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2 unit ie& v

  1. 1.  Unit -2 Ethics in religious viewDetermination of individual ethics Legal interpretations Organizational factors Individual Ethics Individual factors Stages of moral development Personal values and personality Family influences Peer (Colleagues or friends) Influences Life experiences
  2. 2. Situational factors Legal interpretationIn secular societies, legal interpretations are based upon modern andoften short-lived values and standards these values and standards areguided by the collection of previous judgments. The result of thisdifferent approach is amazing at one time it was legal and ethical in theUnited States to differentiate against women and minorities in hiringnow positive action laws make it illegal to differentiate against thegroups Organizational factorsThe organization too can affect influence participants behavior. One ofthe key sources of organizational influence is the degree of commitmentof organizational leader to ethical conduct. This commitment can becommunicated through a code of ethics, policy statement, speeches,publications etc. For example the Xerox Corporation got 15 pages ofethical code, one section of which states “We’re honest with ourcustomers. No deals no bribes, no secrets, no fooling around with prices.A kick back in any form kick anybody out. Anybody” Individual factorsIndividual comes to work with different values. Factors affecting one’sethical behavior include1. Stages of moral developmentThe stages of development include the minor stage and adult stage. Thelunatic, children are not responsible for their behavior
  3. 3. 2. Personal values and personalityAn individual values and morals will also influence his or her ethicalstandards. A person who stresses honesty will behave very differentlyfrom another3. Family influencesIndividual start to form ethical standards as children. The individualmust be rewarded for ethical behavior and punished for the unethicalbehavior by the family members4. Peer influencesThe individuals are influenced by the peers with whom they areinteracting daily. The individual should must take only the ethicalbehavior from peer5. Life experienceThe positive and negative key events affect the lives of an individual anddetermine the ethical behavior and beliefs6. Situational factorsThe individuals behave unethically in certain situation because they maysee no way out. Christian Business Ethics Principles• Faith in the Workplace
  4. 4. Which covers the issues: business as missions and (Christian) ethics inbusiness? The issues of Christianity in the workplace and marketplace are bothpassions of mine. I thought these touch points might be a useful breakdown.• Taking Care of ResourcesIn addition, when we care for our possessions, it gives us opportunity to imitatemany other attributes of God, such as wisdom, knowledge, beauty, creativity,love for others, kindness, fairness, independence, freedom, exercise of will,blessedness (or joy), and so forth.”• Greed and materialismWe could use our resource to advance our own pride, or we could becomegreedy and accumulate wealth for its own sake, or we could take wrongfulsecurity in riches. We could use our possessions foolishly and wastefully,abounding in luxury and self-indulgence while we neglect the needs of others.These things are rightly called ‘materialism,’ and they are wrong• Buying and selling goodsWe can imitate God’s attributes each time we buy and sell, if we practicehonesty, faithfulness to our commitments, fairness, and freedom of choice.”• Earning ProfitThe ability to earn a profit it thus the ability to multiply our resources whilehelping other people. It is a wonderful ability that God gave us and it is not evilor morally neutral but fundamentally good. Through it we can reflect God’sattributes of love for others, wisdom, sovereignty, planning for the future, and soforth.”• Money and Financial ResourcesMoney provides many opportunities to glorify God, through investing andexpanding our stewardship and imitating God’s sovereignty and wisdom,
  5. 5. through meeting our own needs and thus imitating God’s independence, throughgiving to others and imitating God’s mercy and love, or through giving to thechurch and to evangelism and thus bringing others into the kingdom• Attitudes of Heart:God knows our hearts, and we glorify him by having attitudes of heart in whichhe delights….And if others work for us, we need to think of them as equal invalue as human beings made in the image of God, and our heart’s desire shouldbe that the job bring them good and not harm• Borrowing and lendingIn this way, borrowing and lending multiply phenomenally our God-givenenjoyment of the material creation, and our potential for being thankful to Godfor all these things and glorifying him through our use of them. In borrowing andlending, we can reflect many of God’s attributes. We can demonstratetrustworthiness and faithful stewardship, honesty, wisdom, love, and mercy.” Hindus Business ethics principle• Principles of Jewish Business Ethics1. Accurate weights and measuresYou shall not falsify measures of length, weight, or capacity. You shallhave an honest balance, an honest weight, and the Mishnah spells out howoften wholesalers and retailers must clean their weights and measures.The prices must be fixed based on the based. These laws are just as applicabletoday. Wholesalers and retailers must check their scales and cash registers on aregular basis, not just because civil law demands it, but also because Jewishlaw requires it.
  6. 6. 2. Monetary cheating“When you sell anything to your neighbor or buy anything from yourneighbor, you shall not mislead one another.”The rabbis of the Talmud used this verse as a basis for a series of specific lawson the subject of monetary cheating. They ruled that if the price charged wasmore than one sixth above the accepted price, the sale is null and void and theseller must return the buyer’s money, while if it was less than a sixth, thetransaction is valid and no money need be returned. Needless to say, theselaws are relevant today. It is permissible for a Jew to make a fair profit; it is notpermissible to price gouge and rob the customer blind.3. Verbal cheatingJust as there is cheating in buying and selling, there is cheating in words.A person should not say to a merchant: ‘How much does this cost?’ if hehas no intention of buying it.”Let us say that Raja goes into a warehouse outlet in order to buy a computer,but he wants a demonstration before he spends $1000. The warehouse outlet isnot equipped for demonstrations. The salesman says to Raja: “Go to the IBMshowroom down the block and ask for a demonstration, then come back hereand buy the computer at our low, low price.” Raja complies and gets a freedemonstration plus a discount.When raja asks for the demonstration at the IBM store, he has absolutely nointention of purchasing the computer there. He merely wants a freedemonstration. The IBM salesman is being deceived. He either loses a realcustomer while waiting on raja, or feels badly when Raja walks out on him aftera half-hour demonstration.4. Stealing a person’s mindWe would call it false packaging or false labeling. We are all familiar with thiskind of ruse. A wholesaler takes an inferior brand of shirt and puts on PierreCardin labels. We all know how used cars are touched up and polished for thesole purpose of overcharging the customer.
