Unit 4: Application of Ethical

Standards LH 13
Manufacturing- duties of manufacturer,
consumer rights, informed consumer, consumer
politics, consumer privacy, ethical consumption,
classification of unethical behavior, legal versus
morale and ethics business ethics; in the market
place- Product positioning and competing,
pricing & its consequences, packaging and
labeling, brand management and imperatives,
advertising & communication, exploitative
nature of advertising; finance and value-
Financial accounting and standards,
responsibilities of financial institutions, capital
market and its regulator.
 Manufacturing- Duties of Manufacturer
• The core objective behind the evolution of business
ethics is oriented towards the application of ethical
standards in conducting business.
• Ethical standards refer to principles of honesty,
fairness, and integrity to perform activities by
individuals or entities.
• There is not one consistent set of standards that all
companies follow, but each company has the right to
develop the standards that are meaningful for the
organization.
• Ethical standards are not always easily enforceable, as
they are frequently vaguely defined & somewhat open
to interpretation.
• Manufacturing
• Manufacturing denotes the process of
converting raw materials, components, or parts
into finished goods that meet a customer’s
expectations or specifications.
• Manufacturing refers to a range of human
activity, from handicraft to high tech, but is
most commonly applied to industrial
production, in which raw materials are
transformed into finished goods.
• A person, an enterprise, or an entity that
manufactures something is known as a
manufacturer.
 Duties of Manufacturer
• Duties of a manufacturer are not simple as other
businesses.
• Maintaining prevailing ethical standards and complying
with laws and regulations are important for all
businesses.
• Manufacturing companies face more challenges because
of the potential for harming employees, consumers, &
the natural environment during the course of action.
• Consumers face many risks in the market like dangerous
and risky products, poorly constructed products, failure
to respect warranties & more
• Implementing policies, procedures & controls to reduce
these risks are not only ethical duties, it is often a legal
requirement.
• It is very difficult to describe precisely the
duties of a manufacturer as there are different
nature and types of industries.
• However, some of the fundamental duties of
manufacturers can be enumerated as follows:
1. No Force Labor
2. No Child Labor
3. No Discrimination
4. No Harsh and Inhumane Treatment
5. Safe and Hygiene Working Condition
6. Harmonious and Secure Workplace
7. To Reduce Environmental Effects
1. No Force Labor
The manufacturer should acknowledge the
right of employees to leave their job after a
notice and should not use any form of forced
or involuntary labor.
2. No Child Labor
Child labor refers to the employment of
children in any work that deprives children of
their childhood, interferes with their ability to
attend regular school, and that is mentally,
physically, socially or morally dangerous and
harmful. Thus manufacturer should not use
child labor strictly.
3. No Discrimination
The manufacturer should not apply any type of
discriminatory practice with regards to recruitment,
compensations, access to training, promotion,
termination, salary & benefits, etc. on basis of race,
caste, religion, nationality, age, physical or mental
disability, gender, sexual orientation, etc..
4. No Harsh and Inhumane Treatment
Manufacturer should treat their employees with
respect and dignity. Employees should be protected
from sexual harassment, racial harassment, and any
form of abuse.
[Link] and Hygienic Working Condition
Manufacturer should provide a working
environment that ensures safety of its workers
that will prevent work related injuries and
accidents. Similarly, a hygienic worming
condition where access to toilet, drinking water,
and other required facilities should be provided.
6. Harmonious and Secure Workplace
A manufacturer is responsible for ensuring that the
workplace for the staff members is a harmonious one.
He has a legal & ethical responsibility to ensure
workers are not subject to any forms of workplace
hostility.
7. To Reduce Environmental Effects
Manufacturers are confronted with wide range of
environmental challenges, from the very beginning to
the end after consumption. It is the duty of the
manufacturer do his best to minimize the harmful
effects towards the environment.
 Consumer Rights
• Consumer refers to someone who acquires goods or
services in exchange process for direct use of ownership
rather that for resale or use in production &
manufacturing.
• Consumer rights are generally a reference to a body of
law that is relevant to things the producers of goods must
do to protect customers from harm.
• The legal or moral entitlement in favor of consumer is
known as consumer rights.
• Consumer rights refers to a consumer’s right to safety, to
be informed, to choose and to provide manufactures with
information concerning their products when they make a
purchase.
• Manufacturers that violate consumer rights are subject to
lawsuits by their customers.
• Generally accepted basic consumer rights are:
– a. Right to safety: This right is aimed at the
defense of consumers against injuries caused by
products, and implies that products should cause
no harm to their users if such use is executed as
prescribed. Product liability refers to the
responsibility of manufacturers for injuries and
damages caused by their products.
– b. Right to be informed: This right is aimed at
providing enough product information and
knowledge to consumers so that they can make
responsible buying decision. As well as protecting
consumers against dishonest or misleading
advertising and labeling.
– c. Right to choose: The declaration of this right is
aimed to make consumers able to select goods &
services they need & want to purchase, from
range of goods and services offered in alternative
price, quality and services.
– d. Right to be heard: The right under this
guideline is aimed to have consumers’ interests
represented in the making and execution of
government policy, and in development of
products & services. Consumers should be able to
express legitimate complaints to appropriate
parties. Many companies expend considerable
effort to endure full hearings for consumer
complaints.
– e. The right to be educated about purchases: This
right is aimed to make consumers educated
through detailed product information regarding
dosage, possible side effects, methods of use,
storage, safety measures, precaution, etc.
– f. The right to courteous service: This right is hard
to legislate, but as consumers become increasingly
knowledgeable, they are more willing to complain
about bad service. Consumer hotlines can also be
used to voice service-related issues.
– g. The right to healthy environment: The
declaration of this guideline of consumer rights is
aimed to live and work in an environment that is
non-threatening to the well-being of present &
future generation.
 Informed Consumer
• Consumer should have access to enough
education and product information to make
responsible buying decisions.
• Companies in their efforts to promote and sell
their goods & services, can easily neglect the
rights of consumers to be informed.
• Consumers need certain amount of information
about the goods & services to make a rational
choice.
• But in practice, often this information is not easily
obtained, particularly in the products originated
from developing countries.
• One of the fundamental rights of the
consumer is ‘the right to be provided with
adequate information about products.’
• The consumer must get a fair chance of
choosing from the range of goods and services
available in the market place.
• Only the informed consumers can enjoy this
right.
• It is the first and foremost duty of producer
that the consumer must be provided with
complete, unambiguous and explicit (clear)
knowledge about the products.
