The 5 P’s of Ethical Management
- Purpose
- Pride
- Patience
- Persistence
- Perspective
Is it Legal?
- Violation of criminal laws?
- Violation of civil laws?
- Violation of company policy?
- Appearance of being improper or immoral?
- Will it harm or embarrass the customers or company?
Is it Balanced ?
- Is it fair to all parties concerned?
- Fair short-term & long-term?
- Is it fair to the competition?
- Would it cause customers to view the industry negatively?
Is it Right?
- How will it make you feel about yourself?
- Will you be proud of yourself after making this decision?
- How would you feel if your decision made the front page?
The Ethics Check
- Is it legal?
- Is it balanced?
- How will it make you feel about yourself?
Ethical Issues in Business
- Employee-Employer Relations
- Employer-Employee Relations
- Company-Customer Relations
- Company-Shareholder Relations
- Company-Community/Public Interest
Importance of Ethics
- Satisfying Basic Human Needs
- Creating Credibility
- Uniting People and Leadership
- Improving Decision Making
- Long Term Gains
- Securing the Society
Sources of Ethical Norms
Benefits of Having an Ethics
- Increase in efficiency of daily operations,
- Increase in commitment among the employees,
- Increasing investors willingness to invest more in the business,
- Increased financial performance and
- Improving trust of customers in company’s products and services.
3 Models of Management Ethics
- Immoral Management—A style devoid of ethical principles and active opposition to what is ethical.
- Moral Management—Conforms to high standards of ethical behavior.
- Amoral Management
- Intentional - does not consider ethical factors
- Unintentional - casual or careless about ethical considerations in business
Developing Moral Judgment :External Sources of a Manager’s Values
- Religious values
- Philosophical values
- Cultural values
- Legal values
- Professional values
Developing Moral Judgment :Internal Sources of a Manager’s Values
- Respect for the authority structure
- Loyalty
- Conformity
- Performance
- Results
Managers Improving Ethical Behavior
- Hire individuals with high ethical standards
- Establish codes of ethics and decision rules
- Lead by example
- Delineate job goals and performance review mechanisms
- Provide ethics training
- Conduct social audits
- Provide support to individuals facing ethical dilemmas
Criteria for Ethical Decision Making Approaches
Utilitarian Approach
Moral behaviors produce the greatest good for the greatest number.
Individualism Approach
Acts are moral when they promote the individual's best long-term interests
Moral-Rights Approach
Human beings have fundamental rights
Justice Approach
Standards of equity, fairness, and impartiality.
Virtue Ethics Approach
Assumes having good character traits leads to good decisions. This approach does not offer any guidelines for decision making other than not going against one’s personal virtues.
Practical Approach
May include consideration of any of the other five approaches and what actions will please stakeholders most.
Indian Ethos
- Ethos can be defined as ―the moral ideas and attitudes that belong to a particular group or society.
- Indian life has four fundamental goals (Purushartthas) such as Dharma, Artha, Kama and Moksha.
- To fulfill these goals human life is divided into four stages namely Brahmacharya, Grahasthasrama, Vanaprastha and Sanyasrama.
The Indian ethos consists of
- Spirit and matter: Indian ethos emphasis on both spirit and matter. Both these are interlinked in holistic approach. This means that man is permitted to enjoy both internal as well as external quality of life
- Relationship between man and universe: Indian ethos emphasizes the holistic aspect between men and cosmic. There is intimate relationship between man and universe, between men and nature. This view states that all human beings and nature are inter connected and interdependent
- Co- Operation: Indian ethos stresses on co-operation amongst other at work and otherwise. Excessive competition within the organization and organization to organization has destroyed many young minds and family life. Co-operation, mutual trust and respect, joint efforts and team spirit can lead an all round prosperity and success to everyone.
- Self management: Indian ethos states that man should be able to control himself before he controls others. So every manager must manage himself before controlling his subordinates. He must know what are his strengths, weakness, dreams, goals and ambitions.
- Meditation: Excellence in work can be achieved through Yoga. Meditation helps to concentrate and to solve many complicated problems of the organizations. Mediation results in calm mind which helps one to focus on problems in a clearer frame of mind
- Dharma: As per Indian philosophy Dharma means duty. It stands for all those ideals, philosophies, purposes, influences, teachings and experiences that shape our character. Every organization is required to follow its own dharma.
- The spirit of sacrifice: Renunciation results in mental peace, inner growth and spiritual growth. It results in a higher level of consciousness.
Indian Ethos in Management revealed by our ancient scriptures
- Atmano Mokshartham, Jagat hitaya cha: All work is an opportunity for doing well to the world and thus gaining materially and spiritually in our lives
- Archet dana manabhyam: Worship people not only with material things but also by showing respect to their enterprising divinity within.
- Atmana Vindyate Viryam: Strength and inspiration for excelling in work comes from the Divine, God within, through prayer, spiritual readings and unselfish work.
- Atmano Mokshartham, Jagat hitaya cha: All work is an opportunity for doing well to the world and thus gaining materially and spiritually in our lives
- Archet dana manabhyam: Worship people not only with material things but also by showing respect to their enterprising divinity within.
- Atmana Vindyate Viryam: Strength and inspiration for excelling in work comes from the Divine, God within, through prayer, spiritual readings and unselfish work.
Basic principles of Indian Ethos for Management
- Tat Tvam Asi : You are the supreme that everybody can make himself a genius.
- Aham Brahmasmi : I have immense potential. I can make the impossible possible.
- Why Work?
- Atmano Mokshartham, Jagat Hitaya Cha: For my personal growth and for the welfare of the world.
- What is work?
- (a) Yagnaya Charatah Karma- work is to be done with the spirit of Yagna (Team work, selflessness)
- (b) Parasparam Bhavayantah –Nurture each other(Win – win Approach)
- How to work?
- Seva and Tyag –Serve others and give your best for the good of other.