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Chandramowly   HUMAN DIMENSIONS
i                                VALUES
                                   +


                ROBUST                                        INSPIRING
                   V+ S -                                      V+   S+
                                                                         +

               -                                                        SKILLS

               HOPELESS                                       DANGEROUS
                   V- S-                                       V - S+
                                                   -

                            Concept;t: Prof S K Chakraborty
Chandramowly                                                             HUMAN DIMENSIONS
Codes of Conduct:                                                                5 Generations
         i                                Generation
                     1st Gen: (post WWWII –1970s)
                                                                                                               Focus
                                                                                      Protect company & shareholders
                                                                                      from Employees
                     Conflict of Interest
                     12nd Gen: (1970 – mid 1980s)                                     Protect company reputation / ensure
                                                                                      fair competition @ home & abroad
                     Commercial Conduct                                               (bribes, kickbacks)
                      3rd Gen: (1980s)                                                Protect workers, customers,
                                                                                      suppliers; improve Corp, Reputation,
                     Employee & 3rd Parties                                           motivation, customer satisfaction
                     4th Gen: (1990’s)                                                Protect environment and respect
                                                                                      communities in which business
                     Community/Environment                                            activities occur. (Bhopal, Valdez)
                     5th Gen: (late 1990 –2000’s)                                     Concern over Investments in nations
                                                                                      whose gov’ts don’t respect human
                     Accountability and Social                                        rights or rule of law (Burma, Nigeria)
                     Justice
Mendes, E.P. & Clark, J.A. The Five Generations of Corporate Codes of Conduct and their Impact on Corporate
                                                                                                                        .
     Responsibility. Working Paper of the Human Rights Research and Education Center, University of Ottowa. Sept 18, 1996

       Chandramowly                                                                                                         HUMAN DIMENSIONS
i               Business Ethics

   • Interest in Business Ethics has been
     increasing since 1960
   • Interest has been spurred by headlines of
     business scandals
   • A 1982 study reported that of the Fortune
     500 companies, 115 companies (23%) had
     been convicted of at least one major crime or
     paid penalties for serious misbehavior
   • Is the importance of business ethics declining
     in business and government practices?
   • Greater focus on ethics, morals, and values
Chandramowly                                  HUMAN DIMENSIONS
The Types
 i             Good Soldiers
               Understand/follow the rules,
               Have good judgment
               Expected to question improper conduct
               Loose Cannons
               May have ethical compasses but
               Don’t know the rules or standards in business.
               May be inexperienced, naïve.
               Grenades
               Neither ignorant nor benign.
               Don’t care about the rules/ have own agenda.
               Lack loyalty; actions can ‘blow up’ & damage firm.
Chandramowly                                             HUMAN DIMENSIONS
i                    Integrity




               Do what's right, legally and
                         morally


Chandramowly                            HUMAN DIMENSIONS
i             Ethical behaviour
         Doing what is right when
             nobody is looking




Chandramowly                       HUMAN DIMENSIONS
i             What is integrity?
                  It means …
                  The thorough integratedness of
                  Public, Private and Deep
                  inner life
                  around a balanced
                  set of Principles.
                  Integrity is simply

                      Keeping promises and fulfilling expectations.
                      The value we place on ourselves.
                      The ability to walk our talk.
                      About what we will not do
                      About what we will not give up
                      About what we stand for at all costs

Chandramowly                                          HUMAN DIMENSIONS
Integrity Comes from
 i                          Moral Values
               • Loyalty
               • Duty
               • Respect
               • Selfless Service
               • Honesty, Honor
               • Integrity
               • Personal Courage
Chandramowly                                   HUMAN DIMENSIONS
i                     What is Ethics ?
               Ethics are moral principles or rules
               of conduct derived from core
               values, that people use to guide
               their behavior.




Chandramowly                                     HUMAN DIMENSIONS
Ethics
 i
          • Ethics can’t satisfy everyone, but
            majority should agree.
          • Balance interests of
            constituents
               – business
               – personal
               – no one group benefit while
 ETHICS




                 others suffer
          •    Issue of trust
Chandramowly                                     HUMAN DIMENSIONS
In 90% of the
                  ethical problems
                  we face, we know
                  what we should do.

    The real question is
    whether we are willing to
    do the right thing when it
    is likely to cost more
    than we want to pay.