• The information must contain details regarding the
contents of the product, safety warning, product
care instruction, etc..
• The information should be written in the plain and
understandable language, which is self-explanatory.
• Many packaged good makers include toll-free
customer service numbers in their product labels so
that consumers can get answers when they have
questions about a product.
• To protect their customers and avoid claims of
insufficient disclosure, businesses often include
warnings on products.
• Consumer information is the most important
element for consumer protection.
• A consumer treats every purchase as an important
investment. Making an uninformed investment may result in
losses.
• Being an informed consumer is advantageous to the
economy, market and consumers.
• An informed consumer is capable of making sensible
decisions, gains an insight about a product prior to its
purchase.
• Consumers get product information from multiple sources,
like, government publications, regulatory authorities, social
networks, suppliers, media, salesperson, catalogues, etc.
• Only informed consumers can be happy with their choice of
goods and services.
• Thus, in order to be respected within the field of business
environment, a business must always be open-minded in
providing particular information to make consumers
informed.
 Consumer Politics
• Consumer politics is a term related to the
movement of the consumers expressing through
critical consumption, in the form of a pledge
(promise) of allegiance to the goals of certain social
movements.
– Critical consumption is the conscious choice of buying
or not buying a specific product according to ethical and
political beliefs. The critical consumer recognizes the
importance of considering some characteristics of the
product and its realization, such as environmental
sustainability and respect of workers' rights.
• The critical consumer can sympathize with certain
social movement goals & contributes towards them
through modifying their consumption behavior.
• Political consumers may act individually or
collectively.
• Political consumers are defined as people who
state that they have boycotted or buycotted
products for political, ethical or environmental
reasons.
• A boycott is an act of voluntary & intentional
nonparticipation from using, buying, or dealing
with a person or organization or country as an
expression of protest, usually for social, political,
or environmental reasons.
• A Buycott is to buy products (of a company,
country, etc.) to support its policy or to counter a
boycott.
• Consumer politics believes that politics needs to
be responsive to the whims (a sudden desire or
change of mind) and desires of the marketplace.
• It aims to change objectionable political, ethical
or environmental practices in the marketplace.
• Different authors have described consumer
politics as a political consumerism.
• Political consumers choose particular producers
or products because they want to change
institutional or market practices.
– political consumerism The standpoint that
consumption decisions are also political or ethical
statements and that consumers can collectively
influence the world through their decisions.
• Political consumption is widely assumed to have a positive
relationship with civic (civil or community) and political
engagement.
• They select brands that are pro-social & protest or
challenge socially irresponsible brands.
• The effectiveness of consumer politics is becoming most
threatening to corporate giants & SMEs (Small & Medium-
sized Enterprises).
• Thus corporations are operating in more socially or
environmentally responsible ways as well as reporting their
activities in these respects.
• Many feel that corporations are invading people’s privacy,
manipulating politics & government, MNC’s are
outsourcing, non-eco-friendly manufacturing & waste
disposal, sweatshops, etc. give rise to various political &
ethical issues. These controversies are the principal sources
of the potency of consumer politics.
 Consumer Privacy

• Privacy refers to the freedom from intrusion into one's

personal matters, and personal information
• (Whereas, confidentiality refers to personal information
shared with an attorney, physician, therapist, or other
individual that generally cannot be divulged to third
parties without the consent of the client.)
• Consumer privacy, also known as customer privacy,
involves the handling and protection of sensitive
personal information that individuals provide in the
course of everyday transactions.
• This involves exchange or use of data electronically or
by any other means, including telephone, fax, written
correspondence, and even direct word of mouth.
• As the internet has evolved into a medium of
commerce, consumer data privacy is a growing
concern.
• Nobody wants to share everything with others because
they need some privacy and confidentiality in their life.
• But as far as privacy is concerned, everyone is
disallowed from interfering in the personal matters of a
person.
• However, in confidentiality, some specified and
trustworthy people are allowed to have access to the
information.
• Privacy protects individuals from disclosures that can
shame, interfere in one’s private life, hurt loved ones,
& lead to self-incrimination (saying or doing something
that shows that you are guilty of a crime).
• Consumer privacy is a form of information privacy
concerned with the legal and political issues arising from
the collection and dissemination of data by business or
merchants.
• Consumer privacy enables intimacy & develops personal
relationship, trust & confidentiality that underlie (be the
cause of) client-professional relationship.
• With the advent & evolution of th World Wide Web &
other electronic methods of mass communications,
consumer privacy has become a major issue.
• Personal information about consumers is valuable not
only to business but also to the criminals.
• Personal information can be stolen & sold online.
• Online purchases & even random web surfing can be
tracked without a consumer’s knowledge.
• Privacy is a fundamental human right recognized in most
countries & in all major international treaties and agreements
on human rights.
• Research suggest consumers remain suspicious even for
genuine business deals.
• But there are consumers still willing to provide personal
information, despite the potential risks.
• A challenge for companies today is meeting their business
needs while protecting consumers’ desire for privacy.
• Consumers are aware of the information collection but are
unaware how companies use their personal information they
collect.
• There must be a balance between right to privacy and
business needs.
• It is the right of every consumer to be left alone in his
personal matters because everybody s his personal life. He or
she can draw a boundary on the access of his/her information
 Ethical Consumption
• Ethical consumption means tendency of choosing to purchase
goods for consumption that are ethically sourced, ethically
made and ethic ally distributed.
• Ethical consumption is about recognizing the power that people
have, as a consumer of goods & services, in influencing business
to be more sustainable, ethical & accountable.
• Ethical consumption is also known as ethical
consumerism, ethical purchasing, moral purchasing, ethical
sourcing, ethical shopping or green consumerism.
• It is the practice of purchasing products & services produced in
a way that minimizes social and or environmental damage,
while avoiding products & services deemed to have a negative
impact on society or the environment.
• Ethical consumption is the conscious & deliberate choice to
make certain consumption choices due to personal moral beliefs
& values.
• Ethical consumerism, is a form of political activism based on
the assumption that purchasers in markets consume not
only goods but also the process used to produce them.
• By choosing or not choosing to purchase the product you are
supporting the product & the process of its production.
• Exercising choice by consumer in this way, encourages
producers to adopt production practices conforming (match)
to consumer values.
• Ethical consumption plays a role in preventing the
exploitation of women, children, environment and natural
resources, while producing, selling & distributing goods &
services.