  7. 7. 5. Putting a stumbling block before the blindWe would call it “giving someone a bum steer.” This law is based on VayikraChapter “You shall not curse the deaf nor put a stumbling block before the blind,but you shall fear your God, I am the Lord.” Our Sages interpreted this verse in avery broad fashion“You shall not put a stumbling block before the blind” – before someone who isblind in that particular matter… don’t say to your neighbor ‘sell your field and buya donkey,’ when your whole purpose is to deceive him and buy his field.This law can be readily applied to modern situations: A real estate agent shouldnot dupe a young couple into buying a home with structural faults simply in orderto make a fast buck. A stockbroker should not sell his client a bad investmentjust to collect the commission. A salesman should not convince his customer tobuy an expensive item he really has no use for. About such behavior we arewarned: “and you shall fear your God, I am the Lord.”6. Tax avoidanceEighteen hundred years ago, the l established the legal principle that in civilmatters “dina d’malkhuta dina - the law of the land is the law” . In its discussionof this principle, the Talmud specifically includes taxation as a secular law thatmust be followed. This, for example, is the way Maimonides summarizes thislaw “but a tax fixed by the king of 33% or 25% or any fixed sum… a person whoavoids paying such a tax is a transgressor because he is stealing the king’sportion, regardless of whether the king is Jewish or not.”Jewish law requires us to pay our taxes in a scrupulous fashion because in civilmatters “the law of the land is the law.” Principles of Buddhism1. Right viewsAs ignorance with its consequences, namely, wrong views about the self and theworld is the root cause of our suffering it is natural that the first step to moralreformation should be the acquisition of right views or the knowledge about
  8. 8. the four noble truths. It is the knowledge of these truths alone that helps moralreformation and leads us towards the goal.2. Right determinationMere knowledge of the truths would be useless unless one determination toreform life in its light. The moral aspirant is asked to renounce all attachmentto the world, to give up ill feeling towards others and desist from any harm tothem. These three constitute the contents of right determination3.Right speechRight determination should not remain a mere pious wish but must issue forthinto action. Right determination should be able to guide and control our speech.The result would be right speech consisting of abstention from lying, slander,unkind words and merry talk4.Right conductRight determination should end in right action or good conduct and not stopmerely with good speech. Right conduct consists therefore of desisting fromdestroying life, from stealing and from improper gratification of the senses5.Right livingReject bad speech and bad actions, one should earn one’s living by honestmeans. Right living entails that one’s means of living should not be dishonest orotherwise cause suffering to other living beings.6. Right effortWhile a person tries to live a reformed life, through views, resolution, speechaction and living, he is constantly knocked off the right path by old evil ideas thatwere Dee rooted in the mind as also by fresh ones that constantly arise. Oncecannot progress unless he maintains a constant effort to root out old evilthoughts and prevent fresh evil thoughts from arising. Moreover as the mindcannot be kept empty he should constantly endeavor to fill the mind with goodideas and retain such ideas in the mind. This fourfold constant endeavor iscalled right effort7. Right mindfulnessThe necessity of constant vigilance is further stressed in this rule that lays downthat the aspirant should constantly bear in mind the things he has already learnt.
  9. 9. 8. Right concentrationOne who has successfully guided his life in the light of the last seven rules andthereby freed himself form all passions and evil thoughts is fit to enter step bystep into four deeper stages of concentration that gradually take him to the goalof his long and arduous journey- cessation of suffering. He concentrates hispure mind on reasoning and investigation regarding the truths and enjoys the joyand ease born of detachment and pure thought. Principles of Muslim religious in business ethics Freedom of EnterpriseIslam gives complete freedom to economic enterprise. Each individual inan Islamic society enjoys complete freedom in the earning of hislivelihood. He can start, manage and organize any kind of businessenterprise within the limits set by the Islamic. However, freedom does notand must not operate without a sense of responsibility. An individual is free topursue his economic activities provided he respects the code of conductprescribed for the profession, which broadly means choosing things lawful andshunning matters unlawful. Islam, as a matter of principle, prohibits all activitieswhich may cause harm either to the traders or the consumers in the market. Itencourages the prevalence of free market where everyone earns his sustenancewithout government intervention. However, it puts certain restraints in order toeliminate the incidence of injustice and check malpractices and unlawfuloperations Concerning Business TransactionsAn Islamic market is characterized by certain norms that take care of theinterests of both the buyer and the seller. There are a number of rules ofethical discipline in Islamic commercial transactions without which businesscontract would be regarded as lacking perfection in the light of the code of goodmanners, decency and ethical excellence
  10. 10.  Earn lawful EarningsIslam places great emphasis on the code of lawful and unlawful in businesstransactions. It disapproves the wrongful taking of the property. Muslimtrader must be determined to earn only through lawful means Trade through Mutual ConsentMutual consent between the parties is a necessary condition for thevalidity of a business transaction. It, therefore, follows that a sale undercoercion is not acceptable in Islam. A sale transaction is to be regarded aslegal only if it is made through the mutual consent of the parties concerned. Truthfulness in Business TransactionsIslam encourages truthfulness in business transactions and raises the status ofa truthful merchant so much so that he will be at par with the holy warriors andmartyrs, in the Hereafter. The seller and the buyer have the right to keep orreturn the goods as long as they have if both the parties spoke the truth anddescribed the defects and qualities of the goods then they would be blessedin their transaction, and if they told lies or hid something, then the blessings oftheir transaction would be loss Trustworthiness in Business TransactionsTrustworthiness is one of the most important principles of ethical discipline incommercial transactions. It demands sincerity in work and purity of intentionfrom every believer. A true Muslim trader will avoid fraud, dishonesty, and otherdubious means in selling his merchandise. Honouring and fulfilling Business ObligationsIslam attaches great importance to the fulfilment of contract and promises.Islamic teachings require a Muslim trader to keep up his trusts, promises andcontracts. The basic principles of truth, honesty, integrity and trust are involved
