The document discusses several principles of ethics from different religious perspectives including Christianity, Hinduism, Buddhism, Judaism, and Islam. It also discusses factors that influence individual ethics such as moral development, personal values, family/peer influences, and life experiences. Finally, it outlines some key components of an organizational ethics policy including a statement of policy, appropriate use of company funds/assets, and identifying environmental/societal impacts.

1.  Unit -2
 Ethics in religious view
Determination 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. Situational factors
 Legal interpretation
In secular societies, legal interpretations are based upon modern and
often short-lived values and standards these values and standards are
guided by the collection of previous judgments. The result of this
different approach is amazing at one time it was legal and ethical in the
United States to differentiate against women and minorities in hiring
now positive action laws make it illegal to differentiate against the
groups
 Organizational factors
The organization too can affect influence participants behavior. One of
the key sources of organizational influence is the degree of commitment
of organizational leader to ethical conduct. This commitment can be
communicated through a code of ethics, policy statement, speeches,
publications etc. For example the Xerox Corporation got 15 pages of
ethical code, one section of which states “We’re honest with our
customers. No deals no bribes, no secrets, no fooling around with prices.
A kick back in any form kick anybody out. Anybody”
 Individual factors
Individual comes to work with different values. Factors affecting one’s
ethical behavior include
1. Stages of moral development
The stages of development include the minor stage and adult stage. The
lunatic, children are not responsible for their behavior

3. 2. Personal values and personality
An individual values and morals will also influence his or her ethical
standards. A person who stresses honesty will behave very differently
from another
3. Family influences
Individual start to form ethical standards as children. The individual
must be rewarded for ethical behavior and punished for the unethical
behavior by the family members
4. Peer influences
The individuals are influenced by the peers with whom they are
interacting daily. The individual should must take only the ethical
behavior from peer
5. Life experience
The positive and negative key events affect the lives of an individual and
determine the ethical behavior and beliefs
6. Situational factors
The individuals behave unethically in certain situation because they may
see no way out.
 Christian Business Ethics Principles
• Faith in the Workplace

4. Which covers the issues: business as missions and (Christian) ethics in
business? The issues of Christianity in the workplace and marketplace are both
passions of mine. I thought these touch points might be a useful breakdown.
• Taking Care of Resources
In addition, when we care for our possessions, it gives us opportunity to imitate
many 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 materialism
We could use our resource to advance our own pride, or we could become
greedy and accumulate wealth for its own sake, or we could take wrongful
security 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 goods
We can imitate God’s attributes each time we buy and sell, if we practice
honesty, faithfulness to our commitments, fairness, and freedom of choice.”
• Earning Profit
The ability to earn a profit it thus the ability to multiply our resources while
helping other people. It is a wonderful ability that God gave us and it is not evil
or morally neutral but fundamentally good. Through it we can reflect God’s
attributes of love for others, wisdom, sovereignty, planning for the future, and so
forth.”
• Money and Financial Resources
Money provides many opportunities to glorify God, through investing and
expanding our stewardship and imitating God’s sovereignty and wisdom,

5. through meeting our own needs and thus imitating God’s independence, through
giving to others and imitating God’s mercy and love, or through giving to the
church 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 which
he delights….And if others work for us, we need to think of them as equal in
value as human beings made in the image of God, and our heart’s desire should
be that the job bring them good and not harm
• Borrowing and lending
In this way, borrowing and lending multiply phenomenally our God-given
enjoyment of the material creation, and our potential for being thankful to God
for all these things and glorifying him through our use of them. In borrowing and
lending, we can reflect many of God’s attributes. We can demonstrate
trustworthiness and faithful stewardship, honesty, wisdom, love, and mercy.”
 Hindus Business ethics principle
• Principles of Jewish Business Ethics
1. Accurate weights and measures
You shall not falsify measures of length, weight, or capacity. You shall
have an honest balance, an honest weight, and the Mishnah spells out how
often wholesalers and retailers must clean their weights and measures.
The prices must be fixed based on the based. These laws are just as applicable
today. Wholesalers and retailers must check their scales and cash registers on a
regular basis, not just because civil law demands it, but also because Jewish
law requires it.

6. 2. Monetary cheating
“When you sell anything to your neighbor or buy anything from your
neighbor, you shall not mislead one another.”
The rabbis of the Talmud used this verse as a basis for a series of specific laws
on the subject of monetary cheating. They ruled that if the price charged was
more than one sixth above the accepted price, the sale is null and void and the
seller must return the buyer’s money, while if it was less than a sixth, the
transaction is valid and no money need be returned. Needless to say, these
laws are relevant today. It is permissible for a Jew to make a fair profit; it is not
permissible to price gouge and rob the customer blind.
3. Verbal cheating
Just 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 he
has 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 is
not equipped for demonstrations. The salesman says to Raja: “Go to the IBM
showroom down the block and ask for a demonstration, then come back here
and buy the computer at our low, low price.” Raja complies and gets a free
demonstration plus a discount.
When raja asks for the demonstration at the IBM store, he has absolutely no
intention of purchasing the computer there. He merely wants a free
demonstration. The IBM salesman is being deceived. He either loses a real
customer while waiting on raja, or feels badly when Raja walks out on him after
a half-hour demonstration.
4. Stealing a person’s mind
We would call it false packaging or false labeling. We are all familiar with this
kind of ruse. A wholesaler takes an inferior brand of shirt and puts on Pierre
Cardin labels. We all know how used cars are touched up and polished for the
sole purpose of overcharging the customer.

