Q.1.Describe Ethics. How does ethics make moral judgement about human conduct?

Ethics means "a set of concepts and principles that guide us in determining what behavior helps or harms sentient creatures". ethics is "commonly used interchangeably with 'morality ... and sometimes it is used more narrowly to mean the moral principles of a particular tradition, group or individual. Q.2.Managerial dilemmas of business. A dilemma (Greek: - "double proposition") is a problem offering two possibilities, neither of which is practically acceptable. One in this position has been traditionally described as "being on the horns of a dilemma", neither horn being comfortable. This is sometimes more colorfully described as "Finding oneself impaled upon the horns of a dilemma", referring to the sharp points of a bull's horns, equally uncomfortable (and dangerous). The dilemma is sometimes used as a rhetorical device, in the form "you must accept either A, or B"; here A and B would be propositions each leading to some further conclusion. Applied incorrectly, it constitutes a false dichotomy, a fallacy. The following guidelines will help you handle the top five managerial dilemmas swiftly and effectively. 1. Conflicts between employees. Individual differences in employees abilities, temperaments and work styles can frequently lead to tension and problems on the job. When coworkers clash, you face a dual dilemma you must deal with the immediate issue as well as prevent fall-out that could negatively affect the rest of your staff. Meet individually with every employee involved and, without assigning blame, restate the situation as you see it. Give each person the chance to give his or her side of the story. Listen as objectively as possible, even if you disagree with certain viewpoints. Then, encourage the parties to collectively brainstorm ways to resolve the problem. Emphasize that your goal is not to decide whos right and whos wrong, but to help the team work together more harmoniously. Although you should guide the discussion, make sure they understand that it is their responsibility to reach agreement. If the conflict proves to be intractable, you may ultimately have to reassign or transfer one or more of the individuals. 2. Low morale. Many factors can cause a decline in morale, including a downsizing or uncertainty about a companys future. When employees are demoralized, they are likely to fall into a self-perpetuating cycle of inefficiency and low productivity. Turnover may increase as staff members seek more secure jobs elsewhere. As a manager, you must take decisive action to reverse such trends and bolster spirits. Meet with your staff and acknowledge that the company has been through a difficult period. Thank them for persevering and continuing to do their best. If you honestly can, reassure them that the situation has stabilized. If this is not the case or if you are not in a position to comment, avoid making promises you wont be able to keep as your staff may be further demoralized by assertions that

eventually prove to be untrue. On an ongoing basis, remember to always recognize and reward good performance. A simple thank you or public comment about a job well done can help boost lagging morale. 3. Performance problems. Most managers have at least one staff member who doesnt perform up to his or her potential. The best strategy for dealing with this dilemma is to hold periodic performance reviews. Schedule a private meeting with the employee and review recent activity. Start by recognizing instances when the person exceeded expectations and explain why you value this type of behaviour. Then discuss problematic areas. Together with the individual, establish performance goals and discuss how to monitor progress. Set up another review session as a check-point. There will be times when no amount of monitoring can reverse weak performance. When you dont see an appreciable change after ample time and numerous efforts to assist the worker, termination may be the best option. An under-performing employee is generally an unhappy one, and this can negatively impact the rest of your staff. 4. Chronic tardiness/absenteeism. Most employees are late or absent from time to time, but if one of your employees comes in late with alarming regularity or has a high frequency of absence, you must take action. Meet privately and say that youre concerned about the situation. Give him or her a chance to explain the tardiness or absences a compelling personal reason (family problems or a medical condition, for example) may be the root cause. If thats the case, express your support and discuss ways that the person can still meet his or her job-related responsibilities. If the employee has no reasonable explanation, reiterate the company policy and state that habitual tardiness or absence will not be tolerated. Be prepared to take the necessary disciplinary action if the problem persists. 5. A top performer hands in her resignation. When one of your most talented, valuable employees breaks the news that he or she has decided to accept a position elsewhere, your first instinct may be to make a counter offer or try to persuade him or her to stay. But if an employee is determined to move on, neither of these strategies will have an effect. Although its difficult to lose a good staff member, you must realize that peoples professional and personal goals change over time. Ask if the employee would be willing to stay on long enough to help train a replacement. At the very least, he or she should tie up as many loose ends as possible and provide you with a final status report on unfinished projects. Conduct an exit interview, being sure to ask what made the employee decide to leave. Pay close attention to the answer in case it points to a situation you have the power to change (for example, the individual felt there were no further opportunities for advancement). Finally, request their new contact information, so that the person remains part of your professional network. No business is immune from dilemmas that, if not handled wisely and in a timely fashion, could cause decreased productivity, low employee morale and diminished profitability. But by responding strategically, youll find that such problems arise less frequently and pose little threat to your companys continued stability and success

Q.3. How can a firm try to achieve a trade-off between commercial objectives & social objectives? Give example.

Q.4.Are ethics & profits mutually exclusive? Explain why or why not.. Explain how company can make profits ethically.

