PGDM 2013-15

ETHICS AND VALUES IN

MANAGEMENT
Class Transcripts


SUBMITTED BY:-

SECTION -A
MAYANK VYAS (13033)
SURBHI RATHI (13055)



Page 1 of 36


SESSION -1
INTRODUCTION TO ETHICS
DATE-07/January /2014 TIME: 14:30 to 16:00

Class started with a New Year wish by Sir with a saying be optimistic, every day is new chance to change
your life.
Sir asked name the virus that troubles us all. Inputs from the class were bacteria in curd, HIV and fever. In
response to it sir replied, fever is not the cause but the effect of virus. As an answer to the question he said
biggest virus in the whole world is Corruption.
Students shared their recent experience of being caught by government officials for corruption, mainly
traffic police.


Sense of disgust spread in the class after listening all this happening in our country. Sir said policeman is
supposed to be behind you.
Corruption is more of a perception. After this sir showed corruption perception index.
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Then discussion headed towards Lokpal bill. Sir said Arvind Kejriwal in Anna Hazare movement and Dr.
R. Balasubramaniyam are the persons who recognize, India needs an ideal to lead .they believe change is
achievable if you are committed to it.


After disscussing about corruption,next topic discussed was Intellegent people tend to be less ethical.this
sentence was debatable.
Students answered in this way :-
Roshin (13045) answered: not necessary
Surya (13056) answered: power drunk people tend to be less ethical
Tariq (13057) answered: there is no relation between intelligence and ethics. Its a perception.
Archana (13011) talked about Narayana Murthy
Addition to it, sir said example from contemporary society confuse our learning. He connected the subject
to statistics. He gave example of normal curve.as in the normal curve, extreme points are there similarly
more intelligent people are tend to be more ethical. This is an extreme case.
After this sir recited a verse from Bhagvad Gita
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Yada yada he dharmasya, glanir bhavati bharata
Abhutthanam adharmasya, tadatmanam srjamy aham

Sir, explained the meaning as, whenever there will be loss of "Dharma"
lord Krishna says I will get birthbe born to finish the crime from WorldIndia.
Aditya VNV (13004) raised a question that what is the impact of ethics in success and failure
Answering to the question, sir said, there are two things to measure success, namely immediate success and
long term success.
Discussion again revolve around Arvind Kejriwal. Sir said, kejriwal won basically because of
Networking. His Unique Selling Proposition was his network.
After all this sir asked us the reason for discussing AAP story and answer to it was Learned Helplessness
He gave the name of few companies which were started by highly intelligent people who lost their path due
to greed and suffered because they were doing their business in an unethical manner. Example: Enron,
Satyam
He wrap up his lecture by saying none of us are black or white. We are actually shades of grey.



















Comment [NRGS1]: Why is Krishna limited to
India? Havent you heard of ISCON?!
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SUBMITTED BY :-
Section A
MAYANK VYAS (13033)
SURBHI RATHI (13055)
PGDM 2013-15ETHICS AND
VALUES IN
MANAGEMENTCLASS
TRANSCRIPTS


SECTION A

Page 5 of 36

Session 2
Date: 10
th
January,2014
After the recap of previous session, class started with a verse of chapter 3 of Bhagvad Gita in which, Arjuna
said:-
Jayasi cet karmanyas te mata buddhir janardana ,
tat kim karmani ghore mam niyujayasi kaesava
Meaning:- O Krishna, if spiritual intelligence is considered better by you than furtive activities; then why O
Krishna are you engaging me in such horrendous activities?
Sir said, Perception is individuals interpretation of reality.
Sir said, the purpose of the course is to know the pros and cons of any decision. Then he asked difference
between accountancy and ethics. As an answer to it,
Tariqh (13057) said : Ethics is subjective as people have different opinions on it.
Sir added to it saying Can meditation be taught? and himself gave the answer as, yes, meditation
techniques can be taught.
Ashish (13013) said : ethics can be taught , like children learn in their early stage of childhood by parents,
sirs and society various lessons of life.
Sir said, Ethical learning is a continuous process. He again connected the subject to learned helplessness. He
said, learning is a continuous process and helplessness is negativity.
P&G succeeded because of being ethical. Enron and Satyam failed because of being Unethical.
But if we take example of Minister Lalu Prasad Yadav, although being unethical, he succeeded. This is an
exceptional case.
Eternal reasons arevigilance is the price of freedom.
Another Verse stated by sir from Bhagvad gita was,s
Prakrteh kriyamanani,gunaih karmani sarvasah,
Ahankara-vimudhatma,kartaham iti manyate
Meaning: All work is done by the energy and power of nature, but due to delusion of ignorance, people
assume themselves to be the doer.
Surya (13056) asked: If we go to boss and say that, we are not going to be unethical, then probably, boss
will kick you out. Then we cannot be ethical all the time.
Comment [NRGS2]: What was the context? The
transcript is meaningful only if context is known.
Otherwise, it could be mistaken for classes in
Bhagavad-Gita, which it is not!
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Sir added to it as Gandhiji also said: Ahinsa is not for coward.
Aditya (13004) asked: Is ethics is moral?
Sir answered: ethics is questioning moral.
There is nothing like Should in ethics, everything is ought to beshould not.
Then sir talked about Ethical compass. Sir said, ethical compass show you true norm.


After stating the example of Rajat Kumar Gupta who is sentenced to jail for two years convicted on charges
of inside training, Sir said people are sent to jail to allow them to contemplate and once they are released,
they are being supervised for a while.
Although he was billionaire, he was inherently good and had a happy family; he went the unethical way just
to be happy. They believed that they wont be caught.


Sir asked: What is insider trading?
Tariq (13057) answered: insider trading is rigging the stock
Sir corrected him by saying insider trading is, making available confidential important information.
Session ended with presentation by Aditya (13004) and Ashwin (13058) on Ethical Dilemma.

Comment [NRGS3]: No, No! Ethics is about
What ought to be
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Page 8 of 36


SESSION: 3
Date: 22/01/2014
Session started with a recap about previous session and revolves around Mr. Rajat Gupta.
Sir started by saying, The whole concept of justice revolves around the concept of fairness.
CONSPIRATOR, Rajat Gupta, being on the board of Goldman Sachs, was found to be providing
confidential information about Goldman Sachs to Mr. Raj Rajratnam, who was leading a hedge company
named as Galleon Group.
Then meaning of hedge was discussed as a way of protecting oneself against financial loss or other
adverse circumstances. Sir also said hedge means reducing risk. A hedge fund manager is expected to reduce
risk without cutting into investment income.

