Law, ethics and communication

This page intentionally left blank Copyright © 2008, New Age International (P) Ltd., Publishers Published by New Age International (P) Ltd., Publishers All rights reserved No part of this ebook may be reproduced in any form, by photostat, microfilm, xerography, or any other means, or incorporated into any information retrieval system, electronic or mechanical, without the written permission of the publisher All inquiries should be emailed to rights@newagepublishers.com ISBN (13) : 978-81-224-2644-1 PUBLISHING FOR ONE WORLD NEW AGE INTERNATIONAL (P) LIMITED, PUBLISHERS 4835/24, Ansari Road, Daryaganj, New Delhi - 110002 Visit us at www.newagepublishers.com Preface Law, Ethics and Communication, a paper introduced by the Institute of Chartered Accountants of India for the students of Professional Competence Examination is a mix of Business Law, Business Ethics and Business Communication Whereas, Business Law formed part of the earlier curriculum of the C.A PE-II course also, Business Ethics and Communication have been introduced for the first time The present paper is a demanding one particularly in being technical in nature and pretty wide in terms of coverage An attempt has, therefore, been made to make a systematic presentation of the subject so that a reader has not to consciously mug-up; he just happens to learn the same In the Business Law portion, at the end of each chapter questions and practical problems (with Hints) asked in previous examinations have been given so as to give the students an idea as to the nature of questions that may be asked The book, thus, offers you an authentic, exhaustive and appropriate material on the subject in the easily understandable form However, if you have any suggestions for further improvement, please feel free to send the same which shell be acknowledged with gratitude and help improve the book for reference of future community of the students Authors This page intentionally left blank This page intentionally left blank This page intentionally left blank This page intentionally left blank 786 Law, Ethics & Communication Pune, Bhubaneswar, Thiruvananthapuram and New Delhi, the Ministry of Commerce, the Ministry of External Affairs, the Ministry of Finance, the Reserve Bank of India; the state governments; and other government agencies for their support We are thankful to the trustees of the Infosys Foundation for sparing their valuable time and energy for its activities Finally, what I want Infosys to achieve in the next 25 years? It is not enough for us to just achieve our targets in our operational goals, innovation and financial performance I would like Infosys to be a place where people of different genders, nationalities, races and religious beliefs work together in an environment of intense competition but utmost harmony, courtesy and dignity, to add more and more value to our customers day after day I want it to be a place that practices Voltaire’s much-celebrated statement: I disapprove of what you say, but I will defend till death your right to say it I would like more women leaders to shape the future of Infosys I would urge Infosys to choose a worthy dream, to go after it confidently, and to play a role that will make all of us proud in the years to come But always, without fail, she should follow her bliss Looking ahead, I believe that the best is yet to come Let these 25 years be the first step in a long, fruitful journey Thank you Bangalore June 10, 2006 N R Narayana Murthy Chairman of the Board 2.5 PRESS RELEASE Publicity is the most cost- effective marketing tool there is and it’s the only part of a marketing strategy that builds credibility Many industries have innovative up-start companies that are relatively unknown For these new companies to gain an edge over their competition, it is vital that they build credibility through publicity Credibility is the one thing that can win the customer’s heart and pocketbook at the same time and nothing builds more credibility than a well-written press release that gets picked up by the media Definition of Press Release A press release is pseudo-news story, written in third person that seeks to demonstrate to an editor or reporter the newsworthiness of a particular person, service or product Press releases are often sent alone by e-mail, fax or snail mail They can also be of a full press kit or may be accompanied by a pitch letter Press Release versus Advertising Advertising controls the message, while press release does not and because of this, press release creates credibility Many times readers