study meterials ime
TRANSCRIPT
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.
1
DJ/IME/2013-2014
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
2
DJ/IME/2013-2014
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
3
DJ/IME/2013-2014
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
4
DJ/IME/2013-2014
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
5
DJ/IME/2013-2014
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.
6
DJ/IME/2013-2014
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.
7
DJ/IME/2013-2014
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
8
DJ/IME/2013-2014
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
9
DJ/IME/2013-2014
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?
10
DJ/IME/2013-2014
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
11
DJ/IME/2013-2014
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.
12
DJ/IME/2013-2014
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.
13
DJ/IME/2013-2014
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.
14
DJ/IME/2013-2014
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.
15
DJ/IME/2013-2014
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.
16
DJ/IME/2013-2014
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
17
DJ/IME/2013-2014
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
18
DJ/IME/2013-2014
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.
19
DJ/IME/2013-2014
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
20
DJ/IME/2013-2014
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
21
DJ/IME/2013-2014
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.
22
DJ/IME/2013-2014
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.
23
DJ/IME/2013-2014
(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
24
DJ/IME/2013-2014
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.
25
DJ/IME/2013-2014
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
26
DJ/IME/2013-2014
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
27
DJ/IME/2013-2014
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.
28