ETHICS NOTES

Module I
1) Explain Kohlberg’s theory of moral development.
Lawrence Kohlberg was a psychologist who concluded on the basis of 20 years of research that there
is a sequence of 6 identifiable stages in the development of a person’s ability to deal with moral
issues. There are 3 levels and each contains 2 stages.

Level 1: Preconventional Stages- At these first two stages, the child can apply the labels good, bad,
right, and wrong. But good and bad, and right and wrong are seen in terms of the pleasant or painful
consequences of actions or what authority figures demand.

Stage One: Punishment and Obedience Orientation: At this stage, the demands of authority
figures or the pleasant or painful consequences of an act define right and wrong. The child’s
reason for doing the right thing is to avoid punishment or defer to the power of authorities.
There’s little awareness that others have needs and desires like one’s own.

Stage Two: Instrumental and Relative Orientation: At this stage, the right actions become
those through which the child satisfies his own needs. The child is now aware that others
have needs and desires as he does and uses this knowledge to get what he wants. The child
behaves in the right way toward others, so others later will do the same toward him.

Level 2: conventional stages- At these next two stages, the older child or younger adolescent sees
moral right and wrong in terms of living up to the conventional norms of his or her family, peer
group, or society. He sees right or wrong in terms of “what my friends think,” “what my family
taught me,” “what we Americans believe,” or even “what the law says.”

Stage Three: Interpersonal Concordance Orientation- Good behavior at this early

conventional stage is living up to the expectations of those for whom the person feels loyalty,
affection, and trust, such as family and friends. Right action is conforming to what’s expected
in one’s role as a good son, good daughter, good friend, and so on. At this stage, the young
person wants to be liked and thought well of.

Stage Four: Law and Order Orientation- Right and wrong at this more mature conventional
stage is based on loyalty to one’s nation or society. The laws and norms of society should be
followed so society will continue to function well. The person can see other people as parts of
a larger social system that defines individual roles and obligations, and he can distinguish
these obligations from what his personal relationships require.
Level 3: post-conventional stages- At these next two stages, the person no longer simply accepts the
values and norms of her group. Instead, the person tries to see right and wrong from an impartial
point of view that takes everyone’s interests into account. The person can question the laws and
values of her society and judge them in terms of moral principles that she believes can be justified by
any reasonable person.
Stage Five: Social Contract Orientation: At this first post-conventional stage, the person
becomes aware that people have conflicting moral views, but believes there are fair ways of
reaching a consensus about them. The person believes that all moral values and moral norms
are relative and that, apart from a democratic consensus, all moral views should be tolerated.
 Stage Six: Universal Moral Principles Orientation: At this second post-conventional stage,
the right action comes to be defined in terms of moral principles chosen because of their
reasonableness, universality, and consistency. These are general moral principles that deal,
for example, with justice, social welfare, human rights, respect for human dignity, or treating
people as ends in themselves. The person sees these principles as the criteria for evaluating
all socially accepted norms and values.
This theory is useful as it helps us understand how our moral capacities develop and reveal how we
may mature on our understanding and moral standards. According to the research, many get stuck at
the 1st level and try to avoid punishment and follow what the leader is saying, those in the 2 nd stage
never get past the norms and expectations of their social group or the nation and laws, and those who
reach the 3rd stage take a rational and critical look at the conventional moral standards that they have
been raised with and choose them according to their moral principles.

2) Describe a framework for Ethical decision-making.

Identify the Ethical Issues

1. Could this decision or situation be damaging to someone or to some group, or unevenly

beneficial to people? Does this decision involve a choice between a good and bad alternative,
or perhaps between two “goods” or between two “bads”?
2. Is this issue about more than solely what is legal or what is most efficient? If so, how?

Get the Facts

3. What are the relevant facts of the case? What facts are not known? Can I learn more about the
situation? Do I know enough to make a decision?
4. What individuals and groups have an important stake in the outcome? Are the concerns of
some of those individuals or groups more important? Why?
5. What are the options for acting? Have all the relevant persons and groups been consulted?
Have I identified creative options?