7. 5. Putting a stumbling block before the blind
We would call it “giving someone a bum steer.” This law is based on Vayikra
Chapter “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 a
very broad fashion
“You shall not put a stumbling block before the blind” – before someone who is
blind in that particular matter… don’t say to your neighbor ‘sell your field and buy
a 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 should
not dupe a young couple into buying a home with structural faults simply in order
to make a fast buck. A stockbroker should not sell his client a bad investment
just to collect the commission. A salesman should not convince his customer to
buy an expensive item he really has no use for. About such behavior we are
warned: “and you shall fear your God, I am the Lord.”
6. Tax avoidance
Eighteen hundred years ago, the l established the legal principle that in civil
matters “dina d’malkhuta dina - the law of the land is the law” . In its discussion
of this principle, the Talmud specifically includes taxation as a secular law that
must be followed. This, for example, is the way Maimonides summarizes this
law “but a tax fixed by the king of 33% or 25% or any fixed sum… a person who
avoids paying such a tax is a transgressor because he is stealing the king’s
portion, regardless of whether the king is Jewish or not.”
Jewish law requires us to pay our taxes in a scrupulous fashion because in civil
matters “the law of the land is the law.”
 Principles of Buddhism
1. Right views
As ignorance with its consequences, namely, wrong views about the self and the
world is the root cause of our suffering it is natural that the first step to moral
reformation should be the acquisition of right views or the knowledge about

8. the four noble truths. It is the knowledge of these truths alone that helps moral
reformation and leads us towards the goal.
2. Right determination
Mere knowledge of the truths would be useless unless one determination to
reform life in its light. The moral aspirant is asked to renounce all attachment
to the world, to give up ill feeling towards others and desist from any harm to
them. These three constitute the contents of right determination
3.Right speech
Right determination should not remain a mere pious wish but must issue forth
into 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 talk
4.Right conduct
Right determination should end in right action or good conduct and not stop
merely with good speech. Right conduct consists therefore of desisting from
destroying life, from stealing and from improper gratification of the senses
5.Right living
Reject bad speech and bad actions, one should earn one’s living by honest
means. Right living entails that one’s means of living should not be dishonest or
otherwise cause suffering to other living beings.
6. Right effort
While a person tries to live a reformed life, through views, resolution, speech
action and living, he is constantly knocked off the right path by old evil ideas that
were Dee rooted in the mind as also by fresh ones that constantly arise. Once
cannot progress unless he maintains a constant effort to root out old evil
thoughts and prevent fresh evil thoughts from arising. Moreover as the mind
cannot be kept empty he should constantly endeavor to fill the mind with good
ideas and retain such ideas in the mind. This fourfold constant endeavor is
called right effort
7. Right mindfulness
The necessity of constant vigilance is further stressed in this rule that lays down
that the aspirant should constantly bear in mind the things he has already learnt.

9. 8. Right concentration
One who has successfully guided his life in the light of the last seven rules and
thereby freed himself form all passions and evil thoughts is fit to enter step by
step into four deeper stages of concentration that gradually take him to the goal
of his long and arduous journey- cessation of suffering. He concentrates his
pure mind on reasoning and investigation regarding the truths and enjoys the joy
and ease born of detachment and pure thought.
 Principles of Muslim religious in business ethics
 Freedom of Enterprise
Islam gives complete freedom to economic enterprise. Each individual in
an Islamic society enjoys complete freedom in the earning of his
livelihood. He can start, manage and organize any kind of business
enterprise within the limits set by the Islamic. However, freedom does not
and must not operate without a sense of responsibility. An individual is free to
pursue his economic activities provided he respects the code of conduct
prescribed for the profession, which broadly means choosing things lawful and
shunning matters unlawful. Islam, as a matter of principle, prohibits all activities
which may cause harm either to the traders or the consumers in the market. It
encourages the prevalence of free market where everyone earns his sustenance
without government intervention. However, it puts certain restraints in order to
eliminate the incidence of injustice and check malpractices and unlawful
operations
 Concerning Business Transactions
An Islamic market is characterized by certain norms that take care of the
interests of both the buyer and the seller. There are a number of rules of
ethical discipline in Islamic commercial transactions without which business
contract would be regarded as lacking perfection in the light of the code of good
manners, decency and ethical excellence

10.  Earn lawful Earnings
Islam places great emphasis on the code of lawful and unlawful in business
transactions. It disapproves the wrongful taking of the property. Muslim
trader must be determined to earn only through lawful means
 Trade through Mutual Consent
Mutual consent between the parties is a necessary condition for the
validity of a business transaction. It, therefore, follows that a sale under
coercion is not acceptable in Islam. A sale transaction is to be regarded as
legal only if it is made through the mutual consent of the parties concerned.
 Truthfulness in Business Transactions
Islam encourages truthfulness in business transactions and raises the status of
a truthful merchant so much so that he will be at par with the holy warriors and
martyrs, in the Hereafter. The seller and the buyer have the right to keep or
return the goods as long as they have if both the parties spoke the truth and
described the defects and qualities of the goods then they would be blessed
in their transaction, and if they told lies or hid something, then the blessings of
their transaction would be loss
 Trustworthiness in Business Transactions
Trustworthiness is one of the most important principles of ethical discipline in
commercial transactions. It demands sincerity in work and purity of intention
from every believer. A true Muslim trader will avoid fraud, dishonesty, and other
dubious means in selling his merchandise.
 Honouring and fulfilling Business Obligations
Islam attaches great importance to the fulfilment of contract and promises.
Islamic teachings require a Muslim trader to keep up his trusts, promises and
contracts. The basic principles of truth, honesty, integrity and trust are involved

