1330302202 BUSINESS ETHICS & CORPORATE GOVERNANCE

Unit-1 Introduction – Ethics & B-Ethics, Concepts values &Ethics.

Unit-2 Ethical Corporate Behaviour, its Development, Ethical leadership.

Unit-3 Ethical Decision Making, Ethical Dilemmas in Organization. Social Responsibility of Business &
Corporate Governance.

Unit-4 Ethic in Functional Area, Marketing, Finance, HR & I. Technology.

Unit-5 Environmental Ethics, Corruption, Ethical Issues –Gender Ethics, Sexual Harassment &
Discrimination

Unit-1 Introduction – Ethics & B-Ethics, Concepts values &Ethics.

Is business ethics and oxymoron i,e. bringing together of two apparently contradictory concepts?
Business & Ethics – are they tenable. Compatible or Contradictory. => They go together.
Like in love and war in business everything is fair.
Is deception and lying are perfectly permissible?
Thieves and Gangsters have their ethics – they have their lines drawn. Is it ethics or understanding?
Even in war lines of do’s and don’ts are drawn.
The very foundation of business is trust. This is not to deny profit as the prime objective but-
From where does the contradiction emerge? How much profit is justified? Should profit making be
without accountability?
Honesty, trustworthiness and cooperation are foundations of business.
Profit is the reward for the risk undertaken. It is difficult to decide what should be the rate of profit?
We try to analyze and discuss the dynamics – it is debatable. It is dynamic. It varies from situation to
situation and time to time.

Ethics – Derived from the Greece word “ethos”, meaning Value patterns, character and manners. – An
ethos is the set of items and attitude that is associated with a particular group of people or a particular
type of activity
Ethics (are moral beliefs and rules about right & wrong) is the study and philosophy of human conduct,
with an emphasis on determining right from wrong – In Other words Ethics are moral guidelines which
govern good behavior An idea or moral belief that influences the behavior, attitude and philosophy of a
group of people.
Ethics are principles that explain what is right or wrong, good or bad, and what is appropriate or
inappropriate in various settings. Ethical issues are tagged with economics.
Ethics applies to all human activities. Ethics is a branch of social science. It deals with moral principles
and social values. It helps us to classifying, what is good and what is bad? It tells us to do good things
and avoid doing bad things.
So, ethics separate, good and bad, right and wrong, fair and unfair, moral and immoral and proper and
improper human action.
Business – Economic system in which goods and services are exchanged for one another or money, on
the basis of their perceived worth
Business ethics: are rules that examine ethical principles or ethical problems that arise in a business
environment. In summary business ethics consist of the principles, values, & standards that guide
behaviour in the world of business.
Business ethics provide standards or guidelines for the conduct and decision making of employees and
managers.
Why Business Ethics?
Business is based on Trust/foundation and Ethics is a part of it. Business cannot survive without ethics.
Ethics is consistent with profit seeking. Customers, employees, and people in general care about ethics.
Studies suggest ethics does not detract from profits and seems to contribute to profits.
Ethics has a definite role in business and it is concerned to long term interest of business.
Is ethics concerned with the selfish interest of buyers/sellers? Ethics is the expected business behaviour
– decision making process – rational/reasonable/justifiable.
Study of business ethics is essentially the study of business behaviour.
Business activity is to-
Attract customers to the firm's products, thereby boosting sales and profits
Attract more employees wanting to work for the business, reduce recruitment costs and enable the
company to get the most talented employees
Attract investors and keep the company's share price high, thereby protecting the business from
takeover
Ethics contribute to profit
Business ethics means to conduct business with a human touch in order to give welfare to the society.
So, the businessmen must give a regular supply of good quality goods and services at reasonable prices
to their consumers. They must avoid indulging in unfair trade practices like adulteration, promoting
misleading advertisements, cheating in weights and measures, black marketing, etc. They must give fair
wages and provide good working conditions to their workers. They must not exploit the workers. They
must encourage competition in the market. They must protect the interest of small businessmen. They
must avoid unfair competition. They must avoid monopolies. They must pay all their taxes regularly to
the government.

Marx’s theory of surplus value also remains an important ethical consideration. Carl max’s theory of
Surplus Value is economics that says the surplus value is created by many factors but is taken away by
the owner/entrepreneur. That is where the concept of business ethics comes in.
Let us turn to the dictionary meaning of Ethics.
Business is work relating to production, buying and selling of goods and services.
Business is a part of your job and not for pleasure. You are concerned about. Important matters for you.
Is an act done with an objective to earn profit?
Classical economics – says there are 4 factors of production – land/labor/capital/manager. There is a
value for each factor.
Deduction-
Business ethics is the set of ideas and attitude that is associated with business, group of people engaged
in business, moral beliefs and rules about what is right & wrong in business, moral beliefs that influence
the behavior , attitude & philosophy of the group of people engaged in business.
It covers ends and means of business methods at business etc.
Essentially it touches the Human behavior – response of an organism to a stimulus under business
environment.
Behavior would also involve what is the nature.
Man / Human Being is central to all business activity- business ethics would touch human behavior,
human nature, human values etc.
Man is the most dissatisfied animal – so is capable of changing/refinement – Man is the moral-ethical
being. So business ethics is dynamic.
Objective of Business ethics is modification of human behavior
We do come after monkeys – We carry the monkey characteristics inside us. The biggest challenge is to
continuously move ahead to a better situation and without Ethics this is not possible.
Property:
How property is created. With a catapult when you shoot a mango from the tree before others – it is
agreed that it is yours. It is your potential ( skill/knowledge/labor/effort/entrepreneurship/caliber etc)
using which you make a natures property as yours. There is of course an agreed/consent /social
acceptance of the society as to your ownership. Ethics is also a social issue backed by consent.

