Module 4

Ethical decision making

 Attitude and beliefs
 Value system
 Role of laws and enforcement
 Ethical leadership
 Corporate social responsibility
 Attitudes can be defined as evaluations of ideas, events,
objects, or people. Attitudes are generally positive or negative,
but they can also be uncertain at times.
Values are the beliefs that guide people’s actions. They represent
a person’s belief about what is right or wrong.

Values are a set of principles that people cherish.

They enhance the quality of individual and collective life.

They determine the overall personality of an individual and the

organization he is working for.
By Albert Schweitzer

 Operative values
Based on person’s preferences for action and objects

 Conceived values
Based on symbolized concepts.

 Objective values
based on objective desires
By M Rokeach

 Terminal value
These are the values that a person wants to achieve during his
lifetime.
Happiness, pride, prosperity, wealth

 Instrumental values
These values relate to means for achieving the desired results.
Hard work & achievement, education & intellectual pursuits
By Jones and Gerald

 Positive values
These are the values which the individual strives to achieve.

 Negative values
These are the values which the individual avoids.
 Institutions
 Organizational values
 Peers and colleagues
 Situational factors
 Personal factors
A value system is a protocol for behavior that enhances trust,
confidence and commitment of members of the community.

Indians have a rich culture and heritage, which has deep rooted
family values

“Mathru devo bhava, Pithru devo bhava”

However this value system is eroding in the contemporary
business.

 Trends towards individualism

 Public apathy
 Accountability
 Less professional dealing
Multicultural education refers to any form of education or
teaching that incorporates the histories, texts, values, beliefs, and
perspectives of people from different cultural backgrounds.
Multicultural education has two viewpoints

 Assimilation / melting point

 Pluralism / global perspective
Dimensions of global perspective of multicultural education

 Multicultural competence
 Equity pedagogy
 Curriculum reform
 Teaching for social justice
 Ethical leadership is leadership that is involved in leading in a
manner that respects the rights and dignity of others.
 As leaders are by nature in a position of social power, ethical
leadership focuses on how leaders use their social power in
the decisions they make, actions they engage in and ways they
influence others.
 Leaders who are ethical demonstrate a level of integrity that is
important for stimulating a sense of leader trustworthiness,
which is important for followers to accept the vision of the
leader.
 Committed
 Justice
 Respect others
 Honesty
 Humane
 Focus on team building
 Value driven decision making
 Encourages initiative
 Leadership by example
 No tolerance for ethical violations
 Competitive advantage
 Better staff attraction & retention
 Investment
 Morale & culture
 Reputation
 Legacy
“Corporate Social Responsibility is the continuing commitment
by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce
and their families as well as of the local community and society at
large”
 Environmental
The environmental dimension of corporate social responsibility refers to
your business's impact on the environment. The goal, as a socially
responsible company, is to engage in business practices that benefit the
environment.

 Social
The social dimension of corporate responsibility involves the relationship
between your business and society as a whole. When addressing the social
dimension, you should aim to use your business to benefit society as a
whole.
 Economic
The economic dimension refers to the effect that corporate social
responsibility has on the finances of your company. In an ideal
world, where corporate social responsibility had no costs, there
would be no reason to limit it. But in the real world it is important
to recognize the financial impact that these actions have and to
balance being a good corporate citizen with making a profit.
 Stakeholder
The stakeholders are all of the people affected by your company's
actions.
For example, you might be able to increase your output by
having employees work more, but you should consider the
impact it will have on them, not just your bottom line.
 Voluntariness
Actions that fall into the voluntariness dimension are those that you are not
required to do. These actions are based in what your company believes is the
correct thing to do. They may be based in specific ethical values that your
company holds. For example, you may believe that using organic products is the
right thing to do even if you are not required to do so.
 Economic
 Legal
 Ethical
 Philanthropic
 Help, attract and retain members
 Enhance innovation in the sector
 Build positive government and NGO relations
 Help identify industry priorities
 Fulfill association goals
 Build industry reputation and brand
 Enhance employee recruitment and retention
 Improved financial performance
 Enhanced brand image and reputation
 Increased sales and customer loyalty
 Increased ability to attract and retain employees
 Reduced regulatory oversight
 Innovation and learning
 Risk management
 Easier access to capital