• Ethical consumer movements have popularized dolphin-free
tuna, foods that are free of genetically modified organism
(GMOs), sweatshop-free clothing, fair-trade coffee, cosmetic
products free from animal testing, and conflict-free
diamonds.
• Ethical consumption encompasses a wide range
of practices, some of them are as under,
– Bringing reusable bags to the grocery store.
– Switching from driving to biking to work.
– Preferring recyclable products.
– Minimizing waste while consuming.
– Disposing waste ethically.
– Boycotting products & services that involved child
labor.
– Boycotting products that are sourced with
threatening natural environment. etc.
• The subject of ethical consumption can be
considered as one of the sections of consumer
politics.
• Ethical consumption leads to sustainable use of environment and
natural resources.
• The resources that is supposed to be consumed by multiple
generations in earth should not b e controlled and used b handful
number of generations.
• Social and human welfare is highly suffering due to unsustainable
consumerism.
• To promote ethical consumption, the concept of ‘use is, loose it’
or ‘use & throw’ should be replaced with ‘reuse & recycle’.
• Over consumption should be discouraged.
• Environment, natural resources & eco-system should be protected
adequately through government and state level policies.
• Business should return the favor to society & environment by
conducting Corporate Social Resposnibility (CSR).
• Ethical consumerism is about when people buy such products
that have been re-used and recycled in order to protect the
environment and resources.
• More importantly consumers need to ask every time
they buy a product as to how the product is made,
who profits from it and what implication will it have
on environment, society and human welfare as a
whole.
• Consumers should go beyond the brand & look at the
company’s practices while purchasing a product.
• Consumers do have real power now.
• Germany banned the Nepali made garment products
citing the use of child labor in Nepal.
• By consuming consciously & ethically we can
realistically create change.
• Being aware of current issues in labor exploitation,
environmental conservation, & human rights is the
best way to spend ethically.
 Classification of Unethical Behavior
• Unethical behavior is an action that falls outside of what
is considered morally right or proper for a person, a
profession or an industry.
• Individuals can behave unethically, as can businesses,
professionals and politicians.
• Unethical behavior simply denotes activities or conducts
that violate the ethical principles.
• Dumping pollutants into the water supply rather than
cleaning up the pollution properly or releasing toxins into
the air in levels above what is permitted by the
Environmental Protection Agency, not paying an
employee for all of the hours worked, false advertising
tactics to lure customers, Refusing to honor a warranty
claim on a defective product, etc. are some examples of
unethical behaviors of business.
• There are many ways to categorize unethical
behavior of individuals and social units. It can be
classified based on following criteria:
a. Based on Intention
Intentional Unethical Behavior
This results whenever people intentional engage
in actions they know are wrong, but are unaware
about the biasness affected by their judgments.
Unintentional Unethical Behavior
This results whenever people unintentionally act
or behave unethically without knowing the
action to be unethical. People may also fail to
notice the unethical behavior around them.
b. Based on Impact Intensity
Unethical Behavior of Minimum Impact:
It refers to those unethical behaviors carried
out by individuals that have minimum impact
or that may not have considerable impact on
others. E.g. stealing your friends pen.
Unethical Behavior of Large/Considerable
Impact:
It refers to those unethical behaviors whose
impact are huge and cannot be neglected. E.g.
dumping harmful industrial wastes to water
sources without filtering.
c. Based on Different View of Ethics
Unethical Behavior from Individualism view:
It refers to the actions that produces the
greater good to bad ratio for the individual
compared to other alternatives.
Unethical Behavior from Utilitarian view:
It refers to the actions that benefits majority
of people and not the minority who are
affected by the decision/actions.
 Legal versus Morale and Ethics

• It is a common understanding that the term legal, morale

and ethics are the fundamental subjects that guide to shape
human behavior.
• These represents the norms & standards of conduct with
respect to the human action in different setting &
circumstances.
• ‘Legal’ denotes ‘permitted by law’ or ‘lawful’
• ‘Morale means ‘a person’s mental or emotional state’, and
• ‘Ethics’ is a branch of philosophy that involves the concept
of right and wrong conduct.
• Law follows norms established by society through the
political process. Morale means mental or emotional state.
It often refers to someone's spirit or attitude. Ethics is a
branch of philosophy that involves systematizing, defending,
& recommending concepts of right & wrong conduct.
• ‘Moral’ and ‘Morale’ are two different
terminologies.
• Moral refers to things related to ethics. It
means the standards someone adopts to
determine right from wrong.
• Morale means a mental or emotional state
(e.g. spirit or attitude). It refers to individuals’
confidence and cheerfulness. Like, if morale of
employee is low, it means he is feeling
negative and not motivated.
• Legal versus morale & ethics can be clarified better
by following points:
– Legal matters are subject to the laws of the country
that control what people & entities can & cannot do,
while ethics is a subject of standard & values that
govern what some group or individual should or should
not do. And, morale represents the mental state of an
individual or group.
– Law is a set of rules & regulation that enforces action,
and have specific formal penalties and consequences
when violated. While ethics is a set of moral guidelines
based but not enforceable by law.
– Legal matters are enforced by government upon people
& entity. Whereas ethics comes from people’s
awareness of what is right & wrong. Morale is the
behavioral part of human being.
– Legal matters are usually in written form, whereas
morale and ethics are not like that. They are part of
realization.
– Law cannot address each and every dimension of
human activities where as ethics (and morals) do
work in most situations.
– Many situations may occur where an action can be
illegal, but ethically right.
– Law can be effective mechanism to prevent serious
harms but it is not effective at promoting things
that are good, like acts of charity.
– Individuals & entities are bound to act legally but
not bound to act ethically.
– Treating an employee with respect is ethical
requirement but not a legal requirement.
 Business Ethics in Market Place
• A market place can simply be defined as the space
in which market operates & it facilitates
manufacturers to approach customers & vice versa.
• In this modern IT driven world, marketplace
represents not only physical space but also online
e-commerce marketplace.
• Business ethics in marketplace is concerned with
‘marketing ethics’ which deals with the moral &
ethical principles behind the operation and
regulation of marketing.
• It seeks to promote responsibility, transparency,
honesty & fairness in all marketing activities.
• Free markets allocate resources & distribute commodities
in ways that are just, that maximize economic liberty and
respect the liberty of both buyers & sellers. And these
three benefits depend on competition. Competition tends
to promote efficiency in the market place.
• PERFECT COMPETITION:
• A free market in which no buyer or seller has the power to
significantly affect the prices at which goods are being
exchanged.
