Ethics, Values and

Meaning of Ethics
 Ethics are principles of personal and professional conduct.
 Ethics is broader than what is stated by law, customs and public
 Ethical behaviour may differ from society to society.
 Ethical standards are ideals of human conduct. Defining ethical
standards is not an easy task.
Managerial or Business Ethics
Business ethics deal with application of moral principles to business
problems. The purpose of business ethics is to guide the efforts of
managers in discharging their duties to the satisfaction of various
stakeholders. Managerial ethics, thus, are those principles that guide
the conduct and thinking of managers with respect to what is good or
bad; right or wrong.
Determinants of Ethics
The key forces that shape the ethics of a person may be stated thus:
1. Family, school and religion
2. Peers, colleagues and superiors
3. Experiences in life
4. Values and morals
5. Threatening situations
6. Organisational demands
7. Legislation
8. Government rules and regulations
9. Industry and company ethical codes of behaviour
10. Social pressures
A value is something that has worth or importance to an individual. It
contains a judgmental element, in that it carries an individual's ideas as
to what is right, good or desirable. Values contain both content and
intensity attributes. The value system is a framework of personal
philosophy which governs and influences the individual's reactions and
responses to various situations.
Values are:
 moralistic in nature;
 fewer in number than attitudes;
 most central to an individual;
 relatively permanent and resistant to change;
 guide actions and judgements across specific objects or situations.
Types of Personal Values
Terminal (end) Values Instrumental (means) Values
Prosperity Ambition and Hardwork
Stimulating, active life Open-mindedess
Achievement Competence
World peace Cheerfulness
Equality Courage
Personal and family security Forgiving nature
Freedom Helpfulness
Happiness Honesty
Inner peace Imagination
Friendship Courtesy
Wisdom Responsibility
Social Responsibilities of Business
Business objectives may broadly be divided into two categories:
economic and social. Economic objectives are goals with respect to
the marketplace. Social objectives refer to the company's intentions
toward its employees, shareholders and the public at large.
What kind of Responsibilities?
In determining a firm's social responsibility, managers must identify the
groups that are influenced by its actions and what are their expectations
out of the business. In a broad sense, such groups may include owners,
employees, customers, the community, the government, suppliers, and
society in general.
1. Responsibility to owners:
 Utilising funds in the best possible manner.
 Ensure a fair rate of return regularly.
 Fair and honest reporting of business operations from time to
2. Responsibility to employees
 Recognise the social needs of workers and provide adequate
participation to employees in matters affecting their life.
 Fair and reasonable rates of pay.
 Creating a healthy work climate, improving working and living
conditions and making the work place safe and pleasant.
 Improving the quality of working life of employees.
3. Responsibility to customers:
 Providing goods of superior quality at reasonable prices.
 Avoiding deceitful, false, and highly exaggerated
advertisements and high pressure publicity gimmicks
aimed at wooing the customers away from competitors.
 Management should not indulge in anti-social activities like
black marketing, hoarding, etc.
4. Responsibility to creditors and suppliers:
 Provide accurate information regarding the financial health
of the organisation.
 Ensure a reasonable price for the articles supplied, and
make prompt repayments (involving interest on
borrowings); there should be fairness in transactions.
 Promote a healthy atmosphere where creditors, suppliers
and other interest groups are treated as partners in a
cooperative endeavour.
5. Responsibility to community:
 Develop constructive relationship with members of the
 Participate in community activities and promote community
welfare. Renovating neighbourhoods surrounding the company's
headquarters, building public parks with playground equipment,
and granting employees paid leave of absence to work in social
 Offer good housing and efficient transportation to own employees
and to poorer sections of the community.
6. Responsibility to government:
 Follow fair trade policies and practices.
 Pay taxes to the government honestly.
 Obey the laws.
 Discourage unhealthy practices like bribing the government
officials to curry favours, obtain licences in order to kill the
competition, etc.
7. Responsibility to society:
 Elimination of poverty and provision of quality health care.
 Preservation of the environment by reducing the level of
 Providing equal employment and educational opportunities to
all, regardless of race, colour, creed or sex.
 Providing sufficient number of jobs and career opportunities
and facilities for all members of society.
 Improving the physical environment and developing human
resources fully. Some of the examples in this regard may be;
conducting educational programmes to combat drug abuse,
provision of seed money to minority suppliers, urban
rehabilitation loans to construct low-cost houses, providing
managerial training to small entrepreneurs, establishing
manufacturing plants in economically backward regions, etc.

• A sociogram is a visual representation of
the relationships among characters in a
literary text.
• 'Sociometry' is the study of interpersonal
relationships between people in a group.
• Jacob L Moreno was the founder of this

• Students can make use of pictures,
symbols, shapes, colors, and line
styles to illustrate these relationships.

• Sociometry helps the researcher
visualize the relationships in the form
of a Sociogram and then analyze the
interpersonal dynamics within the


• In a sociogram, the central character(s) is placed at
the center of the page, and the other characters are
placed around him/her.
• The spatial relationship on the page should in some
way represent each of the character’s relationship
with the main character, as well as with each other.
Lines/arrows are used to show the “direction and
nature” of the relationship (e.g. strength/weakness,
friend/foe, dominance/submissiveness, etc.).