Value and Ethics

S. No. Contents Page No.

1.

Concept of Value

2.

The Types of Value

13

3.

The Concept of Ethics

21

4.

The Role of Ethics and Values in Business

32

5.

Core Values of SBI

43

Module 1
Welcome to the Course on Value and Ethics! This course seeks to Give you a good understanding of the concepts of value and ethics Give you various definitions of the two concepts Tell you about different types of values Explain the role of ethics and value in business Explain the core value of SBI

Introduction
This lesson introduces you to the concept of values. It gives you various definitions of value and explains how values are formed and how they change during the course of ones life. It also takes a look at the characteristics of value and explains the criteria that a value should fulfil to be called a full value. It talks about why value is important and how it can sometimes be negative.

The Definition
What exactly is value? Value is defined in different ways by different people. You can read some of the definitions here.

A value is an enduring belief that a specific mode of conduct or a certain end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence. --Milton Rockeach

Values can also be defined as: Beliefs that are reflected in a person's actions Decisions made about choices Normative standards by which human beings are influenced in their choices among alternative courses of action

Values are Learnt, not Taught.

The formation of values starts from one's childhood. Values are learnt from childhood, from the variety of contacts one has with persons, stories and situations that reflect values. Fables and fairy tales are important and have lasted several hundred years because they reflect values.

Childhood Formation of an Individual's Values Adulthood

As a child observes the behaviour of those around him, he senses that certain modes of conduct are more acceptable than others and he slowly acquires these. Thus, values are acquired by transference and to some extent by imposition. As the child grows up, he learns through his interaction with a wider world that he has other alternatives and this leads to his reaffirming his old values or rejecting them.

Conflicting Values
Since values are learnt from so many sources, there is bound to a conflict between different values. Read on to see the different kinds of conflict that arise between different values and how these conflicts can be resolved.

Conflict arise between various values: Obedience vs. Independence Control vs. Freedom Individual Value vs. Cultural and Societal Values

Conflict between various values can be overcome through: Logical Thinking Reasoning

Appropriateness

Values Change
The values one acquires may change but the change generally happens over a period of time. Sometimes, a persons values change all at once, as you will read here. But how do these changes come about? This slide tells you more about it. Another thing to remember is that values are not uniform for all individuals and societies.

An individual's values may change overnight because of some traumatic experience. But that is not common.

The changes in values come about sometimes as a process of evolution, as a result of exposure to new ideas, events or practices elsewhere. Values are formed and changed by the dynamic interplay of intellect, emotions and spiritual needs and other forces in a human being.

Understanding the Elements of Values

Value has several different characteristics, as you can see here. Read through the list carefully to see the various elements of value. Judgmental Evaluative Moral Prescriptive in nature Strong emotional content Internal and subjective in nature

The judgmental and evaluative elements deal with whether something is good or bad; the moral element with its being right or wrong, desirable or undesirable. Values are prescriptive, defining the dos and the donts. They have a strong emotional content and are subjective, differing from person to person.

Value Clarification
A value is said to be a full value only if it fulfills eight criteria. Click the labels to learn more about each of them. 1. Chosen Freely A Value Must Be Chosen Freely:

Full values are only those that are freely chosen. We all have a number of beliefs and values that have been thrust on us by others in various ways. We may also pretend to believe in certain things to make an impression on others. These are not beliefs which we internalise, cherish and allow to guide our lives. A full value, on the other hand, guides a person's life as a norm or a principle.

2. Chosen from Alternatives A Value Must Be Chosen from Alternatives:

Unless there are alternatives, there is no choice or exercise of the freedom of choice. At work, a person may be offered a choice between a number of tasks unacceptable to him. He may choose one only because he values supporting his family, not because he values that task. A person may sometimes choose a particular career, not because he values that kind of work, but because he values the status and financial rewards that go along with it. Unless the people in authority are helping in establishing alternatives, they are imposing values. 3. Chosen After Considering the Consequences A Value Must Be Chosen After Considering the Consequences:

The consequences of the alternatives must be known and carefully studied. Only then can a person make a free and intelligent choice. Sometimes the consequences of one's choice cannot be known in advance. This fact does not

necessarily mean however, that once the consequences are understood the person must re-evaluate his choice in the light of the new information.

4. Is Performed and acted upon A Value Must Be Performed:

A value is one which influences the action or behaviour of a person in some way. It may determine the nature of his activities, and the time, energy and money allocated to them. Values give direction to a persons life. Value clarification is designed to help people discover what they act upon rather than what they simply desire, feel or think. Thinking about a value may be an indication of the formation of a value but not a full value. 5. Becomes a Pattern of Life A Value Becomes a Pattern of Life:

A full value becomes a pattern of a persons life and is repeatedly acted upon. A value that becomes a pattern of a persons life influences all aspects of his existence viz.., work, family, recreation and even selection of trends.

6. Is Cherished, Provides Fulfillment A Value is Cherished:

A value is something positive and gives the person a feeling of fulfillment as he moves towards it. If this does not happen, it is not full value. In that case, he may eventually seek to remove it from his life.

