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Shyam .G.T Centre for mba Kannur university
CHAPTER 1 Ethics
Ethics is the branch of study dealing with what is the proper course of action for man. It answers the question, "What do I do?".It is the study of right and wrong in human endeavours. At a more fundamental level, it is the method by which we categorize our values and pursue them. Do we pursue our own happiness, or do we sacrifice ourselves to a greater cause? Is that foundation of ethics based on the Bible, or on the very nature of man him, or neither?
Why is Ethics important?
Ethics is a requirement for human life. It is our means of deciding a course of action. Without it, our actions would be random and aimless. There would be no way to work towards a goal because there would be no way to pick between a limitless numbers of goals. Even with an ethical standard, we may be unable to pursue our goals with the possibility of success. To the degree which a rational ethical standard is taken, we are able to correctly organize our goals and actions to accomplish our most important values. Any flaw in our ethics will reduce our ability to be successful in our endeavours.
What are the key elements of a proper Ethics?
A proper foundation of ethics requires a standard of value to which all goals and actions can be compared to. This standard is our own lives, and the happiness which makes them liveable. This is our ultimate standard of value, the goal in which an ethical man must always aim. It is arrived at by an examination of man's nature, and recognizing his peculiar needs. A system of ethics must further consist of not only emergency situations, but the day to day choices we make constantly. It must include our relations to others, and recognize their importance not only to our physical survival, but to our well-being and happiness. It must recognize that our lives are an end in themselves, and that sacrifice is not only not necessary, but destructive.
What is Ethics
A few years ago, sociologist Raymond Baumhart asked business people, "What do ethics mean to you?" Among their replies were the following: "Ethics has to do with what my feelings tell me is right or wrong." "Ethics has to do with my religious beliefs." "Being ethical is doing what the law requires." "Ethics consists of the standards of behaviour our society accepts." "I don't know what the word means." These replies might be typical of our own. The meaning of "ethics" is hard to pin down, and the views many people have about ethics are shaky. Like Baumhart's first respondent, many people tend to equate ethics with their feelings. But being ethical is clearly not a matter of following one's feelings. A person following his or her feelings may recoil from doing what is right. In fact, feelings frequently deviate from what is ethical. Nor should one identify ethics with religion. Most religions, of course, advocate high ethical standards. Yet if ethics were confined to religion, then ethics would apply only to religious people. But ethics applies as much to the behaviour of the atheist as to that of the saint. Religion can set high ethical standards and can provide intense motivations for ethical behaviour. Ethics, however, cannot be confined to religion nor is it the same as religion.
Being ethical is also not the same as following the law. The law often incorporates ethical standards to which most citizens subscribe. But laws, like feelings, can deviate from what is ethical. Our own pre-Civil War slavery laws and the apartheid laws of present-day South Africa are grotesquely obvious examples of laws that deviate from what is ethical. Finally, being ethical is not the same as doing "whatever society accepts." In any society, most people accept standards that are, in fact, ethical. But standards of behaviour in society can deviate from what is ethical. An entire society can become ethically corrupt. Nazi Germany is a good example of a morally corrupt society. Moreover, if being ethical were doing "whatever society accepts," then to find out what is ethical, one would have to find out what society accepts. To decide what I should think about abortion, for example, I would have to take a survey of American society and then conform my beliefs to whatever society accepts. But no one ever tries to decide an ethical issue by doing a survey. Further, the lack of social consensus on many issues makes it impossible to equate ethics with whatever society accepts. Some people accept abortion but many others do not. If being ethical were doing whatever society accepts, one would have to find an agreement on issues which does not, in fact, exist. What, then, is ethics? Ethics is two things. First, ethics refers to well based standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Ethics, for example, refers to those standards that impose the reasonable obligations to refrain from rape, stealing, murder, assault, slander, and fraud. Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty. And, ethical standards include standards relating to rights, such as the right to life, the right to freedom from injury, and the right to privacy. Such standards are adequate standards of ethics because they are supported by consistent and well founded reasons. Secondly, ethics refers to the study and development of one's ethical standards. As mentioned above, feelings, laws, and social norms can deviate from what is ethical. So it is necessary to constantly examine one's standards to ensure that they are reasonable and wellfounded. Ethics also means, then, the continuous effort of studying our own moral beliefs and our moral conduct, and striving to ensure that we, and the institutions we help to shape, live up to standards that are reasonable and solidly-based
Ethics in business are nothing but the do‟s and don‟ts by the business users in the business. In other words it could be referred as set of principles a business man ought to follow. ”There should be business ethics” means that the business should be conducted according to certain self recognized moral standards. Few unethical elements in the present day business are cheating, stealing, lying, bribing, corrupting etc. A business man should be aware of the ethics in the business and should follow them in order to maintain ecological balance in the society.
The study and examination of moral and social responsibility in relation to business practice and decision making in business is known as “Business Ethics”. The term “business” is commonly referred to the commercial activities achieved at making profit. But gradually there is a substantial change in the way in which people viewed the business. In the past primary objective of a business was profit maximization but the present perspectives on business objectives are not maximization.
success should be shared by all concerned.The business is viewed as subsystem to the social system. The spread of education and awareness among consumers about their rights has made the business community to conduct business on ethical principles. discriminate use of natural resources. Unfortunately. VI. The tendency of big business firms is always to dominate the market and drive away the small scale industries out of the market. The way the business functions 2. employees. consumers. IV. Profit is also a result of group efforts. Need and Importance of Business Ethics: The following points explain the need for and importance of business ethics: I. III. The organization of the business 3. This is because any type of social system is influenced by 1. Business ethics can be used to check malpractices like adulteration. Therefore. consumers are the most neglected and exploited group. VII.It is profit maximization in long run besides fulfilling the ethics in the business. Interest of Industry: Business ethics are necessary to safeguard the interests of small scale business firms. Exploitation of consumers. competitors and government. consumers. Consumer Movement: The growth in consumer movement is also another important factor that has necessitated the need for business ethics. V. shareholders. A business is regarded as social institution forming integral part of social systems . Profit is a sing of business skill and talent. Compliance to ethical standards will ensure (a) protection of consumer rights. Business ethics will help to promote and protect the interest to various groups. Transmission and diffusion of information. New ideas etc. etc. business is essentially meant for satisfaction of consumer wants. Buyer‟s Market: There has been a structural change in the concept of business. distributors. Employees. II. Suppliers and others contribute to the success of the business. The relationship of business with society has various dimensions such as its relations with sshareholder. In fact. (c) protection of worker‟s interests. Social Responsibility: Business ethics is a means of making business socially responsible for its actions. Concept of Socialism: The concept of socialism in business states that gains of a business must be shared by all and just by the owner of business. employees. unfair trade practices and to make the working of business consumer oriented. The application of business ethics will help to confer and implement consumer rights. (b) public accountability. is quite common in all types of business. Small scale units can establish their position and fight for their rights if the industry follows a code of ethics. 5. Innovations 4. Protection of Consumer rights: Consumer is the centre of all business activities. The large scale production and increased competition in the market has changed the business scene from a seller‟s market to a buyer‟s . Better Relations with the Society: Business ethics is needed to develop good relations between business and society. The concept of profit has been gradually taken over by consumer satisfaction. and (d) proper utilization of natural resources.
5. 8. 1. To provide sufficient and unnecessary information about the product. Responsibility to Consumers To improve the efficiency of the business by a) Increasing productivity. 2. VIII. Social Responsibilities of Business: A firm expresses its responsibility to the society by reacting in either or both of the following two ways. To be pollution free and maintain ecological balance. To be transparent 3. To invest more in research and development so as to improve the standard of living of the society. ethical and unethical. etc. 2. To establish better working conditions 3. To contribute to national effort to build up a better society . sincerity. The manner in which it carries out its own business activities 2. 4. To facilitate research and development to meet the customer requirements. To recognize and appreciate the work of the employees and reward them or to promote them. It also brings an element of honesty. To provide pre-purchase and post purchase service to the consumers. and improvement in social.market. They have either direct or indirect effect on the society. 3. Beneficial to Business and Society: Ethics suggests what is good and bad. To ensure them good dividends Responsibility to Employees: 1. To include in social welfare activities 6. business ethics is needed to redefine the traditional concept of profit and replace it by a balance between profit and consumer satisfaction. 6. To provide them fair work standards and norms. 7. To allow them to participate in decision making 4. c) Smoothening distribution system. The welfare activities it takes upon itself as an additional function Responsibility to Share Holders: 1. To offer employees fair wages 2. To improve the efficiency of business operations. To install grievance handling cell. consumer and labor welfare. To educate the employees by adopting proper training methods. economic and cultural values of the society. right and wrong. To offer the products at reasonable prices. Society is also benefited by the introduction of business ethics. It ensures healthy and competitive business atmosphere. and human touch to business activities. 3. fairness. To maximize imperfections in distribution systems 5. Responsibility to Community: 1. In a changed situation. 4. b) Improving quality. To make the shareholders feel secured by protecting their investments 2. to businessmen. 1. 4. To provide labour welfare activities 5. To enable them to involve in decision making. To develop alternative recourses thereby preventing current resources being used from exhaustion.
