DEFINITION OF ETHICS

• Oxford Dictionary: is relating to morals

• It is the study of morals & moral choices
• It focuses on standards, rules & codes of conduct
that govern the behavior of individuals &
groups
• Is a science of morals
 ETHICS
• Derived from words Latin ‘ethicus’, Greek ‘
ethikos’ .
• Ethos stands for character or manners
• It is a science of morals
• Moral principles are rules of conduct
•
MKS - ETHICS 1
 Definition of business ethics
• Are moral principles that define right or wrong
behavior in the world of business
• Is an evaluation of business activities & behavior
as right or wrong
• Ethical conduct conforms what a group or society
as a whole considers right behavior
• Is application of general ethical rules to business
behavior
•
•

MKS - ETHICS 2
 Nature of Ethics
• Concepts of ethics deals with human beings only. Human
beings can distinguish right or wrong, good or evil, just
and proper.
• The Study of ethics is a set of systematic knowledge about
moral behaviour and conduct. Study of ethics is a
science – a social science.
• Science of ethics (Normative Science) : it judges the value
of the facts in terms of ideal situation.
• Deals with human conduct which is voluntary, not forced or
coerced by persons or circumstances.
• Concerns only human beings
• Study of systematic knowledge about moral behavior of
conduct
• It is a normative science( measuring facts in terms of ideal)
• Concerns with human conduct which is voluntary and not
forced by persons or circumstances
• Are dealing with human judgment
• MKS - ETHICS 3
 Ethics
Meaning
 Character or manner Science of morals
 Moral principles Recognized rules of
conduct


Principles
 Fairness Integrity
 Commit to agreements Broad-mindedness
 Considerateness Responsible
citizenship
 Attempt to excel Accountability
 Importance to human esteem and self respect

MKS - ETHICS 4
 Objectives of Ethics
• Study of human behaviour and makes evaluative
assessment about that as moral or immoral (A
diagnostic goal).
• Establishes moral standards and norms of
behaviour.
• Makes judgment upon human behavior based on
these standards and norms.
• Prescribes moral behaviour and makes
recommendations about how to or how not to
behave (Therapeutic goal).
• Expresses an opinion or attitude about human
contact in general.
•
MKS - ETHICS 5
 Sources of Ethics
1. Genetic Inheritance : the qualities of goodness is a
product of genetic traits strengthened over time by
the evolutionary process.
2. Religion : religious morality is clearly a primary focus in
shaping our societal ethics.
3. Philosophical Systems : the quality of pleasure to be
derived from an act was the essential measure of its
goodness.
4. Cultural Experience : individual values are shaped in
large measure by the norms of the society.
5. The legal system : laws represent a rough
approximation of society’s ethical standards.
6. Codes of Conduct : three primary categories of codes,
a) company codes, b) company operating policies, c)
codes of ethics.

MKS - ETHICS 6
 RELATIONSHIP BETWEEN BUSINESS &
ETHICS
• The Unitarian view -
Business is only a subset or substructure of the society-View of the

church
• The separatist view - ( Adam Smith & Milton Friedman)
Only goal of the business should be profit maximisation

• The integration view -

• Integration of business with ethics -Talbot
Business Ethics

• The Separatist view : the only objective of business is to profit

maximization and business has no right to meddle with ethics.
• The Unitarian view : tells that business is a subject of the moral
structure of the society. Business is a subset or substructure of
the moral structure of the society. Business and morality
cannot be separated.
• Integration view : neither was business an extension of morality
and ethics nor can business keep himself absolutely aloof from
the ethical practices of society wherein it exists and operates.
•
MKS - ETHICS 7

 Characteristics of Business Ethics
• Ethical decisions differ with individual perspective of
different persons. Each person views the ethical
question in terms of his or her own frame of reference.
And this frame of reference is the person’s own unique
value system.
• Ethical decisions are not limited only to themselves, but
affects a wide range of other situations as well.
Similarly, unethical decisions do not end in themselves,
but have widespread ramifications.
• Most ethical decisions involve a tradeoff between cost
incurred and benefits received. Cost and benefits,
profits and social responsibilities are two ends of a
single spectrum. Both cannot be maximized
simultaneously.
• The consequences of most ethical or unethical decisions
are not clear. The only certainty is that somewhere,
sometime, somehow, something positive will result from
an ethical decision and something negative from
unethical one.
• Every person is individually responsible for the ethical or
unethical decision and action that he or she takes.
Taking an ethical decision cannot be an impersonal
activity as it involves the person’s individual unique
MKS - ETHICS 8
 Nature of business in ethics
• Overt problem • Covert
Can clearly see More complex in nature
Not transparent
e.g. Bribery
Difficult to locate,
Theft
eliminate
Sabotage Dangerous to country &

collusion people
Threatening to business

Eg; merger/

 acquisitions/promotio
n & demotion


MKS - ETHICS 9
 Characteristics of ethical decision

• Right – ( differ from person to person)

• Equitable
• Good
• Proper
• fair
• Just
• Is unstructured
• No framework
• It is abstract
•
MKS - ETHICS 10
 Why need for business
ethics
• Business operates within a society
• Must contribute to the welfare of the society
• To get social sanction of the society to earn loyal
customers
• It should have great impact on community
• To keep a good image of the company
• Ethical actions & decisions may not yield
immediate results but is good in long run.
• It is only ethical organization which will grow &
survive
• Business needs to function as an corporate citizens
of the country.
• To come out of narrow mentality & narrow goals
•
MKS - ETHICS 11
•
 Importance of the business
ethics
• Personal gain
• Individual values vis-à-vis
organizational goals
• Manager values & attitudes
• Competitive pressures
• Cross cultural contradictions
•

MKS - ETHICS 12
 Arguments against business
ethics
• As per few leaders & Mr. Milton
Friedman(1960) in his book “ capitalism
& freedom’ business being economic
entities should have nothing to do with
morals
• As per Theodore Levit psychologist “
expressed fear that if business being
concerned about ethics then business
values would come to dominate social
values.

