ETHICS Notes

ATEXT ON
INDIAN ETHOS AND BUSINESS

ETHICS
RIYAS.K MCom, Mphil, BEd, MBA
MODULE 1
ETHICS – INDIAN ETHOS IN MANAGEMENT

1.1 INTRODUCTION – MEANING AND DEFINITION
Ethics in Latin language is called ‘ethicus’ and Greek it is called ‘ethicos’
Intact, this word, has originated from ‘ethos’ meaning ‘character’ or ‘manner’
The word “ethics” is derived from the Greek ethos, meaning “customary” or
“conventional.”
• Dictionary meaning “system of morals, rules and conduct”
Ethics is defined as the ability to distinguish between right and wrong and act accordingly.
The study of standards of conduct and moral judgment, also, the standard of right
conduct.
• Ethics are the rule we play by.
• Ethics are the standard of behavior generally accepted by the society.
• Ethics are the standard of moral conduct.
Ethics is a body of philosophy or standard of human conduct that govern the behavior of
individual in a group.
• Ethics measure morality or the moral standard of society.
• It include morality, honestly, entricity responsibility
• Ethics attempts to distinguish between right from wrong, good from bad
• An overall study of human behavior
• Suggest moral behavior – prescribe Do’s and Don’ts
• Ethics is a discipline that examines one’s morality or the moral standard of the society.
• Ethics means excepted standard in terms of our personal and social welfare.
An ethic attempt to distinguish between rights from wrong, good from bad and decides a
desirable conduct from a particular set of social circumstance.
The study of standards of conduct and moral judgment; also, the standards of right
conduct
Ethics – The inner-guiding moral principles, values, and beliefs that people use to analyze
or interpret a situation and then decide what is the “right” or appropriate way to behave
Ethics is an individual's personal beliefs about whether a decision, behavior, or action is

right or wrong.
ETHICS – INDIAN ETHOS – RIYAS.K Page 2

Peer
1.2 DETERMINANTS OF INDIVIDUAL ETHICS
Family Situational Values and Experienc influence
influence factor moral e
Individual ethics
1.3 OBJECTIVE OF ETHICS

• To define the greatest good of man and establish a standard for the same
• Set moral standards of behavior
• An overall study of human behavior
• Apply judgment upon human behavior
• Suggest moral behavior – Prescribe Do’s and Don'ts
• One’s opinion or attitude about human conduct
1.4 VIEW OF ETHICS

 Utilitarian – view of ethics
 Right view on ethics
 Theory of justice- via- ethics
 Interrogative social contrast theory
1.4(1) UTILITIATARIAN
 Under this view ethical decision are made solely on the basis of outcomes or
consciousness.
 It considers how to provide greatest goods for the greatest no: of utilitarian.
 It encourages efficiency and productivity and inconsistence with the goal of profit
maximisations.
1.4(2) RIGHT VIEW ON ETHICS

Responsibility and protecting individual privileges such as:
 Right to privacy

 Freedom of consciences
 Free speech
 Life and safety.
1.4(3) THEORY OF JUSTICE

Managers are impose and enforce rule fairly and impartially and do so by following all
legal rules and regulation.
1.4(4) INTEROGATIVE SOCIAL CONTEST

Ethical decision should be based on empirical normative function .
Manager need to look at existing ethical norms in industry and companies in order to
determine what constitute right and wrong decision and action
1.5 VALUE
Value is derived from the French word ‘valoir’ which means worth, merit, usefulness or
• The value is a belief on which a man acts by preference.
• Belief about what is right and wrong and what is importance in life.
Values are the rules by which we make decision about right and wrong should and
shouldn’t good and bad they also tell us which are more or less important, which is useful when
we have to tradeoff meeting ones value over another
1.5(1) DEFINITION
According to the ancient India’s psycho philosophical wisdom literature “values are states
of feelings or emotions that under pin the conduct of choice of decision and determined the
manner of using the intellect or reason for justifying and implementing that choice or decisions”
• Values also termed as ‘GUNAS’
• Character is the foundation of values
Character – values – attitudes- behavior.
Values can be defined as those things that are important to or valued by someone. That
someone can be an individual or, collectively, an organization. One place where values are
important is in relation to vision. One of the imperatives for organizational vision is that it must
be based on and consistent with the organization's core values
1.5(2) HUMAN VALUE

• Truthfulness
• Integrity
• Gratitude
• Humbleness
• Forgiveness

• Patients
• Transparence
• Charitableness
• Simplicity
1.5(3) TYPES OF VALUES

• Aesthetic value
• Cultural value
• Economic value
• Ethical value
• Moral value
• Physical value
• Religious value
• Social value
• Spiritual value
• Scientific value
1.5(4) NEED OF VALUES

Right and wrong defined by different people may manifest diverse thinking, motivated by
each individual’s personal values. Within a work environment, the cultural values that drive
business decisions are critical to the organization’s credibility with its employees, customers, and
shareholders.
Today, in business, value is about prioritizing individual and operational values for the
workplace and establishing codes of value and codes of conduct that ensures that employee
behaviors and the internal systems are aligned with those values which in turn affects the
performance of the organization
1.5(5) IMPORTANCE OF VALUES

Key leadership with appropriate values establishes the moral compass that guides the
organization through the complexities of what is right and wrong and how management and staff
are therefore expected to behave. Critical then, becomes the ability to manage for ethical
outcomes—this is values-based management.
Values provide the basis for judgment about what is important for the organization to
succeed in its core business.
Values are traits or qualities that are considered worthwhile; they represent an individual’s
highest priorities and deeply held driving forces.
Values - Describe what managers try to achieve through work and how they think they
should behave

• Values are:
o The bedrocks of culture.
o Have emotional significance to individuals and the society
o These are abstract ideas about what a group believes to be good, right, and
desirable.
1.6 NORMS
Social rules and guidelines that prescribe appropriate behavior in particular situations.
They stem from
Folkways: Routine conventions of everyday life.
Mores (Essential accepted traditional customs that often become a part of the legal code):
They are central to functioning of a society and its social life.
1.7 CULTURE
Culture is the man made part of the environment which provides a comprehensive frame
work for understanding the way of life of a persons. His beliefs, values, norms behavior etc.
Culture comprises of shared philosophies ideologies, values belief attitudes, and

assumption norms etc. which bind a group or community.
A system of norms and values shared among a group of people and, when taken together,
constitute a design for living.

1.7 (1) DETERMINANTS OF CULTURE
Economic
Philosoph
y
Political
Philosoph
Education
y
Culture:
Norms and
Value
Systems
Social
Language Structure
Religion
1.7 (2) TYPES OF CULTURE

• Academy culture
• Base ball team culture
• Club culture
• Fortress culture
1.7 (3) ORGANIZATION CULTURE

The collection of values, beliefs, behaviors, customs, and attitudes that characterize a
community of people.
1.7 (3)(i) DEFINITION

Organizational culture as the set of shared beliefs, truths assumptions and values that
operated in an organisation.
Organizational culture has been described “as how people behave when no one is looking”
The characteristics set of values and way of behaving that employee in an organisations
share.
• Pattern of behavior – ceremonial event written and spoken comments and actual
behavior of an organisation members that create the organisational culture.

• Values and beliefs – guiding standard of an organisation that a affirm what should be
practiced as distinct from what is practices
1.7 (3)(ii) THE IMPORTANCE OF ORGANIZATION CULTURE

• Culture determines the overall “feel” of the organization, although it may vary across
different segments of the organization.
• Culture is a powerful force that can shape the firm’s overall effectiveness and long-term
success.
1.7 (3)(iii)DETERMINANTS OF ORGANIZATION CULTURE

• Organization’s founder (personal values and beliefs).
• Symbols, stories, heroes, slogans, and ceremonies that embody and personify the spirit of
the organization.
• Corporate success that strengthens the culture.
• Shared experiences that bond organizational members together.
1.7 (3)(iv)MANAGING ORGANIZATION CULTURE

• Understand the current culture to understand whether to maintain or change it.
• Articulate the culture through slogans, ceremonies, and shared experiences.
• Reward and promote people whose behaviors are consistent with desired cultural
values.
1.7 (3)(v)CHANGING ORGANIZATION CULTURE

• Develop a clear idea of what kind of culture you want to create.
• Bring in outsiders to important managerial positions.
• Adopt new slogans, stories, ceremonies, and purposely break with tradition.
1.7 (3)(vi)COMPONENTS OF ORGANIZATIONAL CULTURE

• Signs and Symbols
o Practices and actions that create and sustain a company’s culture.
• Stories
o The repeated tales and anecdotes that contribute to a company’s culture by

illustrating and reinforcing important company values.
• Rites and Ceremonies
o Traditional culture-building events or activities that symbolize the firm’s values and
help convert employees to these values.
1.8 ETHICS AND MORALITY

Ethics is about field or domain of enquiry while morality is the object of enquiry. Ethics or
behavior accepted with in a group is recorded as credos– espoused value of group/Organisation.

When espoused values become practiced values, then the group is said to be ethical
Organisation.
1.9 ETHICS AND LAW

Respect for law is an ethical value. Law is the code of conduct which the authority in
power prescribes for society. It is considered with the minimum regulations necessary for public
order. So Government gives shapes to only those minimum social obligations, customs or
traditions which are essential for peace and happiness.
The most important divergence between ethics and law is that Ethics concentrate on Do’s and
Law o the Don’ts.
1.9(1) ETHICS IS MUCH WIDER THAN LAW

Required Ethical Behavior may not be covered by Law e.g.
• Look after the elders
• Respect the elders
• Be considerable to your workers
• Be Punctual
• Teach well to students
• Students must focus on the subject taught in class
• Students should not talk while the teacher is teaching
1.10 ETHICAL THEORIES
Ethical theories can be classified into three subject areas such as-
♦ Meta ethics
♦ Normative ethics
♦ Applied ethics.
1.10(1) META ETHICS

Deals with entire gamut of ethical issues:- moral values exists independent of humans –
psychological issues that deals with psychological basis of the moral actions and linguistic issues
dealing with moral terms-reflect on reactions on photo at UK deities and others. Belief system,
tradition- Kentucky launching chicken product at Bangalore.
1.10(2) APPLIED ETHICS

Deals with ethics dealing with Euthanasia, TERRI SCHIAVO FLORIDA women!!- female
feticide and infanticide, displacement of tribal people due to hydel power projects, cloning,
testing drugs on animals
1.10(3) NORMATIVE THEORIES-BUSINESS ETHICS.

