Ethical Principles in Business

1. Honesty
2. Integrity
3. Promise Keeping
4. Loyalty
5. Fairness
6. Concern for others
7. Respect for others
8. Law abiding
9. Commitment to Excellence
10. Leadership
11. Reputation and Morale
12. Accountability
1. HONESTY. Be honest in all communications and actions. Ethical executives are, above all, worthy of trust and honesty is the
cornerstone of trust. They are not only truthful, they are candid and forthright. Ethical executives do not deliberately mislead or
deceive others by misrepresentations, overstatements, partial truths, selective omissions, or any other means and when trust requires it
they supply relevant information and correct misapprehensions of fact.
2. INTEGRITY. Maintain personal integrity. Ethical executives earn the trust of others through personal integrity. Integrity refers
to a wholeness of character demonstrated by consistency between thoughts, words and actions. Maintaining integrity often requires
moral courage, the inner strength to do the right thing even when it may cost more than they want to pay. The live by ethical
principles despite great pressure to do otherwise. Ethical executives are principled, honorable, upright and scrupulous. They fight for
their beliefs and do not sacrifice principle for expediency.
3. PROMISE-KEEPING. Keep promises and fulfill commitments. Ethical executives can be trusted because they make every
reasonable effort to fulfill the letter and spirit of their promises and commitments. They do not interpret agreements in an
unreasonably technical or legalistic manner in order to rationalize non-compliance or create justifications for escaping their
commitments.
4. LOYALTY. Be loyal within the framework of other ethical principles. Ethical executives justify trust by being loyal to their
organization and the people they work with. Ethical executives place a high value on protecting and advancing the lawful and
legitimate interests of their companies and their colleagues. They do not, however, put their loyalty above other ethical principles or
use loyalty to others as an excuse for unprincipled conduct. Ethical executives demonstrate loyalty by safeguarding their ability to
make independent professional judgments. They avoid conflicts of interest and they do not use or disclose information learned in
confidence for personal advantage. If they decide to accept other employment, ethical executives provide reasonable notice, respect
the proprietary information of their former employer, and refuse to engage in any activities that take undue advantage of their previous
positions.
5. FAIRNESS. Strive to be fair and just in all dealings. Ethical executives are fundamentally committed to fairness. They do not
exercise power arbitrarily nor do they use overreaching or indecent means to gain or maintain any advantage nor take undue advantage
of another’s mistakes or difficulties. Ethical executives manifest a commitment to justice, the equal treatment of individuals, tolerance
for and acceptance of diversity. They are open-minded; willing to admit they are wrong and, where appropriate, they change their
positions and beliefs.
6. CARING. Demonstrate compassion and a genuine concern for the well-being of others. Ethical executives are caring,
compassionate, benevolent and kind. They understand the concept of stakeholders (those who have a stake in a decision because they
are affected by it) and they always consider the business, financial and emotional consequences of their actions on all stakeholders.
Ethical executives seek to accomplish their business objectives in a manner that causes the least harm and the greatest positive good.
7. RESPECT FOR OTHERS. Treat everyone with respect. Ethical executives demonstrate respect for the human dignity,
autonomy, privacy, rights, and interests of all those who have a stake in their decisions; they are courteous and treat all people with
equal respect and dignity regardless of sex, race or national origin. Ethical executives adhere to the Golden Rule, striving to treat
others the way they would like to be treated.
8. LAW ABIDING. Obey the law. Ethical executives abide by laws, rules and regulations relating to their business activities.
9. COMMITMENT TO EXCELLENCE. Pursue excellence all the time in all things. Ethical executives pursue excellence in
performing their duties, are well-informed and prepared, and constantly endeavor to increase their proficiency in all areas of
responsibility.
10. LEADERSHIP. Exemplify honor and ethics. Ethical executives are conscious of the responsibilities and opportunities of their
position of leadership and seek to be positive ethical role models by their own conduct and by helping to create an environment in
which principled reasoning and ethical decision making are highly prized.
11. REPUTATION AND MORALE. Build and protect and build the company’s good reputation and the morale of it’s employees.
Ethical executives understand the importance of their own and their company’s reputation as well as the importance of the pride and
good morale of employees. Thus, they avoid words or actions that that might undermine respect and they take affirmative steps to
correct or prevent inappropriate conduct of others.
12. ACCOUNTABILITY. Be accountable. Ethical executives acknowledge and accept personal accountability for the ethical quality
of their decisions and omissions to themselves, their colleagues, their companies, and their communities.
Human resource management deals with manpower planning and development related activities in an organization.
Arguably it is that branch of management where ethics really matter, since it concerns human issues specially those of
compensation, development, industrial relations and health and safety issues. There is however sufficient disagreement
from various quarters.

