VALUES.

WHAT ARE VALUES?

VALUE

The word value is derived from a

French word, Valoir which means the
worth, merit, usefulness or importance
of a thing.

Values are prescriptive belief which

depicts what is good and what is bad.

All port described a value as a belief

upon which one acts by preference.
When we place importance on
something that we cherish we are
valuing that trait, ideal, or
characteristic.

Values describe what managers try to

achieve through work and how to
behave.

Values asthe
highestpsychological form for
accomplishment.

Dataare

mental facts derived from

sense observation.
Informationis data organized by the
physical mind into meaningful
relationships.
Thoughtsare specific conclusions or
observations drawn from the
information.
Ideas are generalized conceptions

 Opinionsare

thoughts which the mind

endorses and the ego identifies as its
own.
Beliefsare ideas which the mind
endorses and the mental ego identifies
with as true for its life.
Attitudesare opinions endorsed and
energized by the vital ego.
Valuesare idealized conceptions that
are endorsed by the personality.

FEATURES OF VALUES

Values are the core of personality and

are a powerful force affecting
behaviour.

Values contain a judgmental element in

that they carry an individuals ideas as
to what is right or wrong.

Values are not fixed, they change over

time.

Values have both content and intensity

attributes. The content attribute
indicates that a mode of conduct of
existence is important. The intensity
attributes specifies how important it is.

Many values are relatively stable and

enduring.

VALUE FORMULATION

Genetic source
Environmental source
Influence of superiors
Media
Values describe what managers try to
achieve through work and how to
behave.

ORGANIZATIONAL VALUES.
--Sears' commitment totrusting the
customer.
-- Apple Computer's belief in the
values ofsolving problems of society.
-- Marriott's values ofsystemization
and standardization.
DO YOU UNDERSTAND?

VALUES AND GOALS

STATEMENT
Businesses and other organizations
develop strategic plans in which
they list out their goals and values.
E.g., one company indicated, "Provide
growth opportunities for our
employees. Create economic value for
our customers and shareholders.
Return value to the communities we
serve."

SUMMARY OFVALUES IN
COMPANY
The greatest potentials for the growth of
any company are generated by a
commitment to high corporate values.
By values, we mean the qualitative
goals which the company strives to
achieve in all its activities.
Values release and direct energy,
motivate people, generate profits and
promote non-stop expansion.

Cont
Values

are the key to energizing the

fivegrowth engines of a company; market,
products & services, organization, people,
and finance.
Values raise the quality of corporate
energies and elevate work to a higher level.
There are three types of values-physical,
organization and psychological-which differ
in the level and intensity of the energy they
release.

UTILITY OF VALUES IN
BUSINESS:
Values

release energy because they

motivate people.
Values motivate people to work
together collectively.
Values are like ever-receding or neverending goals. The higher the values,
the more the energy and effort required
to achieve and sustain them. The more
you pursue them, the greater the
energy they release and put into

Cont
Quality

of performance on every job,

every activity, and every act can be
accurately assessed in terms of values.
Companies which rated their
implementation of key corporate values
the highest also reported the highest
levels of revenue growth and
profitability in their respective
industries.
Improving corporate performance on a
single value can virtually transform the

Cont
Values

are the most powerful way to

release and harness the company's
latent, unutilized energies for growth.

DEFINITION OF BUSINESS VALUES.

Values

are the
operationalqualitiesthat companies
seek to achieve or maintain in their
performance.

By

values, we mean the qualitative

goals which the company strives to
achieve in all its activities.

DEFINITION OF VALUES FOR

COMPANYA value is a belief, a mission, or a
philosophy that is really meaningful to
the company. An example of a business
value is: "Customer Satisfaction."
Another example of a value is "Being
Ethical and Truthful." Every
company has one or more values,
whether they are consciously aware of
it or not. Another way of saying it is
that a value is a statement of the

 Values

Reflect Highest Thought.