labelling and packaging. DEFORESTATION: The results of deforestation for industrialization and urbanization are vulnerable. EXAMPLE: Publishing false information about competitors. Ensure payment of fair wages and fair treatment to the internal customers as well as external customers and share holders. politicians etc. air production etc. Do not destroy or distort competition. HEALTH: The business users must be conscious about the health of the society and behave responsibility for their health. black marketing or profiteering. 3. 7. 6. 5. Refrain from secret kick backs or pay logs to customers. 4. to control production. Do not furnish the image of competitors by unfair practices. 10. EXAMPLE: Textile merchants in general clear the defective stock under the guise of discounts. FEW ENVIRONMENTAL CONCERNS: One important factor a business man must not neglect is his responsibility to environment. WATER: Through people are keen in this issue by constructing dams and reservoirs the bi products and industry waste couldn‟t find a better discharge channel than this. 2. IMPORTANT ETHICAL PRICIPLES THAT A BUSINESS SHOULD FOLLOW: 1. administrators. It is resulting in destruction of wild life. Hence sure measure must be take in this context to keep the water free from pollution. HABITAT: The people who are living in forests and remote areas love their shelter and livelihood in the vent of industrialization. Pay taxes and discharge other obligation promptly. suppliers. EXAMPLE: cellular network providers will be in informal castle agreements to control the traffic. Treasure sincerity and accuracy in advertising. EXAMPLE: Management of theatres sell the tickets for higher prices during the initial days of release of a film starred by a crazy hero and heroine. Do not deceive or cheat the customers by selling substandard or defective products by under measurement or any other means. But in practice such an ideal business doesn‟t exist. Do not form castle agreements. Make accurate business records so that transparency to the share holders can be achieved. 8. Do not report to hoarding. EXAMPLE: Ads of automobiles in general provide false details in every aspect. bribing the retailers etc. . increase in price of wood.If a firm full fills all the above mentioned responsibilities then it is said to be following the business ethics. even informal. prices etc to the common detriment. The abundant natural resources are getting exhausted after 19th century due to rapid industrialization. LAND: The worst effected are as their cattle starve and they travel even increasing distance for grazing due to industrialization and urbanization. 9.
can exist on unethical means. in its own interest.making company becomes a nuisance and a burden to the economy and has not right to exist in the market place. and at what cost. a company which can not make profits and makes losses. not to make profits. This is like saying that a company can make profits only through unethical means. at any cost discharge its social responsibility. BUSINESS ETHICS AND PROFIT: Frequently the impression of most people is that ethics and profits are mutual. –Formulation a code of conduct for their members which should contain code of ethics. so that it can discharge its social responsibilities and welfare commitments. it is unethical. to make losses.HOW TO IMPLEMENT BUSINESS ETHICS: Trade associations can be formed by the business users which should bolsters efforts of running any business with ethics. –Praising and rewarding those firms and business users who keep up the ethics in business & by publishing. it is unethical. Dyes in "The Social Relevance of Business” had stated"As a Statement of purpose. but more importantly it is. for its employees. only ethical companies which discharged its social responsibilities. It is unethical. In fact. promotes inefficiency and most importantly. opposed to one another and that if a company is ethical. it may forget about making profits. But how much profits to make. Hence. A professional has to have autonomy. Resorting to unethical behaviour or disregarding social welfare is like calling for its own doom.B. it has no business to force its employees into economic insecurity. People also frequently seem to believe that a profitable company must necessarily be unethical. No business. business ethics dictates that the first responsibility of business is to remain profitable and generate revenue fro the shareholders and the society. for a company. that have survived competition and turbulent changes through the years and have contributed to social welfare and have contributed to flourished undiminished. Rather. Another fact which the business user must realize is the management and ownership must be separated because the owners always tend for profit maximization where as the managers case for ethics as they work for fixed salaries. which is highly unethical. it is not even accurate. A more realistic statement has to be more complicated. considered from all angles. for very long. upsets the economy. does not make wealth for its shareholders. Managers must be a professional who possesses systematic knowledge and skill to perform certain responsible functions with authority and who is bound by certain ethics in the use of his knowledge and skill. maximising of profit is not only unsatisfying. the first and foremost ethical obligation of every business is to make profits for its shareholders. meet its welfare commitments and jeopardises the future of its employees. misutilises scarce national resources can not pay back creditors. Such a loss. NOT to make profit. or in total disregards to its social concern. The corporation is a creation . Thus instead of profits being contradictory to ethics. for itself. Nothing can be more have ethical companies made profits. can not. He/she has enormous responsibilities and shall not use his/her knowledge skill and authority unscrupulously shall not knowingly do distribute to his/her customers. Trade association can promote business ethics in business user by –Educating the members of the association and by consistent persuasion. to remain ethical and socially responsible. Moreover. the means and methods of making it. Because. however great or strong or wealthy it may be at present. Thus business needs. for its creditors and most importantly. As V.that is the ethical question. make huge liabilities.
INTEGRATED VIEW OF ETHICS. etc.of society whose purpose is the production and distribution of needed if the whole is to be accurate: you cannot drop one element without doing violence to facts. business can play a very significant role in the modernisation and development of the country. but a multitude of alternatives. The interrelated dimensions enhance the sense of belongingness • NATURE OF ETHICS IN BUSINESS: Most businesses encounter two types of ethical problems known as overt and covert ethical problems. But this will first require it to come out from its narrow mentality and even narrower goals and motives. Unethical actions and decisions may yield results only in the very short run. But the individual is uncertain whether he will be provided with the employment. Business needs to function as responsible corporate citizens of the country. again and again. capital investment etc. Society and law deals with ethics and morality. business is a part of moral structure and moral ethics. marketing and personnel policies. Decisions either ethical or unethical have wide ramifications. They are clear and reprehensible. Characteristics of Ethical Decisions in Business Ethical decisions differ according to an individual's perspective. To survive in the market. clear and have deft ethical solutions. Adam smith. Individual views the ethical decision in his or her frame of reference or value system. Morality and ethics has no role in business. Milton Friedman." Business needs to remain ethical for its own good. Need for Business Ethics All businesses exist and operate within society and therefore they should contribute to welfare of society. business is required to conduct itself ethically and to run activities on ethical lines. quickly growing and even more quickly dying and forgotten. Intersection of business and morality and ethics. Talbot parsons views are that Business and morality are interrelated and are guided by factors such government and market system and law and society. . Hence. ethical decision does not have a unique solution. SEPARATISTS VIEWS OF ETHICS. It is that organ of the society that creates wealth for the country. an individual seeking employment in government office bribes the officials. The consequences of most unethical decisions are ambiguous in nature. 3D OF ETHICS: • • UNITARIAN VIEW OF ETHICS. Doing so would lay a strong foundation for the business for continued and sustained existence. All over the world. Hence. collusion. businesses should gain loyal customers and perform social responsibility. For instance. it has been demonstrated that it is only ethical organisations that have continued to survive and grow. whereas unethical ones have shown results only as flash in the pan. if it chooses to do so. Whereas covert ethical situations occur in corporate acquisitions. hence affect the other situations. For the long existence and sustained profitability of the firm. Over ethical problems deal with bribery. it is influence by the government and market systems. ethical behavior and business should be integrated in a new era called business ethics. theft. says business in order to flourish should concentrate on its goals of profit maximization. They are complex. Ethical or unethical decisions depend upon individual actions.
much operate on ethical grounds and discharge their social obligations to survive in the long-run. “the managers of the biggest companies know as a business gets larger. the public takes more interest in it because it has a greater impact on the community. This leads to the assumptions of greater social responsibilities”. . Thus. Another philosopher Theodore Levitt was of the view that social values would dominate business values if business concerned themselves with ethics. Milton Friedman was of the view that the aim of the business is to earn profits by utilizing the resources and engaging in open and free competition. without deception or fraud. The antennae of these managers are tuned to public opinion and they react to it. business either big or small. According to George A Steiner. They seek to maintain a proper image of their company in the public mind.
