BUSINESS ETHICS AND

CORPORATE SOCIAL
RESPONSIBILITY
Shachi
Yadav

LEARNING OUTCOMES
Page 2

1.To introduce the eastern ethical concepts and

philosophies relevant for resolving ethical
problems.
2.To understand how ethics are an integral part of
what managers do and how values are important
for organizational performance and success.

Shachi
Yadav

3.To examine the role of Indian philosophy in

guiding managerial actions.

Page 3

Shachi
Yadav

KEYWORDS

Oxford English Dictionary

Ethics:

the moral principles governing or

influencing conduct

Morals:

standards of behaviour, or principles of

right and wrong; concerned with the principles of
right and wrong behavior and the goodness or
badness of human character

Religion:

a particular system of faith and worship;

a pursuit or interest followed with devotion

Shachi
Yadav

KEYWORDS Oxford English Dictionary

Values: principles or standards of behavior
Character:

strength and originality in a persons

nature; the qualities distinctive to an individual

Culture:

the customs, institutions, and

achievements of a particular nation, people, or group

Shachi
Yadav

Is there an Indian Way of Doing

Business
?
Peter Senge, in
Fifth Discipline talks about
Ethics &
CSR

Shachi
Yadav

learning
organizations and organizational development and in reference
to India and China he said,
My intuition is they (India and China) will move somewhat
together but in very distinctive ways. But I think the thing that
will be really common to both of them will be the fact that they
wont be able to do this without reconnecting their heritage.
They will have to develop a confidence that they can do this as
Indians and they can do this as Chinese. They have learnt a lot
from the West but they dont have to copy, they cannot create a
Chinese or Indian version of a Western model. The Western
model itself is basically bankrupt. It does not give enough
attention to the human side of development.
Now, if the concept of corporation was borrowed from the West
is there an Indian way of doing business?

East vs. West

Ethics &
CSR

Shachi
Yadav

Gymnosophist and Alexander

Long time ago when Alexander came to India he came through
the banks of Indus and he met there a very strange man called a
Gymnosophist. So Alexander looked at the Gymnosophist as he
was doing nothing, he was sitting over there, staring at the stars
he said What are you doing? and the Gymnosophist said I am
experiencing.
Then the Gymnosophist asked Alexander, What are you doing ?
Alexander said I am conquering the world. And they both
laughed. Each one thought the other was a fool. Alexander felt
that its a waste of a life to do nothing and the Gymnosophist
thought its a waste of a life to do anything.

Why study philosophy?

Shachi
Yadav

Philosophy is to be studied, not for the

sake of any definite answers to its
questions since no definite answers
can, as a rule, be known to be true,
but rather for the sake of the questions
themselves;
because these questions enlarge our
conception of what is possible, enrich
our intellectual imagination and
diminish the dogmatic assurance which
closes the mind against speculation;
but above all because, through the
greatness of the universe which
philosophy contemplates, the mind also
is rendered great, and becomes
capable of that union with the universe
which constitutes its highest good.
- From Bertrand Russells, The Problems
of Philosophy.

Bertrand Russell (1872-1970)

The method of asking questions

This method of
inquiry is usually
called the Socratic
method, after
Socrates.
Some questions may
not have answers.
Yet, this is our only
method to gain
understanding.
Shachi
Yadav

Godels Theorem
In any axiomatic
system, there will
be propositions
which can neither
be proved or
disproved in that
system.
Kurt Godel (1906-1978)
Shachi
Yadav

Western Philosophy
Ethics &
CSR

Shachi
Yadav

Indian Philosophy
Ethics &
CSR

Shachi
Yadav

Though the basic problems of philosophy of

east and west have similarities, the process
of development of philosophical thought
varies.
Indian philosophy discusses the different
problems of Metaphysics, Ethics, Logic,
Psychology and Epistemology but generally it
does not discusses them separately. Each
problem is discussed by Indian Philosopher
from all possible approaches.( synthetic
outlook of Indian philosophy)

Outline of Indian Philosophy

Shachi
Yadav

Vedic Period (2500 B.C. 600 B.C.)

Epic Period (600 B.C. 200 A.D.)
Sutra Period (200 A.D. 600 A.D.)
Scholarly Period (600 A.D. 1700 A.D.)
The Modern Period (1700 present)

The Katha Upanishad

Is it possible to arrive at the
essence of knowledge?
Sraddha
This refers to a deep
conviction that there are
truths to be grasped and
we have the ability to do so.
One of the most
incomprehensible things
about the universe is that it
is comprehensible.
Shachi
Yadav

The method of analogy

In the Mundaka Upanishad, we find:
As a spider sends forth and draws in its
thread, as herbs grow on the earth, as the
hair grown on the human head and body,
so also from the Imperishable arises this
universe.
Sanskriti and Prakriti

Shachi
Yadav

Sanskrit
This is a highly structured language with
precise rules of grammar.
It is phonetic.
The roots of many European languages,
including English can be traced back to
Sanskrit.
Linguists infer the existence of Proto-Indo
European (PIE) language from which
Sanskrit is derived going as far back as
3500 BCE.
Shachi
Yadav

The Four Vedas

Shachi
Yadav

Rig Veda
Yajur Veda
Sama Veda
Atharva Veda
Each Veda is divided into four parts:
Mantras, Brahmanas, Aranyakas, and
Upanishads.

