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Lecture plan
The significance of ethics for organisations Some examples Where do our ideas about ethics originate? Cross cultural comparisons The Harvard MBA Oath Some useful questions
Tata Steel
Mission statement: Our heritage of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. This heritage will be continuously enriched by formalising the high standards of ethical behaviour expected from employees and companies. (Maheshwari and Ganesh 2004:
10)
Some results:
Employees felt an increased sense of pride in the company Decreased amount of bribes to officials Enhanced reputation (Maheshwari and Ganesh
2004)
Particularists (value relationships, subjectivity and ambiguity) Universalists (value norms, objectivity and predictability)
Ethnocentrism and Parochialism Tendency to see ones own culture as morally superior But - people within the same society do not always share the same values and moral beliefs
As a business leader I recognize my role in society. My purpose is to lead people and manage resources to create value that no single individual can create alone. My decisions affect the well-being of individuals inside and outside my enterprise, today and tomorrow. Therefore, I promise that: I will manage my enterprise with loyalty and care, and will not advance my personal interests at the expense of my enterprise or society. I will understand and uphold, in letter and spirit, the laws and contracts governing my conduct and that of my enterprise. I will refrain from corruption, unfair competition, or business practices harmful to society.
I will protect the human rights and dignity of all people affected by my enterprise, and I will oppose discrimination and exploitation. I will protect the right of future generations to advance their standard of living and enjoy a healthy planet. I will report the performance and risks of my enterprise accurately and honestly. I will invest in developing myself and others, helping the management profession continue to advance and create sustainable and inclusive prosperity. In exercising my professional duties according to these principles, I recognize that my behavior must set an example of integrity, eliciting trust and esteem from those I serve. I will remain accountable to my peers and to society for my actions and for upholding these standards. This oath I make freely, and upon my honor. (www.mbaoath.org)
Useful questions
When faced with conflicting demands what values underpin your priorities? Do you do what you promise? Do you consider whether the way your production or goods contributes to a sustainable environment? Do you consider whether your staffing policies are humane and equitable? Where do you think your own ethical values come from? How willing are you to accommodate others ethical values when they are in conflict with your own?
References
Chakraborty, S.K. (1998) Values and Ethics for Organizations: Theory and Practice OUP Lucas, R., Lupton, B. and Mathieson, H. (2006) Human Resource Management in an International Context CIPD Maheshwari, S.K. and Ganesh, M.P. (2004) Ethics in Organizations: The Case of Tata Steele Working Paper: IIM Ahemdabad