Abstract

Many large corporations have added ethical framework to their business processes as these organizations have realised that in long run an ethical business has a bright future. This includes customers, employees, vendors and the public. Every decision made by the business is based on the effect it may have on any one of these groups of people, or the environment surrounding it.

In organizations ethics go beyond the legal requirements; organizations understand that ethical framework helps in making supple decisions making and it also guides organizational behaviour and culture. Morality governs private, personal interactions. Ethics governs professional interactions. Law governs society as a whole, often dealing with interactions between total strangers. The legal environment in India includes various laws regulating business activities like Companies Act 2013, Consumer Protection Act, 2019 and many other such legislations, policies relating to licensing and approvals, foreign trade etc. Ethics are a set of moral values an individual/organization establishes for one own entity and own culture and behaviour whereas laws are structured rules utilized to govern the entire society.

A good example of how advertising can become responsible unethically is: Volkswagen’s campaign that promoted environmentally friendly “Clean Diesel” vehicles that had low-carbon emissions. In India, the National Green Tribunal (NGT) had penalised car manufacturer Volkswagen with a “conservative” fine of Rs 171.34 crore, for contributing to air pollution in Delhi through excess nitrogen oxide (NOx) emissions and for causing extensive health damage. The company admitted to having installed software that manipulated emissions readings to make its cars appear as if they were environmentally friendly. Volkswagen erred by misleading consumers with false claims.

There’s a huge difference between using marketing to paint a product or service in the best possible light by outright lying. With traditional advertising, it’s easier to monitor if companies are using misleading language to target customers. With digital advertising, anyone can run an ad and face minimal oversight.

Airlines are notorious for advertising low prices to entice travellers, but some of them manage to keep things on the ethical side by disclosing when Jetstar and Virgin Airlines decided to forgo this disclosure, they were fined $745,000 for marketing false low prices in their ads. Whereas customers had to pay additional fees involved to finalize the booking.

The Wikipedia defines ethics as a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behaviour. It is also known as moral philosophy. For all of us ethics means living our life responsibly; to review whether our actions are right or wrong. Ethical behaviour is that which is morally accepted as “good” and “right” as opposed to “bad” or “wrong” in a particular situation. All of us live in an ethical illusion about ourselves. The ethical illusions are discrepancies between how we think and how we behave and how we take an action. It also includes our sense of reasoning for our behaviour. Laws are the regulations established, and usually written, by a governing power. Ethics are the morals of a culture, and often, they define the laws of the land. The distinction is that, while you may obey the law, you might not always act ethically. It would be a rare case for something to be ethical, but against the law. An important point to keep in mind is that ethics do not have any associated punishments when broken. A law, however, specifically sets the types of repercussions that should occur or should it be broken.

The fundamental of any business firm cannot claim to be ethical firm if it looks at profits and numbers while ignoring the legitimacy. Today, businesses and industries increasingly find themselves facing external pressure to improve their ethical practices. The alert and well-informed customers today scrutinize business activities. Pressure groups are a good example of this. They are external stakeholders they focus on activities & fair practice of industries with direct and indirect actions which at times has forced some firms to close down their shutters.

Ratan Tata, the then Chairman of Tata Group of Companies, did something that is totally out of the world. He in fact taught the world some lessons in business ethics. After the November 2008 Mumbai attacks which were a series of terrorist attacks that took place in Hotels Taj and Oberoi were badly hit, Ratan Tata went all out to help every single person who was affected in Hotel Taj including those like the pav bhaji vendor outside the hotel. Each one was offered compensation running into several lakhs of rupees. The education of children of those affected, free medical facilities for those survivors at Tata hospital for the rest of their lives, total education of the 46 children who were affected by the bomb blast but survived, has been taken up by the Tata group. A Trust has been formulated to shoulder responsibility for the rehabilitation of the families of the victims. Ratan Tata himself visited the families of each of the 80 employees affected by the bomb blast, and offered compensation running into several lakhs of rupees. Such examples define business ethics. Leaders like Ratan Tata establish faith in customers. He calls himself an industrialist not a businessman.  He has strong attachment to his businesses yet an executive’s ability to make rational decisions.

For leaders at all level, it’s more important to learn how to make the right decision while dealing with different kinds of feelings rather than suppressing those feelings.