Ethics & Law-

Does a good business framework, bulwark of law not good enough .why mere is the need of ethics
beyond law. Is where law ends ethics begin. No law can take care of all situations/circumstances. When
ever there is unethical practices Law starts its role covering those issues.. and this continues….
Make good laws, enforce them properly and strictly – will there be a need for ethics further – YES.
Business ethics is indeed even beyond law. There will be always gray areas in law. Even best of law
leaves gap.
Can we converge the selfish interest and say it is ethics. Certainly not. What is generally and
permanently good is accepted.
Morality- related to law. It also throws a challenge. It doesn’t exhaust ethics. Morals are the social,
cultural and religious beliefs or values of an individual or group which tells us what is right or wrong.
They are the rules and standards made by the society or culture which is to be followed by us while
deciding what is right. Some examples of Morals are:
 Do not cheat
 Be loyal
 Be patient
 Always tell the truth
 Be generous
Morals refer to the beliefs what is not objectively right, but what is considered right for any situation, so
it can be said that what is morally correct may not be objectively correct.
Ethics is a branch of philosophy that deals with the principles of conduct of an individual or group. It
works as a guiding principle as to decide what is good or bad. They are the standards which govern the
life of a person. Ethics is also known as moral philosophy. Some examples of Ethics are:
 Truthfulness
 Honesty
 Loyalty
 Respect
 Fairness
 Integrity

The major differences between Morals and Ethics are as under:

1. Morals deal with what is ‘right or wrong’. Ethics deals with what is ‘good or evil’.
2. Morals are dictated by society, culture or religion while Ethics are chosen by the person himself
which governs his life.
 3. As morals are framed and designed by the group, there is no option to think and choose; the
individual can either accept or reject. Conversely, the people are free to think and choose the
principles of his life in ethics.
4. Morals may vary from society to society and culture to culture. As opposed to Ethics, which
remains same regardless of any culture, religion or society.
5. Morals do not have any applicability to business, whereas Ethics is widely applicable in the
business known as business ethics.
6. Morals are expressed in the form of state
Morality to be comprised of five basic components.
1. Harm/Care
2. Fairness/Reciprocity
3. In-group/loyalty
4. Authority/respect
5. Purity/Sanctity
This foundation of morality stretches across cultures throughout history and even is found in the
animal kingdom to some extent. This definition of morality is useful in explaining why the term
morality has a religious connotation. It is also useful in helping to distinguishing the term ethics from
morality. The first two items (1) Harm/Care and (2) Fairness/Reciprocity are subjects within an
ethical sphere. The last three elements (3) In-group/loyalty (4) Authority/Respect and (5)
Purity/Sanctity while being fundamental elements of morality are not fundamental.
Professional ethics is defined as the personal and corporate rules that govern behavior within the
context of a particular profession.
Many professions that are trusted by the public to apply expert knowledge (doctors, engineers,
surveyors, accountants and the like) have a Code of Ethics which sets out their expectations of a
member’s behavior and the boundaries within which members have to operate. A Code of Ethics helps
to clarify the profession’s values provides a reference point for decision making and can be used as a
framework for discipline. Most Codes of Ethics are principles based, providing guidance as to the
principles on which professional judgement and decisions should be based, rather than a rigid system of
rules.

The Indian concept of Ethics:

Sthana, Kala, Patra – place, position, time, situation, characters etc. involved determines.
Apart from these there are 4 goals in life-
1. Dharma – duty/resposnibility
2. Artha – saving – sharing - serving
3. Kama - reproduce
4. Mokshya- ultimate detach/got freedom to do good

Dharma –not necessarily religion - is the call of duty/responsibility. It varies from person to person, time
to time and place to place. It is determined by situation. It is dynamic. Your inner conscience plays a vital
role in determining dharma/swadharma. Concept of caste /profession in which you are etc. also plays a
role. Rules of the game also play a vital role.
Geography and culture plays vital role in determining the business ethics. In business ethics promote
basic concepts like- Profit maximization, Short and long term goals of a business. Ethics served the long
term goals
Is ethics beneficial-?
Can we converge our selfish interest with the organization/business goals
To be moral is practical
Being ethical is the goal for business.
Artha : wealth has got 3 Gods/Goddesses ( aspects of saving/sharing and serving /satisfying wants)
1. Kuber – miser/storekeeper/he preserves/medium of exchange
2. Laxmi – basati/chanchala/squint eyed/issue less ( varuna –father – koudi (rare ,can be
controlled/currency) demands cleanliness
3. Parvati – Annapurna/sarbanga sundari
All of these are moral dimensions taking care of livelihood/future/helping others. It includes politics
also. Indian ethics says that all these 4 goals in life are legitimate.
The balance among Triguna’s – Tamas, Rajas &Swatik
 Banijya basati laxmi
 Shanti
 Gandhi consent at trusteeship
 Other Indian values
 The concept of Ananda
Is there a scope to think in terms of –
 American
 Japanese
 German
 British values etc. OR INTERNATIONAL
Is there a scope to think in terms of –
 Christian
 Islamic
 Buddhist
 Jews
 Hindu etc
Functional Areas of ethics- concept of professional ethics Teachers/Engineers/Doctors /IT etc
Functional areas of business ethics- say banking/marketing/service industry/advertising etc.
Is corporate a citizen?
Is there an identity for a corporate?
Is CSR tenable – Social responsibility at Govt or corporation?
What about a multinational corporate identity.

Definition of Business Ethics

According to Andrew Crane,
“Business ethics is the study of business situations, activities, and decisions where issues of right and
wrong are addressed.”

According to Raymond C. Baumhart,

“The ethics of business is the ethics of responsibility. The business man must promise that he will not
harm knowinfly.”
According to Wikipedia,
“Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines
ethical principles and moral or ethical problems that arise in a business environment. It applies to all
aspects of business conduct and is relevant to the conduct of individuals and entire organizations.”
Nature of Business Ethics
The characteristics or features of business ethics are:-
 Code of conduct : Business ethics is a code of conduct. It tells what to do and what not to do for the
welfare of the society. All businessmen must follow this code of conduct.
 Based on moral and social values : Business ethics is based on moral and social values. It contains
moral and social principles (rules) for doing business. This includes self-control, consumer protection
and welfare, service to society, fair treatment to social groups, not to exploit others, etc.
 Gives protection to social groups : Business ethics give protection to different social groups such as
consumers, employees, small businessmen, government, shareholders, creditors, etc.
 Provides basic framework : Business ethics provide a basic framework for doing business. It gives
the social cultural, economic, legal and other limits of business. Business must be conducted within
these limits.
 Voluntary : Business ethics must be voluntary. The businessmen must accept business ethics on
their own. Business ethics must be like self-discipline. It must not be enforced by law.
 Requires education and guidance : Businessmen must be given proper education and guidance
before introducing business ethics. The businessmen must be motivated to use business ethics. They
must be informed about the advantages of using business ethics. Trade Associations and Chambers
of Commerce must also play an active role in this matter.
 Relative Term : Business ethics is a relative term. That is, it changes from one business to another. It
also changes from one country to another. What is considered as good in one country may be taboo
in another country.
 New concept : Business ethics is a newer concept. It is strictly followed only in developed countries.
It is not followed properly in poor and developing countries.