The most recent incarnation of profit-maximization gone amuck is manifested in the financial services industry. As reported in The New York Times, it is an open secret on Wall Street that many firms use end-of-the-quarter window dressing to make their financial statements appear to be better than they really are. For instance, the management team at Lehman Brothers loaded up on an $85 billion portfolio of risky mortgage-backed securities. They did not want their shareholders and stakeholders to know about this portfolio, because such knowledge could negatively impact the firms stock price and their

executive bonuses. So the management team moved these securities off their books, which the New York Times described as a shell game. This reminds me of the David Mamet movie, House of Games, in which a small-time criminal Mike (played by Joe Mantegna) dupes various nave souls with a multitude of cons and acts of deception. Senior executives at Lehman are on an equal moral footing with Mike the criminal. The only difference is that many of the Lehman swindlers have MBAs and could concoct more sophisticated acts of deception than the fictional Mike. Unlike the movie which was quite entertaining, the cons perpetrated at Lehman Brothers resulted in the largest bankruptcy filing in US history, an event that almost toppled our financial system. Business school education has instilled the ethos that a good manager should win at all costs. In a recent Wall Street Journal article, it was stated that many people blame the business schools for educating their students to focus on manipulating the financial system, and, in that respect, they are partly responsible for producing the managers that have been culpable for the recent corporate meltdowns. After all, the Harvard MBA and former CEO of Enron, Jeffrey K Skilling, was the mastermind of the scheme that manipulated the firms stock prices. The jury convicted him of various crimes, including twelve counts of securities fraud, and he is currently serving a 24 year sentence in federal prison in Waseca, Minnesota. At one of the business schools that I teach at, DePaul University, there is a major effort to incorporate ethics into the curriculum. This represents a sea-change in thinking, namely, that the role of business is not to simply produce leaders who will be solely focused on their self-aggrandizement at the expense of society. Rather, the implication is that business has a role to play beyond profit maximization. Indeed, it suggests that ethics do matter. Q.5.Do you consider it to be desirable that a company should be principled & go bankrupt than to make profits through unprincipled means? Give example. Q.6.Discuss the Indian Management Styles & Systems in consonance with their own cultural ethos.

Q.7.What are attitudes? Discuss how attitudes of people can affect their behavior. An attitude is "a relatively enduring organization of beliefs, feelings, and behavioral tendencies towards socially significant objects, groups, events or symbols" The strength with which an attitude is held is often a good predictor of behavior. The stronger the attitude the more likely it should affect behavior. Attitude strength involves: Importance / personal relevance refers to how significant the attitude is for the person and relates to self-interest, social identification and value. If an attitude has high self-interest for a person (i.e. it is held by a group the person is a member of or would like to be a member of, and is related to a person's values), it is going to be extremely important. As a consequence, the attitude will have a very strong influence upon a person's behavior. By contrast, an attitude will not be important to a person if it does not relate in some way to their life.

The knowledge aspect of attitude strength covers how much a person knows about the attitude object. People are generally more knowledgeable about topics that interest them and are likely to hold strong attitudes (positive or negative) as a consequence. Attitudes based on direct experience are more strongly held and influence behavior more than attitudes formed indirectly (for example, through hearsay, reading or watching television). The Function of Attitudes Attitudes can serve functions for the individual. Daniel Katz (1960) outlines four functional areas: Knowledge. Attitudes provide meaning (knowledge) for life. The knowledge function refers to our need for a world which is consistent and relatively stable. This allows us to predictwhat is likely to happen, and so gives us a sense of control. Attitudes can help us organize and structure our experience. Knowing a persons attitude helps us predict their behavior. For example, knowing that a person is religious we can predict they will go to Church. Self / Ego-expressive. The attitudes we express (1) help communicate who we are and (2) may make us feel good because we have asserted our identity. Self-expression of attitudes can be non-verbal too: think bumper sticker, cap, or T-shirt slogan. Therefore, our attitudes are part of our identify, and help us to be aware through expression of our feelings, beliefs and values. Adaptive. If a person holds and/or expresses socially acceptable attitudes, other people will reward them with approval and social acceptance. For example, when people flatter their bosses or instructors (and believe it) or keep silent if they think an attitude is unpopular. Again, expression can be nonverbal [think politician kissing baby]. Attitudes then, are to do with being apart of a social group and the adaptive functions helps us fit in with a social group. People seek out others who share their attitudes, and develop similar attitudes to those they like. The ego-defensive function refers to holding attitudes that protect our self-esteem or that justify actions that make us feel guilty. For example, one way children might defend themselves against the feelings of humiliation they have experienced in P.E. lessons is to adopt a strongly negative attitude to all sport. People whose pride has suffered following a defeat in sport might similarly adopt a defensive attitude: Im not bothered, Im sick of rugby anyway. This function has psychiatric overtones. Positive attitudes towards ourselves, for example, have a protective function (i.e. an ego-defensive role) in helping us reserve our self-image. The basic idea behind the functional approach is that attitudes help a person to mediate between their own inner needs (expression, defense) and the outside world (adaptive and knowledge). Q.8.Explain 4 life positions of people & their ethical implications.

Q.9.Explain giving relevant examples relationship between Laws & Ethics. The Relation Between Law and Ethics Ethical values and legal principles are usually closely related, but ethical obligations typically exceed legal duties. In some cases, the law mandates ethical conduct. Examples of the application of law or policy to ethics include employment law, federal regulations, and codes of ethics. Though law often embodies ethical principles, law and ethics are far from co-extensive. The law does not prohibit many acts that would be widely condemned as unethical. And the contrary is true as well. The law also prohibits acts that some groups would perceive as ethical. For example lying or betraying the confidence of a friend is not illegal, but most people would consider it unethical. Yet, speeding is illegal, but many people do not have an ethical conflict with exceeding the speed limit. Law is more than simply codifying ethical norms. The following diagram shows the relationship between law and ethics.

