Chandramowly HUMAN DIMENSIONS

i VALUES
+

ROBUST INSPIRING
V+ S - V+ S+
+

- SKILLS

HOPELESS DANGEROUS
V- S- V - S+
-

Concept;t: Prof S K Chakraborty

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

Chandramowly HUMAN DIMENSIONS

 i Business Ethics

• Interest in Business Ethics has been

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

Do what's right, legally and

morally

Chandramowly HUMAN DIMENSIONS

 i Ethical behaviour
Doing what is right when
nobody is looking

Chandramowly HUMAN DIMENSIONS

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

Keeping promises and fulfilling expectations.

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

Chandramowly HUMAN DIMENSIONS

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

Chandramowly HUMAN DIMENSIONS

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

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

The real question is

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

Chandramowly HUMAN DIMENSIONS

 i Integrity - Two dimensions

Standing up for our most

fundamental
Personal beliefs and commitments,
even in the face of adversity

Standing up for the

Professional goals and commitments of our profession,

even in the face of adversity

Chandramowly HUMAN DIMENSIONS

 i Breaches of Integrity and
Reconciliation

Integrity is a harsh virtue

……..One who violates integrity is

left without the possibility of
reconciliation.
No way to expiate guilt….

Chandramowly HUMAN DIMENSIONS

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

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

• Ego

• Ignorance

• Time
ETHICS

• Unreliable information

Chandramowly HUMAN DIMENSIONS

 i Integrity standards
address many subjects...

•Avoiding conflict of interest

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

Chandramowly HUMAN DIMENSIONS

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

Chandramowly HUMAN DIMENSIONS

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

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

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

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

Chandramowly HUMAN DIMENSIONS

 i and…..

Is it fair?

Does it hurt anyone?

Have I been honest

with those affected?
ETHICS

Can my conscience live

with this decision?

Chandramowly HUMAN DIMENSIONS

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

•How would I feel if my family

found out about my decision?

Chandramowly HUMAN DIMENSIONS

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

Chandramowly HUMAN DIMENSIONS

 Most
Desirable Problematic
(Congruent) (Incongruent)

Least
Problematic Desirable
(Incongruent) (Congruent)

Management by Values by Prof: S K Chakraborty

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