3. BASIC PRINCIPLES OF MANAGEMENT AS PER ANCIENT INDIAN WISDOM AND INSIGHT: There are 6 basic principles. also. Paraspar Devo Bhav: Regard the other person as a divine being. all of us enjoy the highest good both material and spiritual. Indian Ethos is all about what can be termed as “national ethos”. 7. Atmana Vindyate Viryam: Strength and inspiration for excelling in work comes from the Divine. All of us have the same consciousness though our packages and containers are different. God within. spiritual readings and unselfish work. 4. . so we succeed. Of course here. Parasparam bhavayantah shreyah param bhavapsyathah: By mutual cooperation. He can bring about not only personal development. only if man chooses willingly to collaborate with God and actively participates in the affairs of the society by right action under his guidance and grace. the body of knowledge which derives its solutions from the rich and huge Indian system of ethics (moral philosophy) is known as Indian Ethos in Management (IEM). Therefore a human being has immense potential power or energy for self – development. through prayer.CHAPTER 2 INDIAN ETHOS FOR MANAGEMENT: Cambridge Advanced Learner‟s Dictionary defines Ethos as “the set of beliefs. 5. Atmano Mokshartham. etc. Archet dana manabhyam: Worship people not only with material things but also by showing respect to their enterprising divinity within. 8. Jagat hitaya cha: All work is an opportunity for doing good to the world and thus gaining materially and spiritually in our lives 2. The divine resides in the heart of a person. Samatvam yoga uchyate: He who works with calm and even mind achieves the most. which come to light in the holy books applicable in today‟s management world. Yogah karmashu Kaushalam. happiness but also prosperity of his own organization and the society without injustice to others. The partnership of God and Man can bring about extraordinary or miraculous results. 6. Yadishi bhavana yasya siddhi bhavati tadrishi: As we think. wisdom and power. Attention to means ensures the end. The Divine means perfection in knowledge. ideas. harmony. Tesham sukhm tesham shanti shaswati: Infinite happiness and infinite peace come to them who see the Divine in all beings. God helps those who help themselves. about social behaviour and relationship of a person or group” while Oxford Advanced Learner‟s Dictionary defines it as “the moral ideas and attitudes that belong to a particular group or society”. The salient ideas and thoughts of Indian Ethos in Management revealed by our ancient scriptures are: 1. a spark of the Divine. They are: Each soul is a potential God Holistic approach Equal importance to Subjectivity/Objectivity Karma yoga Yogah Karmasu Kaushalam Co – operation Each Soul is a potential God: A human being has a soul. Formally. respect and fellow feeling. Thus human efforts can achieve even an apparently impossible goal and convert the impossible into a reality. so we become.
this does not mean that one should work day and night and the returns that he gets should be almost negligible.. It can see even that which the normal two eyes cannot. seen. Also.Holistic Approach: Holistic approach in Management is based on spiritual principle of unity. It can see the intangible i. But our soul atman is unseen. are subjective. put your heart and soul in to it. This is the ideal of Indian ethos : ‘Atmano Mokshartham Jagat Hitya Cha. Insight i. This brings about the union of human being with the Divine. subtle and intangible concepts. The memorable words of Gita are “To work only you have the right and you have no right to the fruits of work”. This is the essence of Indian ethos for management. non-dual or Advaita concept. insight. stress and total loss of peace. For the good of the world. Subject is subtle and intangible. intangible. social awareness. creation. as well as for the welfare of the world.e. Self-motivation can assure self- . Therefore. tangible. are objective. Equal Importance to Subjectivity / Objectivity: Indian ethos for management distinguishes between subject and object. a person should have accountability i. This is the message for all managers and workers given by the Indian ethos for management. pure and clear mind. Inner resources of human beings are more powerful than external resources. fruits of work should not be thought of while performing the duty. 2. We have the concept of the third eye. Hence. One should believe in Nishkama Karma i. integrity. Such an integrated human personality of self-developed manager and worker can assure best and competent management of any enterprise. the eye of Vision intution. entire Humanity is ONE. subtlest and subjective. senses. Thus. Creation is objective. truth. manager must develop his third eye. invisible. he should always hold only himself responsible for whatever goes right or wrong. information or data as well as human skills.e. One has no control over the future hence never waste your present in useless dreams of future hopes and fears of present actions.. Under this principle of unity. etc. wisdom manager/ worker are much more important and valuable than knowledge manager/ worker. „Jnana Chakhu‟ .e. foresight and such other divine qualities or values.’ (For gaining perfection in individual life. intellect. mind.). Karma Yoga: It is yoga of selfless service to others. Human and ethical values or qualities such as courage. the universe in an undivided whole where each and every particle is connected with every other particle. materials. Creator is subjective.e. These subjective or subtle qualities are as important as money. However. Money is important but running behind money all the time leads to tension. Our body. oneness. Object is concrete and tangible or visible. For my own salvation and personal growth. Gita says that do your duty without ego and without calculations of gain or loss. etc. the eye of wisdom. Karma Yoga is all about identifying your priorities and trying to achieve them. machines. vision. It will achieve perfection or excellence in whatever sector you work.e. WHY DO I WORK? 1. involving collective works and efforts. What the Gita tries to say is that let not the fruits of action motivate you as they might just divert your attention from work. fearlessness. creator is more important than Outsight i. When you are doing a job.. The inner joy of doing something gives the doer a sense of achievement and also helps him in respecting himself more than he used to.
money. Your head. Karma Yoga thus is a good pathway for: 1. When work is performed without passion. 4. 12. Collective growth and welfare. arrogance and desire we have individual development and social good. without being a work-a-holic. play a very minor role as motivators. The extrinsic incentives e. Such detached attitude enhances its values and improves the concentration and skill of the worker. because in our hearts chamber is living the pure consciousness of the Divine. dedication and with all abilities that a person has. 8. becomes valuable and the person also becomes valuable to others as well as to society. Any work carried out with full concentration. Team spirit and Teamwork. Under this slogan we have one hundred percent concentration coming from within. Seek to perform your assigned duty or work in an excellent manner. Minimum play of passion. i. Perfection. We are human beings having mind and power of discrimination. minimum control and supervision. will have to have an Indian ending. etc. Even in the holistic approach. It is becoming clear that a chapter. Kaushalam denotes doing work with devotion and without attachment i. 2.development. Divinity of life can be used through self-development for personal growth and also for social welfare.g. Indians always had two great truths of successful. harmonious and happy life: 1.” Unity is strength. You work with smartness. which had a Western beginning in business management. Yogah Karmasu Kaushalam: Yoga means excellence at work. Skills and values united. You become a tool of God to perform the work. Self-motivation. other perks. The idea of cut-throat competition is founded on the concept of „struggle for existence‟ and survival of the fittest. You do not hanker over the fruits of action. The Gita says: “By co – operation and mutual help all shall achieve the highest human welfare. determination and ability. Manager acts as a Mentor. You have no anticipation of reward. Individual growth and welfare. Co – Operation: Healthy competition is a powerful motivator for excellence and success. Working for harmony and peace results in a sense of fulfilment. 9. All round happiness and prosperity. or personal gain. hatred. we stress the co-operation integration. 7. for enduring harmony and peace. heart and soul co-operate with your hands. Autonomous management. . In total quality management (TQM) Karma Yoga and Yogah Karmasu Kaushalam provide valuable contributions. Conflicts resolved by integration. 5. 10. Karma Yoga is not just meant for the common man but also for leaders and managers who if act responsibly will in turn influence the behaviour of a number of people. 2...e. 3. especially business success. I cannot cheat you and nature without cheating myself. Self-purification and Self-development. 6. hatred. 11. jealousy. Indian ethos says that for human beings the royal road is co-operation as a powerful motive for team work. synthesis and team – spirit for extraordinary performance.e.
