Page 1 of 19

ETHICS

Ques Explain human values and their effect on organisational

behaviour.
Ans. All religions are unanimous in denouncing the amassing of wealth. The Bible declares: Easier
indeed it is for a camel to pass through the eye of a needle than for a rich man to enter heaven.
“Wealth undoes a man” — artham anartham , said Adi Sankaracharya. Fakiri, meaning voluntary
poverty, is a way of life highly commended by the Sufi saints. Aparigraha, non-possession, is a value
emphasized by the Bhagavad Gita.
Mahatma Gandhi understood that it was futile to strive for a world order which eliminates commerce
altogether. He knew also that business and industry cannot be conducted without involving ownership
of property.
Gandhi was equally concerned about social justice. Even today there are millions of households
where parents have to send their children to sleep on empty or half-fed bellies. Gandhi believed that
there never is any ‘absolute’ shortage of food. God creates food for all; and it is the unjust, man-made
patterns of possession that have created social inequality. He said: “Nature provides for mankind’s
need, not for his greed.”
Socialists came up with a solution: Forcefully dispossess the rich and distribute their wealth among
the poor. Such a solution, based on violence, could never be acceptable to Gandhi for whom means
were as important as ends. He felt that any good wrought through violence cannot be stable.
The opening verse of the Isa Upanishad provided Gandhi with the first breakthrough: Tyakten bhunjita
— ‘renounce and enjoy!’ Don’t cling to your wealth. Possess wealth, but don’t be possessive towards
your possessions. Narrow-minded possessiveness leads to fear of many sorts. Fear turns enjoyment
sour. In time, your riches become the very cause for your sorrow and moral misery.
In respect of trade and industry, how can one renounce and enjoy? Can one simply let go of all that
one has raised through years of hard work and labour? Should one simply abdicate the seat of power
and move to the woods? Supposing you do so, will not someone else grab your position, create chaos
and possibly jeopardise the livelihood of all who may be employed in your industry?
Gandhi’s doctrine of trusteeship does not propose abdication. He only seeks an attitudinal change in
the captains of commerce. “Not all of your wealth belongs to you; it belongs to the community:
understand this”, says Gandhi. Give up the binding thought of proprietorship. Transform your position
of ownership into that of a managing trustee.
This will give rise to a ‘disinterested commitment’. This is not the same as dilution of interest; to have a
‘disinterested commitment’ only implies a transmutation of self-interest into corporate interest; of
selfish concern into social concern.
You continue to retain stewardship over the business you have raised — but for serving also the larger
social interest. You become a leader in the truest sense. Gandhi believed that when the doctrine of
trusteeship begins to be practiced, philanthropy as a separate activity will become redundant.
Under the doctrine of trusteeship does the managing director of a concern earn the same as, say, his
peon? No. Gandhi does not propose a flat form of equality. His principle is from each according to his
caliber; to each according to his true need. He, therefore, emphasises equity rather than equality.
Regarding succession, Gandhi is in favour of a member of the family succeeding the managing
trustee, but he stipulates that this must be subject to the employees accepting the successor; else the
new trustee must come to office through election.

A critical factor in good management is the quality of managers. In Ranmayan, Rama asks Bharata
whether he has appointed courageous, knowledgeable, strong-willed men with a high emotional
quotient as his ministers, because quality advice is the key to effective governance. The emphasis is
on competence and confidentiality. Rama's advice to Bharata is to take a decision on a complex issue
neither unilaterally nor in consultation with too many people. There should be an efficient core group.
A good administrator can ensure high returns from minimum investments. Rama tells Bharata to prefer one wise
 Page 2 of 19
ETHICS

man to a thousand fools as it is the wise who can ensure prosperity during an economic crisis. Even if there is
one minister who is really effective, the king will gain immensely. Appointing tested men of noble lineage and
integrity for strategic positions is the key to successful management. Rama wants Bharata to treat his soldiers
well and pay their legitimate wages on time. Similarly, workers in the organisation should be treated fairly.
Delays in payment of wages and other allowances can lead to dangerous consequences.

Protecting the forests and maintaining livestock have also been dealt with as important
aspects of effective governance. In fact, the vision of the Ramayana has eternal relevance. It
is the responsibility of any organisation to preserve the natural resources and use them
judicially. Equal oppourtinity for growth and justice for all and business, corruption framing of
innocents for monetary gains, injustice to the poor are all prohibited.

Ques “The need for TQM is becoming more important day – by – day”.
Discuss the statement.

Ans. There’s an adage from the ‘Total Quality’ movement: “You can only improve that
which you can measure.” And Buddha has said, “We become what we think.” Together,
they mean that measures can focus what we think about in business, and where we can
improve.
When we focus on spiritual-based measures of a “bottom line,” we are more likely to stay
uplifted in our vision. We are more likely to see beyond the profit motive, beyond even the
self-interest of the organisation, and beyond even the welfare of society in material terms.
We are likely to become embodiments of Spirit who can see what is eternally important
and make sure the time and energy we spend at work truly contributes to what’s
ultimately important, day-to-day.

So ask yourself: Based on my spiritual context and its corresponding view of the
purpose of business, what are the measures and activities that I can put into place in my
work organisation that are aligned with this view?

Indian Insight: Only one power i.e. God is perfect. Hence whenever you seek perfection
in your work, you seek God in your work.
Since nothing is perfect, there is always a better way of doing things, better quality of
goods etc. Hence TQM is an ongoing process.
What you do is not important as all work is equal. God does not discriminate between any
work. It is the dedication with what you do is important.
 Page 3 of 19
ETHICS

Ques. How can management set its objectives in socio-political environment so as

to balance a variety of needs and goals? Discuss.

