Unit 1

Values

Introduction

Values are stable, long lasting beliefs about what is important to an Values are a very powerful but
individual. Values are very important to the study of the organisational behaviour, silent force affecting
human because values have an important influence on the attitudes, perceptions, and needs and
motives of the people at work. Values are the basis of human personality and are a very powerful but
silent force affecting human behaviour.

Values are so much embedded in the personalities of the people that they can be inferred from
people’s behaviour and their attitudes. Effective managers have to understand the values underlying
the behaviour of the employees, because only then they will realize why the people behave in strange
and different ways sometimes.

Meaning and Definition of Values:

Generally, value has been taken to mean moral ideas, general conceptions or orientations towards the
world or sometimes simply interests, attitudes, preferences, needs, sentiments and dispositions. But
sociologists use this term in a more precise sense to mean “the generalised end which has the
connotations of rightness, goodness or inherent desirability”.

These ends are regarded legitimate and binding by society. They define what is important worthwhile
and worth striving for. Sometimes, values have been interpreted to mean “such standards by means of
which the ends of action are selected”. Thus, values are collective conceptions of what is considered
good, desirable, and proper or bad, undesirable, and improper in a culture.

According to M. Haralambos (2000), “a value is a belief that something is good and desirable”. For R.K.
Mukerjee (1949) (a pioneer Indian sociologist who initiated the study of social values), “values are
socially approved desires and goals that are internalised through the process of conditioning, learning
or socialisation and that become subjective preferences, standards and aspirations”. A value is a shared
idea about how something is ranked in terms of desirability, worth or goodness.
Familiar examples of values are wealth, loyalty, independence, equality, justice, fraternity and friend-
liness. These are generalised ends consciously pursued by or held up to individuals as being worthwhile
in themselves. It is not easy to clarify the fundamental values of a given society because of their sheer
breadth.

A value system is viewed as a relatively permanent perceptual frame work which influences the nature
of an individual’s behaviour. The values are the attributes possessed by an individual and thought
desirable. Values are similar to attitudes but are more permanent and well built in nature.

A value may be defined as a “concept of the desirable, an internalized criterion or standard of

evaluation a person possesses. Such concepts and standards are relatively few and determine or guide
an individual’s evaluations of the many objects encountered in everyday life.”

According to Milton Rokeach, a noted psychologist “Values are global beliefs that guide actions and
judgments across a variety of situations.” Values represent basic convictions that a specific mode of
conduct (or end state of existence) is personality or socially preferable to an opposite mode of conduct
(or end state of existence)”.

Characteristics:

Values may be specific, such as honouring one’s parents or owning a home or they may be more
general, such as health, love and democracy. “Truth prevails”, “love thy neighbour as yourself,
“learning is good as ends itself are a few examples of general values. Individual achievement, individual
happiness and materialism are major values of modern industrial society.

Value systems can be different from culture to culture. One may value aggressiveness and deplores
passivity, another the reverse, and a third gives little attention to this dimension altogether,
emphasising instead the virtue of sobriety over emotionality, which may be quite unimportant in either
of the other cultures. This point has very aptly been explored and explained by Florence Kluchkhon
(1949) in her studies of five small communities (tribes) of the American south-west. One society may
value individual achievement (as in USA), another may emphasise family unity and kin support (as in
India). The values of hard work and individual achievement are often associated with industrial
capitalist societies.

The values of a culture may change, but most remain stable during one person’s lifetime. Socially
shared, intensely felt values are a fundamental part of our lives. Values are often emotionally charged
because they stand for things we believe to be worth defending. Often, this characteristic of values
brings conflict between different communities or societies or sometimes between different persons.

Most of our basic values are learnt early in life from family, friends, neighbourhood, school, the mass
print and visual media and other sources within society. These values become part of our personalities.
They are generally shared and reinforced by those with whom we interact.

The characteristics of values are:

(i) Values provide standards of competence and morality.

(ii) Values are fewer in number than attitudes.

(iii) Values transcend specific objects, situations or persons.

(iv) Values are relatively permanent and resistant to change.

(v) Values are most central to the core of a person.

(vi) Values have two attributes-content and intensity. The content attribute stresses that a particular
code of conduct is important. The intensity attribute specifies how important that particulars code of
conduct is.

(vii) When we rank an individual’s values in terms of their intensity. We obtain the value system of that
person.

(viii) In the value system, all of us have a hierarchy of values; which is identified by the relative
importance we assign to different values such as freedom, self respect, honesty, self respect, and so
on.

Importance and functions of values:

Values are general principles to regulate our day-to-day behaviour. They not only give direction to our
behaviour but are also ideals and objectives in themselves. Values deal not so much with what is, but
with what ought to be; in other words, they express moral imperatives. They are the expression of the
ultimate ends, goals or purposes of social action. Our values are the basis of our judgments about what
is desirable, beautiful, proper, correct, important, worthwhile and good as well as what is undesirable,
ugly, incorrect, improper and bad. Pioneer sociologist Durkheim emphasised the importance of values
(though he used the term ‘morals’) in controlling disruptive individual passions.

He also stressed that values enable individuals to feel that they are part of something bigger than
themselves. Modem sociologist E. Shils (1972) also makes the same point and calls ‘the central value
system’ (the main values of society) are seen as essential in creating conformity and order. Indian
sociologist R.K. Mukerjee (1949) writes: “By their nature, all human relations and behaviour are
imbedded in values.”

The main functions of values are as follows:

1. Values play an important role in the integration and fulfillment of man’s basic impulses and desires
in a stable and consistent manner appropriate for his living.

2. They are generic experiences in social action made up of both individual and social responses and
attitudes.

3. They build up societies, integrate social relations.

4. They mould the ideal dimensions of personality and range and depth of culture.

5. They influence people’s behaviour and serve as criteria for evaluating the actions of others.

6. They have a great role to play in the conduct of social life.

7. They help in creating norms to guide day-to-day behaviour.

Sources of Values:

1. Family Factor:

The most important factor which influences the value system of an individual is his immediate family.
Some values are inculcated in A person learn and develops values from the following sources the
individuals from the childhood and remain in his mind throughout his life. The child rearing practices
the parents adopt shape the personality of the human being. Family is the most influential factor in the
individual’s learning of social behaviour, values and norms.
2. Social Factors:

Out of all the social factors school plays the most important role in developing the value system of an
individual. The child learns the basic discipline from the school. Moreover, the interactions with the
teachers, classmates and other staff members in the schools and colleges make the child inculcate
values important to the teaching-learning process. Other social factors which may affect values are
religious economic and political institutional in the society.

3. Personal Factors:

Personal traits such as intelligence, ability, appearance and educational level of the person determine
his development of values. For example, if a person is highly intelligent, he will understand the values
faster. If he is highly educated, high values will be inculcated in him by his school and college.

4. Cultural Factors:

Cultural factors include everything that is learned and passed on from generation to generation.
Culture includes certain beliefs and other patterns of behaviour. An individual is a participant in social
culture, group culture and organisational culture. Thus, he is known as a composite of many cultural
elements. Culture is based on certain implicit and explicit values. For example, whether a person is co-
operative, friendly or hostile depends upon to which culture he belongs to Individual relationships are
different in different cultures and within certain groups of society also. Whether, the individual values
money making or doing service to the mankind again depends upon his cultural background.

5. Religious Factors:

Individuals, generally, receive strength and comfort from their religion. Religion comprises of a formal
set of values which are passed on from generation to generation. Advancement in technology has
under viewed faith in traditional religious beliefs and values.

6. Life Experiences:

A man learns the most from his own personal life experience. Sometimes man can learn from the
experience of others also. In the long run, most of the values which influence our behaviour are
validated by the satisfaction we have experienced in pursuing them. Individuals work out their values
on the basis of what seems most logical to them.
Values carry importance in direct proportion to how much faith the individual has in them. He should
have those values which can stand the test of reality. He should not have rigid values but flexible
system which can change with the changes in the individual himself, his life situation and the socio-
economic environment.

7. Role Demands:

The role demand refers to the behaviour associated with a particular position in the organisation. All
organisations have some formal and some informal code of behaviour. Role demand can create
problems when there is a role conflict. Thus, the managers will have to quickly learn the value system
prevalent in the organisation.