That which guides and controls human conduct. Sets out certain standards that determine
what is right and what is wrong.
1.10(3(i) GOLDEN PRINCIPLE BEHIND THIS

“We should treat others the same way that we want others to treat us”
There are three leading theories of Normative ethics-
1. Stock Holders Theory
2. Stake Holders Theory
3. Social Contract Theory
1.11TOTAL QUALITY MANAGEMENT

TQM is a continuous process of improvement, for individual, group of workers and all the
whole organization towards quality.
TQM is a participative process because every employee in the organization is involved and
expected to take responsibility for improving the quality every movement.
We can only improve that “which you can “measure “Buddha” has said “be become what
we think” which implies what it is thought about a business and we can improve.
1.11(1) FOUR GUIDING PRINCIPLE INTO TQM

• Do it right the first time
• Be customer oriented
• Team empowerment
• Continuous improvement
1.11(1)(i) DO IT RIGHT, FIRST TIME

 This can be fulfill only when, when the right information is provided to the all levels of the
organization.
 So that decision can be TQM quality oriented
1.11(1)(ii) CUSTOMER ORIENTED

 Business considered customer as their king.
 Thus goods and services rendered to them must meet their satisfactory and demanding
levels.
 Customer now days focus on the quality of the product even if they have to pay more.
1.12(1)(iii) TEAM EMPOWERMENT

 The more people feel involved themselves in group or in a team, the greater will be their
commitment to the organization, its goodwill , customer satisfaction and quality

1.12(1)(iv)CONTINIOUS IMPROVEMENT
 It recognizes that how much may have improve, since there are no limitation in the
expectation of customer of quality.
 Therefore continuous improvement must be establish with the ever-changing affairs in the
business.
1.12(2) INDIAN INSIGHT INTO TQM

 Nothing is perfect, there is always a better way of doing things.
 Hence TQM is ongoing process.
 The Indian insight into TQM indicates that “mind” is the master of total excellence of
performance in any field of activity.
 Mind is a energy source of all the people in the organization to realize mission.
 Manpower governs the quality of collective minds.
Total quality of mind determines the quality of thought, perception, ideology, attitudes
and action that control total quality of product and services provided by any organization.
1.12(3) ACCORDING TO INDIAN INSIGHT

A Human Have Certain Qualities
• SATVA - Reflect Knowledge, Wisdom And Intelligence
• RAJSIC - Reflect Activities, Passion, Feeling, Emotion, Willpower, Fame, Quest
• TAMSIC - Reflect Ignorance, Laziness, Poor, Indescrimation, Illogical
Dominance of SATVA and RAJSIC qualities gives rise to positive re-enforcement which
leads to excellence and self improvement- Whereas
Dominance of RAJSIC and TAMSIC create negative skills
1.12(3) FACTORS OF QUALITY

If we go into details of TQM we will find that it is not only a simple concept but there are six
factors of quality in a person
• The person himself
• His peer (colleagues)
• His leader
• Top management
• His family
• Teacher, guide
1.12(4) PRINCIPLES OF TQM IN INDIAN MANAGEMENT

 TQM requires total quality mind of a quality person in core entire system

 Divine principle of “work is work ship” least to perfection and completion.
 Knowledge rest is Divine power.
 The best art to do a work with perfection is to come first selflessly toward works, only then
it turn to be worksheet.
 Then the total quality of work will be in supreme position and in a winning situation, where
success is assured.
1.12(5) OBJECTIVE OF TQM

 It will enrich the total quality of work, product and services, person also
 The employee will become self dependent and self manages
 The employee as a person will become quality conscious
 The employees will become self discipline
Another hidden objective is that if we work with love and devotion, the glow of blissfulness
will be provided by god
1.13 INDIAN ETHOS FOR MANAGEMENT

• Indian religion has always been associated with philosophy
• The Vedas (about 4000 years old) talked about 4 basic goals of existence:
o Prosperity
o Satisfaction of desires
o Moral duty
o Salvation
• Upanishads distinguished between law and ethics – ethics come from inner desire
• Charavac philosophy was basically materialistic and was a voice of dissent
o In a way, Charvak was reactionary; he was opposing the Brahmanical dogmas in a

sharp way
o Jain scriptures deal with “akriyavad” at length
• Jain philosophy was based on the quintessential principle of non-violence
• Buddha dwelt on compassion and brotherhood
The Indian ethos is the out come of Hindu way of life. Indian life has four fundamental goal
• Dharma
• Artha
• Kama

• moksha
To fulfill these goals human life is divided into four stages normally
• Brahmacharya
• Grasthasrama
• Vanaprastha
• Sanyasama
Artha and kama are goal are predominated during Grahasthasrama, moksha dominates in
sayasama.
Indian ethos for management means application of principles of management revealed in

our ancient wisdom described in the Upanishads and Begawad Gita,
• These are based on Vedas, Upanishads and the Bhagwad Gita.
• These do not depict any religion.
• These have universal appeal, because they deal with universal truths of Life.
• These believe in UNITY IN DIVERSITY because of belief in “Vasudev Kutambak”.
• These believe in Patience, Tolerance, Respect for others, Forbearance, Honesty, Integrity,
Team Work, Sacrifice and Selfless Service.
 Believe in “Ayam Atma Brahma” – This Self is Brahma. We are all part of SUPREME SOUL
also:-
Hamsa Soham, Soham Hamsa
I am He , He is Me
He is Me, I am He
Therefore, each individual has Immense Potential.
1.13(1) BASIC PRINCIPLES

• Aham Brahmasmi
o “Ayam Atma Brahma” – This self is Brahma – “we are all part of supreme soul”
• Holistic approach in management
o Vyasthi (individual level)
o Smasthi ( part of universe level)
• Use all resources
o Sthoola
o Sukshma

• Work must be treated as worship
o Karmayaga
• Yoga Karmasu Koushalam
o Excellence in work
• Co –operation
1.13(2) PURUSHARTHA
The term purushartha literally signifies “what is sought by man”
The word purushartha consists of two words viz ‘Purusha’ meaning person and ‘Artha’
meaning aim or end. Therefore purrushartha means aim or goal of human life.
It is the self-effort to modify the past and to create the future may be for better or for
worst.
• Another Philosophy is Prarabdha – destiny – luck
• Through Purushartha – Prarabdha can be changed.
• It can also be called “Missions of Life”
According to Indian Culture, there are four fold Purushartha or Missions of Life.
• DHARMA
• ARTHA
• KAAM
• MOKSHA
1.13(2)(i) DHARMA
It is the righteous conduct which one should practice. It is the basic value system which must
be followed by each generation. It is the true north timeless principles and our actions are
judged in the context of DHARMA, including Satya, Ahimsa and Tapasya.
1.13(2)(ii) ARTHA
It is acquisition of wealth. It incorporates means to achieve wealth according to DHARMA.
Artha or acquisition of material wealth, power, money and knowledge are very important factors
to motivate and to excel.
Artha means attainment of riches and worldly prosperity advantages, profit and wealth.
1.13(2)(iii) KAAM

“Kama is the enjoyment of the appropriate object by the five sense of hearing, feeling,
seeing, tasting and smelling assisted by the mind together with the soul”
Desires and Expectations. It includes enjoyment of sensual pleasure. It also implies zeal and
passion in one’s activity, the fun and joy one finds in one’s work, and the delight in any creative
endeavors.
1.13(2)(iv) MOKSHA
It implies a complete freedom from all the limited and uncertain conditions that effect our
bodies and minds,
It is a state of supreme bliss where the individual soul is free from all bondages caused by
Maya. In this state, one is in touch with one’s True Self. To attain Moksha, one need not leave the
material world. This is ultimate stage of spiritual life.
1.14 MODEL OF MANAGEMENT IN SOCIO-POLITICAL ENVIRONMENT

Indian model of management may be best defined on the basis of important parameter of
management.
1.14 (1) PARAMETER OF MANAGEMENT ARE AS FOLLOWS

 Delegation of authority
 Trade union
 Transfer policy
 Performance appraisal
 Customer’s grievances
 Planning
 Recruitment and selection
 Human resources and development
 Training and development
 Employer’s employee relationship
1.14 (1)(i) DELEGATION OF AUTHORITY

 Although delegation of authority is a significance function of mgmt but it is nearly an
informal activities.
 Excessive centralization is present in it. Subordinate are always or in most of the case
unwilling to accept responsibility due to such conditions decision are always centralized.
1.14 (1)(ii) TRADE UNION

 In Indian corporate sector trade union are always dealt as an enemy of employers.
 The trade union on their parts is always pressuring the employees for the benefits of their
member. Trade unions are now just as formality and to enjoy political influences.