7. Is Publicly Affirmed A Value is Publicly Affirmed:

A full value is shared with other people. The person feels enthusiastic about it and it forms a part of his social identity. However, if a value conflicts with the norms of society, there may be a difficulty in affirming it and to that extent, it creates conflicts within the person also. 8. Enhances a Persons Growth A Value Enhances a Person's' Growth:

A value which meets all the above seven criteria will enhance a person's growth towards the goals and ideals he has chosen for himself. Values make a person goal-directed and committed to what he has chosen " based on values rather than feeling apathetic and meaningless. The value clarification process does not define a person's growth; it only helps him choose a meaningful direction by recognizing his own values. Unless a person can accept and affirm himself, he cannot do so with others. Values generally exist in relation to others and promote respect, understanding and concern for self and others.

A value which does not meet all these eight criteria, is called a partial value or value indicator.

Value Clarification Process

The value clarification process seems to be a necessary process in the modern context, particularly because of the various diverse forces that influence the values and choices of people.

1. Chosen Freely

2. Chosen from Alternatives Cognitive Abilities 3. Chosen After Considering the Cosequences

4. Is performed and acted upon Actions & Performance 5. Becomes a Pattern of Life

6. Provides Fulfillment

7. Is Publicly Affirmed Emotional Feelings 8. Enhances a Person's Growth

The Need for Values

Values are important for various reasons as you can see from these slides. Click each link to learn more about the importance of values. Values are necessary for giving us a sense of identity. They fulfill our desire to derive a greater sense of meaning and well being in life. Values make us personally fulfilled and constructive members of society. They lead to more purposeful and consistent behaviour. Values determine the course of our life It is our values that give us the stars by which we navigate through life. They make us goal directed and committed. They help in developing commitment to work and life. They motivate us: They enable us to have a greater clarity about goals/purposes. Values become standards or criteria for guiding action; they

provide a basis for action. They enable us to live with the results of our actions. They are also used for justifying actions/attitudes.

Values strongly influence our attitudes. They give us strength They lead us to higher achievement which results in increasing our self-esteem. They enable us to make satisfactory choices and take appropriate action. Decision making and making choices is based on values. Values provide a framework for deciding on a position. Without values, we will lead a confused life. Values are a standard or yardstick to guide actions, attitudes, evaluations and justifications of self and others.

Change, mobility and a wide range of opportunities are making it necessary not only to choose but also to review our choices to be able to define and work for one's values.

Negative Aspects of Values

Though values in general have a positive connotation, they have negative aspects too. Rooted as they are in culture, they are extremely resistant to change. They can come in the way of objectivity and rationality and make people judgmental and evaluative, leading them to even reject others. Values create mental blocks and thus affect the communication process. Values are preconceived notions about right and wrong and can make one rigid.

Check Your Understanding

Read the statement given below and select the appropriate option by clicking on it. 1 Which of these is not a criterion to determine a full value? Chosen freely Provides fulfilment Chosen intuitively Becomes a pattern of life

Correct Answers: Chosen intuitively

A full value is One that we choose freely One that is imposed on us by others One that we choose to impress others One that we choose to keep up with peers

Correct Answers: One that we choose freely

A full value Is chosen from alternatives Is chosen after considering consequences Is performance based All of the above

Correct Answers:

4. Pick out the wrong answer: A full value Influences all aspects of a persons existence Gives a person a sense of fulfilment Is kept to oneself Determines the nature of a persons activities. Correct Answers: Is kept to oneself

5. Values are not Judgmental Evaluative Moral External and objective

Correct Answers: External and objective

6.

When values are chosen freely after considering the consequences we

are using: Cognitive abilities Emotional feelings Actions and Performance

Correct Answers: Cognitive abilities

7. When values provide fulfillment and are publicly affirmed we are using: Cognitive abilities Emotional feelings Actions and Performance

Correct Answers: Emotional feelings

8. Values can come in the way of objectivity and rationality and make people judgmental and evaluative, leading them to even reject others. True False

Correct Answers: True

Summary Heres a recap of this lesson:

Value has various definitions, one of which is beliefs that are reflected in a persons actions. Values are learnt, not taught and their formation begins in childhood itself.

The child learns values from the various people, stories and situations that it comes into contact with and he learns those that he perceives as being more acceptable than others.

There could be conflicts between different values such as obedience vs. independence and control vs freedom. These conflicts can be overcome by logical reasoning and thinking.

Values can change over time but the change is generally gradual. Values have different elements; they are judgmental, evaluative, moral, prescriptive, have strong emotional content and are internal and subjective.

To be termed a full value, it has to fulfill eight criteria. Values are important because they give us a sense of identity, help determine the course of our lives and influence our attitudes.

Module 2 Introduction
This lesson takes a look at the different dimensions of value and how these dimensions influence the characters of people. It also covers the different combinations of these values and points out how these are sometimes congruent and sometimes contradictory.

Understanding the Dimensions of Value

Values have various dimensions such as political, aesthetic, social, theoretical and economic. Different people may find different dimensions important and that influences the other aspects of their lives. Click the links to learn about the value types.

Political
The political value is characterized by the pursuit of power. People at the top levels of any organization were probably led there by their desire for power. People with a high power motive seek influence, personal prestige, control, authority, strength and the other trappings of power described by the words in the "political rows in the PVS. The political person recognizes the relationship between money and power and may measure success in rupees. However, his ultimate goal is position. He joins clubs with the goal of becoming the presiding officer, works for advancement and promotion opportunities, and also desires social status and recognition.