If they want to move up the ladder of success. For example, if the informal code of behaviour says that
the manager must mix up socially with the subordinates, he should learn to do so even though, his
personal value system conflicts with his role as a manager.

8. Halo Effect:

The halo effect refers to the tendency of judging people on the’ basis of a single trait, which may be
good or bad, favourable or un-favourable. Sometimes, we judge a person by one first impression about
him or her. For example, if a person is kind, he will also be perceived as good, able, helpful, cheerful,
nice, and intelligent and so on.

On the other hand, if a person is abrasive, he shall also be perceived as bad, awful, unkind, aggressive,
harmful and wicked. Thus, what one sees in the universe depends partly on one’s inner needs. Thus,
with the help of halo effect, we see certain values in others which are actually not there, but we
perceive them to be there.

Types of Values

Milton Rokeach Classification:

An extensive research conducted by the noted psychologist Milton Rokeach, identifies two basic types
of values.

1. Terminal Values:
A terminal value is an ultimate goal in a desired status or outcome. These lead to the ends to be
achieved.

The examples of terminal values are:

Instrumental values relate to means for achieving desired ends. It is a tool for acquiring a terminal
value.

The instrumental values given in this study are:

The combination of terminal and instrumental values an individual has, create an enduring cluster of
values which is his value system. Thus, according to this survey, our values and value system are
primarily the determinants of who and what we are as individuals.

Allport, Vernon and Lindzey Classification:

G.W. Allport, P.E. Vernon and G. Lindzey have categorized values into six major types as follows:

1. Theoretical:

Interest in the discovery of truth through reasoning and systematic thinking. The ideal theoretical man
values the discovery of truth.
2. Economic:

Interest in usefulness and practicality, including the accumulation of wealth. The ideal economic man
values what is useful and concerned with practical affairs.

3. Aesthetic:

Interest in beauty, form and artistic harmony. The ideal aesthetic man values artistic and aesthetic
experiences in life, though he himself may not be creative.

4. Social:

Interest in people and human relationships. The ideal social man places great values on affiliation and
love. He tends to be kind and sympathetic to other individuals.

5. Political:

Interest in gaining power and influencing other people. The ideal political man places great value on
power.

6. Religious:

Interest in unity and understanding the cosmos as a whole. The highest value for the ideal religious
man may be called unit. Different people give different importance to the above mentioned six values.
Every individuals gives ranking to the values from one to six. This is very important for understanding
the behaviour of the people.

Types:

Values can be classified into two broad categories:

(1) Individual values:

These are the values which are related with the development of human personality or individual norms
of recognition and protection of the human personality such as honesty, loyalty, veracity and honour.

(2) Collective values:

Values connected with the solidarity of the community or collective norms of equality, justice,
solidarity and sociableness are known as collective values.

Values can also be’ categorised from the point of view their hierarchical arrangement:

(1) Intrinsic values:

These are the values which are related with goals of life. They are sometimes known as ultimate and
transcendent values. They determine the schemata of human rights and duties and of human virtues.
In the hierarchy of values, they occupy the highest place and superior to all other values of life.

(2) Instrumental values:

These values come after the intrinsic values in the scheme of gradation of values. These values are
means to achieve goals (intrinsic values) of life. They are also known as incidental or proximate values.

Definition of Moral

The word has been derived from Latin ‘Moralis’ which means character. This word is used many times
in place of ethics by mistake. These two words are different.

Behaviour is Set of Actions:

Behaviour is external that is the response one makes with in interaction with others. The behaviour
reflects the character of the individuals. Purity in behaviour is reflections of good character of the
individual. The character is within and hence core being of an individual whereas behaviour is external.

Behaviour is short term whereas character is long term. Personal have different shades of characters
weak to strong levels. Similarly the behaviour exhibited by individuals differs from weak to strong. Fig.
8.1 shows a Behaviour character matrix how people are placed.

Mahatma Gandhi, the Father of India nation had been a person with a high standard of character and
high behavioural instinct/responses.

Gandhi, in national context or JRD Tata in the organisational context are people with certain set of
qualities as follows:

(1) Honesty in all actions

(2) Transparency and settings standards

(3) Sincerity

(4) Generosity

(5) Truthfulness in all situation

(6) Integrity

(7) Cooperation

Any behaviour cannot be rationally notified. No behaviour is inherently right or wrong. Each person
may obtain his own choice based on his choice of ethical principles. Nazi rules were justified by Hitler.

i. Morals are principles of right and wrong. It comes by teaching and experience. Moral habits are
standards of behaviour.

Example: “Do not tell lie”

ii. Beliefs are the feelings of trust confidence of what is real and what is true.

Example: Buddha and Gandhiji believed in ‘Ahimsa’ or no harm or killing

iii. Values which are ends and goals of individuals. Values are essentially subjective

Example: Happiness or health

Meaning of Ethics:

As per Oxford Dictionary the meaning of ethic is a “system of moral principles, rules and
conduct.” Ethics is a “science of morals.” The words ethics has emerged from Latin ‘Ethicus’ or in Greek
‘Ethicos’.

The origin of these two words is from ‘ethos’ meaning character. Character unlike behaviour is an
intrinsic or basic factor which derives from inner most. Ethics in simple words is a treatise or science of
morals, moral principles and social conduct rules.
‘Right’, ‘Fair’ and ‘Proper’ are three terms normally used to express the social behaviour of the people.
When we tell these words, there are right and wrong behaviour towards others; fair and unfair actions
taken against someone or for someone; or some fair or unfair decisions.

The beliefs what is right, what is fair and what is proper are our beliefs and our moral standards. The
beliefs differ from individual to individual, place to place and time to time. What is right in one place or
situation may be wrong in other situation. The moral standards also differ based on moral value an
individual attaches.

Any action can be termed good or right or bad or wrong are relative and moral judgments. The
problem has one more side that who is making the judgment. From different sides the problem is seen
in different light and accordingly the judgment. The distinctions are made as ‘us’ and ‘others’ or
‘benefits’ and ‘obligations’.

Vedanta or Indian ethos suggests that ‘Atman’ is the intrinsic man. The ethical problem is as old as
mankind. Righteousness (Dharma) and the social concerns have changed from time to time or evolved.

Ethical values change from situation to situation and as pr place, time.

Definitions of Ethics:

“Ethics is the science of judging specifically human ends and the relationship of means to those ends. In
some way it is also the art of controlling means so that they will serve human ends.” — Thomas Garret

“‘Ethics’ is the discipline that examines one’s moral standard or moral standards of society. It asks how
those standards apply to our life and whether these standards are reasonable or unreasonable — that
is, whether these are supported by good reason or poor one.” — Manuel G. Velasquez

“Ethics refer to a set of moral principles which should play a very significant role in guiding the conduct
of managers and employees in the operation of any enterprise.” — Dale S. Beach

“Ethics is that discipline which deals with what is good and bad and also deal with moral duty and
obligation. Ethics are set of moral principles or values.” — Carol Buchholtz
“Ethics is a conception of right and wrong conduct. Ethics tell us when our behaviour is moral and
when it is moral. Ethics deal with fundamental human relationship how we think and behave towards
others and how we want them to think and behave towards us.” — Post, Frederick, and Lawlrence

“Ethics are formalised principles derived from social value. These are moral principle which originate
from social value and represent rules for moral behaviour and conduct of individuals or groups thereof
carrying on business.” — Webster’s Directory

(i) As per Philosopher Epicurus “Deals with things to be sought and things to be avoided with ways of
life and with telos.” (Telos is the chief aim or end in life).

(ii) A science of morals.

(iii) A treatise or science of morals, moral principles and social conduct rules.

(iv) Relate to morals, treating of moral questions, morally correct: honourable.

(v) Ethics describe what is ‘right’ what is ‘fair’ and what is ‘proper’.

(vi) Ethics differentiates what is right and what is wrong in human conduct – standards of behaviour.

(vii) Standards generally accepted by the society.

(viii) Rules that govern behaviors. The rules tell use what is right and what is wrong.

(ix) It is a field of social science of systematic knowledge of human moral behaviour and conduct.

(x) Ethics makes moral judgment of human conduct.

(xi) Ethics is diagnostic tool that establishes moral standards and norms of behaviour. Prescribes and
makes judgments on moral behaviour. It expresses opinions and attitudes about human conduct.

