3rd semester MBA

Business Ethics

CHAPTER 1 Ethics
Ethics is the branch of study dealing with what is the proper course of action for man. It answers the question, "What do I do?".It is the study of right and wrong in human endeavours. At a more fundamental level, it is the method by which we categorize our values and pursue them. Do we pursue our own happiness, or do we sacrifice ourselves to a greater cause? Is that foundation of ethics based on the Bible, or on the very nature of man him, or neither?

Why is Ethics important?

Ethics is a requirement for human life. It is our means of deciding a course of action. Without it, our actions would be random and aimless. There would be no way to work towards a goal because there would be no way to pick between a limitless numbers of goals. Even with an ethical standard, we may be unable to pursue our goals with the possibility of success. To the degree which a rational ethical standard is taken, we are able to correctly organize our goals and actions to accomplish our most important values. Any flaw in our ethics will reduce our ability to be successful in our endeavours.

What are the key elements of a proper Ethics?

A proper foundation of ethics requires a standard of value to which all goals and actions can be compared to. This standard is our own lives, and the happiness which makes them liveable. This is our ultimate standard of value, the goal in which an ethical man must always aim. It is arrived at by an examination of man's nature, and recognizing his peculiar needs. A system of ethics must further consist of not only emergency situations, but the day to day choices we make constantly. It must include our relations to others, and recognize their importance not only to our physical survival, but to our well-being and happiness. It must recognize that our lives are an end in themselves, and that sacrifice is not only not necessary, but destructive.

What is Ethics
A few years ago, sociologist Raymond Baumhart asked business people, "What do ethics mean to you?" Among their replies were the following: "Ethics has to do with what my feelings tell me is right or wrong." "Ethics has to do with my religious beliefs." "Being ethical is doing what the law requires." "Ethics consists of the standards of behaviour our society accepts." "I don't know what the word means." These replies might be typical of our own. The meaning of "ethics" is hard to pin down, and the views many people have about ethics are shaky. Like Baumhart's first respondent, many people tend to equate ethics with their feelings. But being ethical is clearly not a matter of following one's feelings. A person following his or her feelings may recoil from doing what is right. In fact, feelings frequently deviate from what is ethical. Nor should one identify ethics with religion. Most religions, of course, advocate high ethical standards. Yet if ethics were confined to religion, then ethics would apply only to religious people. But ethics applies as much to the behaviour of the atheist as to that of the saint. Religion can set high ethical standards and can provide intense motivations for ethical behaviour. Ethics, however, cannot be confined to religion nor is it the same as religion. Being ethical is also not the same as following the law. The law often incorporates ethical standards to which most citizens subscribe. But laws, like feelings, can deviate from

what is ethical. Our own pre-Civil War slavery laws and the apartheid laws of present-day South Africa are grotesquely obvious examples of laws that deviate from what is ethical. Finally, being ethical is not the same as doing "whatever society accepts." In any society, most people accept standards that are, in fact, ethical. But standards of behaviour in society can deviate from what is ethical. An entire society can become ethically corrupt. Nazi Germany is a good example of a morally corrupt society. Moreover, if being ethical were doing "whatever society accepts," then to find out what is ethical, one would have to find out what society accepts. To decide what I should think about abortion, for example, I would have to take a survey of American society and then conform my beliefs to whatever society accepts. But no one ever tries to decide an ethical issue by doing a survey. Further, the lack of social consensus on many issues makes it impossible to equate ethics with whatever society accepts. Some people accept abortion but many others do not. If being ethical were doing whatever society accepts, one would have to find an agreement on issues which does not, in fact, exist. What, then, is ethics? Ethics is two things. First, ethics refers to well based standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Ethics, for example, refers to those standards that impose the reasonable obligations to refrain from rape, stealing, murder, assault, slander, and fraud. Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty. And, ethical standards include standards relating to rights, such as the right to life, the right to freedom from injury, and the right to privacy. Such standards are adequate standards of ethics because they are supported by consistent and well founded reasons. Secondly, ethics refers to the study and development of one's ethical standards. As mentioned above, feelings, laws, and social norms can deviate from what is ethical. So it is necessary to constantly examine one's standards to ensure that they are reasonable and wellfounded. Ethics also means, then, the continuous effort of studying our own moral beliefs and our moral conduct, and striving to ensure that we, and the institutions we help to shape, live up to standards that are reasonable and solidly-based

Business ethics
Ethics in business are nothing but the dos and donts by the business users in the business. In other words it could be referred as set of principles a business man ought to follow. There should be business ethics means that the business should be conducted according to certain self recognized moral standards. Few unethical elements in the present day business are cheating, stealing, lying, bribing, corrupting etc. A business man should be aware of the ethics in the business and should follow them in order to maintain ecological balance in the society.

Definition:
The study and examination of moral and social responsibility in relation to business practice and decision making in business is known as Business Ethics. The term business is commonly referred to the commercial activities achieved at making profit. But gradually there is a substantial change in the way in which people viewed the business. In the past primary objective of a business was profit maximization but the present perspectives on business objectives are not maximization. It is profit maximization in long run besides fulfilling the ethics in the business. A business is regarded as social institution forming integral part of social systems .The business is viewed as subsystem to the social system. This is because any type of social system is influenced by

1. The way the business functions 2. The organization of the business 3. Innovations 4. Transmission and diffusion of information. 5. New ideas etc.

Need and Importance of Business Ethics:

The following points explain the need for and importance of business ethics: I. Protection of Consumer rights: Consumer is the centre of all business activities. In fact, business is essentially meant for satisfaction of consumer wants. Unfortunately, consumers are the most neglected and exploited group. The application of business ethics will help to confer and implement consumer rights. Business ethics can be used to check malpractices like adulteration, unfair trade practices and to make the working of business consumer oriented. II. Social Responsibility: Business ethics is a means of making business socially responsible for its actions. Exploitation of consumers, employees, discriminate use of natural resources, etc; is quite common in all types of business. Compliance to ethical standards will ensure (a) protection of consumer rights, (b) public accountability, (c) protection of workers interests, and (d) proper utilization of natural resources. III. Concept of Socialism: The concept of socialism in business states that gains of a business must be shared by all and just by the owner of business. Profit is a sing of business skill and talent. Profit is also a result of group efforts. Employees, shareholders, consumers, Suppliers and others contribute to the success of the business. Therefore, success should be shared by all concerned. IV. Interest of Industry: Business ethics are necessary to safeguard the interests of small scale business firms. The tendency of big business firms is always to dominate the market and drive away the small scale industries out of the market. Small scale units can establish their position and fight for their rights if the industry follows a code of ethics. V. Consumer Movement: The growth in consumer movement is also another important factor that has necessitated the need for business ethics. The spread of education and awareness among consumers about their rights has made the business community to conduct business on ethical principles. VI. Better Relations with the Society: Business ethics is needed to develop good relations between business and society. The relationship of business with society has various dimensions such as its relations with sshareholder, employees, consumers, distributors, competitors and government. Business ethics will help to promote and protect the interest to various groups. VII. Buyers Market: There has been a structural change in the concept of business. The concept of profit has been gradually taken over by consumer satisfaction. The large scale production and increased competition in the market has changed the business scene from a sellers market to a buyers market. In a changed situation, business ethics is needed to redefine the traditional concept of profit and replace it by a balance between profit and consumer satisfaction. VIII. Beneficial to Business and Society: Ethics suggests what is good and bad, right and wrong, ethical and unethical, etc; to businessmen. It also brings an element of honesty, sincerity, fairness, and human touch to

business activities. Society is also benefited by the introduction of business ethics. It ensures healthy and competitive business atmosphere, consumer and labor welfare, and improvement in social, economic and cultural values of the society. They have either direct or indirect effect on the society.

Social Responsibilities of Business:

A firm expresses its responsibility to the society by reacting in either or both of the following two ways. 1. The manner in which it carries out its own business activities 2. The welfare activities it takes upon itself as an additional function Responsibility to Share Holders: 1. To make the shareholders feel secured by protecting their investments 2. To be transparent 3. To allow them to participate in decision making 4. To ensure them good dividends Responsibility to Employees: 1. To offer employees fair wages 2. To establish better working conditions 3. To provide them fair work standards and norms. 4. To provide labour welfare activities 5. To educate the employees by adopting proper training methods. 6. To recognize and appreciate the work of the employees and reward them or to promote them. 7. To install grievance handling cell. 8. To enable them to involve in decision making. Responsibility to Consumers To improve the efficiency of the business by a) Increasing productivity. b) Improving quality. c) Smoothening distribution system. 1. To offer the products at reasonable prices. 2. To provide pre-purchase and post purchase service to the consumers. 3. To facilitate research and development to meet the customer requirements. 4. To maximize imperfections in distribution systems 5. To provide sufficient and unnecessary information about the product. Responsibility to Community: 1. To be pollution free and maintain ecological balance. 2. To invest more in research and development so as to improve the standard of living of the society. 3. To develop alternative recourses thereby preventing current resources being used from exhaustion. 4. To improve the efficiency of business operations. 5. To include in social welfare activities 6. To contribute to national effort to build up a better society If a firm full fills all the above mentioned responsibilities then it is said to be following the business ethics. But in practice such an ideal business doesnt exist. FEW ENVIRONMENTAL CONCERNS: One important factor a business man must not neglect is his responsibility to environment. The abundant natural resources are getting exhausted after 19th century due to rapid industrialization.