Importance of Business Ethics

 Long-term growth: sustainability comes from an ethical long-term vision which takes into account
all stakeholders. Smaller but sustainable profits long-term must be better than higher but riskier
short-lived profits.
 Cost and risk reduction: companies which recognise the importance of business ethics will need to
spend less protecting themselves from internal and external behavioural risks, especially when
supported by sound governance systems and independent research
 Anti-capitalist sentiment: the financial crisis marked another blow for the credibility of capitalism,
with resentment towards bank bailouts at the cost of fundamental rights such as education and
healthcare.
 Limited resources: the planet has finite resources but a growing population; without ethics, those
resources are repleted for purely individual gain at huge cost both to current and future
generations.
Scope Of Business Ethics
Ethical problems and phenomena arise across all the functional areas of companies and at all levels
within the company.
1.Ethics in Compliance
Compliance is about obeying and adhering to rules and authority. The motivation for being compliant
could be to do the right thing out of the fear of being caught rather than a desire to be abiding by the
law. An ethical climate in an organization ensures that compliance with law is fuelled by a desire to
abide by the laws. Organizations that value high ethics comply with the laws not only in letter but go
beyond what is stipulated or expected of them.
2.Ethics in Finance
The ethical issues in finance that companies and employees are confronted with include:
 In accounting – window dressing, misleading financial analysis.
 Related party transactions not at arm’s length
 Insider trading, securities fraud leading to manipulation of the financial markets.
 Executive compensation.
 Bribery, kickbacks, over billing of expenses, facilitation payments.
 Fake reimbursements
3.Ethics in Human Resources
Human resource management (HRM) plays a decisive role in introducing and implementing ethics.
Ethics should be a pivotal issue for HR specialists. The ethics of human resource management (HRM)
covers those ethical issues arising around the employer-employee relationship, such as the rights and
duties owed between employer and employee.
The issues of ethics faced by HRM include:
 Discrimination issues i.e. discrimination on the bases of age, gender, race, religion, disabilities,
weight etc.
 Sexual harassment.
 Affirmative Action.
 Issues surrounding the representation of employees and the democratization of the workplace,
trade ization.
 Issues affecting the privacy of the employee: workplace surveillance, drug testing.
 Issues affecting the privacy of the employer: whistle-blowing.
 Issues relating to the fairness of the employment contract and the balance of power between
employer and employee.
 Occupational safety and health.
Companies tend to shift economic risks onto the shoulders of their employees. The boom of
performance-related pay systems and flexible employment contracts are indicators of these newly
established forms of shifting risk.
4.Ethics in Marketing
Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation
and regulation of marketing. The ethical issues confronted in this area include:
 Pricing: price fixing, price discrimination, price skimming.
 Anti-competitive practices like manipulation of supply, exclusive dealing arrangements, tying
arrangements etc.
 Misleading advertisements
 Content of advertisements.
 Children and marketing.
 Black markets, grey markets.
5.Ethics of Production
This area of business ethics deals with the duties of a company to ensure that products and production
processes do not cause harm. Some of the more acute dilemmas in this area arise out of the fact that
there is usually a degree of danger in any product or production process and it is difficult to define a
degree of permissibility, or the degree of permissibility may depend on the changing state of
preventative technologies or changing social perceptions of acceptable risk.
 Defective, addictive and inherently dangerous products and
  Ethical relations between the company and the environment include pollution, environmental
ethics, and carbon emissions trading.
 Ethical problems arising out of new technologies for eg. Genetically modified food
 Product testing ethics.
The most systematic approach to fostering ethical behaviour is to build corporate cultures that link
ethical standards and business practices.
Advantages Of Business Ethics
More and more companies recognize the link between business ethics and financial performance.
Companies displaying a “clear commitment to ethical conduct” consistently outperform companies that
do not display ethical conduct.
1. Attracting and retaining talent
People aspire to join organizations that have high ethical values. Companies are able to attract the best
talent and an ethical company that is dedicated to taking care of its employees will be rewarded with
employees being equally dedicated in taking care of the organization. The ethical climate matter to the
employees. Ethical
Organizations create an environment that is trustworthy, making employees willing to rely, take
decisions and act on the decisions and actions of the co-employees. In such a work environment,
employees can expect to be treated with respect and consideration for their colleagues and superiors. It
cultivates strong teamwork and Productivity and support employee growth.
2. Investor Loyalty
Investors are concerned about ethics, social responsibility and reputation of the company in which they
invest. Investors are becoming more and more aware that an ethical climate provides a foundation for
efficiency, productivity and profits. Relationship with any stakeholder, including investors, based on
dependability, trust and commitment results in sustained loyalty.
3. Customer satisfaction
Customer satisfaction is a vital factor in successful business strategy. Repeat purchases/orders and
enduring relationship of mutual respect is essential for the success of the company. The name of a
company should evoke trust and respect among customers for enduring success. This is achieved by a
company that adopts ethical practices. When a company because of its belief in high ethics is perceived
as such, any crisis or mishaps along the way is tolerated by the customers as a minor aberration. Such
companies are also guided by their ethics to survive a critical situation. Preferred values are identified
ensuring that organizational behaviours are aligned with those values. An organization with a strong
ethical environment places its customers’ interests as foremost. Ethical conduct towards customers
builds a strong competitive position. It promotes a strong public image.
4. Regulators
Regulators eye companies functioning ethically as responsible citizens. The regulator need not always
monitor the functioning of the ethically sound company. The company earns profits and reputational
gains if it acts within the confines of business ethics. To summaries, companies that are responsive to
employees’ needs have lower turnover in staff.
 Shareholders invest their money into a company and expect a certain level of return from that
money in the form of dividends and/or capital growth.
 Customers pay for goods, give their loyalty and enhance a company’s reputation in return for
goods or services that meet their needs.
 Employees provide their time, skills and energy in return for salary, bonus, career progression,
and learning.
Practical utility for ethics-
 Power and influence at business is greater than ever before
 Business makes major contribution to our society
 Business malpractices would inflict enormous harm
 Business ethical issues are extremely complex
 Study of business ethics helps the businessman
 Knowledge of business ethics helps the manager
 People are still skeptic
Effect of Globalization on business ethics-
 The vanishing division – local /national/international (global)
 Globalization is spreading and forcing us to reconsider
 Globalization is universal/ internationalization / liberalization/ universalization / westernisation /
technological political in nature/withering away at territorial base
 Global communication – product – financial system – capitals – market…