Bapu's Corporate Code of Conduct

All religions are unanimous in denouncing the amassing of wealth. The Bible declares:
Easier indeed it is for a camel to pass through the eye of a needle than for a rich man to
enter heaven. “Wealth undoes a man” — artham anartham , said Adi Sankaracharya.
Fakiri, meaning voluntary poverty, is a way of life highly commended by the Sufi saints.
Aparigraha, non-possession, is a value emphasised by the Bhagavad Gita.
Mahatma Gandhi understood that it was futile to strive for a world order which eliminates
commerce altogether. He knew also that business and industry cannot be conducted
without involving ownership of property.
Gandhi was equally concerned about social justice. Even today there are millions of
households where parents have to send their children to sleep on empty or half-fed
bellies. Gandhi believed that there never is any ‘absolute’ shortage of food. God creates
food for all; and it is the unjust, man-made patterns of possession that have created
social inequality. He said: “Nature provides for mankind’s need, not for his greed.”
Socialists came up with a solution: Forcefully dispossess the rich and distribute their
wealth among the poor. Such a solution, based on violence, could never be acceptable to
Gandhi for whom means were as important as ends. He felt that any good wrought
through violence cannot be stable.
The opening verse of the Isa Upanishad provided Gandhi with the first breakthrough:
Tyakten bhunjita — ‘renounce and enjoy!’ Don’t cling to your wealth. Possess wealth, but
don’t be possessive towards your possessions. Narrow-minded possessiveness leads to
fear of many sorts. Fear turns enjoyment sour. In time, your riches become the very
cause for your sorrow and moral misery.
In respect of trade and industry, how can one renounce and enjoy? Can one simply let go
of all that one has raised through years of hard work and labour? Should one simply
abdicate the seat of power and move to the woods? Supposing you do so, will not
someone else grab your position, create chaos and possibly jeopardise the livelihood of
all who may be employed in your industry?
Gandhi’s doctrine of trusteeship does not propose abdication. He only seeks an attitudinal
change in the captains of commerce. “Not all of your wealth belongs to you; it belongs to
the community: understand this”, says Gandhi. Give up the binding thought of
proprietorship. Transform your position of ownership into that of a managing trustee.
This will give rise to a ‘disinterested commitment’. This is not the same as dilution of
interest; to have a ‘disinterested commitment’ only implies a transmutation of self-interest
into corporate interest; of selfish concern into social concern.
You continue to retain stewardship over the business you have raised — but for serving
also the larger social interest. You become a leader in the truest sense. Gandhi believed
that when the doctrine of trusteeship begins to be practiced, philanthropy as a separate
activity will become redundant.
Under the doctrine of trusteeship does the managing director of a concern earn the same
as, say, his peon? No. Gandhi does not propose a flat form of equality. His principle is:
From each according to his calibre; to each according to his true need. He, therefore,
 Page 4 of 19
ETHICS

emphasises equity rather than equality.

Regarding succession, Gandhi is in favour of a member of the family succeeding the
managing trustee, but he stipulates that this must be subject to the employees accepting
the successor; else the new trustee must come to office through election.

CORPORATE GOVERENANCE

A critical factor in good governance is the quality of ministers. Rama asks Bharata
whether he has appointed courageous, knowledgeable, strong-willed men with a high
emotional quotient as his ministers, because quality advice is the key to effective
governance. The emphasis is on competence and confidentiality. Rama's advice to
Bharata is to take a decision on a complex issue neither unilaterally nor in consultation
with too many people. There should be an efficient core group.
A good administrator can ensure high returns from minimum investments. Rama tells
Bharata to prefer one wise man to a thousand fools as it is the wise who can ensure
prosperity during an economic crisis. Even if there is one minister who is really effective,
the king will gain immensely. Appointing tested men of noble lineage and integrity for
strategic positions is the key to successful government. Moderate taxes should be levied
on the people, lest they revolt. Rama wants Bharata to treat his soldiers well and pay
their legitimate wages on time. Delays in payment of wages and other allowances can
lead to dangerous consequences.
Trade and agriculture are important and Rama wants Bharata to ensure good irrigation
facilities rather than being overly dependent on rains. Traders need to be ensured of a
fear-free environment and their grievances should be redressed promptly.
Protecting the forests and maintaining livestock have also been dealt with as important
aspects of effective governance. In fact, the vision of the Ramayana has eternal
relevance. Law and justice, finance and business, corruption framing of innocents for
monetary gains, injustice to the poor are all mentioned.

Ques. What do you mean by TQM? Explain Indian insight into TQM?

Ans. There’s an adage from the ‘Total Quality’ movement: “You can only improve that
which you can measure.” And Buddha has said, “We become what we think.” Together,
they mean that measures can focus what we think about in business, and where we can
improve.
When we focus on spiritual-based measures of a “bottom line,” we are more likely to stay
uplifted in our vision. We are more likely to see beyond the profit motive, beyond even the
self-interest of the organisation, and beyond even the welfare of society in material terms.
We are likely to become embodiments of Spirit who can see what is eternally important
and make sure the time and energy we spend at work truly contributes to what’s
ultimately important, day-to-day.

So ask yourself: Based on my spiritual context and its corresponding view of the
purpose of business, what are the measures and activities that I can put into place in my
work organisation that are aligned with this view?

Indian Insight: Only one power i.e. God is perfect. Hence whenever you seek perfection
in your work, you seek God in your work.
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ETHICS

Since nothing is perfect, there is always a better way of doing things,

better quality of goods etc. Hence TQM is an ongoing process.
What you do is not important as all work is equal. God does not
discriminate between any work. It is the dedication with what you do is important.

Ques.What do you understand by business ethics? Why are ethics necessary in

business?

Ans. The term ethics refer to rules and principles that define right and wrong conduct.
Many decisions that mangers take require them to consider who may be affected-in
terms of the results as well as process.

There are four different views of ethics i.e. Utilitarian view of ethics, Right view of
ethics, Theory of justice vie of ethics, and Integrative social contrasts theory.