In the anxiety to maximize the returns, Mr. Raj Rajratnam resorted to insider trading with the help of
conspirators like Mr. Rajat Gupta. Sir gave example of a cat, he said, when cat drinks milk, she closes her
eyes, assuming no one is watching at her
Next topic discussed was why did they do what they did?
Response by students:-
Aby (13003): - To make gain in a short period of time.
Vikas (13059): - Make money but dont get taught.
Arnab (13012):- Dont go for short term profit but think for long term loss.
Abhijith (13002):- Dont be greedy for more money.
Ahmed (13032):- Dont trust people in the matter of money.
Subin (13053):- That illegal money is not going to stay with you.
Tariq (13057):- if everyone is doing the same, you cannot say this as unethical.
Ahmed (13032):- if everyone is smoking that doesnt mean I should also smoke.
Hamza (13023):- Greed may increase
Vivek (13061):- if as long as something is legal, is it ethical?

Comment [NRGS4]: !
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Sir replied to it by saying, society forms the law, but law can be amended.
One small step of an individual is enough to make changes. Revolution is something which starts within an
individual. Not even a single system is perfect. Perfection is only an attribute of god. On the contrary, no
one can stop us of being perfect.
Rajat Gupta was an MBA from Harvard Business School (1973)
Sir also said, Unless people are mentally drained, 99.99% recurring persons are inherently good.
Harshith (13023) said everyone has some bad/poor qualities. There is nothing like absolutely good or bad.
we are all shades of grey.
Sir said, In pursuit of pleasure we seek material wealth (money) hiranakshypa (person with his eye on
material wealth)
Sir recited a verse,
Satyam vada, dharma chara
Meaning: - speak truth and follow your duties.
Sir also explained meaning of Dharma as justice, the right way of living.
Yatha Dharathe, Tatha Dharmah: That which sustains order is Dharma




















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SESSION 4
Date: 24/01/2014
Session starts with framework of dharma as artha, karma and moksha.
Sir said, no one wants to be absolutely bad.in the pursuit of happiness they do wrong.
Mayank (13033) talked about Dharma as Dharma is essentially doing what you are asked to do.
Sir added, any action that you do in a sense for service to other is Dharma.
Yad dharate, tad dharmahe
Meaning: - what sustains is dharma
Whenever there is choice between money and ethics, generally ethics money wins. These days, sense of
sharing is gone. Joint families are broken down into nuclear family.
Krishna (13028) asked:- if what sustains is dharma, then, why some advertisements are banned?
Sir answered as, society by definition are is not homogeneous. People used to enjoy these kind of
advertisements.
If u take case of electricity and cigarettes, even if we know electricity is dangerous to health, still we use
switches to turn on light. Similarly, smoking is also not a big deal.
One may not be changed but may be sensitized through a study of ethics, which is taught in western school
of thoughts.
When it is asked to everyone that, what is ethics for you?
Answers were:-
Mayank: - your values and duties
Vivek: - If you do which is acceptable to the society is ethical
Ayanava: - there is not a framework but it depends on how you take it.
Vamsee: - ethics is what is good for society
Archana: - ethics is something which has been taught but hardly practiced.
Ahmed, Surbhi and Bharat: - until and unless you are not doing injustice to others you are ethical.
Sir said: - Epicurus gives definition of ethics as, ethics deals with things to be sought, things to be
avoided and with ways of life with telos.
Formatted: Highlight
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The study and philosophy of human conduct, with an emphasis on determination of right and wrong.
Who determines what is right or wrong?
It is not who but principles (dharma)
Utilitarian-Bahujana hitaya,bahujana sukhaya (An act is an ethical act if it serves a large
number of people)
Next topic discussed was how ethics are different from morals?
Sir explained it as:-
Dos and donts are absorbed from family, school, religion, are the morals.
Examining ones moral standards of a society is ethics.
Satyam vada, dharma chara is ethicsmoral, examining this as either applicable or otherwise in a
situation is ethics..
Meaning: - speak truth and follow principles.

Sir finally concluded ethics in a nutshell as:-
Your right to swing arm ends where other persons nose beginssaid by Voltaire

You can have any rights as long as you dont harm people.


Voltaire
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Session: 5
Date: 28/01/2014
Session starts with definition of ethics
Ethics is the discipline that examines ones moral standards or the moral standards of a society to evaluate
their reasonableness and their implications for ones life.
Sir also talks about normative and descriptive study.
Normative study: An investigation that attempts to reach conclusions about what things are good or bad or
about what actions are right or wrong. Also called Prescriptive Ethics, it prescribes what ought to be rather
than just describe what is.
Descriptive study: An investigation that attempts to describe or explain the world without reaching any
conclusions about whether the world is as it should be.
Sir said, What is karma and what is akarma is very difficult to choose even foe for wise people.
If finding and following ethics is not easy in life, it is even more difficult in business.
Sir asked a question to Vivek (13061) that:
Why attempting suicide is a crime?
Vivek (13061) answered: committing suicide is affecting others life too. When you die, your wife becomes
widow, children become orphans and society have to take their responsibility. Therefore, attempting suicide
is a crime.
Sir connected the subject Ethics to economics. He said as in economics, study of how assignment of scarce
resources and fruits of labourlabor are is done, similarly ethical choices are even more difficult for
businessman because:-
Bottom line is unforgiving
Pressure for results is higher.
Sir suggested the book named as Infinite vision by Pavitra Mehta and Suchitra Shenoy, story of
Aravind eye care and its founder Dr. Govindappa Venkatawamy ttoo read in this context.
After this, Sir discussed about, Business ethics.
Business ethics: A specialized study of moral right and wrong that concentrates on moral standards as
they apply to business institutions, organizations, and behavior.
Sir said, Business ethics is an application of ethics to the special case of business.
Here, special case meaning is make profit but without harming individuals or the society as a whole.
While profit is legitimate, profiteering is not.
Then discussion revolves around profit and profiteering.
Profit: Profit is the risk incentive allowed by the society.amount of extra money society allows you to
take for the risk you have taken.
Profiteering: making money out of somebodys misery.
After profit and profiteering, next topic discussed was value judgment.
History talks about what was.
Journalism talks about what is.
Comment [NRGS5]: Good rendering
Comment [NRGS6]: See Sloka 16 of Chapter 4
of Bhagavad-Gita Kim karma kimakarmeti
kavoyopyatra mohittah..
Comment [NRGS7]: The context being, can
compassion be a case for Business? Can a business
founded on compassion be profitable?
This book, Infinite Vision, by Pavitra Mehta and
Suchitra Shenoy is the story of Aravind Eye Care and
its founder Dr Govindappa Venkataswamy. A great
book.
Comment [NRGS8]: Profit is the risk incentive
allowed by society.
Page 13 of 36