Evaluate Alternative Actions

6. Evaluate the options by asking the following questions:

• Which option best respects the rights of all who have a stake? (The Rights Lens)
• Which option treats people fairly, giving them each what they are due? (The Justice Lens)
• Which option will produce the best and do the least harm for as many stakeholders as
possible? (The Utilitarian Lens)
• Which option best serves the community as a whole, not just some members? (The
Common Good Lens)
• Which option leads me to act as the sort of person I want to be? (The Virtue Lens)
• Which option appropriately takes into account the relationships, concerns, and feelings of
all stakeholders? (The Care Ethics Lens)

Choose an Option for Action and Test It

7. After an evaluation using all of these lenses, which option best addresses the situation?
8. If I told someone I respect (or a public audience) which option I have chosen, what would
they say?
9. How can my decision be implemented with the greatest care and attention to the concerns of
all stakeholders?
 Implement Your Decision and Reflect on the Outcome

10. How did my decision turn out, and what have I learned from this specific situation? What (if
any) follow-up actions should I take?

CHAT GPT

1. Identify the problem or dilemma: Start by clearly identifying the ethical problem or dilemma
you are facing. Define the issue and consider all relevant factors that may impact the
decision.
2. Gather information: Gather as much information as possible about the problem or dilemma.
This can include data, facts, perspectives, and opinions from relevant stakeholders, such as
experts, colleagues, clients, and affected parties.
3. Identify values: Identify and prioritize the relevant values that are at stake. This can include
values such as justice, fairness, honesty, respect, and responsibility.
4. Consider alternatives: Identify and evaluate alternative courses of action that are consistent
with the values you have identified. Evaluate the pros and cons of each alternative,
considering both short-term and long-term consequences.
5. Make a decision: Make a decision based on the best available information and the values
you have identified. Be sure to consider the potential impact of your decision on all relevant
stakeholders.
6. Act on your decision: Implement your decision and take appropriate actions to address the
ethical problem or dilemma.
7. Evaluate your decision: Evaluate the outcome of your decision and reflect on what you have
learned from the experience. Consider how you can improve your ethical decision-making
process in the future.

3) What are the Five Myths about business ethics?

The Five myths of business ethics are:
a. It is Easy to Be Ethical.
I don’t agree that being ethical is always easy. What may be ethical in one context may not be
in another, especially as it pertains to a multinational business decision. However, some issues
can be easy to make from a deontological perspective regarding morality and integrity.
b. Unethical behavior in Business Is Simply the Result of “Bad Apples”.
I don’t agree with this statement; however, I do agree that when individuals do not have a
strong moral compass, they can be easily influenced by peers and societal/business norms that
will influence their behaviors and decision-making.
c. Ethics Can Be Managed through Formal Ethics Codes and Programs.
I agree that ethics can be managed through formal programs, however, the programs must be
believable as the employee must see that ethical behavior is rewarded and unethical behavior is
punished.
d. Ethical Leadership is Mostly about Leader Integrity.
I do agree with this statement. Ethical leadership does start with the leader’s integrity.
However, ethical leadership must be followed through, and pervasive throughout the
organizational culture. The ethical leader must lead others to behave in an ethical manner based
on trust and respect which are components of the leader’s integrity.
e. People are less ethical than they used to be.
1. Myth: Business ethics is just about following the law.
Reality: While laws and regulations provide a basic framework for ethical
behavior, ethical decision-making requires more than just compliance with the
law. It involves considering a range of ethical principles and values, such as
honesty, integrity, respect, fairness, and responsibility.
2. Myth: Business ethics is a matter of personal values, not organizational values.
Reality: Business ethics is not just a matter of personal values, but also
organizational values. An organization's culture, policies, and practices can either
support or undermine ethical behavior. Therefore, organizations need to establish
a strong ethical culture that promotes ethical decision-making and behavior.
3. Myth: Business ethics is bad for business.
Reality: Business ethics is not only good for society, but it is also good for
business. Ethical behavior can help to build trust and credibility with customers,
employees, and other stakeholders, which can lead to increased loyalty and
profitability over the long-term.
4. Myth: Business ethics is a luxury that only large corporations can afford.
Reality: Business ethics is relevant to organizations of all sizes and types, including
small and medium-sized enterprises (SMEs). SMEs can benefit from a strong
ethical culture by improving their reputation, attracting and retaining employees,
and enhancing their competitive advantage.
5. Myth: Business ethics is an individual responsibility, not a collective responsibility.
Reality: Business ethics is both an individual and a collective responsibility. Each
individual has a role to play in promoting ethical behavior, but it is also the
responsibility of the organization to establish a culture that supports ethical
decision-making and behavior. Therefore, organizations need to provide training,
guidance, and support to employees to promote ethical behavior.