see an advertisement and they know that Communication in Business Environment 787 what they are reading is just overblown hype Most readers are likely to trust independent authorities such as reviewers, columnists, reporters or broadcasters Without a doubt, it is these same authorities that are directly influenced by good public relations and specially a well-written press release A well-written press release can dramatically increase the sale of an organization, expose the organization to the masses and greatly enhance the image of the organization and its products A professionally written press release can make the difference between a successful press release and an utter failure While there are many factors that help a press release become, such as timeliness, newsworthiness etc., delivery technique is also very critical Features of a Press Release Drafting of press release is very important in the sense that if the release is on a very trivial matter, it will damage the reputation of the concerned publicity or information department besides incurrence of unnecessary expenditure So, certain factors are required to be considered carefully while drafting the press release for an organization Following factors to be kept in mind while writing a press release: Style The press release should be written in a journalistic style It has not much place for subsidiary or background material Content It should provide information of interest or facts to the readers and should cover all the important aspects of the concerned subject matter Timeliness It should be on a subject which is recent or in news The introduction or lead should be in a summary form as it is a news story Size It should be concise and to the point The release should not be generally lengthy Consistency The release should have a consistent format Usually, the name of the organization from where the release emanates is given on the top The date and place of release are indicated on the top right side It should have a introductory paragraph describing in brief the main content of the release Simplicity The language of the release should be simple without any ambiguity and without any effort towards colour and ornamentation 788 Law, Ethics & Communication Types of Press Release The press release covering news in the case of the Government are mainly of four types These are Press Communiqués Press Notes Hand-outs, and Un-official Stories or Un-official Hand-outs T yp es o f P ress R elease P ress C om m u niq u es P ress N o tes H and-o u ts U n -official Sto ries o r H and-o u ts Press Communiques: Press Communiques are issued when some important government decisions or announcements are such as cabinet appointments, decisions of interactions with the foreign dignitaries, different bi-lateral and international agreements etc This type of press release is very formal in nature The press is expected to reproduce this type of press release without making any major change The unique feature of press communiqués is that no heading or subheading is given on this type of press release However, it should carry the name of the ministry or department along with the place and date of press release at the bottom left-hand corner Press Notes: The next type of press release is the press note Like press communiqués, this type of press release are issued on important matters But it is less formal in nature For example, for changing the tariff rates press notes are issued Press notes also should carry the name of the ministry or department issuing the note along with the place and the date of press release at the bottom left hand corner However, unlike press communiqués, press notes should include heading or subheading at the top of the press release Hand-outs: The next type of press release is the hand-outs Unlike press communiqués and press notes, hand-outs are less formal type of press release and this type of press release are not issued under the government’s formal authority However, these hand-outs are issued on different subject matters and on the basis of day-to-day activities of the ministries and departments of the government Usually, VIP speeches and questions and answers in Parliament are released through these hand-outs One of the most important common Communication in Business Environment 789 categories of hand-outs relates to the speeches of ministers and other high officials and this hand-outs are released only when the speech is concerned with the activities of any governmental work Un-official Stories: The fourth and the last type of press notes are un-official handouts