bus ethics met 1

8/8/2019 Bus Ethics MET 1

http://slidepdf.com/reader/full/bus-ethics-met-1 1/170

Business Ethics

MET 1What is happening?



Some wise sayings on the

subject



So Far«. 1. General intro to subject, what¶s happening (a peep through),

some wise sayings on subject.

± Assignments ± 1) individual paper cuttings (2) some 14 topics

group project ± to be presented regularly by 2 or 3 groups ineach class)

2. Bus ethical issues ± (price, product, A&P, etc)

3. Trusteeship (p 66)

4. Dev. various approaches towards ethical behavior (p82)

NOW 5. Bus Ethics and Stakeholders (p109)

6. Decision making (p123)



Arthashastra

³In the Happiness of his Subjects lies

the King¶s Happiness and in their

Welfare, his Welfare´.

Kautilya¶s Arthshastra

Today we have ³Kings´ in the garb of

politicians «not good old kings like ³slowly replaced by business barons?´



Who is a Customer ± Mahatma Gandhi

A customer is the most important visitor on our premises. He is not dependent on us. We are

dependent on him. He is the purpose of it. He is notan outsider to our business. He is part of it. We arenot doing him a favor by serving him. He is doing usa favor by giving us the opportunity to do so´

A simple lesson for any Business Enterprise ±

customer is anyone whom you have to serve.

Quality definition by Philip Crosby:

³ Q uality is respect to humanity´



One world, one citizen In the South American mini-forest, there is

a tribe called the Desana, who see theworld as a fixed quantity of energy thatflows between all creatures.

Every birth must therefore engender adeath, and every death bring forth another birth. This way, the energy of the world

remains complete. When they hunt for food, the Desana know that the animalsthey kill will leave a hole in the spiritualwell.



One world, one citizen But that hole will be filled, they

believe, by the souls of the Desana

hunters when they die. Were there

no men dying, there would be no

birds or fish being born. The closer

he gets to good bye, the more heseems to feel we are all creatures in

the same forest. ««what



The Desana story - Lesson

WHAT WE TAKE, WE MUSTREPLENISH.

³ I T IS ONLY FAIR ́ that we provide

sustainability´ ± The way we live, at least,must be made available to those who follow

us´



Selfishness .. What is the end?

People are only mean when they arethreatened, and that¶s what our culture does.

That is what our economy does. Even peoplewho have jobs in our economy arethreatened, because they worry about losingthem. And when you get threatened, you

start looking out only for yourself. You startmaking money a god. It is all part of thisculture. «.



Selfishness ..and the end Look, no matter where you live, the biggest defect we

human beings have is our shortsightedness. Wedon¶t see what we could be. We should be looking at

our potential, stretching ourselves into everything wecan become. But if you are surrounded by peoplewho say ³I want mine now.´ You end up with a fewpeople with everything and a military to keep the poor ones from rising up and stealing it.´ ( any visible

examples?). If not for the fact RESOURES R SCARCE, everything

will be hunky dory.



What is wrong with being No.2?

In a basketball game, a team was doing well,and its supporters began chanting ³We are

number one, we are number one´. Oneperson was puzzled by the cheer. He roseup and yelled ³What is wrong with beingnumber two?´ The partisan crowd stopped

chanting. The person looked triumphantly. After all it is only a game, where one issupposed to give his best. ( no animosity)



Concern for others ± goodness of

collaboration It is not just others we need to forgive. We

need to forgive ourselves too.

In business people negotiate to win. They dothat to get what they want. Maybe we areused to that.

But look, how different it would be, if you areconcerned about someone else¶s situation or

as you are about your own. YOU CAN STILLMAKE IT A WIN-WIN SIT U ATI ON.

Good Businesses with Long Term Strategies achievethat -- collaborate



Business & Society ±

the cyclical phenomenon waves This story is about a little wave, bobbling

along in the ocean, having a grand old time.

He is enjoying the wind and the fresh air ±until he notices the other waves in front of him, crashing against the shore. ³My god,this is terrible,´ says the wave. ³Look what¶sgoing to happen to me!´ Then along comesanother wave. It sees the first wave, lookinggrim, and it says to him, ³Why do you look sosad?´ «..



Business & Society ±

the cyclical phenomenon - WAVES

The first wave says, ³You don¶t understand!We¶re all going to crash! All of us waves are

going to be nothing! Isn¶t it terrible?´ Thesecond wave says, ³No, you don¶tunderstand. You are not a wave, YOU ARE

PART OF THE OCEAN. ( little drops of

water«), and waves come and go, but never lose your PEACE ± SANT OOLAN mat ko

bhaitna´



A Story ± potential class conflict

This is a story of

A wealthy family (NRI in India now) staying on the 7th

floor of a posh Malabar Hill apartment, and

The ³coolie´, and

The ³Lift´, and

The Fridge (luggage)



J

ames Baldwin on Bus & Society ..for nothing is fixed, forever and forever and forever,

it is not fixed;

the earth is always shifting, the light is alwayschanging, the sea does not cease to grind down rock.

Generations do not cease to be born, and we areresponsible to them because we are the onlywitnesses they have.

The sea rises, the light fails, lovers cling to eachother, and children cling to us.

The moment we cease to hold each other, the seaengulfs us and the light goes out .



The Debate on US Bailout ± The

virtue of Indian financial sector!! We are not troubled ± isolated from worse ±

Is that good news?

Fact is (BT) Indian financial sector is nowherenear as reformed as it should be, resulting insub optimal allocation of resources and highoperating costs. To celebrate isolation, is toworship at the altar of a very mediocre status

quo, as the opportunity cost (less visible now)of not reforming is infinitely higher than theactual loses that may indirectly result fromreforms.



Financial market reform ±

cross benefits, Yes.. but Financial market reforms, like pension, insurance,

banking etc. has been dragging its feet. Invariablythese result in greater economic activity ± multiplier

effect, lifts the living standards of individuals not evenremotely connected to the sector. Example, a boostto the power or road sector will make -- more fundsavailable for infrastructure projects, which will benefiteveryone from the tycoon, who implements the

project, to those sections of society whose livesbecome easier as a result of better infrastructure, todaily laborers who get assured work for longer periods of time.



Is it individuals¶ honesty?

Distinction needs to be made between institutions andindividuals.. Right institutions or instruments in the handsof wrong individuals can lead to disastrousconsequences.

(U S situation partly explained by this... ) So, regulation ± as distinct from micro management (as in

India), has a lofty place in the world. It is nobody¶s casethat Indian markets should be reformed to benefit theinvestment brokers and bankers and other moneybags whoso visibly gain from such initiatives. We must reform our

financial infrastructure so that the housewife in some smalltown, the laborer at a road building site and the vegetableseller at the street corner can also look forward for a better tomorrow.



