Ethics

"What does ethics mean to

you?

??
What does ethics mean to you?

"What does ethics mean to

you?
?????
R.K. Nigam Case- 1995.
Coal mine allocations by government
of india on the advice of state
governments and to power houses
related to that state.

???
Businesses are for profit to
entrepreneurs?
What if company is Private limited
Public limited but unlisted and
Public limited and listed company

Ethics is involved
If an action of individual or
organisation create a situation which
benefit some and harm some others?
How do you see entry of Wal-Mart in
India?

"What does ethics mean to

you?
A few years ago, sociologist Raymond
Baumhart asked business people. Major
replies were "Ethics has to do with what my feelings tell
me is right or wrong.
"Ethics has to do with my religious beliefs.
"Being ethical is doing what the law
requires.
"Ethics consists of the standards of behavior
our society accepts.
"I don't know what the word means."

Three Domains of Human

Action

Domain of
Certified Law
(Legal Standard)

High

Domain of Ethics
(Social Standard)

Amount of
Explicit Control

Domain of Free
Choice
(Personal
Standard)

Low

Ethical Dilemma
Many believe that there are two domains
only domain of law and
free choice
this causes problem

This mean that if action is not illegal or if

law do not appear to be broken it is ethical

Ethical Dilemma
A situation that arises when all alternative
choices or behaviors have been deemed
undesirable.
Potentially negative ethical
consequences, making it difficult to
distinguish right from wrong.

Ethics- defined
The code of moral principles and
values that govern the behaviors of a
person or group with respect to what
is right or wrong.

???
Is alcohol consumption in college
time or during Koshish- illegal, legal,
moral or self decision issue?
If a factory apprehend use of alcohol
or drug in workers- should it make
mandatory to test all on a day?

Criteria for
Ethical Decision Making
Most ethical dilemmas involve
A conflict between needs of the part &
whole.
The individual versus the organization.
The organization versus society as a whole.

What will be your take for above???

Four Considerations in
Ethical Decision Making
Utilitarian Approach
Individualism Approach
Moral-Rights Approach
Justice Approach

Utilitarian Approach
Moral behavior produces the greatest good for the
greatest number.
Computations can be very complexShould indirectly affected be considered or only directly
affected? Use of alcohol by police in night duty???
simplifying them is considered appropriate.

Critics fear a Big Brother approach and ask if the

common good is squeezing the life out of the
individual.

Individualism Approach- what Ms

Sandeep Riat (mini) told?.

Acts are moral when they promote the individual's

best long-term interests.
Individualism is believed to lead to honesty &
integrity since that works best in the long run
How ethical was Ms Riat in settling loans?
Problem- What if an executive accept bribe to help a
stakeholder?
?? The IAS officer of commissioner rank in Punjab took
arbitration fees to the tune of 1.5 crore officially

Moral-Rights Approach
Asserts human beings have fundamental
rights and liberties.
Moral decisions are those that best maintain
the rights of those people affected by them.
An ethical decision is one that avoids
interfering with the fundamental rights of
others.

Moral Rights Considerations

The
The right
right of
of free
free consent
consent
The
The right
right to
to privacy
privacy
The
The right
right of
of freedom
freedom of
of
conscience
conscience
The right of free speech
The
The right
right to
to due
due process
process
The
The right
right to
to life
life &
& safety
safety

Justice Approach
Moral Decisions must be based on
standards of equity, fairness, and
impartiality.
Treatment of individuals should not be
based on arbitrary characteristics.
Organizations and individuals could draft
code of conduct, make it known to all
and implement equally on all
Closest to the thinking of Domain of law.

????
Wal-Mart squeeze vendors and
supply cheap to customers?
To get cheap they buy from China
and wheresoever's they could get
from.
What is that- ethical, social or what?

????
IKEA- India want them to procure 30%
locally?
President Obama keep on threatening US
IT cos to stop outsourcing for jobs in US
Americans do not like Wal-mart procuring
from China and other developing nations
How socially concerned Americans could
be in procuring from countries having
exploited labor?

The Kolkata Distributor of Bombay

Dyeing had IT raid in 1981
Distributor had 25 years sound relationship. Good
personal relationships with company officers
Operations were closed since last 3 months- there
was no certainty as when they shall restart
customers were opting to other mills products
Company was loosing current sales
Company feared that its customers could
permanently switch to others
Many Kolkata firms were pressing hard company
for Distributorship

Three Pillars of an Ethical

Organization

SOURCE: Adapted from

Linda Klebe Trevino, Laura
Pincus Hartman, and
Michael Brown, Moral
Person and Moral
Manager, California
Management Review 42,
No. 4 (Summer 2000), 128142.

Enlightened Companies
Realize the importance
of:
integrity
trust

By PTI | 17 Jul, 2013,

03.03PM IST
StanChart puts 2.46 lakh sq feet, a six-storeyed
building in sub-urban Goregaon on the block as
part of its move to consolidate operations.
http://economictimes.indiatimes.com/news/news-by
-industry/services/property-/-cstruction/stancha
rt-puts-2-46-lakh-sq-feet-goregaon-property-on-b
lock/articleshow/21119964.cms
Its is built on a plot of around 7,086.5 sq meters,
was bought in 2007 for Rs 325 crore and currently
it houses 1,500-1,700 employees, who will be
relocated to its two offices in south Mumbai's Fort
area and one more in the Bandra Kurla Complex
business district