Aesthetic
People who possess a high degree of the aesthetic value seek beauty, symmetry and harmony. They are interested in the artistic episodes of life. Style and charm may be more important to them than practicality. They believe in the dignity of man and the nobility of the individual. Hence, they may be self-sufficient and individualistic. One need not be an artist to value art and culture. Taste,

appearance and elegance are signs of refinement sought by the aesthete, and money is seen as a necessary means to those ends. The pomp and pageantry of position and power also may be important to him. He feels that one cannot associate with just anyone or belong to just any club. A good address, the best schools, traveling first class and entertaining well are musts. The aesthete does not sponsor fish frys or barbeques; lavish formal dinners are more his style. Affluence can provide the finer things in life, and the aesthetes sense of taste, decorum and style fit in well with such an environment.

Social
The social or humanitarian value indicates a love of fellow beings. This does not necessarily characterize people who are outgoing but reflects a humanitarian concern for the welfare of others. A social person tends to be kind, sympathetic, warm and giving. Such a person values charity, unselfishness and the freedom of others and is apt to offer aid and assistance to others as well as understanding. To be able to contribute to another's happiness and well-being is the altruistic goal of the humanitarian. To act for materialistic gain without first considering the consequences of the act for other people is against the nature of the social person. The cold and unsympathetic nature of some of the other types of people is abhorrent or frightening to such a person.

Theoretical
Theoretical people value truth and knowledge above all else. To think, to learn, to reason, to probe, to analyze and to explain are important to them. Because they are critical, logical and empirical, they tend to value science, research, information and theory. It is not only knowledge, but the organization and cataloging of knowledge that are important to them. They tend to be detached and unemotional as they seek to solve problems, develop theories and form questions, and their critical natures may cause them to be regarded negatively by

some members of the organization. Theoretical people recognize that knowledge is power but may not recognize the importance of emotional appeal especially to aesthetic and social individuals. A theoretical person may become frustrated at the failure of others to realize the value of knowledge and theory but also may fail to recognize the need for more practical solutions.

Economic
Practicality and usefulness are important to the economic person. Unlike the theoretical person, the economic type has no use for knowledge that is not immediately applicable to pragmatic achievement, to the production of something tangible and useful. Efficiency and effectiveness are measured by profit and prosperity. Because these people value efficiency, they .tend to be parsimonious and may be perceived by aesthetic and social individuals as stingy or selfish. The economic practice of conserving resources stems from the feeling that life is a struggle and that self-preservation requires that resources be used wisely. However, if convinced of the practical value of aesthetics, the economic individual tends to take risks in order to minimize input. Economic-type students tend to be more concerned with making the necessary grades and obtaining their degrees as soon and as easily as possible as they are with acquiring knowledge that may not be immediately useful.

Diverse and Conflicting Combinations of Value

The different value types can be found in different combinations, some of which are congruent or supportive and some of which are contradictory. There are different combinations available. Click the links to learn about one of these combinations. Political and Aesthetic This sometimes-pompous individual believes in the divine rights of rulers", especially himself or herself. Like General George Patton, who saw himself as

the reincarnation of Alexander the Great, such people may believe that they were meant to serve some grand purpose. They are likely to be individualistic, express their beliefs freely and resist any attempt to control their actions.

Political and Social This benevolent ruler seeks power in order to oversee the well-being of others. By developing paternalistic relationships with others, this person serves them through strength, much as the Pope serves the Church. Political and Theoretical Knowledge is the source of power that provides recognition, influence and control over others for this intellectual or scientific leader who regards other people as objects to be analyzed and manipulated. Political and Economic The typical, successful businessperson, this individual finds that the position of line rather than staff, manager serves his or her goals of economic success, power and position.

Aesthetic and Social This altruistic soul instinctively knows what is right for humanity. Such a person artistically dramatizes emotion and concern for the welfare of others with lofty prose.

Aesthetic and Theoretical This may be the most conflicting combination of values. Theoretically, such a person simultaneously searches for thorough logic and explanations while relying on feelings and impressions to provide beauty.

Aesthetic and Economic To be practical and efficient while possessing style and beauty also may create conflict and the person who typifies this pattern is associated with commerce only at the highest cultural levels. Social and Theoretical This individual is the professional who seeks to serve others through knowledge. Even though others may find such a person's critical analysis of people cold, the person does strive to help others become more rational. Social and Economic For this individual, the goals of productivity and satisfaction are equally important and he or she encourages economic opportunity because it benefits people. Theoretical and Economic Because this person is interested in practical applications of knowledge, he or she tends to be inventive. This pragmatic approach to science produces an eclectic problem-solver rather than a theoretician.

Test your understanding of what you have learned so far.

Drag the terms into the correct slots to complete the following sentences. Click Submit to check your answers.

political & theoretical aesthetic & theoretical

social & theoretical

political & economic

1. ____________________ may be the most conflicting combination of values. ANSWER: Aesthetic & Theoretical

2.

The person who combines the ____________ values, regards other people

as objects to be analyzed and manipulated

ANSWER: Political & Theoretical

3.

