Study Meterials IME

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DJ/IME/2013-2014 Introduction Ethics Ethics is the moral principles that govern a person's behaviour or the conducting of an activity. Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending and recommending concepts of right and wrong conduct. [1] The term comes from the Greek word ethos, which means "character" and from latin word mores which means customs. In philosophy ethics defines what is good for individual and for society and establish the nature of duties that people owe themselves and one another. Ethics seeks to resolve questions dealing with human morality—concepts such as good and evil, right and wrong, virtue and vice, justice and crime. What is Ethics? Ethics is the branch of study dealing with what is the proper course of action for man. It answers the question, "What do I do?" It is the study of right and wrong in human endeavors. At a more fundamental level, it is the method by which we categorize our values and pursue them. Do we pursue our own happiness, or do we sacrifice ourselves to a greater cause? Is that foundation of ethics based on the Bible, or on the very nature of man himself, or neither? 1

Transcript of Study Meterials IME

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DJ/IME/2013-2014

Introduction

EthicsEthics is the moral principles that govern a person's behaviour or the

conducting of an activity.

Ethics, also known as moral philosophy, is a branch of philosophy that

involves systematizing, defending and recommending concepts of right and

wrong conduct.[1] The term comes from the Greek word ethos, which means

"character" and from latin word mores which means customs. In philosophy

ethics defines what is good for individual and for society and establish the

nature of duties that people owe themselves and one another.

Ethics seeks to resolve questions dealing with human morality—concepts

such as good and evil, right and wrong, virtue and vice, justice and crime.

What is Ethics?

Ethics is the branch of study dealing with what is the proper course of action

for man. It answers the question, "What do I do?" It is the study of right and

wrong in human endeavors. At a more fundamental level, it is the method by

which we categorize our values and pursue them. Do we pursue our own

happiness, or do we sacrifice ourselves to a greater cause? Is that foundation

of ethics based on the Bible, or on the very nature of man himself, or neither?

Why is Ethics important?

Ethics is a requirement for human life. It is our means of deciding a course of

action. Without it, our actions would be random and aimless. There would be

no way to work towards a goal because there would be no way to pick

between a limitless number of goals. Even with an ethical standard, we may

be unable to pursue our goals with the possibility of success. To the degree

which a rational ethical standard is taken, we are able to correctly organize

our goals and actions to accomplish our most important values. Any flaw in

our ethics will reduce our ability to be successful in our endeavors.

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What are the key elements of a proper Ethics?

A proper foundation of ethics requires a standard of value to which all goals

and actions can be compared to. This standard is our own lives, and the

happiness which makes them livable. This is our ultimate standard of value,

the goal in which an ethical man must always aim. It is arrived at by an

examination of man's nature, and recognizing his peculiar needs. A system of

ethics must further consist of not only emergency situations, but the day to

day choices we make constantly. It must include our relations to others, and

recognize their importance not only to our physical survival, but to our well-

being and happiness. It must recognize that our lives are an end in

themselves, and that sacrifice is not only not necessary, but destructive.

Business ethics

Business ethics (also corporate ethics) is a form of applied

ethics or professional ethics that examines ethical principles and moral or

ethical problems that arise in a business environment. It applies to all aspects

of business conduct and is relevant to the conduct of individuals and entire

organizations.

Business ethics has both normative and descriptive dimensions. As a

corporate practice and a career specialization, the field is primarily normative.

Academics attempting to understand business behavior employ descriptive

methods. The range and quantity of business ethical issues reflects the

interaction of profit-maximizing behavior with non-economic concerns. Interest

in business ethics accelerated dramatically during the 1980s and 1990s, both

within major corporations and within academia.

For example, today most major corporations promote their commitment to

non-economic values under headings such as ethics codes and social

responsibility charters. Adam Smith said, "People of the same trade seldom

meet together, even for merriment and diversion, but the conversation ends in

a conspiracy against the public, or in some contrivance to raise

prices." Governments use laws and regulations to point business behavior in

what they perceive to be beneficial directions. Ethics implicitly regulates areas

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and details of behavior that lie beyond governmental control. The emergence

of large corporations with limited relationships and sensitivity to the

communities in which they operate accelerated the development of formal

ethics regimes.

Ethical issues

Ethical issues include the rights and duties between a company and

its employees, suppliers, customers and neighbors, its fiduciary responsibility

to its shareholders. Issues concerning relations between different companies

include hostile take-overs and industrial espionage. Related issues

include corporate governance; corporate social entrepreneurship; political

contributions; legal issues such as the ethical debate over introducing a crime

of corporate manslaughter; and the marketing of corporations' ethics

policies. According to IBE/ Ipsos MORI research published in late 2012, the

three major areas of public concern regarding business ethics in Britain are

executive pay, corporate tax avoidance and bribery and corruption.

Importance of ethics

It is now recognized that it is good business to be ethical. An ethical image for

a company can build goodwill and loyalty among customers and clients

1. Ethical motivation :It protects or improves reputation of the organization by creating an efficient

and productive work environment. At a time of mass corporate

downsizing, one of the most effective ways to appeal to the fragile loyalty

of insecure employees is to promote an ethical culture, which gives employees a

greater sense of control and appreciation.

2. Balance the needs and wishes of stakeholders :There is pressure on business to recognize its responsibilities to society.

