Values and Ethics in Business:

Values:

Basic beliefs of a specific mode of conduct or converse mode of conduct or end state of existence
which is preferred.
Principles or standards of behavior; ones judgement of what is important in life

Concept of Values:

Values represent the standard or ideals about what a person, object, event or activity, ought to be.
Values are the means of perfection.
Values are concerned with internal development of the person , purifying mind & heart.

Features of Values:

Values are at the core of personality and are a powerful force affecting behaviour.
Values are stable and enduring. This is because of the way in which they are originally learned.
Values contain a judgemental element in which they carry an individuals ideas as to what is right or
desirable.
Values are not fixed, but they change over time.
Hierarchy of values which is within, forms our value system

Attitude: way of thinking or feeling about something. Eg: compassion,accepting something etc.

Belief:

Opinions/interpretations/conclusions that people accept as true.

Based more on faith than fact and may not be true.
Eg: God,Religion etc.

Values and Behaviour interrelated:

Behaviour is a result of a persons values.

Values are beliefs which are preferred an d people behave in situations according to what they
believe in.
Values affect individuals and how they behave towards others.
Eg: A person may have honesty value and his/her behaviour towards others is to speak truth in all
situations and not lie and vice versa in case with other person who may not have honesty value.

Types/Classification of Values:

1. Milton Rokeach classification:

i. Terminal Values:

Desirable end state of existence.

Goals that a person would like to achieve in his/her life.
 Eg: happiness, wealth, peace etc.

ii. Instrumental Values:

Preferable modes of behaviour or means for achieving ones end goals/Terminal values.
Eg: honesty, obedience, hardwork etc.

2. Gerard and Jones classification:

i. Positive Values:

Anything for which the individual strives, or approaches, embraces, voluntarily consumes, and incurs
expense to acquire.
Eg: honesty, trust, peace

ii. Negative Values:

Anything that the individual avoids, escapes from, deplores, rejects or attacks.
Eg: Lying, dishonesty, corruption, demeaning others.

3. Alport classification:

i. Economic values:

A person having interest in usefulness and practicality.

Eg: Can work be done in less cost or real world applications.

ii. Theoretic values:

A person having interest in discovering the truth through reasoning.

Eg: Applying theory in real world to solve management problems in any business.

iii. Political values:

A person having interest in gaining power and influence over other people.
Eg: Politics like maintaining good public image and having all benefits from other people.

iv. Social values:

A person having interest in people and human relationship.

Eg: A person talking to strangers or other people also who are not known.

v. Aesthetic values:

A person having interest in beauty, form and artistic harmony.

Eg: artists,musicians,writers etc.

vi. Religious values:

A person having interest in unity and understanding the cosmos as a whole.

 Eg: Hinduism, Christianity etc. and following and implementing their teachings

4. Grave value classifications:

i. Existentialism values:

A person having high tolerance for ambiguity(the quality of being open to more than one
interpretation; inexactness) and for people with divergent/different values, outspoken and inflexible
system, restrictive policies and status symbols and unnecessary use of authority.

ii. Conformistic values:

A person who wants others to accept his/her values.

A person who wants others to conform to his/her values.
A person who conforms to accepted behaviour or established practices.

iii. Sociocentric values:

A person who desired to be liked.

Concerned with or centered on one's own social group.

iv. Tribalistic values:

Person having high degree of dependence.

v. Egocentric values:

Thinking only of oneself, without regard for the feelings or desires of others; self-centred. / centred in
or arising from a person's own individual existence or perspective.
Selfish response may primarily be due to power.
This person wants to work alone in an entrepreneurial style.

Formation of Values and Value System:

Value forming Institution

Organisational Values
Peers & Colleagues
Work &Career
Professional codes
Situational Factors

Values of Indian Managers:

Indian business and business styles are blessed with some positive inbuilt values which act as its
strength. On the other hand there are few negative values also as far as Indian business scenario is
concerned.
In general, most of the Indian managers exhibit a value system having the following values:

Hardworking
 Work is worship (emotional attachment with work)
Desire to gain power
Emotional
Less pragmatic (practical)
Reactive rather than proactive
Laid back and lazy
Give importance to social relations at work
Reluctant to change
Less innovative

Significance of values for Indian Managers:

Values are significant because they have an impact on the following:

Values have direct impact on:

Decision making
Making rules and regulations
Behavior with seniors, subordinates and peers.
Leadership
Planning, organizing, staffing, directing and controlling
Dealing with customers

More significance:

Values make business conform to social interests along with economic interests.
They make business a viable institution which has social acceptance & recognition
They help in creating a corporate culture that is conducive to business growth in the long run
They provide norms & standards for measuring business efficiency. They provide scope for
improvement in bus. Performance
Direct bus. Activities in the right direction by clearly differentiating between what is right and wrong
Release and direct energy, motivate people, generate profits, & promote expansion.
Values are the key to energizing five growth engines of a company; market, product & services,
organization, people, & finance.
Values raise the quality of corporate energies & elevate work to a higher level
Values are like never-ending goals. The higher the values the more the energy & effort required to
achieve & sustain them. The more you pursue them, the greater the energy they release & put into
action.
Companies which rate their key corporate values the highest also report the highest levels of revenue,
growth & profitability in their respective industries.
Values are the most powerful way to release & harness the companys talent, unutilised energies for
growth.

