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VALUES AND

ETHICS IN
BUSINESS

Value system are the set of belief held by a

person which determines to a large extent


his/her choice of alternatives to achieve a
particular aim or goal.
Values are so embedded that they can be

inferred from peoples behaviour and their


expressed attitudes.(the way they have
originally learnt from the family,society,
educational institutions,religious
organisations, etc.)

Concept of Values by Milton Rokeach :According to Milton Rokeach,Values are


beliefs that guide actions and judgements
across a variety of situations.
In relation to business, socials values
determine the objectives of business as
well as the manner in which business
affairs should be connected.

Ethics :Ethics has been derived from the Greek word


Ethos meaning character; guiding beliefs,
ideals that prevade a group etc.
Acc. To Dale S. Beach, Ethics refers to a set
of moral principles which should play a very
significant role in guiding the conduct of
managers and emloyees in the operations of
any enterprise.

Morals :
Morals are values that we attribute to a system
of beliefs that help the individual define right
versus wrong, good versus bad.
Attitudes:
Attitudes can be defined as providing a state of
readiness or tendency to respond in a
particular way.

Types of Values
Values may be of two different types given by
Rokeach Value survey (RVS) :
1. Terminal Values : refers to desirable endstates of existence. These are the goals that
a person would like to achieve during his or
her lifetime.
2.Instrumental Values: refers to preferable
modes of behaviour, or means (tools) of
achieving ones terminal values.

Values have two attributes :


a) Content attributes : which merely states that

the conduct or goal is important.


b) Intensity attribute : which specifies just
how important it is .

Features of Values :
a) Values are the most central to the core of a person .
b) Values provide standards of morality.
c) Values guide people to take specific positions on societal
issues.
d) Values can be moral, immoral depending upon whether
they conform to, go against, or are indifferent towards
certain norms of normality.
e) Values are manifested in thoughts, speech and actions of
people.

Formation of Values :
The following types of factors influence the
formation of values of people :
1. Family factors
2. Social Factors
3. Cultural factors
4. Personal factors
5. Organisational factors

Role of Values in Understanding Human Behaviour:


Values affect the behaviour of individuals in organisation
a)Values lay the foundation of understanding the attitudes,
perception and motives which shape the behaviour of
individual.
b)A system of shared values of the organisational members help
in developing the organisational culture.
c)Organisational values which are ethical and in the interest of
the society enhance the image of the organisation.

d)Value system influence choice of


organisational goals and strategies adopted to
achieve those goals.
e)Value influences the way, in which an
individual looks at other
individuals,i.e.,interpersonal relationship.
f)Values determine the extent to which
individuals accept organisational pressures and
goals. If these do not match with their values
they even leave the organisation.

Contd:g)Values are not fixed, but they change over time.


h)Hierarchy of values which is within, forms our value
system.

Business Values & Business Ethics


Business values consists of the principles which define
constitutes good business, what objectives should be pursued
and whose interest the business should serve. Eg. Honesty and
truth are basic values of our society.
Business ethics refer to the moral principles which govern
business activities.Business ethics provide a code of conduct
for the managers.The purpose of business ethics is to guide the
managers and employees in performing their jobs.They lay
down norms of behaviour by the business.

Impact Of Values On The Behaviour Of


Managers
The perception of a manager about the situations he/she faces
The solution to the problems faced by the business enterprise
The way in which a manager interacts with other individuals

within and outside the firm


The perception of a manager as to what constitutes the
success of business
The degree to which a business enterprise accepts the
pressures

Values have brought several changes in the orientations of


managers and businessmen. Some examples are :
i) Business purpose: from single objective of profit
maximisation to multi-purpose activity.
ii) Customers:from let the buyer beware to customer is
king
iii) Workers:from a mere factor of production to human
resources and partners in business.
iv) Government:from policy of non-interference to healthy
regulation of business.
v) Society: from selling to maximisation of want
satisfaction and contribution to society goals or
fulfillment of social responsibility.

Significance Of Values In Management Of Business


Values play an important role in managing a business in the
following ways:
1. Standards of behaviour
2. Guide to decision and actions
3. End-means relationship
4. Credibility among employees
5. Credibility among shareholders
6. Social responsibility
7. Corporate values

Infosys Core Values


Customer Delight
Leadership by example
Integrity and Transparency

Fairness
Pursuit of excellence

Values Of Indian Managers


(S.K.Chakarborty had summarised in his book, Management by

values)
The individual must be respected
There should be an atmosphere of cooperation and trust
Jealousy is harmful for mental health
Mind purification or chittashudhiwhich implies purification of
emotions and feelings.
Work is worship.
Customer satisfaction
Creativity
Ethico-moral soundness
Renunciation and detachment from the fruits of action
The inspiration to give

Values Of Western Management


Western managers are punctual and have high respect for

others time.
Western value system emphasizes fulfilling of contractual
obligations.
Professional efficiency and work-discipline are the
conditions under which western managers perform.
They consider rules as sacred for them in their value system.
In the west, managers do not let personal relations interfere
with their professional dealings
Accountability is a very important attribute of western
managers.
Western managers give priority to principles over their
privileges and they consider this as the best strategy to win..

Values Of Japanese Managers


National service through industry

Fairness
Harmony and Cooperation
Struggle for betterment
Courtsey and humility
Adjustment and assimilations
Gratitude