Assignment

th Semester-5

Business ethics:1) Meaning of ethics 2) Nature of business ethics 3) Importance of ethics in business 4) Sources of business ethics 5) Improving ethical decision making

Values:1) Meaning of values 2) Types of values >Types from the view point of clarity >Types from the view point of Means to an End and the End Values. 3) Formulation of values

Attitude:1) Meaning of attitude 2) Types of attitude 3) Nature of attitude 4) Formation of attitude 5) Changing attitude

Meaning of Ethics:
Ethics is a branch of philosophy which lays down the moral standards for judging the act or behaviour of a particular person in the society as good or bad. Ethics refers to a system of moral principles-a sense of good and bad, right and wrong, desirable and undesirable actions of a particular person and his motives and consequences . These moral principles and standards are used to judge the act or behaviour of a particular person as good or bad.

Nature of business ethics: 1) Business ethics is a science:

Business ethics is a science systematised body of knowledge.It contains moral
principles or standards about human behaviour.This principles or moral standards have been developed or evolved over time by the religious gurus, teachers, culture experience and legal system.

2) Business ethics is an extension of the ethics of the society:

It principles are used for judging the acts of businessmen, supervisior, manager or chief executives officer as good or bad.

3) Unity of morality:
Two theories have been developed about business ethics: A) Moral unity ethics and B) Theory of morality

4) Flexibility:
Moral standards are not absolute and rigid.They are relative to time,place and space and flexible too .

5) Teaching is possible:
Ethics is a systematised body of principles or standards. Behaviour violating the standards turns out to be a bad behaviour.

6) It is a science but not accurate science:

The principles are changing .

Importance of Ethics in Business:

1)Ethics corresponds to basic human needs:
To be ethical is the basic human need.He wants To be a member of the organisation whose objective and activities are ethical.Most of the top level executive respond to the basic need of their employees.

2)Values create credibility with the public:

moral values create credibility of the company with the public and increase its prestige.As result its product become popular and sales increase.

3) Values give management credibility with employees:

Management respecting values and moral standards is respected by the employees. Organisational ethics when perceived by employees as genuine create common goals, values, language in the organisation. 4) Values help better decision making: Ethical standards lead to the development of ethical attitude of management which helps in better decision making, which protects & promote the interest of stakeholder of business.

5) Ethics and profits go together:

Values driven companies increase their prestige and their popularity about sales & profit ultimately.

6) Law can not protect society but ethical standards can:

Ethical standards are more powerful than law. People fear of doing something ethical wrong because it creates bad impression in the society . Apart from delayed justice it is costly too. Therefore, laws are used as a last resort.

7) Helps winning the trust of creditors , agents, banks & suppliers:

Ethical acts win the trust of above said parties. As a result company can perform its various task fast & without any pitfalls & complication. Its functions become smooth and effective.

Sources of Business Ethics:

There are mainly three sources of ethics: 1) Religion 2) Cultural Experience 3) Legal systems

1) Religion:
Religion is an important repository of ethical values There are many religions in the world like Hinduism, Jainism , Buddhism, Christianity , Islam etc. Each religion is based on ethics and moral values . It teaches its followers the moral standards and values for living a happy life . It is expected that business decisions are made in compliance with moral standards set by religion.

2) Cultural Experience: Culture refers to a set of values , rules and moral standards transmitted from generation to generation and acted upon to produce behavior that fall within acceptable limits .Cultural experience is the main teacher of values and acceptable moral standards . Civilization itself is a cumulative cultural experience of four distinct stages through which the modern civilization has passed . These four stages correspond to the changing economic and social arrangements in human history . Four stages of civilization are as under : (A) Stone Age (B) Agricultural Stage (C) Industrial Stage (D) Information Stage

3) The Legal System: Laws are rules of conduct that guide behavior of the society . They prescribe ethical standards and guide the behavior of the society . As and when new evils emerge , they are amended. Whatever ethical standards the law prescribe they are binding to business . Society expects business to abide by law and obeying law is presumed to be ethical behavior. Society expects business to be law binding . However , business many a times does not abide by the rules . Violation of legal provisions is common in business. When ethical values are lost public trust is lost and the existence of the business is at a risk.