Chandramowly                     HUMAN DIMENSIONS
i         Integrity - Two dimensions

               Standing up for our most
               fundamental
   Personal    beliefs and commitments,
               even in the face of adversity



               Standing up for the

Professional   goals and commitments of our profession,
               even in the face of adversity


Chandramowly                                   HUMAN DIMENSIONS
i             Breaches of Integrity and
                    Reconciliation

                 Integrity is a harsh virtue

                 ……..One who violates integrity is
                 left without the possibility of
                 reconciliation.
                 No way to expiate guilt….



Chandramowly                                       HUMAN DIMENSIONS
i
…….Even if we know we can get
away with doing something wrong,
even if no one ever discovers what
we’re up to,
our vice harms us more than it hurts
any of our victims

- Socrates
Chandramowly                           HUMAN DIMENSIONS
i      What causes unethical
             behavior?
   • Stress
   • Confusion
   • Pressure to perform at expected
     levels
   • Competition within the industry
   • No knowledge
Chandramowly                    HUMAN DIMENSIONS
Types of Unethical Behavior
 i
           • Cutting corners on quality
           • Covering up incidents
           • Abusing or lying about sick days
           • Lying or deceiving customers
           • Putting inappropriate pressure on others
           • Taking office supplies from the office
           • Taking credit for co-workers ideas/work
                               co-
           • Charging personal purchases on the co.
           • Taking or Giving bribe
Chandramowly                                   HUMAN DIMENSIONS
i                  Ethical Weakness
               Several high profile ethical weaknesses:
               • - Price fixing
               • - Restraint of competition
               • - Government corruption
               • - Financial scandals
               • - Product safety
               • - Discrimination
               • - Sexual harassment
               In a 1993 study, 76% responded that the
                 U.S. was in a moral and spiritual decline
Chandramowly                                         HUMAN DIMENSIONS
i                     Obstacles

                          •   Ego

                                    •   Ignorance

          •    Time
 ETHICS




                •   Unreliable information

Chandramowly                                 HUMAN DIMENSIONS
i             Integrity standards
               address many subjects...

     •Avoiding conflict of interest
     •Proper use of company assets
     •Accurate recording of documents
     •Compliance with laws
     •Observance of accounting and
         control procedures


Chandramowly                            HUMAN DIMENSIONS
i             Prohibit...
   •Employee disrespect harassment
   •Non reporting of unsafe practices
   •Abuse of drugs, alcohol or other intoxicants
   •Conflict of interest -Personal & Financial Vs Praxair
   •Acceptance of Gifts, Entertainment and favours
   •Trading based on “ Inside Information”
   •Misuse of company assets
   •Use of unlicensed software
Chandramowly                                   HUMAN DIMENSIONS
i             Prohibit...
•Downloading inappropriate materials from Internet
•Using electronic mail for ‘non-business’ purposes
                           ‘non-
•Act leading to leakage of ‘ confidential information’
•Inaccuracy and incompleteness of company documents
•Contribution to political parties
•Payments to Govt... officials
•Non-cooperation with Govt.. investigations
 Non-

  Chandramowly                                  HUMAN DIMENSIONS
i              "What’s in it for me to be
                        ethical?,"

                       "Quite a bit--
                                bit--
        -A more accurate perception of the
                    world around you,
        -Greater control over your behavior,
       -A stronger personality, and greater
          likelihood of being happy in life."

               •Individual appreciation
Chandramowly                                    HUMAN DIMENSIONS
i             In simple terms…..

                     • Is it Ethical?
                     • Is it Legal?
                     • Is it OK?
                     • Is it Right?




Chandramowly                            HUMAN DIMENSIONS
i                   and…..

                             Is it fair?

          Does it hurt anyone?


 Have I been honest
  with those affected?
 ETHICS




          Can my conscience live
           with this decision?

Chandramowly                               HUMAN DIMENSIONS
Double check your
 i                 decision
    Ask yourself the following
     questions:
    •How would I feel if my decision was
     printed in the local newspapers?

    •How would I feel if my family
    found out about my decision?

