19 Development of ethical behavior in organisations

1. Learning Outcome

2. Introduction

3. Approaches to Ethics

4. Ethical infrastructure

5. Elements of ethical competency

6. Indian ethos in management

7. Indian work Ethics

8. Key Indian ethics

9. Work Ethos and Management

10. Summary

1. Learning Outcome:

After completing this module, the students will be able to learn about the following:
Ethics
Ethics and morale
Approaches to ethics Ethical infrastructure
Elements of ethical competency Indian ethos in management
Indian work ethics
Work ethos and management

2. Introduction

Ethos” is a Greek word which means “character” that is used to describe the guiding beliefs and ideals that characterise a community, nation and ideology. It is also distinguishing character, moral, or guiding beliefs of a person, group or institution.

Indian ethos is all about what can be termed as national ethos. The body of knowledge which derives the solutions from the rich and huge Indian system of ethics i.e. moral philosophy is known as Indian ethos in management. Indian ethos in management has its base in the cultural heritage of India. Indian culture has its roots in the religions. There are various religions practised in India like Hinduism, Buddhism, Jainism and many more. Indian ethos and ethics are also derived from the Vedas, Ramayana, Mahabharta, Bhagwad Gita, and various Upanishads. There are basic universal truths that are followed from the past and these are:

The essential infinitude and divinity of all souls.
The essential oneness and solidarity of universe and all life.

3. Approaches to ethics

Ethical compliance by individuals in an organisation can only be ensured through strict codes and through the actions of individuals themselves. Thus, in order to encourage the ethical behaviour and prevent the misconduct in any organisation it is necessary to adopt any of the following three approaches:

Compliance approach: This approach depends on the rules and practices which are designed to keep the members of the organisation out of trouble. Rules are placed in the personnel manuals, code of conducts and new employee’s orientation sessions. Moreover, there are many government regulations which require to be signed by the employee regarding the rules or codes of conduct. Those who break these rules are presumed to do so out of ignorance and wilful intention. Detection is the key to successful compliance approach. The compliance approach speaks of the development of the ethical codes, bringing legislations, strengthening the implementation mechanisms, and developing infrastructural mechanism such as anti corruption bodies.

Integrity approach: This approach empowers an individual to make value judgments about right and wrong. It is value driven rather than the rule driven approach. One has to learn how to deal with the ethical challenges and dilemmas. Training, ethical education, good leadership, incentives and ethical decision making theories are the major techniques that are used in the integrity approach.

Fusion approach to ethical compliance: The two approaches integrity and compliance are not opposite approaches. Rather, it is also possible to have a blend of both these approaches and it is studies under fusion approach. It is the fusion of both the approaches which becomes necessary for the adherence to the ethical compliance. A kaleidoscope of rules, regulations and laws certainly help individuals stay on an ethical path, no matter how complex the organisational situation is. Thus, the application of both compliance and integrity approach are important in the ethical conduct.

4. Ethical infrastructure

A well functioning infrastructure to ethics supports a public sector environment which encourages the high standard of behaviour. Thus, each function and element is a separate, important building block, but individual elements should be complementary and mutually reinforcing. The elements interact to achieve the necessary synergy to become the coherent and integrated infrastructure. The main elements of the ethical infrastructure are as follows:

Guidance

Guidance relies more on leadership, personal responsibility and showing by example. Under the control concept, problems have one solution, where as guidance sees not problems but dilemmas. And dilemmas can have several possible solutions. It is the job of public servant to find best one. Convention is a powerful force which under pins the guidance and is generally bolstered by codes of conduct as well as the professional education and the communication of values. Guidance is also affected by the following factors:

Strong commitment from leadership
Statements of values and standards of conduct such as codes of conduct
Codes of ethics
Professional socialisation through education, training and counselling.

Management

Another important block of ethical infrastructure is management. Many countries tend to lay emphasis on the approach of laying down the practices and policies and seeing it to the ethical system of work on routine basis. In most of the cases, the ethical management is the responsibility of the Ministries themselves to deal with. But in many countries, it is also handled by special agencies.

