Introduction to Business Ethics

When we hear that someone has been accused of immoral or unethical behavior, we tend to
understand the meaning in terms of the context of practice in which the accusation arises.

 In Congress, “ethics” often reduces to accepting bribes or doing the bidding of contributors.
 In the Academy it is frequently associated with plagiarism or falsifying research results.
 Corporations or charitable organizations are considered to have behaved unethically insofar as
they are revealed to have carried out their operations in ways that damage or exploit workers or
people living in their immediate environment or have pocketed or misapplied charitable
institutions.

Understanding the foundation of the business ethics is very important to every decision makers and
members of the corporate organization. Easy resolution can be created and cautiousness for possible
repetitions of ethical issues can be observed and examined.

WHAT IS ETHICS?
- Derives from the Greek word ethos – meaning “character” - also known as moral philosophy,
which is a branch of philosophy that involves "systematizing, defending and recommending
concepts of right and wrong conduct".
- Involves understanding the differences between right and wrong thinking and actions and using
principled decision making to choose actions that do not hurt others. Although intuition and
creativity are often involved in having to decide between what seems like two “wrong” or less
desirable choices in a dilemma where there are no easy alternatives, using ethical principles to
inform our thinking before acting hastily may reduce the negative consequences of our actions.

THREE CATEGORIES OF ETHICS

1. METAETHICS
- The study of the concept of ethics
- Considers where one’s ethical principles come from, and what they mean? It focuses on
issues of universal truths, the will of God, the role of reason in ethical judgments, and the
meaning of ethical terms themselves. More practically, if we are studying a case or
observing an event in the news, we can acquire about what and where a particular CEO’s or
professional’s ethical principles (or lack thereof) are and where in his/her life and work
history these beliefs were adopted.

2. NORMATIVE ETHICS
- The study of how to determine ethical values
- More practical; this type of ethics involves prescribing and evaluating ethical behaviors –
what should be done in the future. How do we decide if something is right or wrong? We
can inquire about specific moral standards that govern and influence right from wrong
conduct and behaviors. Normative ethics also deals with what habits we need to develop,
what duties and responsibilities we should follow, and the consequences of our behavior
and its effects on others.

3. DESCRIPTIVE ETHICS
 The study of the use of the ethical value
 Involves the examination of other people’s beliefs and principles. It also relates to
presenting –describing but not interpreting or evaluating –facts, events, and ethical actions
in specific situations and place. Is x right or wrong? (e.g. Is capital punishment right or
wrong?)
 Application of ethical value

TYPES OF BUSINESS ETHICS

1. MORAL MANAGEMENT
 Moral management strives to follow ethical principles and precepts, moral managers strive
for success, but never violate the parameters of ethical standards. They seek to succeed only
within the ideas of fairness, and justice. Moral managers follow the law not only in letter but
also in spirit. The moral management approach is likely to be in the best interests of the
organization, long run.
 2. AMORAL MANAGEMENT
 This approach is neither immoral nor moral. It ignores ethical considerations. Amoral
management is broadly categorized into two types – intentional and unintentional.
a. Intentional amoral managers exclude ethical issues because they think that general
ethical standards are not appropriate to business.
b. Unintentional amoral managers do not include ethical concerns because they are
inattentive or insensitive to the moral implications

3. IMMORAL MANAGEMENT
 Immoral management is synonymous with “unethical” practices in business. This kind of
management not only ignores concerns, it is actively opposed to ethical behavior.

BUSINESS ETHICS
 Applies ethical reasoning to business situations and activities. It is based on a combination of
distributive justice –that is, the issuing of rewards for judgment that is placed on all activities’.
 The study of moral standards and how they apply to the systems and organizations through
which modern societies produce and distribute goods and services, and to the people who work
in these organizations’.

ORGANIZATIONAL ETHICS
 Refers to the rightness of the decisions and behaviors of individuals and the organizations of
which they are a part. The definition of Buchholz and Rosenthal (1998) highlights this.
 ‘Organizational ethics is concerned with good and bad or right and wrong behavior and practices
that take place within a business context. Concept right and wrong is increasingly being
interpreted today to include the more difficult and subtle questions of fairness, justice and
equality’.