  11. 11. in all business dealings. Each business contract should clearly specify thequality, the quantity and the price of the commodity. Thus, in a business contractthe offer and acceptance should be made between the parties concerned on acommodity which is with the buyer and, which he is able to deliver. Anycommodity which is non-existent or not deliverable is not allowed to betransacted. Fair Treatment of WorkersIslam puts certain conditions and restrictions to obviate the chances ofbitterness between the employer and employees. Islam encourages andpromotes the spirit of love and brotherhood between employer andemployees. According to the Islamic teachings it is the religious and moralresponsibility of the employer to take care of the overall welfare and bettermentof his employees. Fair wages, good working conditions, suitable work andexcellent brotherly treatment should be provided to the workers Dealing in Prohibited itemsDealing in unlawful items such as carrion (dead meat), explosive etc are stronglyprohibited in Islam Fixing the PricesIslam grants absolute freedom to traders provided they adhere to the code oflawfulness. It does not, therefore, encourages the practice of price–fixing andleaves the traders to earn the profits from each other within the lawful limits Cheating and Fraud in Business TransactionsIslam strongly disagrees all such practices in business transactions. TheMessenger of Allah has commanded the believers not to indulge in cheating andfraudulent practices in business transactions. Ethical Policy
  12. 12. Identify the impact its actions and policies have on the environment and society it prescribe a range of guidelines and aims that will limit the actions have on the environment and society. The policies of ethics in business• Statement of PolicyThe Code of Business Conduct was prepared to provide Associates, as well asthose with whom we do business and the general public, with a formalstatement of the Company’s commitment to the standards and rules of ethicalbusiness conduct. All Associates are expected to review this Code, and in sodoing, agree to comply with its principles. This Code should be considered thebasis on which each Associate conducts business on behalf of, and is thecornerstone of ethical business practices.A code of conduct cannot cover all circumstances or anticipate every situation.Associates encountering situations not addressed specifically by this Codeshould apply the overall philosophy and ethical standards observed byhonorable people everywhere. Situations that are not covered may be reviewedwith your manager, or as appropriate, senior management of the Company.• Use of Company Funds and AssetsThe assets of the Company are to be used solely for the benefit of theCompany and only for valid business purposes. The assets are much morethan our physical plants, equipment, inventory, company funds, or officesupplies. They include technologies, concepts, business strategies and plans,financial data, and other information about our business. These assets may notbe improperly used to provide personal gain for Associates or others. Associatesmay not transfer any of the assets to other people, except in the ordinary courseof business. On occasion, some assets of the Company no longer needed in thebusiness may be sold to Associates. Such sales must be supported by properlyapproved documentation signed by an appropriate authority other than theAssociate.
  13. 13. • Confidential InformationAs part of a business may have access to confidential information aboutthe customers, suppliers and competitors. Until material information hasbeen made public, this information is not to be disclosed to coworkers who donot have a business need-to-know, nor to non-Associates (including formerAssociates) for any reason except in accordance with established corporateprocedures, which may include confidentiality agreements when appropriate.Associates may not use confidential information obtained on the job for personalfinancial gain through the trading of securities or other personal financialtransactions. "Confidential information" includes information or data onproducts, business strategies, company manuals, material, processes,systems, procedures, etc., as well as all financial data.If there is any question as to whether information is confidential material orwhether it has been publicly disseminated, Associates should take the initiativeto consult with a Company officer or director prior to initiating any securitiestrade, or discussing any significant information with anyone outside theCompany.• Agreement with LawsThe business of the Company must be conducted in compliance with allapplicable laws, rules and regulations at all federal, state and local levels ofgovernment in the United States and at all levels of government in any non-U.S.jurisdiction in which we do business. In some cases, the interpretation of laws,rules and regulations may be difficult, but we have access to legal advice andwill furnish such advice as necessary to enable you to comply with this policy.• Dealing With Suppliers and CustomersObtain and keep our business because of the quality and value of our productsand services, and the respect and confidence we instill in our customers.Conducting business with suppliers and customers can pose ethical or
  14. 14. even legal problems, especially in cross-border transactions where locallaws and practices may be different from those with which we are familiar.The following guidelines are intended to help all Associates to make the "right"decision in potentially difficult situations.• Payments to Agents, Representatives or ConsultantsAgreements with agents, sales representatives, or consultants must be in writingin corporate standard format, and must clearly and accurately set forth theservices to be performed, the basis for earning the commission or fee involved,and the applicable rate or fee. Any such payments must be reasonable inamount, not excessive in light of the practice in the trade, andcommensurate with the value of the services rendered. The agent, salesrepresentative or consultant must be advised that the agreement may bepublicly disclosed and must agree to such public disclosure. In some countries,local laws may prohibit the use of agents or limit the rate of commissions orfees.• Communications with CompetitorsIt is not illegal and may be appropriate for representatives of and its competitorsto meet and talk from time to time. In such conversations, you shouldscrupulously avoid comment on such topics as pricing, production levels,marketing methods, inventories, product development, sales territories andgoals, non-public market studies, and any proprietary or confidential information.Discussions regarding customers must be limited to the exchange of creditinformation.• Information about CompetitorsAs a business that competes in the marketplace, we seek economic knowledgeabout our competitors. However, we will not engage in illegal or improper acts toacquire a competitors trade secrets, customer lists, and information aboutcompany facilities, technical developments or operations. In addition, we will nothire a competitors employees for the purpose of obtaining confidential
