professional ethics

97
A Presentation on “Professional Ethics – Corporate Value” Two Day State Level UGC Seminar on “Inculcating Professional & Personal Ethics & Value Systems in Students, for a Better Tomorrow” on 25 th February 2009, 11.30 a.m. to 1.00 p.m. 6/6/22 Chhaya Sehgal 1

Upload: myanarakesh

Post on 14-Nov-2014

439 views

Category:

Documents


5 download

TRANSCRIPT

Page 1: Professional Ethics

A Presentation on

“Professional Ethics – Corporate Value”

Two Day State Level UGC Seminar on

“Inculcating Professional & Personal Ethics & Value Systems in Students, for a Better Tomorrow”

on 25th February 2009, 11.30 a.m. to 1.00 p.m.

04/08/2023 09:50 AM

Chhaya Sehgal 1

Page 2: Professional Ethics

"Winners Never Cheat; Cheaters Never Win"

"If you plot and connive to deceive people, you may fool them for a while and profit thereby, but you will without fail be visited by divine punishment.“ Shinto religion teaching

"There is no more difficult place to find an honest man than on Wall Street in New York City.“ Abraham Lincoln

Moral shortcuts always have a way of catching up.

04/08/2023 09:50 AM

Chhaya Sehgal 2

Page 3: Professional Ethics

Why Ethics?

To enable people to appreciate themselves and others, and to take greater responsibility for their actions and for the world around them.Moral Values are linked to the very definition of ethics.

04/08/2023 09:50 AM

Chhaya Sehgal 3

Page 4: Professional Ethics

Moral Values Are Universal & Diverse

These values may be classified as: Personal Values Social Values Moral Values Spiritual Values and Behavioural values

04/08/2023 09:50 AM

Chhaya Sehgal 4

Page 5: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 5

Page 6: Professional Ethics

Values

Determine•How you go about getting things done•How you treat people•How you spend your time

04/08/2023 09:50 AM

Chhaya Sehgal 6

Page 7: Professional Ethics

•Based on core values•Consensus acceptance•Shared•Penalized for breaches

(dishonesty and manipulative gain are examples

04/08/2023 09:50 AM

Chhaya Sehgal 7

Ethics

Page 8: Professional Ethics

Ethics And Economics•First, economists have ethical values that help shape the way they do economics. This builds into the core of economic theory a particular view of how the economy does work and how it should work.•Second, economic actors (consumers, workers, business owners) have ethical values that help shape their behavior.•Third, economic institutions and policies impact people differently and thus ethical evaluations, in addition to economic evaluations, are important.

04/08/2023 09:50 AM

Chhaya Sehgal 8

Page 9: Professional Ethics

What Is Unethical?•Economic institutions, rules, practices which disadvantage the poor will be viewed as unethical •Ethical behavior requires progressive intent: the poor should benefit disproportionately •Hypocritical behavior viewed as unethical •Advisers who are not “fully honest” viewed as unethical

04/08/2023 09:50 AM

Chhaya Sehgal 9

Page 10: Professional Ethics

Is Business All About Making

Profits ?Ethical Trade Just Doesn’t Fit Neatly Into Numbers

Alone04/08/2023

09:50 AMChhaya Sehgal 10

Page 11: Professional Ethics

Business & Profits…Wealth Maximization of shareholdersLong Term Survival & GrowthProfit MaximizationSales MaximizationCost minimizationIncrease in market shareGrowth of the firm/ businessIndustry LeadershipProduce quality productsIncrease in customer satisfaction

04/08/2023 09:50 AM

Chhaya Sehgal 11

Page 12: Professional Ethics

Every Business Should Have An Ethical Plan Ethics

UK's Institute of Business Ethics (IBE) surveyed 350 firms which showed that 'ethical' companies outperformed those which made no such claims; on three out of four financial measures (market value added [MVA], economic value added [EVA] and price/earnings ratio). IndividualBy empowering the individual, decisions can be made more quickly and efficientlyCommunityThe relationship the business creates are generally its most undervalued assetsProfit making for Self-SustainabilityGreed has hijacked profit making. People never consider that they may not get more by paying less.

04/08/2023 09:50 AM

Chhaya Sehgal 12

Page 13: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 13

Page 14: Professional Ethics

Human ValuesFOR EMPLOYEES:

•Brings out the best in employees as it has been proven by research that

•'Customer satisfaction is contingent on employee satisfaction'.

•Helps in attracting and retaining the best talent. Talent finds comfort in an environment of universal values; and attrition gets reduced.