Utilitarian view of ethics says that ethical decisions are made solely on the basis of the
outcomes or consequences. Utilitarian theory uses a quantitative method for making
ethical decisions by looking at how to provide the greatest good for the greatest number.
Utilitarianism encourages efficiency and productivity and is consistent with the goal of
profit maximization.. However, it results in biased allocations of resources, especially
when some of those affected by the decision lack representation or a voice in the
decision.

Another ethical perspective is the rights view of ethics, which is concern with respecting
an protecting individual liberties and privileges such as rights to privacy, freedom of
conscience, free speech, life and safety. The positive side of right perspective is that it
protects individuals’ basic rights, but it has a negative side for organizations. It can
present obstacles to high productivity and efficiency by creating a work climate that is
more concerned with protecting individual rights than with getting the job done.

The next view is the theory of justice view of Ethics. Under this Approach, Managers are
to impose and enforce rule fairly and impartially and do so by following all legal rules and
regulations. The managers would be using the theory o justice perspective by deceiving
to provide the same rate of salary to individuals who are similar in their level of skills,
performance or responsibility and not basing that decision on arbitrary differences such
are Gender, personality, race or personal favorite. Using standard of Justice also has
pluses and minuses. It protects the interest of those stakeholders who may be under
represented or lack power, but it can encourage a sense of entitlement that might make
employees reduce risk taking, innovation and productivity.

The final ethics perspective, the integrative social contrast theory, proposes that ethical
decision should be based on empirical (what is) and normative (what should be) factors.
This view of ethics is based on the integration of “contracts” : the general social contracts
that allows business to operate and defines the acceptable ground rules, and a more
specific contracts among members of a community that address acceptable ways of
behaving. This views of business ethics differ from the other three in that it suggest that
managers need to look at existing ethical norms in industries and companies in order to
determine what constitute right and wrong decisions and actions.
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ETHICS

Most business people follow the utilitarian approach because it is consistence with
business goals as efficiency, productivity and profits.

Ethics are necessary for business to ensure individual right, social justice and communal
harmony.

Ques. Discuss the problems related to stress in Indian Corporates?

Stress is a disease of modern times. It afflicts people regardless of their station in life.
Stress is present in the lives of the rich and poor, literate and illiterate, men and
women. Stress is, however, more evident and is probably more widespread in
technologically advanced countries, and is common among highly qualified
professionals.
Stress is of various kinds — physical, emotional and intellectual, and it is
characterised by a feeling of being burdened; of being unable to cope. At a physical
level modern technology and facilities have actually increased workloads and
decreased relaxation. Mobile phones and laptops have made it easy to carry the
office to the home.
Emotional stress increases when there is disharmony and friction in relationships.
Unfortunately, the trend today is to take the easy way out — people prefer to break
away from relationships rather than repair them. Philosophical and intellectual
tensions also add to the stress factor.
The answer to stress can be found in the very letters of the word, ‘stress’:
‘S’ stands for strength: Physical, emotional, intellectual and spiritual. Physical and
emotional weakness leads to irritability. A strong, healthy body developed through
proper diet, exercise and pranayama techniques helps reduce stress at the physical
level. Through satsang and appropriate learning gained therein, the mind can be
strengthened. Love, compassion and friendship are valuable strength-givers that help
us cope with stress.
The scriptures say that knowledge of the Self cannot be gained without inner strength.
Rabindranath Tagore, in a poem, prays to the Lord not to remove all obstacles, but
instead, he asks for strength to bear them. Before the start of the Mahabharata war
Arjun was seized with a bout of emotional weakness and he refused to fight the war.
Lord Krishna rescued him by giving him emotional strength.
‘T’ stands for traffic control. We need to regulate and control our thoughts. We can
cope with stress best if our thoughts are orderly and methodical. Unnecessary
accumulation leads to clogging of the mind. The key lies in being able to live one
moment at a time. Eat while eating, work while working, leave the home at home and
the office in the office. Remember, however long we have to travel we can only take
one step at a time. Worrying only reduces efficiency and then even simple tasks
cannot be completed correctly and in time.
‘R’ is for re-design. We tend to view life and ourselves through our own philosophy. A
readjustment or reorientation in this philosophy increases our capacity to bear heavier
loads.
‘E’ stands for erase: The ego, anger, fear and jealousy are negative emotions that
reduce efficiency, leading to mental weakness, causing stress. Too much emphasis
on the ego, or abrogation of doership is responsible for increasing stress. Sri Rama
asked Sri Hanuman how he was able to cause so much havoc in Lanka and yet
return unscathed. Hanuman disclaimed all responsibility. He said, “I did not do it, you
did it through me”. There is a higher power or strength working through us.
‘S’ is for sharing: Share your wealth, knowledge, workload or anything else you
have. By and large people do not know how to share or delegate. Lord Vishnu as the
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ETHICS

manager of the world is the best example of delegation of work. Everything happens
under his stewardship but he remains free and at ease.
The last but most important is the ‘S’ which stands for surrender to the Lord.
Free your mind from the weight of worries and become an instrument, adopting an
attitude of service. This attitude will ensure efficiency, success, and freedom from
stress.

Ques What is stress management? What is the significance of Human Values

in stress management?

ANS. Stress is a dynamic condition in which an individual is confronted with an

opportunity, constrains or demand related to what he or she desires and for which the
outcome is perceived to be both uncertain an important.
More typically, stress is associated with constrains and demand. The former prevent
one from doing what one desire. The latter refers to the loss of something desired.
Two conditions are necessary for potential stress to become actual stress. There must
be uncertainty over the outcome and the outcome must be important. The stress is
highest for individuals who perceive that they are uncertain as to whether they will win
or lose and lowest for individuals who think that winning or losing is a certainty. But
importance is also critical. If winning or losing is an unimportant outcome, there is no
stress.

Three sets of factor (a) environmental, (b) organizational and (c) individual – that act
as potential cause of stress. Whether they become actual stress depends on
individual differences such as job experience and personality when stress is
experienced an individual, its symptoms can surface as physiological, psychological
and behavioral outcomes.