Ideal set of values for Indian Managers:

Optimum utilization of resources

Develop right attitude towards work
Work commitment
 Pursue ethics-moral righteousness at work
Develop long term vision which is practical and dynamic

Apart from these points, the management GURUS like Lord Krishna, Swami Vivekananda & Peter F.
Drucker assert that Indian managers should develop the following values:

Move from the state of inertia to the state of righteous action.

Move from the state of faithlessness to the state of faith and self confidence
Move from unethical actions to ethical actions.
Their actions should benefit not only them but the society at large.
Move from untruth to truth.
No doer of good ever ends in misery. Good actions always produce good results and vice versa.
Take the best from the western modes of efficiency, dynamism & excellence and tune them to Indian
conditions.

According to S.K Chakraborty, the following values are more significant to the Indian Socio-cultural
ethos:

Respect for individuals

Cooperation and trust
Purification of mind
Work as worship
Ethical moral boundaries
Self-discipline

Ethics:

Moral principles that govern a person's behaviour or the conducting of an activity.

The moral correctness of specified conduct.
The branch of knowledge that deals with moral principles.
A set of moral principles, especially ones relating to or affirming a specified group, field, or form of
conduct.
Ethics is a mass of moral principles or set of values about what conduct ought to be.
They give an idea what is right or wrong, true or false, fair or unfair, just or unjust, proper or
improper, e.g., honesty, obedience, equality, fairness etc.

Values and Ethics:

Values & Ethics are not interchangeable

Ethics is concerned with how a moral person should behave, whereas values simply concern the
various beliefs & attitudes that determine how a person actually behaves.
Business Ethics: Application of ethics in business.
Conduct: Conduct is a collective name for voluntary action or actions that a man could have done
differently if he had so chosen.

Ethos:

Ethos are the moral ideas or attitude that belong to a particular group or society.
It is a discipline that examines ones morality or the moral standard of the society whereas ethics
means expected standards in terms of your personal and social welfare.It improves honesty, morality,
responsibility etc.

Ethos of Vedanta in Management:

Study of the Vedas is called Vedanta.

Vedanta is the systematic presentation of teaching of the Upanishads.
All cultures in India have roots in Vedanta.
Vedanta is a living philosophy of life in India which is a part of the mental structureof our people.
Simplicity is the key note of Vedantic ethics.
Vedantic gurus grasped the truth that problems of secular pursuits cannot be resolved by secular
route.

Vedantic Thoughts:

Human Existence is to aim at and strive for a pure mind. Intellect does not decide or choose. Emotions
are the first to make the secret choice.
Subject is the cause, the object is the effect.
Work must be done without personnel claims to egocentric results as driving force.
Like Cause Like effect(Karma Theory)
Self-Management Individuals personality comprises of i) an outer active ii) an inner silent. This
awareness will lead to self-management.
Teamwork and Leadership.

Principles of indian ethos of management:

Divinity: state of discover (something) by guesswork or intuition./ have supernatural or magical

insight into (future events).
Aham Brahmasi: I am the Infinite Reality/ I am ever full or whole or I am complete in myself/Man
(who is a conscious entity) alone has the capacity to improve his present state, to guide his future, to
enquire and know the truth, and to free himself from the cycle of birth and death (vidy adhikra)
through thoughtful actions
Seva Tyag: Sewa Or Service Attitude is person should have altitude of service providing & at the same
time have happy facei.e. smile on face.eg: organization should be service oriented & not profit
oriented, provide best possible service to your entire customer.
Sooksham subtle or intangible factors. People should not focus on subtle factors that are
unnecessary.
 Individual is the focal point in Indian Ethos: Individual should improve and continue to improve
his/her ownself.
Emphasize on duties and responsibilities rather than on rights and privileges
Balance
Make emphasis on wisdom
Materialism without spiritualism is not acceptable
Dharma should be upheld at all times