or stories The basic difference between the hand-outs and unofficial stories is that handouts bear the name of the PIB or of other releasing agency on the top without any mention of the ministry or department to which the release pertains and un-official stories not have the imprint of the PIB or of other releasing agency This type of press release is issued on a subject where the government would not like to assume any official responsibility in the matter but recognizes that there may be favourable impact in making information public unofficially In fact, this type of press release are supplements to oral briefings These unofficial handouts are delivered across the table to press representatives and in no way general release is made Like other types of press releases, the date and the place of release are mentioned at bottom left hand corner Model Press Releases Example 1: Short Form Press Release Revocation of suspension in trading of securities of companies The Exchange had on August 30, 2006 issued a notice for suspending trading in securities of 52 companies on and from September 20, 2006 on account of non compliance by these companies with the provisions of the Listing Agreements It is further informed that in case, any company complies with all the provisions of the Listing Agreements after the date of suspension (i.e., after September 20, 2006) but within one month of date of suspension (i.e., before October 20, 2006), trading activities of such a company will remain suspended up to October 20, 2006 Since the following companies have complied with all the provisions of the Listing Agreement after the date of suspension (i.e., after September 20, 2006) but within one month of date of suspension (i.e., before October 20, 2006), trading activities were suspended up to 20th October, 2006: Serial number Scrip code Name of the company 532166 531681 531991 505840 531960 507942 Alka Securities Ltd Amradeep Industries Ltd Amraworld Agrico Ltd Jaipan Industries Ltd Jindal Online.com Ltd Jog Engineering Ltd Accordingly, the trading in the abovementioned companies will resume in their respective groups w.e.f October 20, 2006 Kalyan S Bose Head- Corporate Affairs October 20, 2006 790 Law, Ethics & Communication Example 2: Standard Form Media Release Information relating to actions taken by Bombay Stock Exchange on small cap Companies As on date the Exchange has 850 scrips in the trade-to-trade segment on account of surveillance action imposed on them This is in addition to the scrips, which are placed under ‘Z’ group, which are also settled on trade-to-trade basis Trade-to-Trade implies that all transactions in the scrip are delivery based and curtail excessive speculation The Exchange trading system also displays a pop up caution message at the time of order entry in these scrips These are typically small cap securities (also referred in common parlance as penny stocks) Further, as a part of surveillance review, all scrips under Trade-to-Trade segment (including ‘Z’ group) are attracting 100% margin (VaR+ ELM) w.e.f August 8, 2005 Additionally all the scrips under this segment attract a reduced circuit filter of 5% w.e.f September 21, 2005 The Exchange has suspended 1369 scrips (since 2000-01 to till date) on account of noncompliance with various clauses of listing agreement The Exchange has also issued show cause notice to 95 companies for non-compliance with the provisions of the listing agreement This is being released in the interest of the investing public Kalyan S Bose Head- Corporate Affairs Bombay Stock Exchange Ltd 25th Floor, P.J.Towers Dalal Street Mumbai- 400 001 Communication in Business Environment Example 3: Long Form Press Release BOI Shareholding is the First Clearing House in the Country to be ISO 9001: 2000 certified The Bombay Stock Exchange (BSE), Bank of India (BOI) and BOI Shareholding Limited (BOISL) are pleased to announce that BOISL has matched the internationally endorsed quality system as per the ISO requirement, thus becoming the first Clearing House in India to be ISO 9001: 2000 certified The certification will be received by Mr K V Krishnamurthy, Chairman and Managing Director, Bank of India and Chairman, BOISL at the BSE Convocation Hall on October 30, 2002 Justice D.R.Dhanuka, Non-Executive Chairman, BSE would be the Guest of Honour “In an increasingly competitive global as well as domestic market place, standard of quality, social accountability and environment safety are issues critical in running a successful business Indeed a Quality Assurance System through the ISO 9000 system will pay