WHAT IS BUSINESS ETHICS?

 WALLACE AND PEKEL
- Attention to business ethics is necessary during times of fundamental change as the moral
values that were not taken seriously are strongly questioned at that time.
 JOHN DONALDSON (1989)
- Business ethics in short can be described as a systematic study of moral (ethical) matters
pertaining to business, industry or related activities, institutions or practices and beliefs.
 LAURA NASH (1990)
- The study of how personal moral norms apply to the activities and goals of commercial
enterprise. It is not a separate moral standard, but the study of how the business context
poses its own unique problems for the moral person who acts as an agent of this system’.
Nash stated that business ethics deals with three basic areas of managerial decision making:
a. Choices about what the laws should be and whether to follow them;
b. Choices about economic and social issues outside the domain of law; and
c. Choices about the priority of self-interest over the company’s interests.
 STRENBERG (1994)
- He also opined that ethics mainly refers to distributive justice in deciding the business
activities.
 CARROLL and BUCHHOLTZ (2001)
- In interpreting business ethics, Carroll and Buchholtz (2001), view that the concept of
business ethics has become relative and includes grey of right and wrong.
 C.S.V. MURTY (2006)
- In defining business ethics C.S.V. Murty (2006) observed that ‘moral principles define right
and wrong behavior in the world of business. What constitutes right and wrong behavior in
business is determined by the public interest groups, and business organizations, as well as
an individual’s personal morals and values’.
 STANFORD ENCYCLOPEDIA OF PHILOSOPHY (2008)
- 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.

In simple terms, Business ethics/corporate ethics are practically concerned with the entire gamut of
functions of an organization which scrutinizes and set the codes related to the moral/ethical principle to
find the solutions to the problems faced by an employee in specific and the organization in general.
From the above definitions, which echo similar views on ethics with minor shades of difference, it can be
concluded that business ethics are related to:
 Morally right and wrong behavior,
 In the business context,
 Including questions of fairness, justice and equity,
 That which require application of moral standards by persons in the organizations, and
 The moral standards that are not separate, but derived from society.

Myths Regarding Business

Ethics
MYTHS
 A belief given uncritical acceptance by the members of a group, especially in support of existing
or traditional practices and institutions. Myths regarding the relationship between business and
ethics do not represent truth but popular and unexamined notions.

MYTH 1: ETHICS IS A PERSONAL, INDIVIDUAL AFFAIR, NOT A PUBLIC OR DEBATABLE MATTER

 This myth holds that individual ethics is based on personal or religious beliefs, and that one
decides what is right and wrong in the privacy of one’s conscience. This myth is supported in
part by Milton Friedman, a well-known economist, who views “social responsibility,” as an
expression of business ethics, to be unsuitable for business professionals to address seriously or
professionally because they are not equipped or trained to do so.
 Although it is true that individuals must make moral choices in life, including business affairs, it
is also true that individuals do not operate in a vacuum. Individual ethical choices are most often
influenced by discussions, conversations and debates and made in group contexts. Individuals
often rely on organizations and groups for meaning, direction, and purpose. Moreover,
individuals are integral parts of organizational cultures, which have standards to govern what is
acceptable. Therefore, to argue that ethics related to business issues is mainly a matter of
personal or individual choice is to underestimate the role organizations play in shaping and
influencing members’ attitudes and behaviors.

MYTH 2: BUSINESS AND ETHICS DO NOT MIX

 This myth holds that business practices are basically amoral (not necessarily immoral) because
businesses operate in a free market. This myth also asserts that management is based on
scientific, rather than religious or ethical, principles. The widespread consequences of computer
hacking on individual, commercial and government systems that affect the public’s welfare, like
identity theft on the Internet (stealing others’ Social Security numbers and using their bank
accounts and credit cards) and kickbacks, unsafe products, oil spills, toxic dumping, air and
water pollution and improper use of public funds have contributed to the erosion.”
 The ethicist Richard DeGeorge has noted that the belief that business is amoral is a myth
because it ignores the business involvement of all of us. Business is a human activity, not simply
a scientific one, and, as such, can be evaluated from a moral perspective. If everyone in business
acted amorally or immorally, as a pseudoscientific notion of business would suggest, businesses
would collapse. Employees would openly steal from employers; employers would recklessly fire
employees at will; contractors would arrogantly violate obligations; and chaos would prevail.
 Finally, the belief that businesses operate in totally “free markets” is debatable. Although the
value or desirability of the concept of a “free market” is not in question, practices of certain
firms in free markets are.