FOR CUSTOMERS:

•Competition has provided Customers with numerous options. They will choose products and services that satisfy their needs. The identification of unique needs and providing solutions for satisfying them, will attract Customers.

•Helps Customers to build trust in the company.

•Helps in delivering ‘Customer delight’. 04/08/2023

09:50 AMChhaya Sehgal 14

Page 15: Professional Ethics

Profits Are Clearly Linked To Employees

Happy Employee = Happy customersIncrease in employee productivity = Increase in salesCosts on employee is INVESTMENT for futureReduce employee turnover Reduce employee absenteeismIncrease productivity, commitment and engagementIncrease morale and job satisfactionIncrease profitsAttract customers and investors

04/08/2023 09:50 AM

Chhaya Sehgal 15

Page 16: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 16

Page 17: Professional Ethics

•Ethical financial management ultimately refers to total quality consciousness at all the phases of value chain of any enterprise.

•The customer must get the best quality at the reasonable price which ultimately leads to a virtuous cycle of perpetual success as depicted by diagram above.

•Neglecting quality is not just an ethical blunder but also it is very logical, natural and simple that an unethical environment would only promote deficient quality awareness and leads to vicious circle of ethical-financial failure as shown in the diagram ahead. 04/08/2023

09:50 AMChhaya Sehgal 17

Page 18: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 18

Page 19: Professional Ethics

Value For MoneyThis is important because:

• Customers want higher Quality and Value at a lower price. This is an absolute global reality

• A value packed product or a service makes sure that the Customers feel that they have received Value for Money

• It helps in creating Customer delight and makes them ‘brand ambassadors’

• It enables to concentrate more on substance rather than style

04/08/2023 09:50 AM

Chhaya Sehgal 19

Page 20: Professional Ethics

Market Leadership Can Be Retained For Years If Quality

And Ethics Go Together

04/08/2023 09:50 AM

Chhaya Sehgal 20

Page 21: Professional Ethics

Entrepreneurship And Ethical Financial Management

•True entrepreneurship can be nourished only if an all round ethical financial planning and control system is created and used.

•Ethical entrepreneurship requires cultural support and a constant assessment at all levels in the organization.

• Ethical economics is normally disturbed by one or more of the three aspects of the overall performance framework – end targets, means and methods to achieve such targets and the time within which the targets are to be achieved.

•The organization, its division and employees may be guided by assessment matrix as suggested below considering the broad industrial bench marks. 04/08/2023

09:50 AMChhaya Sehgal 21

Page 22: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 22

Page 23: Professional Ethics

Every Business Should Have An Ethical Plan

The results of ethical practices normally start late on the performance curve of the organization. It

is also expensive but the results are big and sustainable compared to those unethical and

shortcut tactics and relationships.

One has to work hard to establish the brand equity practicing high standard of ethics.

The following long term self supportive cost effective chain of business iterations gets

activated again and again once ethical brand equity has been established. 04/08/2023

09:50 AMChhaya Sehgal 23

Page 24: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 24

Page 25: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 25

Beliefs

Identity

Vision

Mission

Purpose

Values

ETHICS

Goals

Targets Results build CORPORATE VALUE

“Wisdom denotes the pursuing of the best ends by the best means.”

– Frances Hutcheson

Page 26: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 26

“The best leaders operate in FOUR DIMENSIONS: VISION, REALITY, ETHICS AND COURAGE. These are the four intelligences, the four forms of perceiving, the languages for communicating that are required to achieve meaningful, sustained results.” – Peter Koestenbaum

Page 27: Professional Ethics

To us in Wipro our primary satisfaction comes not only from the robust financial results but from the fact that this success has been built upon a strong foundation of values.

Azim H. PremjiChairman, Wipro Corporation.

04/08/2023 09:50 AM

Chhaya Sehgal 27

Page 28: Professional Ethics

Wipro vs software companies

04/08/2023 09:50 AM

Chhaya Sehgal 28

Industry Score Board >> IT >> Software >> Large

Company Name Equity Gr. Blk Sales NP NP Var% Mkt. Cap. P/E

Digital G. Soft 33.92 287.06 814.12 110.25 -22 0 0HCL Technologies 64.55 632.06 1447.01 309.43 17 20092.8 83I-Flex Solutions 38.15 212.78 902.86 195.98 8 10679.33 56Infosys Tech. 137.26 2182.72 6859.66 1859.84 50 86913.03 47.8Mahin Brit. Tel 20.27 216.49 711.5 92.83 -46 0 0Patni Computer 27.58 366.46 875.6 194.41 -16 6141.38 31.6Polaris Software 49.12 311.16 668.97 58.38 -13 1142.53 20.4Satyam Computer 64.89 937.7 3464.22 751.22 39 26492.96 36.3TCS 48.93 1041.09 8051.1 2002.87 999 92418.98 47.9Wipro 285.1 1763.49 7233.16 1482.65 64 76991.26 53.5