Corporate Ethics:
Is corporate an citizen – YES It has an identity of its own ex- Bata/BSC
Persons identify themselves with the company (I’m in NALCO/HAL/Bata)
Corporate giving identity to people and gradually develops a culture. ( in Hal/ Air force we recognize two
category – enemy/friend)
As per the Indian constitution we enjoy certain ‘Rights’ – and have definite ‘Duties’
Corporate similarly enjoys the rights and is very much liable to perform certain duties
There are three approaches to corporate building in India
1. Reliance – public oriented/everything on rent/no dirty job/no hiring and firing
2. Birla group- traditional business man attitude
3. Tata.- uses Govt machinery and money 97% share from people
Thus they develop different culture altogether. Ex Land acquisition. So ethics vary from corporate to
corporate.
Ethical Issues-
1. Cultural issues
2. Legal issues
3. Accountability issues
Ethical impact on-
1. Shareholders
2. Employees
3. Consumers
4. Suppliers and competitors
5. Civil society
6. Govt & regulations
Ethical issues in organizational behaviour
Ethical behavior is behavior judges as good, right, just honorable, or failing to meet an obligation. The
judgment of behavior as ethical or unethical is based on principles, rules, or guides that come from an
ethics theory, character traits, or social values. Some ethics scholars have argued that doing business
ethically is simply good business.
Moral philosophy, or morality, refers to the concept of human ethics used within three contexts:
(Bhagvat gita explains three levels of commitment -)
1. Individual conscience (commitment to work/self) “Karmanye vadhikaraste ma faleshu kadachane”
2. Systems of principles and judgments shared within a culture or community (commitment to the
organization – we are from Uptron TV/Konark TV/Onida TV/TCS! Flipcart is original! Etc) when the
commitment is to your organization – it means two things affinity to the organization and Loyalty to the
person ex- Bhisma pitamah
3. Codes of behavior or conduct morality. (Commitments to an individual on his face value. If you say it
will be done sirJi) Ex Treasury sarkar disbursing salary
Bhagavat Gita says the two commitments as regards to organization and an individual are low. The
highest commitment is the commitment of a person to his work.
Organizational ethics should have its foundation of commitment to the
work/job/task/assignment/mission. In this both the individual and the organization are taken care of
Ex- Australian coach to Indian team
Globalization sees it through – we move from organization to work ethics.
Ethics has to be related to the work in an organization.
Modern Concepts –
Sustainability – environmental pollution- waste disposal – consequences of plant closure, downsizing-
erosion of local culture
Sustainability development is that meets the needs of the present without compromising the ability of
future generations to meet their own needs.
Sustainability refers to the long term maintenance of a system according to environmental, economic
and social considerations.
The three components are
1. Economic sustainability – reconciling national/international and global perspectives
2. Social Sustainability– poverty & hunger, universal primary education, gender equity and
empowerment of women, reduce child mortality, maternal health – like developmental index.-
human indexes
3. Environmental Sustainability –Charity and subsidy is no answer to poverty. It is empowerment.
Is there a chance of Geographical identification of ethics-
Why Jews are rich. Quran and Bible denies lending of money. So the Jews are mostly bankers. Religion
dictates terms of ethics.
Since a single persons moral and ethical judgments are affected by that persons environment (e.g. how
one was raised and what one was taught), personal morality distinguishes and defines intentions,
motivations or actions as right or wrong. Thus, various individuals may disagree about a certain moral or
ethic, even if they share many of the same morals and ethics. In contraposition, individuals may agree
about a certain moral or ethic even if they subscribe to different moral codes. Everyone has their own
moral philosophy and their own morals. Philosophers probably want to keep this in mind when engaging
in philosophy of ethics and philosophy of morality.
Modern managers are feeling increasing pressure to promote ethical behavior in their organizations,
causing them to look for ways of managing for ethical behavior.
Managers can follow three steps to manage for ethical behavior in their organizations:
1. Understand the composition of the present ethical culture of their organizations.
2. Improve that ethical culture.
3. Sustain ethical behavior so that it becomes embedded in their organizations.
Three stages of moral development:
1. Pre-conventional (self-centered, obeys rules to avoid punishment);
2. Conventional (growing social awareness and less focused on self-interest);
3. Principled (behavior guided by freely chosen moral principles).ethical absolutism Holds that an
ethical system applies to all people, everywhere, and always; based on an authority such as a
religion, custom, or written code.
CONCLUSION
1. Ethics and business are not opposite to each other
2. They are not independent. They are dependent and interdependent
3. Man is not a pure animal- man is a moral being- business is an exclusive human activity – hence
there is a scope for business ethics
4. There are national characters however non specific, non focused they may be
5. There are cultural traits
6. Even religion influences
7. Now universal world trends are emerging
8. Ethics make sense for business.
9. Profit maximization maybe the objective of business yet it is based on trust and ethical
foundation also.
10. Non ethical practices erode and do not promote business, hence ethics make sense
11. It is not a luxury but a necessity.
Theories of Ethics-
All theories can be put to practice and vice versa. Business is all about practice. “Ethical theories are the
rules and principles that determine right and wrong for a given situation.
Normative ethical theories attempt to answer two main questions: (1) What is the good life for men?
(2) How ought men to behave?
Normative ethical theories might be interpreted as answers to requests for advice on how to deal with
aspects of daily living
Traditional ethical theories developed mainly in Europe due to the work of many philosophers, from
ancient times until modernity (e.g.: Aristotle, Epicurus, Seneca, J. Locke, A. Smith, J. Stuart-Mill…)
Philosophy is the highest kind of generalisation. It is based on logic( observation/argument/experience).
All theories ultimately flow from philosophy.
Aristotle first used the term ethics to name a field of study developed by his predecessors Socrates
and Plato.
Aristotle believed that ethical knowledge is not only a theoretical knowledge, but rather that a person
must have "experience of the actions in life" and have been "brought up in fine habits" to become good.
For a person to become virtuous, he can't simply study what virtue is, but must actually do virtuous
things.
Aristotle regarded ethics and politics as two related but separate fields of study, since ethics examines
the good of the individual, while politics examines the good of the city-state (Greek polis).
Aristotle emphasized the importance of developing excellence (virtue) of character. the man who
possesses character excellence does the right thing, at the right time, and in the right way.
Aristotle also claims that the right course of action depends upon the details of a particular situation,
rather than being generated merely by applying a law.