Management in the ethical infrastructure could be implemented by the following factors:

Fair and impartial selection
Promotion and remuneration
Social respect
Effective central management agency to coordinate and to ensure the consistency in actions and integration into overall public administration.

Control

Control is essentially a regulatory dimension and a legal framework which assures independent investigation and prosecution in the public sector, as well as full accountability, transparency and scrutiny. Where rules exist, the control element ensures that they are implemented. Control is also executed by the following factors:

Effective legal framework promoting standard behaviour of public officials.
Effective accountability mechanisms like internal control and external audit
Transparency mechanism
Public involvement and scrutiny
Independent public involvement and prosecution agency

5. Elements of ethical competency

The main elements of ethical competency are as follows:

6. Indian ethos in management

India has a great tradition of ethical value orientations in all its thought process and actions. Indian ethos has a very rich and old tradition which is more than 3500 years old as against the modern management principles. Much of the ethos is derived from the ancient Indian scriptures like the Vedas, Upanishads, Ramayana, Mahabharata, Gita. Manusmriti and Arthashastra, etc. the ancient Indian ethos which has stood the test of time can help modern management principles to create a more sustainable model of management.

The main Indian ethos has following prominent features:

Divinity of a human being is not merely a notion but a truth which can be experienced.
Balance is the keynote of Indian thought and we have synthesis and harmony between the dual concepts.
The individual is in the central focus.
Divine element in the individual is only a portion of the universe and is an element of universal or cosmic consciousness.
Indian ethos lays greater emphasis on values be it human or ethical.
Indian ethos is based on Indian scripture and it provides eternal knowledge.
It stipulates that all work is worthy and honourable.
Indian ethos deals with two types of knowledge, i.e. knowledge of creation and knowledge of creator.

7. Indian work ethics

The main features of the Indian work ethics are as follows:

Indian work ethics focuses on the existence of the human beings as a truth. There is nothing more perfect than the supreme soul.
Indian ethics focuses on the principle that if you are good then the whole world is good.
Indian ethics are derived from the Bhagwad Gita, Puranas and Upanishads.
In accordance with the work ethics, one must successfully strive a balance between the spiritual values and secular values so that the even a rich person can lead a life of materialism and spirituality together.
Indian ethos places greater emphasis on the values and ethics. Money is not power and in fact, knowledge, good health and sound character impart the real power.
Indian ethos places emphasis on the inner resources. Inner resources are much more powerful than the outer resources.
The main ethos and ethics that can improve the work culture in the organisation are as follows:
All work is an opportunity for doing good deeds in the world, thus gaining the materially and spiritually in our work.
One who delivers the duties in a calm mind; he achieves the most in the work. Thus, one must concentrate on the work so as to achieve the best results.
Strength and cooperation for excelling in work are bestowed by the divine. All human beings enjoy the highest good by mutual cooperation and respect.

8. Key Indian ethics

Even the modern science has accepted that in the holistic universe all the minds and matters are interconnected at the deeper level. The basic unity of the life cannot be broken. On the basis of this holistic vision, Indians have developed work ethics of life. We have developed the mental, managerial and administrative all work has to be directed towards the single purpose. These Indian ethoses are needed all over the world in the present business scenario so that the management of the business and industry could be done efficiently and effectively. Some of these Indian ethics are as follows:

Vedantic view of karma: In Indian philosophy, Karma is supreme. We should all perform the karma and leave the result on the almighty. Karma is a manifestation of the divinity and hence the karma must be pure, honest and sincere. Indian philosophy also teaches us the manner to perform the work without having any attachment to the results, as the results do not fall under the jurisdiction of the doer. Such thinking and understanding will change the attitude of the doer.

Self as the source of all power: Self is the microcosm of the God and God is the source of all power. Considering the motivations as internal, every human being has the same divine atman with the immense potentials within. Vedas brings the infinite expansion of the mind, brakes down all the barriers and brings the God in man. Motivation should be internal and not external. Such motivation involves the inner beauty and does not promote the greed in an individual to have more and more in return of his work.

Welfare of all: Indian ethics have welfare orientation. Vedas teaches to perform all the activities. It teaches us to serve the personal interest but do not forget the others. Sankaracharya has also given the concept to gain the perfection in the individual life and also the welfare of the world.

