SHRI VAISHNAV VIDHYAPEETH

VISHWAVIDYALA, INDORE

2019-20
HUMAN VALUES AND PROFESSIONAL ETHICS
ASSIGNMENT
SEMESTER IV

NAME: MORYA AGRAWAL

ENROLLMENT NO.: 1809BA0004375
BRANCH/ YEAR: B.A. PASS COURSE/ II YEAR
SUBMITTED TO: MR. PULKIT JAIN
Question 1. What is Leadership? Write in detail about its characteristics and types with
suitable examples.
Answer 1. Leadership is a process of social influence, which maximizes the efforts of others,
towards the achievement of a goal.

"As we look ahead into the next century, leaders will be those who empower others”, says Bill
Gates.

Warren Bennis said, "Leadership is the capacity to translate vision into reality.”

Leadership is a process by which an executive can direct, guide and influence the behaviour and
work of others towards accomplishment of specific goals in a given situation. Leadership is the ability
of a manager to induce the subordinates to work with confidence and zeal. Leadership is the
potential to influence behaviour of others. It is also defined as the capacity to influence a group
towards the realization of a goal. Leaders are required to develop future visions, and to motivate the
organizational members to want to achieve the visions. According to Keith Davis, “Leadership is the
ability to persuade others to seek defined objectives enthusiastically. It is the human factor which
binds a group together and motivates it towards goals.”

Characteristics of Leadership
1. It is an inter-personal process in which a manager is into influencing and guiding workers
towards attainment of goals.
2. It denotes a few qualities to be present in a person which includes intelligence, maturity
and personality.
3. It is a group process. It involves two or more people interacting with each other.
4. A leader is involved in shaping and moulding the behaviour of the group towards
accomplishment of organizational goals.
5. Leadership is situation bound. There is no best style of leadership. It all depends upon
tackling with the situations.

Importance of Leadership
Leadership is an important function of management which helps to maximize efficiency and to
achieve organizational goals. The following points justify the importance of leadership in a concern.

1. Initiates action- Leader is a person who starts the work by communicating the policies and
plans to the subordinates from where the work actually starts.
2. Motivation- A leader proves to be playing an incentive role in the concern’s working. He
motivates the employees with economic and non-economic rewards and thereby gets the
work from the subordinates.
3. Providing guidance- A leader has to not only supervise but also play a guiding role for the
subordinates. Guidance here means instructing the subordinates the way they have to
perform their work effectively and efficiently.
4. Creating confidence- Confidence is an important factor which can be achieved through
expressing the work efforts to the subordinates, explaining them clearly their role and giving
them guidelines to achieve the goals effectively. It is also important to hear the employees
with regards to their complaints and problems.
5. Building morale- Morale denotes willing co-operation of the employees towards their work
and getting them into confidence and winning their trust. A leader can be a morale booster
 by achieving full co-operation so that they perform with best of their abilities as they work
to achieve goals.
6. Builds work environment- Management is getting things done from people. An efficient
work environment helps in sound and stable growth. Therefore, human relations should be
kept into mind by a leader. He should have personal contacts with employees and should
listen to their problems and solve them. He should treat employees on humanitarian terms.
7. Co-ordination- Co-ordination can be achieved through reconciling personal interests with
organizational goals. This synchronization can be achieved through proper and effective co-
ordination which should be primary motive of a leader.

Qualities/ Characteristics of a Leader

A leader has got multidimensional traits in him which makes him appealing and effective in
behaviour. The following are the requisites to be present in a good leader:

1. Physical appearance- A leader must have a pleasing appearance. Physique and health are
very important for a good leader.
2. Vision and foresight- A leader cannot maintain influence unless he exhibits that he is
forward looking. He has to visualize situations and thereby has to frame logical programmes.
3. Intelligence- A leader should be intelligent enough to examine problems and difficult
situations. He should be analytical who weighs pros and cons and then summarizes the
situation. Therefore, a positive bent of mind and mature outlook is very important.
4. Communicative skills- A leader must be able to communicate the policies and procedures
clearly, precisely and effectively. This can be helpful in persuasion and stimulation.
5. Objective- A leader has to be having a fair outlook which is free from bias and which does
not reflect his willingness towards a particular individual. He should develop his own opinion
and should base his judgement on facts and logic.
6. Knowledge of work- A leader should be very precisely knowing the nature of work of his
subordinates because it is then he can win the trust and confidence of his subordinates.
7. Sense of responsibility- Responsibility and accountability towards an individual’s work is
very important to bring a sense of influence. A leader must have a sense of responsibility
towards organizational goals because only then he can get maximum of capabilities
exploited in a real sense. For this, he has to motivate himself and arouse and urge to give
best of his abilities. Only then he can motivate the subordinates to the best.
8. Self-confidence and will-power- Confidence in himself is important to earn the confidence
of the subordinates. He should be trustworthy and should handle the situations with full will
power. (You can read more about Self-Confidence at: Self Confidence - Tips to be Confident
and Eliminate Your Apprehensions).
9. Humanist-This trait to be present in a leader is essential because he deals with human
beings and is in personal contact with them. He has to handle the personal problems of his
subordinates with great care and attention. Therefore, treating the human beings on
humanitarian grounds is essential for building a congenial environment.
10. Empathy- It is an old adage “Stepping into the shoes of others”. This is very important
because fair judgement and objectivity comes only then. A leader should understand the
problems and complaints of employees and should also have a complete view of the needs
and aspirations of the employees. This helps in improving human relations and personal
contacts with the employees.
Leadership Style Types
1. Democratic Leadership (Commonly Effective): Democratic leadership is exactly what it
sounds like -- the leader makes decisions based on the input of each team member.
Although he or she makes the final call, each employee has an equal say on a project's
direction. Democratic leadership is one of the most effective leadership styles because it
allows lower-level employees to exercise authority they'll need to use wisely in future
positions they might hold. It also resembles how decisions can be made in company board
meetings.
For example, in a company board meeting, a democratic leader might give the team a few
decision-related options. They could then open a discussion about each option. After a
discussion, this leader might take the board's thoughts and feedback into consideration, or
they might open this decision up to a vote.
2. Autocratic Leadership (Rarely Effective): Autocratic leadership is the inverse of democratic
leadership. In this leadership style, the leader makes decisions without taking input from
anyone who reports to them. Employees are neither considered nor consulted prior to a
direction, and are expected to adhere to the decision at a time and pace stipulated by the
leader.
An example of this could be when a manager changes the hours of work shifts for multiple
employees without consulting anyone -- especially the effected employees.
3. Laissez-Faire Leadership (Sometimes Effective): If you remember your high-school French,
you'll accurately assume that laissez-faire leadership is the least intrusive form of leadership.
The French term "laissez faire" literally translates to "let them do," and leaders who
embrace it afford nearly all authority to their employees.
In a young startup, for example, you might see a laissez-faire company founder who makes
no major office policies around work hours or deadlines. They might put full trust into their
employees while they focus on the overall workings of running the company. Although
laissez-faire leadership can empower employees by trusting them to work, it can limit their
development and overlook critical company growth opportunities.
4. Strategic Leadership (Commonly Effective): Strategic leaders sit at the intersection between
a company's main operations and its growth opportunities. He or she accepts the burden of
executive interests while ensuring that current working conditions remain stable for
everyone else.
This is a desirable leadership style in many companies because strategic thinking supports
multiple types of employees at once. However, leaders who operate this way can set a
dangerous precedent with respect to how many people they can support at once, and what
the best direction for the company really is if everyone is getting their way at all times.
5. Transformational Leadership (Sometimes Effective): Transformational leadership is always
"transforming" and improving upon the company's conventions. Employees might have a
basic set of tasks and goals that they complete every week or month, but the leader is
constantly pushing them outside of their comfort zone.
When starting a job with this type of leader, all employees might get a list of goals to reach,
as well as deadlines for reaching them. While the goals might seem simple at first, this
manager might pick up the pace of deadlines or give you more and more challenging goals as
you grow with the company. This is a highly encouraged form of leadership among growth-
minded companies because it motivates employees to see what they're capable of.
6. Transactional Leadership (Sometimes Effective): Transactional leaders are fairly common
today. These managers reward their employees for precisely the work they do. A marketing
team that receives a scheduled bonus for helping generate a certain number of leads by the
end of the quarter is a common example of transactional leadership.
When starting a job with a transactional boss, you might receive an incentive plan that
motivates you to quickly master your regular job duties. For example, if you work in
marketing, you might receive a bonus for sending 10 marketing emails. On the other hand, a
transformational leader might only offer you a bonus if your work results in a large amount
of newsletter subscriptions. Transactional leadership helps establish roles and
responsibilities for each employee, but it can also encourage bare-minimum work if
employees know how much their effort is worth all the time.
7. Coach-Style Leadership (Commonly Effective): Similarly to a sports team's coach, this leader
focuses on identifying and nurturing the individual strengths of each member on his or her
team. They also focus on strategies that will enable their team work better together. This
style offers strong similarities to strategic and democratic leadership, but puts more
emphasis on the growth and success of individual employees.
A manager with this leadership style might help employees improve on their strengths by
giving them new tasks to try, offering them guidance, or meeting to discuss constructive
feedback. They might also encourage one or more team members to expand on their
strengths by learning new skills from other teammates.
8. Bureaucratic Leadership (Rarely Effective): Bureaucratic leaders go by the books. This style
of leadership might listen and consider the input of employees -- unlike autocratic leadership
-- but the leader tends to reject an employee's input if it conflicts with company policy or
past practices.
At larger, older, or traditional companies, when a colleague or employee proposes a strong
strategy that seems new or non-traditional, bureaucratic leaders may reject it. Their
resistance might be because the company has already been successful with current
processes and trying something new could waste time or resources if it doesn't work.
Leadership Ethics
Ethics refer to the desirable and appropriate values and morals according to an individual or the
society at large. Ethics deal with the purity of individuals and their intentions. Ethics serve as
guidelines for analysing “what is good or bad” in a specific scenario. Correlating ethics with
leadership, we find that ethics is all about the leader’s identity and the leader’s role.

Ethical theories on leadership talk about two main things: (a) The actions and behaviour of leaders;
and (b) the personality and character of leaders. It is essential to note that “Ethics are an essential to
leadership”. A leader drives and influences the subordinates / followers to achieve a common goal,
be it in case of team work, organizational quest, or any project. It is an ethical job of the leader to
treat his subordinates with respect as each of them has unique personality. The ethical environment
in an organization is built and developed by a leader as they have an influential role in the
organization and due to the fact that leaders have an influence in developing the organizational
values.