  15. 15. information, or urge competitors personnel, customers, or suppliers to discloseconfidential information. The Role of Business Ethics TodayBusiness people and their corporations need to be reminded about their role andresponsibilities. The following issues need special attention today:1. Globalization should mean that all people are considered to comprise onefamily. All human beings should be treated with respect, equality, and fairness.Exploitation of one group by another should stop. There should not be anydivision among people because of their race, color, nationality, gender, or faith.2. The resources of the Earth are not only for us, we share this biosphere withother species, and so we take care not to waste or destroy them.3. We should use the Earths resources with great care and should rememberthat we have a duty to leave this world in a better condition for the generationsto come after us.4. Human beings are one family, although we have our differences. Diversity isnatural and beautiful. We should try to understand other peoples religions andcultures and we should be sensitive to their feelings and emotions.5. The universal golden rule states, "Love for others what you love for yourself."We should try to empower others and work to eradicate poverty, hunger,illiteracy, disease, and unsanitary conditions in the world in order that all peoplecan live in peace and happiness.6. Businesses should promote ethical and moral behavior in their corporations,as well as in the world at large. People involved in business should always be
  16. 16. honest, truthful, and fulfill all promises and commitments. We must eliminatefraud, cheating, and cut-throat competition.7. We should also promote more political freedom, open debates, participatorydemocracies, and representative governments.8. We must encourage and support an educational system that promotesopenness, dialogue and that guard against fanaticism. Our educational systemshould not teach every view in the absolutist terms. Our children should betaught about the multitude of perspectives and one should be open to otherpoints of view. Principles for Positive Business Ethics• Business Ethics are built on Personal EthicsBusiness Ethics are built on Personal Ethics. There is no real separationbetween doing what is right in business and playing fair, telling the truth andbeing ethical in your personal life.• Business Ethics are based on FairnessBusiness Ethics are based on Fairness. Would a dis-interested observer agreethat both sides are being treated fairly are both sides negotiating in good faith.Does each transaction take place on a "level playing field. If so, the basicprinciples of ethics are being met.• Business Ethics require honesty.Honesty refers to wholeness, reliability and consistency. Ethical businesses treatpeople with respect, honesty and integrity. They back up their promises, andthey keep their commitments• Business Ethics require Truth-telling
  17. 17. Business Ethics require Truth-telling. The days when a business could sell adefective product and hide behind the "buyers beware" defense are long gone.You can sell products or services that have limitations, defects or are out-dated,but not as first-class, new merchandise. Truth in advertising is not only the law,business ethics require it.• Business Ethics require DependabilityBusiness Ethics require Dependability. If your company is new, unstable, aboutto be sold, or going out of business, ethics requires that you let clients andcustomers know this. Ethical businesses can be relied upon to be available tosolve problems, answer questions and provide support• Business Ethics require a Business PlanBusiness Ethics require a Business Plan. A companys ethics are built on itsimage of itself and its vision of the future and its role in the community. Businessethics do not happen in a vacuum. The clearer the companys plan for growth,stability, profits and service, the stronger its commitment to ethical businesspractices.• Business Ethics apply internally and externallyBusiness Ethics apply internally and externally. Ethical businesses treat bothcustomers and employees with respect and fairness. Ethics is about respect inthe conference room, negotiating in good faith, keeping promises and meetingobligations to staff, employers, vendors and customers. The scope is universal.• Business Ethics require a ProfitBusiness Ethics require a Profit. Ethical businesses are well-run, well-managed,have effective internal controls, and clear expectations of growth. Ethics is abouthow we live in the present to prepare for the future, and a business withoutprofits (or a plan to create them) is not meeting its ethical obligations to preparefor the future well-being of the company, its employees and customers.• Business Ethics come from the Boss
  18. 18. Business Ethics come from the Boss. Leadership sets the tone, in every area ofa business. Ethics are either central to the way a company functions, or they arenot. The executives and managers either lead the way, or they communicatethat cutting corners, deception and dis-respect are acceptable. Line staff willalways rise, or sink, to the level of performance they see modeled above them.Business ethics starts at the top. 18 Rules of International Business EthicsRule 1: If you strive to understand the values of different cultures, you will findcommon points.Rule 2: if you analyze the facts, you will realize that honesty and reliability benefityou.Rule 3: if you analyze case studies from different perspectives, you will discoverthe benefits of fair play.Rule 4: Respecting your colleagues is the smartest investment you can make.Rule 5: To increase productivity, provide safe and healthy working conditions.Rule 6: To inspire trust, make your performance transparent.Rule 7: Your loyal dissent can lead your institution in the right direction.Rule 8: Downsizing your labor force is only beneficial when you respect eachstakeholder.Rule 9: To establish your brand name, act as a fair competitor.Rule 10: Reduce the gap between the rich and poor by developing a new socialsecurity system.Rule 11: if you act against discrimination, you will increase your productivity andprofitability.Rule 12: If you protect intellectual property, all stakeholders will receive their dueshare.