Chandramowly                           HUMAN DIMENSIONS
How being ethical
 i             benefits Orgnisation
  •   Improve organisational values
  •   Customers value us more
  •   Cultivate strong team work and productivity
  •   Support employee growth and meaning
  •   Ensure policies are legal - doing right things
  •   Avoid criminal acts “of omission” and lower fines
  •   Promote a strong public image
  •   Contributes to enhanced performance

Chandramowly                                   HUMAN DIMENSIONS
Most
                Desirable       Problematic
               (Congruent)     (Incongruent)


                                    Least
                Problematic       Desirable
               (Incongruent)     (Congruent)

                               Management by Values by Prof: S K Chakraborty
Chandramowly                                          HUMAN DIMENSIONS
i              History is full of examples
                 to show that structures,
               systems, or for that matter,
                   civilizations, without
                 ethico-
                 ethico-moral content as
               their foundation, are sooner
                rather than later bound to
                          collapse.
Chandramowly                          HUMAN DIMENSIONS

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Business Ethics Workshop Slides By Chandramowly

  • 1. Chandramowly HUMAN DIMENSIONS
  • 2. i VALUES + ROBUST INSPIRING V+ S - V+ S+ + - SKILLS HOPELESS DANGEROUS V- S- V - S+ - Concept;t: Prof S K Chakraborty Chandramowly HUMAN DIMENSIONS
  • 3. Codes of Conduct: 5 Generations i Generation 1st Gen: (post WWWII –1970s) Focus Protect company & shareholders from Employees Conflict of Interest 12nd Gen: (1970 – mid 1980s) Protect company reputation / ensure fair competition @ home & abroad Commercial Conduct (bribes, kickbacks) 3rd Gen: (1980s) Protect workers, customers, suppliers; improve Corp, Reputation, Employee & 3rd Parties motivation, customer satisfaction 4th Gen: (1990’s) Protect environment and respect communities in which business Community/Environment activities occur. (Bhopal, Valdez) 5th Gen: (late 1990 –2000’s) Concern over Investments in nations whose gov’ts don’t respect human Accountability and Social rights or rule of law (Burma, Nigeria) Justice Mendes, E.P. & Clark, J.A. The Five Generations of Corporate Codes of Conduct and their Impact on Corporate . Responsibility. Working Paper of the Human Rights Research and Education Center, University of Ottowa. Sept 18, 1996 Chandramowly HUMAN DIMENSIONS
  • 4. i Business Ethics • Interest in Business Ethics has been increasing since 1960 • Interest has been spurred by headlines of business scandals • A 1982 study reported that of the Fortune 500 companies, 115 companies (23%) had been convicted of at least one major crime or paid penalties for serious misbehavior • Is the importance of business ethics declining in business and government practices? • Greater focus on ethics, morals, and values Chandramowly HUMAN DIMENSIONS
  • 5. The Types i Good Soldiers Understand/follow the rules, Have good judgment Expected to question improper conduct Loose Cannons May have ethical compasses but Don’t know the rules or standards in business. May be inexperienced, naïve. Grenades Neither ignorant nor benign. Don’t care about the rules/ have own agenda. Lack loyalty; actions can ‘blow up’ & damage firm. Chandramowly HUMAN DIMENSIONS
  • 6. i Integrity Do what's right, legally and morally Chandramowly HUMAN DIMENSIONS
  • 7. i Ethical behaviour Doing what is right when nobody is looking Chandramowly HUMAN DIMENSIONS
  • 8. i What is integrity? It means … The thorough integratedness of Public, Private and Deep inner life around a balanced set of Principles. Integrity is simply Keeping promises and fulfilling expectations. The value we place on ourselves. The ability to walk our talk. About what we will not do About what we will not give up About what we stand for at all costs Chandramowly HUMAN DIMENSIONS
  • 9. Integrity Comes from i Moral Values • Loyalty • Duty • Respect • Selfless Service • Honesty, Honor • Integrity • Personal Courage Chandramowly HUMAN DIMENSIONS
  • 10. i What is Ethics ? Ethics are moral principles or rules of conduct derived from core values, that people use to guide their behavior. Chandramowly HUMAN DIMENSIONS
  • 11. Ethics i • Ethics can’t satisfy everyone, but majority should agree. • Balance interests of constituents – business – personal – no one group benefit while ETHICS others suffer • Issue of trust Chandramowly HUMAN DIMENSIONS