Aggregate 769.77 7951.01 31028.2 7057.86 320872.27 47.06

Page 29: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 29

Wipro vs electric lighting companiesINDUSTRY SCORE BOARD >> Electric Lighting Systems

Company Name Equity Gr. Blk Sales NP NP Var% Mkt. Cap. P/E

Bajaj Electrical 8.64 122.61 652.96 13.54 318 471.7 39.3Crompton Greaves 52.38 808.56 2040.05 109.99 81 6175.86 58.7Dhanashree Elect 6.69 5.56 0.83 -0.02 33 0 0S V Electricals 5.27 8.38 8.89 -1.06 -54 0.32 0Satellite Engg. 3.42 7.24 5.38 -0.28 44 1.08 0Philips El India* 58.2 740.6 2263.1 98.56 23 0 0

Wipro 285.1 1763.49 7233.16 1482.65 64.00 76991.26 53.5

Aggregate 419.7 3456.44 12204.37 1703.38 83640.22 50.5

* - Results of 200412

Page 30: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 30

Wipro vs medical equipment companiesINDUSTRY SCORE BOARD >> Medical Equipment

Company Name Equity Gr. Blk Sales NP NP Var% Mkt. Cap. P/E

Advanced Micron. 5.28 9.74 54.45 0.79 23.00 23.94 34.90Bayer Diagnostic 1.57 18.67 67.76 6.00 5.00 78.07 13.00Innovation Medi 4.50 1.29 0.30 -0.85 0.00 4.99 0.00Maestros Medi. 4.55 34.15 19.77 0.53 141.00 11.40 20.90Shree Pacetronix 3.47 4.26 4.13 0.22 16.00 3.30 0.00Span Diagnostics 3.00 17.52 38.48 1.44 -35.00 13.97 10.10

Wipro 285.1 1763.49 7233.16 1482.65 64.00 76991.26 53.5

Aggregate 307.47 1849.12 7418.05 1490.78 77126.93 26.48

Page 31: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 31

Wipro vs solvent extraction companies

INDUSTRY SCORE BOARD >> Solvent Extraction

Company Name Equity Gr. Blk Sales NP NP Var% Mkt. Cap. P/E

Adani Wilmar 25.78 266.61 2001.75 1.23 -93.00 0.00 0.00Agro Tech Foods 24.37 57.05 1053.91 8.85 -3.00 362.99 41.40Guj. Ambuja Exp 27.86 286.64 1116.71 27.24 9.00 344.77 13.00Marico 58.00 170.41 947.79 73.44 26.00 3190.00 46.20MP Glychem Inds 21.11 124.38 1075.86 11.42 -2.00 60.37 5.40Ruchi Health Fo. 14.17 79.82 771.81 4.68 42.00 0.00 0.00Ruchi Soya Inds. 29.93 525.47 3895.14 43.55 28.00 1027.95 24.70

Wipro 285.1 1763.49 7233.16 1482.65 64.00 76991.26 53.5

Aggregate 486.32 3273.87 18096.13 1653.06 81977.34 30.70

Page 32: Professional Ethics

Mantras for excellence• First, we create an obsession with excellence.

• Second, we need to build a collective self-confidence.

• Third, we must understand the difference between perfection

for its own sake and excellence.

• Fourth, we must realise that we cannot be the best in

everything we do. We must define what we are or would like to

be best at and what someone else can do better.

• Fifth, we must create processes that enable excellence.

• Sixth, we must create a culture of teaming.

• Seventh, invest in excellence for the future.

• Finally, excellence requires humility.

AZIM PREMJI04/08/2023 09:50 AM

Chhaya Sehgal 32

Page 33: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 33

“The surest way to reveal one’s character is not

through adversity but by giving them power.” –

Abraham Lincoln

Page 34: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 34

•Tata Steel led by Ratan Tata, Chairman of Tata Sons, and Muthuraman, CEO of Tata Steel in 2006 and 2007 spent millions of dollars on education, health, and agricultural development projects,in 800 villages near Jamshedpur the headquarters of Tata Steel.

•Though the business carries his name, he only draws a salary from Tata Sons, Ratan Tata takes personal modesty very seriously and what really excites him is his ability to combine the philanthropic heritage of the Tata group with modern business sense.

Page 35: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 35

•He has clearly developed a global footprint for the Tata companies by the aggressive acquisitions of Tetley Tea (UK), Daewoo Commercial vehicles (Korean company) and Corus Steel (UK) (Media Reports, Tata Sons, 2007).