  19. 19. Rule 13: Ongoing changes in information technology require new forms of loyalty.Rule 14: Your public relations strategy will only secure your reputation if itwitnesses your drive for quality and excellence.Rule 15: Your economic achievements will only stand on firm ground if youdiminish corruption.Rule 16: Long-term success urgently calls you to constantly care for theenvironment.Rule 17: To become a refined player, sharpen your discernment and cultivategood manners.Rule 18: Care for your business by caring for society. Contentious rules of Business ethics OR Theory of ethics OR decision making to mattered equally
  20. 20. Cultural environment.Religion Perceived ethicalLegal system problemPolitical systemProfessional environment Deontological Deontological Action controlInformal norms norms evaluationFormal codesCode enforcement PerceivedIndustry environment alternativesInformal normsFormal codesCode enforcement Probabilities of Ethical Intentions BehaviorOrganizational environment Consequences judgmentsInformal normsFormal codes Desirability ofCode enforcement ConsequencesPersonal characteristics perceived TeleologicalReligion consequences Importance of evaluation ActualValue system stakeholders ConsequencesBelief systemStrength of moral characterCognitive moral developmentEthical sensitivity EthicsThe ethics is a set of moral principles which guides the code of conductand behavior of a human being in his life and in society Determinants of ethics
  21. 21. 1. Value and moralsThe code of conduct is based on the value and morals of a person or a society,which leads to setting of goals and objectives and the effort for achieving theselevels2. Family, schools and religions:The learning of behavior starts in the beginning of one’s life. In the family onelearns what is good or bad, what ought to do or not to do. The parents and familymembers inculcate the value the value, morals and ethical standards among theirchildren by rewarding good behavior and controlling unacceptable manners. Inthe same way, a student learns several behaviors from school and religioussociety. It may be in terms of truthfulness, honesty, sincerity, tolerance3. Peers, colleagues and superiorsA person learns most of the behavior of life form his workplace. This friends, teammembers and superior people promote, rewards and control the differentbehavior which develops a pattern of working4. Social pressureThere is considerer able influence of social pressure on the life style of a person.The different customs, norms, culture, beliefs of a society. Discrimination basedon caste system, different boycotts, prevention for the construction of any suchthing like nuclear power plant, ban on adoption for social reformation restrict thethoughts as well as actions in one’s life5. Experiences from lifeOne learns so many lessons from his own experiences from his own life. Theremay be so many bitter or sweet experiences depending on the ability of a personor expectation. Success or failure teach how to do or act next in an individual life6. Organizational demand and ethical codesThe organizations have their specific guidelines for the managers as well asemployees. The employees as ethics of the organization follow these codes of
  22. 22. behavior. All the top, middle and first level management compromise theirpersonal principles to meet the organizational demand the corporate goals andobjectives exert considerable pressure of the executive to change their ethicalviews7. LegislationGovt, legislation, rules and regulations guide the code of conduct aboutstandards, social responsibilities, exploitation, corruption in public life, productsafety, working condition; statutory warning etc.these guidelines helps indetermining what are acceptable standards and practices8. Threatened situationsThere are several situations in person’s life where he or she faces several threats.It may be loss of job, social boycott, critical disease, loss of wealth etc whichbounds human behavior and sets the new path of conduct for personal andprofessional life Objectives of ethics1. To set the standards of personal life and norms of behavior2. To define the working pattern of professional life3. To set a standard for do’s and don’ts4. To develop a value system5. To create strong work culture6. To set the mission of life7. To inculcate good behavior in children8. To improve the social life9. To balance the need and wishes of human being10. To prevent the social evils
  23. 23.  Ethics in teachingTeaching ethics means to teach the ethics of business in the school or collegesor in university Principles of Ethical education1. Content CompetenceA university teacher maintains a high level of subject matter knowledge andensures that course content is current, accurate, representative, and appropriateto the position of the course within the students program of study.2.Academic Competence - A pedagogically competent teacher communicatesthe objectives of the course to students, is aware of alternative instructionalmethods or strategies, and selects methods of instruction that are effective inhelping students to achieve the course objectives.3. Dealing with Sensitive Topics - Topics those students are likely to findsensitive or discomforting are dealt with in an open, honest, and positive way.4. Student Development - The overriding responsibility of the teacher is tocontribute to the intellect development of the student, at least in the context ofthe teachers own area of expertise, and to avoid actions such as exploitationand discrimination that detract from student development.5. Dual Relationships with Students - To avoid conflict of interest, a teacherdoes not enter into dual-role relationships with students that are likely to detractfrom student development or lead to actual or perceived favoritism on the part ofthe teacher.6. Confidentiality - Student grades, attendance records, and privatecommunications are treated as confidential materials and are released only with
  24. 24. student consent, for legitimate academic purposes, or if there are reasonablegrounds for believing that releasing such information will be beneficial to thestudent or will prevent harm to others.7. Respect for Colleagues - A university teacher respects the dignity of her orhis colleagues and works cooperatively with colleagues in the interest offostering student development.8. Valid Assessment of Students - Given the importance of estimation ofstudent performance in university teaching and in students lives and careers,instructors are responsible for taking adequate steps to ensure that assessmentof students is valid, open, fair, and congruent with course objectives.9. Respect for Institution - In the interest of student development, a universityteacher is aware of and respects the educational goals, policies, and standardsof the institution in which he or she teaches.Visit the Association for Practical and Professional Ethics Web site to learnmore about ethics in college teaching Regulating ethics1. Market systemsMost of the recent ethical writings on integrating greed, Pleasure, efficiency,privacy and free choice rely on the existence of a market system considered tobe a profoundly ethical instrument. Its ethical use has been accepted by manyancient cultures including India but with less enthusiasm and greater constraints.Market system can be viewed as value neutral as they can only be vehicles fortransactions. However the relationships they generate have strong ethicalovertones and therefore the system can be treated as value in ethics.2.Respect for processes of social adaptation
  25. 25. Respect for family and other institutions for socializing individuals in their ethicalevolution is now understood as an important ethical value equally valid forbusiness. In fact Alacrity foundation of tamilnadu has made it a motto in theadvertisements.3. Respect for lawInstitutionalizing ethics through laws that can be enforced is a process as old ascivilization itself. Hosmer (1995) accords high value to this process. ThomasHobbes and john Locke in England and kautilya, Thiruvalluvar and Manu in Indiahave also been its proponents. The overzealous concern for the value ofprotecting the institutional means should not supersede the basic need forensuring that the outcomes are by themselves ethical4. Respect for professional codesA major development in the ethical movement in the US is the mobilization ofprofessions through professional councils who develop professional codeswhich make it easier to reach across to organization and provide acountervailing force to greed. This path of ethical control through professionalguilds was quite common in ancient India. Professional councils and codes haveplayed a major role in the ethical revival in the west.5. Organizations as vehicles of ethical synergyLarge organizations that were not extensions of the state apparatus arerelatively new to civilization. An emerging ethical value in business is that theymust synergies ethics such that their actions are the summation of individualethical values and not of ethical disvalues. The respect for ethical frameworksand consequently becomes an ethical value by itself6. Respect for rituals and symbolsThe last of the values is an enigma. A growing number of people now feel thatrituals and symbols of every culture are strong emotional and psychologicalsupports for ethical sustenance. There are strong ancient Indian traditions bothfor and against this