LAND: The worst effected are as their cattle starve and they travel even increasing distance for grazing due to industrialization and urbanization. WATER: Through people are keen in this issue by constructing dams and reservoirs the bi products and industry waste couldnt find a better discharge channel than this. Hence sure measure must be take in this context to keep the water free from pollution. DEFORESTATION: The results of deforestation for industrialization and urbanization are vulnerable. It is resulting in destruction of wild life, increase in price of wood, air production etc. HABITAT: The people who are living in forests and remote areas love their shelter and livelihood in the vent of industrialization. HEALTH: The business users must be conscious about the health of the society and behave responsibility for their health. IMPORTANT ETHICAL PRICIPLES THAT A BUSINESS SHOULD FOLLOW: 1. Do not deceive or cheat the customers by selling substandard or defective products by under measurement or any other means. EXAMPLE: Textile merchants in general clear the defective stock under the guise of discounts. 2. Do not report to hoarding, black marketing or profiteering. EXAMPLE: Management of theatres sell the tickets for higher prices during the initial days of release of a film starred by a crazy hero and heroine. 3. Do not destroy or distort competition. 4. Treasure sincerity and accuracy in advertising, labelling and packaging. EXAMPLE: Ads of automobiles in general provide false details in every aspect. 5. Do not furnish the image of competitors by unfair practices. EXAMPLE: Publishing false information about competitors, bribing the retailers etc. 6. Make accurate business records so that transparency to the share holders can be achieved. 7. Pay taxes and discharge other obligation promptly. 8. Do not form castle agreements, even informal, to control production, prices etc to the common detriment. EXAMPLE: cellular network providers will be in informal castle agreements to control the traffic. 9. Refrain from secret kick backs or pay logs to customers, suppliers, administrators, politicians etc. 10. Ensure payment of fair wages and fair treatment to the internal customers as well as external customers and share holders.

HOW TO IMPLEMENT BUSINESS ETHICS: Trade associations can be formed by the business users which should bolsters efforts of running any business with ethics. Trade association can promote business ethics in business user by Educating the members of the association and by consistent persuasion. Formulation a code of conduct for their members which should contain code of ethics.

Praising and rewarding those firms and business users who keep up the ethics in business & by publishing. Another fact which the business user must realize is the management and ownership must be separated because the owners always tend for profit maximization where as the managers case for ethics as they work for fixed salaries. Managers must be a professional who possesses systematic knowledge and skill to perform certain responsible functions with authority and who is bound by certain ethics in the use of his knowledge and skill. A professional has to have autonomy. He/she has enormous responsibilities and shall not use his/her knowledge skill and authority unscrupulously shall not knowingly do distribute to his/her customers. BUSINESS ETHICS AND PROFIT: Frequently the impression of most people is that ethics and profits are mutual, opposed to one another and that if a company is ethical, it may forget about making profits. People also frequently seem to believe that a profitable company must necessarily be unethical. This is like saying that a company can make profits only through unethical means. Nothing can be more have ethical companies made profits, but more importantly it is, only ethical companies which discharged its social responsibilities, that have survived competition and turbulent changes through the years and have contributed to social welfare and have contributed to flourished undiminished. In fact, considered from all angles, it is unethical, NOT to make profit. It is unethical, for a company, to make losses. Because, a company which can not make profits and makes losses, misutilises scarce national resources can not pay back creditors, does not make wealth for its shareholders, make huge liabilities, upsets the economy, promotes inefficiency and most importantly, can not, at any cost discharge its social responsibility, meet its welfare commitments and jeopardises the future of its employees. Such a loss- making company becomes a nuisance and a burden to the economy and has not right to exist in the market place. Moreover, it has no business to force its employees into economic insecurity, which is highly unethical. Thus instead of profits being contradictory to ethics, business ethics dictates that the first responsibility of business is to remain profitable and generate revenue fro the shareholders and the society. Rather, it is unethical, not to make profits. Hence, the first and foremost ethical obligation of every business is to make profits for its shareholders, for its employees, for its creditors and most importantly, for itself, so that it can discharge its social responsibilities and welfare commitments. But how much profits to make, the means and methods of making it, and at what cost- that is the ethical question. No business, however great or strong or wealthy it may be at present, can exist on unethical means, or in total disregards to its social concern, for very long. Resorting to unethical behaviour or disregarding social welfare is like calling for its own doom. Thus business needs, in its own interest, to remain ethical and socially responsible. As V.B. Dyes in "The Social Relevance of Business had stated"As a Statement of purpose, maximising of profit is not only unsatisfying, it is not even accurate. A more realistic statement has to be more complicated. The corporation is a creation of society whose purpose is the production and distribution of needed if the whole is to be accurate: you cannot drop one element without doing violence to facts." Business needs to remain ethical for its own good. Unethical actions and decisions may yield results only in the very short run. For the long existence and sustained profitability of the firm, business is required to conduct itself ethically and to run activities on ethical lines. Doing so would lay a strong foundation for the business for continued and sustained existence. All over the world, again and again, it has been demonstrated that it is only ethical

organisations that have continued to survive and grow, whereas unethical ones have shown results only as flash in the pan, quickly growing and even more quickly dying and forgotten. Business needs to function as responsible corporate citizens of the country. It is that organ of the society that creates wealth for the country. Hence, business can play a very significant role in the modernisation and development of the country, if it chooses to do so. But this will first require it to come out from its narrow mentality and even narrower goals and motives.

3D OF ETHICS:
UNITARIAN VIEW OF ETHICS; business is a part of moral structure and moral ethics. SEPARATISTS VIEWS OF ETHICS; Adam smith, Milton Friedman, says business in order to flourish should concentrate on its goals of profit maximization; it is influence by the government and market systems. Morality and ethics has no role in business. Society and law deals with ethics and morality. INTEGRATED VIEW OF ETHICS; ethical behavior and business should be integrated in a new era called business ethics. Intersection of business and morality and ethics. Talbot parsons views are that Business and morality are interrelated and are guided by factors such government and market system and law and society. The interrelated dimensions enhance the sense of belongingness

NATURE OF ETHICS IN BUSINESS:

Most businesses encounter two types of ethical problems known as overt and covert ethical problems. Over ethical problems deal with bribery, theft, collusion, etc. They are clear and reprehensible. Whereas covert ethical situations occur in corporate acquisitions, marketing and personnel policies, capital investment etc. They are complex, clear and have deft ethical solutions. Characteristics of Ethical Decisions in Business Ethical decisions differ according to an individual's perspective. Individual views the ethical decision in his or her frame of reference or value system. Hence, ethical decision does not have a unique solution, but a multitude of alternatives. Decisions either ethical or unethical have wide ramifications, hence affect the other situations. The consequences of most unethical decisions are ambiguous in nature. For instance, an individual seeking employment in government office bribes the officials. But the individual is uncertain whether he will be provided with the employment. Ethical or unethical decisions depend upon individual actions. Need for Business Ethics All businesses exist and operate within society and therefore they should contribute to welfare of society. To survive in the market, businesses should gain loyal customers and perform social responsibility. According to George A Steiner, the managers of the biggest companies know as a business gets larger, the public takes more interest in it because it has a greater impact on the community. The antennae of these managers are tuned to public opinion and they react to it. They seek to maintain a proper image of their company in the public mind. This leads to the assumptions of greater social responsibilities.

 Thus, business either big or small, much operate on ethical grounds and discharge their social obligations to survive in the long-run. Milton Friedman was of the view that the aim of the business is to earn profits by utilizing the resources and engaging in open and free competition, without deception or fraud. Another philosopher Theodore Levitt was of the view that social values would dominate business values if business concerned themselves with ethics.