MKS - ETHICS 13
 Code of Ethics – American Marketing
Association
• Responsibilities of Marketer :
 a) not to do harm knowingly,
 b) to adhere all applicable laws and regulations,
 c) the accurate representation of their education,
training and experience,
 d) active support, practice and promotion of this code of
ethics.
• Honesty and Fairness :
 a) being honest in serving consumers, clients,
employees, suppliers, distributors and the public.
 b) no knowingly participating in conflict of interest
without prior notice to all parties involved,
 c) establishing equitable fee schedules including the
payment or receipt of usual, customary and/or legal
compensation for marketing exchange.

MKS - ETHICS 14
 Code of Ethics – American Marketing
Association
• Rights and Duties of parties :
 a) products and service offered are safe and fit for their
intended use,
 b) communications about offered product and services are
not deceptive,
 c) all parties intend to discharge their obligations, financial
and otherwise, in good faith,
 d) approximate internal methods exist for equitable
adjustment and/ or, redress of grievances concerning
purchases.
• The code of ethics is not limited to the following responsibilities
of the marketer :
 1) in the area of product development management,
 2) disclosure of all substantial risks associated with product or
service usage,
 3) identification of any product component substitution that
might materially change the product or impact on the buyers’
purchase decision,
 4) identification of extra cost added features.
MKS - ETHICS 15

 Ethical value
system( overview)
• Situations ‘are or ‘ought be’
• See life as it is
• With out perceptions & judgments
• Inside out – Stephen coveys principle
• Values to be treated as qualities to be approved
• Value increases quality of life and maketh the
society
• One must have a standard moral behavior
• Values are different for moral standards or norms
of behavior and code of conduct
•
• MKS - ETHICS 16


System of universalism Emmanuel Kant 1734- 1804




Def: is based on the duties & obligation of the individual in society is
deontology
• moral worth is the good intention of the person
• Personal duties & obligations are universal
• One should act only in the ways that could wish all others to act
• Treat people with dignity & respect
• Finds difficulty in application
Examples:

SYSTEM OF UTILITARIANISM TELEOLOGY- Jeremy Bentham

Def: is not concerned with the act itself but with the consequences of

the act
• It is not based on the intent of the people
• It is a end based ethics- Consequentianilsm
• Version of teleology is utilitarianism
• Creating a greater degree of benefits to large number of people
with least harm
MKS - ETHICS 17
• EXAMPLES: BUILDING ROADS/ KILLING OF TERRORIST
System of distributive justice & social contacts – John
Rawls
Def: justice is thought to be the most likely outcome of an ethical

process of decision making

• Synergy formed by group of people
• Conflicts result if there is no transparency
Example; co-operative society

Legal system & professional codes

Def: the moral worth of an action is determined by the legal

systems
• If action of an individual is within the purview of law then it is
considered right
• Example: Doctor following the Hippocratic code


Ethical Models
• The golden rule model
Derived from new testament

• Kantian Model
Did not believe in predetermined actions

Based on every person has certain rights

MKS - ETHICS 18

 LECTURE:2
Sources of Ethics
1.Genetic Inheritance : the qualities of goodness
is a product of genetic traits strengthened
over time by the evolutionary process.
2.Religion : religious morality is clearly a primary
focus in shaping our societal ethics.
3.Philosophical Systems : the quality of pleasure
to be derived from an act was the essential
measure of its goodness.
4.Cultural Experience : individual values are
shaped in large measure by the norms of the
society.
5.The legal system : laws represent a rough
approximation of society’s ethical standards.
6.Codes of Conduct : three primary categories of
codes, a) company codes, b) company
operating policies, c) codes of ethics.
•
MKS _ ETHICS Lecture 2 19
 Code of Ethics – American Marketing
Association
• Responsibilities of Marketer :
 a) not to do harm knowingly,
 b) to adhere all applicable laws and
regulations,
 c) the accurate representation of their
education, training and experience,
 d) active support, practice and promotion of
this code of ethics.
• Honesty and Fairness :
 a) being honest in serving consumers, clients,
employees, suppliers, distributors and the public.
 b) no knowingly participating in conflict of
interest without prior notice to all parties
involved,
 c) establishing equitable fee schedules
including the payment or receipt of usual,
customary and/or legal compensation for
marketing exchange.MKS _ ETHICS Lecture 2 20
 Code of Ethics – American Marketing
Association
• Rights and Duties of parties :
 a) products and service offered are
safe and fit for their intended use,
 b) communications about offered
product and services are not deceptive,
 c) all parties intend to discharge their
obligations, financial and otherwise, in
good faith,
 d) approximate internal methods exist
for equitable adjustment and/ or, redress
of grievances concerning purchases.
•
MKS _ ETHICS Lecture 2 21
 Characteristics of Business Ethics
• Ethical decisions differ with individual perspective of
different persons. Each person views the ethical
question in terms of his or her own frame of reference.
And this frame of reference is the person’s own unique
value system.
• Ethical decisions are not limited only to themselves, but
affects a wide range of other situations as well.
Similarly, unethical decisions do not end in themselves,
but have widespread ramifications.
• Most ethical decisions involve a tradeoff between cost
incurred and benefits received. Cost and benefits,
profits and social responsibilities are two ends of a
single spectrum. Both cannot be maximized
simultaneously.
• The consequences of most ethical or unethical decisions
are not clear. The only certainty is that somewhere,
sometime, somehow, something positive will result from
an ethical decision and something negative from
unethical one.
• Every person is individually responsible for the ethical or
unethical decision and action that he or she takes.
Taking an ethical decision cannot be an impersonal
activity as it involves theLecture
MKS _ ETHICS person’s
2 individual unique
22
 Kohlberg’s Theory or Model
• Level 1 – Pre-conventional level. (stage 1 + stage 2)
• Level 2 – Conventional level. (stage 3 + stage 4).
• Level 3 – Post Conventional level or, Principled level (Stage 5 +
stage 6)
S ta g e 6 – Fo llo w s se lf ch o se n u n ive rsa Sl ta g e 1 – O b e y ru le to a vo id
e th ica lp rin cip le s in th e e ve n t p u n ish m e n t
o f co n flicts. Prin cip le s
o ve rrid e la w . S ta g e 2 – Fo llo w
R u le s o n ly if it is in
S ta g e 5 – C u rre n t la w s
O w n in te re st. Le t
a n d va lu e s a re re la tive .
O th e rs d o th e sa m e .
La w s a n d d u ty a re
C o n firm to se cu re
o b e ye d o n ra tio n a l
re w a rd s.
ca lcu la tio n s to se rve th e
g re a te st n u m b e r.
S ta g e 3 – C o n fo rm to
m e e t th e exp e cta tio n s
S ta g e 4 – D o in g rig h t in o n e ’ s o f o th e rs. P le a se o th e rs.
d u ty. O b e y th e la w . U p h o ld th e A d h e re to ste re o typ ica l
so cia lco n tra ct a n d o rd e rs. im a g e s.