dividends in the long run The ISO certification is a step towards Total Quality Management and achieving continuous improvement in services”, says Mr K V Krishnamurthy, Chairman and Managing Director, Bank of India and Chairman, BOISL He adds, “The Institution is determined to provide an error free, efficient and seamless environment to the Indian Capital Markets BOISL has been responsible for providing new products in the Indian Capital Market and extends a full gamut of services to Clearing Members (CM) of BSE, such as Direct Payout (through this facility the CM need not give the paying instruction to their DP for settlement related operations as the order is generated electronically) and Depository Services.” Senior officials from BSE and Bank of India including Shri O N Singh, Executive Director, Bank of India, Smt Deena Mehta, Governing Body Member, BSE, Shri S T Gerela, CEOClearing & Settlement, BSE would be present at the function BOISL is also an approved intermediary for the Securities Lending Programme (SLP) of the Securities Exchange Board of India (SEBI), BOISL, with the assistance of BSE, would shortly be launching a customized SLP for the members of the Exchange, which shall give a fresh impetus to the capital markets BOISL is a tech-savvy Institution, committed to adopting state-of-the-art technology The Clearing House has played an active role in implementation of various reforms introduced in the capital market including shifting from physical to rolling settlement, T+5 and T+3 In fact, it is geared for the proposed T+2 and T+1 settlement Since 1921, BOI was undertaking clearing activities for BSE The physical and money settlements for ‘A’ group shares and money settlements for ‘B’ group shares were handled by BOI’s staff manually for a number of years In 1986, BSE witnessed tremendous increase in volume of business and therefore requested BOI to consider computerization of Clearing House Besides, it was also felt that the computerized clearing and settlement services could be extended to other stock exchanges as well It was therefore decided to meet the challenges ahead more effectively by forming a new entity named BOI Shareholding Limited (BOISL), which was set up as a joint venture of BOI and BSE with a capital contribution ratio of 51:49 B Subramani Managing Director October 30, 2002 Place: Mumbai 791 Law, Ethics & Communication 792 2.6 CORPORATE ANNOUNCEMENTS BY STOCK EXCHANGES Examples of Corporate Announcements Example Name of the Company Amtek India Limited Announcement Date 7.11.2006 6.11.2006 19.6.2006 31.10.2005 13.10.2006 11.10.2005 NSE Symbol AMTEKINDIA Content of Announcement Amtek India Ltd has submitted to the Exchange a copy of the Notice of the Ordinary General Meeting of the Company to be held on November, 2006 The details of the same shall be available on the NSE website (http: www.nseindia>Corporate>Latest Announcements) Amtek India Ltd has informed the Exchange that the Board of Directors of the company in its meeting held on November 4, 2006 has recommended the issue of 2,69,17,810 equity shares of Rs each at a premium of Rs 145 per share aggregating to Rs 395,69,18,070 to the promoters of the company by way of preferential allotment subject to the approval of the shareholders of the company and in principle approval from the stock exchange Amtek India Ltd has informed the Exchange that Mr Rajendra Singh Bedi has joined the company as Company Secretary in place of Mr Ajay Kaushik, who has resigned Henceforth, Mr Rajendra Singh Bedi will act as Compliance Officer of the Company Amtek India has informed the Exchange that the Shareholders of the company in the annual general meeting has approved the issue of Equity Shares/Warrants and/or irredeemable and convertible into equity shares whether optionally or otherwise/ Global Depository Receipts (GDRs)/American Depository Receipts (ADRs)/ Foreign Currency Convertible Bonds (FCCBs) up to US $ 50 million Amtek India Ltd has informed the Exchange that Foreign Currency Convertible Bonds of US $75 millions of the Company has been fully subscribed and the Company has allotted FCCBs of US $ 75 millions The above referred FCCBs are exposed to be enlisted on Singapore Stock Exchange subject to regulatory approval Amtek India Ltd has informed the Exchange Citigroup Global Markets (Mauritius) Pvt Ltd has acquired 576604 (0.97%) and 602393 (1.02%) shares of Amtek India Ltd on October 04,2005 Contd Communication in Business Environment 07.10.2005 30.08.2005 29.07.2005 793 The mode of acquisition is through Secondary Market purchase and the shareholding of