There are different schools of thought that differ in their viewpoint on role of ethics or ethics in human resource
development. One group of thought leaders believes that since in business, markets govern the organizational interests
and these interests are met through people, the latter are therefore at the highest risk. They believe that markets claim
profits in the name of stakeholders and unless we have protocols, standards and procedures the same will develop into a
demon monopolizing markets and crushing human capital; HR ethics are become mandatory.

There is another group of ethicists inspired by neo-liberalism who believe that there are no business ethics apart from
realization of higher profits through utilization of human resources. They argue that by utilizing human resources optimally,
there is more value creation for the shareholders, organization and the society and since employees are part of the
society or organization, they are indirectly benefited. Nevertheless ethics in human resource management has become a
perennial debate of late!

Discussions in ethics in HRD stem from employee relationships and whether or not there can be a standard for the same.
Employee rights and duties and freedom and discrimination at the workplace are issues discussed and covered by most
texts on the topic. Some argue that there are certain things in employment relationship that are constant others disagree
with the same. For example, right to privacy, right to be paid in accordance with the work (fair compensation) and right to
privacy are some areas that cannot be compromised upon.

Ethics and Market System

The kind of market system affects business and HR ethics; the latter thus becomes negotiable. In occupations where the
market conditions do not favor the employees it is necessary to have government and labor union interventions in order to
control the possible exploitation. In free market system, employees and the employer are almost equally empowered,
negotiation create win win situations for both the parties. Government or labor union interventions become harmful.

Globalization has brought about the concept of globalizing labor, trade unions have started to decline and the role of HR
as such in issues like employee policies and practices has become a debatable topic. In fact many people are of the
opinion that HR is nothing but an arm of the stakeholders through which major strategic and policy decisions are divulged
geared towards profit making!

Thought there can be no single opinion on ethics in HR that is convincing. Market in itself is neither an ethical institution
nor unethical and no policies and procedures alone cannot govern and align markets to human well being. However the
requirement of such policies and procedures can also not be denied. In lieu of this HR ethics should take care of things
like discrimination (sexual, religion, age etc), compensation, union and labor laws, whistle blowing, health and safety of
the
 Cash and Compensation Plans

There are ethical issues pertaining to the salaries, executive perquisites and the annual incentive plans etc. The
HR manager is often under pressure to raise the band of base salaries. There is increased pressure upon the HR
function to pay out more incentives to the top management and the justification for the same is put as the need to
retain the latter. Further ethical issues crop in HR when long term compensation and incentive plans are designed
in consultation with the CEO or an external consultant. While deciding upon the payout there is pressure on
favouring the interests of the top management in comparison to that of other employees and stakeholders.

 Race, gender and Disability

In many organisations till recently the employees were differentiated on the basis of their race, gender, origin and
their disability. Not anymore ever since the evolution of laws and a regulatory framework that has standardised
employee behaviours towards each other. In good organisations the only differentiating factor is performance! In
addition the power of filing litigation has made put organisations on the back foot. Managers are trained for
aligning behaviour and avoiding discriminatory practices.

 Employment Issues

Human resource practitioners face bigger dilemmas in employee hiring. One dilemma stems from the pressure of
hiring someone who has been recommended by a friend, someone from your family or a top executive.

Yet another dilemma arises when you have already hired someone and he/she is later found to have presented
fake documents. Two cases may arise and both are critical. In the first case the person has been trained and the
position is critical. In the second case the person has been highly appreciated for his work during his short stint or
he/she has a unique blend of skills with the right kind of attitude. Both the situations are sufficiently dilemmatic to
leave even a seasoned HR campaigner in a fix.