Question 2. What are Business Ethics? Define in detail about its types, sources and
importance in any organization.
Answer 2. Business Ethics carries significant influence in the corporate world. Not only does it
change how businesses operate on a day-to-day- basis, but it also influences legislation around
corporate regulation. Find out what business ethics is, why it is important, and how you can spot
ethical and unethical behaviour in the workplace.

Business ethics is the study of how a business should act in the face of ethical dilemmas and
controversial situations. This can include a number of different situations, including how a business is
governed, how stocks are traded, a business' role in social issues, and more.

Business ethics is a broad field because there are so many different topics that fall under its
umbrella. It can be studied from a variety of different angles, whether it's philosophically,
scientifically, or legally. However, the law plays the biggest role in influencing business ethics by far.

Many businesses leverage business ethics not only to remain clean from a legal perspective, but also
to boost their public image. It instils and ensures trust between consumers and the businesses that
serve them. The modern idea of business ethics as a field is relatively new, but how to ethically
conduct business has been widely debated since bartering and trading first arose. Aristotle even
proposed a few of his own ideas about business ethics.

However, business ethics as we know it today arose in the 1970s as a field of academic study. As part
of academia, business ethics were both debated philosophically and measured empirically. As this
field of study became more robust, the government began legislating leading ideas in the field into
law, thus forcing businesses to abide by certain rules and regulations that were deemed ethical.

Definitions
“Business Ethics is generally coming to know what is right or wrong in the work place and doing what
is right. This is in regard to effects of products/services and in relationship with the stake holders.” —
Cater McNamara

“Business ethics in short can be defined as the systematic study of ethical matters pertaining to the
business, industry or related activities, institutions and beliefs. Business ethics is the systematic
handling of values in business and industry.” —John Donaldson

Types of Business Ethics

Business ethics as a field of study is incredibly diverse, but many concepts can be divided into a few
basic principles. Every business should strive to follow these guidelines in the pursuit of success.

1. Trustworthiness: Achieving trustworthiness typically involves being transparent and honest

in all actions and communications. Being trustworthy can have a positive impact both
internally and externally. Consumers appreciate openness, as it provides them with insight
into how a business operates and conceptualizes the work that they do. Employees also
appreciate this quality in a business that they work for.
2. Respect: Showing respect for employees and customers involves following through on all
promises -- and providing sincere apologies and appropriate compensation if anything falls
through. Showing a lack of respect will deter customers from engaging with a business and
lower a business' reputation. It will also do significant damage to employee morale and
increase turnover.
3. Fairness: Treating customers and employees with a sense of fairness and justice is a key type
of ethics. Manipulative behaviour aren't just unethical, but they are also unhelpful -- and the
top priority of any business should be to be helpful to its customers and employees. It is also
important to treat all people equally.
4. Caring: Businesses, at the end of the day, are composed of human beings. There are human
beings that consume goods or services from the business, and then there are human beings
that work to produce those goods or services. Being open to their struggles and coming to
the table with solutions will show empathy -- a valuable tool for any business to utilize.
Showing a sense of caring and keeping the lines of communication is not just the ethical
thing to do, but can also boost internal and external perceptions of the business.
5. Personal Responsibility: It refers to a man's personal code of ethics. If a man behaves in
honesty, he will behave in a very honest and straight forward manner. According to Walton,
"A morally responsible executive is one who knows the various kinds of value systems that
may be employed in a particular situation and has a rather clear idea of what values hold
ascendancy (precedence or priority) over others in a conflict ". This definition of Walton is
rather an over-simplification. A business man may think he is acting ethically but others may
not consider his behaviour as ethical.
 6. Representative or Official Responsibility: A manager's action often represents the position
he holds or the office he occupies rather than his personal beliefs. This is so because the
manager represents the business. He has to follow the rules and regulations of the business,
e.g. a manager may want to do something but the regulations may forbid him from doing it
and therefore his hands are tied and he may not do it.
7. Personal Loyalties: Sometimes personal loyalties are so strong that ethical standards may
not be applied when acting towards a particular individual. Personal loyalties include the
loyalties of a subordinate to his superior and superior's loyalty towards his subordinate.
8. Corporate Responsibilities: Every individual living in society has a moral obligation towards
it. Corporations are entities which are "artificial persons", therefore they too have moral
responsibilities towards the society. There moral responsibilities are not necessarily identical
with the personal moral codes of the executives who run them. Every corporation must have
moral codes which help it in deciding matters connected with shareholders, employees,
creditors, customers, government and society.
9. Organizational Loyalties: Some employees have a deep sense of loyalty to the organization.
Their loyalties to their organization are so strong that they even neglect their own self-
interest for the sake of the organization.
10. Economic Responsibility: According to Milton Fried man, "there is one and only one social
responsibility of business – to use its resources efficiently and engage in activities designed
to increase profits without deception or fraud". Therefore, every business must contribute
to the general welfare of the society by making efficient and economical use of resource at
their command. This type of morality guides individual action towards economy in the use of
resources put at his disposal.
11. Technical Morality: In any country, the state of technology plays an important role in
determining what products and services will be produced. Technological environment
influences organizations in terms of investment in technology, consistent application of
technology and the effects of technology. A manager having technical morality will refuse to
compromise with quality. Every organization which is actively engaged in technological
advancement will create more challenging situations for the organizations because they are
not prepared to accept lower standards.
12. Legal Responsibility: Legal environment provides the framework within which the business
is to function. The viability of business depends upon the ability with which a business can
meet the challenges arising out of the legal framework.