11. in all business dealings. Each business contract should clearly specify the
quality, the quantity and the price of the commodity. Thus, in a business contract
the offer and acceptance should be made between the parties concerned on a
commodity which is with the buyer and, which he is able to deliver. Any
commodity which is non-existent or not deliverable is not allowed to be
transacted.
 Fair Treatment of Workers
Islam puts certain conditions and restrictions to obviate the chances of
bitterness between the employer and employees. Islam encourages and
promotes the spirit of love and brotherhood between employer and
employees. According to the Islamic teachings it is the religious and moral
responsibility of the employer to take care of the overall welfare and betterment
of his employees. Fair wages, good working conditions, suitable work and
excellent brotherly treatment should be provided to the workers
 Dealing in Prohibited items
Dealing in unlawful items such as carrion (dead meat), explosive etc are strongly
prohibited in Islam
 Fixing the Prices
Islam grants absolute freedom to traders provided they adhere to the code of
lawfulness. It does not, therefore, encourages the practice of price–fixing and
leaves the traders to earn the profits from each other within the lawful limits
 Cheating and Fraud in Business Transactions
Islam strongly disagrees all such practices in business transactions. The
Messenger of Allah has commanded the believers not to indulge in cheating and
fraudulent practices in business transactions.
 Ethical Policy

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 Policy
The Code of Business Conduct was prepared to provide Associates, as well as
those with whom we do business and the general public, with a formal
statement of the Company’s commitment to the standards and rules of ethical
business conduct. All Associates are expected to review this Code, and in so
doing, agree to comply with its principles. This Code should be considered the
basis on which each Associate conducts business on behalf of, and is the
cornerstone of ethical business practices.
A code of conduct cannot cover all circumstances or anticipate every situation.
Associates encountering situations not addressed specifically by this Code
should apply the overall philosophy and ethical standards observed by
honorable people everywhere. Situations that are not covered may be reviewed
with your manager, or as appropriate, senior management of the Company.
• Use of Company Funds and Assets
The assets of the Company are to be used solely for the benefit of the
Company and only for valid business purposes. The assets are much more
than our physical plants, equipment, inventory, company funds, or office
supplies. They include technologies, concepts, business strategies and plans,
financial data, and other information about our business. These assets may not
be improperly used to provide personal gain for Associates or others. Associates
may not transfer any of the assets to other people, except in the ordinary course
of business. On occasion, some assets of the Company no longer needed in the
business may be sold to Associates. Such sales must be supported by properly
approved documentation signed by an appropriate authority other than the
Associate.

13. • Confidential Information
As part of a business may have access to confidential information about
the customers, suppliers and competitors. Until material information has
been made public, this information is not to be disclosed to coworkers who do
not have a business need-to-know, nor to non-Associates (including former
Associates) for any reason except in accordance with established corporate
procedures, which may include confidentiality agreements when appropriate.
Associates may not use confidential information obtained on the job for personal
financial gain through the trading of securities or other personal financial
transactions. "Confidential information" includes information or data on
products, 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 or
whether it has been publicly disseminated, Associates should take the initiative
to consult with a Company officer or director prior to initiating any securities
trade, or discussing any significant information with anyone outside the
Company.
• Agreement with Laws
The business of the Company must be conducted in compliance with all
applicable laws, rules and regulations at all federal, state and local levels of
government 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 and
will furnish such advice as necessary to enable you to comply with this policy.
• Dealing With Suppliers and Customers
Obtain and keep our business because of the quality and value of our products
and services, and the respect and confidence we instill in our customers.
Conducting business with suppliers and customers can pose ethical or

14. even legal problems, especially in cross-border transactions where local
laws 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 Consultants
Agreements with agents, sales representatives, or consultants must be in writing
in corporate standard format, and must clearly and accurately set forth the
services to be performed, the basis for earning the commission or fee involved,
and the applicable rate or fee. Any such payments must be reasonable in
amount, not excessive in light of the practice in the trade, and
commensurate with the value of the services rendered. The agent, sales
representative or consultant must be advised that the agreement may be
publicly 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 or
fees.
• Communications with Competitors
It is not illegal and may be appropriate for representatives of and its competitors
to meet and talk from time to time. In such conversations, you should
scrupulously avoid comment on such topics as pricing, production levels,
marketing methods, inventories, product development, sales territories and
goals, non-public market studies, and any proprietary or confidential information.
Discussions regarding customers must be limited to the exchange of credit
information.
• Information about Competitors
As a business that competes in the marketplace, we seek economic knowledge
about our competitors. However, we will not engage in illegal or improper acts to
acquire a competitor's trade secrets, customer lists, and information about
company facilities, technical developments or operations. In addition, we will not
hire a competitor's employees for the purpose of obtaining confidential

