VALUES & ETHICS IN BUSINESS

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

CONCEPT OF VALUE
Values represent the standard or ideals about what a person, object, event or activity, ought to be. Values are the means of perfection. Values are concerned with internal development of the person , purifying mind & heart.

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

Types of Values
Different authors have given different types of values:I. Values may be of two different types given by 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. Instrumental Values refers to preferable modes of behaviour, or means of achieving ones terminal values.

ii.

Terminal Values are :

Happiness, Satisfaction in life Knowledge and wisdom Peace & harmony in the world. Pride in accomplishment. Prosperity, wealth. Lasting Friendship. Recognition from peer. Salvation, finding eternal life. Security, freedom from threat

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

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

Anything for which the individual strives, or approaches, embraces, voluntarily consumes, incurs expense to acquire is a positive value. Anything that the individual avoids, escapes from, deplores, rejects or attacks is a negative value.

II. Alports Values Classification :

Economic Theoretic Political Social Asthetic Religious

Graves Value Classification

Existentialism Confirmistic Sociocentric Tribalistic Egocentric

Formation of Values and Value System

Value forming Institution Organisational Values Peers & Colleagues Work &Career Professional codes Situational Factors

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

In Public Sector
Integrity, Fairness and equality in Business Dealing Positive encouragement to creativity & Innovation A Fanatic Belief in Quality Excellence Need more respect & dignity An Ethos of discipline & commitment

ETHICS
Originated from greek word ethos which means character, norms, morale & ideas prevailing in a group/ society.

 Ethics may be defined as the normative science of conduct and conduct is a collective name for voluntary 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, fair or unfair, just or unjust, proper or improper, e.g., honesty, obedience, equality, fairness etc.

VALUES vs ETHICS
Values & Ethics are not interchangeable Ethics is concerned with how a moral person should behave, whereas values simply concern the various beliefs & attitudes that determine how a person actually behaves. Some values concern ethics when they pertain to beliefs as to what is right and wrong. Most values do not.

Development of Ethics
Greek Ethics { 500 BC AD 500} Medieval Ethics {AD 500 AD 1500} Modern Ethics {AD 1500 onwards} Teleological Theories

BUSINESS ETHICS
Business Ethics are the desired norms of behaviour exclusively dealing with commercial transactions whereas moral values are deep seated ideas & feelings that appear as behaviour or conduct. Ethical issues occur frequently in management & in the absence of ethics, scams, fraud, bribery & exploitation are common. Business ethics is nothing but the applications of ethics in business. A business or company is considered to be ethical only if it tries to reach a trade-off between persuing its economic objectives & its social obligations.

TWO BROAD AREAS OF BUSINESS ETHICS

Managerial Mischief Moral Mazes

Business ethics as a management discipline

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.

Scope of Business Ethics

Societal level Stockholders level Internal policy level Personal policy level