• PURE MONOPOLY:
• A market in which a single firm is the only seller in the
market and which new sellers are barred from entering.
• OLIGOPOLY:
• A market shared by a relatively small number of large
firms that together can exercise some influence on
process.
• EQUILIBRIUM POINT:
• The point at which the amount of goods buyers want to
buy exactly equals the amount of goods sellers want to
sell, & at which the highest price buyers are willing to
pay exactly equals the lowest prices sellers are willing to
take.
• PRICE FIXING:
• An agreement between firms to set their prices at
artificially high levels.
• PRICE DISCRIMINATION:
• To charge different prices to different buyers for
identical goods or services.
• PRICE LEADER:
• The firm recognized as the industry leader in oligopoly
industries for the purpose of setting prices.
• MANIPULATION OF SUPPLY:
• When firms in an oligopoly industry agree to limit their
production so that prices rise to levels higher than those
that would result from free competition.
• EXCLUSIVE DEALING ARRANGEMENTS:
• When a firm sells to a retailer on condition that the retailer
will not purchase any products from other companies
and/or will not sell outside of a certain geographical area.
• TYING ARRANGEMENTS:
• When a firm sells a buyer a certain good only on condition
that the buyer agrees to purchase certain other goods from
the firm.
• RETAIL PRICE MAINTENANCE AGREEMENTS:
• A manufacturer sells to retailers only on condition that they
agree to charge the same set retail prices for its goods.
 Product Positioning and Competing
• A product is anything that can be offered to a market to
satisfy a want or need.
• From customers’ perspective, a product is more than its
tangible features, it is a complex bundle of attributes that
satisfy individual physical as well as psychological needs.
• Product positioning is a marketing strategy that aims to
make a brand occupy a distinct position, relative to
competing brands, in the mind of the customers.
• Product positioning refers to the placing of the product or
service in a particular perceptual position within the mind
of the customers.
• "Product positioning refers to consumers' perceptions of a
product's attributes, uses, quality, and advantages and
disadvantages relative to competing brands.
• "Product positioning" is a marketing technique intended to
present products in the best possible light to different
target audiences.
• Its aim is to make the product occupy a clear, unique, &
advantageous in the mind of the customers.
• Volkswagen positions them as a car that’s reliable and a
company that’s permanent. Buyers feel comfortable
knowing they will always be able to get parts, and the cars
will retain their value.
• Other car companies may position their products as ‘fast’,
fuel efficient’, eco-friendly’, etc.
• It is the first job of a marketer to distinguish his/her
product/service from the competing products.
• Product differentiation is the fundamental idea that a
marketer can apply for successful product positioning and
competing.
• Product differentiation (or just differentiation) is
the marketing process of distinguishing an
offering (product/service) from others, to make it
more attractive & appealing to target market.
• The aim of differentiation is to develop a position
at marketplace so that potential customers see
the product as unique and perceive positively.
• It involves defining the offering’s unique position
in the market by explaining the unique benefit it
provides to the target group.
• Differentiation looks to make a product more
attractive by contrasting its unique qualities with
other competing products.
• Successful product differentiation creates a
competitive advantage for the product‘s seller, as
customers view these products as being unique or
superior.
• This may also be referred to pinpointing a unique
selling proposition of the product to make it stand
out from the crowd.
• Differentiation is everywhere and everybody tries
constantly to distinguish his/her offering from all
others.
• All products are differentiable as they are many
variables that can be used to differentiate.
• Products can be differentiated on basis of product
attributes, price, service offers, luxury, qualities,
personal dealings, etc.
• Product differentiation can be as simple as
packaging the goods in a creative way, or as
elaborate as incorporating new functional
features.
• Product differentiation determines what sets one
product apart from other similar products, and it
uses that difference to drive consumer interest.

• Once the product is positioned it is very difficult

to reposition without destroying its credibility.
• When there are no product differences, (me too
products), no differential benefits to the user, not
only is success hard to achieve but also ethical
 Pricing and its Consequences
• Pricing is the process whereby a business sets the
price at which it will sell its products and services,
and it may be part of the business’s marketing plan.
• To establish a selling price for the product or
service is known as pricing.
• In setting prices, the business will take into account
the price at which it could acquire the goods, the
manufacturing costs, the market place,
competition, market condition, brand, profit policy,
quality of product, government regulation, etc.
• Price may be in the form of rent, fee, fare, salary,
interest, etc.
• Pricing is very sensitive as it directly affects the
revenue of the firm and the purchasing power
of the customer.
• Consumer desire to exchange the goods and
services for as little cost as possible whereas
producers want to maximize the amount of
revenue they can extract from the consumer.
• Among the 4P’s (product, price, place and
promotion), price is the only revenue generating
element.
• Pricing plays a crucial role in revenue
management of the business and profit making.
• Organizations have the right to price their product
to earn a reasonable profit but problem of fairness
arise when they charge excessive price at the cost
of customers.
• Companies usually charge excessive price under
monopolistic condition or when customers cannot
leave the market.
• Fair price is the result of mutual agreement by the
buyer and seller under competitive conditions.
• A firm need to price its product specifically when
– A firm develops a new product
– It introduces its regular product in a new distribution
channel or a new geographical area, or
– It enter bids on new contract work, etc.
• Types of pricing practices where ethical problems are
likely to arise are listed below:
– Excessive Pricing: Excessive pricing occurs when a
dominant firm, which holds dominant market power,
charges prices that are above the
competitive pricing level, aka ‘price gouging’.
– Price Fixing: Price fixing refers to an agreement between
market participants to collectively raise (lower or
stabilize) product price.
– Price Discrimination: Price discrimination is
a pricing strategy that charges customers
different prices for the same product or service.
– Predatory Pricing: (aka undercutting) It is a pricing
strategy in which a product or service is set at a very
low price with the intention to achieve new customers or
driving competitors out of the market or to create
barriers to entry for potential new competitors.
– Deceptive Pricing: Deceptive pricing is the method by
which retailers use deceptive means to trick the
customers into thinking that they are paying a
lower price for the product, than what they are actually
supposed to.
– Collusion: An illegal agreement among companies in an
industry to ‘fix’ prices for their product. It is a Criminal
offense, where numerous companies work together to
keep the price of a product or service at an elevated
level with the goal of receiving large profits.
– Price Fixation: Price fixing is an agreement between
participants on the same side in a market to buy or sell
a product, service, or commodity only at a fixed price.
