MANAGEMENT SKILLS

LEADERSHIP AND
Impoct on busthes Operotlons
world There
wn nhad a radcal impact upon bueine operations AMOundthe
ntamental changes in euph hain managemet maufctuting. marketing, warenou
n the ronme demand and hehavion Ihis had led to many well etablished compane
then eee yeratins m in eome cases, close down the business Some other companies
tmanpou ANd replaced it with mtificial intelligence machines and Roberts, thus mak1ng
myeitivr and reeihent

Impoct on Technology
The impat of corona vinusupon the technologies had been immense and radical
the ixage of technology an important element for every business oreanization, Many in nature. It had me
sub svxtems of the onganization had aligned themself with internet different systems a
onder to run the business operations. and other types of latest technolÛg

5.2 Ethics and Conduct. Importtant Like Water

QI0 Defne Ethicsand explain the primary sources of

Answer
Ethlcs.
Definitions of Ethics
The ethics have been defined diferently by different authors. Some of the definitions of ethics are as
follows,
1. R. Wayne Mondy defines, "ethics is the discipline dealing with
or with moral duty and obligation". what is good and bad or right and os
Keith Davis and associates define ethics as a set of
rules that define right and wrong conduv
3
According to Shea, ethics are the principles of conduct governing an
"standards of behaviour". individual or protession ad
Primary Sources of Ethics
The two Americans and ethics scholars George and John Stever have identifed
ethics as represented in the figure below, six primary sources of

The legal system

Codes of conduct
Religion

Pemáry soce
of ics

Generic inheritance
Philosophical system

Cultural experience|
Figure: Primary Sources of Ethics
1. The Legal System
The law represents the society's ethical standards. It provides the knowledge about
our life. Thus, it should not be utilized for the purpose of expressing society' ethical causes in
s ethical preferences.
SIA PUBLISHERS AND DISTRIBUTORS PVT. LTD.
 Module-5: ETHICS AND INTEGRITY K125
Religion
2.
The three great religions oftheworld are Judaism Chrietinnitv and Islam The business people belonging
that
to these religions have a strong faith in ethical principles/standards provided by religion. They believe on
the ethical teaching can be applied in business.
religious
persons build their ethics
based
religion. The ethical rule book for Christians is Bible, for theManyMuslims
business
it is the Kuran and for Jews it is Torah.
Similarly, for Hindus it is Bhagvat Gita.

3. Philosophical System
The pattern of business behavior is influenced by the philosophical system prevailing in the country. It is
observed thata particular philosophy such as epicurianism influences a specific type of class or perSon. However,
there exist few businesses which are also influenced by current philosophical consciousness/system.

4 Cultural Experience
The customs, standards and rules that act as the appronriate guidelines and are transmitted from generation
to generation are referred to as "stainers". The various norms of the society shape the individual values.
5 Genetic Inheritance

In modern era, the socio-biologists have plenty of evidence and arguments to represent the development
of traits such as cooperation and alteration influenced by the evolutionary forces of natural selection.
Codes of Conduct
Code of Conduct' or 'Ethical Conduct' is a written document consisting of policies, procedures and
standards of a particular organization. It tells about the behaviours which are acceptable and unacceptable
within the organization. Code of conduct is beneficial not only to employees but also to all the stakeholders.
hensures healthy social relationships between both internal and external customers.
Code of conduct or ethical conduct restrict organization and its stakeholders from the following,

Misrepresentation
Cheating
Malpractices
Bribery.
effectively
In other words, it facilitates organization members to discharge their duties and responsibilities
of ethics is the heart and
and guides them to face gray areas and doubtful situations of the organization. Code
behaviour among the members
Soul of a company that facilitates in establishing moral standards and decent
of organization.
such as,
Codes of conduct are primarily classified into three categories
la) Company Codes
conduct.
These include highly generalised, brief, expressed bread expectations regarding appropriate
(b) Company Operating Policies
Under this, there are ethical dimensions that act as guide for employees and protect them from the
complaints,
unethical practices that occr outside the company. 1hese policies also include customer
a guide to conduct.
niring and other related decisions which inturn serve as
(c) Code of Ethics
industry association
Ihe code of ethics are introduced by professional and
Example: Affirmative ethical principles ofthe American Institute of certified public accountants. Today,
business communities are more ooncemed about ethics. Howeverthe use of these codes have not yet resolved.
Warning Xerox/Photocopying of this book is a CRIMINAL act. Anyone found guilty is LIABLE to face LEGAL Proceedings.
 be
to
considered
proved

is
which

Daeieisns
are
decision
decisions
frhieat
e Any
tiesof also The
C h e r e e t e r i s

others d e c i s i o n

Pigure helpful
to u n e t h i c a l
framework

c h o u l d
he considered
as or
format
large
thersis
ethtce

to at standard efhics.
to
society

rrtated

hut not of have a b u s i n e s s

ecte welfare

doesn 't of
Thr lead to and it importance
thes concept
when
ethica universal and
need
have a
desn Y
o b j e c i v e s ,

Fthsy
obout
the
briefly
Dcum
e4
Ethics immorality.

follows,

are as
A n w e

and
B u s i n e s s

of ethics
standard.