3) Co-existence of divine and devil: We find coexistence of good and bad, divine and devil in a particular product . E.g. , penicilin injection . 4) Limited knowledge of consequences: If we know that consequences of the decision will be good , it is easy to make the decision but if uncertainty prevails about the consequences , decision becomes difficult. 5) Antagonistic interests: Antagonistic interest also make the decision difficult . 6) Changes in ethical standards : Ethical standards change with the passage of time . During the primary stage of industrialisation profit maximisation was a good objective but today it is not so . 7) Manager surrounded by dishonesty: A manager is influenced by his surrounding environment .The behavior

and ethical values of other people with whom he is performing greatly affects his decision also . 8) New ethical problems: The modern manager face new ethical problems like social responsibility , corporate citizenship etc. These new problems can not be solved by traditional ethics . And in the context of changed circumstances & values new principles of ethics have not been developed. In the absence of that it is difficult to solve the ethical problems. 9) Ethical problems emerging from the size of the business: Because of adoption of new economic policy of libralisation competition has become more accurate and intensified. In order to avail of economies of large scale there is increasing trend for the cult of colossal. In order to cope up with the complex situation value added new concepts like group leadership,collective decision making..

Improving Ethical Decision making:

For improving ethical decision making two things are essential: (A)Indentifying difficulties in decision making and (B) Making practical suggestions for making ethical decisions. (A) Difficulties of Ethical decision making: One has to face the following difficulties while making decisions on ethical ground: 1) Dilemma : Managers have to face many dilemmas while making ethical decisions . One has to make a choice between two conflicting course of action. 2) Difference between facts and values: Managers have to face a distinction between facts & values which create difficulties in making decisions .

(B) Practical suggestions for making ethical decision:

(1) For the solution of ethical problems observe the following three moral principles: (a) Moral idealism : This principle suggests that certain acts are good and others are bad. Pursue those acts which are good and avoid the acts which are bad. (b) Intution: Take intutive approach to morally difficult situations. (c) Utilitarianism: Dont consider act or motives but consider only the consequences . If the consequences represent a net addition to societys good or happiness the act is morally right.

(2) Use tactics to illuminate moral choices: There are different tactics. One such device is to create imaginery opponent & enter into conversation with him. Second device is to have debate with an intelligent person who takes a different stand. The third device is to seek advice of a more experienced and ethically sensitive person in organisation. The fourth device is to write an essay in favour of a stand and then against the stand. The fifth device is to write a case study narrating your situation as third person. (3) Balance sheet as pros and cons: Prepare the b/s with pros and cons of the probable decision. Compare them and make decision on the basis of net merit.

(4) Decide ethical priorities : Before the problem arise decide the priorities when you are tension free. When the problem arise act as per priority list. (5) Public commitment on ethical issues : One should identify potential areas of ethical conflict and make public commitments to the opposition about the solution. (6) Setting personal examples: It is said that the example set by the great is followed by the small. (7) Knowledge of ethical imperfection: On ethical issues one should not expect perfect solution to each issue. Science of ethics is imperfect science and therefore does not provide ready answer to each ethical issue . Knowledge of this fact also helps in ethical decision making.

A value can be defined as something that has worth or importance to an individual containing judgemental element. * Characteristics of values: 1) Values are moralistic in nature. 2) Values are judgemental element of an individuals idea. 3) Though values are relative to time , place and space they contain the element of eternity. 4) Values guide the behavior and actions of managers and employees. 5) Values resist to change over a short period of time.

*Types of values:

(A)Types from the view point of clarity : 1) expressed or clarified values and 2) implied values 1) Expressed or clarified values : Values stated in written or oral form are known as expressed or clarified values. Clarified values are the values which are commonly and widely accepted by the people. 2) Implied values : Values which are not clearly stated but inferred from the decisions or behavior of the managers or employees are known as implied values .It is possible that it may be different from stated values.

(B) Types from the view point of Means to an End and the End values: 1) Instrumental values : Values which serves the purpose of an instrument or means for the achievement of end values or terminal values are known as instrumental values. They refer to a single belief that a specific mode of conduct is personally and socially preferable in all situations with respect to all matters. 2) Terminal value : Terminal value means end value. It refers to the belief that a particular end like prosperity , world peace , freedom , equality etc .is personally and socially worth achieving. Terminal values are the ends and the instrumental values are the means to ends.