(a) Environmental factors – just as environmental uncertainty influences the

design of an
organization’s structure, it also changes in the business cycle create economic
uncertainties. When company B is contractive, for example, people become
increasingly anxious about their job security.
Similarly political instability is a cause of stress. Political crisis like civil war,
riots, hostilities with neighboring countries etc can lead to stress.
Technology uncertainties are a third type of environmental factor that can
cause stress. New innovations can make employee’s skills and experience
obsolete in a very short time, computers, robotics, automation and similar
forms of technology innovations are a threat to many people and cause them
stress.

(b) Organizational factors – organizational factors that cause stress include task,
role, and
Interpersonal demands, organizational structure and organizational
leadership.
Task demands are factors related to a person’s job. They include the
design of individual’s job (autonomy task variety, degree of automation),
working conditions and physical work layout.
Role demands relate to pressures placed on a person as a function of
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ETHICS

the particular role he or she plays in the organization. Role conflicts create
expectations that may be hard to reconcile or satisfy. Role overload is
experienced when the employee is expected to do more than time permits.
Interpersonal demands are pressures created by other employees,
lack of social support from colleagues and poor interpersonal relationships can
cause considerable stress, especially among employees with a high social
needs.
Organizational structure defines the level of differentiation in the
organization, the degree of rules and regulation and where decisions are
made. Excessive rules and lack of participation in decisions that might be
potential sources of stress.
Organizational leadership represents the managerial style of the
organization’s senior managers. One chief executive officer creates a cultural
characterized by tension, fear and anxiety. They establish unrealistic
pressures to perform in the short run, impose excessively tight controls, and
routinely fire employees for poor – performance.

(c ) Individual factors - Primarily, these factors are family issues, personal

economic
problems and inherent personality characteristics.
People hold family and personal relationships dear. Marital difficulties, the
breaking off of a relationship and discipline troubles with children are
examples of
relationship problems hat create stress for employees.
Economic problems created by individuals overextending their financial
resources is another set of personal troubles that can create stress for
employees
and distract their attention from their work.
Some people may have an inherent tendency to accentuate negative aspect
of the world in general i.e. stress symptoms expressed on the job may actually
originate in the person’s personality.
Stress Management strategy can be sub – divided into Individual Approaches
and organizational approaches.

Individual Approaches: Individual Approaches that have proven effective

included time
management techniques, increasing physical exercises, relaxation techniques
and expanding the social support network.
The well-organized employee can often accomplish twice as much as the
person who is only organized. So an understanding and utilization of time
management principles can help individuals better cope with tensions created
by Job demands.
Non-competitive physical exercise such as aerobics, walking, jogging,
swimming and riding a bicycle have long been recommended as a way to deal
with excessive stress levels. These forms of physical exercise heart capacity
lower the at rest heart rate and provide a mental diversions from work
pressure.
Individuals can teach themselves to reduce through relaxation techniques
such mediations, hypnosis and biofeedback. Deep relaxation for about 15 –20
minutes a day release tensions and provides a person with a pronounced
sense of peacefulness. Importantly, significant changes in heart rate, blood
pressure and other physiological factors result from achieving the condition of
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ETHICS

deep relaxation.
Having friends, family or work colleagues to talk to provide an outlet when
stress levels become excessive. It provides someone to hear your problems
and to offer a more objective perspective on the situations.

Organizational Approaches: Several of the factors that cause stress –

particularly task and role demands and organizational structure – are
controlled by management. As such , they can be modified or changed,
strategies that management might want to consider include improved
personnel selection and Job placement, training, use & realistic goal setting.,
redesigning of Jobs, increased employee involvement, improved
organizational communication and establishment of corporate wellness
programs.
Certain jobs are more stressful than others. Individuals with little experience or
external loans of control tend to be more prone to stress. Selection and
placement decisions should take these facts into consideration. Similarly,
training can increase individual’s self – efficacy and thus lesser job strain.
Individuals perform better when they have specific and challenging goals and
receive feedback on how well they are progressive towards these goals. The
use of goals can reduce stress as well as provide motivation.
Redesigning Jobs to give employees more responsibility, more meaningful
work, more autonomy and increased feedback can reduce stress because
these factors give dependence on others.
Role stress is detrimental to a large extend because employees feel uncertain
about goals, expectations, how they’ll be evaluated and the like. By giving the
employees a voice in decisions that directly affect their job performance,
managers can increase employee control and reduce this role stress. So
managers should consider increasing employee involvement in decision-
making.
Increasing formal organizational communication with employees reduces
uncertainty by lessening role ambiguity and role conflict. Given the importance
that perceptions play in moderating the stress – response relationship,
management can also use effective communications as a means to shape
employee perception.

Stress is a disease of modern times. It afflicts people regardless of their station in

life. Stress is present in the lives of the rich and poor, literate and illiterate, men
and women. Stress is, however, more evident and is probably more widespread
in technologically advanced countries, and is common among highly qualified
professionals.
Stress is of various kinds — physical, emotional and intellectual, and it is
characterized by a feeling of being burdened; of being unable to cope. At a
physical level modern technology and facilities have actually increased
workloads and decreased relaxation. Mobile phones and laptops have made it
easy to carry the office to the home.
Emotional stress increases when there is disharmony and friction in
relationships. Unfortunately, the trend today is to take the easy way out — people
prefer to break away from relationships rather than repair them. Philosophical
and intellectual tensions also add to the stress factor.
The answer to stress can be found in the very letters of the word, ‘stress’:
‘S’ stands for strength: Physical, emotional, intellectual and spiritual. Physical
and emotional weakness leads to irritability. A strong, healthy body developed
 Page 10 of 19
ETHICS

