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Research Paper Role Of Values Ethics In Business

Indian managers are out rightly rejecting it to borrow more and more of these from the west. India has already faced a serious of scandals, frauds and scams both in the corporate world as well as the stock market. Even noble professions like education and health are not bereft of many such examples. In order to meet the needs of the situation today, changes are needed not only in the structure, processes, strategies or technologies but also in job related environmental behavioral and cultural dimensions such as the attitudes, skills, behavior, norms, values & beliefs of people.

In this article, I will be discussing the importance & role of having values & ethics in all our business endeavors. Keywords: Values, Ethics, Business * Assistant Professor in K. I. E. T, Gabbed. Email: [email protected] Com Phone- 09999419413 INTRODUCTION Values strongly influence a person’s attitudes, behavior, and perceptions. If we know about individuals’ values systems we can gain an insight into “what makes a person tick” This has a several managerial implications for managers who can use their understanding of values to asses if their values align with the dominant values of the organization.

Employee’s performance and satisfaction levels will be higher if their values fit well with the organization’s value system. If an individuals values are creative thinking and independence he or she will be a misfit in an organization that requires its employees to conform. Thus an understanding of values can play a vital role during recruitment of candidates who do not only have the qualifications, abilities and motivation to perform but whose values also fit into the value systems of the organizations.

VALUES: AN INTRODUCTION Values are the evaluative standards we use for deciding what is right and what is wrong, what is desirable and what is undesirable. The sense of values is an essential attribute of the human consciousness. In a general way the rod Value’ express the qualitative significance, we assign to ideas, feelings, activities, and experiences. The value system we acquire and develop affects our attitudes, preferences, goals and aspirations.

It sets the standards & guidelines which govern our behavior, the quality of relationships we build, and the responses we make to life situations. Those who value money, power, and status most will direct all their efforts for achieving them, ignoring the social, human, ethical implications of their pursuits. For them human relationships will have only instrumental value, to be nurtured to the extent it helps in their career growth. Even moral and human values will have only secondary, if at all any, role for them.

On the other hand those who value morality, justice, kindness, compassion may decline even lucrative career options if It requires compromising on these values. If someone values nature and natural beauty he or she will be trekking in Himalayas during holidays rather than shopping in Singapore. As Swami Yucatan says: “They (values) are the very core of our behavior, the motive force of our lives”. What are Values? The following are examples of values. You might use these as the starting point for discussing values within your organization. Option, competency, individuality, equality, integrity, service, responsibility, accuracy, respect, dedication, diversity, improvement, enjoyment/fun, loyalty, credibility, honesty, innovativeness, teamwork, excellence, accountability, empowerment, quality, efficiency, dignity, collaboration, stewardship, empathy, accomplishment, courage, wisdom, independence, security, challenge, influence, learning, compassion, friendliness, discipline/order, generosity, persistence, optimism, dependability, flexibility Value’s Establishment Why?

Effective organizations identify and develop a clear, concise and shared meaning of values/beliefs, priorities, and direction so that everyone understands and can contribute. Once defined, values impact every aspect of your organization. You must support and nurture this impact or identifying values will have been a wasted exercise. People will feel fooled and misled unless they see the impact of the exercise within your organization. If you want the values you identify to have an impact, the following must occur.

People demonstrate and model the values in action in their personal work behaviors, decision making, contribution, and interpersonal interaction. Organizational values help each person establish priorities in their daily work life. Values guide every decision that is made once the organization has cooperatively created the values and the value statements. Rewards and recognition within the organization are structured to recognize those people whose work embodies the values the organization embraced. Organizational goals are grounded in the identified values.

Adoption of the values and the behaviors that result is recognized in regular performance feedback. People hire and promote individuals whose outlook and actions are congruent with the values. Only the active participation of all members of the organization will ensure a truly organization-wide, value- based, shared culture. CATEGORIES OF VALUES 1 . Material Value – The term ‘material values’ is being used here to signify the contribution made by material goods and services in improving the quality of life.

A good life should also have an adequate level of ‘material decencies’ to provide material comforts and conveniences for the enjoyment and enlargement of life. Values associated with the material aspect of living will be called material values. 2. Societal Value – A good life can be lived in a good society. Such a society organized to achieve peace, harmony, well -? being and growth of all. Its economic and political life is governed by the principle of justice and equality. This is necessary to ensure social cooperation of production and social goods, and an equitable sharing in the produce of this cooperation.