CHAPTER 2 INDIAN ETHOS FOR MANAGEMENT:

Cambridge Advanced Learners Dictionary defines Ethos as the set of beliefs, ideas, etc. about social behaviour and relationship of a person or group while Oxford Advanced Learners Dictionary defines it as the moral ideas and attitudes that belong to a particular group or society. Indian Ethos is all about what can be termed as national ethos. Formally, the body of knowledge which derives its solutions from the rich and huge Indian system of ethics (moral philosophy) is known as Indian Ethos in Management (IEM). The salient ideas and thoughts of Indian Ethos in Management revealed by our ancient scriptures are: 1. Atmano Mokshartham, Jagat hitaya cha: All work is an opportunity for doing good to the world and thus gaining materially and spiritually in our lives 2. Archet dana manabhyam: Worship people not only with material things but also by showing respect to their enterprising divinity within. 3. Atmana Vindyate Viryam: Strength and inspiration for excelling in work comes from the Divine, God within, through prayer, spiritual readings and unselfish work. 4. Yogah karmashu Kaushalam, Samatvam yoga uchyate: He who works with calm and even mind achieves the most. 5. Yadishi bhavana yasya siddhi bhavati tadrishi: As we think, so we succeed, so we become. Attention to means ensures the end. 6. Parasparam bhavayantah shreyah param bhavapsyathah: By mutual cooperation, respect and fellow feeling, all of us enjoy the highest good both material and spiritual. 7. Tesham sukhm tesham shanti shaswati: Infinite happiness and infinite peace come to them who see the Divine in all beings. 8. Paraspar Devo Bhav: Regard the other person as a divine being. All of us have the same consciousness though our packages and containers are different.

BASIC PRINCIPLES OF MANAGEMENT AS PER ANCIENT INDIAN WISDOM AND INSIGHT:

There are 6 basic principles, which come to light in the holy books applicable in todays management world. They are: Each soul is a potential God Holistic approach Equal importance to Subjectivity/Objectivity Karma yoga Yogah Karmasu Kaushalam Co operation Each Soul is a potential God: A human being has a soul, a spark of the Divine. The divine resides in the heart of a person. The Divine means perfection in knowledge, wisdom and power. Therefore a human being has immense potential power or energy for self development. Thus human efforts can achieve even an apparently impossible goal and convert the impossible into a reality. The partnership of God and Man can bring about extraordinary or miraculous results; only if man chooses willingly to collaborate with God and actively participates in the affairs of the society by right action under his guidance and grace. He can bring about not only personal development, harmony, happiness but also prosperity of his own organization and

the society without injustice to others. Of course here, also, God helps those who help themselves. Holistic Approach: Holistic approach in Management is based on spiritual principle of unity, oneness, non-dual or Advaita concept. Under this principle of unity, the universe in an undivided whole where each and every particle is connected with every other particle. Thus, entire Humanity is ONE. Such an integrated human personality of self-developed manager and worker can assure best and competent management of any enterprise, involving collective works and efforts. It will achieve perfection or excellence in whatever sector you work. This is the ideal of Indian ethos : Atmano Mokshartham Jagat Hitya Cha. (For gaining perfection in individual life, as well as for the welfare of the world.). This is the message for all managers and workers given by the Indian ethos for management. Equal Importance to Subjectivity / Objectivity: Indian ethos for management distinguishes between subject and object. Subject is subtle and intangible. Object is concrete and tangible or visible. We have the concept of the third eye, the eye of wisdom. It can see even that which the normal two eyes cannot. It can see the intangible i.e. invisible. Human and ethical values or qualities such as courage, vision, social awareness, fearlessness, integrity, pure and clear mind, truth, etc. are subjective, subtle and intangible concepts. These subjective or subtle qualities are as important as money, materials, machines, information or data as well as human skills. Inner resources of human beings are more powerful than external resources. Creator is subjective. Creation is objective. Insight i.e., creator is more important than Outsight i.e., creation. Our body, senses, intellect, mind, etc., are objective, seen, tangible. But our soul atman is unseen, intangible, subtlest and subjective. Hence, wisdom manager/ worker are much more important and valuable than knowledge manager/ worker. Therefore, manager must develop his third eye, Jnana Chakhu , the eye of Vision intution, insight, foresight and such other divine qualities or values. This is the essence of Indian ethos for management. Karma Yoga: It is yoga of selfless service to others. Karma Yoga is all about identifying your priorities and trying to achieve them. Also, a person should have accountability i.e. he should always hold only himself responsible for whatever goes right or wrong. This brings about the union of human being with the Divine. Gita says that do your duty without ego and without calculations of gain or loss. One should believe in Nishkama Karma i.e. fruits of work should not be thought of while performing the duty. The memorable words of Gita are To work only you have the right and you have no right to the fruits of work. However, this does not mean that one should work day and night and the returns that he gets should be almost negligible. What the Gita tries to say is that let not the fruits of action motivate you as they might just divert your attention from work. When you are doing a job, put your heart and soul in to it. One has no control over the future hence never waste your present in useless dreams of future hopes and fears of present actions. WHY DO I WORK? 1. For my own salvation and personal growth. 2. For the good of the world.

The inner joy of doing something gives the doer a sense of achievement and also helps him in respecting himself more than he used to. Money is important but running behind money all the time leads to tension, stress and total loss of peace. Self-motivation can assure selfdevelopment. When work is performed without passion, hatred, arrogance and desire we have individual development and social good. Indians always had two great truths of successful, harmonious and happy life: 1. Divinity of life can be used through self-development for personal growth and also for social welfare. 2. I cannot cheat you and nature without cheating myself. Working for harmony and peace results in a sense of fulfilment. It is becoming clear that a chapter, which had a Western beginning in business management, will have to have an Indian ending. Karma Yoga is not just meant for the common man but also for leaders and managers who if act responsibly will in turn influence the behaviour of a number of people. Karma Yoga thus is a good pathway for: 1. Self-purification and Self-development. 2. Individual growth and welfare. 3. Collective growth and welfare. 4. Minimum play of passion, jealousy, hatred. 5. Team spirit and Teamwork. 6. Autonomous management, minimum control and supervision. 7. Manager acts as a Mentor. 8. Self-motivation. 9. Perfection. 10. All round happiness and prosperity. 11. Skills and values united. 12. Conflicts resolved by integration. Yogah Karmasu Kaushalam: Yoga means excellence at work. Seek to perform your assigned duty or work in an excellent manner. Kaushalam denotes doing work with devotion and without attachment i.e. without being a work-a-holic. Such detached attitude enhances its values and improves the concentration and skill of the worker. You work with smartness, determination and ability. Your head, heart and soul co-operate with your hands. You do not hanker over the fruits of action. You have no anticipation of reward, or personal gain. You become a tool of God to perform the work. Any work carried out with full concentration, dedication and with all abilities that a person has, becomes valuable and the person also becomes valuable to others as well as to society. In total quality management (TQM) Karma Yoga and Yogah Karmasu Kaushalam provide valuable contributions. Under this slogan we have one hundred percent concentration coming from within. The extrinsic incentives e.g., money, other perks, etc. play a very minor role as motivators. Co Operation: Healthy competition is a powerful motivator for excellence and success, especially business success. The idea of cut-throat competition is founded on the concept of struggle for existence and survival of the fittest. Indian ethos says that for human beings the royal road is co-operation as a powerful motive for team work. We are human beings having mind and power of discrimination. The Gita says: By co operation and mutual help all shall achieve the highest human welfare. Unity is strength. Even in the holistic approach, we stress the co-operation

integration, synthesis and team spirit for extraordinary performance, for enduring harmony and peace, because in our hearts chamber is living the pure consciousness of the Divine, i.e., Purnatman. Peaceful co-existence, harmony, not struggle is the rule. Indian insight endorses this in the management of any enterprise. Excessive competition at work can destroy many young people and our social life. Cooperation, united efforts and striving for success leads to all round prosperity and success leads to all round prosperity and success in any field of human enterprise.