through proper diet, exercise and pranayama techniques helps reduce stress at
the physical level. Through satsang and appropriate learning gained therein, the
mind can be strengthened. Love, compassion and friendship are valuable
strength-givers that help us cope with stress.
The scriptures say that knowledge of the Self cannot be gained without inner
strength. Rabindranath Tagore, in a poem, prays to the Lord not to remove all
obstacles, but instead, he asks for strength to bear them. Before the start of the
Mahabharata war Arjun was seized with a bout of emotional weakness and he
refused to fight the war. Lord Krishna rescued him by giving him emotional
strength.
‘T’ stands for traffic control. We need to regulate and control our thoughts. We
can cope with stress best if our thoughts are orderly and methodical.
Unnecessary accumulation leads to clogging of the mind. The key lies in being
able to live one moment at a time. Eat while eating, work while working, leave the
home at home and the office in the office. Remember, however long we have to
travel we can only take one step at a time. Worrying only reduces efficiency and
then even simple tasks cannot be completed correctly and in time.
‘R’ is for re-design. We tend to view life and ourselves through our own
philosophy. A readjustment or reorientation in this philosophy increases our
capacity to bear heavier loads.
‘E’ stands for erase: The ego, anger, fear and jealousy are negative emotions
that reduce efficiency, leading to mental weakness, causing stress. Too much
emphasis on the ego, or abrogation of doership is responsible for increasing
stress. Sri Rama asked Sri Hanuman how he was able to cause so much havoc
in Lanka and yet return unscathed. Hanuman disclaimed all responsibility. He
said, “I did not do it, you did it through me”. There is a higher power or strength
working through us.
‘S’ is for sharing: Share your wealth, knowledge, workload or anything else you
have. By and large people do not know how to share or delegate. Lord Vishnu as
the manager of the world is the best example of delegation of work. Everything
happens under his stewardship but he remains free and at ease.
The last but most important is the ‘S’ which stands for surrender to the
Lord. Free your mind from the weight of worries and become an instrument,
adopting an attitude of service. This attitude will ensure efficiency, success, and
freedom from stress.

Ques. “There is no relevance to values in management.” Comment?

Ans:Values are neither an abstraction nor many-complexioned. There cannot be

different sets of values for politicians, business persons and bureaucrats. If such a
difference is being accepted by most of us today, it is because we have been
indifferent to the progressive deterioration of moral and ethical standards in the social
order over the last half-century.

Any moral code has to be applicable to all. "I never did, or countenanced, in public
life", said Jefferson, "a single act inconsistent with the strictest good faith, having
never believed there was one code of morality for a public and another for a private
 Page 11 of 19
ETHICS

man".

That management and values are not compatible is a canard propagated deliberately
by a few who have come to dominate public life. Through their dubious ways, they are
distorting and redefining morality.

Just as bad money drives out good money, bad managers have very nearly cleared
the managerial arena of good managers committed to moral or ideological principles
and values. As a result, the entire social system and the environment is vitiated —
resulting in widespread corruption and unethical behaviour.

There has been talk of framing some kind of moral/ethical code of conduct for
managers. But this assumes there is a need to evolve different codes of conduct for
different people.

"What is morally wrong", said Gladstone, "cannot be managerially right". It is only men
of moral conviction and courage who can carry a country or organisation forward.
Morality is a practical philosophy of life mirrored in a person’s everyday behaviour and
social interaction.

Basic values are eternal — truthfulness, integrity of character and propriety in thought
and action. It simply means being cultured, gentle, unselfish, noble and liberal in
dealing with others. Being moral is being a man of conscience.

We are all acutely conscious of our right to freedom. However, we have not evolved a
corresponding awareness about the value of restraint and self-control. A freedom that
is limitless has no meaning — there can be no right without a corresponding duty.

Also, a distinction needs to be made between freedom and licence. To have a

conscience is to have the ability to understand this distinction.

Family, school and the prevailing environment play a crucial role in moulding and
shaping an individual’s character and conscience. What we learn in our younger days
becomes a permanent part of us. "Live as long as you may", wrote Southey, "the first
twenty years are the longest half of your life."

Children instinctively know the right from the wrong. So adults need to set an example
that validates this natural instinct. Anything which is anti-social or against the law is
morally undesirable. The idea of sin, which has its origin in religion, is formulated to
deter people from straying away from the right path.

Sex education and moral education may not be synonymous — but no moral
education can be complete without adequate sex education thrown in. "Our
civilisation", writes Will Durant, "has unwisely stimulated this sex impulse. Our
ancestors played it down, knowing that it was strong enough without prodding. We
have blown it up with a thousand forms of incitations — advertisement, emphasis and
display — and armed it with the doctrine that inhibition is a mistake, whereas
inhibition, the control of the impulse, is the first principle of civilisation".

We need to promote a relationship of understanding, dignity and mutual respect not

only between the sexes but also between all people, governments and other forms of
life.
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Ques. What is the holistic approach for managers in decision-making process?

Explain with examples.

Ans: One of the questions we love to ask spiritual-based executives is, “How do you
define business success?” While their answers are as unique and diverse as their
personalities, invariably they have the same theme: to promote the inner happiness
and fulfilment of everyone involved, and to sincerely make a positive contribution.
With this theme, each of these leaders has been extremely successful in growing their
organisations and generating financial prosperity. They are clearly demonstrating that
it’s possible to keep their attention on serving others and fostering spiritual fulfilment
while being successful in worldly endeavours. The principles they’re following seem to
correlate with the wisdom we have found in the ancient Indian Vedas. These
scriptures describe four goals of a “successful life”:
dharma – living in harmony with creation and contributing to the well-being of society
artha –generating the wealth of good education, health, money, and character
kama – satisfying desires through a life of comfort, health, enjoyment, and status for
oneself and one’s family
moksha – attaining spiritual fulfilment

Most importantly these scriptures tell us how to balance these four priorities in order
to attain true success:
Generating wealth ( artha ) is to be pursued within the larger priority of contributing to
the well-being of society ( dharma ).
Satisfying desires ( kama ) is to be pursued within the larger priority of spiritual
fulfilment ( moksha ).