MKS _ ETHICS Lecture 2 23

 Golden Rule Model
• One should treat other people in the same
way that he or she would want to be
treated.
• The ethics of reciprocity should not be confused
with revenge or penalizing justice.
• One has the freedom of doing anything as long as
those activities do not harm anyone.
• Different people have different ideologies, beliefs
and may belong to different cultural heritage.
This difference is the reason behind the
difference in his behavior towards various
situations.

MKS _ ETHICS Lecture 2 24

 The Kantian Model
• Every person has certain basic rights in a moral
universe. So an action is morally correct if it
minimizes the aggregate violation of the rights
of all stakeholders.
• The Kantian model is useful to managerial
decision making and readily leads itself to
internal audit review.
• Kant did not believe that any outcome is good
from its origin. Good is not always intrinsic. He
did not believe in any ‘good’ character traits
like ingenuity, intelligence, courage etc. He
used the term ‘good’ as ‘good will’.
• If the actions are predetermined then they cannot
be said as free and moral. He believed that to
act morally, freedom is required.
MKS _ ETHICS Lecture 2 25
 The Kantian Model
• There are 2 concepts of duty:
1. Duty is just following orders imposed by somebody.
2. Duty is internal and cannot be imposed on oneself.
• He considered inclination to constitute motivation,
whereas others believe that it was physical
world that acted motivation. Sometimes man’s
mind is overclouded by sorrows due to the lack
of sympathy from others but still has the power
to help those in distress.
• Kant also introduces maxims like:
1. Never lie to your colleagues.
2. Never act in a manner that would make your family
or organization ashamed of you.
3. Always work hard to be the best performer.

MKS _ ETHICS Lecture 2 26

 Teleological Theories
• Teleological Theories hold that the rightness of actions is
determined solely by the amount of good
consequences they produce. Actions are justified on
teleological theories by virtue of the end they achieve
rather than some feature of the actions themselves.
Thus, the concept of goodness is fundamental in
teleological theories and the concept of rightness and
obligation or duty are defined in terms of goodness.
• Whatever makes human beings generally better off or
provides some benefit is good and whatever makes
them worse or harm them is evil.
• Although much of our ordinary moral reasoning is
teleological, some of it is decidedly non teleological in
character. Generally, we have obligations to keep our
promises, even when more good might be achieved by
breaking them.
•
MKS _ ETHICS Lecture 2 27
 Deontological Theories

• Deontologist Theories in contrast to teleological

theories deny that consequences are relevant
to determining what we ought to do.
Deontologist typically hold that certain actions
are right not because of some benefits to
ourselves or others but because of the nature
of these actions or rules from which they follow.
Hence bribery is wrong by its very nature
regardless of the consequences. Deontology
means Duty . Obligation or duty is the
fundamental moral category in deontological
theories and goodness and other concepts are
to be defined in terms of obligation of duty.
MKS _ ETHICS Lecture 2 28
 Deontological Theories
• The seven rules presented by W. D. Ross, a 20th . Century British
philosopher are as follows:
1. Duties of fidelity: To keep promises and to tell the truth.
2. Duties of reparation ( Compensation for war damage): To
compensate people for injury that we have wrongfully inflicted
upon them.
3. Duties of gratitude: To return favours that others do for us.
4. Duties of justice: To ensure that goods are distributed according
to people’s merit.
5. Duties of beneficence: To do whatever we can to improve the
condition of others.
6. Duties of self improvement : To improve our own conditions.
7. Duties of non-malfeasance: To avoid injury to others.


1.
MKS _ ETHICS Lecture 2 29
 Deontological Theories

• Deontologists generally hold that the rightness of actions

depends wholly or in part in the motives from which
they are performed and not on consequences. Two
people who give large amounts to charity – one out of
genuine concern to alleviate suffering and the other to
impress friends and associates – produce the same
amount of Good, yet we evaluate the two actions
differently.
• One strength of deontological theories such as Ross’s is
that they make sense of cases in which consequences
seem to be irrelevant. Especially in justifying the
obligations that arise from relations, such as contracts
and roles. Thus a manufacturer has an obligation to
honour a warranty on a defective product even if the
cost of doing so exceeds the benefit of satisfying a
customer. MKS _ ETHICS Lecture 2 30
 Immanuel Kant's theory of ethics

• Immanuel Kant's theory of ethics is considered

deontological for several different reasons. First,
Kant argues that to act in the morally right way,
people must act according to duty (deontology).
Second, Kant argued that it was not the
consequences of actions that make them right or
wrong but the motives of the person who carries
out the action.
• Kant's argument that to act in the morally right way,
one must act from duty, begins with an argument
that the highest good must be both good in itself,
and good without qualification. Something is 'good
in itself' when it is intrinsically good, and 'good
without qualification' when the addition of that
thing never makes a situation ethically worse.
• Kant then argues that those things that are usually
thought to be good, such as intelligence,
perseverance and pleasure, fail to be either
intrinsically good or good without qualification.
Pleasure, for example, appears not be good
without qualification, because when people take
pleasure in watching someone suffering, this
seems to make the situation ethically worse. He 31
MKS _ ETHICS Lecture 2
concludes that there is only one thing that is truly
 Immanuel Kant's theory of ethics

• Kant then argues that the consequences of an act of

willing cannot be used to determine that the person has
a good will; good consequences could arise by accident
from an action that was motivated by a desire to cause
harm to an innocent person, and bad consequences
could arise from an action that was well-motivated.
Instead, he claims, a person has a good will when he or
she 'acts out of respect for the moral law'.
• People 'act out of respect for the moral law' when they act
in some way because they have a duty to do so. So, the
only thing that is truly good in itself is a good will, and a
good will is only good when the willer chooses to do
something because it is that person's duty. Thus,
according to Kant, goodness depends on rightness.
• Kant's three significant formulations of the
categorical imperative are: Lecture 2
MKS _ ETHICS 32
 Immanuel Kant's theory of ethics

• Nothing in the world—indeed nothing even beyond

the world—can possibly be conceived which could
be called good without qualification except a good
will.
• Act only according to that maxim by which you can
also will that it would become a universal law.
• Act in such a way that you always treat humanity,
whether in your own person or in the person of
any other, never simply as a means, but always at
the same time as an end.
• Act as though you were, through your maxims, a law-
making member of a kingdom of ends.
•
MKS _ ETHICS Lecture 2 33
 LECTURE:3
The Seven Deadly Sins – Mahatma Gandhi
• Wealth without work
• Pleasure without conscience
• Knowledge without character
• Commerce (business) without morality (Ethics)
• Science without humanity
• Religion without sacrifice
• Politics without principles.