Price fixing is setting the price of a product or service,
rather than allowing it to be determined naturally
through free-market forces.
 Packaging and Labeling

• Packaging refers to the process of designing, evaluating, and

producing packages.
• Packaging can be described as a coordinated system of
preparing goods for transport, warehousing, logistics, sale,
and end use
• Packaging is the science, art and technology of enclosing or
protecting products for distribution, storage, sale, and use.
• It is an attempt of enclosing or protecting products for
distribution, storage, sale and ultimate use.
• Packaging contains, protects, preserves, transports, informs,
and sells.
• The primary objective of packaging is to deliver products to
consumers in a perfect condition.
• Products can have multiple packages, e.g. primary, secondary,
and shipping package.
• Labelling or labeling is describing someone or something in a word or
short phrase.
• Labeling is display of information about a product on its container,
packaging, or the product itself. It is any written, electronic, or graphic
communication on the package.
• Labeling is the display of label in a product. A label contains
information about a product on its container, packaging, or the
product itself, or on a separate but associated label.
• It is another significant means of product identification
• It helps the product stand out in the market, and identifies it as a part
of a particular brand.
• Labeling has become a means of communication between the brand
& the consumer.
• Product labeling has very important information which is printed on
the product packaging.
• The label information should contain all the relevant information such
as ingredients, methods of use, precautions, side effects, manufacture
& expiry date, etc.
• Labeling is a part of the packaging of a product.
• It is the written information on the packages.
• These written labels on the package cover important
information which needs to be communicated to a customer.
• A product’s package & label remains the consumer’s primary
source of product information.
• Most physical products have to be packaged & labeled.
• Packaging & labeling are usually treated as an element of
product strategy, and it is also considered as one of the
marketing tools.
• Product protection, promotion, information, convenience,
utilization, handling, waste reduction, etc are the major
functions of packaging & labeling.
• Failing to pay attention to the design of packaging & labeling
can decrease the visibility and attractiveness of products,
which can be devastating for sale.
• The ethical issues that packaging and labeling
relate primarily to truth telling and consumer
exploitation.
• When marketers are primarily interested in
selling a product & secondarily interested in
providing relevant information, then ethically
questionable practices are bound to follow.
• The label and package of a product remains the
primary source of information.
• Packaging & labeling should provide clear,
accurate and adequate consumer information.
• It should not mislead the consumers about the
content of the package.
Symbols Used in Packages & Labels
• Many types of symbols for package labeling are nationally
and internationally standardized.
• Labels must also fulfill different legal obligations.
• There are numerous labeling requirements which might be
specified by a regulatory body.
• Some of them which are very common include Ingredients,
manufacturing plant, batch number, expiry date, MRP,
safety instructions etc. Thus, a company has to consider all
legal requirements before deciding on the product labeling.
• A packaging and required information on labeling largely
depend on the nature of the product.
• Labeling requirement of on tobacco product is quite
different from other products.
• Perfection cannot be assured only by the legal provisions.
• Ethical dimension is also equally important to prevent
unfair or deceptive packaging and labeling practices.
• The common problems regarding packaging
and labeling are:
– Mislead consumers by providing untrue
information in the package label to exaggerate the
attributes of the products
– Using pictures in package label that does not
represent the actual product
– Non-recyclable packaging, etc.
• Following are some simple but important tips
about environmentally friendly packaging:
– Reusable packaging design
– Made of recyclable material
– Biodegradable packaging
– Avoiding hazardous materials in coloring and
printing
– Supportive to go green slogan, etc.
 Brand Management & Imperative
• (imperative: not to be avoided, an essential or urgent thing)
• Brand can be defined as a name, term, sign, symbol or design or a
combination of these, intended to identify the goods or services
of one seller and to differentiate the goods from those of
competitors.
• All businesses own a portfolio of brands, which is one of a firm’s
most valuable assets.
• A brand is an intangible asset of a firm.
• Brands allow consumers to reduce risk, simplify decision making,
and gain greater satisfaction in their lives.
• A brand does not only need to be tied to one product. One brand
could cover different products or services. Ford, for example, has
multiple auto models under the Ford brand. Likewise, a brand
name can take on multiple brands under its umbrella. For
example, Procter & Gamble has multiple brands under its brand
name, such as Ariel laundry detergent, Charmin tissue, Bounty
paper towels, Dawn dishwashing liquid, and Crest toothpaste.
• Brand management is the analysis & planning on how a brand is
perceived in the market.
• Brand management is one of the functions of marketing that
focuses to increase the perceived value of a brand over time.
• It is the process of maintaining, improving, and upholding a brand
so that the name is associated with positive results.
• Brand management is a function of marketing that uses
techniques to increase the perceived value of a product line or
brand over time.
• Effective brand management enables the price of products to go
up & builds loyal customers through positive brand associations &
images or a strong awareness of the brand.
• Developing a strategic plan to maintain brand equity or gain
brand value requires a comprehensive understanding of the
brand, its target market, & the company's overall vision.
• (brand equity: the commercial value that derives from consumer
perception of the brand name of a particular product or service,
rather than from the product or service itself.)
• Brands have a powerful influence on customer
engagement, competition in the markets, & the
management of a company.
• A strong brand presence in the market differentiates a
company’s products from its competitors & creates
brand affinity (a natural liking) for a company’s
products or services.
• It takes years to establish a brand, but when it finally
occurs, it has to still be maintained through innovation
and creativity.
• Notable brands that have established themselves as
leaders in their respective industries over the years
include Coca-Cola, McDonald’s, Microsoft, IBM, Procter
& Gamble, CNN, Disney, Nike, Ford, Lego, Starbucks,
etc.
• Brand management involves not only creating a brand,
but also understanding what products could fit under
the brand of a company.
• A brand manager always has to keep its target market in
mind when conceiving new products to take on the
company’s brand or working with analysts to decide
what companies to merge with or acquire.
• The main concern of brand management is ‘how the
specific brand is positioned in the market?’
• Brand management is one of the major tasks in product
strategy.
• (however many brand-oriented companies like NIKE, Inc.
own no factories for manufacturing footwear & apparel.
It subcontracts manufacturing to other companies and
involves more in brand management.)
• Six branding imperatives to help managers navigate the
new challenges of brand management, by Kevin Lane
Keller
(imperatives: extremely important or urgent; an
essential or urgent thing; of vital importance, crucial;
absolutely necessary or required, unavoidable)
1. Fully and accurately factor the consumer into the
branding equation. Understand what consumers know
and don’t know and what they want and don’t want
from your brand. Have a dialogue with your customers
and prospects to clarify any uncertainty.