US bailout Some Congress members questioning Fed

Reserve chairman on why they did not get more

global support -

³ I think it is a perverse pride thing« w e don¶task for help. We are the big, strong father figure. But let us be realistic. We are no

longer the dominant world power ´Is it a confession? World inter-action

(especially business should note).



US melt down

Lehman, AIG, WaMU, Bunty or Bubli(Fenni & Freddie Mac)

Merryl, European Banks, Japan,Indonesia, etc.

³More corporate on bankruptcies listcome to the fore´

³ A 14$ Tn economy is on its knees for $700 billion´

(Senate/Congress debate)



US bail out-- ³taloa me pani nahi´

Some saw this as an enormous set-asideof Taxpayer money as an unnecessary

intrusion into free market. Voters will hit back Senate members whovote for bail out. They would be targetedand defeated .

if they stand side by side with predatorypoliticians and bureaucrats and their greedy friends whose job we are in thismess.



US meltdown ± No ± to first vote

Came about . Due to .. of no supervision, nodiscipline, no regulation of financial markets´,

the setback led to a global financial crisis Economy, Fell like nine pins

Bailout defeat ± why the US voted the waythey did goes to the heart of battle betweentwo streams of thought in America now´



Comment on bailout

Big banks, financial institutions and lenderswho admittedly lent money recklessly during

housing boom need to be scared with capitalinfusion, because their situation has scaredothers into withholding credit which is thelubricant which drives the American

economy. ³asking for $700 bn b/out moveswithout accountability to Wall Street ³richies´.

INDIA SEES THAT NOW !!! Bandra Kurla



Comment (contd) .. ́After stealing a half trillion dollar to

line the pockets of their war-profiteering

hackers for the past 5 years, Bush andhis cronies ± who must soon vacate, theWhite House are looting the US

treasury of every $ they can grab. Theyare swiping as much of the silverwareas they can on their way out to the door´



Points ± lesson from Meltdown

Finance cos. They need much to build a robustsystem ± frequent check, reliability, review,recoverability ± to safeguard their assets than a

Company with tangible assets need ´Value of intangible asset ± difficult to trade (Mfg) Requires a lot of character on Managers, directors,

auditors who are involved in managing systems Only a naïve like Lehmann would have fallen on

the way out « the process of insolvency wouldhave set a long before. (or were they naïve??) W as it vested interests, that prevented

³bringing this out?´



Lessons to learn from US md

Volatility of market situation ³makes it difficultfor truth to come out early´

it is a lesson that ³big is not only always thebest´ Hypes mis-guide you.

Reliable flow of timely information is the key. Any investment is only a value held.(BOOKS)

At the end of the day they are prone tochanges. ³CHARGING BULL ± RED BULL´



What¶s happening today

Let¶s look at some happenings most of which are in one way or another

relevant to discussion of Ethics & CG.



Govt. not to regulate CEO salary, said Corp. Affairs

Minister: We believe in essential freedom in a

democracy.

Ultimate decision should rest with Shareholders.Existing Co. Act mandates govt. approval beforeraising salaries of Directors beyond a threshold

of 5% of annual profit, and raising more than 11%for total remunerations of managerial positions.The Minister said the Parliamentary StandingCommittee, scrutinizing provisions of newCompanies Bill that has been tabled in the LSwould be looking into the issue of CEO

remuneration as well as spends on CSR. ³Theseissues need to be debated threadbare for their incorporation in Bill 2009. On voting issue theMinister said 3rd Wk of Dec. India CorporateWeek.



Govt. not to regulate CEO salary, said Corp. Affairs

Minister: We believe in essential freedom in a

democracy.

Next year ³Year of Investor Education. The e-voting system launched by ControlDepository Service India Ltd. Which will

empower shareholders to participate in thedecision making process of companies thusmaking their vote count. ³Companies wouldalso benefit from this as the remote votingprocess would become quicker accurate andwould also result in savings on various costoverheads which are currently incurred for postal ballots.´



Women use 500 chemicals on face & body

every day ±

A Question of product claim

Most of which contain more than 20 ingredientsincluding additives that could lead to cancer andvarious skin problems. ± A study of deodorant

firm Bionsen. Beauty regimes have changed fro m ³wash and

go to daily fake tan applications, manicures, falselashes and hair extension.

Lipstick, most commonly used, contains anaverage of 33 chemicals. Perfumes contain acocktail of 200 chemicals with soe containing asmany as 400´.



What¶s«

Jawans spend second night in pavement

Security van driver flew with Rs.40L ATM

HC slams Delhi govt. for giving selectiveparole

TN prisoners grow fat on jail food

Ranbaxy recalls Acne drug from US mktClass III

India can get Nobel for filth ± J.Ramesh



Clear the Air ± editorial ToI 20-11-09

Govt. announced a revised set of emission and pollutionstandards applicable across the country. Govt wants us tobreathe easy. But noble intensions alone will not ensurefresh air. A /g to CPCB almost 80% of 110 cities monitored

in the country do not even meet the existing norms.Because they do not provide penalties to be imposed ondefaulters. Which is where credible and accuratemonitoring levels comes in ± unfortunately we are crippledin this regard. Models in UK and Europe and US (EPA)works with federal state and tribal governments to ensurecompliance. Where environment agency and dept of env

food and rural affairs issue guidelines and give muscle tolocal bodies. So Agencies should spell out specific targets.Otherwise new norms will only give a feel good factor.



What is « Farmers fake Bt Cotton as organic US, EU see

red.

Commerce Ministry tracks fraud in MP,

Maharashtra through new software. Cases of Bt. Cotton contaminating organic cotton

farms are on the rise.

Adequate testing facilities lacking. ³We areworking with customers to see tht every

consignment is checked.´ Needs coordination between certification bodies,their inspects, farmers, NGOs, govt.representatives, ³ monitoring and feedinginformation´



What is« Mahindra-Satyam gets legal notices

from 37 cos. Mahindra-Satyam says

it is legally untenable.



Greatest mystery of all times and climes :

SCAMS ± where did the money go??

What has happened to all the money that gets unearthed inIndian scams? Frauds?

Everytime a new scam is know, the sum of the scam is inmultiples of earlier scams.

Bofors ?? 25 years? ³ ONLY´ (like you say inAB¶sEmami pain relief ad) 60 cr

4000 cr. Harshad

7800 cr. Satyam fraud

Madhu Koda ± 4000 cr (slight decrease)

20000 cr. ± Telgi fake stamp.

How nice it would be if at least part of it is unearthed andsome of our deficit financing can be eased out.



