UNIT I

Ethics is very significant in the world of business. It is the study of morally appropriate
behaviour and decisions, and examining what should be done. Ethics helps to mould and shape
human behaviour. It aids employees to perform their roles.
However, ethics cannot be instilled unless we ‘practice what we preach’. Otherwise, the effect of
preaching will last only as long as a house of cards.

Corporate social responsibility (CSR), on the other hand, is the process by which businesses
negotiate their role in the society. The two terms—ethics and CSR—are intertwined. In fact, in
many firms, ethics and CSR are interlinked. In some cases, CSR is also considered to be a
guarantee of ethical behaviour.

CSR has now become a global issue and has gained prominence in the language and strategy of
every business. Today, the image of an organization is judged by the CSR activities that it
performs. Governments and many international organizations are increasingly encouraging CSR
and forming CSR partnerships.

Ethics – Definition and Characteristics

“Ethics is the science of judging specifically human ends and the relationship of means to those
ends. In some way it is also the art of controlling means so that they will serve human ends.” —
Thomas Garret

‘‘Ethics’ is the discipline that examines one’s moral standard or moral standards of society. It
asks how those standards apply to our life and whether these standards are reasonable or
unreasonable — that is, whether these are supported by good reason or poor one.” — Manuel G.
Velasquez

“Ethics refer to a set of moral principles which should play a very significant role in guiding the
conduct of managers and employees in the operation of any enterprise.” — Dale S. Beach

“Ethics is that discipline which deals with what is good and bad and also deal with moral duty
and obligation. Ethics are set of moral principles or values.” — Carol Buchholtz

“Ethics is a conception of right and wrong conduct. Ethics tell us when our behaviour is moral
and when it is moral. Ethics deal with fundamental human relationship how we think and behave
towards others and how we want them to think and behave towards us.” — Post, Frederick, and
Lawlrence
“Ethics are formalised principles derived from social value. These are moral principle which
originate from social value and represent rules for moral behaviour and conduct of individuals or
groups thereof carrying on business.” — Webster’s Directory

These definitions reveal the following characteristics of ethics:

(i) Ethics is a set of moral standards and values acceptable in a society. It is relevant in the
context of a society only.
(ii) Ethics guides human conduct or behaviour. If any member of the society behaves contrary to
the norms and customs, society disapproves it. Moral principles serve as a guide for personal and
professional conduct. Ethics checks people from taking decisions and actions which are harmful
to society.
There are three main theories of ethics. First, the utilitarian theory suggests that actions become
right or wrong on the basis of their consequence. Second, the theory of rights holds that all
people have certain basic rights. Third, the theory of justice demands that actions must be fair
and equitable.
(iii) Ethical principles are universal in nature. These prescribe obligations and virtues for
everybody in a society. Ethics is important not only in business and politics but in every human
endeavour.
(iv) Ethical standards differ from society to society. What is considered ethical behaviour in one
society might be considered unethical in another. For example, abortion and artificial birth
control is a taboo in most of the Islamic countries and catholic Christian communities. But these
practices are fully ethical in China, Russia, Japan and many other countries. Similarly, euthanasia
(mercy killing) is permitted in some countries but is strictly unethical in most countries.
(v) Ethics is normative or prescriptive in nature. It deals not with what is but what ought to be. It
does not rest on feelings of approval or disapproval but on principles. For example, it may be
unpleasant to fire an employee but morality may require it.
(vi) Ethical norms might not be legally binding. But these are more powerful than law because
these have the sanction of society. When a person’s behaviour is inconsistent with the prevailing
values and norms, it is called unethical. Ethics serves as a guide to law by highlighting its short
comings.
(vii) Ethics relates to the behaviour of individuals and groups. The ethical norms do not apply to
the behaviour of animals, birds, and insects. Only human beings have the capacity to guide and
regulate their behaviour.
(viii) Ethics are not hard and fast rules. They are an expression of a society’s attitudes and
beliefs. There is an element of discretion as a person has the option to adopt ethical norms.
Ethics may differ from place-to-place and time-to-time.
(ix) There exist no sharp boundaries between ethical and non-ethical. Therefore, people often
face ethical dilemmas wherein a clear cut choice is very difficult.
(x) Ethics aims at perfection in human conduct. It guides law makers in framing proper laws to
regulate the behaviour of all citizens. Existing norms may contain valuable insights but ethics
sets out to critics and test them in terms of ultimate norms.
(xi) The concepts of equity and justice are implicit in ethics. Fair and equitable treatment to all is
its primary aim.
(xii) Ethics and morality are interrelated but not synonymous. In the words of Rogene A.
Buchollz “Ethics deals with the formalisations of ethical principles in the abstract or the
resolution of concrete ethical problems facing individuals in their daily life. Morality on the
other hand generally refers to the tradition of belief that have involved over years. concerning
right and wrong conduct, so that morality has its roots in belief of a society while ethics aim at
formulating the principles to justify human behaviour.”