Pursuit of Ideal.
Values In Company- Leads to
Success.
Values the Heart of the Corporate
Personality.
The Psychic Center of the Company.
The Soul of a Business is Its Values

STEPS TO IMPLEMENT AND

INSTITUTIONALIZE VALUES.
Selection.
Commitment.
Standards.
Structure.
Jobs,

Activities and System.

Employee Responsibilities.
Skills.

SOME VALUES.
Accomplishment,

Success

Accountability
Accuracy
Adventure
All

for one & one for all

Beauty
Calm, quietude, peace
Challenge
Change
Charity
Cleanliness, orderliness
Collaboration
Commitment
Communication
Community
Competence
Competition
Concern for others.

TYPES OF VALUES

These are personal convictions

about life-long goals (terminal values)
and modes of conduct (instrumental
values).

TERMINAL VALUE

Terminal Values refer to desirable endstates of existence. These are the goals
that a person would like to achieve
during his or her lifetime. These values
vary among different groups of people
in different cultures.
The terminal values in RVS are:

TERMINAL VALUES

True Friendship
Mature Love
Self-Respect
Happiness
Inner Harmony
Equality
Freedom
Pleasure
An Exciting Life

Social Recognition
Wisdom
Salvation
Family Security
National Security
A Sense of
Accomplishment
A World of Beauty
A Comfortable Life

INSTRUMENTAL VALUES

Instrumental Values refer to preferable

modes of behavior. These are preferable
modes of behavior, or means of
achieving the terminal values
Instrumental Valuesarecore
values,permanent in nature,
comprise personal characteristics and
character traits

INSTRUMENTAL VALUES

Cheerfulness
Ambition
Love
Cleanliness
Self-Control
Capability
Courage
Politeness
Honesty

Imagination
Independence
Intellect
Broad-Mindedness
Logic
Obedience
Helpfulness
Responsibility
Forgiveness

 Personal values:
These are considered essential principles on which we build our
life and guide us to relate with other people. They are usually a
blend of family values and social-cultural values, together with
our own individual ones, according to our experiences.
Family values:
These are valued in a family and iare considered either good or
bad. These derive from the fundamental beliefs of the parents,
who use them to educate their children. They are the basic
principles and guidelines of our initial behavior in society, and
are conveyed through our behaviors in the family, from the
simplest to the most complex.

 Social-cultural values:
These are the prevailing values of our society, which change with time,
and either coincide or not with our family or personal values. They
constitute a complex mix of different values, and at times they contradict
one another, or pose a dilemma.
For example, if work isnt valued socially as a means of personal
fulfillment, then the society is indirectly fostering anti-values like
dishonesty, irresponsibility, or crime.
Another example of the dilemmas that social-cultural values may pose is
when they promote the idea that the end justifies the means. With this
as a pretext, terrorists and arbitrary rulers justify violence, intolerance,
and lies while claiming that their true goal is peace.

 Material values:
These values allow us to survive, and are related to our basic needs as
human beings, such as food and clothing and protection from the
environment. They are fundamental needs, part of the complex web
that is created between personal, family and social-cultural values. If
exaggerated, material values can be in contradiction with spiritual
values.
Spiritual values:
They refer to the importance we give to non-material aspects in our
lives. They are part of our human needs and allow us to feel fulfilled.
They add meaning and foundation to our life, as do religious beliefs.
Moral values:
The attitudes and behaviors that a society considers essential for
coexistence, order, and general well being.

THE FACTORS THAT INFLUENCE

BELIEFS AND VALUES (IDEOLOGY)

THERE ARE SEVERAL FACTORS THAT INFLUENCE

INDIVIDUAL AND COLLECTIVE BELIEFS AND VALUES

Culture/language
Media
Relationship to land
Environment
Gender
Religion/spirituality
Family

CULTURE/LANGUAGE

RELIGION AND SPIRTUALITY

RELIGIOUS GROUPS

Value priorities often developed

through religious training

Religious doctrine
Role models

Many now seeking spiritual and moral

anchors in both personal lives and work

ENVIRONMENT/RELATIONSHIP TO
LAND

MEDIA

MEDIA

Viewers often see

people abusing and degrading each other

without consequences
violence and antisocial behavior

Research connecting television viewing

and

depression
desensitization of children

FAMILY

Parents assume many roles

Most important role is moral teacher
Challenges to families:

single-parent households
two parents working outside the home
care for elderly parents
financial pressures