What¶s « If you want to know what has

happened to these:

Just send 5000 bucks in unmarked

used 100 rupee notes and you will

receive a sneak preview of the

devastating denouncement by returnpost:



Consumer Watch

Drive to make detailed servicing report a

must:

An Ahmedabad consumer based CE&RC plans tolaunch a campaign to make detailed servicereports compulsory.

Even Whirlpool and Philips said they do providerepair details on receipts, however, no uniformrules.

³There are no mandatory laws governing serviceobligations of manufacturers, not just of electronics, but all products´

³As a customer I would like to know what waswrong (with a product), if the same problemrecurs after warrantee´

It is therefore necessary to have a reportrecording a product¶s history.



Drive to make detailed servicing report

a must

Normally the service centre could blame

the recurring problem on rough handling

of a product or voltage fluctuation. ³If a product is repaired by an authorized

service person, the fault should not occur.

If it goes back it amounts to a deficiency

in service and shows there is a problemwith the product. Then the consumer

must take up the issue to a higher level´



Let host nation regulate foreign

finance

India¶s system of host regulation, which makesgood economic sense has both empowered andinsulated the economy from some of the worst

excesses of current global crisis: Currently FI lending is partial; It is not on a level

playing field. Developed countries have easyaccess, and cost of getting funds is much lessthan for developing countries.

The effect on the economy again therefore hasunequal effects.

Even Basel II norms favor this.



Let host nation regulate foreign

finance A host regulator can ensure that certain

institutions are not lending recklessly in amanner that leads to artificial asset booms. Host

regulators can enable counter cyclical chargeson institutions creating such book within abroader framework of national and macroprudential regulation. So that they are bothempowered and insulate the economy from someof the worst excesses of the crisis.

Developing economies must make their ownchoices in the world economy.

Global warming, WTO, climate change !!! DisparityHaves and have-nots



What is « Global meltdown ± Bail outs in trillion dollars

AIG, LEHMAN SUDDENLY FIND THAT

THEY ARE BANKRUPT !!! SATYAM BECOMES JHOOTA (juta nahi)

MADHU KHODA AND HAWALA

LAW MAKERS ± LAW BREAKERS 3 AUTO GIANTS ± WALK



Squeeze at Top (headcount & wages)

A clutch of CEOs resorted to pay cuts in a tough year. Not allhead honchos, however, were in such a spartan state of mind.

Rahul Bajaj To the extent govt finds that CII or any other business

organization does not come out with a satisfactory volntary codeof conduct for remunerations of CE Os, I believe govt. could keep in the Companies Act a cap on emoluments of Promoter CE Os as a percentage of net profit of the co,. Currently, for anindividual CE O the figure is 5% and for the Board as a whole,11%. The figure of the individual CE O, if he is a promoter, may be fixed at 1 percent of the profits of the co. as calculated at present. However, a promoter CE O may be allowed a certainminimum emolument per annum in case of absence of inadequacy of profits in a company.



What¶s«.

Vijay Govindrajan, Prof. of International Business.

Reverse Innovation is the Key: Re-engg. Is passe

Since 50¶s MNCs have innovated in the US \However, onecan develop over the next 100 years with technology that is

available today. E.g. Cell v landlines today. The trajectoryof dev. Need not be the same.

±RENEWABLE ENERGY, DECENTRALIZED POWERGENERATION AND AFFORDABLE HEALTHCARE AREGOOD EXAMPLES OF SUCH BUS. OPP.

I n the half century after the II world war, the business

corporation has brilliantly proved itself as an economic organization.. I n the Next S ociety, the biggest challenge «may be its social legitimacy: its values, its mission, itsvision´.= Peter Drucker



What¶s«

Moists ± liberate people from exploitation andoppression ± fight against state terrorism ± SalwaJudum ± legitimate efforts??

Fearing taunts, old dad dumps baby (45 year old) Sky Walks galore 25% city women have caesarean. CASUAL ± careless ± calamities ± collapse Vegetables injected

Post Office- receives cards with AID virus Patangrao Kadam ± Rev Minister, land etc. release to

BVIDYAPEETH.



What is«

CII AND INDUSTRY WITH B. BOWLS ONCE AGAIN

MONSOON FAILURE SOCIAL CIVIC UNREST AX INDIA ± WAR

WITH INTERNAL TERROR

EXTERNAL TERRORISM

DEFICIT FINANCING NOKIA ± REPLACES CHARGERS (3rd

party!!)



What is«

Hadley seen in Lucknow, TridentMumbai

SEZs ± Monsanto & Dupont ± accused of pressuretactics

Nano at Gujarat ± shift from WB .. The NDTV debate

Tata seeks capital to pay off its Corus deal

M&A in some sectors

Globalization ± end of the road?

PWH ± SUIT 1 FILED IN USA

Kingfisher flight ± skids off the tarmac



Next Section

Ethical Issues

Social & Econ. Value & Responsibility ±

The week Haiti earthquake,

WHO officials collusion with pharma industry,

Solar eclipse Then we will go to SH concept in MET 2



Ethical Issues in Management

Intro:

Moral Standards ± What is Right, proper and just.Different for different sets, groups based on

respective Value System of individual or group What¶s Right or proper of just is far beyond theft,

bribery and collusion.

Does it affect more people outside their own control?

With increasing competition, issues become muchmore complex. What we need is co-opetition.

Managerial dilemmas represents ± conflict betweeneconomic performance & social obligation.



Issues

Pricing ± Customer assumptions ± Quality Trap -Discounts (factored) ± Bundling. VALUE?

Advtg Messages ± claims v actual value, wild,loud & unreal, illegal & ineffective, withoutscientific explanation, varying degrees of truthfulness and deception ± where do they drawa line?

Product promotions ±advtg, free gifts, addl.Flights, SMSs, bonanzas, (luring customersgreed)



Issues

Working conditions ± temp, humidity,

noise, ventilation, lighting, safety hazards

& procedures, fumes, dust, child labor,discrimination, etc.

Customer Service & Product Quality ±

product quality, response levels, social

responsibility of marketing, (holistic ±solutions acceptable to all?), goes beyond

customer, (acceptable by society?)



Issues

Workforce Reduction ± with increase

in competition, VRS, downsizing,

lock outs, lean, Outsourcing, keephappening. Human cost - trauma

Suppliers Relationship Issues ±

favoritism, (enquiries, GDP, Gifts,right business conduct missing),



Issues ± how to resolve?

Focus on Practical consequences ±

Is action legal, socially acceptable,

does it govt. regulatory bodiessupport?

Do a Cost Benefit analysis ± short

term or long term? Loss of image,etc.



Issues ± how to resolve?

Role of Leaders ± personal goals? Whatpath adopted (Vision?), direction,business cycles?, career planning and

success. What do we do ± 2 years hence, 2

decades, fly by night operators?, productsafety -

Next - Some other issues ± HAS ITHAPPENED TO YOU??



