This action might not be possible to undo. Are you sure you want to continue?
Topic:- Indian perspective of business Ethics
Subject – Business Ethics Submitted To – Prof. Linit Lewise By : T.Y. BMS ‘B’
We the students of ‘LALA LAJPAT RAI COLLEGE OF COMMERCE & ECONOMICS’ T.Y.BMS Div ‘B’ hereby declare that we have completed our project on ‘Indian perspective of business
The information submitted is true and original to the best of our knowledge’.
Adesh Vanigota Angel Kothari Lavish Jain Kaivan Mehta Priyank Mehta Saunak Shah.
891171 891205 891210 891206 891174 891162
We sincerely thanks to Prof. Linit Lewise as she guided us for successfully completing our project. We would like to thank my fellow classmates who really helped us even at late nights. We would like to thank the college staff for being so co-operative. . Thank you Prof. Linit Lewise for giving us this project because we came to know how does Ethics in India originated. And lastly, it is only when one makes project that one realizes the true power of MSWORD, from grammar checks to replace-all. It is not simple without this software; this project would not have been presented without Word. Thank you Mr. Bill Gates and Microsoft Corp.
Nowadays. wisdom oriented values and ideologies contained in the Bhagwad Gita.renowned management consultants and research scholars have realized the importance of Indian philosophy and management concepts based on Indian tradition.Stromburg writes .INTRODUCTION – INDIAN MANAGEMENT Nowadays. “ The potential power of human will is very great because it is part of cosmic will and re – dramarizes our capacity for creation of good. the Upanishads or the Ramayana. When we pray we are in communication with the cosmic mind in which our minds are rooted. Sir Edwin Arnold etc. The American astronomer – scientist Dr. IIMs and other renowned institutions are focussing to teach management based on Indian values.wise-men who had in-depth knowledge about management. value oriented in their approach.are doing research on these topics and accepting some of them . The ideologies therein are attracting not only the Indian wisdom managers but also the orientalists like Sir William Jones .Management consultants and visionary managers are getting interested and focussing towards the ageless. a remarkable change has been noticed. part of energy which according to Indian Concepts of Management is supreme soul.” This indicates that even scientists that there is something over and above science and that we are part of the cosmis wil i.They realized that t is only the .e. many foreigners .there is nothing to be surprised!The sages or maharishis of our country were quite thoughtful. More and more renowned organisations are trying to become holistic. They are focussed to implement those values and ideals which remain eternal and are as relevant today as they were five thousand years ago. Sir Maxmuller .
Today’s management thinkers discuss selfactualization.According to Maslow’s Need Hierarchy Theory this is highest order need.They are shown in the following diagram.TQM.management based on the values that can ultimately lead to sustainable development for a nation at the macro level.The need hierarchy Theory ofMaslow depicts five types of needs.Tihs concept of self-realization was there in the Indian philosophy since the very beginning.The principles to attain excellence are always cherished and sought out even by our forefathers although all these modern terms they did not use.Today’s organisations are gradually apprehending the importance of value-based management and are quite intent to implement those values and techniques thinking from long –term perspective.to attain excellence. Business consultants speak about six sigma.Kaizen. Maslow’s Need Hierarchy .
Indian philosophy emphasizes on four values Artha. Here come sthe importance of Indian management.It is an intermediate point.What is the use of that money.He suffers from various ailments.It teaches us how to earn money and be happy the same time.Out of these values Artha and Kama are lower oder values and Maksha are higher order values and ultimate objective of life is to attain Moksha orr enlightenment and enjoy(bliss) orAnand.Kama. If one is earning money sacrificing his conscience.But what is the situation today?All the n dividuals are struggling to earn money but sacrificing their own happiness for sake of it.Dharma and Moksha.then he might have earned a lot of money but would turn into a looser. Why people earn money? They earn money to lead a happy and successful life.they realise its hardly fulfilling. his moral.one cannot enjoy? What happen in today’s world is that ‘ego-driven’ people sacrifice the best part of their life to raise their status in the society and when they get it.It teaches us money is not the main criteria.unhappy family life and guilty-feeling for not fulfilling the demands of life affect his health.It teaches us how to maintain a balance between our .Moksha Dharma Artha Kama The similar type of classification is there in Indian scriptures.Sleepless nights.