15. information, or urge competitors' personnel, customers, or suppliers to disclose
confidential information.
 The Role of Business Ethics Today
Business people and their corporations need to be reminded about their role and
responsibilities. The following issues need special attention today:
1. Globalization should mean that all people are considered to comprise one
family. All human beings should be treated with respect, equality, and fairness.
Exploitation of one group by another should stop. There should not be any
division 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 with
other species, and so we take care not to waste or destroy them.
3. We should use the Earth's resources with great care and should remember
that we have a duty to leave this world in a better condition for the generations
to come after us.
4. Human beings are one family, although we have our differences. Diversity is
natural and beautiful. We should try to understand other people's religions and
cultures 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 people
can 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. honest, truthful, and fulfill all promises and commitments. We must eliminate
fraud, cheating, and cut-throat competition.
7. We should also promote more political freedom, open debates, participatory
democracies, and representative governments.
8. We must encourage and support an educational system that promotes
openness, dialogue and that guard against fanaticism. Our educational system
should not teach every view in the absolutist terms. Our children should be
taught about the multitude of perspectives and one should be open to other
points of view.
 Principles for Positive Business Ethics
• Business Ethics are built on Personal Ethics
Business Ethics are built on Personal Ethics. There is no real separation
between doing what is right in business and playing fair, telling the truth and
being ethical in your personal life.
• Business Ethics are based on Fairness
Business Ethics are based on Fairness. Would a dis-interested observer agree
that 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 basic
principles of ethics are being met.
• Business Ethics require honesty.
Honesty refers to wholeness, reliability and consistency. Ethical businesses treat
people with respect, honesty and integrity. They back up their promises, and
they keep their commitments
• Business Ethics require Truth-telling

17. Business Ethics require Truth-telling. The days when a business could sell a
defective 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 Dependability
Business Ethics require Dependability. If your company is new, unstable, about
to be sold, or going out of business, ethics requires that you let clients and
customers know this. Ethical businesses can be relied upon to be available to
solve problems, answer questions and provide support
• Business Ethics require a Business Plan
Business Ethics require a Business Plan. A company's ethics are built on its
image of itself and its vision of the future and its role in the community. Business
ethics do not happen in a vacuum. The clearer the company's plan for growth,
stability, profits and service, the stronger its commitment to ethical business
practices.
• Business Ethics apply internally and externally
Business Ethics apply internally and externally. Ethical businesses treat both
customers and employees with respect and fairness. Ethics is about respect in
the conference room, negotiating in good faith, keeping promises and meeting
obligations to staff, employers, vendors and customers. The scope is universal.
• Business Ethics require a Profit
Business Ethics require a Profit. Ethical businesses are well-run, well-managed,
have effective internal controls, and clear expectations of growth. Ethics is about
how we live in the present to prepare for the future, and a business without
profits (or a plan to create them) is not meeting its ethical obligations to prepare
for the future well-being of the company, its employees and customers.
• Business Ethics come from the Boss

18. Business Ethics come from the Boss. Leadership sets the tone, in every area of
a business. Ethics are either central to the way a company functions, or they are
not. The executives and managers either lead the way, or they communicate
that cutting corners, deception and dis-respect are acceptable. Line staff will
always rise, or sink, to the level of performance they see modeled above them.
Business ethics starts at the top.
 18 Rules of International Business Ethics
Rule 1: If you strive to understand the values of different cultures, you will find
common points.
Rule 2: if you analyze the facts, you will realize that honesty and reliability benefit
you.
Rule 3: if you analyze case studies from different perspectives, you will discover
the 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 each
stakeholder.
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 social
security system.
Rule 11: if you act against discrimination, you will increase your productivity and
profitability.
Rule 12: If you protect intellectual property, all stakeholders will receive their due
share.

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 it
witnesses your drive for quality and excellence.
Rule 15: Your economic achievements will only stand on firm ground if you
diminish corruption.
Rule 16: Long-term success urgently calls you to constantly care for the
environment.
Rule 17: To become a refined player, sharpen your discernment and cultivate
good 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. Cultural environment
.Religion Perceived ethical
Legal system problem
Political system
Professional environment Deontological Deontological Action control
Informal norms norms evaluation
Formal codes
Code enforcement Perceived
Industry environment alternatives
Informal norms
Formal codes
Code enforcement Probabilities of Ethical Intentions Behavior
Organizational environment Consequences judgments
Informal norms
Formal codes Desirability of
Code enforcement Consequences
Personal characteristics perceived Teleological
Religion consequences Importance of evaluation Actual
Value system stakeholders Consequences
Belief system
Strength of moral character
Cognitive moral development
Ethical sensitivity
 Ethics
The ethics is a set of moral principles which guides the code of conduct
and behavior of a human being in his life and in society
 Determinants of ethics

21. 1. Value and morals
The 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 these
levels
2. Family, schools and religions:
The learning of behavior starts in the beginning of one’s life. In the family one
learns what is good or bad, what ought to do or not to do. The parents and family
members inculcate the value the value, morals and ethical standards among their
children by rewarding good behavior and controlling unacceptable manners. In
the same way, a student learns several behaviors from school and religious
society. It may be in terms of truthfulness, honesty, sincerity, tolerance
3. Peers, colleagues and superiors
A person learns most of the behavior of life form his workplace. This friends, team
members and superior people promote, rewards and control the different
behavior which develops a pattern of working
4. Social pressure
There is considerer able influence of social pressure on the life style of a person.
The different customs, norms, culture, beliefs of a society. Discrimination based
on caste system, different boycotts, prevention for the construction of any such
thing like nuclear power plant, ban on adoption for social reformation restrict the
thoughts as well as actions in one’s life
5. Experiences from life
One learns so many lessons from his own experiences from his own life. There
may be so many bitter or sweet experiences depending on the ability of a person
or expectation. Success or failure teach how to do or act next in an individual life
6. Organizational demand and ethical codes
The organizations have their specific guidelines for the managers as well as
employees. The employees as ethics of the organization follow these codes of

