Will help Management students in understanding Indian Ethos and Business Ethics- Understanding different values and applied ethics

1. Dept. of MBA, Sanjivani COE, Kopargaon
401 Indian Ethos and Business Ethics
Unit. No. 3
Values and Business Ethics at Applied ethics
Presented By:
Dr. V. D. Chavan
Ph. D (Management), MBA(Mkt), B.Com (Banking and Cost Accounting)
Associate Professor
1
Sanjivani College of Engineering, Kopargaon
Department of MBA
www.sanjivanimba.org.in

2. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Applied ethics, also called practical ethics, is the application of
ethics to real-world problems. Practical ethics attempts to
answer the question of how people should act in specific
situations. For example, is it ethical for a business owner to bluff
during negotiations with another company?
Values and Business Ethics at Applied ethics

3. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Meaning, Characteristics of Business Ethics, Importance of
Business Ethics (Long Term growth, Cost reduction, Risk
mitigation, Limited resources, etc.)
• Business ethics is the study of appropriate business policies
and practices regarding potentially controversial subjects
including corporate governance, insider trading, bribery,
discrimination, corporate social responsibility, and fiduciary
responsibilities.
Values and Business Ethics at Applied ethics

4. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Transactional Ethics: Man is a social animal. He has to act and
react with others through different transactions. The practices
of ethics in all these transactions is called as transactional
ethics.
• Example: I need vegetables from vegetable vendor. The vendor wants
customer like me for survival, as we both are dependent on each other, as
long as both of us contribute appropriately, together we generate surplus
that none of us on our own are able to produce. In order to let things run
smoothly, again adherence to two specific moral principles is required:
• Principle of honesty
• Principle of reciprocity
Types of Business Ethics (Transactional Ethics, Participatory
Ethics, Recognition Ethics),

5. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Participatory Ethics: Participatory ethics is a privileged part of
business ethics. Parties cooperate in order to produce more
distant common good that has three characteristic features:
• The good can only be realized through the participation of all
parties.
• Participation cannot be enforced into explicit moral obligation to
take part in the project.
• Principle of decency where a real opportunity to contribute to
the general welfare presents itself and no insurmountable
obstacle arise
Types of Business Ethics (Transactional Ethics, Participatory
Ethics, Recognition Ethics),

6. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Participatory Ethics: parties in the alliance voluntarily,
committing themselves to a self-imposed and non-enforceable
obligation
• Guided by by two particular moral principles:
• Principle of decency
• Principle of enunciation (to make a definite or systematic
statement of)
• Example: co-creation, CSR, Corporate Citizenship etc.
Types of Business Ethics (Transactional Ethics, Participatory
Ethics, Recognition Ethics),

7. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Recognition Ethics: As human beings, people are endowed with
the ability to understand the problems of others. This quality
leads to the recognition of individuals, institutions and societies.
Conflicting situations can be solved by the correct recognition of
the situation.
• Ex: Intervention in to problem area, support or help to junior,
colleague etc.
• Discussion: What should be the retirement age for Government
and Private Employees?
Types of Business Ethics (Transactional Ethics, Participatory
Ethics, Recognition Ethics),

8. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Personal Code of Ethics
• Legislation
• Leadership
• Government Rules and Regulations
• Ethical Code of the Company
• Social Pressures
• Ethical Climate of the Industry
Factors Influencing Business Ethics

9. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Personal Ethics refers to a person’s personal morals and code of
conduct. From the very beginning of a person’s understanding,
these ethics are being instilled in the individual by their parents,
family and friends.
• The person with good personal ethics will automatically show
his moral and virtues while talking to his friends, relatives and
elderly people. A person’s personal ethics are revealed in an
exceedingly professional situation through his behavior.
Categories of Ethics (Personal, Professional, Managerial)

10. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• 2. Professional Ethics:
• Professional ethics refers to a person’s values and principles that
are introduced to an individual in a professional organization.
• Each employee in the organization has to follow these rules and
they do not have any choice. These ethics are very important to
import in the professional world as it helps in bring the sense of
disciple into the person’s life and maintain the decorum of the
organization. As an example, transparency, confidentiality,
fairness etc fall under the terms of professional ethics.
Categories of Ethics (Personal, Professional, Managerial)

11. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Some of the common morals that should be part of personal as
well as professional ethics are:
• Transparency
• Accountability
• Fairness
• Kindness
• Commitment
• Sustainability
• Least Harm
• Punctuality
Categories of Ethics (Personal, Professional, Managerial)

12. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
Categories of Ethics (Personal, Professional, Managerial)

13. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Managerial Ethics Managerial ethics is a basic part of business
ethics. It is the set of moral principles or beliefs that affect the
behavior of employees. While most people automatically
assume that ethics directly correlates to laws, this isn't always
the case. Doing the right thing for employees and customers
and demonstrating the willingness to go the extra mile also falls
under managerial ethics.
• two primary types: those that pertain to legal issues and those
that pertain to moral issues.
Categories of Ethics (Personal, Professional, Managerial)

14. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
Value-Based Code

15. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• A compliance-based code of ethics requires that employees
follow the rules and regulations set forth by the state and the
industry you're in.
• Banking: KYC
• Healthcare-Doctor: Patient Confidentiality
• Failure to follow compliance-based code of business conduct
rules often results in legal action, on top of in-house
disciplinary action.
Compliance-Based Code

16. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• Create this document, and include it as part of your employee
handbook. Review the code of business conduct with
employees at least once a year. Make adjustments, as values or
compliance regulations change.
• Start the code of business conduct with four brief statements.
The first is the company vision statement, which should be in
your business plan. Write a statement about the guiding
principles for the company. Then write a statement about the
core company values.
• Complete this first section with the company mission
statement, again pulled from your business plan.
Creating Your Code of Business Conduct

17. Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
www.sanjivanimba.org.in
Dept. of MBA, Sanjivani COE, Kopargaon
• trust and respect among co-workers
• seen by the public
• specific regulations and compliance issues
Importance of the Code of Business Conduct

18. Dept. of MBA, Sanjivani COE, Kopargaon
Thank You