than how much one is earning.When an individual identifies himself in others.An ignorant man works for his own personal benefits.He is a Karmayogi.drug and sex abuse are taking place . although standard of living of some people have been improved. The result being.It emphasises to shift the focus from outside to inside. ‘Brahman’ in things which are dissimilar.the greatest book of Indian management.more unethical practices.In that book Lord Krishna has given the example of King Janaka who attained perfection by doing self-less work for the benefit of all.If not more.emphasises to work for the well being of all.personal and professional life.The Bhagwad Gita calls this equal vision or samadrti which maens seeing the same principle.fulfilling his own interest. Indian management teaches us to develop an attitude of accepting each and everyone as an extension of our own self as all of us are part of the supreme soul. The Bhagwad Gita.Hence. Indian management always emphasises to shift the focus on self-management.most of the management institutes till today are enphasising to learn the styles of the western management instead of holistic approach to management based on Indian ethos.but colonial hangover is still there within us.We perceive that anything western is always good whereas Indian is bad or not that attractive.whereas the enlightened soul performs unattached work for the well-being of others.to apprehend the true self of an individual:Who am I? The British quitted India long back.It teaches us how one is earning money is an equally important factor.more violence.he becomes empathetic towards all and thus could become a successful manager.More exploitation.On the contrary a further deterioration is noticeable in every aspect of life.no perceptible iimprovement in the quality iflife has been noticed.
They do not bother much about organisational goals.Corruption and exploitations are everywhere.Western management focuses towards skill development and upgradation of workers so that his productivity level improves.an dwhich Indian companies are following blindly is a matter of graey comcern. The way the American and Japanese organisations are managing their business.If the productivity level of all the employees can be improved in that manner.But there are examples where companies are earning profit.tormented life.and highprofit making at the cost of inner peace.Fellow-beings are manipulated.They are just like cogs in the machine.They concentrate more to attain personal goals and objectives.sometimes even at the cost of organisational goals.Organisations have become dehumanised mechanical entities.they would understand how important it is to fulfil .happiness and bliss.It is important to note that if the organisations think fron long-term prospective.thus although some of the organisations are earning profit but what about the owner and managers?thet are unhappy and living a disturbed.organisations would earn more profitwhich is the ultimate motto from WM point of view.We should think that what is the consequence of running the business in the manner which leads to only external growth.they are insecure.Thus employees are treated not as human-beings but as the commodity.business must be managedunethically and business organisations do not have any obligation to fulfil social responsibility.they have contributed to a great extent for social welfare. The popular concept is that to earn profit.growing and at the sametime fulfilling their responsibility to the society.demotivated and indifferent as far as overallorganisational goals are concerned.Nature is exploited.The reason behind this is following western culture blindly.Therefore.everywhere.
six Sigma etc. medical revolution. Too much work pressure . At the same time all the business houses in India should remember that while running the business on Indian soil. We are earning a lot of money.theory X and Theory Y. privatization and consequently blindly following western culture .ultimateky gave birth to stressful imbalanced life. Stress is everywhere. Changes like liberalization .They need to be growth-oriented and prosper.But although these so-called Indian managers are quite knowledgeable about Maslow’s Need Hierarchy Theory.and service attitude.team spirit. these trained students from Business schools who become the managers afterwards.but not at the cost of internal growth and inner-turmoil! In Indian organisations.most of them are least concerned about holistic approach of management.as that will attract all the stakeholders towards the business. Here we may add.Therefore.Organisations must earn profit and grow not at the cost of others.Restructuring . i.not aware of the concepts based on ageless Vedas. all the concepts related to western ethos. try to follow those concepts in Indian Management which if an organisation follow would do better from long-term perspective.e.many managers are working who are of Indian origin.turn us into robots. in today’s world there is a huge search for spiritually everywhere. but ultimately what we are getting? Sleepless nights and unhappy family life and guilty-feeling for not fulfilling all the demands of .If required managers in india cann definitely combine Indian concepts of management with some of the techniques and tools of western management applicable in Indian culture and tradition.curriculum or syllabus is based on western concepts and techniques of management .social responsibilities.but on the basis of co-operation.globalization.they must develop their own management style based on Indian cultural ethos.Total Quality Management.In most of the Business schools.
Various drastic changes are bound to take place. peace is most forever.life. The right kind of education needs to be imparted which will be wisdom – oriented. We cannot control our thought process. ‘where the mind is without fear’ as the great poet Rabindranath Tagore has written. We have to face those challenges boldy and move ahead. Application of a few of the Indian values and philosophies will bring a transformational change in the organisations. With the increasing trend to acquire large scale destructive potentialities kind. with our peer – group even with ourselves. did not know about western . dreams and wishes. Always there is inner turmoil. we remain ignorant. the world is becoming only more insecure. The leader Bhuvan who developed the cricket team. and leadership.India is having a rich and strong cultural heritage. Western Countries including US have to be realized that the time has come when we need to have more spiritual power than the power derived from other resources like latest technologies and machines. team spirit . We have become helpless victims to our own demands. It is all about motivation. The youth should be trained to cultivate altruist intentions and nurture a clear consciousness. This can only be the path for global peace and we must remember that even if we are genuinely altruistic without the means to put into use. EXCELLENCE OF INDIAN SOIL I believe most of you have watched the movie ‘Lagan’ . Sometimes we become angry with our own parents .