set a
morality

and to
O b j e c t h v e s

business

of person
regarding

of a
obyectives

The
a s s e s s m e n t

conduct
good conducting
an
determine norms.
To behaviour
by behaviour.
and e m p l o y e r s .
standards
human of
To
analyze
standards
and
norms
basis of
achieved
behaviour
of the
develop
moral
behaviour on the the ideal
To regarding

judgement on human r e c o m m e n d a t i o n s

Tomake behaviourand
make
conduct.
moral human
Tosuggest attitude
regarding

opinion on
To give an
Ethics reasons,
Business
following
Need for
because of the
Business ethics
are essential helps
Society functioning
the its
Operation of
Business within
component society of a society as
1
most significant acceptance by the
important and the prerequisite for
gaining
Business acts as an sanction is a
diversification,
Social either expansion or
ofthesociety. Ifbusiness undergoes
in improving the welfare
organization can think ofits survival.
societal needs, organizations are able
to
without which no number of customers. By serving the
more
then it is able to attract public.
create good image in the minds of
Business is Required to Exist on Ethical Grounds
2 For Long-term Success,
For achieving the long-term success, business needs to be ethical and socially responsible. For th
survival of business, mere generation of profit isn't enough as it also requires to take appropriate actions f
improving the standards of the individuals and society at large.
3. Business should Operate as Responsible Corporate Citizens
Business ethics act as the driving forces for the society which
development. Thus, the narrow scope and restricted goals need to beare responsible for bringing its econom
avoided.
dbSIA PUBLISHERS AND
DISTRIBUTORS PVT. LTD.
 129)
Module-5: ETHICS AND INTEGRITY
Importance of Business Ethics

The following points highlight the importance/advantages of business ethics,

conduct and the functionng
1. Business ethics deal with the application of ethical rules to improve the
of the business.
are capable of bringing drastic
2. Business ethics aren't diferent from the general set of ethics however they
improvement in business. Example, if the ethical rule of the
society states that dishonesty is unethical
who is dishonest towards any other member
and immoral in any form of business, then any employee
(customers, peers, creditors, stockholders or competitors) are said to have behaved in an
of the society
unethical and immoral manner.
responsibilities ethically and socially by causing less
harm
3. Ethics help the business to discharge its
ethical philosophy of "do no harm".
the society. Every business is required to follow an
and
are able to protect themselves from the wrong
4. By complying with the ethical principles, firms
others.
unethical behaviour, efforts of competitors and
Applicationof ethics in business helps the entrepreneur to
improve their morale and productivity. This
5.
with dignity and integrity.
would be achieved only when employees are treated
belongingness and protection when they tend to work in an ethical
6. Employees develop a sense of
environment.

complying with legal and ethical rules.

7. Employers can save billions of dollars by
employees, taxpayees but also to society.
8. Doingthe right thing matters not to employers,

5.2.I Importance of Ethics

Importance of ethics In organization an In varlous business dlsciplines like HRM.
os DlscUss the Marketing.
Important Like Water
Business Research and

Answer :
Organization
mortance of Ethicsin
 136 LEADERSHIP AND MANAGEMENT SKILL8
5.2.4 Creating a Harmonious life
Q22 What do you meon by harmonteus IMe? How on individual can create harmonious life?
Anwer
Harmonious Lte
Harmonious ife refers to the ability to handle different life situations calmlyand be content in every
situation Some life situations are happy and joyful (such as birth, marriage etc) whereas other life situations can
h texting and chalenging (such as job loss, rejections, death of aloved one,corona virus etc). Aharmonious
person ts the one who would act and react to alltype of life situations in a meaningful and mature manner.
Tipsof Creoting Harmonious Lite
Any individual person can create harmonious life by the use of the following tips,
1. Show Grottude
In order to lead a happy and harmonious life, one should show gratitude
for
provided us One should be grateful for being bon and for all the different tynes everything tnat ou as
of relationships that he
maintains
2. Celebrate Lite
It order to be harmonious, an individual person
passion For example, we can lead harmonious life by should celebrate life and all the various life events with
getting up early in the morning and take a deep breatn
and say.
"I am thankful to the almighty for keeping
me alive. It is a great day ahead".
3. Eiectively Communicate
In order to lead a harmonious life, an
with everyone he or she interacts with. individual should be able to communicate
effectively and openly
heip us to icad a happy and harmonious Having good, frank and open communication with everyone would
life.
Be Compassionate
Inorder lead a harmonious life,
if your friend is in pain,you one should be compassionate
should towards oneself and others. For example.
speak to him with compassion and
to be compassionate we need to help to reduce his pain. Further, for
be non-judgemental while us
5. Stay Positive dealing with others.
In order be
harmonious in our life, we need to remain
a symphony ofdifferent events, some are good, some positive in every situation of our life.
However we should always maintain a are memorable, some are Our ife i
positive worth
attitude towards our life and future. forgetting and so on.
6. Know Your Goal
An individual should
aware about what he or she clearly know his goals in life, to lead a harmonious life. Any
wants in life is bound to be
and live a good life, one
should be aware of the life unhappy, restless and as content in person who is not
goals. life. To
7. Respect Others be happy
In order to lead a
respect himself.
harmonious life, an individual should
be respectful towards
others and
should also