1.14 (1) (iii) TRANSFER POLICY
 In Indian public sector, there are rare transfer policies
 Such policies exist only on papers, transfer are basically done on the basis of punishment,
favoritism and recommendation .
 In private sector some transfer policy still exist but that’s to for top level employees.
1.14 (1) (iv) PERFORMANCE APPRAISAL

 It means evaluation of performance of an employee.
 In Indian mgmt model there is no concrete appraisal system.
 Appraisal is not done on the basis of actual performance.
1.14 (1) (v) CUSTOMER GRIEVENCE

 In practical situation such system seldom (rarely) used and grievance are dealt mostly on
the basis of mutual settlement.
 But now a day, due to excessive competitive atmosphere companies have started giving
first preference to customer grievance.
1.14 (1) (vi) PLANNING

 India has a well established planning commission under prime minister which formulate
five year plan.
 In private corporate sector, an especially a medium and small scale farms only short
ranged planning is in existence. India has hardly been able to achieve any five year plan
objective in a successful manner due to lack of proper implementation of programs.
 Profit maximization is the sole consideration of business organization neglecting other

aspect of planning.
1) (vii) RECRUITMENT AND SELECTION

In public sector most of the recruitment and selection is done on the basis of
recommendation reference of present employees are giving the priority providing less
importance to the performance of the desired candidates.
1.14 (1) (viii) HUMAN RESOURCES AND DEVELOPMENT

 No proper policy of employees’ motivation and leadership exist in reality.
 Decision on promotion and tenure of service are based on recommendation and reference
rather than performance
 An ambiguous human resources policy is a main cause of employed dissatisfaction
1.14 (1) (ix) TRAINNING AND DEVELOPMENT

 No proper policy to determine the need of training and development.
 Expenses allocation for training is very less.

 No proper atmosphere to learn and understood the importance of the concept of training
on development.
1.14 (1)(x) EMPLOYER EMPLOYEE RELATIONSHIP

 Relation ship between employee and employer are not very cordial (understanding) and
comfortable.
 Employer are at lower level are given very lower autonomy (power authority).
 They hardly participate in any mgmt function; employees are treated just as commodity or
cost centers.
1.15 WORK ETHOS

 work ethos can be defined as the principles, values, norms, required to be followed when
an individual is at work
1.15(1) DIFFERENT LEVEL OF WORK ETHOS

 Discipline
 Commitment and accountability
 Loyalty
 Responsibility
 Work culture
1.15(1)(i) DISCIPLINE
 It is mainly confined to coming at work on time, behaving with respect and dignity to
subordinates, colleague and superiors, staffing properly at work during working hrs, not
wasting work time.
1.15(1)(ii) COMMITMENT AND ACCOUNTABLITY

 Work ethics is also about the commitment and accountability.
 To know does the worker feel responsible for the tasks assigned to him.
 The one who make all possible efforts to accomplishment the work in the time and also in
a satisfying manner.
1.15(1)(iii) LOYALITY
 Work ethics is also dealt with loyalty towards the organization, by not talking negatively
about the organization, by protecting the interest of the organization.
1.15(1)(iv) RESPONSILBLITY
 People in the organization have different attitude toward at their work. This can be notices
through job description, performance, evaluation career development, formal training etc.

1.15(1)(v) WORK CULTURE
 India has considered has strong work culture which includes punctuality, proper dress
code, proper behavior and respect towards your superior, peers and subordinates, strictly
following the rules and regulation of the organization.
 A good work culture can also be introduced through effective induction program.
1.15(1) WHAT INFLUENCES ETHICAL BEHAVIOR AT WORK
Ethical
Work
Behaviors
Organizatio
Individual Top
Ethics
nal Policies and
Management
Factors Factors
Codes
1.16 INDIAN HERITAGE PRODUCTION AND CONSUMPTION

 To Indian heritage to men’s attitude toward his social existence shifted toward duties
obligation and sacrifice.
 He believed in “simple living and high thinking.”
 Indian heritage emphasized that the assent of civilization lies not in multiplication of quant
but in the purification of human character.
1.16(1) INDIAN HERITAGE FOR PRODUCTION

 From the point of Buddhist, economics production from local resources for local needs is
the most rational ways of economic life.
 Dependence of import and consequent needs to produce for export is highly uneconomic.
 Now days a bulk of non renewable resources like coal and oil are being wastefully used in
production of good and services that are not really useful to man.
 In the Buddhist economic planning non renewable and scares resources would be
conserved because the priorities in production would be determined according to the man
basic need of food, clothing and housing. Rather than producing arms, drugs, alcohol and
harmful chemicals.
 Production for basic requirement should be prime outlook
1.16(2) INDIAN HERITAGES FOR CONSUMPTION
 According to modern economies a major of standard of living is judged by the amount of

annual consumption.

 Whereas a Buddhist economist would consider this approach totally irrational; since
consumption is mainly the means to human well being.
 Rather the aim should be to obtain the maximum well being with minimum of
consumption.
1.16(3) INDIAN HERITAGE FOR OTHER ECONOMIC ACTIVITIES
1.16(3) (i) INCREASE IN PER CAPITA INCOME AND HUMAN WELFARE

 A performance of the plant is judged by the criteria how quickly a country is able to
increase its per capita income.
 The Buddhist economic system or Indian heritage system not pay much attention of per
capita income because it’s only a statics figure. In Indian heritage only good value can
increase mans material and spiritual well being.
It would exclude harmful drugs, alcoholically liquors, narcotics, weapons, slaughter of

animals, chemical that are dangerous to man and which would ultimately result in moral and
material degradation.
1.16(3) (ii) USE OF RESOURCES

 Another of model development planning is to full use of the productive resources of a
company. Buddhism advocates economic use of resources in the interest of man.
 Avoiding indiscriminate and irresponsible use of resources. An Indian would use resources
rationally while promoting their conservation. by replicating forest resources man destroy
at one stroke, what nature has taken thousand of years to build.
1.16(3) (iii) EMPLOYMENT

 The provision of full employment is an important objective in all development plants but
Buddhist economist pays much greater attention to this because achievement of other
objective depends upon it.
 Buddha said poverty should be eliminated and a country should prosper by providing
employment to every one since employment is the source of income for every individual
for their survival Buddhist belief one way to providing more employment is to use more
man then machines in production technology should not be allowed to dominate man,
1.16(3) (iv) PUBLIC AND PRIVATE SAVING

 Buddha has advised laymen to save one fourth of what they earn.
 If a nation could limit consumption to three fourth of the national product it would be
saving one fourth which could be invested for developing the economy.
 This implies that at least one fourth of the total production of the community would be set
aside for the future.
1.17 NISHKAMA KARMA

Only those prayers which have their origins in the spirit of Nishkama Karma, infinite and
pure love and an unsullied heart reach the Lord directly. It is not possible for prayers of any other
kind to reach Him directly. Therefore, it is only through these three media, that is, Nishkama

Karma, boundless love, and an unsullied heart, that we can hope to secure direct contact with
the Lord and obtain His Divine sanction to our request.
The Bhagavad-Gita has proclaimed the path of Nishkama Karma as the royal road to
perfection. It exhorts man not to crave for the fruits of action and merely perform one’s duties in
a detached manner, leaving the results thereof to the Lord. God does not enjoin man to do any
work in particular. He is only the dispenser of the results of the deeds done by humans. He gives
the fruits of actions according to the kind of work performed by man. If, without performing good
deeds, you pray for personal gain, God merely listens to your entreaties, but does not favor you
with His benediction.
1.18 ETHICS AND CORPORATE GOVERNANCE

Deals with determination what is ‘right'," fair, prior and just" in decisions and actions made
that affect stake holders. It focuses on the business relationship with employees, customers,
stockholders, creditors, suppliers and member of the society in which it operates.
♦ Corporate ethics is a matter of leadership.
♦ Adhere to corporate credos-code of conduct.
♦ Development of IQ, EQ and SQ culture.
1.19 ETHICS AND MORALITY

Ethics is about field or domain of enquiry while morality is the object of enquiry. Ethics or
behavior accepted with in a group is recorded as credos– espoused value of group/Organisation.
When espoused value becomes practiced values, then the group is said to be ethical
Organisation.
1.20 ETHICS AND LAW

Respect for law is an ethical value. Law is the code of conduct which the authority in
power prescribes for society. It is considered with the minimum regulations necessary for public
order. So Government gives shapes to only those minimum social obligations, customs or
traditions which are essential for peace and happiness.
The most important divergence between ethics and law is that Ethics concentrate on Do’s and
Law o the Don’ts.
Important Points:
– Something may be legal but not right (ethical)
– Something may be right (ethical) but not legal.
1.20(1) ETHICS IS MUCH WIDER THAN LAW

Required Ethical Behavior may not be covered by Law e.g.
• Look after the elders
• Respect the elders
• Be considerable to your workers
• Be Punctual

• Teach well to students
• Students must focus on the subject taught in class
• Students should not talk while the teacher is teaching
MODULE II
BUSINESS ETHICS
2.1 BUSINESS ETHICS – MEANING
Business ethics refers to those values, standards and principles that operate within
business.
Business ethics is also an academic discipline that studies those standards, values and
principles while seeking to articulate and defend the ones that ought or should operate in
business.
2.2 CONCEPTUAL BACKGROUND

• Many people think that Business and Ethics are two different concepts and are not inter-
related.
• Business is an economic activity based on Input and Output relationship.
• Ethics is moral behavior of an individual and it determines what is right or wrong.
Therefore Business and Ethics have nothing to do with each other. However, this does not
stand to Logic.