MKS - ETHICS - LECTURE 3 34

 Value systems, Attitudes, Beliefs and
Practices
• Values are general terms referring to those things
which people regard as good, bad, right,
wrong, desirable, justifiable etc.
• Business is driven by values.
• Values are potent sources of conflict as well as of
cooperation.
• Managerial values are e.g. importance of good in
organizations ( like productivity, profit
maximisation, employee welfare, industry
leadership, organisational stability,
organisational efficiency, organisational
growth, social welfare etc.), groups within
organisations ( like employees, customers,
co-workers, superiors, subordinates, stock-
holders etc.) and the personal goals of
individuals.
1. MKS - ETHICS - LECTURE 3 35
 Value systems, Attitudes, Beliefs and
Practices
• Values are classified under 4 aspects:
• Criteria for Values required to be optimized

accepting values (no maximum, no minimum):

Criteria of Controlled greed

universality Pursuit of pleasure

Greatest good for Efficiency and work ethics

the greatest Compensation and charity

number. Piety (Quality of being pious)

Truth

Transparence and honesty

MKS - ETHICS - LECTURE 3 36

• Stoic dignity – control of one’s dignity or passion
• Camaraderie – friendly comradeship
• Fraternity – religious brotherhood, group with
common interest
• Meliorism - is the doctrine that the world is
capable of improvement


MKS - ETHICS - LECTURE 3 37

 Value systems, Attitudes, Beliefs and Practices
Values required to be optimized Values in the nature of rights of
(no maximum, no minimum) : beneficiaries (to maximize societal
Evolutionary destiny interference)
•
Stoic (Great self control over adversity)dignity Right privacy

•
Truth and co-operation

Righteousness in envy, pride, anger

Individual choice

A minimum standard of life

and violence Institutionalizing ethical implementation of

Camaraderie (Friendly Comradeship) and values (integrating individual and social

fraternity (Group with common interest) needs)
Tolerance, pluralism (Embracing many minority Distributive justice

groups and social class) and meliorism (is the doctrine Democratic dispassionate discourse

that the world is capable of improvement) Market systems

Gratitude and respectfulness Ensuring organization is used as vehicles for
Harmony with self, society and
ethical synergy
nature. Respect for: law, professional codes, rituals

and symbols. Processes of social adaptation.



MKS - ETHICS - LECTURE 3 38

 Value systems, Attitudes, Beliefs and
Practices
Norms :


1. Norms are expectations of proper behaviour, not requirements of

that behaviour, a major difference between a norm and a
law.
3. Each individual within a society has a set of norms, belief and
values that together form the individuals moral standards.
4. The norm is not published, may not be obeyed and cannot be
enforced – except by the sanction of small group whose
members hold the similar norms and use such penalties as
disapproval or exclusion
Beliefs


• The belief in an ethical code are standards of thought. These are

the ways that the senior executive in the organization want
others to think.
• Belief are criteria of thought. They are the ways an individual
expects people to think about given concepts.
• Beliefs are different from norms, since we do not find any action –
only an abstract way of thinking, no untoward behaviors with
others. MKS - ETHICS - LECTURE 3 39
 Value systems, Attitudes, Beliefs and
Practices
Moral standards, Beliefs and their role
• Law is a dynamic entity since the rules prevalent now may change
after some period. There seems to be time lag between
changes in moral standards and changes in legal
requirements.
• Moral standards include the norms we have about the kinds of
actions we believe are morally right or wrong as well as the
values we place on the kinds of objects we believe are
morally good and morally bad.
Moral standards Vs. Standards

• Characteristics that distinguish Moral standards with Standards:

Ø Moral standards are associated with special emotions and special
vocabulary
Ø Moral standards deal with matters that we think can seriously
injure or seriously benefit human beings.
Ø Moral standards are not established or changed by the decisions
of particular authoritative bodies.
Ø Moral standards to be preferred to other values including self
interest.
MKS - ETHICS - LECTURE 3 40
Ø Moral standards are based on impartial considerations.
 Value systems, Attitudes, Beliefs and Practices
• Morality is the standards that an individual or a group has
about what is right and wrong, good and evil. E.g.
integrity is good, dishonesty is bad, it is right to tell the
truth and wrong to endanger the lives of others.
• Ethico-moral actions pertain to set of actions engineered
by the characters and expressed through behaviors.
•
C h a ra cte r – B e h a vio u r M a trix S tro n g – stro n g behaviour –
ch a ra cte r w e fin d in M K
S tro n g
B – Strong B – strong G a n d h i, J R D Ta ta
C – Weak C – strong w h o h a ve ce rta in se t o f
B e h a vio u r ( B )

Strategic Man Desired Mix e.g. q u a litie s like :

Gandhi, Tata. •H o n e sty
B – Weak B – Weak •Tru th fu ln e ss
C = Weak C – Strong •S in ce rity
Dogs (avoid and Need Corrections •G e n e ro sity
discard) Hitler •Tra n sp a re n cy
•C o o p e ra tio n
W eak •In te g rity
•S tro n g w illp o w e r e tc .
W eak S tro n g
C h a ra cte r ( C )
MKS - ETHICS - LECTURE 3 41
 Value systems, Attitudes, Beliefs and
Practices
• Attitudes are predisposed, evaluative feelings of
people about objects, people or events.
Attitudes express about favorable or
unfavorable feelings about something.
• Attitudes are formed right from our childhood
experience, our background, our learning
situations and are reinforced in adult life.
• On the other hand, perception is the process of
becoming aware of situation and interpreting
our sensory impressions in order to give
meaning to our environment.
• Whatever we perceive, depends on our attitude to
that object or happening at that point of time.
Individuals behave in a given manner, based
not on the way their external environment
actually is, but on what they ‘see’ or ‘believe’ it
to be. MKS - ETHICS - LECTURE 3 42
 Value systems, Attitudes, Beliefs and
Practices

• When our value system is clear it becomes a lot

easier to make decisions and commitments.
• Commitment implies:

Dependability A sense of duty
Reliability Sincerity

Predictability Character

Consistency Integrity

Caring Loyalty

Empathy

MKS - ETHICS - LECTURE 3 43

 LECTURE:4
Geeta Sar

• Whatever happened, it happened for good.