22. behavior. All the top, middle and first level management compromise their
personal principles to meet the organizational demand the corporate goals and
objectives exert considerable pressure of the executive to change their ethical
views
7. Legislation
Govt, legislation, rules and regulations guide the code of conduct about
standards, social responsibilities, exploitation, corruption in public life, product
safety, working condition; statutory warning etc.these guidelines helps in
determining what are acceptable standards and practices
8. Threatened situations
There 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 which
bounds human behavior and sets the new path of conduct for personal and
professional life
 Objectives of ethics
1. To set the standards of personal life and norms of behavior
2. To define the working pattern of professional life
3. To set a standard for do’s and don’ts
4. To develop a value system
5. To create strong work culture
6. To set the mission of life
7. To inculcate good behavior in children
8. To improve the social life
9. To balance the need and wishes of human being
10. To prevent the social evils

23.  Ethics in teaching
Teaching ethics means to teach the ethics of business in the school or colleges
or in university
 Principles of Ethical education
1. Content Competence
A university teacher maintains a high level of subject matter knowledge and
ensures that course content is current, accurate, representative, and appropriate
to the position of the course within the student's program of study.
2.Academic Competence - A pedagogically competent teacher communicates
the objectives of the course to students, is aware of alternative instructional
methods or strategies, and selects methods of instruction that are effective in
helping students to achieve the course objectives.
3. Dealing with Sensitive Topics - Topics those students are likely to find
sensitive or discomforting are dealt with in an open, honest, and positive way.
4. Student Development - The overriding responsibility of the teacher is to
contribute to the intellect development of the student, at least in the context of
the teacher's own area of expertise, and to avoid actions such as exploitation
and discrimination that detract from student development.
5. Dual Relationships with Students - To avoid conflict of interest, a teacher
does not enter into dual-role relationships with students that are likely to detract
from student development or lead to actual or perceived favoritism on the part of
the teacher.
6. Confidentiality - Student grades, attendance records, and private
communications are treated as confidential materials and are released only with

24. student consent, for legitimate academic purposes, or if there are reasonable
grounds for believing that releasing such information will be beneficial to the
student or will prevent harm to others.
7. Respect for Colleagues - A university teacher respects the dignity of her or
his colleagues and works cooperatively with colleagues in the interest of
fostering student development.
8. Valid Assessment of Students - Given the importance of estimation of
student performance in university teaching and in students' lives and careers,
instructors are responsible for taking adequate steps to ensure that assessment
of students is valid, open, fair, and congruent with course objectives.
9. Respect for Institution - In the interest of student development, a university
teacher is aware of and respects the educational goals, policies, and standards
of the institution in which he or she teaches.
Visit the Association for Practical and Professional Ethics' Web site to learn
more about ethics in college teaching
 Regulating ethics
1. Market systems
Most of the recent ethical writings on integrating greed, Pleasure, efficiency,
privacy and free choice rely on the existence of a market system considered to
be a profoundly ethical instrument. Its ethical use has been accepted by many
ancient cultures including India but with less enthusiasm and greater constraints.
Market system can be viewed as value neutral as they can only be vehicles for
transactions. However the relationships they generate have strong ethical
overtones and therefore the system can be treated as value in ethics.
2.Respect for processes of social
adaptation

25. Respect for family and other institutions for socializing individuals in their ethical
evolution is now understood as an important ethical value equally valid for
business. In fact Alacrity foundation of tamilnadu has made it a motto in the
advertisements.
3. Respect for law
Institutionalizing ethics through laws that can be enforced is a process as old as
civilization itself. Hosmer (1995) accords high value to this process. Thomas
Hobbes and john Locke in England and kautilya, Thiruvalluvar and Manu in India
have also been its proponents. The overzealous concern for the value of
protecting the institutional means should not supersede the basic need for
ensuring that the outcomes are by themselves ethical
4. Respect for professional codes
A major development in the ethical movement in the US is the mobilization of
professions through professional councils who develop professional codes
which make it easier to reach across to organization and provide a
countervailing force to greed. This path of ethical control through professional
guilds was quite common in ancient India. Professional councils and codes have
played a major role in the ethical revival in the west.
5. Organizations as vehicles of ethical synergy
Large organizations that were not extensions of the state apparatus are
relatively new to civilization. An emerging ethical value in business is that they
must synergies ethics such that their actions are the summation of individual
ethical values and not of ethical disvalues. The respect for ethical frameworks
and consequently becomes an ethical value by itself
6. Respect for rituals and symbols
The last of the values is an enigma. A growing number of people now feel that
rituals and symbols of every culture are strong emotional and psychological
supports for ethical sustenance. There are strong ancient Indian traditions both
for and against this