Citigroup Global Markets (Mauritius) Pvt Ltd after the said acquisition is 3,157,562 shares aggregating to 5.33% of the total paid up capital of Amtek India Ltd Citibank N A has informed the Exchange that Citigroup Global Markets (Mauritius) Pvt Ltd has acquired 576604 (0.97%) and 602393 (1.02%) shares of Amtek India Ltd on October 04,2005 The mode of acquisition is through Secondary Market purchase and the shareholding of Citigroup Global Markets (Mauritius) Pvt Ltd after the said acquisition is 3,157,562 shares aggregating to 5.33% of the total paid up capital of Amtek India Ltd Amtek India Ltd has submitted to the Exchange a copy of the Proceedings of the meeting of the Company held on August 25, 2005 The details of the same shall be available at the NSE website (http://www.nseindia.com) under: Corporate>Latest Announcements Amtek India Ltd has informed the Exchange that the BOD in their meeting held on July 29, 2005 has approved the sub-division of the Equity shares of the Company from one equity share of Rs 10 each to equity shares of Rs each 2.7 BUSINESS REPORT A business report is an orderly and objective communication of factual information that serves a business purpose To be classified as business report, a report must serve a business purpose Following steps are required to be followed in writing a report: Step-1: Pre-writing Determine the exact objective of the report—understand clearly the particular business need for which the report is sought Plan and conduct background research and data gathering Document all reference material collected Organize all gathered information into a logical sequence as a working plan Step-2: Writing the first draft State the subject and purpose of the report Provide an executive summary—a synopsis of the recommendations and conclusions (It is a way of practicing etiquette of giving the readers the most important information right away) 794 Law, Ethics & Communication Body of the report—showing the factual information in detail Provide charts, graphs etc., where necessary Write the conclusion and provide recommendations as a logical sequence of the findings Step-3: Revising and preparing the final draft Read through the first draft and see whether information presented is complete Ensure that opinions are separated from the facts Check whether presentation of information is concise Proof read your report for errors in spellings and grammars and check style, layout etc Finally, seek suggestions for improving your final draft report Good writing is often a joint project Types of Business Report Business reports are of two kinds– Shorter Reports, and Long and Analytical Reports Again, shorter reports can be written in two different forms These are: a The Schematic Report Form, and b The Letter Style Report Form Model Business Reports Example 1: A Schematic Report TECHNO SUPER COMPANY LTD Salt Lake, Kolkata Report on Employee Involvement in Management To: Mr Gautam Mukherjee, CEO From: Mr K Raman, Manager, HRD Executive Summary A Employee involvement can be used to improve labour-management relations, achieve increased quality and efficiency B Employee involvement needs to be done in phases Adequate training in employee involvement procedures must be given Commitment and education are necessary for the success of this method Communication in Business Environment Terms of Reference To determine if employee involvement is suitable for our company Action Taken Reviewed case histories of four leading Indian companies in our field relating to employee participation in management Interviewed top level managers, labour leaders and employees of such companies Reviewed the employee incentive systems and studied in detail the significant labour management problems in our company pertaining to the last three years Analyzed the current structure and organization of our company and evaluated ways in which employee participation would impact our company Findings Case studies of the four selected companies reveal that if properly administered, the employee participation programme has been a success Interviews of executive managers of such companies have revealed that employee participation resulted in an increase in productivity morale, fall in absenteeism and labour-management conflicts Job satisfaction has significantly increased in such companies, resulting in low resignations and employee turnover In our company in four out of five instances of significant labour unrest during the last three years, it is observed that the standards set by middle level management were found difficult to be complied