TITLE OF PAPER : INDIAN ETHOS & MANAGEMENT

CODE OF PAPER : MBA/PGDM 110

SECTION A
Q.1.1. Different types of management ethics
1. Immoral ManagementA style devoid of ethical principles and active
opposition to what is ethical.
2. Moral ManagementConforms to high standards of ethical behavior.
3. Amoral Management
Intentional - does not consider ethical factors
Unintentional - casual or careless about ethical considerations in
business
Q.1.2. The factors which lead to unethical behavior
Greed
One of the main causes of unethical behavior is greed. A person often chooses to act
immorally or unethically for personal financial gain. In business, there are a number
of opportunities for employees and employers to do the wrong thing.
Environment
Sometimes, a person acts unethically in business because his employer condones the
behavior.
Career Advancement
A person acts unethically because she believes it helps her career. An unethical act is
used as a means of impressing a superior or hurting the career of a competitor.
Ignorance
Ethical conflicts or violations are not always transparent, and it's easy for an
employee to perform an unethical act without knowing it.
Q.1.4. What is Consumerism?
Consumerism is an economic policy that states that the market is shaped by the choice
of the consumers. It outlines the fundamental rights of the consumers including right
to safety, right to choice and right to information. Consumerism is a phenomenon that
has existed since the earliest of civilizations and continues to shape the modern
market.
Consumerism basically describes the inclinations and tendencies of consumers
towards various products and brands. This is mainly shaped by what the people
perceive as a status symbol.

Q.1.5. The stakeholders of the organization?

The main stakeholders are:

Investors. An organization promises the investors an income that is

better than what they could get from any other place.
Management. Managers are promised a good income if they can
develop the organization and make it profitable.
Employees. The employees produce and sell the products and
services to the external customers.
Customers. The customers provide the money that allows an
organization to meet its obligations to the first three stakeholders.
Suppliers. any organization that can exist without good suppliers.
Employees families. An organization uses about 40 percent of the
family breadwinners waking hours per week even if he or she puts in
no overtime.
Community. An organization needs the community to survive
because the community builds roads, provides electricity, police
protection, and so on.

Q.1.6. The fundamental rights provided by Indian Constitution

Constitution of India has provided some rights to all its citizens called as Fundamental
rights or Human rights in India.
RIGHT TO EQUALITY
This is one of the most important fundamental rights provided to all the Indian
citizens under the article 14, 15, 16, 17 and18 of the constitution.
RIGHT TO FREEDOM
Under the articles 19, 20, 21, and 22 Indian constitution provides Right to certain
freedoms to every citizen.
RIGHT AGAINST EXPLOITATION

As per articles, 23 and 24 of Indian Constitution Right against exploitation.

RIGHT TO FREEDOM OF RELIGION
This right is covered under the article 25, 26, 27 and 28 of Indian constitution
providing all kind of religious freedom to all the citizens.
CULTURAL AND EDUCATIONAL RIGHTS
the constitution has provided special human rights under article 29 and 30 to protect
the interest of India having different languages, religions and cultures.
RIGHT TO CONSTITUTIONAL REMEDIES
Under this right citizen has, right to move his motion in court of law in case if there is
any denial of his fundamental human rights.
Q.1.7. An employer's basic obligations
An employer's basic obligations that are implied in any employment relationship are
to:

pay the employee the agreed wage

provide the employee with a safe workplace

not discriminate against an employee on any of the illegal grounds, such as

race, sex, ethnic or national origins, sexual orientation or political opinion
treat the employee fairly and reasonably, and
not act in a way that destroys the relationship of trust and confidence between
them.

SECTION B
Q.2. The benefits of managing business ethics to organizations.
business ethics is an integral component of company culture, but organizations must
actively promote their ethical policies to fully leverage the advantages. A code of
ethics can be viewed as either an administrative formality with no practical use or a
dynamic, comprehensive guideline for making company decisions.
Strategic Decision-Making

Small business owners make decisions at the executive level of their company. A code
of ethics in a small business can provide a foundation on which to base all decisions
that affect internal and external stakeholders, such as employees or residents in the
local community.
Day-to-Day Decisions

Company owners are not the only employees in a small business who make decisions.
Due to the size of small businesses, front-line employees often have less supervision
and more personal responsibility than employees of large corporations. This makes it
even more important for all employees to fully understand the expectations of the
company and the ethical guidelines in which to make decisions.
Company Reputation

Small businesses work hard to gain competitive advantages. Gaining advantages from
a positive reputation in the marketplace can be enough to secure a sizable market
share from your larger competitors. Proudly displaying your code of ethics on your
website or in press releases, while taking care to ensure that your actions are always in
line with your words, can garner a positive image among consumers and job-seekers,
creating a loyal customer base and helping to develop your brand image.
Legal Considerations

The legal benefits of having a code of ethics in place make ethics statements a virtual
requirement of doing business. All of the advantages mentioned above can serve to
keep your company out of legal trouble, which, while important to every company, is
especially important for sole proprietorships and partnerships that do not enjoy
personal liability protection.
A comprehensive code of ethics can provide extra protection if a single employee
commits a criminal act in the name of your company, as well. If a single purchasing
manager defrauds your suppliers, for example, your code of ethics can help to
convince a court that your company does not endorse that kind of behavior.
Q.3. Explain briefly Indian ethos for management
Indian Ethos Management:

Oxford defines ethos as The characteristic Spirit and Beliefs of community/people

which distinguishes one culture from the other. Indian ethos is drawn from the Vedas,
the Ramayana, Mahabharat, the Bhagwadgita, and Upanishads. Right from the Vedic
age it has been discovered two basic universal truths of life.
1. The essential infinitude and divinity of all souls
2. The essential oneness and solidarity of universe and all life.
1. The Basic Principles:
a) Tat Tvam Asi: You are That (Supreme) - Everybody can make himself a Genius.
b) Aham Brahmasmi: I have immense potential. I can make the impossible possible.
2. Why Work?
Atmano Mokshaya Jagat Hitaaya Ca:
- For my personal growth
- For the Welfare of the World
3. What is work?
a. Yagnayacharatah karma: Work is to be done with the spirit of Yagna
(Teamwork, Selflessness).
b. Parasparam Bhavayantah: Nurture each other (Win-win approach).
4. How to work?
Seva + Tyag:
Serve others. Give your best for the good of others (CSR)
5. Spirit of Work:
Yogah Karmasu Kaushalam: Dexterity & Excellence in action is Yoga.
The Resources:
a) Sukshma or the subtle subjective, intangible factors are equally important than
sthula or gross, concrete, objective, tangible factors.

b) Karma-Kshetra is Dharma-Kshetra-implies that one should treat the workplace

as sacred and keep it clean and bring in orderliness and cleanliness.
Continuation refer attachement
Q.5. Code of Conduct and Ethics for Public Sector Executives

Public employment involves a position of trust. Public officials are expected to act in
the public interest and to demonstrate ethical behaviour in carrying out their official
duties.

1. Personal and professional behaviour

2.1 To maintain public confidence in the integrity of the public sector, it is essential
that public sector executives exhibit, and are seen to exhibit, the highest ethical
standards in carrying out their duties

2. Relationships between executives and Government

3.1 Executives are expected to be responsive to the Government of the day and
support the Government of the day to implement decisions and policy, regardless of
which political party or parties are in office.

3. Use of official information

5.1 Other than as required by law, in the course of duty, when called to give evidence
in court or when proper authority has been given, an executive should not disclose
confidential information or documents acquired in the course of his or her
employment.

4. Use of public funds

6.1 Public funds should only be used for the purposes for which Parliament
appropriated them and as authorised by the Government.

5. Use of official facilities and equipment

7.1 Executives must not use the services of other officers and official facilities must
not be used for private purposes, unless official permission has been granted.

6. Financial and other private interests - disclosure and conflicts

8.1 Financial interests (pecuniary interests) may include real estate, shares, debts,
gifts, business interests and investments. Other interests include political ties, family
relationships or involvement with organisations (commercial, political, religious or
other).

7. Bribes, gifts, benefits, travel, hospitality

9.2 Executives must not solicit or accept any bribe, or other improper inducement.

8. Political participation

10.2 Executives should not, in their official role, participate in the political process
(eg by attending or participating in a political activity sponsored by the executives
Minister or by preparing tendentious addresses or speeches).

9. Outside employment

11.1 Executives must obtain the written consent of their "employer" before continuing
in, or taking up, any other employment or private practice. The same applies to being
appointed to or engaged in any significant position whether or not remunerated.

10. Reporting corrupt conduct, maladministration and waste.

12.1 Corrupt conduct, maladministration and serious and substantial waste of public
resources should be reported.

11. Responsibilities of Executives who leave the public sector.

14.2 When an executive is considering accepting a job offer which bears any close or
sensitive connection with current activities, the executive is expected to declare the
conflict to his/her employer, in good faith.

Q.7.Business:
An organization or enterprising entity engaged in commercial, industrial or
professional activities. A business can be a for-profit entity, such as a publicly-traded
corporation, or a non-profit organization engaged in business activities, such as an
agricultural cooperative.
Business environment
Business environment is the sum total of all external and internal factors that
influence a business. You should keep in mind that external factors and internal
factors can influence each other and work together to affect a business.
FACTORS
External Factors

Political factors are governmental activities and political conditions that may
affect your business.

Macroeconomic factors are factors that can affect your business such as
interests rates, unemployment rates, currency exchange rates, consumer

confidence, consumer discretionary income, consumer savings rates, recessions,

and depressions.
Microeconomic factors are factors that can affect your business such as
market size, demand, supply, relationships with suppliers and your distribution
chain and the number and strength of your competition.
Social factors are basically sociological factors related to general society and
social relations that affect your business.
Technological factors are technological innovations that can either benefit or
hurt your business.
Internal Factors
Organizational culture is the framework of values, vision, norms, and
customs shared by the members of an organization. Your business culture affects
how the employees in your business interact with each other, its customers and
other stakeholders.
Organizational structure is the manner in which the business is organized to
conduct its activities. Organizations can be organized fairly flat, with very few
levels of hierarchy, or organized very vertical, with many levels of hierarchy.
Management structure is the manner in which your business is managed.
Management may be centralized, where all decision-making is made at the top
and filtered down throughout the business, or it may be decentralized, where the
decision-making is distributed throughout the organization and decisions are
made closer to the relevant work activities or problems.