Class Agenda

Course StructureCase Discussion

What Ethics is about

Class-1:16/6/2010 2009-2011 Batch

Ethics in Business

PGDM2009-2011

Prof. Vinay AuluckJune 2010- September2010

Do I have better understanding of answers to following questions based on what happened in

the first class ?

• Why and when dilemma’s occur ?•  Why management careers face maximum

dilemmas ?•  What enhances managers ability to do work ? •  How does one choose direction in life ? •  What is ethics ? Definitions of its key

terminologies ? •   Meaning of values ? Different types of values ?

How value conflicts could be resolved ?

I experience

• Hesitation?• Tension?• Anxiety?• Uncertainty?• Lack Confidence• Uneasiness?• Fears?• Apprehensions• Dilemma

What Action I should take and why ?

Dilemma’s lack of Knowledge & non assuming of responsibility

of consequences of Action• Once you are aware of what

will be the consequences of an action

• and you have a choice of various options of either taking an action or not taking an action , the dilemma’s occur because of your not being sure whether you wish to be responsible as well as accountable for the consequences of actions

• What is right Choice?

• Feeling of discomfort at the thought of being responsible and accountable

• What is responsibility & accountability

Why was Arjun so much anguished?

Which is the best way not to make any mistake at all ?

• Do not do any thing at all ?

• How will then any results will come ?

• One therefore has take an action,see results, compare with what is required and plan corrective actions .

Ethics,Responsibility,Accountability,Due Process

• Ethics:Principles of right and wrong that can be used by the Individuals acting as free moral agents to make choices to guide their behavior.

• Responsibilities means that accepting the potential costs,duties and obligations for the decisions one makes

• Accountability means mechanisms which are in place to determine who took responsible actions, who is responsible?

• Liability: The existence of laws that permit individuals to recover the damages done by other actors,systems, organizations

Due process is the mechanisms to ensure that the laws are well known and well understood and there is an ability to appeal to higher authorities to ensure that the laws are applied correctly.

What Powers / Drives Work related behavior ?

• Intellect– knowledge ? – Faculty to

discriminate right / wrong

– Strength, Courage, will power

• Values• - personal• -professional• -societal

• Passion

Ethics•Values plus•What is

right? •What is

wrong ?

• Knowledge• What out to be?

How do we acquire

Values • Knowledge

Process of Bringing up ? Learning

3- Indian values• Satyam-Truth-Ethics• Shivam-Welfare-Economics• Sunderam-Beauty-Aesthetics

If we do not perceive,feel and value beauty it may ultimately lead to bad behavior

Reality !Different Routes to Understanding !

• Scientists

• Artists

• Rishi’s

Wisdom Equation

Knowledge Action Reflection Wisdom

Wisdom = R + I

Wisdom = Reason + Intuition

World View’s

• Transactional

• Transformational

• Transcendental

What is reality ! Is life a reality or dream ?

• http://www.youtube.com/watch?v=ZylIvz_IsyQ

Modes of Thinking Characteristics

Modes of Thinking

Dominant instinct

Driving Force

Power Acquisition Controlling instinct / Killing instinct

Power

Calculative & Acquisitive

Accumulative instinct Money

Knowledge Acquisition

Inquisitive Instinct Intellectualism

Liberation from oppression

Survival Instinct Change

Concern for others Helping Instinct Empathy

Difference Between Man/Animal

• Animal- Basic existence• Human- Sensory gratification/

express feelings /assert/learn/ knowledge/relationships/ community/comfort /quality

• Higher purposes ,selflessness , Creative/ innovative/ Selfless Pursuits- Are Divine Qualities

Business ethics

•BE= IE x OE x ME• Market Ethics : Nature of competition /

Limitations of free markets / Code of conduct

How to attempt a Case

Discussion on Beating the systems case

How to attempt a case ?• 1 What the case is about?• 2 Who are the players and actors?• 3 What is the story/event?• 4 What are symptoms /problems /

issues?• 5What action is either taken or needs

to be taken?

How to attempt a case ?• 6 Who ? has What ? problem and

Why? ;and Who ?should do When ? How and Why ? Can he do it ? Will it help in immediate ?Short ?Medium ? Long term?

• 7 To make use of data/extract information /review knowledge base /Do we have gaps? If so what are they?

Comments Case :Beating the System

• 1 The case describes a situation requiring choice among different options.

• 2 Even though 0nly 6 out of 200 students indulged in such non –conforming behavior ,there will be far reaching and wider implications of decision such as credibility of school’s administration among other students , parents , teachers, recruiters , new admissions , rating agencies , universities , legal entities ,courts etc will impact various entities in various ways

What to do with 6 Students Caught Copying ( 1,2,3,4,5,6) deviant behavior

• A B C• 1 2 3• 4 1 1• 5 5• 6• Approaches• A Total trust- wanted all 6 to be dismissed• B Normally fair /sometimes unfair only 2 to be

dismissed• C All should be let off with warning

Issues • 1 Purpose of education system and

within this objectives of various components like attendance /internal assignments

• 2 Code of conduct for various players in education systems.

• 3 On what reputation for quality ,placement prospects will depend

Issues• 4 Should announced rules be

implemented ?Why have rules if not to be implemented?

• 5 What should be purpose / the nature of punishment ?

• 6 What exactly are conflict issues and what would be the criterion for decision.Balancing short tem / Vs long Term decisions

Corruption !• What is it ? • Is it Good or Bad ? • What is India’s record in this area ? • What should be done about it ?

- Adopt it officially as national culture ?Should have a dishonesty policy through standardization Or

- Govt. Should do something about it ? Or- Task of everybody or only to be preached to others ? Or- What should be done at individual as well as personal levels

• Copying is it similar or different ?

Honesty: Best Or Bust Policy? 

• Honesty finally wins for it’s the most expedient course of action

• For Society to survive , the principle of dishonesty have to be standardized

Values ?

What are they ?

D-( descriptive );N (Normative ) ;A (analytical ): DNA -Of-Ethics

6 Bundles of 30 Values-Pages36-41 of EC &RC

• Basic Values-16• Rights as Values-3• Institutional Values- 6• Formulae for testing rightness-2• Description of method of self discipline-1• Methods to correct biases and imbalances-2

Classification of Values

• End results /Goals• Acceptance Criterion• Required to be optimized• In nature of right of beneficiaries• Norms and means for ethical

implementation• Duties

Value Classification• Criterion for accepting values• Values which are to be optimized• Values in nature of rights of

beneficiaries• Norms & means for

institutionalizing ethical implementation

Criterion for accepting values

•Test of universality•Test of the greatest good for the greatest number

Norms & Means for institutionalizing ethical implementation

• Distributive justice• Democratic discourse• Market system• Respect for processes of social adaptation• respect for law• respect for professional codes• ensuring organizations as vehicles for

ethical synergy• Respect for rituals and symbols

Values in nature of rights of beneficiaries

• Right to privacy• Right to individual choice• Right to minimum standard of

life

Values which are to be optimized

• Controlled Greed• Pursuit of pleasure• Truth• Transparency &

Honesty• Compassion

&honesty

• Gratitude and respectfulness

• Trust /Co-operation• Harmony with self,

society and nature