(xii) A branch of philosophy that deals with values as they relate to human conduct.

(xiii) The study of what is good and right to the people. The basic questions ethics asks are how a man
should act, especially when the actions have direct or indirect effect on others.

These definitions reveal the following characteristics of ethics:

(i) Ethics is a set of moral standards and values acceptable in a society. It is relevant in the context of a
society only.

(ii) Ethics guides human conduct or behaviour. If any member of the society behaves contrary to the
norms and customs, society disapproves it. Moral principles serve as a guide for personal and
professional conduct. Ethics checks people from taking decisions and actions which are harmful to
society.

There are three main theories of ethics. First, the utilitarian theory suggests that actions become right
or wrong on the basis of their consequence. Second, the theory of rights holds that all people have
certain basic rights. Third, the theory of justice demands that actions must be fair and equitable.

(iii) Ethical principles are universal in nature. These prescribe obligations and virtues for everybody in a
society. Ethics is important not only in business and politics but in every human endeavour.

(iv) Ethical standards differ from society to society. What is considered ethical behaviour in one society
might be considered unethical in another. For example, abortion and artificial birth control is a taboo in
most of the Islamic countries and catholic Christian communities. But these practices are fully ethical in
China, Russia, Japan and many other countries. Similarly, euthanasia (mercy killing) is permitted in
some countries but is strictly unethical in most countries.

(v) Ethics is normative or prescriptive in nature. It deals not with what is but what ought to be. It does
not rest on feelings of approval or disapproval but on principles. For example, it may be unpleasant to
fire an employee but morality may require it.

(vi) Ethical norms might not be legally binding. But these are more powerful than law because these
have the sanction of society. When a person’s behaviour is inconsistent with the prevailing values and
norms, it is called unethical. Ethics serves as a guide to law by highlighting its short comings.

(vii) Ethics relates to the behaviour of individuals and groups. The ethical norms do not apply to the
behaviour of animals, birds, and insects. Only human beings have the capacity to guide and regulate
their behaviour.

(viii) Ethics are not hard and fast rules. They are an expression of a society’s attitudes and beliefs. There
is an element of discretion as a person has the option to adopt ethical norms. Ethics may differ from
place-to-place and time-to-time.
(ix) There exist no sharp boundaries between ethical and non-ethical. Therefore, people often face
ethical dilemmas wherein a clear cut choice is very difficult.

(x) Ethics aims at perfection in human conduct. It guides law makers in framing proper laws to regulate
the behaviour of all citizens. Existing norms may contain valuable insights but ethics sets out to critics
and test them in terms of ultimate norms.

(xi) The concepts of equity and justice are implicit in ethics. Fair and equitable treatment to all is its
primary aim.

(xii) Ethics and morality are interrelated but not synonymous. In the words of Rogene A. Buchollz
“Ethics deals with the formalisations of ethical principles in the abstract or the resolution of concrete
ethical problems facing individuals in their daily life. Morality on the other hand generally refers to the
tradition of belief that have involved over years. concerning right and wrong conduct, so that morality
has its roots in belief of a society while ethics aim at formulating the principles to justify human
behaviour.” According to Clearance C. Walton, “morality is the standards than an individual or group
has about what is right and wrong good and evil.”

The British Philosopher W.D. Gross has listed six basic duties of a person:

(i) Fidelity – doing no harm to others

(ii) Reparation – making amends to those we have hurt

(iii) Gratitude – repaying those who have helped us

(iv) Justice – treating people as well as they deserve

(v) Beneficence – helping others when we can

(vi) Self-improvement – bettering ourselves but not at the cost of others

Need for Ethics:

In early 50’s the public view in India was that the profits and ethics do not go together. They are
mutually opposite and company that makes profit was not considered an ethical company. The normal
understanding of the people was “profit is a dirty word”. Since then the management education,
widening of markets and consumerism worldwide have given profits its important place in business.
Today it is considered profit is a must for any business for its existences and growth. In fact not making
profit is considered unethical today. Business ethics in simple terms is application of ethics in
businesses. Business has to go with its economics as well as social obligations.

Any managerial decision has to distinguish between good and bad, right and wrong, just and proper. It
is also seen that the ethical companies which took care of their social responsibilities have survived
competition and growing. Ethical issues occur in decision making in industry, education.

Importance of Ethics:

The business organisations which act legally and ethically not only save lot of money but also gain
public support and reputation in whatever new ventures the organisation takes. The importance of
ethics in business is many folds.

They are:

(1) Part of Society:

Business is part of society. Whatever ethical principle apply in society apply to business. Example tax
evasion is considered unethical in society. If a company deliberately evades tax payments the company
is treated unethical.

(2) Expectations of Public:

All stakeholders have an eye on the culture and behaviour of a business organisation due to dominance
of economics in the society. The public expects a high level of ethical behaviour from the business
organisations.

‘Doing the right thing’, ‘Do no harm’ and ‘Good to all’ are the expectations of general public from
business. Example: a company manufacturing a tobacco based products say ‘pan masalas’ and making
advertisements appealing to college students in not respected. Whereas a company that recalls unsafe
product is respected.

(3) Trust of Employees:

High level of morale and productivity can be easily obtained in companies that treat their all employees
with equality, encourage good team and work culture, and with ethical practices. The employees in the
company as well as those connected feel good and develop a mutual trust. Employees get attraction to
ethically and socially responsible companies.

(4) Image:

An ethical organisation command trust and respect of all its stakeholders. The organisation builds
image for itself. Ethical good image is important because all stakeholders stand to gain.

(5) Costs:

Deterioration of relationships, damage to reputation and reduction of employee productivity, loyalty

that come out of unethical practices cost companies. An uncaring employer will find it difficult to
employ good professions for his business.

(6) Pride of Best Companies:

The ethically managed companies command respect from public as well as government organisations.
‘Fortune’ magazine publishes yearly best companies. Similarly Indian will managed companies are
published by ‘Business India’. These companies have a brand value and accepted as leaders in the
industry. The company policies with regards to profit sharing bonuses, social responsibility, balance of
work and social life are quoted.

(7) Overall Benefit:

Ethical behaviour of an industry or business gives a win-win situation to all the stakeholders and
general public. The governments also encourage such companies. The integrity and ethical practices
become all-pervading in the organisation and increase organisational effectiveness.

Nature of Ethics:

Ethics deals with human beings only. It is only human beings who have the freedom of choices. Ethics is
a normative science. Normative science is judging the situations, analyse the facts, weigh the
consequences in terms of an idea and take judgment. The judgments are taken many times based on
what the end results should be. Ethics deals with human conduct.
The human conducts are sometimes voluntarily, sometimes forced depending on the situations and
the end expectation of results. In other words ethics deals with moral judgment regarding voluntary
human conduct. Fig. 8.2 below gives the various aspects of decision making in ethics.

Any decision in situational ethics takes it into account, the goals, the motives, the methods and the
consequences and their sub-factors as detailed in the figure:

Business ethics is application of ethics in business. Business itself is considered ethics as profit can be
made by ethical means. Discussions are held regarding the profit maximisation and social
responsibilities as opposite ends. By a proper management decisions these two ends can be made to
give better results by following ethical business practices.

Scope of Ethics:

The question is debated since the industrialisation period. The management thinkers like Adam Smith
and others were of opinion that business has nothing to do with ethics. The church or temple only can
think and evaluate ethical portion. The churches or temples had say in all spheres of human activity
including business.

Whether business is part or separate from society has different viewpoints:

(1) The Unitarian View:

The business is considered a sub set of a society. Hence business has in it the morals of the society. In
medieval era the churches prescribed that business must do well to the society.
The Unitarian view may be seen in Fig. 8.3 below:

(2) The Separatist View:

Celebrated economists Adam Smith and Friedman were of view that business should concentrate in
business activity of production, profits and costs. The social issues are left to others like governments
and society.

The Separatist view of ethics and business is shown in Fig 8.4 below:

Thinking much of ethics in business may perhaps take up to olden church and temple days. The
efficiency of industry of business will go down. Business should only obey laws of the land and achieve
its economic goals. Business goals should not dominate the social values.

(3) The Integrated View:

The view was proposed by Parsons. Parson considered integration of ethics and business. The business
exists as an economic entity. It has to make profits for its own survival and growth. Otherwise it will
die.

