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Values are general terms referring to those things which

people regard as good, bad, right, wrong, desirable, justifiable
Business is driven by values.
Values are potent sources of conflict as well as of cooperation.
Managerial values are e.g. importance of good in organizations
(like productivity, profit maximisation, employee welfare,
industry leadership, organisational stability, organisational
efficiency, organisational growth, social welfare etc.), groups
within organisations ( like employees, customers, co-workers,
superiors, subordinates, stock-holders etc.) and the personal
goals of individuals.

Core Values

Honesty Being straightforward, sincere, truthful, free of fraud,

deception or misrepresentation

Respect To give particular attention to, show consideration for,

or hold in high or special regard

Responsibility Moral Leaders take responsibility for their own

actions/failures . Involves a commitment to give a quality
performance and not making promises that cannot be kept, such
as committing to unrealistic delivery dates. Also calls for
acknowledgment of implicit commitments, such as the protection
of confidences

Fairness Involves a elimination (or at least a minimization) of

one's own feelings, prejudices and desires, so as to achieve a
proper balance of conflicting interests.

Relevance of Values in Managers

1. Knowledge of business ethics will help managers in resolving ethical
issues/dilemmas as they arise.
2. Knowledge of values will help managers in setting highly responsible
tone for the organization - in individual judgments and decisions
whether ethical or not.
3. It helps manager to realize their social responsibility. Many
organizations find it wise to go beyond their primary mission and take
into the needs of the community. Business ethics make managers
more accountable for social responsibility.
4. Knowledge and awareness of the concept and practices of business
ethics is equally helpful to practicing managers in managerial
conduct and decisiondecision-making.

Types of Values

refers to desirable
end-states of
existence, the goals
that a person would
like to achieve
during his/her


refers to preferable
modes of behavior, or
means of achieving
the terminal values.

Importance of Values
1. Values lay the foundation for the
understanding of attitudes and motivation
because they influence our perceptions.
2. Individuals enter organizations with notions of
what is right and wrong with which they
interpret behaviors or outcomesat times this
can cloud objectivity and rationality.
3. Values generally influence attitudes and
behavior. Does your values match with your
Job/Organization? How you will react?

Personal Traits
Three personal traits act as moderators of an
individuals personal values in decision
making activities. They are
Ego strength
Field dependence and
Locus of control

Ego Strength
Ego strength is actually another term for selfconfidences. Ego strength is associated with
personal beliefs.
A person with high ego strength would be
expected to rely more on his own personal
values and beliefs of what is right and what is
wrong and be less influenced by others.

Field dependence
The tendency to rely on oneself or the field as the
primary referent for behavior is field dependence.
People who have a tendency to rely on self as a
primary referent for their behavior are fieldindependent people.
They are relatively cold and distant in relations with
others, and more able to separate themselves from
others and the environment. However, they have
greater accuracy in personal perception, have a
more articulated body concept, and have higher
restructuring ability.

Locus of Control
The degree to which people believe they are masters of their own
Internals (Internal locus of control)
Individuals who believe that they control what happens to them.
Externals (External locus of control)
Individuals who believe that what happens to them is controlled
by outside forces such as luck or chance.

Stages of Moral Development

There are six stages of moral development and an
individual develops sequentially through the stages.
Stage one: actions that avoid punishment.
Stage two: actions that serve ones needs
Stage three: actions that gain approval from others;
Stage four: actions that abide laws and authority;
Stage Five: actions taken to abide by social
contracts and
Stage six actions supported by universal principles.
All six stages provide a rational moral Action