SCHOOLS

Some see character education as

fundamental aspect of education
Values clarification common part of
curriculum in 70s
Objections and fears about imposing
values, so much was eliminated
Resurgence in the movement today

PEOPLE WE ADMIRE

Modeling is shaping behavior to be like

people you admire
Important for children and adults
Thanaiworkplace
<dishathanai@dspsr.in>;
LeadersDisha
in the
are important
models for adults

CORE VALUES OF MANAGER

Managerial activities can change as the organizations and

their environment change.
The managers responsibilities have increased as more tasks
have been outsourced on them, at the same time they have
been stripped of some of their support functions and
assistants.
Indian managers are moving away from the concept of
values and ethics. The lure for maximizing profit is deviating
them from the value based managerial behaviour.There is a
need for our managers today both in private and public
sectors to develop a set ofvalues and believes that will help
them attain the ultimate goals of profits and survival and
growth.They need to develop the following values:

Optimum utilization of resources

Attitude towards work
Managers have to develop the visionary
perspective in their work. They have to develop a
sense of larger vision in their work for the common
good.
Work commitment
Vision
Managers have a long term vision.The visionary
managers must be practical,dynamic and capable of
translating dreams in to reality.

MANAGER VALUES

Leads by example models the standards

set and has respect for the team.
Accessible and visible to team members.
Walks around the department/section.
Takes time for personal contact. Takes an
interest in staff as individuals and listens
to their concerns.
Takes the flak when mistakes are made.
Is fully accountable for the actions of
people who report directly to them.

CONT
4.

Is prepared to admit when wrong and

change own behavior. Is not afraid to
say sorry. Actively seeks out
development opportunities for people
who report directly to them and seeks
their input.

5. Understands different needs and

motivations of individuals and adapts
own style to suit person and situation.

THE MANAGERS OF INDIAN COMPANIES

SHOULD ALSO DEVELOP THE
FOLLOWING VALUES: Move from the state of inertia to the

state ofrighteous action.

Move from the state of faithlessness to
the state of faith and self-confidence.
Move from unethical actions to ethical
actions.
Move from untruth to truth.

VALUES OF WESTERN MANAGER

Western managers are highly professionals with excellent

analysis power, high professional education and
specialization.
Western managers follows a proper code of conduct and
work in the structured formal atmosphere with no place of
modesty in their behavior.
Professional efficiency and work disciplines are the conditions
under which western managers perform.
They consider rules as sacred in their value system.
Western value system teaches contractual obligations.
Managers honour their contracts.
Western managers value principles above its privilege and
they consider this as the best strategy to win

CONCLUSION

For years conventional wisdom suggested that people do

not leave companies, but rather they leave because of bad
business management also known as bad managers. Poor
business management practices are more related to the
problem of poor business ethics or values than to the
common symptoms such as poor delegation or poor
communication. Every organization, no matter size, should
have a written business values statement of non-negotiable
behaviors that will be demonstrated by everyone. Each
employee from top down needs to consistently
demonstrate the same values and ethics. Inconsistent
values from managers can dramatically affect employee
motivation and ultimately employee performance

MEANING

ETHIKOS
Means CHARACTER
Study of Behaviour
and values
Greek word

ETHICS

Ethics is the study of Behaviour

What is Good and What is Wrong
Branch of Philosophy
Science of morals

You need to be
more and more
selfless

 Action

as per standards-Ethical
Not as per standards Un Ethical
Actions which are law ful may not
be ethical
Eg.,Drinking alcohol

Differentiate Human Beings from

Animals

ORIGIN
From Olden Days

What is Right and

what is wrong
Rules by society =Ethics

ORIGIN IN INDIA

Bhagawad Gita
VEDAS
Upanishads
Neeti shatra by chanakya

Vedanta

ORIGIN IN WEST

Socrates(469-399BC)

Plato(427-347BC)

Aristotle(384-322BC)

ETHICAL OR UNETHICAL ?