In a good society individuals are assured of their human rights, a dignified way of earning a livelihood, and freedom to grow to their full potential. These are termed societal values. 3. Psychological Values – A person should have emotional maturity and intelligence, and a sound mental health o lead a good life. Life should be free of psychological conflicts and stress. Exploration of these concepts will be done under the heading of psychological values. 4. Aesthetic values – Creation and enjoyment of beauty is an essential part of a good life.

A refined aesthetic sense is the hallmark of a cultured person. However, it needs conscious cultivation to develop a taste for appreciating beauty in art, nature and life. Various related to this aspect Of life are called the aesthetic values. 5. Ethical & Moral Values -A good life for all can be assured only on the basis of personal virtues, ethical sensitiveness and oral conduct of individuals. A good person must be a moral person. His personal conduct and social interrelations must be based on ethical principles.

In fact, ethical and moral values occupy the centre -? stage in a good life. How the Value’s System is developed? The sources of values are many. These values eventually lead to the formation of our value system. There are a many sources from which our values emanate: (1 ) Genetic or hereditary factors- Certain values, for examples the value of human life, may be said to be inherent in our value system and are an integral part of being a human- being! 2) National Culture – This has a powerful impact on our values.

How we treat our elders is a value that emerges from national culture. (3) Parents – Our parents are our first role models and many of our values are a result of our upbringing. Honesty and integrity are values which are instilled in us right from childhood. (4) Teachers- The impact that our teachers have on us, cannot be ignored. We learn many values like value for knowledge, and punctuality from them. (5) Friends and Peer Groups are also having a deep impact upon our values. We tend to emulate the values of those we admire.

ETHICS & BUSINESS ETHICS In a very general way, Ethics may be defined as a major branch of philosophy encompassing right conduct and good life. Others define ethics as a philosophical study of moral values and rules. Derived from the Greek word “ethos” it basically means “a way Of life” and can be called as that branch Of philosophy which studied and recommends the fundamentals principles and basic concepts of what is morally considered to be good or bad, right or wrong in human conflict. To sum up, ‘ethics’ may be explained in two ways.

Firstly, these refers to well based standards of right and wrong which restrict what humans ought to do in terms of rights, obligations, benefits to society, fairness, or specific virtue. Refrain from rape, stealing, murder, assault, slander and fraud, promotion of virtues of honesty, compassion, & loyalty, respect for human rights like right to life, right to privacy etc are covered under the preview of ethics Secondary, ethics may be referred to as the study and development of one’s ethical standards so that feelings, laws, norms do not deviate us from all that is ethical.

BUSINESS ETHICS Business ethics may be defined as a form Of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment. Business Ethics can be defined as written and unwritten codes of principles and values which will govern decisions and actions within a company. These set the ethos of the Company and set the standards for the behavior of every member of the company. Values should determine the difference between good and bad behavior but on their own, this is an impossible task.

The ability to know the difference between good and bad decisions lies with the individual and that means character or virtue, and not just practical wisdom but practical wisdom guided by virtue. Historically speaking, the interest in business ethics accelerated dramatically during the asses and 1 sass, both within major corporations and academia. For example, majority of the corporate website today, lay emphasis on commitment to promoting non- economic social values under a variety of heading (e. G. , ethical codes, social responsibility charters etc. ).

In some cases, corporations have refined their core values in the light of business ethical considerations. Businesses have realized that if they want to achieve a sustainable edge in this era of cut throat competitions, they will have to manage by values – both human and ethical. Business ethics deals with truth and justice and has different aspects e. G. , fair competitions, social responsibility consumer autonomy, corporate behavior etc. The important thing to be remembered by all business enterprises is that the business of business is not only to do business.

It can not let public be damned. Many businesses have gained a bad reputation just by being in business to gain money. It has to be understood that making money is not wrong in itself; it is the manner in which some business conduct themselves, bringing up the question of ethical behavior. Business ethics apply not only to how he business interacts with the world at large, but also to their one on one dealing with a single customer. The ethical behavior of all business should adhere to all their daily dealing with the world.

Tat’s Ethics They raise high profits, but give a lot back to the society, whether from their trusts fund or the Coo’s own pocket money. Data Group has Trust departments that deal with social projects, etc. The projects had a greater purpose to them than just the profit they had made; they were beneficial to the society. Rattan Tat’s support to the society is uplift to his reputation as well as his company’s. ROLE OF VALUES IN BUSINESS Incorporating values and ethics into business decisions have become increasingly important to business people, universities, government, and the public in general.