A person who combines the __________________ values is a

professional who seeks to serve others through knowledge.

ANSWER: Social & Theoretical

4. The typical successful businessperson combines the ____________________ values. ANSWER: Political & Economic

Check Your Understanding Read the statement given below and select the appropriate option by clicking on it.

1. The persons who combine these values are likely to be individualistic, express their beliefs freely and resist any attempt to control their actions. Political and Theoretical Social and Theoretical Political and Aesthetic

ANSWER: Political and Aesthetic

2. The persons who combine these values develop paternalistic relationships with others, serving them through strength. Political and Social Social and Theoretical

Political and Economic

ANSWER: Political and Social

3. The persons who combine these values artistically dramatize emotion and concern for the welfare of others with lofty prose. Political and Social Aesthetic and Social Aesthetic and Theoretical

ANSWER: Aesthetic and Social

4. The persons who combine these values are practical and efficient while possessing style and beauty. Aesthetic and Economic Aesthetic and Social Aesthetic and Theoretical

ANSWER: Aesthetic and Economic

5. For the persons who combine these values, the goals of productivity and satisfaction are equally important and they encourage economic opportunity because it benefits people. Aesthetic and Economic Social and Economic Social and Theoretical

ANSWER: Social and Economic

6. The persons who combine these values are interested in practical applications of knowledge and tend to be inventive.

Theoretical and Economic Social and Economic Social and Theoretical

ANSWER: Theoretical and Economic

Summary
Heres a quick recap of this lesson: Values have various dimensions such as political, aesthetic, social, theoretical and economic. Different people are influenced by different dimensions and their characters are shaped by these values. These values are often found in combinations in people. The combinations are sometimes congruent and sometimes contradictory.

Module 3 Introduction
This lesson talks about ethics and how they have their origin in values. It describes the different factors that contribute to ethics like values, morality, religion and law. It also talks about the four bases of ethical behaviour -- integrity, duty, concern for others and social responsibility.

Defining Ethics
Defining ethics is not easy. This is because we all know vaguely what ethics is but dont always agree whether something is ethical or not.

Ethics is related to issues of rightness and wrongness. These are determined by ones values.

Ethics and their Origin in Values

Our sense of ethics is based in the values we hold dear and our actions are guided by our values, whether we are aware of it or not. If our values are offended in any way, it disturbs us. This may not be easy to explain to someone else who doesnt share our values. Now, lets look at two examples to understand Ethics and their origin in Values. Click the links to learn more .

Example One One may have a value whereby no bribe will be given or taken. Let us suppose a person is invited to a dinner in a five star hotel by a vendor whose tender is being considered along with those of others. Is this ethical? Should that invitation be accepted? Does it amount to a 'bribe'? If instead, he had been presented with a calendar and a diary, would that amount to a bribe?

Example Two Let us suppose that a doctor recommends a patient to a specialist or for an investigation, and takes a cut from the fees paid to that specialist or to the laboratory doing the investigation. Is this ethical? What is it that decides the rightness or wrongness of that action of the doctor? If the reference was necessary in the opinion of the doctor, in the circumstances of the case, does the fact of there being a cut affect the rightness of the action? (Perhaps not, but there could be differences of opinion on this.) How does one define the limits of the right and wrong?

Contributing Factor I: Values

Our sense of right and wrong, or what is proper or not proper, has its base in the values that we uphold or cherish.

Values are guiding principles that: Determine ones evaluation of what is right and wrong Constitute the foundations of one's discipline that are deep-rooted, fundamental beliefs Lay down one's standards of propriety Are responsible for a large part of one's instantaneous response to situations.

If a person is forced to do something wrong, which is against his values, his conscience rebels against it. Conscience can thus be seen as the custodian of values.

Contributing Factor II: Morality

A person who is moral is supposed to abide by certain principles, which by implication, are deemed to be important. He would do this even if it adversely affected his personal interests.

The expression "moral victory" is usually used to refer to a situation where there may have been a defeat in an election or in a court case or in a fight for supremacy, but the person defeated did not compromise on his principles of clarity, propriety, or rightness of conduct. These principles, while not sacred in themselves, are held widely as such by large sections of the community. This explains why the person is acclaimed as having won a moral victory.

Though there are minor differences between ethics and morality, for our purposes, they can be taken to mean the same. Both refer to aspects of good and evil, rights and wrongs.

Contributing Factor III: Religion

All religions have the same basic themes regarding propriety of conduct in relation to other beings. The differences between religions are essentially in practices and rituals.

Religious teachings play a huge role in creating values and so, in determining our ethics. All religions have some basic themes: recognise the universality of all living beings, do good to others and not harm, be humble and not arrogant, not to get lost in the trivialities of the material world and to hold oneself accountable for ones actions.

But there are several matters on which individuals have to choose and on which religious prescriptions may not be uniform. Lending money on interest, eating meat, status of females, sanctity of marriages, are examples.

Society tends to sanctify values which are pragmatic, taking into account the faiths of its people and its own special circumstances. The ongoing debates on the rights of females to inheritance, uniform civil code, etc. are examples of diverse pressures interacting to establish appropriate values.

Contributing Factor IV: Law

What is proper may not be legal.

