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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 1 2 3 4 5 6 7 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