Ethical Performance CultureRelevance of Indian Ethos

Dr. Harry CD

CHRO -Ascend Telecom

Institute of

Directors – London

Convention

October 25, 2017

“There is no such thing as business ethics; there’s

just ethics. And ethics makes no concessions for the

real or imagined necessities of making a profit”.

-Michael Josephson

Ethics is all about !

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Can we ask ourselves a few questions ……

• What is our Ethics Quotient (EQ) ?

• Do we have an ethics committee ?

• When did we last conduct an ethics audit ?

• How do we measure ethical performance ?

• What are our principles of ethical performance management ?

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Warren Buffet’s rule of thumb for ethical conduct

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• “…I want employees to ask themselves (when they are in doubt about whether a particular conduct is ethical or not) whether they are willing to have any contemplated act appear the next day on the front page of their local paper –to be read by their spouses, children and friends – with the reporting done by an informed and critical reporter.” [Berkshire Hathaway’s code of ethics]

Ethical culture in workplace

An organization’s nerve center is its performance and the backbone is its ethical

culture

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• Employees in higher integrity cultures are 67% less likely to observe significant

instances of business misconduct

• Managers that exhibit corporate values can improve employees’ performance by 22%

• Ethical companies receive widespread public attention and secure the trust of

customers and suppliers.

• A strong culture of integrity correlates positively with long-term total shareholder

return; there are fewer lawsuits, fines, and penalties.

Advantages of an Ethical Culture

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Companies perceived by their employees as

being honest are more profitable

Ethical climates in organizations provide a

platform for

Efficiency

Productivity

Profitability

Ethics Contribute to Investor Loyalty Ethics Contribute to Customer Satisfaction

Consumers respond positively to socially concerned

businesses

Being good can be profitable

Customer satisfaction dictates business success

A strong organizational ethical climate places

customers’ interests first

Ethics Contribute to Profits Corporate concern for ethical planning is being integrated with strategic planning

Maximizes profitability

Corporate citizenship is positively associated with

Return on investment and assets

Sales growth

Consequences of Ethics Failure

Financial Loss Lost Opportunity

Image / Credibility Loss Loss of trust of stake

holders

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Ethical Performance Management

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• Employees are driven by core values of the Organization

• Promotes fairness and justice in order to avoid ethical dilemmas

• Recognizes individuals for assuming responsibility for action

• Operationalizes ethical culture

Ethical Performance Principles

3 Models of Management Ethics

1. Moral Management—Conforms to high standards of ethical behavior.

2. Immoral Management—A style devoid of ethical principles and active opposition to what is ethical.

3. Amoral Management—• Intentional - does not consider ethical factors

• Unintentional - casual or careless about ethical considerations in business

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Relevance of Indian Ethos in Management

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• It means application of principles of management

revealed in our ancient wisdom as described in

Upanishads and Bhagwad Gita.

Decent Work = Decent LifePurpose of Indian Ethos

• Development of Ethical Management

• Ensure all round development of Employees

• Enhance Productivity of Human beings

SWAMI VIVEKANAND VIEWS ON ETHICS

• THE BASIS OF INDIAN SUBJECTIVITY LIES IN THE BELIEF OF GOD.

• HE SUGGESTED THE FUNDAMENTAL LAW OF ETHICS “DON’T INJURE OTHERS, LOVE EVERYONE AS YOUR OWNSELF, UNIVERSE IS ONE”

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Bhagavad Gita and Ethical Work Culture

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Sri Krishna elaborates on two types of work culture “Daivi Sampat” or Divine work culture and “ Asuri

Sampat” or demonic work culture .

Daivi Sampat- Divine work culture Asuri Sampat- Demonic work culture

Involves fearlessness, self-control, straight Involves egoism, delusion, personal desires,

forwardness, modesty, gentleness and improper performance, work not oriented

absence of - fault finding, greed,envy, pride. towards service.

What is needed is a work ethic conditioned by ethics in work.

Management Guidelines from Bhagavat Gita

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There is an Important distinction between effectiveness and efficiency in managing.

•Effectiveness is doing the right things.

•Efficiency is doing things right.

Values and Ethical Lessons from Mahabharata

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Ethical Approaches Mahabharata Incidences

Utilitarian The whole moral of Mahabharata states “Victory of good

over evil” against which heavy cost was paid in the form

of loss of great lives.

Rights and Duties The famous quote by Krishna” Ma Faleshu kadachana”

(Do your duty and do not think about its rewards).

Justice and fairness The intent of Lord Krishna was to defeat the forces of

evil and establish the rule of law or “ Dharma” where

the righteous would not only defend themselves but also

triumph over evil.

Virtue

Common Good

Earthly achievements, such as wealth and power, mean

nothing without a strong moral campus to guide you.

Concept of “Bahujan Hitaya Bahujan Sukhaya”, has

remained the touch stone of decision making in righteous

public policy in India since the times of the

Mahabharata.

Values and Ethical Lessons from Mahabharata

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Principles of Ethics Mahabharata IncidencesValues The head of the school, Dronacharya, begins teaching his pupils how to

behave responsibly in the face of temptation and controlling the urge to

exploit others.

Only when his students pass the test Dronacharya educated them in the

art of war

Transperancy Drona too indirectly gave away his secret, by saying he was invulnerable

as long as he held a weapon.

Respectfulness Draupadi’s chirharan in front of whole assembly where Krishna protected

her dignity

Legality Krishna in his Gita, justified to Arjuna that fighting the war was legal and

part of his duty as a kshatriya

Commitment Bheesma did not fight a warrior like Shikhandi because of his personal

commitment

Ethics are important not only in business but in all aspects of life because it is an essential part of the foundation on which a civilized society is build.

A business or society that lacks ethical principles is bound to fail sooner or later.

CONCLUSION

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Thank You