management . consider the service of dubblewallas in Mumbai. everyday at the same time early in the morning . But Kabir Khan.He knows there is no second chance. As a coach of the girl’s team . or bakery boy or the sweeper. they are providing us what we require at our doorstep. did not have any idea about TQM.spirit . Again ‘Chak de India’ is the story of a coach’s fight of making his team India – by overcoming their diverse backgrounds . Its a story about honesty . or ISO but he developed the team. Consider the milkman.e.does . motivated them and ultimately attained the objective i.He knows what it takes to get there and what is means to return empty handed. Once again consider the filmmaker whose film Shwas went for the Oscar nomination and was praised. he wants to make sure that it’s different . by learning to use everything that life hurls on them as a secret weapon. united all the villagers . this an example of excellent management . They always reach on time to provide food in lunch break.’Customer Relationship Management’ but what kind of service are they providing. Vasai or Virar they reach on time to provide food. The girls have never known the thrilling energy of being Team India . Despite his past. sincerity and integrity. now forgotten . They do not have time about ‘ Just in Time’. ‘Customer Delight’ . of giving their all to see their county’s name on a trophy. . he believes that if only the girls played as one.Kabir Khan believes that it is not we can’t win. this time. Although language was different and the people were understanding only through subtitle. won the match against the British. Whether it is nariman point. anything would be possible . They are Indians attaining excellence in action. Its just that we have never believed we can. once a captain .They have not studied in B schools and most of them are uneducated but they have reached the six sigma level of quality. This is what we mean by quality service . Once again.
they do just act but they become the particular role itself while acting and it leads to achieve the level of excellence. Tatas. Thus excellence can be attained if one is honest.Consider the actors like Aamir Khan and Amitabh Bachhan. Aditya Birla Group.He internalised the role which the movie was shot. Infosys. while acting.Again there is great personnel like Gopinath . dedicated and work with a sense of purpose.’ Mangal Pandey’ . . Mittal Group are the organisations that we have attained the level of excellence and we know the owners are Indians. Aamir Khan became Mangal Pandey in the movie .He is an Indian who at the age of 17 is the youngest CEO in the world managing an IT firm Global Inc.
He use to talk whatever he thought was right and so he was also called as a “Pioneer economist of the world”. His views are not only followed in India but are also followed by western management researchers. CHANAKYA NITI. Chanakya emphasized to follow this practice long back in 3rd century BC. in the same manner we should seek the spirit that is inside the body”. He was a visionary and the most strategist person of all time to come.ROLE OF CHANAKYA Chanakya was a shrewd person and a diplomat during the reign of Chandragupta Maurya. He was a fluent speaker and was known for his speech. 2. How an individual should lead his life in society? He emphasized a lot to go deep into the root of the problem and eradicate that problem once and for all. He has written two renowned books:1. Even today agricultural activity is considered to be the most important and main activity for our livelihood as Chanakya mentioned long back. “Chanakya emphasized that as we seek fragrance in flower. He contributed a lot as far as foreign policies are concerned. KAUTILYA’S ARTHASHASTRA. . fire in wood. ghee in milk and jaggery in sugarcane. It indicates that his principles are applicable even now. Many universities added those policies in their syllabus. In his ‘NITISHASHTRA’ he discusses about 1. How the state should be managed? 2. oil in sesame seed. When there is enmity between two states sometimes it happens that individuals from the opponent country accused falsely and even get killed.
He emphasized to collect tax but at a low rate otherwise people would escape tax. He reminds individuals through his writing that a man has come to earth alone and will go back to heaven or hell alone. According to Chanakyaniti communication is of utmost importance. This is the essence of Indian ethos. Therefore Chanakya wrote to leave a member for the sake of the family.According to him people should be moral and ethical in their behaviour. In Chanakyaniti it is written that individuals having complete control over their senses can become great leaders. Therefore Chanakya writes that the one who speaks . to manage lifestyle effective by following shastras and not to ridicule or disdain men of peaceful temperament. righteous and truthful. He emphasized that those who do not follow these principles face grief in life. From this it may be indicated that everyone should work thinking about the consequences although he has not mentioned that. He emphasized on self control. merciful. a village for a country and like today’s individuals he wrote to leave a country for the sake of oneself. He even said that the change is going to happen in dynamic society and those who are not ready for change will face problems. and depending on his Kama only he experiences good or bad consequences in life. In Chanakyaniti the author depicted to get up at the right moment fight boldly to distribute. He wrote to respect Vedic wisdom. He emphasized on being happy and satisfied with little or nothing. a family for sake of the village. They need to be patient. Indian management always emphasized to look at things and situations from macro perspective.