Self analysis through introspection is essential to know and discover oneself. Self Management: Indian ethos prescribes that a man should be able to control himself first. before he can even try to manage anybody else. Proper control. Indian insight endorses this in the management of any enterprise. emotions. nature and business. Yoga And Meditation: Yoga basically stands for excellence. can he undertake to manage himself. drug and sexual abuse and even suicide. Holistic Relationship Between Man And Nature: According to this philosophy there is an intimate relationship between man and the universe. Excessive competition at work can destroy many young people and our social life. 4. Both these are interlinked in the holistic approach. all creatures. integration.Purnatman. strength and weaknesses. his dreams and desires. Every manager must manage himself first. human beings can achieve all seemingly impossible goals and overcome even monumental obstacles and difficulties. frightening loneliness. Thus the only law (dharma) of life is service to each other. tension and frustration leading to alcoholism. can only lead to universal good of all concerned. 3. mutual trust and respect. 5. We can see that everything in this universe depends upon somebody else for their survival. Introspection involves self examination of one‟s own thoughts. Only when one has self knowledge. Similarly meditation stands for concentration. intellect and soul are the essence of self management. as well as one‟s dreams and desires. Man’s Unique Inner Source: Indian ethos states that all human beings and indeed. intra-organisation and inter-organisation. wisdom. not struggle is the rule. due to the synergistic effect of combined effort. harmony and integration between the body. Close interdependence. This means that man is permitted to enjoy both the internal as well as the external quality of life. Due to this divinity man has immense potential capacity for self development and self improvement. harmony. society. He must know himself first – his strengths. specially the tulsi plant and papal tree. excessive socialising. joint efforts and team spirit can lead to all round prosperity and success for everyone concerned. Indian ethos places emphasis on both spirit and matter. This divinity in man can lead him to perfection in knowledge. mind. Cooperation. which is experienced by everybody in the workplace at present. synthesis and team spirit for peaceful co-existence and mutual interdependence. besides giving rise to stress. and power. emotions. Meditation means to reflect . This view states that all human beings and nature are interconnected and interdependent. his goals and ambitions. have destroyed many a young mind and family lives. This philosophy of Indian wisdom provides an excellent incentive to people to perform one‟s duty to the best of one‟s capacity and capability. It motivates people to function. 2. sensations and passions. Excessive competition. feelings. by reinforcing that he is not working alone. For example Indian ritual of praying to animals of various kinds as also to numerous plants. INDIAN ETHOS FOR THE WORKLIFE 1. weaknesses. are but a spark of the divine. Peaceful co-existence. Excellence at work can also be achieved through yoga. Cooperation. between man and nature. goals and ambitions. interconnection and integration of human beings. united efforts and striving for success leads to all round prosperity and success leads to all round prosperity and success in any field of human enterprise. before he can be an effective manager. With this capacity. before he can control anybody else. Cooperation With Each Other: Indian ethos stress upon cooperation amongst others at work and otherwise.
The Importance Of Relationships In The Work Place: From birth. Indian culture teaches the individual to admire. also advices one to renounce the attachment to the fruits of action. 3. Thus an organisation is supposed to inculcate within itself. Meditation helps to solve many complex problems of the organisation demanding higher consciousness. Dharma is different and specific for everyone in the organisation. does the organization flourishes and grows. self discipline etc. Respect For Elders: Indian culture puts a high value on experience and age. the conjunction of the abilities of older and younger people should result in corporate excellence. inner growth and spiritual progress. Ultimately it can lead to poor team spirit and poor team performance.‟ renounce all so that you may enjoy all‟.upon deeply on anything. Renunciation results in mental peace. Meditation results in a calm mind which helps one‟s to focus on problems in a more clear frame of mind. The spirit of „tyaga‟is epitomised in Indian philosophy as a very great virtue. a child learns very early in life. 7. Dharma: Dharma in Indian philosophy means „duty‟ and is almost synonymous with integrity and righteousness. Given the close physical contact. The Bhagavat Gita. purposes. conforms to the rules and regulations of the organization. often sharing warm and close personal relationships with them. then it results in smooth . The dharma of the chairman of the company would be different from the dharma of the office clerk. influences. Dharma stands for all those ideals. Such a relationship within the organization proves to be of immense value. philosophies. along with overwhelming care and inordinate amount of love and concern from elders. 6. In his work life too. and does not violate it. the Indian child is exposed to numerous relations. all essential human and ethical values. one can have flashes of intuition and creativity. Respect For Hierarchy And Status: In the Indian joint family system. emotional links with others becomes the core characteristic of the Indian personality profile. like courage. the rewards of work. In a calm mind. This method has proved immensely beneficial to people in the workplace. displays high support for his superiors and low deviance and rebellion. The individual comes to the workplace with a strong need to relate to others. The tyaga philosophy is based on the belief that there is greater joy in overcoming a desire than in satisfying it. Only when an organisation keeps within its own dharma. respect and obey elders. respect for hierarchical layers of people. So the organization should try to develop relationship amongst the individuals within the workplace which will help in team building and emotional support. Having come through a number of strict codes of behaviour in his family. The Spirit Of Renunciation (The Spirit Of Sacrifice): The spirit of renunciation of worldly goods and all material possessions is advocated by Indian philosophy and ethos. 2. the individual. righteousness. justice. their status within the family and their varying degree of authority. INDIAN VALUES FOR THE WORKPLACE: 1. Each organisation in Indian ethos is considered to be a living entity. In the organisational context. One is called upon to renounce all inner cravings and sensual enjoyment of outer objects. having its own dharma and character. Due to poor handling of this need for relationship of the Indian worker by the organisation.this is the message of isha Upanishad. where the older person offers his experience and guidance to the younger and the mistakes of the younger person gets converted into learning experiences. fairness. teachings and experiences that shape our character. If this value of tolerance and respect for seniors is well utilized in the workplace. or to contemplate upon something. the worker faces an identity crisis in the absence of intimate relationships both vertically as well as horizontally.
(Mental health has become a major international public health concern now).to achieve self actualization and to grow and develop on the job. Quality of work life is more of a mental attitude. Quality of work life provides one with a deep and satisfying feeling that one is doing something worthwhile. With the correct performance of duties. Though it does tend to make many individuals timid and risk avoiders. This however does not imply that the rights of individuals are neglected or ignored. According to Indian philosophy. nor on the trappings of power and prestige that comes with the job. everyone‟s rights too get automatically fulfilled. one is contributing to the general welfare of humanity. 5. the inner satisfaction of having done one‟s work according to the best of one‟s ability and capacity. In the workplace. but also to excel at it . The Holy Gita has become a secret . Quality of work life is much more a deeper feeling that provides one with the motivation not only to perform the job well. QUALITY OF WORKLIFE IN INDIAN PHILOSOPHY: Quality of work life does not only depend on one‟s position in the organisation. When organisation makes employees feel safe and secure on the job. Bhagavad gita means song of the Spirit. THE CONCEPT OF ETHICS IN WORKLIFE ACCORDING TO BHAGAVAT GITA: Arjuna got mentally depressed when he saw his relatives with whom he has to fight. and leads to bureaucratic and delayed decision makings. When everyone discharges their duties as prescribed. by achieving a sense of joy from a job well done. even in the workplace. a better person – a better human being. especially in his job. of not having to fulfil one‟s ego or false sense of pride by resorting to petty office politics and power manipulations. song of the Lord. The Bhagavad Gita can be experienced as a powerful catalyst for transformation. When the opportunities for achieving all these are present on the job and in the workplace. 4. rather than on the externalities of the work situation. then one‟s quality of work life is said to be high. To motivate him the Bhagavad Gita is preached in the battle field Kurukshetra by Lord Krishna to Arjuna as counseling to do his duty while multitudes of men stood by waiting. Such a sense of mutuality has many positive outcomes and much more work gets done without any disruption. and that one‟s presence in the company is making some difference to the company. It is to become in the process of doing one‟s job.maintenance of organizational power and mutually supporting and empowering superiorsubordinate relationship. Need For Security: The Indian system of joint family and the early parent-child relationships are so protection oriented. and that one is making some changes to the lives of those within one‟s area of influence. It has got all the management tactics to achieve the mental equilibrium and to overcome any crisis situation. it also results in smooth acceptance and implementation of decision taken as well as conformity with organisational norms and smooth functioning of the organisation. that the Indian worker puts a very high premium on security. the quality of one‟s work life does not depend on the external environment or on the incentives of the job but depends on the internal environment. then employees are much more motivated to put in their best efforts. a wiser worker is developed where the quality of work life gets fulfilled within the mind of the worker and not from external factors. that one is creating value and excellence for one‟s company. with the emphasis on internal attributes of the worker. such a need for security results in unquestioning acceptance of superior‟s authority and mutual superior subordinate dependence. Rights And Duties: Rights have no place in the Indian philosophy.