According to Clearance C. Walton, “morality is the standards than an individual or group has
about what is right and wrong good and evil.”

Business ethics refers to the moral principles and values the govern the behavior of a person or
group. Ethics helps us in deciding what is good or bad, moral or immoral, fair or unfair in
conduct and decision-making.

Definition of Business Ethics

According to John Donaldson__“ Business ethics, in short, can be defined as the systematic

study of ethical matters about the business, industry or related activities, institutions, and beliefs.
Business ethics is the systematic handling of values in business and industry”.

According to Mackenzie__ “Ethics is the study of what is right or good in human conduct” or

the “science of the ideal involved in human life”.

According to Webster__ “Ethics is the discipline dealing with that which is good and bad and
with moral duty and obligations”.

Elements of Business Ethics

1. Values: Values are the moral beliefs held by an individual, an organization, and a society.
Values represent moral convictions and are relatively permanent. For example, a company may
charge reasonable prices due to its value systems despite its monopoly position in the industry.

2. Rights: Rights are the claims of the individual or organization. For example, every citizen of
India enjoys certain rights under the country’s constitution.

3. Duties: Duties are the obligations of a person or an organization. For example, every citizen
has the duty to follow the country’s Law.
Sources of Business Ethic

1. Religion: Religion is the oldest source of ethical inspiration. Every religion gives an

expression of what is wrong and right in business and other walks of life. The Principle of
reciprocity towards one’s fellow beings is found in all religions. Great religions preach the
necessity for an orderly social system and emphasize social responsibility to contribute to the
general welfare. With these fundamentals, every religion creates its own code of conduct.

2. Culture: When we talk about culture we typically refer to the pattern of development

reflected in a society’s pattern of knowledge, ideology, values, laws, social norms, and
day-to-day rituals. Depending upon the pattern and stage of development, culture differs from
society to society. Moreover, culture is passed from generation to generation. Culture facilitates
the generation of commitment to something larger than one’s individual self-interest. Culture
also serves as a sense-making and control mechanism that guides and shapes the attitudes and
behavior of people. Managers have to run an industrial enterprise on the cutting edge of cultural
experience. The tension that their actions create makes the business ethically more complex.

3. Law: The legal system of any country guides human behavior in society. Whatever, ethics the
law defines are binding on the society. Society expects the business to abide by the law.
Although it is expected that every business should be law-abiding, seldom do the businesses
adhere to the rules and regulations. Lawbreaking in business is common. E.g: Tax evasion,
hoarding, adulteration, poor quality & high priced products, environmental pollution, etc.

Need and Importance of Business Ethics

1. Protection of Society: Ethics can protect society in a better way than even the legal system of
the country.

2. Ethics helps in maintaining quality: An ethical company will strive to deliver goods and
services of high quality to their customers even in times when the demand is higher than supply.

