DOES M

ORALITY

HAVE

ESSEN

CE IN

CORPORATE L

IFE?

DOES M

ORALITY

HAVE

ESSEN

CE IN

CORPORATE L

IFE?

Oh Yes! Oh Yes! Oh Yes!

Lets Focus onWhat & How

WHAT IS MORALITY?

Morality (from the Latin moralitas "manner, character, proper behavior") is the differentiation of intentions, decisions, and actions between those that are good (or right) and those that are bad (or wrong). A moral code is a system of morality (according to a particular philosophy, religion, culture, etc.) and a moral is any one practice or teaching within a moral code. The adjective moral is synonymous with "good" or "right." Immorality is the active opposition to morality (i.e. good or right), while amorality is variously defined as an unawareness of, indifference toward, or disbelief in any set of moral standards or principles. An example of a moral code is the Golden Rule which states that, "One should treat others as one would like others to treat oneself."

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WHAT IS MORALITY?

Aristotle argues that the correct approach in studying such controversial subjects as Ethics or Politics, which involve discussing what is true about what is beautiful or just, is to start with what would be roughly agreed to be true by people of good up-bringing and experience in life, and to work from there to a higher understanding.

Ethics is about what makes a virtuous character (ethikē aretē) possible, which is in turn necessary if happiness is to be possible.

He describes a sequence of necessary steps in order to achieve this: righteous actions, often done under the influence of teachers, allow the development of the right habits, which in turn can allow the development of a good stable character in which the habits are voluntary, and this in turn gives a chance of achieving eudaimonia

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IMMORAL HISTORY OF INDUSTRY

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IMMORAL HISTORY OF INDUSTRY

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IMMORAL HISTORY OF INDUSTRY

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FORD PINTO:11 MILLION DEFECTIVE CARS SOLD THAT CAUSED MANY HUNDRED DEATHS AND INJURIES DUE TO FIRE

IMMORAL HISTORY OF INDUSTRY

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IMMORAL HISTORY OF INDUSTRY

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IMMORAL HISTORY OF INDUSTRY

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MORALITY IMPROVES OVER THE YEARS

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MORALITY IMPROVES OVER THE YEARS

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• It became accepted that their views were no longer accurate

• They pushed “Profit Maximising at Any Cost” TOO FAR• The World learnt lessons from History• Business started to CARE• Pressure from Civil Society and Self Regulation caused

CHANGES• SUSTAINABILITY - OUR COMMON FUTURE became MANTRA

• CSR was linked with Profitability• Corporate Philanthropy• Voluntary Codes of Conduct adopted• Social Audits were done• NGOs and LAW Applied Pressure

MORALITY IMPROVES OVER THE YEARS

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MORALITY IMPROVES OVER THE YEARS

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CONCEPTUAL MODELCORPORATE MORAL DEVELOPMENT

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CONCEPTUAL MODELCORPORATE MORAL DEVELOPMENT

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• “WINNING AT ANY COST” ATTITUDE• UNMANAGED ETHICAL CONCERNS• PRODUCTIVITY AND PROFITABILITY ARE DOMINANT VALUES• ACT WHEN CAUGHT PHILOSOPHY• IRON FIST OF TOP MANAGEMENT AND “GO ALONG” TYPE OF BEHAVIOUR

BY STAFF• ELSE, EXPULSION• “EVERYBODY DOES IT”• “NO ONE WILL FIND OUT”• “RULES ARE MEND TO BE BROKEN”• EXAMPLES: ELECTRICITY THEFT IN STEEL INDUSTRIES, BAD HEALTH

CONDITIONS, HIRING ILLEGAL MIGRANTS WITH NO LEGAL RIGHTS, EXPLOITATION OF THE POOR• CORPORATE MOVIE• SIVAKASI FIRE KILLING MORE THAN 36 PEOPLE

CONCEPTUAL MODELCORPORATE MORAL DEVELOPMENT

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• HIGHER STAGE OF MORAL DEVELOPMENT THAN STAGE 1• CULTURE DICTATES OBEDIENCE TO LAW, CODES AND REGULATIONS• WORRY ABOUT LEGALITY AND NOT WHAT IS JUST AND RIGHT.

• COMPLIANCE OF “LETTER” OF LAW AND NOT “SPIRIT” OF LAW• “IF ITS LEGAL, ITS OK IF IT IS NOT, LET LAWYERS CHECK IT OUT”• “DON’T DO ANYTHING UNLAWFUL OR IMPROPER THAT WILL HARM THE

ORG.”• FORD PINTO: REASONING THAT “IT MET ALL FEDERAL, STATE AND LOCAL

GOVT. STANDARDS CONCERNING AUTO FUEL SYSTEMS”- TRUE! BUT THEY KNEW THE PROBLEM AND SHOULD HAVE MADE IT SAFER.

