Business Ethics

Lecture 19 & 20
Ethical Expectations from
Business
 Purity of mind
 Call of the “inner voice”
 Driven by values rather than avarice
 Making profits but not profiteering
 Moral Myopia
 Self serving to serving
 Behaving responsibly or with virtue
 Avoidance of Ethical Fading

Absence of which causes conflict between Employees and

Businesses during strategy formulation, implementation and
generally in the performance of work.
Characteristics of Ethical
Organisations
 They are at ease interacting with diverse internal or external
stakeholders groups. The ground rules of these firms make the
good of these stakeholder groups part of the organisations
own good
 They are obsessed with fairness. Their ground rules emphasize
that the other person’s interest count as much as their own
 Responsibility is individual rather than collective, with
individuals assuming personal responsibility for actions of the
organisation. These organisations’ ground rules mandate that
individuals are responsible to themselves.
 They see their activities in terms of purpose. This purpose is a
way of operating that members of the organisation highly
value. And purpose ties the organisation to its environment
There will be clear communication in ethical organisations.
Minimized bureaucracy and control paves the way for sound
ethical practices.
Mark Pastin: The Hard Problems of Management: Gaining the
Ethical Edge
Expected Ethical Standards
of Managers
 Integrity
 Impartiality
 Responsive to Public Interest
 Accountability
 Transparency
 Honesty
 Understanding and avoiding Ethical Blind Spots

Absence of which can create major and unwarranted

conflicts in the conduct of business
Values

 Self-chosen beliefs and ideals

 Internal, subjective, based on how we see the
world
 Influenced by upbringing, society, and personal
reflection
 May change over time

The worth or priority we place on people,

things, ideas, or principles
 Defining your Values

 Step 1: Identify the times when you were happiest

 Step 2: Identify the times when you were most proud
 Step 3: Identify the times when you were most fulfilled and
satisfied
 Step 4: Determine your top values, based on your experiences of
happiness, pride, and fulfillment
 Step 5: Prioritize your top values
 Video

Creating Ethical
Cultures in Business
An Understanding

 Virtues
 Wisdom, Courage, Humanity, Justice, Temperance
(moderation or self restraint in action, statement, self –
control), Transcendence ( going beyond ordinary limits,
surpassing, exceeding)
 Values
 Honesty, Respect, Responsibility, Fairness and
Compassion.
Making an Ethical Decision

 Address and understand the ethical concern/issue

 Determine the effect and identify the affected parties
 List down the facts that affect the parties and the values
compromised
 Determine the best and worst case scenario
 Understand what others think
 Having more than one opinion helps in arriving at a well
rounded solution to deal with the situation
Paradigms and Mind Sets
Foundation for Ethical Action
 Definition of a Paradigm

The way we see,

understand, and interpret the
world; our mental map.

Foundation 7
 See-Do-Get

Paradigm

Result Behavior

Foundation 7
 See-Do-Get Model

Paradigm

Result Behavior

Foundation 7
 Understanding Ethical Behavior
using the Proactive Model
Stimulus Response
FREEDOM TO
CHOOSE
ACCORDING
TO VALUES
Understanding Ethical Behavior
using the Proactive Model
Stimulus Response
Freedom
to
Choose

Self Awareness
Independent Will

Imagination Conscience
 USING THE FOUR HUMAN
ENDOWMENTS TO BECOME ETHICAL

Self-Awareness: Our ability to examine our own

thoughts, moods, and behaviors
Imagination: Our ability to visualize beyond our
current experience and circumstances
Conscience: Our understanding of right and wrong
Independent Will: Our ability to act independent of
external influences

Abilities that will create “ pre – scripting “ or muscle

memory to create and sustain ethical outcomes
 Video

Teaching Business
Ethics: Mary Gentile
 GVV: Assumptions
 I want to voice and act upon my values
 I have voiced my values at some points in the past
 I can voice my values more often and more effectively
 It is easier for me to voice my values in some contexts than others
 I am more likely to voice my values if I have practised how to respond to
frequently encountered conflicts
 My example is powerful
 Although mastering and delivering responses to frequently heard
rationalizations can empower others who share my views to act, I cannot
assume I know who those folks will be.
 The better I know myself, the more I can prepare to play to my strengths
and, when necessary, protect myself from my weaknesses
 I am not alone
 Although I may not always succeed, voicing and acting on my values is
worth doing
 Voicing my values leads to better decisions
 The more I believe its possible to voice and act on my values, the more likely
I will be to do so.
The 7 Pillars to Giving Voice to
Values ( GVV)
GVV
 Values
 Some values are widely shared across cultures and contexts
(as well some that may not be). Different ways to effectively
appeal to the most commonly shared values when facing
ethical conflicts, as well as the mindset needed to be
effective in doing so –avoiding parochialism, preaching,
paternalism, and pettiness.
 Choice
 The freedom, creativity, and confidence that are unleashed
once values conflicts are truly embraces as choices. Using
the four endowments.
 Normalization
 Cutting emotions and being more matter of fact. Such an
approach can have the effect of normalizing and defusing
the topic not only for ourselves but also for the individual
with whom we hope to discuss them.
GVV
 Purpose
 Understanding the different levels purpose (personal,
professional, organizational, societal) and looking at the
differential impacts of a narrow versus a broader purpose
definition at each level.
 Self Knowledge and Alignment
 Crafting a “self story” that provides clues as to how to
reframe the values conflicts each one of us may encounter
so that voicing our values will be the most comfortable
default position.
 Finding my Voice
 Finding power in our positions. Developing the likelihood and
impact of self-expression over the course of one’s career.
 Reasons and Rationalizations
 Avoiding the commonly heard “professional rationalizations”
 Video

Opportunists,
Pragmatists, and
Idealists: Mary Gentile
GVV: Understanding Your
Self to become Ethical.
 Starting Assumptions for Giving Voice to Values
 A Tale of Two Stories
 Enablers for Voicing Values: Some Examples
 Personal – Professional Profile
 Guidelines for Peer Coaching
 An Action Framework for Giving Voice to Values: The
To Do List.
 Video

Ethics for People on

the Move…Catharyn
Baird
Rights/Responsibilities Lens Relationship Lens
Why am I making How do I use my
this choice? power & resources
fairly?

Seek the Truth:

Clarifying your
Intentions

What do I really What kind of

want & need to be character do I want
happy? to develop?

Results Lens Reputation Lens

Rights/Responsibilities Lens Relationship Lens

How can I treat How can I care for

Others as they want those with no
to be treated? power?

Caring For Others:

Seek that which is
Good

How can I treat For whom am I role

others with respect? model?

Results Lens Reputation Lens

Rights/Responsibilities Lens Relationship Lens
Be honest and
responsible even Be fair in all that you
when no one is do.
watching.

The
Philosopher's
advice

Be compassionate
Be respectful of
as you align your
others as you seek
actions with your
the greatest good.
core virtues
Results Lens Reputation Lens
Objectives of the Course

 To recognize and appreciate the role of ethical issues

in business.
 To apply important concepts and frameworks of moral
reasoning to complex business issues to understand
and create the common good.
 To develop a perspective that includes an ability to
formulate, analyse, and create decisions in ethical
term that enhance the entity’s brand value
 To critically examine one’s personal ethics/values,
create an internal mechanism to voice these values
as well as endure.
 Video

The Sound of Silence

“Live a life to impress the Creator not the creation.”

Shivaji Gupta Roy

shivajiguptaroy@gmail.com
+919831091389 / 9910381521