4) Explain different theories of ethics. (Example: - Consequentialism, Deontology, Utilitarianism,

Relativism, etc.)
Ethics is the discipline that examines your moral standards or the moral standards of a society. It asks
how these standards apply to your life and whether these standards are reasonable or unreasonable-
that is, whether they are supported by good reasons or poor ones.

Business ethics is a specialized study of moral right and wrong that focuses on business institutions,
organizations, and activities.

Deontology is an ethical theory that uses rules to distinguish right from wrong. Deontology is often
associated with the philosopher Immanuel Kant. Kant believed that ethical actions follow universal
moral laws, such as “Don’t lie. Don’t steal. Don’t cheat.” Deontology is simple to apply. It just
requires that people follow the rules and do their duty. This approach tends to fit well with our natural
intuition about what is or isn’t ethical. Deontological ethics is focused on the moral obligation of
corporate managers to act in accordance with a set of rules and principles regardless of consequences.
 Teleological ethics is a theory of ethics according to which the rightness of an act is determined
by its end.

Consequentialism is an ethical theory that judges whether or not something is right by what its
consequences are. For instance, most people would agree that lying is wrong. But if telling a lie would
help save a person’s life, consequentialism says it’s the right thing to do.

• Utilitarianism is an ethical theory that determines right from wrong by focusing on outcomes.
It is a form of consequentialism. Utilitarianism holds that the most ethical choice is the one that
will produce the greatest good for the greatest number. It is the only moral framework that can
be used to justify military force or war. It is also the most common approach to moral reasoning
used in business because of the way in which it accounts for costs and benefits.

• Ethical egoism is the view that people ought to pursue their own self-interest, and no one has
any obligation to promote anyone else’s interests.

• Group consequentialism is for my group, society, nation, religion, etc.

Virtue ethics- This character-based approach to morality assumes that we acquire virtue through
practice. By practicing being honest, brave, just, generous, and so on, a person develops an honorable
and moral character. According to Aristotle, by honing virtuous habits, people will likely make the
right choice when faced with ethical challenges.

Relativism is the belief that there's no absolute truth, only the truths that a particular individual or
culture happens to believe. If you believe in relativism, then you think different people can have
different views about what's moral and immoral.
5) What are the different rules for ethical decision-making?
Utilitarian Rule: An ethical decision should produce the greatest good for the greatest number of
people.
Moral right rule: an ethical decision should maintain and protect the fundamental rights and
privileges of people.
Justice rule: an ethical decision should distribute benefits and harm among people in a fair, equitable,
and impartial manner.
Practical rule: an ethical decision should be one that a manager has no hesitation about
communicating to people outside of the company because the typical person in society would think
the decision is acceptable.
6) Define Ethics. Discuss the importance of ethics in business.

Ethics is the discipline that examines your moral standards or the moral standards of a society. It asks
how these standards apply to your life and whether these standards are reasonable or unreasonable-
that is, whether they are supported by good reasons or poor ones.
We can define morality as the standards that an individual or a group has about what is right and
wrong, or good and evil.

Business ethics not only includes the analysis of moral norms and moral values, but also tries to
apply the conclusions of this analysis to that assortment of institutions, organizations, and activities
that we call a business.
 It is important:
1. To create goodwill for the company which will build people’s trust
2. It can improve profitability in the long term.
3. It drives employees’ behavior- employees are more likely to apply ethical reasoning when
their company clearly demonstrates why business ethics is important.
4. Attract investment
5. Reduce risks and hence lower costs

7) What are the different levels of business ethics? Explain.