The twin issues of values & business ethics come to occupy centre stage in business. There is increasing awareness around the world ethical practices in business. Within India, there are significant social, cultural, political technological & Economic factors affecting the State of personal values & business ethics within Industry. Right and wrong defined by different people may manifest diverse thinking, motivated by each individual’s personal values. Within a work environment, the cultural values that drive business decisions are critical to the organization’s credibility with its employees, customers, and shareholders.

Today, in business, value is about proportioning individual and operational values for the workplace and establishing codes of value and codes of conduct that ensures that employee behaviors and the internal systems are aligned with those values which in turn affects the performance of the organization Key leadership with appropriate values establishes the moral compass that guides the organization through the complexities of what is right and wrong and how management and staff are therefore expected to behave.

Critical then, becomes the ability to manage for ethical outcomes-?this is values-based management. Values provide the basis for judgment about what is important for the organization to succeed in its core business. Values are traits or qualities that are considered worthwhile; they represent an individual’s highest priorities and deeply held driving forces. The importance Of values in society at large and organizations in particular arises out of several reasons: Values lay the foundations of attitudes. We can understand the person’s attitude if we study his values.

Individual’s values drive his motivations and aspirations. Values have a great impact upon the perceptions of an individual. Values can hamper rational thinking and cloud our objectivity so it is very important to understand the values we posses and the reasons why these values have develop. When confronted by an ethical dilemma, values help managers to resolve the dilemma and reach a conclusion. Values serve as an anchor in a turbulent sea of change. Values differ across cultures and over a period of time.

Therefore it is important to understand them in this globalize world marked by a fast pace of change. ROLE OF ETHICS IN BUSINESS Ethics are important to firms for a variety of reasons, including the legal responsibilities of the executives, costs of violations, and reputation. Executives and managers are often held liable for violations that occurred below them even if they did not know about or condone the situation. This is a major incentive for directors and top management to see that their organization keeps ethical considerations in perspective while making decisions.

In fact, a company with an organized and efficient ethics management program will be treated more leniently by prosecutors in the event of a violation. Ethics brings much goodwill to a company that will in the long run translate into tangible benefits. Goodwill is that intangible asset that a company has earned over her period of operation as a result of being perceived by business associates and other third parties as being transparent, reliable, straightforward, trustworthy etc. Some Of the tangible benefits that accrue a company for operating on an ethically sound business values are. . Profitability The first direct dividend of ethical business operation is ‘profitability. A company that is based on sound business value is more likely to be profitable Han a company operating on corrupt practices. 2. Going concern is assured Being profitable will ensure that the company be around will ensure that the company be around for at least the next 12 months. It is the desire of every business entity to be around for a longer time. Ethical Business practice is the way to go if you and your business truly value concern. 3.

Sustainability Without sustainability investment in business will simply not yield fruit. And without running your business on sound ethical values, sustainability will not be achieved in business and investment. 4. Competitive Quality save money is a popular belief in accounting, business and investment. You will save the cost of reworking defects borne out of using poor equipment and employment of sharp practices. Again, this will give you and you investment (business) easy access to the heart of the general public if you build your business on ethical values & principles.

Like Gig Ziegler would always say,” you will get all that you want in life if you can simply help enough others get what they want. ” He called this the ‘golden rule philosophy. ‘ And it is indeed a golden rule pH illusory. This pH illusory is to only applicable in general life interactions. In fact, it is truer in the world of business. Your customers and others stakeholders in the business community will naturally come to love and appreciate your company and the product you have to offer if they discover that you uphold business ethics in your business operations.

Good business ethics will definitely reflect on the quality of your products, because you have the satisfaction of your customers at hand while you Were producing your products. Top 10 Ethical Companies In The World Mahatma Gandhi who is considered as Father of the Nation and was an iconic Geiger had once quipped- “Non-cooperation with the evil is as much a duty as is co-operation with good”. Even Henry Ford had said- “Business that makes nothing but money is a poor kind of business”. Companies that do not adhere to ethical practices become unstable in due course of time.

Therefore integrity is very important. Organizations must have a noble legacy in order to touch base with its customers. When the name of a company gets tainted it can shake its very foundation. When a company is admired for its high level of integrity, honesty and sincerity it earns the support from its employees as ell as customers. This trust enhances the productivity of the company to a great extent. Therefore you will find that the leading companies of the world are those which follow its code Of ethics to the core.