INDIAN ETHOS FOR THE WORKLIFE

1. Mans Unique Inner Source: Indian ethos states that all human beings and indeed, all creatures, are but a spark of the divine. For example Indian ritual of praying to animals of various kinds as also to numerous plants, specially the tulsi plant and papal tree. This divinity in man can lead him to perfection in knowledge, wisdom, and power. Due to this divinity man has immense potential capacity for self development and self improvement. With this capacity, human beings can achieve all seemingly impossible goals and overcome even monumental obstacles and difficulties. This philosophy of Indian wisdom provides an excellent incentive to people to perform ones duty to the best of ones capacity and capability. It motivates people to function, by reinforcing that he is not working alone. 2. Holistic Relationship Between Man And Nature: According to this philosophy there is an intimate relationship between man and the universe, between man and nature. This view states that all human beings and nature are interconnected and interdependent. Thus the only law (dharma) of life is service to each other. We can see that everything in this universe depends upon somebody else for their survival. Indian ethos places emphasis on both spirit and matter. Both these are interlinked in the holistic approach. This means that man is permitted to enjoy both the internal as well as the external quality of life. 3. Cooperation With Each Other: Indian ethos stress upon cooperation amongst others at work and otherwise; integration, synthesis and team spirit for peaceful co-existence and mutual interdependence. Excessive competition, intra-organisation and inter-organisation, which is experienced by everybody in the workplace at present, have destroyed many a young mind and family lives, besides giving rise to stress, tension and frustration leading to alcoholism, excessive socialising, frightening loneliness, drug and sexual abuse and even suicide. Cooperation, mutual trust and respect, joint efforts and team spirit can lead to all round prosperity and success for everyone concerned, due to the synergistic effect of combined effort. Close interdependence, interconnection and integration of human beings, society, nature and business, can only lead to universal good of all concerned. 4. Self Management: Indian ethos prescribes that a man should be able to control himself first, before he can control anybody else. Every manager must manage himself first, before he can even try to manage anybody else. He must know himself first his strengths, weaknesses, his dreams and desires, his goals and ambitions, before he can be an effective manager. Proper control, harmony and integration between the body, mind, emotions, intellect and soul are the essence of self management. Self analysis through introspection is essential to know and discover oneself. Only when one has self knowledge, can he undertake to manage himself. Introspection involves self examination of ones own thoughts, feelings, emotions, sensations and passions, as well as ones dreams and desires, goals and ambitions, strength and weaknesses.

5. Yoga And Meditation: Yoga basically stands for excellence. Excellence at work can also be achieved through yoga. Similarly meditation stands for concentration. Meditation means to reflect upon deeply on anything, or to contemplate upon something. This method has proved immensely beneficial to people in the workplace. Meditation helps to solve many complex problems of the organisation demanding higher consciousness. Meditation results in a calm mind which helps ones to focus on problems in a more clear frame of mind. In a calm mind, one can have flashes of intuition and creativity. 6. Dharma: Dharma in Indian philosophy means duty and is almost synonymous with integrity and righteousness. Dharma stands for all those ideals, philosophies, purposes, influences, teachings and experiences that shape our character. Each organisation in Indian ethos is considered to be a living entity, having its own dharma and character. Thus an organisation is supposed to inculcate within itself, all essential human and ethical values, like courage, fairness, justice, righteousness, self discipline etc. Only when an organisation keeps within its own dharma, and does not violate it, does the organization flourishes and grows. Dharma is different and specific for everyone in the organisation. The dharma of the chairman of the company would be different from the dharma of the office clerk. 7. The Spirit Of Renunciation (The Spirit Of Sacrifice): The spirit of renunciation of worldly goods and all material possessions is advocated by Indian philosophy and ethos. The spirit of tyagais epitomised in Indian philosophy as a very great virtue. One is called upon to renounce all inner cravings and sensual enjoyment of outer objects. The tyaga philosophy is based on the belief that there is greater joy in overcoming a desire than in satisfying it. renounce all so that you may enjoy all- this is the message of isha Upanishad. The Bhagavat Gita, also advices one to renounce the attachment to the fruits of action, the rewards of work. Renunciation results in mental peace, inner growth and spiritual progress.

INDIAN VALUES FOR THE WORKPLACE:

1. The Importance Of Relationships In The Work Place: From birth, the Indian child is exposed to numerous relations, often sharing warm and close personal relationships with them. Given the close physical contact, along with overwhelming care and inordinate amount of love and concern from elders, emotional links with others becomes the core characteristic of the Indian personality profile. The individual comes to the workplace with a strong need to relate to others. Due to poor handling of this need for relationship of the Indian worker by the organisation, the worker faces an identity crisis in the absence of intimate relationships both vertically as well as horizontally. Ultimately it can lead to poor team spirit and poor team performance. So the organization should try to develop relationship amongst the individuals within the workplace which will help in team building and emotional support. 2. Respect For Elders: Indian culture puts a high value on experience and age. Indian culture teaches the individual to admire, respect and obey elders. In the organisational context, the conjunction of the abilities of older and younger people should result in corporate excellence, where the older person offers his experience and guidance to the younger and the mistakes of the younger person gets converted into learning experiences. Such a relationship within the organization proves to be of immense value. 3. Respect For Hierarchy And Status: In the Indian joint family system, a child learns very early in life, respect for hierarchical layers of people, their status within the family and their varying degree of authority. Having come through a number of strict codes of behaviour in his family, the

individual. In his work life too, conforms to the rules and regulations of the organization, displays high support for his superiors and low deviance and rebellion. If this value of tolerance and respect for seniors is well utilized in the workplace, then it results in smooth maintenance of organizational power and mutually supporting and empowering superiorsubordinate relationship. 4. Need For Security: The Indian system of joint family and the early parent-child relationships are so protection oriented, that the Indian worker puts a very high premium on security, even in the workplace, especially in his job. Though it does tend to make many individuals timid and risk avoiders, and leads to bureaucratic and delayed decision makings, it also results in smooth acceptance and implementation of decision taken as well as conformity with organisational norms and smooth functioning of the organisation. In the workplace, such a need for security results in unquestioning acceptance of superiors authority and mutual superior subordinate dependence. Such a sense of mutuality has many positive outcomes and much more work gets done without any disruption. When organisation makes employees feel safe and secure on the job, then employees are much more motivated to put in their best efforts. 5. Rights And Duties: Rights have no place in the Indian philosophy. This however does not imply that the rights of individuals are neglected or ignored. When everyone discharges their duties as prescribed, everyones rights too get automatically fulfilled. With the correct performance of duties, with the emphasis on internal attributes of the worker, rather than on the externalities of the work situation, a wiser worker is developed where the quality of work life gets fulfilled within the mind of the worker and not from external factors.

QUALITY OF WORKLIFE IN INDIAN PHILOSOPHY:

Quality of work life does not only depend on ones position in the organisation, nor on the trappings of power and prestige that comes with the job. Quality of work life is more of a mental attitude; the inner satisfaction of having done ones work according to the best of ones ability and capacity, of not having to fulfil ones ego or false sense of pride by resorting to petty office politics and power manipulations, by achieving a sense of joy from a job well done. According to Indian philosophy, the quality of ones work life does not depend on the external environment or on the incentives of the job but depends on the internal environment. Quality of work life is much more a deeper feeling that provides one with the motivation not only to perform the job well, but also to excel at it - to achieve self actualization and to grow and develop on the job. It is to become in the process of doing ones job, a better person a better human being. When the opportunities for achieving all these are present on the job and in the workplace, then ones quality of work life is said to be high. Quality of work life provides one with a deep and satisfying feeling that one is doing something worthwhile, that one is creating value and excellence for ones company, one is contributing to the general welfare of humanity, and that one is making some changes to the lives of those within ones area of influence, and that ones presence in the company is making some difference to the company.

THE CONCEPT OF ETHICS IN WORKLIFE ACCORDING TO BHAGAVAT GITA:

Arjuna got mentally depressed when he saw his relatives with whom he has to fight. (Mental health has become a major international public health concern now). To motivate him the Bhagavad Gita is preached in the battle field Kurukshetra by Lord Krishna

to Arjuna as counseling to do his duty while multitudes of men stood by waiting. It has got all the management tactics to achieve the mental equilibrium and to overcome any crisis situation. The Bhagavad Gita can be experienced as a powerful catalyst for transformation. Bhagavad gita means song of the Spirit, song of the Lord. The Holy Gita has become a secret driving force behind the unfoldment of one's life. In this modern world the art of Management has become a part and parcel of everyday life, be it at home, in the office or factory and in Government. In all organizations, where a group of human beings assemble for a common purpose irrespective of caste, creed, and religion, management principles come into play through the management of resources, finance and planning, priorities, policies and practice. Management is a systematic way of carrying out activities in any field of human effort. Its task is to make people capable of joint performance, to make their weaknesses irrelevant, says the Management Guru Peter Drucker. It creates harmony in working together equilibrium in thoughts and actions, goals and achievements, plans and performance, products and markets. It resolves situations of scarcity, be they in the physical, technical or human fields, through maximum utilization with the minimum available processes to achieve the goal. Lack of management causes disorder, confusion, wastage, delay, destruction and even depression. Managing men, money and materials in the best possible way, according to circumstances and environment, is the most important and essential factor for a successful management. Management guidelines from the Bhagavad Gita: There is an important distinction between effectiveness and efficiency in managing. * Effectiveness is doing the right things. * Efficiency is doing things right. The general principles of effective management can be applied in every field, the differences being more in application than in principle. The Manager's functions can be summed up as: * Forming a vision. * Planning the strategy to realize the vision. * Cultivating the art of leadership. * Establishing institutional excellence. * Building an innovative organization. * Developing human resources. * Building teams and teamwork. * Delegation, motivation, and communication. * Reviewing performance and taking corrective steps when called for. Thus, management is a process of aligning people and getting them committed to work for a common goal to the maximum social benefit - in search of excellence. The critical question in all managers' minds is how to be effective in their job. The answer to this fundamental question is found in the Bhagavad Gita, which repeatedly proclaims that "you must try to manage yourself." The reason is that unless a manager reaches a level of excellence and effectiveness, he or she will be merely a face in the crowd. Old truths in a new context. The Bhagavad Gita, written thousands of years ago, enlightens us on all managerial techniques leading us towards a harmonious and blissful state of affairs in place of the conflict, tensions, poor productivity, and absence of motivation and so on, common in most of Indian enterprises today and probably in enterprises in many other countries. The modern (Western) management concepts of vision, leadership, motivation, excellence in work, achieving goals, giving work meaning, decision making and planning, are all discussed in the Bhagavad Gita. There is one major difference. While Western management thought too