•Through his development of a now much hyped low cost people’s car, “Nano” Ratan Tata reinforces his legacy of commitment to the common man while at the same time recognizing the explosive profit potential in the growing segment of the upwardly mobile in India.

•Ratan Tata is a leader with a strong sense of ethics and who has tried to be competitive in the new era of globalization while continuing to maintain the hallowed legacy of benevolent paternalism of its founder Jamshetji Tata.

Page 36: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 36

“The supreme quality for leadership is unquestionably

INTEGRITY.Without it, no real success is

possible no matter whether it is on a section gang, a football

field, in an army, or in an office.”– Dwight David Eisenhower

Page 37: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 37

NARAYANA MURTHY, is one of the co-founders and the first CEO and Chairman of the Indian IT Outsourcing company Infosys.•Founded in 1981, Infosys was first Indian company to be listed on the US stock exchange, (Nasdaq) in 1999.•In 2007, Infosys had over 50,000 employees and over $2 billion in revenues.• The company has been voted “the best employer in India” two years in a row in a survey conducted by Hewitt Associates.•In 2006 Narayana Murthy was voted as the most admired CEO in India for the fifth year in a row.•Several factors make Infosys stand out, but the most significant one has been its founder CEO AND CHAIRMAN, NARAYANA MURTHY.•His ethics, values and leadership style have shaped the company’s reputation, growth and performance.

Page 38: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 38

Narayanamurthy, the CEO of Infosys was exemplified for his humility

• “ I want Infosys to be a place where people of different genders, nationalities, races, and religious beliefs work together in an environment of intense competition but utmost harmony, courtesy, and dignity to add more and more value to our customers day after day.” •Despite all the accolades and the praise he has received, Narayana Murthy remains simple, humble and caring father figure for the employees of Infosys (Wikipidea, 2007).

Page 39: Professional Ethics

Conventional Business Equation

S + E = R S = Strategy

E = Execution

R = Results

04/08/2023 09:50 AM

Chhaya Sehgal 39

Source: The Speed of Trust – Stephen M R Covey

Page 40: Professional Ethics

(S + E) X T = R

T = TRUST

04/08/2023 09:50 AM

Chhaya Sehgal 40

Revised Business Equation

Source: The Speed of Trust – Stephen M R Covey

Page 41: Professional Ethics

Why is Trust important for business?

04/08/2023 09:50 AM

Chhaya Sehgal 41

Trust Time Cost

Whether you are paying THE TRUST TAX or reaping THE TRUST DIVIDEND and what is THE TRUST INDEX of your Business?

Source: The Speed of Trust – Stephen M R Covey

Page 42: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 42

Business Benefits of TRUSTProductivity

• Caliber of Employees

• Quality Products

• Innovation & Risk-Taking

Costs• Turnover Costs• Resistance to

Change• Health-Care

Costs

Result: Increased Customer

Loyalty & Profitability

Page 43: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 43

Essential elements of a Great Place to Work ®

TRUSTINDEX

Credibility

Respect

Pride

Fairness

Camaraderie

Two way Communication Manager’s Competence

Levels of Integrity

Professional SupportCollaboration

Demonstrated Caring

EquityImpartiality

Justice

For the JobAbout my Team

With the Organization

Individuality is valuedWelcoming AtmospherePart of something larger

Page 44: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 44

Great Place to Work®

An Emphasis on People

Leaders articulate a vision and values, and commit to creating a great workplace.

Managers at all levels must consistently live the values and foster trust, pride and camaraderie.

Employees recognize their important role in creating a great workplace and support trust-building behaviors.

Page 45: Professional Ethics

A Great Place to Work® is one where you:

EmployeeEmployee

...have pride in what you do...

JobJob

...and enjoy the people you work with.

Other EmployeesOther Employees

Trust the people you work for...