CONCEPTUAL MODELCORPORATE MORAL DEVELOPMENT

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• UNLIKE 2ND STAGE: CORPORATIONS EVOLVE CULTURES THAT CONTAIN VALUES

• STRIKE A BALANCE BETWEEN “PROFITS AND DOING RIGHT”• CODES OF CONDUCT ARE INTRODUCED• MANAGEMENT STILL HAS A “REACTIVE MENTALITY”• BELIEVE THAT “ETHICS PAYS”• RESPONSES TO EXTERNAL SOCIETAL PRESSURES ARE GIVEN• FOCUS ON PEOPLE OUTSIDE BEGINS.

CONCEPTUAL MODELCORPORATE MORAL DEVELOPMENT

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• GREATER BALANCE BETWEEN PROFITS AND ETHICS• OVERT EFFORT TO MANAGE AND PRODUCE ETHICAL CLIMATE• RECOGNITION OF SOCIAL CONTRACT BETWEEN BUSINESS AND SOCIETY• CODES OF CONDUCT BECOME “LIVING DOCUMENTS”

• TYPICAL EMERGING ETHICAL ORG. FOLLOW THE CODE OF CONDUCT LIKE THE UNDISPUTED LAW. ONE THAT WILL NOT BE BROKEN.

• WE WANT TO DO THE RIGHT THING• ETHICAL VALUES BECOMES PART OF CULTURE

CONCEPTUAL MODELCORPORATE MORAL DEVELOPMENT

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• EMPLOYEES ARE REWARDED FOR WALKING AWAY FROM ACTIONS IN WHICH ETHICAL POSITION OF THE ORG. WILL BE COMPROMISED

• Eg. SIR ADRIAN CADBURY’S GRANDFATHER WITH A PROFITABLE PRO-POSITION THAT HE FOUND MORALLY REPUGNANT.• Christmas Tin of Chocolates to English Soldiers• He opposed War-Could not Leave Order• Took order-Did not Profit from it-Only covered remuneration to

employees• HIRING, TRAINING, FIRING AND REWARDING ALL REFLECT THE ETHICAL

PROFILE

CONCEPTUAL MODELCORPORATE MORAL DEVELOPMENT

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• Now Lets Discuss Certain Examples:• CORPORATE MOVIE• VIC-MOVIE HALLS• BTC-SUBWAY• BTC-GDB• ALA-SALT• MC-SELLING HOUSE TO MAKE PAYMENTS• TATA-DO NOT GIVE BRIBES, BUT RADIA TAPES HAPPENED• GAP – SRI LANKA

SO CHILDREN,WHAT DID WE LEARN?

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• ORGANISATIONS CAN BE AT OR START AT ANY STAGE OF THE MORALITY PYRAMID• MAY RISE, STAY STATIC OR PROGRESS/REGRESS TO A DIFFERENT

LEVEL• BOSS, SOCIETY, FOUNDERS OF ORGANISATION, HISTORY ALL PLAY AN

IMPORTANT ROLE• MOST ORGANISATIONS IN AMORAL STAGE DO NOT LEAVE IT WITHOUT

CHANGE OF MANAGEMENT

• Past ethical anecdotes and stories that circulate satisfy the “epistemic” hunger for employees. The form the culture and the reference point for Morality. It is a continuous process that shapes and moulds the Morality standards of an organisation.

• To make both companies and government organizations behave morally, we need to focus on organizational values and leadership. Some people will argue that organizations can’t be moral; only people can be moral.

• BUT WHILE SOME ORGANIZATIONS ENCOURAGE AND REINFORCE MORAL REASONING AND BEHAVIOR, OTHERS DO NOT.

MORALITY IS A WINNER!

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• SOME ORGANIZATIONS ENCOURAGE AND REINFORCE MORAL REASONING AND BEHAVIOR, OTHERS DO NOT.

• LET US STRIVE AND HONOUR ETHICAL BEHAVIOUR IN EVERY ACTION WE DO.• ASK: IS THIS THE WAY I WANT TO BE TREATED?

• IS THIS THE PRODUCT/SERVICE FOR USE OF MY CHILDREN

• NO, ORGANISATIONS ARE NOT ETHICAL!!-VERY FEW STRIVE TO BECOME ETHICAL

• BUT ETHICS ARE REWARDING TO THE ORGANISATION AND ARE PERHAPS THE BIGGEST GOODWILL FOR A COMPANY.

• MANAGEMENT SHOULD INSTILL “GOOD THOUGHTS” AS MARKETING STRATEGIES

• STRONG MORAL CODE OF CONDUCTS SHOULD BE IMPLEMENTED, AND FOLLOWED IN TOTO.

• ORGANISATIONS, SOCIETY AND HUMANITY WILL DO BETTER IF YOU AND ME WILL MAKE THIS WORLD A “JUST AND RIGHTEOUS” PLACE TO LIVE.

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Jatin Aggarwal

PGDBM 96-98 JIMSPast President JIMS Elite Partner | Bansal Trading Company |Director | ALA Exim Private Limited |