Ethics & CSR

• Understanding Ethics and Values

• Principles of Ethics
• Types of Ethical Theories
• Personal Ethics
• Work Ethics
• Professional Ethics
• Business Ethics
Scope
• Understanding CSR
• Importance of CSR
• Relevance of CSR
• Needs and Objectives of CSR
• Driving Forces of CSR
• Implementation of CSR
• Benefits of CSR
Professional Self 3D–HD
Personal Self

Spiritual Self

Development from inside to outside

Professional Self
Competence Personal Self
Knowledge
Behaviour
Skills
Conduct
Leadership
Relationship
Motivation
EI
Interpersonal Dynamics
Reputation
Efficiency
Effectiveness Spiritual Self
Role Modeling Character
Mentoring Intent
Harmonising Attitude
Humility
Values
Love
Care
Compassion
Development from inside to outside
 3D–Holistic Development
Conduct
Performance

Personal Self
Behaviour

Spiritual Self
Character
Ethics Traits

Beliefs

Direction
Skills
29 May 2018 5
 Hard
Soft Professional Self Skills(IQ)
Skills(EQ)
Personal Self
Physical Self Excellence

Performance

Spiritual Self
Behaviour
Energy
Humility
Physical Humane
Skills(HQ) Skills(SQ)
29 May 2018 6
 Important Leadership Traits

Integrity C
h
a
Courage

Vision r
Selflessness a
Maturity c
t
e
Humility

Perseverance r
“ Leadership is a potent combination of strategy and
character. But if must be without one, be without the
strategy”

Collin Powell
 Character

Values

Intent

Attitude

Behaviour

Reputation

Altitude
(career)
Character Formation Parents Teachers

Infant
Mentors Opportunities

Adult
Leaders Society

Individual Character

National Character
 Nation
Society
Group / Org
Individual

Character
 An honest person.
A person with a sense of duty and obligation of the position,
whatever it may be.
Character
A person who tells the truth.

A person who gives to others their due.

A person considerate to the weak.

A person who has principles and stands by them.

A person not too elated by good fortune and not too depressed
by bad.
A person who is loyal.

A person who can be trusted.

 Character vs Reputation
Character
Character is knowing who we are.
Character is the reality.
Character can be damaged by oneself.
Character is an achievement.
Character invites trust.
Character is the interior.
Character is the substance.
Character is constant and reflects core values.
Character is your bank balance.
Character is seen in the right use of strength.
Character is built on values and vision.
Character is strong like a foundation.
Character is built by what you stand for.
Reputation
Reputation is what others think of us.
Reputation is the picture.
Others may damage reputation.
Reputation is a bonus.
Reputation invites admiration.
Reputation is the exterior.
Reputation is the image.
Reputation may be manipulated.
Reputation may be overdraft.
Reputation may reflect strength.
Reputation may be built by brain and beauty.
Reputation is fragile like a glass.
Reputation can be made by what others fall for.
 Parable of Pencil

"One: You will be able to do many great things, but only if you allow
yourself to be held in Someone's hand."

"Two: You will experience a painful sharpening from time to time, but
you'll need it to become a better pencil.“

"Three: You will be able to correct any mistakes you might make."

"Four: The most important part of you will always be what's inside."

Five: On every surface you are used on, you must leave your mark. No
matter what the condition, you must continue to write.”
Now replace the pencil with yourself
One: You will be able to do many great things, but only if you allow
yourself to be held in God's hand. And allow other human beings to
access you for the many gifts you possess.
Two: You will experience a painful sharpening from time to time, by
going through various problems, but you'll need it to become a
stronger person.

Three: You will be able to correct any mistakes you might make.

Four: The most important part of you will always be what's on the
inside (Character)

Five: On every surface you walk through, you must leave your mark. No
matter what the situation, you must continue to do your duties.

Let us proceed with our life, having a meaningful purpose in our heart
Mir Jafar
Amarpali
Morals, Values & Ethics
 Morals Values

CHARACTER
Ethics Virtues

Traits Beliefs
 Morals

Concerned with the principles of right and wrong

behaviour. Following accepted standards of behaviour.
Psychological rather than practical. Morals are always
the same. Immorality varies from generation to
generation. Are ethical principles. Founded on
fundamental principles of right.
 Values

Values are beliefs that people have about what is

important or worthwhile to them. Values influence
behaviour because people seek more of what they
value.
 Ethics

The rules or standards governing the conduct of a

person or the members of a profession
: medical ethics.
Factors influencing ethical managerial behavior—the person,
organization, and environment.