Business ethics requires businesses to think about the impact of its decisions

on people or stakeholders who are directly or indirectly affected by those

decisions. Companies build their image by acting in accordance with their

values, whatever they might be. Creating a positive public image comes from

demonstrating appropriate values. Publicizing and following a company’s

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values allows stake holders to understand what the company stands for, that

it takes its conduct as an organization seriously.

3. Global challenges :Business must become aware of the ethical diversity of this world because of

increasing globalization of the economy. It must learn the values of other

cultures, how to apply them to its decisions, and how to combine them with its

own values. In a world where transnational corporations and their affiliates

account for two-thirds of the world’s trade in goods, and employ 73 million

people, corporations cannot afford to ignore the reality of multicultural ethics.

4. Ethical pay-off: They serve to protect the organization from significant risks, and to some

degree help grow the business risks such as breaches of law, regulations or

company standards, and damage to reputation were perceived to be

significantly reduced.

5. Employee Retention :One of the major costs in business is inappropriate turnover. The loss of

valuable experience and development of new personnel is a cost companies

can control. What would a company give to retain valuable employees? With

a successful program, the employees work with managers and supervisors in

making decisions based on the company’s values. A successful Business

Ethics program establishes a culture that rewards making the right decision.

6. Prevention and Reduction of Criminal Penalties :The United States Sentencing Commission Guidelines state that to receive a

40% reduction in federal penalties, a company must have “an effective

program to detect and prevent violations of the law”. Executives cannot

always be aware of everything done in a company’s name. Jeffrey Kaplan in

his article The Sentencing Guidelines: The First Ten Years points out that

recent cases also show that prosecutors are electing not to pursue some

actions because the companies in question have sound programs in place.

This is a tremendous asset to companies under regulatory scrutiny.

7. Preventing civil lawsuits

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Many times employees that experience issues in the workplace first try to

resolve these issues internally. If their complaints are ignored, employees feel

compelled to go to an outside advocate. That could be a private attorney,

government regulator or news agency. Giving employees an internal outlet can

solve problems without the event becoming public knowledge or an issue for

the courts. Having the values permeate the company culture enhances the

staff’s trust in senior management. With an effective program, the staff

recognizes that management also operates within these appropriate values.

8. Market Leadership When a company fully integrates its values into its culture, quality rises

due to the employee’s focus on values. Customers see that the

employees care about the customer’s concerns. Employees reflect

appropriate values in their attitude and conduct. Roy Koerner in his article

Want More Profit? Try Ethical Business Practices points out that businesses

demonstrating the highest ethical standards are also the most profitable

and successful.

General informationOrganizations and Ethics As in other social entities, ethics are inevitable in organizations. Research

has already shown that ethics do pay. Since unethical practices cost

industries billions of dollars a year and damage the images of corporations,

emphasis on ethical behavior in organizations has increased over the recent

years. Societal expectations, and pressures from legal and professional

bodies have forced organizations to be more concerned about their social

responsibilities and ethical practices. In the mid-1990’s Shell faced one of its

worst public relations nightmare due to its unethical business practices in

Nigeria. In1997 the Financial Times in its annual survey of Europe’s most

respected companies identified Shell’s ethical problems as the key reason for

the company’s dramatic drop in rankings. Shell turned upside down in the

aftermath of these unfavourable experiences and thus started correcting itself

for sustainable growth. Like Shell, many other organizations whose business

practices are perceived to be unethical and their products are considered to be

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harmful to the consumers (e.g. cigarettes) face strong social condemn. In

recent corporate history, the Enron and Arthur Anderson episodes, stress the

importance of ethical practices in business. Ethical problems are problems of

choice. Ethical problems arise not because of people’s tendency to do evil,

but because of the conflicting nature of standards and interests, which are

valid in themselves. Problems in ethical decision-making and behavior occurs

only when individual interests and social norms conflict with each other. Every

organization has its own accountability towards its stakeholders – employees,

capital investors, consumers, government, competitors, suppliers, and

other community

Benefits of Ethics

If the company does adopt an ethical approach, it may have a number

of benefits including:

Improved motivation among employees - many employees will be more

committed if they can see an ethical approach adopted by the company

Reduced labour turnover - improved motivation is also likely to result in

improvements in the recruitment and retention of staff ,who will be

more loyal to an ethical company

Improved customer perception - consumers will often react positively to

a more ethical approach and this may be used (as it is by many Fair

Trade companies) as a unique selling point for the business. It also

helps provide the brand with a more positive association, which should

enhance brand value.

A growing number of investors do not want to invest in companies which

pollute or damage the environment, deal in the arms trade, or support

oppressive regimes. Many also don't want to support tobacco companies or

those that profit from gambling, pornography or the production of alcohol.

More recently people have begun to express concern about general business

ethics and how companies conduct their day-to-day business practices.

These are no longer minority interests.

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As a consequence there are a growing number of companies that specialise

in ethical investments. They promise to examine the ethical credentials before

they invest their clients' funds. One such firm is F&C, which lays out its

investment criteria in its guide to ethical investing.

However, an ethical approach to business operations may have a number

of potential problems. These may include:

Higher costs - using ethically sourced raw materials, or producing in a

way that is more ethical, is likely to raise costs. If the company is able

to use the ethical considerations to develop the brand, then this may

not be a problem, but if they are in a highly price competitive market

then it may be more of an issue.

