2 Values & Ethics in Business

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VALUES & ETHICS IN BUSINESS


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VALUES

A Specific mode of conduct or converse modeof conduct or end state of existence.


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CONCEPT OF VALUE

Values represent the standard or ideals aboutwhat a person, object, event or activity, oughtto be.

Values are the means of perfection. Values are concerned with internal

development of the person , purifying mind &heart.


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Features of Values Values are at the core of personality and are a

powerful force affecting behaviour. Values are stable and enduring. This is because of the

way in which they are originally learned. Values contain a judgemental element in which they

carry an individuals ideas as to what is right ordesirable.

Values are not fixed, but they change over time. Hierarchy of values which is within, forms our value

system


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Types of Values

Different authors have given different types of values:-

I. Values may be of two different types givenby Rokeach Value Survey (RVS)

i. Terminal Values refers to desirable end-states of existence. These are the goals that a person would

like to achieve during his or her lifetime.ii. Instrumental Values refers to preferable modes of

behaviour , or means of achieving ones terminalvalues.


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Instrumental Values are : Assertiveness, standing up for oneself. Being helpful or caring toward others. Dependability being counted upon by others. Education & intellectual pursuits. Hard work and achievement. Obedience, following the wishes of others. Open mindedness, receptivity to new ideas.

Self-sufficiency, independence. Truthfulness, honesty Being well mannered and courteous towards others


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Acc. To Jones, E.E and Gerard (1967)

Anything for which the individual strives, orapproaches, embraces, voluntarily consumes,incurs expense to acquire is a positive value.

Anything that the individual avoids, escapesfrom, deplores, rejects or attacks is a negativevalue.


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II. Alports Values Classification :

Economic Theoretic

Political Social Asthetic Religious


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Graves Value Classification

Existentialism Confirmistic

Sociocentric Tribalistic Egocentric


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Formation of Values and Value System

Value forming Institution Organisational Values

Peers & Colleagues Work &Career Professional codes Situational Factors


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VALUES OF INDIAN MANAGERS

In Pvt. Sector : Be Creative Earn Money

Accept Challenges Openness Quality Good Working conditions

Stable & Secure job Responsibility Look for better opportunity to change


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In Public Sector

Integrity, Fairness and equality in BusinessDealing

Positive encouragement to creativity &Innovation

A Fanatic Belief in Quality Excellence Need more respect & dignity An Ethos of discipline & commitment


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ETHICS

Originated from greek word ethos whichmeans character, norms, morale & ideasprevailing in a group/ society.


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Ethics may be defined as the normative science of conduct and conduct is a collective name forvoluntary actions is an action that a man could

have done .differently if he had so chosen. Ethics is a mass of moral principles or set of

values about what conduct ought to be. They give

an idea what is right or wrong, true or false, fairor unfair, just or unjust, proper or improper, e.g.,honesty, obedience, equality, fairness etc.


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VALUES vs ETHICS

Values & Ethics are not interchangeable Ethics is concerned with how a moral person

should behave, whereas values simplyconcern the various beliefs & attitudes thatdetermine how a person actually behaves.

Some values concern ethics when they pertainto beliefs as to what is right and wrong. Mostvalues do not.


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Development of Ethics

Greek Ethics { 500 BC AD 500}

Medieval Ethics {AD 500 AD 1500} Modern Ethics {AD 1500 onwards} Teleological Theories


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BUSINESS ETHICS

Business Ethics are the desired norms of behaviour exclusivelydealing with commercial transactions whereas moral valuesare deep seated ideas & feelings that appear as behaviour orconduct.

Ethical issues occur frequently in management & in theabsence of ethics, scams, fraud, bribery & exploitation arecommon.

Business ethics is nothing but the applications of ethics inbusiness.

A business or company is considered to be ethical only if ittries to reach a trade-off between persuing its economicobjectives & its social obligations.


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TWO BROAD AREAS OF BUSINESSETHICS

Managerial Mischief Moral Mazes

Business ethics as a management discipline


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Myths about Business Ethics Business ethics is more a matter of religion than management. Our employees are ethical so we dont need attention to business ethics Business ethics is a discipline best led by philosophers, academics &

theologians

Business ethics is superfluous- it only asserts the obvious do good! Business ethics is a matter of the good guys preaching to the bad guys. Business ethics is the new policeperson on the block. Ethics cant be managed. Business ethics & social responsibility are the same thing. Our organization is not in trouble with the law, so were ethical. Managing ethics in the workplace has little practical relevance.


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Scope of Business Ethics

Societal level Stockholders level

Internal policy level Personal policy level

2 Values & Ethics in Business

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