MYTH 3: ETHICS IN BUSINESS IS RELATIVE

 In this myth, no right or wrong way of believing or acting exists. Right and wrong are in the eyes
of the beholder. The claim that ethics is not based solely on absolutes has some truth to it.
 However, to argue that all ethics is relative contradicts everyday experience. For example, the
view that because a person or society believes something to be right makes it right is
problematic when examined. Many societies believed in and practiced slavery; however, in
contemporary individuals' experiences, slavery is morally wrong. When individuals and firms do
business in societies that promote slavery, does that mean that the individuals and firms must
also condone and practice slavery? The question that can be asked regarding this myth is:
 Relative to whom or what? And why? The logic of this ethic, which answers that question with
"Relative to me, myself, and my interests” as a maxim, does not promote community.
 Also, if ethical relativism were carried to its logical extreme, no one could disagree with anyone
about moral issues because each person's values would be true for him or her. Ultimately, this
logic would state that no right or wrong exists apart from an individual's or society's principles.
How could interactions be completed if ethical relativism was carried to its limit?

MYTH 4: GOOD BUSINESS MEANS GOOD ETHICS

 This myth can translate to “Executives and firms that maintain a good corporate image, practice
fair and equitable dealings with customers and employees, and earn profits by legitimate, legal
means are de facto ethical.” Such firms, therefore, would not have to be concerned explicitly
with ethics in the workplace.
 Just do a hard, fair day's work, and that has its own moral goodness and rewards. The faulty
reasoning underlying this logic obscures the fact that ethics does not always provide solutions to
technical business problems. Moreover, as Buchholz argued, no correlation exists between
“goodness” and material success. It also argued that “excellent” companies and corporate
cultures have created concern for people in the workplace that exceeds the profit motive.

MYTH 5: INFORMATION AND COMPUTING ARE AMORAL

 This myth holds that information and computing are neither moral nor immoral – they are
amoral.
 They are in a “gray zone,” a questionable area regarding ethics. Information and computing have
positive dimensions, such as empowerment and enlightenment through the ubiquitous
exposure to information, increased efficiency, and quick access to online global communities. It
is also true that information and computing have a dark side: information about individuals can
be used as “a form of control, power and manipulation.” The point here is to beware the dark
side: the misuse of information, social media and computing. Ethical implications are present
but veiled. Truth, accuracy and privacy must be protected and guarded: “Falsehood, inaccuracy,
lying, deception, disinformation, misleading information are all vices and enemies of the
Information Age, for they undermine it. Fraud, misrepresentation and falsehood are inimical to
all of them.” Logical problems occur in all five of the above myths. In many instances, the myths
hold simplistic and even unrealistic notions about ethics in business dealings.