Business is a part and parcel of human life and, society and business exist together.
Therefore business has to consider concepts and norms of good and bad developed by the
society.
Norms of conduct which apply to common man has to be applied to the business.
The value of what should be done and what should not be done from the business point of
view
2.3 NEED FOR BUSINESS ETHICS

The need for business ethics Can be highlighted with the help of the following points:-
1. To safeguard the interest of all stakeholders against unfair, unethical ways of dealing and
exploitation.
2. To protect the following rights of consumers:-
a) Right of information
b) Right of Safety
c) Right of Choice
d) Right to be heard
3. To develop or prescribe business code which provides ethical standards of suppliers,

dealers, suppliers, financiers and other related agencies.
4. To enable business to tackle social issues like ecology, environmental protection,

consumerism, people oriented management, human dignity, energy conservation, etc.
5. To enable business to prepare and publish a code of ethics. This will boost up the
confidence of customers, employees, dealers and suppliers in the quality of functions and
dealing of the organization.
2.4 FACTORS AFFECTING BUSINESS ETHICS

a) Personal Code of Behavior of the individual
b) Policies of the company
c) Ethical Standards imposed on the managers by Superiors.
d) Ethical Climate of the Country
2.5 PRINCIPLES OF BUSINESS ETHICS

1. Rule of Publicity:- People should be adequately informed about the nature, purpose and
consequences of business dealings.
2. Rule of Equivalent Price:- People receive the goods and services fully equivalent to the
money paid. People should get the best return of their spending. There should be an
element of mutual benefit – Business gets the price of the Product and consumer get the
satisfaction.
3. The Rule of Conscience in Business:-

a) Rules of Business should be judged by the moral judgment.
b) Decision of businessmen should be governed by the concern for the society, rather
than selfish motives.
4. The Rule of Spirit of Service – Service FIRST and Profit NEXT.
5. Business should be just and human as well as efficient and dynamic.
6. Growth of the size of business must be accompanied by the growth of human values
7. Business must make best and fullest use of its input.
8. Business should promote and support open and healthy competition.
2.6 BENEFITS FROM BUSINESS ETHICS

i. It substantially improved society - Establishment of Unions and other regulatory
bodies has contributed to the development of the Society. Discrimination and exploitation
of employees have been reduced.
ii. High Productivity and Strong Team Work.
iii. Helps in turbulent (violently disturbed) times - Ethical training helps in such times.
iv. It creates Strong Public Image - This leads to strong and continued loyalty of
employees, consumers and General Public.
v. Acts as an insurance
 Future functions
 Competition
2.7 ETHICAL ISSUES FOR BUSINESS

♦ Product safety standards
♦ Advertising contents
♦ Working environment
♦ Unauthorized payments
♦ Employee’s privacy
♦ Environmental issues
2.8 GENESIS OF ETHICS

♦ Ethics is a Greek word, it means Character or manners.
♦ Ethics is subjective while morality is objective.
♦ Ethics is about sense of belongingness to society of business. Formed with a limited vision
for economic generation but should resolve conflict with society by servicing the
community.

2.9 INVENTORY OF ETHICAL ISSUES IN BUSINESS
• Employee-Employer Relations
• Employer-Employee Relations
• Company-Customer Relations
• Company-Shareholder Relations
• Company-Community/Public Interest
2.10 IMPORTANT OF ETHICS IN BUSINESS

• To gain the goodwill of the community.
• To increase the lifetime of an organization.
• Produce safe and effective products.
• Provide excellent service & Maintain customers.
• Develop and maintain strong employee relations

- Suffer less turnover
- Enjoy better employee morale
• Suppliers and other business partners prefer companies that operate in a fair and ethical
manner
2.11 BUSINESS ETHICS IMPORTANT FOR A COMPANY

• Protects and improves sales, reputation and company image.
• Improves faithfulness and engagement of its employees.
• Prevents business loss.
• Empowers communication channels for interest groups.
• Helps to retain license to operate.
• Decreases risk.
2.12 HOLISTIC APPROACH IN DECISION MAKING

Meaning
Holistic Therapies have been around for thousands of years and were commonly used in
ancient Egypt, China, and India for their therapeutic effects. Holistic means Care for the whole
person, mind, body and spirit.
Mind - Our mind is our brain. It is also the part of us that thinks, that is logical, the part
that works things out through thought.
Body - Our body is our physical shell.

Spirit - Spirit is the hardest to define. It is the part that makes us who we are, the part
that expresses our uniqueness and the origination of our feelings.
The holistic approach to health differs from the conventional medical approach in that it
takes into account the whole patient rather than just focusing on the symptom or the part that
has the problem.
Holistic therapists believe that the body has a vital force or life energy. It is this force that
protects the body from disease and allows it to heal. We often refer to it as the "immune
system". When the balance of the immune system is disturbed we the see the various symptoms
of Dis-ease. Holistic therapies aim to help the patient restore the balance, thus allowing the
body to heal itself naturally.
2.13 SIMPLE ETHICAL TEST FOR A BUSINESS DECISION

• Transparency: Do I mind others knowing what I have decided?
• Effect: Who does my decision affect or hurt?
• Fairness: Would my decision be considered fair by those affected?
2.14 A GENERAL FRAMEWORK OF THE ETHICAL DECISION-MAKING PROCESS

CHARACTERISTICS OF THE
DECISION MAKER
ETHICAL
DECISION OUTCOMES
SITUATION
SIGNIFICANT INFLUENCES
2.15 (1) ELEMENTS OF THE ETHICAL SITUATION

• Opportunity
• Ethical decision history
• Moral intensity of the situation
2.15 (2) INDIVIDUAL CHARACTERISTICS OF THE DECISION MAKER THAT

INFLUENCE THE ETHICAL DECISION-MAKING PROCESS
• Achievement motivation
• Knowledge
• Need for affiliation

• Experience
• Ego strength
• Risk taking
• Locus of control
2.15 (3) SIGNIFICANT INFLUENCES ON THE ETHICAL DECISION-MAKING

PROCESS
• The organization
• Technology
• The law
• Work
• Economics
• Professionalism
• *Significant others; customers, peers, immediate supervisor, top managers, family,

friends, other “opinion leaders”
2.15 (3) OUTCOMES THAT RESULT FROM THE ETHICAL DECISION-MAKING

PROCESS
• Performance
• Feedback
• Rewards
• Promotions
• Satisfaction
• Learning
2.16 SOCIAL RESPONSIBILITY AND ORGANIZATIONS
2.16(1) SOCIAL RESPONSIBILITY

The set of obligations (to behave responsibly) that an organization has to protect and
enhance the social context in which it functions.
2.16(2) AREAS OF SOCIAL RESPONSIBILITY

– Stakeholders: customers, employees, and investors.
– The natural environment: environmentally sensitive products, recycling, and public

safety.
– The general social welfare: charitable contributions, and support for social issues
such as child labor and human rights.

2.16(3) MANAGING SOCIAL RESPONSIBILITY
2.16(3)(i)FORMAL ORGANIZATIONAL DIMENSIONS
• Legal Compliance
– Extent to which the organization conforms to local, state, federal, and international
laws.
• Ethical Compliance
– Extent to which members of the organization follow basic ethical/legal standards of

behavior.
• Philanthropic Giving
– Awarding of funds or gifts to charities or other social programs.
2.16(3)(ii) INFORMAL ORGANIZATIONAL DIMENSIONS

• Organizational Leadership and Culture
– Leadership practices and the culture of the organization can help define the social
responsibility stance an organization and its members will adopt.
2.17 ETHICAL RELATIVISM

Ethical relativism is the position that there are no moral absolutes, no moral right and
wrongs. Instead, right and wrong are based on social norms. Some have heard of the term
situational ethics which is a category of ethical relativism. At any rate, ethical relativism would
mean that our morals have evolved, that they have changed over time, and that they are not
absolute.
Ethical relativism is the theory that holds that morality is relative to the norms of one's
culture. That is, whether an action is right or wrong depends on the moral norms of the society in
which it is practiced. The same action may be morally right in one society but be morally wrong
in another. For the ethical relativist, there are no universal moral standards -- standards that can
be universally applied to all peoples at all times. The only moral standards against which a
society's practices can be judged are its own. If ethical relativism is correct, there can be no

common framework for resolving moral disputes or for reaching agreement on ethical matters
among members of different societies.
Advantage of ethical relativism is that it allows for a wide variety of cultures and practices.
It also allows people to adapt ethically as the culture, knowledge, and technology change in
society. This is good and a valid form of relativism.
The disadvantage of ethical relativism is that truth, right and wrong, and justice is all
relative. Just because the group of people thinks that something is right does not make so.
Slavery is a good example of this. Two hundred years ago in America, slavery was the norm and
morally acceptable. Now it is not.
Within ethical relativism, right and wrong are not absolute and must be determined in
society by a combination of observation, logic, social preferences and patterns, experience,
emotions, and "rules" that seem to bring the most benefit. Of course, it goes without saying that
a society involved in constant moral conflict would not be able to survive for very long. Morality
is the glue that holds a society together. There must be a consensus of right and wrong for a
society to function well. Ethical relativism undermines that glue.
2.18 WHISTLE BLOWING

A whistleblower is an employee, former employee, or member of an organization,
especially a business or government agency, who reports misconduct to people or entities that
have the power and presumed willingness to take corrective action. Generally the misconduct is
a violation of law, rule, regulation and/or a direct threat to public interest— fraud, health, safety
violations
The organizational response to the disclosure by an employee of illegal or unethical

conduct on the part of others within the organization is indicative of the organization’s stance on
social responsibility.
It is when person takes a concern (such as suspected abuse or fraud) outside of the
organization in which it is occurring
 The person with the concern must be affiliated with the organization
 The misconduct is a violation of law, rule, regulation and/or a direct threat to public
interest.
Whistle blowing is a term used to describe the disclosure of information that one
reasonably believes to be evidence of contravention of any laws or regulation or information that
involves mismanagement, corruption or abuse of authority.
Whistle blowing is…
'raising concerns about misconduct within an organization or within an independent

structure associated with it'
(Nolan Committee on Standards in Public Life)
'bringing an activity to a sharp conclusion as if by the blast of a whistle'
(Oxford English Dictionary)
'giving information (usually to the authorities) about illegal and underhand

practices‘

(Chambers Dictionary)
2.18(1) CHARACTERISTICS OF A WHISTLEBLOWER

• Altruistically Motivated
• Utilitarian
• Uninterested in Altering Their Behavior
• Allows Own Attitudes and Beliefs to Guide Them
• Often are Well Educated and Holds Professional Position
2.18(2) TYPES OF WHISTLE BLOWERS

