3. 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.
4. • 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 by
ethics?
5. 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.
6. 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.
7. 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.
8. 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.
9. • 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.
10. 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.
11. • 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.
12. • 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
13. 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.
14. 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.
