Ethics and Values in Business

Prof. I.V. Chalapati Rao

Many people think that ethics and values for business are antithetical and
mutually exclusive. This opinion is further confirmed by the recent media reports
about the scams and frauds committed by high profile companies and
corporations run by men who were treated as gods until their clay feet are
exposed. Of course, we should not condemn the tree for its a few rotten fruit.
Because of these unethical elements we should not think that all business men
are tainted. There are worthy leaders in business who practice business ethics and
maintain values. Behaviour of the top executives influences the whole character
of the organization’s response and determines the corporate personality which
distinguishes one company’s ways of doing business from another’s.

Business Ethics came into existence to fulfill the need for a practical guide for
managements and leaders to maintain values while making profits. It will lead to a
change in culture where the company implements ethics in management in the
work place. Business ethics is the voluntary observance of a self-regulated code of
conduct. It consists in practicing honesty, transparency, courtesy and other
values. Today there is a great need and demand for ethical corporate leadership
and introduction of ethics in business curriculum. Ethics programme enhances the
public image of the company as one that maintains quality in its products and
services.

The evils of unregulated business are well-known. Natural resources like land and
water are getting depleted with their indiscriminate use. Deforestation has
affected not only fauna and flora but also the climate and rain fall. Notorious
malpractices in business include substandard products, adulteration under
measurement, poor quality of services, hoarding, black marketing, kickbacks,
misleading advertisements in the media, tarnishing the image of the competitors,
indifference towards customers, unfair wages to the employees, etc. Their sole
object appears to be maximization of profits at any cost.

To give protection to the users and consumers, laws were passed, unions were
formed, user associations, consumer forums and consumer courts came into
existence. In spite of these ameliorative measures, it is found that companies and
industries are adopting questionable methods. As we know, there are always
loopholes in the laws and there are ways of circum venting them, they are like
cobweb in which small flies are caught while big one pass through them. Mr.
James Butler said, “In law nothing is certain but the expense.’

Therefore, strict observance of business ethics by organizations will go a long way

in improving things. Efforts are being made to develop awareness among them for
observing an ethical code. The prominent features of the business ethic are as
follows:

- A responsible image must be maintained as a social institution to conduct

welfare activities and participate in nation building.

- It should protect the interests of not only the shareholders but also all the
stakeholders.

- There should be transparency in its activities.

- Employees should get reasonable salaries and proper working conditions.

- There should be training facilities (staff development) because workers

come not only to work but to grow.

- There should be grievance redressal committee to resolve disagreements

and infringement of contracts, etc.

- Consumers should get goods and services of good quality at fair prices.

- There should be a research wing and quality circles to achieve excellence.

(Total Quality Management).

- Business should accept responsibility for maintaining ecological balance

and controlling pollution.

- Big business should not choke out small business.

The following values should be observed in business ethics:

1. CREDIBILITY (honesty, trust, worthiness, integrity)

2. ESTEEM (respect, dignity, honor)

3. RESPONSIBILITY (Accountability, openness, maintenance of quality)

4. CARING and SHARING (Kindness, service mindedness, sympathy for the

poor)

5. JUSTICE (fairness, impartiality, no caste or gender prejudice)

6. PROTECTION OF ENVIRONMENT (control of pollution)

7. SOCIALLY USEFUL ACTIVITIES (scholarships to students, charitable work,

medical care)

Some of the firms well-known for their business ethics are Microsoft, Johnson and
Johnson, Hewlett and Packard and Tata’s.

Our ancient rishis and our scriptures called ‘ethics’ DHARMA which means
righteousness. Our Upanishad message is: “Don’t covet wealth which does not
belong to you, Don’t give up Dharma for Wealth” explained in Mahabharata, the
characteristics of KALIYUGA. He say Markandya “People don’t observe Dharma;
don’t speak the truth Because of corruption, few people are noble and
respectable”. Today we find unethical people almost every where. There is need
to start a people’s movement in favour of ethics. Even Aristotle of Greece and
Cicero of Rome discussed the subject of ethics in business and life.