Business ethics is a specialized study of moral right and wrong that focuses on business institutions,
organizations, and activities. Business ethics is a study of moral standards and how these apply to the
social systems and organizations through which modern societies produce and distribute goods and
services, and to the activities of the people who work within these organizations.
The different levels are:
1. Personal ethics- are determined by each individual. Personal ethics may be determined by
religious practices or how someone was raised. While professional and organizational
guidelines may influence personal ethics, they are not one and the same. Personal ethics is the
most diverse level of business ethics because each individual person has a different set of
values and beliefs. Since personal ethics differ from person to person, professional and
organizational ethics help to establish parameters and guidelines for individuals to follow in
the workplace.
2. Professional Ethics- Training your employees can greatly increase their understanding of
ethical behavior in business. Professional ethics is the idea that individuals in their job field
have extensive knowledge and experience which prepares them to work within certain
industries. This training equips them to know business ethics standards for their line of work.
For example, a doctor knows better than to violate HIPAA by sharing a patient’s medical
information. And a teacher is taught to never be alone with a student. Neither of these
examples may be something considered on a personal ethics level; however, they are
expected on a professional level since their schooling and training have covered the
information.
3. Organizational Ethics- An organization’s ethics are established and then implemented
company-wide. Organizational values are external indicators used to ensure a company is
behaving ethically. However, the foundation of organizational values is grounded within the
internal culture of the company. Organizational values can positively or negatively impact
productivity, morale, the community, and the list goes on and on.
 Module II
1. What is the stakeholder model and how does it differ from the shareholder model in terms of
defining the purpose and responsibilities of a business towards its various stakeholders?

The theory argues that a firm should create value for all stakeholders, not just shareholders.
A shareholder is someone who owns stock in your company, while a stakeholder is someone who is
impacted by (or has a “stake” in) a project you’re working on.
Different Priorities: Shareholders and stakeholders have very different priorities. Shareholders have a
financial interest in your company because they want to get the best return on their investment,
usually in the form of dividends or stock appreciation. That means their first priority is usually to
bolster overall revenue and stock prices. Shareholders of private companies and sole proprietorships
can also be responsible for the company’s debts, which gives them an extra financial incentive. On
the other hand, stakeholders are focused on much more than just finances. Internal stakeholders want
their projects to succeed so the company can do well overall—plus they want to be treated well and
advance in their roles. External stakeholders also want to benefit from your project. That can mean
different things, like receiving a great product, experiencing solid customer service, or participating
in a respectful and mutually beneficial partnership.
Different Timeline: Shareholders and stakeholders also have different timelines for achieving their
goals. Shareholders are part owners of the company only as long as they own stock, so they’re
usually focused more on short-term goals that influence a company’s share prices. That means your
organization’s long-term success isn’t always their top priority, because they can easily sell their
stocks and buy shares from another company if they want to. Alternatively, stakeholders are more
interested in your company’s longer-term goals. They’re usually less focused on short-term
economic performance and fluctuations in stock prices. Instead, stakeholders want your organization
to do well overall. For example:
Employees want to keep working at a company that treats them well and gives them opportunities for
growth.
Customers want to keep receiving a product they like.
Suppliers want to maintain their relationship with your company and keep profiting from your
business long-term.