Other Principles:
Know Yourself:
Who are you? All of us are part of supreme power (GOD) & hence all of us have all the divine qualities
like integrity, patience, courage, loyalty, forgiveness, service attitude i.e. Mind so if you try to develop
our self by improving our qualities we will not only make ourself happy but also the society be live in.
Team Spirit:
Efficiency &effectiveness in an organization will increase only when there is co-operation team spirit
& positive energy in employees. Treat work as YAJNA together i.e. T- Together E- Everyone, A-
Achieves, M- More
Holistic Approach To Life: We should behave in same way of manner which we expect from others.
Efficiency &effectiveness in an organization will increase only when there is co-operation team spirit
& positive energy in employees.
Sewa Or Service Attitude: The person should have altitude of service providing & at the same time
have happy facei.e. smile on face.eg: organization should be service oriented & not profit oriented,
provide best possible service to your entire customer.
Self-Sacrifice: Self-sacrifice refers to sacrifice of self-ego. We should be ready to sacrifice for others.
Present Moment: Think only about a) what is there in front of you at present? b) We cannot change
the past or predict future. c) So have total focus & dedication present in situation. d) Do not take
unnecessary stress of work, take it as a play.
Perfection In Work: Bhagwad Gita emphasizes on while doing your present duty we should use our
judgment &perform with utmost concentration

Knowledge and Wisdom:

Wisdom : Ability to re-apply knowledge from one context to different contexts

Knowledge : Individual patterns of Information combined into a whole
Information : Analyzed sets of data
Data : Footprints of an action

Knowledge:

It is expertise or skill acquired by a person through experience or education.

It is product of learning which is gained by doing human action.
It is theoretical or practical understanding of a subject.
We seek knowledge to awaken wisdom.
facts, information, and skills acquired through experience or education; the theoretical or practical
understanding of a subject.
 awareness or familiarity gained by experience of a fact or situation.

Wisdom:

the quality of being aware of, especially so as to know how to act./ become aware of or informed
about something.
Wisdom cannot be taught or acquired.
It has to be earned & learned.
It is that state that enables us to look at decision ,a thought ,or an act ,in the same way across time
,moods and other factors.
It is the ability to make correct judgements and decisions.
Its a quality that can be possessed by even a child or an immature person independent of experience
or complete knowledge.

Short answer questions: 3 out of 5 questions to be done. 2 marks for each question
Long answer questions: 2 out of 3 questions to be done. 4.5 marks for each question
Knowledge vs Wisdom:
Ethical issues are also at bbamantra website

Forms of Knowledge:

i. Explicit Knowledge:

It is formal knowledge that is acquired in documents of the organization like reports, articles,
manuals, pictures, video, sound, software.
It defines the identity and competencies of the organizations. It is articulated knowledge-the words
we speak, the books we read, the reports we write or the data we compile.
It is the external knowledge that is gained by a person through means other than his/her own person
means and experience.

ii. Tacit Knowledge:

It is personal knowledge that an individual gains through his experience.

 It is shared and exchanged through direct ,face to face contact.
It is practical knowledge that is key to getting things done.
It includes intuition, perspectives, beliefs and values that people develop and form as a result of their
experiences

Sources of stress:
i. Individual or Personal Factors:

Type of Personality
Injury & ill health
Family problems
Financial difficulties
Conflict between personal & companys beliefs

ii. Organisational Factors:

Organisational Structure that deprives one of identity and autonomy.

Job related factors too much or too little work, deadlines, excessive travel, long working hours.
Role related factors role ambiguity, role conflict, high expectations of colleagues, lack of support,
lack of involvement in decision-making.
Interpersonal demands- low trust & cooperation, discrimination & harassment at the workplace at
the work place.
Career related factors- lack of job security, incongruity of status, lack of recognition for good
performance.

iii. Environment Factors:

Law & order

Threat of terrorism
Conflict between religions, castes, communities etc.
Political instability
Fast rate of technological change
Shortage of essential public services
Natural calamities
High rate of Inflation

Consequences of stress:
i. Physiological Symptoms

Frequent headaches
Faster heartbeats, high blood pressure
Increased sweating
Cold hands & feet
Dry mouth & tense muscles
Back Pain
 Asthma
Sleeplessness
Depression
Restlessness
Ulcers

ii. Psychological symptoms:

Tension & Anxiety

Boredom
Procrastination
Irritability
Depression, frustration, helplessness & hostility

iii. Behavioral Symptoms:

Drinking & Smoking

Drug Abuse
Rapid Speech
Change in eating habits
Sleep Disorders
Forgetfulness
Increased absenteeism from work
Decline in job Performance

Nature of Stress:

The term stress is derived from Latin word stringere, which means to clutch, compress or bind.
The reaction of ones body to a situation leads to stress.
Stress means a feeling which arises when an individual is unable to meet the perceived demand of
the situation.
It also means any change in our physical, mental and emotional state due to an uncertain situation.
Physiologically, stress is the reaction of ones body to a perceived threat.
Stressors are events that threaten or challenge people

Types of Stress:

Most people consider stress as worry, anxiety or tension

Some types of stress are exciting and challenging.
Eustress : Positive Stress that accompanies achievement and success. It makes us feel happy &
excited.
Distress : This is negative stress that accompanies failure & loss. It makes us feel insecure, helpless,
sad, scared & tense.
The factors which cause stress are called stressors.

