 Welcome to this session, I am Priyanka Bansure and today we are going to learn about Importance of Business Ethics and Globalization. These are the learning outcomes of this video lecture. At the end of this session, students will be able to evaluate the importance of business ethics, specify ethical challenges in different types of organization and describe globalization a key context for business ethics. These are the contents of this video lecture, specifically we will be concentrating on these points before moving towards to the importance of business ethics pause this video for few seconds and you have to think and you have to write down what is business ethics. Now pause the video and you have to recall what is business ethics. So business ethics is nothing but the study of business situations, activities and decisions where issues of right and wrong are addressed. So business ethics is the study of good and evil, right and wrong, then just and unjust actions of businessmen in the world of business. Let us see why business ethics is important. So business ethics is currently a very prominent business topic and it debates surrounding the subject have attracted a lot of attention from various quarters including consumers, then media, non-governmental organizations that is NGOs and of course companies themselves also. So there are many reasons why business ethics might be regarded as an increasingly important area of study. So first one is power and influence of business in society. So business affects almost every aspects of our lives and can have a major impact on the democratic process of government. Then second is potential to provide a major contribution to society. So here we have to potential to provide the major contribution that is towards society. So contribution in terms of producing the products, then services that we want, then providing employment, paying taxes, acting as an engine for the economic development or solving the complex social problems also. Then third one potential to inflict enormous harm. So here business malpractice has the potential to inflict means you have to cause the enormous harm on individuals, communities and the environment. Then the fourth one increasing demands from stakeholders. So it is critical to understand the challenges and to develop the responses to them. That address the demands of stakeholders and that are becoming more complex and also challenging. But also enable firms to perform their economic role effectively. Then fifth one lack of business, ethics, education or training. And sixth that is employees face significant pressure to compromise ethical standards. For example a survey of 500 financial services professionals in the UK and in the US found that more than one in four had observed wrongdoing in the workplace. So while a quarter of respondents agreed that financial services professionals might need to engage in unethical or we can say illegal conduct in order to be successful. And seventh one business faces a trust deficit. A trust deficit is nothing but business face the trust deficiency, right? So these are the some reasons that is why business ethics is very important. Now we will see the business ethics in different organizational context that are large corporations then small businesses, civil society, organizations and public sector organizations. So first we will start from the business ethics in large versus the small companies. So small businesses include SMEs, SMEs are nothing but small and medium size enterprises typically differ in their attention and approach to business ethics compared to large firms. So they have more resource available to develop the sophisticated ethics and the management programs. That said they are constrained by the need to focus on profitability and shareholder value as well as the various sides and complexity of the operations. Now secondly we will see business ethics in private, public and the civil society organizations. So here first in that I talked about the public sector organizations while private sector companies will tend to be responsible primarily to their shareholders or owners. The main responsibilities of civil society organizations are the constituencies they serve. And in the public sector more attention is paid to higher level government and the general public. So in the public sector the more attention is to the government as well as the general public. Ethical issues prioritized by government agencies will be those of the rule of law, corruption, conflicts of interest, public accountability and various procedural issues involved in that. So main concepts are inertia and lack of transparency to external constituencies. So these are the formalized approach to the managing ethics. Now I will talk about the CSO that is civil society organization. So on the other hand CSOs will be more informal in their approach and main priorities on their mission and values. Then CSOs may be limited in terms of resources and training they may typically be able to deploy in relation to managing ethics. Main constraint is lack of resources and the formal training. So these two are the main constraints here. So here a summary of some of the differences in business ethics across organizational context is provided. Now let us see about globalization. So globalization has become one of the most prominent buzzwords of recent times. Whether in newspaper articles, politicians, speeches or business leaders, press conferences, the G word is frequently identified as one of the most important issues in contemporary society. So globalization is the practice that brings together people from different countries that have different cultures, different values, different law and ethical standards also. So globalization make these interaction possible regardless of how close or how far away the different partners are actually located from each other. In the context of business ethics, this controversy over globalization plays a crucial role and there is no doubt that globalization is the most current and demanding area in which corporations have to define and legitimize the rights and wrongs of their behavior. So the new feature globalization is that it makes real-time social, political, economic and cultural exchange possible between people or organizations without any need for direct physical contact to get a good grasp on what globalization means. So there are two main developments are particularly important. So the first one is development. So the first development is technological in nature. Modern communications technology from the telephone through to the internet open up the possibility of connecting and interacting with people in spite the fact that there are large geographical distances between them. So furthermore the rapid development of global transportation technologies allows people to easily connect with each people all over the globe. Then second development is political in nature. So here the territorial borders have been the main obstacles to worldwide connections between people and only 25 years ago it was still largely impossible to enter the countries in the eastern block without lengthy visa procedures and even then interactions between people from the two sides were very limited. So these two developments mainly account for the spread in the supra territorial connections. Then global communications, global products, global financial systems and capital markets are only the most streaking examples of globalization in the world economy. So there are many other areas where globalization in the sense is a significant social, economic and political process. So in the next video lecture we will see what are the significant implications for globalization and business ethics. These are the references of this video lecture. Thank you.