2. Short Note of Effective stakeholder management

Stakeholder management is the process by which you organize, monitor and improve your
relationships with your stakeholders. It involves systematically identifying stakeholders; analyzing
their needs and expectations; and planning and implementing various tasks to engage with them. A
good stakeholder management process will be the means through which you are able to coordinate
your interactions and asses the status and quality of your relationship with various stakeholders.
Stakeholder management is important because it allows organizations to identify and track
individuals or groups interested in the organization’s success or failure. Additionally, stakeholder
management can help organizations understand how different stakeholders perceive the organization
and its activities. This knowledge can be used to improve communication and relationships with
stakeholders.
 Five key questions are critical to capturing the essential information needed for effective stakeholder
management:
1. Who are our organization’s stakeholders?
2. What are our stakeholders’ stakes?
3. What opportunities and challenges do our stakeholders present to the firm?
4. What responsibilities (economic, legal, ethical, and philanthropic) does the firm have to its
stakeholders?
5. What strategies or actions should the firm take to best address stakeholder challenges and
opportunities?
Effective stakeholder management requires the development of a robust corporate culture that
broadly conceives of responsibilities to others.
Steps: Stakeholder thinking (Process of always reasoning in stakeholders terms throught the
management process especially when organisation’s action has important implications for others),
developing a stakeholder culture (Stakeholder culture embraces the beliefs, values, and practices that
organizations have developed for addressing stakeholder issues and relationships), stakeholder
management capacity, Stakeholder engagement, the stakeholder corporation, principles of
stakeholder management
3. What are the effective strategies or steps to resolve a stakeholder dispute and ensure a mutually
satisfactory outcome for all parties involved?
Stakeholder disputes can arise due to conflicting interests and priorities among different parties
involved in a project or business. Resolving these disputes requires effective communication,
negotiation, and collaboration. Here are some effective strategies or steps to resolve a stakeholder
dispute and ensure a mutually satisfactory outcome for all parties involved:
1. Identify the stakeholder concerns: The first step in resolving a stakeholder dispute is to
identify the concerns and interests of each stakeholder involved. This requires listening
carefully to each party and understanding their perspective.
2. Develop a common understanding: Once you have identified the stakeholder concerns, work
to develop a common understanding of the issues at hand. This involves clarifying the
objectives, goals, and expectations of each stakeholder and finding common ground.
3. Collaborate to find solutions: Encourage stakeholders to work collaboratively to find
solutions that address the concerns of all parties involved. This may require brainstorming
sessions or facilitated discussions to identify potential solutions.
4. Evaluate the options: Once potential solutions have been identified, evaluate them carefully
to determine their feasibility and potential impact on all stakeholders involved. Consider the
risks and benefits of each option before making a decision.
5. Communicate the decision: Once a decision has been made, communicate it clearly and
effectively to all stakeholders involved. Ensure that each party understands the rationale
behind the decision and the impact it will have on their interests.
6. Implement the decision: Implement the decision and monitor its effectiveness over time. This
may involve establishing clear timelines and milestones to ensure that the decision is
implemented successfully.
7. Follow up: Follow up with stakeholders after the decision has been implemented to ensure
that it is achieving the desired outcomes and that all parties involved are satisfied with the
outcome. This provides an opportunity to address any concerns that may arise and make
adjustments if necessary.
In conclusion, resolving a stakeholder dispute requires effective communication, collaboration, and
negotiation. By following these steps, you can ensure a mutually satisfactory outcome for all parties
involved and maintain positive stakeholder relationships.
4. SHORT NOTE ON: Crisis Management Recommendations
Crisis is a “turning point for better or worse,” an “emotionally significant event,” or a “decisive
moment”. Crisis Management is an organization’s process- and strategy-based approach for
identifying and responding to a threat, an unanticipated event, or any negative disruption with the
potential to harm people, property, or business processes. Being prepared for any event to become a
crisis requires a crisis management plan. Proper planning for critical events includes establishing a
crisis management team and developing a crisis management (CM) plan to keep people from harm,
maintain business continuity, enable recovery from disaster, and protect assets before, during, and
after a critical event occurs. Further, it is imperative that every organization validates and tests its
CM plan and deploys the right emergency communications technology to support crisis response
across the organization.
Recommendation: Being prepared for crisis and learning from the crisis.
Managing business crisis: The five steps are:
1) Identifying areas of vulnerability: In this first step, some areas of vulnerability are obvious,
such as potential chemical spills, whereas others are more subtle. The key seems to be in
developing a greater consciousness of how things can go wrong and get out of hand. A key to
identifying areas of vulnerability is “recognizing the threat.” Recognizing low-probability but
high-consequence events is a challenge, but planning for them can help a company to survive
major crises. Some ways that companies can identify areas of vulnerability include the
following:
• Scenario planning. Create scenarios for crises that could occur over the next two
years.
• Risk analysis. Estimate the probabilities and costs/benefits of estimated future events.
• Incentives. Reward managers for information sharing.
• Networks. Build formal coalitions to mobilize internal and external information
suppliers.
2) Developing a plan for dealing with threats: A plan for dealing with the most serious crisis
threats is a logical next step. One of the most crucial issues is communications planning.
“You can pay now or pay a lot more later.”
3) Forming crisis team: Another step that can be taken as part of an overall planning effort is
the formation of crisis teams, especially in large organizations. Such teams have played key
roles in many well-managed disasters. Another task in assembling crisis teams is identifying
managers who can cope effectively with stress. Not every executive can handle the fast-
moving, high-pressured, ambiguous decision environment that is created by a crisis, and early
identification of executives who can is important.
4) Simulating crisis drills: Some companies have gone so far as to run crisis drills in which
highly stressful situations are simulated so that managers can “practice” what they might do
in a real crisis. As a basis for conducting crisis drills and experiential exercises, a number of
companies have adopted a crisis management software package. This software allows
companies to centralize and maintain up-to-date crisis management information and allows
company leaders to assign responsibilities to their crisis team, target key audiences, identify
and monitor potential issues, and create crisis-response processes.
5) Learning form experience: At this point, managers need to ask themselves exactly what
they have learned from past crises and how that knowledge can be used to advantage in the
future. Part of this stage entails an assessment of the effectiveness of the firm’s crisis-
 handling strategies and identification of areas where improvements in capabilities need to be
made. Without a crisis management system of some kind in place, the organization will find
itself reacting to crises after they have occurred. If learning and preparation for the future are
continuous, however, the firm may engage in more proactive behavior.
4 stages in management crisis:
1) Prodromal Crisis Stage This is the warning stage. (Prodromal is a medical term that refers to a
previous notice or warning.) This stage could also be thought of as a symptom stage. Although it
could be called a “pre-crisis” stage, this presupposes that one knows that a crisis is coming. Some
experts have suggested that a possible outbreak of Zika virus would be in this stage. It is believed
that crises “send out a repeated trail of early warning signals” that managers can learn to recognize.
Perhaps management should adopt this perspective: Watch each situation with the thought that it
could be a crisis in the making. Early symptoms may be obvious, such as in the case where a social
activist group tells the management it will boycott the company if a certain problem is not addressed.
On the other hand, symptoms may be more subtle, as in the case where defect rates for a particular
product a company makes start edging up over time.
2) Acute Crisis Stage This is the stage at which the crisis has actually occurred, and there is no
turning back. Damage has been done, and it is now up to management to handle or contain it. If the
prodromal stage is the pre-crisis stage, the acute stage is the actual crisis stage. The crucial decision
point at which things may get worse or better has been reached.
3) Chronic Crisis Stage This is the lingering period. It may be the period of investigations, audits, or
in-depth news stories. For example, following investigations by the CDC into Chipotle’s E. coli
outbreaks, a federal criminal investigation began to determine the extent to which management knew
about food safety issues that extended back three years.84 Management may see it as a period of
recovery, self-analysis, or selfdoubt. A survey of major companies found that crises tended to linger
as much as two and- a-half times longer in firms without crisis management plans than in firms with
such plans.
4) Crisis Resolution Stage This is the final stage—the goal of all crisis management efforts. When an
early warning sign of a crisis is noted, the manager should seize control swiftly and determine the
most direct and expedient route to resolution. If the warning signs are missed in the first stage, the
goal is to speed up all phases and reach the final stage as soon as possible

