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BUSINESS ETHICS & INDIAN ETHOS IN
MANAGEMENT
Ethics culture and values,
Importance of culture in org,
Indian ethos and value systems,
concepts of dharma, Nishkama karma and purusharthas;
Model of management in Indian socio political environment .
Work ethos Indian heritage in production and consumption
N Murthy to head ethics council
BS Reporter / Mumbai February 12, 2009, 0:53 IST
Taking a cue from the recent Satyam Computer Services
fraud case that has hit the corporate image of India, software
body Nasscom announced the formation of a Corporate
Governance and Ethics Council today.
ETHICS
Ethics is a set of standards, or a code or value system,
worked out from human reason and experience,
by which free human actions are determined as
ultimately right or wrong, good or evil
If an action agrees with these standards, it is ethical;
if not , it unethical
MORALITY
the standards that
an individual or
a group
has about what is
right and wrong or
good and evil
MORAL STANDARDS
The norms about the kinds of actions believed to
be
morally right and wrong
as well as the values placed on the kinds of
objects believed to be
morally good and morally bad
BUSINESS ETHICS
a specialised study of
moral right and wrong
that concetrates on moral standards
as they apply to business institutions,
organisations and behavior
ARGUMENTS AGAINST…………….
in a free market economy, the persuit of
profit will ensure maximum social benefit
a managers most important obligation is to
the company
Business ethics is limited to obeying the law
ARGUMENTS SUPPORTING ETHICS
ethics applies to all human activities
business cannot survive without ethics
ethics is consistent with profit seeking
customers and employees care about
ethics
RABINDRANATH TAGORE
The moral side represents training of unselfishnesss, control desire, the
spiritual side represents sympathy and love. They should be taken
together and never seperated
We long for things not because they are great in themselves, but
because they are great in themselves, but because our greed
exaggerates them………These exaggeratins ……..break harmony of our
life at every step, we lose the true standards of life
VIVEKANANDA
all the secrets of success is there to pay as
much attention to the means as to the end
Ethics itself is not the end
MAHATMA GHANDHI
honesty is the best policy
trusteeship
SRI AUROBINDO
the kernel of the true ethical being remains the
same will, character, self discipline, self
mastery
PURUSHARTHA
These four steps are Dharma, Artha, Kama and Moksha.
The word Dharma means that which holds society and the world.
By following its rules, one becomes virtuous.
For our purpose we may describe Dharma as right conduct.
By Artha we mean wealth, family, friends, education etc.
These should be earned in the right way. That can be
done only by following the rules of Dharma.
If we observe Dharma in the right way, we earn the right
kind of Artha. The first leads to the second.
Kama means desire or love. This desire should be
moral.
If we practise Dharma and earn Artha in the right
way, our Kama too will be of the right type
Moksha is the last step in the journey of man’s life.
The first three steps will naturally lead to the last step.
If, however, we make a mistake in the earlier steps, we will not reach the
last step.
The word Moksha means liberation. A person who is liberated has no
further birth or death.
So, he need not suffer the pains and enjoy the small pleasures of the
earth.
