INTRODUCTION TO

BUSINESS ETHICS
• Business ethics is a branch of ethics
which prescribes standards of
how the business is to be carried out. It
lays down guidelines for the company’s
response and accountability to its various
stakeholders. It has to maintain a fine
balance and take care of the interest of
the shareholders on one hand and on
other like the employees, suppliers,
customers and community at a large on
the other hand.
•
• All the stakeholders have different
objectives of what they expect from
the company and at times these
• of any company. In order to serve
the objective, the company should
not neglect other objectives of other
stakeholders- like employees need a
fair remuneration and good working
condition.
• Customers would demand quality
products at reasonable prices and
society at large would be looking
forward to the company to provide
employment opportunities to as
many people as possible, fund
development projects as a social
responsibility and follow financial
discipline and transparency in all its
•

• Business ethics would tell us what is

“RIGHT” and what is wrong in a
globalised world where the survival
of the corporation is decided by the
market place.
•

• To sum up, Thomas Donaldson

says, “There is a growing
realization all over the world that
ethics is initially important for any
business and for the progress of
any society. Ethics makes for an
efficient economy-ethics alone, not
• Ethics is good in itself. Ethics and
profits go together in the long run.
A ethically responsible company is
one of which has developed a
culture of caring for people and for
the environment. A culture which
flows downward from the top
managers and leaders.”
•
 ADVANTAGES OF STUDYING
BUSINESS ETHICS:
•

• Business executives and budding

managers study the various ethical
theory, ethical principles and ethical
judgments:
•

• It will help to build and groom a value

based organization:
•

• It creates awareness about their social

responsibility:
•

• Making them better individuals:

 MOTIVATION

• According to WILLIAM G. SCOTT defines

motivation, as “a process of stimulating
people to action, to accomplish desired
goals.”
•

• Thus Motivation is a technique which

includes people to act in a desired
manner. It is the outcome of several
behavioural inputs like perception,
attitude and learning and it is an
important concept receiving
considerable attention from
 INDIAN V/S WESTERN APPROACH TO
MOTIVATION:
Western
Indian

“Rina” or debt system: Need hierarchy starting with

Deva Rin, Rishi Rin, Guru Rin,
Bandhav Rin, Nrip Rin and Bhut
Rin. According to Karma theory,
man is born and his main aim is
to repay these debts.
physiological needs, security
needs, affiliation needs, self-
esteem and finally self-
actualisation.

“Purushartha” or the four missions Herzberg’s theory had hygienic

of life . Dharma code of ethical factors or extrinsic like pay
living . Artha-acquisation of scale, job security and
living wealth. Kaam- passion in motivations or intrinsic factors
all activities. Moksha-supreme like job satisfier, recognition
bliss. This is an integerated etc.
approach of motivation.
 INDIAN TECHNIQUE DEBT (RIN) SYSTEM
OF MOTIVATION:
• According to Karma theory, Man is born to repay
the “Rin” or debts of all past lives. Right from
the birth, he is indebted to the following:
• DEVA RIN:
• RISHI RIN:
• GURU RIN:
• PITRU RIN:
• MATRU RIN:
• BANDHAV RIN:
• NRIP RIN:
• BHUTTA RIN:
•

•
 THE PURUSHARTHAS OR THE MISSIONS:
•

• According to Indian culture, there are

four fold purusharthas or Mission of
life, which also motivate an
individual.
•

• DHARMA:
•

• ARTHA:
•

• KAAM:
•

• MOKSHA:
•
 ANCIENT TECHNIQUE OF
MOTIVATION
•
• SAAM: (Association)
•

• DAAM: (Carrot)
•

• DAAND: (Stick)
•

• BHED: (Disassociation)
•
THE CONCEPT OF NISHKAAM KARMA AS
A TECHNIQUE OF MOTIVATION:
• This is the most powerful technique of
managing self where one has to
manage one’s desires.
• As it is written earlier, according to
karma theory, we have some Vasanas
(unfulfilled desires) for which we do
various karmas, in this life time.
• However, if one does his karma with a
“Nishkaam” Bhav and in a spirit of
Yanga then one accepts the RESULT
with PRASAD BHAV. This is the
doctrine of detached involvement or
Nishkaam Karma.
• If one does KARMA with this BHAV, he
is free from the anxiety of the
result and put his 100% efforts and
gives the best shot. This results in
EXCELLENCE WORK, A TRANQUIL
MIND AND MAXIMUM GOOD OF
MINIMUM NUMBER OF PEOPLE.