Other issues

Distributor ± in limbo

Scams ± Now the benchmark is

>1000Cr

Deceptive labeling

Deforestation

Building / construction standards

Negotiations -- cheating



Other issues

Violation of Co. Act

Taking credit for other¶s work

Violation of Co Act

Price fixing, cartels

Environmental concerns

Bribery

Whistle blowing



Other issues

Manipulation of expenses

Consumer indifference

Conflict of interest

Unethical sales practices

Theft

Discrimination

Demanding sexual favor



Other issues

Product pricing

Insider trading

Falsifying reports (GDP)

ANY OTHER EXPERIENCE?



Business Ethics - Require

Integrity ± wholeness, consistent,backing up promises with commitment.

Truth telling ± not just the law (Buyer Beware)

Dependability ± able to answer

Business Plan ± built on image (vision),role in competition, clarity of direction



Business Ethics - Require

Apply ± Internally & Externally ± Respect inthe conference room, impartial evaluations,negotiating in good faith, meeting obligations,the scope is universal

Value based - written SOPs, ideals andaspirations, clarity of interpretation

Comes from boss ± cutting corners, ownaggrandizement, deception, disrespect

STARTS AT THE TOP (King & Sight ± BLUE)



Advantages

Substantially improved society ± fairness,past rectification, laws & regulations obeyed

Workplace ± abjures all evils not allowingindividual excellence and team work

Ethical programs ± maintaining moral course,commitment, social and individual value

based



Advantages

Strong team work ± openness

Helps face reality ± change, confidence to

meet Helps Quality Management ± Str planning,diversification mgmt, develop PPP, behavior with value, training

Strong Public Image ± corner store, inbuilding a competition, successful andresponsible business



Next Section

TRUSTEESHIP



TRUSTEESHIP

The Concept

A Trust is normally created when a fund or asset is earmarkedfor a specific purpose. A wealth person may set apart some

funds, and request a trusted individual or a corporation or abank to manage it, and make available the funds to beneficiariesspecified by him, either by name or class (my children, or ³thosesuffering from cancer´ or students¶ scholarship, or a NGO)

Trustee entitled to charge a nominal fee for administering theasset or funds, but cannot derive benefit from it.

The Concept applied to business is a Gandhian concept.

PTO for Gandhiji¶s observations on this:



Trusteeship (Gandhian concept

as applied to business) Ownership is a costly and illusory concept to ensure

permanency and succession.

It gives birth to attachment, exploitation, possessiveness, great

exploitation and revenge. All assets must be held in trust and used for the good of all

Distribution of assets and the benefits of the operations beequitable, not equal.

The owner of wealth has the right to a honorable livelihood. The

rest is that of the community. Let¶s see some quotes from HARIJ AN Oct. 1952, Pyarelal

(next page)



Trusteeship (Gandhian concept

as applied to business Quote from Harijan:

³Trusteeship provides a means of transforming the presentcapitalist order of society into an egalitarian one. It gives no

quarter to capitalism but gives the present owning class, achance of reforming itself. It is based on the faith that humannature is never beyond redemption. It does not recognize anyright of private ownership of property, except so far as it may bepermitted by society for its own welfare. It does not excludelegislative regulation of the ownership and use of wealth.

³Thus, under State regulated ownership, an individual will not befree to hold or use his wealth for selfish satisfaction or indisregard of the interests of Society´



Trusteeship (Gandhian concept as

applied to business Further, he said: If one has come by a fair amount of wealth,

either by way of legacy or by means of trade and industry, hemust know that all that wealth does not belong to him. What

belongs to him is the right to an honorable livelihood´ Gandhiji¶s concept of T was founded on non-violence.

He thought very idea of ownership was at the root of violence.

People can come together only when the rise above Cof Interests, and T is a way to bring people together.

This follows the Vedic dictum of RENOUNCE (rights andpleasures of self) and ENJOY (the pleasures of others).

This is also the basis of all religious commands ± to share

one¶s strengths and assets with others´



Trusteeship (Gandhian concept as

applied to business) Mahabharata: The character of Vidura is embodiment of all that

is proper. His advice to Duyodhana (son of Dhritarashtra) ± kingdomof Ayodhya..

Said

Kingdom does not belong to the king. King has only duty andresponsibility of looking after the welfare of subjects. DEBATE ON THE SUBJECT

1995 ± ³PROPRIETY of top execs. Increasing their salaries and perksmany times over. John Kay and Aubrey Silberston persuaded the PMto see placing some limits on the packages.

³Corporate managers are not so much agents of shareholders, as

trustees of the Company´ They asked for a Co. Law to impose duty on directors to

balance claims of investors, customers, suppliers andemployees.



DEBATE ON THE SUBJECT (Trusteeship)

contd.

2002 ± In India, ³the highest salary shd not be more than 10 or 15 times the lowest salary´

Of course, there is no consensus or law on this. (except

approval of appointment and remuneration at EGM-AGMs) But there is a law on minimum wages. How many comply?

More recently, the PM exhorted the CEOs ³not to flaunt´



Principles of Trusteeship

1st attempt to put a practical shape to G¶s thoughts on subject,was at an International Seminar in 19085 in N. Delhi by the IIC andthe Gandhian Institute of Studies, Varanasi.

Where a declaration was adopted:

³All life is a trust and all power carries with it obligations. The G Pof T expresses the inherent responsibilities of a businessenterprise to its SH, and the mutual responsibilities of these toone another. ³

JRD ± conference on T in Mumbai 1977:

³Elaborated the concept explaining that it did not focus on

matters of immediate concern such as distributive justice,socialization, land reforms and ownership of shares, nor on labor relations and handing over wealth to the nation for the commongood.



Principles of Trusteeship

T is a way of life, making you do whatever you do, for the goodof others or even of all.

A sense of T us similar to a belief in religion or a philosophy,

manifesting in areas like: Lowering prices through efficiency and technology, even at

levels below the permissible in terms of law or competition,

ensuring avoidance of adulteration after the product leaves thefactory,

Devoting share of profits to provide employment in rural areas, Transferring skills and technology.

E.g. THE EXCEL INDUSTRIES. C.C. Shroff



Trusteeship & Accountability

Centers around A/b of individuals to society.

It is the simplest logic to make the individual aware of hisdependence on others for his satisfactions, his wealth, hisphysical and mental capacities and to acknowledge his debt to

others. The acknowledgement of this debt results in sharing the

resources in the family and the community.

In Indian family, sharing and a/b are inculcated in various ways:

The KARTHA is a trustee. Who is generous and sacrificing for

the young, though the wealth may be in his name, he would notuse it for his personal enjoyment.