Some of the top B Schools such as IIMs in India and other top rung B schools in the world are revamping their syllabus adding business ethics as a core paper, adding projects on ethical values. The process of revamping is for also pondering over and challenging the standard of business wisdom practiced for decades. Ethics and social responsibility seem to be in limelight by some serious thinkers and practitioners.

Chairman of Wipro ltd, Azim Premji, is another example of modesty and a man who doesn’t believe in extravaganza. He annoyed several other fellow industrialists when he said that rich people should pay more taxes, in response to some budget proposal. Not stopping there, he justified his views in many interviews as well. WIPRO has spent upwards of some nine hundred crores in Karnataka and in Andhra Pradesh, where it has helped build school infrastructure, improve standards of education and so on. Its donations to several Government hospitals in Tamil Nadu is very much an example of the highest quality of business ethics.

In the world-famous Enron scandal, which was a series of events involving dubious accounting practices that resulted in the bankruptcy of the energy company, the accounting firm Arthur Anderson got shut down. Enron executives used fraudulent accounting practices to inflate the company’s revenues and hide debt of its subsidiaries. The Securities and Exchange Commission credit rating agencies (SEC), and investment banks were also accused of negligence and outright deception that enabled the fraud. I think it’s symptomatic of a breakdown of the ethical values of business over a period of perhaps 20 years, a gradual erosion of business ethics.

Business organizations dillydally from ethical practices because of compelling and persuasive day-to-day organizational practices. Ethics take a backseat because of the multifaceted processes and practices of businesses which leaves little time or penchant to divert attention to the moral content of organizational decision-making. Morality in business appears to be so ambiguous and qualitative in nature that it lacks substance in relation to business objectives and goals in today’s world. Business relies on quantitative performance than qualitative performance. The pace leaves hardly any time for the managers in reworking their decisions based on ethical framework. Hence the entire framework and thinking of the managers lacks ethical decision making.

Scams such as Satyam Case, Enron Case, I Gate Case, 2 G, 3G, Commonwealth games, Bofors, Fodder scam, IPL, Citibank the list can go on and on. Our memories are so short, that by the time we are fatigued with one scam there appears another scam. The big money, the lifestyles of cheaters, their overstated personas, and the glamour that comes with money feature more prominently in the young students of Business Management if the ethical frameworks in these and many other case studies are not tackled in the classrooms.

Conclusion

Dear friends Socrates, Plato and Aristotle sadly have no place in the twenty first century business environment. A yawning gap exists between philosophical knowledge and business practices. Each generation has learnt ethics and morality with a divergence. Morality is just a dictionary word. Yet, like it or not, there has and will continue to be a surge of interest in ethics.

Logo is a graphical mark used to identify a company, an organization, product or brand. Logos are displayed alongside of a company’s name in order to generate awareness of the company’s association with a particular product or service. It is presented with graphical lettering, or an abstract shape of design.

The current era of logo design dates back in the 1870s; with the first abstract logo of Bass Brewery – the biggest beer company then.  Its logo red triangle began the branding campaign in history.  Its brand name and the iconic “red triangle” logo were registered as a trademark under the British Trade Mark Registration Act 1875 on 1 January 1876, just when the act was freshly implemented. After successfully becoming the first registered trademark in England, Bass Ale was filed as trademark no.1. It seemed practical for Bass Ale to use a shape as basic as a lozenge triangle; the triangle symbolizes rising energy, prosperity and the wealth of life. The use of red color, on the other hand, also signifies energy, as well as passion, vitality and enthusiasm for life. The brand name is handwritten to underline the elegant and authentic expression.

Today there are countless corporations, products, brands, services, agencies and other entities using an ideogram (sign, icon) or an emblem (symbol) or a combination of sign and emblem as a logo. But, out of countless logos only few are recognized without name. An effective logo may consist of both an ideogram and the company name (logotype) to emphasize the name over the graphic, and employ a unique design via the use of letters, colors, and additional graphic elements.

A good logo is instantly recognized; it should be inimitable, and exclusive to be remembered by people. Usually people recall a name, a design, a shape if they see it twice, whereas their eyes could pass right over written matter. So people don’t register written statements compared to a shape or design. The more often a potential customer sees and associates a reference to a company the more familiar he/she will begin to feel to the company. And their association with the logo makes their buying process easier.

