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Ethics means norms for the conduct of people in social groupings. Ethics is derived from Greek Word Ethos which means culture the prevalent behavior in the society. Thus, it is a

code of conduct which has social acceptance.

Ethics has often been misunderstood to be conforming to law. On the contrary, ethics is about voluntarily conforming to what is good/acceptable/desirable behavior without the force of any legal/social obligation.
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Role of ethics in business has been a perpetual issue.

It has been gaining importance in the recent times due to geographical spread, growing size of businesses and their

ever growing capability to impact the lives of millions and

millions of people.

It has also been highlighted by the colossal scams in some businesses in recent times.
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The purpose of business is to earn profits. And almost every business tries to maximize its profits.

But the question that arises here is how much profit and

at what social and other costs?

In today's fast-paced, competitive and demanding business environment, employees in both small and large businesses can find themselves facing difficult ethical dilemmas. For this reason, every business regardless of size needs to provide knowledge and resources to help employees act ethically. there are several critical ways to develop and sustain an ethical business environment. Perhaps the most important is the realization that "it all starts at the top."
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Establish an enforceable code of conduct.

Initial and ongoing training.

Regular communications.

Anonymous reporting hotline.

Enforcement/Action. Rewarding employees that live the culture.

These are statements of behavioral ideals, exhortations, or

prohibitions common to a culture, religion, traditional

profession, corporations and trade associations.

Codes combine philosophical with admonitions to avoid certain illegal actions and espouse certain moral principles, especially those that elevate personal behavior.

Principle-Based :
Designed to enable the employee to make ethical decisions based

on appropriate values e.g., treat people fairly or dont

be dishonest

Policy-Based :
Guideline as to how to act in specific ethical dilemma situations

(reducing the need for thinking)

(a) Conflicts of interest. (b) Disseminating proprietary information. (c) Receiving and giving political gifts. (d) Equal opportunities.
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Carte McNamara suggest the following three guide lines:

1.

Identify the key behaviors needed to adhere to the ethical values proclaimed in code of ethics.

2.

Include wordings that indicates all employees are expected

to conform to behaviors specified in the code of ethics.

3.

Obtain review from key members of the organization and

not confined to legal such reviews to ensure the policies are in accordance with law and regulation.
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Emotions are highly intense ,fleeting and sometimes disruptive to work.

Moods tend to be less intense, longer lasting feeling that typically dont interfere with the job at hand.

Emotional Hijacking:
Negative emotions-especially chronic anger, anxiety or a

sense of futility-powerfully disrupt the work, hijacking

attention from the task at hand. Good mood, Good Work
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Coercive Power Power that is based on fear. Reward Power Power that is based on the ability to distribute rewards that others see as valuable

Legitimate Power Power that a person receives as a result of his/her position in the hierarchy Expert Power Power based on specific skills or knowledge

11 Referent Power :Power based on admiration of another

Political behavior: Activities that are not required as part of ones formal role in the organization, but that influence, or

attempt to influence, the distribution of advantages and

disadvantages within the organization.

Politics is a fact of life in organizations. People who ignore this fact of life do so at their own peril.
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One of the most important factors leading to politics within

organizations is the realization that most of the facts that are used to make decisions and allocate resources are open

to misinterpretation.

If you want to become more politically adept in your organization, what could you do?

1. 2. 3. 4.

Frame arguments in terms of organizational goals. Develop the right image. Gain control of organizational resources. Make yourself indispensable.
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Question 1: Is the political action motivated by self serving interests to the exclusion of the organizations goals? No Yes

Unethical

Question 2: Does the political action respect the rights of the individuals affected?
No
Unethical

Yes

Question 3: Is the political activity fair and equitable? No Yes Ethical

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Unethical

1. 2. 3. 4.

Business ethics helps the organization to achieve corporate excellence in many ways. It results in organizations establishing distinctive cultures for individual companies. When such distinctive cultures are established, they promote creativity and innovations within the organizations. Corporate Mission Statement. Code of Ethics. Organizational Culture. Total Quality Management (TQM).
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Companies are investing millions and millions of rupees on ethics and compliance management.

fortunes conducted a survey on ethical activities shows:

Most of the firm distribute code of conduct policies

widely in organization in formal documentation.

Employees receives ethical training and access to

hotline.
Guideline prescribes more lenient sentences and fines to
16 companies for measure to prevent employee misconduct.

1.

A value based cultural approach to ethics/compliance management works best. Requires sincere commitment of leader at all the level.
Fair treatment to employees.
Reward for ethical conduct.

Concern for external stake holders.

Consistency between words and actions.
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2.

Ethics/compliance programme itself should be:

Value based. Motivating to employees to aspire ethical conduct. Encouraging them to question to authority when ethics are at a stake.

Holding them accountable for rule violation.

Result of such approach is highly impressive. They create

highly committed employees who are aware of ethics and compliance.
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1. 2.

programme orientation Value orientation

3.
4.

Compliance and orientation

Combination of above three.
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Companies that are committed to a code of ethics will enjoy the following four key benefits:
1. 2. 3. 4.

Reduced risk.
Reduced fraud. Reduced litigation. Happier Employees = Improved bottom line.
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An ethical culture should be a top priority of every business, large or small.

Companies that follow the steps outlined above, from establishing enforceable code of conduct to rewarding employees for helping to implement and enforce the code

will find that their efforts also will be rewarded in terms of

ethical profited organization.
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Thank You..
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