In larger groups, the relationships become complex andanonymous, and the individual¶s obligation watered down. (cont)




So too, today¶s Ministers expected to use funds at their disposalnot as per their whims, but that benefits the citizens.

No company can deny that its current status (good or bad) isdue to the contribution of all its SH.

The promoters would have flagged off the venture, but cannotclaim too high for subsequent growth.

Innovative ideas resulting in product development, mktg str.,cost reductions, lower inventory, increased efficiency, comefrom employees at levels way below too, which provide a

competitive edge. During downturn, unfortunately, employees become the firsttarget for disposal. Layoffs, pink slips, retrenchment, etc. Thedebt to them is not acknowledged. (contd.)




Very few acknowledge contributions of suppliers to their enterprises.

Only today, we have a strong ethos for better SRM.

Similarly, the dealer too, pushes sales.

The concept of T recognizes these debts also.

What about relationship between social costs of benefitsreceived from public utilities? People seldom bother about it.

E.g. aided schools, subsidized commuting and health facilities.

This is a debt Cos owe to society, which is an entity, including,

but bigger than all other SH. Also RESOURCES are of the society, to be given back. Benefits

of enterprise there from that accrues should be used directly or indirectly for society. EXCEL ± Rs & Assets rests with Almighty.




T is an ideal, not easily amenable to models and doctrines.

It is not a matter of structure, having employers, customers, etc.Structures demand obedience to codes or behavior ininterpersonal and social relations. Individual and groups acquire

³vested´ interests in the maintenance of the structures leading totyranny or corruption. (Satyam).

ALL RULES OF BEHAVIOR, EVEN WHEN DETERMINED BYMUTUAL CONSENT, ARE SOMEWHAT COERCIVE ANDTHEREFORE, VIOLATE OF INDIVIDUAL¶S FREEDOM.

T IS therefore voluntary acceptance of accountability to others. ItIs an attitude that evolves over a period of times. Requiresawareness. Recognizes the interest of others. It does not ruleout changes to structures, but emphasis is on attitudes & values.




CROSBY ± Q is Respect to Humanity.

Some organizations ± practice T ± by transferring ownership of Company to employees ± with no retrenchment and fair pay,

products not for war related activities (Scott Bader Co,). This does not I believe ensure T concept in toto.

For e.g. Cooperatives (Sugar, Milk, Bank) are akin to T butprovide plenty of instances of attempt at self-aggr. Andexploitation.

Lijjat ± Mahila Udyog Tata sale of TOMCO to HLL despite high bid from Nirma, Godrej

and Colgate, - belief the interests of employees best protected.




One view of T ± Corporate body is a person (citizen) made of 4different components (organization, capital, work force (bothmgmt and labor), and the community.

All these 4 are equally indispensable, and hence equal stakes,make decisions together, (25% plough back to organization)

Also at political level ± legislatures

± do not necessarily act as trustees in the interests of the larger community.

One somewhat successful ± Amul Dr.Kurien ± successfulperformance of any organized economic activity ± vision andleadership who can manage the divisive forces that tend toemerge from within or outside. (EVEN HE TOO!)



Trusteeship

In summary, therefore,

T IS A PHILSOPHY THAT NEEDS TO BE BELIEVED IN BYTHE PERSONS in command

By individuals collectively being aware of this, and willing towork and live side by side with all Stake Holders, concerned.



SOME MORE THOUGHTS ON

DECISION MAKING Despite the codes of Ethics, the ethics

programs and special departments-

Corporations don¶t make The ultimatedecisions About ETHICS«..

Ethical choices are made by INDIVIDUALS.

M. Euel Wade Jr



Decisions are:

Knowing What¶s Right

Doing What¶s Right

Managing Competing Rights

Everything Counts

Closing Thoughts



Knowing what is right

Use these guides «

Laws

Rules & Procedures

Values

Conscience

Promises

Heroes



WeWE BELIEVE

It¶s not enough«

«to just establish ethics

ortalk

ethics

You have to DO ethics !



Doing What¶s Right

8 Behavioral strategies

1 Check BEFORE you act! 2 Master ³The 3 R¶s´! 3 Remember that little things«mean a lot! 4 Know what¶s un-compromisable! 5 Say NO«with tact! 6 When in doubt, ASK! 7 Check yourself out! 8 ³Walk the Talk!´



Master ³The 3 R¶s´!

RESPECT

RESULTS

RESPONSIBILITY



Common Rationalizations For Not

Doing What¶s Right³Everyone else does it´

³They¶ll never miss it´

³Nobody will care´

³The boss does it´

³No one will ever know´

³I don¶t have time to do it right´

³That¶s close enough´

³Some rules were meant to be broken´

³It¶s not my job´



3 Remember that ³little things

mean a lot´! Examine your own ethical make-up

to see where you stand and where

you need to improve. Try lookingat«



#4 Know what¶s

uncompromisableWhile different organizations provide

different guidelines on operating

latitude, there are several universalareas where zero tolerance for violations is appropriate:

Laws and Regulations

Public and Employee Safety Truthfulness of record and statements



#5 Say NO«with Tact

Here¶s How! State your objection and concern

without indictment. Propose an alternative action that you

feel is ethical.

Ask for the person¶s help and

agreement. Seek assistance from a higher authority

( if the person doesn¶t agree).



#7 Check yourself out!

Ethics Self-Assessment



#8 WALK THE TALK

³Giving what you expect to get from others is

called integrity.´

Managing Competing RightsManaging Competing Rights



Theimage cannotbe displayed.Your computer may nothave enough memory toopen theimage, or theimagemay havebeen corrupted.Restartyourcomputer,and then open thefile again.If thered x stillappears, you may haveto deletetheimage and then insertit again.

Managing Competing Rights«

Ethical Dilemmas

Managing Competing Rights«

Ethical Dilemmas

Right vs. Right

It¶s right to It¶s also right to

Tell the truth Be considerate

Create job security Be profitable

Others?

Be concerned withshort-term results

Focus on long-termgrowth and stability

BUTBUT



Managing Competing Rights

Eliminate the conflict

Decide what¶s ³more right´

Seek assistance

Th t h ll i ³Ri ht Ri ht´ f



To be a good friend and team player

AND

To be willing to speak out when someoneacts unethically.

The most challenging ³Right vs. Right´ of

all«



³Be about what the business says it is

about.´

#8 Make Sure The Mission Matters



Removing Type 4 Manager was a

watershed for GE«the ultimate test

of our ability to WALK THE TALK J ack Welch F ormer CE O & Chairman



Feast On Feedback³If you don¶t know how you¶re doing,

it¶s hard to know how to do it better.´



³One of the keys to our successis a µself-assessing¶ culture.´ Libby Sartain, Former Vice President

of people ± Southwest Airlines



Knowledge

Information

Skills

Support

Seal Employee Competence with a K.I.S.S.