values that are there within individuals. It results from various kinds of experiences they are facing in their day-to-day life. Many of us dance in their tune without internalizing it that does not mean we follow western ethos. It is related to the behaviour that is normal. spontaneous and unplanned.beliefs. Samah satru. Indian Ethos Before probing deep into Indian ethos. Individuals should take interest in their spiritual life. He says that the best ornament is humbleness. Ethos is an important factor as far as the management is concerned. Sometimes when we are blindly wearing the western clothes or following their life-style that is not ethos. Materialistic life is void as compared to spiritual life. If the managers in MNC’s understand the ethos of a . But when we are imbibing something in the deepest region og our heart it becomes a part of our ethos. It emphasizes that the most terrifying enemy of an individual is our own ego. This is one of the basic principles of Indian ethos.we should first understand the meanind of ‘ethos’.politely and pleasantly. As mentioned in Chanakyaniti Nasti-ahankar. Chanakya wrote that even from a nectar poison can be taken out. Ethos is related to the part of the psyche of the community. People behave and respond according to their ethos. makes no enemies. Management is related to managing people. Chanakya wrote that happiness and misery will come and go in a cyclic order in life. Ethos results from the lessons. one can receive highest knowledge even from a person of low caste.
In India many customs are there which may sound unethical but that is Indian ethos.the Upanishads and the Bhagwad Gita which depict the true essence of Indian ethos.particular nation and manage accordingly. Indian management concepts are based on the Vedas. For eg:-if one considers these customs taking dowry from the father of the bride or sati-system are unethical but these are part of Indian culture. Principles of Indian ethos • Who are you? The relationship of the world to the lord: . One point needs to be clear that Indian ethos is not a religion. Ethics is based on what is right or wrong but ethos is based on customs and traditions. Thus the people in India have different cultural norms. In India some mergers and acquisitions have failed because the top management has failed to understand the Indian ethos. Many cultures and traditions have been merged in the indain culture and become part of it. Ethos is not ethics. various sects and communities are living together. multi-cultural country where since time immemorial. They could not understand the customs and traditions of India. It is a multi-lingual. India is a secular country that believes in unity in diversity. India is a land of diversity.the result will be tremendous with a stress-free more productive work force.
the world having entered becomes corresponding to every object. Therefore all of us are having divine qualities like integrity. loyalty etc. The management’s intention is how to make him a more effective and efficient manager so that the organization can earn more profits.just as the one fire. Just so the one self of all things existing appears with like form and is outside also. Ayam Atma Brahma. As far as western concepts of management is concerned it is more focused to develop only the skills of the manager. Everyone must take only some initiative to inculcate these qualities. Indian concept of management is focused not merely to develop him as a better employee but to transform him as a better human being. To transform an . As they are part of the Param Brahma they are having immense potential to become good-like.This self is Brahman All of us are part of the one self “Param Brahma” or Supreme Consciousness.The figure of the Fire:. • Individual Development Indian management always emphasis on individual development. Human beings need to be developed although all of them are part of supreme consiousness. patience. Management is not only getting things done but also about compassion and personal development. If human beings take some steps in that direction there would not be any stress and life would be balanced.
teamwork. Mahatma Gandhi said several things that destroy us. co-operation.individual in an effective worker and excellent human being his personality. Self management deals with human conduct which is voluntary and not forced by persons or circumstances. • Self management and self development Indian ethos lays much stress on self management and self development. living and working for others and all these can be attained through managing oneself effectively. He must know himself first his strengths and weaknesses. Indian ethos also emphasis on mutual trust. The individual must be able to manage himself first before he manages and controls others and be an effective manager. his character needs to be developed. Here they are: “Wealth without Work Pleasure without Convenience Knowledge without Character Commerce without Morality Science without Humanity Religion without Sacrifice Politics without Principle” .
We should behave in the same way we are expecting from others. As he said: “The occasion was the seminar attended by lecturers from across the world and we were taken care of a real sense of love. So there should not be any kind of disharmony and conflict among fellow beings. towards life: “Aneka basin darvkra netra” It emphasizes that there is some kind of interconnection among all of us. We must see ourselves in otherselves.To get rid of all these deadly means and to manage our life in an excellent manner what we require is self management. We should look at things from other’s perspective. • Seva or service Attitude One of the managers of Wipro after returning from weekend at a spiritual centre said “seva” should be the “mantra” in the business organization. This will generate co-operation and team spirit and consequently positive synergy will be created which will ultimately lead to efficiency and effectiveness. • Indian Ethos emphasizes on Holistic Approach To life Indian management points out that individuals need to have system approach towards organization. all of us are part of the whole. Early morning the sevaks would wake .