However, it must be observed here that legal responsibility is more than an intention to conform to
laws, orders etc. It is a belief in the need for effective co-operation and justice in organized life. It is
morality that transcends conformity to law.

Sources of Business Ethics

In every society there are three sources of business ethics-Religion, Culture and Law. The HR
manager in every organisation, thus, has to be well versed with the unique system of values
developed by these three sources. These sources are discussed as follows:

1. Religion: Religion is the oldest source of Religion is the oldest source of ethical inspiration.
There are more than ethical inspirations. 1, 00,000 religions which exist across the whole
world, but all of them are in agreement on the fundamental principles. Every religion gives
an expression of what is wrong and right in business and other walks of life. The Principle of
reciprocity towards one’s fellow beings is found in all the religions. Great religions preach
 the necessity for an orderly social system and emphasize upon social responsibility with an
objective to contribute to the general welfare. With these fundamentals, every religion
creates its own code of conduct.
2. Culture: Culture is the set of important understandings that members of a community share
in common. It consists of a basic set of values, ideas, perceptions, preferences, concept of
morality, code of conduct etc. which creates distinctiveness among human groups. When we
talk about culture, we typically refer to the pattern of development reflected in a society’s
pattern of knowledge, ideology, values, laws, social norms and day to day rituals. Depending
upon the pattern and stage of development, culture differs from society to society.
Moreover, culture is passed from generation to generation. Culture facilitates the
generation of commitment to something larger than one’s individual self-interest.
Culture encourages the members of the organisation to give priority to organizational goals
over and above their personal interests. Culture also serves as a sense making and control
mechanism that guides and shapes the attitudes and behaviour of people. Managers have to
run an industrial enterprise on the cutting edge of cultural experience. The tension that their
actions create makes the business ethically more complex.
3. Law: The legal system of any country, guide the human behaviour in the society. Whatever,
ethics the law defines are binding on the society. The society expects the business to abide
by the law. Although it is expected that every business should be law abiding, seldom do the
businesses adhere to the rules and regulations. Law breaking in business is common e.g. Tax
evasion, hoarding, adulteration, poor quality & high-priced products, environment pollution
etc.

Importance of Business Ethics

1. Corresponds to Basic Human Needs: The basic need of every human being is that they want
to be a part of the organisation which they can respect and be proud of, because they
perceive it to be ethical. Everybody likes to be associated with an organisation which the
society respects as a honest and socially responsible organisation. The HR managers have to
fulfil this basic need of the employees as well as their own basic need that they want to
direct an ethical organisation. The basic needs of the employees as well as the managers
compel the organizations to be ethically oriented.
2. Credibility in the Public: Ethical values of an organisation create credibility in the public eye.
People will like to buy the product of a company if they believe that the company is honest
and is offering value for money. The public issues of such companies are bound to be a
success. Because of this reason only the cola companies are spending huge sums of money
on the advertisements now-a-days to convince the public that their products are safe and
free from pesticides of any kind.
3. Credibility with the Employees: When employees are convinced of the ethical values of the
organisation they are working for, they hold the organisation in high esteem. It creates
common goals, values and language. The HR manager will have credibility with the
employees just because the organisation has creditability in the eyes of the public. Perceived
social uprightness and moral values can win the employees more than any other incentive
plans.
4. Better Decision Making: Respect for ethics will force a management to take various
economic, social and ethical aspects into consideration while taking the decisions. Decision
making will be better if the decisions are in the interest of the public, employees and
company’s own long term good.
 5. Profitability: Being ethical does not mean not making any profits. Every organisation has a
responsibility towards itself also i.e., to earn profits. Ethical companies are bound to be
successful and more profitable in the long run though in the short run they can lose money.
6. Protection of Society: Ethics can protect the society in a better way than even the legal
system of the country. Where law fails, ethics always succeed. The government cannot
regulate all the activities that are harmful to the society. A HR manager, who is ethically
sound, can reach out to agitated employees, more effectively than the police.

Question 3. What is Corporate Social Responsibility (CSR)? Why is it necessary and what
rules are laid by Indian Government for CSR?
Answer 3. Corporate Social Responsibility is a management concept whereby companies
integrate social and environmental concerns in their business operations and interactions with their
stakeholders. CSR is generally understood as being the way through which a company achieves a
balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while
at the same time addressing the expectations of shareholders and stakeholders. In this sense it is
important to draw a distinction between CSR, which can be a strategic business management
concept, and charity, sponsorships or philanthropy. Even though the latter can also make a valuable
contribution to poverty reduction, will directly enhance the reputation of a company and strengthen
its brand, the concept of CSR clearly goes beyond that.