BENEFITS OF BUSINESS ETHICS

1. Business ethics helps in improving society by establishing government agencies, unions, laws
and regulations in the society.
2. Business ethics helps an organization maintain ethical values during times of crisis. Business
ethics programs guide leaders about the right or wrong ways of dealing with complex dilemmas
and how they should act during that time.
3. Business ethics helps employees behave according to the ethical values that are preferred by
the top management of an organization. An organization discovers many differences between
the values that reflect in the actions of the employees and the values preferred. Employees
experience a relationship that is strong between the values of the organization and their values,
Ethical values induce teamwork and increase the efficiency of the employees.
4. Ethics supports employee growth. When an employee pays attention to ethics, it induces
confidence in the employee to deal with reality and face both good and bad circumstances.
5. Ethics have become legal instruments. These days, there are several lawsuits regarding
personnel matters and the influence of the services of the organization on the investors and
customers. Major ethical principles that are applied in the organization are the laws that are
made by the government. A greater attention on ethical issues on the part of the government
ensures high ethical procedures and policies in the workplace. An employee, for example, is
subject to breach of contract on non-compliance of the terms and conditions of the contract.
6. Business ethics helps to avoid criminal acts of 'omission' and it also helps in lowering the fines.
Ethics helps in ascertaining the violation of ethical issues and helps in rectifying the violation
that is committed by the organization. The guidelines set by an organization about ethical values
helps to lower fines. An organization, for example, that has knowingly violated a contract is
considered to have committed a criminal act and the organization is subject to penalty.
7. Business ethics helps to identify and manage the values associated with quality management,
strategic management and diversity management. For managing these values, ethical programs
record the values, develop policies and procedures and then provide training to the employees
on these policies and procedures. These ethical programs manage certain values of quality
management, such as reliability, performance, measurement and feedback. Similarly, these
 programs also manage various strategic values, such as reducing cost and increasing market
share.
8. Business ethics helps in building a strong and positive public image of an organization. Ethical
values enable an organization to increase their goodwill in the market. Those organizations that
value their customers have a positive influence in the market. Ethical values are the milestones
that enable the establishing of a successful and socially responsible business.
9. Business ethics strengthens organizational culture. Ethical values improve relationships between
an organization and its customers. They strengthen the organization by ensuring consistency in
the standard and quality of the product.
10. Business ethics makes sure that the right activities are performed in an organization

NEED FOR BUSINESS ETHICS

1. Ethics corresponds to basic human needs. It is human trait that man desires to be ethical, not
only in his private life but also in his business. These basic ethical need compel the organizations
to be ethically oriented.
2. Values create credibility with public. A company perceived by the public to be ethically and
socially responsive will be honored and respected. The management has credibility with its
employees precisely because it has credibility with the public.
3. An ethical attitude helps the management make better decisions because ethics will force a
management to take various aspects-economic, social, and ethical in making decisions.
4. Value driven companies are sure to be successful in the long run, though in the short run, they
may lose money.
5. Ethics is important because the government, law and lawyers cannot do everything to protect
society.

Ethical Concepts
 Throughout human history, there have always been ideas about right and wrong. To function,
any culture needs to define proper and improper behaviors. There are rules and laws in any
complex society, but underlying there is always a set of moral values. These values are the roots
of what we call “ethics,” which has been defined as the “discipline of dealing with what is good
or bad and with moral duty and obligation.”
 For centuries, ethics has been among the great, deep subjects of philosophical study and
debate, but only in the 20thcentury did the modern idea of what we now call “business ethics”
truly emerge. Private enterprises have become powerful creators of wealth in today’s world, but
this power has, at times, been abused. So, there’s a clear social need to investigate and
influence the ethical foundations of these enterprises.

Ethics is the branch of philosophy that is used to evaluate human actions. Some basic ethical concepts in
business are as follows:

 ETHICAL SUBJECTIVISM
 This concept emphasizes that the ethical choice of the individual decides the rightness or
wrongness of his behavior.

 ETHICAL RELATIVISM
 According to this concept, no principle is universally applicable and so it would be inaccurate
to measure the behavior of one society with another’s principles or standards. Relativism
overlooks the fact that there may be enough evidence to believe than an ethical practice is
based on false belief, illogical reasoning and so on.

 CONSEQUENTIALISM
 Consequentialism is based on two ideas: the concept of value and the maximization of
value. If, for example, honesty is considered a value, an act is considered ethical only if it
maximizes this value. An act, which does not maximize the said value, is not ethically
permissible.

 DEONTOLOGICAL ETHICS
 This concept stresses that ethical values can be developed from the concepts of reason as all
rational individuals possess the ability to reason. We may, for example, end up causing pain
unknowingly while trying to create happiness. Therefore, the ethical value of an action
cannot be determined by its consequences. Instead, it is in the motive that lies behind the
particular action.
  ETHICS OF VIRTUE
 This concept emphasizes those traits that give the individual a sense of satisfaction from
ethical point of view. Virtuous acts like courage, honesty, tolerance, and generosity are done
as a way of living and not by chance.