Plato is perhaps the most influential philosopher of all time, and he is widely regarded as the first
truly systematic thinker. When Plato talks about what is good, he always means for us to think of an
ideal good person. Plato through Socrates argues that true explanations for any given physical
phenomenon must be teleological. Generalisation should be based on empirical/experimental reasons.
Fundamentally based on “ Cause & effect “ relationship. Thus, to give an explanation of something is to
determine what about it is good. Its goodness is its actual cause - its purpose, telos or "reason for
which" (Timaeus 27d8-29a).
Ethics has no flat rule. It is not same everywhere in every case. Religion also contributes to ethics.
Culture and kind of economy also influences ethics of human beings.
Particular age has a dominant idea/intellectual norms/predominant ideas/ethics.
Plato’s philosophy was based on IDEALISM. It means perfect society “Right man in right place, in right
time and in right job”. All reality is imperfect. World must continuously evolve towards perfectionism.
Plato's theory of ethics, known as the Theory of Forms, stipulates that a person's well-being aims for the
highest level of morality, but a person's virtues provide the skills necessary to attain a desired level of
morality. Plato's theory of ethics deems happiness as the ultimate level of perfection
Consequentialism : Events and developments are meant to achieve a purpose and there will be certainly
a consequence. Actions have consequences (is fundamental) talking of business ethics we talk of
accountability.
The broad spectrum of consequentialist ethics, of which UTILITARIANISM is a well-known example,
focuses on the end result or consequences. In the classical notion, teleology is grounded in the inherent
natures of things themselves, whereas in consequentialism, teleology is imposed on nature from outside
by the human will. Consequentialist theories justify inherently what most people would call evil acts by
their desirable outcomes, if the good of the outcome outweighs the bad of the act. So for example, a
consequentialist theory would say it was acceptable to actively kill one person in order to save two or
more other people. These theories may be summarized by the maxim "the ends can justify the means."

Kant’s philosophy is REASON. The reason has to be reasoned out.

Knowledge comes out of understanding TIME is the distance between events. Time is the relative term
Space and time are instruments of understanding. Faith is essential. There has to be a God without
which life cannot exist meaning- Business or an organization cannot exist without a vision /
mission/mandate. This is called – AGNOSTIC THEORY
We need to constantly evolve to grow. Ideas and thoughts are constantly evolving. The essence (good) is
carried forward meaning Synthetic Logic. Change is continuity. Change is a must but it should go on.
Kant is regarded as the father of modern business ethics-
 He belongs to age of enterprise
 He talks of dialectical logic
 He grasped reality more than others
 He relates to the contemporary world.
Immanuel Kant (philosopher from Germany) Kantian deontology stresses that an action is
considered to be ethical if it can be accepted as a universal law by every individual. He believes that
morality must follow a set of rules without any exceptions. Kantianism also emphasizes on treating each
other with respect. This means that an individual is bound or obligated to their duty to follow a set of
maxim in order to determine whether their actions are ethically right. However, there have been
arguments on Kantian deontology mostly due to the narrowness and inadequacy of this theory to
handle various moral problems or dilemmas (Makkreel & Luft, 2010). For example, there is no moral
guidance or solution when an individual’s rights and duties crosses path.
Hegale: “Real is Rational and rational is Real” future lies in the logic of the present. Understanding
the past and present you can predict the future.
Everything has to be logical. Everything kept apart Intuition has to be respected. Emotion/feelings are
important.
Organic Theory of Organization: Organization is a living thing. There is life in an state / business
organization. Commerce is a typical Human Activity. It has a different perspective altogether.
Funda is that future can be predicted. In contrast today in business thought we argue that as future
cannot be predicted it is better to control the future. Basic question remains who would guard the
guardian.
HOB’s: Mechanical theory. State / Business Organization is like a machine ( an assemblage=
assembly of man, machine, method, materials etc.). This theory cannot be Teleological. The state
/society is like a large business and the organism like a big machine?

Carl Maxs : Matter is the foundation. Economics is the key. He talked of five kinds of production
system. Capitalism is based on an Exploitative system. Then comes of Feudal System
Carl max criticised the Capitalism. There will be revolution or the system has to collapse. At the first step
it is socialism meaning Capacity of an individual will match to work. Secondly Capacity to work has to
match the need of an individual. Concept of private property has to vanish.
Utilitarian Theory: An action is morally right if it results in the greatest amount of good/happiness for
the greatest amount of people affected by the action (Crane & Matten, 2010).
The measure of the value of an act is the amount by which it increases general utility or happiness.
Act of utilitarianism is not only the stress on utility, but also in the fact that each individual action is the
primary object of ethical evaluation.
The utilitarian theory insists that an action is considered to be right or wrong based on the
consequences of the action and its effects on majority of the people.
The forerunners for this school of thought are Jeremy Bentham and John Stuart Mill (west, 2004).

Jeremy Bentham, morals and legislation can be described scientifically, but such a description
requires an account of human nature. Just as nature is explained through reference to the laws of
physics, so human behavior can be explained by reference to the two primary motives of pleasure and
pain; this is the theory of psychological hedonism.
Bentham's moral philosophy reflects what he calls at different times "the greatest happiness principle"
or "the principle of utility"—a term which he borrows from Hume. In adverting to this principle,
however, he was not referring to just the usefulness of things or actions, but to the extent to which
these things or actions promote the general happiness. Specifically, then, what is morally obligatory is
that which produces the greatest amount of happiness for the greatest number of people, happiness
being determined by reference to the presence of pleasure and the absence of pain.
Capitalism has to reform continuously.

John Stuart Mill utilitarian theory of justice

Mill said that justice was a subset of morality- “Justice implies something which is not only right to do,
and wrong not to do, but which some individual person can claim from us as his moral right”
Mill argued that we should reduce the division between workers and owners. Workers and owners often
engage in class warfare or other hostile relations. There might be a way for workers and owners to blend
together. For example, profits could be shared with the workers.
His writings provide the starting point for many contemporary liberal feminists ( equal political status for
women). The principles Mill explicitly mentions include a rejection of the aristocracy of birth, equal
opportunity in education and in the marketplace, equal rights to hold property, a rejection of the man as
the legal head of the household and equal rights to political participation. Thus, government regulation
should not prevent women from competing on equal terms with men in educational, professional,
marketplace and political institutions.
Capitalism fundamentals got clarity. Foundation of capitalism is individualism. One should create
condition where an individual can grow to his best self. All should get equal opportunity. Enterprise is
not possible without equal opportunity. So, democracy has to go with capitalism. Mill stated that the
individual always does not know the best for him . State knows better. There should be a concept of
Reasonable restrictions for public good. What is good for the public is more important than good for
private.
Ethics change with mode of production.
Ideal system => Feudal system => Mercantile system => industrial system => service revolution => IT
revolution. Al along ethics has to be dynamic.
The union between capitalism and democracy is the foundation of business ethics.

Business ethics
Business people commonly think in terms of purposeful action as in, for example, management by
objectives. Teleological analysis of business ethics leads to consideration of the full range of
stakeholders in any business decision, including the management, the staff, the customers, the
shareholders, the country, humanity and the environment.
Plato contributed mainly about Classification- It is Modular economics for a better understanding ex-
Market, Organization, Functioning etc.
Even though there is fundamental classification there is overlapping.
What is evolved is involved meaning thereby everything has a potential / possibility.
Business / enterprise is to explore possibilities. Nothing can come from nothing but everything can come
from something.
As far as business is concerned enterprise depends on courage / taking calculated risk. Not to be afraid
of failure but not to take steps is insane. Courage is the core to enterprise. Decisions to be based on
knowledge.
ORDER is the key. It is there in the evolution/business/organization. You need to define the order. Ethics
need to distinguish and define the order in an organization.