  26. 26.  Principles of business ethics1. Stimulating morale thoughts2. Developing problem solving skill3. Creating a sense of moral commitment4. Recognizing the ethical problem5. Reducing hesitation Code of conduct in ethical educationThe ethical education is given in the following things1. TruthfulnessThe truthfulness is the corner stone of all values. A business managerhonorably straight. It is the characteristic that distinguishes a professionalmanager from mercenary2. FairnessA manager should look at and treat all aspects of an issue in a fair andbalanced manner.3. Responsiveness to the public interestThough a manager is paid to serve the interest of the stock holders of thecompany, public interest is no less important. In fact mangers should consider itas of paramount importance, if they have to successful in their tasks4. Accountability
  27. 27. Accountability is one of the basic characteristics of a good business managersare responsible for all their actions and are accountability to all thestakeholders- stockholders, creditors, employees, consumers, government andthe society at large5. HonestyA cardinal ethical value that a manager should possess is this quality.Managers should be fair, just and sincere both in character and behavior. Theyshould not indulge in cheating or stealing and should be free of deceit anduntruthfulness6. ClearnessGood business managers should be clear and set standards for others tofollow. They should be frank and open. Their actions should be easilydiscussed and understood by others Benefits of learning Business ethicsThe benefits of learning business ethics1. Aware of the moral principlesYoung mangers should understand and be aware of the reasons that underliemoral principles. These are helpful in fostering ability to reason when applyingthese principles it is vital part of ensuring compliance by managers withcompany standards for conduct4. Determine ethical issuesKnowledge of business ethics will help mangers in determining the ethicalissues5. Responsible tone for the organizationKnowledge will help mangers in setting highly responsible tone for theorganization in individual judgments’ and decisions whether ethical or not
  28. 28. 6. Provide hard-working managersThe study of business ethics will provide hard working managers with morallyresponsible approach to business. The need for responsible managers is acuteas questions of business ethics cannot wholly be determined by law orgovernment regulations but means remain the concern of individual manager.7. To realize their social responsibilityIt helps to realize their social responsibility. Many organizations find itwise to go beyond their primary mission and take into account needs ofthe community. Business ethics makes managers more accountable forsocial responsibility6. High level of honesty in managersThe study of business ethics inculcates high level of honesty inmanagers. Goal of ethics education to his share knowledge, build skillsand develop minds. It helps to gain clarity and insight into businessethics and avoid business misconduct in organizations. The study ofbusiness ethics helps to arrive a decision that he feels to be right andproper .It facilitates individual to understand their moral standards andethical norms, beliefs and values so that they can decide when facedwith business dilemma Types of valuesValues can be divided into two classesInstrumental valuesAre those values regarding the way we approach end states Theserelate to means for achieving desired results.Assertiveness Dependability
  29. 29. Hard work ObedienceOpen mindedness Self sufficientTruthfulness Good mannersTerminal values refer to beliefs about ultimate good or end results while instrumentalvalues refers to beliefs about desirable modes of behavior that areinstrumental to the attainment of ultimate of goals.Satisfaction Peace and harmonyPride in accomplishment ProsperityRecognition SecurityTheoretical valuesInterest in the discovery of truth through reasoning and systematicthinkingEconomic valuesInterest is usefulness and partiality including the accumulation ofwealthSocial valuesInterest in gaining power and human relationshipsPolitical valuesInterest in gaining power and influencing other peopleReligious values
  30. 30. Interest in unity and understanding the cosmos as a wholeThe following list shows several instrumental and terminal values Value formulation1. Genetic sourceA significant portion of our value is genetically determined2. Environmental sourceEnvironmental factors like natural environment, culture, friends circle,educational institutions, and religious faith help in formulation ofvalues3. Influence of superiorsParents, elders, teachers, religious leaders, all such persons help us inthe formulation of our values4. MediaNews papers, journals, magazines, film, radio, cinema go long way toformulate our values5. Value forming institutionsThe development of a human life and society is based on values. Thereare various institutions in the society which inculcates values. There arefour major institutions which provide the basic sources of values: -family, school, state and religion. These institutions teach theindividuals what is good or bad for them. Good behavior is rewarded
  31. 31. and bad behavior is punished. It develops and inculcates a particularbehavior6. Organizational valuesThe organization where an individual works affects the behavior andshape value in working life. The different organizations have their ownvalue system and behavioral pattern which shapes human life7. Peers and colleaguesAn individual learns different behavior from his peers and colleague. Ina work group an individual learn the group’s norms and values.Organization or group value strengthen and protect the membershipstatus in that group8. Work and careerThe model of work in an individual career includes the task orresponsibilities associated with a particular job in a period of time. Itfollows a related progressive of job career over a period of time. Relevance of values in management:• worth of values in managementOur effectiveness at work is tied to exercising intrinsic human valuesi.e., moral or ethical values. These human values support established
  32. 32. business values such as service, communication, excellence, credibility,innovation, creativity and coordination.The human values help in self development. Managerial function suchas direction, control, supervision and communication, integration andcoordination are much easier. The human values help goodinterpersonal interactions. They reduce conflicts and disputes. They arepart and parcel of achieving accelerated process of improvement andcustomer’s workers and citizen satisfaction. They enhance reputationand good will of the organizationIn the view of management and organizational work we can say that:• Value system influences choice of organizational goals and strategies adopted to achieve those goals• Value influences the way in which an individual looks at other individual and its group of individuals that is interpersonal relationship. Value becomes basis of such interpersonal interactions.• Individuals judge organizational success as well as its achievement on the basis of their value system• Individuals set limit for the determination of ethical behavior for themselves as well as for others• Values determine the extent to which individuals accept organizational pressure and goals.• Values helps in decision making