• Team spirit . to wash up and also to give us spiritual counsel. The hours were long and the work was arduous but there was an unfaltering smile on all the faces.us up with bed-tea and later light a wood-fire to heat water in an old fashioned boiler. They need to look at things from other’s perspective. attitude he can inculcate a great change would be noticed in every aspect of our life. Until all of us had our baths. if this sense of service. Why? Love for the guru explained one. All the individuals must be ready to sacrifice for the sake of others.internal and external. All the individuals are inter-related being part of the Param-Brahma.” Organizations can do anything and everything for the country instead of profit orientation they should be service oriented. one or two of them would stay with us swapping life stories and experiences. They should provide best service to all their stake holders. profit sharing and at the same time fulfilling social responsibility. to all their customers. serve food. In today’s tough competitive scenario when western management is declaring that survival of the fittest is only possible and when many Indian corporate are ready to blindly follow the western principles. Therefore in a team effort if success doesn’t come then everyone should be ready to be accountable for that. We the Indian are facing tough time with too much work pressure and consequently high level of stress. Indian Ethos always focuses on this service attitude • Self sacrifice Value oriented Indian management emphasizes on spirit of sacrifice and renunciation. There were ‘sevakar’ to cook. To create an excellent organization individuals should be everready to accept their faults and not to blame others.
Higher Profitability will automatically follow . In today’s scenario. in every successful organization that yajna spirit is there which helps to generate the high team spirit and the healthy organization culture result being tremendous profitability and growth Team Spirit Healthy Working atmosphere Quality Service Higher Productivity Level High Rate of Growth. Yajna was a ritual where all the members of the community gathered together and worshipped the fire to attain some designed goals. community wealth.During Vedic era people used to perform yajna. They used to chant vedic hymns and offer various materialistic things which they possessed and were valuable for them symbolizing.
Even one second back that has taken place that is past at this moment. they would fall and might die also. so smoothly? It is because. • Perfection in work Indian ethos emphasizes on excellence in work. How do they perform so excellently. focused and engrossed at present. Therefore one should think only about the present moment.• Present moment Indian Ethos emphasizes to concentrate only on the present moment. “Niskama Karma”. Karmani ava adhikarstha ma phaleshu kabachana Ma karma-phala hetwebhu ma te sangaha astuswakarmani This verse emphasizes individuals have the right to do their duty but never have the right on the outcomes of their actions. Consider the group ballad. Consider the acrobatics of the trapeze. Indian value system emphasizes on Niskama Karma. All of us have to work with perfection. fully involved. If they divert their concentration towards the past failures of future happenings. artists swinging from one bar to another. . and then only they would be excited to do the job. They put all the hard work. They should enjoy thoroughly while working. effort and initiative together and remain totally engrossed to the present. whether we are doing a peon’s job or a general manager’s we should do it whole heartedly. We should be focused and give our best effort so that we can attain perfection. Work would be just like a play to the workers without any anxiety or stress. At the same time we must ask ourselves – is it beneficial to our society? If the answer is yes then definitely we are moving forward to attain excellence.
They should never expect fruits of action.They should work for the sake of work itself. Work itself should be a kind of fulfillment for him. If one loves HR function. Work should be like worship. • SELF MOTIVATION Indian management emphasizes that to perform the work in the best possible manner. one need to be a self motivated person.e. Each work weather it is a peon’s job or General Managers job. There is nothing to be ashamed of while doing a sweepers job or a cobblers job. is of equal importance. The y should not get attached to past actions. if he is fascinated with marketing must do that only. No work is great or small. No external motivating factor can motivate a person for long. when there would not be any difference between who he is and what he is doing. An individual has to motivate himself and that is possible only when he would love his work . Imagine what would happen if the maid-servant who is coming everyday to your . What is important is to see how the sweeper and the cobbler are performing. he has to love his work and perform it wholeheartedly. • DIGNITY OF WORK Dignity of work is very much important as far as Indian ethos is concerned. nothing can satisfy a man unless he himself feels in that manner. One should work with total devotion and firm determination i. They are also providing good services to the society. worthy and honourable. Management based on Indian ethos lays stress on Sarvabhutastha ‘Atmanam Sarvabhutani chatmani’ which means to treat all as equals. it will bring inner happiness and bliss. he should dothat .
senses. are objective. but we feel that He exists. patience. our body. Creation i. God is subjective whom we cannot see. Indian ethos has never said earning profit is not permissible. etc. foresightedness. we cannot touch. But while making profit he should be very cautious that he is making it ethically. • Creator and Creation Indian Ethos emphasizes that subjectivity and objectivity are of equal importance. they are intangible. • Day To Day Life – A Balanced Life . Whereas the inputs or resources required for production are tangible and objective. integrity.e. Then it would be the highest form of management creating an atmosphere of ‘anand’ or bliss. Creator i. Mahabharat that poverty is a sin. to become an effective organization. management must focus on dignity. that would be the highest form of management. Arjuna has said in Shanti Parvas. intuition. providing best quality service to them and fulfills other social responsibilities as well. not doing injustice to any of the stakeholders.flat is not coming for five days or the BMC workers who carry all the garbage in your locality are on strike for one month! Therefore. intellect etc. integrity.e. forbearance. and can create a harmonious blending between the two. When a businessman runs the business and earns profit there is nothing wrong in that. Human and ethical values or qualities like courage. are subjective qualities. • Ends Do Not Justify Means Ends indicate profit making and means are the methods and processes one is following while managing the business.