ISSUES IN BUSINESS ETHOS
Objectives of business
Owners of business
Customers
Employees
Creditors
Government
Competitive institutions
Local community
National interest
ISSUES IN BUSINESS ETHOS
Objectives of business
maximum profit, reasonable profit
social, human and national ,
ISSUES IN BUSINESS ETHOS
Owners of business
investment on profitable project
risk in establishing new business
safeguard interest of minority shareholders
info to every member of the progress
ISSUES IN BUSINESS ETHOS
Customers
quality, price and usability
purity and safety
pricing of goods
correct measure and weight
protection of consumer right
warranty
misleading ad and publicity
MRTP
ISSUES IN BUSINESS ETHOS
Employees
appointment
promotion
transfer
security
training and development
wages and salaries
labour welfare
ISSUES IN BUSINESS ETHOS
Creditors
utilisation of loans on profitable schemes
observation of terms and conditions of loan
maintaining of proper accounts of loan
timely payment of interest
timely repayment of loans
ISSUES IN BUSINESS ETHOS
Government
payment of taxes
proper assessment of taxes
implementing government policies
maintaining proper accounts
donation to political parties
ISSUES IN BUSINESS ETHOS
Competitive institutions
while criticizing the policies of competing
institutions ethical considerations are
necessary
ISSUES IN BUSINESS ETHOS
Local community
health, education, living standards (coke, tata)
waste disposal
social welfare and community development
environment protection
priority in employement
INDIAN ETHOS AND INSIGHTS
Divinity of human being
Balance
Individual
Divine element in individual
Based on scriptures
Emphasis on values, human and ethics
Emphasis on duties and responsibilities
All work is worthy
INDIAN ETHOS AND INSIGHTS
Divinity of human being
one can be a perfect being
INDIAN ETHOS AND INSIGHTS
Balance
desire and desirelessness
even a king be the knower of reality eg Janaka
INDIAN ETHOS AND INSIGHTS
Individual
if you are good world is good
INDIAN ETHOS AND INSIGHTS
Divine element in individual
individual is a portion of cosmic consciousness
INDIAN ETHOS AND INSIGHTS
Based on scriptures
veda,
INDIAN ETHOS AND INSIGHTS
Emphasis on values, human and ethics
knowledge is not power but character
INDIAN ETHOS AND INSIGHTS
Emphasis on duties and responsibilities
INDIAN ETHOS AND INSIGHTS
All work is worthy
work is worship
Bhagwat-Gita
Model of management in Indian socio political environment .
the most important tenets of Indian model
HUMAN VALUES
HOLISM
There are three types of moral theories in ethics
utilitarian : greatest good for greatest number
all people have basic rights
theory of justice
Business Ethics:
Five part structure
the specification of moral judgment
moral judgment and moral standard
justification of moral judgment
logical reasoning and moral judgment
moral judgment and moral responsibility
Relevance of value in Management;
dharma or divine nature –
east
Values
integrity - west
Relevance of value in Management;
Integrity
wholeness
goodness
courage
self discipline
Dharma
spirit
righteousness (godliness)
fearlessness
Values vs Skills
To become need value , to do we need skill
Becoming ( need value) must precede doing (skill)
Values are internal skill is external
Why value based holistic management
Value Driven Management
Managerial Effectiveness
Value orientation (is central)
Pure mind
Four traditional methods of mind purification
GYANA
Path of knowledge
Knowing self
RAJA
Path of mind control
meditation
BHAKTHI
Path of devotion
Self surrender
KARMA
Path of action
Selfless action
Holistic Approach:
Based on
spiritual principle of unity, oneness, non dual
universe is undivided whole
entire humanity is ONE
Ethical relativism
morality is just function of what a
particular society happens to believe
Ethics Management
•A helping hand rather than accusing finger
•Prevention rather than repression
•Tailor made approach rather than uniform approach
•Process orientation rather than product orientation
•Evolving rather than starting from nothing
•Integrated effort rather than fragmented effort
•Continuing attention rather than single
Role of organisational culture in ethics
Tool to promote ethical corporate behavior
fostering core values based on ethics
focus on dominant beliefs
Structure of ethics management
Control
Guidance
Management
Legal framework (weak)
Leadership based on service
Adaptable, flexible
organization
Internal policies (informal)
Formal & informal
socialization
Practices, traditions evolved
by adaptation
Shared values
The elements of ES according to their function in a Mexican NPO
http://soc.kuleuven.be/io/ethics/paper/
Ethical analysis skills
Ethics committee
ethics steering committee for
ethics policy formulation
guidance
co ordination
up dating policy
Communicating ethics
Communicating formal or informal
top management commitment , leadership
are communicated in many ways
speeches
directives
company publications
policy statements
most important actions
Ethical Audit
Before launching on an audit
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Purpose
Type and topics
Context
Process
People
Analysis and reporting
Follow up
Corporate governance
set of systems and processes
ensure that company is managed in the best interests
of stake holders
Social
responsibility
Business Ethics
Public Policy
Business Policy