Futurism talks about what will be,
Ethics talks about what ought to be.
Business ethics is normative ( in perspective)- value judgmental, rather than a mere description of what
is.(descriptive or positive).
Whereas, descriptive here means, description of what condition is.no conclusion is made.
After all this, Case was discussed, namely Malden Mills.
Bindu(13016) opened case by saying, Here in the given case CEO is too ethical ,which is causing harm
to him
Then chain of thoughts were built by the following students:-
Shreyanka (13049): Pass
Vivek (13061): He didnt want to shift his factory and make trouble for society.
Vamsee (13006): He was still in lime light.
Hamza Munir (13023): That was a profit making company, they already made $100 million a year to
local economy.
At the end Sir, Wrap up the session by saying, From a business point of view, it is very good decision
that not to relocate.



















Comment [NRGS9]: She did not answer and let
the opportunity pass
Comment [NRGS10]: Sure, we continued the
case discussion in session 6, didnt we?
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Session :6

This time session started with Vinays speech (13060) on descriptive and prescriptive ethics. He tried to
connect AAP with descriptive ethics. After Vinays speech ,Aakash (13001) raised question on Malden
Mills.he said he is still not convinced with Sirs conclusion that it was a good decision that not to
relocate.
Sir explained him by saying,AK47 will not help you to win a war.if it is given to a coward , he may
shoot his own. Therefore, be ethical but not too ethical.
Some of the students added, he was victim of his own perception.
Sir said, he is so because of Ethic of care.
Ethic of care: The ethics of care is a normative ethical theory; that is, a theory about what makes
actions right or wrongA good rendering! Keep it up.

Next topic discussed was is ethics good for business?
Sir showed a mixed record of companies like Enron, Satyam, Philips Morris and ITC.

Sir recited a verse from chapter 18 of bhagvad gita:
iti te jnanam akhyatam
guhyad guhyataram maya
vimrsyaitad asesena
yathecchasi tatha kuru
Meaning: - Thus I have explained to you the most confidential of all knowledge. Deliberate on this fully,
and then do what you wish to do.


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Sir showed some arguments for and against business ethics:-
Against:-
Managers should stick to maximizing profit by efficient production and distribution and not impose
their personal values on business.
A loyal agent of the employer or manager should do what will advance employers interest.

In this context sir suggested to read Milton Friedmans article, the social responsibility of business
is to increase its profits.
For:-
Business is a voluntary activity and standards that apply to life should also apply to business.
Business ethics build trust which is foundation for exchanges.
History has shown that ethics does not distract companies from profit.

Sir took example of prisoners dilemma. He said, most business situations are not one time affairs but long
term, but repetitive relationship with customers, competitors, employees, suppliers, creditors etc. if one
chooses to take advantage, the victim can choose to retaliate next time.
Hence, it makes sense to co-operate.
It pays to be ethical:
Customers prefer an ethical company. (eg.: tata)
Employees prefer an ethical employer.
Employer prefer an ethical employees.
Government prefer law abiding companies.
Societies respect ethical company.
Next topic discussed was The golden middle path also known as Golden mean
In philosophy, especially that of Aristotle, the golden mean is the desirable middle between two extremes,
one of excess and the other of deficiency. For example, in the Aristotelian view, courage is a virtue, but if
taken to excess would manifest as recklessness, and if deficient as cowardice.
Sir then asked what are the expectations from managers are.
Classs combine answers was capacity and willingness to take decisions.
Sir gave a reference of an article Tata Bye Bye, India today Sept.15, 2008.
SUMMARY:
Ethics involves judgment as to :
Good and bad
Right and wrong
And what ought to be
Sir gave reference of Malden mills and said, as we have seen in the case, ethics alone will not ensure success
of a company.
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Session :7
Session started with module 2 named as moral development, moral reasoning and ethical dilemma.
Surya gave a presentation on philosophy.
Philosophy is not a religion.it must no
It must not be taught that wayas written in theguardian.com
According to it, you cannot restrict philosophy. Forcing someone to think in a particular way is wrong.
Marks should not be given on the basis of mugging up ideas rather bringing up ideas.
Later sir talked about Moral evolution
He asked, are moral standards acquired early in life cancan be changed?
Class gave a mixed review that it can or cannot be changed.
Harshith said it depends on the maturity level of the person.
Hamza,abhijit,surbhi and mayank said,it is vey difficult but exceptions are always there.
Surya said it is subject to ourselves.
Later sir discussed about kohlbergs model.
He explained this:
Kolberg's theory specifies six stages of moral development, arranged in three levels.
Level I: Preconventional/Premoral
Moral values reside in external, quasi-physical events, or in bad acts. The child is responsive to rules and
evaluative labels, but views them in terms of pleasant or unpleasant consequences of actions, or in terms of
the physical power of those who impose the rules.
Stage 1: Obedience and punishment orientation
Egocentric deference to superior power or prestige, or a trouble-avoiding set.
Objective responsibility.
Stage 2: Naively egoistic orientation
Right action is that which is instrumental in satisfying the self's needs and occasionally others'.
Relativism of values to each actor's needs and perspectives.
Naive egalitarianism,orientation to exchange and reciprocity.
Level II: Conventional/Role Conformity
Moral values reside in performing the right role, in maintaining the conventional order and expectancies of
others as a value in its own right.
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Stage 3: Good-boy/good-girl orientation
Orientation to approval, to pleasing and helping others.
Conformity to stereotypical images of majority or natural role behavior.
Action is evaluated in terms of intentions.
Stage 4: Authority and social-order-maintaining orientation
Orientation to "doing duty" and to showing respect for authority and maintaining the given social
order or its own sake.
Regard for earned expectations of others.
Differentiates actions out of a sense of obligation to rules from actions for generally "nice" or natural
motives.
Level III: Postconventional/Self-Accepted Moral Principles
Morality is defined in terms of conformity to shared standards,rights, or duties apart from supporting
authority. The standards conformed to are internal, and action-decisions are based on an inner process of
thought and judgement concerning right and wrong.
Stage 5: Contractual/legalistic orientation
Norms of right and wrong are defined in terms of laws or institutionalized rules which seem to have
a rational basis.
When conflict arises between individual needs and law or contract, though sympathetic to the
former, the individual believes the latter must prevail because of its greater functional rationality for
society, the majority will and welfare.
Stage 6: The morality of individual principles of conscience
Orientation not only toward existing social rules, but also toward the conscience as a directing agent,
mutual trust and respect, and principles of moral choice involving logical universalities and
consistency.
Action is controlled by internalized ideals that exert a pressure to act accordingly regardless of the
reactions of others in the immediate environment.
If one acts otherwise, self-condemnation and guilt result.
After explaining kohlbergs model,sir told that why kohlbergs theory is useful.he said, moral
advancement can happen at any stage.it is not static but keeps on growing.most of us thinks that
morals are developed in childhood but this model lets us know moral capacities that develop with
development of sophisticated and critical reasoning.it is possible that someone get stuck at any one
stage.
Persons at higher levels, say post conventional stage wioll be able to justify their actions based on
reasoning that can appeal any reasonable person.
Higher levels are better not because they come later in life but because they are based on reason
rather than just saying, mumma will punish me.
People at a later stage have the ability to see wider and fuller perspective then earlier stage.
Next topic discussed was moral reasoning
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Sir said, moral reasoning is the reasoning process by which human behavior, institutions or policies
are judged to be in accordance with or in violation of moral standards.example: transparency
international.
PROCESS OF MORAL REASONING:
To carry out moral reasoning, following things are needed.
1. An understanding of what reasonable moral standards are.
2. To decide whether it is required or should be prohibited.
3. Is it value or should condemn.
Last topic discussed in that session was moral standards.
Sir said, moral standards are understanding what reasonable moral standards require,prohibit,value or
condemn.