becoming an enlightened soul) are the four Purushartha of life. But what happens practically .e. the Indians are materialistic. • Bliss (Ananda) The concept of ‘bliss’or ananda goes beyond happiness. techniques and tools and if required we are going for downsizing or rightsizing or restructuring etc. Kama (Sense Pleasure) and Moksha(freedom from bondage i. pleasure and pain in the same manner. Reflection within our own self with a tranquil mind. Dharma(Righteousness). profit-oriented. The ‘Bhagvadgita’ also emphasis on this principle. Meditation. he accepts life’s happiness and misery. We do bhajan in the trains while commuting from Borivli to Churchgate or read scriptures. It helps us to go beyond ourselves treating everyone equally. Love. It means attainment of eternal happiness. Indians go to missions or ‘ashrams’ to learn about spiritual life. We are interested to earn more and more just like the individuals from other countries.We. to reach the state of blissfulness. It indicates one can earn money.relation between spiritual and material life of human beings.e. paying proper respect to others. Such inner guidance helps the wisdom manager to sort out the problem in a creative manner. prayer are various forms of spirituality within us. We. But at the same time we are spiritualistic. When one becomes equanimous. it is mentioned that without profit and wealth both virtue and desire cannot be won. and then wherever try to help those people who have been sached for the sake of organization. our inner core being the source of wisdom which influences us to deal with others with compassions. helps in drawing out solutions from within. enjoy all materialistic pleasure but while making money he should be righteous and his ultimate objective should be to attain Moksha. Understanding and empathy. Basically spiritually is a refined state of mind. and we also think what we should do to attract the customer. Each one of us is having a Spiritual Centre within us i. Indian ethos believes that there is a close inter. Artha (Wealth). We are learning new management concepts. This is our culture. In Mahabharata.
etc helps us to overcome corruption is the Indian philosophy. If any wants to maintain his public image he should not follow unethical path. dharma. Corruptness makes poor people suffer. He is interested in maintain a good public image. epics like RAMAYANA.is majority of us forget Dharma and Moksha and crave for more money and all materialistic pleasures. CORRUPTION AND INDIAN PHILOSOPHY People become corrupt because of greed (lobha) and self centeredness. selfless work. Indian tradition says that one should not think of ‘preyas’ or temporary pleasures which are gained by being corrupt. group of individuals and the society at large concieve and practice”. the MAHABHARATA and the KORAN. Indian concepts like ‘ends do not justify means’. Real respect comes from within and that comes only for those who are honest in their dealings. Indian Culture Culture is “the integral sum of values which an individual . sattvik guna. Our culture is based on ancient scriptures like the VEDAS. . the UPANISHADS. The fact is that even a corrupt person desires to have name and fame in the society. Economy also suffers as money gets concentrated to some self centered people.
More materialistic in its approach. Western culture is different than Indian culture. . Western Culture Emphasis on professional relationship It emphasizes on nuclear family. Emphasis on personal relationship. Elders do not interfere in young ones life. 4. DIFFERNCE BETWEEN INDIAN AND WESTERN CULTURE Indian Culture 1. They believe in total independence. A unique combination of materialism and spiritualism. 3. Hence there is a great difference. freedom. Profit maximization is the ultimate goal. Balance between profit making and social welfare. 2. It believes in joint family. non-interference.
therefore. It forms the foundations of their characters. beliefs and notions of Japan differ that of America. its value system also differs from another organization situated in some other country. It believes in survival of the fittest. There may be some similarity. their beliefs .e. team spirit. in a given situation they behave in a particular manner. continuous.for the people living in a particular nation. small improvements. It believes in TYAGA. but they are not the same. their way of looking at the world . cooperation. An organization is a part of the society . for a group of people . china . The culture of various countries differ. Values determine what is right and what is wrong for an individual . their tradition . MACRO VISION: . integrity. A comparison of the value system of Japan. America and India are given below: Japan DEDICATED TO SERVICE: Japanese believe in hard work being totally dedicated and thus providing best quality products to the customers. china or India. They believe in kaizen i. Individual’s value system decide the dos and the don’ts in their life. their value system. The values. A Comparative Study Of Value System In order to understand the members of a particular society. it is required to have some idea of their daily lives . It indicates that like Indians they treat work as worship. Depending on their value system .5. as far as an organization in a particular nation is concerned.