Promoting the uptake of CSR amongst SMEs requires approaches that fit the respective needs and
capacities of these businesses, and do not adversely affect their economic viability. UNIDO based its
CSR programme on the Triple Bottom Line (TBL) Approach, which has proven to be a successful tool
for SMEs in the developing countries to assist them in meeting social and environmental standards
without compromising their competitiveness. The TBL approach is used as a framework for
measuring and reporting corporate performance against economic, social and environmental
performance. It is an attempt to align private enterprises to the goal of sustainable global
development by providing them with a more comprehensive set of working objectives than just
profit alone. The perspective taken is that for an organization to be sustainable, it must be financially
secure, minimize (or ideally eliminate) its negative environmental impacts and act in conformity with
societal expectations.

Key CSR issues: environmental management, eco-efficiency, responsible sourcing, stakeholder

engagement, labour standards and working conditions, employee and community relations, social
equity, gender balance, human rights, good governance, and anti-corruption measures.

A properly implemented CSR concept can bring along a variety of competitive advantages, such as
enhanced access to capital and markets, increased sales and profits, operational cost savings,
improved productivity and quality, efficient human resource base, improved brand image and
reputation, enhanced customer loyalty, better decision making and risk management processes.

Corporate social responsibility (CSR) is a self-regulating business model that helps a company be
socially accountable—to itself, its stakeholders, and the public. By practicing corporate social
responsibility, also called corporate citizenship, companies can be conscious of the kind of impact
they are having on all aspects of society, including economic, social, and environmental.

To engage in CSR means that, in the ordinary course of business, a company is operating in ways that
enhance society and the environment, instead of contributing negatively to them.

As important as CSR is for the community, it is equally valuable for a company. CSR activities can
help forge a stronger bond between employees and corporations; boost morale; and help both
employees and employers feel more connected with the world around them.

For a company to be socially responsible, it first needs to be accountable to itself and its
shareholders. Often, companies that adopt CSR programs have grown their business to the point
where they can give back to society. Thus, CSR is primarily a strategy of large corporations. Also, the
more visible and successful a corporation is, the more responsibility it has to set standards of ethical
behaviour for its peers, competition and industry.

Examples of Corporate Social Responsibility

1. Walmart: Walmart donated more than 1.4 billion globally in FY2019, and more than 47,000
associates in the U.S. volunteered more than 776,000 hours. Walmart also donated 640
million pounds of food in just the U.S. alone.

2. Google: Google recently set a 5-year goal to give $1 billion in grants and offer 1 million
volunteer hours. They are also helping close the world’s education gap by supporting non-
profits that build platforms to scale digital learning resources to everyone.
 3. Microsoft: Microsoft strengthens communities all over. They recently donated $1.4 billion in
software and services to NGOs, and their employees donated $158 million (including
Microsoft matching gifts) to nonprofits.

Types of Corporate Social Responsibility

1. Corporate Philanthropy: Corporate philanthropy is the act of a corporation promoting the
welfare of others, usually through charitable donations of funds. Companies can leverage
this type of CSR in various ways, though one of the most popular ways is by matching gifts
their employees make to companies. Corporations that offer matching gift programs
essentially double the donations that their employees are giving to eligible non-profits.
2. Corporate Volunteerism: Corporations can leverage corporate volunteerism by encouraging
their employees to volunteer. Many companies allocate hours to go toward volunteering
during the workday, and many more encourage involvement by offering volunteer grants to
the non-profits where their employees volunteer. This kind of socially responsible program is
a win-win for every party involved. Employees of corporations are seen volunteering and
donating their time to important causes in the community, and non-profits are receiving free
time and volunteer work, which is essential for the success of so many non-profits.
Corporate volunteerism is a large part of CSR. The environment is impacted by corporate
social responsibility.
3. Environmental Leadership: Corporations can demonstrate environmental leadership in
several ways. For example, they can: (a)Put forth efforts to reduce their carbon emissions
(b)Recycle their products (c)Give back to environmental causes. By showing that they care
about improving and preserving the environment, companies can gain more support and
business, and also build a solid reputation as an environmental leader.
4. Ethical Labour Practices: Part of being socially responsible for a corporation means
participating in ethical labour practices. These practices can include: (a)Offering more
competitive salaries to employees (b)Offering more competitive compensation packages
(c)Providing generous parental leave (d)Offering tuition reimbursement. Following ethical
labour practices reflects well on companies and causes more individuals to want to work
with them.
 5. Economic Responsibility: In being economically responsible, companies “pay their dues” to
society, such as by: (a)Keeping up with their taxes (b)Investing back into their communities
(c)Paying their employees competitive wages. Companies that take part in economic
responsibility are truly paying it forward for the greater social good. This not only impacts
their values as a company but also their employees and the well-being of the economy
overall.