ManagementManagement

Relationships are the keyChhaya Sehgal 45 04/08/2023

09:50 AM

Page 46: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 46

•“Just as TRUST is the key to all relationships, so also is TRUST the glue of organisations. It is the cement that holds the bricks together.•I have also learned that TRUST is the fruit of the trustworthiness of both people and organisations. •TRUST comes from three sources: the personal, the institutional, and one person consciously choosing to give it to another – an act that leads me to feel your belief that I can add value.•YOU GIVE ME TRUST AND I RETURN IT.•TRUST is a verb AND a noun. When it’s both a verb and a noun, it’s something shared and reciprocated between people. •That is the essence of how a person becomes the leader of their business. •THEY MERIT TRUST BY GIVING IT.” – Stephen Covey

Page 47: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 47

The 4 cores of Credibility4. Results

Competence

3.Capabilities

2. Intent

Character

1.Integrity

CORPORATE VALUE

“CHARACTER, in the long run, is the decisive factor in the life of anindividual and of nations alike.”– Theodore Roosevelt

Page 48: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 48

Values & Ethics

Page 49: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 49

People who have VALUES have no Price Tag and neither do they Value themselves

Page 50: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 50

It is Priceless - Value

•The moment Price is set on Values, the values lose their value

•No possible gain can make up for that loss

Page 51: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 51

What Money Won’t Buy•It is not uncommon to hear that everyone has a price

•People who talk that language are really up for sale themselves

•People with “CHARACTER”, “INTEGRITY” and the “RIGHT VALUES” are not for Sale

Page 52: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 52

How Does Our Value System Change?

•With constant Exposure, what is intolerable becomes acceptable and translates into involvement

•And all through the Transition process, Justification keeps taking place

Page 53: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 53

Page 54: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 54

Page 55: Professional Ethics

An integral part of a good Value System is Commitment

04/08/2023 09:50 AM

Chhaya Sehgal 55

Commitment

Our strongest relationships in Business or Personal

lives are tied together with the invisible something

called Commitment.

Page 56: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 56

Commitment•When our value system is clear it becomes a lot easier to make Decisions and Commitments

•Unkept commitments result in dishonest behavior

• No relationship whether personal or professional, will work if people said something to the effect….

Page 57: Professional Ethics

Today, breaking a promise is considered no big deal

04/08/2023 09:50 AM

Chhaya Sehgal 57

Commitment continued…..

•I will try but I can’t Commit•I will do it but don’t count on me•I will be there if I can, but don’t get your hopes up•I will be there, so long as you do well•I will be there so long as you are in good health•I will stick with you till I find something better

Page 58: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 58

Page 59: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 59

A letter from Satyam EmployeeDear All, I (Satyam Employee) am deputed at client location and came across a very interesting conversation in cafeteria yesterday.One of my co-worker, also deputed with the same client through some lesser known two room company, mustered guts to ask me sarcastically in front of entire team, "So, Satyam is gone! What are you guys planning to do now?" In normal circumstances, I have a habit to not to reply to lose talks, but in front of entire team.... I thought I need to fix this guy's thought process. I asked him, as my military training has imbibed in me the habit to fight till last breadth, "Who says Satyam is gone when I am very much alive here and committed to create value on behalf of my company?". He shot back, "Hello Mr., your chairman has resigned, you guys are facing financial turbulence and you still have a face to say that Satyam is not gone!" At this juncture, I thought of replying to this guy in his own language. I asked him, "Tell me, what will you do and where will you go if our

Page 60: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 60

country India was not there?" He was not prepared for thislevel of thought and asked back, "What a stupid question, How can India be gone, it is a country?" I asked him back, "Country! What makes a country? Land? Economy? Our Prime Minister? Our President? Our Geography? Or the PEOPLE? If our PM resigns, will you say India is gone? If our economy faces a slowdown, will you say India is gone? But yes, if the people of a country are lost for any reason, we will say that country has no meaning. Who cares of vast land of Antarctica today which has just one permanent resident, Father Georgy? Which country does it belongs to? Why does not it have any government? Why does not it have any economy? Or, how many countries were there when humans used to hunt for food in pre-historic times? Countries, Wealth, Infrastructures and booming economies are nothing but creations of efforts of PEOPLE, and they do not have any existence on their own. And the final blow was, "When one man can create Satyam as an organization of 53,000 people, why not 53,000 committed people can rebuild one SATYAM?"

Page 61: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 61

Commitment

When a person makes a commitment to someone, he is really saying, “You can count on me no matter what,” and “I will

be there when you need me.”

Page 62: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 62

Commitment•Unconditional Commitment says, “ My Behavior is predictable in an unpredictable future.”

•Regardless of the uncertainty, Commitment says “You can Count on me.”

•A person who makes a commitment is willing to give up a lot.