Establishing a set of ethical guidelines for detecting, resolving, and forestalling ethical breaches often prevents a company from getting into subsequent legal conflicts. Having demonstrated a more positive approach to the problem may also ensure that punishment for legal violations will be less severe. Federal sentencing guidelines passed in 1991 permit judges to reduce fines and jail time for executives proportionate to the ethical measures a company has taken.

Q.10.What is Deceptive Advertising? What aspects to be considered while advtg. to children?

Deceptive advertising, also known as false advertising, refers to a manufacturer's use of confusing, misleading, or blatantly untrue statements when promoting a product. Advertising law will protect consumers from deceptive advertising through the enforcement of specific legislation. Advertising law and consumer law have basically the same function: to promote truth in labeling. Truth in labeling means that all pertinent information that a consumer should reasonably be aware of should be printed on the label of the product. This will ensure that consumers are protected, and know exactly what they are buying. This limits the level of manipulation by manufacturers and advertisers. There are several different methods for attempting to deceive consumers that are not permitted under advertising law. One way is through hidden fees or the use of surcharges. This means that a company will charge extra fees beyond the advertised price for a certain product or service. This is very common in mobile phone contracts and air travel. False advertising or deceptive advertising is the use of false or misleading statements in advertising. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid, many governments around the world use regulations to control false, deceptive or misleading advertising. "Truth" refers to essentially the same concept, that customers have the right to know what they are buying, and that all necessary information should be on the label. Advertising to children: Is it ethical? Ever since he first started practicing, Berkeley, Calif., psychologist Allen D. Kanner, PhD, has been asking his younger clients what they wanted to do when they grew up. The answer used to be "nurse," "astronaut" or some other occupation with intrinsic appeal. Today the answer is more likely to be "make money." For Kanner, one explanation for that shift can be found in advertising. "Advertising is a massive, multi-million dollar project that's having an enormous impact on child development," says Kanner, who is also an associate faculty member at a clinical psychology training program called the Wright Institute. "The sheer volume of advertising is growing rapidly and invading new areas of childhood, like our schools." According to Kanner, the result is not only an epidemic of materialistic values among children, but also something he calls "narcissistic wounding" of children. Thanks to advertising, he says, children have become convinced that they're inferior if they don't have an endless array of new products. Now Kanner and several colleagues are up-in-arms about psychologists and others who are using psychological knowledge to help marketers target children more effectively. They're outraged that psychologists and others are revealing such tidbits as why 3- to 7-year-olds gravitate toward toys that transform themselves into something else and why 8- to 12-year-olds love to collect things. Last fall, Kanner and a group of 59 other psychologists and psychiatrists sent a controversial letter protesting psychologists' involvement to APA.

In response, at its June meeting, APA's Board of Directors acted on a recommendation from the Board for the Advancement of Psychology in the Public Interest and approved the creation of a task force to study the issue. The task force will examine the research on advertising's impact on children and their families and develop a research agenda. The group will look at the role psychologists play in what some consider the exploitation of children and consider how psychology can help minimize advertising's harmful effects and maximize its positive effects. The group will also explore implications for public policy. Task force members will be chosen in consultation with Div. 37 (Child, Youth and Family Services) and other relevant divisions. Unethical practices? The letter protesting psychologists' involvement in children's advertising was written by Commercial Alert, a Washington, D.C., advocacy organization. The letter calls marketing to children a violation of APA's mission of mitigating human suffering, improving the condition of both individuals and society, and helping the public develop informed judgments. Urging APA to challenge what it calls an "abuse of psychological knowledge," the letter asks APA to: Issue a formal, public statement denouncing the use of psychological principles in marketing to children. Amend APA's Ethics Code to limit psychologists' use of their knowledge and skills to observe, study, mislead or exploit children for commercial purposes. Launch an ongoing campaign to investigate the use of psychological research in marketing to children, publish an evaluation of the ethics of such use, and promote strategies to protect children against commercial exploitation by psychologists and others using psychological principles. "The information psychologists are giving to advertisers is being used to increase profits rather than help children," says Kanner, who helped collect signatures for the letter. "The whole enterprise of advertising is about creating insecure people who believe they need to buy things to be happy. I don't think most psychologists would believe that's a good thing. There's an inherent conflict of interest." Advertisers' efforts seem to work. According to marketing expert James U. McNeal, PhD, author of "The Kids Market: Myths and Realities" (Paramount Market Publishing, 1999), children under 12 already spend a whopping $28 billion a year. Teen-agers spend $100 billion. Children also influence another $249 billion spent by their parents. The effect this rampant consumerism has on children is still unknown, says Kanner. In an informal literature review, he found many studies about how to make effective ads but not a single study addressing ads' impact on children. Instead, he points to research done by Tim Kasser, PhD, an assistant professor of psychology at Knox College in Galesburg, Ill. In a series of studies, Kasser has found that people who strongly value wealth and related traits tend to have higher levels of distress and lower levels of well-being, worse relationships and less connection to their communities.