Whatever is happening, is happening for
good.
Whatever that will happen, it will be for
good.
What have you lost for which you cry?
What did you bring with you, which you
have lost?
What did you produce, which has
destroyed?
You did not bring anything when you were
born.
Whatever you have, you have received
from Him.
Whatever you will give, you will give to
Him.
You came empty handed and you will go
 Gandhian economics
• Gandhian economics is a school of economic thought based on
the socio-economic principles expounded by Mohandas
Karamchand Gandhi. It is largely characterized by its affinity to
the principles and objectives of socialism, but with a rejection
of class war and promotion of socio-economic harmony.
Gandhi's economic ideas also aim to promote spiritual
development and harmony with a rejection of materialism. The
term "Gandhian economics" was coined by J. C. Kumarappa, a
close supporter of Gandhi.
•
• Gandhi's thinking on socio-economics issues was greatly
influenced by the American writer Henry David Thoreau.
Throughout his life, Gandhi sought to develop ways to fight
India's extreme poverty, backwardness and socio-economic
challenges as a part of his wider involvement in the
Indian independence movement. Gandhi's championing of
Swadeshi and non-cooperation were centred on the principles
of economic self-sufficiency. Gandhi sought to target European-
made clothing and other products as not only a symbol of
British colonialism but also the source of mass unemployment
and poverty, as European industrial goods had left many
millions of India's workers, craftsmen and women without a
 Gandhian economics
• By championing homespun khadi clothing and Indian-made goods,
Gandhi sought to incorporate peaceful civil resistance as a
means of promoting national self-sufficiency. Gandhi led
farmers of Champaran and Kheda in a satyagraha (
civil disobedience and tax resistance) against the mill owners
and landlords supported by the British government in an effort
to end oppressive taxation and other policies that forced the
farmers and workers and defend their economic rights. A major
part of this rebellion was a commitment from the farmers to
end caste discrimination and oppressive social practices
against women while launching a co-operative effort to
promote education, health care and self-sufficiency by
producing their own clothes and food.
•
• Gandhi and his followers also founded numerous ashrams in India
(Gandhi had pioneered the ashram settlement in South Africa).
The concept of an ashram has been compared with the
commune, where its inhabitants would seek to produce their
own food, clothing and means of living, while promoting a
lifestyle of self-sufficiency, personal and spiritual development
and working for wider social development. The ashrams
included small farms and houses constructed by the inhabitants
themselves. All inhabitants were expected to help in any task
necessary, promoting the values of equality.
•
 Gandhian economics
• Gandhi also espoused the notion of "trusteeship,"
which centred on denying material pursuits and
coveting of wealth, with practitioners acting as
"trustees" of other individuals and the
community in their management of economic
resources and property. Contrary to many
Indian socialists and communists, Gandhi was
averse to all notions of class warfare and
concepts of class-based revolution, which he
saw as causes of social violence and
disharmony. Gandhi's concept of egalitarianism
was centred on the preservation of human
dignity rather than material development.
Some of Gandhi's closest supporters and
admirers included industrialists such as
Ghanshyamdas Birla, Ambalal Sarabhai,
Jamnalal Bajaj and J. R. D. Tata, who adopted
several of Gandhi's progressive ideas in
managing labour relations while also personally
participating in Gandhi's ashrams and socio-
political work.
 Implementation in India
• During India's freedom struggle as well as after India's
independence in 1947, Gandhi's advocacy of homespun
khadi clothing, the khadi attire (which included the
Gandhi cap) developed into popular symbols of
nationalism and patriotism. India's first prime minister,
Jawaharlal Nehru was a socialist as well as a close
follower of Gandhi. While Nehru was influenced by
Gandhi's aversion to the brand of socialism practised in
the Soviet Union, he was also an exponent of
industralisation and critical of Gandhi's focus on rural
economics.
•
• Gandhian activists such as Vinoba Bhave and Jayaprakash
Narayan were involved in the Sarvodaya movement,
which sought to promote self-sufficiency amidst India's
rural population by encouraging land redistribution,
socio-economic reforms and promoting
cottage industries. The movement sought to combat the
problems of class conflict, unemployment and poverty
while attempting to preserve the lifestyle and values of
rural Indians, which were eroding with industrialisation
and modernisation. Sarvodaya also included Bhoodan, or
the gifting of land and agricultural resources by the
landlords (called zamindars) to their tenant farmers in a
• Bhave and others promoted Bhoodan as a just
and peaceful method of land redistribution in
order to create economic equality, land
ownership and opportunity without creating
class-based conflicts. Bhoodan and Sarvodaya
enjoyed notable successes in many parts of
India, including Maharashtra, Gujarat,
Karnataka and Uttar Pradesh. Bhave would
become a major exponent of discipline and
productivity amongst India's farmers, labourers
and working classes, which was a major reason
for his support of the controversial
Indian Emergency (1975–1977). Jayaprakash
Narayan also sought to use Gandhian methods
to combat organised crime, alcoholism and
other social problems.
 Modern interpretations