Benefits CSR Offer to Businesses

1. Prevent financial ramifications: Compliance with the spirit and letter of the law — both
nationally and internationally — through self-regulatory processes will prevent fines, put
your business "low on regulators' radar screens," and lower legal expenses.
2. Environmental consciousness: Reducing waste, recycling, minimizing carbon footprint, and
other best practices can . Using or producing only sustainable products, lowering energy
usage, and supporting environmental causes will boost a business's "green reputation"
among environmentally concerned clients.
3. Social Concern: Donating to humanitarian causes that fight persistent poverty, help the
victims of epidemics like AIDS or Ebola, or assist those displaced by hurricanes or
earthquakes shows concern for issues that consumers are more and more aware of in our
modern, interconnected world.
4. Local Community: Involvement in local community projects, either through financial
donations, employee participation, connecting your customers with project leaders, or
promotion of the project through advertising and fundraising enhances your CSR credentials
with clients in the given location.
5. Improved public image: This is crucial, as consumers assess your public image when deciding
whether to buy from you. Something simple, like staff members volunteering an hour a
week at a charity, shows that you’re a brand committed to helping others. As a result, you’ll
appear much more favourable to consumers.
 6. Increased brand awareness and recognition: If you’re committed to ethical practices, this
news will spread. More people will therefore hear about your brand, which creates an
increased brand awareness.
7. Cost savings: Many simple changes in favour of sustainability, such as using less packaging,
will help to decrease your production costs.
8. An advantage over competitor: By embracing CSR, you stand out from competitors in your
industry. You establish yourself as a company committed to going one step further by
considering social and environmental factors.
9. Increased customer engagement: If you’re using sustainable systems, you should shout it
from the rooftops. Post it on your social media channels and create a story out of your
efforts. Furthermore, you should show your efforts to local media outlets in the hope they’ll
give it some coverage. Customers will follow this and engage with your brand and
operations.
10. Greater employee engagement: Similar to customer engagement, you also need to ensure
that your employees know your CSR strategies. It’s proven that employees enjoy working
more for a company that has a good public image than one that doesn’t. Furthermore, by
showing that you’re committed to things like human rights, you’re much more likely to
attract and retain the top candidates.
11. More benefits for employees: There are also a range of benefits for your employees when
you embrace CSR. Your workplace will be a more positive and productive place to work, and
by promoting things like volunteering, you encourage personal and professional growth.

Rules Laid Down by Indian Government for CSR

The Policy recognizes that corporate social responsibility is not merely compliance; it is a
commitment to support initiatives that measurably improve the lives of underprivileged by one or
more of the following focus areas as notified under Section 135 of the Companies Act 2013 and
Companies (Corporate Social Responsibility Policy) Rules 2014:

i. Eradicating hunger, poverty & malnutrition, promoting preventive health care & sanitation &
making available safe drinking water;

ii. Promoting education, including special education & employment enhancing vocation skills
especially among children, women, elderly & the differently unable & livelihood enhancement
projects;

iii. Promoting gender equality, empowering women, setting up homes & hostels for women &
orphans, setting up old age homes, day care centres & such other facilities for senior citizens &
measures for reducing inequalities faced by socially & economically backward groups;

iv. Reducing child mortality and improving maternal health by providing good hospital facilities and
low-cost medicines;

v. Providing with hospital and dispensary facilities with more focus on clean and good sanitation so
as to combat human immunodeficiency virus, acquired immune deficiency syndrome, malaria and
other diseases;

vi. Ensuring environmental sustainability, ecological balance, protection of flora & fauna, animal
welfare, agro-forestry, conservation of natural resources & maintaining quality of soil, air & water;

vii. Employment enhancing vocational skills

viii. Protection of national heritage, art & culture including restoration of buildings & sites of
historical importance & works of art; setting up public libraries; promotion & development of
traditional arts & handicrafts;

ix. Measures for the benefit of armed forces veterans, war widows & their dependents;

x. Training to promote rural sports, nationally recognized sports, sports & Olympic sports;

xi. Contribution to the Prime Minister‘s National Relief Fund or any other fund set up by the Central
Government for socio-economic development & relief & welfare of the Scheduled Castes, the
Scheduled Tribes, other backward classes, minorities & women;

xii. Contributions or funds provided to technology incubators located within academic institutions,
which are approved by the Central Government;

xiii. Rural development projects, etc

xiv. Slum area development.

Explanation— For the purposes of this item, the term ‘slum area‘ shall mean any area declared as
such by the Central Government or any State Government or any other competent authority under
any law for the time being in force.

The Above list is illustrative not exhaustive. All activities under the CSR activities should be
environment friendly and socially acceptable to the local people and Society. Contribution towards
C.M relief fund shall be a part of CSR activities above 2% of Net profit other than the activities
mentioned above. Further Ministry of Corporate Affairs vide Notification dated 24.10.2014 increased
the scope of contribution made towards Corporate Social Responsibility Activities namely:

1. In item (i), after the words "and sanitation", the words "including contribution to the Swachh
Bharat Kosh set-up by the Central Government for the promotion of sanitation" shall be
inserted;
2. In item (iv), after the words "and water", the words "including contribution to the Clean
Ganga Fund set-up by the Central Government for rejuvenation of river Ganga" shall be
inserted.

Question 4. What are Work Ethics? What are the factors affecting Work Ethics? Explain
with suitable examples.
Answer 4. Work Ethics in its simplest definition is a system of moral principles. They affect how
people lead their lives, for life is an unbroken stream of decision-making and ethics are concerned
with what is the right moral choice, for individuals and for society. This is also known as a moral
philosophy. The etymology of ethics is derived from the Greek word ethos, meaning habit, custom,
disposition or character.