"Psychologists who help advertisers are essentially helping them manipulate children to believe in the capitalistic message, when all the evidence shows that believing in that message is bad for people," says Kasser. "That's unethical." Q.10,What do you mean by software piracy? Explain.

Software piracy is the illegal copying, distribution, or use of software. It is such a profitable "business" that it has caught the attention of organized crime groups in a number of countries. According to the Business Software Alliance (BSA), about 36% of all software in current use is stolen. Software piracy causes significant lost revenue for publishers, which in turn results in higher prices for the consumer. When you purchase a commercial software package, an end user license agreement ( EULA) is included to protect that software program from copyright infringement. Typically, the license states that you can install the original copy of software you bought on one computer and that you can make a backup copy in case the original is lost or damaged. You agree to the licensing agreement when you open the software package (this is called a shrink wrap license), when you open the envelope that contains the software disks, or when you install the software. Software piracy applies mainly to full-function commercial software. The time-limited or functionrestricted versions of commercial software called shareware are less likely to be pirated since they are freely available. Similarly, freeware , a type of software that is copyrighted but freely distributed at no charge, also offers little incentive for piracy. Types of software piracy include: Softlifting: Borrowing and installing a copy of a software application from a colleague. Client-server overuse: Installing more copies of the software than you have licenses for. Hard-disk loading: Installing and selling unauthorized copies of software on refurbished or new computers. Counterfeiting: Duplicating and selling copyrighted programs. Online piracy: Typically involves downloading illegal software from peer-to-peer network, Internet auction or blog. (In the past, the only place to download software was from a bulletin board system and these were limited to local areas because of long distance charges while online.)

"The cocktail of Ambition fuels corruption & cheating." Comment. A cheat is someonewho pretends to be whathe is not. In order to boost a low self-esteem, he may steal or bribe in order to be recognized. A cheat does not want to admit to what he is. To steal is to remove property from another against his will and take over its use. In the case of cheating in exams, the object stolen is not just something material that can be easily lost. Instead, the object stolen is spiritual good, something intimate to another person's being-the products of his intellect. Stealing demands restitution, that is, the return of the stolen property to its rightful owner. Why do students cheat in exams? a. Students are not ready to be tested b. Students do not understand the directions given c. Students may have inferiority complex d. Students have poor study habits and values e. Teacher teaches poorly and ineffectively GRAFT & CORRUPTION Bribery- a form of graft that refers to the offering of any kind of reward for evildoing, specially in not doing a responsibility. It is the common means for corruption in human society. Examples of Bribery: "Snack Money"- bribe given so that a traffic violator or sidewalk vendor may go away unapprehended. "Express Lane"-practiced mostly in government offices wherein employment could facilicate easy retrieval of papers by giving bribes. Situations where Graft and Corruption are Commonly Practiced: 1. Education 2. Human Relationships 3. Politics

Comment on Violation on ethical ideals in society is common in business with a belief that such a violation are not violation of business principles.

When employees have no ethical principles to follow in the workplace they make decisions based on their own values. However, varying values can create discord on the workplace, so, management needs ethical principles to set standards for employees. Regardless of individual values, ethical principles in the workplace set common workplace values. Having this mutual understanding helps to create greater efficiency and productivity.

Q.14. Discuss the Indian Business Laws & their impact on Indian business behavior.

In such a richly diverse and complex country as India it is difficult to impart generic conclusions that can be used by those doing business there. Regionalism, religion, language and caste are all factors that need to be taken into account when doing business in India. Behaviour, etiquette and approach are all modified depending on whom you are addressing and the context in which they are being addressed. However, most of those doing business in India will do so in cities such as Delhi, Mumbai, Bangalore and Hyderabad and with a particular socio-economic class. This short guide to doing business in India will explore a few cultural facts and their influence on business culture and etiquette. These are in no way meant to be an all-inclusive summary on doing business in India but an introduction. Language Different states in India each have different official languages. Central government only recognises Hindi as the official language of India. However, when doing business in India, English is the language of international commerce. Hierarchy Of all the cultural influences that most impact Indian business culture, hierarchy plays a key role. With its roots in Hinduism and the caste system, Indian society operates within a framework of strict hierarchy that defines people's roles, status and social order.

For example, within companies manual labour will only be carried out by the "peon" (roughly equivalent to a 'runner'). It is not uncommon for the moving of a desk to take hours. This is because no-one in the office will carry out the task but the "peon", who, if otherwise engaged can not do so. Doing Business - Meeting and Greeting When doing business in India, meeting etiquette requires a handshake. However, Indians themselves use the namaste. This is where the palms are brought together at chest level with a slight bow of the head. Using the namaste is a sign of your understanding of Indian etiquette. Names speak volumes about an Indian's background. For example, a Singh will always be a Sikh. The suffix "-jee" ( as in Banerjee) is a sign of a high caste. "Kar" (as in Chandraskar) denotes that person is of Maharashtan high caste. Arabic sounding names will be used by Muslims. When addressing an Indian whom you know personally, always use the appropriate formal title, whether Professor, Doctor, Mr, Mrs or if you do not know their names then Sir or Madam will suffice. When doing business in India, business cards should be exchanged at the first meeting. It is a good idea to have it translated on one side into Hindi, more as a sign of respect as opposed to linguistic necessity. Be sure to receive and give with your right hand. Make sure the card is put away respectfully and not simply pushed into a trouser pocket. Doing Business - Building Relationships Doing business in India involves building relationships. Indians only deal favourably with those they know and trust - even at the expense of lucrative deals. It is vital that a good working relationship is founded with any prospective partner. This must take place on a business level, i.e. demonstrating strong business acumen, and at a personal level, i.e. relating to your partner and exhibiting the positive traits of trustworthiness and honour. Doing Business - Meetings and Negotiations Meetings should be arranged well in advance. This should be done in writing and confirmed by phone. Avoid meetings near or on national holidays such as Independence Day, Diwali or either of the two Eids. Avoid the heat by scheduling between October and March. Punctuality is expected, although being 10 minutes late will not have disastrous consequences. Flexibility is paramount. Family responsibilities take precedence over business so last minute cancellations are possible when doing business. When entering a meeting room you must always approach and greet the most senior figure first.