with Workers’ grievances were not properly addressed There is considerable lack of motivation among employees in our company They are also apprehensive about their future growth prospects Conclusion Analyzing our organizational set-up and interacting with a cross-section of our employees, it can be seen that a comprehensive scope for increasing employee productivity and efficiency exists Recommendations In my opinion, employee participation in management needs to be instituted in our company Production standards and schemes of incentives should be set up after consultations with employee representatives at the production level Workers should be given adequate chance to influence the decision-making process This can be done by eliciting suggestions from employees to solve work-related problems Such suggestions will also help our company to cut costs in production Representation of employee participation in the Board of Directors will help the executive management to remain conversant with employee concerns 795 Law, Ethics & Communication 796 The procedure of employee participation needs to be instituted in phases, gradually from the middle and line managers down to the workers Proper training and education programmes need to be undertaken to educate managers for administering this programme A sound follow-up and monitoring needs to be done by the top executive management Commitment from both the management and the employee representatives are required to make this programme successful K Raman 12th June, 2006 Example 2: A letter style report Trustworthy Auto Spares Ltd Jaipur Date: August 10, 2006 To: R Sharma, Production Manager Subject: Report on safety conditions at factory premises As per your request to examine the safety conditions at our factory premises, a complete examination has been made with findings as follows: The manual on safety norms and guidelines issued from time to time are properly understood and observed by the workers The emergency exit mechanism was drilled by the workers last week and is found to be in satisfactory condition Fire extinguishers are in place and in good shape However, a more in-depth examination has revealed a few shortcomings, which are detailed below Our production processes require steam—which is generated by boiler-tubes On inspection, these tubes revealed deposits of thick scales, formed due to the use of hard-water The de-scaling processes are not very frequent since production generally gets delayed It is therefore suggested that descaling be done at least twice a month on a fixed schedule and in a phased manner to avoid all possibilities of accidents resulting from bursting boilers The need is felt that the ventilation system in the work area be further improved to allow free passage to the acid fumes which sometimes tends to accumulate causing respiratory troubles for the workmen Given that the number of employees have increased in the work area, a short training programme may be conducted to acquaint them with the use of hazardous operations such as metal-cutting Finally, it is recommended that the process of employee feedback on the safety measures and suggestions for improvements be strengthened for instant remedial measures M Shukla Factory Manager Communication in Business Environment 797 Business Communication: Model Questions Chapter-1: Elements of Communication Define Communication State the objectives of communication Explain the importance of communication in business State, in detail, the process of communication What are the characteristics of a good communication system? Explain the principles to be followed in communication What are the factors that help to create effective communication? What are the different forms of communication? Explain in detail Distinguish between: a) Vertical Communication and Horizontal Communication b) Upward Communication and Downward Communication c) Oral Communication and Written Communication d) Formal Communication and Informal Communication How effectiveness of downward communication can be improved? 10 What are the purposes of Horizontal Communication? 11 Write short notes on: a) Wheel Communication Network b) Circular Communication Network c) Chain Communication Network d) Grapevine e) Rumours f) Paralanguage g) Consensus Building h) Influencing and Persuasion Skills 12 What is Formal Channel of Communication? State the advantages of formal channel of communication 13 What is Informal Channel of Communication? State the limitations of informal channel of communication 14 What are the factors to be considered in the process of selection of appropriate mode of communication? 