motivation. management principles come into play through the management of resources. * Building an innovative organization. excellence in work. confusion. written thousands of years ago. The management philosophy emanating from the West is based on the lure of materialism . technical or human fields. he or she will be merely a face in the crowd. management is a process of aligning people and getting them committed to work for a common goal to the maximum social benefit . giving work meaning. achieving goals." The reason is that unless a manager reaches a level of excellence and effectiveness. Management guidelines from the Bhagavad Gita: There is an important distinction between effectiveness and efficiency in managing. While Western management thought too often deals with problems at material. priorities. are all discussed in the Bhagavad Gita. and religion. through maximum utilization with the minimum available processes to achieve the goal. and absence of motivation and so on. Thus. common in most of Indian enterprises today – and probably in enterprises in many other countries. finance and planning. There is one major difference. In all organizations. be it at home. * Cultivating the art of leadership. tensions. the Bhagavad Gita tackles the issues from the grass roots level of human thinking. The answer to this fundamental question is found in the Bhagavad Gita. Old truths in a new context. Management is a systematic way of carrying out activities in any field of human effort. It resolves situations of scarcity. it will automatically enhance the quality of his actions and their results. external and peripheral levels. The critical question in all managers' minds is how to be effective in their job. where a group of human beings assemble for a common purpose irrespective of caste. creed. * Delegation. plans and performance. The Manager's functions can be summed up as: * Forming a vision. * Developing human resources. The general principles of effective management can be applied in every field. which repeatedly proclaims that "you must try to manage yourself. In this modern world the art of Management has become a part and parcel of everyday life. poor productivity. leadership. The Bhagavad Gita. * Reviewing performance and taking corrective steps when called for. wastage. products and markets. delay. be they in the physical. * Establishing institutional excellence. decision making and planning. Managing men. motivation.in search of excellence. policies and practice. and communication. to make their weaknesses irrelevant. Once the basic thinking of man is improved.driving force behind the unfoldment of one's life. is the most important and essential factor for a successful management. * Building teams and teamwork. according to circumstances and environment. money and materials in the best possible way. enlightens us on all managerial techniques leading us towards a harmonious and blissful state of affairs in place of the conflict. * Effectiveness is doing the right things. the differences being more in application than in principle. goals and achievements. * Efficiency is doing things right. destruction and even depression. Lack of management causes disorder. in the office or factory and in Government. Its task is to make people capable of joint performance. says the Management Guru Peter Drucker. It creates harmony in working together equilibrium in thoughts and actions. The modern (Western) management concepts of vision. * Planning the strategy to realize the vision.
India. India being no exception to this trend. has been in the forefront in importing these ideas mainly because of its centuries old indoctrination by colonial rulers. My country. while huge funds have been invested in building temples of modem management . irrespective of the quality of the means adopted to achieve that goal. This phenomenon has its source in the abundant wealth of the West and so 'management by materialism' has caught the fancy of all the countries the world over.and on a perennial thirst for profit. The result is that. which has inculcated in us a feeling that anything Western is good and anything Indian. is inferior.
Values express dharma or divine nature as understood in the East. True greatness is not measured by tangible or extrinsic values such as name fame. speech and actions. truthfulness. When these values are manifested in your thoughts. You have to make them happen. VALUES: Human and ethical values constitute the wealth of characters. we have self-discipline and self-control to deal with life. kind. etc. Ego is the false notion of our mind. The voice of inner mind can be heard only in silence. As we think sincerely and constantly we become. Good things do not happen easily. It is nearly forgotten.g. perfection and completeness. charity. fairness. courage points out acts of bravery. happiness. In all of ours heart‟s chamber lives the unworshipped God. happiness and moderation. and above all character reflecting ethical and human values. kindness. do something which is risky. Our ego has become the pretended ruler. It is rediscovery of one‟s subtle but true awareness which generally lies in the secret hiding place. You have the guts to go ahead. Our actions and behaviour reflect our ideas and feelings. intuitive thoughts. The quality of life will now be different. and needs to be expressed openly. goodness. money. Health is more important than wealth. It is the most important of all. Character is most important than money. which is the right instrument within us but which is not known to us unless we go within. selfless. harmony. feeling buried deep within us. . our speeches. may be regarded as the last ingredient of integrity. because it is ignorant of the reality. Courage is telling the truth in the face of danger. soundness. particularly in the Indian ethos and insight and the ideas of integrity as understood in the West.CHAPTER 3 VALUE ORIENTED HOLISTIC MANAGEMENT: The most valuable human possessions are health. generosity etc. fame. and our actions. but always greatness in life is to be pure. Courage: In the world of management. In the West. for building up strong character. talks and actions associated with good thoughts. Goodness: It covers all essential values such as honesty. That quality of life will give you greater harmony. Integrity: Integrity is wholeness. We work not for name. Each one of us possesses this fine instrument and has the capacity to call it forth. e. morality. wakes up. for cultivating values. you are called a noble and enlightened person. We need practice to tap this cache. When the soul. Do Good‟ leads to purification of thoughts. We must turn inwards to interact with our inner mind and live by inner truth as per its direction. for wisdom so that our intrinsic values enhances. Living by Inner Truth: Living by inner truth or by inner mind. courage. Please remember that we need discipline and courage together to reach our objectives in time. the individual consciousness. we need goodness in our thoughts. We are not aware of the divine presence within thought the divine is constantly looking at the person. wisdom. spirit in Wholeness is given only a slight reference. true. and self-discipline to live by your inner truth. Inner mind or truth communicates through faint whispers. Wholeness: Wholeness implies totality. „Be Good. deciding not to conceal something one knows. Self-discipline: Self-discipline and self-control indicates that the soul is the boss who takes control of the mind and directs the mind and the senses to move on the journey to reach the goal known to the master. power and status but for greater worth.
It is the spirit which can bring out a true sense of wholeness. Integrity seems to shy away from it. Let us review these three divine elements. Some of the values are: Fearlessness Courage Purity of mind and heart Integration of thought. We have to comply with our own dharma. He is essentially divine. It includes openly spirit. our life is paralyzed. shady behavior and all forms of corruption and fraudulent dealings. Do the right thing. This is also called Daivi sampati or divine qualities. our boss. The inclusion of dharma is like rediscovering a vacant upstairs‟ room in one‟s heart chamber. Moral and Ethical Values: The mental contents of a good person are called moral and ethical values. . Spirit: Man is the soul. There is no shyness regarding spirituality in dharma. and be good‟ and the whole chamber of our heart shines with the Light of Consciousness. and the ways of life and conduct that shapes the character and evolution of man both as an individual and as member of the society. Dharma is ethics and spiritualism combined. The moment we are unconscious or ignore that inner law. Dharma is the Indian Concept almost synonymous with integrity. institutions. do good. double dealings. Adharma ultimately brings certain irremediable fall. Let your mind be ruled and guided by your Conscience. influences. what is there that can touch you or whom you need fear when He is offering His protection to you? Even a little of His awareness will carry you through all risks and uncertainties. DHARMA: Dharma is the law of right living the observance of which secures the double object of happiness in your own life and also the happiness in life of others. Righteousness: Dharma demands right action. Follow your Dharma and it will protect you or stand by you. The spirit. It is the spirit which makes us whole (Poornatva). not mere action but rightness is given great emphasis. Remember that the Divine Touch is enough to convert difficulties into opportunities. Each one has his/her own Dharma. Dharma is spirit in Indian Ethos. Values are also called gunas. Although integrity honors all moral values. It stands for all those ideals. However it has a wider scope. clean and inviolable in this world. In the business world we have kickbacks. Indian ethos openly recognizes the spirit as our boss and declares „Do right.To live by inner truth at work amounts to remain yourself incorruptible. The idea of an individual‟s own dharma is the insight that shines through Indian insight. Or degeneration is sure. action and behaviour . Of course. In dharma. Nobody has ever violated dharma without ultimately courting disaster. We feel isolated. Dharma is the inner law of one‟s life. Integrity defines wholeness leaving out spirit. righteousness (godliness) and fearlessness. lives there. it gives only lips sympathy to the spirit through the notion of wholeness. Corruption is world-wide. Dharma directly evolves from spirit. which at present is invaded by total crisis oh human and ethical values. Dharma stresses fearlessness. Indian society has a happy union between spiritualism and materialism. you should know the truth about yourself. The Western society is secularized. When the divine is present within you and you experience his presence. purposes. Fearlessness: integrity means courage. No wonder we feel missing and incomplete. We imagine that spirit is not within us and the upper floor seems to be empty.
as you would like to be treated. mental and emotional enrichment. communication. While the outer achievement concerns meeting set targets. would cause harm to you. Values bring about universal good (software aspect). false promises with regards to the product will cause disrepute the organization. Skills bring about achievement of tasks (hardware aspect). In a nutshell. credibility. and innovation etc. While skills are external – deal with functioning well at job. thus leading to goodwill and harmony in the organization. So if don‟t want to use flawed goods you must also refrain from adulteration. E. Do not do anything that if done to you. Outer fulfilment must be combined with inner fulfilment. But over the years people have realized its importance for the welfare of an organization. These human values support established business values such as service. Inner fulfilment relates to our spiritual. Do not do to others that which you do not wish them to do to you. The golden rules. Values act as a base for the skills and hence proceed skills in their importance. But a man who lacks character and integrity may cause much greater harm. Golden Rule of Ethics: Earlier. A man might have too little knowledge. Values are internal –deal with purity of mind and soul. Values and Skills: Values help us to „become‟ while we need skills to „do‟. Generosity Non-violence Modesty Humility Integrity Charity Loyalty Calmness A manager/worker with these values can mobilize his energies as well as of those around him and canalize in to productive purposes to accomplish greater tasks. lack judgement or analytical ability and yet may not do much harm. . these human values help self-development. One would be very pleased at being appointed as the CEO or MD of a company but if you cannot spare time for your family or can‟t enjoy a peaceful Sunday with your kids then your success is not complete. supervision etc become much easier. So if you do not want to be spoken to rudely then you must not speak rudely. which will be fatal to the company in the long run. which find its mention in the Bible. using your talents to the fullest extent etc. The proof of sincerity and seriousness is a strong emphasis on integrity of character in a job. the business community and society at large neglected ethics. We need to look at success with a holistic view. excellence. A salesman who does not possess good communication/ negotiating skills may at the most cause low sales. treat others. are: Everything you want others to do to you. Even the managerial functions of direction.g. you shall do to others. Significance of Values: Our effectiveness at work depends on our moral and ethical values. perform poorly. control. But a salesman who makes tall claims.