The business or industry exists in society. It has to be responsible and meet its obligations to the
society. Business that is making profits should be with ethical means.

The Integrated view of proposal of Parsons is represented in Fig. 8.5 below:

Society has a number of subsystems some are interlinked, interdependent and overlapping. Business
and ethics overlap as may be seen in Fig. 8.5 above. Business serves society by producing quality goods
and services for the society which needs them. It helps society. Business hence becomes ethics in
society even when it makes profit.

3 Basic Approaches to Ethical Behavior

Three basic approaches to ethical behaviour are suggested:

i. Utilitarian Approach:

This approach proposes that actions and plans should be judged by their consequences. People should
therefore behave in such a way that will produce the greatest benefit to society with the least harm or
the lowest cost. This approach suffers from the difficulty in recognizing all the benefits and the costs of
any particular decision.

Research reveals that only the stakeholders having the most power (ability to affect the company),
legitimacy (legal or moral claim on company resources), and urgency (demand for immediate
attention) are given priority by CEOs. It is therefore likely that only the most obvious stakeholders will
be considered while others are ignored.

ii. Individual Rights Approach:

This approach proposes that human beings have certain fundamental rights that should be respects in
all decisions. A particular decision or behavior should be avoided if it interferes with the rights of
others.

The U.S. Constitution includes a Bill of Rights that may or may not be accepted throughout the world.
This approach can also encourage selfish behavior when a person defines a personal need or want as a
“right”

iii. Justice Approach:

The justice approach proposes that decision makers be equitable, fair and impartial in the distribution
of costs and benefits to individuals and groups. It follows the principles of distributive justice and
fairness. This approach can also include redistributive justice and compensatory justice.

Cavanagh proposes that we can solve ethical problems by asking the following 3 questions regarding
an act or decision:

1. Utility- Does it optimize the satisfaction of all stakeholders?

2. Rights- Does it respect the rights of the individuals involved?

3. Justice- Is it consistent with the canons of justice?

Another approach to resolving ethical dilemmas is by applying Kant’s categorical imperatives to

guide our actions:

(1) A person’s action is ethical only if that person is will for the same action to be taken by everyone
who is in a similar situation. This is same as the Golden Rule. You should treat others, as you would like
them to treat you.

(2) A person should never treat another human being simply as a means but always as an end. This
means that an action is morally wrong for a person if that person uses others merely as a means for
advancing his or her own interests. To be moral, the act should not restrict another people’s actions so
that they are left disadvantaged in some way.

Ethics- Factors Affecting Individual Ethics

Individual ethics are determined by the following factors:

1. Family Influences – Individuals, as children, develop ethical standards if other family members
engage in ethical behavior.

2. Peer Group Influences – The children, when they grow up, are influenced by the behavior of their
friends and peer group. High or low standard of ethical behavior is likely to be followed in the same
manner by the members of the peer group.

3. Life Experience – The way an individual’s behavior is dealt with in real life situations also affects his
ethics. If his behavior (right or wrong) is reprimanded by his elders, he tends to avoid repeating it in
future thinking that it is unethical and vice-versa.

A person who speaks harshly, if, never objected to by his parents or elders, will form a habit of
speaking in that manner and will feel nothing unethical about it.

4. Personal Values – Ethical standards change according to the priority accorded to different
behaviours being pursued by an individual. A person who believes in the material world will have
different ethical standards than the one who prioritizes religious or social norms.

5. Situational Factors – Sometimes, people are made to behave in a particular manner because of the
situational factors. An honest man may resort to stealing if he is left with no other choice for meeting
his financial requirements in crisis. Though wrong in content, the unethical behaviour has been
adopted as warranted by situational factors.

Code of Ethics

A code is a statement of policies, principles, or rules that guide behavior. Certainly, codes of ethics do
not apply only to business enterprises; they should guide the behavior of persons in all organizations
and in everyday life. Code of ethics specifies how an organization expects its employees to behave
while on the job.
Developing code of ethics can be a useful way to promote ethical behavior and clarify company
expectations of employee conduct in various situations and makes clear that the company expects its
people to recognize the ethical dimensions in decisions and actions.

An increasing number of companies are developing codes of ethics and implementing ethics training
workshops and seminars. However, when faced with a question of ethics, managers tend to ignore
codes of ethics and try to solve their dilemma on their own.

Simply stating a code of ethics in not enough, and the appointment of an ethics committee, consisting
of internal and external directors, is essential for institutionalizing ethical behavior.

Such a committee may perform functions as holding regular meetings to discuss ethical issues, dealing
with grey areas, communicating the code to all members of the organization, checking for possible
violations of the code, enforcing the code, rewarding compliance and punishing violations, reviewing
and updating the code, and reporting activities of the committee to the board of directors.

The management of a company that wants to improve its employees’ ethical behavior should not only
develop a comprehensive code of ethics, but also communicate the code in its training programs,
performance appraisal system, in policies and procedures, and through its own action.

It may also want to do the same for those companies with which it does business. For example, Reebok
International has developed a set of human rights production standards for the manufacturers that
supply the company with its athletic shoes on a contract basis.

Religion and Ethical Behavior

Religion is very difficult to define. The Oxford Advanced Learner’s Dictionary defines it as – the belief in
the existence of a god or gods, and the activities that are connected with the worship of them. Religion
is important to ethics because our actions are, in many cases, governed by religious doctrines or ‘divine
commands’ as they may sometimes be called.

The underlying and most important aspect of religious beliefs is, or should be, that all religions
fundamentally and inherently speak or proclaim ethical conduct in the same way. There is probably no
religion that has doctrines conflicting with the fundamental ethical principles that we have outlined.
Once we have understood this aspect of religion, it will be simple to follow our faith and still be ethical
in all our actions. One should avoid giving too much weightage or credence to external symbolisms or
rituals associated with a religion or faith. For an individual, these rituals may have personal value and
he/she should practise them as he/she deems fit.

From an ethical point of view, such symbolism and practices can have their place, but it is more
important to understand the unifying and exalted principles associated with religious beliefs. Only such
an understanding will help us appreciate other religions and the associated practices. Understanding
our religion in its true perspective is important in formulating our ethical standards and resolving
ethical conflicts.

Influence of Religion:

Religion has great influence, to a large extent positive, in shaping our ethical behaviour. Almost all
religions have influenced the ethical thinking and standards followed by individuals and societies for
the past many centuries.

Most religions support the five cardinal ethical principles. Many social codes of conduct have a
religious sanction given by the preachers of the faith. Following a religion helps us in forming moral
standards and benchmarks.

Another aspect of religious faith is the psychological impact it has on our moral conduct. Religious
beliefs in most cases should guide us towards morally right actions. One aspect may be the reprisal or
punishment that may be meted out in case one’s actions are not according to religious doctrines.
Another aspect is the self-realization of an individual about the right moral stand to be taken in
accordance with his/her religious beliefs.

It must also be understood that most religions set high moral or ethical standards of life. Thus, if one
follows his/her religion and lives according to the dictates of that faith, he/she will be considered highly
moral in his/her actions. It is, however, necessary to understand the basic tenets of the religion and not
be governed by the trivialities of rituals and external symbolisms.
There were times in human history when religion, through its doctrines and dictates, played the most
important role in guiding people’s lives. For instance, in medieval times, the church had a great
influence on the governance of countries as well as the personal lives of people. Religious heads were
more powerful in shaping people’s behaviour than political or social heads.

Political heads or rulers looked up to the religious heads for guidance in taking decisions. Today,
religious heads do not have that kind of influence, but still do have considerable influence on our lives.

Having said that religion has a positive influence on our morality, we should also recognize that many
religious practices do not always set high moral or acceptable standards. Some religious practices
accord lower status to women and are biased against their rights. For example, in India, sati is a
practice of a woman ending her life on the same pyre when her husband dies and is cremated.

The practice has been going on for years, but has now stopped. Why the husband was not asked to
commit sati when the wife died is beyond comprehension or present social thinking. Thus, not all
religious practices are acceptable in today’s context. In conclusion, one can say that the influence of
religion in shaping our moral lives has predominantly been positive.

Following one’s faith is a good practice, but understanding its cardinal principles and tenets is very
crucial. That alone can give balance to our social and religious lives and guide us towards morally
correct behaviour.