3. Ethics lead to long-term gains. A company that values ethics believes in small, but long-term
benefits rather than big, but short-term returns.

4. Ethics in the business allows for healthy competition. It is common to find two or more
companies that offer similar services and goods. A company characterized with ethical behavior
will not engage in malpractices such as spreading false information about the other company or
lowering their prices. Instead, they will allow the customers to choose where they like.

5. Ethics increases business profits. The decrease in risks and costs means that the output is
likely to be higher than the input hence the company makes a profit.
6. Ethics create customer loyalty. A reputation build on good ethics helps create a positive
image in the marketplace. This, in turn, makes customers trust your products and services. They
also pass information to their friends and family, hence, creating more customers for you.

7. Ethics enhance partnerships. Partnerships in the business world are very crucial. They help
expand your marketplace and improve business relations. To get a good partner(s), your
reputation must be built on a strong business ethics foundation.

Values can be defined as those things that are valued by someone. In other words, values are
what is considered ‘important‘ by an individual or an organization. Examples include courage,
honesty, freedom, innovation etc.

Value = Degree of Importance of Something

Value denotes the degree of importance of something (or even an action).

Values help in determining what actions are best to do.

Values are ‘beliefs’ about ‘what is important’

Values are the beliefs of an individual or a social group about what is held important. That
motivate people to act one way or another. “Equal rights for all”, “Merit above all else”, “Dignity
of labour” etc are representatives of values.

Values have a major influence on a person’s behaviour and attitude.

Values (What is Important?) vs Ethics (What is Right?)

Values determine what is important.

Ethics determine what is right.

Values are ideals of someone (or a group) about what is good or bad (or desirable or
undesirable).

Ethics is all about reasoning how to do the right action. (Don’t miss our article on
the dimensions of ethics)

Values motivate, while morals and ethics constrain.

The conflict between Values and Ethics

Generally, people are predisposed to adopt the values that they are raised with. People also tend
to believe that those values are “right” because they are the values of their particular culture.
For example, if making money is a value cherished by a society (most societies cherish that
value!), and if the society is not that bothered about how that money is made, that can lead to
unethical practices.

Ethical decision-making often involves weighing values against each other and choosing which
values to elevate.

A conflict between Values: Value ‘A’ vs Value ‘B’

Conflicts can also result when people have different values, leading to a clash of preferences and
priorities.

Can you think of an example?

What if a person values honesty as his core ideal, while the other person values efficiency as the
priority? Is there a chance of conflict?

Values vary among Individuals and Cultures, and Time

Just like morals, values also vary among individuals and across cultures and time.

For example, for some people, their nation’s flag may represent a sacred value. But for others,
the flag may just be a piece of cloth.

Types of values
We know that honesty, goodness, humility etc values. They form a group of values called Moral
Values. There are other types of values as well – like Genious, Beauty, Power etc. However,
moral values are rated highest among all natural values.

Values can be classified as:

● Spiritiual Values
● Moral Values
● Social Values
● Intellectual Values
● Economic Values
● Poliitcal Values etc
Personal Values vs Social Values
Personal Values – Important for Individual well being. Examples of personal values –
self-respect, comfortable life, freedom etc.

Social Values – Important for other people’s well being. Examples of social values – equality,
social justice, national security, world peace etc.

Note: A coordinated and balanced pursuit of both self-serving and other serving values will lead
to a positive and fulfilling life.

Lessons from the lives and teachings of great leaders, reformers and administrators

We are fortunate to have many great leaders, reformers, and administrators who cherished noble
values and ethics. They not only lived an ethical life but also taught many human values.