Hence. It is wrongly assumed that man is having a birthright to draw on resources supplied by nature at his will. Under the holistic approach man and Nature are deeply interconnected and interdependent. Human values for managers will honour the core of humanness and bring about harmony and balance between values as ends. Prevention of exploitation of mother nature: Science and technology brought about phenomenal industrialization at the cost of indiscriminate and ruthless exploitation of Nature. Fortunately we are gradually awakening to redeem ourselves. An organization that cares for its people cannot ignore such unhealthy developments and must take steps to see to it that our value system is in place. Infact. Today there are various concepts like Performance Appraisal. Their feelings and emotions were nil for the organisation. Every individual is the representation of a divine essence. Cheating. who could be hired and fired whenever the owners felt. But it has also lead to moral. ethical and spiritual degeneration. excellent service to the customer may be a value of the company. People should be developed not only in skills but also in moral.Values are enduring and do not change with time. Enterprises worldwide have been disregarding the importance of values. It is due to Behavioral Scientists that this situation has considerably improved. More and more corporate are awakening to the fact that it is not necessary to indulge in malpractices to make money. Man machine equation: In the earlier times man was treated as any machine in the organisation. Human Response Management: People constitute the greatest dynamic inputs in any organization. Morality and rationality are combined at the same time in HRD. Values and ethics must be an integral part of management and work culture. Illustrious men like Narayan Murthy are setting examples that ethical management practices can yield results. This has lead to a lot of comforts. Valueoriented management will recognize the divine model of man. here the skill is changing but the service orientation (value) remains constant. Why do we need value-based holistic management? Let us see two examples to prove that value-based holistic management is essential and there is no choice: 1. Values and the Work Place: The modern world has brought about many developments at the workplace. They are the center and must be regarded as the vital and integral part of organization. etc which draw a line of difference between a man and a machine. But skills have to be updated regularly and change with passage of time. there is no right to exploit Nature for purely selfish motives. luxuries and money in the hands of people. even today when we think of great people like Jamshedji Tata we do not associate him only with his steel plant but the entire township of Jamshednagar and the various Tata hospitals. . Motivation. Job Satisfaction. This will surely help in eliminating the man machine equation. corruption and malpractices are rampant in the companies.g. 2. Personal visits may be the method used by the company. ethical and spiritual values. E. We have created unwanted stress and unrest in the society. With the advent of technology. Job Rotation. We will evolve a judicious combination between values and skills. the company may use personalized e-mails etc.
overcome to some extent selfishness. interactions with employees. lectures of spiritual leaders. meditation. . in India we have the immense potential of our insight. The individuals are encouraged to subdue their ego. vision. Fortunately.. The employees must strive internal developments rather than only specialize in skills and proficiency. seminars and workshops. to neutralize the evil effects of reckless industrialization and to synthesize the human values into management and organization. example concentration. anger. Every effort must be made by the top management in the organization to inculcate values. Let the global management adopt this. intuition.As one man exploiting another man is bad so is exploiting Mother Nature bad. mind stilling. common prayers. goals and objectives cherished by the organization. Indian Culture and Wisdom: The long term viability and progress or the sustainable all round development of a nation depend not so much on its material. ecological or technological resources but primarily in its human resources having ample potential energies. creditors. They should sharpen their mind and intellect. ecology or politics which form only its outer body but its Insight. the inner evolution and progress of a nation depends on the enlightened preservation and harnessing of its human and cultural heritage. Values relate to the internal domain of business i. Let us note that success of Japan is based on values familiar to Indians. The members of the management team and the union leaders of workers must be regularly exposed to spiritualization. etc.orientation must be a program-based activity. the organization should inculcate the spirit of giving rather than taking in the work life. managing and leading our abundant human resources. and culture for motivating. Japan has combined spiritualism and materialism and adopted value driven holistic approach in management and organization. In the corporate mission or creed we describe values. satsang of spiritual leaders. They should be expressly mentioned in the mission document. The purity of mind and heart guides the reasoning and intellect in all managerial functions particularly in HRM. Value. customers. The greatest of the spiritual and psychological resources of any nation are its people who are conveniently forgotten or ignored. jealousy. suppliers. Ethos and Culture. etc. which are the expression of its Mind and Soul. A good manager has strength in both values and skills.e. The essential and enduring part of a collective being or a nation is not its economics. commerce. Just as the outer material and economic progress and well-being of a nation depends on a scientific preservation and harnessing of the material and biological resources of its ecological heritage. introspection.spiritual and psychological resources of our people. public. using spiritual education and practices. etc. Purer heart and mind would influence and sustain enduring values as a basis for improved effectiveness in the organization. meditation. We have management by consciousness. hatred. Value driven management: Effectiveness in performance of managers and workers is a function of values and skills together. Value-based holistic management alone can prevent this exploitation of Mother Nature. objectives. greediness. Values should be an integral part of corporate mission. It is a long-term activity with the constant follow-up and motivation through management support. Many organisations knowingly and unknowingly pollute the environment. partiality and such other undivine elements.
This is also called the lower mind. Jnan Yoga. Higher consciousness or higher mind which is the door to get the vision of the spirit or pure consciousness.Path of Mind Control Bhakti Yoga. Values emerge only from a purified mind i. It can hear the small voice in the form of inspiration. This is also called the inner mind.e. This is a key factor for managerial effectiveness.Path of Action All these help to develop a pure mind. We are in touch with this inner mind only in silence.THE ETHICAL AND SPIRITUAL VALUES: the Driving force for Achieving Excellence: There are two levels of human consciousness: Lower consciousness operating through our five senses in contact with the external world. from the inner mind or higher consciousness.Path of knowledge Raja Yoga. Traditional methods of purification of mind/heart are: Karma Yoga Bhakti Yoga Jnan Yoga Raja Yoga METHODS OF HEART/MIND PURIFICATION Managerial Effectiveness Value Orientation Pure Mind Jnana Yoga Raja Yoga Bhakti Yoga Karma Yoga The above chart indicates the four traditional methods of mind purification. Pure mind is the origin of all values. It can commune with the Divine within us. or intuitive purified mind. ] .Path of Devotion Karma Yoga.
The standards of conduct cover such topics as: gifts from outside sources gifts between employees . May not represent the interests of private parties in matters in which the United States is a party or has an interest. Ethics Regulations for Federal Employees: Executive branch employees are subject to statutes and regulations commonly referred to as "ethics" standards. An example is the Americans with Disabilities Act of 1990 (ADA). conditions. The conflict of interest statutes prohibit a Federal employee from engaging in certain types of activities that would place the employee‟s own personal interests above the Federal Government‟s interests. United States Code is an example of a Criminal Conflict of Interest Statute. advancement. Chapter 11 of Title 18. The two basic sources of these standards are the criminal conflict of interest statutes and the administrative standards of ethical conduct. Legislators reacted and have enacted the ADA in order to make it illegal to engage in such discrimination. Is prohibited after leaving the Government from engaging in certain activities on behalf of other persons or entities. Yet even with this legislation. the government has established legally enforceable rules on ethical behavior. Through these statutes. a Federal employee: Is prohibited from acting in an official capacity on a matter in which the employee (or certain others) has a financial interest. and other terms. Generally. especially when that disability would not affect their work performance. According to the ADA: "No covered entity shall discriminate against a qualified individual with a disability because of the disability of such individual in regard to job application procedures. The standards of conduct regulation establish principles of ethical conduct for employees within the executive branch. and privileges of employment. May not accept private compensation for performing official duties. the Supreme Court continues to evaluate provisions of the ADA and its definition of disability.CHAPTER 4 The Legislation of Ethics: Numerous laws have been enacted to protect employees against what society perceives as unethical behavior in the workplace. According to this Statute. employee compensation. these laws reflect the ethical standards of the majority of society. These laws are administered by the United States Department of Labor. solely on the basis of that disability. The regulation not only identifies the principles but also provides easy to understand examples of how the principles apply. job training. the hiring." Most citizens would agree that it would be unethical to deny employment or promotion to a disabled applicant. The Code of Federal Regulations Part 2635 is an example of Administrative Standards of Ethical Conduct Regulation. or discharge of employees.