Business has to be considered as an separate entity.

Aristotle- experimentalist, PROSE, Head rules
Plato – Thinker, POETRY, Heart rules
St Augustine: fundamental principle is ethics is the key to kingdom of human on earth. Justice for all. Justice to
rule.
John Maynard Keynes
Keynes during the 1930s in an attempt to understand the Great Depression. Keynes advocated
increased government expenditures and lower taxes to stimulate demand and pull the global economy
out of the Depression Market confidence is important factor in business. State will refrain from
trade/profit making.
Keynes's theory overturned the mainstream thought of the time and brought about a greater awareness
of structural inadequacies: problems such as unemployment -result from imbalances in demand and
whether the economy was expanding or contracting. Keynes argued that because there was no
guarantee that the goods that individuals produce would be met with demand; unemployment was a
natural consequence especially in the instance of an economy undergoing contraction.
He saw the economy as unable to maintain itself at full employment and believed that it was necessary
for the government to step in and put under-utilized savings to work through government spending.
Thus, according to Keynesian theory, some individually rational microeconomic-level actions such as not
investing savings in the goods and services produced by the economy, if taken collectively by a large
proportion of individuals and firms, can lead to outcomes wherein the economy operates below its
potential output and growth rate. Keynesian economics advocates a mixed economy – predominantly
private sector, but with a role for government intervention during recessions. To Keynes, excessive
saving, i.e. saving beyond planned investment, was a serious problem, encouraging recession or even
depression. Excessive saving results if investment falls, perhaps due to falling consumer demand, over-
investment in earlier years, or pessimistic business expectations, and if saving does not immediately fall
in step, the economy would decline

John Kenneth Galbraith (1908-2006)

Galbraith argued that industrial production was being devoted to satisfying trivial consumer needs, in
part to maintain employment. Consequently, he recommended, the United States should shift resources
from the private to the government sphere in order to increase mobility, improve schools,
infrastructure, recreational resources, and social services as a means of providing a better quality of life
instead of creating an abundance of consumer goods to satisfy mass consumption. Galbraith believed
that the affluent society would be balanced because giant corporations would control the markets while
the unions would protect and provide job stability to workers. The main role of government would then
be to regulate business cycles. Galbraith argued, production became a dominant theme in economic
thought since people no longer viewed economic inequality as a major issue. Despite this paradigm shift
from economic inequality to production, Galbraith asserted that the emphasis on production was
irrational. Consumerism was a major theme in The Affluent Society. Galbraith contends that with the
steady increase in wages in the United States, luxury items have become the new standard, replacing
the basics of food and shelter. Targeted advertising has been responsible for creating both the increase
in consumption and the purchase of more luxury goods. He states that contemporary economic theory
does not take into account what he dubbed the ‘‘dependence effect” – i.e., that the ever-increasing
desire for additional consumption is in a sense “manufactured” by advertising – of advertising and
purchasing. Gailbraith contends that the massive growth in consumption has resulted in the steady
increase of consumer debt from the 1920s to 1958. He warned that the accumulation of consumer debt
is harmful to the economy, but the new paradigm believes that amassing consumer debt is acceptable if
it brings high rates of production and consumption.
Manufacturing and Agriculture has to converge. Agriculture has to be taken up as an industry.

E. F. Schumacher
Schumacher promoted the idea of "enoughness," or providing what is sufficient. Instead of ever-
increasing consumption, the emphasis should be on meeting human needs with no more consumption
than is necessary.
Schumacher provides a series of simple to understand perspectives on how the world businesses might
practice a more inclusive and compassionate set of values.
The focus is on humanisation of work, dispelling the modern belief that universal prosperity is the
foundation of peace because it is the richest countries that pursue prosperity with the greatest
ruthlessness. Developing country should not blindly copy the developed countries. Capitalism is driven
by technology. Technology is not getting transferred which is most important and ethical issue.