Management - Chapter 3
24
 Fairness

Utilities Justice

Rights & Principles Care

Duties of Ethics
 Moral Theories
Theory of
Utilitarian Theory of Ethics of
Rights &
Theory Justice Care
Duties
 Utilitarian Theory
• Jeremy Bentham – founder of the theory
• Works on the principle of utility or benefit of an action, to
optimize benefits to all constituents of society
• Any action or policy should be evaluated on basis of
benefits and cost it will impose on society
• Plans, programmes and actions of any organization should
be chosen to produce greatest net benefits to all the
stakeholders and people at large, including society
• Expand the scope of ethics and safeguard society, so that it
does not suffer due to partial analysis of cost and benefit.
 Theory of Rights & Duties

• Deals with power of an individual to choose, pursue and protect his

interests
• Such rights are associated with correlated duties
• These rights arise from legal provisions or social provision, they
become moral rights
• If a company prohibits or denies such rights, it is said to be unfair to
its employees
• Any bias, unfairness or extra influential behavior would be seen as
unethical
• Moral theories also offer employees the right to refuse a job, if it
does not to moral standards of professional ethics.
 Theory of Justice

•Revolves around fundamental

principles to guarantee a just and
morally acceptable decision
•Actions should be guided by fairness
•Ensures equity and impartiality
 Ethics of Care

•Necessity of showing extra care and consideration

•Protect someone else from adverse effect of one’s choice
•Necessitates contextual details of situation, to safeguard
and promote specific interests
•Takes care of moral and legal interests
Business Personal Professional
Work Ethics
Ethics Ethics Ethics
 Risk Strategy

Manage
Risks

Key Business
Drivers
Increase
Improve
Sales &
Profits
Share
 Ethical Issues

Overt (seen) Covert (hidden)

 Ethics
Attitude Towards

• Amoral
• Business is business and law = ethics
• Ethically unaware (naïve)
• Business exists only to make money
• Immoral
• If you don’t get caught it isn’t wrong
• Unethical for the firm / Unethical against the firm
• The Moral Employee
• Ethically aware
• Proactive
• Code of conduct
 Business Ethics

Social Good No
Truth Honesty Law Abiding
Responsibility Behaviour Misleading
 Sources of Business Ethics

Societal Ethics

Organisational Business Individual

Ethics Ethics Ethics

Professional
Ethics
 Ensuring
Practical utility
ethical
of BE
behviour

Stakeholders’
Understanding
approach to
right & wrongs
business

Objectives Ethical
Provide of solutions for
Business
Business business
Framework
situations
Ethics
Need for Business
Ethics

• Stop mal practices

• Improve consumer confidence
• Survival
• Protecting stakeholders interests
• Develop good business relations
• Create good image
• Smooth functioning
• Consumer satisfaction
• Healthy competition
 Corporate
scandals

Market place
Globalisation
competition
Drivers of
Business
Ethics

Customer Investor
expectations demands
 •Honesty
•Integrity
•Promise-keeping
•Fidelity
UNIVERSAL
•Fairness
ETHICAL
•Caring
VALUES •Respect
•Responsibility
•Striving for Excellence
•Accountability
Ethical Business Benefits
Business Personal Professional
Work Ethics
Ethics Ethics Ethics
 Balancing of Ethics

Personal Ethics
• Personal integrity
• Moral values
• Social influences

Conflicts Professional
Business Ethics Ethics
• Profit • Professional
• Growth standards
• Survival • Group goals
• Prestige
 Professional vs Personal Ethics

Professional Personal
Ethics Ethics

Professional and Personal Ethics are different from, but not exclusive of, each other

Overlap between Professional and Personal Ethics

Professional more restrictive than Personal Ethics
 Personal Ethics Professional Ethics
Differ for each individual Same throughout organization

Religion, sin, virtue Law, crime, punishment

Learned – parents, teachers, Learned – management, team,
mentors co-workers
Unwritten code of conduct Written code of conduct

Personal choice Professional commitment

Business Personal Professional
Work Ethics
Ethics Ethics Ethics
Basics of
Personal Honest Straightforward Unbiased
Ethics
Principles of Personal Ethics