Conflict with Ethics:

There is no apparent conflict between religion and ethics. Sati was also cited as an example of a
religious practice. However, even in this case, there is no conflict because all religions generally support
basic ethical principles and our moral beliefs are shaped to a large extent by our religious beliefs.
Conflicts arise only because we have not understood our religion correctly and follow practices that are
not acceptable in today’s civilized society.

Consider the case of child marriages in India. Is it a social practice or a practice sanctioned by the
concerned religion? As the marriages are conducted by priests who follow a religion, it appears to have
religious sanction. However, it is not socially acceptable and is against the constitutional provisions.
Conflict arises because of such a practice.
Again consider the case of a religious procession wherein thousands of people march through the
streets of a city. Traffic has to be diverted, educational institutions have to be closed, and the life of the
general public is thrown into chaos. Is such a religious practice necessary or warranted? Conflicts arise
not because of what a religion professes but because of the way we practise it.

There are many instances of religious practices that cause chaos in the life of people. Such chaotic
situations arise not because of what the faith preaches, but because of our misunderstanding of the
religion. Conflicts can be easily avoided if the followers of such practices understand the basic tenets of
the religion and follow ethical principles that are in tune with all religious preachings.

Ethical Dilemma

We are faced with ethical dilemmas almost every day, both at the individual level and at the societal
level. Ethical Dilemmas arise due to conflict of interest or due to ignorance of what is the correct thing
to do in a given situation. Both, the individual and the community face dilemmas.

In many situations, the right action may be evident. However, there may be many tricky situations
where it may not be possible to decide the right actions. Ethical theories help us win over such
situations.

A major reason for ethical dilemmas is the conflict of moral principles. As we decide to take action
based on one or more moral principles that apply in a given situation, we come to know that it conflicts
with other moral principles that need to be followed. For example, telling a lie or hiding the truth is
against moral principles.

However, there can be situations where telling a lie or hiding the truth may be the correct thing to do
according to some ethical theory. Dilemmas generally occur because of such conflicts among moral
principles. We face a dilemma when our moral beliefs, such as – duty, rights, principle, and values,
come into conflict in a given situation.

Another reason for ethical dilemma is the lack of clarity in a given situation. It may not be clear
whether a particular act is immoral or not. In addition, the professional may not be able to decide
whether it is ethical or not. Such situations frequently arise due to vagueness of the particular act.
Yet another reason for dilemmas can be situations where there is no agreement on what is the right
course of action. There is no vagueness about the situation but many people feel differently about the
right thing to be done.

All options have takers and each of them have good reasons to believe that morally what they think is
what is right. How one analyses and interprets the situation and how one formulates the solution come
into question. There is then a need to discuss and arrive at the best option in the given situation.

Examples of Ethical Dilemmas:

Let us illustrate ethical dilemmas with the following two examples:

i. As the purchase officer in an organization, an engineer has to choose between many options in
purchasing a particular item. Quite often it is not the lowest price that matters but many other
conditions, such as purchase agreement and long term benefits. On a festive occasion, one of the
suppliers comes with sweets and gifts for the engineer.

The supplier directly does not tell the engineer to select his item for purchase but gives the gift to him.
Is it morally right to accept the gift? The engineer feels that it is just a normal gesture during the festive
season as he knows him well and has had long discussions with him about products.

The engineer feels that his decision to purchase any product is not going to be decided by this gift
given by the supplier. However, he is concerned about the situation he is in. The supplier does not give
him these gifts for nothing; he expects that he will consider his product favourably and find reasons to
bypass lower tenders. Now, there is a ethical dilemma.

ii. A young lawyer working for a law firm is asked to take up the case of a client who has come with the
case details. The lawyer listens to what the client has to say. He studies the case in detail and finds that
the client has no case at all as per existing laws. He reports the matter to his superior and says that
they should not take up the case as they would not win it.

His superior is not satisfied and tells him that their duty is to fight the case for their clients to the best
extent possible. The superior orders him to take up the case, find any loopholes in the law that can
help, and fight the case as best as they can. The client has promised a considerable sum if the case is
won, in addition to the normal fee.
The young lawyer feels the dilemma that duty calls for taking up the case, while his conscience pricks
him as the chances of winning the lawsuit are extremely dim. What should he do?

Resolving Ethical Dilemmas:

When one faces a ethical dilemma, depending on the complexity of the problem, one has to make an
attempt to find a solution based on accepted ethical principles. Lack of clarity, conflicting principles,
and many other factors make it difficult to decide upon the appropriate action.

Solutions have to be case specific, but may generally involve the following steps:

i. Formulate some cardinal ethical principles that you would like to follow, if you have not done so
already.

ii. Collect all relevant facts of the case.

iii. Perform an ethical analysis of the given situation wherein you analyse the ethical factors that
predominate the problem and the ones that tend to conflict.

iv. While it may be difficult, prioritize the ethical factors in the order that you think should take
precedence.

v. Having formulated your ideas, it may be desirable to discuss with some people close to you about
the case and the implications you think any decision or action would have.

vi. Having received inputs from them, you can now formulate your plan of action, noting down all the
moral implications of the solution.

Ethical Issues: Classification and Examples

It must be clearly understood that we are discussing ethical issues that come up in the course of a
professional performing his/her job. To some extent, we also need to consider his/her personal life
from a moral perspective, as personal and professional lives are interlinked.

A person who thinks rationally and wants a clear conscience will face many situations in his/her
professional life that would make him/her think about the ethicality of his/her actions.
Such issues can be classified into two major classes as described here.

Variety of Ethical Issues:

We can classify the ethical issues faced by a professional into two major classes:

1. Micro-Ethical Issues:

These are problems frequently faced by a person in his/her day-to-day functioning. The issues may be
small but can nag a rational person’s mind and give him/her sleepless nights. These are issues where
he/she has to decide what actions he/she should take and if he/she is prevented from taking actions
that he/she thinks are right, then what is to be done. Plenty of such issues appear in a professional’s
life now and then.

2. Macro-Ethical Issues:

These issues deal with societal problems that are not often addressed or are neglected until they
acquire gigantic proportions. Many national disasters fall under this category, where the engineer may
only be a cog in the wheel. The Bhopal gas leak is one such example.

Both these types of issues deserve our attention. While the day-to-day small issues need to be
resolved, one should also look at the macro issues, which have great ethical implications and will
benefit the society in the long term.

Since macro issues are likely to be in the realm of senior managements, the professional may not be
directly involved but as a professional he/she needs to understand the systemic problems that cause
such instances of difficulty. A professional needs to concern himself/herself with such issues as these
help one to look at systemic issues that are of great significance.

Examples of Ethical Issues (With Skills):

Let us illustrate this with a few examples:

i. A junior engineer working at a construction site feels that the concreting of the roof is being done
incorrectly. Too much water is being added arbitrarily and due to paucity of labour, the concrete being
mixed at the site is not placed in position in time. He talks to his executive engineer about this
problem. The executive engineer tells him to ignore this because he has a soft corner for the
contractor.

He says that he has done supervision at many sites and knows when to take action. He advises the
junior engineer to ignore it and proceed with the construction supervision. The junior engineer feels
that this will result in a weakened structure and will cause leakages in the long run. What should he
do?

ii. As an engineer, you pass by a construction site every day. You think that the safety of workers is not
being taken care of by the construction firm. The rickety scaffolding is very dangerous and is not
properly made and supported. The workers working at great heights are in the danger of falling to the
ground and there are no safety nets provided. You feel it is a hazardous situation that could potentially
lead to a tragedy.

You are not concerned with the work but something is bothering your mind. Should you report your
apprehensions or should you keep quiet? What if after a few days, you get to read in the newspaper
that at that very construction site, a labourer fell from the scaffolding and died. Would you be filled
with remorse because you have not done your duty as an engineer and a professional or even as a
citizen? What do you think?

iii. Let us take a case of a societal problem. As an engineer working in the electricity distribution
company in Delhi, you felt that your company was not doing enough to acquire power or report to the
government that the power situation would aggravate in a few days’ time. When the matter was
discussed with your superior, he told you to keep quiet as you were concerned only with the
distribution of power and not with the generation of power.

After some time, there were frequent power cuts and supply failures took place. Low voltages created
many problems with electrical appliances. Nobody seemed to have bothered about this for many days.
The public were up in arms and there were incessant protests about the power situation.