  33. 33. It helps in better decision making because respect for moral principles lfrom a management eye view to take all aspects into consideration,both the economical aspects and social and ethical aspects• Essential for long term success of organizationAn organization not responding the values and ethics can survive onlyfor a short period but not for long period. An organization is required tobuild up a strong image for long term survival• Value creates credibility among share holdersIf values are properly followed it would create a good image ofcompany and it would help in attracting an immediate response ofshareholders• Value creates credibility (reliability) with the publicA company having the ethical and social value will be honored andrespected by even those who have no knowledge of its actual working.There will be an intuitive prejudice in favor of its product, since peoplebelieve the company gives for moneySome additional Relevance of values in management1. Managerial effectiveness based on value based management can solveproblems irritating the economy in all countries. Such management offershuman welfare, nature welfare the quality of life and quality of work.2. Selfless action purifies our mind/ intellect. Purer mind concentrate,contemplate and mediate to approach perfection i.e., pure consciousness3. Self surrender to god and emotionally we can reach the goal of pureconsciousness
  34. 34. 4. Value based management provide proper use of valuable human and materialresources offered by the mother earth5. Value based management promotes work culture, self discipline andconsciousness among the employees6. Value based management helps in bringing the human agreement andhappiness in the organization7. Value based management cares for its people. People are protected fromunwanted stresses and strains, unrest and adverse organizational work life8. Value based management reduces the conflict and disputes Factors that guide managers to take ethical decisions1. A man’s personal code of ethics2. The company’s formal policy3. The ethical climate in the industry4. Government regulations5. Behavior of mangers with the society6. The organization becomes larger their standards of ethical conduct tend to rise because of greater public exposure/ image Teaching ethics to management students:• Management knowledge
  35. 35. Management knowledge is like physical body to which soul is provided byethics. Without ethics knowledge of management is just like meals withoutsalt and the body without soul.• Essential power of differentiate right and wrongKnowledge of ethics will equip students of management with an essentialpower of discriminate right and wrong. It will make them wisdom decisionmakers or leaders. They will set good examples through their ethical decisions,conduct and behavior before their subordinates. This will improve effectivenessof individuals, departments and organization as a whole.• Serve as standard on the basis of which quality of managementEthics serve as standard on the basis of which quality of management. Goodmanagement or mismanagement can be determined, quality of decisions can beexamined and quality of individual conduct can be examined. Mis conduct canbe penalized. Good management good decisions and good conduct may beappreciated and rewarded• Key issue in corporate governanceEthics are the key issue in corporate governance debate. Withoutatmanushashan there can’t be good corporate governance and without thatthere can’t be good administration.• Solid foundation to corporate laws Ethics provide solid foundation to corporate laws, code of conduct; corporatesocial responsibility etc. there is corporate ethics committee at board level aspart of corporate governance. Socially responsible corporate entity can beconceived on the basis of ethical framework• Boundaries of corporate behavior and conductEthics define boundaries of corporate behavior and conduct. What will amountto compliance with corporate laws. What will amount to corporate misconduct
  36. 36. are the critical issues which managers can better understand through knowledgeof ethics• Ethics determine human values General ethics determine human values. A manager committed to ethics willhave due respect for human values or human rights. He will never think aboutexploitation of anybody or showing disrespect to others Importance of teaching ethicsThere is a study carried out a Harvard business school by three of itsfaculties. One of the researchers tells us of the response of the students tothe required ethics module at H.B.S1.One student says that earlier he didn’t consider ethical issues asimportant ones but after taking course on ethics, he has become aware ofthe need to ask the question of what is going to be the impact of thisdecision on the people that live in that area and environment2. Another student says that the difference such as course has made is inlevel of analysis. When you talk about whom are all people involved3. Ethical consciousness and commitment can continue to undergotransformation at least throughout formal education has to be thefoundation of any program of teaching ethics4. An overemphasis of SWM (shareholders wealth Maximization)objectives of managers on a mis understanding of its true implication andtheoretical foundation means that if these are misunderstood then it canlead to dangerous or disastrous consequences for consumer’s employees inthe general population. So teaching ethics is extremely necessary in presentscenario Barriers to teaching ethics
  37. 37. 1. According to some research in the H.B school some faculties feared thatthey would be asked to teach ethics as a distinct subject2. Some faculties feared that teaching a course on ethics would bring veryfew professional rewards3. Many faculties felt that integration of ethics into the class soon canthreaten their self confidence who identify strongly with their role asexperts in their professional field without giving or having the sameconfidence on ethics issues4. Some teachers as well as some students felt that they need to pay someattention to ethics in their own lives before they can talk it in the classroom5. Some faculties raised a number of teaching questions like how should afaculty respond to a student’s behavior that appears very much unethical Ethical as a tool for moral training in the organizationThe ethics program is essentially useless unless all staff members aretrained about what it is how it works and their roles in it. The nature of thesystem may invite suspicion if not handled openly and honestly. In additionno matter how fair and up to date is a set of policies; the legal system willoften interpret employee behavior (rather than written policies) as de factopolicy. Therefore all staff must be aware of and act in full accordance withpolicies and procedures (this is true, whether policies and procedures arefor ethics programs or personnel management). This full accordancerequires training about policies and procedures1. Orientation of new employees to the organization’s ethics program during new employee orientation2. Review the ethics management program in management training experiences3. Involving staff in review of policies (ethics and personnel policies) is strong ethics training
  38. 38. 4. Involving staff in review of policies ( ethics and personnel policies) is strong ethics training5. One of the strongest forms of ethics training is practice in resolving complex ethical dilemmas. Have staff use any of the three ethical dilemma resolution methods in this guidebook and apply them to any of the real to life ethical dilemmas also listed in this guidebook6. Include ethical performance as a dimension in performance appraisals7. The best ethics trainer; Bill goodman chief human resource officer at Aveda describes, we start our training even in our job ads, but the best trainer is the behavior of our leaders8. Give all staff a copy of this free complete guide to ethics managemet Values in managementValuesA value is a belief on which a person acts by preference. A value is aperspectives belief. The word values means the worth, merit, usefulness orimportance of a thing. Everyone does not hold the same value. The value of thething varies from person to person and it is more relative concept few of theTrans culture values come to us by our relatives is not due to the culture wefollow but due to the humanity, mankind and soft corner of an individual Cultural values in management1. Credibility among stakeholdersThese are individuals which are directly or indirectly affect by decision of theorganization. Stakeholders, customers, suppliers, employers, shareholders etc.2. Corresponds to human valuesManagers know that his decisions can affect the thousands of individual. So thereshould not be any place for biasness. One should not think of individual interest.