 Privacy Issues

Any person working with any organisation is an individual and has a personal side to his existence which he
demands should be respected and not intruded. The employee wants the organisation to protect his/her personal
life. This personal life may encompass things like his religious, political and social beliefs etc. However certain
situations may arise that mandate snooping behaviours on the part of the employer. For example, mail scanning
is one of the activities used to track the activities of an employee who is believed to be engaged in activities that
are not in the larger benefit of the organisation.

Similarly there are ethical issues in HR that pertain to health and safety, restructuring and layoffs and employee
responsibilities. There is still a debate going on whether such activities are ethically permitted or not. Layoffs, for
example, are no more considered as unethical as they were thought of in the past.
Ethics in Marketing (Marketing Management)
Ethics are explained as the moral principles and values that oversee the actions and decisions of a person or
group. They serve as guidelines to act rightly and justly when faced with ethical problem. Ethics in marketing
denotes to the practice of marketing in business in an ethical and moral way. It means intentionally applying
standards of justice and represents the company to others. While the objective of any business is to be money-
making, if a company has to use counterfeit advertisement, or misleading or objectionable marketing tactics to
attain it, it's really not running a successful marketing campaign. There can be short term gain in doing
something unethical. Researchers stressed on the fact that acts in an ethical manner will get in long-term
rewards for their actions. Doing business in ethical way can build loyal customers, get more referrals, and will
be building a positive image about their business. Marketing has the potential to influence beliefs and
behaviours. It is important to maintain high ethical standards to protect the interests of customers and the public,
and the reputation of clients. Marketing ethics has been developed with reference to business ethics that reflect
interest of various stakeholders. These ethics describe principles that are acceptable in marketplace. Marketing
is an activity which is at the front of business activities with regular interfaces with customers and general
public (Chonko 1995). The non-adherence to moral practices in marketing has paved way for two major
movements such as consumerism and environmentalism (Kotler and Armstrong 1996). These groups have
started exerting pressures on marketers to consider and act in an ethical manner. Interest in ethical concerns in
marketing has, considerably heightened (Hunt et al.1984). There is no overstatement in mentioning that
researches in marketing ethics have become a precursor of researches in ethics in other areas.

