1.Differentiate between values and ethics? Values can be defined as those things that are important to or valued by someone.

That someone can be an individual or, collectively, an organization. One place where values are important is in relation to vision. One of the imperatives for organizational vision is that it must be based on and consistent with the organization's core values. Values are the embodiment of what an organization stands for, and should be the basis for the behavior of its members. However, what if members of the organization do not share and have not internalized the organization's values? Obviously, a disconnect between individual and organizational values will be dysfunctional. Additionally, an organization may publish one set of values, perhaps in an effort to push forward a positive image, while the values that really guide organizational behavior are very different. VALUES PROVIDE THE BASIS FOR JUDGMENTS ABOUT WHAT IS IMPORTANT FOR THE ORGANIZATION TO SUCCEED IN ITS CORE BUSINESS. For example when soldiers may be called upon to expose themselves to mortal danger in the performance of their duty, they must be absolutely able to trust their fellow soldiers (to do their fair share and to help in the event of need) and their leaders (to guard them from unnecessary risk). Values are what we, as a profession, judge to be right." Individually or organizationally, values determine what is right and what is wrong, and doing what is right or wrong is what we mean by ethics. To behave ethically is to behave in a manner consistent with what is right or moral. Organizations, to some extent, define what is right or wrong for the members of the organization. Ethical codes, such as West Point's "A cadet will not lie, cheat, or steal, or tolerate those who do," make clear what the organization considers to be right or wrong. 2. Out of the three major normative theory which one is useful for constructing satisfactory proceeding justifying ethical obligation of business? The three leading normative theories of business ethics are the stockholder, stakeholder, and social contract theories. These theories present distinct and incompatible accounts of a business person's ethical obligations, and hence, at most one of them can be correct. The stockholder theory is the oldest of the three, and it would be fair to characterize it as out of favor with many contemporary business ethicists. To them, the stockholder theory represents a disreputable holdover from the bad old days of rampant capitalism. In contrast, the past decade and a half has seen the stakeholder theory gain such widespread adherence that it currently may be considered the conventionally-accepted position within the business ethics community. In recent years, however, the social contract theory has been cited with considerable approbation and might accurately be characterized as challenging the stakeholder theory for preeminence among normative theorists. The stockholder theory is neither as outdated nor as unacceptable as it is often made to seem, and, further, that there are significant problems with both the stakeholder and the social contract theories. The

stakeholders are having a wide range of needs .It is very difficult to satisfy all these need If stakeholders are given the liberty to demand their claim directly, it would be very difficult to address them It is also not possible to involve all the stakeholders in the decision making process. The main problem with social contract theory is it is not a contract for the organization to do social activities .Many firms do social activities not out of willingness but compulsion .Also serving the society may have an impact on the profitability of the f
What are the sources of ethical dilemmas in business ? how can these be solved?

Ethical issues in business include concerns of quality, value and honesty as well as the category of corporate responsibility. In addition to proper treatment of all workers, business ethics basically boil down to being honest about what products and services are in relation to their origin and price. Corporate responsibility involves a sense of protection in offering safe products for consumers that are created through decent working environments for the people who manufacture or create them. To be dishonest in what ingredients are included, where they originated or where a good was made is an example of poor business ethics and a lack of corporate responsibility. The supply chain is the path of getting a product to the end user. Different ethical issues in business that involve the supply chain involve the workplace, workers and the marketing mix. The marketing mix includes the product, packaging, price, place or distribution and promotion. Each of these components can create a different ethical issue. For instance, unethical advertising would promote an unsafe product as being safe. Fruit that was actually grown in Mexico, yet stamped as being imported from Canada is an example of unethically representing the distribution part of the supply chain in the marketing mix strategy to sell the goods to unsuspecting consumers. Ethical issues in business include concerns of quality, value and honesty as well as the category of corporate responsibility. In addition to proper treatment of all workers, business ethics basically boil down to being honest about what products and services are in relation to their origin and price. Corporate responsibility involves a sense of protection in offering safe products for consumers that are created through decent working environments for the people who manufacture or create them. To be dishonest in what ingredients are included, where they originated or where a good was made is an example of poor business ethics and a lack of corporate responsibility. The supply chain is the path of getting a product to the end user. Different ethical issues in business that involve the supply chain involve the workplace, workers and the marketing mix. The marketing mix includes the product, packaging, price, place or distribution and promotion. Each of these components can create a different ethical issue. For instance, unethical advertising would promote an unsafe product as being safe. Fruit that was actually grown in Mexico, yet stamped as being imported from Canada is an example of unethically