Sir said,moral reasoning reasons should be analysed and must be logical as one truth lead another.factual
evidence cited must be accurate,relevant and complete.
Lastly sir talked about, heuristic principles and gave example of this method as an educated guess, common
sense and stereotyping.
SESSION 8

Class started with a question that what is ethical dilemma?
Sir said, purpose of moral reasoning is to solve ethical dilemma. Ethical dilemma sets in when two or more
values are in conflict.
As an example of ethical dilemma, sir said, JUSTICE is delivering what one deserve or rendering what is
due or merited. On the other hand, MERCY is compassionate treatment of an offender. Therefore mercy
argues, Let him go.
MAYANK said, if both are right then dilemma is between right and right.
Ethics run by sense of duty,
As a closing note sir said, hold on to your own belief but allow intellect to grow.
SESSION 9
After review of answer scripts, difference between innovation and invention is discussed in class.
Conclusion of discussion was innovation comes from mind to market place where as invention is having an
idea.
Dilemma is always between two values. Sir gave example of whether to get patent of your product or to
wait.
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Next topic discussed was about MODULE 3 ethical theories as framework for resolving ethical
dilemma.
Sir talked about two different school of thoughts,
1. Consequential school of thought, and
2. Non consequential school of thought.

UTILITARIANISM: - it is also called as consequentialism .it weights social cost and social
benefits.
With reference to it, sir talked about bahujana hitay, bahujana sukhaya.
Ethical act is one that which is expected to result in greatest good (utility) for the greatest
numbers.
After this sir talked about, Gross national happiness.
It is determined in terms of consequences. Not only to ourselves but also for all the parties
affected by the actions. It is stakeholder approach.
Next topic discussed in the class was about RIGHTS.
Sir said, individual entitlement of freedom of choice and well-being are rights. Sir referred page
number 90-105 for basis of rights.
Basis for right in social stability and welfare are:-
1. Legal,
2. Moral, and
3. Principal of reversibility

In between these discussion surya raised few questions which were not taken in the class:-
1. If in different views of ethical theories, what might be ethical in one view might not be
ethical in another view. How are these ethical theories valid, if they are limited by time and
religion?
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2. Setting up a plant (Say cell phone) which will benefit society is ethical or using the same
money to save children in Africa is ethical?
Session :10
Theories and concepts continued in this sessions

UNIVERSALISM:-




Universalism suggest that in reaching to a decision, consider if the decision would be acceptable to
everyone, in every situation do we make the same decision.
German philosopher Immanuel kant (1724-1804) coined this term .
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As an example to universalism sir gave example of motherhood.

Justice:
Essentially, principle of ethics is the principle of justice.
Ethics & justice cannot be separated (pg. 36, being ethical, Manikutty).
(Pg. 105)
There is no relevant difference equal people must be treated equally.
Theory of justice depends on 2 principles.
1. Liberty.
2. Difference principle.
Difference principle: it is the difference that motives people to do. Difference is acceptable It work to
advantage of least disadvantage. There is a incentive thing to work.
Sir (suggested to read) paper : is CEO pay is justified?
Retributive justice: assignment of merited rewards & punishments.
Compensatory justice: making up for losses suffered.
ETHICS OF CARE

Ethics of care calls for a obligation to exercise special care towards those persons with whom we
have valuable close relationship, particularly relationship of dependency.
Virtue ethics: pg.126
Plato & Aristotle encourage character traits such as honesty, fairness & generosity.
Moral std. is one that is preferred over other interests including self-interest.
Integrating various theories: pg.124.
A simple strategy to various considerations are incorporated into moral reasoning.
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Summary of the module:
Consequentialist is concerned with outcomes & non- consequentialist are concerned with principles.
Utilitarianism is concerned with good of large number of people.
Universalism calls for duty for its sake, not outcome.