• Gandhi's ideas have inspired socio-economic policies in post-

colonial Africa and Asia, but have also been criticised as
impractical and idealistic, especially on the
macroeconomic scale. The main attempts at implementation
have centred on microeconomic initiatives. The proximity of
Gandhian economic thought to socialism has also evoked
criticism from the advocates of free-market economics. To
many, Gandhian economics represent an alternative to
mainstream economic ideologies as a way to promote
economic productivity without an emphasis on material
pursuits or compromising human development.
•
• Gandhi's emphasis on peace, "trusteeship" and co-operation has
been touted as an alternative to competition as well as conflict
between different economic and income classes in societies.
Gandhian focus on human development is also seen as an
effective emphasis on the eradication of poverty, social conflict
and backwardness in developing nations. Gandhian socio-
economic ideas have gained the interest and attention of an
increasing number of people across the world.
•
• Mahatma Gandhi said that seven things will destroy us.
Notice that all of them have to do with social and political
conditions. Note also that the antidote of each of these
"deadly sins" is an explicit external standard or
something that is based on natural principles and laws,
not on social values.
 ------Dr. Stephen R. Covey ( Author of “The Seven Habits Of
Highly Effective People”).
• Wealth Without Work
• Pleasure Without Conscience
• Knowledge Without Character
• Commerce (Business) Without Morality (Ethics)
• Science Without Humanity
• Religion Without Sacrifice
• Politics Without Principle

• Wealth Without Work: This refers to the practice of getting
something for nothing - manipulating markets and assets so
you don't have to work or produce added value, just
manipulate people and things. Today there are professions
built around making wealth without working, making much
money without paying taxes, benefiting from free
government programs without carrying a fair share of the
financial burdens, and enjoying all the perks of citizenship of
country and membership of corporation without assuming
any of the risk or responsibility.
• How many of the fraudulent schemes that went on in the
1980s, often called the decade of greed, were basically get-
rich-quick schemes or speculations promising practitioners,
"You don't even have to work for it"? That is why I would be
very concerned if one of my children went into speculative
enterprises or if they learned how to make a lot of money
fast without having to pay the price by adding value on a
day-to-day basis. Some network marketing and pyramidal
organizations worry me because many people get rich quick
by building a structure under them that feeds them without
work.
 Wealth Without Work
• They are rationalized to the hilt; nevertheless the
overwhelming emotional motive is often greed: "You can get
rich without much work. You may have to work initially, but
soon you can have wealth without work." New social mores
and norms are cultivated that cause distortions in their
judgment. Justice and judgment are inevitably inseparable,
suggesting that to the degree you move away from the laws
of nature, your judgment will be adversely affected. You get
distorted notions. You start telling rational lies to explain
why things work or why they don't.
• You move away from the law of "the farm" into social / political
environments. When we read of organizations in trouble, we
often hear the sad confessions of executives who tell of
moving away from natural laws and principles for a period of
time and begin overbuilding, over borrowing, and over
speculating, not really reading the stream or getting
objective feedback, just hearing a lot of self-talk internally.
Now they have a high debt to pay. They may have to work
hard just to survive - without hope of being healthy for five
years or more. It's back to the basics, hand to the plow. And
many of these executives, in earlier days, were critical of
the conservative founders of the corporations who stayed
• Pleasure Without Conscience: The chief query of the
immature, greedy, selfish, and sensuous has always
been, "What's in it for me? Will this please me? Will it
ease me?" Lately many people seem to want these
pleasures without conscience or sense of responsibility,
even abandoning or utterly neglecting spouses and
children in the name of doing their thing. But
independence is not the most mature state of being - it's
only a middle position on the way to interdependence,
the most advanced and mature state.
• To learn to give and take, to live selflessly, to be sensitive,
to be considerate, is our challenge. Otherwise there is no
sense of social responsibility or accountability in our
pleasurable activities. The ultimate costs of pleasures
without conscience are high as measured in terms of
time and money, in terms of reputation and in terms of
wounding the hearts and minds of other people who are
adversely affected by those who just want to indulge and
 Pleasure Without Conscience
• It's dangerous to be pulled or lulled away from natural law
without conscience. Conscience is essentially the
repository of timeless truths and principles - the internal
monitor of natural law. A prominent, widely published
psychologist worked to align people with their moral
conscience in what was called "integrity therapy."
 Knowledge Without Character
• As dangerous as a little knowledge is, even more dangerous is
much knowledge without a strong, principled character. Purely
intellectual development without commensurate internal
character development makes as much sense as putting a
high-powered sports car in the hands of a teenager who is high
on drugs. Yet all too often in the academic world, that's exactly
what we do by not focusing on the character development of
young people. Some people don't like character education
because, they say, "that's your value system." But you can get
a common set of values that everyone agrees on. It is not that
difficult to decide, for example, that kindness, fairness, dignity,
contribution, and integrity are worth keeping. No one will fight
you on those.
• So let's start with values that are unarguable and infuse them in
our education system and in our corporate training and
development programs. Let's achieve a better balance between
the development of character and intellect.
• The people who are transforming education today are doing it by
building consensus around a common set of principles, values,
and priorities and debunking the high degree of specialization,
 Commerce (Business) Without Morality (Ethics)