• Internal whistle -blowers report misconduct to another employee or a superior
within their organization
• External whistle-blowers report misconduct to outside persons or entities
2.18(3) REASONS WHY SOMEONE WOULD BLOW THE WHISTLE ARE:

• A violation of a law, rule or regulation
• Gross mismanagement
• A gross waste of funds
• An abuse of authority
• A substantial and specific danger to public health or safety
2.18(4) REACTIONS TO WHISTLE-BLOWERS:

• They are ostracized by their co-workers
• Discriminated against by future potential employers
• Fired from their organizations
2.18(5) WHEN TO BLOW THE WHISTLE

Knowledge of inappropriateness
 Making proprietary software available to public
 Back door/booby-trap in code
 Embezzlement or redirection of funds
Bad claims
 Unrealistic date projection
 Advertising hype
Knowledge of impending doom

2.19 BUSINESS ETHOS PRINCIPLES PRACTICED BY INDIAN COMPANIES
Indian companies are guided by certain rules of conduct in the form of ethical and moral
standards. Some of the business ethos principles, practiced by Indian companies are listed
below:
1. Principle of `sacrifice’
An individual is trained by the principle of `sacrifice’ through the process of `give and
take’ policy. A person, who is willing to sacrifice part of his bread or effort, commands a superior
place in the organization.
2. Principle of `harmony’
An individual is trained in such a way that to avoid conflicts and friction one should be
guided by certain set of moral conducts and principles.
3. Principle of `non-violence’
This principle protects an organization from strikes and lockouts and unnecessary avoidable
conflicts.
4. Principle of `reward’
The one who performs well are encouraged to do so. This implies that the activities of
individuals need to be monitored and encouragement in the form of `rewards’ may cultivate the
spirit of higher productivity among groups.
5 Principle of `justice’
The one who works hard is `rewarded’ and the one who fails to do so is `punished’. This is
essence the principle of Justice.
6. Principle of `taxation’
The one who is taxed more is encouraged to stay fit for a longer period by proper
appreciation and encouragement. This principle applies to individuals who are hardworking and
productive.
7. Principle of Ìntegrity’
An integrated mind is more productive. Groups are encouraged to stay united in order to
reap the benefits of division of labour.
8. Principle of `Polygamy’
This is nothing but the wedding of two different cultures by absorption or takeover.
2.20 ETHICS AND VALUES

Ethics are guided by certain moral principles. An ethical organization has got values and
hence it thrives for a longer period. Such organizations generally have an infinite existence.

2.20(1) SECULAR Vs SPIRITUAL VALUES IN MANGEMENT
1) By secular view on values in management, it refers to the worldly thoughts and philosophies
as reproduced by management Gurus or experts. By spiritual values in management, it refers to
the insights thrown on management by Vedas and Upanishads (or) by spiritual Gurus.
2) Secularists thoughts and views on management finds its way from Maslows need hierarchy
and culminate till the most modern thoughts on management. Spiritual values in management
find its base from the age old Vedas and Upanishads with special reference to Bhagavat Gita.
3) Secularists treat management values, as a science rather than ordaining it as a philosophy.

Spiritualists treat management values as a philosophy rather than by ordaining it as a science.
4) Secularists treat management values as an evolutionary concept. Spiritualists believe sources

like Bhagavat Gita, as a ready reckoner on value based management.
5) Secularists views on values in management are not generally ethical by nature. Spiritualists
find their reference one value based management as ethical or moral, in its true sense.
6) The contribution of Indian thoughts towards secular values on management as reproduced by

management science is comparatively poor, with reference to spiritual values on management.
The contribution of Indian thoughts towards spiritual values on management has magnificent
theories, when compared to secular values on management.
7) The secular views on management as propounded by management experts lack any ideals.
The Indian spiritual values in management have divinity as the ideal to be portrayed.
2.20(2) HOW ARE `VALUES’ FORMED?

Values are formed through the process of efforts. Such efforts never go invain. The
following point throws valuable insights on formation of values, from an organizational
perspective.
1) Efforts and values.
Efforts undertaken in order to enrich productivity among labourers by the process of

experimentation, never go in vain. Efforts are milestones and the frequency with which one
labours the more, the value in an organization grows, in the same proportion.
2) Vision and values
The vision of the entrepreneur generally tallies with the organizational goals. Vision acts
as a foundation stone and pillar for enriching values in each and every organization.
3) Dedication and values
A dedicated mind is God’s workshop. Values are formed through dedicated efforts.
4) Morality and values
The more an organization concentrates on morality or ethics, the more it brings fertility to
the ‘tree’ called values.
5) Culture and values
A well developed culture evolves positive values.

2.20(3) VALUES, ETHICS AND CONDUCT - THE DEFINITIONS
The terms 'values', 'ethics', 'integrity' and 'conduct' are often used interchangeably and
uncertain language is one of the barriers to establishing a widely understood framework for
ethics. For the purposes of this paper, the following definitions will apply:
♦ Ethics - what ought to be; the ideals of what is just, good and proper;
♦ Values - the commonly held beliefs that guide judgment about what is good and proper,
and from which ethical principles derive;
♦ Integrity - normally one of the key ethical values; but also used in the current
departmental Performance Assessment as synonymous with a departmental framework
for ethics.
♦ Codes of conduct - the rules that translate ideals and values into everyday practice; and
♦ Conduct - the actual behavior and actions of public servants.
Normative ethics is largely about values and the accepted norms for 'right' conduct.
Applied ethics is the practical application of values and standards, which sometimes involves
choosing between values in a particular context. This paper is concerned with applied ethics,
where values are translated into conduct.
2.20(4) VALUES FOR INDIAN MANAGERS

Values: these are beliefs that a given behavior or outcome is desirable or good. Values
serve as standards of conduct that guide our behavior
Indian managers are moving away from the concept of values and ethics. The lure for
maximizing profit is deviating them from the value based managerial behavior.
There is a need for our managers today both in private and public sectors to develop a set
of values and believes that will help them attain the ultimate goals of profits and survival and
growth.
♦ They need to develop the following values
♦ Optimum utilization of resources
♦ Attitude towards work- Managers have to
♦ Develop the visionary perspective in their work. They have to develop a sense of larger
vision in their work for the common good.
♦ Work commitment
♦ Vision- Managers have a long term vision.
The visionary managers must be practical, dynamic and capable of translating dreams into
reality
The managers of Indian companies should also develop the following values:-
♦ Move from the state of inertia to the state of righteous action.
♦ Move from the state of faithlessness to the state of faith and self-confidence.
♦ Move from unethical actions to ethical actions.
♦ Move from untruth to truth.
2.20(5) VALUE FOR WESTERN MANAGERS

♦ Western managers are highly professionals with excellent analysis power, high
professional education and specialization.
♦ Western managers follows a proper code of conduct and work in the structured formal
atmosphere with no place of modesty in their behavior.
♦ Professional efficiency and work disciplines are the conditions under which western
managers perform.
♦ They consider rules as sacred in their value system.
♦ Western value system teaches contractual obligations. Managers honor their contracts.
♦ Western managers value principles above its privilege and they consider this as the best
strategy to win.
2.21 THE ESSENCE OF ETHICS

(Article by Williams)
• Codes of ethics do not necessarily lead to ethical behavior.
• The core values we profess are not necessarily those by which we live.
• Build ethics into organization policies and practices.
• Make sure quality and service and integrity permeate the entire organization.
• Develop high expectations of all members of your organization.
“Create an organizational culture that encourages...… open and honest communication

continual learning personal development respect for people”
2,22 STRESS
When a person is not able to cope with the environment and surrounding and cannot
maintain proper balance.
2.22(1) DEFINITION
According To S.P Robbins

“stress is a dynamic condition in which an individual is confronted with an opportunity
constraint or demands related to what he/she desires for which outcome is perceived to be both
uncertain and important”
In other words when demands on a person from the environment are more and his output
is less because of his failure then person is under stress.
2. 22 (2) EFFECT OF STRESS

 Both positive and negative effect are found due to stress.

 There should be little stress in order to complete the work on time effectively and
efficiently
 Total absence of stress may lead to abnormality and loss. thus stress cannot be escaped
but it should be managed.
2. 22 (3) FACTOR CAUSING STRESS

• PERSONAL FACTOR - Includes physical and psychological problems
• SITUATIONAL FACTOR - Including conflict, accident, competition or sudden impact
• ENVIRONMENTAL FACTOR - Including Natural Calamities
2. 22 (4) CAUSES OF STRESS

 High expectation
 Excessive competition
 Instability and insecurity
 Over burden of work
 Unhealthy personal relationship with co-worker or suppliers
 Misbehavior from management or colleagues
 Family problems
 Conflict
 Unhealthy working condition and unhealthy environment
 Excessive working hours
 Desire for status or self-esteem
2. 22 (5) EFFECT OF STRESS
2. 22 (5) (I) PSYCHOLOGICAL REACTION

 Anxiety
 Depression
 Decreasing in satisfaction
 Frustration
 Tension
 Impatience
 Unpleasant feeling and inability to relax etc

2.22 (5)(II)PHYSICAL REACTION
 Under fatigue
 Headache
 Uneasiness
 Hypertension or high blood pressure
 Heart problems
 Asthma
2.22 (5) (III)BEHAVIORAL REACTION

 In cooperative
 Quarrelsome
 Aggressive
 Inefficient
 Low quality of performance
 Lack of concentration and irregular etc
2.22 (6) THE ANSWER TO STRESS CAN BE FOUND IN THE VERY LETTERS OF
WORD “STRESS”
S - Strength
T - Traffic Control
R - Re-Design
E - Erase
S - Sharing
S - Surrender to Lord
2.22 (6) (I) S - STRENGTH

 Physical, emotional, intellectual and spiritual.
 Proper diet, exercise and pranayama techniques help to reduce stress at physically.
 Through satsang and appropriate learning gained therein , the mind can be strengthened.
 Love, compassion and friendship are valuable strength.
 “Rabindranath Tagore , in a poem, prays to lord not to remove all obstacles, but instead,
he ask for strength to bear them
 “Before start of Mahabharata war Arjun was seized with emotional weakness and he
refused to fight the war. lord Krishna gave him that emotional strength.