Stages of Stress:
 Alarm : In this the nervous system activates the secretion of hormones from the endocrine glands.
Anxiety is the first symptom when one is unable to cope with the situation. The person is unable to
think clearly or focus.
Resistance : The Individuals defense mechanisms are activated. The individual attempts to adapt &
restore the equilibrium. In case the perception of threat persists, there may be increase in heart beat,
and blood pressure.
Exhaustion : In case the stressor continues or defense mechanisms fails the individual feels
exhausted. The initial symptoms can turn into physical ailments such as headaches, upset stomach &
sleeplessness. Ultimately serious troubles like ulcers & heart failure etc.

Decision Making:

A process of selecting a course of action from among multiple alternatives.

Ethical Decision Making:

Define the problem PLUS

Identify alternative solutions to the problem
Evaluate the identified alternatives PLUS
Make the decision
Implement the decision
Evaluate the decision PLUS

PLUS:

P= policies:
Is it consistent with the organizations policies, procedures & guidelines?

L=Legal:
Is it acceptable under the applicable laws & guidelines?

U=Universal:
Does it conform to the universal principles/ values the organization has adopted?

S=Self:
Does it satisfy the managers personal definition of right, good & fair?

PLUS presumes(suppose that something is the case on the basis of probability./take for granted that
something exists or is the case.) effective communication:
The organizations policies & procedures as they apply to the situation
The applicable laws & regulations
The agreed set of universal values- in this case Empathy, Patience, Integrity, Courage
The individuals sense of right, fair and good arising from their personal values set

Ethical Decision Making:

 Step 1: Define the problem (PLUS surface the ethical issues):
Does the existing situation violate any of the PLUS considerations?

Step 2: Identify available alternative solutions to the problem

Step 3: Evaluate the identified alternatives (PLUS assess their ethical impact):
Will the alternative I am considering resolve the PLUS violations?
Will the alternative being considered create any new PLUS considerations?
Are the ethical trade-offs acceptable?

Step 4: Make the decision

Step 5: Implement the decision

Step 6: Evaluate the decision (PLUS sorts out new ethical issues):
Does the resultant situation resolve the earlier PLUS considerations?
Are there any new PLUS considerations to be addressed?

Detached Involvement:

Detached Involvement requires a person to be aware of his/her own emotions at all times and how
they are changing.
Detached Involvement- The zen way : You can't lead something you yourself identify with.
The paradox is that detachment
(not withdrawal, escape, or indifference) coupled with involvement (not addiction)
in other words, detached involvement enables mastery.
The Zen of Management Maintenance: Leadership Starts with Self-Discovery,

He has realized that he essentially is not his thoughts, feelings or emotions.

His thoughts, feelings, and emotions are metaphorically just background noise in his field of
experience.
Besides his thoughts, feelings and emotions, but also people, places, things and events are also just
his own creation. As Gertrude Stein once echoed: there is no there there (although she was probably
referring to her house in Oakland).
The leader maintains an attitudinal stance that tends to be neither flexible nor inflexible, neither soft
nor hard.
Leader may be described as fluid, takes the shape of any container, yet retaining his integrity. Leader
is much like water, in this regard.
Non Attachment to results is the secret of how to work
It helps acquiring enriched mind & heart.

Following ancient Indian wisdom & insight helps in quality of work life :
 Karma Yoga (Selfless work): Nishkam Karma karma yoga is the best route for self-development for
managers and workers.
Yoga Karmasu Kaushalam : Yoga means excellence at work. Kaushalam means doing work with
devotion & without attachment when one performs work without any attachment. It enhances ones
values & improves cocentration.
Self Actualisation : Drive to become what one is capable of becoming, achieving ones potential &
self-fulfillment.
Sakam Karma : Sakam Karma is motivation.It is selfish, greed-driven, attached involvment. It is
opposite to Nishkam-Karma.

Stress Management and Detached Involvement:

Tagore has given very important vedantic guideline for work :

Yad yad karma prakurvit
Tad brahmani samarpayet
Which means, every bit of work that you do,offer & consecrate it all to the feet of your lord.
Gita advises non-attachment to the fruits or results of actions performed in the courses of ones duty.
Dedicated work has to mean Work for the sake of work