Formulation of values : The following institutions and self experience contribute to the development of values of a particular person : 1) Family : Family is the most important micro level social institution contributing to the formulation of values of family members. In the family parents and children live together and they are tide with each other with the bondage of love and affection for each other. 2) Religious Institutions: Another source of values is religious institutions. The leaders of the institutions preach the values of their religion

sect to their followers in particular and to the general public in general. 3)Social and cultural institutions: For promoting the welfare or the society many social and cultural institution have come into existence. They by their social objectives and activities promote moral values among their members and society as a whole. 4)Educational Institutions: Educational institutions like school, colleges, universities etc.teach the values to the students by prescribing codes of conducts and discipline for the students.

5) Self Experience: Each individual leans from his self experience also as to what is good and what is bad, what is right and what is wrong, what is society desirable and what is not desirable. Different institution and experience framing the value system of an individual are also known as sources of values.


Meaning of attitude: According to Keith Davis Attitude are the feelings and beliefs that largely determine how employee will perceive their environment, commit themselves to intended actions and ultimately. There are three type of attitude: A)Positive Attitude: If an employee has strong feelings, keen desire to cooperate for the achievement of something he is said to possess positive attitude. B)Negative Attitude: An employee with poor feelings, and feelings of non cooperate for job, company or event he is said to possess negative attitude.

 C)Indifferent Attitude:

an employee with indifferent beliefs and indifferent desire to co-operate with others for a particular matter, event, job or company he is said to possess neutral or indifferent attitude.

Nature of Attitude:
1) An attitude is a mental condition of an individual: It is exhibited in the feelings, beliefs and ideas of an individual.

2)Attitude is of three types: a) positive attitude b) negative attitude c) indifferent attitude

3) An attitude influences the conduct or behavior of an individual: The positive attitude gives birth to positive behavior of a person. Negative attitude has discouraging influence on behavior of a person. Indifferent attitude have no influence on either side. 4)An attitude influences the level of moral: Person with positive attitude perform the job with higher level of morale while negative brings down the level of morale of employees. 5)Attitude reflects the value system of a person: Value system of a person moulds his attitude. Terminal values determine the attitude of a person.

6) An attitude affects productivity and cost: Positive attitude increase productivity and decrease cost per unit of production. Negative attitude decrease productivity and increase cost. 7) Attitude can be changed: Negative and indifferent attitude can be turned to positive attitude by employing positive and negative motivational tools.

Formation of Attitude:
1)Employees ` own perception about his job and company: The job I do is a significant part of the machine and the company. I work in is a front line company of the industry This type of perception of an employee about his job and company develops positive attitude. But negative perception about his job develops negative attitude. 2)Workplace environment: Air conditioned or fully ventilated workplace with sufficient space develops positive attitude. While this lack of ventilated and congested workplace develops negative attitude.

3) Values: If the employee is honest, loyal and faithful to employer he may develop positive attitude. But the man lacking inclination to work and dishonest may develop negative attitude. 4)Leadership style: Leadership style based on the faith in capabilities of the subordinates may develop positive attitude of employees. Contrary to this autocracy may create negative attitude. 5)Motivation: Positive motivational tools in the long run cultivate positive attitude and negative motivational tools cultivate negative attitude.

6)Training: Training also helps in developing positive attitude by imparting job knowledge, explaining the importance of the job and developing required skills. 7)Friends and peers: There is exchange of opinions and ideas between friends and peers from a specific common opinions about the company and its management which also contribute to developing a particular type of attitude.

Changing Attitude:
Changing attitude means changing negative and indifferent attitude into positive attitude. The ways of changing attitude are as under:
1) Providing new information: 2)

If new information about promotion opportunities, expansion programmed, future welfare programmed of the company etc.is provided to the employee his negative attitude may be changed into positive attitude.

2) By resolving the deficiencies: If the employee is transferred to the job matching his qualification or training is provided to resolve the deficiencies his negative attitude may be converted into positive attitude. 3)Use of fear: Use of fear like demotion, stopping of increment, not to make permanent, wage cut etc. will help temporarily to turn to positive attitude. 4)Adoption of proper leadership style: Proper leadership style based on the consideration of employee factors may also turn negative into positive attitude.

5) Use of positive motivational tools: Use of positive motivational tools like appreciation, awarding the excellence, financial incentives, production bonus etc. may change negative into positive attitude. 6)Co-option: Negative attitude can be changed into positive attitude by co-opting experienced and qualified employee on a committee or board. 7)Friends and peers: Negative attitude can changed in to positive attitude by removing doubts and misunderstanding about the company management through exchange of ideas and opinions.