2. Go beyond product or service performance and
rational benefits. Create well-designed, and
differentiated, products and services that provide a full
set of rational and emotional benefits.
3. Make the whole of the marketing program greater
than the sum of its parts by ensuring that all
channel and communications strategies and tactics
are fully integrated and are delivering a message
that is consistent with the brand values.
4. Understand where you can take a brand and how to
take it there.
5. Do the “right thing” with brands. Embrace
corporate social responsibility and manage brands
for the long run. Be transparent and consistent with
the brand values.
6. Take the “big picture” view of branding. Know what
is working and why. Achieve a deeper
understanding of the limits and power of brands.
 Advertising and Communication
• Advertising falls under the promotional aspect of the
marketing mix.
• Advertising considered as a part of the marketing
communications mix.
• Advertising is the practice of trying to persuade
consumers or other to change their behaviors in some
way beneficial for the advertiser.
• Advertising is a non-personal communication of
information usually paid for and usually persuasive in
nature about products, services or ideas by identified
sponsors through the various mass media.
• Advertising is done by businesses, government, political
parties, NGO’s, INGO’s, charity, etc.
• Advertising helps to establish a positive image, or a positive
set of values connected with a given product or producer.
• Along with developing a good product, offering attractive
prices, and making it accessible to the customers,
companies must also communicate with present and
potential stakeholders.
• Marketers must consider the following while developing
marketing communications in an effective way;
– Identify the target audience
– Determine the communication objectives
– Design the message
– Select the communication channels
– Establish the total communications budget
– Decide on the communications mix
– Measure the communications’ results
– Manage the integrated marketing communication process.
• Due to advancement of IT, by using internet,
many firms are now involved & enjoying more
targeted communication & one to one
dialogue with customers & other stakeholders.
• Firms are performing interactive dialogue
between the corporate members in different
stages like; during the pre-selling, selling,
consuming, and post consuming.
• Thus, modern marketer’s job of advertising &
communication has become more digitally
based.
• Ethical Concerns in advertising and
Communication
• Advertisers sometime information not what
consumers want but what sellers want
consumers to have.
• Sellers are not inclined to advertise negative
aspects of their products.
• Advertisement make customers buy goods &
services that they would not buy if portrayed
accurately.
• Following ethical issues are some of the common
agenda regarding advertisement &
communication that every advertiser must
1. Comparative advertising: Comparative ads & claim of superiority
over competitors are immoral & may cause legal problems.
2. Exaggeration: Advertisers can mislead through exaggerations,
that is, by making claims unsupported by evidence.
3. Surrogate advertising: Some countries prohibit ad of products
like cigarette, tobacco & alcohol. But firms use surrogate
advertising, which may be legal but unethical.
4. Puffery: Puffery is a vague claim about the product which cannot
be proved or disproved.
5. Unverified claims: Many products promise to deliver results
without providing any scientific evidence.
6. Women in advertising: Sexism towards women in advertising has
always been an issue.
7. Advertising & children: Children are unable to differentiate
between advertisement & programs. Children lack mental ability
to critically analyze those advertisements.
8. Deception: Ads deceive consumer by stating that using certain
 Exploitative Nature of Advertising
• Advertising informs potential buyer and attracts their
attention toward the products but only some truth
about the products is of relevance.
• Advertising these days are exploitative.
• Any advertising clearly appearing to purposefully
debase (humiliate/degrade) or abuse a person, or group
of persons, for the enjoyment of others, lacking moral,
artistic or other values is called exploitative advertising.
• It is an act of unfairly using men, women, children or a
group for advertising product or services that will
exploit consumers’ most personal feelings.
• Many critics believe that advertising contributes to
stereotyping particular groups.
• Exploitative nature of advertising can be explained under
following sections;
1. Exploitative Advertising and Children:
• Exploitative advertising brainwashes children into becoming
eager consumers.
• MNC’s deliberately encourage children to be materialistic so
that children associate happiness with purchasing power &
possession of particular goods.
• Such ads encourage children to consume fatty and sugary
foods.
• Children are not able to distinguish advertising from actual
programs like adults do.
• Advertising directed at children tries to exploit their innocence.
• They put pressure on their parents to buy products of no real
benefit to them.
• Violent images in ad contents are next offensive dimension that
negatively impact children behavior.
2. Exploitative Advertising & Women:
• Most advertisement depict women as mere
sex objects.
• Advertisements give message to women that
they must be hot, sexy, beautiful & impossibly
thin.
• Many ads exploit the body of women.
• Another issue is displaying the body of
women & sexual expression without any
connection to the advertised product.
• Advertisers are criticized for their unfair
practices of stereotyping women. Usually ads
present women as doing domestic works.
3. Exploitative Advertising and Men:
• Advertising which shows attractive men
shirtless or naked and are depict in an overly
sexualized manner is exploitative.
• Another issue is presenting a typical male
behavior (exaggeration of aggressiveness) in
ads, without any context of the ads.
• Many ads depict men (or women) with fairer
skin to be more happy, attractive to opposite
sex, intelligent, & having higher social status.
• In practice, debates about male are relatively
much fewer that female & children with
respect to the exploitative advertisement.
 Finance and Value
• Finance may be personal finance, business finance and public
finance.
• Finance is directly associated with money matters.
• ‘Value’ denotes the degree of importance.
• Value creation is the primary aim of any business entity.
• Business firms need to create values for customer, investors as well
as the firm itself.
• Customers purchase only if they receive more value than they are
giving up in the purchase. Customer purchase enhance sales &
profit. Creating value for customers helps sell products & services.
• Creating value for shareholders, in the form of increases in stock
price, insures the future availability of investment capital to fund
operations.
• From a financial perspective, value is said to be created when a
business earns revenue (or a return on capital) that exceeds
expenses (or the cost of capital).
• A business firm needs to create value from financial
perspective. It needs to earn revenue and reasonable
profit.
• Without creating financial value the firm will have
difficult time to continue operation.
• A firm needs to retain some percentage of the value
(revenue) provided in every transaction.
• The more value the firm captures the less attractive
the offer (product & service) becomes. And vice versa.
• Business should capture as little value as possible, as
long as it is sufficient to the business.
• People purchase goods & services because they
believe they are getting more value in the transaction
than they are spending.
