.

 Meaning: Comprises the Principles & Std

 That guide behaviour in the world of business

Definition: The study of business Situations, Activities & decisions

where issues of right or wrong are addressed
Business Ethics and Law
• Law is also about issues of right and wrong
• Considerable overlap between ethics and law
• Law- codification of ethics into specific
• Social rules
• Regulations
• Proscriptions
1. Power and influence of business in society is great
2. Business has potential to provide major contributions to
society
3. Helps to understand causes and consequences of business
malpractices- to improve human condition
4. Demand on business to be ethically its stakeholders
1. Thru biz ethics: Firms can meet ethical expectations effectively
5. Biz Ethics helps to improve ethical decision making-By
providing appropriate knowledge & tools to Mgrs
6. Ethical infractions occur in Biz
 Biz Ethics ways to solve
7. Ability to Assess the benefits/problems associated with
ways of managing ethics in organization.
 Overt ones are generally deplored
 Business avoids Overt issues
 In business most activities are Covert

Ethical Responsibilities: Obligation Of Employees

Obligation Of The Employer
 Obligation of Employee:
 Employees Main Moral Duty is to work;
 Towards the goal of the firm
 To avoid any activities which might cause harm to those goals
 To Obey organizational superiors
 Dilemma of Management- Obligations are Costly
 Managers has to strike b/w Economic Performance & Social Performance
 Decisions must be Right, Proper, Just

 Characteristics
of Ethical Problems:
1. Many Consequences:

 Many Consequences at diff levels in society

 Affect people within & outside organ
1. Different Alternatives:
 Ultimateanalysis of choice b/w Yes/No
 Each choice will have its own Rewards/Penalties
3. Extended Consequences:
 Will have long range effect on organ & society

4.Mixed Results:
 Social Benefits & Costs Associated with alternatives in
 Financial Revenues & Exp. Ethical Choices

5.Uncertain Consequences:
 Results will not be clear-cut
 Uncertainties/Unknown Probability of occurrences

6.Personal Implications:
 Individual Benefits & costs are associated
 Pricing Level
 Advertising Messages
 Product Promotions
 Working Conditions
 Customer Service
 Work Force Reductions
 Environmental Pollutions
 Community Relations
 Supplier Relations
A Conscious Mkt is one, that makes the
transactions ethically sensitive
 Ethics sensitivity are two categories

1. Secular Ethics-Relates to Empirical aspect

2. Sacred Ethics- Relates to Eternal aspect

Empirical Ethics:
 The one whose Knowledge is got from

experience & induction

 All wordly things come under empirical self

 Culture of selfishness
 Believes in core divinity of individual
 Timeless, Spaceless dimension comes under eternal

 Culture of Self-Giving

 Ethically sensitive segments of the markets

response depends on-
Nature of transaction &
Levels of Consciousness of the market
 Meaning: Application of Principles of mgt.
revealed in our ancient Wisdom described in
Upanishads & Gita
Features:
1. Potentially one is divine- Human Being
2. Balance/Equilibrium is the Keynote of Indian
thought
3. Individual is taken as central focus by Indian
Ethos
 If you are good, the world is good
1. Offerssecure base for Mutual trust, Co-operation,
Team Work, Living &Working for the Public
Benefit
2. Greater Emphasis on Values
 Knowledge is not power
 Character is real power & Wealth
6.Based on Indian Scripture
1. Sruties: Upanishads & Gita
2. Smrutis: Puranas

7.All Work is Worthy & Honorable

 Dignity of work

8.Rarely speaks about Rights & Privileges of Individual

 Emphasizes only on Duties & Responsibilities

9.Deals with two types of Knowledge

1. Knowledge of Creation-World
2. Knowledge of Creator- Divine
1) Management Attitude:
o Top Management must believe in value-oriented holistic
management of business

o Satisfy expectation of all stakeholders

o “work is worship”
 manager is a sadhak ===achiever
 devoted to his work
3 aspects of humane organization
Emphathising – thinking abt workers and customers

a. Inter-personal relations
b. Man-machine equation

c. Inner management –mental & spiritual

→ Management should develop human touch and

humanized managerial style
 Manager must first learn to manage and control himself

 Understand and know himself

➛ able to manage and control subordinates and workers

➛ motivated to develop self- discipline and self- control

➛ A tip to the managers

 Embark upon self-study, self analysis, self-criticism
- to locate areas of friction and disharmony

⇒ preparing a balance sheet of our own strength and weakness

⇒ self-examination of our own thoughts, feelings, emotions,
sensations and passions
- help us to discard unwanted traits and cultivate good values
 for rational and enduring decisions – silent mind
is effective medium to get sound decisions
 as against “brain storming”

6) Stepping back
- stepping back/ drawing-back into yourself
 remain quiet
call on inner consciousness force
wait for a while for an answer
 enables us to control and even master the situation

o withdrawing from involvement helps to receive right guidance

from within

7) Role of intuition in Management

 act of coming to direct knowledge / certainty without reasoning or
inferring

 Immediate cognition by inner mind, through

• Inspiration
• Instant awareness
• The little voice –within us
 Fully developed intuition in effective and efficient for taking prompt
and sound decisions

 It is fast and accurate

 Enable manager to cope with confidence the fluctuating

environment and rapid changes

 Must have faith in intuition and ‘practice leads to perfection’

 Intuitive mind reflects quality of mind

--More important than mere data / information for decisions on
strategic matters
 Ecological concern -relationship among living things in
the water air and soil
i) Air pollution
ii) water pollution
iii) land pollution
iv) cruelty to animals
 Main Job of Mgt is not producing results but to produce Performers
 Workers are to produce results.

Mgr has two Duties:

1. To translate the vision/dream in terms of Project- Workers

2. To Produce Performers who are Self-Motivated

 Effective Leadership
 Has to develop Right kind of mindset
 Has to change is his approach & Skill
 In Indian thought System Mind is key to Everything around us
 MIND: Manifestation of Infinity & Diversity
 Quality of mind determines- Quality of human being
 Determines quality of Prdt/scr. Produced by human Beings
9-M Framework
1. Mind

2. Motivation

3. Mission

4. Machines

5. Methods

6. Money
 7. Materials
8. Manpower
9. Marketing
 Mind is the Energy source for translating Mission &
vision of Organ into reality
 Motivational impulse: Indicative of Entrepreneurial
Orientation
 Machines, Methods, Money, Materials
 Std. inanimate components of Mgt Process
 Quality of Manpower- Optimal utilization Of inanimate
components
 Depends of Quality of collective minds
 Marketing: Stands for, Emphasis on quality for consumer
satisfaction
Indian “TQM” is Pre-Requisite for TQM