  39. 39. We should help and cooperate everybody without any favor. Opportunities andresponsibilities should be same for all employees at same level.3. Helpful in decision makingAnother point of great importance is the Trans cultural values help the managersmake better decisions. I.e. the decisions which are in the interest of public theiremployees and the company’s own long term good. This is so because respectfor ethics will force a management to take various aspects – economic, socialand ethical in decision making4. Profit earningA company which is inspired by cultural values is also a profitable one. Valuedriven companies are sure to be successful in the long run, though in the shortrun, they may lose money5. Management credibility with employeesCultural values are supported to be common language to bring leaderships andits people together organization values when perceived by employees asgenuine create common goals, values and culture6. Clear objectiveThe organization should make clear the objective of the company so that even alayman can understand it. If the objectives are not clear then the lowermanagement cannot achieve these objectives efficiently. It can affect theproductivity of the employees at operational level. Clear objectives are helpful inreducing disputes and conflicts7. Self disciplineIt is important to control one’s own mind before controlling others. A mangershould take decisions with cool mind and self discipline. A manger should beproperly disciplined which includes arriving on the time in the organization,
  40. 40. optimum use of working hours, Not wasting other’s time. If a manger expectsdiscipline form others, he must demonstrate first. Features of values:1. Values are the core of personality and are a powerful force affecting behavior2. Values contain judgmental elementals3. Values are fixed they change over time4. Many values are relatively stable and enduring. This is because of the way ofwhich they are originally learned5. We have a hierarchy of values that form our value system. But everyone doesnot hold the same value6. Values has both comfortable and strength Values for managers1. Fearlessness2. Purity of mind and hearts3. Integration of thoughts4. Inspired deals and vision5. Creativity6. Understanding7. Love and affection8. Patience
  41. 41. 9. Friendship with all10. Spirit of sacrifice11. Non violence12. Harmlessness13. Gentleness Styles of values1. PerformerBe conscientious and live by the ethical values and principles. Treat others withfairness and objectivity. Be fair and precise at improving products or services.2. HelperAct as a team player and support others and make them feel welcome in group.Be of service to clients and customers3. ProducerRealistic with resources and people. Delegate responsibility and divide workcomponents into small manageable teams.4. AnimatorBe positive and flexible. Adapt to an ever new and changing work situation. Giveothers the freedom to grow and build positive morale among co workers5. ExpressionistVery clear with their feelings and emotions. Constantly remain in which withcoworkers feeling quotient. Create the feeling of being valued being valuedamong the employees. Respect every person as a unique individual.
  42. 42.  Features of values in global change1. Managerial decision making requires an inter play of both reasoned and holistic facilities2. Key to cooperation and team work3. The creative energies of human being are derived from global changes4. The effective leadership skill needs purity, strong living, selfishness terms5. The effectiveness of such decisions depends critically on the purity of the decision maker Needs for values in global change1. Value creation for work forceAn organization culture v should create a sense of commitment in theworkforce. They must love their job and should be dedicated to their work.For this dedication a personal should feel as a member of family wherethere is no bounding but freedom and opportunity to develop him as wellas the organization. In consideration of this view the management shouldtake some steps as• Taking the initiative to implement a meaningful that address personal basis and values that foster harassment of individuals1. LiberalizationIn the new economy there have been much more liberal policies. It meansremoving all necessary controls and restrictions. It means removing allnecessary controls and restrictions like permits, license, quotas etc imposed bythe government. Earlier because was required to establish majority of theindustries but now the license requirement has been reduced. The above controland restrictions resulted ina) Consumption delays
  43. 43. b) Lossesc) High cost economyLiberalization resulted in industrial sector reforms, tax reforms, foreign exchangereforms, tradepolicy reforms all of which resulted in boosting the Indian economy2. PrivatizationIt means transfer of functions, activity or organization form public to privatesector. It indicate the beginning of the new culture in the society in whichmarketization, competition, efficiency become the guiding principle in economicdecision making3. GlobalizationIt refers to entrance of private /government players in the foreign markets orindependence among countries with regard to capital, goods, and technologyrestriction on the extension of business outside the geographical boundaries ofthe country4. Participative style of managementThis is followed by the organization in which all the employees are invited in themeeting for suggestions in order to improve the productivity of the organization5. CompetitionEarlier their used to be monopoly but not competition has become intense dueto privatization and globalization. Perfect competition exists in the market. Thereis lots of brand available in the market in every product category.6. DecentralizationNow a day to make the implementation process faster, authority of decisionmaking is transferred to subordinates. They know the problem and solution well.Responsibility is also transferred to subordinates
  44. 44. 7. Conservation of natural resourcesIn today’s scenario companies are using natural resources without thinking offuture requirements. The companies are not socially responsible towards naturalresources. The concept of sustainable development should be followed andoptimum utilization of resources is the need of the day