It was only then that the administration woke up and lamented the performance of the distribution
companies. Whose fault was this? The power shortage situation was swept under the carpet for long
and it was only when it became very serious that some action was being taken.

Moral Autonomy:
Moral autonomy refers, in general, to the freedom and self-reliance of an individual to take moral
decisions or hold moral points of view. Moral autonomy comes from an inherent strength for rational
thinking based on moral values imbibed over a period of time. Professionals need to develop moral
autonomy over a period of time by acquiring the knowledge and skills needed to develop such rational
thinking.

Moral autonomy is just not any independent decision taken by a professional. In fact, the basis and
rationale behind such decisions reflect moral autonomy. Moral values and ethical conduct imbibed
from childhood form the background for a professional to have moral autonomy.

As a professional progresses in his/her professional life, he/she will come across many situations that
call for his/her decisions on moral issues. A professional’s perception on such issues, the rational
analysis of the situation to understand the implications and impact of the various options before
him/her, and finally taking a decision and acting on it are normal occurrences in a professional’s life.

The basic training and guidance we receive as children on moral or ethical matters will be reflected in
the decisions we take. Moral concerns based on the cardinal principles will be the hallmark of our
moral autonomy.

Various moral concerns may arise during one’s professional life. These would call for pondering over
moral issues. An engineer in the quality control department may face a situation where he/she is asked
to give manipulated results and may also be rewarded for it.

The persuasion can come from an outside party or from his/her own superior who may ask him/her to
tamper the results. This will go against the individual’s own perception of what is right. Self-interest
may come into conflict with the correct actions he/she is supposed to take or what his/her conscience
says is the correct action. Standing up to such challenges calls for moral autonomy coming from
inherent moral strength.

A young doctor working in a private hospital may come across a situation where the patient may not
really benefit from a surgery. His superiors may ask him to go ahead with the surgery as this will give
them an opportunity to extract money from the patient.

The doctor’s personal judgement may go against what his employer wishes and this will create a moral
dilemma. The doctor needs to meet the challenge by taking a correct moral stand that may be against
his personal interest.
How does one face such situations and take actions that are morally correct? A course on professional
ethics may give you some guidance to act in the right manner. All professionals need to imbibe such
qualities through training and by developing skill sets needed for this purpose.

The following are the skills required to face such situations, and take actions that ensure peace of
mind and a clear conscience:

i. Develop skills to identify problems of a moral nature in professional work. A problem may have many
dimensions but recognizing the moral aspects of the problem and relating these to other dimensions of
the problem is important. The moral values one has imbibed during childhood, and in school and
college has a bearing on this.

ii. Develop the ability to critically analyse a moral issue or situation. Where the action to be taken is
clear and one does not face any conflict, the situation is simple. However in moral issues, very often,
we face conflicts and it may be necessary to look at the pros and cons of the action options to decide
correctly what is to be done.

iii. Develop sensitivity to genuine difficulties. Some moral issues may call for taking actions, which at
first sight may go against some moral principles held by the individual as sacrosanct. In such cases,
some flexibility in thinking and taking decisions for the overall good of the people concerned may be
called for.

iv. Develop ingenuity, creativity, and imagination to find alternative solutions to complex problems.
Many problems do create situations that call for out-of-the-ordinary solutions. A true professional will
develop creative solutions to such complex problems by a critical analysis of all factors and by
imaginative understanding of the alternatives possible.

v. Develop consistency in thinking on moral issues. Consistency comes from knowledge and
understanding of similar situations and comparison of facts in a given situation with those of others.

vi. Develop the ability to express your perception on moral issues clearly to others. This will enable
others to appreciate the rationale behind any actions proposed in a given moral issue. An
understanding of ethical principles and theories will enable one to make a comprehensive expression
of one’s views.
vii. Develop moral integrity and credibility. This can be strengthened in your actions in all spheres of
life, whether it is professional or personal. Consistency in moral standpoint of the individual in all
spheres gives credence to his/her views on moral issues.

viii. Develop tolerance and try to understand other people’s views on moral conflicts. Moral issues,
very often, are not simple enough to generate an algorithmic solution. People who think rationally may
come out with differing perspectives of the problem. One must develop the ability to appreciate
differing but rational points of view.

ix. Develop the ability to assimilate moral issues and solutions even in cases where you are not directly
concerned. A general interest in moral concerns and issues, even in other professions, may be of help
in one’s own profession. Keep track of moral issues and solutions and try to form your own opinions in
such cases.

x. Develop your own moral standards or benchmarks for applying to situations that you may face. Over
a period of time, this will help you in creating a yardstick for judging many situations.

Thoughts on Ethics (Indian and Global Thoughts)

Ethical canons have been in existence for a very long time. In India, they can be found in ancient texts
such as – the Vedas, Upanishads, and scriptures. In the western world, starting from Socrates, there
have been many philosophers who have given prominence to ethical thoughts in their sayings and
writings.

1. Indian Thoughts on Ethics:

Many humanistic ideals and virtues or ethical principles are extolled in the Vedas and Upanishads.
These include truthfulness, honesty, integrity, philanthropy, gratitude, forgiveness, non-violence,
fidelity, and so on.

The early periods witnessed the evolution of the four castes (chatur vamas). Though there was a noble
idea behind it, it did not work out as a social justice measure. Each vama had duties appropriate to
their functions.

The life cycle concept of childhood, student, householder, renunciation, and sanyas was also practised.
Each life stage has its own moral code for people in that group. The Gita expounded the concept of
right of action without any right for the fruits of that action.
Subsequent periods also had writings by Manu (Manushastras) and Kautilya (on politics and business)
that talk about the way various human activities had to be performed and the ethical aspects of these
activities.

Buddhist Thoughts:

Buddha, who attained enlightenment and preached the basic tenets of Buddhism, had given five basic
canons for people to follow. These refer to abstinence from –

i. Hurting/killing any living creature;

ii. Stealing others’ property;

iii. Wrong and excessive indulgence in sensual pleasures;

iv. Telling lies; and

v. Taking intoxicants;

Buddhism is essentially ethical principles based on virtues as Buddha extolled people to acquire traits
such as – truthfulness, righteousness, benevolence, compassion, sympathy, abstinence, patience, and
purity. Buddha also rejected the concept of caste and race based on birth.

There are many saints and sadhus who have discussed the right way of life.

The views of some of the recent thinkers on the subject are discussed below:

a. Swami Vivekananda:

Swami Vivekananda was a great philosopher who influenced ethical thinking by preaching all over the
world. Swami Vivekananda, whose actual name was Narendra Nath, was born in an affluent family in
Kolkata on 12 January 1863 to Vishwanath Datta, a successful lawyer, and Bhuvaneshwari Devi.

He was endowed with profound faith and a strong character. He graduated from Calcutta University
and had acquired considerable knowledge of western philosophy and history. He was associated with
the Brahmo movement for some time. His spiritual inclination was evident since childhood, as he used
to practise meditation even as a child.
His meeting with his guru Sri Ramakrishna occurred when he visited the latter to ask about the
existence of God. Ramakrishna was able to convince him about the existence of God and had a great
influence on the future life of young Narendra. He was so greatly influenced by his guru that later, he
made it his mission in life to spread his guru’s thoughts across the world.

His address at the World Parliament of Religions in 1893 brought him into prominence as a great orator
and thinker.

A few salient aspects of his ethical thoughts can be summarized as follows:

i. He advocated monism, meaning that the whole world is one. It is in this concept that lies the
explanation for ethics, morality, and spirituality.

ii. Ethics is only the means to an end. One should be clear about the end and that alone clarifies the
meaning of ethics.

iii. The basic principle of ethics is the Vedantic idea that you are the infinite.

iv. The feeling of oneness represented by ‘I am the universe’ is at the centre of all ethical thinking and
results in doing good to others.

v. While your senses say ‘myself first’, ethics says ‘I am last’.

vi. When the means are right, the results must come; attention to means, therefore, is the secret of
success in life.

vii. Utilitarianism and ethical codes based on it are for a particular time only. Ethical codes based on
spirituality relate us to the infinite and embrace the society as well.

viii. Work for lessening misery as that is the only way you can attain happiness.

b. Mahatma Gandhi:

Mohandas Karamchand Gandhi, popularly known as Mahatma Gandhi was one of the greatest leaders
the world has seen in recent times. M.K. Gandhi was born on 2 October 1869 in Porbandar, Gujarat. He
studied law from the University of London. After unsuccessful attempts at practising law, he joined a
firm in South Africa. The apartheid system in South Africa gave him his first taste of white domination
and colonialism.
Gandhiji, popularly called the Mahatma and fondly called Bapu, was the most prominent leader in
India’s struggle for freedom. Also recognized as the Father of the Nation, he was instrumental in a non-
violent movement that finally won India its freedom.