Within a family, one supports one's parents or children or spouse or brothers/sisters with money, as normal duty. No documents are prepared in evidence of such support and no interest is charged. This is no business transaction. Such transactions are sometimes made to look like business transactions for tax purposes. That would be legal, but not ethical.

In some big organisations, false cash vouchers and medical certificates are submitted to support claims which are genuine, but not recognised under the rules. These actions are not legal, but they are not unethical.

Ethics are Contextual

Ethics are contextual in nature -- what might be right in a given situation need not be right in another. Click the labels to view a few examples.

Money Lending
Ethical dimensions vary according to the context, If you were to ask a friend for change for a hundred rupee note, you would expect him to return a hundred rupees in change and not pocket a rupee or two as commission. But it would be alright for a money changer to charge a commission.

The money changer's action is accepted as legitimate business profit, a concept which is quite alien to that of earlier societies. Making a profit amounted to an unethical practice before trading and money became part of normal life.

Overcharging is generally considered wrong. However, people dont think that a five-star hotel charging Rs.15 for a cup of tea is wrong or a call from a posh hotel being charged at several times the telephone departments rates. It would be considered wrong for a reputed shop to quote a price higher than the one at which it will make the sale, although it would be quite in order for a roadside shop to quote Rs.300 and then sell it for Rs.30. Issues of proprieties and ethics can thus be determined only in specific contexts.

Food Habits
In some societies, eating non-vegetarian food is against the societal values and norms, where as in some other societies, it is perfectly normal to eat meat and other non-vegetarian food. While a person belonging to the former kind of society will view consumption of meat and fish products by an individual belonging to the second type of society as unethical and immoral, the context here is the societal value system and the personal values of the individual.

Reference to a Textbook in an Examination

One could look at copying in examinations, How wrong is it? Does the answer depend only on the rules prevalent?

There are several educational institutions abroad which permit reference to textbooks during examinations. The opinion can be validly formed only in the context of the educational and examinations systems of the respective

institutions. Perhaps, reference to a textbook would be only as much help as reference to the logarithm tables. It may not make any difference to the marks.

The evaluation must also take note of the fact that in India, the marks obtained in an examination make all the difference with regard to admission to higher courses as well as in employment. Someone who dares and copies may derive a lifetime advantage over the more obedient, but more-scholarly. There is unfairness here. In this context, how does one evaluate the behaviour of the invigilator who may ignore the copying because of threats of physical assault?

Ethics and Intentions

While evaluating the ethics dimension, it is necessary to look at intentions. An action is unethical only if the consequences were known in advance, or at least could have been anticipated. If the intention was to do harm, the act is unethical. If there was no intention of doing harm but harm did occur, then it is not really unethical. Click on the labels to look at some examples of ethics and intentions.

Murder Trials Even the administration of justice gives the intention behind the action great importance. For example, the act of killing another is not called murder if the killer had no intention of killing the other person. Death may have occurred by accident of circumstances or in the course of a struggle. Manufacturing Defects If a flaw is found in a manufactured product, it does not mean ipso facto, that the manufacturer was unethical. The ethical issue will have to be evaluated by asking questions such as: How long did he knew about it? How did he respond to that knowledge did he try to rectify it, did he ignore it, or did he try to suppress it?

Sometimes a manufacturer may not be aware of the defects until the product is already in the market. Does he then disavow it, resist paying appropriate recompense, defend his company, rationalise, explain away, deny wrong, or blame someone else? All these actions are worse than trying to rectify the error. An ethical manufacturer would probably take steps to correct the defect at the first hint of trouble, withdraw supplies from the market, investigate the extent of damage that could have been caused, and offer to compensate those who may have suffered as a consequence. The extent of his success will not affect his ethical evaluation.

Astrological Predictions
Consider the case of an astrologer who is being consulted on the suitability of a proposal for marriage. The astrologer could make a genuine error in reading and in interpreting the stellar indicators and the advice may turn out to be wrong. There is no cheating here. But if he had, under pressure from someone, given a favourable opinion while his reading of the horoscopes had shown negative indicators, he has knowingly violated the trust placed in him.

Integrity
The dimensions of ethics include adherence to truth and a commitment to justice and to personal and public integrity. The meaning and implications of these are very wide. One could get into long debates on what constitutes truth or justice. Scholars and philosophers may interpret truth in terms of the Absolute, while ordinary mortals may mistake their perceptions to be the truth. The standards of integrity can also be divergent. What is meant by integrity in the context of ethics is not financial integrity or honesty, but integrity of character, which in a broad sense, is consistency in thought, words, and deeds. For the purposes of our day to day dealings, we are likely to interpret actions of the following kinds as unethical. Cheating Seeking benefit to self, regardless of the interests of others

Saying one thing and doing another

Duty
It is said that one is ethical when one is doing his duty. Duty has to be understood as a responsibility or an obligation vested in a person by virtue of his birth, employment, profession or whatever.

Duty is not to be seen as something forced upon another, and to be performed as a compulsion, without a choice.

How would one look upon the duty of a son to his father or of an employee to his master or to the organization? Would the latter be on the same as what is expected from a slave by his master? A person doing his duty need not be thanked. Action in the course of duty is not a favour done. Dereliction of duty is cheating and unethical as is bending the proprieties of one's function to achieve personal ends.