Unique work culture: It is often said that the work is worship. Work is always considered as the worship or duty or sadhna and there is no difference in the karma i.e. work and dharma i.e. religion. The term dharma does not indicate any particular religion. Dharma is the duty to be performed in any given situation. Thus, dharma is possible only with the karma.

Skill in action and evenness of mind: Skill in action and evenness of the minds means undisturbed mind and skilled action that leads to the higher productivity. Integrated human personality of self-developed manager can assure the best and competent management of any enterprise, involving the collective efforts and work. It will help in achieving the perfection or excellence in the work. We shall achieve the peace, harmony and prosperity within and without the internal and external world simultaneously.

Means are equally important as the ends: It is not only ends that are important but also the means are more important in the organisation.

9. Work ethos and management

Work ethics and management goes side by side. A healthy work environment system has a healthy ethics, ethos and values. Ethics is the branch of philosophy that addresses questions about the morality i.e. concepts such as good and evil, right or wrong, etc. ethics can also be characterised as Indian rules of conduct recognised in the respect of particular class of human actions or a particular group or culture. Making ethical decisions may not always be feel good or bad or they may benefit you but are the right choices to be made. These are universal golden rules like do not hurt anyone, do not steal, do not dishonest and do not lie. The need of ethics in the business management comes from the following factors:

From internal customer’s point of view: Customers want business to follow ethical approach in their business operations. It improves the atmosphere and ambience at work and facilitates by motivating the employees. The ethical behaviour of management sets a good example for the employees it evokes the sense of pride for the company and improves the image in the eyes of the employees and establishes a sense of loyalty.

From external customer’s point of view: External customers rate a company on the basis of ethical standards that it follows. It develops the public image of the company and also adds to the overall development of the ethical behaviour of the company in the society. There have been various discussions on the ethics, law and morality.

From the organisation’s point of view, there must not be transgress in the boundaries of the law. An employee may not always follow law sometimes he must listen to his ethics but one should always have the answer of breaking the law. Thus, work ethics or work culture refers to the certain norms of behaviour governing the conduct of workers involved in the work situations to achieve the certain desired objectives.

10. Summary

Work ethics are very important for the success of the business and for increasing the productivity of the people at the workplace for any business organisation. The work ethics and work ethos varies from one country to another and also from one organisation to another organisation. The work ethics plays a very significant role in increasing the efficiency of the business activities. Indian system of the business and management are based on the Indian values and traditions enshrined in or ancient scriptures. Indian philosophy considers work as worship and even the customers are treated as god. Work ethics have a very important place in the business organisations. A well functioning infrastructure to ethics supports a public sector environment which encourages the high standard of behaviour. Thus, each function and element is a separate, important building block, but individual elements should be complementary and mutually reinforcing. The elements interact to achieve the necessary synergy to become the coherent and integrated infrastructure. India has a great tradition of ethical value orientations in all its thought process and actions. Indian ethos has a very rich and old tradition which is more than 3500 years old as against the modern management principles. Much of the ethos is derived from the ancient Indian scriptures like the Vedas, Upanishads, Ramayana, Mahabharata, Bhagwad Gita, Manusmriti and Arthashastra, etc. the ancient Indian ethos which has stood the test of time can help modern management principles to create a more sustainable model of management. Even the modern science has accepted that in the holistic universe all the minds and matters are interconnected at the deeper level. The basic unity of the life cannot be broken. On the basis of this holistic vision, Indians have developed work ethics of life. We have developed the mental, managerial and administrative all work has to be directed towards the single purpose. These Indian ethoses are needed all over the world in the present business scenario so that the management of the business and industry could be done efficiently and effectively.

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Suggested readings and references

Pramod Sharma, “Business Ethics and Corporate Values: An Indian Perspective”,Ravintanaya Publications, Shimla
S.K. Bhatia, “Business Ethics and Corporate Governance” Deep & Deep Publications,New Delhi
A.C. Fernando, “Business Ethics and Corporate Governance” Pearson Publications
SB Gogate, “Human Values & Professional Ethics”, Vikas Publishing House, NewDelhi.
Harris & Hartman, “Organizational Behavior” Jaico Publication House, 2002