It means employees should be involved in the decision making process along with management. Before entering their home. Thus they lead a peaceful life which enhances their productivity level. when a Japanese joins an organization he is totally dedicated and gives his best output because he knows this output will help in nation building. They earn profit but not at the cost of quality. Emphasizes spiritualism: Another characteristic of Japanese is that they are inclined towards spirituality. Professional life kept away from personal life: Japanese also believe not to carry office work at home and external problems at home. Team spirit: Japanese value system emphasizes on team spirit. believe in intuition and six sense. Therefore. They follow a custom.therefore. will contribute in economic growth and development of nation. It creates harmony and positive synergy. In an organization or in society team spirit needs to be developed. attend lectures on spiritualism. They practice meditation. They believe in joint dicision making. they keep their shoes outside and enter inside bare footed to indicate that external stress and strain should be kept outside. They provide products and services to the customers and never ready to cheat them. Thus individual priority. External disturbances should not create disharmony in their personal life. They love their country and are honest and dedicated towards it . team output becomes better compared to individual output. Sometimes they might know . goals and objectives become the second criteria for the Japanese. Thus they provide service to the community and fulfill social responsibility. Business ethics: Japanese believe in business ethics. They do business fairly. Japanese are patriots by nature.Japanese value system is such that they are more oriented to look at things from macro perspective .
They have holistic concern for employees. Japanese have 2 concepts about the opinion. The individuals are expected to control their ego. Informal relationships: People in Japan believe in informal relationships. Japanese value system: They are courteous and generous people. They do not believe in using mobile phones in trains unless it is allowed to do so as it disturbs the fellow passengers. hatred. Non interruptions: Japanese also insist to avoid interrupting when someone is thinking or speaking. Holistic approach: Japanese are ever ready to spend on the training of the employees.better than management. as they believe that the employees will be with the organization for the long time. For example. Japanese value system emphasizes not to express one’s opinion directly. Self management: Japanese culture also give importance on self discipline and self control. greediness and maintain service attitude. One is ‘honne’ (real opinion) and other is ‘tatemae’ (public opinion). Long term relationships: . It is flexible in approach and emphasizes in agreeing with people around as much as possible. Therefore. anger. joint decision making will lead to better decision. It emphasizes more to give then to take from professional life. in an organization employees can communicate directly with higher authorities.
customers will be loyal to them. ambitious and hard working. because they have realized the emptiness of mere materialism. They are achievement oriented. Believe in non-interference: Americans are not much inclined to the family. individuals can take the decision on their own without bothering about their parents. America: Materialistic: As compared to Japan. but a part of organization and work accordingly. Relationship based in give and take: American culture believes in developing relationship of give and take in work life. After becoming adult. They believe the relationship to be formal in professional life. They give the best service not only to nation but also the whole world. Generally Americans are focused to earn more and more money and enjoy all the luxuries in life. interested to attain challenging goals. Now a days many Americans are getting attracted towards spiritualism.Japanese look at things from long term perspective. Equity and co-operation: . American are more materialistic in their approach as compared to Japanese. American value system differs to great extent. They believe in continuous improvement and ever ready to work hard with sincerity and dedication. They know due to this attitude. They provide best quality service to the customer. They employees also feel that they are not mere employees. They regard that relationship should be mutually beneficial.
They are focused in building the team spirit to attain organization goals and objectives.’ In business world Chinese people emphasizes on punctuality. He reached his destination and gifted his friend that feather and told him what happened. sincere. if tomorrow he is not required or his performance is not up to the mark he need to be sacked. It indicates they do value job security unlike Japanese Loyal to the profession: Americans are more loyal not to the organization but to the profession. he must be rewarded. an employee’s performance is good. But while encouraging the team spirit. Generally preferred top-down approach: As far as decision making is concerned. Jen and yi: . but it is the thought that counts and spreads everywhere. No job security: Americans believe that if today. kind hearted and selfless by nature. For him it was a priceless gift. If they get better opportunity they will leave the organization and join somewhere else. But in his efforts he got hold of nothing but a feather. China: Chinese value system that emphasizes that people should be truthful. His friend became moved by the story and his sincerity. Once upon a time a man went on a long journey to visit his friend with a swan as a gift. generous. The saying in Chinese is ‘The gift is nothing much. generally major decisions are taken at the top and communicated at the lower level to take action. individual’s performance is also rewarded. Thought counts: One short story will help us to understand Chinese culture. On the way the swan escaped and the man tried to catch it.They believe in equity and co-operation.