Provide ³places to go´

³Make sure there are people within

your organization to whom

employees can turn to for guidanceand help with ethical issues-and for

reporting suspected ethics

violations.´



10 Reasons Why Leaders




Should Model Ethical Behavior

It reduces pressure on employees tocompromise ethical standards.

It increases employees willingness to

report misconduct. It improves trust and respect at all

levels.

It protects the positive reputation of the

organization. It encourages early detection of problemareas and ethics violations.




Should Model Ethical Behavior It fosters a positive work culture and improved

customer service.

It provides an incentive and framework for ethical decision making.

It increases pride, professionalism, andproductivity.

It enhances your ability to attract and retainhigh-quality and diverse employees.

It helps ensure the long-term viability of theenterprise.

Bonus R eason, 11. It¶s purely and simply the right thing to do!



New Section

BUSINESS ± Ethics & A VISION FORSTAKEHOLDERS

BUSINESS ± Ethics & A VISION



BUSINESS Ethics & A VISIONFOR STAKEHOLDERS

HENRY FORD THE H IG HE S T U S E OF CAP I TAL IS NOT TO

MAKE MO R E MONEY BU T TO MAKE MONEY DO

MO R E FO R THE BETTE R MENT OF LI FE.

PETER DRUCKER

MANAG EMENT IS NOT ALL BU SI NE SS .MANAG EMENT EDU CAT I ON M U S T DEVELOP TO TEACH AND EXEMPLI FY THE VALU E S , THE METHODS AND THE TOOLS FO R ALLLEADE RS H I P.





WHAT ARE THE BUS. CONSTITUENCIESWHICH MAKES ETHICS SO DESIRABLE?

Customers

Colleagues employees

Shareholders Suppliers-Service providers

Business partners

Society





THROUGH WHAT NORMALLY A

COMPANY ANNOUNCES ITS

ETHICAL CHARACTER? Vision Statement

Creed Statement

Style Statement M I P




&FOR STAKEHOLDERS

WHAT DO EACH ORGANIZATION TRIES TO SA Y BY THESESTATEMENTS

Innovative

creative

high quality products

fast & first to opportunity

Focus on what is important

open & candid

all dealings with integrity

Adhere to the highest standards of ethical and just conduct

Honest and integrity characterize our business activity

Health & well being of all Provide an environment where all can excel

Q. ARE THEY LIVING UP TO IT?




FOR STAKEHOLDERS

WHAT DOES A V. STATEMENT SIGNIFY FOR EACHCONSTITUENCY?

Customers: ± Anticipating needs, superior products, continued investment

Colleagues: ± Attract & retain excellence,

± no discrimination,

± good work environment,

± equal opportunity,

± objective evaluation,

± fair & objective, etc. Shareholders: ± Fair & attractive returns, prudent risks to get sustainable

growth



FOR STAKEHOLDERS

Style Statement of a Business Enterprise thatsets forth goals, commitments and foundationsfor Decision making, and sets forth guidance for

achieving these goals:

± Go for global reach, harvest ideas, be first, focusresources on important challenges etc.

To show restless discontent with the way we aretoday and pursue better ways to serve customers.

These are best achieved thru teamwork, sharing

information quickly, widely and candidly. Open communication, environment where true

success is well rewarded.




FOR STAKEHOLDERS

MANAGEMENT INTEGRITY POLICY (Expectations from employees)

General Integrity:

± Compatible with local laws & regulations, honesty, integrity &character

Political Contributions:

± Not admissible unless satisfied with legality Proper Accounting

± Accepted a/g rules and regulations and controls. Truly reflectingtransactions recorded.

Fees /Commissions

± Should represent fair & reasonable consideration for services.

Payment to Govt. Employees or Officials.

± To influence decisions of a judgmental nature. Specific responsibility

± Report, Consult, No violation allowed of any rules, no retribution,environment concerns to be fully complied with.




FOR STAKEHOLDERS

OPERATING SPHERES WHICH CAN IMPACT THE ETHICALASPECTS

GMPs

± build quality into products from the start

instead of relying testing finished products. ANTI TRUST POLICY

± Will ensure no restraint on competition, theformation of monopolies, Unfair businesspractices. (fix prices, cartels, boycotts, below

cost prices, buy from a lower priced marketand sell at a higher price market




FOR STAKEHOLDERS

Reciprocity

± (buy product B only if they buy product A etc)

INTELLECTUAL PROPERTY POLICY

± Patents Laws: processes, formulas, methods, techniques,

± Trade marks:

Logos, words, names, symbols (distinction),

± Copyright laws:

original written expression of ideas and reduced totangible forms like literature, art, music, computer programs etc.




FOR STAKEHOLDERS

DISCLOSURE OF CORPORATE

INFORMATION

CONFLICT OF

INTEREST

± (Loans, fees or services, gifts, co. position for

personal advantage, working for competitors,

influence orders, kickbacks, Investing in

securities of others.

SECURITY LAWS POLICY -

± Elimination of fraud and deceptive practices.




FOR STAKEHOLDERS

7 SINS IN BUSINESS

BUSINESS WITHOUT MORALITY

POLITICS WITHOUT PRINCIPLES EDUCATION W/O CHARACTER

WORSHIP W/O SACRIFICE

WEALTH W/O HARD WORK

DEVOTION W/O AUSTERITY

EXISTENCE W/O RE SCRIPTURES



Checklist for responsible



Checklist for responsible

Decision Making Is something bothering you?

Who are affected

What ethical issues are involved Is It your responsibility?

What are the compliances you shd. ensure?

Whom should I seek for advice?

Am I being true to myself?

Is it consistent with my own personal values?

Decisions taken



Decisions taken

What should be your reaction This refers to both your working and

professional life

Decisions taken by you and has not produced

results as expected Decisions taken by you and has produced

results as expected and more than expected

Decisions taken by others in your life (bothworking and personal life) which helps you

Similarly, which affects you adversely.



What would be your decision?(1)

I have observed a colleague in thelaboratory who is not recording data

properly. I know it is none of mybusiness, but this colleague hasviolated the procedure on at least twooccasions that I have seen. Whatshould I do?



Your decision (2/3)

I have a relative who could supply some of our raw materials for less than we pay now.May I suggest to the purchasing manager that we enter into a contract with him?

I am responsible for booking hotels for conferences for our marketing colleagues. A

hotel at which I recently organized a meetingsent me a weekend voucher. Should I acceptit?



Your decision? (4/5)

A friend of mine works for a localnewspaper and is always asking me for

tips about new products for stores. If Itell him things that I know are supposedto become public eventually, what is theharm?