In accord with the wisdom of these spiritual teachings, we can see that business
success naturally emphasises contribution to society and spiritual fulfilment . When
traditional measures of business success – shareholder return, market share, industry
power, and so on – are subordinate to these higher priorities, wealth can be
generated and desires can be satisfied while naturally promoting well-being rather
than harm, service rather than greed, and an uplifted spirit rather than unscrupulous
competition.

But are these priorities really practical in a business? Consider the example of the
Hard Rock Café chain of restaurants, founded by Isaac Tigrett when he was less than
20 years old. He was living in London when he noticed…
In England in those days, the social classes were still completely separated.
There was literally no place in London where a baker and a banker could meet to
talk. I wanted to break that system.

He opened an “absolutely classless” restaurant in the ultra-fancy Mayfair district. His

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timing, concept and location clicked from the word go: bakers and bankers, labourers
and Labour politicians were all standing in line from the very first day. The rest is
popular history of traditional success, as his chain of restaurants grew to become a
worldwide phenomenon. But was this the only way Tigrett defined business success?
No.

Success for him was making a positive contribution to society – “breaking the class
system” – plus the spiritual upliftment of employees and customers. While on a
spiritual pilgrimage in India he heard the saying, "Love All, Serve All.” To him, it
embodied the ultimate spiritual goal of life: to love people and to serve from that
place. That became the spiritual source of the company culture:
All I did was put spirit and business together in that big mixing bowl and add love.
I didn’t care about anything but people... just cherish them, look after them, and
be sensitive to them and their lives.

An important conclusion we have drawn from all of this is that if we look to the worldly
definitions of success – and thus pursue wealth and desires by themselves – we will
continue the current cycles of greed, corruption and disparity of wealth that are now
so prevalent in our world today. However, if we turn to the wisdom of our spiritual
basis, we can indeed foster business success that produces harmony, wealth,
satisfaction, and spiritual fulfilment.

Muhammad and Confucius sum it up well:

Wealth properly employed is a blessing, and a man may lawfully endeavour to

increase it by honest means. (Sayings of Muhammad)
Virtue is the root. Wealth is the result. The Great Teaching. (Confucius)

From your spiritual view, how would you define success for yourself as a spiritual-
based leader and for the organization that you lead?
How would you describe the balance of priorities in your definitions of success?

A Spiritual View of the Bottom Line

When an executive operates his or her business from a spiritual point of view, does it
change their definition of the “bottom line”?
The term “bottom line” originally meant the last line of an income statement, the profits
that remained after costs were deducted from revenues. Over time, it has come to mean
something broader: “the key results” or the “most important outcomes” of an enterprise
that drive its activities.
That shift in definition has followed the shift in the nature of business over the past
century where the purpose of business and its bottom line measures have seen an
evolution through four over-lapping contexts 1 :

Paternal-Mechanistic context:
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Time Period: Arose in the early 1900’s and dominated well into the 1960’s
Purpose of Business – Wealth creation for owners, shareholders
“Bottom Line” Measures – Financial (profit maximisation)

Humanistic context:
Time Period – First gained momentum in the 1950's and 60's, and became the norm
of many major corporations by the 1980's
Purpose of Business – Wealth creation with dignity, for owners, shareholders and
employees
“Bottom Line” Measures – Balanced Scorecard (Measures for Finance,
Customers, Processes, Employees, Shared Culture); “100 Best Companies to Work
For”

Holistic context:
Time Period – First voiced in the late 1960's and has gained momentum since the
1980's and 90's
Purpose of Business – Wealth creation with accountability to all stakeholders
(including, employees, customers, community, nature, society)
“Bottom Line” Measures – “Triple Bottom Line”(Measures for Finance, Society, and
Environment); Social Responsibility Index
Spiritual-Based context:
Time Period – Just beginning to emerge
Purpose of Business – Spiritual fulfilment and selfless service to society that is
motivated from the Source of creation
“Bottom Line” Measures – Purity and unity of thought, word, and deed
A working definition we’ve found useful for the “spiritual view of the bottom line” is: Having
a perspective of business that is sourced from a spiritual context, with corresponding
measures for its activities and outcomes.

For you, this means to first define the fundamental purpose of business from a spiritual
context. To do that, start by defining what spirituality means to you, which will in turn
define your spiritual context. From that perspective, formulate your view of the
fundamental purpose of business. For us, that would be “Spiritual fulfilment and selfless
service to society that is motivated from the Source of creation.”
Once you have defined the purpose of business from a spiritual context, you can begin to
determine the corresponding measures that will underlie the activities and outcomes of
your own work organization. For us, that would be measures organised around “Purity
and unity of thought, word, and deed” – where purity is anything motivated from the
Source of creation.

Because spirituality is naturally inclusive , its measures may also contain those of the
other three contexts, including financial profitability, social accountability, and
environmental awareness. In addition, there are likely to be measures of personal,
organisational and societal health derived from spiritual texts and values – perhaps
including explicit measures of spiritual fulfillment.
Here is where we’re sometimes asked, “Why measure in the first place?” Isn’t it a bit
ludicrous to try to measure “spirituality” in the workplace – and make it something
everyone strives for just like profits? Wouldn’t that cheapen our spirituality – or worse,
make it a servant to our pursuit of material gain through business?

So ask yourself: Based on my spiritual context and its corresponding view of the
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purpose of business, what are the measures and activities that I can put into place in my
work organisation that are aligned with this view?

Ques . What do you mean by values? What is their importance for managers?

