Ethics in Management

Different approaches for Indian and

Western Management
Indian Management
More human approach
Focus on overall development

Western management
Human factor ignored
Complete focus on figures

IMMANUEL KANT (1724-1804).

The German philosopher Immanuel Kant
believed that morality in all spheres of human
life should be grounded in reason. His renowned
"categorical imperative" held that:
(1) people should act only according to maxims
that they would be willing to see become
universal norms (i.e., the Golden Rule); and
(2) People should never treat another human as
a means to an end. The categorical imperative is
easily demonstrated:

 Kant's theory implied the

necessity of trust, adherence to
rules, and keeping promises
(e.g., contracts). When people
elect to deviate from the
categorical imperative, they risk
being punished by the business
community or by government
enforcement of laws.

More importantly, Kant suggested

that certain moral norms that are
ingrained in humans
allow them to rise above purely
animalistic behavior.
People have the capacity to forgo
personal gain
when it is achieved at the expense of
others,
and they can make a choice as to
whether they will or will not follow
universal norms.

Theories of Business Ethics

Concept of virtue
Virtues are values you are identified with
Promoted by Indian ethical thinkers

Fidelity- Keep promises and tell the truth

Reparation- Compensate people for injury and loss
Gratitude- Return the favour
Justice- Benefits are distributed according to merits
Beneficence- Do activities which help others
Self improvement- Improving our own virtue
Non Violence- Avoid injury to others

Theories of Business Ethics

Deontological Theory
Developed by Immanuel Kant
Do what is right without bothering about the
results
Importance to universal truth and goodwill
Reach the destination step by step
Look at your self before criticizing others
Acquire wealth by rightful means
Similar to religious approach

Theories of Business Ethics

Conventional ethics of Albert Carr
Believes in conflict between individuals
ethics and business realities
Business is like a poker game where
bluffing and deception are essential for
winning
Lawyers job is to save his client; not to
defend the truth
Play to win and bluff is part of the game

Theories of Business Ethics

Doctrine of Mean by Aristotle
Goodness is measured in terms of
performing the purpose
Motive is important as much as suitability
of action to the circumstances
Knowledge and action are together and
can not be separated
Equal importance to knowledge and
experience

Heinz Steals the Drug In Europe

A woman was near death from a special
kind of cancer. There was one drug that
the doctors thought might save her. It was
a form of radium that a druggist in the
same town had recently discovered. The
drug was expensive to make, but the
druggist was charging ten times what the
drug cost him to produce. He paid $200 for
the radium and charged $2,000 for a small
dose of the drug.

The sick woman's husband, Heinz, went to

everyone he knew to borrow the money,
but he could only get together about $
1,000 which is half of what it cost. He told
the druggist that his wife was dying and
asked him to sell it cheaper or let him pay
later. But the druggist said: "No, I
discovered the drug and I'm going to make
money from it." So Heinz got desperate
and broke into the man's store to steal the
drug-for his wife.

 Should Heinz break into the laboratory

to steal the drug for his wife? Why or
why not?

 Kohlberg used moral dilemmas to

determine which stage of moral
reasoning a person uses. The
dilemmas are short stories in which a
person has to make a moral decision.
The participant is asked what this
person should do. A dilemma that
Kohlberg used in his original research
was the druggist's dilemma

 Stage one (obedience): Heinz should not steal the medicine,

because he will consequently be put in prison.
Stage two (self-interest): Heinz should steal the medicine,
because he will be much happier if he saves his wife, even if he
will have to serve a prison sentence.
Stage three (conformity): Heinz should steal the medicine,
because his wife expects it.
Stage four (law-and-order): Heinz should not steal the medicine,
because the law prohibits stealing.
Stage five (human rights): Heinz should steal the medicine,
because everyone has a right to live, regardless of the law. Or:
Heinz should not steal the medicine, because the scientist has a
right to fair compensation.
Stage six (universal human ethics): Heinz should steal the
medicine, because saving a human life is a more fundamental
value than the property rights of another person. Or: Heinz should
not steal the medicine, because that violates the golden rule of
honesty and respect.

; It would be unethical for a person

to break into a long line at a theater,
because if everyone did the same
thing anarchy would result.
Similarly, it would be immoral for a
person to have a friend buy him or
her a ticket under the agreement that
he or she would reimburse the friend,
but then fail to pay the friend back.

EX