Problems with suppliers - suppliers may not hold the same ethical

views as the firm and this may lead to possible conflicts. It may also

make sourcing supplies more problematical.

Lower profit - if the higher costs cannot be passed on to the consumer,

then this is likely to lead to lower profitability for the firm.

Stakeholder conflict - not all stakeholders will be keen on an ethical

approach if it compromises their objectives. For example, some

investors may withdraw if they feel that the ethical stance of the

company is affecting its long-term viability or profitability.

Remember that ethics may be a subjective concept, varying from country to

country and culture to culture and, of course, from individual to individual.

Even within a single firm there will be a huge range of opinions about what is

right and what is wrong. The only difference though between a business and

everyday life, is that employees should know a little about the firms values

before they join, and to some extent are signing up to these.

Ethics also covers different areas than that covered by the law. It is possible

for a business to act legally, but in a manner that many would consider

unethical. Selling cigarettes or weapons, for instance, fits into this category.

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What do you mean by situation ethics and pragmatism?

An approach that evaluates theories or beliefs in terms of the success of their

practical application.

Pragmatism is a philosophical tradition that began in the United States around

1870.[1] Pragmatism is a rejection of the idea that the function of thought is to

describe, represent, or mirror reality. Instead, pragmatists develop their

philosophy around the idea that the function of thought is as an instrument or

tool for prediction, action, and problem solving. Pragmatists contend that most

philosophical topics—such as the nature of knowledge, language, concepts,

meaning, belief, and science—are all best viewed in terms of their practical

uses and successes rather than in terms of representative accuracy.

What is ethical dilemma?

An ethical dilemma is a complex situation that often involves an apparent

mental conflict between moral imperatives, in which to obey one would result

in transgressing another. This is also called an ethical paradox since in moral

philosophy, paradox often plays a central role in ethics debates. Ethical

dilemmas are often cited in an attempt to refute an ethical system or moral

code, as well as the worldview that encompasses or grows from it.

Chapter 3Topics

Value oriented Holistic Management

Importance of character

Values

Wholeness

Goodness

Courage

Self discipline

Living by inner truth

Dharma of organisation/ Management

Value driven Management

Exploitation of nature

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Man machine equation

Indian culture and wisdom

Ethical/ Spiritual Values

Management effectiveness based on values

Need for value based holism in management in India

Ever changing world.

Our future

What is holistic management ?Increasingly people are coming to understand that management needs to be

holistic, meaning management needs to embrace social, environmental and

economic complexity and cannot be reductionist, or directed to limited

objectives or aims without producing unintended consequences.

Currently everything we “make” using some form of technology is generally

successful and increasingly so if we measure success only by achievement of

the objective. However, globally we are experiencing cumulative unintended

consequences to society, environment and economies – some beneficial

some damaging. Everything we “manage” from the global economy to

agriculture, natural resources, forests, oceans, fisheries, etc. are seen, if we

look at them honestly, to be running into problems culminating in agriculture

producing far more eroding soil than food, global desertification, biodiversity

loss and climate change.

Holistic Management involves using a “holistic framework”  I developed

working with many scientists, wildlife biologists, ecologists and pastoralists

over half a century. Using the holistic framework people manage culture/social

aspects, the environment and economy together not as isolated aspects as

we have traditionally done. This results in management decisions that are

socially, environmentally and economically sound for them in their situation

both short and long term. This can be done from a family in a city not dealing

with land, to a national or international level in any management situation,

policy or development project and of course by people on the land managing

crops, livestock, forests, etc.

When managing any situation holistically all objectives of management (policy

or development projects) are aligned with what is called a “holistic context”

defined by the people in that specific situation. The people’s holistic context

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defines how those people want their lives to be, based on their culture and

values, what they need to produce from their resource base to live such lives

and what the environment supporting them needs to function like centuries

from now for their descendants to be still living such lives. This holistic context

is needed for management objectives, goals, policies, etc because all

objectives and goals need a clear context to be fully achievable and not lead

to unintended consequences.

In conventional management and government policies actions always have an

objective as they should, however why management runs into problems so

commonly is because the context for our actions or goals is that we “need” or

“desire” something or we are “addressing a problem.” While such contexts

serve us well with everything that we “make” using technology in some form,

these are not realistic contexts for objectives and goals in management

situations. The reason for this is because management always involves

complexity – social, environmental and economic. Given a holistic context in

any situation we find that our objectives and goals become much more likely

to be achieved without unintended consequences.

When using the holistic framework, especially when dealing with nature, we

automatically assume our actions are wrong and in that manner determine

what to monitor to detect as rapidly as possible anything going adrift to correct

it. This leads to holistic management being proactive, producing the desired

results rather than reactive or adaptive management as management has

tended to be for centuries. Such proactive management is proving

encouragingly successful wherever practiced.

It is profoundly simple but not easy. Not easy purely because it is a new way

of thinking for us, and changing our paradigms does not come easily. Where

the management of land involves livestock needed to sustain people, or

where there is no other possibility than using livestock to reverse land

degradation, restore river flow, springs or underground water or loss of wildlife

habitat the same holistic framework and process is used with holistic planned

grazing as the planning process to address that complexity involved

What is a value?

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Values

Values are that which we seek to achieve or maintain according to our life as

the standard of evaluation. Values are the motive power behind purposeful

action. They are the ends to which we act. Without them, life would be

impossible. Life requires self-generated action to sustain itself. Without

values, one could not act, and death would follow.