26.  Principles of business ethics
1. Stimulating morale thoughts
2. Developing problem solving skill
3. Creating a sense of moral commitment
4. Recognizing the ethical problem
5. Reducing hesitation
 Code of conduct in ethical education
The ethical education is given in the following things
1. Truthfulness
The truthfulness is the corner stone of all values. A business manager
honorably straight. It is the characteristic that distinguishes a professional
manager from mercenary
2. Fairness
A manager should look at and treat all aspects of an issue in a fair and
balanced manner.
3. Responsiveness to the public interest
Though a manager is paid to serve the interest of the stock holders of the
company, public interest is no less important. In fact mangers should consider it
as of paramount importance, if they have to successful in their tasks
4. Accountability

27. Accountability is one of the basic characteristics of a good business managers
are responsible for all their actions and are accountability to all the
stakeholders- stockholders, creditors, employees, consumers, government and
the society at large
5. Honesty
A cardinal ethical value that a manager should possess is this quality.
Managers should be fair, just and sincere both in character and behavior. They
should not indulge in cheating or stealing and should be free of deceit and
untruthfulness
6. Clearness
Good business managers should be clear and set standards for others to
follow. They should be frank and open. Their actions should be easily
discussed and understood by others
 Benefits of learning Business ethics
The benefits of learning business ethics
1. Aware of the moral principles
Young mangers should understand and be aware of the reasons that underlie
moral principles. These are helpful in fostering ability to reason when applying
these principles it is vital part of ensuring compliance by managers with
company standards for conduct
4. Determine ethical issues
Knowledge of business ethics will help mangers in determining the ethical
issues
5. Responsible tone for the organization
Knowledge will help mangers in setting highly responsible tone for the
organization in individual judgments’ and decisions whether ethical or not

28. 6. Provide hard-working managers
The study of business ethics will provide hard working managers with morally
responsible approach to business. The need for responsible managers is acute
as questions of business ethics cannot wholly be determined by law or
government regulations but means remain the concern of individual manager.
7. To realize their social responsibility
It helps to realize their social responsibility. Many organizations find it
wise to go beyond their primary mission and take into account needs of
the community. Business ethics makes managers more accountable for
social responsibility
6. High level of honesty in managers
The study of business ethics inculcates high level of honesty in
managers. Goal of ethics education to his share knowledge, build skills
and develop minds. It helps to gain clarity and insight into business
ethics and avoid business misconduct in organizations. The study of
business ethics helps to arrive a decision that he feels to be right and
proper .It facilitates individual to understand their moral standards and
ethical norms, beliefs and values so that they can decide when faced
with business dilemma
 Types of values
Values can be divided into two classes
Instrumental values
Are those values regarding the way we approach end states These
relate to means for achieving desired results.
Assertiveness Dependability

29. Hard work Obedience
Open mindedness Self sufficient
Truthfulness Good manners
Terminal values
refer to beliefs about ultimate good or end results while instrumental
values refers to beliefs about desirable modes of behavior that are
instrumental to the attainment of ultimate of goals.
Satisfaction Peace and harmony
Pride in accomplishment Prosperity
Recognition Security
Theoretical values
Interest in the discovery of truth through reasoning and systematic
thinking
Economic values
Interest is usefulness and partiality including the accumulation of
wealth
Social values
Interest in gaining power and human relationships
Political values
Interest in gaining power and influencing other people
Religious values

30. Interest in unity and understanding the cosmos as a whole
The following list shows several instrumental and terminal values
 Value formulation
1. Genetic source
A significant portion of our value is genetically determined
2. Environmental source
Environmental factors like natural environment, culture, friends circle,
educational institutions, and religious faith help in formulation of
values
3. Influence of superiors
Parents, elders, teachers, religious leaders, all such persons help us in
the formulation of our values
4. Media
News papers, journals, magazines, film, radio, cinema go long way to
formulate our values
5. Value forming institutions
The development of a human life and society is based on values. There
are various institutions in the society which inculcates values. There are
four major institutions which provide the basic sources of values: -
family, school, state and religion. These institutions teach the
individuals what is good or bad for them. Good behavior is rewarded

31. and bad behavior is punished. It develops and inculcates a particular
behavior
6. Organizational values
The organization where an individual works affects the behavior and
shape value in working life. The different organizations have their own
value system and behavioral pattern which shapes human life
7. Peers and colleagues
An individual learns different behavior from his peers and colleague. In
a work group an individual learn the group’s norms and values.
Organization or group value strengthen and protect the membership
status in that group
8. Work and career
The model of work in an individual career includes the task or
responsibilities associated with a particular job in a period of time. It
follows a related progressive of job career over a period of time.
 Relevance of values in management:
• worth of values in management
Our effectiveness at work is tied to exercising intrinsic human values
i.e., moral or ethical values. These human values support established

