Value & EthicsSources, Formation & Role In Ethical/Good Governance Presented By:- SARTHAK GUPTA 11BSP0889
INTRODUCTION• Values and ethics are Central To Any Organization.
Values• Values can be defined as those things that are important to or valued by someone. That someone can be an individual or, collectively, an organization.• Values are the embodiment of what an organization stands for, and should be the basis for the behavior of its members.• Values provide the basis for judgments about what is important for the organization to succeed in its core business.
• TO BEHAVE ETHICALLY IS TO BEHAVE IN A MANNER THAT IS CONSISTENT WITH WHAT IS GENERALLY CONSIDERED TO BE RIGHT OR MORAL. ETHICAL BEHAVIOR IS THE BEDROCK OF MUTUAL TRUST.So how do values relate to ethics, and what do we mean byethics?
Ethics• Individually or organizationally, values determine what is right and what is wrong, and doing what is right or wrong is what we mean by ethics.• To behave ethically is to behave in a manner consistent with what is right or moral.• Organizations, to some extent, define what is right or wrong for the members of the organization.
Sources of Values• Family• Friends• Religion• School• Books• Media and Internet• Culture• Employers• Time-period in which you were raised etc.• Some of your most important values are formed around the age of ten years.
Sources of Business Ethics• Primarily ethics in business is affected by three sources - culture, religion and laws of the state.• It is for this reason we do not have uniform or completely similar standards across the globe.• These three factors exert influences to varying degrees on humans which ultimately get reflected in the ethics of the organization.• For example, ethics followed by Infosys are different than those followed by Reliance Industries or by Tata group for that matter. Again ethical procedures vary across geographic boundaries.
Formation of Values• We start forming values in our childhood. First we learn to appreciate things that fulfill our basic needs, but we value especially those people that provide them to us.• Their behavior towards us becomes the main reference of what is valuable.• The consistency and coherence of our parents’ behavior is what strengthens our formation.• Values are often confused with habits, and many parents hope that school will form the values that were not instilled at home. This is not possible, because school does not fulfill the basic needs of life… that is the responsibility of those who raise us.
• Teachers, leaders, and value models at school can reinforce what was formed at home, but they cannot replace them. If the convictions formed at home are not solid, they will soon be exposed to an intense social competition against other beliefs.• Those who play a leadership role in our lives are most powerful at conveying to us their values. They are our parents, elder siblings, grandparents, some relatives, teachers, peers we admire, professors, and bosses.• However, to convey something, we must first possess it. Values are only conveyed through the example of our daily attitudes and behaviors. They can seldom be formed by explaining them or through a list of what is considered correct or incorrect. Memorizing their theoretical meaning does not guarantee their implementation.
Ethics Formation• An individual’s ethics are formulated through the operation of forces in the individual’s environment. These are discussed in the succeeding paragraphs.• Family influences The formation of ethics begins when the individual is a child. Thus the family environment has a significant influence in determining what the child learns about good and bad, right and wrong.• Peer influences As the child develops contacts outside the home through home, school, play and work, peers exert considerable influence on the individual’s ethical beliefs.
• Experiences As a person matures and develops as a human being, he or she will be exposed to many critical experiences that will be affect his or her ethical standards.• Values and morals One’s ethical standards are also greatly influenced by values and morals. People who place high value on money and material possessions may not have strong ethical standard regarding behaviors that facilitate the accumulation of that wealth.• Situation Factors People often change their ethics in response to unknown situational factors. An employee, who is threatened with loosing a job that has been held for years, may commit unethical acts in order to save the job.
• Religion One of the oldest sources of ethical inspiration is religion. Different religions exist across the globe. Despite doctrinal differences, the major religion coverage on the believe that ethics is an expression of divine will that reveals the nature of right and wrong in business and others walks of life.• The Legal System Laws are rules of conduct, approves by legislatures, that guide human behavior in any society. They codify ethical expectations and change as new evils emerge. But law cannot cover all ethical expectation of society. Whenever ethics the law codifies, it is binding on businesses. The society expects businesses to abide by the law. Obeying the law is presumed to be ethical behavior
Role In Ethical/Good Governance• Basing decisions on ethical values is good business• The current interpretation of governance requires that the governing members of an organization — establish policies, continuously monitor their implementation, and develop systems and processes of accountability to ensure the organization’s stability and prosperity.• Ethical governance is a key feature of good governance practice.• It is partly predicated upon responsiveness towards people’s needs and demands and the ability to coordinate a democratic balance with efficiency and equity as core principles.
Conclusion• Establishing moral principles means determining the core values which should guide the organization.• The most commonly suggested for consideration: localness, merit, openness, and leanness.• A practice that consistently demonstrates that values and ethics guide decision-making engenders trust among the individuals.• Within an office setting, trust builds morale, leading to increased productivity, which eventually increases profits.