• In his book Moral Sentiment, which preceded Wealth of

Nations, Adam Smith explained how foundational to the
success of our systems is the moral foundation : how we
treat each other, the spirit of benevolence, of service, of
contribution. If we ignore the moral foundation and allow
economic systems to operate without moral foundation and
without continued education, we will soon create an amoral,
if not immoral, society and business. Economic and political
systems are ultimately based on a moral foundation.
• To Adam Smith, every business transaction is a moral challenge
to see that both parties come out fairly. Fairness and
benevolence in business are the underpinnings of the free
enterprise system.
• Our economic system comes out of a constitutional democracy
where minority rights are to be attended to as well. The
spirit of the Golden Rule or of win-win is a spirit of morality,
of mutual benefit, of fairness for all concerned. Paraphrasing
one of the mottos of the Rotary Club, "Is it fair and does it
serve the interests of all the stakeholders?" That's just a
moral sense of stewardship toward all of the stakeholders.
 Commerce (Business) Without Morality
(Ethics)
• When people get in trouble, they say that most of their economic
transactions are moral. That means there is something going
on that is covert, hidden, secret. People keep a hidden agenda,
a secret life, and they justify and rationalize their activities.
They tell themselves rational lies so they don't have to adhere
to natural laws. If you can get enough rationalization in a
society, you can have social mores or political wills that are
totally divorced from natural laws and principles.
• I once met a man who for five years served as the "ethics director"
for a major aerospace company. He finally resigned the post in
protest and considered leaving the company, even though he
would lose a big salary and benefit package. He said that the
executive team had their own separate set of business ethics
and that they were deep into rationalization and justification.
Wealth and power were big on their agendas, and they made
no excuse for it anymore. They were divorced from reality even
inside their own organization. They talked about serving the
customer while absolutely mugging their own employees.
 Science Without Humanity
• If science becomes all technique and technology, it quickly
degenerates into man against humanity. Technologies come
from the paradigms of science. And if there's very little
understanding of the higher human purposes that the
technology is striving to serve, we become victims of our
own technocracy. We see otherwise highly educated people
climbing the scientific ladder of success, even though it's
often missing the rung called humanity and leaning against
the wrong wall. The majority of the scientists who ever lived
or living today, and they have brought about a scientific and
technological explosion in the world.
• But if all they do is superimpose technology on the same old
problems, nothing basic changes. We may see an evolution,
an occasional "revolution" in science, but without humanity
we see precious little real human advancement. All the old
inequities and injustices are still with us. About the only
thing that hasn't evolved are these natural laws and
principles - the true north on the compass. Science and
technology have changed the face of most everything else.
But the fundamental things still apply, as time goes by.
 Religion Without Sacrifice
• Without sacrifice we may become active in a church but remain
inactive in its gospel. In other words, we go for the social
facade of religion and the piety of religious practices. There is
no real walking with people or going the second mile or trying
to deal with our social problems that may eventually undo our
economic system. It takes sacrifice to serve the needs of other
people - the sacrifice of our own pride and prejudice, among
other things. If a church or religion is seen as just another
hierarchical system, its members won't have a sense of service
or inner worship. Instead they will be into outward observances
and all the visible accoutrements of religion.
• But they are neither God-centered nor principle-centered. The
principles of three of the Seven Habits pertain to how we deal
with other people, how we serve them, how we sacrifice for
them, how we contribute. Habits 4, 5 and 6 - win-win
interdependency, empathy, and synergy - require tremendous
sacrifice. I've come to believe that they require a broken heart
and a contrite spirit - and that, for some, is the ultimate
sacrifice. For example, I once observed a marriage where there
were frequent arguments. One thought came to me : "These
two people must have a broken heart and a contrite spirit
 Religion Without Sacrifice
• Pride and selfishness will destroy the union
between man and god, between man and
woman, between man and man, between self
and self. The great servant leaders have that
humility, the hallmark of inner religion. I know a
few CEOs who are humble servant leaders -
who sacrifice their pride and share their power -
and I can say that their influence both inside
and outside their companies is multiplied
because of it. Sadly, many people want
"religion," or at least the appearance of it,
without any sacrifice. They want more
spirituality but would never miss a meal in
meaningful fasting or do one act of anonymous
service to achieve it.
 Politics Without Principle
• If there is no principle, there is no true north, nothing you can
depend upon. The focus on the personality ethic is the instant
creation of an image that sells well in the social and economic
marketplace. You see politicians spending millions of dollars to
create an image, even though it's superficial, lacking
substance, in order to get votes and gain office. And when it
works, it leads to a political system operating independently of
the natural laws that should govern - - that are built into the
Declaration of Independence :
• "We hold these Truths to be self-evident, that all Men are created
equal, that they are endowed by their Creator with certain
unalienable Rights, that among these are Life, Liberty, and the
Pursuit of Happiness . . . . "In other words, they are describing
self-evident, external, observable, natural, unarguable, self-
evident laws: "We hold these Truths to be self-evident." The key
to a healthy society is to get the social will, the value system,
aligned with correct principles. You then have the compass
needle pointing to true north - true north representing the
external or the natural law - and the indicator says that is what
 Politics Without Principle
• But if you get a sick social will behind the political will that is
independent of principle, you could have a very sick
organization or society with distorted values. For instance, the
professed mission and shared values of criminals who rape, rob
and plunder might sound very much like many corporate
mission statements, using such words as "teamwork,"
"cooperation," "loyalty," "profitability," "innovation," and
"creativity." The problem is that their value system is not based
on a natural law. Figuratively, inside many corporations with
lofty mission statements, many people are being mugged in
broad daylight in front of witnesses. Or they are being robbed
of self-esteem, money, or position without due process.
• And if there is no social will behind the principles of due process,
and if you can't get due process, you have to go to the jury of
your peers and engage in counterculture sabotage. In the
movie The Ten Commandments, Moses says to the pharaoh,
"We are to be governed by God's law, not by you." In effect he's
saying, "We will not be governed by a person unless that
person embodies the law." In the best societies and
organizations, natural laws and principles govern - that's the
LECTURE:5
Details Patents
Definition It is a monopoly right,
granted to a person who
has invented a new and
useful article. It consists
of an exclusive right to
manufacture the new
article invented or
manufacture an article
according to an invented
process for a limited
period. After the expiry of
the duration of the patent,
anybody can make use of
the invention.
Trademarks Copyright
It is a visual sample in the It is the negative right
form of a word, device, name, which prevents the
letter, numerical, brand, appropriation of the
heading, signature or label or fruits of the man’s work,
any combination of these, labour or skill by another
applied or used in relation to person. This protection
goods so as to indicate a is given by making any
connection, in course of the person from reproducing
trade between the gods and or copying any ‘literary,
some person who is the dramatic, musical or
proprietor or registered user artistic work’ without the
of that trademark. The identity consent of owner of the
of that person may or may not copyright in that work.
be disclosed.

Dictionary Document conferring Devise or name legally Exclusive right to print,

meaning right, title etc. to sell some registered to represent a publish, perform etc. of
invention or process so company or a product, material.
protected. distinctive characteristic.
Details Patents Trademarks Copyright

Governing ActThe Indian Patent Act, The trade and The copyright act 1957. (whole of
1970. (extends to the merchandise Marks act India). Amendments made on
whole of India) 1958. (whole of India) 1984 and 1992.