Session No: 11
CASE DISCUSSION
Date: 14
th
Feb 2014 Time: 2.30pm 4.00pm
Case: To Pay or Not to Pay; The case of a ship builder by Morgan Witzel.
Industry:
Nupoor (13039): Ship building.
Sir: How does this matter?? Why it is relevant?
How it is relevant to ethics?
Arnab (13012): small tankers war ships!
Vivek (13061): 1200 employees; if 12 employees case would have been different.
Vinay (13060): Yes, it is about ethics. It doesnt matter if its 1200 (consequentialist) or 12 (non-
consequentialist).
Tariqh(13057): we did not say on basis of non- consequentialist ,consequentialist. It would have long time if
there were 12 people.
Surya (13056): when world war was taken place lot of business took place. Case is post world war so its
great depression.
Sir: war is good?
Mayank Vyas(13033): depends on the context. Its not good. After effects will be bad. Cigar rate is personal
choice but not the war!
Sir: why this case is important for us?
Surya (13056): most important industry.
Tariqh (13057): taking this company alone & source of sustainable for town alone.
Vikas(13059): manufacturing industry they can use skills i.e; alternative & no alternatives.
Vivek (13061): they use huge machinery. Huge difference from labour.


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Industry suspect able to economical downtown.
Sir: man who is in distress has to learn ethics. Kind of industry you are into is spectrum to these things.
tariqh (13057): not imp to arrive at conclusion. Choosing any alternatives. Industry cant be flourishing all
time.
Surya (13056): higher the stress more the dilemma.
Hamza (13023): helps us judge the situation.
Divyanshu 13020): avoid the distress.
Archana (13011): we cant do that.
Vamsee(13006): company shouldnt take the bad situation & follow ethical.
Tariqh 13057): diversify the products.
Sir: as long as everything is 1 basket, everything seem to be unethical. May be you should have a portfolio.
Aditya(13004): how the situation came in first place? Not about portfolio & all?
Archana (13011): understanding evolves.
Surya (13056): central issue of the case because what alternative we have.
Mayank vyas(13033): it is not always finding solution.
Aditya (13004): helps us deal with ethical dilemma.
(Slide) what is the central issue in the case?
- To pay or not to pay?
- To save the company & the people & the town!
Surya(13056): bribe may be right for getting something done.
Rights: applying the principle of rights in the case of the ship builder.
Apporva(13010): speak to that person & negotiate is Marshall right.
Vinay(13060): right to take ministry officials.
Krishna (13028): freedom to do what he wants to do. But some control is there.
Kavitha 13027): has right to make choice.
- Buy paying or not paying the bribe check whether right of stakeholder is violated?
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Universalism:
If everybody is bribing is it okay for you?
- No , its not right.
But according to universalism, it satisfies universalism & therefore it is ethical.
Justice:
Krishna (13028): give someone what he deserves.
Sir: in this case?
Pooja (13040): people deserve job.
Ethics of care:
Krishna (13028): whether to pay bribe or not.

Small gifts & favours
Commercial bribe:
Page:406 in text.
Gift: page: 407.
Recommendation:
Why is corruption looked down?
It increases the cost of transaction
Foreign corruption practices act
Cool heads in the service of warm hearts
Portfolio management
The town had braced itself to closure
Imagine a tree meaning: roots much be strong so as the branches (competency).


Session No: 12
Ethics in Marketing
Date: 21
st
Feb 2014 Time: 2.30pm 4.00pm
The Class starts with the talk on Amway.
Sir: How many of you heard of Amway?
Many students said they know about Amway.
Sir: Why companies invest on advertising? If we are able to sell directly to the consumers then there will no
need of investing on advertisings. A company like Amway which never advertised earlier in any other parts
of the world have to advertise any India for selling their products.
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Sir: What are the differences between selling and marketing?
Kavitha (13101): Marketing is to create awareness of the product in the market for the greater sell of the
product among the consumers.
Kavitha (13073): Selling is a part of marketing.
Tariqh (13085): Selling is like push strategy, producing goods and try to sell goods to the customers but
marketing uses pull strategy, here producers anticipate the needs & wants of consumers, produces those
goods and then sale in the market by promoting through advertisements. Even after selling their work is not
over, they provide after sales service and they take feedback from their customers and try to make customer
relationship for future. In simple terms it is a holistic approach of selling.
Sir: Marketing is to anticipate the needs of the people.
Marketing is many times seen as selling.
.. But the aim of marketing is to make selling superfluous
Sir: What is superfluous?
Vivek(13075): Flowing like water.
Sir: To make redundant.
But with all the best intention marketing is perceived as advertising & selling.
See Advertising death on page 324 of Manuel Velasquez (7
th
edition)
Read tobacco under fire Admitting a harmful product
Induce customers to buy things they dont need
See page 323, Because advertising necessarily emphasizes the consumption of material goods,
people are led to forget the importance of their other, more basic needs and of other more realistic
ways of achieving self-fulfilment.
See page 326, The difficulty with this kind of criticism, however, is that it is uncertain whether
advertising actually has the large psychological effects the criticism attributes to it.
At prices that are too much, cost of advertising can be as high as 15% especially in consumer goods
(how much does it cost to produce a bottle of coke?)
Sir: Do you think advertising affects the selling? Why unethical advertising are not permissible by the law?
Sir: Advertises increases the cost of goods which has to be paid by consumers with the increased price. For
example Consider the ad. And promotion expenses of HUL.
HUL ad. And promotion expense in year ending 31 march 2011 = Rs. 276,423 lakhs.
Net sales Rs. 1,940,111 lakhs.
Ad. As a % of sales = 14.22%
Employee cost as a comparison Rs. 96,126 lakhs = 4.96% of sales.
Sir: To look at the standard of living GDP is not sufficient, we should look at the gap between the rich and
poor people of a country.
Sir: Liberty Principle Gundurra was selling tickets in buses but later has become the Chief Minister of the
state. This is the example of Liberty principle.
We can enjoy and also let others also enjoy their maximum liberty until and unless its not hurting anyone
else liberty.
Sir: Why the salary of salary of a CEO and a sweeper is not the same?
Sir: Because if salary will be same then why the CEO will take so much of burden of pressure and tension
for the growth of that company, he will also do the same and will take good salary. Therefore there is
Page 26 of 36

difference between the salaries of the two persons. And also to keep motivating for doing the better work
workers need to incentivise.
Post liberalisation salaries of CEOs are increasing but salaries of middle & lower level workers, the growth
of the company, returns etc. are not increasing in the same proportion. Therefore the gap between lower and
higher level is increasing and theory of justice fails here.
Sir: What will happen same salary will be given to everyone?
Kavitha (13062): Then there will low standard of living.
Mayank vyas (13075): No inspiration to work more than others.
Hamza (13073): If everybody will get that much of salary what they deserve then there will be justice with
everyone.
Sir: What is Veil of Ignorance?