Laying of employees after assuyring no

layoffs

Operating cancer treatment centre

with tobacco company

DIFFERENCES
Morals
Latin word MOS

Ethics
Greek word Ethikos

Social in Nature

Personal in Nature

Based on Customs

Based on Personal
Aspects

Accepted by
religious/cultural
institutions
General
principles(Friends &
Family)
Narrow Scope

Personally accepted
Personal
principles(own)
Wider scope

RELIGION VS ETHICS

VS

ETHICS VS LAW

GOLDEN RULE OF ETHICS

FUNDAMENTAL PRINCIPLES OF
ETHICS

INTEGRITY
OBJECTIVITY
CONFIDENTIALITY
PROFESSIONAL COMPETENCE AND DUE
CARE
PROFESSIONAL BEHAVIOUR

ETHICS
UNIVERSAL/CONSTANT?

Ethical principles are some thing we follow

regularly in our life
Some principles are universal.

Right

Wrong

Honesty

Lying

Reliability

Cheating

Mutual respect

Stealing

Nonviolence

EXCEPTIONS
a.Thief breaks in to your home
Will you tell truth?
b.Can a doctor reveal the serious
illness to patients

Many Ethical values have changed basing on

changes in society and time
Eg:Abortion-Immoral but not now
Child marriage,sati,untouchability,caste
Ethical values different in many cultures
Eg:Polygamy,using ornaments

Morality based on Personal perception

Which is good for some one may not be

good for some one else

:Terrorism
culture
Eg

Western

BRANCHES OF ETHICS

Meta Ethics-Studies meaning

Normative Ethics-Gives prescription

Applied Ethics-Use of Ethics

Eg:Medical ethics,legal Ethics,A&F
Ethics,Environmental Ethics,Business
Ethicsetc.,

NATURE OF ETHICS

Standards of Behavior tells us how to behave

Not same as Feelings
Feelings-Personal
Ethics is not religion but it is advocated by religion
Ethics is not law but law contains ethics
Vary from society to society
Ethics is not science

WHY ETHICS DIFFICULT TO

UNDERSTAND?

Though it is common in daily life

Difficulty

a.Base for Ethical standards?

b.How can we apply these standards?

Application based on demand of the

situation

SOURCES TO ETHICAL STANDARDS

5 major sources
1.Utilitarian Approach
2.Rights/Deontological Approach
3.Fairness Apprroach
4.Common Good Approach
5.Virtue Approach

UTILITARIAN APPROACH

Do more good do less harm

Produce balance between good
and harm
Deals with consequences

RIGHTS APPROACH

Ethical action is which that protects and respects the

moral rights who got affected

Based on Human Dignity gives ability to choose

freely,what they do with their lives

Eg:Ten commandments

FAIRNESS APPROACH

Aristotle contributed this idea

TREAT ALL HUMAN BEINGS EQUALLY

COMMON GOOD APPROACH

Life is good in itself,and our actions

contributed to that life
Relationship based on Ethical reasoning
Calls common conditions for welfare of
Every one
System of law,Effective
Enforcement,Educational system or even
public relational areas

IS
WI THIS
TH
AC
M
BE
Y A TIO
ST
? CTIN N CON
GA
S
T M ISTE
NT
Y

VIRTUE APPROACH

Ancient Approach
Ethical actions consistent with some
ideal virtues(Beliefs)
Honesty,Courage,Compassion
Generosity,Tolerance,
Fidelity,Self control
WHAT KIND OF PERSON WILL I BECOME IF I DO

THIS

BUSINESS ETHICS

Application of Every day moral or Ethical

norms to Business
Being Ethical requires acting with awareness
of how
Products and Services
Actions of Employees
Stake holder and society