15 Why is feedback important in communication process? 798 Law, Ethics & Communication 16 Comment on the following: a) “Communication does not simply involve sending of message by a person.” b) “Encoding the matter is an element of communication.” c) “Horizontal communication facilitates coordination of interdependent activities.” d) “Sign language can not be complete substitute for a verbal communication in all cases.” e) “Body language always speaks the truth while speaker may play with words to hide the truth.” f) “No one can be held responsible for informal communication.” 17 State the major limitations of paralanguage 18 What is Active Listening? What are the ingredients of active listening? 19 State the major obstacles to active listening 20 Explain the concept of ‘Critical Thinking’ What are the objectives of critical thinking? 21 State the main components of critical thinking 22 How one can prepare himself for the purpose of presentation before the public? Also explain different techniques of presentation 23 Define the concept ‘Corporate Culture’ State different levels of corporate culture How corporate culture be communicated? 24 What is ‘Innovation Spirit’? Describe the strategies for communicating innovative spirit 25 What are the different barriers to communication? How to overcome these barriers? 26 How you would ensure good communication in business? 27 Explain the concept ‘Communication Ethics’ State the guidelines for evaluating communication from an ethical standpoint 28 What are the different ways of fostering ethical communication? 29 What is ‘Group’? Why group is important in an organization? 30 State the important characteristics of a group 31 Why are strong interpersonal relationships important to business? State some of the obstacles of such interpersonal relationships 32 Explain the concept ‘Group Dynamics’ State, in this context, the four phases of group dynamics 33 Define Conflict “Conflict if successfully managed can be constructive”- Explain Communication in Business Environment 799 34 What are the key factors in negotiation? Describe the negotiation process in detail 35 What are the main causes of group conflict? State the techniques that can be applied to resolve the group conflict 36 State the major factors that affect the influence and persuasion skill of a person 37 What is ‘Negotiation’? Why negotiation is very important in business? State the tactics of negotiation 38 What is Bargaining? Explain, in brief, the game theory of bargaining 39 What you mean by the term ‘Emotional Intelligence’? How it is measured? 40 Write short notes on the following types of soft skills: (a) Interpersonal skills (b) Personality traits (c) Leadership traits Chapter-2: Communication in Business Environment What are the different formats of a business letter? What are the basic features of Semi-block Format? What are the different parts of a business letter? Write short notes on the following parts of a business letter: (a) Post script (b) Salutation (c) Complementary close (d) Enclosure line What are the ordinary business and special business that are transacted at the Annual General Meeting? State different circumstances in which the issue of notice becomes necessary Define the concept ‘Agenda’ Draft a notice of any Annual General Meeting of a company Draft a notice of the first Board Meeting of a company 10 What factor should be kept in mind while writing a Press Release? 11 Distinguish between Minutes and Resolutions What are the different types of Resolution? 12 Define Minutes What are the different types of Minutes? 13 Draft a Minute of the Board Meeting of a company 14 Draft a Minute of any Annual General Meeting of a company 800 Law, Ethics & Communication 15 What is Press Release? Distinguish between Press Release and Advertising 16 State the important features of a Press Release What are the different types of Press Releases in case of Government? 17 Draft a corporate announcement by a recognized stock exchange on the matter that the Board of a listed company is considering the alteration of the denomination of equity shares of the company 18 Draft a corporate announcement by a recognized stock exchange on the matter that the Board of a listed company is considering the issue of bonus shares 19 What is Business report? What are the different types of Business Report? 20 State the common matters to be included in the Chairman’s speech of any company [...]... 