Criticisms of Capitalism
Capitalism has met with strong opposition throughout its history, both from the left and the right:
 The free market and property rights: The argument is that the free market is not necessarily free,
but weighted towards those who already own property, forcing those without property to sell their
labour to capitalists and landlords in a market favourable to the latter, and to accept low wages in
order to survive.
 Market failures: The allocation of goods and services by a free market is not as efficient as it might
be (due to the lack of perfect information and perfect competition), and individuals' pursuit of self-
interest can lead to bad results for society as a whole. It is argued that this and certain other unique
problems with a free market (including monopolies, monopsonies, insider trading and price gouging)
are grounds for government intervention.
 Market instability: Marxists claim that market instability is a permanent feature of capitalist
economy, and that the unplanned and explosive growth of Capitalism does not occur in a smooth
manner, but is interrupted by periods of overproduction in which stagnation or decline occur (i.e.
recessions and depressions).
 Profit and exploitation: Critics of Capitalism view the system as inherently exploitative because the
owners of capital only pay labour for the cost of survival (food, shelter, clothing, etc), while
expropriating the excess (i.e. surplus value). Since capitalists control the means of production (e.g.
factories, businesses, machinery) and workers control only their labour, the worker is naturally
coerced into allowing their labour to be exploited, and is not paid according to the true worth of his
labour but arbitrarily according to what the employer is willing to pay.
 Inefficiency and waste: Some opponents criticize the shift from pre-industrial reuse and thriftiness
before Capitalism to a consumer-based economy that pushes "ready-made" materials and planned
obsolescence, thus creating potentially insoluble ecological problems. Advertising and marketing are
also seen as a wasteful use of resources, and brand-based marketing puts more emphasis on a
company's name-brand than on the quality of its products.
 Unequal distribution of wealth and income: Some view a significant disparity and concentration of
wealth to be a problem endemic to Capitalism, and argue that this inequality is excessive, unfair,
dysfunctional or even immoral, and may lead to social problems (such as higher crime rates) that
affect both poor and rich. It is further argued that the capitalist system may also have inherent
biases favouring those who already possess greater resources. The wealthy may not put their wealth
to productive use, while at the same time the system undermines an economy's mass buying power
by denying resources to poorer people, who have a tendency to spend rather than save.
 Employment and unemployment: Some economists consider that a certain level of unemployment
is necessary for the proper functioning of capitalist economies, and that this "natural rate of
unemployment" highlights the inefficiency of a capitalist economy, since not all its resources (e.g.
human labour) are being allocated efficiently.
 Imperialism and human rights violations: Some argue that Capitalism thrives on an uneven and
exploitative relationship between wealthy nations who force regime or system changes in poor
countries which are only beneficial to them, often through exploitative wars. Dependency Theory
holds that resources flow from a "periphery" of poor and underdeveloped states to a "core" of
wealthy states, enriching the latter at the expense of the former. Marxists, particularly Vladimir
Ilyich Lenin (1870 - 1924), argue that Capitalism needs imperialism in order to survive, as it expands
its over-saturated local markets into (and drains the resources out of) other less-developed nations.
 Democracy: Some critics have argued that the Capitalist system can be undemocratic (although
Capitalism as an economic system is not necessarily tied to democracy). Oft-cited examples include
people not being able to criticize their boss out of risk of getting fired, and not being able to express
their opinions due to lack of funds to afford access to the media.
 Economic freedom: There has been criticism of the usual measures of economic freedom which are
often used to justify Capitalism. If economic freedom is to include the freedom to have meaningful
decision-making control over productive resources, then it is argued that the various points
mentioned above actually result in reduced, not increased, economic freedom.
 Sustainability and the environment: Some question the continued sustainability of an economic
system that insists on continued strong economic growth, requires increasingly greater amounts of
natural resources and energy, and promotes environmentally irresponsible consumption and
production, arguing that many aspects of the environment have been severely degraded since the
industrial revolution. The globalization of production, which is an integral part of the functioning of
modern Capitalism, also produces significant pollution and waste of resources.
 Religious criticism: Some religions criticize or outright reject capitalism (e.g. Islam strongly forbids
usury, the lending of money at an interest). Some Christians have also strongly criticized Capitalism,
particularly its materialistic aspects (the early Socialists drew many of their principles from Christian
values opposed to the "bourgeois values" of profiteering, greed, selfishness and hoarding). Some
see unfettered Capitalism as a threat to cultural and religious traditions.
 Basic ethics Capitalism and Neo-capitalism has evolved-
Individual is the core
 The entire objective of business, ethics and law is to create conditions for flowering out of the
individual.
 An individual alone can never consume what he produces and he automatically takes care of those
who cannot produce – the non adult, retired, old etc.
 The greatest problem that capitalism in general and globalisation in recent times has posed is that
equitable and not equal distribution of wealth and resources are not being ensured.
 Is the goal of maximum pleasure and minimum pain valid?
 How do you monetize – values, friendship, love, trust, duty etc.
 How to fit the cost benefit analysis in ethics
 Every right we guarantee imposes on us a sequential duty. Rights are those conditions given to an
individual without which and individual will not be able to grow to his best self.
 Morality is set of principles which are eternal, unchangeable and need not bring in religion-
spirituality and the whole baggage.
 Human dignity can never be compromised.
 Life, liberty, justice, education, fair trail, fair wage, freedom of belief, association and expression etc
 Right over land – Vedanta – Lanjigarh
 Justice fair treatment of people, everybody gets what he deserves, fair procedure – distributing the
fruits.
 Egalitarian burdens and rewards should be distributed justify.
 Rule of law
 Non – egalitarian – market dictates
 We don’t have equal talent but we have equal opportunity to develop talent
 Does market / economy tilted towards unethical behaviour – does it respond to it.
 Ethical theories subultarean / Feminist /discourse / post modern
 Ethics – Asian mode of production – industrialisation line production – mercantile age etc.
Applicable in the age of service revolution.
 Fullproof – universal and unshakably founded ethics will never be found.
 For and against globalisation is catching ground.

Elements of Business Ethics?

The concept of social responsibility of business is closely connected with the concept of business
ethics. Business ethics covers following elements.

1. Trustworthiness: -Top to bottom, organization must work to maintain trustworthiness.

Client should hold deep confidence in your abilities. They should believe on company's
reliability and quality. Business runs on character, fairness, truth, honour and ability.
2. Honest Service Delivery: -empty promises decline reputation of company. It is better to be
honest about what you can do. Company should leave every client feeling well served upon
completion of each project. "Idea" mobile company's formula is remarkable. "Under
commitment and over delivered".
3. Confidentiality: -Business organization should follow strict written internal confidential
policy. Consumer's information and confidential records should not be disclosed to others.
At the same time, they should not use wrong means to obtain information from
competitors about certain formula or method of production.
4. Openness: -Business organization should follow the principle of openness. Opinion and
feedbacks from clients and team members should be asked regularly. Even in time of
business disagreement, treat other's opinions and ideas with professional respect and
courtesy (good manner).
5. Other Common Business Ethics: -
 A large part of society is made up of common man with low purchasing power. Considering
their likes, dislikes and economical positions. Goods should be provided.
 The guarantees and warrantees offered by the businessmen should be proper and
customers should believe in them.

ETHICAL CORPORATE LEADERSHIP-

Ethical leadership is leadership that is directed by respect for ethical beliefs and values and for the
dignity and rights of others.[1]:22 It is thus related to concepts such as trust, honesty, consideration,
charisma and fairness
In a turbulent, sometimes dangerous world, responsible leaders need a broader view of critical
decisions. This means viewing these decisions as commitments, but in an unconventional way. We
typically think of commitments as deep, abiding pledges that individuals and organizations will do
absolutely all they can to make good on. In contrast, the kind of commitments that matter critically
today are paradoxical: they are evolving commitments.
An evolving commitment is a pledge, by a leader and an organization, to move in a particular direction,
but to do so in a flexible, open-ended way. High-stakes, highrisk, once-and-for-all decisions—the
contemporary versions of the "big factory" decisions—are sometimes unavoidable, but evolving
commitments are far better suited to a world in which leaders are immersed in a stream of possibilities,
surprises, opportunities, and deals in the active, fluid markets that surround and pervade their
organizations. Commitments require data, analysis, and experienced judgment, but, all too often, these
are far from decisive.
In more and more cases, when leaders make critical decisions, they are not choosing among specific,
detailed options, each supported by in-depth analysis, nor are they expecting to implement the option
they choose in a familiar, predictable, or managed environment. All they are doing is making an initial
choice, for themselves and their organizations, among broad, flexible, open-ended directions
Responsible leadership characteristics are reported to include “building public trust,” “sustaining
an impeccable reputation,” “walking the talk,” “managing with integrity,” “making profits with
principles,” “delivering on the triple bottom line,” “creating value for stakeholders,” “mobilizing people
and teams,” “coaching and reinforcing employees,” “creating incentives to encourage respectful
collaboration,” “safeguarding freedom of speech,” “ensuring adherence to employment standards,”
“proving fair and equal employment opportunities,” “making sure that products and services meet
customer needs,” “ensuring that ethical standards are respected,” “driven by a values-based vision of
the future,” “having a fundamental values base,” “maintaining personal and professional integrity,”
“making principled decisions,” “using values as a moral compass,” “promoting active citizenship inside
and outside the organization,” “being rooted in an ethics of care,” “being driven by a desire to serve
others,” “humility and modesty,” “an inclination to support others and to care for their interests and
needs,” “being connected and close to stakeholders,” “growing and sustaining a web of stakeholder
connections,” “having a drive to realize the vision in and through stakeholder engagement,” “being
cooperative,” “being inclusive,” “being empathetic,” “creating a values-based sense of identify among
stakeholders,” “a combination of cognitive, emotional, relational, and moral qualities,” and other
characteristics