Code of conduct for doing

Business
Unite in common pursuit of
justice Mahatma Gandhi
Truthfulness in
Business,conduct reflection of
their country

NEED

Application of Ethics in Business

Authority to use Natural Resources

Engaged in Social Contract

Business man-Trustee

Major Emphasis on CSR

Responsible for Share holders and

Stake holders

Ethics in Companys MISSION

Statement

Profit Maximisation to Wealth

Maximisation

ETHICAL INFLUENCE ON BUSINESS

Areas of Business

Ethical Practice

Plant location

Environment Impact

Product

Pollution

Purchase & Storage

No hoarding of finished
goods

Transportation

Safety Regulations

Advertising

Realistic Claims

Finance

Appreciation of Capital

Personnel

Equitable treatment

BENEFITS OF FOLLOWING BUSINESS ETHICS

Easier change management

Strong team work and productivity
Enhanced Employee growth
Guarantee that personnel policies are
legal
Helps to detect violations easily
Helps to manage values associated with
quality management, strategic planning

ETHICAL DILEMMAS

Dilemma means Confusion

Ethical dilemma:
Eg; Rama
Obey or Rule
o
kingdom

Arises When there are Alternatives

ETHICAL DILEMMAS IN BUSINESS

Only few issues are straight forward

In many cases conflicts with out clear option

Arises to manager to decide between

i)Right and wrong ii)Right & Right

In finding solutions business man face Ethical dilemmas

Most often business interests conflict with moral values

Eg., Bribe Or a means of sales promotion

GUIDELINES TO HANDLE ETHICAL DILEMMA

Define problems clearly

Stood on the other side of the fence
How did the situations arise?
Intention in making that decision
Who will injure by your decision?
What is probable results of the decision?
Can you discuss with affected parties before decision?
Symbolic potential of your action, if understood or
misunderstood?
Exceptions to your stand?

WHY ETHICAL PRACTICES?

SLIPS-R

1. Self Interest
2. Reward Motive
3. Social Pressure
4. Legal Need
5. Consistent with profit Motive
6. Image
7. Payback Principle

GOI EFFORTS TO ENSURE ETHICAL BEHAVIOUR

ACB and CBI

Vigilance Commission
Right to Information Act
Public Interest Litigation
Transparency
Ombudsman

INSTITUTIONALIZING BUSINESS
ETHICS
Code

of Ethics
Compliance officer
Ethics committee
Teaching in MDPs
ombudsman

WHAT IS DECISION MAKING

Decision making is a process of selecting the best among

the different alternatives. It is the act of making a choice.
There are so many alternatives found in the organization
and departments. Decision making is defined as the
selection of choice of one best alternative. Before making
decisions all alternatives should be evaluated from which
advantages and disadvantages are known. It helps to
make the best decisions. It is also one of the important
functions of management. Without other management
functions such as planning, Organizing, directing,
controlling, staffing cant be conducted because in this
managerial function decision is very important.

IMPORTANCE OF DECISION MAKING

1. Implementation of managerial
function: Without decision making
different managerial function such as
planning, organizing, directing,
controlling, staffing cant be conducted.
In other words, when an employee
does, s/he does the work through
decision making function. Therefore,
we can say that decision is important
element to implement the managerial

2. Pervasiveness of decision making: the decision is

made in all managerial activities and in all functions of
the organization. It must be taken by all staff. Without
decision making any kinds of function is not possible.
So it is pervasive.
3. Evaluation of managerial performance: Decisions can
evaluate managerial performance. When decision is
correct it is understood that the manager is qualified,
able and efficient. When the decision is wrong, it is
understood that the manager is disqualified. So
decision making evaluate the managerial performance

4. Helpful in planning and policies: Any policy or plan is

established through decision making. Without decision
making, no plans and policies are performed. In the process
of making plans, appropriate decisions must be made from
so many alternatives. Therefore decision making is an
important process which is helpful in planning.

5. Selecting the best alternatives: Decision making is the

process of selecting the best alternatives. It is necessary in
every organization because there are many alternatives. So
decision makers evaluate various advantages and
disadvantages of every alternative and select the best
alternative.