2.22 (ii) T - TRAFFIC CONTROL
 We need to regulate and control our thought .
 Eat while eating
 Work while working
 Leave the home and office in the office
 Worrying only reduce efficiency and then even simple tasks cannot be completed correctly
and in time
2.22 (6) (iii) R - RE-DESIGN

 We tend to view life and ourselves through our own philosophy
 A re-adjustment or reorientation in this philosophy increase our capacity to bear heavier

loads
2.22 (7) (iv) E - ERASE

 Ego
 Anger
 Fear
 Jealously
 All these are negative emotions that reduce efficiency, leading to mental weakness,
causing stress.
2.22 (6) (v) S – SHARING

 Share your wealth
 Knowledge
 Workload
 Anything else you have
2.22 (6) (iv) S - SURRENDER TO LORD

 Free your mind from the weight of worries and become an instrument
 Adopting an attitude of service
 This attitude will ensure efficiency, success and freedom from stress.
2.22 (7) METHOD TO REDUCE STRESS

 Developing hobbies like games, painting, reading, physical exercise etc
 Involves one self in group activities
 Meditation, spirituality or yoga

 Becoming good and patient listener than a big talk
 Positive thinking/optimistic approach
 By doing job of satisfaction
 Choosing suitable company
 Avoiding overburden of work and unfavorable conditions
 Making cordial relation with surrounding people
 Avoiding lies, gimmicks and uncertainty.
MODULE 3
ETHICS MANAGEMENT
3.1 ETHICS MANAGEMENT
Ethics management is a new science in the field of management. With the rapid evolution
in the field of management, the role of ethics has been recognized, by and large, by the
management experts. By ethics, it refers to the principles of conduct governing an individual or
group in a society is known as ethics management.
3.2 ETHICS IN ORGANIZATIONS

• Managing Ethical Behavior
– Begins with top management which establishes the organization’s culture and
defines what will and will not be acceptable behavior.
– Includes training on how to handle different ethical dilemmas.
– Developing a code of ethics.
• A written statement of the values and ethical standards that guide the
firm’s actions.
3.2(1) CULTURE AND ETHICS

o Do the “right” thing.
o Thomas Donaldson’s Three Principles:
• Respect for core human values (human rights), which determine the absolute moral
threshold for all business activities.
• Respect for local tradition.
• Context matters when deciding what is right and what is wrong.
3.2(2) CULTURE IN AN ORGANIZATION
(a) Culture is àlive’

Culture is an evolutionary concept. It is developed by individuals (managers) in an
organization. A good organization is represented by its culture. Hence, culture is alive.
(b) Culture has `values’
Culture is certain set of `practices’ followed by individuals. Such practices are evolved
through proper experimentations. A live organization has got values. Such values are inseparable
and are a product of labour.
(c) Culture has ìmage’
Since an organization is represented by its practiced culture, it is àlive’ and has `values’.
Image is nothing but an expression of `culture’ as is patronized by the `society’. It has a form
and the same is imprinted in the minds and hearts of individuals.
(d) Culture is `representative’
Culture is represented by each and every organisation in one way or the other and such
practices forms part of organizational culture. It is through steady efforts and practices that such
a culture is represented to the outside world, in the form of organizational culture.
(e) Culture is `fundamental’
Culture is the backbone of each and every organization. It is based on this image that an
organization is built and hence culture acts as a foundation based on which it is formed.
(f) Culture is an ùnique’ property
The essential quality of culture is that it is unique for each and every organization. It is
built based on steady and steadfast efforts as nourished by the individuals through hard core
labour.
(g) Culture and `polygamy’
When an organization absorbs another organization then a `wedding’ of different culture

takes place. This is the principle of polygamy.
3.2(3) ROLE OF ORGANIZATIONAL CULTURE IN ETHICS

By culture, it refers to the ideas, customs, skills, arts etc. of a people or group, which are
transferred, communicated or passed along, as in or to succeeding generations.
The organization that manages such ideas, customs etc. of a particular people or group in
a particular period evolves a distinct culture as drastically different from that of other similar
organizations in the field. This is known as organizational culture. With the involvement of
management in ethical related issues in an undertaking, the roles of organizational culture in
ethics need to be recognized.
The rapid involvement of the organization towards upbringing an emerging culture or

nourishing a new culture enforces rigid constraints on the working style on group or individuals
by emphasising on a set of code of conduct, in terms of morality.
3.2(4) CULTURE AS THE BASIS OF BUSINESS ETHICS

There is common agreement that a country’s culture is directly related to the ethical
behavior of its managers. Two themes:
(1) Public or corporate statements and actions about ethical behavior.
(2) The collection of ethical attitudes and values in the country.

3.3 ETHICS COMMITTEE
Definition
An independent group of medical and non-medical people who verify the integrity of a
study and ensure the safety, integrity, and human rights of the study participants.
A mandated committee of an institution (hence institutional ethics committee, or IEC, or

human research ethics committee, or HREC) that conducts medical research.
A consultative committee in a hospital or other institution whose role is to analyze ethical

dilemmas and to advise and educate health care providers, patients, and families regarding
difficult treatment decisions.
This is an independent group of people that includes doctors, nurses, medical staff,
members of the public and sometimes lawyers. This committee considers and decides if
proposed clinical trials are ethical. The details of the proposed trial are considered and that it is
looking at an important question that cannot be answered through existing information.
A committee appointed to consider ethical issues
3.3(1) MAIN FUNCTIONS OF THE COMMITTEE

The Committee on Ethics was first constituted on March 4, 1997 to oversee the moral and
ethical conduct of Members and to examine the cases referred to it with reference to ethical and
other misconduct of Members. In respect of procedure and other matters, the rules applicable to
Committee on Privileges were to apply to the Committee with such variations and modifications
as the Chairman.
3.4 ETHICS OFFICERS

Ethics officers (sometimes called "compliance" or "business conduct officers") have been
appointed formally by organizations since the mid-1980s. One of the catalysts for the creation of
this new role was a series of fraud, corruption and abuse scandals that afflicted the U.S. defense
industry at that time. This led to the creation of the Defense Industry Initiative (DII), a pan-
industry initiative to promote and ensure ethical business practices.
Another critical factor in the decisions of companies to appoint ethics/compliance officers

was the passing of the Federal Sentencing Guidelines for Organizations in 1991, which set
standards that organizations (large or small, commercial and non-commercial) had to follow to
obtain a reduction in sentence if they should be convicted of a federal offense. Although
intended to assist judges with sentencing, the influence in helping to establish best practices has
been far-reaching.
In the wake of numerous corporate scandals between 2001-04 (affecting large

corporations like Enron, WorldCom and Tyco), even small and medium-sized companies have
begun to appoint ethics officers. They often report to the Chief Executive Officer and are
responsible for assessing the ethical implications of the company's activities, making
recommendations regarding the company's ethical policies, and disseminating information to
employees. They are particularly interested in uncovering or preventing unethical and illegal
actions.
The effectiveness of ethics officers in the marketplace is not clear. If the appointment is
made primarily as a reaction to legislative requirements, one might expect the efficacy to be
minimal, at least, over the short term. In part, this is because ethical business practices result from
a corporate culture that consistently places value on ethical behavior, a culture and climate that

usually emanates from the top of the organization. The mere establishment of a position to
oversee ethics will most likely be insufficient to inculcate ethical behaviour: a more systemic
programme with consistent support from general management will be necessary.
3.5 ETHICS AUDIT

Systematic evaluation of an organization’s ethics program and performance to determine
whether it is effective
– Regular, complete, and documented measurements of compliance with policies and

procedures
– Can be a precursor to establishing an ethics program
Helps to identify the firm’s current ethical standards, policies, and risk areas
3.5(1)ETHICAL AUDIT
Ethical audit is a new technology which is being developed at the European Institute for
Business Ethics (EIBE). There is nothing new about ethical behaviour in business, nor about
programmes designed to improve and perhaps formalise an ethical approach to decision making
within companies. In recent years many companies have appointed a senior manager with
dedicated responsibility for promoting ethical behaviour throughout the company.
Ethical auditing is a process which measures the internal and external consistency of an
organization’s values base. The key points are that it is value-linked, and that it incorporates a
stakeholder approach.
Its objectives are two-fold: It is intended for accountability and transparency towards
stakeholders and it is intended for internal control, to meet the ethical objectives of the
organization.
The value of the ethical audit is that it enables the company to see itself through a variety
of lenses: it captures the company's ethical profile. Companies recognize the importance of their
financial profile for their investors, of their service profile for their customers, and of their profile
as an employer for their current and potential employees. An ethical profile brings together all of
the factors which affect a company's reputation, by examining the way in which it does business.
By taking a picture of the value system at a given point in time, it can:
- Clarify the actual values to which the company operates
- Provide a baseline by which to measure future improvement
- Learn how to meet any societal expectations which are not currently being met
- Give stakeholders the opportunity to clarify their expectations of the company's behaviour
- Identify specific problem areas within the company
- Learn about the issues which motivate employees
- Identify general areas of vulnerability, particularly related to lack of openness
3.5(2) BENEFITS OF AN ETHICS AUDIT

• Identify potential risks and liabilities and improve legal compliance
• Can be key in improving organizational performance

• Improved relationships with stakeholders
– Pressure to account for actions in areas including corporate governance, ethics

programs, customer relationships, employee relations, environmental policies, and
community involvement
3.5(3) THE SOCIAL AUDIT