Value specifies a relationship between a person and a goal. A value requires

a valuer--a particular person who aims to achieve or maintain something. An

object cannot have value in itself. Value is relational, and so requires a person

and a goal. The goal to which one aims is called the "value", but the

relationship is always required. This means an object cannot be a value in

itself. It only gains the title of value when a person acts to achieve or maintain

it.

Values are essential to ethics. Ethics is concerned with human actions, and

the choice of those actions. Ethics evaluates those actions, and the values

that underlies them. It determines which values should be pursued, and which

shouldn't. Ethics is a code of values.

Spiritual values A spiritual value can be defined as a moral value, (whether secular or

religious in nature). In most instances the term "spiritual value" is used in

reference to religious values that emanate from a divine source, (God).

Religious, spiritual values are a result of being spiritually connected to God

and through that relationship, His spiritual influence upon us is what defines

our spiritual values as we are in submission to Him. From this spiritual union,

spiritual values express who we are as a person, (our spiritual essence), not

just what we believe. 

The term "spiritual values", in the secular context, is simply moral values that

have been instilled or developed in the individual person, (not connected with

a religious ideology or God). It is an inner moral conviction that expresses

who the person is and how they conduct themselves. Moral values are

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certainly not limited to religious persons. There are exceptional, moral people

that do not have a relationship with God. 

Both religious and non-religious persons can obviously share some spiritual

(moral) beliefs. The overwhelming majority of the population, secular and

religious, believe that stealing, bearing false witness, (lying), and killing is

wrong. Those are moral (spiritual) values. A person's spirituality is generally

expressed through their personality, (although not always consistently).

Attributes such as honesty, selflessness, gentleness, humility, sincerity,

patience, thankfulness, consideration for others and the ability to sympathize

or empathize with others are a result of spiritual values. 

The moral or spiritual values of any two people are rarely identical. There will

be a natural variation due to the person's life experiences, intelligence, and

personality. Spiritual values define us as a human being and are an

expression of our inner self. Society would be in utter chaos without spiritual

and/or moral values.

Spiritual values are human valuesThe values of truth, righteousness, peace, love and non-violence are found in

all major spiritual paths. These spiritual values are also human values and are

the fundamental roots of a healthy, vibrant, and viable work career.

Courage

Courage is the ability to act in the face of danger and uncertainty. Although it

is more of an emotion or state of mind, it is an important part of one's life. This

is because the future is always uncertain. We can acquire understanding of

the world, but there are too many factors to accurately predict the future. Or

more importantly, to be certain that our prediction will come to pass. This is

because we can make predictions that end up being accurate (even guessing

works sometimes), but we have no means of knowing whether it will really

occur.

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Even danger is constantly present. There is no completely reliable way of

avoiding danger. We can lessen the risk in many respects, but we cannot

avoid it entirely. Even staying in our homes constantly does not remove risk.

Nor would we want to. Life is not just about avoiding death. It is about

achieving values and happiness. Courage must overcome both the fear of

danger and uncertainty. They must be pushed aside in order to get on with

the business of living. Living with courage, in this respect, is virtuous.

Self Discipline

It is the ability to control one's feelings and overcome one's weaknesses.Self-

discipline can be defined as the ability to motivate oneself in spite of a

negative emotional state. Qualities associated with self-discipline

include willpower, hard work, and persistence.

Self-discipline is the product of persisted willpower. Whereas willpower is the

strength and ability to carryout a certain task, self-discipline is the ability to

use it routinely and even automatically (as if through reflex). An analogy for

the relationship between the two might be defined as follows: Where willpower

is the muscle, self-discipline is the structured thought that controls that

muscle. In most cultures, it has been noted that self-discipline is the ultimate

path towards success

Values and WorkThe values of truth, righteousness, peace, love and non-violence are found in

all major spiritual paths. These spiritual values are also human values and are

the fundamental roots of a healthy, vibrant, and viable work career.

 

Our collective business experience showed us that these five human values

were the fundamental roots of a healthy, vibrant, viable organisation – and of

healthy, vibrant, viable individuals. For example:

 

Truth fosters trust and honest communications.

Righteousness fosters high quality work. 

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Peace fosters creative and wise decisions.

Love fosters self-less service based on caring for others' well being.

Non-violence fosters win-win collaboration.

 

Yet we have chosen to call them human values rather than spiritual values.

“Spiritual values” implies that they are something that human beings need to

aspire to and hopefully someday achieve. We are well aware that most people

see human nature as anything but spiritual – they typically see it as limited,

imperfect, and so on. However, we know that we are spiritual beings first and

foremost and that “to be human is to be spiritual.” So, by calling these spiritual

values “human values,” it reminds us that they are inherent in our spiritual

nature.

 

We emphasise three principles:

 

1. These human values do not need to be taught or learned; rather, they must

be evoked or unveiled, sometimes by unlearning the ways we keep them

hidden.

2. These human values represent humanity at its fullest.

3. These human values can be understood from three perspectives:

 

o Their spiritual essence, based on the principle that Divinity resides in all of

creation.

o Their cross-cultural expressions, which we find in all societies though there

may be variations and different emphasis from culture to culture.

o Their individual (personal) expressions, which reflect the attitudes and

motivations beneath our unique personalities and behaviour.