both cannot be termed a law. These rules describe the ways in which people are required to act in their relationships with others in a society. so that they are accessible to everyone within the society. Most ethical decisions have extended consequences. In other situations. and usually enforced. Further complicating this dichotomy of behavior. The following items are characteristics of ethics: Ethics involves learning what is right and wrong. one must consider that law and ethics are not necessarily the same thing. Accepted – The requirements have to be generally obeyed. generally accepted. Law can be defined as a consistent set of universal rules that are widely published. Published – The requirements have to be published. in today‟s diverse business environment. not just expectations or suggestions to act in that way. They are requirements to act in a given way. in written form. Together they combine to define how individuals choose to interact with one another. Universal – The requirements must be applicable to everyone with similar characteristics facing the same set of circumstances. Consistent – If two requirements contradict each other. In some instances. ethics defines what is good for the individual and for society and establishes the nature of duties that people owe themselves and one another. what is illegal is perceived as ethical. The word ethics is derived from the Greek word ethos (character). laws may have been legislated. and from the Latin word mores (customs). the government can use police powers to enforce laws. Enforced – Members of society must be compelled to obey the law if they do not choose to do so voluntarily. what is perceived as unethical is still legal. Since the government establishes law. and then doing the right thing. they do not overlap. and presumably the majority opinion. The following chart defines the terms in the definition of law above. A behavior may be perceived as ethical to one person or group but might not be perceived as ethical by another. law and ethics overlap and what is perceived as unethical is also illegal. on the behavior. effectively stating the government‟s position. As a result. In some cases. . and in others. In philosophy. because people cannot obey both. conflicting financial interests impartiality in performing official duties seeking other employment misuse of position outside activities RELATIONSHIP BETWEEN LAW AND ETHICS: INTRODUCTION: A relationship exists between law and ethics.
Most ethical decisions have mixed outcomes. the law mandates ethical conduct. law and ethics are far from coextensive. Yet. speeding is illegal. once they are under way. Establishing a set of ethical guidelines for detecting. and codes of ethics. on the other hand. Though law often embodies ethical principles. This includes control that merely lays down general standards and prohibitions and those that interfere with matters that may be considered managerial. Morality refers both to the standards of behavior by which individuals are judged. ROLE OF GOVERNMENT OF INDIA IN ENFORCING ETHICAL BEHAVIOUR: In India the central or state government has a great impact on how business conducts their affairs. In some cases. and forestalling ethical breaches often prevents a company from getting into subsequent legal conflicts. Law is more than simply codifying ethical norms. Federal sentencing guidelines passed in 1991 permit judges to reduce fines and jail time for executives proportionate to the ethical measures a company has taken. In any country there is government interference in one or the other way. but ethical obligations typically exceed legal duties. The law does not prohibit many acts that would be widely condemned as unethical. For example lying or betraying the confidence of a friend is not illegal. encompasses the system of beliefs that supports a particular view of morality. Most ethical decisions have uncertain consequences. The government may regulate or assist the conduct of economic ventures of many kinds. ceiling on dividend and imposition of excess profit taxes on business generally. Examples of the application of law or policy to ethics include employment law. . The Relation between Law and Ethics Ethical values and legal principles are usually closely related. And the contrary is true as well. federal regulations. licence or franchise. Public control ma extend to the results of business operation as in the limitation of publicutility profits. Having demonstrated a more positive approach to the problem may also ensure that punishment for legal violations will be less severe. The law also prohibits acts that some groups would perceive as ethical. Ethics. resolving. and to the standards of behavior by which people in general are judged in their relationships with others. It is important to note that there is also a difference between ethics and morality.Most ethical decisions have multiple alternatives. but many people do not have an ethical conflict with exceeding the speed limit. but most people would consider it unethical. The government determines the conditions under which persons or associations may enter certain lines of business as in granting charter. Most ethical decisions have personal implications.
The state shall-in particular direct its policy towards securingThat is citizen. men and women and the tender age of children are not abused and that citizens are not forced by economic necessity to enter a vocation unsuited to their age and strength. has the right to adequate means of livelihood. carry on any occupation. The state shall with the limits of its economic capacity and development make effective provision for securing the right work. 3.The government also controls the relationships between the various segments of the economy. Some of the directive principles which promote ethical behaviour are cited below1. sickness and disablement (article 41). old age. not only among the individuals but also amongst groups of people residing in different. a social order in which justice. e. facilities and opportunities. The Indian Constitution-The preamble of the constitution states that attainment of social.g. The constitution assures citizens as their fundamental right. men and women equally. The state shall strive to minimise the inequalities in income and endeavour to eliminate inequalities in status. when private enterprises fail. economic or political shall form all the institutions of national life. the purpose being to settle conflicts of interests of legal rights and to prevent as undue concentration of economic power in one place. trade or business. The government may sometimes take upon itself to initiate actions for public good. The state shall make provisions for securing just and humane conditions of work and for maternity relief (article 42) 9. The state shall strive to promote the welfare of people by securing and protecting as effectively as it may. That the health and strength of workers. 2. social. 8. That children are given opportunities to develop in a healthy manner and in conditions of freedom and dignity and that the children and youth are protected against exploitation and against moral and material abandonment. That the ownership and control of the material resources of the community are so distributed as best for common good That the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment (loss) That is equal pay for equal work for both men and women. the government takes over such enterprises so that their services continue to reach people and that their employees do not become unemployed. the freedom to practice any profession. 6. economic and political justice and equality of status and of opportunity should be among the most important basic guiding principles of the functioning of the state. to education and to public assistance in cases of unemployment. The state shall endeavour to protect and improve the environment and to safe guard the forests and wild life of the country (Article 48) . The government also takes over private enterprises when it wastes natural resources and when they fail to consider themselves as trustees of public good and abuses its power. 7.
The working of the planned economy had contributed to the growth of big companies 2. establishments of other organisations engaged in any industry (article 43-A) The above mentioned directive principles clearly shows that the government has considerable influence upon business behaviour if it has to attain the goals established by the constitution.10. The Industries development and regulation actThis Act enacted in 1951 with the main objective of giving practical effect to the industrial policy. can be broadly classified into 2 categories1. Labour laws BUSINESS LAWS. The directive principles of state policy of the Indian constitution also provide enormous scope for government intervention in the functioning of businesses. All laws relating to business in India. It empowers the central government to develop and regulate the industrial sector in India. outside India and to branches of companies registered in India. The operation of the industrial licensing system was not successful in achieving the objective of regional dispersal of industries. but they not only failed to achieve the objectives but resulted in much unethical behaviour particularly big business houses. The main objective of FERA is the conservation of the foreign exchange resources of the country and the proper utilisation thereof in the interests of the economic developments . gave the government sweeping powers to control industries. Some of the important business laws which aims to regulate business behaviour are 1. However this has benefited the richer section than the poorer section of the society. it has on the other hand encouraged unethical behaviour of big business house. The working of the industrial licensing system enabled the large industrial houses to obtain a disproportionate large shares of the license issued. A report on the operations of licensing under this Act by the planning commission in 1966 stated that1. Business laws 2. The state shall take steps to secure participation of workers in management of undertakings. 3. 1973: This Act applies to all citizens of India. through suitable and appropriate means. Thus many controls of the government which were sought to be enforced through legislation were no doubt introduced with good intentions. Foreign Exchange Regulation Act. The large industrial houses were the major beneficiaries of public financial institutions. INDIAN BUSINESS LAWS AND THEIR IMPACT ON ETHICAL BEHAVIOUR: The government has armed itself with numerous laws relating to business. Thus this Act has not only failed to compel business to behave ethically. 4.