• When something is a ‘good deal’ customers ten to
continue to patronize the business (high value for
customers) and spread the word to other potential
customers.
• When business tries to maximize revenue (high value for
business firm) then customer flee.
• Value for business firm and value for customer is inversely
related.
• Value can relate to how people feel about something,
describing how something is regarded and its importance
to the individual.
• Under this section, we will discuss different practices
related to finance and their values.
1. Financial Accounting and Standards
2. Responsibilities of Financial Institutions
3. Capital Market and Regulators.
 Financial Accounting and Standards
• The International Accounting Standard Board (ISAB)
initiated the efforts towards harmonization of the
Accounting Standards and Accounting Practices across the
international boundaries.
• Their effort in this direction is to make the users have the
same understanding of the financial statements in all
jurisdictions.
• Financial accounting is the process of recording,
summarizing & reporting the financial transactions
resulting from business operations over a specified period
of time.
• This process is designed with prescribed system, well-
known as double entry system, to reflect the results of
business activity accurately.
• Transactions are recorded & summarized to generate
financial statements, like balance sheet, income
statement & cash flow statement, which encapsulate
the company’s operating performance over a
specified period.
• Advancement of accounting software has made
accounting & reporting more comfortable.
• Financial accounting represents just one section of
business accounting, other are management
accounting, cost accounting, social accounting, tax
accounting, etc.
• Financial statements are considered as external
document as they are given to people outside the
company, like owner (stockholders), government,
certain lenders, etc.
• The financial statements of firms trading shares in
public is published in national daily & widely circulated,
& financial information is likely to reach even
competitors, customers, employees, & other stake
holders.
• The purpose of financial accounting is to provide
enough financial information for stakeholders to assess
the value of a company by themselves.
• Financial accounting can also be considered as one of
the sections of information system of business.
• Business firms should prepare unbiased, truthful and
accurate financial reports to be used by stakeholders.
• During the process of financial accounting, the general
accounting principles, accounting standards &
respective laws should be followed.
• Accounting standard is a systematic principle that guides
and standardized accounting & reporting practices, so
that internal & external stakeholders can analyze financial
data comfortably.
• Financial accounting is governed by both local &
international accounting standards.
• The objective of such standards is to provide financial
information to investors, lenders, creditors, contributors
and other stakeholders.
• Despite the efforts of international organizations to make
it uniform accounting standards differ from country to
country.
• Thus investors should take caution when comparing
entities from different countries.
• However, the problem of inconsistency is less of an issue
that before.
 Application of Standard & Ethical Issues
• Ethics in accounting is concerned with how to perform duty
morally regarding preparation, presentation and disclosure of
financial information.
• It is well-known as accounting ethics.
• Accounting standards are formulated in order to bring uniformity
in recording of the financial transactions.
• It brings consistency & uniformity in keeping record of financial
transactions.
• All professional accountants shall comply with relevant
Accounting Standards or Generally Accepted Accounting
Principles (GAAP).
• Luca Pacioli, in 15th century published first description of double-
entry system of accounting. He is known as ‘father of modern
accounting’.
• The emergence of double entry system was intended to minimize
fraud, errors, misappropriations (unfairly or dishonestly take
money belonging to others) and pilfering (stealing) of assets.
• Despite the use of widely accepted national &
international accounting practices, financial accounting &
reporting practice is not free from ethical issues.
• Financial accounting work to improve transparency in
financial statements but do not guarantee the financial
statements are free from errors that are intended to
mislead investors.
• There are plenty of loopholes in accounting practices for
unscrupulous (dishonest) accountants & auditors to distort
figures.
• Thus, along with application of universal accounting
system & standards, ethical behavior is necessary in the
accounting profession to prevent fraudulent activities & to
gain public trust.
• Tax evasion & bribery are also other important ethical
issues in financial accounting.
• Another most common issue is misappropriation of
assets, i.e. using company’s assets for any other purpose
that company interests.
• (Misappropriation, stealing for) embezzlement can occur
at nearly all level of company.
• Fraudulent financing reporting is one of the ethical issues
at company level, i.e. misstatement of the financial
statements by company management.
• Fraudulent financial reporting is carried out with tine
intention of misleading investors & maintaining the
company’s share price.
• This may have short term benefit & is known as myopic
management but it always have ill-effects in the long
term.
• Therefore, mature stakeholders feel that even when a
company uses prescribed standards, we still need to
 Responsibilities of Financial Institutions
• Financial institutions simply denote the entities those
are engaged in the business of dealing with monetary
services in financial market.
• It denotes those entities that supply monetary assets
through financial intermediation between borrowers
and lenders.
• Financial Institutions are those companies, firms,
trusts who provide finance or money related services,
debt or equity facilitation, to the general public & to
other institution.
• It includes banks, securities firms, insurance
companies, mutual funds, investment banks, pension
funds, mortgage lenders or any firm doing business in
the financial arena.
• There are three major types of financial
institution:
1. Depository & Lending Institution: are banks,
cooperatives & mortgage companies, who
accept & manage deposits and make loans.
2. Contractual Saving Institution: are insurance
companies & pension funds. The premium &
savings (for retirement) received from people
are invested in the financial markets
3. Investment Institution: are investment banks
underwriters, mutual funds, etc. who facilitate
business operation, capital expenditure
financing, or invest in variety of stocks.
• The core objective of the financial institutions
is to maximize profit or return for their
promoters & shareholders.
• Their ‘products’ are financial services products
like loan, deposits, investments, insurance
schemes, mutual funds, etc.
• Most of us are in some way or another,
customers of some financial institutions. Like
having a bank account or an insurance policy
makes us a client of financial institution.
• The responsibilities of financial institution can
be pointed out as under:
1. Duty Towards the Nation
• Tax payment such as Income tax, Corporate
tax, and Value Added Tax payments as
applicable by the law or the nation.
• Labor or human resources responsibilities as
guided by labor act and HR related guidelines
of the nation.
• Protecting labor rights and giving a sense of
fairness to the labor force.
• Reporting and information responsibilities.
• Duty of care towards nation’s goodwill.
• Anti-discriminatory duties.
2. Social Responsibilities
• Financial Institution (FI) needs to perform selfless
activities that benefit the society and not necessarily
the institution. i.e. CSR it needs to fulfill corporate
social responsibility.
• It is their responsibility to contribute vastly towards the
society in which they exists and also globally by leading
by example through their creative and effective CSR
practices.