Chinese prefer to deal with people they know and trust. This in Indian value system. Jen and yi. They emphasize to maintain a life full of love. These two qualities should be there in the people. more emotional: The value system of India is oriented towards family. It will help in insuring that business will be successful. Even grown ups while taking any decision consult with seniors. It emphasizes on accepting and harmonizing with the flow. Family oriented. Indian ethos emphasizes to respect the elders specially the parent and teachers Humility and respect for others: Indian ethos emphasizes on humility and respect for others. Unlike western culture. getting passes Sunil Gavaskar. Emphasize on gunaxi: Guanxi or relationship is an important Chinese business element. It helps to minimize the risk. It means doing without forcing. you cannot really get passed them’. Jean means love and friendship whereas yi means righteousness. harmony and peace. ex ceo of Infosys.Chinese are keen to use the words. India: Co-operation: Indian philosophy instead of killer instinct and tough competition focuses more towards co-operation. frustration and disappointments. Think about Narayan Murthy. It will help in determining the competitive standing of an organization in the long run. Therefore. Trustworthiness is a very important component in Chinese tradition. Sachin Tendulkar commented ‘Heroes are heroes forever. Respect to others: . Chinese culture believes in wu wei. He has been having very good relationship with Azim Premji of Wipro though they were competitors.
employees. (d) Vishwastata —trusteeship. Others means not only the fellow human beings but objects as well. It builds enduring bonds with shareholders. (f) Vividhata — variety or innovation ensuring flexibility in approach. It is important to be genuine in purpose. Corporate Governance can be following age-old ‘mulyas’ (values): drawn from the (a) Lok Sangraham — public good which means greatest possible good of all.It focuses to show respect to others. providing a level playing field to all and ensuring fair competition. (c) Swatantra — autonomy and independence. Then only he can manage others effectively. In the Indian context. Indian Corporate Governance Corporate governance leads to corporate excellence. aligned with natural law. borrowers. a person should know how to manage himself. implying that management is a trustee of stakeholders. in business decisions. Before managing others effectively. it must be structured according to the principles of Vedas. investors. suppliers. customers and business constituents. (b) Dhanam — creation of wealth through competence (kaushalam) and productivity (utpadakta). Straight forward in execution and learn not to repeat mistakes. . depositors. Self management: Indian Ethos believe that self management is the essence of management. Corporate governance means being true to own belief and it constantly teaches the value of understanding the stakeholders. (e) Dharm yudh — fair battle.
restrictions on non audit fee/work. The major aspects of terms of reference of the committee were (i) rotation of auditors/auditing partners. random scrutiny of accounts etc. The Government of India constituted Naresh Chandra Committee to look into various aspects of Auditor-company relationship and regulating auditors. the OECD principles emphasize that the corporate governance framework should assure that the rights of stakeholders that are protected by law are respected and stakeholders have the opportunity to obtain effective redress for violation of their rights.. procedures for appointment of auditors and determination of audit fees. To promote and raise standards of corporate governance in respect of public listed Indian companies (including the banks). which include board structure. the major emphasis of Organisation of Economic Co-operative & Development (OECD) principles of corporate governance is on protection of shareholders’ rights. . While some more efforts are required to protect the stakeholders’ rights. .In developing countries like India. (ii) examine measures required to ensure that the management and auditors actually present the true and fair statement of the affairs of companies. In India. Regarding the protection of stakeholders’ rights. and how their independence and effectiveness can be ensured. (iii) examine if the present system of regulation of the profession of Chartered Accountants. most of the suggestions of the committee are recommendatory in nature. etc. protection of stakeholders’ rights and timely and accurate disclosure on all material matters. processes and disclosure on material matters. the Kumar Mangalam Birla Committee Report (clause 49 of the Listing Agreement) provides both mandatory and recommendatory ways. Company Secretaries and Cost Accountants is sufficient and has served well the concerned stakeholders. Regarding shareholders’ rights. such as personal certification by directors. including the ownership and governance. especially the small investors and whether there is advantage in setting up an independent regulator and (iv) examine the role of independent directors. a small beginning was made by the Confederation of ndian Industry (CII) followed by the professional bodies like the Institute of Company Secretaries of India (ICSI) during the years 1996-97 to focus the attention of Indian corporate sector on the imperative need to evolve new norms of governance to sustain and develop Indian industry on healthy lines.
CONCLUSION Business ethics and corporate governance are interlinked with one another. Corporates have to be ultimately good corporate citizens. It implies a wide acceptance within. During a period of transition from a controlled to market driven economy. dynamic mission and a new mandate to follow best practices of governance. Our corporate bodies need to be perceived as adhering to established norms. Such a society as ours has plenty of rules and regulations. India’s corporate sector has a new tryst with destiny. mission of an organization. which is transparent and is perceived as such. To face the formidable challenges of the future. Business ethics provides philosophical base. It is being increasingly recognized that being a responsible corporate citizen is important in ensuring long-term success of a company. whereas corporate governance is a shared way of corporate functioning and not just a set of rules. . but its adherence to the rules that decides the issue. Professionalism helps the corporation to achieve its desired goal. basic fundamental and philosophical and structural changes take place. vision. of a code of governance. Corporate action needs to conform to letter and spirit in which society allows corporates to function. the corporate sector has to be empowered with a new vision.