Mantra

Shachi
Yadav

This word is derived from two Sanskrit words:

Manas which refers to the mind
Trayate which means to protect.
Thus mantra is that which protects the mind.
The word trayate also refers to that which reveals,
or releases or delivers.
It also refers to the power of reflection of the
human mind.
Manush in Sanskrit means human being
The English word man is derived from this word.
The word mananam refers to reflection.

Brahman
This word is derived from the Sanskrit
root word brih which means vast and
expansive.
Thus, Brahman refers to that which is vast
and expansive.
The word brahmin, refers to a priest, or
more accurately, to a scholar.

Shachi
Yadav

Aranyakas and Upanishads

Shachi
Yadav

These are the philosophical portions of

the Vedas.
Veda is derived from the root word vid
which means to know.
Aranya means forest and aranyaka
means forest writing
Upanishad is a combination of three
Sanskrit words: upa, ni, shad whose
translation approximates: near,
below and sit

The Epic Period

The Ramayana of
Valmiki
The Mahabharata of
Vyasa

Shachi
Yadav

The Bhagavadgita

Shachi
Yadav

The schools of Indian Philosophy

Shachi
Yadav

Scholarly Period (600A.D.-1700 A.D.)

Three great philosophers stand out
during this period.
They are Shankara, Ramanuja, and
Madhva.

Shachi
Yadav

The Modern Period (1700

The writings of the modern period are
present)

mainly in English, and so easier to read.

J. Krishnamurti (1895-1986)
Aurobindo (1872-1950) M.K. Gandhi (1869-1948)

Shachi
Yadav

Vivekananda (1863-1902)

R. Tagore (1861-1941)

S. Radhakrishnan (1888-1975)

External Sources of a Managers

Values

Shachi
Yadav

26

Religious values
Philosophical values
Cultural values
Legal values
Professional values

Internal Sources of a Managers

Values

Shachi
Yadav

27

Respect for the authority structure

Loyalty
Conformity
Performance
Results
Self Development

Elements of Moral Judgment

1. Moral imagination
2. Moral identification and ordering
3. Moral evaluation
4. Tolerance of moral disagreement and ambiguity
5. Integration of managerial and moral competence
Shachi
Yadav

28
6.
A sense of moral obligation

How we learn values

Socialization- family , peer , bosses

Role Models Leaders ship
Culture

Shachi
Yadav

DHARMA
Actionable rights and responsibilities
specific to roles in different stages in life
meant to achieve purushartha
All individuals, organizations , systems
and animate and even inanimate entities
have their own dharma
Through dharma we bring ethical , social
and economic order in society.
Shachi
Yadav

30

Eastern Perspectives
Svadharma is morality
Developing Satwic Guna will make you
more moral
Introspection, reflection , contemplation
and Mediation develops decrement .
Gurukul Culture
Shachi
Yadav

Light from the golden quartet

The principal guidelines from them may be
summarized as follows:
1. Treating honesty as a principle, not policy.
2.Character making is the core of education.
3. Self-mastery, leashing the lower self, is a
prerequisite for character-making.
4. Learning to distinguish between the preya
and the shreya, and developing the will to
choose the latter.

Ethics &
CSR

Shachi
Yadav

Light from the golden quartet

Ethics &
CSR

Shachi
Yadav

5. Tuning in with the universal moral

rhythm,ritam. Nishkam karma is a universal
practical process for this aim.
6. Freedom from the desires of the deficit
driven self, return to frugal and simple
living, supported by awakening of the
ampleness of SELF within.

Light from the golden quartet

Ethics &
CSR

Shachi
Yadav

7. Awareness of the infinite, the superconscious,

the supramental as essential for ethical
empowerment.
8. Cultivation of the feeling of oneness, the
unity that underlies the surface diversity
of creation has to be a basic tenet of self
development.
9. Conviction that morality and moderate
material living are not contradictory.
10. Learning to enjoy with detachment (bhogwith
tyag) as another strong pillar of ethical living.

4 S Model
SEWA- work for others without reward
SATSANG- spend greater time in company of
people witjh higher values
SWADHYAYA- read philosophy and inspirational
literature
SADHANA- pranayama, meditation and sense
control
Shachi
Yadav

Implications

Shachi
Yadav

Will companies encourage the practice of 4 S model in

their organizations to raise morality levels?

Do companies really want their executives to be moral?

Will leaders become role models to subordinates to be

emulated for their high morals ?

Do organizations have systems and structures in place

to create an environment where people can be
comfortable with morality and want to practice it ?
Can morality be institutionalized ?

Is morality rewarded in organizations?

Making Moral Management Actionable

Role of Senior management
Ethics training
Self-analysis

Shachi
Yadav

37

Texts and References

S. Radhakrishnan and C. Moore, A Sourcebook in Indian
Philosophy, Princeton University Press.
S. Radhakrishnan, The Principal Upanishads, Oxford University
Press.
M.K. Gandhi, Collected Works, Vol. 1-100. Available online at
http://www.gandhiserve.org/cwmg/cwmg.html
S. Radhakrishnan, The Bhagavadgita, Oxford University Press.
S. Dasgupta, A History of Indian Philosophy, Motilal Banarsidas.
R. Puligandla, Fundamentals of Indian Philosophy, Abingdon
Press.
Journal of Indian Philosophy, Springer.
M. Ram Murty, Indian Philosophy: An Introduction, Broadview
Press.

Shachi
Yadav

TA ETIHIKA.

Shachi
Yadav