• Concern for others

• Rational thinking
• Courage of conviction
• Trustworthiness
• Willing compliance of law
• Honesty
• Integrity
• Consistency
• Justice and fairness
• No exploitation
• Benevolence
• Candor (honest & straightforward)
Business Personal Professional
Work Ethics
Ethics Ethics Ethics
 Professional Ethics Malpractices
Bribery Intellectual Financial Identity
Price fixing
kickbacks property frauds theft
Professional Ethics
•Honesty
•Integrity
•Promise-keeping &
trustworthiness
•Loyalty
•Fairness
•Concern for others
•Respect for others
•Law abiding
•Commitment to excellence
•Leadership
•Reputation and morale
•Accountability
 No
Overstatements
misrepresentations

Do not deliberately
Partial truths
mislead or deceive

Honest and
Selective
truthful in all HONESTY omissions
dealings
 Personal
integrity

Not Courage of
unscrupulous conviction

INTEGRITY Principled - not

Not hypocritical sacrifice principle for
expediency

Fight for their Honourable and

beliefs upright
 Worthy of trust

No
Candid
misinterpretation
PROMISE-KEEPING
&
TRUSTWORTHINESS
Forthcoming in
Fulfill promises supplying relevant
information

Correcting
misapprehensions
 • Demonstrate fidelity (faithfulness) and loyalty
• Friendship in adversity
LOYALTY
• Support and devotion to duty
• Maintain confidentiality
• Independent professional judgments
• Avoid undue influences and conflicts of interest
• Loyal to their companies and colleagues
• Proprietary information of their former employer
• Refuse take undue advantage of their previous
positions.
 Fair and just in all dealings
Do not exercise power arbitrarily
FAIRNESS Do not use overreaching
No indecent means to gain or maintain any advantage
Do not take undue advantage of another’s mistakes
Commitment to justice
Equal treatment of individuals
Tolerance for and acceptance of diversity
Open-minded
Admit their mistakes
Change their positions and beliefs where appropriate.
CONCERN FOR OTHERS
 RESPECT FOR OTHERS
Treat all
Respect
Protect Look after people
for the Believe in Promote
peoples’ others Courteous with
human autonomy privacy
rights interests equal
dignity
respect
 Highly
disciplined

Ensure LAW Respect

compliance
ABIDING laws
of rules

No unfair
practices
 Constantly
Well
Pursue endeavor to Quality
informed
excellence improve conscious
and prepared
proficiency
LEADERSHIP
Conscious of their responsibilities
Pro-active
Positive attitude
Grab fleeting opportunities
Ethical role models
Highly principled
Ethical decision making
REPUTATION AND MORALE
Seek to protect and build the company’s
good reputation
Maintain high morale of employees
Do not undermine others respect
Maintain dignity and grade
Prevent inappropriate conduct of others
 No
passing
ACCOUNTABILITY the buck
No blame
game
Acknowledge
and accept
personal
accountability
Take
responsibility
for all acts of
omission
Business Personal Professional
Work Ethics
Ethics Ethics Ethics
 Ethics in Workplace

Work Ethics

•A group of moral principles, standards

of behavior, or set of values regarding
proper conduct in the workplace
Ethics in Workplace

Business Abuse:
•Any illegal, unethical and irresponsible
Act done against an Employer
 Ethics in Workplace

Vandalism
Stealing
– Falsify
– Addictions
records, Poor Irrespon Sexual
Mercha Misrepr – drugs,
breach Client sible Gossip harassm
ndise, esent alcohol,
confidentia Service behavior ent
money, tobacco
lity, ignore
time
safety rules

Business Abuse
 Loss of
credibility

Untrustwo
Losing job
rthiness

Consequences
of Business
Abuse Poor
Business
working
losses
conditions

Higher Low
costs efficiency
 Work Ethics

Employer Employee
Proper and safe work environment Punctuality

Dignity and respect to employees Conscientious and diligent working

Fair and timely wages Organisational citizen

Gratitude and respect towards

Honest dealings
organisation
 Work Ethics
Desirable Qualities in an Employee

•Regular Attendance
•Loyalty
•Honesty
•Trustworthiness
•Dependability
•Reliability
•Initiative
•Self Discipline
Ethics in Workplace

Relationships at Work

Management/owner Employee toward

Management/owner
toward Employer, Co-
toward employees
client/customer workers, Customers
 Teamwork
Responsibility
Professionalism

Time
consciousness
Positive attitude

Dependability
Integrity

Common
Punctuality
Work Loyalty
Ethics
Concluded