as an employee he conducted such sale one for his personal benefit,
secondly to do a favor to his father (Anon n.d). Therefore, he is equally liable for causing such
harm to business ethics.
Conclusion:
Therefore, it can be concluded from the above-mentioned discussion that business ethics
generally comprises the study of business policies, rules, guidelines, and practices. A business
ethical value differs from company to company and is further defined by the behaviors and worth
that prevails in a business environment. Business ethical values are a set of statutory guidelines
that give confidence to individuals in an organization to formulate decisions complying with the
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company's affirmed beliefs and approaches toward business observance in the industry The
effectiveness of these policies comes into the picture in case of any conflict between business
organizations and their employees or members. The potential controversial issues which can be
regarded as unethical or opposed to general ethical policies of business are such as, corporate
governance, insider trading, bribery, discrimination, corporate social responsibility, and
fiduciary responsibilities. However, it is difficult to find out the scope of the study of business
ethics as it differs from organization to organization. Further, it differs from case to case
scenario. Another important aspect of the study of business ethics vastly depends upon legal
principles and legal guidelines. Therefore, its enforcement also depends upon the interpretation
of different codes in different cases. Therefore, it is on the persons upon whom the responsibility
to protect the ethical values of the codes has been imposed, have to ensure the protection of the
same from any sort of unethical activity. Further the companies while drawing up the value
statement must adopt a broader approach so that such a statement can provide resolution for each
sort of ethical problem in the organization.
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Reference:
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