5. How can Mendelow’s Matrix model, be used as a tool for effective stakeholder management and
engagement in order to prioritize and address the needs and concerns of influential stakeholders?
Similar to 7

6. What is a crisis in an organisation?

Types of Crises. A variety of situations leave companies vulnerable to crises. These include
industrial accidents, environmental problems, union problems or strikes, product recalls, investor
relations, hostile takeovers, proxy fights, rumors or media leaks, government regulatory problems,
acts of terrorism, and embezzlement. Other common crises include information system hacks,
product tampering, executive kidnapping, work-related homicides, malicious rumors, and natural
disasters that destroy corporate offices or information bases. Since September 11, 2001, we have had
to add terrorism to this list. Crises may be grouped into seven families:
• Economic crises (recessions, hostile takeovers, stock market crashes)
• Physical crises (industrial accidents, product failures, supply breakdown)
• Personnel crises (strikes, exodus of key employees, workplace violence)
• Criminal crises (product tampering, kidnappings, acts of terrorism)
 • Information crises (theft of proprietary information, cyberattacks)
• Reputational crises (rumourmongering or slander, logo tampering)
• Natural disasters (earthquakes, tornadoes, floods, fires)

7. Short note on Mendelow’s Matrix.

 Module III
1) What is Ashridge’s Mission Model to analyze Values and Purpose Statements?