6. Successful; operation of business:

Every individual, departments and
organization make the decisions. In this
competitive world; organization can
exist when the correct and appropriate
decisions are made. Therefore
correct decisions help in successful
operation of business

Step 1: Identify the decision to be made.You realize that

a decision must be made. You then go through an internal
process of trying to define clearly the nature of the decision
you must make. This first step is a very important one.
Step 2: Gather relevant information. Most decisions
require collecting pertinent information. The real trick in this
step is to know what information is needed, the best sources
of this information, and how to go about getting it. Some
information must be sought from within yourself through a
process of self-assessment; other information must be sought
from outside yourself-from books, people, and a variety of
other sources. This step, therefore, involves both internal and
external work.

Step 3: Identify alternatives. Through the process of collecting

information you will probably identify several possible paths of
action, or alternatives. You may also use your imagination and
information to construct new alternatives. In this step of the
decision-making process, you will list all possible and desirable
alternatives.
Step 4: Weigh evidence. In this step, you draw on your
information and emotions to imagine what it would be like if you
carried out each of the alternatives to the end. You must evaluate
whether the need identified in Step 1 would be helped or solved
through the use of each alternative. In going through this difficult
internal process, you begin to favor certain alternatives which
appear to have higher potential for reaching your goal. Eventually
you are able to place the alternatives in priority order, based upon
your own value system.

Step 5: Choose among alternatives. Once you have weighed all the
evidence, you are ready to select the alternative which seems to be
best suited to you. You may even choose a combination of alternatives.
Your choice in Step 5 may very likely be the same or similar to the
alternative you placed at the top of your list at the end of Step 4.
Step 6: Take action.You now take some positive action which begins
to implement the alternative you chose in Step 5.
Step 7: Review decision and consequences. In the last step you
experience the results of your decision and evaluate whether or not it
has solved the need you identified in Step 1. If it has, you may stay
with this decision for some period of time. If the decision has not
resolved the identified need, you may repeat certain steps of the
process in order to make a new decision. You may, for example, gather
more detailed or somewhat different information or discover additional
alternatives on which to base your decision.

ETHICAL DECISION MAKING

Ethical decision making involves taking

into consideration eithical issues at
various stages of decision making
process. The basic steps involved in
ethical decision making are same as in
normal decision making process.but in
every step ethical aspect is given due
consideration. This approach is called
PLUS approach which take cares of

P = Policies
Is it consistent with my organization's policies,
procedures and guidelines?
L= Legal
Is it acceptable under the applicable laws and
regulations?
U = Universal
Does it conform to the universal principles/values my
organization has adopted?
S= Self
Does it satisfy my personal definition of right, good and
fair?

PLUS PRESUMES EFFECTIVE

COMMUNICATION WITH ALL
EMPLOYEES SO THERE IS A
COMMON UNDERSTANDING OF:

PLUS presumes effective communication with all

employees so there is a common understanding of:
the organization's policies and procedures as they
apply to the situation.
the applicable laws and regulations.
the agreed to set of "universal" values - in this case
Empathy, Patience, Integrity, Courage (EPIC)
the individual's sense of right, fair and good
springing from their personal values set.

The PLUS filters work as an integral part of steps 1, 3 and 6

of the decision making process. The decision maker applies
the four PLUS filters to determine if the ethical
component(s) of the decision are being
surfaced/addressed/satisfied.
Step 1

Step 2

Define the problem (PLUS surface the ethical issues)

Does the existing situation violate any of the PLUS considerations?
Identify available alternative solutions to the problem

Step 3

Evaluate the identified alternatives (PLUS assess their ethical

impact)
Will the alternative I am considering resolve the PLUS violations?
Will the alternative being considered create any new PLUS
considerations?
Are the ethical trade-offs acceptable?