Logos are an example of intangible assets because they hold value, but not in a physical form. They have become an essential part of a company’s identity, and are used heavily in the marketing of products and services. A well-recognized logo can increase a company’s goodwill, and is trademarked for intellectual property protection.

The three ellipses seen in the logo for Toyota represent three hearts: the heart of the customer, the heart of the product, and the heart of progress in the field of technology.

So why should organizations invest in a logo? Maybe the organization is considering branding or re-branding. Perhaps it has grown very big and needs fighting out competition or it plans to diversify business, whatever the reason, designing a evocative logo is the starting point of the exercise. The logo intensifies the branding efforts. Building a solid, well-designed logo is pivotal to the success of a business, its life and its marketing and sales activity.

Not only does a logo set apart a business from others, it appears on its stationary, website, advertisements, business cards of its executives, packaging, hoardings, name board – it becomes an inevitable part of the corporate communication.  The company’s logo design influences the design of its entire existence and business process. It represents the philosophy of the company therefore designing a ‘brandable’ logo is a must.

See how the letter “M” for McDonald’s stands out. There really isn’t much meaning attached to this logo. In the 60′s, McDonald’s wanted to change the logo but their design consultant and psychologist Louis Cheskin insisted that they continue with the golden arches made in “M” Louis told them that the customers will unconsciously recognize the logo as “symbolism of a pair of nourishing breasts.” Whether this is true or not, their logo is one of the most recognizable in the world.

Historically, pictures were used to convey messages to individuals who were unable to read. A picture of a loaf of bread would be used on a signage to denote a baker. Even if the word “bread” was not displayed, consumers knew the type of product available at that store.

A powerful logo is one of the most valuable assets a company can utilize to broaden its base and maximize its recognition. It is a vital and extremely rare component in the success of a corporation. The practice of using symbols to claim ownership is not a modern invention. Logos existed in the world for hundreds and thousands of years to facilitate identification. Romans used to stamp their bricks with the manufacturer’s emblem, place of origin, as well as their intended destination. As time progressed the logos became more refined and stylized, offering them a touch of sophistication and distinctiveness. Today’s world is surrounded with an abundance of diverse icons and monograms, as well as countless forms and styles of logos and trademarks that consist of numerous shapes, symbols and color combinations.

BMW has a history in aviation and its logo stays true to its roots. The blue and white represent a propeller in motion with the sky peeking through. In fact, BMW had a role in World War II as a creator of aircraft engines for the German military.

The Apple logo represents the forbidden fruit from the “Tree of Knowledge” in the Biblical creation story of Adam and Eve.

There’s no rule against giving a facelift to a logo. Every big brand name you can think of, whether it’s Apple, FedEx, Pepsi, or KFC to name a few, has had a major logo redesign at some point during its history. There are many cases in which a redesign is necessary, which cannot be ruled out. Pepsi’s logo was redesigned at $1,000,000 by the Arnell Group in 2008. In early October 2008, Pepsi launched an entirely new logo, but it did not come into effect until early 2009, when the last logo ended. The Pepsi Globe is now two dimensional again and the swirl design has been changed to look like a smile, of which changes size according to the type of Pepsi. It also added white outlines.

Australia and New Zealand Banking Group’s logo was redesigned in 2009 for $15,000,000. Though the earlier logo was not a brilliant one, it was simple and meaningful. There was nothing strange or anything futile about the old logo.  People had accepted the logo and it went well with them for doing business with ANZ. The new logo does not connect with the mindset of people. The new ‘ANZ’ letters lost the dynamic incline of the old logo. The four horizontal lines don’t make any sense. It is not implicit why ANZ needed to spent $15 million to change its good logo to a bad one.

The importance logo cannot be underestimated in the branding strategy.  Therefore choosing the right logo is very important for the company. The process takes a lot of time, vision, capacity, strategy and most importantly lot of money. They have become progressively crucial in the corporate world as companies make strenuous efforts to distinguish themselves from one another in the worldwide arena. They have to be simple, readable, visually distinctive, cohesive, relevant and consistent.