Concern for Others

One of the basis for ethical action is the concern a person has for others.

If a person has no concern for another, he may not bother about how anything affects the other person. His tendency would then be to be selfish and selfcentered. When he does have concern for another, he will not do anything to harm that person. On the contrary, he will only try to do him good. He will not exploit him. Exploitation has the implication of unfairness in usage. What is unfair is unethical. Indian tradition, which asserts that the divine resides within all beings, would persuade us to have concern and respect not only for all human beings, but for also animals and plants. Many modern researchers also recognise that animals and plants have feelings.

A person who has concern for the others is convinced that he should not cheat them. It is the same concern that will drive actions for consumer orientation, participation of employees in matters, concerning them, welfare of the underprivileged, adequate safety precautions and so on.

Social Responsibility
There is a relationship between ethics and social responsibility.

Ethical behaviour is socially responsible behaviour. Ethics is related to the values of an organization. Its base and focus are internal. Social responsibility focuses on the external. Socially responsible' behaviour can emerge from nonethical bases like seeking advantage over a competitor or manipulating the emotions of people, or diverting attention from questionable actions. One may install adequate safety features in machines, systems, or products, because of the concern for the well-being of the users or because of the fear of consequences that may otherwise ensue. One may recruit locals and spend on their training out of concern for the development of the neighbourhood or out of tear of animosity that could otherwise be generated. The outward behaviour is socially responsible. It may or may not be based on ethical considerations; it could really be manipulative. The real test would be to check

Learning Activity
Test your understanding of what you have learned so far. Drag the terms into the correct slots to complete the following sentences. Click Submit to check your answers. concern duty non-ethical bases character

1. Integrity in the context of ethics means integrity of __________________. ANSWER: Character

2. ___________ is a responsibility or obligation vested in a person virtue of his birth, employment, profession

ANSWER: Duty

3. A person who has _____________ for others, treats them ethically.

ANSWER: Concern

4. Socially responsible' behaviour can emerge from _________________.

ANSWER: Non-ethical bases

Check Your Understanding

Read the statement given below and select the appropriate option by clicking on it.

1. Ethics are contextual in nature -- what might be right in a given situation need not be right in another. True False

ANSWER: True

2. If the intention of an action is not to do harm, but harm still occurs, then the action is still deemed unethical. True False

ANSWER: False

Summary
Now for a recap of this lesson: Ethics are related to rightness and wrongness and are determined by ones values. Our ethics are based on the values we hold dear. There are various factors contributing to ethics. These are: value, morality, religion and law. Ethics are contextual. What is ethical in one situation may not be considered ethical in another. While judging whether an action is ethical or not, we have to look at the intention behind it. Ethics are based on four foundations: integrity, duty, concern for others and social responsibility.

Module 4 Introduction
This lesson talks about the role of ethics in business. It tells you about the areas of concern for businesses in which they have to behave ethically. It also takes a look at the interplay between logic and ethics in business and the dilemmas that can result from this. The lesson covers values in business too.

Ethics in Business
The primary concern for a business is the production of goods and services for its customers. But businesses also concern themselves with other responsibilities to different segments of stakeholders. Since these responsibilities are based on respect for the interests of the respective segments, they imply honesty, fairness, trustworthiness and so on in the dealings.

Apart from customer satisfaction there are other areas that a business needs to look into while maintaining the highest form of ethical behaviour. These areas include: Interpersonal Interactions Considerations of Cost Staying ahead of the Competition Winning Customers Protecting Oneself

Areas in Business that Call for Concern:

As weve just seen, businesses have several areas of concern regarding ethics and values.

Interpersonal Interactions:
Some unscrupulous individuals try to take undue advantage for personal benefits.

Considerations of Cost:
It is important and ethical for all workers to keep costs in mind while dealing with waste disposal or where ensuring quality is concerned.

Staying ahead of Competition:

Many businesses do not want to lose out on competition and want to be first in the market at any cost.

Winning Customers:
Some businesses send out false messages through their advertisements in order to obtain and retain customers.

Protecting Oneself:
Sometimes business want to hide some data to protect themselves from attacks, sanctions or criticism. On analysis, it is seen that such issues arise almost always when they are seeking an advantage which they feel can only be achieved at the cost of someone else.

Understanding the Concern for Business Ethics: Part I

Lets look at some examples here to understand the concerns about ethics in business better. Click the links to read the examples.

Example One An enterprising head of the retail business of a Bank takes out large advertisements, highlighting low interest rates for its car loan and housing loan

products. The advertisements do not include any references to unsatisfactory features such as the high processing charges and high prepayment penalties. He is able to attract a large number of clients and his retail portfolio shows a large increase in the short run. Is this ethical?

Example Two Trainers and teachers usually work with the same base material. Rarely do we find original material in terms of exercises. One exceptionally effective trainer had perfected his course after a lot of research work and with help from foreign experts, and he was in great demand in industrial training circles. A professor once got a session conducted by this trainer completely tape-recorded and he started offering the same course as his own. Those familiar with the profession could distinguish between the original and the copy. Yet the professor did manage to persuade many to use his services.