Page 63: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 63

CommitmentCommitment Says:

1. I am willing to sacrifice because I care.

2. I am a person of Integrity and you can Trust me.

3. I will not let you down.

4. Despite pain, I will still be there.

5. I will not let you down in GOOD TIMES OR IN BAD TIMES.

Page 64: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 64

Commitment

•Commitment is not like a legal Contract which is “Enforceable”

•It’s foundation is not a signed piece of paper but CHARACTER, INTEGRITY, and EMPATHY

Page 65: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 65

Commitment

•Commitment is not like a legal Contract which is “Enforceable”

•It’s foundation is not a signed piece of paper but CHARACTER, INTEGRITY, and EMPATHY

Page 66: Professional Ethics

• Commitment to Customer implies giving “Good Service”

•Commitment to Job implies “Integrity”

•Commitment means not quitting at the first option or sign of problems

Individuals with STRONG COMMITMENTS build STRONG ORGANIZATIONS

04/08/2023 09:50 AM

Chhaya Sehgal 66

Commitment

Page 67: Professional Ethics

• Commitment to Customer implies giving “Good Service”

•Commitment to Job implies “Integrity”

•Commitment means not quitting at the first option or sign of problems

Individuals with STRONG COMMITMENTS build STRONG

ORGANIZATIONS04/08/2023

09:50 AMChhaya Sehgal 67

Commitment

Page 68: Professional Ethics

Where the Value system is conflicting, people cannot live in the same home, they cannot work in the same Organization

Commitment To Values

Chhaya Sehgal 68 04/08/2023 09:50 AM

Page 69: Professional Ethics

Old Values Are Not ObsoleteValues considered Universal are:

• Responsibility, • Integrity, • Commitment, and • Patriotism

Chhaya Sehgal 69 04/08/2023 09:50 AM

Page 70: Professional Ethics

70

Old Values Are Not Obsolete

• They have stood the test of time and will be here forever

• These values have the same meaning in New York as in New Delhi or New Zealand

• They are UniversalChhaya Sehgal 70 04/08/2023

09:50 AM

Page 71: Professional Ethics

• Values and Ethics are not just designed for good times, but also to prevent bad times

• They are like the laws of the land which you need when people are good and you need even more to protect them from the bad

Ethics

Chhaya Sehgal 71 04/08/2023 09:50 AM

Page 72: Professional Ethics

• Values and Ethics are not just designed for good times, but also to prevent bad times

• They are like the laws of the land which you need when people are good and you need even more to protect them from the bad

• That is why the conscience hurts when making an unethical choice and does not hurt when making a wrong personal choice

Ethics

Chhaya Sehgal 72 04/08/2023 09:50 AM

Page 73: Professional Ethics

• Those who believe that Ethics cannot be generalized but vary with every situation

• Come up with Justification and keep changing their Ethics from situation to situation, and person to person

• This is called “SITUATIONAL ETHICS” This is Ethics of Conveniences rather than Conviction

Chhaya Sehgal 73 04/08/2023 09:50 AM

Situational Ethics

Page 74: Professional Ethics

• An Organization becomes good or bad, based on the Ethical Values of Individuals

• And what gives Organization its strength is ethical values

Benchmarks

Chhaya Sehgal 74 04/08/2023 09:50 AM

Page 75: Professional Ethics

Chhaya Sehgal 75 04/08/2023 09:50 AM

Benchmarks• People are changing moral values by giving

new names and it is glamorized today• Liars are glorified as Extroverts with an

Imagination• "everyone does it“

“WE MUST BECOME THE CHANGE WE SEEK IN THE WORLD.”

– Gandhi

Page 76: Professional Ethics

“We want THAT EDUCATION by which character is formed, strength of mind is increased, the intellect is expanded, and by which one can stand on one’s own feet”. Swamy Vivekananda

Business Ethicists have noted a common belief of MBA faculty that, since their students are adults, they are too mature to be taught ethics. It is often stated that you can't teach business ethics. Many recent corporate scandals are stated as evidence.

04/08/2023 09:50 AM

Chhaya Sehgal 76

Page 77: Professional Ethics

A Business Week survey of over 2700 readers found that business people question the utility of business ethics education, and the majority of the respondents said that ethics education is better taught outside of the business school. (Business Week Online, 2003) Thus, it is clear that stakeholder scepticism represents an obstacle to the acceptance, prioritization, and development of EFFECTIVE BUSINESS ETHICS EDUCATION.

04/08/2023 09:50 AM

Chhaya Sehgal 77

EFFECTIVE BUSINESS ETHICS EDUCATION

Page 78: Professional Ethics

•Some believe that by the time students enrol in college-level business courses their values have already been formed, rendering ethics education a waste of time.

•Others have argued that business is best conducted as a self-interested venture, suggesting that ethics are not of prime importance in a business context.

•Finally, others point to the failure of ethics training programs provided by businesses to prevent their employees' unethical behaviour.

Arthur Andersen, in particular, developed a reputation for integrity and led the business community in ethics training, while at the same time Andersen auditors and consultants frequently behaved unethically, contributing to the collapse of Enron and WorldCom (Toffier, 2003).