Process of accessing and reporting a business’s performance in fulfilling the economic,
legal, ethical, and philanthropic responsibilities expected by its stakeholders
– Broader in scope than an ethics audit
– An ethics audit might be a component of a social audit
3.5(4) RISKS IN ETHICS AUDITING

• Ethics audits may uncover ethical problems that a company cannot remedy
• Stakeholders may be dissatisfied with the information
• Conducting the audits is a financial and record keeping burden
• No guarantee that auditing is the solution to ethics concerns
3.5(5) THE AUDITING PROCESS

• Secure top management and board commitment
• Establish an ethics audit committee
• Define the scope of the audit
• Review the organizational mission, goals, and values
• Collect and analyze relevant information
• Verify the results through an outside agent
• Report the findings to
– Audit committee, managers, and stakeholders
3.5(5)(i) SECURE COMMITMENT OF TOP MANAGEMENT AND THE BOARD

• The first step in the auditing process
– Top management may want a way to benchmark their ethical performance
• The board may
– Initiate audits based on stakeholder concerns or in response to corporate

governance reform
Have been held responsible for the ethical and legal compliance programs of the company’s they
oversee

3.5(5)(ii) ESTABLISH AN ETHICS OVERSIGHT COMMITTEE
• Ideally, the board of directors’ financial audit committee would oversee the audit
– In most companies, managers or ethics officers conduct it
• Individuals within the firm and external auditors should be involved
– An external auditor should not have other consulting or conflict-of-interest

relationships with top managers or board members
3.5(5)(iii) DEFINE THE SCOPE OF THE AUDIT

• Scope is determined by the type of business, risks faced, and the opportunities to manage
ethics
– Includes defining the key subject matter or risk areas that are important to the
ethics audit as well as the bases on which they should be assessed
3.5(5)(iv) REVIEW ORGANIZATIONAL MISSION AND GOALS

• Should include a review of the current mission statement and strategic objectives
• Should examine all formal and informal documents that make commitments with regard to
ethical, legal, or social responsibility
• Define the firm’s ethical priorities
3.5(5)(v) COLLECT AND ANALYZE INFORMATION

• Identify tools for measuring progress in improving employee’s ethical decisions
• Collect internal and external documents
• Determine a baseline level of compliance
• Determine all commitments
3.5(5)(vi) VERIFY THE RESULTS

• Have an independent party verify the results of the data analysis
– Increasing numbers of companies having results independently audited
Verification is an assessment of the quality, accuracy, and completeness of a company’s

social report
3.5(5)(vii) REPORT THE FINDINGS

• The final step: Issue the ethics audit report
– Should spell out the purpose and scope of the audit, the methods used in the audit
process
• Although the ethics audit may be similar to a financial audit, their forms are
different
3.5(6) STRATEGIC IMPORTANCE OF ETHICS AUDITING

• Should be conducted regularly

• Provide a benchmark of overall effectiveness of ethics initiatives
– Can be important in asset allocation and program development
Can demonstrate the positive impact of ethical conduct and social responsibility initiatives
on the firm’s bottom line
3.6 ETHICAL CRISIS MANAGEMENT

Plans to respond to and recover from disasters that can disrupt operations, destroy
organizational reputation and erode shareholder confidence
– Involves contingency planning, assessing organizational risks, planning for potential

occurrences and providing tools to respond
3.6 (1) CRISIS MANAGEMENT AND RECOVERY

• U.S. companies are failing to identify and manage ethical, social, economic, and
environmental concerns
• Ethical disasters follow recognizable phases of escalation
– Anticipation of problems and intervention can stave off organizational disaster
3.7 TRANSPARENCY INTERANATIONAL

Transparency International (TI) is a non-governmental organization that monitors and
publicizes corporate and political corruption in international development.
It publishes an annual Corruption Perceptions Index, a comparative listing of corruption

worldwide. The headquarters is located in Berlin, Germany but operates through more than 70
national chapters
TI was founded in May 1993 through the initiative of Peter Eigen, a former regional
director for the World Bank
In 1995, TI developed the Corruption Perceptions Index (CPI). The CPI ranked nations on
the prevalence of corruption within each country, based upon surveys of business people. The
CPI was subsequently published annually. It was criticized for poor methodology and unfair
treatment of developing nations, while also being praised for highlighting corruption and
embarrassing governments`.
"Transparency International is the global civil society organisation leading the fight against
corruption. It brings people together in a powerful worldwide coalition to end the devastating
impact of corruption on men, women and children around the world. TI's mission is to create
change towards a world free of corruption."
Since 1995, TI has issued an annual Corruption Perceptions Index (CPI); it also publishes
an annual Global Corruption Report, a Global Corruption Barometer and a Bribe Payers Index.
 TI does not undertake investigations on single cases of corruption or expose individual

cases
 It develops tools for fighting corruption and works with other civil society organisations,
companies and governments to implement them.
 The goal of TI is to be non-partisan and to build coalitions against corruption.

 TI's biggest success has been to put the topic of corruption on the world's agenda.
International Institutions such as the World Bank and the International Monetary Fund now
view corruption as one of the main obstacles for development, whereas prior to the 1990s this
topic was not broadly discussed
 TI furthermore played a vital role in the introduction of the United Nations Convention
against Corruption and the OECD countries’ Anti-Bribery Convention.
 The CPI—besides the World Bank corruption index is the most commonly used measure for
corruption in countries worldwide.
 To form this index, TI compiles surveys that ask businessmen and analysts, both in and
outside the countries they are analyzing, their perceptions of how corrupt a country is.
 Relying on the number of actual corruption cases would not work since laws and
enforcement of laws differ significantly from country to country.
3.8 TRANSPARENCY INTERNATIONAL INDIA

Transparency International India (TII) is the accredited India chapter of Transparency
International, an international civil society organisation based at Berlin that has turned the fight
against corruption into a worldwide movement. TII is part of the Asia Pacific forum comprising 20
nations that include China, Sri Lanka, Bangladesh, Pakistan, Maldives and others.
TII is a non-government, non-party and not-for-profit organisation of Indian citizens with

professional, social, industrial or academic experience seeking to promote transparent and
ethical governance and to eradicate corruption.
3.8(1) PRIORITY AREAS

 Good governance,
 Research,
 Capacity building,
 Communication and advocacy,
 Participatory monitoring,
 Engaging with Government,
 Private sector and NGOs
3.8(2) LEGAL STATUS

TI India was launched in March 1997. It was registered with the Registrar of Societies,
Delhi, vide registration number S-32570 of 1998 under the Societies Registration Act 1860.
Transparency International’s name and logo were also registered with the Trade Marks
Registry vide Registration No.1343408 Clause 42, on September 20, 2007.
Transparency International India was also registered with Income Tax u/s 12 A of the
Income Tax Act, 1961 and with Ministry of Home Affairs vide Foreign Currency Regulation Act,
1976.

3.8(3) ACTIVITIES OF TII
- Surveys and Studies
Surveys
 Youth corruption surveys.
 Citizen report card surveys.
Studies
 India corruption studies 2005.
 India corruption studies 2008.
 Towards improving governance.
 Corruption in Trucking Operations in India
 Other Ethical Bodies
3.9 BETTER BUSINESS BUREAU

The Better Business Bureau (BBB), founded in 1912, is a corporation consisting of several
private business franchises of local BBB organizations based in the United States and Canada,
which work together through the Council of Better Business Bureaus (CBBB). The BBB goal is to
foster a fair and effective marketplace, so that buyers and sellers can trust each other ("Start
With Trust")
3.9 (1) TRUTH IN ADVERTISING

The National Advertising Division of the CBBB (NAD) reviews national advertising for
truthfulness and accuracy, and fosters public confidence in advertising accuracy. Its policies and
procedures are established by the National Advertising Review Council (NARC). The Children's
Advertising Review Unit (CARU) of this BBB entity reviews advertising directed to children.
The BBB also administers the Children's Food and Beverage Advertising Initiative, a
voluntary self-regulation program undertaken in cooperation with major corporations. This
initiative is designed to shift the mix of advertising messaging to children to encourage healthier
dietary choices and healthy lifestyles.
 Build Trust
Establish and maintain a positive track record in the marketplace.
 Advertise Honestly
Adhere to established standards of advertising and selling.
 Tells the Truth

Honestly represent products and services, including clear and adequate disclosures of
all material terms.
 Be Transparent
Openly identify the nature, location, and ownership of the business, and clearly
disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.

 Honor Promises
Abide by all written agreements and verbal representations.
 Be Responsive
Address marketplace disputes quickly, professionally, and in good faith.
 Safeguard Privacy
Protect any data collected against mishandling and fraud, collect personal information
only as needed, and respect the preferences of consumers regarding the use of their
information.
 Embody Integrity
Approach all business dealings, marketplace transactions and commitments with

integrity.
3.10 CONSUMERS INTERNATIONAL

Consumers International (CI) is the world federation of consumer groups that, working
together with its members, serves as the only independent and authoritative global voice for
consumers.
With over 220 member organisations in 115 countries, CI are building a powerful
international movement to help protect and empower consumers everywhere.
Founded in 1960, we are fighting for a fair, safe and sustainable future for all consumers in
a global marketplace increasingly dominated by international corporations.
CI is a not-for-profit company limited by guarantee and registered in the UK (company no.