often deals with problems at material, external and peripheral levels, the Bhagavad Gita tackles the issues from the grass roots level of human thinking. Once the basic thinking of man is improved, it will automatically enhance the quality of his actions and their results. The management philosophy emanating from the West is based on the lure of materialism and on a perennial thirst for profit, irrespective of the quality of the means adopted to achieve that goal. This phenomenon has its source in the abundant wealth of the West and so 'management by materialism' has caught the fancy of all the countries the world over, India being no exception to this trend. My country, India, has been in the forefront in importing these ideas mainly because of its centuries old indoctrination by colonial rulers, which has inculcated in us a feeling that anything Western is good and anything Indian, is inferior. The result is that, while huge funds have been invested in building temples of modem management

CHAPTER 3 VALUE ORIENTED HOLISTIC MANAGEMENT:

The most valuable human possessions are health, harmony, happiness, wisdom, and above all character reflecting ethical and human values. When these values are manifested in your thoughts, speech and actions, you are called a noble and enlightened person. As we think sincerely and constantly we become. Our actions and behaviour reflect our ideas and feelings. We work not for name, fame, money, power and status but for greater worth, for cultivating values, for building up strong character, for wisdom so that our intrinsic values enhances. True greatness is not measured by tangible or extrinsic values such as name fame, etc. but always greatness in life is to be pure, kind, true, selfless. Health is more important than wealth. Character is most important than money. VALUES: Human and ethical values constitute the wealth of characters. Values express dharma or divine nature as understood in the East, particularly in the Indian ethos and insight and the ideas of integrity as understood in the West. Integrity: Integrity is wholeness, goodness, courage, and self-discipline to live by your inner truth. Wholeness: Wholeness implies totality, soundness, perfection and completeness. In the West, spirit in Wholeness is given only a slight reference. It is nearly forgotten. In all of ours hearts chamber lives the unworshipped God. We are not aware of the divine presence within thought the divine is constantly looking at the person. Our ego has become the pretended ruler. Ego is the false notion of our mind, because it is ignorant of the reality. Goodness: It covers all essential values such as honesty, morality, kindness, fairness, charity, truthfulness, generosity etc. we need goodness in our thoughts, our speeches, and our actions. Be Good. Do Good leads to purification of thoughts, talks and actions associated with good thoughts. Good things do not happen easily. You have to make them happen. Courage: In the world of management, courage points out acts of bravery, e.g. deciding not to conceal something one knows, and needs to be expressed openly. Courage is telling the truth in the face of danger. You have the guts to go ahead, do something which is risky. Self-discipline: Self-discipline and self-control indicates that the soul is the boss who takes control of the mind and directs the mind and the senses to move on the journey to reach the goal known to the master. When the soul, the individual consciousness, wakes up, we have self-discipline and self-control to deal with life. The quality of life will now be different. That quality of life will give you greater harmony, happiness and moderation. Please remember that we need discipline and courage together to reach our objectives in time. Living by Inner Truth: Living by inner truth or by inner mind, which is the right instrument within us but which is not known to us unless we go within, may be regarded as the last ingredient of integrity. It is the most important of all. Inner mind or truth communicates through faint whispers, intuitive thoughts, feeling buried deep within us. Each one of us possesses this fine instrument and has the capacity to call it forth. We need practice to tap this cache. It is rediscovery of ones subtle but true awareness which generally lies in the secret hiding place. We must turn inwards to interact with our

inner mind and live by inner truth as per its direction. The voice of inner mind can be heard only in silence. To live by inner truth at work amounts to remain yourself incorruptible, clean and inviolable in this world, which at present is invaded by total crisis oh human and ethical values. In the business world we have kickbacks, double dealings, shady behavior and all forms of corruption and fraudulent dealings. Corruption is world-wide. Let your mind be ruled and guided by your Conscience. DHARMA: Dharma is the law of right living the observance of which secures the double object of happiness in your own life and also the happiness in life of others. It stands for all those ideals, purposes, influences, institutions, and the ways of life and conduct that shapes the character and evolution of man both as an individual and as member of the society. Dharma is the Indian Concept almost synonymous with integrity. However it has a wider scope. It includes openly spirit, righteousness (godliness) and fearlessness. Let us review these three divine elements. Spirit: Man is the soul. He is essentially divine. Dharma directly evolves from spirit. Integrity seems to shy away from it. There is no shyness regarding spirituality in dharma. Dharma is spirit in Indian Ethos. The Western society is secularized. Indian society has a happy union between spiritualism and materialism. Although integrity honors all moral values, it gives only lips sympathy to the spirit through the notion of wholeness. Integrity defines wholeness leaving out spirit. It is the spirit which can bring out a true sense of wholeness. It is the spirit which makes us whole (Poornatva). The inclusion of dharma is like rediscovering a vacant upstairs room in ones heart chamber. The spirit, our boss, lives there. We imagine that spirit is not within us and the upper floor seems to be empty. . Indian ethos openly recognizes the spirit as our boss and declares Do right, do good, and be good and the whole chamber of our heart shines with the Light of Consciousness. Righteousness: Dharma demands right action. Do the right thing. In dharma, not mere action but rightness is given great emphasis. Fearlessness: integrity means courage. Dharma stresses fearlessness. When the divine is present within you and you experience his presence, what is there that can touch you or whom you need fear when He is offering His protection to you? Even a little of His awareness will carry you through all risks and uncertainties. Remember that the Divine Touch is enough to convert difficulties into opportunities. Of course, you should know the truth about yourself. Dharma is the inner law of ones life. Follow your Dharma and it will protect you or stand by you. We have to comply with our own dharma. Nobody has ever violated dharma without ultimately courting disaster. Adharma ultimately brings certain irremediable fall. Each one has his/her own Dharma. The idea of an individuals own dharma is the insight that shines through Indian insight. The moment we are unconscious or ignore that inner law, our life is paralyzed. We feel isolated. Or degeneration is sure. No wonder we feel missing and incomplete. Dharma is ethics and spiritualism combined.

Moral and Ethical Values:

The mental contents of a good person are called moral and ethical values. This is also called Daivi sampati or divine qualities. Values are also called gunas. Some of the values are: Fearlessness

Courage Purity of mind and heart Integration of thought, action and behaviour Generosity Non-violence Modesty Humility Integrity Charity Loyalty Calmness

A manager/worker with these values can mobilize his energies as well as of those around him and canalize in to productive purposes to accomplish greater tasks. The proof of sincerity and seriousness is a strong emphasis on integrity of character in a job. A man might have too little knowledge, perform poorly, lack judgement or analytical ability and yet may not do much harm. But a man who lacks character and integrity may cause much greater harm. E.g. A salesman who does not possess good communication/ negotiating skills may at the most cause low sales. But a salesman who makes tall claims, false promises with regards to the product will cause disrepute the organization; which will be fatal to the company in the long run.

Significance of Values:
Our effectiveness at work depends on our moral and ethical values. These human values support established business values such as service, communication, excellence, credibility, and innovation etc. these human values help self-development. Even the managerial functions of direction, control, supervision etc become much easier, thus leading to goodwill and harmony in the organization. We need to look at success with a holistic view. Outer fulfilment must be combined with inner fulfilment. Inner fulfilment relates to our spiritual, mental and emotional enrichment. While the outer achievement concerns meeting set targets, using your talents to the fullest extent etc. One would be very pleased at being appointed as the CEO or MD of a company but if you cannot spare time for your family or cant enjoy a peaceful Sunday with your kids then your success is not complete.