Let’s have a quick look at the lessons from the lives of eminent persons. We shall deal with each
of them in detail in the next posts.
 ● Mahatma Gandhi: What he valued – Simplicity, Minimalism, Satyagraha, Sarvodaya,
Secularism, Ahimsa, Non-Violence, Truth, Forgiveness, Self-Sufficiency, Dignity of labour
etc.
● Jawaharlal Nehru: What he valued – democracy, institution building, consensus building,
socialism, secularism, self-determination, internationalism etc.
● Nelson Mandela: What he valued – service, dignity, self-belief, equality of the human race,
freedom, fairness, justice,  etc.
● Abraham Lincoln: What he valued – humanism, equality of the human race, integrity,
idealism, honesty, freedom etc.
● Martin Luther King Jr: What he valued – self-belief, equality of the human race etc.
● Raja Rammohan Roy: What he valued – social equality, equality of the human race,
women empowerment, scientific thinking etc.
● Swami Vivekananda: What he valued – self-belief, equality of the human race, patriotism,
compassion etc.
● B R Ambedkar: What he valued – self-belief, equality of the human race, radical thinking,
compassion etc.
● Mother Teresa – What she valued – compassion, altruism, helpfulness, kindness,
cleanliness, determination.
● Verghese Kurien – What he valued – self-belief, co-operative societies, entrepreneurship,
innovation, farmer welfare etc.
● M.S. Swaminathan – What he valued – sustainable development, green revolution, poverty
alleviation, farmer welfare etc.
● Sam Pitroda – What he valued – self-belief, dreaming big, entrepreneurship, policy
making, innovation etc.
● E. Sreedharan: What he valued – punctuality, self-belief, integrity, high-quality standards
etc.

Now, we are living in an age where people don’t have the right values or ethics. Family, society,
and educational institutions can play a great role in inculcating values to the new generation.

Role of Family in inculcating values

The family is the earliest and without question the most influential agent of
socialization. Socialization via the family goes from cradle to grave. The father, mother, siblings,
and grandparents become the immediate agents of socialization.

Children pick up behavioural traits from all those who are in his/her immediate
environment. Values are imbibed by children by observing what parents do (and not just what
parents say).
The power of the family is strongest during infancy and toddler years. During the teenage, the
influence of peer group and media usually overshadows the power of the family. However, the
family returns as a predominant agent of socialization during the adult years with the roles of
marital partner and parents becoming prominent.

There can be differences in values between family to family based on their socio-economic
statuses.

Role of Educational Institutions in inculcating values

Schools and Colleges are important agencies in the process of socialization and thus can help a
lot in inculcating values.

● School is the first place where the individual values get compared with the larger value
system of the society.
● The curriculum imparts the values of accepted behaviour.
● A school student learns not only from the official curriculum but also from the social
curriculum of peer groups. Values are also imbibed from the hidden curriculum (Eg: don’t
talk while a teacher is taking the class).
● This is the place where one learns the values of punctuality and discipline.
● Values education is an explicit attempt to teach about values. There are five basic
approaches to values education: inculcation, moral development, analysis, action
learning, and values clarification.

Role of Society in inculcating values

Society can also inculcate a lot of values in people. The elements of the society who have great
influence in people include:

● Friends
● Neighbours
● Media
● Films
● Religion
● Leaders
● Government
Difference Between Code of Ethics and Code of Conduct
Code of Ethics and Code of Conduct are the standards that a group must adhere to, so as to
remain the member of the organisation. The primary difference between code of ethics and code
of conduct is that code of ethics is a set of principles which influence the judgement while
the code of conduct is a set of guidelines that influence employee’s actions.

These statements are formally addressed and need to be accepted by the members when they join
the organisation for the first time. These help the business enterprise in regulating the business
efficiently. While code of conduct is something that states organized values, code of ethics is
used to observe ethical norms and gives a foundation to rules of conduct. Check out the article to
know more on these two topics.

Content: Code of Ethics Vs Code of Conduct

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion
5. Comparison Chart

BASIS FOR
CODE OF ETHICS CODE OF CONDUCT
COMPARISON

Meaning An aspirational document, A directional document

issued by the board of containing specific
directors containing core practices and behavior, that
ethical values, principles are followed or restricted
and ideals of the under the organization is
organization is Code of Code of Conduct.
Ethics.