 

While the spiritual essence of the human values is inherent within us, the

cross-cultural and individual expressions are learned, developed and

practised throughout our lifetime in the social environments we live and work

in. By exploring the cross-cultural and individual expressions of these five

human values, we can bring them forth in our everyday life and work.

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One point we found quite interesting is that since these human values come

from a common spiritual foundation, they are an indivisible whole; one human

value cannot exist apart from the others. This integrated wholeness of the

human values gives us tremendous strength as we seek to bring them forth in

our work.

 

So, what does each of these human values look like when expressed in the

typical workplace?

 

A professional would tell the truth about errors or delays, even if it meant a

temporary reprimand. 

A clerical person would do his or her best quality work, even if no one were

watching.

An executive would continually strive to find creative new ways to deliver

goods effectively and efficiently, without adding undue costs to his or her

customers. 

A sales person would actively seek to serve people rather than hide behind

bureaucratic rules. 

A manager would seek to keep the environment clean and unpolluted by

wastes from the business.

 

How can we practice all five human values in a practical way? 

1. Truthfulness: speak honestly with co-workers and customers.

2. Righteousness: keep your agreements with your manager and co-workers, as

well as customers.

3. Inner Peace: practice equanimity, even in crises, in times of profit or loss, and

in times of praise or blame.

4. Love: listen generously and compassionately to others rather than being

judgmental.

5. Non-Violence: find win-win solutions to problems, rather than winning at

another’s expense.

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Value Driven ManagementThe original meaning of "leadership" is to go on a journey in the company of

others. Values determine the rightness and the direction of the organisational

vision and the way it conduct itself at all times to serve and achieve its

purpose/mission. Value-driven leadership is based on a very specific notion

that the performance and behaviour of management leaders in the

organisation are guided by the adherence and practice of "leaders and

organisational core values" which would include that of integrity, honesty,

fairness, consistency, accountability, due care, fiduciary duty, professionalism

and ethical practices amongst others. It recognises that an organisation

cannot survive in the long term by not doing the "right and proper thing" and

without the participations of all the stakeholders: employees, customers,

investors, government, local and global communities which are bonded by a

value system. 

What is Value-Driven Leadership/ Management

Value-driven leadership is about realising that the pursuit of profit is one of the

many essentials for sustainable organisation success and growth but not

necessary the only motive. Value-driven leadership combines personal

principles, values and corporate ethics with commercial sustainability

consideration. It acknowledges that it is necessary to create wealth but also

that monetary or commercial wealth creation is not the only necessity for long

term sustainable business. The value in value-driven leadership alludes to the

nature of the relationship between the organisation and others that it does

business or has relationship with. For example, one employee might

experience the valued relationship with an organisation if the organisation

paid a fair wage and gave the employee time off to care for a sick parent or

relative, etc., another employee might perceive the relationship as valuable if

the organisation gave the employee sufficient training and career

development opportunities for them to grow in their personal and career

development, and to rise quickly within the management ranks based on

excellent performance and meritocracy. 

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The leadership in value-driven leadership suggests a connection between

how well an organisation creates value in its relationship - with its

stakeholders and the relative rate of return that the organisation offers its

investors. Organisations battle to create competitively superior value for the

`best' employees, customers, investors and communities. Winning these

battles yields competitively superior returns for investors because the best

and value-empowered people with synergistic collaboration and co-ordination

can generate the most effective and efficient solutions to customer needs and

problems. The end results would be profits generated. And through profit

sharing and stock ownership, employees and investors share in the gains

from these value-solutions. 

Why Value-Driven Leadership/ management?

Values-driven leadership is a must in modern flat organisations characterised

by transparency and easy availability of information. As Steve Jobs, the co-

founder of Apple Computer, asserts, "The only thing that works is

management and leadership by values. Find people who are competent and

really bright, but more importantly, people who care exactly about the same

things you care about." Jim Collins wrote in his best-seller Good to Great that

"Level 5 leaders channel their ego needs away from themselves and into the

larger goal of building a great organisation. It's not that Level 5 leaders have

no ego or self-interest. Indeed they are incredibly ambitious-but their ambition

is first and foremost for the institution, not themselves". Level 5 leaders

preach and practice value-driven leadership which enhances the relationship

between how an organisation behaves relatively to its employees, customers

and communities. 

Implementation of Value-Driven Leadership/ Management

Nestlé for example preaches value-driven leadership and inculcates the

values to its employees as a guide in developing, managing and evaluating all

management staff based on its corporate values emphasizing on high

performance. In airline industry, some customers value cheap fares, on-time

flight departures and arrivals and pleasant people. This is a classic case of

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the success of AirAsia, the leading low fare airline in Asia with their value

tagline and philosophy that `Now Everyone Can Fly' and they continuously

seek and deliver `value innovation' to deliver their mantra and value

proposition. 

Below are some management insights that you can consider to implement

value-driven leadership/ Management in your organisation: 

Management Insight #1: Inspiring People with Key Values. 

Management leaders in the organisation must be able to lead, develop and

inspire its people. Value-driven organisations will tend to develop value-driven

leaders and value-driven leaders will create value over time for their

organisations. Value-driven leaders must be able to practice what they preach

and create explicit and intrinsic value for their organisation that goes far

beyond mere shareholders value. They believe they do not lost sight of

profitability as an important corporate goal - as a value - but it is integrated

with other intrinsic and performance values in their leadership behaviour that

are integrated into organisational process and permeate the organisation's

decision making, actions and performance behaviours. 