 ETHICAL DILEMMAS IN BUSINESS

 An organization’s ethical problems indicate a conflict between its economic and social
performance. This results in a dilemma for managers. Since people handle business, it is a
crucial requirement to check and ascertain ethical behavior at a personal level. This will
confirm ethically correct responses from the organization to the mutual actions of
individuals.

ETHICAL MODELS
 Ethical models can be used to define ethical situations and manage ethical dilemmas that may
occur in the organizations. The Golden Rule Model and The Right-driven or Kantian model are
two operational models that have emerged from the work of philosopher Immanuel Kant.

 THE GOLDEN RULE MODEL

- This model originated from the New Testament specifies people should treat others in the
same manner that they themselves would like to be treated. It is a fundamental principle
found in every culture and religion and it is the most important basis for the modern
concept of human rights. It is also called the ethics of reciprocity as it stimulates an
individual to put oneself in the other person’s shoes and then evaluate how one would wish
to be treated in that particular situation. This proves that this rule is absurd without
identifying the receiver and the situation. The ethics of reciprocity should not be confused
with revenge or penalizing justice. The ethics also mentions that one has the freedom to do
anything as long as those activities do not harm anyone. If this golden rule is applied to
every anomaly, then many unethical consequence may result in causing harm to others with
critical analysis, which may lead to harassments. Different people have different ideologies,
beliefs and may belong to different cultural heritages. This difference is the reason behind
the difference people’s behavior towards various situations.

 THE KANTIAN MODEL

- This model is based on the hypothesis that everybody has some fundamental rights in this
ethical universe. So, any action, is ethically correct if it reduces the stakeholder’s collective
violation of rights. This model willingly provides assistance in the internal audit review and
helps in managerial decision-making. Kant did not believe that any outcome was good from
its origin. According to him, good is not always intrinsic. He did not believe in ‘good’
character traits like ingenuity, intelligence and courage. In fact, he used the term ‘good’ to
describe ‘goodwill’, by which he meant the resolve to perform the act purely in accordance
with one’s duty. If the actions are predetermined then they cannot be described as free and
moral. He believed that to act morally, freedom is required.
- According to Kant there are two concepts of duty. According to one concept, duty is just
following orders imposed by others. The other concept is that duty is internal and can be
imposed on oneself. He considered that inclinations constitute motivation whereas others
believed that it was the physical world that acted as motivation, But Kant believed that the
sources of the physical world might be unreliable, passive and phenomenal. Sometimes,
man’s mind is over-clouded by sorrows due to his lack of sympathy from others but still has
the power to help those in distress. He no longer needs any support as he is sufficiently
occupied with his own inclinations, making him different to the sufferings of others. He
becomes adaptive to sufferings with the help of the patience and endurance he has
developed in due course of time. This begins to show his worth of character and
temperament.
- Most of us live by rules of the time. Some of them are called categorical imperatives that are
unconditional commands which bind everyone at all times. There are two types of
imperatives: hypothetical imperative which is to say one wants to achieve success then he
should work in a free way and not bind himself to his inclinations, and categorical
imperative, for example, the imperative to always tell the truth as it is unconditional and can
be applied at all times.
- Kant also introduced maxims, which are subjective rules that guide actions and help an
individual to act according to the relevant description. There is sufficient generally in
description. All actions have maxims like:
 Never lie to your colleagues.
  Never act in a manner that would make your family or organization ashamed of you.
 Always work hard to be the best performer.
 It is acceptable to cheat if the pattern demands it.

Ethical Values
 Ethical values and actions are an integral part of ethical societies. Ethical actions in the ethical
society refer to the initiative taken by the people to show their commitment towards building a
better life for them and for their children. Ethical actions are also termed as the categorical
imperative actions. The whole world is created by action and is meant for action. The future
depends on the actions performed by the people. Ethical actions are the activities performed by
the social, national or personal group. The people in these groups perform the activities in a
spirit of service and commitment. The dimensions of ethical actions can be divided into two
major categories. These categories are:

a. COMMUNITY SERVICE
- Community service aims at helping the organizations and the people in the
community.

b. SOCIAL ISSUES SUPPORT

- Social issues support aims at giving emotional and physical support to
organizations and the people in the society. Social issues support can come
in different forms. These forms are:
 Emotional support
 Informational support
 Instrumental support
 Personal feedback
 Sharing viewpoint