Mahatma Gandhi was one of the leaders who believed in some fundamental ethical tenets. He
staunchly believed that satyagraha, literally meaning desire for truth (and the originator of the civil
disobedience movement), and ahimsa, meaning non-violence, will be very powerful tools to make the
British colonial rulers accept India’s quest for freedom.

The movement that he spearheaded was unique in the history of the world for the mass base it was
able to generate and the non-violent means that it adopted.

In addition to being a political leader, Mahatma was also a leader of the people by identifying himself
with them. He was able to generate their support by setting an example with the way he lived. He
propounded many theories of a self-reliant rural economy and worked incessantly towards the
abolition of untouchability and empowerment of women.

A few salient thoughts of the Mahatma on ethics are listed as follows:

i. Sympathize with every human being as that will help you practise the highest form of ethics.

ii. A moral act should come from within, from your own free will.

iii. The means must be good; impure means result in impure end.

iv. External actions must be performed with mental purity and in selfless spirit.

v. The highest form of morality is altruism.

vi. True economics never militates against the highest ethical standards.

vii. Economics that hurts an individual or a society cannot be ethical.

viii. Life should become progressively simpler and we should become more self-restrained.

c. Rabindranath Tagore:
Rabindranath Tagore was born in 1861 in Bengal. He had his early education at home and later went to
England for formal schooling. He did not complete his studies there and returned home. He started his
experimental school at Santiniketan where he tried the Upanishadic ideals of education.

Rabindranath Tagore was an erudite scholar, poet, philosopher, and writer. His early writings in Bengali
included poems that were translated for the readers of the West and became very popular. Rabindra
Sangeet is a living tradition of his music and still very popular. He wrote many poems, plays, essays,
dramas, travel diaries, and autobiographies. He won the Nobel prize for literature for Gitanjali.

Some salient thoughts of Rabindranath Tagore on ethics are as follows:

i. The spiritual aspect of man represents sympathy and love while the moral side represents
unselfishness and control over desires. They should be taken together and not separated ever.

ii. A moral life is one where a man goes from a life of desire to a life of purpose by building his
character.

iii. We achieve perfection in life by perpetually giving up.

iv. A moral rhythm must be maintained in all creations to save them from destruction.

v. Man’s greed exaggerates the lust for sensual pleasures. This breaks the harmony in fife and we lose
true values.

d. Sri Aurobindo:

Sri Aurobindo was born in Calcutta (now Kolkata) on 15 August 1872. He completed his school and
college education in London. After returning to India, he worked in Baroda for a number of years in the
service of the Maharaj, while teaching in a college. His first stint in the freedom struggle was during
this period, when he joined in the planning of an uprising against the British rule.

He then returned to Kolkata and was the first revolutionary to put forth the idea of complete
independence to India. He went to jail a number of times for his revolutionary writings. He renounced
politics in 1910 and began spiritual pursuits. He spent the next 40 years in Pondicherry where he
founded the Aurobindo Ashram. He propounded the concept of integral yoga, which not only liberates
man’s consciousness, but also transforms his nature.

His salient thoughts on ethics are as follows:

i. Our actual enemy is not any force exterior to ourselves, but our own crying weaknesses, our
cowardice, our selfishness, our hypocrisy, our purblind sentimentalism.

ii. Goodness and not utility must be the yardstick for the attainment of virtue.

iii. Utilitarianism means reducing ethical action to moral mathematics but is alien to the instinct and
intuition of the ethical being.

iv. Human perfection is attained through will, character, self-discipline, and self-mastery.

v. Ethics does not lie in the calculation of good and evil but in the attempt to grow into divine nature.

vi. Virtue evolves out of our struggle to overcome our pleasure-seeking nature.

2. Global Thoughts on Ethics:

Western thoughts on ethics have a long history. Great thinkers such as – Socrates have propounded
many ethical canons. For some time, ethics was governed by the church during the peak of the
Christian era. More recent thinkers include Gagne, Kohlberg, Gilligan, and Kant who dwelt on moral
development theories.

The principles laid down by a few stalwarts of western philosophy are given below:

a. Socrates:

Socrates (469-399 BC) was born in Athens. Though a great philosopher and thinker, he wrote nothing.
The Socratean method was one of question-answer and much of what is known about Socrates comes
from the writings of his disciples Plato and Aristotle. The dialectic method is credited to Socrates.

By questioning people on their assertions, this method finally proves the right position on the subject.
Socrates himself never took any stand. Socrates was imprisoned for corrupting the youth and working
against the religion of the country. He was sentenced to death. He drank poison in the company of his
friends and died.
Socrates defined virtue as knowledge and believed that if one knows good, one will always do good.
Those who practise evil do not know what goodness means.

These thoughts, popularly known as Socratic paradoxes, have been listed as follows:

i. No one desires evil.

ii. No one errs or does wrong willingly or knowingly.

iii. Virtue—all virtue—is knowledge.

iv. Virtue is sufficient for happiness.

Whatever is known about Socrates is from the writings of his disciples. Plato has described Socrates’
thoughts very elaborately. Many scholars believe that it is impossible to distinguish Socrates’ thinking
from that of Plato.

A few of the major ideas and observations made by Socrates have been listed as follows:

i. The only good is knowledge and the only evil is ignorance.

ii. Having the fewest wants I am nearest to the Gods.

iii. There is nothing stable in human affairs; avoid undue elation in prosperity and undue depression in
adversity.

iv. The only true wisdom is in knowing that you know nothing.

v. To find yourself, think for yourself.

vi. I cannot teach anybody anything; I can only make them think.

vii. Education is the kindling of a flame and not the filling of a vessel.

viii. If you don’t get what you want, you suffer; if you get what you don’t want, you suffer; even when
you get exactly what you want, you still suffer because you can’t hold on to it forever. Your mind is
your predicament. It wants to be free of change, free of pain, free of the obligations of life and death.
But change is law and no amount of pretending will alter that reality.

ix. I am not an Athenian or Greek but a citizen of the world.

x. Contentment is natural wealth, luxury is artificial poverty.

xi. Employ your time in improving yourself by other men’s writings so that you shall come easily by
what others have labored hard for.

xii. From the deepest desires often come the deadliest hate.

xiii. The secret of happiness, you see, is not found in seeking more, but in developing the capacity to
enjoy less.

xiv. Think not those faithful who praise all thy words and actions; but those who kindly reprove thy
faults.

b. Confucius:

Confucius (551-479 BC) was a Chinese thinker and social philosopher who is credited with the well-
known saying, ‘Do not do to others what you do not want done to yourself.’ He is a follower of the
principle of virtue ethics.

He emphasized on the following ethical principles:

i. Personal and government morality

ii. Correctness of social relationships

iii. Justice and sincerity

iv. Family loyalty, ancestor worship, and respect for elders

v. Superiority of personal exemplification over explicit rules of behaviour

vi. Self cultivation

vii. Emulation of moral exemplars

viii. Attainment of skilled judgement rather than the knowledge of rules

ix. Doing proper things at the proper time

x. Maintaining existing norms to perpetuate an ethical social fabric

xi. Violating rules in order to get ethical good.

Let us now understand the last point using an example – You are approached by someone whom you
know to be a confidence trickster, asking for the address of somebody in the locality. You know the
address and the person living there well. Telling the truth is a universal value. But here, should you tell
the truth? You are not sure what the person will do with the address. So you tell him that you do not
know the address. It is highly likely that some good may result from telling this lie.

Development: Greek Ethics, Medieval Ethics and Modern Ethics

Ethics has developed as a science of moral reasoning in the following phases:

1. Greek Ethics:

It advocates that ethics deals with duties of a person as moral citizen of the nation. A good or ethical
man is the one who performs his duties as a good citizen. Famous advocates of this view are Socrates,
Plato and Aristotle.