32. business values such as service, communication, excellence, credibility,
innovation, creativity and coordination.
The human values help in self development. Managerial function such
as direction, control, supervision and communication, integration and
coordination are much easier. The human values help good
interpersonal interactions. They reduce conflicts and disputes. They are
part and parcel of achieving accelerated process of improvement and
customer’s workers and citizen satisfaction. They enhance reputation
and good will of the organization
In 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. It helps in better decision making because respect for moral principles l
from 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 organization
An organization not responding the values and ethics can survive only
for a short period but not for long period. An organization is required to
build up a strong image for long term survival
• Value creates credibility among share holders
If values are properly followed it would create a good image of
company and it would help in attracting an immediate response of
shareholders
• Value creates credibility (reliability) with the public
A company having the ethical and social value will be honored and
respected by even those who have no knowledge of its actual working.
There will be an intuitive prejudice in favor of its product, since people
believe the company gives for money
Some additional Relevance of values in management
1. Managerial effectiveness based on value based management can solve
problems irritating the economy in all countries. Such management offers
human 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 consciousness
3. Self surrender to god and emotionally we can reach the goal of pure
consciousness

34. 4. Value based management provide proper use of valuable human and material
resources offered by the mother earth
5. Value based management promotes work culture, self discipline and
consciousness among the employees
6. Value based management helps in bringing the human agreement and
happiness in the organization
7. Value based management cares for its people. People are protected from
unwanted stresses and strains, unrest and adverse organizational work life
8. Value based management reduces the conflict and disputes
 Factors that guide managers to take ethical decisions
1. A man’s personal code of ethics
2. The company’s formal policy
3. The ethical climate in the industry
4. Government regulations
5. Behavior of mangers with the society
6. 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. Management knowledge is like physical body to which soul is provided by
ethics. Without ethics knowledge of management is just like meals without
salt and the body without soul.
• Essential power of differentiate right and wrong
Knowledge of ethics will equip students of management with an essential
power of discriminate right and wrong. It will make them wisdom decision
makers or leaders. They will set good examples through their ethical decisions,
conduct and behavior before their subordinates. This will improve effectiveness
of individuals, departments and organization as a whole.
• Serve as standard on the basis of which quality of management
Ethics serve as standard on the basis of which quality of management. Good
management or mismanagement can be determined, quality of decisions can be
examined and quality of individual conduct can be examined. Mis conduct can
be penalized. Good management good decisions and good conduct may be
appreciated and rewarded
• Key issue in corporate governance
Ethics are the key issue in corporate governance debate. Without
atmanushashan there can’t be good corporate governance and without that
there can’t be good administration.
• Solid foundation to corporate laws
Ethics provide solid foundation to corporate laws, code of conduct; corporate
social responsibility etc. there is corporate ethics committee at board level as
part of corporate governance. Socially responsible corporate entity can be
conceived on the basis of ethical framework
• Boundaries of corporate behavior and conduct
Ethics define boundaries of corporate behavior and conduct. What will amount
to compliance with corporate laws. What will amount to corporate misconduct

36. are the critical issues which managers can better understand through knowledge
of ethics
• Ethics determine human values
General ethics determine human values. A manager committed to ethics will
have due respect for human values or human rights. He will never think about
exploitation of anybody or showing disrespect to others
 Importance of teaching ethics
There is a study carried out a Harvard business school by three of its
faculties. One of the researchers tells us of the response of the students to
the required ethics module at H.B.S
1.One student says that earlier he didn’t consider ethical issues as
important ones but after taking course on ethics, he has become aware of
the need to ask the question of what is going to be the impact of this
decision on the people that live in that area and environment
2. Another student says that the difference such as course has made is in
level of analysis. When you talk about whom are all people involved
3. Ethical consciousness and commitment can continue to undergo
transformation at least throughout formal education has to be the
foundation of any program of teaching ethics
4. An overemphasis of SWM (shareholders wealth Maximization)
objectives of managers on a mis understanding of its true implication and
theoretical foundation means that if these are misunderstood then it can
lead to dangerous or disastrous consequences for consumer’s employees in
the general population. So teaching ethics is extremely necessary in present
scenario
 Barriers to teaching ethics

37. 1. According to some research in the H.B school some faculties feared that
they would be asked to teach ethics as a distinct subject
2. Some faculties feared that teaching a course on ethics would bring very
few professional rewards
3. Many faculties felt that integration of ethics into the class soon can
threaten their self confidence who identify strongly with their role as
experts in their professional field without giving or having the same
confidence on ethics issues
4. Some teachers as well as some students felt that they need to pay some
attention to ethics in their own lives before they can talk it in the classroom
5. Some faculties raised a number of teaching questions like how should a
faculty respond to a student’s behavior that appears very much unethical
 Ethical as a tool for moral training in the organization
The ethics program is essentially useless unless all staff members are
trained about what it is how it works and their roles in it. The nature of the
system may invite suspicion if not handled openly and honestly. In addition
no matter how fair and up to date is a set of policies; the legal system will
often interpret employee behavior (rather than written policies) as de facto
policy. Therefore all staff must be aware of and act in full accordance with
policies and procedures (this is true, whether policies and procedures are
for ethics programs or personnel management). This full accordance
requires training about policies and procedures
1. Orientation of new employees to the organization’s ethics program
during new employee orientation
2. Review the ethics management program in management training
experiences
3. Involving staff in review of policies (ethics and personnel policies) is
strong ethics training

38. 4. Involving staff in review of policies ( ethics and personnel policies) is
strong ethics training
5. 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 guidebook
6. Include ethical performance as a dimension in performance appraisals
7. 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 leaders
8. Give all staff a copy of this free complete guide to ethics managemet
 Values in management
Values
A value is a belief on which a person acts by preference. A value is a
perspectives belief. The word values means the worth, merit, usefulness or
importance of a thing. Everyone does not hold the same value. The value of the
thing varies from person to person and it is more relative concept few of the
Trans culture values come to us by our relatives is not due to the culture we
follow but due to the humanity, mankind and soft corner of an individual
 Cultural values in management
1. Credibility among stakeholders
These are individuals which are directly or indirectly affect by decision of the
organization. Stakeholders, customers, suppliers, employers, shareholders etc.
2. Corresponds to human values
Managers know that his decisions can affect the thousands of individual. So there
should not be any place for biasness. One should not think of individual interest.

