Lecture 2a: 1.

Short-notes- (a) Indian ethos, (b) ethics and values, (c) work ethos, (d) sources
of ethics, (e) concept of corporate ethics, (f) ethics management programme and (g) ethics
committee.
Lecture 2b: 2. Guidelines to develop a code of ethics for business firms
1. Write notes on:
(a) Indian ethos: Indian Ethos in Management refers to the values and practices that the
culture of India (Bharatheeya Sanskriti) can contribute to service, leadership and
management. These values and practices are rooted in Sanathana Dharma (the eternal
essence), and have been influenced by various strands of Indian philosophy. Indian
ethos and management has its roots in the culture of India. Indian culture is mainly
based on religions practices in India- Hinduism, Islam, Buddhism, Jainism,
Christianity, Sikhism, Zoroastrianism, and other religions. Indian ethos revealed by
Indian scriptures: (1) For one’s own salvation and for the good of the world, (2)
Worship people not only with material things but also by showing respect, (3)
Strength and inspiration for excellence in work comes from within- through prayer,
spiritual readings and unselfish work, (4) He who works with calm and balanced
mind achieves the most, (5) As we think, we succeed, so we become, (6) By mutual
co-operation, respect and fellow feeling, all of us enjoy the highest good both
material and spiritual, (7) Infinite happiness and infinite peace come to them who see
the Divine in all beings, and (8) Regard the person as a divine being. Features of
Indian ethos: (a) Indian ethos is based on the two universal truths: every Indian
believes that the god or the Supreme Power is in every body, and every one or
everything is interconnected at a deeper level. Love and sacrifice therefor emerge as
the only means for a meaningful living; (b) Divinity of a human being is not merely a
notion but a truth that can be experienced in the stillness of the mind; (c) The
individual or ‘self’ is the central focus; (d) The divine element in the individual is
only proportion of the universal or cosmic consciousness; (e) Indian ethos places
great emphasis on spiritual values; (f) Indian ethos is based on Indian scriptures that
provide eternal knowledge; Belief that all work is worthy and honourable; (g) Indian
ethos place emphasis on duties and responsibilities; (h) The scope of Indian ethos is
applicable to all walks of life such as business organizations, educational institutions,
political organizations, social organizations, etc.

(b) Ethics and values: Ethics or moral philosophy is a branch (Verst, et. al., 2015) of
philosophy that "involves systematizing, defending, and recommending concepts of
right and wrong behavior" (nternet encyclopedia of philosophy). The field of ethics,
along with aesthetics, concerns matters of value, and thus comprises the branch of
philosophy called axiology (Random House Unabridged dictionary). Ethics seeks to
resolve questions of human morality by defining concepts such as good and evil, right
and wrong, virtue and vice, justice and crime. As a field of intellectual inquiry, moral
philosophy also is related to the fields of moral psychology, descriptive ethics, and
value theory. Three major areas of study within ethics recognized today are: Meta-
 ethics, concerning the theoretical meaning and reference of moral propositions, and
how their truth values (if any) can be determined; Normative ethics, concerning the
practical means of determining a moral course of action; Applied ethics, concerning
what a person is obligated (or permitted) to do in a specific situation or a particular
domain of action. Values can be defined as broad preferences concerning appropriate
courses of actions or outcomes. As such, values reflect a person's sense of right and
wrong or what "ought" to be. "Equal rights for all", "Excellence deserves admiration",
and "People should be treated with respect and dignity" are representatives of values.
Values tend to influence attitudes and behavior and these types include ethical/moral
values, doctrinal/ideological (religious, political) values, social values, and aesthetic
values. It is debated whether some values that are not clearly physiologically
determined, such as altruism, are intrinsic, and whether some, such as acquisitiveness,
should be classified as vices or virtues. Features of values (Brief)- (1) It differs from
person to person, (2) Pack Permanent existence, (3) Stable and enduring, (4) Shapes
personality, (5) Types of values, (6) Judgemental element, (7) Hierarchy of values,
(8) Sources of values, (9) Enhances corporate image, and (10) Survival. Difference
between values and ethics (Brief): (1) Meaning, (2) Differs/ Common, (3) Motivates/
attracts, (4) Formulation, (5) Nature, (6) Basis: values from the basis of harmony in
relationships, (7) Examples, and (8) Sources.