A reporter asked me information aboutthe Company? Can I answer?



Your decision (10/11)

At a trade association meeting,someone started a discussion about

future prices? Can I participate? What should our company do to protect

the environment? Or ozone layer.



Your decision (12)

One of our products is doing great ± ithas got better than a 50% market share.

We were thinking abou locking ulp theonly two vendors who can supply uswith a key ingredient for the product.We want these vendors to agree to sell

the ingredient only to us and not to our compeitors.. Can we do this?



N S i



New Section

Corruption & Indian Philosophy



C ti & I di Phil h



Corruption & Indian Philsophy

Competitive market ± a breeding place for corruption?

LOBHA ± greed ± IP ± an adharmic path. Desires ± craving for ±more and more ± new aspirations, breeds jealousy, inner turmoil. A confused mind. STAT U S, IMAGE, ( do get respect,

but may be ³uncharitable, and uncomplimentary.) Effect ± poor people, innocents, straights, value minded.

SUFFER, They cannot get their job done ± e.g. Education,SMEs.

Reason ± ³Preyas´ ( temporary pleasures) and ³prayas´ ( gainwithout effort). One with minimum of values, suffers ³conscience

hurt) ± loss of sleep. IP : concepts like ³ ends..means, dharma, selfless work, sattvik

guna, param brahmam, self-motivation, bliss.

I di l



Indian culture

DEFINITION: Culture is the integral sum of values which, which an

individual or group of individuals and the society at large conceive and

practice. ± U nique for each nation.

C.R. (I Gov-General) ³Sum total of the ways of living built up by groups

and human beings and transmitted from one generation to another´ Accepted behavior, values, beliefs, perceptions, behavioral norms, and

expectations of a particular society.

These believes and values have emanated from our precious s

scriptures like V, U , R & M, Koran, Bible. - family oriented,

Western nations: individualistic in approach, non-interference, decision

making ( even in family), (Ours ± a consultative process)independenceand freedom ( Conflicts therefore between 2 cultures ± e.g. as in

marriages). Indians ± more emotionally attached to family.



Difference between Indian & Western



Difference between Indian & WesternCulture

Unique combination of materialism and spiritualism - More materialistic

Giving and not asking in return ± Give and take only

Insist on proper balance between profit making & social welfare ± Profitmaximization, To attract SH, it should fulfill social obligation.

Means are given equal importance like ends (an ethical way) ± ends justify means, if an organization has attained its end, ethics don¶tmatter. Now a change in perception, from the business¶ long termobjectives.

God, human beings interrelated (animate & inanimate- part of SS.- NOBELIEF.

Natural concern to take care of nature (treated as Mother), and soenvironment ± only to the extent , for our own sake, for our survival,and maintaining the balance of ecosystem. (DUMPING??)





Duty or moral obligation towards society, and so do good, and fulfillSResp.- SELF-CENTRED, ONLY IF IT ENHANCES IMAGE.

Belief in Tyaga (service attitude) ± tolerance, contentment, peace,harmony, simple living ± high thinking, integrity, humanity, cooperationand synthesis in dealing with society ±Team spirit not only at work

place, beyond that. INTERNALISE and link to personal andprofessional life. Whole nation is a team. - survival of the fittest,competitive to deal with external world, team spirit, yes, but withininternal orgn.,- to meet its Goals and objectives.

More assertive in approach ± more aggressive

Service attitude ± confined to customer service, loyal to the product.

Managers duty allow subordinates to not only grow, but as good humanbeings. Skills upgradation is not the only motto, but values along withskills ± train and develop employees ± O&Goals.





IC probes deep into fundamental Q like ³Who are you?´ ³What isUniverse?´, ³What is the purpose of your being here?, ³What isthe relationship with work and universe?´ - IT DOES NOTTHINK OF LIFE IN TERMS OF THESE TYPES OF

FUNDAMENTAL QUESTIONS. But from point of view,technology, search of existence, genesis, resource strength.

µTO DO´ IS NOT ENOUGH. ³TO BE´ IS THE KEY WORD.

³JUST DO IT´

N S ti



New Section

Comparative study of Value Systems

C ti t d f V l S t




To understand, one should study the daily habits of a particular society ± lives, tradition, belief, perspective of the world, VS.

Individual VS decides the dos and don¶ts in their life. Afoundation of their character, and why they behave in a

particular manner. Culture differs between nations, although apparently looking

similar.

Let¶s study the VS of some countries:

J APAN, CHINA, AMERICA AND INDIA.




Bus. Ethics: Quality products ± and no cheating, communityservice. Profit yes, but not at the cost of quality.

Team Spirit: As a provider of positive energy and harmony.Team output better than individual output. Believe in joint

decision making. QC, etc. Holistic approach: Long term association with company

Self management: Self-discipline and self-control ± emp.Expected to control anger, hared, selfishness, jealousy, greed,etc. In face of challenges, expected to adapt or adjust

Value system: courteous and gracious people, cannot express

one¶s opinion openly or directly. ³Honne´ real opinion, and theothr ³tatemae´ public opinion. Agreement with people aroundimportant.

Comparative study of Value Systems ±



p y yJapan

Gratitude shown

Non-interruption ± while on phone, etc.

Informal relationship ±w/o hierarchical structure.

Long Term relationship: employer, employee, trade,kaizen, respect to elders.




p y y America

Materialistic ± now slowly to spiritualism ± realizing emptiness ±wish to enjoy the luxuries of life. Achievement oriented,challenging goals, ambitious and hard working. U/standindividual uniqueness, and depending on the drive,management needs to motivate them in different manners.

Relationship based on give and take: in work life, mutuallybeneficial. Higher o/p higher return. So, work hard, give bestoutput and get rewarded. Believe in formal relationship inprofessional life.

Believe in non-interference: Not much inclined to family. Once

adult, individual decisions w/o bothering about parents. Equity and cooperation: While they encourage team spirit,

individual performance is rewarded.




p y y America

Prefer Top-dn approach: Decisions at top communicated down.

Interest to develop employee skills: Skill upgradation, yes, Moreoutput, more profit. Less care on instilling values.

No job security ± Unlike Japan, if good retain him. Employees just a cog in the machine.

Loyal to the profession: Not to the organization. Leave if nothappy.




p y yCHINA

Emphasize that people should be truthful, non violent, generous,sincere, kind hearted, benevolent, courageous and selfless bynature. They love the kith and kin.

Jen & Yi : Jen ± love, friendship, benevolence. Yi ±

righteousness. Expect life to be full of harmony and peace. Wu Wei : Means w/o forcing, emphasized on accepting and

harmonizing with the flow.