Meetings should always commence with some conversation. This is part of the 'getting to know you' process. Favourable topics of conversation are the latest business news, the fortunes of the Bombay Stock Exchange or cricket. Avoid talking about personal matters and, if new to India, do not comment on matters such as the poverty or beggars. If your business dealings in India involve negotiations, always bear in mind that they can be slow. If trust has not yet been established then concentrate efforts on building a rapport. Decisions are always made at the highest level. If the owner or Director of the company is not present, the chances are these are early stage negotiations. Indians do not base their business decisions solely on statistics, empirical data and exciting PowerPoint presentations. They use intuition, feeling and faith to guide them. Always exercise patience, show good character and never exhibit frustration or anger. When negotiating avoid high pressure tactics. Do not be confrontational or forceful. Criticisms and disagreements should be expressed only with the most diplomatic language. Indian society has an aversion to saying "no" as it is considered rude due to the possibility of causing disappointment or offense. Listen carefully to Indians' responses to your questions. If terms such as "We'll see", "I will try" or "possibly" are employed then the chances are that they are saying 'no'. Once terms have been agreed you will be expected to honour them. When negotiations end successfully continue the relationship building process with a celebration dinner.

Q.15 .Discuss the role of Government of India in enforcing ethical business behavior.

In modern times, ethics in government have become not only something of great public interest, but also an important area of study in the academic fields of politics and government. This article introduces the basic concepts, issues, and debates surrounding government ethics. It also discusses the meaning and importance of government ethics, different types of unethical conduct in the context of government, and issues and debates surrounding the establishment of ethical codes in government. What is Ethics? We often hear the term government ethics used in the media, and by politicians and political commentators yet it isnt always clear what exactly is meant by this term. A useful way to approach the discussion is to begin by examining the word ethics. Generally speaking, ethics refers to the study of right and wrong behaviours. In our daily lives we are constantly faced with important questions about what to do. Should I keep my promise or should I not? Should I report a lost wallet, or simply keep the money inside? Should I give to the panhandler or keep my change? Ethics, as a field of study, attempts to find principles and rules for answering such questions.

Professional Codes of Conduct An important field of study in ethics is professional codes of conduct. Many professions, such as the fields of medicine, law and education, have developed sets of rules or guidelines that govern members' conduct. These codes of conduct set out very clear guidelines of what are considered right and wrong behaviours within the particular profession. The doctors Hippocratic Oath is one of the most famous examples of a professional code of conduct. Often recited by medical students upon graduation, this Oath usually contains a promise to help sick persons to the best of ones ability and to avoid harm whenever possible. Ethics & Government Government ethics refers to a particular professional code of conduct for those who work in and for government. Government ethics, therefore, involves rules and guidelines about right and wrong behaviours for a host of different groups, including elected leaders (such as the Prime Minister and Cabinet Ministers), elected representatives (such as Members of Parliament), political staff, and public servants. These groups are faced with a variety of difficult and very unique ethical questions. Should a public official be able to hire his/her own company to work for the government? Should elected representatives be allowed to accept expensive gifts from lobby groups? When can a public official divulge personal information about citizens? How should public servants treat their co-workers and subordinates? Government ethics identifies what are correct behaviours in each of these situations and establishes rules of conduct for public officials to follow. Government Ethics & Democratic Participation So why should we care about government ethics? One reason often cited is the importance of government ethics to democratic participation. As a democratic nation, Canadas political system only functions properly if its citizens are actively engaged in the democratic process. If, however, Canadians came to believe that politicians and governments were generally unethical or corrupt, they might develop a strong sense of apathy towards their democracy. This, in turn, may result in people withdrawing from democratic participation altogether. You may have heard comments such as: "Why bother voting? They are all crooks anyway." Government ethics can play an important role in ensuring this does not happen. By setting out clear rules that public officials must abide by, and by holding persons accountable when those rules are broken, Canadians can have confidence in their elected representatives and political system. It goes without saying that there will always be scandals that violate ethics. However, Canadians can take some comfort in knowing that when unethical behaviour does occur, appropriate actions are taken to punish the person(s) responsible. Government Ethics & Effective Public Administration

