Business Ethics Business ethics can be defined as the principles and standards that establish acceptable conduct in business organizations. The acceptability of behaviour in business is determined by customers, competitors, government regulators, interest groups, and the public, as well as each individual’s personal moral principles and values.   Many consumers and social advocates reckon that businesses should not only make a profit but also consider the social implications of their activities. We define social responsibility as a business’s obligation to maximize its positive impact and minimize its negative impact on society. Although many people use the terms social responsibility and ethics interchangeably, they do not mean the same thing. Business ethics relates to an individual’s or a work group’s decisions that society evaluates as right or wrong, whereas social responsibility is a broader concept that concerns the impact of the entire business’s activities on society.   There are good business reasons for a strong commitment to ethical values: 1. Ethical companies have been shown to be more profitable. 2. Making ethical choices results in lower stress for corporate managers and other employees. 3. Our reputation, good or bad, endures. 4. Ethical behaviour enhances leadership. 5. The alternative to voluntary ethical behaviour is demanding and costly regulation.   Points to Ponder relating to behavioral ethics: 1. What conflicts of interest have you personally experienced in personal or professional roles? 2. If you perceive a potential conflict for yourself, what are some ways you might ensure that this conflict doesn’t lead to unethical behavior for you and others? 3. When have others’ conflicts of interest impacted how you or those you know were treated?     4. What types of policies can or do organizations implement to try to reduce conflicts of interest or their costs? 5. Why do you believe conflicts of interest are so pervasive in society? Why don’t we take more steps to avoid them? 6. Why is it so hard for individuals to recognize their own conflicts of interest, and how is this impacted by behavioral biases?   Conflict of Interest: Conflict of interest arises when there is a clash between responsibility and reward. Say, if a doctor decides to be more business-like, if a judge decides to favor one party, if a ruling party favors a decision not good for the masses, what will happen? A conflict of interest exists when a person must choose whether to advance his or her own personal interests or those of others. Wal-Mart Stores, Inc., may have the toughest policy against conflict of interest in the retail industry. Sam Walton, the late founder of Wal-Mart, disallowed  company buyers from accepting so much as a cup of coffee from suppliers. The Wal-Mart policy is black and white and leaves no room for interpretation, and it is probably a factor in helping Wal-Mart reduce...

Materials Handling Minimize Movement and Maximize Productivity Manufacturing organizations handle many types of materials in their production environment. Raw materials, materials-in-progress, finished goods, accessories, components, packaging materials, maintenance and repair supplies, scrap and many more must be handled in an efficient manner to make the operations cost-effective and to avoid wastage. The principle behind material handling process is said to be “no handling”, which is not practicable in reality. So it would be appropriate to say, that the objective of materials handling would be, to reduce the number of handlings as well as reducing the distances through which the materials are handled. Why efficient materials handling is inevitable in a manufacturing set-up? The movement of materials from the receiving area to the shipping area through the production line does not add value to the product but only to the cost. Further, plant layout and materials handling are complementary to each other. A production facility must incorporate a good plant layout that enhances the efficiency of movement of materials with ease and should deliver maximum productivity. Principles for Efficient Materials Handling There are certain principles that serve as a guide for efficient materials handling. These provide a framework for selecting specific materials handling equipments that form the core of the production system. Eliminate handling-If not, reduce the distance travelled by the materials Keep moving-If not, reduce the time spent at crucial points Simple patterns of material flow is appreciated-If not, reduce back tracking, cross overs, congestion Carry pay loads Carry full loads Use reliable and inexpensive source of power Materials handling should be considered in the light of movement of men, machines, tools and information. It also depends on the type of product manufactured, quantity, value and size of the organization. Cost effectiveness can be achieved if the firm is able to reduce the manufacturing cycle time through faster movement of materials and thus work-in-progress inventory costs can also be controlled and reduced. Design of the plant layout that facilitates sequential flow of materials through the production facility, improved working conditions, safety in the movement of materials, contribution to better quality by avoiding damage to the materials due to inefficient handling and workers being appraised about the importance of smooth materials handling result in higher productivity at lower manufacturing cost. Interested in being served food by Robots! Factors to considered while deciding on material handling equipments: Adaptability, flexibility, load capacity, power, speed, nature of supervision required, space requirements, ease of maintenance, environment friendliness and cost are some of the factors to be taken into consideration while deciding on the type of material handling equipments. Also the capabilities of manpower to operate the equipment and safety of personnel cannot be overlooked. It is important to select and design, materials handling system that are expensive to purchase and operate. For instance, if overhead cranes are to be used, the structure of the building should be strong enough to support the installation. Spacious aisles are mandatory if the loads are heavy and transported across the shop floors. Equipments used: Elevators, hoists, industrial trucks like fork-lift trucks, pallet trucks, pipelines, automatic transfer devices, automated guided vehicles, and industrial robots are some of the handling equipments that have found their ideal place in this process. Materials handling activity should be evaluated like any other activity to gauge its effectiveness. The focus should be on the manufacturing cycle efficiency, equipment utilization, percentage of time lost, total number of moves and material handling costs as percentage of manufacturing...

Corporate policy formulation What are Policies? Business activities should be based on some solid principles that serve as guidelines for direction. These principles are nothing but policies which help a business firm in attaining its goal. Policy does not tell a person exactly what to do, but it does point out the direction in which to go. While objectives are a goal or an end to be sought, policies are a general rule of action which helps in attaining a  goal. Policy Statements Statements released by corporate firms generally highlight the major policies behind their action. For instance, if a firm says that, its aim is to provide the customers with products that are competitive in terms of quality, price, weight and contents, it tries to sum up the recurring problems in the industry and assures the customers that it will serve the customers in the true spirit of business. What is the meaning of Policy Formulation? Policies are generally formulated by the officials of the top management cadre, as policies reflect the mode of thought and principles underlying the activities of an organization. Policies guide a firm in the following aspects. Thinking Decision making Conduct of business Enterprise operations Problem solving So, it is evident that each policy contains two components, a “principle” and a “rule of action”. Corporate policies are statements of directions, guidance for corporate thinking, corporate behavior and action, and therefore cover a very broad area. Such policy formulations are made in the light of challenges posed from the external environment exposing the strengths and weaknesses of the organization.  The Process of Policy Formulation Process of policy formulation – corporate management – Manu Melwin Joy from...