Murphy and Laczniak (1981) in theoretical analysis stated that "the function within business firms most often
charged with ethical abuse is marketing."They recognized several areas where research in marketing ethics was
essential. In 1989, Tsalikis and Fritzsche (1989) reviewed the literature on marketing ethics. Later, Gaski (1999)
conducted thorough research of marketing ethics and categorised the marketing ethics literature as falling into
(a) introduction to ethical problems, (b) questioning the inherent ethics of marketing activity, (c) empirical
studies of ethical beliefs and (d) direction and advice for making marketing more ethical.
Ethics in marketing: utilitarian approach:
"Marketing is human activity directed at satisfying needs and wants through exchange process" (Kotler and
Turner, 1981). Attribute of marketing is to give the satisfaction of the needs of consumers. Since the fulfilment
of consumers' needs is the major goal of marketing, it is considered that the principled approach which
dominates is, for the most part, utilitarian. Additionally, since the satisfaction of the needs of one's fellow man
is in itself nearly undeniable ideal, marketing managers tend perhaps to concern themselves less with the way in
which this ideal is attained, thereby neglecting the deontological facet of their actions. This image of marketing
has already been suggested by Fritsche and Becker (1983) and by Fraedrich et al. (1991). Briefly, since the
propensity in marketing is basically utilitarian, one is often inclined to believe that, on this level, it is highly
ethical.
A certain inconsistency emerges from the research of ethics in marketing. On the one hand, it is dominated by
utilitarian perspective, assures managers of a clear principles since they can consider the consequences of their
conduct as ethical. Alternatively, a utilitarian viewpoint does not necessarily mean that marketing is ethical. As
for marketing's deontological aspect, this does not seem to be a major concern for the majority of practitioners.
Codes of ethics have also been proposed as a means to accomplish high ethical standards in business. The
American Marketing Association has a general code of ethics for marketers. Similarly, many major companies
have also developed codes of ethics. Murphy and Laczniak stated that "corporate codes are somewhat
controversial", as to their effectiveness in resolving ethical conflict.
Issues in ethics of Marketing
Marketing has gripped with ethical mistreatment because marketing manager face some of the most difficult
ethical problems in business. Ethical problems occur only when an individual interacts with other people. Ethics
can be viewed in terms of the needs of' the individual and the needs of applicable others. The value system of
each individual consists of perceived sets of obligations toward others. Baumhart (1961) recognized the major
ethical problems that must be removed from business process such as 1. Gifts, gratuities, bribes, and "call girls,"
2. Price discrimination and unfair pricing, 3. Dishonest advertising, 4. Miscellaneous unfair competitive
practices, 5. Cheating customers, unfair credit practices, and overselling, 6. Price collusion by competitors, (7)
dishonesty in making or keeping a contract, and (8) unfairness to employees and prejudice in hiring.
Ethical conflict occurs when people perceive that their duties toward one group are inconsistent with their duties
and responsibilities toward some other group (including one's self). They then must attempt to resolve these
opposing obligations. Basically, Ethical conflicts in marketing can mainly arise in two contexts; firstly the
difference between the needs of company, industry, and society. Secondly, the conflict arises when the interest
of individual and organization vary (England, 1998). Bartels succinctly states "the nature of ethical conflict: In a
pluralistic society not one but many expectations must be met. Therefore, resolution of what is right to do
produces a balance of obligations and satisfactions. Ideally, full satisfaction of the expectations of all parties
would constitute the most ethical behaviour. This is impossible for expectations are often contradictory and
sometimes exceed social sanction. Therefore, skill and judgment must be used to guide one in determining the
point at which his own integrity can be best maintained." Marketing ethics denotes morals and standards
relating to marketing practices, including those related to 'four P's of marketing' and 'marketing research'. The
first few editorials on ethical issues in marketing published in the 1960s
Product issue is that it may be harmful and Fail to disclose information about product. Pricing issues emerge
when competitors making same product jointly to determine the price and manufacturers force retailers to
charge high prices. Company set low price to eliminate competitors. Promotion issues are associated with
deceptive advertising when the consumer is led to believe something which is not true. There is an exaggerated
claim of a product's superiority statements that may not be literally true. There are some distribution issues like
Slotting allowances in which fee paid by manufacturer to retailer in exchange of keeping their product in their
shelves. Grey market goods where foreign made products imported into countries by distributors that are not
authorized.
One of the major functions of marketing is the process of communicating the products or services to the
prospective customers. Every firm attempts to market their products, service in an efficient and effective way.
Advertising is an area which would need rigid laws and code of conduct when it comes to the style, content and
delivery aspects. The ethical standards has been utilized entirely by marketing experts but when it comes to
actual decision making, it is observed that very less indication in regards to the adoption of ethical principles is
seen. One of the areas where it applies to a larger extent is Ambush marketing which is an effort by a company
to relate its own brand to a sponsored activity without acquiring official rights. Doust (1997) proposes that the
degree to which a company agrees to "back off a bit' will to a large extent be determined by its own code of
ethics, and by whether that company views ambush marketing practices as unethical or simply good business
sense"
Ethics Compliance Programs

i. Development of code of ethics in which guidelines are developed by companies to help employees in order
to make ethical decisions.
ii. Consumerism where social movements that protect consumers from harmful business practices.
iii. Green marketing in which there is marketing of products and packages that are less toxic and recyclable.
iv. Corrective advertising in which advertising that clarifies previous deceptive claims.