Ethics are therefore concerned with these sorts of moral decision: how to live an ethical life, rights
and responsibilities, right and wrong language, what is good and bad and so on. Contemporary
notions of ethics have been handed on from philosophy, religions, and global cultures. Ethics are
debated in topics such as human rights, right to life, and professional behaviour.

In a business, an ethical code is a defined set of principles which guide an organization in its activities
and decisions and the firm’s philosophy may affect its productivity, reputation, and bottom line.
Among staff ethical behaviour ensures work is completed with integrity and honesty and staff that
are ethical adhere to policies and rules while working to meet the aims of the enterprise. An
ethically positive, healthy work culture enhances morale among employees.

Traditionally, work ethic has been understood as a value based on hard work and diligence.
Capitalists, for example, believe in the necessity of working hard and in consequential ability of
enhancing one’s character. Socialists suggest that a concept of “hard work” is deluding the working
class into being loyal workers of the elite; and working hard, in itself, is not necessarily an
honourable thing, but simply a way to create greater wealth for those at the summit of the
economic pyramid.

These values have been challenged and characterized as submissive to social convention and
authority, and not meaningful in and of itself, but only if a positive result accrues. An alternative
perception suggests that the work ethic is now subverted in a broader, and readily marketed-to
society. This perspective has given us the phrase “work smart”.

In recent times, many say that a work ethic is now obsolete and that it is no true any longer that
working more means producing more, or even that more production leads to a better life… this is, of
course, not to be confused with quality productivity.

Benefits of Ethics in the Workplace

The following mentioned are few advantages of ethics in the workplace:

1. Asset Protection and Assurance: When your workers possess an ethical working
environment and ethical behaviour in the workplace, your companies maintenance cost
decreases to a remarkable extent because they are well aware of their duties and
responsibilities towards the company.
They also realize that they should not do any damage to any of the machines and equipment
are given to them as they are very valuable for the company and doing damage to these
things will be a wrong act, so automatically things will be taken care of and everything will
work systematically.
2. Productivity will increase: When the working staff and the workers value the work given to
them and then they will do all the given work in time and achieve their set targets, this will
greatly affect the sales and the productivity of the company.
Due to this, it is assured that you will have a group of people who will sail your business even
in the worst of the downfall of the market, and keep the growth of the company and
business consistent.
3. Team Work will develop: When all the workers do their jobs in a responsible way, then a
time comes when they have achieved the target way before the given deadline.
These individuals now work as a team and work in the benefit of the company for which
they will be getting or achieving their incentives. This mutual understanding of the
employees is a positive signal that the company will sustain for a very long period in the
variable market conditions.
4. Public Image and Brand Value Increases: Yes if all the members of the company are
dedicated to work as well as figure out there values and responsibility towards the
environment, then it is for sure that the type of cleanliness and the disposal of the waste
product of the company will be unbeatable in the market, hence resulting in attracting a
bigger customer base due to the clean and quality of the services or products.
 Moreover, an increase in the public image and an increase in the customer base is directly
proportional to an increase in brand value. In simpler words when you gain popularity
amongst your customers you start to develop your company into a brand.
5. Adaptive to changes: Workers with professional ethics in the workplace are definitely the
master key to the lock of success. The team of understanding, trustworthy, reliable,
motivate, concern and responsible people will defiantly adapt themselves into any kind of
position and work they are filled with.
Moreover, in general, it has been seen worldwide that in the digressive market conditions, if
the company asks for any changes in the production or changes in the kind of work then the
workers oppose.
In some situations, the company is left empty-handed falling short of workers as they leave
the company due to changes, but things are just opposite when you have a trustworthy and
responsible bunch of people as they themselves demand changes according to the
companies situation and let the company run even in the hard market situations.
6. Decision making and implementing is always easy: Whenever there is a need to take a big
decision then the best one made is by the advice of the employees of the company, and
what will be better than every single employ respecting the decision and supporting the
company to go ahead with their decision.
This is the power of ethics in the employers who respect the decision of the company and let
it go along with the flow. This is very rare in the big companies but where this scene
happens; the company turns big brands over the night.
7. Trouble-free working environment: Generally, where everyone is unknown and moreover
no one wants to know each other there are higher chances of great trouble and where there
is a friendly, respectful and great workplace or environment between the employees there
are fewer chances of the least troubles from the employees’ end.
If in case, a situation arises where there is some little misunderstanding between the
employees, it gets solved within them due to a better and strong understanding between all
the employees. Even the management does not have to bother about those small little
things as they know that the employees will take better care of themselves.
8. There is no one left negative: When people are detached from one another and someone
gets negative regarding the companies’ work then it has been seen that from that single
negative employee many are affected.
Thus there is a sudden decline in the working of the employees, but when everything is good
to go and everyone is concerned about one another then things become systematic and in
case if someone gets negative, the positive and supportive environment works as a boost up
for the person and again he/she starts working to their best.
9. Less Legal Issues: When everything is systematic and functional and in addition your workers
are cooperative and understanding then you won’t be facing any problems or legal
obligations from the employee’s end, because all the workers are treated equally and all are
well known with their duties which the job requires from them.
When everything is managed and systematic then all the paperwork and the legal formalities
are the primary things which are considered the most, so there is no question of any legal
issues.
10. The company will Touch New level of Success: When everything is so managed and
systematic along with the understanding of the employees because of their strong ethics,
the company will surely touch new heights of success and even the growth of your business
will be assured.
 When your employees become experts in their respective works and respective fields, then
their dedication and will, to do the work will show true colours and give more fruitful results.