The Ashridge Mission Model, proposed by Andrew Campbell, is a method that can be used to create
or analyze a Mission, Sense of Mission, and Mission Statement.

It contains the following four elements which should be linked tightly together, resonating and
reinforcing each other to create a strong Mission:

• Purpose. Three categories:

o shareholders
o stakeholders
o higher ideals
• Strategy. The commercial logic for the company. Strategy links purpose to behavior in a
commercial, rational, left-brain way.
• Values. The beliefs and moral principles that lie behind a company's culture. A Sense of
Mission occurs when employees find their personal values aligned with the organizational
values. Values give meaning to the norms and behavioral standards in the company.
• Policies and Behavioral Standards. Guidelines to help people to decide what to do on a day-
to-day basis.

The purpose of the company is the reason it exists. Beyond generating value for the shareholders, it
heavily links to the concept of your vision statement.

Mission Purpose Questions:

• Does the mission reflect the strategic plan or objectives?

 • Is the current position or desired position referred to in the mission?

Mission Values Questions:

• Is the statement something that the team will be proud of?

• Does the mission support or refer to the values?

2) What is the stakeholder model? What are the three values of the stakeholder model?
The stakeholder model, also called the stakeholder theory, is a way of understanding organizations as
collections of stakeholders, each with their own needs and priorities. A stakeholder is any person or
group that has an interest in the organization. They include employees, shareholders, directors,
customers and members of the community where the organization operates.
The 3 values are:
a. Descriptive value- the stakeholder model has value because it is descriptive; that is, it
provides language and concepts to describe effectively the corporation or organization in
stakeholder inclusive terms. It lists down the importance of each stakeholder group to a
company.
b. Instrumental value- it uses data to determine the appropriate stakeholder management to
achieve the company’s financial goals. The stakeholder model has value because it is
instrumental in that it is useful in portraying the relationship between the practice of
stakeholder management and the resulting achievement of corporate performance goals.
c. Normative value- this approach follows the principle that the interests of all stakeholder
groups have value outside of benefitting the company and shareholders interests. the
stakeholder model has value because it is normative, wherein stakeholders are seen as
possessing value irrespective of their instrumental use to management.

3) What are the Codes of Conduct?

The Code is a standalone document, ideally only a few pages in length. It introduces the concept of
ethics and compliance and provides an overview of what you mean when you talk about ethical
business conduct. The content of corporate codes typically addresses the following topics:
employment practices; employee, client, and vendor information; public information
communications; conflicts of interest; relationships with vendors; environmental issues; ethical
management practices; and political involvement. Increasingly, corporate codes of conduct are
addressing global issues and relationships with other firms, communities, and governments.

4) Write on Business self-regulation in India with examples.

In India, business self-regulation is a voluntary mechanism adopted by businesses to monitor and
regulate their own activities, with the objective of maintaining ethical and sustainable practices. The
concept of self-regulation is gaining importance in India, as the government and regulatory bodies
face challenges in enforcing regulations and monitoring compliance.
Several industry bodies and associations in India have developed their own self-regulatory codes of
conduct and guidelines, which businesses can voluntarily adopt. For example, the Advertising
Standards Council of India (ASCI) has developed a code of conduct for advertising and marketing
communications, which sets out ethical standards and guidelines for businesses to follow.
 Similarly, the Confederation of Indian Industry (CII) has developed a voluntary code of conduct on
corporate social responsibility (CSR), which encourages businesses to adopt socially responsible
practices and contribute to sustainable development.
Apart from industry bodies, some sectors in India also have their own self-regulatory bodies. For
instance, the Mutual Fund Industry has the Association of Mutual Funds in India (AMFI), which has
developed a code of conduct for mutual fund companies to follow.
• Advertising Standards Council of India (ASCI): ASCI is a self-regulatory body for the
advertising industry in India. It has developed a code of conduct for advertising and
marketing communications, which sets out ethical standards and guidelines for businesses to
follow. The code covers areas such as misleading claims, decency and good taste, safety, and
health.
• Confederation of Indian Industry (CII): CII has developed a voluntary code of conduct on
corporate social responsibility (CSR), which encourages businesses to adopt socially
responsible practices and contribute to sustainable development. The code covers areas such
as education, healthcare, environment, and social welfare.
• Society of Indian Automobile Manufacturers (SIAM): SIAM has developed a voluntary code
of conduct on vehicle recall, which sets out guidelines for automobile manufacturers to
follow in the event of a recall. The code covers areas such as notification to customers,
replacement of defective parts, and reporting to regulatory authorities.