To summarize, the ethics of marketing and its bond with the clients forms a basis to the victory of the
organization. Ethics are the honest values and principles that govern the actions and verdicts of an entity or
cluster. It is normal that customers anticipate to be treated in a fair manner and with regard. Reliability of
service, trustworthiness, responsiveness, understanding and reception of value addition to products are some of
the expectations of the customers. They do not want unrealistic promises, or deceptive offerings. There are
some ethical dilemmas for marketers to meet expectations of customers. Ethical issues arise due to the
dissimilarity between the individual and company's values and norms. When the products are not disclosed
properly then they are dishonourably marketing their product. To control these unethical behaviours are by
control them properly and then by making sure that everyone follow it. If someone does not follow rules then
the proper actions must be taken against them for breaching the codes of conduct. In sum, marketing ethics
indicates that there should be an apparent understanding of what is right and what is wrong in business.
Meaning of Management Ethics:
‘Management Ethics’ is related to social responsiveness of a firm. It is “the discipline
dealing with what is good and bad, or right and wrong, or with moral duty and obligation. It
is a standard of behaviour that guides individual managers in their works”.

“It is the set of moral principles that governs the actions of an individual or a group.”

Business ethics is application of ethical principles to business relationships and activities.

When managers assume social responsibility, it is believed they will do it ethically, that is,
they know what is right and wrong.

Ethical Activities:
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Amongst a host of ethical activities that managers can perform, a study conducted by
Barry Posner and Warren Schmidt highlights the following ethical activities observed
by managers:
1. The foremost goal of managers is to make their organizations effective.

2. Profit maximisation and stakeholders’ interests were not the central goals of the
managers studied.

3. Attending to customers was seen as important.

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4. Integrity was the characteristic most highly rated by managers at all levels.

5. Pressure to conform to organisational standards was seen as high.

6. Spouses are important in helping their mates grapple with ethical dilemmas.

7. Most managers seek the advice of others in handling ethical dilemmas.

Types of Management Ethics:

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Three types of management ethics or standards of conduct are identified by Archie B.

Carroll:
1. Immoral management:
It implies lack of ethical practices followed by managers. Managers want to maximise
profits even if it is at the cost of legal standards or concern for employees.

2. Moral management:
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According to moral management ethics, managers aim to maximise profits within the
confines of ethical values and principles. They conform to professional and legal standards
of conduct. The guiding principle in moral management ethics is “Is this action, decision, or
behaviour fair to us and all parties involved?”

3. Amoral management:
This type of management ethics lies between moral and immoral management ethics.
Managers respond to personal and legal ethics only if they are required to do so; otherwise
there is lack of ethical perception and awareness.

There are two types of amoral management:

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(a) Intentional:
Managers deliberately avoid ethical practices in business decisions because they think
ethics should be followed in non-business activities.

(b) Unintentional:
Managers do not deliberately avoid ethical practices but unintentionally they make
decisions whose moral implications are not taken into consideration.

Guidelines for Ethical Behaviour:

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Though every individual and group has a set of ethical values, the following
guidelines are prescribed by James O’Toole in this regard:
1. Obey the law:
Obeying legal practices of the country is conforming to ethical values.

2. Tell the truth:

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Disclosing fair accounting results to concerned parties and telling the truth is ethical
behaviour of managers.

3. Respect for people:

Ethics requires managers to respect people who contact them.

4. The golden rule:

The golden business principle is ‘Treat others as you would want to be treated’. This will
always result in ethical behaviour.

5. Above all, do no harm:

Even if law does not prohibit use of chemicals in producing certain products, managers
should avoid them if they are environment pollutants.

6. Practice participation – not paternalism:

Managers should not decide on their own what is good or bad for the stakeholders. They
should assess their needs, analyse them in the light of business needs and integrate the
two by allowing the stakeholders to participate in the decision-making processes.

7. Act when you have responsibility:

Actions which cannot be delegated and have to be taken by managers only (given their
competence and skill) must be responsibly taken by them for the benefit of the organisation
and the stakeholders.

Approaches to Management Ethics:

There are three approaches to management ethics:
1. Utilitarian approach:
In this approach, managers analyse the effects of decisions on people affected by these
decisions. The action rather than the motive behind the action is the focus of this
approach. Positive and negative results are weighed and managerial actions are justified if
positive effects outweigh the negative effects. Pollution standards and analysing the impact
of pollution on society is management ethics code under utilitarian approach.