Nature General Specific

Scope Wide Narrow

Governs Decision making Actions

BASIS FOR
CODE OF ETHICS CODE OF CONDUCT
COMPARISON

Length Short Comparatively longer

Disclosure Publicly disclosed. Employees only.

Focused on Values or principles Compliance and rules

Definition of Code of Ethics

Code of Ethics is a document issued by the top-level management, which consist of a set of
principles, designed to guide the members of the organisation to carry out business honestly and
with integrity. It describes the core values of the organisation that guides the decision-making. It
provides ethical standards which are to be followed by the members. It sets out general
guidelines to assist individuals to apply their judgment, concerning a suitable behaviour in a
given situation.

Code of ethics helps members in understanding what is right or wrong. The codes are disclosed
publicly and hence addressed to the interested parties to know the way the company does
business. Violation of the code of ethics by any member may result in termination or dismissal
from the organisation.

Definition of Code of Conduct

Code of Conduct is a document that expresses the practices and behaviour of a person, required
or restricted as a condition for becoming a member of the organisation or profession. The code
sets out the actual rules, so it lays down the do’s and doesn’t s of an employee. The members are
responsible for its adherence and held accountable for its violation.

Every organisation has its code of conduct issued by the Board of Directors (BOD) that
determines the social norms, regulations and responsibilities. It is in the form of written
statement;

that contains rules for behaviour, which are supposed to be followed by the employees of the
company. The document directs and guides the employees in various matters.
Key Differences Between Code of Ethics and Code of Conduct

The major differences between code of ethics and code of conduct are described in the given
below points:

1. Code of Ethics is an aspirational document, issued by the board of directors containing

core ethical values, principles and ideals of the organisation. Code of Conduct is a
directional document containing specific practices and behaviour, that are followed or
restricted under the organisation.
2. Code of Ethics is general is general in nature, whereas code of conduct is specific.
3. Code of Conduct are originated from the code of ethics, and it converts the rules into
specific guidelines, that must be followed by the members of the organisation.
4. Lengthwise, code of ethics is a shorter document than a code of conduct.
5. Code of Ethics regulates the judgment of the organisation while a code of conduct
regulates the actions.
6. Code of Ethics is publicly available, i.e. anyone can access it. Conversely, Code of
Conduct is addressed to employees only.
7. Code of Ethics focuses on values or principles. On the other hand, Code of Conduct is
focused on compliance and rules.

Conclusion

Code of Conduct is actually extracted from the Code of Ethics. Therefore, the latter concept is
wider than the former. Moreover, these codes are beneficial for businesses of any size and nature
as the codes lays down direction which is helpful for employees, to behave in a particular
manner and also making a public image of ethical behaviour.

Ethical Issues in Business

An ethical issue is a circumstance in which a moral conflict arises in the workplace; thus, it is a
situation in which a moral standard is being challenged.
Ethical issues in the workplace occur when a moral dilemma emerges and must be resolved
within a corporation. Many areas of a company's general operating standards can be affected by
ethical issues. Although each ethical dilemma is unique, there are a few commonalities. In every
ethical dilemma, right and incorrect choices exist. When faced with an ethical issue, one must
choose between doing the right thing and doing the wrong thing. There may be no right or
incorrect answer when faced with a common challenge or issue. A person may suffer harm as a
result of a wrong decision in an ethical quandary. Even if the harm is limited to physical
discomfort, it might also include emotional distress. Ethical dilemmas also frequently deal with
legal issues. Ethical behavior is an important component of obeying the law.
A high ethical standard might lead to increased costs for a corporation. This is because ethically
sourced products tend to be more expensive. As a result, the corporation may fear a loss in
market share and profit margins due to the policy. Individuals and businesses can both suffer
from unethical conduct. Moreover, behavior that harms an organization's reputation, morale, or
production can lead to significant fines and financial losses.
Business ethics raise the bar for acceptable conduct above and beyond what the government may
mandate. Companies use business ethics to maintain the trust of key stakeholders and the
integrity of their employees. This leads to better decision-making and higher morale in the
workplace.