5) What is Professional Ethics? explain with examples.

Professional ethics are principles that govern the behaviour of a person or group in a business
environment. Like values, professional ethics provide rules on how a person should act towards other
people and institutions in such an environment. The Code is an example of a codified set of
professional ethics for those who choose to enter the immigration advice profession.

6) What are the different types of Professional Ethics?

There are many different types of professional ethics, which vary depending on the specific
profession and industry. However, some common types of professional ethics include:
o Medical Ethics: Medical ethics are a set of principles and values that guide healthcare
professionals in their decision-making and interactions with patients. These principles include
 respect for patient autonomy, non-maleficence (do no harm), beneficence (act in the patient's
best interest), and justice (fair distribution of healthcare resources).
o Legal Ethics: Legal ethics are a set of rules and principles that govern the behavior of lawyers
and judges. These rules include maintaining client confidentiality, avoiding conflicts of
interest, providing competent representation, and upholding the integrity of the legal
profession.

o Business Ethics: Business ethics are a set of moral principles and values that guide the
behavior of individuals and organizations in the business world. These principles include
honesty, fairness, respect for others, and corporate social responsibility.
o Engineering Ethics: Engineering ethics are a set of principles and values that guide the
behavior of engineers in their work. These principles include safety, sustainability, honesty,
and responsibility to the public.
o Journalism Ethics: Journalism ethics are a set of principles and values that guide the behavior
of journalists in their reporting and interactions with sources and the public. These principles
include accuracy, objectivity, fairness, and respect for privacy.
o Teaching Ethics: Teaching ethics are a set of principles and values that guide the behavior of
educators in their interactions with students, colleagues, and the broader community. These
principles include integrity, respect for diversity, and commitment to fostering a positive
learning environment.

7) How to teach Professional Ethics to your Workforce?

Teaching professional ethics in the workplace is an important aspect of creating a culture of ethical
behavior and responsible conduct. Here are some ways to teach professional ethics in the workplace:
1. Define the principles: Start by defining the ethical principles that are relevant to your
organization. For example, honesty, integrity, respect, and responsibility are some of the core
principles that underpin ethical behavior in the workplace. Ensure that everyone in the
organization understands the meaning and importance of these principles.
2. Lead by example: Leaders in the organization must model ethical behavior and conduct. This
means that they need to practice what they preach and demonstrate ethical behavior in their
actions and decisions. Leaders can also use real-life examples to illustrate ethical dilemmas
and how they can be resolved in a responsible and ethical manner.
3. Use case studies and scenarios: Use case studies and scenarios to help employees understand
ethical issues and how to address them. You can use hypothetical scenarios or real-life
examples from your organization or industry to illustrate ethical dilemmas and how they can
be resolved in a responsible and ethical manner.
4. Training and development: Conduct training and development programs on professional
ethics, which are tailored to the needs of your organization. These programs can cover topics
such as ethical decision-making, conflict resolution, and responsible conduct.
5. Communicate the importance: Communication is key to ensuring that everyone in the
organization understands the importance of professional ethics. Use various channels such as
emails, newsletters, posters, and presentations to communicate the message.
6. Establish accountability: Establish accountability for ethical behavior by setting up
mechanisms for reporting and addressing ethical violations. Ensure that employees are aware
of these mechanisms and that they understand the consequences of unethical behavior.
In conclusion, teaching professional ethics in the workplace is an ongoing process that requires
commitment and effort from leaders and employees alike. By following these steps, you can create a
culture of ethical behavior and responsible conduct in your organization.