(c) Work ethos: Work ethic is a belief that hard work and diligence have a moral benefit and an
inherent ability, virtue or value to strengthen character and individual abilities (Business
Dictionary.com). It is a set of values centred on importance of work and manifested by
determination or desire to work hard. Social ingrainment of this value is considered to
enhance character through hard work that is respective to an individual's field of work
(Marek, 2014). Factors influencing work ethos: (1) Application and dedication, (2) Loyalty, (3)
Attitude, (4) Corporate citizenship, (5) Passion, (6) Support to others, and (7) Humility.
Strong work ethics on the part of manages: (1) Authority and responsibility, (2) Team spirit,
(3) Equity, (4) Ethical personal policies, (5) Ethical in functional areas, (6) Professionalism,
and (7) Respectfulness.

(d) Sources of ethics (Brief): (1) Religion, (2) culture, and (3) law (a) Companies Act,
2013; (b) Indian Partnership Act, 1932; (3) Competition Act, 2002; (4) Foreign
Exchange Management Act, 1999; (5) Trade Marks Act, 1999; (6) Sale of Goods Act,
1930; (7) The Indian Contract Act, 1872; (8) Negotiation Instruments Act, 1881; (9)
Consumer Protection Act, 1986; (10) Factories Act, 1948; (11) Workmen
Compensation Act, 1923; Bonus Act, 2016; (12) Weights and Measures Act, 2011,
etc.

(e) Concept of corporate ethics: Business ethics (also known as corporate ethics) is a
form of applied ethics or professional ethics, that examines ethical principles and
moral or ethical problems that can arise in a business environment. It applies to all
aspects of business conduct and is relevant to the conduct of individuals and entire
 organizations (Stanford Encyclopaedia of Philosophy). These ethics originate from
individuals, organizational statements or the legal system. These norms, values,
ethical, and unethical practices are the principles that guide a business. They help
those businesses maintain a better connection with their stakeholders (Ferrel, 2016).
Business ethics refers to contemporary organizational standards, principles, sets of
values and norms that govern the actions and behavior of an individual in the business
organization. Business ethics have two dimensions, normative business ethics or
descriptive business ethics. As a corporate practice and a career specialization, the
field is primarily normative. Academics attempting to understand business behavior
employ descriptive methods. The range and quantity of business ethical issues reflects
the interaction of profit-maximizing behavior with non-economic concerns. Adam
Smith said in 1776, "People of the same trade seldom meet together, even for
merriment and diversion, but the conversation ends in a conspiracy against the public,
or in some contrivance to raise prices" (Smith, 1952). Governments use laws and
regulations to point business behavior in what they perceive to be beneficial
directions. Ethics implicitly regulates areas and details of behavior that lie beyond
governmental control. The emergence of large corporations with limited relationships
and sensitivity to the communities in which they operate accelerated the development
of formal ethics regimes (Jones, et. al., 2005). Corporate ethics/ values: corporate
citizenship behaviour, concern and caring, dependability, equity or fairness, good
governance, honesty, integrity, respect, social responsibility, and trustworthiness.
Corporate ethical values: (a) corporate citizenship behaviour, (b) concern and caring,
(c) dependability, (d) equity/ fairness, (e) good governance, (f) honesty, (g) integrity,
(h) respect, (i) social responsibility, and (j) trustworthiness. Role of corporate ethics:
(1) Customers, (2) Dealers, (3) Employees, (4) Financial institutions, (5) Government
agencies, (6) Shareholders, (7) Suppliers, and (8) Society.

(f) Ethics management programme: Organizations can manage ethics in their

workplaces by establishing an ethics management program.  In the words of Brian
Schrag, Executive Secretary of the Association for Practical and Professional Ethics,
clarifies, “Typically, ethics programs convey corporate values, often using codes and
policies to guide decisions and behavior, and can include extensive training and
evaluating, depending on the organization.  They provide guidance in ethical
dilemmas.”  Rarely are two programs alike. “All organizations have ethics programs,
but most do not know that they do,” wrote business ethics professor Stephen Brenner
in the Journal of Business Ethics (1992, V11, pp. 391-399).  “A corporate ethics
program is made up of values, policies and activities which impact the propriety of
organization behaviors.” Bob Dunn, President and CEO of San Francisco-based
Business for Social Responsibility, adds: “Balancing competing values and
reconciling them is a basic purpose of an ethics management program.  Business
people need more practical tools and information to understand their values and how
to manage them.” Benefits of Managing Ethics as a Program: (1) Establish
organizational roles to manage ethics; (2) Schedule ongoing assessment of ethics
 requirements; (3) Establish required operating values and behaviors; (4) Align
organizational behaviors with operating values; (5) Develop awareness and sensitivity
to ethical issues; (6) Integrate ethical guidelines to decision making; (7) Structure
mechanisms to resolving ethical dilemmas; (8) Facilitate ongoing evaluation and
updates to the program; and (9) Help convince employees that attention to ethics is
not just a knee-jerk reaction done to get out of trouble or improve public image.
Elements of best practices ethics programme: (1) Vision statement; (2) Value
statement; (3) Organizational code of ethics; (4) Ethics officer; (5) Ethics committee;
(6) Ethics communication strategy; (7) Ethics training; (8) Ethics help-line; (9)
Measurements and rewards; (10) Monitoring and tracking systems; (11) Periodic
evaluation; and (12) Ethical leadership.