Ethical Issues in the Workplace

As part of developing a workplace code of ethics, the company must first identify potential
ethical issues that should be addressed, such as developing a sense of professionalism. One
should make an effort to be friendly and upbeat, ensure not to spread rumors, and be considerate
of others. Moreover, it is advisable to maintain a reputation of honesty, fairness, and consistency.
This is the best way to build trust with others. Another way to manifest ethical issues in the
workplace is through a person's level of dedication. A company can boost its total productivity
by ensuring that employees are punctual and motivated.
Most ethical businesses aim to develop their employees' moral courage, beliefs, and efficacy.
There are a number of workplace elements that must be present in order to maximize
productivity. Unfortunately, workplaces still have ethical problems. A company may also face
legal repercussions if it does not take these threats seriously. It is critical that a company
identifies and addresses these issues early and effectively.

Examples of Ethical Issues in the Workplace

There is a multitude of examples of ethical issues in the workplace. Obeying the company's
Codes of Conduct is an example of appropriate workplace behavior. As part of their employment
contract, employees may be asked to sign a variety of documents, including the company's rules
and regulations. Employees could also receive a manual for reference purposes. The most
common rules include inappropriate clothes, disrespectful language, and being on time.
Employees who are excited to begin a new position may fail to study company policies and
procedures, which could cause issues in the future. Effective communication is an ethical issue to
minimize misunderstandings when dealing with workplace concerns. In addition, good
professional relationships assist in building teamwork among employees and aid in the growth of
each employee's personal and professional career. Developing professional relationships with
coworkers and colleagues outside of the workplace can also have a positive impact on
productivity.
Types of Ethical Issues
There are five main types of ethical issues in the workplace:

● Unethical accounting — In order to make themselves appear more profitable than they
are, publicly-traded corporations may engage in unethical accounting practices.
● Harassment — It creates a hostile work environment and leads to early departures for
employees.
● Health and safety — Work-related stress can result from a lack of consideration for
workers' safety and physical injuries.
● Technology, privacy, and social media — Using social media in an improper manner can
have serious consequences for privacy and security, both online and offline. Outside of
the job, it is easy to abuse power. Managers have the ability to enrich themselves by
manipulating reports, taking credit for others' work, wasting money, and accepting gifts
from vendors and clients.
● Discrimination — Discrimination is defined as any activity that results in the treatment of
a worker in a less favorable manner.

Accounting

The temptation to manipulate statistics, sins of omission, information access, and the
confidentiality of personal information are only some of the ethical dilemmas that accountants
have to deal with. Clients and employers should know that they can rely on accountants with
financial information. If an individual wants to work as an accountant, that person will need to be
trustworthy and dependable. This portrays accountants as trustworthy and reliable. For example,
a company may purposefully overstate its assets while concealing its debt or other liabilities to
obtain financing or sell a business.

Harassment

Harassment can take many forms, including unwelcome behavior and policies based on an
employee's race, national origin, gender identity, or sex such as pregnancy and motherhood, age,
physical or mental handicap, or genetic information. Abhorrent humor and insulting or degrading
remarks, name-calling, insulting or degrading words, offensive imagery or items, bullying,
physical assault, threats, and intimidation are some of the characteristics of harassment.
Examples of harassment in the workplace include the reality of tolerating an offensive behavior
making it a requirement for work or the behavior is severe or widespread enough to warrant
termination.

Health and Safety

Health and safety ethics state that all employers are morally obligated to provide their employees
with a safe and healthy workplace. The government punishes those who disregard safety
standards, but workers are only afforded a limited right to decline hazardous work. The most
significant health and ethical safety issues are confidentiality of medical records, discrimination
against minorities and women, and "blaming the victim" versus decreasing exposures.