Another common argument for government ethics focuses on effective public administration. Collectively, Canadian governments at all levels are responsible for billions of dollars in taxpayers money and billions more in public assets and property. Moreover, governments are responsible for providing very important services to citizens, such as social services, public utilities, police services, and national security. Citizens, therefore, have a strong interest in ensuring this public money and property, as well as services upon which they depend, are managed as efficiently and effectively as possible. This requires taking precautions against activities that cause widespread government waste and inefficiency. Government ethics, properly enforced, can be a valuable means for protecting against government waste and ensuring effective public administration. Such a code can prohibit many of the activities that lead to waste, including theft by public officials and use of government property for private gain. It can also address issues such as bribery and conflicts of interest; activities that can lead public officials to sacrifice the public interest in the administration of programs and services for private gain and benefit. Unethical Conduct By Public Officials What sorts of conduct are commonly considered unethical? With respect to government and public officials, several different sorts of conduct are often held to be unethical: Theft & Fraud by Public Officials Governments in Canada manage billions of dollars in public money annually and own billions more in physical property and assets. This includes everything from land and buildings, to vehicles and aircraft, to office equipment and furniture. One of the more serious ethical issues in government is theft of public property by public officials. Such theft can range from the trivial, such as taking home office supplies, to the more grave, such as stealing millions of dollars from the public purse. Fraud is one of the most common, and costly, forms of theft by public officials. Often referred to as theft by deception or trickery, fraud occurs when an individual deliberately deceives others in order to unjustly gain money, property, or services. There are many different ways in which public officials attempt to defraud government and taxpayers. They may, for example, submit false expense reports for costs they did not incur, or provide inflated work invoices for services they did not render. In the most extreme situations, public officials may participate in elaborate schemes of deception to divert large amounts of public funds from government programs and services into their own pockets. Improper Use of Government Property Theft and fraud, however, are not the only ethical concerns regarding government property. Another important issue is the use of public property by public officials for private benefit. This would include, for example, using ones office telephone for personal long-distance calls, or using government vehicles for personal transportation. Such abuses of government property are not exactly theft. The public official is not actually stealing the office telephone or the government vehicle. Instead, the issue concerns the purpose for which the government property is being used. There is an expectation that equipment and

transportation will be used only for activities associated with the performance of public duties, and not for purely personal reasons or for private benefit. Bribery & Influence Peddling Another important issue in government ethics centres on public officials and acts of bribery. Bribery occurs when a person of authority is offered, and accepts, some personal benefit in exchange for performing some action. A public official may, for example, be offered money, property, or free services. In exchange, s/he agrees to take some action that benefits the giver of the bribe, such as voting a certain way on a piece of legislation, or turning a blind eye to some illegal activity. Influence peddling is a particular form of bribery in which a public official actively sells his/her ability to influence government decision-making. Regular forms of bribery involve a private individual or group approaching a public official and attempting to buy interests. In the case of influence peddling, however, it is the official him/herself approaching others in an attempt to sell access to government, services or otherwise. Bribery and influence peddling can be very detrimental to public perceptions of government, as well as effective public administration. In a democracy, we tend to view our bureaucrats and elected officials as being responsible to, and servants of, the general public. Accordingly, there is an expectation that these public officials will act impartially and objectively in the performance of their official duties, with the goal of achieving the public's best interests. When a public official acts on a bribe, however, s/he is no longer acting in the publics best interest, but rather in the interests of the particular person or group paying the bribe. Conflict of Interest & Self-dealing Another common issue in government ethics is conflict of interest. This occurs when a public officials private interests are such that they may influence the performance of his or her public duties. The concern here is often the same as with bribery and influence peddling. Public servants and elected officials are expected to exercise impartiality and objectivity when performing their official duties, and should act in the publics best interests. When there is conflict of interest, however, there is a concern that the public official may favour some interest other than the general public. Conflict of interest arises in many different situations. Self-dealing is one of the most obvious ones. This occurs when an individuals activities in his/her official capacity involve dealing with him/herself in a private capacity, often for personal benefit. A classic example is a public official using his/her office to hire their own private company to work for the government. The concern is that the public official may choose his/her own company instead of other, better options available, simply because they desire the profits from the government contract. Moreover, s/he may be very lax in ensuring the public gets full value for its money. Concerns over conflict of interest can also arise when public officials deal with persons with whom they have close relations, such as family members, close friends, and business partners. The concern here is that the public official will place the interests of this particular individual above the greater interests of the public.