Ans. The word “value” comes from the Latin verb “ valere ,” which means “to be
worth” and “to be strong.” Spiritual values reflect what is important to us from a
spiritual perspective. They are also natural, spiritual strengths that we can draw
upon in our life and work. We like to say that they’re built into our DNA – “Divine
Natural Attributes” – as they are the basis of a happy, healthy, and whole human
being.
Spiritual values are qualities that you already ARE . They are your natural strengths
that you can draw from in the most challenging situations. For example, Ken
Bertaccini, the Chief Quality Officer of AT&T Consumer Products was given the
monumental task of turning around one of their least profitable divisions within two
years, or else, he was told, the business would be abandoned. His overall strategy
included a training programme focused on values such as truthfulness and right
action – called "Project Miracles."
Ken continually brought forth his personal spiritual value of love throughout the
renewal process. Later when he became CEO of his division, he altered the
business's statement of values to include the word, "Love.” As he told his
employees:
I think we're ready to legitimise the "L word" and put love in our business... Love in the
context of love your neighbour as you love yourself, and treating others as you would like
to be treated. Putting love in our Shared Values Pyramid sends a message to our people
and to everybody, inside and outside AT&T, that we really do care.
By applying his most natural spiritual strength of love, Ken Bertaccini’s division became
one of the most profitable in AT&T within two years, and had the highest morale as well.
As we’ve studied spiritual texts from many religions, we’ve consistently found five
common values that define human nature at its highest: truth, right conduct, peace,
love, and non-violence. For example:
Bhagavad-Gita 16:1-3:
Be sincere and truthful; give freely and control the senses; be fearless and
equanimous; be loving and show goodwill to all; don’t harm any living creature.
Jesus said:
The Truth shall make you free… Blessed are those who hunger and thirst for
righteousness… Peace be with you… Love one another… Love your enemies.
(John 8:32, Matthew 5:6, Luke 24:36, John 13:34, Matthew 5:44)
Sayings of Muhammad, #173:
When you speak, speak the truth. Perform what you promise. Keep your heart free
from malice towards anyone. Love your fellow-beings first. Withhold your hand from
striking.
These spiritual values are fundamentally important to work success:
 Truth can open lines of communication, leading to more informed, wise
decisions.
 Right action can ensure that agreements are kept, building trustworthiness.
 Peace can foster proactive rather than reactive responses, and focus on
resolving issues rather than blaming.
 Love can generate sincere caring that results in a more aligned teamwork among
employees.
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ETHICS

 Non-violence can provide an uplifting spirit of collaboration and respect for

people, resources and the environment.
When we are sincere about working by our spiritual values, even those who don’t
consider themselves spiritual can appreciate them. For example William once
conducted an exercise (which you might also want to try) with school bus drivers,
focusing on their values at work. He asked them to (1) List the top ten things that
are important to you; (2) select the top three; (3) name one that you would like to
see more of in your workplace. One person was rather resistant to this “values
stuff,” and was rather rough in his language. But when the group was reporting the
top values they’d selected, everyone’s head turned in surprise when he said,
“Love.” He explained, “Isn’t that what life is about? Loving yourself and each other
the best you can.”
Drawing from your spiritual context and purpose, take a few moments to reflect
and see what spiritual values come most naturally for you.
Using your list of spiritual values, identify ways in which you can actively express
them as strengths in your work.

Ques Define work ethos. How does organisational values and norms influence
work ethos?
Ans. Ethical decisions serve as the primary basis for good corporate
governance.
What is required for this is not a theoretical analysis of how ethical decisions are
made in corporate organizations but a road map providing guidance towards
such ethical decision-making
Taking decisions in a corporate organization is a critical performance factor for a
modern manager. More so, when such decision must appear, prima facie, as a
‘correct’ decision in the light of a strategic perspective. Managers confront ethical
situations everyday, although seldom are the problems identified for them as
ethical or moral Corporate organizations pose major problems for anyone who tries
to apply moral standards to business activities.
Values are one thing and Ethics are completely another. Values are socially acceptable
rules of behavior. Ethics are absolute concepts of good or bad, acceptable or otherwise.
For example Mahatma Gandhi said, “Most inhuman of Economic Laws is to buy cheap
and sell dear”. This is ethics. Unless one ends up hoarding and falsely manipulating the
market to buy unfairly cheap and sell unfairly dear, the issue of values does not arise.
Within normal, socially acceptable business practices, it may be a sign of good values to
make a normal profit in transaction. But still, it does remain unethical to make
opportunistic profit from the inelasticity of the need of the buyer or the seller.
Yourdictionary.com defines “Ethics” as, “Study of the general nature of morals and of the
specific moral choices to be made by a person; moral philosophy.” Thus, ethics,
especially corporate ethics, is a study of philosophy and not management.

The term ethics refer to rules and principles that define right and wrong conduct. Many
decisions that mangers take require them to consider who may be affected-in terms of the
results as well as process.

There are four different views of ethics i.e. Utilitarian view of ethics, Right view of ethics,
Theory of justice vie of ethics, and Integrative social contrasts theory.

Utilitarian view of ethics says that ethical decisions are made solely on the basis of the
outcomes or consequences. Utilitarian theory uses a quantitative method for making
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ETHICS

ethical decisions by looking at how to provide the greatest good for the greatest number.
Utilitarianism encourages efficiency and productivity and is consistent with the goal of
profit maximization.. However, it results in biased allocations of resources, especially
when some of those affected by the decision lack representation or a voice in the
decision.

Another ethical perspective is the rights view of ethics, which is concern with respecting
an protecting individual liberties and privileges such as rights to privacy, freedom of
conscience, free speech, life and safety. The positive side of right perspective is that it
protects individuals’ basic rights, but it has a negative side for organizations. It can
present obstacles to high productivity and efficiency by creating a work climate that is
more concerned with protecting individual rights than with getting the job done.