TYPES OF ETHICAL ACTIONS

 DESTRUCTIVE ACTIONS
- Are those that can harm the people performing the actions as well as others. It is very
difficult for people to find out which actions are harmful. Some actions can cause damage in
one situation and the same actions can be useful in some other situation. Buddhist ethics
point out that the motivation and frames of mind are the two concepts that can be useful to
determine destructive actions. A destructive action must be motivated by passion, anger
and naivety about its effects. Buddhist ethics determined that most of the mental, physical
and verbal actions could be destructive.
- The ten destructive actions determined by Buddhist ethics are:
 Taking the life of others
 Taking something from others that has not been given to them
 Lying
 Talking and speaking insensitively
 Using cruel language
 Using language consisting of idle words
 Thinking thoughts of meanness
 Thinking jealous thoughts
 Distorted and aggressive thinking
 Behaving like a moderator

 CONSTRUCTIVE ACTIONS
- Are also considered as desire-prompted duties. Constructive actions are always done by
people who consider if their responsibility or duty to perform these actions. These actions
can be performed either daily or on some special time. These actions always provide a result
that is purposeful and self-determined. Constructive actions can be of three different types.
These types are:

a. OBLIGATORY ACTIONS
- These actions can be performed by any type of person in the society. These
actions do not affect any special category of people. Every man, society and
the universe would be affected by these actions.
 b. PROHIBITED ACTIONS
- Prohibited actions do not prove to be of worth for the people. The non-
performance of prohibited actions is also obligatory.

c. OPTIONAL ACTIONS
- Optional actions are also called hypothetical imperative actions. These
actions prove to be beneficial to human beings and are also performed by
the people to secure their personal benefits. Therefore, ethical actions are
responsible for performing the obligatory and optional actions successfully
and avoiding the prohibited actions.

CHARACTERISTICS OF ETHICAL ACTIONS

 Ethical actions are not only activities to serve others but also the inner temperament of the
mind.
 Ethical actions give importance to helping others.
 Ethical actions are not the instrumental value but the intrinsic value.
 Ethical actions are performed for prosperity, success and sound decisions.
 Ethical actions are used to avoid prohibited constructive actions and to promote obligatory and
optional actions.
 Ethical actions are performed as duties or responsibilities of individuals.

Morality
 Morality refers to the concept of human action which pertains to matters of right and wrong.
Ethical actions should be performed as a community standard rather than as an individual
responsibility. Individuals in a society can perform three types of ethical actions. These are:

a. MORALITY - actions are performed to secure the future of others.

b. RELIGION - the collection of ethical actions that can affect a group or society.
c. CIVIL LAW - actions are a collection of ethical actions that can be used to change or
control the behavior of an individual in society.

 The terms ‘morality’ and ‘ethics’ have a strong relationship with each other. Morality refers to
moral character or standards. Morality is used to analyze the behavior of the individual and the
standards of conduct. Ethics is used to refer to the formal study of these standards. Morality can
be considered as ethics inaction.

PROCESS OF MORAL DEVELOPMENT

 Moral values are not born characteristics but are acquired gradually over a period of time. A
newly born child has no moral values. He learns them as he grows from his surroundings. Some
are taught to him by his family and teachers, some he acquires from reading religious literature
and some he learns by observing and feeling. This process can be broadly categorized into three
distinct categories:

1. PRE-CONVENTIONAL LEVEL
- Person follows the dictates of law and good behavior our of fear of punishment or
expectation of reward.

2. CONVENTIONAL LEVEL
- Person conforms to the behavioral standards to meet the expectations of peers and
society to avoid ridicule and gain acceptance.

3. POST-CONVENTIONAL LEVEL (PRINCIPLED LEVEL)

- Person develops a personal, internal set of standards and values which he is not
willing to compromise even in the face of threat or personal loss. He sticks to these
values for his own sake (About 20% of adults reach this stage fully or partially).