Golden Rule of Ethics:

Earlier, the business community and society at large neglected ethics. But over the years people have realized its importance for the welfare of an organization. The golden rules, which find its mention in the Bible, are: 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 that if done to you, would cause harm to you. In a nutshell, treat others, as you would like to be treated. So if you do not want to be spoken to rudely then you must not speak rudely. So if dont want to use flawed goods you must also refrain from adulteration.

Values and Skills:

Values help us to become while we need skills to do.

Values act as a base for the skills and hence proceed skills in their importance. Values are internal deal with purity of mind and soul. While skills are external deal with functioning well at job. Values bring about universal good (software aspect). Skills bring about achievement of tasks (hardware aspect). Values are enduring and do not change with time. But skills have to be updated regularly and change with passage of time. E.g. excellent service to the customer may be a value of the company. Personal visits may be the method used by the company. With the advent of technology, the company may use personalized e-mails etc. here the skill is changing but the service orientation (value) remains constant.

Values and the Work Place:

The modern world has brought about many developments at the workplace. This has lead to a lot of comforts, luxuries and money in the hands of people. But it has also lead to moral, ethical and spiritual degeneration. Enterprises worldwide have been disregarding the importance of values. Cheating, corruption and malpractices are rampant in the companies. Fortunately we are gradually awakening to redeem ourselves. More and more corporate are awakening to the fact that it is not necessary to indulge in malpractices to make money. Illustrious men like Narayan Murthy are setting examples that ethical management practices can yield results. Infact, even today when we think of great people like Jamshedji Tata we do not associate him only with his steel plant but the entire township of Jamshednagar and the various Tata hospitals. Values and ethics must be an integral part of management and work culture. We have created unwanted stress and unrest in the society. An organization that cares for its people cannot ignore such unhealthy developments and must take steps to see to it that our value system is in place.

Human Response Management:

People constitute the greatest dynamic inputs in any organization. They are the center and must be regarded as the vital and integral part of organization. Every individual is the representation of a divine essence. People should be developed not only in skills but also in moral, ethical and spiritual values. Morality and rationality are combined at the same time in HRD.

Why do we need value-based holistic management?

Let us see two examples to prove that value-based holistic management is essential and there is no choice: 1. Man machine equation: In the earlier times man was treated as any machine in the organisation, who could be hired and fired whenever the owners felt. Their feelings and emotions were nil for the organisation. It is due to Behavioral Scientists that this situation has considerably improved. Today there are various concepts like Performance Appraisal, Motivation, Job Satisfaction, Job Rotation, etc which draw a line of difference between a man and a machine. Valueoriented management will recognize the divine model of man. This will surely help in eliminating the man machine equation. Human values for managers will honour the core of humanness and bring about harmony and balance between values as ends. We will evolve a judicious combination between values and skills. 2. Prevention of exploitation of mother nature: Science and technology brought about phenomenal industrialization at the cost of indiscriminate and ruthless exploitation of Nature. It is wrongly assumed that man is having a

birthright to draw on resources supplied by nature at his will. Under the holistic approach man and Nature are deeply interconnected and interdependent. Hence, there is no right to exploit Nature for purely selfish motives. As one man exploiting another man is bad so is exploiting Mother Nature bad. Many organisations knowingly and unknowingly pollute the environment. Value-based holistic management alone can prevent this exploitation of Mother Nature.

Value driven management:

Effectiveness in performance of managers and workers is a function of values and skills together. A good manager has strength in both values and skills. We have management by consciousness. The purity of mind and heart guides the reasoning and intellect in all managerial functions particularly in HRM. Every effort must be made by the top management in the organization to inculcate values. Values relate to the internal domain of business i.e. interactions with employees, customers, suppliers, creditors, public, etc. In the corporate mission or creed we describe values, vision, goals and objectives cherished by the organization. Values should be an integral part of corporate mission, objectives. They should be expressly mentioned in the mission document. Value- orientation must be a program-based activity. It is a long-term activity with the constant follow-up and motivation through management support. The members of the management team and the union leaders of workers must be regularly exposed to spiritualization, satsang of spiritual leaders, seminars and workshops, meditation, introspection, common prayers, etc. the organization should inculcate the spirit of giving rather than taking in the work life. The individuals are encouraged to subdue their ego, overcome to some extent selfishness, anger, jealousy, greediness, hatred, partiality and such other undivine elements. The employees must strive internal developments rather than only specialize in skills and proficiency. They should sharpen their mind and intellect. Purer heart and mind would influence and sustain enduring values as a basis for improved effectiveness in the organization. Let us note that success of Japan is based on values familiar to Indians, using spiritual education and practices, example concentration, meditation, lectures of spiritual leaders, mind stilling, intuition, etc., to neutralize the evil effects of reckless industrialization and to synthesize the human values into management and organization. Japan has combined spiritualism and materialism and adopted value driven holistic approach in management and organization. Let the global management adopt this.

Indian Culture and Wisdom:

The long term viability and progress or the sustainable all round development of a nation depend not so much on its material, ecological or technological resources but primarily in its human resources having ample potential energies- spiritual and psychological resources of our people. The greatest of the spiritual and psychological resources of any nation are its people who are conveniently forgotten or ignored. The essential and enduring part of a collective being or a nation is not its economics, commerce, ecology or politics which form only its outer body but its Insight, Ethos and Culture, which are the expression of its Mind and Soul. Just as the outer material and economic progress and well-being of a nation depends on a scientific preservation and harnessing of the material and biological resources of its ecological heritage; the inner evolution and progress of a nation depends on the enlightened preservation and harnessing of its human and cultural heritage. Fortunately, in India we have

the immense potential of our insight, and culture for motivating, managing and leading our abundant human resources.

THE ETHICAL AND SPIRITUAL VALUES: the Driving force for Achieving Excellence:
There are two levels of human consciousness: Lower consciousness operating through our five senses in contact with the external world. This is also called the lower mind. Higher consciousness or higher mind which is the door to get the vision of the spirit or pure consciousness. This is also called the inner mind. We are in touch with this inner mind only in silence. It can commune with the Divine within us. It can hear the small voice in the form of inspiration, or intuitive purified mind. Traditional methods of purification of mind/heart are: Karma Yoga Bhakti Yoga Jnan Yoga Raja Yoga
METHODS OF HEART/MIND PURIFICATION Managerial Effectiveness

Value Orientation Pure Mind

Jnana Yoga

Raja Yoga

Bhakti Yoga

Karma Yoga

The above chart indicates the four traditional methods of mind purification. Jnan Yoga- Path of knowledge Raja Yoga- Path of Mind Control Bhakti Yoga- Path of Devotion Karma Yoga- Path of Action All these help to develop a pure mind. Pure mind is the origin of all values. Values emerge only from a purified mind i.e. from the inner mind or higher consciousness. This is a key factor for managerial effectiveness. ]

CHAPTER 4 The Legislation of Ethics:

Numerous laws have been enacted to protect employees against what society perceives as unethical behavior in the workplace. These laws are administered by the United States Department of Labor. Generally, these laws reflect the ethical standards of the majority of society. An example is the Americans with Disabilities Act of 1990 (ADA). According to the ADA: "No covered entity shall discriminate against a qualified individual with a disability because of the disability of such individual in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment." Most citizens would agree that it would be unethical to deny employment or promotion to a disabled applicant, solely on the basis of that disability, especially when that disability would not affect their work performance. Legislators reacted and have enacted the ADA in order to make it illegal to engage in such discrimination. Yet even with this legislation, the Supreme Court continues to evaluate provisions of the ADA and its definition of disability.

Ethics Regulations for Federal Employees:

Executive branch employees are subject to statutes and regulations commonly referred to as "ethics" standards. Through these statutes, the government has established legally enforceable rules on ethical behavior. The two basic sources of these standards are the criminal conflict of interest statutes and the administrative standards of ethical conduct. Chapter 11 of Title 18, United States Code is an example of a Criminal Conflict of Interest Statute. The conflict of interest statutes prohibit a Federal employee from engaging in certain types of activities that would place the employees own personal interests above the Federal Governments interests. According to this Statute, a Federal employee:

Is prohibited from acting in an official capacity on a matter in which the employee (or certain others) has a financial interest; May not represent the interests of private parties in matters in which the United States is a party or has an interest; Is prohibited after leaving the Government from engaging in certain activities on behalf of other persons or entities; May not accept private compensation for performing official duties.