2. Moral rights approach:

In this approach, managers follow ethical code which takes care of fundamental and moral
rights of human beings; the right to speech, right to life and safety, right to express feelings
etc. In the context of business organisations, managers disclose information in the annual
reports necessary for welfare of the people concerned. The nature, timing and validity of
information is taken into account while reporting information in the annual reports.

3. Social justice approach:

According to this approach, managers’ actions are fair, impartial and equitable to all
individuals and groups. Employees are not distinguished on the basis of caste, religion,
race or gender though distinction on the basis of abilities or production is justified. For
example, all employees, males or females with same skills should be treated at par but it is
justified to treat employees who produce more differently from those who produce less.

Need for Business Ethics:

Business ethics is important for the following reasons:
1. Business organisations are economic and social institutions that serve customers’ needs
by supplying them right goods at the right place, time and price. This is possible if the
institutions engage in ethical practices.

2. Business ethics help in long-run survival of the firms. Unethical practices like paying low
wages to workers, providing poor working conditions, lack of health and safety measures
for employees, selling smuggled or adulterated goods, tax evasion etc. can increase short-
run profits but endanger their long-run survival. It is important, therefore, for firms to
suffer short-term losses but fulfill ethical social obligations to secure their long-term future.

3. Business houses operate in the social environment and use resources provided by the
society. They are, therefore, morally and socially committed to look after the interests of
society by adopting ethical business practices.

4. Ethical business activities improve company’s image and give it edge over competitors to
promote sales and profits.

5. Legal framework of a country also enforces ethical practices. Under Consumer Protection
Act, for example, consumers can complain against unethical business practices. Labour
laws protect the interests of workers against unethical practices. Legal framework of the
country, therefore, promotes ethical business behaviour. Business houses want to avoid
Government intervention and, therefore, follow ethical practices.

Barriers to Management Ethics:

James A. Waters describe three “organisational blocks” of management ethics:
1. Chain of command:
If employees know that superiors are not following ethical behaviour, they hesitate in
reporting the matter up the hierarchy for the fear of being misunderstood and penalized.
The chain of command is, thus, a barrier to reporting unethical activities of superiors.

2. Group membership:
Informal groups lead to group code of ethics. Group members are strongly bonded by their
loyalty and respect for each other and unethical behaviour of any member of the group is
generally ignored by the rest.

3. Ambiguous priorities:
When policies are unclear and ambiguous, employees’ behaviour cannot be guided in a
unified direction. It is difficult to understand what is ethical and what is unethical.

Solutions to Barriers:
The following measures can improve the climate for ethical behaviour:
1. Organisational objectives and policies should be clear so that every member works
towards these goals ethically.

2. The behaviour of top managers is followed by others in the organisation. Ethical actions
of top managers promote ethical behaviour throughout the organisation.

3. Imposing penalties and threats for not conforming to ethical behaviour can reduce
unethical activities in the organisation. Formal procedures of lodging complaints help
subordinates report unethical behaviour of superiors to the concerned committees.

4. Educational institutions also offer courses and training in business ethics to develop
conscientious managers who observe ethical behaviour.

Values:
Values are a set of principles that people cherish. They enhance the quality of individual
and collective life. They involve personal and community discipline and sacrifice of
immediate gratification needs. Quality of life is a product of physical, social, environmental,
mental and spiritual health and wholeness. Values refer to intrinsic worth or goodness.

They are the beliefs that guide an individual’s actions. They represent a person’s belief
about what is right or wrong. Values lay standards against which behaviour is judged. They
determine the overall personality of an individual and the organization he is working for.
His family, peer group, educational institutions, environment and the work place develop
values in him. Values apply to individuals and institutions, both business and non-
business.

Values and Behaviour:

Values remain embedded in our minds since childhood. As children, we are taught what is
good, bad, right or wrong by parents, educational institutions and social groups. These
values become part of our behaviour and personality when we grow up and are transmitted
to future generations, thus, creating a healthy society.