Management Insight #2: Dealing with Others. 

Value-driven leaders engage in pro-active co-operation when dealing with

others in and outside the organisation. They are able to influence, impact and

convince others with their ethical dealings, and look at the future as a source

of opportunity and business sustainability. Internal or external customers get

better service from employee in value-driven organisation that enjoys their

job. Hence, their belief that value-driven business is long term good business.

Companies such as Southwest Airlines invest significantly in identifying the

characteristic of people who will enjoy serving customers. They hired people

who can embody its values and convert it into actions thus making it more

successful than its peer American Airlines that is very difficult to replicate.

There is a saying in recruiting people: "We hire people for what they know and

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fire them for who they are." Therefore, when we hire people with the same

values, we spend less time managing their deviant behaviours. 

Management Insight #3: Adding Values across the Board. 

Value-driven leaders are able to add value to articulate their own values and

that of the organisation by consistently practicing what they preach. They are

result focus, continuously interacting with their stakeholders and improving by

seeking and introducing value innovation to satisfy their customers'

expectation. For example, executive seeking to enhance employee's

satisfaction and deliver excellent customer service can benefit best from

valuing human relationship and fostering teamwork by professing and

practicing their value culture. Executives seeking to improve market share,

accelerate earning growth and return on equity, and enhance shareholder

values can embrace the principle `Win through multiple means'. Customers

are very astute these days and they prefer to patronise and do business with

companies and people who are ethical and practice good values. 

Management Insight #4: Opening Up for Sustainability. 

Value-driven leaders must walk their talk, be transparent by knowing

themselves, have good customer service orientation, business insights,

unending curiosity and unwavering courage. This is because value-driven

leadership is interactive, engaging and synergistic. They are able to

conceptualise the highest level of `win-win' outcome where individual and the

organisation are becoming more valuable and it is more challenging to keep

people constantly satisfied. Value-driven leaders have the ability to influence

their people to be value-fulfilled throughout the individual's and their work

lifetime, and for their organisation they leave behind their strong value

footprints in organisation perpetual succession. The value-driven leader and

their management team create their own strong and intrinsic, intangible

capital which continue to be enhanced by each generation that is imbued and

immersed in their strong value culture. These are the organisations which

have the capacity to live forever. 

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Dharma of the Organisation/ Management

Dharma and Dharmic Management :

The word ‘Dharma’ is a Sanskrit word and has no exact equivalent in the

English language. It defies a simple translation into English. Though

sometimes it is used as an equivalent for the word ‘religion’, it is not only that.

A number of words come very close to explaining its meaning. These include

— right action, truth in action, righteousness, morality, virtue, duty, the

dictates of God, code of conduct and others.

Hawley (1993) defines Dharma, Dharmic and Dharmic Management in his

landmark work ‘Dharmic Management’. He states, ‘The concept of Dharma is

affixed to integrity, drawing to it the energies of goodness, spirit, and

fearlessness, creating a sort of super integrity. The word Dharmic is Sanskrit

for deep, deep integrity — living by your inner truth. Dharmic

Management means bringing that truth with you when you go to work every

day. It’s the fusing of the spirit, character, human values and decency in the

workplace and in life as a whole.’

Dharma is not the same for all. It differs based on one’s age and stage in life.

The ancient Indian scriptures highlight a large variety of differences in the

nuances of Dharma based on Desha-Kala- Paristhiti (place, time and

circumstance). These various types of Dharma are :

Vyakti Dharma — Related to the individual

Grihastha Dharma — Related to the family life

Samajika Dharma — Related to the society

Rajya Dharma — Related to the nation

Ashrama Dharma — Related to the stage in life viz. student,

householder or renunciant

Varna Dharma — Related to one’s profession

Kula Dharma — Related to one’s lineage

Mata Dharma — Related to one’s religion

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Aapat Dharma — To be followed in times of danger/crisis

Manava Dharma — One’s duty as a true human being

Hawley in the same seminal work makes his observations in this context. He

states, “Dharma is personal. It is not a one-size-fits-all set of ethical

standards. It’s an inner formula for only the individual. We each have our own

law, or Dharma, peculiar to ourselves. It’s as much a part of us as our body is,

probably more. As with any law, we have to comply with it or suffer the

consequences.”

Again, one’s Dharma is determined by one’s stature and status in one’s

organisation and in society and one is expected to act in accordance with that

for efficient functioning of the society as a whole. In this regard Hawley states

that one’s present status and level of achievement, or role in life, also affect

one’s Dharma. An individual’s Dharma differs according to where he or she is

in life. The Dharma of the CFO, for example, is different from the Dharma of

the accountant. It’s not that the accountant is inferior and the CFO superior.

It’s just that they are in different places in life at this moment. This will change

with time. For now, the differing responsibilities and leverage that each brings

to the table of life earn each of them a distinct Dharma.

Whatever may be one’s stature or status, position or situation in life, true

perfection is excellence in action. The Bhagavad Gita, one of the most

revered spiritual texts of India also highlights this. It states — ‘Yogaha

Karmasu Koushalam’, which means ‘True Yoga is Perfection in Action’.

No matter what one’s duty in life, one must do it and do it well. Whether one is

a minister or a clerk, no matter what one’s particular role, one must carry it out

to the absolute limit of one’s capacity for excellence.