The Code of Federal Regulations Part 2635 is an example of Administrative Standards of Ethical Conduct Regulation. The standards of conduct regulation establish principles of ethical conduct for employees within the executive branch. The regulation not only identifies the principles but also provides easy to understand examples of how the principles apply. The standards of conduct cover such topics as:

gifts from outside sources gifts between employees conflicting financial interests impartiality in performing official duties seeking other employment misuse of position outside activities

RELATIONSHIP BETWEEN LAW AND ETHICS: INTRODUCTION:

A relationship exists between law and ethics. In some instances, law and ethics overlap and what is perceived as unethical is also illegal. In other situations, they do not overlap. In some cases, what is perceived as unethical is still legal, and in others, what is illegal is perceived as ethical. A behavior may be perceived as ethical to one person or group but might not be perceived as ethical by another. Further complicating this dichotomy of behavior, laws may have been legislated, effectively stating the governments position, and presumably the majority opinion, on the behavior. As a result, in todays diverse business environment, one must consider that law and ethics are not necessarily the same thing. Law can be defined as a consistent set of universal rules that are widely published, generally accepted, and usually enforced. These rules describe the ways in which people are required to act in their relationships with others in a society. They are requirements to act in a given way, not just expectations or suggestions to act in that way. Since the government establishes law, the government can use police powers to enforce laws. The following chart defines the terms in the definition of law above. Consistent If two requirements contradict each other, both cannot be termed a law, because people cannot obey both. Universal The requirements must be applicable to everyone with similar characteristics facing the same set of circumstances. Published The requirements have to be published, in written form, so that they are accessible to everyone within the society. Accepted The requirements have to be generally obeyed. Enforced Members of society must be compelled to obey the law if they do not choose to do so voluntarily. The word ethics is derived from the Greek word ethos (character), and from the Latin word mores (customs). Together they combine to define how individuals choose to interact with one another. In philosophy, ethics defines what is good for the individual and for society and

establishes the nature of duties that people owe themselves and one another. The following items are characteristics of ethics: Ethics involves learning what is right and wrong, and then doing the right thing. Most ethical decisions have extended consequences. Most ethical decisions have multiple alternatives. Most ethical decisions have mixed outcomes. Most ethical decisions have uncertain consequences. Most ethical decisions have personal implications. It is important to note that there is also a difference between ethics and morality. Morality refers both to the standards of behavior by which individuals are judged, and to the standards of behavior by which people in general are judged in their relationships with others. Ethics, on the other hand, encompasses the system of beliefs that supports a particular view of morality.

The Relation between Law and Ethics

Ethical values and legal principles are usually closely related, but ethical obligations typically exceed legal duties. In some cases, the law mandates ethical conduct. Examples of the application of law or policy to ethics include employment law, federal regulations, and codes of ethics. Though law often embodies ethical principles, law and ethics are far from coextensive. The law does not prohibit many acts that would be widely condemned as unethical. And the contrary is true as well. The law also prohibits acts that some groups would perceive as ethical. For example lying or betraying the confidence of a friend is not illegal, but most people would consider it unethical. Yet, speeding is illegal, but many people do not have an ethical conflict with exceeding the speed limit. Law is more than simply codifying ethical norms. Establishing a set of ethical guidelines for detecting, resolving, and forestalling ethical breaches often prevents a company from getting into subsequent legal conflicts. Having demonstrated a more positive approach to the problem may also ensure that punishment for legal violations will be less severe. Federal sentencing guidelines passed in 1991 permit judges to reduce fines and jail time for executives proportionate to the ethical measures a company has taken.

ROLE OF GOVERNMENT OF INDIA IN ENFORCING ETHICAL BEHAVIOUR:

In India the central or state government has a great impact on how business conducts their affairs. In any country there is government interference in one or the other way. The government determines the conditions under which persons or associations may enter certain lines of business as in granting charter, licence or franchise.

The government may regulate or assist the conduct of economic ventures of many kinds, once they are under way. This includes control that merely lays down general standards and prohibitions and those that interfere with matters that may be considered managerial. Public control ma extend to the results of business operation as in the limitation of publicutility profits, ceiling on dividend and imposition of excess profit taxes on business generally. The government also controls the relationships between the various segments of the economy, the purpose being to settle conflicts of interests of legal rights and to prevent as undue concentration of economic power in one place. The government may sometimes take upon itself to initiate actions for public good. e.g. when private enterprises fail. the government takes over such enterprises so that their services continue to reach people and that their employees do not become unemployed. The government also takes over private enterprises when it wastes natural resources and when they fail to consider themselves as trustees of public good and abuses its power. The Indian Constitution-The preamble of the constitution states that attainment of social, economic and political justice and equality of status and of opportunity should be among the most important basic guiding principles of the functioning of the state. The constitution assures citizens as their fundamental right, the freedom to practice any profession, carry on any occupation, trade or business. Some of the directive principles which promote ethical behaviour are cited below1. The state shall strive to promote the welfare of people by securing and protecting as effectively as it may, a social order in which justice, social, economic or political shall form all the institutions of national life. 2. The state shall strive to minimise the inequalities in income and endeavour to eliminate inequalities in status, facilities and opportunities, not only among the individuals but also amongst groups of people residing in different. 3. The state shall-in particular direct its policy towards securingThat is citizen, men and women equally, has the right to adequate means of livelihood. That the ownership and control of the material resources of the community are so distributed as best for common good That the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment (loss) That is equal pay for equal work for both men and women. That the health and strength of workers, men and women and the tender age of children are not abused and that citizens are not forced by economic necessity to enter a vocation unsuited to their age and strength. 6. That children are given opportunities to develop in a healthy manner and in conditions of freedom and dignity and that the children and youth are protected against exploitation and against moral and material abandonment.

7. The state shall with the limits of its economic capacity and development make effective provision for securing the right work, to education and to public assistance in cases of unemployment, old age, sickness and disablement (article 41). 8. The state shall make provisions for securing just and humane conditions of work and for maternity relief (article 42) 9. The state shall endeavour to protect and improve the environment and to safe guard the forests and wild life of the country (Article 48) 10. The state shall take steps to secure participation of workers in management of undertakings, establishments of other organisations engaged in any industry (article 43-A) The above mentioned directive principles clearly shows that the government has considerable influence upon business behaviour if it has to attain the goals established by the constitution.

INDIAN BUSINESS LAWS AND THEIR IMPACT ON ETHICAL BEHAVIOUR:

The government has armed itself with numerous laws relating to business. The directive principles of state policy of the Indian constitution also provide enormous scope for government intervention in the functioning of businesses. All laws relating to business in India, can be broadly classified into 2 categories1. Business laws 2. Labour laws

BUSINESS LAWS.
Some of the important business laws which aims to regulate business behaviour are 1. The Industries development and regulation actThis Act enacted in 1951 with the main objective of giving practical effect to the industrial policy, gave the government sweeping powers to control industries. It empowers the central government to develop and regulate the industrial sector in India, through suitable and appropriate means. However this has benefited the richer section than the poorer section of the society. A report on the operations of licensing under this Act by the planning commission in 1966 stated that1. The working of the planned economy had contributed to the growth of big companies 2. The working of the industrial licensing system enabled the large industrial houses to obtain a disproportionate large shares of the license issued. 3. The operation of the industrial licensing system was not successful in achieving the objective of regional dispersal of industries. 4. The large industrial houses were the major beneficiaries of public financial institutions. Thus this Act has not only failed to compel business to behave ethically, it has on the other hand encouraged unethical behaviour of big business house.

Thus many controls of the government which were sought to be enforced through legislation were no doubt introduced with good intentions, but they not only failed to achieve the objectives but resulted in much unethical behaviour particularly big business houses.

Foreign Exchange Regulation Act, 1973:

This Act applies to all citizens of India, outside India and to branches of companies registered in India. The main objective of FERA is the conservation of the foreign exchange resources of the country and the proper utilisation thereof in the interests of the economic developments of the country. Though FERA was started with a noble objective and patriotic feeling, its implementation has not resulted in the desired effects. Foreign investments and collaborations have been sanctioned in many cases which have had no relevance to national priorities and development needs. This Act has severe criticisms. It has also been said to have a potent source of corruption, black money, scams and have widened the trade gap. Instead of encouraging ethical behaviour, its imposition has resulted in unethical behaviour not only in the case of companies but also in the case of individuals.

The Companies Act, 1956:

This Act provides for a greater government control over the formation and management of companies. Some of its significant objectives which is considered ethical are 1. Minimum standard of good behaviour and business honesty in company promotion and management. 2. Recognition of the interest of shareholders and creditors 3. Fair and true disclosure of the affairs of the company. 4. Higher standard of accounting and auditing. 5. A provision for investigation into the affairs of any company managed in an oppressive manner to a minority of the shareholders. 6. Enforcement of the performance of duties by the management of the company. However there exist many provisions in the companies Act which are subject to manipulations. Companies resort to unfair trade practices while disclosing their affairs and this Act has been helpless to detect and punish such offences.