04/08/2023 09:50 AM

Chhaya Sehgal 78

EFFECTIVE BUSINESS ETHICS EDUCATION

Page 79: Professional Ethics

Myth no. 1. Values Are Formed Prior to Higher Education

•Studies that have compared the moral development of freshmen to the moral development of seniors in colleges have shown a significant and positive effect for educational experiences •Additional longitudinal studies indicate that even a couple of years of college experience produces higher moral development than no college experience, and that more college experience in general promotes greater moral development than less college experience.• Statistical differences between these groups persist even after age is controlled

04/08/2023 09:50 AM

Chhaya Sehgal 79

Page 80: Professional Ethics

Myth no. 2. Ethics Are Irrelevant in a Business Context

Milton Friedman, Adam Smith, and Gordon Gecko (who proclaimed that "greed is good" in the 1987 movie “Wall Street”)

•Milton Friedman's (e.g., 1970) writings on the social responsibility of businesses were not intended to advocate unethical, selfish behaviour in the name of capitalism.•Friedman believes that self-interests must be exercised within the law, in accord with ethical customs, without deception or fraud, and in open and free competition (James & Russekh, 2000).04/08/2023

09:50 AMChhaya Sehgal 80

Page 81: Professional Ethics

Myth no. 2. Ethics Are Irrelevant in a Business Context; continued….

•Similarly, Adam Smith did not equate the term "self-interest" to greed or selfishness (James & Rassekh; 2000; Williams, 1997).

•In 1759 Smith published The Theory of Moral Sentiments. Therein Smith describes self-interested behaviour within the bounds of self-control, regard for the well being of others, an internal sense of justice, and externally enforced justice.

04/08/2023 09:50 AM

Chhaya Sehgal 81

Page 82: Professional Ethics

Myth no. 3. Teaching Business Ethics Does Not Work

•A third reason for skepticism stems from the escalating occurrence of business related scandals. •Teaching business ethics must not work given the many instances of corporate scandal within firms that provide ethics training: 1. Moreover, a 2002 Conference Board Survey found that a majority of corporate ethics officers did not believe that Enron could have prevented their internal corruption and ultimate demise with ethics training (Taub, 2002). 2. If ethics training does not prevent unethical behaviour, how can business ethics education be efficacious?

04/08/2023 09:50 AM

Chhaya Sehgal 82

Page 83: Professional Ethics

Myth no. 3. Teaching Business Ethics Does Not Work ; continued…..

What are reasonable expectations for an ethics training program or for business ethics education?•Ethical behaviour is a function of a variety of personal and situational factors including moral development, norms, coercion, regulations, self-control, and ethics training (Trevino, 1986).• The issue therefore should be: How business ethics education can be a strong link in the chain, rather than searching for ways in which business ethics education alone can eradicate unethical behaviour.

04/08/2023 09:50 AM

Chhaya Sehgal 83

Page 84: Professional Ethics

Goals for Business Ethics Education

GOAL 1--AWARENESS •Business ethics education should enhance students' awareness of and sensitivity towards the ethical consequences of their actions.

•This is perhaps the most common goal of business ethics education, and for good reason. For example, when managers see parties harmed by their decisions they develop greater sensitivity and develop alternative courses of action (Molinsky & Margolis, 2005; Wright & Barling, 1998).

04/08/2023 09:50 AM

Chhaya Sehgal 84

Page 85: Professional Ethics

Goals for Business Ethics Education

GOAL 2- MORAL DEVELOPMENT•Business ethics education should promote students' moral development; an individual's moral development strongly influences decisions regarding right or wrong choices. •Due to the critical role of moral development in determining whether an individual is prone to act ethically, and the evidence indicating that educational experiences can foster moral maturity, an important goal of business ethics education is enhancing moral development.

04/08/2023 09:50 AM

Chhaya Sehgal 85

Page 86: Professional Ethics

•Business ethics education should promote students' ability to handle complex ethical decision making.•For example, consider the dilemma a sales representative faces when asked whether her firm's product is the best available in the market when, in fact, she believes the value of a competitor's product is significantly greater. Approaching the dilemma from a virtue ethics perspective, the most ethical course of action might appear to be an honest disclosure of her opinion. However, a MORE COMPLETE ETHICAL ANALYSIS OF THE DILEMMA would consider factors such as duties to her employer and to her family for which she is a provider. •Effective business ethics education equips students with frameworks for recognizing the complexity of ethical dilemmas.

04/08/2023 09:50 AM

Chhaya Sehgal 86

Goal 3--Handling Complex Issues

Page 87: Professional Ethics

Executive Ethical LeadershipThe Good News!