Individual Dharma and Organisation Dharma :

This Individual Dharma can be extended to the organisation as a whole and

be termed as Organisational Dharma. This is because an organisation is

nothing but a collection of individuals working together towards achieving

certain common goals and objectives. Each of these are bound by certain

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rules and regulations based on the roles and responsibilities allocated to them

and they have to achieve the commonly chalked out goals which are in the

larger interest of the organisation keeping these in mind. In this light the

organisation can collectively be said to have a Dharma.

The collective traits/virtues of an organisation, which are its unique features

and characteristics are in recent times represented as the organisation’s

vision, mission and core values statements. They are the essential fabric of

the organisation and form the core of its culture. Many organisations have a

credo or an organisation charter which they adhere to and follow at all times

and under all circumstances. One such example is of the Johnson & Johnson

credo which the company follows and sticks to even in times of the famous

Tylenol crisis.

Management Dharma :

Just as the organisation has its own Dharma, so do the managers working

within it have theirs. Their Dharma as individuals differs from their Dharma as

managers working in the organisation. As managers, they are the

representatives of the collective value system of the organisation and they are

trustees of the organisational wealth. Hence, they too have a Dharma.

Hawley expresses a similar opinion. He highlights the fact, “There is a

particular Dharma for managers because they are in the responsibility seat.

Their actions impact other humans and affect the economic and physical well-

being of the organisation and, beyond that, the well-being of the environment

and even the planet. With that power comes a greater measure of

accountability. Management Dharma, like individual Dharma, matches one’s

life station. Managers can’t expect to take the bigger jobs and not take on a

broader Dharma. The manager’s Dharma is more demanding, more obligated

to rightness, more careful (i.e., more full of care).”

The recent concept of Servant-Leadership coined and defined by Robert

Greenleaf highlights the same fundamental. It emphasises the role of a leader

as a steward of the organisations’ resources (human, financial and others). It

encourages leaders to serve others while staying focussed on achieving

results in line with the organisation’s values and integrity.

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A Dharmic Organisation and Trikaranashuddhi :

An organisation which can be called Dharmic or a truly ethical organisation or

the one pursuing business ethics in its day-to-day practice is the one which

tries to ensure to the extent possible, the welfare of all its stakeholders. The

true purpose of an organisation as highlighted by a number of studies is to

Pareto optimise the welfare of the organisational stakeholders, as they are the

ones, who in reality contribute towards the long-term growth and sustenance

of the organisation.

‘To ensure the welfare of all concerned’ has been the endeavour and a part of

the Indian culture and tradition right from the very beginning. The Indian

scriptures have always hailed the ideal of Sarvajana Hitaya, Sarvajana

Sukhaya (for the benefit and welfare of all). The excerpt from the Kaivalya

Upanishad given below gives an insight into the allencompassing approach of

the Indian culture which has enabled the Indian civilisation (the longest and

the only surviving ancient civilisation) to survive the last 5000 years and more.

Swasti Prajabhya Paripalayantaam,

Nyayena Margena Mahim Mahisham

Gou Brahmanebhya Shubhamastu Nityam,

Loka Samasta Sukhino Bhavantu

[May all the Subjects and their Rulers be prosperous; May the Rulers rule on

the Righteous Path; May the cows (resources) and the Brahmins (individuals

desirous of right living) be safe always; May all the beings in all the worlds be

happy.]

The great leaders who got freedom to India and laid down their lives for such

a glorious cause and the founding fathers of the Indian Constitution, believed

in such noble approach to existence. The following scriptural injunction has

been engraved on the entrance wall of the Indian Parliament :

Ayam Nijah Parovaiti Ganana Laghu Chetasam,

Udara Charitaanaam Tu Vasudhaiva Kutumbakam.

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(It is only petty-minded individuals who fail to rise above selfishness and keep

counting that this is mine and that is yours; on the other hand the largehearted

ones treat the entire humanity as members of their own family.)

In the light of the above it can be said that the complete accord in the

corporation’s thought, word and deed — ‘Trikaranashuddhi1’ i.e., its intention

of ensuring stakeholders’ welfare, framing policies commensurate with the

aforementioned and communicate the same across the organisation, and

ultimately undertake activities for realising this intention, is the righteous

conduct of the organisation — the Dharma of the company. The Vedic

scriptures declare: ‘Manasyekam, Vachasyekam, Karmanyekam

Mahatmanaam’ which means, ‘A great individual is the one whose thought,

word and deed are in complete unity.’ The same can be extended to a great

corporate entity. An organisation whose intentions, communication and

actions are in complete unison can truly be called a Dharmic Organisation. It

is such scriptural injunctions which inspire and prompt one and all to set high

standards of righteous conduct and put into practice these exaltations in day-

to-day lives, thereby ensuring the welfare of all concerned — whether at home

or at work.

“Business should not be swayed by excess profits and wealth maximisation for a few, but should realise the significance of social responsiveness. Therefore, corporate philosophy should be guided by Dharma (Righteousness). A business organisation is to be treated as a place of worship, wherein the entire workforce, by means of sincere work, offers worship to God.” 

(Source : Man Management : A Values-Based Management Perspective —

Based on the Discourses of Sri Sathya Sai Baba)

Indian Culture and wisdom

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WisdomWhat do you mean by wisdom and insight?What Are the Differences Between Knowledge, Wisdom, and Insight?

