Business Ethics |
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The article
indicates the role, importance, uses and effect of ethics and etiquettes
to result in success. Ethics matters because it makes good business sense
to 'do the right thing'. Additionally good corporate Ethics result in:
CONCEPT: To understand the concept of Ethics
we require management perspective. Attention is focused on the attitudes,
Experiences, Expectations, Problems and changes in individual and Groups
as they interact at work. Answers are sought to such questions as:
"Ethical Behavior" means getting the
right kind of behavior from people as individuals and groups. Ethical
Behavior is activity that results in the right thing being done. But what
is the right thing? Sometimes it is dictated by our culture. Most of the
times though employees of an organization must determine for themselves
what is right or wrong. In our rapidly changing world there are many
situations in which no absolutely clear, indisputable course of ethical
action exists.
Some authors think that laws are dependent upon too heavily as
behavioral guidelines. In business field they propounded 4 codes of ethics
like:
INTRODUCTION:
In this era of globalization and multinational competition, Ethical
practices in business are assuming importance as relationships with
various suppliers and customers are shaped by ethical practices and mutual
trust, so ethical decision taking assumes importance in today's corporate
world. There are various issues relating to ethics and corporate ethics in
the corporate world. This article discusses those issues and also takes
into consideration in brief the two models, which are termed as models of
ethical decision making. They are as follows:
1) Joseph son institute Ethical decision making model
: This model is widely used in taking ethical decisions. It consists of
3 Steps:
2) The Plus Decision –Making Model : To make
it easy to understand and apply these ethics filters, the researchers
have adapted to mnemonic word "PLUS" What is unethical Behavior?
The former Prime Minister A.B. Vajpayee call for "Zero
tolerance" for corruption in order to restore ethics cannot become a
reality unless we work with the foundation of human values:
The main forms of unethical behavior by individuals can be:
If these unethical behaviors can be overcome then the path
towards enlightment can be achieved. And this was the essence of
enlightment of Lord Buddha, Tagore, Nehru, and Gandhi to name a few. Lord
Buddha gave 4 noble truths which constitute the essence of Buddha's
enlightment that he was eager to share with all fellow beings. These have
come to be known as 4 noble truths. They are:
The path recommended by Buddha consists of 8 steps and is
called the 8 fold noble path. This gives the essentials of Buddhist
ethics. The noble path consists of the Acquisition of the following 8 good
things:
It's been rightly said:
"In sin we lust after pleasures, not because they are truly
desirable, but because the red light of passion makes them appear
desirable, We long for things not because they are great in themselves,
because our greed exaggerates them. These exaggerations break the harmony
of our life at every step, and we lose the true standards of
Values". CORPORATE ETHICS
Gone are the days of Milton Friedman, Noble Laureate in Economics and
Patron Saint of laissez-Faire, who asserted that the sole objective of a
business is and should be the maximization of shareholder's value. Social
missions according to him are the responsibilities of individuals, social
Agencies and the government. Business today far from being a profit making
institution is largely looked upon as a social institution pursuing a
social mission and having a far reaching influence on the way people live
and work together. Modern corporate do not operate in isolation. The
resource they make use of are not limited to those of the proprietors and
the impact of their operation is felt also by many a people who are in no
way connected with the business. The shareholders, the suppliers of
resources, the consumers, the employees, the local community and the
society at large are affected by the way an enterprise functions.
The successful functioning of a firm requires social sanction. No
business can exist without the acceptance and sanction of the society in
which it carries out its activities. The organization is so dependent on
its social environment that it's very existence, survival and growth
depends on its acceptance and approval by the society. Way back in 1963
Peter.F.Drucker the renowned management guru in his book entitled
"The practices of Management" stated that the relationship
between business and society is "like the relationship between a ship
and the sea which engirds it and carries it, which threatens it with storm
and shipwreck, which has to be crossed but which is yet alien and distant,
the environment rather than the home of the ship. But the society is not
just the environment of the enterprise. Even the most private to private
enterprise is an organ of the society and serves a social function. Given
the mutual relationship between the business and the society, Business
cannot and should not be allowed to conduct itself in a manner that may be
detrimental to the interest of the society. How the business should
conduct its multidimensional activities in order to pursue its social
obligations in a transparent manner forms the subject matter of corporate
ethics.