The next view is the theory of justice view of Ethics. Under this Approach, Managers are
to impose and enforce rule fairly and impartially and do so by following all legal rules and
regulations. The managers would be using the theory o justice perspective by deceiving
to provide the same rate of salary to individuals who are similar in their level of skills,
performance or responsibility and not basing that decision on arbitrary differences such
are Gender, personality, race or personal favorite. Using standard of Justice also has
pluses and minuses. It protects the interest of those stakeholders who may be under
represented or lack power, but it can encourage a sense of entitlement that might make
employees reduce risk taking, innovation and productivity.

The final ethics perspective, the integrative social contrast theory, proposes that ethical
decision should be based on empirical (what is) and normative (what should be) factors.
This view of ethics is based on the integration of “contracts” : the general social contracts
that allows business to operate and defines the acceptable ground rules, and a more
specific contracts among members of a community that address acceptable ways of
behaving. This views of business ethics differ from the other three in that it suggest that
managers need to look at existing ethical norms in industries and companies in order to
determine what constitute right and wrong decisions and actions.

Most business people follow the utilitarian approach because it is consistence with
business goals as efficiency, productivity and profits.

Ethics are necessary for business to ensure individual right, social justice and communal
harmony.

Capitalism is still a going concern but surely every thinking individual will have already
questioned its rapacious destruction of the environment and of the individual by generating
and fulfilling an endless amount of desires. Capitalism is purely dominated by the profit motive.
This is an amoral motive, which allows you to throw people out, to swallow smaller companies,
to send your toxic waste into Third World countries, to patent nature's bounty, to overprice your
product, to destroy the environment, and so on.
As spiritual masters and teachers have also emphasized, we cannot afford to live like this any
more. The futile chase after material possessions has reduced us to nervous wrecks, rubbish
our values and self-esteem and destroyed relationships. Human society has never been in so
much turmoil as in the present moment, and although all of it cannot be attributed to
economics, much of it is. We need a system that uses the best of capitalism without the
dangers of it. We need capitalism's free enterprise and communism's noble ends.
So here's what. Substitute the profit motive with the service motive. What this means, in effect,
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is that we still do what we want to do, but we do it to serve society and not to make money. I
have noticed time and again that no one works as hard as sevaks do. The efficient and orderly
functioning of ashrams is a testimony to the power of the service motive.

Ques. Describe the lessons learnt from ancient Indian educational system.

Ans. In ancient Indian education system i.e. Gurucul system, the stress was to be on
moral values as against materialism in modern education system. Pupil living under the
shadows of their guru use to do all the work of the gurucul irrespective of their class or
status. Gurucul system use to stress on classless society. Pupil irrespective of their
castes or status use to study together under the same guru. According to ancient
education system, class was to be divided on the basis of work done and not on the basis
of birth. Gurugul system use to preach selfless and ego less service.

Ques. Account for growing emphasis on human values

The word “value” comes from the Latin verb “ valere ,” which means “to be worth” and “to
be strong.” Spiritual values reflect what is important to us from a spiritual perspective.
They are also natural, spiritual strengths that we can draw upon in our life and work. We
like to say that they’re built into our DNA – “Divine Natural Attributes” – as they are the
basis of a happy, healthy, and whole human being.
Spiritual values are qualities that you already ARE . They are your natural strengths
that you can draw from in the most challenging situations. For example, Ken Bertaccini,
the Chief Quality Officer of AT&T Consumer Products was given the monumental task of
turning around one of their least profitable divisions within two years, or else, he was told,
the business would be abandoned. His overall strategy included a training programme
focused on values such as truthfulness and right action – called "Project Miracles."
Ken continually brought forth his personal spiritual value of love throughout the renewal
process. Later when he became CEO of his division, he altered the business's statement
of values to include the word, "Love.” As he told his employees:
I think we're ready to legitimise the "L word" and put love in our business... Love in the
context of love your neighbour as you love yourself, and treating others as you would like
to be treated. Putting love in our Shared Values Pyramid sends a message to our people
and to everybody, inside and outside AT&T, that we really do care.
By applying his most natural spiritual strength of love, Ken Bertaccini’s division became
one of the most profitable in AT&T within two years, and had the highest morale as well.
As we’ve studied spiritual texts from many religions, we’ve consistently found five
common values that define human nature at its highest: truth, right conduct, peace, love,
and non-violence. For example:
Bhagavad-Gita 16:1-3:
Be sincere and truthful; give freely and control the senses; be fearless and
equanimous; be loving and show goodwill to all; don’t harm any living creature.
Jesus said:
The Truth shall make you free… Blessed are those who hunger and thirst for
righteousness… Peace be with you… Love one another… Love your enemies.
(John 8:32, Matthew 5:6, Luke 24:36, John 13:34, Matthew 5:44)
 Page 19 of 19
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Sayings of Muhammad, #173:

When you speak, speak the truth. Perform what you promise. Keep your heart free
from malice towards anyone. Love your fellow-beings first. Withhold your hand from
striking.
These spiritual values are fundamentally important to work success:
 Truth can open lines of communication, leading to more informed, wise
decisions.
 Right action can ensure that agreements are kept, building trustworthiness.
 Peace can foster proactive rather than reactive responses, and focus on
resolving issues rather than blaming.
 Love can generate sincere caring that results in a more aligned teamwork among
employees.
 Non-violence can provide an uplifting spirit of collaboration and respect for
people, resources and the environment.
When we are sincere about working by our spiritual values , even those who don’t
consider themselves spiritual can appreciate them. For example William once conducted
an exercise (which you might also want to try) with school bus drivers, focusing on their
values at work. He asked them to (1) List the top ten things that are important to you; (2)
select the top three; (3) name one that you would like to see more of in your workplace.
One person was rather resistant to this “values stuff,” and was rather rough in his
language. But when the group was reporting the top values they’d selected, everyone’s
head turned in surprise when he said, “Love.” He explained, “Isn’t that what life is about?
Loving yourself and each other the best you can.”
Drawing from your spiritual context and purpose, take a few moments to reflect
and see what spiritual values come most naturally for you.
Using your list of spiritual values, identify ways in which you can actively express
them as strengths in your work.