• FI can set a part of their expenditure budget towards
philanthropy. Organizing and facilitating volunteer
activities among its staff members.
• Take initiatives for environmental protection, like
carbon footprint reduction, using fuel efficient vehicles,
monitoring & reducing damage to environment.
3. Cultural Responsibilities
• Financial Institution, although not a living entity,
do in fact exist among the cultures prevalent in
society.
• FI stakeholders like employees, shareholders,
promoters, lenders, borrowers, clientele are all
part of society and certain cultures.
• For survival and growth FI cannot ignore culture
of the place and population among which its
exists and hopes to prosper.
• FI should operate their business being very
sensitive to various cultures and practices.
• FI could reap many benefits if cultural factors are
taken care of and vice versa.
4. Accounting Responsibilities
• Financial Institution are legally required to have
their books of accounts audited by an independent
audit firm for truthfulness & fairness.
• FI needs to follow certain rules & regulations of
accounting for fair & true representation of their
financial position & performance.
• International Accounting Standard (IAS) has listed
set of accounting standards for financial reporting
called International Financial Reporting Standards
(IFRS), which is now being globally implemented.
• In Nepal, the FI are expected by government to
adopt Nepali Accounting Standards (NAS), which is
moving towards IFRS very soon.
5. Role of Regulators
• Financial Institutions (FI) have to perform their duties at
least within the minimum standard expected.
• Without regulatory organization the financial world will
turn into anarchy of indiscipline.
• Nepal Rastra Bank (NRB) is a regulator & regulates
activities like licensing, products, treatment of general
public and employees of financial institutions.
• It also has power to dissolve banks & enforce mergers.
• Likewise Insurance Board looks after insurance
companies.
• In UK, Financial Services Authority (FSA) regulates
financial services sectors.
Ethical Aspect of Financial Institution (FI)
• Financial institutions are the economic role player of the
country.
• Individuals, private firms or government, all are directly or
indirectly connected with some financial institution.
• The responsibility of financial institution is very crucial. If
conducted in morally right way, FI can benefit everyone.
• It can contribute significantly to nation’s economy, create
jobs, reduce poverty, etc.
• Emerging concepts & practices of social banking, ethical
banking, green banking, rural banking, are some of the
remarkable contemporary events.
• (An ethical bank, also known as a social, alternative, civic,
or sustainable bank, is a bank concerned with the social
and environmental impacts of its investments and loans.)
• Financial Institutions in the world are facing
many ethical blames such as
– Supporting money laundering,
– Supporting insider trading
– Privacy issues
– Discrimination
– Window dressing (superficial or misleading
presentation of something, designed to create a
favorable impression.)
– Negligence of environmental impacts, etc.
• Thus financial institutions must always be alert
with environmental, social, and financial
performance while conducting their business.
 Capital Market and its Regulators
• Capital markets are the markets for the corporate stocks and long-
term debt.
• It is one of the section of financial market.
• It is the market for securities, where companies and government
can raise long term funds through individuals & institutions.
• It is a market where buyers & sellers trade financial securities like
bonds, stocks, etc.
• Capital markets channel funds from savers to institution which
invest in other productive sectors.
• Primary markets & secondary markets are two important areas of
capital markets.
• Primary markets, where new stock and bond issues are sold to
investors. Corporations raise new capital in the primary market.
Secondary markets, which trade existing securities or outstanding
securities/shares.
• (bonds attract interest but shares get dividend)
• The capital market has essentially three categories of
participants:
– The issuer of the securities
– The investors in the securities, and
– The intermediaries
• The issuers are the borrowers, who issue securities to
raise funds.
• The investors, who are surplus savers, deploy their
savings by subscribing to these securities.
• The intermediaries are the agents who match the needs
of the users and the suppliers of funds for a commission.
These intermediaries function to help both the issuers
and the investors to achieve their respective goals.
• The Nepal Stock Exchange Limited (NEPSE) is a
secondary market of Nepal.
• Intermediaries are service providers like brokers,
merchant bankers, underwriters, registrar and
transfer agent (RTA) etc. who hold position of
securities for a temporary period between flow of
buy order and flow of sales order.
• In security market, investors are termed as
customers and customers may be individuals,
firms, companies, etc.
• Well regulated capital markets permit a much
wider participation in the economy by greater
number of people, who share investment
opportunity as well as market risks.
• NEPSE, SEBON and CDSC are the major regulators of
capital market.
• The Nepal Stock Exchange Limited (NEPSE) is the only e
stock exchange of Nepal. NEPSE opened its trading
floor on 13 January 1994.
• Realizing the need of regulating body for the
sustainable development of capital market in Nepal,
Securities Board of Nepal (SEBON) was established by
the government on Nepal on June 7, 1993.
• Central Depository System & Clearing Ltd. is a company
promoted by SEBON. SEBON has directed NEPSE &
CDSC to launch fully automated share trading, &
securities ownership transfer and clearance services.
• Apart from that Nepal Rastra Bank (NRB) also plays
important role in the capital market.
• NRB makes arrangement for the issue, register,
purchase and sale, transfer of ownership &
redemption ( when a company requires
shareholders to sell a portion of their shares back to
the company) of government bonds & debentures.
• Government securities are fully traded under the
management and supervision of NRB.
• The regulation of securities in Nepal has also been
designed to ensure that trading is conducted fairly.
• Earlier buyers & sellers used to gather at stock
exchange to make transaction but now investors
can trade freely from their home, they need not
gather at the stock exchange.
• Today stock market has become almost paperless.
• Recently, Capital Market of Nepal adopted the
Dematerialization (Demat) System for electronic
storing, wherein shares & securities are represented
& maintained electronically, thus eliminating the
troubles associated with paper shares.
• (Dematerialization is the process of converting
physical shares into electronic format)
• There are number of intermediaries providing
various services in the securities market of Nepal.
• This process of mobilizing resources is carried out
under the supervision & overview of the regulators.
• The capital market is a very fragile market thus specific
regulation is very much essential.
• Ethical lapses may invite great crisis.
• There are evidence of scams and scandals in the capital
market. Market manipulation, & insider trading are the
common ethical issues associated with capital market.
• Corporate governance is a balancing system to enhance
healthy & ethical capital market.
• It balances the interest of stakeholders (shareholders,
customers, management, financers, government, etc) &
the community.
• There are the rules and then there are the ethics that all
the participants (issuers, investors & intermediaries) are
expected to follow.
• Besides the genuine role of regulators, ethical values