CORPORATE ETHICS CONCEPTUALISED:
The words "ethics" which in Latin is called "ethic
us" and in Greek is called "ethikos" has come from the word
ethos meaning characters or manners."Ethics is thus said to be the
science of morals, a treatise on this moral principles recognized rules of
conduct. As applied to business firms, ethics is the study of good and
evil, Right and wrong and just and unjust actions of businessmen. If
protecting others from any harm is considered to be ethical, then a
company which recalls a defective or harmful products from the market is
an ethical company. To be considered ethical, business must draw their
ideas about "What is desirable Behavior "from the same source as
any body else would draw. People who are in business are bound by the same
ethical principles that apply to others. In common parlance the term
"corporate ethics" refers to the systems of principles rules of
conduct applied to business. In practice, the term has been used to
describe the do's and don'ts for the business the various things that
business should or should not do viz not violating any law, avoiding
unethical practices, making donations to charitable causes, taking up
development projects in backwards areas, paternalism towards employees,
good public relations etc.
A GLOBAL PHENOMENON
The concept of corporate ethics is no longer confined to academic
discussions. Leading corporate the world over have started practicing them
in their various facets and dimensions. Levi Strauss, a leader in socially
responsible behavior in US refused to open factories in Alabama, which
practiced segregation. It also refused to operate in south Africa where
apartheid existed. On the other hand, the company deliberately
decided to operate in South Africa and assit the non white population
there to enter business. All these decisions were taken in disregard to
profit or growth consideration. Again globalization is reported to have
resulted in an increase in the use of child labour. when Levi Strauss was
accused of using child labour in Bangladesh, it's top executives
immediately went there, stopped their contractors from using child labour,
put the children in school and promised to employ them in future.
MBB the biggest German aerospace company has donated expensive
equipments to a New Delhi hospital for bloodless surgery. Brown Boveri and
Migros two large Swiss companies have involved themselves in a massive
programme of consumer education.
Maruti Udyog Limited is another name associated with social
responsibility. In the year 1997, of the entire car's sold between January
and April this responsible company recalled about 50000 of their most
popular products, Maruti 800 from the Market Because they suspected them
to be made of inferior steel. This made newspaper headlines as it was the
biggest ever recall of cars from the Indian Marketplace.
Critical as the present post globalization phase is Indian corporate
with such a questionable track record cannot afford to take on the global
giants, many of whom have established them as "the leader of the
socially responsible behavior". Concerted efforts therefore will have
to be made by the Indian corporate to measure up to his broader
expectations of the society at large. How to do it? Gandhiji furnishes a
convincing reply to this billion dollar question. His doctrine of
trusteeship contains practically everything that may enable Indian
Corporates to come out of the present Morass.
DISCORDANT NOTES
It will not be out of place to mention here that fingers have been
raised on the trusteeship principle like many others principles propounded
by leaders like M.K.Ganhdhi,J.L.Nehru Swami Vivekananda etc. During the
very life time of these leaders people starting questioning their theory
that it will pay the way for a large no. persons to emerge as the \
trustees of a business enterprise "After all how many persons
Gandhiji is prepared to accommodate as the real trustees of an
enterprise" Cryptically asked the opponents of this theory. However
such criticisms don't appear to have shaken the confidence of the leaders
like M.K. gandhiji, Nehru etc. Let us see how these leaders reacted to
these criticisms:
"We adhere to my doctrine of trusteeship in spite of the ridicule
that has been poured upon it. It's true that it's difficult to reach. But
we made up our minds in 1920 to negotiate that steep ascent. We have found
it worth the effort. The question how many can be real Trustees according
to this definition is beside the point. If the theory is true it's
immaterial whether many live up to it or only one lives up to it. The
question is of conviction there's nothing in this theory which can be said
to be beyond the grasp of intellect, though you may say it's difficult to
practice.
CONCLUSION:
Even a cursory glance at the modern corporate practices will amply
demonstrate the doctrine of trusteeship has proved to be beacon light for
the practitioners of modern management in discharging their responsibility
towards the society. It's not a fact that a business today confesses that
it has ruthlessly pursued brute profit long enough unmindful of it's
obligation and impact on the society.can there be any denying the fact
that business owes a debt to the society and hence it has to repay it in a
transparent and easily perceivable manner. In fact it is in response to
such a realization that the business has started taking care of the cross
sections of the society:
The consumers, the workers, the equity holders, the national economy
and also the ecology and the environment.
The vision of great leaders and their vision of a socio Economic order
have tremendous potential for shaping the policies and programmes of
modern corporate All the leaders it must be remembered here were not a
utopia builder but a men of action practicing the art of possible. They
were not interested in filling in details in their picture of the ideal
society. It's is largely in the specific Indian context that they worked
out a few concrete programmes and which then they related to their larger
concept of an Ideal socio economic order. So, while considering how they
further elaborated their idea and filled in some details in their model.
We must remember the specific context with in which they worked and
separated specific remedy from the universal principle. |