(g) Ethics committee: An ethics committee is a body responsible for ensuring that
medical experimentation and human subject research are carried out in an ethical
manner in accordance with national and international law. An ethics committee in the
European Union is a body responsible for oversight of medical or human research
studies in EU member states. Local terms for a European ethics committee include:
(a) A Research Ethics Committee (REC) in the United Kingdom; (b) A Medical
Research Ethics Committee (MREC) in the Netherlands; and (c) A Comités de
Protection des Personnes (CPP) in France. Regional Committees: In the United
States, an ethics committee is usually known as an institutional review board and is
dedicated to overseeing the rights and well-being of research subjects participating in
scientific studies in the US. Similarly, in Canada, the committee is called a Research
Ethics Board (REB). In Australia, an ethics committee in medical research refers to a
Human Research Ethics Committee (HREC). In Canada, the Interagency Advisory
Panel on Research Ethics promotes "the ethical conduct of research involving human
participants." History: One of the most fundamental ethical principles in human
experimentation is that the experimenter should not subject the participants in the
experiment to any procedure they would not be willing to undertake themselves. This
idea was first codified in the Nuremberg Code in 1947, which was a result of the
trials of Nazi doctors at the Nuremberg trials accused of murdering and torturing
victims in valueless experiments. Several of these doctors were hanged. Point five of
the Nuremberg Code requires that no experiment should be conducted that is
dangerous to the subjects unless the experimenters themselves also take part. The
Nuremberg Code has influenced medical experiment codes of practice around the
world, as has the exposure of experiments that have since failed to follow it such as
the notorious Tuskegee syphilis experiment.

2. What are the guidelines to develop a code of ethics for business firms?
Guidelines to develop a code of ethics for business firms (Brief): (1) Customise your
code; (2) Involve employees; (3) Consult key stakeholders; (4) Outsource carefully; (5)
Consider good examples; (6) Clarity on scope; (7) Specific about implementation; (8)
Plan for education; (9) Clear about enforcement; and (10) Revise the code.
References
1. Bentham, Jeremy, 1789 [PML]. An Introduction to the Principles of Morals and
Legislation., Oxford: Clarendon Press, 1907.
2. Gandhi, M.K. 1928. Satyagraha in South Africa. Ahmedabad: Navjeevan Publication
House.
3. Gandhi, M.K. 1960. Trusteeship. Ahmadabad: Ahmedabad: Navjeevan Publication
House.
4. Kant, Immanuel. 1785. “First Section: Transition from the Common Rational Knowledge
of Morals to the Philosophical”, Groundwork of the Metaphysic of Morals.
5. Locke, John (1999). Two Treaties of Government. Cambridge University Press.
6. Mill, John Stuart. [1859] 2006. On Liberty. Penguin Classics. ISBN 978-0141441474. pp.
10–11.
7. Milton Friedman. 1962. Capitalism and freedom. USA: University of Chicago Press.
8. Ross, W.D. The Right and the Good (1930). Philip Stratton-Lake, ed. New York: Oxford
University Press, 2002.
9. Samuel Pufendorf’s ‘On the Natural State of Men’. The 1678 Latin Edition and
English Translation, M. Seidler (ed. and trans.), Lewiston, ME, Mellen.

Online links from other sources

Indian ethos https://www.youtube.com/watch?v=NzkejRDWvds
Values https://www.youtube.com/watch?v=SCjYaatMJuY
Ethics https://www.youtube.com/watch?v=u399XmkjeXo
Ethics, morals and values https://www.youtube.com/watch?v=5bW4P-pKmqc
Work ethos https://www.youtube.com/watch?v=BVT0J_3x368
Sources of ethics https://www.youtube.com/watch?v=Sl7TP18rvzg
Corporate ethics https://www.youtube.com/watch?v=xoE8XlcDUI8
Ethics management program https://www.youtube.com/watch?v=iiAirfn-lBI
Ethics committee https://www.youtube.com/watch?v=6avQZVwR-2Y
Code of ethics https://www.youtube.com/watch?v=HQcHR8-6IEA