Many countries have implemented conflict of interest rules. Public officials may be required, for example, to divest their business interests prior to taking office. This may involve selling the interest, or placing it temporarily under the control of someone else (for example, placing it in a trust). Officials may also be required to take certain precautions when dealing with situations that potentially involve conflict of interest. They may, for example, be required to excuse themselves from certain government decisions where they have a private interest at stake, or, at the minimum, disclose the nature of their interest publicly. Divulging Confidential Information Public servants and elected officials are often privy to all sorts of sensitive information, such as military/security secrets or personal information about citizens (criminal records, tax information, medical histories). An important area of government ethics is concerned with the conduct of public officials in regard to this sensitive information. Generally speaking, there is often an expectation that public officials will keep this information confidential and will not inapprpriately divulge what they know. Confidentiality can be important for different reasons, depending on the situation. In the case of military secrets, confidentiality is often viewed as essential to the physical security of the nation and its people. Divulging such secrets (commonly referred to as treason) is considered so unethical that it is punishable by long prison terms or even execution in some countries. In the case of personal information, confidentiality is important to personal privacy and dignity. In many countries individuals have the right to keep personal information private; government officials are obliged to respect that privacy. Improper Conduct Post-Employment To this point, much of the discussion has focused on unethical activities by public officials while in office. Another developing area in the study of government ethics, however, focuses on the conduct of public officials as they make the transition from the public service to private employment. There are many potential issues here, ranging from conflict of interest, to improper use of confidential information, to bribery and influence peddling. Prior to leaving office, for example, a public servant or elected official may grant favours to certain individuals or groups as a means of securing future employment. Again, the basic concern here is the impartiality of the public official in the performance of his/her public duties. The desire to secure future employment may lead the public official into a conflict of interest situation, or, in more serious cases, into situations of bribery or influence peddling. Another concern is the activities of government officials once an individual is in the private sector. Former officials may take advantage of information s/he obtained in performing his/her public service duties, information that is unavailable to the general public. Such individuals may have confidential information about a future government policy; this information could offer the former public servant a distinct advantage in the marketplace with respect to investing, for example.

Former officials may also use their connections to gain preferential treatment or privileged access to government after leaving office. This is particularly worrisome if the former official joins a private lobby group and is able to use his/her connections to gain unfair advantages for others. Many countries, in fact, enforce a cooling down period in which former government officials are required to wait a period of time after leaving office before becoming a private lobbyist. This is not unlike the practice followed by individuals who have worked, in private enterprise, with a particular firm, and then left that firm to set up shop, either with another company or independently. Often there is a moratorium on working with particular clients, or with a given industry. Immoral Conduct by Public Officials One of the more controversial areas of government ethics is the personal moral conduct of public officials. This would cover issues such as sexual harassment, discrimination, drug abuse, and extramarital affairs. The underlying concern here is whether the public servant or elected official is a person of good moral character and worthy to hold public office. Many countries prohibit some forms of immoral conduct, especially those directly linked to the performance of ones public duties. For example, public officials are often expected to treat co-workers and subordinates with a certain level of respect, and are prohibited from engaging in certain activities such as sexual harassment or discrimination on the basis of gender, race, religion, or sexuality. Public officials are also often expected to be honest in relations with superiors and the public in general. Lying by a public servant can often be grounds for dismissal. Regulation of other forms of immoral conduct, in particular those that do not have a direct link to ones official duties, is a much more controversial topic. In many countries, public officials are expected to adhere to high moral codes in all aspects of their lives. Even in Western democracies, voters often hold elected politicians to high moral standards. Some may argue, for example, that persons whom engage in extra-marital affairs in their private lives or who have had past drug abuse problems have poor moral character, and cannot be trusted as public officials. On the other hand, it could be argued that judgement of public officials should be limited to their professional qualifications and work, not their private lives. This view would hold that public officials have a right to a certain level of privacy in their personal lives, and should be allowed to withhold some aspects of life from the public record.

Regulating Ethical Conduct: Issues & Debates What to keep in mind when examining ethical codes in government When examining government codes of ethics it is important to consider key issues, such as which ethical rules are being included or excluded, specifically how those rules are being set out, and what procedures and mechanisms are in place to ensure adequate accountability and transparency. The following section provides an introduction to these important issues and debates. Establishing a Code of Ethics

In establishing a Code of Ethics to regulate the ethical conduct of public officials, the particular rules and guidelines to be recognized are of prime importance. Most agree that a government Code of Ethics should include prohibitions against severe and clear cases of unethical conduct, such as theft, fraud, treason, bribery, self-dealing, and so forth. However, there is often debate on what else should be included. Some argue, for example, that ethical guidelines for public officials should go much further, prohibiting certain activities even when no actual unethical behaviour has occurred. One example of this would be a complete prohibition on public officials receiving gifts from private individuals, no matter the value of the gift, and regardless of whether or not it involves an actual case of bribery, influence peddling, or conflict of interest. One might support this broader ethical code of conduct on the grounds that permitting any sort of gift receiving, no matter how trivial or benign, encourages more serious unethical conduct. One might also argue that such ethical rules are important in maintaining a positive image of government amongst citizens. The idea here is that a perception by the public that government is corrupt or unethical is just as harmful to society as actual instances of corruption. Another controversial issue is whether or not government codes of ethics should include rules of good moral character for public servants and elected officials. This would include, for example, being an upstanding citizen in ones community and not engaging in morally frowned upon activities, such as drug use, frequenting establishments of disrepute, or engaging in certain sexual conduct. For some, government codes of ethics should only require public officials to be good employees; in this view, such codes should only regulate the work-related activities of said officials. For others, a Code of Ethics should demand public servants and elected officials to be good persons, and, as an extension, should outline rules governing how these officials conduct themselves both at and outside the workplace. Setting Out a Code of Conduct A second issue focuses on how a Code of Ethics for public officials should be set out. There are several different options available: Criminal Law: One means of setting out ethical rules for public officials is through criminal law (for example, through the Criminal Code of Canada). Under such an approach a violation of an ethical rule is considered a criminal offence, one that would be punishable by severe sanctions and penalties, such as imprisonment. Formal Ethics Legislation: Ethical rules for public officials may also be enshrined in formal pieces of legislation passed by the government. Ethics legislation of this sort will often be very encompassing, outlining different ethical offences, mechanisms for investigating and prosecuting unethical conduct, and various penalties for violating an ethical rule. Informal Ethics Guidelines: Finally, ethical codes of conducts may be drawn up as informal guidelines. These rules are not formal laws (unlike the previous approaches outlined), but are simply internal policy developed by the government to guide public officials in their conduct.