Ethical response to marketing
Marketers respond
Ethics is not anti-business, our purpose of studying business ethics is not to make charity, we should
make profit its necessary to run the business but the profit should come only by the legal and ethical
way, not by the illegal way.
Ads can be informative too
ASBA
Application supported by blocked Amount
AMA code
Safety standards
Component substitution to be advised
Inform extra cost and added feature
Let us discuss the case of The case of planned obsolescence in Perspectives in business ethics
(Page 369 366)
Promotion
Fellow the well understood principle of rights and duties in the process of exchange.
Product should be safe
Adequate process for redresses of grievances


Ethical tradition

In the tradition of ethics, deception in adv. Is condemned on the grounds.
It also violates the consumer right to choose for themselves (A krutien argument)
It generates public distrust of adv. That diminishes the utility of commercialisation (The Utilitarian
government)




Page 27 of 36

Session No: 13
Advertising Standards Council of India (ASCI) Advertising Code
Date: 22nd Feb 2014 Time: 9.00am-10.45am
Class stats with the discussion on sales. In the absence of sales company will not survive. Sales is highly
spiritual work. Customers purchases products not because the salesman has some extra ordinary quality but
because the needs those goods.
Successful sales person dont talk too much, actually they facilitates in the sales procedures. A salesman is
also a spiritual person as in spite of being neglected, rejected he never loses his patient and behave normally
with the customers.
Sir: Do you dog why?
Aditya (13004): Yes sir.
Hamza (13023): Yes sir because whenever we see a dog and loves him we feel happy.
Sir: We love a dog not because we love him but because he takes the first approach with a smiling face.
Most of the people dont love them because they cant sublimate their ego.
Sir: But ego is not always bad, sometimes it becomes necessary to have ego. As it is one of the sense agency
among 8 things described by Brahma. But excessive attachment with these things is bad.
Harsith (13024): Why we need a god to have a purpose as it is not proved that there is god or not?
Kavitha (13027): If we take the example of a Painting containing a river, a mountain, forest, animals, birds,
etc. and if somebody will ask who created that painting then you cant say no because it cant be created by
itself, there must be the creator of that painting.
Tariqh (13057): He has different believes and opinions and we have different therefore these types of topics
should not be discussed in our ethics class.
Sir: What you want to say about Pepsi Kung Fu advertisement? Since we are in ethics class, not in an
advertisement class. This is known as term of preference. Our answer should be according to this.
Some people say the entire Bhagawad Gita crap, made for subjugation. All things written in Gita is rotten.
Vivek (13061: when Chinese people when were attacked by Chinese emperors then they developed their
martial arts by observing different animals like eagle, Tiger, etc. So everything developed is the epitome of
their cultures, epitome of discipline etc. therefore how a small Pepsi can be compared to their cultures, their
martial arts. Therefore its offence for them.
Vinay (13060): There is no matter of offence as they are not trying to disrespect their skills or their cultures,
they are just trying to promote their product, its just acting as vehicle of promotion nothing else.
We should not compare other cultures with anything else which is not up to that level. Therefore, we
should know how to respect the others sensitivity.
Moral (Sr. No. 4 July 2012 Sep 2012, ASCI, Cases), aesthetic and religious sentiments should not be
offended.
Stereotyping on the basis of gender, ethnic group should not be considered unethical.
Mayank Vyas (13033): Sir, there is possibility that they just want to promote the product in such a manner
that monks also drinking whenever they felt thirsty.
Sir: Permission from whom, suppose somebody sketches something different and bad about Hindu god and
say that they have taken permission from Nityanand and he has given permission to them then this is not
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ethical, have they had taken permission from the whole Hindu Community, no not all, even its not possible
too.
Intention of this class is not to come to the conclusion, but the motto behind this class is to come to the root
and cause.
Central issue is Fair or Unfair
Stereotyping

ASCI code
Chapter II
Talking about Banned Coke and Pepsi adv. In which a boy comes to the soft drinking automatic vending
machine and uses money to get two Coke cans and using them by putting his both legs on the two Coke
cans to reach the upper Pepsi switch. After getting the Pepsi can he goes to his way leaving behind the two
Coke cans on the ground only.
Sir: What do you want to say about this advertisement?
Vivek (13061): Coke can take this in the positive sense also by considering that Pepsi people has built their
market on the basis of Coke.
Sir: Comparative ads are permissible provided:
Comparison is not close to as to confer an artificial advantage to the product being advertised.
Comparisons should be factual
Ads does not fairly denigrate.
Sir: So what about the case (P 11)
Facts:
President: John - Built in obsolescence
CFO: Henry Costs a lot/return
Long-term R & D, to improve and not promote obsolescence
Issue:
Problem of Built to last
Replacement
New families


Obsolescence problems:
Unfair to customers
Depletion of resources
Recommendations:
R & D come with new product
Competition taken care of
Customer to ask for the new products
Replacement of old ones
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Problems are preformed