Was it wrong to copy the course? There was no patent, after all.

However, the surreptitious manner of tape-recording and the reluctance on the part of the professor to acknowledge the original indicate that there was a sense of guilt involved. The action was therefore 'unethical', in the mind of the professor himself. He had, however, done it for the sake of economic advantages.

Example Three Another example from the consultancy or legal profession: A person invited to be an associate in a particular assignment tries to canvass for a direct assignment from the client, offering cheaper terms and thus cutting out the original professional from the picture.

This sort of diversion happens also in sales where a senior or expert taken along to explain some intricate points of law or taxation, quietly diverts the business to his account, leaving the original contact in the lurch. In research institutions, we

hear of seniors presenting papers at conferences on the work done by their juniors, without so much as acknowledging that the work and the paper were those of the juniors. All these are cases of cheating and/or breach of faith. The breach is not of a written, contract, but of an unwritten one that embodied faith. They can also be described as cases of "stabbing in the back".

Understanding the Concern for Business Ethics: Part II

Some of the issues that have to be addressed while discussing ethics in business are:

Is ethics compatible with the logic of business? Can a business firm be moral? Does a business have values? How do they evolve? Who influences them? How are they institutionalised? How are ethical dilemmas in business resolved? How do individuals in business resolve conflicts arising out of their individual values not being consistent with those of the organisation?

The Business Logic

The real objective of business is to make money so that those who have invested in the business, whether it be the proprietor, partners or shareholders, get adequate returns.

To ensure its continued presence in the market, the business may lay the stress on satisfying customer needs and demands. The stated objectives, however, may be to satisfy customers needs. A dilemma crops up when the real purpose of becoming economically profitable and remunerative and the stated objectives pull in different directions.

There could also be stated objectives of a socially desirable nature and ethical dimensions, like being a responsible citizen, concern for the environment and so on. However these too pose dilemmas. Lets read about it.

The Ethical Dilemma

At the individual level, it is easy to recognise that selfishness or self-centredness is not a desirable attribute. However, at the business level, it is accepted that a company should look after its own interests.

At an individual level, the conflict is usually between one's wants and one's duties, to be resolved in favour of duties.

At the business level, the conflict is between economic and social performance, generally resolved in favour of economic performance.

It is obvious that social performance is inconsistent with economic performance and thus the ethical dilemma.

Balancing Business Logic and Business Ethics

Every decision is said to have an ethical dimension, that is, it is value driven and is followed by consequences of relative benefits or harm. Lets look at an example to understand the interplay between business logic and ethics in business better.

There are cases of businesses that have laid primary importance on social performance, only to find later that they have derived much stronger advantage in economic performance. Such companies not only retain customer loyalty but also earn the respect of regulatory authorities, who process their papers with greater speed and diligence.

Example
Excel is a company which refused to deal with products that it believed harmed its customers' interests although such products were the rage in the market. This refusal soon cost the company dear, both in terms of sales and shareholder support. However, in the long run, it paid off. Share prices which were hovering at 8 and 7, shot up to 900.

Values in Business
Most organisations have statements that state their mission. Mission statements incorporate the values that the company seeks to follow in the conduct of its affairs and these are expressed in different ways.

Values in business can be expressed in terms similar to the following:

Honesty and trust in all our relations with customers shareholders, business partners

Recognise and respect the needs of individuals Hold safety and health as our highest values Never take or give bribes No false billing, invoicing or documentation Carefully follow all rejects on quality 100% testing of finished product

Values in Business: Some Examples

Values are meant to act as guidelines for business decisions, not just to hang framed on the boardroom wall. Often, values are transgressed and this is generally attributed to the exigencies of business, the compulsions of economic performance. Lets view a few examples of adherence and non-adherence of the stated values. Click the links to learn more.

Example One A comparatively small advertising agency spurned a million dollar liquor account and terminated its prestigious tie-up with a giant international agency which wanted that account to be handled in India by this agency. The agency took this decision because it had a value of not promoting liquor. The decision to lose the business and end the tie-up was made after long discussions within the agency among the senior members.

A finance company made good on its own the losses incurred on the portfolio funds of a client. Some within the company had argued that the client had to accept the losses, as he would have accepted the gains. The argument that prevailed, however, was that the client had entrusted his funds to the company's care on the faith that there would be no loss but reasonable gain and that this faith was at stake.

In the USA, Merrill Lynch paid up all its customers their dues when the insurance company which it represented, had to wind up. Merrill Lynch argued that the faith of clients in Merrill Lynch was at stake and the loss that it would incur would be worth the retention of faith. It was not legally binding for either the Indian company or Merrill Lynch to act in the manner they did. They were bound by their values. Both were prompted by their sense of propriety, otherwise called ethics. The Indian company was not allowed to publicise this information. On the contrary, the Merrill Lynch action was widely publicised.

Example Two There are cases of companies who proclaim a 100% quality check and safety being found negligent, particularly during rush periods, when there is demand for high levels of production.

In a pharmaceutical company, the chairman had said that he would rather discontinue manufacture of drugs than compromise on standards. The company

had actually compromised on standards and become the subject of enquiry and penal action by the Drug Controller.

