Ethics

Ethics are a set of rules that define right and wrong conduct. These rules tells us when our behaviour is acceptable and when it is disapproved and considered to be wrong.Keith Davis wrong.  Standardized form of behaviour.  It refers to the code of conduct that guides an individual while dealing in a situation.

This word comes from Greek root ethos meaning character, guiding beliefs, standards or ideals that pervade a group, community or people.  Ethics is a branch of philosophy, which is concerned with the rightness or wrongness, goodness or badness of human conduct.


Nature of ethics
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Ethics contain principles of personal and professional conduct. Existing norms and judgments may contain valuable insights but ethics sets out to criticize and test them in terms of ultimate norms. Ethics does not rest on feelings of approval or disapproval but in the careful examination of the reality around us.

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Ethics is not law. Law may permit things which are unethical. It is broader than law, customs and public opinion. What constitutes ethical behaviour in one society may be unethical in others. Ethics involved in all human activities including business.

Business Ethics
Business ethics refer to the moral principles which should govern business activities.  Ethics refers to a set of moral principles which should play a very significant role in guiding the conduct of managers and employees in the operation of any enterprise.---enterprise.---- Dale S . Beach  Business ethics are application of general ethical rules to business behaviour.


Features of business ethics

BE is an umbrella term which covers all business practices which are desirable from the point of view of the society.  Ethics co-exist with law, but has much cobroader coverage.  The concept of equity is implied in ethics. It aims at fair and reasonable treatment to all.


BE emphasize making a businessman honest, justice and responsible citizen.  Be create self-imposed discipline on the selfpart of managers. Examples  To charge fair price from the customers.  To use fair weights for measurement of commodities.  To pay taxes to the government honestly.  To give fair treatment to workers.  To earn reasonable profit.


Sources of ethics
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Genetic Inheritance Religion : Judaism , Christianity, Islam, Hindu. Philosophical system : Epicureans The legal system Codes of Conduct : company codes, Policies Cultural experience. C. V Murthy, BE, p 18

Principles of Business Ethics

As per Institute of business ethics (IBE) :  Be trustful  Keep an open mind  Meet obligations  Have a clear documents  Maintaining accounting control  Be respectful T N Chabra p 23


Principles of management Indian wisdom

Based on Upanishads and Gita. 1. Each soul is a potential God : Soul is the spark of the divine . Divine means perfection in knowledge , wisdom, & Power. Modernaisation of men is more important than Modernaisation of plant. 2. Holistic Approach : based on spiritual principle of unity, oneness, non-dual/ Advaita nonconcept. The universe is an undivided whole where every particle is connected with every other particles. Under this approach management will not exploit shareholders, employees, customers, society and nature. Atmano Mokshartham Jagat Hitaya Cha

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Equal Importance to Subjectivity & Objectivity : Creator is subjective ( intangible -soul). Creation is objective (Tangible --Body). --Body). Value based management is essential to combine both. Karma Yoga (selfless work): To work only work): you have the right and you have no right to the fruits of the work. --- Gita. Concentrate your attention only on your present job. Develop the healthy attitude that fruit (Karma Fala) is given to you as Prasad from Divine. Swadharma should be carried out on general welfare of society.

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Yogha Karmasu Kaushalam : Yoga means excellance at work. Koushalam denotes doing work with devotion. Your head, heart and soul coco-operate with your hands. The extrinsic incentives ( money) plays very minor role as motivators. Karma yoga and Yogha Karmasu Kaushalam provides valuable contribution to TQM. Why work ? To purify my mind and heart to become wise. To provide public benefit. What is work ? To nurture each other. My work is a form of Yagna, sacrifice. I develop the spirit of sacrifice. It is a worship of divine. divine.

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How to work ? With the spirit of renunciation i.e Tyag and to serve others. I must work without self interest. Spirit of work : Excellence in work. Perfection in work and quality of output. Co-operation : By co-operation mutual cohelp shall achieve the highest human welfare. Unity is strength. Paraspar Devo Bhava. (Ethics in Mgt., S.A Sherlekar, p 31-47) 31-47)

Golden rules of ethics

Everything you want others to do to you, you shall do to others.  Do not do to others that which you do not wish them to do to you.  Do not do anything to others that if done to you, would cause harm to you.


Benefits of ethics


Block diagram (BE. O.C.Ferrell, p 14-18) 14Employee Commitment & Trust

Ethical climate

Investor loyalty & Trust

Profits

Customer satisfaction & trust

Dharma


  

Synonymous with integrity. It includes openly spirit , righteousness (godliness) and fearlessness. Spirit : Man is the soul. He is essentially divine. Righteousness : Do the right thing. Fearlessness : Dharma stresses fearlessness. Divine is offering protection to you.

(Ethics in Mgt., S.A Sherlekar, p 52-54) 52-54)

Nishkama Karma
Do your duty without ego and calculation of gain or loss. It is the best route for ..  Self development for managers and workers  Aim at Bahu Jana Sukhaya. You grow Sukhaya. others also grow.  Work is performed without rag (passion) , Dwesh ( hatred) Garva (arrogance) and kama (desire)


Purushartha


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The scriptures declare four goals in human life and they are called as the PurusharthaPurushartha-s. It is not only denotes what the objectives of life should be but it also means what the objectives of life are as the result of psychological tendencies of the individual. It includes the following in same order Dharma

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Artha : Acquisition of wealth Kama : Desires of varying degree Moksha : Deliverance of the soul from bondage

Work Ethos
Work ethos or culture refers to certain norms of behaviour governing the conduct of workers involved in work situation to achieve certain desired objectives.  It is the involvement of workman with work. The degree of his involvement impacts his performance to give high or law productivity, high or law quality.  At the basic level, it is about discipline (Punctuality, behaving properly)


At the top level, It is about commitment an accountability.  Protecting interest of the organisation. No employee should make any adverse comments about the organisation in public.  To perform ones jobs with devotion. Reasons for poor work culture. 1. Lack of commitment 2. Lack of discipline.


Poor working condition 4. Outside plitical interface 5. High rate absenteeism 6. Lack of recognition of merit by management 7. Decline general moral standards ( Ethics in mgt. B. Ghosh p 54-56) 543.

Model of management in Indian Socio Political environment

Insights in to Indian ethos 1. Management attitude : Top management must have firm belief in values-oriented holistic valuesmanagement. Work is worship. 2. Humanizing the organisation 3. Interiorizing management : Self management. The manager must learn to manage and control himself. 4. Self introspection : Self study, self analysis and self criticism to locate areas of friction and disharmony. The master key is within our inner mind or consciousness.

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BrainBrain-Stilling :Decision making in silence. A perfect Mounum. Stepping Back ( For a While) : The stepping back from a situation for a while enables you to control and even master the situation. SelfSelf-dynamising Meditation : It is the meditation of transformation of lower consciousness in to higher consciousness. Role of intuition : It is the act of coming to direct knowledge or certainty without reasoning or inferring. It is effective for prompt and sound decision.
Read-Read-- Ethics in mgt. B. Ghosh p 57-73) 57-

(Ref slide11 Principles of management Indian wisdom, slide