Joseph Says-
Enduring questions - Emerging answers – change and contextual
1. Am I really grappling with the fundamentals (ability to reduce complexity to fundamentals?
2. What am I really accountable for?
3. Should I be focussed – responsive, need to understand properly the context, -responsible for
reports and returns
From stockholders to shareholders and from Immediate bnoss to rthe Mankind
4. How do i make critical decisions? Style of decision maki9ng. It varies as per age
5. Do we have right core values – how much we are aware about the vision/mission/mandate?
Objectives of the organization. These core values are questioned in leadership today.
6. Why have I chosen this life/profession/to be a leader
Why do one accept such challenges – is it for happiness/goal of life
Do circumstances compel or push you to be there in the position of leadership or you rise to the
occasion getting a chance.
7. What is the issue now? It is market force that influences the ethics.

Death of Hammaaiskjold ‘s – on a dangerous peace keeping mission. The first secretary general of UN –
mandate at ensuring peace and removing suffering around the globe
 Why did he choose, what he choose in life, when he had easier way outs – is a must question which
all leaders have to answer.
 We live in ana era of extraordinary opportunity coupled with intense performance pressure, risk,
turbulence
 There is a sense of struggle, struggle for good
 What causes the struggle – mostly the markets
 Complexity of effects on the market can neither be untangled, nor understood properly.
 More than the government, religion, family ideology -market seems to be most dynamic and moving
force in the world.
 Intense competitiveness and market forces possibly drive ethics to place bordering irrelevance
 First food then ethics
 First survival, first success – First food then ethics
 The guide posts – Board of directors (particularly the independent directors) Regulations, Vision,
Mission, and Objectives, familiar ethical principles (honesty, integrity etc.) don’t provide enough
assistance to the business leaders to lead. Thus the real challenge emerge even beyond this
 Recognize a contradiction is the top only leader – leadership is beyond. Struggle at the top
percolates down.
 Leaders at established organizations and entrepreneurs face different kind of challenge
 Today the established can vanish – new can become a giant yet vanish – is there a case for a
sustainable business module.
 World, i,e. Complex, fluid, exciting and dangerous – require broad , flexible, imaginative thinking for
growth and survival. This is what is called responsible leadership. Such an enterprise involve a
struggle sometime a long drawn one. And there are people who choose and seek position of
leadership and embrace the struggle.
 The key factor – uncertain world, dangerous unforgiving, uphill task, fear of failure on one side ( NO
DEFINITE GUIDE POST) and tencity, grief and faith on the other.
Markets everywhere- place to buy/sell
 Johnson & jhonson – Telenol crisis in 1982
 Volkswagon – James Burk , CEO
 Cocal Cola crisis in India
 Battery problem in Samsung
 Recent Maggi crisis
 Modern bakery crisis
 Investors, consumers, regulators etc are all involved in a crisis. Essentially, it is the crisis of the
Market
 There is a market for everything for companies, components, funds, capabilities, govt influence,
human talents, child labour, body organs, even womb, human eggs etc....case of computer mouse –
IBM to Apple
 Combination and recombination is the most daunting task. It can be creative, destructive also.
 Technology may re-draw the world dramatically without any respect for time.
 What is re-combination – ideas, funds, technology and people
 Ideas – Microsoft vrs people – Laptop vrs tabs/phone
 Technology – pager vrs mobile
 Funds – venture capital
 People – German accenting 80000 refugees
 Political – economic event – Brexit
 Dangerous yet exciting
 Competitive yet potential for innovation
 Disruptive yet regenerative
All those market forces make reconsider what is ethical – responsible leadership both at top and
layered. Going up to the top of the mountain and staying there Hurly Burly of life.

History – institution – culture create different context. There are two sides Empirical & Conceptual –
Intuitive also.
The contemporary answers to eternal questions
“Everything shall be OK have faith in God”
“Everything shall not be OK have faith in God”

ANSWERS
Ubiquitous intense market pressures and continuous recombination. Serving the stakeholders is not
doing right things
A) The first task is INTELLECTUAL
Leaders’ efforts – close observation, imagination, data gathering and analysis of the swirling content
around the organization today and give it a direction
B) Familiar Accountability to Board of Directors, management, stock/shareholders,
lw/regulation/Regulators/Govt./Society at large, Humanity etc. Seems less relevant It is difficult to
 identify most of these they are becoming more abstract from yester years. Leaders are to define
their own accountability
C) Guardians have to Guard themselves. They are to be self critical. They have to take responsibility
themselves. They are open minded, evolving and fundamentally make fallible commitment yet
remain truthful, sincere etc.
Experiment, experience, errors, failure and serendipity (accidental discoveries)
Willingness to struggle, learn, adapt and eventually more roughly forward haltingly – constantly
remember courage is the midpoint between Recklessness and timidity.
D) Do core values like honesty; integrity, respect for individual etc are valid. If yes to what extent? 2%
to 5% after belly is full; shall we talk from the pulpit, discourse?
E) One has to constantly review these in view of market forces, business compulsion, and conviction.
Should I take a wider view or wide angel view? Say should you engage or walk out of it?
F) It is more than money, compensation, status, allure of success etc.
G) They accept a good struggle, love to challenge even themselves, they know that a recombinant
market offers no guarantee of success. Market can derail them. They have courage-managerial
courage. Doing right thing with dedication for a principle, ideal, idea, etc even at a great personal
cost/danger/risk.
H) Managerial courage- long struggle – intellectual, moral, emotional, even physical. Fallible
commitments for ones’ self, an organization, strength to struggle hard – creatively hard to make
fallible - infallible. Willingness to risk, face vulnerability. Pursue the worthwhile through uncertainty,
risk, doubt, frustration, and road blocks. It isn’t Alexander conquest but Moses bringing back Jew
back to Israel