Vital Tidings

ETHICAL/UNETHICAL ISSUES IN TAKEOVER (Finance)

Blog by--Mukul Roy
Q1802 (A28)

“HOSTILE TAKEOVER"

In business, A TAKEOVER is the purchase of one company (the target) by another company.
The management of the target company may be agree or disagree with a proposed takeover, and it is concluded in the following takeovers:

FRIENDLY TAKEOVER:

Friendly takeover, can also be called as “Negotiated Takeover”. A takeover can be defined as a friendly takeover when the targeted company do agree through negotiations between the existing company or bidder who wants to takeover the conpany. This kind of takeover is regain to further some common objectives of both the owner and bidder.

HOSTILE TAKEOVER:
When a company is not willing to sell their company and they they are able to handle the company efficiently, but the bidder wants to gain that particular company forcefully from the existing owner can be defined as hostile takeover. In this case bidder company wants to have the company by any cost.

CHALLENGES (HOSTILE TAKEOVER):
1.Organizations have to laid off their employees an it affect the economy very much.
2.It is very costly and and organizations have to take risk as well.
3.Companies have to face a heavy debt situation.

Ethical Activities in Finance Field (Current scenario):
Corporate Social Responsibility (CSR) is burning topic to consider now a days. Sometimes it is seen that, though organizations are in very much profit margin but they are not willing and not practicing CSR. But in the other hand some organizations are practicing it as considering it as their duty and they are practicing it very much willingly which is very much appreciative.

The top 10 companies with the best CSR reputation are,

1.Microsoft, 2.The Walt Disney Company, 3.Google, 4.BMW, 5.Daimler, 6.Sony, 7.Intel, 8.Volkswagen, 9.Apple, 10.Nestle

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ETHICAL/UNETHICAL ISSUES IN HRM (Human Resource Management)

Blog by-Mukul Roy

Q1802(A28)

“NEPOTISM”

Evolved from Greek word “NEPO” means Nephew.

NEPOTISM is reffing professional favorites with family members in business or politics or Corporate.

In our case -When one uses a position of power or authority to influence the hiring or promotion process of spouse, partner, sibling, child or other relative can be defined as Nepotism.

COMMON TWO SECTOR OF HRM WHERE NEPOTISM IS PRACTICED MOSTLY:

*Nepotism in RECRUITMENT and SELECTION:

Success of an organization is mostly dependent on its workforce. And HR department apply the recruitment and selection function to hire employees for the particular organization. If nepotism is practiced to hire an employee instead of hiring qualified employees, of course the result of it will be negative for that organization.

If a non- competitive person is employed:

* Business Goals will not be achieved.

*Productivity will be reduced.

*Employees will not be satisfied.

*Employee's turnover rate will high.

*Nepotism in PROMOTION:

The person should be promoted who has the capability to handle the activities of a particular post and to handle the subordinates as well. If nepotism is in there instead of promoting the capable or right person, surely organization will fail to meet their goal.

If nepotism in promotion:

*Conflict will arise.

*Dissatisfaction among Employee.

*Performance will be reduced.

WAYS TO STOP NEPOTISM IN WORK PLACE:

1. Qualifications should be considered.

2. The person is not having enough quality should be rejected.

3. Responsibility of an Human Resource Management officer should not becompromised.

4. The Unequal performance should be reviewed.

5. Unprofessional behavior must be stopped.

6. The job skier must have ethical mentality.

Ethical Activities in HRM filed (Current scenario):

Feminism is mostly practicing in western countries like Iceland, Finland, Sweden, Netherlands rather than the Asian countries like Pakistan, Bangladesh, China, India. Women are getting same facilities (sometimes more than men) comparing with men in the organizations as employees in those feminist countries which can be addressed as very much ethical activity in Human Resource Management field.

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ETHICAL/UNETHICAL ISSUES IN ADVERTISING (Marketing)

Blog by- Mukul Roy Q1802 (A28)

"Advertising"

In this era of globalization and deregulation, advertising has acquired a new status. But it becomes a topic of dispute when an advertisement is considered as unethical.

PRINCIPALS SHOULD BE FOLLOWED WHILE ADVERTISING:

• Affability• Veracity • Public Duty • Veracious presentation • Compare• Mimicry •Health and Safety• Abrogation of Injury • Environmental awareness.

IN THE FOLLOWING SITUATIONS ADVERTISING WILL BE CONSIDERED AS UNETHICAL:

*If one company underestimate the substitute product of another company.

*If it gives false information to increase it's value.

*If it tried to hide it's negative effect.

*When it is faithless.

Different ways of Unethical Advertisement (Current scenario):

SURROGATE ADVERTISING:

When a particular product is banned by law and advertising is being conducted of that product then it's called Surrogate Advertising.

Example: Though Fosters and Kingfisher beer brands are banned, it's seen that often these products are promoted.

PUFFER ADVERTISING:

When a product is praised as being superior to all others, though there is no evidence to back up the claim, it's called as Puffer Advertising. It is done to attract buyers.

Example: Parachute will assure your hair as world’s best—REALLY ???!!!

EXAGGERATION:

When any company do falde claims of it's product in the advertisements can be defined as Exaggeration Advertising.

Example: Tide detergent is claiming that– “White ho to Tide ho.”, that means only Tide detergent will make your cloth white which is a false claim.

SEDUCTIVE:

There are some countries where religious beliefs are followed strictly, in there Seductive Advertising is not allowed and this advertisement is considered as unethical. But some companies use these techniques to sell their product.

Example: Mango Slice.

CHILDREN IN ADVERTISING:

Involving children on advertising can be considered as absolutely unethical as children are not aware about the quality of any product.

SOME STAPES FOR IMPROVING ADVERTISING

1. The authority which is made to regulate the Advertisements should be very much aware about unethical advertising.

2. The organizations should also think about the customers health and their rights.

3. The consumer should also be very much aware abut unethical advertising and if they fine any advertising unethical they must to raise voice to stop it.

4. Government must to give more attention and make more authority bodies to stop unethical advertising.

Ethical Advertising in Marketing field (Current scenario):

Goldmines Teleflilms which is a very renowned and popular film industry. Before starting any movies they use to give advertisement to aware people that, "SMOKING & DRINKING ARE VERY INJURIES TO HEALTH".

Not only that, they also talk about the people show their photos those are suffering from various types of deadly disease which is a ethical and very much appreciative advertising.