Knowledge, Wisdom, and Insight may sound like synonyms, but they are not.

Though they all refer to the mind and an accumulation of thoughts and

experiences, they have some very real differences in the essence of their

meanings and their applications in our life.

Knowledge VS Wisdom VS Insight

Knowledge is the accumulation of facts and data that you have learned about

or experienced. It’s being aware of something, and  having information.

Knowledge is really about facts and ideas that we acquire through study,

research, investigation, observation, or experience.

Wisdom is the ability to discern and judge which aspects of that knowledge

are true, right, lasting, and applicable to your life. It’s the ability to apply that

knowledge to the greater scheme of life. It’s also deeper; knowing the

meaning or reason; about knowing why something is, and what it means to

your life.

Insight is the deepest level of knowing and the most meaningful to your life.

Insight is a deeper and clearer perception of life, of knowledge, of wisdom. It’s

grasping the underlying nature of knowledge, and the essence of wisdom.

Insight is a truer understanding of your life and the bigger picture of how

things intertwine.

In a nutshell: If knowledge is information, wisdom is the understanding and

application of that knowledge and insight is the awareness of the underlying

essence of a truth.

Sadly we can gain a lifetime of knowledge, yet never see the wisdom in it. We

can be wise, but still miss the deeper meaning.

Christopher Reiss does a great job of summing up the differences on Quora…

Knowledge is measuring that a desert path is 12.4 miles long.

Wisdom is packing enough water for the hike.

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Insight is building a lemonade stand at mile 6.

Knowledge is knowing how to manage your money, budgeting, spending,

saving.

Wisdom is understanding how money impacts the quality of your life and your

future.

Insight is realizing that money is simply a tool to be used, that it has no

inherent meaning beyond its usefulness.

Knowledge is learning how to paint and using that skill to cultivate a livelihood.

Wisdom is expressing your passion through painting and understanding that

art is a form of communication that touches the lives of others.

Insight is perceiving that all things can be art and that creating your art

contributes to the understanding and the expression of the essence of the

world around you. 

Knowledge is knowing which things, practices, people, and pleasures make

you happy.

Wisdom is knowing that while those things may bring you pleasure, happiness

is not derived from things or situations or people. It’s understanding that

happiness comes from within, and that it’s a temporary state of mind.

Insight is knowing that happiness is not the purpose of life, that it’s not the

marker of the quality of life—it’s merely one of the many fleeting states of

mind in the spectrum of full emotions. Those emotions don’t make up our

lives; they are merely experiences.

 

Knowledge, wisdom and insight all are valuable and all have a place in our

lives. The difficulty lies in the fact that many of us are unclear as to their

differences, often percieving the terms and their application to be

interchangeable. Being clear and consciously aware of how our minds are

engaged may be important to getting the most out of all three. While acquiring

and applying information is valuable in and of itself, we also need to distill and

judge that information, and ultimately find the deaper meaning and relevance

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to the whole of our lives. Perhaps the truest form of knowing is in acquiring all

three, and understanding how they each enhance the quality and experience

of life.

Religious quotes

"If a man sings of God and hears of Him, And lets love of God sprout within

him, All his sorrows shall vanish, And in his mind, God will bestow abiding

peace." --Sikhism

"A Muslim is one who surrenders to the will of Allah and is an establisher of

peace (while Islam means establishment of peace, Muslim means one who

establishes peace through his actions and conduct)."--Islam

"The Lord lives in the heart of every creature. He turns them round and round

upon the wheel of Maya. Take refuge utterly in Him. By his grace you will find

supreme peace, and the state which is beyond all change." --Hinduism

"The whole of the Torah is for the purpose of promoting peace." --Judaism

"All things exist for world peace." --Perfect Liberty Kyodan "Blessed are the

peacemakers for they shall be called sons of God." --Christianity

"Peace ... comes within the souls of men when they realize their relationship,

their openness, with the universe and all its powers and when they realize that

at the center of the universe dwells Wakan-Tanka, and that this center is

really everywhere, it is within each of us."--From The Sacred Pipe, by Black

Elk, Lakota Sioux Medicine Man

 

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Morality is a Guide to Living

Choosing to live is a pre-moral choice, after which, the question becomes

"How?" This is the same as "What do I do?" One can either go about it

randomly or with a methodology designed for success. That methodology is

called morality.

An explicit morality allows one to choose rationally among values. It makes

the selection of values rational by providing a method to evaluate them.

Values are compared to a moral standard, and prioritized according to how

well they promote that standard. To make decisions easier, we

develop virtues which are moral habits which tend to help gain values.

Historically, the concept of morality has often been used negatively as a list

of thou shall not's in check against ones actions. The stance taken is often

that it doesn't matter what you do, as long as you don't violate any moral

edicts; but the source of these moral edicts is often mystical or arbitrary.

A list of prohibitions, even if founded in reason rather than mysticism, is not a

sufficient outline for success. Morality should be positive rather than negative.

Not What shouldn't I do? But What should I do?. The problem with defining

morality negatively is that pretty much anything goes provided one avoids a

few problem areas. This is not useful because within the sphere of pretty

much anything goes, there is no methodical way to choose which action is

best, whereas positive morality sets forth habits which lead to the

achievement of values and methods for choosing what to value which is the

way to live and thrive.

With ones own life as the standard of value, morality is not a burden to bear,

but a prudent and effective guide which furthers life and success.

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