Examples of Work Ethic Skills

Employees with a strong work ethic exhibit a particular set of values and behaviors. These
characteristics make them stand out as highly coveted team members and praise-worthy employees.

1. Reliability: Employees with a strong work ethic are very reliable. You can expect these
individuals to be on time for shifts and meetings. They meet their deadlines and offer quality
work. A reliable co-worker makes an excellent teammate because they contribute fairly to
projects.
2. Dedication: Part of a good work ethic is commitment and dedication to the job. They know
how to focus on the tasks without being distracted. These employees usually work until they
finish their duties. They stay with one company for long periods of time.
3. Discipline: Discipline is an essential part of showing a good work ethic. Highly disciplined
employees show determination and commitment to the job. They strive to meet or exceed
expectations and seek opportunities to learn new skills and improve their performance.
4. Productivity: A strong work ethic translates to outstanding productivity. Productive
employees often have a higher output than their counterparts. They complete projects early
and do more than the minimum requirements.
5. Cooperation: A good work ethic is something that employees often spread to those around
them by cooperating willingly on projects. They show good teamwork and readily assist
others when needed.
6. Integrity: Professional integrity means holding oneself to high moral principles. Those with a
strong work ethic also have outstanding integrity. They’re honest, polite and fair to others.
7. Responsibility: Demonstrating strong work ethic requires a keen sense of responsibility.
Those who are ethical and responsible hold themselves accountable for their actions. They
will accept the blame for errors they’ve contributed to and proactively work to fix these
issues.
8. Professionalism: Employees with a good work ethic almost always maintain their
professionalism. They exhibit a professional attitude clear in the way they dress, speak and
carry themselves. They’re respectful, focused, organized and neat.

Factors Influencing Work Ethics

Business leaders today are well aware of the ethical issues and hence they want to improve the
ethical standards of the business. Self-regulation is, of course, better and produce impressive results.
Besides, there are also a number of factors, which significantly influence the managers to take
ethical decisions.

1. Personal Code of Ethics: A man’s personal code of ethics that is what one considers moral is
the foremost responsible factor influencing his behaviour.
2. Legislation: It is already stated that the Government will intervene and enact laws only when
the businessmen become too unethical and selfish and totally ignore their responsibility to
the society. No society can tolerate such misbehaviour continuously. It will certainly exert
pressure on the Government and the Government consequently has no other alternative to
prohibit such unhealthy behaviour of the businessmen.
 3. Government Rules and Regulations: Laws support Government regulations regarding the
working conditions, product safety, statutory warning etc. These provide some guidelines to
the business managers in determining what are acceptable or recognized standards and
practices.
4. Ethical Code of the Company: When a company grows larger, its standard of ethical conduct
tends to rise. Any unethical behaviour or conduct on the part of the company shall endanger
its established reputation, public image and goodwill. Hence, most companies are very
cautious in this respect. They issue specific guidelines to their subordinates regarding the
dealings of the company.
5. Social Pressures: Social forces and pressures have considerable influence on ethics in
business. If a company supplies sub-standard products and get involved in unethical
conducts, the consumers will become indifferent towards the company. Such refusals shall
exert a pressure on the company to act honestly and adhere strictly to the business ethics.
Sometimes, the society itself may turn against a company.
6. Ethical Climate of the Industry: Modern industry today is working in a more and more
competitive atmosphere. Hence only those firms, which strictly adhere to the ethical code,
can retain its position unaffected in its line of business. When other firms, in the same
industry are strictly adhering to the ethical standards, the firm in question should also
perform up to the level of others. If the company’s performance is below than other
companies, in the same industry, it cannot survive in the field in the long run.

Factors Affecting Work Ethics

The business executive working as a professional manager has to decide what is ethical or unethical.
Many factors influence this decision. In part, what is ethical is based on:

1. The individual’s personal code of behaviour: The personal Code of Behaviour is the result of
the complex environment that influences one’s life.
2. The ethical standards imposed on a manager by his superiors also influence him in his
decisions as to the morality of behaviour: If the superior condones unethical activities such
as padding expenses accounts, the subordinate is encouraged to look upon this activity as an
acceptable practice.
3. The policies of the company also influence the determination of ethical conduct: Standards
of behaviour in an industry are often influenced greatly by the dominant firms in that
industry. The authors of the company policy obviously have an effect that is decisive.
Garrett puts this idea when he says: The best protection is the example presented by the
conduct of top management and the atmosphere it creates, when leaders are scrupulous,
the employees know what is considered right. When example is supported by explicit policy,
 the followers have a clear idea of how to translate the example of leaders into action. When
policy is enforced and enforcement reinforced, the employees know that honesty is the best
policy in this company.
4. The ethical climate of a country: If, it is poor, then only giant corporations and large
undertakings can stand competition and be viable; a small concern is apt to go bankrupt,
since business is concerned with employment of a large number of persons, it has the
obligation to see that it adheres to an ethical atmosphere. However, considerable
differences occur among managers as to what is ethical or unethical; and business truly lacks
a Code of Ethics.