They understand that to get repeat customers or retain the existing ones they need to uphold ethical business practices. Therefore companies that swears by and conforms to business ethics are a favorite with both employees and customers. Even rival companies like to associate with such companies for business dealings Every year a list is prepared by independent bodies containing the names of the top 00 companies which have earned a name for itself by virtue of its business ethics. Here we present the list of top 10 ethical companies in the world.

These are the companies which have been preaching about ethical business practices and following the same as well. 1 . Adobe Systems Adobe Systems is world renowned company dealing in software. Its code of ethics is published every year. The company has appointed a compliance officer to ensure compliance of pre-determined company business practices. If there is any issue which may affect the interests of the company the same is immediately notified to the said officer. Adobe Systems has made it mandatory for all its senior executives to foresee compliance of all rules and regulations connected with government dealings.

In addition they are also required to submit important papers on time and with honesty. 2. Campbell Soup Company Campbell Soup Company has its own code Of ethics. Any wrong committed within the perimeters of the company’s jurisdiction are immediately corrected and for this employees are asked to be on the look out for any discrepancy. They are encouraged to report about it so that the same can be rectified. The code of According to Campbell Soup Company, as of 2004, the company encourages staff to speak up whenever they spot anything wrong, in order to correct it.

The code of Campbell Soup Company also mentions clearly about advertisements made by the company and respective cells which can be approached by employees to seek help. 3. Ford Motor Company Code of ethics of Ford Motor Company clearly defines that any action on the part of company directors, any personal benefit derived by an employee or his/her family which can be termed as wrong and third party dealings that can tarnish the image of the company will be considered as against the interests of the company.

Under no circumstances senior executives like directors can use personally assets of the company nor can they accept gifts. 4. L’Oreal AS Cosmetic giant L’Oreal AS has its won unique code of ethics through which it encourages its employees to come up with any issue voluntarily. It is very particular about child labor and has its own set of tools to analyses risk and in addition has policy papers on the subject which are applied to guide the management. Employees are trained up about company code of ethics and they can freely discuss about what kind of environment they expect to discharge their duties efficiently and honestly. Wigwams Wigwams works actively towards community development. It believes in giving back to the society and for this purpose it donates substantially to food banks. All donations are entertained through the company website. Moreover, every week it provides a public bus service for senior citizens in Syracuse and Rochester to enable them to purchase grocery. 6. Hewlett- Packard Company Importance is given to trust by Hewlett-Packard in its code of ethics. The trust of its associates in business as well as consumers means a lot to the company.

At the same time employees and customers are urged to inform bout concerns that are detrimental to company ethics. Every year, training is conducted by the company to make its employees aware about ethics and how steps can be taken to comply with the same. 7. American Express Code of ethics of banking major American Express contains guidance for its directors about dealing with situations that may affect company interests like availing opportunities or positions in other entities. Encouragement is given to report about acts or activities that are wrong and unethical. . Johns Hopkins Renowned global medical major Johns Hopkins focuses on leadership and integrity. Patients and professionals from the medical field are given equal respect. Johns Hopkins works relentlessly so that people can get the best health care possible. 9. Yamaha Worldwide Business dealings and high integrity are the salient features of the code of ethics formulated by Yamaha Worldwide. It addresses issues related to monetary benefits of directors and conflict of interest that may arise.

It also clearly states how company data and assets should be utilized and gives thrust towards maintenance of confidentiality. 10. Google Internet giant Google has its code of ethics clearly embedded with its popular ‘don’t be evil’. Building trust amongst its patrons is one of the thrust areas of the company. Google also follows a non-retaliatory approach while dealing with any employee who complains wrongful conduct. No penalty is awarded by the company to any employee who reports about wrongful conduct against another employee.

During the last decade or so expectations of customers, associates and employees regarding ethical business practices have increased phenomenally. In fact the day-to-day operations of companies are closely scrutinized by people to ascertain whether basic ground rules regarding business ethics are being followed or not. This is an observation made by the International Ethical Business Registry. CONCLUSION It concluded that running a business requires consideration to a number of issues outside the traditional scope of making money, of which ethics is the most important one.

Growing businesses have enhanced significance as they have an impact on the lives and circumstances of people through bringing jobs, creating wealth and inspiring others to grow their businesses. A neglect of values & ethical conduct can leave the business with a bad reputation, alienation of employees, suppliers and local community room the way in which sales and marketing is handled up to product development and customer service and even to some extent finance, production, human resources, management etc.

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