Session- 14 28 February 2014
09:00AM -10:30AM
The class starts with a half an hour video about Aravind Eye care.
About the video: The video is about the famous doctor, Dr.Govindappa Venkata Swamy who initiated
Aravind Eye Centre in Madurai. The video tells business out of compassion. Life expectancy after blindness
is 2 to 3 years, world-wide 45 million people are blind. Dr.GVS relates to Mc.D; if the same service, same
training is given as in Mc.D do, then I think whole blindness thing is gone.
The following are the points which has been covered in the video:
Priority is given to human welfare. Aravind Eye Centre conducted eye camp for the poor & needy
with the theme of A blind man showing sighted man around.
600-1000 patients are operated each day in aravind hospital. Doctors are not paid extra.
Lens substitute when cataract lens is operated & removed.
$200 for lens which is was not available across the country. Today they manufacture & export to 85
countries.
Dr.GVS has received an award from Harvard for his success.
Dr.GVS explained A pregnant women dies early morning; this is because of lack of facilities.
Sheer accident was the eye hospital opening.
1100 eye surgery successful
Initial they had a lot of problem with money. As & then they got money they start to build floors in
the hospital.
As leadership changes, the approach changes.
Beauty is something soul wants it.
Teacher: What you want to say about the Arvind Eye Care?.
surya (13056): Heart touching story, when everybody running after money how he is able to this?
Hamza (13023): The true happiness we get by serving the others. It shows that one could make a difference.
Vamsee (13006): In this video it has been shown that without eye a farmer cant go to his farms for earning
his livelihood, he cant do his daily activities and therefore he had chosen very important organ of human
body to operate.
Vivek (13061): They are working for the people who are living in the bottom of the pyramid. They have
economy of scale. Profitable organization but for a purpose (mission).
Aditya Vnv (13004): Inclusive Innovation.
Vinay (13060): They have shown that by helping others, we are helping ourselves only.
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Teacher: He started from a small village where doctors are considered as god. He was suffering from
arthritis and lost the ability of doing surgery. But somehow he accidently came into the contact with eye care
were delicate surgery is required, no greater force.
Teacher: Living life is ordinary, giving life is extraordinary (Printed on the calendar who is 90% blind). If
we have to take decision for killing people we should do it, when we have to work ethically then we should
behave ethically we should not mix both of these things, we should not be confuse between them.
Teacher: Why that 86 year old man come to hospital daily at 7:00 am? Spiritualism is not to believe in god,
etc. but to recognise that there is something common in between us.
Hard work
Might look chaotic but under the apparent chaos is a low.
I am disciplined, other may see me as unorganised.
Tariqh (13057): Success cannot be achieved without discipline
Surya (13056): I wont know about others but for me discipline is important to achieve success.
Teacher: These people appear to be indisciplines but actually they are discipline? They work very hard?
Rules differ from person to person one can be looked like as disciplined and another as indiscipline.
Teacher: We cant copy the dance of peacock but if we try, others we will us as a fool.
Teacher: Unless the truth is well said no one is going to listen it. Thats why advertisement, promotions are
used to tell us everything.
Teacher: It is not efficiency that drains us but it is the compassion which drains us for the efficiency.
Teacher: Narayana Udayala has replicated the same model of Arvind eye care. They believe that its not
good to have more than 6% profit and thats why they keep their profit below 6%, even though they are
continuously flourishing.
Initially they went asking for donation and got only 5000, therefore he said run your organization in such
a way that there is no scarcity of money, never ask for donation. This is called Market discipline.
Flow is a concept in which we do so many things in a month we get surprised. Then this is 2nd level flow of
energy.
Teacher: Its true that if Dr. V had done this we can also do it but if we have different primary motive then
our energy level will go down after some point of time and we will lose our interest in that.
No one is forced to pay in Arvind eye care after medication but if some person doesnt pay them then he will
be given mat to sleep and ultimately out of shame that person will pay to the eye care if he is able otherwise
its OK for the eye care.
And this rule applies to every patient of the Arvind Eye care whether the patient is rich or poor.


INTRODUCTION
Session 15 1 April 2014

The session starts with the question what is money?
Page 31 of 36

Mayank Vyas (13033): Something which is used to purchase something.
Aditya VNV (13004): medium of exchange.
Krishna (13028): Something which is valuable.
Teacher: Money is something which causes all sorts of problems.
Surya (13056): which is necessary for survival.
Hamza (13023): Which cant be removed from daily usage.
Teacher: Money represents power. We want money for our survival, if we have enough money then we can
say that we are own master. Money is actually a reach mans word. It also brings temptation to us.
E.g. A person may not find it suitable to pick somebody elses one rupee note, for 10 rupee note he will
simply thing what to do now, but if there is 100 rupee note or a bag full of notes no person is going to think
twice even though that money doesnt belongs to him. This is called the temptation of money. It has the
capacity to change the behaviour of humans.
The evil goddess who tempts.
The investment industry in the form of stock market operation speculative trading deviates the
attention of prime players from the long term to short term gains.
Nowadays, people purchases lands for the purpose of investment, not for the purpose of building their own
houses, etc.
Tariqh (13057): Whats wrong in it, if somebody is purchasing land for their future use?
Ayan Das Gupta (13014): Sir, if you are talking about land mafia and benami lands then its unethical, but if
you are talking about common people then I think purchasing land for their use is completely ethical and
legal.
Teacher: Purchasing land for their personal usage is good, purchasing that land for blocking somebody
elses house construction and demanding higher price value of that land than the market rate, thats
unethical.
Archana (13011): Sir, many a times middle class people purchase land but they dont build houses at that
instant of time due to credit crunch, even though they invested in land for their future usage. They are not
purchasing lands for getting extra money by blocking others chances. So this is totally fair.
Teacher: Then its Ok, its not unethical. If we are planting saplings for our future usage then its not
unethical because after sometime that plant will die as they also had fix life span like us.
Teacher: According to Gandhi ji a society should have all types of people like normal persons, thieves,
saints, everyone because society cant be run by a single group of people.
Early 1980, corporate governance system in India were still in infancy and such scams could be
expected.
Good corporate governance can be a deterrent to such scams.
Teacher: Corporate governance is a set of rules, rules do not inspire people, what inspires people are ethics,
even though rules are necessary for having control on the individuals.
Fair and accurate reflective of accounts.
The Satyam Saga
Leveraging
Leveraging is term of business, is raising capital from different market forces in terms of loan,
debts, etc. on the basis of your established goodwill.
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Teacher: Suppose, we want to build one house by taking loan from some bank and again we have taken loan
from another bank and our interests repayment is much more than our monthly income then we will be in
problem. This shows that we have leverage but not in the right way. Therefore we should not leverage
beyond a certain point which is affecting others.
Debt to equity ratio:
How much is safe?
Read Extreme leverage in What do they teach you at the Harvard Business School by Philip
Broughton.
Tariqh (13057): Having monopoly in any business sector is ethical or unethical?
Teacher: Real heroes operate only in competitions.
Vivek (13061): its unethical.
Class started by an extract from the text book. It was from Ethics and Environment
Class was excited when faculty said that he is going to play a movie
An Inconvenient Truth
It was played for almost one hour and was stopped in between for discussion. The movie was very
informative about the adverse effect of global warming. Global warming is in increasing at a rate much
above than what we thought. Expectancy of earth is at stake now. Former US president was the star of the
video.
Growth VS Development
This was the point of discussion. What is the difference between these two? Faculty asked.
Surya (13056): A boy grows to a man. A bad boy develops to a good boy.