  • 12. In 90% of the ethical problems we face, we know what we should do. The real question is whether we are willing to do the right thing when it is likely to cost more than we want to pay. Chandramowly HUMAN DIMENSIONS
  • 13. i Integrity - Two dimensions Standing up for our most fundamental Personal beliefs and commitments, even in the face of adversity Standing up for the Professional goals and commitments of our profession, even in the face of adversity Chandramowly HUMAN DIMENSIONS
  • 14. i Breaches of Integrity and Reconciliation Integrity is a harsh virtue ……..One who violates integrity is left without the possibility of reconciliation. No way to expiate guilt…. Chandramowly HUMAN DIMENSIONS
  • 15. i …….Even if we know we can get away with doing something wrong, even if no one ever discovers what we’re up to, our vice harms us more than it hurts any of our victims - Socrates Chandramowly HUMAN DIMENSIONS
  • 16. i What causes unethical behavior? • Stress • Confusion • Pressure to perform at expected levels • Competition within the industry • No knowledge Chandramowly HUMAN DIMENSIONS
  • 17. Types of Unethical Behavior i • Cutting corners on quality • Covering up incidents • Abusing or lying about sick days • Lying or deceiving customers • Putting inappropriate pressure on others • Taking office supplies from the office • Taking credit for co-workers ideas/work co- • Charging personal purchases on the co. • Taking or Giving bribe Chandramowly HUMAN DIMENSIONS
  • 18. i Ethical Weakness Several high profile ethical weaknesses: • - Price fixing • - Restraint of competition • - Government corruption • - Financial scandals • - Product safety • - Discrimination • - Sexual harassment In a 1993 study, 76% responded that the U.S. was in a moral and spiritual decline Chandramowly HUMAN DIMENSIONS
  • 19. i Obstacles • Ego • Ignorance • Time ETHICS • Unreliable information Chandramowly HUMAN DIMENSIONS
  • 20. i Integrity standards address many subjects... •Avoiding conflict of interest •Proper use of company assets •Accurate recording of documents •Compliance with laws •Observance of accounting and control procedures Chandramowly HUMAN DIMENSIONS
  • 21. i Prohibit... •Employee disrespect harassment •Non reporting of unsafe practices •Abuse of drugs, alcohol or other intoxicants •Conflict of interest -Personal & Financial Vs Praxair •Acceptance of Gifts, Entertainment and favours •Trading based on “ Inside Information” •Misuse of company assets •Use of unlicensed software Chandramowly HUMAN DIMENSIONS
  • 22. i Prohibit... •Downloading inappropriate materials from Internet •Using electronic mail for ‘non-business’ purposes ‘non- •Act leading to leakage of ‘ confidential information’ •Inaccuracy and incompleteness of company documents •Contribution to political parties •Payments to Govt... officials •Non-cooperation with Govt.. investigations Non- Chandramowly HUMAN DIMENSIONS
  • 23. i "What’s in it for me to be ethical?," "Quite a bit-- bit-- -A more accurate perception of the world around you, -Greater control over your behavior, -A stronger personality, and greater likelihood of being happy in life." •Individual appreciation Chandramowly HUMAN DIMENSIONS
  • 24. i In simple terms….. • Is it Ethical? • Is it Legal? • Is it OK? • Is it Right? Chandramowly HUMAN DIMENSIONS
  • 25. i and….. Is it fair? Does it hurt anyone? Have I been honest with those affected? ETHICS Can my conscience live with this decision? Chandramowly HUMAN DIMENSIONS
  • 26. Double check your i decision Ask yourself the following questions: •How would I feel if my decision was printed in the local newspapers? •How would I feel if my family found out about my decision? Chandramowly HUMAN DIMENSIONS
  • 27. How being ethical i benefits Orgnisation • Improve organisational values • Customers value us more • Cultivate strong team work and productivity • Support employee growth and meaning • Ensure policies are legal - doing right things • Avoid criminal acts “of omission” and lower fines • Promote a strong public image • Contributes to enhanced performance Chandramowly HUMAN DIMENSIONS
  • 28. Most Desirable Problematic (Congruent) (Incongruent) Least Problematic Desirable (Incongruent) (Congruent) Management by Values by Prof: S K Chakraborty Chandramowly HUMAN DIMENSIONS
  • 29. i History is full of examples to show that structures, systems, or for that matter, civilizations, without ethico- ethico-moral content as their foundation, are sooner rather than later bound to collapse. Chandramowly HUMAN DIMENSIONS