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.

ETHICSEthics 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 ETHICSa 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 ETHICSethics 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

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.

PURUSHARTHA

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 businessOwners of businessCustomersEmployeesCreditorsGovernmentCompetitive institutionsLocal communityNational interest

ISSUES IN BUSINESS ETHOS

Objectives of businessmaximum profit, reasonable profitsocial, human and national ,

ISSUES IN BUSINESS ETHOS

Owners of businessinvestment on profitable projectrisk in establishing new businesssafeguard interest of minority shareholdersinfo to every member of the progress

ISSUES IN BUSINESS ETHOS

Customersquality, price and usabilitypurity and safetypricing of goodscorrect measure and weightprotection of consumer rightwarrantymisleading ad and publicityMRTP

ISSUES IN BUSINESS ETHOS

Employeesappointmentpromotiontransfersecuritytraining and developmentwages and salarieslabour welfare

ISSUES IN BUSINESS ETHOS

Creditorsutilisation of loans on profitable schemesobservation of terms and conditions of

loanmaintaining of proper accounts of loantimely payment of interesttimely repayment of loans

ISSUES IN BUSINESS ETHOS

Governmentpayment of taxesproper assessment of taxesimplementing government policiesmaintaining proper accounts donation to political parties

ISSUES IN BUSINESS ETHOS

Competitive institutionswhile criticizing the policies of competing institutions ethical considerations are necessary

ISSUES IN BUSINESS ETHOS

Local communityhealth, education, living standards (coke, tata)waste disposalsocial welfare and community developmentenvironment protectionpriority in employement

INDIAN ETHOS AND INSIGHTS

Divinity of human beingBalanceIndividualDivine element in individualBased on scripturesEmphasis on values, human and ethicsEmphasis on duties and responsibilitiesAll work is worthy

INDIAN ETHOS AND INSIGHTS

Divinity of human beingone can be a perfect being

INDIAN ETHOS AND INSIGHTS

Balancedesire and desirelessnesseven a king be the knower of reality eg Janaka

INDIAN ETHOS AND INSIGHTS

Individualif you are good world is good

INDIAN ETHOS AND INSIGHTS

Divine element in individualindividual is a portion of cosmic consciousness

INDIAN ETHOS AND INSIGHTS

Based on scripturesveda,

INDIAN ETHOS AND INSIGHTS

Emphasis on values, human and ethicsknowledge is not power but character

INDIAN ETHOS AND INSIGHTS

Emphasis on duties and responsibilities

INDIAN ETHOS AND INSIGHTS

All work is worthywork is worship

Bhagwat-Gita

Model of management in Indian socio political environment .

the most important tenets of Indian modelHUMAN VALUESHOLISM

There are three types of moral theories in ethicsutilitarian : greatest good for greatest numberall people have basic rightstheory of justice

Business Ethics:

Five part structure

the specification of moral judgmentmoral judgment and moral standardjustification of moral judgmentlogical reasoning and moral judgmentmoral judgment and moral responsibility

Relevance of value in Management;

Values

dharma or divine nature – east

integrity - west

Relevance of value in Management;

Integrity wholenessgoodnesscourageself discipline

Dharma spiritrighteousness (godliness)fearlessness

Values vs Skills

To become need value , to do we need skillBecoming ( need value) must precede doing (skill)Values are internal skill is external

Why value based holistic management

1 Exploitation of nature2 Man –

machine

equation

Value Driven Management

Managerial Effectiveness

Value orientation (is central)

Pure mind

Four traditional methods of mind purification

GYANA KARMABHAKTHIRAJA

Path of knowledgeKnowing self

Path of mind controlmeditation

Path of devotionSelf surrender

Path of actionSelfless action

Holistic Approach:

Based on

spiritual principle of unity, oneness, non dualuniverse is undivided wholeentire humanity is ONE

Ethical relativismmorality is just function of what a

particular society happens to believe

•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

Ethics Management

Tool to promote ethical corporate behaviorfostering core values based on ethicsfocus on dominant beliefs

Role of organisational culture in ethics

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 Ethical analysis skills

The elements of ES according to their function in a Mexican NPO

http://soc.kuleuven.be/io/ethics/paper/

Ethics committeeethics steering committee for

ethics policy formulationguidanceco ordinationup dating policy

Communicating ethics

Communicating formal or informaltop management commitment , leadership

are communicated in many ways

speechesdirectivescompany publicationspolicy statementsmost important actions

Ethical Audit

Before launching on an audit

1 Purpose2 Type and topics3 Context4 Process5 People6 Analysis and reporting7 Follow up

Corporate governanceset of systems and processesensure that company is managed in the best interests of stake holders

Social responsibility Business Ethics Business Policy

Public Policy