It was agreed right by the faculty and he also mentioned above HDI and GINI indexes used.

Book to Read: When corporation rule the world

When growth is unidirectional, development is multidimensional. This the difference between the two. We
need more of development than growth.
Faculty explained that you change yourself automatically else you will be made to change and this change
would be painful.
We humans are predictably rational.
Thought: Dont complain about darkness. Light one candle you can
Tariqh and Vivek were asked to explain what happened between them in this regard. Since Arunesh told
the same thought was explained by him. It was well enacted by them.
Faculty told that we cannot solve all the problems. We have a role assigned and our duty is to do that role
very well.
This session was a visual learning experience, a session on certain rational questions and thought provoking
ones. Learning was interactive.
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Session- 16 12 April 2014

INTRODUCTION
09:00AM -10:30

Slide on: ETHICAL ISSUES IN HRM

Faculty reminded us about presentations coming after one week.
First talk was about the case The ethics of downsizing
The case was open to discussion. We discussed factors that supports the act of downsizing... some points
where, no enough work, removing dead wood, heavy loss, Mergers and Acquisitions. These points where
put forward by Vinay (13060), Surbhi (13053), surya (13056).
Faculty shared an experience of other faculty RELATED TO THIS CASE.
Downsizing should be done by a firm if there is more employees than required. It affects the quality of
work, increase the cost and may create nuisance tariqh (13057) said.

Book: Is bluffing in business ethical- Albert Carr

Is business only to earn money? Faculty asked
Ayan Das Gupta (13014): No sir, some business like we read in one of the case shows that it is not like that.

Arnab (13012) put forward economic aspects of the case. Faculty added it linking to puranas. He told about
ant hill, the work and intelligence of their ergonomics.

Book: Infinite vision

Further slides was discussed.
Acronym EPIC mentioned in the book was described well by the faculty. It was linked with Sanskrit
proverbs and real life examples. The company should think is it?
Downsizing or rightsizing?
The latter doesnt have any negative connotation attached to it.
Page 34 of 36

Faculty very well said difference between Get rid of and let it go

One should not discriminate on the basis of race, sex and age. While talking about sexual harassment,
faculty told every human being is sexually oriented. Your beard will grow naturally but you have to trim it.
Surya (13056) added her point which was very valid to the point of discussion Tariqh (13057) and Vivek
(13061) added their points. It was a healthy discussion. The module was concluded well. More involvement
was seen from students in this session.


Session 17 13 April 2014
GROUP PRESENTATIONS
1
st
day group A 4 and group A 10
Krishna: what is national security ethical dilemma?
Surbhi: they cross the limit of building and increase floor up to 31 and violation of environment rules and
policies
Subin: what do u mean by this that youre investigating bodies be clean and safe
Mayank: it means that all these bodies are governing under the political bodies so we have to remove the
control of political bodies from them
Abhijith korti: how Shreyas and prayas implemented here?
Nupoor: as the beauraucrats thinking about the benefit of taking house in this Porsche area and also give
less weightage to martyrs family and giving home to higher officials
Sir: what is ethics of duty?
Amsha: here in our case the ethics of duty that instead of giving flats higher officials they should give to
martyrs family and also they give them other benefits to them
Vivek: how u justify utiliranism theory
Divyanshu: in this context we can say that they are trying to make benefits from this and nt giving flats to
those are eligible for that so in long run they can made so much of profit because it is unethical way to
giving flats to anyone
Sir what is ethical dilemma here
Barkha: the main ethical dilemma is that whether the increasing the floor is up to 31 is right or not and
giving flats at subsidizes rate to higher officials






Page 35 of 36






Session 18 -19 13-14 April 2014

Sir: in what way this case lance Armstrong is ethical
Chinnappa: - as he is a sports person and taking all the honours and accolades by another means that is
taking drugs not the correct way.
Anand: slide 7 spiritual component .explain
Sumit: think calm positive thinking
Abhijith: is this taking drugs and or unethical why.
Shonit: yes it is unethical because you are taking the chances of other but in this competitive world if you
want fame and all the honours you have to adapt these ways up to an limit
Arnab: how this topic effect to business
Deepak: we can apply theory of ethical business and today everywhere and everything is a business so it
affects the brands for which they endorse
Madhusudhan: why utilirianism is good for all
Shreyanka: no its not good for all as it not being successful for long run benefits after at some saturating
point you have to take some measures to stop this
Mayank Vyas: as this pushing the medicines push by doctors in which they get benefit is unethical?
Pooja: yes it is but you cant help it out also as people dont have so much knowledge so this way at least
they come to know
Anand: presently this Ranbaxy is facing problems so how this help when any two companies do agreements
Vivek: when they do mergers acquisitions this help to both companies to come out with that difficult
situation
Sir:- how this pharmaceutical board control on this pushing concept ?
Approva : as companies blind advertising and pushing the their product so board can stop by some measures
in which up to certain limit you can do aggressive pushing
Akash: what is the dilemma in this?
Vikas: in this dilemma is that pushing of the medicines aggressively should be done or ot as some people
know some are not so its ethical to do such activity
Surya : how u can say that this practice restrict by you suggestions
Aby: see by these suggestions and recommendations we can check in hospitals and over doctors to stop
these practices so people not get fool by others
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Sir: Aditya conclude all
Aditya: - that such bodies are very necessary to stop such malpractices otherwise any one can sell the
medicine and make money out of it
Note: Sir we are very sorry in two presentations of 19 session not write it down as we both are absent
because of illness so due to which only one session presentation is left. We are regretting for that in future
we will take care of this and try to avoid such mistakes and try to find the solution for that.





SESSION 20 15 April 2014
First half an hour the summary of the whole course is done in which each and every aspect of ethics has
been taught
Aby read a book about how we should prioritize life.
He shared his learnings by a 2 min. presentation.
He said, we should allocate resources optimally.
Help each other, professionally as well as personally apart from just monetary factSors.
In the last chapter of that book he read about how we should stay after jail. answer to which he found we
should not get addicted to things and lastly to end his presentation on positive note, he said we should
VALUE RELATIONSHIPS.