Recognition of the interest of shareholders and creditors 3. The government had listed specific commodities as “essential commodities”. The Monopolies and restrictive Trade Practices Act. The effect of this Act is that it had led to wide spread unethical behaviour in the society. Foreign investments and collaborations have been sanctioned in many cases which have had no relevance to national priorities and development needs. A provision for investigation into the affairs of any company managed in an oppressive manner to a minority of the shareholders. But some of the problems were that there was a considerable delay in disposal of cases under MRTP ACT. Shortage of essential commodities has led to black marketing and the generation of considerable sums of black money had led to the creation of a parallel economy. It also led to corruption in bureaucracy which was invested with discretionary powers. its implementation has not resulted in the desired effects. 2. Instead of encouraging ethical behaviour. Companies resort to unfair trade practices while disclosing their affairs and this Act has been helpless to detect and punish such offences. Fair and true disclosure of the affairs of the company. It has been ineffective in preventing economic concentration. its imposition has resulted in unethical behaviour not only in the case of companies but also in the case of individuals. The Essential Commodities Act. However there exist many provisions in the companies Act which are subject to manipulations. 5.of the country. Some of its significant objectives which is considered ethical are 1. This act also led to unethical behaviour and hardly proved effective in controlling essential commodities. It has also been said to have a potent source of corruption. 4. The Companies Act. Some of the other laws which provide the government with sweeping powers to control business behaviour are . adulteration and all sorts of false trade practices. black money. Though FERA was started with a noble objective and patriotic feeling. The act has restricted and stopped many misleading advertisements. 1956: This Act provides for a greater government control over the formation and management of companies. 1955: It was set to provide in the interest of the general public. Minimum standard of good behaviour and business honesty in company promotion and management. scams and have widened the trade gap. 1969: The main objective of this Act is to control the concentration of economic power and monopolies and to prohibit monopolistic restrictive and unfair trade practices. This Act has severe criticisms. Enforcement of the performance of duties by the management of the company. Higher standard of accounting and auditing. control of production. supply and distribution of trade and commerce in certain commodities. 6.
Workmen Compensation Act. 1976 3. The Plantation Labour Act. 1923 b. The payment of wages Act. 1938 e. The basic philosophy of labour legislation is to ensure regulation of employee-employer relationship to prevent exploitation of employees and. 1951 d. The Mines Act.Wages. The imports and exports act 1947 4. The capital issues control act 1956 2. 1961 2.1970 5. 1. The employment of children Act. Laws relating to weaker Section (ie. children and women) a. Laws relating to specific Industries 3. The securities contracts act 1956 3. 1948 c. The Indian Patents Act. The partnership Act. The minimum Wages Act. labour welfare. 1963 b. LABOUR LAWS: Labour laws represent a community's attitude to the labour class.1. 1952 c. needs of national economy and international uniformity as far as possible without compromising national interest and ignoring social problems. The legislation is fundamentally based on the principle of social justice where the workmen is not exploited labour legislation can be classified under the following categories1. Maternity Benefit Act.1932 6. Retrenchment Benefit Act . Laws relating to Specific Matters3. 1948 b. The Factories Act. The consumer Protection act 1986 and others. The Equal Remuneration Act. a. more positively to ensure social justice. The sale of goods act 1930 7.2Social Securitya.
Bonded labour a. 1965 d. 1955 3. 1948 e. Laws relating to Trade union Act. Employee State Insurance Act. 1926 Industrial dispute Act. 1976 4. Fatal Accident Act. The payment of Bonus Act. 1923 . Bonded Labour system(Abolition)Act.c.3 . 1947 The workmen compensation Act.
smooth production processes.operational transparency. Dr. This mission is denoted through its mission statement audit contains an account of how it wishes to serve the society and contributes to social welfare.Companies can achieve excellence through the attitude of “seva” or service to the community and to the customer. This mission statement acts like the constitution of the company.He also remarked “knowing our unlimited potential is the essence of indian ethos”. The companies can achieve corporate excellence by following bhagavad gita value of parasparam bhavayantah which means mutual concern.M. They strive to achieve perfection and excellence in any field and can be termed as the basis of ethics. The process of writing out the mission statement is as important as having the mission statement because it forces the company to think about its .fair employment practices. Making mistakes or being less than excellent is certainly not unethical but individuals in the seat of authority and responsibility do have a moral obligation to perform to the best of their capacity and capability and avoid making costsly mistakes.B Atherya(management guru) Values like “atithi devo bhava(the customer is god) guna(quality) atmanirbharta(self-reliance) helps in survivng competition caused by globalisation and liberalisation leading to corporate excellence. This is true for an organisation regarding the scarce natural resources as it is for individuals. Mr. the solid expression of the company‟s vision and values. Since the flow of products in the market is more.It is possible to become a leading company if we excel in quality in all respect and do more with less.Business ethics is the source behind quality products.concern for customers as well as shareholders and for social welfare. Also values mof kanashah artham saadhayet” says that one should earn wealth by saving every bit possible and this is vital to increase organisational productivity. a shift from customer-creation to customer retention is given importance.CHAPTER 5 RELATIONSHIP EXCELLENCE: BETWEEN ETHICS AND CORPORATE Organisations operate not just to survive but to excel(centres of excellence.Anil Sachdeva.D Eicher consulatny services.All these factors leads to corporate excellence.Comapnies can achieve excellence through ethical means through shloka :udyogam purusha lakshanam”(industiousness is the hallmark of a person). zero-defect products etc). market leaders.M. CORPORATE MISSION STATEMENT: An organisation mission consists of its long term vision of what it seal to achieve and the reason for its existence. It incorporates the ethical values that the organisation strives to use in order to achieve corporate excellence.
their employees. Violation of the Codes alone can. It identifies where the organisation wants to be and determines where it is now. as well as any ethical codes established at the company. in some instances. the managers must provide a positive example to their employees of proper behavior in light of laws and ethical codes. An effective goal focuses on results rather than activity. it may run the risk of becoming inhuman and socially irresponsible when it has to face an ethical dilemma. as outlined above. State. If an organisation only focuses on commercial performance. the environment. and this relationship is important in management. employees and customers must decide whether or not they are willing and able to conform to these Codes. These may be formally written or understood. With this knowledge. and Local laws. rit of this code. Certainly. policies and procedures will never be developed to satisfy everyone. The following tables show examples of such Codes. or human relations. and allow customers to evaluate the type of company with whom they are doing business. and misuse. Managers must evaluate not only what is legal. The news is full of stories regarding the ethical issues with which companies are being confronted. as well as to the laws that have been enacted. they are enforced internally. Managers play a vital role in a company's legal and ethical performance. there is a relationship between law and ethics. working issues. unique talents and potential for achieving corporate excellence. A clear corporate mission statement makes the employees committed and creates unity among them. everyone should participate in its formulation and not just its strategy planners or the top management. It reflects the deepest values. organizations. Important here is that companies must also consider what behaviors their customers will and will not accept. Although the government does not enforce these Codes. carefully and to integrate its activities with the beliefs. but what they. and society consider ethical as well. Clearly. For the mission statement to become more meaningful. but the establishment of Codes of Ethics will at least provide a framework for ethical behavior. such as the practices of Nike. It depicts the organisations business character and the kind of organisation i strives to be. and associations frequently establish their own Codes of Ethics. be grounds for termination. theft. Managers . it also forms a guideline for governing themselves and there will be no need to direct and control for they work for corporate excellence. It is in part their responsibility to ensure that their employees are abiding by Federal. But most importantly. No company wants to be forced to defend itself over ethical issues involving wages. Only then it can be effective. CODES OF ETHICS: Private Companies.priorities deeply. ss.
• • ORGANISATION CULTURE: Culture refers to the set of values. Values produce a sense of direction for the employees and help to guide their day to day behaviour. It is a corporate strategy.cannot simply limit their decisions to following the law. dominant beliefs and guiding norms of behaviour for its employees. open communication. Norms are the standard of behaviour. but these codes cannot help to solve managerial. An organisation where its culture consists of top management‟s commitment to good business practices. The organisation culture plays a dominant role in influencing employee‟s ethical behaviour. such a culture spearheads the company‟s commitment to creating excellence-through zero defect products. Quality is no longer limited only to products and services but also measured in terms of value for customers. TOTAL QUALITY MANAGEMENT (TQM): It is a systematic approach to guide an organisation towards excellence through superior quality products. shared values. It encourages people to think in a particular way which leads to positive attitude and consequently to the wanted behaviour. The organisation culture governs peoples behaviour in the direction where they strive to achieve and create excellence in corporate life. the mental attitude shared by the members of the organisation. must be value-based Top management must continuously communicate these values to the lower levels in the organisation. The code of ethics generally make an employee of the organisation aware of his or her obligation and the moral duties towards the organisation. employee welfare commitment etc. The corporate culture consciously created. quality. the atmosphere. . excellent customer support service. A strong culture provides a basis for productive ethos and ethical behaviour of an organisation. services and processes. expected from everyone in the organisation when confronted with a particular situation consisting of ethical dilemmas. reliability. They must also consider the ethics of their employees and customers. dilemmas between economic and social performance. • A code of ethics is a statement of the norms and beliefs of an organisation. beliefs and norms for everyone within the organisation stands to benefit from corporate excellence. It denotes the climate.
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