39. We should help and cooperate everybody without any favor. Opportunities and
responsibilities should be same for all employees at same level.
3. Helpful in decision making
Another point of great importance is the Trans cultural values help the managers
make better decisions. I.e. the decisions which are in the interest of public their
employees and the company’s own long term good. This is so because respect
for ethics will force a management to take various aspects – economic, social
and ethical in decision making
4. Profit earning
A company which is inspired by cultural values is also a profitable one. Value
driven companies are sure to be successful in the long run, though in the short
run, they may lose money
5. Management credibility with employees
Cultural values are supported to be common language to bring leaderships and
its people together organization values when perceived by employees as
genuine create common goals, values and culture
6. Clear objective
The organization should make clear the objective of the company so that even a
layman can understand it. If the objectives are not clear then the lower
management cannot achieve these objectives efficiently. It can affect the
productivity of the employees at operational level. Clear objectives are helpful in
reducing disputes and conflicts
7. Self discipline
It is important to control one’s own mind before controlling others. A manger
should take decisions with cool mind and self discipline. A manger should be
properly disciplined which includes arriving on the time in the organization,

40. optimum use of working hours, Not wasting other’s time. If a manger expects
discipline form others, he must demonstrate first.
 Features of values:
1. Values are the core of personality and are a powerful force affecting behavior
2. Values contain judgmental elementals
3. Values are fixed they change over time
4. Many values are relatively stable and enduring. This is because of the way of
which they are originally learned
5. We have a hierarchy of values that form our value system. But everyone does
not hold the same value
6. Values has both comfortable and strength
 Values for managers
1. Fearlessness
2. Purity of mind and hearts
3. Integration of thoughts
4. Inspired deals and vision
5. Creativity
6. Understanding
7. Love and affection
8. Patience

41. 9. Friendship with all
10. Spirit of sacrifice
11. Non violence
12. Harmlessness
13. Gentleness
 Styles of values
1. Performer
Be conscientious and live by the ethical values and principles. Treat others with
fairness and objectivity. Be fair and precise at improving products or services.
2. Helper
Act as a team player and support others and make them feel welcome in group.
Be of service to clients and customers
3. Producer
Realistic with resources and people. Delegate responsibility and divide work
components into small manageable teams.
4. Animator
Be positive and flexible. Adapt to an ever new and changing work situation. Give
others the freedom to grow and build positive morale among co workers
5. Expressionist
Very clear with their feelings and emotions. Constantly remain in which with
coworkers feeling quotient. Create the feeling of being valued being valued
among the employees. Respect every person as a unique individual.

42.  Features of values in global change
1. Managerial decision making requires an inter play of both reasoned and
holistic facilities
2. Key to cooperation and team work
3. The creative energies of human being are derived from global changes
4. The effective leadership skill needs purity, strong living, selfishness terms
5. The effectiveness of such decisions depends critically on the purity of the
decision maker
 Needs for values in global change
1. Value creation for work force
An organization culture v should create a sense of commitment in the
workforce. They must love their job and should be dedicated to their work.
For this dedication a personal should feel as a member of family where
there is no bounding but freedom and opportunity to develop him as well
as the organization. In consideration of this view the management should
take some steps as
• Taking the initiative to implement a meaningful that address personal
basis and values that foster harassment of individuals
1. Liberalization
In the new economy there have been much more liberal policies. It means
removing all necessary controls and restrictions. It means removing all
necessary controls and restrictions like permits, license, quotas etc imposed by
the government. Earlier because was required to establish majority of the
industries but now the license requirement has been reduced. The above control
and restrictions resulted in
a) Consumption delays

43. b) Losses
c) High cost economy
Liberalization resulted in industrial sector reforms, tax reforms, foreign exchange
reforms, tradepolicy reforms all of which resulted in boosting the Indian economy
2. Privatization
It means transfer of functions, activity or organization form public to private
sector. It indicate the beginning of the new culture in the society in which
marketization, competition, efficiency become the guiding principle in economic
decision making
3. Globalization
It refers to entrance of private /government players in the foreign markets or
independence among countries with regard to capital, goods, and technology
restriction on the extension of business outside the geographical boundaries of
the country
4. Participative style of management
This is followed by the organization in which all the employees are invited in the
meeting for suggestions in order to improve the productivity of the organization
5. Competition
Earlier their used to be monopoly but not competition has become intense due
to privatization and globalization. Perfect competition exists in the market. There
is lots of brand available in the market in every product category.
6. Decentralization
Now a day to make the implementation process faster, authority of decision
making is transferred to subordinates. They know the problem and solution well.
Responsibility is also transferred to subordinates

44. 7. Conservation of natural resources
In today’s scenario companies are using natural resources without thinking of
future requirements. The companies are not socially responsible towards natural
resources. The concept of sustainable development should be followed and
optimum utilization of resources is the need of the day