Step 4

Step 5

Implement the decision

Step 6

Make the decision

Evaluate the decision (PLUS surface any remaining/new

ethical issues)
Does the resultant situation resolve the earlier PLUS
considerations?
Are there any new PLUS considerations to be addressed

RELEVANCE OF ETHICS AND VALUE

Business ethics/ Dr. Pooja Sharma

3/31/15

IMPORTANCE OF ETHICS AND MORAL

STANDARDS

113

Business ethics/ Dr. Pooja Sharma

3/31/15

IMPORTANCE OF ETHICS IN BUSINESS

Ethical behavior is essential for long

term success in business, both from
micro and macro perspective.

114

Business ethics/ Dr. Pooja Sharma

3/31/15

The market system leads to a more efficient

way of allocating resources and the conditions
required are:
1.
2.

3.

The right to own and control private property.

Freedom of choice in buying and selling
goods and services.
The availability of perfect information
regarding these goods and services.

115

Business ethics/ Dr. Pooja Sharma

3/31/15

MACRO PERSPECTIVE UNETHICAL

BEHAVIOR

Bribery reduces freedom of choice

by changing the conditions under which
the decision is made. Greater appeal is
created by enhancing the personal gain
associated with the choice by addition
of unearned income.

Coercive acts threats that prevent a

seller from dealing with certain
customers.

116

Business ethics/ Dr. Pooja Sharma

3/31/15

Deceptive information creates

false impressions and leads buyers to
select goods and services that provide
less satisfaction.
Delivering products and services below
the promised quality also distorts the
system.

Theft losses due to theft may be

made up via larger profit margins that

117

Business ethics/ Dr. Pooja Sharma

3/31/15

Unfair discrimination results in the

purchase of services from less capable
people or sale to less capable people.

118

Business ethics/ Dr. Pooja Sharma

3/31/15

MACRO PERSPECTIVE ETHICS AND

TRUST

Ethics is closely associated with trust.

In order to develop trust, behavior must
be ethical.

Trust in a business setting reduces

costs, makes life more pleasant and
improves efficiency.

119

Business ethics/ Dr. Pooja Sharma

3/31/15

Two norms are to be honored in all

situations:
1. Commitments are to be honored in
almost all situations.
2.

One ought to produce a good product

and stand by it.

120

Business ethics/ Dr. Pooja Sharma

Trust involves three fundamental

elements

3/31/15

Predictability
Dependability
Faith

Need for trust arises when one faces some

type of risk. Thus trust, is a risk reducing
mechanism.
121

Business ethics/ Dr. Pooja Sharma

3/31/15

1.

Trust in supplier relations purchases

move from a series of discrete transactions
to an on going buyer seller relationship
which is called an exchange relationship,
which is based on trust between both parties
that each will honor his commitments.

2.

It also provides several benefits to the buyer.

The buyer gets a dependable source of
supply, during the period of shortages also.
122

Business ethics/ Dr. Pooja Sharma

3/31/15

2.

Trust in customer relations a

salesman earn customers trust by
being dependable, honest, competent
and customer oriented.

Customers who trust suppliers are

more likely to stay with them.

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3.

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Trust in employee relations a

climate of trust provides:
Improved communication
Greater predictability
Dependability and confidence among
employees
Reduction in employee turnover
Openness and willingness to listen and
accept criticism
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The following factors promote trust:

Open communications
Giving workers a greater share in decision
making.
Sharing of critical information
Trust based sharing of perceptions and
feelings

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Business ethics is the process of

evaluating decisions, either pre or post,
with respect to the moral standards of
societys culture.

Moral norms prohibit certain types of

behaviour such as lying, stealing and
killing.

Moral principles provide more general

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IMPORTANCE OF VALUES IN BUSINESS

Values should be in alignment with the business

goals, and mission and vision statements,
otherwise there is bound to be organizational
conflict.

Values will also help you in finding your purpose in

life.

Values lay the foundation for the understanding of

perception, attitudes and motivation of people.
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Values help you get and stay motivated.

Values relate to our purpose in life and are

used as guiding principles, to make your
life easier.

Values provide you with a strong

foundation; a method for living your life to
its fullest.
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