Everyone we interviewed (40 interviewees) was able to quickly think of someone they would identify as an executive ethical leader and answer questions about that person for about an hour. That suggested to us that executive ethical leadership is not as rare as it may seem in the headlines.

Linda K. Trevino, Ph.D. Copyright 2005

Smeal College of Business, The Pennsylvania State University

Ethical leadership research conducted

with Laura Hartman and Michael Brown

supported by the Ethics Resource Center Fellows Program

Chhaya Sehgal 87 04/08/2023 09:50 AM

Page 88: Professional Ethics

Executive Ethical Leadership Reputation Matrix

Weak Strong

Strong

Weak

Moral Person

MoralManage

rHypocritical Leader Ethical Leader

Unethical Leader

Ethically neutral (silent) leader

?

Chhaya Sehgal 88 04/08/2023 09:50 AM

Page 89: Professional Ethics

Ethical Leadership Example

High

High

Moral Person

MoralManager

Ethical Leader

James Burke, Johnson &

JohnsonKnown to be a person of the highest integrity. Reinvigorated and revised corporate credo, launched annual credo survey after Tylenol crisis, required action plans to address problems, handled ethical violations swiftly

Chhaya Sehgal 89 04/08/2023 09:50 AM

Page 90: Professional Ethics

Unethical Leadership Example

Low

Low

Moral Person

MoralManage

r

Unethical LeaderAl Dunlap,

Sunbeam

Lied to employees & financial analysts, was condescending, belligerent and disrespectful of employees, made decisions and rewarded employees based upon bottom line only, left company crippled, accused of filing false financial reports - settled with SEC for half million dollars.

Chhaya Sehgal 90 04/08/2023 09:50 AM

Page 91: Professional Ethics

Hypocritical Leadership Example

Strong

Moral Person

MoralManage

r

Weak

Hypocritical Leader

Jim Bakker of PTL Ministries

Talked about ethics, religion (doing “God’s work”). Yet, employees became aware of deceptive financial practices, conflicts of interest, lying to donors, theft of donor contributions, sexual liaisons, etc!

Chhaya Sehgal 91 04/08/2023 09:50 AM

Page 92: Professional Ethics

Rules of Ethical Leadership

04/08/2023 09:50 AM

Chhaya Sehgal 92

•Play By the Rules: Compete fiercely and fairly •Set the example: risk, responsibility, reliability•Revenge is unproductive: Learn to move on•Operate businesses and organizations as if they are family-owned

Page 93: Professional Ethics

Winners Never Cheat There are no moral shortcuts in the game of

business -- or life. There are, basically, THREE KINDS OF PEOPLE: the unsuccessful, the temporarily successful, and those who become and remain successful.

THE DIFFERENCE IS CHARACTER. Jon M. Huntsman

Chhaya Sehgal 93 04/08/2023 09:50 AM

Page 94: Professional Ethics

Implications for Business Education

• Let’s put the “business” back into “business schools”.•Value creation and trade is the central idea of business schools,•Ethics need Much stronger connections with the practice of business.•We need to focus on the almost lost art of “business judgment”.

04/08/2023 09:50 AM

Chhaya Sehgal 94

Page 95: Professional Ethics

04/08/2023 09:50 AM

Chhaya Sehgal 95

Implications for Business Education•More prominence for entrepreneurship, leadership, and ethics….especially as thesesubjects are connected to strategy.

•Commit to improving the practice and profession of management.

•Commit to producing leaders that create lasting value to society.

Page 96: Professional Ethics

Inculcation of ethics though education

According the Sathya Sai Baba the following five values are necessary for students.v Right Conduct v Peace v Truth v Love v Non-Violence

04/08/2023 09:50 AM

Chhaya Sehgal 96

Thinking with love is truth, Feeling with love is peace Acting with love is right conduct, Understanding with love is non-violence. - Sathya Sai

Page 97: Professional Ethics

.Everyday Values We Learned as Children (But May Have Forgotten) by Jon M. Huntsman (Wharton School Publishing)

. Speed of Trust by Stephen Covey

. The 8th Habit by Stephen Covey

.Building a Great Place to Work

.“Ethical Leadership and Creating Value for Stakeholders” R. Edward Freeman, University of Virginia.Linda K. Trevino, Ethical leadership research, The Pennsylvania State University . Google Search. Sharad Heda CEO- Global Tech Support Microland Limited. Atul Hadap VP- Sales & Marketing Operations WLS

04/08/2023 09:50 AM

Chhaya Sehgal 97

Acknowledgements and Bibliography