693–697 INTRODUCTION 693 ETHICS IN ACCOUNTING ETHICAL ISSUES AND PROBLEMS 694 694 SECTION III – BUSINESS COMMUNICATION CHAPTER 1: ELEMENTS OF COMMUNICATION COMMUNICATION: MEANING, IMPORTANCE AND PROCESS FORMS OF COMMUNICATION PRESENTATION SKILLS PLANNING AND COMPOSING BUSINESS MESSAGES COMMUNICATIONAL CHANNELS CORPORATE CULTURE INNOVATIVE SPIRITS COMMUNICATION BREAKDOWNS COMMUNICATION ETHICS GROUP DYNAMICS... ETHICS 617–636 617 xiv Contents MEANING AND DEFINITION OF ETHICS NATURE AND OBJECTIVE OF ETHICS INTRODUCTION TO BUSINESS ETHICS NEED AND OBJECTIVE OF BUSINESS ETHICS THE CONCEPT OF NEW ETHICS ETHICAL DIMENSIONS IMPORTANT FACTORS OF BUILDING AN ETHICAL INFRASTRUCTURE ETHICS AND CONFLICT OF INTEREST CHAPTER 2: CORPORATE SOCIAL RESPONSIBILITY INTRODUCTION MEANING AND DEFINITION WHY BUSINESS SHOULD BE SOCIALLY... legal relations and, therefore, was not a contract [Jones v Vernon’s Pools Ltd (1938) 2 All E.R 626] (3) An aged couple (C and his wife) held out a promise by correspondence to their niece and her husband (Mrs and Mr P.) that C would leave them a portion of his estate in his will, if Mrs and Mr P would sell their cottage and come to live with the aged couple and to share the household and other expenses... UNDERSTANDING OF LEGAL DEEDS AND DOCUMENTS CHAPTER 8 : PARTNERSHIP DEED PARTNERSHIP DEED POWER OF ATTORNEY LEASE DEED AFFIDAVIT INDEMNITY BOND GIFT DEED MEMORANDUM AND ARTICLES OF ASSOCIATION OF A COMPANY ANNUAL REPORT OF A COMPANY ANNEXURE TO THE DIRECTORS’ REPORT 579–614 579 582 586 589 590 590 593 605 613 SECTION II – BUSINESS ETHICS CHAPTER 1: ETHICS & BUSINESS ETHICS AN INTRODUCTION TO ETHICS. .. HARASSMENT GENDER ETHICS AND GENDER EQUALITY xv 671 672 673 675 CHAPTER 6: ETHICS IN MARKETING AND CONSUMER PROTECTION 679–692 INTRODUCTION COMMON UNETHICAL PRACTICES FACTORS BEHIND ETHICAL PRACTICES MARKETING ETHICS IMPORTANT ISSUES CONCLUSION CONSUMER PROTECTION CONSUMER RIGHTS LEGISLATION FOR CONSUMER PROTECTION HOW CAN WE PROVIDE CONSUMER PROTECTION? CHAPTER 7: ETHICS IN ACCOUNTING AND FINANCE 679... by free consent of parties, competent to contract, for a lawful consideration and with a lawful object and are not hereby expressly declared to be void.” 6 Law, Ethics & Communication Law Thus, the essential elements of a valid contract can be summed up as follows: 1 Agreement 2 Intention to create legal relationship 3 Free and genuine consent 4 Parties competent to contract 5 Lawful consideration 6... the judgement of a court and entered upon its records is often called a Contract of Record Example A is indebted to B for Rs 500 under a contract A fails to pay B sues A and gets a judgement in his favour The previous right of B to obtain Rs 500 from A is replaced by the judgement in his favour and execution may be levied upon A to enforce payment, if need be Law, Ethics & Communication Law 14 A Recognizance... bicycle to B and on the part of B to pay Rs 5,000 to A The agreement is a contract If A does not deliver the motor bicycle, then B can go to a court of law and file a suit against A for nonperformance of the promise on the part of A Law of Contracts 5 On the other hand, if A has already given the delivery of the motor bicycle and B refuses to make the payment of price, A can go to the court of law and file... to recover land in an action of ejectment Such rights are available against the whole world Rights in personam are against or in respect of a specific person and not against the world at large Examples (1) A owns a plot of land He has a right to have quiet possession and enjoyment of the same In other words every member of the public is under obligation not to disturb his quiet possession and enjoyment... CONCEPTS AND EXPLANATIONS UNDER NEGOTIABLE INSTRUMENTS ACT CHEQUE THE PAYING BANKER NEGOTIATION THE COLLECTING BANKER 165–236 165 175 179 187 200 203 xii Contents BILL OF EXCHANGE AND PROMISSORY NOTE HUNDIS CHAPTER 4: THE PAYMENT OF BONUS ACT, 1965 INTRODUCTION APPLICABILITY OF THE ACT PENALTIES AND OFFENCES CHAPTER 5: THE EMPLOYEES’ PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT, 1952 EXTENT, OBJECTIVE AND ... BUSINESS ETHICS CHAPTER 1: ETHICS & BUSINESS ETHICS AN INTRODUCTION TO ETHICS 617–636 617 xiv Contents MEANING AND DEFINITION OF ETHICS NATURE AND OBJECTIVE OF ETHICS INTRODUCTION TO BUSINESS ETHICS. .. 693 ETHICS IN ACCOUNTING ETHICAL ISSUES AND PROBLEMS 694 694 SECTION III – BUSINESS COMMUNICATION CHAPTER 1: ELEMENTS OF COMMUNICATION COMMUNICATION: MEANING, IMPORTANCE AND PROCESS FORMS OF COMMUNICATION. .. Business Law, Business Ethics and Business Communication Whereas, Business Law formed part of the earlier curriculum of the C.A PE-II course also, Business Ethics and Communication have been