representing the distribution part of the supply chain in the marketing mix strategy to sell the goods to unsuspecting consumers. Charging a price far above the suggested retail one is another type of unethical business practice. Using packaging that doesn't contain warnings such as for a cleaner with harmful fumes to be used only in a well-ventilated area is a different kind of unethical business issue. Most countries have strict regulations and laws on what manufacturers and marketers must reveal about a product created for sale. Consumer advocate groups are another source for advocating ethical issues in business. If a company knows that unethical issues surround its products or services, yet doesn't take any action to correct it, this can in itself be a breach of ethics. Workplaces and the workers involved in manufacturing products relate to ethical issues revolving around being paid fairly for their work as well as being treated humanely. Ethical issues in business that are relevant to these concerns are often categorized under the term corporate social responsibility (CSR). They include slave and child labor or wages that are so low that healthy survival is close to impossible. Dangerous workplaces or work environments in which staff are beaten or treated violently are other types of CSR ethical issues. Ethical dilemmas arise due to Failure of personal character Companies give stress to the academic qualifications and other achievements but they seldom bother about the personal character and ethics and values of the person. 2.Conflict of personal values and organizational goals Due to intensive competition or exclusive focus on profit making companies may resort to unethical practices and managers may not be able to accept it due to personal principles eg : Companies may compel the managers to produce obnoxious products 3.Organizational goals versus social values Managers are responsible to attain the targets. They may force to do it at the cost of social values .It has been experienced that if a firm stick to the ethical values, in the long run it would help the organization . 4. Personal beliefs and organizational practices The organizational practice can be against the personal beliefs of employees Several organizations are accused of racial discriminations and gender bias . How to resolve ethical dilemmas? I) Analyze the consequences Make an analysis based on the following questions a. Who are the beneficiaries of your action? b. Who are likely to be harmed by your action? c. How long these benefits and harm do exist? After analyzing the above answers one may identify the optimum one.

II) Analyze the actions After identifying the best possible options, find out how the proposed actions measure against moral principles such as honesty, fairness, equality, etc and find whether it follows general decency, ethical principles ect. From the analysis choose the action which is least problematic III) Make a Decision Having considered all the factors among various options, choose a rational decision . 4.What are the models ethicists have provided to guide a businessman take decisions that are both moral and profitable? Ethical Models in Decision Making Rights Theories It emphasizes the need to protect the legal and moral rights of the individual The decision should not affect the freedom of individual such as 1. free consent 2. freedom of conscience 3. privacy, etc. Justice theories The decisions should result in a situation where all human beings are treated equally There should not be any bias based on gender, caste, region or on any other factors. In some organization, the treatment meted out to the regular employees and temporary employees are totally different even though the temporary employees do more work than the other group Utilitarianism The decision is right , if it is advantageous for the largest number of people It is also proposed that the decision should help to develop the entire society in the long run The Virtue Approach The decision should be consistent with certain morally accepted virtues that would result in the development of humanity .These virtues are pursued by the personalities who are the role models of humanity like Mahatma Gandhi, Mother Theresa, etc. All the above approaches have its own strengths and weaknesses Each theory addresses an ethical aspect and cannot be ignored According to authorities, if a decision meets all these theories, it can be called an ethical decision otherwise it is unethical