Values are stated and then become matters of convenience. They are not company values governing its activities. Equally irrelevant are values stating honesty and respect for others, if the company does not refrain from making false claims about its own virtues and the risks in the products of its competitors.

A story about there being nickel in chocolates affected the sales of Cadbury's for some time. The alleged presence of fluoride in toothpaste was another instance.

Example Three The business of journalism genuinely faces the dilemma of balancing its duty to inform the public with the need to respect the rights of individuals and of organisations. For example: Should a newspaper be a party to an employee revealing organisational secrets or even confidential papers however important and interesting the information may be? Perhaps the employee has a personal agenda of getting even with someone. It may be a case of theft. What the Government seeks to keep secret suddenly appears in the press perhaps jeopardising strategic initiatives.

This may be a scoop for the press but it is not without adverse implications. The paper concerned will find it difficult to insulate itself against the implicit undermining of the relationship between employer and employee. Newspapers also have some secrets to keep, relating to sources of information and/or payments made. In our country particularly, anything that appears in print is considered true. That being the level of faith in the print media, any neglect in verifying the correctness of information would be tantamount to misleading and 'cheating and therefore, unethical.

In each of these examples, although the company was incurring an immediate financial loss, what it was gaining was the trust and faith of customers, which is important for a business in the long run.

Hallmarks of Ideal Business Values

A good business strategy relating to the establishment of values should have the following elements.

1. It should be clearly articulated 2. It should be communicated to all stakeholders. 3. There should be personally committed company leaders, credible and willing to take action on the values they espouse. 4. The espoused values should be integrated into the normal channels of management decision-making and reflected in the organisation's critical activities. 5. The company's systems and structures should support and reinforce its values. 6. Managers throughout the company should have the skills, knowledge and competence needed to make ethically sound decisions on a day-to-day basis.

The values of an organisation are seen not in its declarations but in its actions and practices. It makes these values known to all through discussions and other forms of exchange.

Activity
Here is true and false exercise to test your understanding of what you have learned so far.

Select the correct option for the statement below. Click Submit to check your answers.

True False

1. For businesses, winning customers is an area of concern regarding ethics.

2. The real objective of a business is to satisfy customers needs.

3. At an individual level, the ethical dilemma is between ones wants and ones duties.

4 Mission statements contain the companys targets for the year.

Check Your Understanding

Read the statement given below and select the appropriate option by clicking on it.

1.

The primary concern of business is Interpersonal interaction Producing goods and services for customers Staying ahead of the competition Winning customers

ANSWER: Producing goods and services for customers

At the business level, the conflict is between Economic and social performance

Organisational and individual performance Social and organisational performance Organisational wants and organisational duties

ANSWER: Economic and social performance Summary

Here are a few takeaway points from this lesson:

While the primary concern for businesses is production of goods and services for customers, there are various other areas in which it has to act with ethics.

These areas are interpersonal interactions, considerations of cost, staying ahead of the competition, winning customers and protecting oneself.

There are several questions to be answered while discussing ethics in business such as Is ethics compatible with business? Can a business firm be moral? and so on.

The real objective of businesses is to make money and if there is a difference between its real purpose and the stated objectives, the business gets caught in a dilemma.

Every business has an ethical dimension and has consequences that are either beneficial or harmful.

Mission statements incorporate the values that a company wants to follow. Values should act as guidelines to business. The values of an organisation are seen not in its declaration but in its actions and practices.

Module 5 Introduction
This lesson talks about the five areas of concern to the Bank. It also explains the importance of understanding the Banks core values. It lists out the core values of the Bank its vision, mission and values.

Five Areas of Concern for SBI

Lets look at the five areas to which the Bank needs to pay serious attention.

1. Threat due to the increasing competition global in nature 2. Reduction in market share 3. More demanding and educated clients 4. Increase in non performing assets 5. Increase in fraud

Why You Should Know and Understand the Core Values

Individual and organisational values play an important role in your work life. Read on to see why.

Values influence our choices, and these choices, in turn, are important in determining our effectiveness at work, as they influence outcomes.

Organisations are built on trust of customers and other stake holders. State bank has been in existence for more than 200 years and this because, it always enjoyed TRUST of customers. This is possible because SBI has been a value based organisation

You are likely to make better choices in any situation if you are aware of the reasons for making those choices and acknowledge the extent to which your values are directing your choices.

Practicing the Core Values

Lets now take a look at the Banks core values. A deep understanding of these values will help you work towards them. We all need to live these values and implement these in our day to day actions At the root of these values is the desire to derive a greater sense of meaning and wellbeing in life. 1. We will always be honest, transparent and ethical. 2. We will respect our customers and fellow associates. 3. We will be knowledge driven. 4. We will learn and will share our learning. 5. We will never take the easy way out. 6. We will do everything we can to contribute to the community we work in. 7. We will nurture pride in India.

SBIs Values Thanks for Participating!

Youve come to the end of the course on Value and Ethics. We are sure this course will help you relate to the values and ethics of the Bank better and will show you how to carry on your day to day activities in a way that complements the Banks values. We have to perform and act upon Banks mission , Vision and Values and the outcome would be continued TRUST and support of Customers.

Go ahead and put into practice what youve learnt in this course. You are sure to find it a rewarding experience!