In the business world, every person, whether manager or non-manager, whose behaviour is
value-based shapes the culture of the organisation. Organisation is a group of people
responsible for its formation, survival and growth. How good an organisation is depends
upon how good are the people managing it.
Good people are those whose actions and behaviour are based on a sound value system
and ethical principles. Value system is a combination of all values that an individual
should have. Values lay foundation for organisational success.

They develop the attitudes, perceptions and motives that shape the behaviour of people
working in the organisation. This develops a sound organisation culture that promotes
image of the organisation in the society. Values in individuals develop a value-based
organisation, society, nation and the world as a whole.

Values in Business Management:

There are many ways in which the basic human values – truth, righteousness, peace, love
and non-violence can be practiced in the day-to-day conduct of business. There are
different aspects of management such as marketing, finance, industrial relations, etc., but
the most important aspect is “man-management.” Each country has its own historical and
cultural background and Indian managers should not mechanically copy practices from
abroad but should keep in mind the Indian milieu and our national ethos.

Values of Managers:
Management is a systematic way of doing work in any field. Its task is to make people
capable of joint performance, to make their weaknesses irrelevant and convert them into
strengths. It strikes harmony in working equilibrium, in thoughts and actions, goals and
achievements, plans and performance, products and markets.

Lack of management will cause disorder, confusion, wastage, delay, destruction and even
depression. Successful management means managing men, money and material in the best
possible way according to circumstances and environment.

Most of the Indian enterprises today face conflicts, tensions, low efficiency and productivity,
absence of motivation, lack of work culture, etc. This is perhaps due to the reason that
managers are moving away from the concept of values and ethics.

The lure for maximizing profits is deviating them from the value-based managerial
behaviour. There is need for managers to develop a set of values and beliefs that will help
them attain the ultimate goals of profits, survival and growth.

They need to develop the following values:

1. Optimum utilization of resources:
The first lesson in the management science is to choose wisely and utilize optimally the
scarce resources to succeed in business venture.

2. Attitude towards work:

Managers have to develop visionary perspective in their work. They have to develop a sense
of larger vision in their work for the common good.

3. Work commitment:
Managers have to work with dedication. Dedicated work means ‘work for the sake of work’.
Though results are important, performance should not always be based on expected
benefits. They should focus on the quality of performance. The best means for effective
work performance is to become the work itself. Attaining the state of nishkama karma is
the right attitude to work because it prevents ego and the mind from thinking about future
gains or losses.

Managers should renounce egoism and promote team work, dignity, sharing, cooperation,
harmony, trust, sacrificing lower needs for higher goals, seeing others in you and yourself
in others etc. The work must be done with detachment. De-personified intelligence is best
suited for those who sincerely believe in the supremacy of organisational goals as compared
to narrow personal success and achievement.

Value based managers do the following to discharge their duties well:

a. Cultivate sound philosophy of life.

b. Identify with inner core of self-sufficiency.

c. Strive for excellence through ‘Work is Worship’.

d. Build internal integrated force to face contrary impulses and emotions.

e. Pursue ethico-moral righteousness.

4. Vision:
Managers must have a long-term vision. The visionary manager must be practical, dynamic
and capable of translating dreams into reality. This dynamism and strength of a true leader
flows from an inspired and spontaneous motivation to help others.

Vision includes the following:

(a) Forming a vision and planning the strategy to realize such vision.

(b) Cultivating the art of leadership.

(c) Establishing institutional excellence and building an innovative organization.

(d) Developing human resources.

(e) Team building and teamwork.

(f) Delegation, motivation and communication.

(g) Reviewing performance and taking corrective steps whenever called for.

The management gurus like Lord Krishna, Swami Vivekananda and Peter F. Drucker
assert that managers should develop the following values:
1. Move from the state of inertia to the state of righteous action.

2. Move from the state of faithlessness to the state of faith and self-confidence.

3. Their actions should benefit not only them but the society at large.

4. Move from unethical actions to ethical actions.

5. Move from untruth to truth.

6. ‘No doer of good ever ends in misery’. Good actions always produce good results and evil
actions produce evil results.

7. Take the best from the western models of efficiency, dynamism and excellence and tune
them to Indian conditions.