5 . Make a critical evaluation of ethical leadership in Indian companies Leadership in recent times has seen increasing corporate scandals resulting in the collapse of hitherto reputable organizations, such as Enron and WorldCom. The canker of unethical leadership cuts across international boundaries, culture and societies. From business and sociological stand points, the consequences of unethical leadership behavior are insurmountable. The canker of unethical leadership cuts across international boundaries, culture and societies. It must be pointed out that the problem of poverty in developing countries to a greater extent is caused by lack of ethical leadership in African area. Typical example of unethical leadership is the case of Enron. Ken Lay, an economist and former undersecretary at the US Department Interior, formed Enron in 1985 by influencing the merger of two companies that dealt in gas. This merger made Enron the largest natural gas company capable of supplying gas to the whole country. Enron was called the seventh largest company in the April 2001 issue of Fortune magazine. The unethical decision by the companys leadership to cook the books coupled with their lack of openness to the workers and shareholder led to the eventual fall of the great company. The consequences of unethical leadership behavior are insurmountable. The Enron case for instance led to the total collapse of a company that was then adjudged by Fortune magazine as the seventh-largest in the United States, and the most innovative company in America. A company that was seen as the best place for investment, and commanded the trust of institutional investors and individuals alike ended up shattering the dreams of these investors. Not only did the fortune of these investors go down the drain, but also the trust of the business public. On the social front unethical leadership behavior causes strife, psychological torture and crime. Taking the Enron case in perspective, it is clear that not only did twelve thousand people lose their jobs, but also their entire retirement and life savings which had been invested in Enron stocks. In the case of WorldCom seventeen thousand employees lost their jobs, and Arthur Andersens involvement in both the Enron and WorldCom cases did not only lead to the demise of the company but also the livelihood of its employees. The fall of these three major companies, was not by mere default, but due to highly unethical behavior of its leaders. In the Enron and WorldCom cases twenty-nine families were affected and factoring the collapse of Andersen the number of families that lost income is highly incredible. In order to make good and ethical leadership judgments this process must be followed. Leadership vision It is common knowledge that no one makes a trip without knowing where s/he is going or expects to be, why the trip should be made, and how to get there. It is only when a leader clearly understands his or her vision, and aligns it to the situation, event or the object at stake that s/he is able to make good and ethical judgments. Analysis of the vision also includes acknowledging the all stakeholders inherent in the vision or the new direction

being sought. Gov. Spitzer, for instance, promised good and ethical governance, and President Kuffour assured the Ghanaian public both during his campaign and inaugural speech of zero tolerance of corruption. However, their actions suggest that they lost sight of what they had stood for and sought. Embedded ethical sensitivity This stage takes into consideration the nature and the ethical sensitivity surrounding the situation, event or the object involved. This usually involves the how of achieving the leaders vision which may present various scenarios. At this stage, it is important to understand the issue from the different perspectives that may be held by the various stakeholders associated with the issue. Evan and Freeman (1998) noted that stakeholders do not prefer to be used merely for organizational ends, but have the right to participate in any decision that affects them . In business for instance, leaders are required not only to satisfy customers, but also the shareholders and employees. In the Enron case, it appears that the companys desire to impress its shareholders, did not only lead to the fraudulent misrepresentation of the financial statements, but also disregarded the interest of its employees. Ethical decision analysis Analyzing the sensitivity reposed in the issue gives the leader the needed background to examine the various options available to responding to the issue at stake. Had Enron been sensitive to all the stakeholders, it would have made a decision that benefited all of them. One unethical decision eventually leads to others. Enrons decision to go into other ventures such as paper pulp, aluminum, steel, lumber and plastics did not only deviated from the companys original vision but also made worse the companys financial woes. The critical question that must be answered during this stage of the process are; 1) How does this decision help achieve the companys vision? 2) Does this decision address the sensitivity of all stakeholders? Ethical motivation The ethical motivation stage seeks to analyze the driving force behind the desire of leadership to make a particular decision. Such a decision must be devoured of any emotion, and strong emotional intelligence here is very critical. Is it the morality surrounding the decision? Is it the pressure from special interests? Is it the sense of achievement? Wherever this inspiration is coming from, it should be one that would at the end of the day satisfy all the stakeholders. In the Enron and WorldCom cases, it is clear that the selfishness of the leaders overshadowed the interest of employees, customers, and the shareholders. It is also undeniable that these various sex scandals that have befallen leaders like Gov. Spitzer was motivated by self interest. Review the decision made In all aspects of my life I had always identified from hindsight certain decision that I would never had made, and I believe most people would feel the same. It is very important that leaders conduct an After Action Review (AAR) especially on any decision that posed a lot of challenges. It is true that situations may vary, but a thorough AAR would equip leaders with the knowledge to approach similar situations whenever one arrives. Gavetti and Rivking supported this when they suggested that strategists success in thinking is by tapping the power of analogy.