Terms Every patent granted On registration of a In published literary, dramatic,

under this act shall be in trademark, the registrar musical and artistic work (other
respect of the process of will issue a certificate of than a photograph). Sixty years fro
manufacture of food or a registration in the the beginning of the calendar year
medicine or drug, 5 prescribed form, with the next following the year in which
years from the date of seal of trademarks the author dies (for joint, who dies
sealing of the patent, registry. The registration last). In case of a photograph, the
whichever is shorter. I will be for a period of 7 copyright shall subsist for 50 years
respect of any other years but may be renewed from the beginning of the calendar
invention, 14 years from from time to time on year following the year of
the date of patent. A payment of the prescribed publication. For cinematograph
patent shall cease to renewal fee. A trademark films or records, until 50 years
have effect on the removed from the register from the beginning of the calendar
expiration of the for failure to pay the year next following the year in
aforesaid period, unless renewal fee can be which it is published.
it is renewed. restored on application.
Details Patents Trademarks Copyright

Terms Every patent granted On registration of a In published literary, dramatic,

under this act shall be in trademark, the registrar musical and artistic work (other
respect of the process of will issue a certificate of than a photograph). Sixty years fro
manufacture of food or a registration in the the beginning of the calendar year
medicine or drug, 5 prescribed form, with the next following the year in which
years from the date of seal of trademarks the author dies (for joint, who dies
sealing of the patent, registry. The registration last). In case of a photograph, the
whichever is shorter. I will be for a period of 7 copyright shall subsist for 50 years
respect of any other years but may be renewed from the beginning of the calendar
invention, 14 years from from time to time on year following the year of
the date of patent. A payment of the prescribed publication. For cinematograph
patent shall cease to renewal fee. A trademark films or records, until 50 years
have effect on the removed from the register from the beginning of the calendar
expiration of the for failure to pay the year next following the year in
aforesaid period, unless renewal fee can be which it is published.
it is renewed. restored on application.
Cops question Raj Thackeray at home; arrest likely
Related Articles• I feel jittery to say I am from Delhi: Shah Rukh

• What drove MNS to violence

February 13, 2008 10:59 IST

Last Updated: February 13, 2008 14:41 IST

Acting upon a complaint filed against Maharashtra Navnirman Sena chief

Raj Thackeray for inciting communal violence, Mumbai Police on

Wednesday went to his residence in Dadar and recorded a statement
from him.
The development sparked off speculation that the MNS chief might be

arrested and produced before the court in Vikhroli in suburban

Mumbai.
Dozens of MNS workers have been detained by the police since Tuesday

night in anticipation of trouble in the event of Raj Thackeray's arrest. 

Maharashtra Deputy Chief Minister R R Patil, who cut short his Vidarbha

tour, met top police officials in state secretariat.



Chief Minister Vilasrao Deshmukh, who is in his hometown Latur, is



expected to return to the city later in the day.



The police has given ample indication that arrests of Raj Thackeray and


Samajwadi Party leader Abu Azmi are mandatory as they have been
charged under cognizable and non-bailable offences.

Stray incidents of stone throwing and arson were reported from the


metropolis and other parts of the state as the campaign against north
Indians by the MNS entered the tenth day.
•
Police said on Tuesday night, three taxis and a BEST bus were damaged in the
stone pelting at Goregaon, Bhoiwada, Deonar and Bhandup areas
respectively in the metropolis.
Police have registered cases but no arrest had been made so far.

The state government has requisitioned paramilitary forces to meet any

eventuality and security has been beefed in different parts of the city in case
they are arrested.
Incidents of stone pelting and assault were also reported from Nashik, Pune,
Jalna, Beed, Aurangabad and Latur towns. Public property, including state
transport buses were targeted in most of the cases.
The city police had registered cases on Sunday night against Thackeray and
Azmi at separate police stations under section 153 (wantonly giving
provocation with intent to cause riot), 153 A (promoting enmity between
groups on the basis of places of birth, residence etc) 153 D (assertions
prejudicial to national integration) and 117 (abetting the commission of any
offence by the public) of the Indian Penal Code.
 Police have registered cases but no arrest had been made so far.

The state government has requisitioned paramilitary forces to meet any

eventuality and security has been beefed in different parts of the city in case
they are arrested.

Incidents of stone pelting and assault were also reported from Nashik, Pune,
Jalna, Beed, Aurangabad and Latur towns. Public property, including state
transport buses were targeted in most of the cases.

The city police had registered cases on Sunday night against Thackeray and
Azmi at separate police stations under section 153 (wantonly giving
provocation with intent to cause riot), 153 A (promoting enmity between
 LECTURE:7
Attitude, Perception, Beliefs & Life Positions
• Attitude: Attitudes are predisposed, evaluative feelings of people
about objects, people or events. Attitudes express their favorable or
unfavorable feelings about something.
• Attitudes form right from our childhood experiences, our background,
our learning situations, and are reinforced in adult life.
• It is more difficult to change our attitude than to change our perception.
• Perception: Perception is the process of becoming aware of situations
and interpreting our sensory impressions, in order to give meaning
to our environment.
• In order to change our Attitudes, we first have to change our
perceptions.
• To initiate the process of perception _
1. We must have an external environment
2. our senses must receive some massages from external environment
3. The brain organizes and interprets them to give meaning to them
according to our frame of reference.
•
• MKS - EHICS Lecture 7 70
 Attitude, Perception, Beliefs & Life Positions
• Beliefs: Beliefs are the foundation of one’s value system.
• Beliefs are ideas or perceptions that people hold clear and give ordinance
to.
• What we are, communicates more than what we say or do.
• If your destination is wrong, using techniques and strategies will only make
you reach to wrong place sooner.
Character Ethics


• Integrity
• Honesty
• Justice
• Modesty
• Simplicity
• Excellence
• Courage
• Patience etc.
•

MKS - EHICS Lecture 7 71

 Attitude, Perception, Beliefs & Life Positions
• Life Positions 1 – I’m Not OK You are OK.
• Life Positions 2 – I’M Not OK, You are Not OK.
• Life Positions3 – I’M OK, You are Not OK.
• Life Positions 4 – I’M OK, You are OK.


Mahatma Gandhi:


• A person cannot do right in one department of life, whilst he is occupied in

doing wrong in another. Life is one individual whole.


John D. Rockefeller:
• I believe in the sacredness of a promise; that character – not wealth or
power is – of supreme worth.
•
Henry Ford:

• A business that makes nothing but money, is a poor kind of business.



Richard Hoayen:


• There is something sick about a person whose only interest is money and
the same thing can be said for a company whose sole goal is profit.
•

MKS - EHICS Lecture 7 72