 The mind is responsible for the thoughts and feelings of individuals. The existence of individuals
and their activities is only due to their mind. The feelings and opinions of persons depend on
their mind. A person having a good mind has good feelings and a person having a disturbed
mind has disturbed feelings.
  Professor Gardner suggests five types of minds. The ethical mind is one of them. The others are
disciplined mind, synthesizing mind, creating mind and respectful mind. The ethical mind of a
person is affected by the nearby surroundings and culture. Ethical minds can be of two types.
These are:

a. SUBJECTIVE MIND
- The subjective mind faces motivation from the different objects of the world. This
type of human mind is also called the outer mind.

b. OBJECTIVE MIND
- This type of mind reacts to the encouragement received from the outside world.
This type of human mind is also called the inner mind.

 Training of the mind can be accomplished by two methods. These methods are:

1. ART OF DISENGAGEMENT
- Mental disengagement can only be developed by developing a mind that is free
from abstracted and fractional feelings and is more concentrated.

2. SELF-DENIAL
- Self-denial is an inner characteristic of a person, by which he does not let any
extraneous thoughts enter his mind so as to achieve something. This is one of the
methods to train the mind.

SELF DEVELOPMENT
- The responsibility and duty of the individuals to learn and develop themselves. Individuals
can use the process of assessment, reflection and take necessary action to achieve self-
development. Self-development is the only way for individuals to update their skills and
knowledge in order to face the new problems that emerge in life.
- Self-development also determines one’s future career direction.

 The person undergoing self-development does not depend on the support of the outside world.
Such type of person becomes self-sufficient. Self-development in individuals makes them
independent.
 Self-development brings in the feature of objectivity in individuals. Such feature gives individuals
an impersonal attitude.
 A self-developed person looks happy in life. His inner nature looks full of cheer and joy. He will
not be depressed and miserable.
 A self-developed person becomes dynamic, active and brighter in life.
 A self-developed person is more lovable.

METHODS OF DEVELOPMENT

1. PATH OF ACTION
- It states that people should only perform their job and should not care for the fruits or
results. Ethical actions are a way to perform one’s duties or responsibilities in an
unselfish manner.

2. PATH OF KNOWLEDGE
- The path of knowledge means to move towards acquiring knowledge. It also eliminates
the distance between the subjective mind and the objective mind. Thus, the path of
knowledge makes a man confident and self-developed.

3. PATH OF DISCRIMINATION
- This path assists a person to identify his inner faults. The person has to transform the
inner motives and mental attitudes to train the mind. The path of discrimination forces
individuals to control the emotions of attachment, fear and anger.

4. PATH OF SACRIFICE OF WEALTH

- It refers to donations of wealth in charities without a consequence in mind. This feature
makes people more positive towards life and helps individuals overcome greed.
 5. PATH OF SELF-CONTROL
- Self-control is an internal characteristic of individuals. Self-control can be of five types:
These are:
 Non-injury
 Truthfulness
 Non-stealing
 Celibacy
 Non-acceptance of gifts

6. PATH OF MIND-CONTROL
- It consists of concentration and meditation, Concentration refers to focusing on the
object on which one is working. Devotion to God helps in achieving concentration.
- Meditation refers to the state of the body in which the person feels relaxed and the
mind is more focused. Therefore, meditation helps in achieving concentration.
- The path of meditation is also called the path of yoga. Yoga is the only way to keep the
mind calm and focused and hence to get concentration.

Ethical Decisions
 The management of an organization is responsible for making effective decisions.
 Managers are responsible for all business operations and they also make all the important
decisions.
 Managerial decision-making involves defining problems and then structuring them for positive
results.

ETHICAL DECISION MAKING

- is a method of evaluating and choosing the alternatives decided by ethics management.

 The following should be kept in mind while making ethical decisions:

 Identify and eliminate unethical options in the alternatives.
 Identify complex, ambiguous and incomplete facts and try to avoid them.
 Determine the ethical dilemma and resolve it.
 Select the best ethical alternative.

 Business strategies are an important part of businesses, firms and industries. To make a business
strategy, all businesses firms and industries need to develop a strategic plan once a year.
 Business strategies are used for the following purposes:
 They help determine the products and services that an organization needs to provide.
 They help determine the various industries in which the organization competes.
 They help identify the competitors, suppliers and customers of the organization.
 They help analyze the long-term goals of the firm.