The Monopolies and restrictive Trade Practices Act, 1969:

The main objective of this Act is to control the concentration of economic power and monopolies and to prohibit monopolistic restrictive and unfair trade practices. The act has restricted and stopped many misleading advertisements, adulteration and all sorts of false trade practices. But some of the problems were that there was a considerable delay in disposal of cases under MRTP ACT. It has been ineffective in preventing economic concentration.

The Essential Commodities Act, 1955:

It was set to provide in the interest of the general public, control of production, supply and distribution of trade and commerce in certain commodities. The government had listed

specific commodities as essential commodities. The effect of this Act is that it had led to wide spread unethical behaviour in the society. Shortage of essential commodities has led to black marketing and the generation of considerable sums of black money had led to the creation of a parallel economy. It also led to corruption in bureaucracy which was invested with discretionary powers. This act also led to unethical behaviour and hardly proved effective in controlling essential commodities. Some of the other laws which provide the government with sweeping powers to control business behaviour are 1. The capital issues control act 1956 2. The securities contracts act 1956 3. The imports and exports act 1947 4. The Indian Patents Act.1970 5. The partnership Act.1932 6. The sale of goods act 1930 7. The consumer Protection act 1986 and others.

LABOUR LAWS:
Labour laws represent a community's attitude to the labour class. The basic philosophy of labour legislation is to ensure regulation of employee-employer relationship to prevent exploitation of employees and, more positively to ensure social justice, labour welfare, needs of national economy and international uniformity as far as possible without compromising national interest and ignoring social problems. The legislation is fundamentally based on the principle of social justice where the workmen is not exploited labour legislation can be classified under the following categories1. Laws relating to weaker Section (ie, children and women) a. The Factories Act, 1948 b. The Mines Act, 1952 c. The Plantation Labour Act, 1951 d. The employment of children Act, 1938 e. Maternity Benefit Act, 1961 2. Laws relating to specific Industries 3. Laws relating to Specific Matters3. 1.Wages.

a. The payment of wages Act, 1963 b. The minimum Wages Act, 1948 c. The Equal Remuneration Act, 1976 3.2Social Securitya. Workmen Compensation Act, 1923 b. Retrenchment Benefit Act c. The payment of Bonus Act, 1965 d. Employee State Insurance Act, 1948 e. Fatal Accident Act, 1955 3.3 .Bonded labour a. Bonded Labour system(Abolition)Act, 1976 4. Laws relating to Trade union Act, 1926 Industrial dispute Act, 1947 The workmen compensation Act, 1923

CHAPTER 5

RELATIONSHIP EXCELLENCE:

BETWEEN

ETHICS

AND

CORPORATE

Organisations operate not just to survive but to excel(centres of excellence, market leaders, zero-defect products etc). They strive to achieve perfection and excellence in any field and can be termed as the basis of ethics. Dr.M.B Atherya(management guru) Values like atithi devo bhava(the customer is god) guna(quality) atmanirbharta(self-reliance) helps in survivng competition caused by globalisation and liberalisation leading to corporate excellence. Also values mof kanashah artham saadhayet says that one should earn wealth by saving every bit possible and this is vital to increase organisational productivity. This is true for an organisation regarding the scarce natural resources as it is for individuals.Comapnies can achieve excellence through ethical means through shloka :udyogam purusha lakshanam(industiousness is the hallmark of a person).Companies can achieve excellence through the attitude of seva or service to the community and to the customer. The companies can achieve corporate excellence by following bhagavad gita value of parasparam bhavayantah which means mutual concern. Mr.Anil Sachdeva,M.D Eicher consulatny services- It is possible to become a leading company if we excel in quality in all respect and do more with less.He also remarked knowing our unlimited potential is the essence of indian ethos. Since the flow of products in the market is more, a shift from customer-creation to customer retention is given importance.Business ethics is the source behind quality products,smooth production processes,fair employment practices,operational transparency,concern for customers as well as shareholders and for social welfare.All these factors leads to corporate excellence. Making mistakes or being less than excellent is certainly not unethical but individuals in the seat of authority and responsibility do have a moral obligation to perform to the best of their capacity and capability and avoid making costsly mistakes.

CORPORATE MISSION STATEMENT:

An organisation mission consists of its long term vision of what it seal to achieve and the reason for its existence. This mission is denoted through its mission statement audit contains an account of how it wishes to serve the society and contributes to social welfare. It incorporates the ethical values that the organisation strives to use in order to achieve corporate excellence.

This mission statement acts like the constitution of the company, the solid expression of the companys vision and values. The process of writing out the mission statement is as important as having the mission statement because it forces the company to think about its priorities deeply, carefully and to integrate its activities with the beliefs. It reflects the deepest values, unique talents and potential for achieving corporate excellence. A clear corporate mission statement makes the employees committed and creates unity among them, it also forms a guideline for governing themselves and there will be no need to direct and control for they work for corporate excellence. An effective goal focuses on results rather than activity. It identifies where the organisation wants to be and determines where it is now. It depicts the organisations business character and the kind of organisation i strives to be. For the mission statement to become more meaningful, everyone should participate in its formulation and not just its strategy planners or the top management. Only then it can be effective. If an organisation only focuses on commercial performance, it may run the risk of becoming inhuman and socially irresponsible when it has to face an ethical dilemma.

CODES OF ETHICS:
Private Companies, organizations, and associations frequently establish their own Codes of Ethics. These may be formally written or understood. Although the government does not enforce these Codes, they are enforced internally. Violation of the Codes alone can, in some instances, be grounds for termination. The following tables show examples of such Codes. I will conduct all business dealings with fairness, honesty and integrity. I will protect all information and resources available to me from loss, theft, and misuse. I will avoid even the appearance of conflict of interest or any other impropriety. I will treat my fellow employees fairly and with dignity and respect. I will help create and sustain an atmosphere conducive to the spirit of this code.

Clearly, there is a relationship between law and ethics, and this relationship is important in management. Managers must evaluate not only what is legal, but what they, their employees, and society consider ethical as well. Important here is that companies must also consider what behaviors their customers will and will not accept. The news is full of stories regarding the ethical issues with which companies are being confronted, such as the practices of Nike, as outlined above. No company wants to be forced to defend itself over ethical issues involving wages, the environment, working issues, or human relations. Managers play a vital role in a company's legal and ethical performance. It is in part their responsibility to ensure that their employees are abiding by Federal, State, and Local laws, as well as any ethical codes established at the company. But most importantly, the managers must provide a positive example to their employees of proper behavior in light of laws and ethical codes. Certainly, policies and procedures will never be developed to satisfy everyone, but the establishment of Codes of Ethics will at least provide a framework for ethical behavior, and allow customers to evaluate the type of company with whom they are doing business. With

this knowledge, employees and customers must decide whether or not they are willing and able to conform to these Codes, as well as to the laws that have been enacted. Managers cannot simply limit their decisions to following the law. They must also consider the ethics of their employees and customers.

A code of ethics is a statement of the norms and beliefs of an organisation. Norms are the standard of behaviour, expected from everyone in the organisation when confronted with a particular situation consisting of ethical dilemmas. It encourages people to think in a particular way which leads to positive attitude and consequently to the wanted behaviour. The code of ethics generally make an employee of the organisation aware of his or her obligation and the moral duties towards the organisation, but these codes cannot help to solve managerial; dilemmas between economic and social performance. The organisation culture governs peoples behaviour in the direction where they strive to achieve and create excellence in corporate life. An organisation where its culture consists of top managements commitment to good business practices, open communication, shared values, beliefs and norms for everyone within the organisation stands to benefit from corporate excellence. The corporate culture consciously created, must be value-based Top management must continuously communicate these values to the lower levels in the organisation. Values produce a sense of direction for the employees and help to guide their day to day behaviour.

ORGANISATION CULTURE:
Culture refers to the set of values, dominant beliefs and guiding norms of behaviour for its employees. It denotes the climate, the atmosphere, the mental attitude shared by the members of the organisation. A strong culture provides a basis for productive ethos and ethical behaviour of an organisation. such a culture spearheads the companys commitment to creating excellence-through zero defect products, excellent customer support service, quality, reliability, employee welfare commitment etc. The organisation culture plays a dominant role in influencing employees ethical behaviour.

TOTAL QUALITY MANAGEMENT (TQM):

It is a systematic approach to guide an organisation towards excellence through superior quality products, services and processes. It is a corporate strategy. Quality is no longer limited only to products and services but also measured in terms of value for customers.