4337865). CI are also a registered UK charity (no. 1122155).
3.10(1) VISION
CI is working to put the rights of consumers at the heart of decision-making.
Our vision is a world where everyone has access to safe and sustainable goods and
services, and where the strength of our collective power is used for the good of consumers
throughout the world.
3.10(2) PRINCIPLES
There are eight basic consumer rights which define and determine CI principles:
 The right to satisfaction of basic needs
 The right to safety
 The right to be informed
 The right to choose
 The right to be heard
 The right to redress
 The right to consumer education

 The right to a healthy environment.
3.10(3) CI WORK
CI campaigns on the international issues that matter to consumers everywhere. This
means achieving real changes in government policy and corporate behaviour while raising
awareness of consumer rights and responsibilities.
CI seek to hold corporations to account and demands government action to put consumer
concerns first.
CI are committed to acting as a global watchdog: campaigning against any behaviour that
threatens, ignores or abuses the principles of consumer protection.
3.10(4) CI DO THIS BY
 Working with national member organisations to influence governments, highlight
marketplace abuses and raise grass roots support.
 Pressing consumer concerns through our official representation at global bodies such as
the United Nations (UN), World Health Organization (WHO), International Organization of
Standardization (ISO), and the Food and Agriculture Organization (FAO).
 Raising awareness about purchasing choices through clear, engaging and accessible
communication.
CI also committed to advancing consumer rights by building better consumer

organisations around the world. Our capacity building projects stretch the globe, helping
organisations develop their own in house skills, knowledge and expertise.
3.11 INTERNATIONAL ETHICS STANDARDS BOARD FOR ACCOUNTANTS

The International Ethics Standards Board for Accountants develops and issues in the public
interest high-quality ethical standards and other pronouncements for professional accountants
for use around the world
 The IESBA Code of Ethics for Professional Accountants and Interpretations apply to all
 professional accountants, whether in public practice, in business, education, and the

public sector
 International Ethics Standards Board for Accountants pronouncements.
 Research and consultation
 Transparent debate
 Exposure for public comment
 Consideration of comments received on exposure
 Affirmative approval

3.12 CORPORATE GOVERNANCE
3.12(1) “ CORPORATE”
Corporate is adjective meaning “of or relating to a corporation” derived from the noun
corporation.
A corporation is an organization created (incorporated) by a group of shareholders who have

ownership of the corporation.
The elected Board of directors appoint and oversee management of the corporation.
3.12(2) “GOVERNANCE”
Corporate is adjective meaning “of or relating to a corporation” derived from the noun
corporation.
A corporation is an organization created (incorporated) by a group of shareholders who

have ownership of the corporation.
The elected Board of directors appoint and oversee management of the corporation.
3.12(3) “CORPORATE GOVERNANCE”

• It is a broad concept and has been defined and understood differently by different groups
and at different points of time.
• The Cadbury Committee report defines it as “the system by which companies are directed
and controlled”.
• It is generally understood as the framework of rules, relationships, systems and processes

within and by which authority is exercised and controlled in corporations.”
3.12(4) GOVERNANCE CONCEPT IN ‘RAMAYANA’

To provide “the maximum happiness for the maximum number of people for the maximum
period, based on the principles of Dharma – righteousness and moral values.”
- Ayodhya Kand
3.12(5) WHAT IS CORPORATE GOVERNANCE?

• The Manner in which a Corporation is Run
▫ Achieving its Objectives
▫ Transparency of its Operations
▫ Accountability & Reporting
▫ Good Corporate Citizenship
• The Processes & Operating Relationships that Best Achieve Organisational Goals
• The primary purpose of corporate leadership is to create wealth legally and ethically.
• This translates to bringing a high level of satisfaction to five constituencies -- customers,

employees, investors, vendors and the society-at-large.

• The raison d'être of every corporate body is to ensure predictability, sustainability and
profitability of revenues year after year.
- N R Narayana Murthy
3.12(6) FUNDAMENTAL OBJECTIVE OF CORPORATE GOVERNANCE

• Enhancement of Shareholder Value, keeping in view the Interests of other Stakeholders
• CG a Way of Life rather than a Code
3.12(7) DRIVING FORCES OF CORPORATE GOVERNANCE IN INDIA

1) Unethical Business Practices
▫ Security Scams ---Harshad Mehtha Security Scam
 Equity allotments at discount rates to the controlling groups
 Disappearance of Companies (1993-94) - around 4,000
 companies with 25,000 crores without starting business
▫ Misdeed of Companies
 Plantation, Sheep rearing, etc.
2) Impact of Globalization
▫ Integration with Foreign Market
▫ Foreign Investors expectations
▫ New Business Opportunities --- IT & ITES, BPO etc.,
▫ New Capital formation – FII, FDI
3) Impact of Privatisation
▫ New structure of ownership
▫ Multinational Companies
3.12(8) REQUIREMENT FOR CORPORATE GOVERNANCE

Corporate governance in India calls for Two main requirements:
• Transparency in decision-making, and
• Accountability
To ensure that responsibility could be assigned easily for actions or inaction and also for
the safeguarding the interests of the stakeholders and the investors in the organization.
3.12(9) FRAMEWORK OF GOVERNANCE

1. Supervisory Board/ Committee/ Team
2. Audit Committee

3. Internal Audit
4. Statutory Audit
5. Disclosure of information
6. Risk management framework
7. Internal Control framework
8. Whistle blower policy
3.12(10) OBJECTIVES OF GOOD CORPORATE GOVERNANCE

1. Strengthen management oversight functions and accountability
2. Balance skills, experience and independence on the board appropriate to the nature and
extent of company operations
3. Establish a code to ensure integrity
4. Safeguard the integrity of company reporting
5. Risk management and internal control
6. Disclosure of all relevant and material matters
7. Recognition and preservation of needs of shareholders
3.12(11) PARTIES TO CORPORATE GOVERNANCE

1. Board of directors
2. Managers
3. Workers
4. Shareholders or owners
5. Regulators
6. Customers
7. Suppliers
8. Community (people affected by the actions of the organization)
3.12(12) PRINCIPLES IN DEVELOPING CORPORATE GOVERNANCE FRAMEWORK

 Openness
 Integrity
 Accountability
3.12(13) CONSTITUENTS OF CORPORATE GOVERNANCE

• The Board of Directors
 Pivotal role
 Accountable to stakeholders
 Directs management
• The Shareholders & Stakeholders
 To participate in appointment of directors
 To hold the BoD accountable for governance through proper disclosures
• The Management
 To act on the direction of the BoD
 To provide requisite information to the BoD for decision making
 To implement and monitor control systems
Good ethics and governance are not just `moral' or `compliance' issues In the highly
competitive target-driven buyers' market, there is a tendency to compromise. `Volume creation'
takes precedence over `value creation'. Ethical behaviour should be part of corporate
culture.
Only when we realise that the `means' is more important than the ènd', will ethics
have some value. The conduct of CEOs and the values and ethics they stand for will ensure the
long-term success of a company.
Success is a short term phenomenon and knowledge and skills have shelf life. The
successful are the ones who manage in this shelf life to adjust knowledge and skills to the
market needs. While culture and values are the drivers for good governance, codes should be
preferred coming in the forefront, and law coming in slightly afterwards.
Corporate governance is not about numbers but about the quality of people

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ATEXT ON

INDIAN ETHOS AND BUSINESS

RIYAS.K MCom, Mphil, BEd, MBA

ETHICS – INDIAN ETHOS IN MANAGEMENT

• Dictionary meaning “system of morals, rules and conduct”

• Ethics are the rule we play by.

• Ethics are the standard of behavior generally accepted by the society.

• Ethics are the standard of moral conduct.

• Ethics measure morality or the moral standard of society.

• It include morality, honestly, entricity responsibility

• An overall study of human behavior

• Suggest moral behavior – prescribe Do’s and Don’ts

Ethics is an individual's personal beliefs about whether a decision, behavior, or action is

ETHICS – INDIAN ETHOS – RIYAS.K Page 2

1.3 OBJECTIVE OF ETHICS

• Set moral standards of behavior

• An overall study of human behavior

• Apply judgment upon human behavior

• Suggest moral behavior – Prescribe Do’s and Don'ts

• One’s opinion or attitude about human conduct

1.4 VIEW OF ETHICS

 Right view on ethics

 Theory of justice- via- ethics

 Interrogative social contrast theory

1.4(2) RIGHT VIEW ON ETHICS

ETHICS – INDIAN ETHOS – RIYAS.K Page 3

 Life and safety.

1.4(3) THEORY OF JUSTICE

1.4(4) INTEROGATIVE SOCIAL CONTEST

• The value is a belief on which a man acts by preference.

• Values also termed as ‘GUNAS’

• Character is the foundation of values

Character – values – attitudes- behavior.

1.5(2) HUMAN VALUE

ETHICS – INDIAN ETHOS – RIYAS.K Page 4

1.5(3) TYPES OF VALUES

1.5(4) NEED OF VALUES

1.5(5) IMPORTANCE OF VALUES

ETHICS – INDIAN ETHOS – RIYAS.K Page 5

o The bedrocks of culture.

o Have emotional significance to individuals and the society

Folkways: Routine conventions of everyday life.

Culture comprises of shared philosophies ideologies, values belief attitudes, and

ETHICS – INDIAN ETHOS – RIYAS.K Page 6

1.7 (2) TYPES OF CULTURE

• Base ball team culture

1.7 (3) ORGANIZATION CULTURE

1.7 (3)(i) DEFINITION

ETHICS – INDIAN ETHOS – RIYAS.K Page 7

1.7 (3)(ii) THE IMPORTANCE OF ORGANIZATION CULTURE

1.7 (3)(iii)DETERMINANTS OF ORGANIZATION CULTURE

• Corporate success that strengthens the culture.

• Shared experiences that bond organizational members together.

1.7 (3)(iv)MANAGING ORGANIZATION CULTURE

• Articulate the culture through slogans, ceremonies, and shared experiences.

1.7 (3)(v)CHANGING ORGANIZATION CULTURE

• Bring in outsiders to important managerial positions.

1.7 (3)(vi)COMPONENTS OF ORGANIZATIONAL CULTURE

o Practices and actions that create and sustain a company’s culture.

o The repeated tales and anecdotes that contribute to a company’s culture by

• Rites and Ceremonies

1.8 ETHICS AND MORALITY