In many cases, a government will use several of these means in setting out ethical rules for public officials. Governments will often look to criminalize more serious ethical offences, such as theft, fraud, bribery or treason, and will prohibit them under criminal law. Other less severe conduct, such as conflict of interest or improper use of government property, might be regulated through formal ethics legislation or an informal ethics guideline. A government may also use a variety of different pieces of legislation and guidelines for different groups of public officials. Elected politicians, for example, may have different ethics legislation governing their conduct than public servants and bureaucrats. Which means to use will often depend on the objectives of the government of the day. If there is a desire to have a large amount of control over ethics investigations, in particular, investigations of its own people, then a particular government may prefer to have more informal ethics guidelines. As these guidelines are not formal laws, but simply internal policy, they have the advantage of being easily changed or disregarded whenever the government feels it is necessary to do so. If, however, a government desires to have a regularized and more permanent set of ethical rules, it may prefer to rely more on criminal legislation or a formal code of ethics set out in detail in legislation that is passed by the elected officials of a given legislature. Accountability & Ethics Commissions Today, another common issue in government ethics is accountability. What does this term mean? It is useful here to think about a Code of Ethics as a rulebook that outlines what is expected of public officials. It, in essence, sets out the rules of the game. Accountability, on the other hand, refers to what happens when the rules of the game are broken. It involves holding the person/s accountable when they engage in unethical behaviour. Accountability, then, includes a number of important topics. For example, how are allegations of unethical conduct made and investigated, and who has the responsibility to undertake such investigations? Should a separate ethics agency be created, or should the police handle it? Who should prosecute and adjudicate ethics cases? Should it be an ethics commissioner, the government, or the courts? Finally, what should the punishment(s) be for violating ethical rules? Should there be fines, jail time, or other forms of disciplinary action? One of the most important issues regarding accountability is the structure of the agency that is responsible for overseeing government ethics. Many governments, including the Canadian federal government, have established an ethics office or commission, usually headed by an ethics commissioner. What should be the mandate of such a commission? Some argue that an ethics commission should have the responsibility for investigating and reviewing the actions of public officials and, as such, should be granted extensive investigative and prosecutorial powers. This would include, for example, the power to demand testimony and documents from public officials, as well as to charge whomever is believed to have violated an ethical rule. Also important to such a mandate is ensuring that an ethics commission has real independence from government to investigate and prosecute ethical offences, particularly when it is investigating government officials and employees.

Others, however, counter that a more advisory role for an ethics commission is all that is required. This view holds that the only function of such a commission would be to give advice to the government on how to handle ethical issues, and to counsel individual public officials when they find themselves in an ethical dilemma. This view also asserts that traditional institutions, such as public inquiries, the police, and the courts, should be relied upon to investigate and prosecute unethical conduct. Accordingly, there would be no need to grant strong investigative or prosecutorial powers to an ethics commission, or even to ensure that it has much independence from government. Transparency, Disclosure & Public Awareness Another issue is transparency. If ethical codes of conduct are the rules of the game, and accountability is what happens when those rules are broken, transparency is being able to know when and where abuses of the rules are taking place. If there are procedures and mechanisms in place to alert us when an ethical rule is violated, then we say there exists a high level of transparency. If, however, public officials are able to hide or keep secret their behaviour(s), then there is little or no transparency. This is very important to the effectiveness of any ethical code of conduct. If the rules are to be enforced, and persons are to be held accountable, then we must know when abuses of the rules are taking place. There are many different ways to encourage transparency. One possibility is the creation of some ethics oversight body that regularly reviews actions taken by public officials. Such a body may be a formal ethics agency or commission, or a series of legislative committees headed by elected politicians. Disclosure requirements for public officials are another means of providing transparency. This would include, for example, requiring public servants and elected politicians to publicly disclose financial assets and other relevant information prior to entering office. Public officials may also be required to disclose any possible conflict of interest situations during the course of carrying out their official duties. Whistle blower legislation is also often considered an important means of ensuring transparency. In some cases public officials become aware of the unethical conduct of other public officials, but, because of fear, they do not come forward to report such incidents. Many fear reprisals such as losing their jobs or being ostracized from their respective professional communities. Many countries have passed whistle blower legislation to protect these public officials and make it easier for them to come forward with allegations of unethical conduct. Public awareness and attention can also be important with respect to fostering greater transparency. The public needs to be able to find out when unethical conduct has occurred; it also needs to know what is being done to hold public officials accountable for such behaviour. Several means are available to promote such public awareness. The government can be required to make relevant information widely available to the public, such as the financial assets of public officials and the findings of government reviews and investigations. Further, the government can allow the media and the public access to government documents, for example, through freedom of information legislation. Indeed, public access to government documents has often proved to be an important means for bringing to light unethical

conduct in the first place, as the media or concerned members of the public often engage in their own investigations of public officials.