2. Medieval Ethics:

This is the period when Christianity spread in Europe. It spread the thoughts that ethics is not simply a
part of politics (as said in the Greek philosophy). It does not deal with duties of a person. Rather, it
deals with increasing the inner aspect of a person’s morality.

3. Modern Ethics:

This era of ethics believes in performing actions whose results bring good to us and to others. It deals
with determining Tightness of the acts. It tells about what individuals or institutions ought to do.

Moral theories that advocate modern ethics deal with two components:

(a) Theory of Value or Theory of Good:

It decides about what is good or valuable, though it does not make this explicit. It focuses on properties
that we want to be realized in our actions. These properties may be compliance with law of nature,
human freedom, social solidarity or combination of one or more of them.

(b) Theory of the Right:

It does not tell about which properties are valuable but tells about what individuals and institutions
should do by responding to valuable properties.

Top 2 Methods used for Instilling Ethics: Whistle Blowing and Fraud Hotline

Fraud is a major concern among business executives. One needs to ensure that employees and the
management team practice ethical behaviour. Anyone could be involved in a scam; a person may have
vested interests or a situation may compel one to commit the act.

Whistle blowing may be necessary in a variety of business situations—when a senior or a junior is seen
to be indulging in an unacceptable practice or when the boss orders something unacceptable with
regard to the environment. In order to instil ethics among employees in organizations, there are two
methods that can be used—whistle blowing and fraud hotline.

i. Whistle Blowing:

In a football match, whenever there is a forward in off-side or a defender fouls, the referee uses his
whistle to correct the fault done immediately. Similarly, in organizations as soon as a fault or unethical
action is done, someone should blow the whistle to alert the erring employee.

Whistle blowing means calling attention to a wrongdoing at the instance when it occurs within an
organization. The accountability project lists some ways to blow the whistle.

Some of them are as follows:

a. Reporting an unlawful activity or a violation of the law to the proper authorities

b. Refusing to participate in workplace wrongdoing

c. Testifying in a legal proceeding in a departmental inquiry or a court of law

d. Leaking evidence of wrongdoing to the media by a person other than the spokesperson.

ii. Fraud Hotline:

The fraud hotline is a process for reporting concerns about improper, illegal, or anything that may
violate the company’s image. The most important and common hotline is the telephone for reasons of
convenience. The manager responsible to maintain ethics may be accessible through a 24-hour hotline
system. The hotline is the most effective system that a company can allow for employees, customers,
and even vendors to give information anonymously.

The witness or observer of an unethical incident will have to convey the message and the voice will be
recorded at the other end. The recipient of the message, a trained live interviewer at the other end of
the line, may like to seek some more information for probing the extent of gravity of the information.

For example, being an employee of a large company, if one has information about a fraudulent
incident happening in the company, one may not feel like talking to the senior. The superior may be
committing the fraud. In such cases, one should bring the matter to the notice of his/her senior’s
senior. However, this may be a dangerous step as the senior also might be entangled in the fraud
chain.

Furthermore, one may not want to talk to other employees because he/she may not be sure how they
would react. By protecting oneself, an employee may access the information without disclosing his
name and contact details. If the identity is revealed, the experienced interviewer may ask pertinent
questions to get all the relevant information they need, so that they can get the take up matter to the
company. The hotlines operate 24 hour/365 days a year and are equipped to handle different
languages spoken within a company.

Organizational Drives:

It has already been established that the code of conduct should be laid out in a formal document. Con-
currently, organizations should educate the new recruits and existing employees, create an
environment conducive to promoting ethical conduct, and demonstration by the leadership team.

The measures that can be adopted are as follows:

1. Business conduct process should be an integral part of the induction programme for new recruits.
Management needs to send frequent messages to them, keeping in mind that ‘it is easier to make the
doll when the clay is soft’.

2. Employees should be aware of the business conduct policies. The legal department should design a
‘legal compliance course curriculum’ and the course should be conducted by experienced personnel.
These courses should be mandatory and the employees must be evaluated.
3. Management-employee interaction session is a great platform to raise employee awareness and is
of paramount importance where the management can share certain dos and don’ts with regard to
behaviour disposition. These interaction sessions promote employee relations.

4. Internal communication plays an important role in conveying business conduct policies informally in
a non-instructional manner, citing examples of actual situations to communicate acceptable form of
behaviour.

Organizations can definitely derive benefits by adopting these practices in a planned manner.

Instilling Ethics through Culture:

An organization needs to create a culture of ethical conduct. The processes must be well defined so
that the decision-makers can take the right decisions from amongst available alternatives. The orga-
nizational culture should develop employees so as to evaluate them through self-questioning.

Sasikar 2010 suggests three dimensions of self-questioning:

1. Is my action consistent with the company’s corporate values of uncompromising honesty and
integrity?

2. Can my action stand public scrutiny?

3. Will my action protect the company’s reputation as an ethical company?

Ethics and Virtue:

It is as important to be virtuous as it is to be ethical. Some of the virtues that one must possess are
benevolence, contentment, cooperation, courage, determination, humility, tolerance, and wisdom.
Other virtues include mercy, obedience, cleanliness, and introversion.

Guidelines for Ethical Behaviour

Though each individual or group has his own sets of ethical values, a few guideline have been
prescribed to be followed:

1. Obey the Law – Obeying the legal practices prevalent in a country is conforming to the ethical
values.
2. Tell the Truth – Disclosing the fair accounting results to the concerned parties and telling the truth is
also an ethical behaviour on the part of managers.

3. Respect for People – Management ethics requires managers to show respect towards whomsoever
he comes in contact with.

4. The Golden Rule – The golden business principle is “Treat others as you would want to be treated”.
This, if followed, will always result in ethical behaviour.

5. Above All, Do No Harm – Even if law does not prohibit the use of chemicals in producing certain
products, managers must avoid using them if their use happens to be an environmental pollutant.

6. Practice Participation – Not Paternalism – Managers should not decide on their own as to what is
good or bad for the different stakeholders. They must assess their needs, analyse them in the light of
business needs, and integrate the two needs by allowing the various stakeholders to participate in the
decision making processes.

Comparison Chart

BASIS FOR
ETHICS VALUES
COMPARISON
 BASIS FOR
ETHICS VALUES
COMPARISON

Meaning Ethics refers to the guidelines Value is defined as the principles and
for conduct, that address ideals, that helps them in making
question about morality. judgement of what is more important.

What are they? System of moral principles. Stimuli for thinking.

Consistency Uniform Differs from person to person

Tells What is morally correct or What we want to do or achieve.

incorrect, in the given
situation.

Determines Extent of rightness or Level of importance.

wrongness of our options.

What it does? Constrains Motivates

Key Differences Between Ethics and Values

The fundamental differences between ethics and value are described in the given below points:
 1. Ethics refers to the guidelines for conduct, that address question about morality. Value is
defined as the principles and ideals, which helps them in making the judgement of what is more
important.

2. Ethics is a system of moral principles. In contrast to values, which is the stimuli of our thinking.

3. Values strongly influence the emotional state of mind. Therefore it acts as a motivator. On the
other hand, ethics compels to follow a particular course of action.

4. Ethics are consistent, whereas values are different for different persons, i.e. what is important
for one person, may not be important for another person.

5. Values tell us what we want to do or achieve in our life, whereas ethics helps us in deciding
what is morally correct or incorrect, in the given situation.

6. Ethics determines, to what extent our options are right or wrong. As opposed to values, which
defines our priorities for life.

Conclusion

While ethics are consistently applied over the period, and remains same for all the human beings.
Values have an individualistic approach, i.e. it varies from person to person but remains stable,
relatively unchanging, but they can be changed over time due to a significant emotional event.

References

https://www.yourarticlelibrary.com/society/values-its-meaning-characteristics-types-
importance/35072

https://www.yourarticlelibrary.com/essay/values/essay-on-values-meaning-characteristics-and-
importance/63830

https://www.yourarticlelibrary.com/business/ethics/ethics/99812

https://www.yourarticlelibrary.com/essay/essay-on-ethics-meaning-need-and-importance-
business/99483

https://keydifferences.com/difference-between-ethics-and-values.html