This document discusses ethics and business frameworks. It outlines some of the major issues around business ethics including the five principles of ethical power for organizations. It describes the crisis of ethics seen through various manifestations like dishonesty and greed across all sectors of society including business and government. This has led to consequences such as social unrest and low productivity. The document emphasizes that there is no separate ethics for business and outlines six pillars of strong character. It then details the five principles of ethical power for organizations which are purpose, pride, patience, persistence and perspective. Finally, it provides examples of guiding principles and ethical guidelines for ethical business organizations.

1. Ethics & Business Frame Works
By Debasis Kundu, Sudipta Karmakar & Amitava Sengupta

2. Major Issues
• Five Principles of Ethical Power for
Organisations
• Business Ethics
• Crisis of Ethics
• Ethical Organisations

3. Crisis of Ethics
• Manifestations
• Actors
• Consequences

4. Manifestations
•
•
•
•
•
Dishonesty
Greed
Arrogance
Selfishness
Consumerism

5. Actors
• All sections of the population across
the world
• Business
• Government
• Social Services (NGOs)

6. Consequences
• Social Unrest
• Low productivity
• Poverty and chaos

7. Business Ethics
There neither is a separate ethics
of business, nor is one needed
-Peter Drucker

8. Six Pillars of Character
1.
2.
3.
4.
5.
6.
Trustworthiness
Respect
Responsibility
Fairness
Caring
Good Citizenship
-Josephson
Institute of Ethics

9. Five Principles of Ethical Power for
Organisations
1. Purpose
2. Pride
3. Patience
4. Persistence
5. Perspective

10. 1. Purpose:
The mission of the organisation is
communicated from the top.
The organisation is guided by the
values, hopes and a vision that
helps to determine what is
acceptable and unacceptable
behaviour

11. 2. Pride
People in the organisation feel
proud of themselves and of their
organisation. When they feel this
way, they can resist temptations to
behave unethically

12. 3. Patience:
People believe that holding to their
ethical values will lead them to
success in the long term.
This involves maintaining a
balance between obtaining results
and caring how they achieve these
results

13. 4. Persistence:
People have commitment to live
by ethical principles. They are
committed to their commitment.
They make sure their actions are
consistent with their purpose

14. 5. Perspective:
Managers and employees take time to
pause and reflect, take stock of where
they are, evaluate where they are
going and determine how they are
going to get there.
-Kenneth Blanchard and Normal Vincent Peale

15. FEW OF THE UNETHICAL PRACTICES OF COMPANIES :
•
The pay package dilemma – Timing of Salary to the Higher Ranked
people in the organisation
•
Not paying the basic amenities for the internal development & securities
•
Often deductions from salaries done as per Government Rules &
Regulations are not being filed properly
•
Hiring & firing the work force at their will with or without
compensation
•
Misuse of funds & loans from bank for the personal gratitude of the
Directors & (or) Owners
•
Showing or creating false assets / Capital – Thereby creating false notion
to the general public to increase market price of share values
•
Buying in assets or acquiring them from improper or unethical source

16. OTHER FEW WORK ETHICS WHICH ARE OFTEN FOUND MISSING
OTHER FEW WORK ETHICS WHICH ARE OFTEN FOUND MISSING
••
Differentiating between employees as per the preferences of the
Differentiating between employees as per the preferences of the
directors & not due to merit
directors & not due to merit
••
Misbehaving with the work force by Senior Management
Misbehaving with the work force by Senior Management
••
Sexual exploitation of Junior workers by Seniors being ignored
Sexual exploitation of Junior workers by Seniors being ignored
••
Not abiding by the law of the land
Not abiding by the law of the land
••
Selling substandard items to the customers after building up aa market
Selling substandard items to the customers after building up market
reputation
reputation
••
Misusing of law to harass outgoing / / enstranged employees
Misusing of law to harass outgoing enstranged employees
••
Knowingly creating loss to the company to wind up aa business which
Knowingly creating loss to the company to wind up business which
is not interesting to owner
is not interesting to owner

17. ETHICAL
BUSINESS
ORGANISATIONS

18. Guiding Principles of JRD TATA
•
•
•
•
•
hard work
striving for excellence
fairness and honesty
good human relations
serving the needs/interests of the
country and its people

19. Our Promise to Customer
With utmost respect to Human Values,
We promise to serve our
Customer with Integrity,
Through a variety of Innovative,
Value for Money, products and services,
By Applying Thought, day after day’

21. Ethical Guidelines
•
•
•
•
Practising honest communication
Enhancing human capabilities
Fostering creative cultural diversity
Promoting sustainable growth and ecoefficiency

22. Business and Interest Groups
EXTERNAL
SOCIETY
INTERNAL
Shareholders
Government
Employees
Law
Special Interest
Groups
BUSINESS
CONSUMER
Suppliers
Financial
Institutions

23. GDP Model of Ethical Values Chain & Social
Values Chain
GDP
---------------------------------Growth, Development
& Progress
Higher Order Purpose of
Existence (HOPE)
HRD
-------------------------Honesty,
Responsibility &
Dedication
JRD
---------------------------Justice, Rights &
Duties
HCL
--------------------------Harmony, CoOperation & Love
LCD
--------------------------Love, Compassion &
Devotion
-Subhash Sharma

24. THANKS TO
Sir S. CHATTRJEE
FOR HIS HELP AND
GUIDANCE