Thought counts: Man went on a long journey to visit friend with aswan. Swan escaped, trying to catch it, he got hold of a feather

only. He explained to his friend what happened, but the friendtook the feather as a ³priceless gift´. As the saying in chinesegoes, ³the gift is nothing much, but it is the thought that counts´.




y yCHINA

Punctuality : Value this much. Confucius, great chinesephilosopher: ³there Is a time to act and a time to remain inactive.

When one is inactive, although consciously he is not working,

the subconscious mind continues the process, and work would

be accomplished. Too much action makes the job monotonous,destroys the creative energy´.

Zen: Tranquil, focusing the mind to bring harmony with nature.Zen philosophy was based on simplicity of thought and action.To attain this state, monks needed to be self-disciplines, relaxed

nd focused. Free from ego and relate to the elements of nature. Tao: Law of integration and nature balance.




CHINA

Yin-Yang: symbol of harmonious balance. The polar oppositesdefine the duality required for all life to exist. Male-female;flora/fauna, positive-negative; dark-light, wind-water. Withoutone, the other cannot exist, the two forces cannot be separated.

Energy or Chi is the moment of yin-yang. Energy moves, flows,encompasses everyone. Comes from the earth core and circlesthe globe. Chi/energy can generate and destroy continentsthrough tectonic plates and land mass movement. Chi for theenvironment nand our persona Chi are one and the same. Weshould develop our sensitivity to use and direct the energy in our bodies and environment.




CHINA

Gunaxi: or Relationship is an imp. Chinese business element.Right gunaxi will make business successful, minimize risks,frustrations and disappointments. Right Gunaxi with rlevantauthorities will determine the competitive standing of an orgn. In

the long run. Unlike West, chinese business would like to dealwith people whom they know and rust. On the surface it maynot seem so, in reality Western cos. Have to make themselveskown to the chinese people before any business can take place.

Also between individuals at a personal level. Not before salestakes place, but an ongoing process. Trustworthiness.

Greek the Tragic Hero



Greek ± the Tragic Hero

.. He is a man who is neither a paragon of virtue and justice nor undergoes the change to misfortune through any real badnessor wickedness but because of some mistake.

..TRAGOIDIA ± ³SONG OF THE GOAT´ depicts the downfall or

a noble hero or heroine. DIONYSUS was the Greek god of nature, wine, creativity,

intuition and imagination. His followers were a randy bunch of goat-legged creatures called SATYRS. In a drunken state,these creatures would sing songs that raised questions on

various cultural codes and notions of righteous and appropriatesocial conduct. (the origin of the greek theare.)

Greek the Tragic Hero



Greek ± the Tragic Hero

Anthropologists say, the function of drama was to reflect thesubconscious and cosmic patterns by re-enacting the everydayworld

It was to acknowledge inherent conflicts of civilization that

demanded but defied easy resolution. In INDIA

Natyashastra (Brahmanas)

Drama as an integral part of religious rites ± e.g. NAVRATRI(Rama Leela), Xmas ± Nativity plays.

Throughout the play one enacts a holy event. As years pass,the drama remains the same, but those watching are growing upor growing old. They discover different layers of meaning in thesame play, in the same character, in the same dialogue. (contd.)

Greek ± the Tragic Hero & India



Plays With that consistent and repetitive

interaction with theater more light is

thrown on the meaning of life. The Goat¶s song thus joins us in our

struggle to make sense of existence.

The Family and Values ± lessons



from India The Ambani brothers

The Raju brothers

R Raju ± built through skill, talent and dedication a greatcompany. There was a sense of purpose, dedication,

competency and leadership vision in him. People who hadbusiness with Satyam even abroad paid glowing tributes to their dedication to quality, reliability and integrity. No greater tributethan a satisfied customer.

Perhaps a reason at that time of India¶s growth and economy.

Why then such a lofty person turn to crime? Greed or low stake.

Was it a family dispute? Based on ownership of LAND, etc. Or Was it that political nexus was essential to get what he felt

was his due? And not, from another angle, sharing it with family.

The Family and Values ± lessons from



India & mythology

Real Estate & Infrastructure ± two sectors, that are only half-liberalized and possibly needed upfront bribes, so needed to dipinto funds.

It would have worked out, but no one anticipated such collosal

economic downturn. Or does it mean that if it was fully liberalized economy, thiswould not have happened?

Was it greed or HUBRIS? (arrogant pride), like DURYODHANA ± thought himself as master of universe and get away withanything. In Raju there was an infallibility, Entire Hyd thought

of him that way. Or was he like Dhritarasha ± weakness for his sons. Leave

them much more even crossing the line of DHARMA.




India & mythology

Mahabharata challenges the old

Sva dharma vs Sanadhana Dharma ± teaches behaving

impartially with everyone.

IS REGU LAT OR Y WAY S THE ANSWER? IS IT A

GOVERNANCE F AILU RE. CAN IND. DIRECT ORS¶ BE F AU LTED?

CAN M OST FOOL PR OOF S Y STEM CAN STILL BE SIDE

STEPPED.

S O WH Y IMPR OVE OR RE FORM THE S Y STEM., OR BLAME

LIBERALIZATI ON? WHAT IS YOU R ANSWER?




India & mythology

Is there a lesson from when Y udhishtra insisted on taking a

stray dog into heaven, he performed an act of dharma, showing

that goodness is one of the few things of genuine worth in the

world that might take away some of the familiar pain of being

alive and being human in our post-liberalization times.

N OW, LET U S LOOK AT S OME TH OU GHTS F R OM STEPHEN

C OVE Y (7 HSP ± 8 th H) on

H OW PRINCIPLES CAN SAVE C OMPANIES.



Stephen Covey on Principles of Cos



Stephen Covey on Principles of Cos.

He describes 6 types of Cancers:

Cynicism, criticism, comparing, competing, complaining andcontending.

These consume the mind, soul and heard, and infect our culture

DNA.

Instead one can build a positive and cohesive culture.

Practice it through shared learning, goals and functional ethics.

Requires Parent, Teacher initiative.

His children: 1 hr TV per day, Games only on weekend. He talks of identity threat due above viewing, a habit of comparing and attendant cancers.





Accounting norms ± so far: Machine as Assets, HR asexpenses. Knowledge do not find a place in the Balance Sheet.

Sub-prime crisis US ± due BROKEN TRUST.

Have inside out appraisal. Spread inner circle through our circle

of influence.

MAKE SURE PEOPLE DO NOT CONTROL US, OURPRINCIPLES CONTROL US.

A FEW QUOTES

³A country should be defended not by army but by ethical

behavior ± Vinobha Bhave

³Critics of the war have no reason to regret their views´ Stephen

Cohen.



THANK YOU

bus ethics met 1

Documents