Technology, Privacy and Social Media

Using company’s internet connection to browse the web may seem harmless. The fact is most
companies monitor their internet connections and track their workers browsing activity.
Typically, this is indicated on employment contract and can impact performance reviews. 

This is legal as it indicates misuse of the business’ technology and resources. Furthermore, it
shows that working hours are being exploited, costing the business time and money. Sometimes
companies misuse sensitive data acquired from employees and customers. If this information
falls into the wrong hands, it could lead to detrimental ethical issues in business. 

We’ve often heard of data breaches and hacking. Unfortunately, even established companies
have been subject to such attacks, with customer and employee information getting leaked
online. Without proper security measures and restrictions on access, data and technology could
result in legal, financial, and reputational damage. 

How can your business avoid or resolve data privacy concerns? 

As an employer, ensure you highlight all surveillance and usage restrictions on employment
contracts. Encourage open communication about monitoring company communications and
browsing history. It could be considered unethical access if you fail to do so; it could be regarded
as unethical access, leading to lawsuits and financial damage. 

Employees should always read through their contracts thoroughly for what monitoring the
company carries out. For example, some businesses track all worker activity on devices like
phones and laptops given to the worker. 

Your IT department or specialist should be able to implement a cybersecurity plan to prevent

data breaches. For example, if you store personal information, constantly monitor access to
ensure confidential data doesn’t reach the wrong hands. In addition, always carry out background
checks before hiring people as theft for monetary purposes or better jobs is common. 

Employee Social Media 

Social media is usually personal and reflects out-of-office activities. But sometimes how your
employees behave on public social platforms can reflect poorly on the business. In
addition, ethical issues in business often result in difficulties in deciding what action can be
taken regarding social media conduct. 

Legally, companies have the right to take disciplinary action for social media etiquette. If
employee behavior costs the business financial or reputation loss, firing them would be justified.
However, this can lead to unwanted miscommunication and conflict. So, how do you avoid
social media dilemmas? 

How can your business avoid or resolve social media concerns? 

To prevent social media conflicts, the best solution is to set guidelines and policies in advance.
For example, highlight what is and isn’t appropriate behavior for employees on their social
media. Also, explain to them how they represent the business and how their actions affect it.

Furthermore, training and regular digital reminders of being appropriate and conducting yourself
online should be encouraged. This will not only result in better social media practices but also
increase accountability.

Discrimination

The sudden rise in racial discrimination cases across the world poses a problem in the workplace
too. According to the Equal Employment Opportunity Commission, discrimination exists in
terms of disability, gender, age, race, religion, and origin among several factors. 

One of the most significant ethical dilemma examples is that the lack of diversity and equal
treatment is illegal in most countries. Still, the race and gender pay gap suggest these laws are
often overlooked. Another type of growing discrimination is toward caregivers who have to take
care of family members.

On average, 61% of employees in America reported seeing or experiencing discrimination. To be

more productive and avoid ethical and legal dilemmas at work, it is essential to offer equal
opportunities for everyone and foster an inclusive, diverse workforce free of toxic values. 

How can your business avoid or resolve discrimination? 

As a business owner, you should invest in educating and encouraging a positive work culture that
could fight discrimination. Furthermore, make sure everyone understands the disciplinary
consequences of misbehaving.
Consciously hiring people of different backgrounds, nationalities, and characteristics ensures you
have a diverse workforce. This further encourages representation and helps prevent
discrimination. Your business could set an excellent example for equal opportunities within your
industry – with more perspectives and opinions.

When implementing business rules, consider factors like age, race, religion, and culture. For
example, limitations involving how to dress at work could be discriminatory on religious or
racial grounds. As a business owner, try to be more aware and flexible towards employee needs.

Business Ethics – Theories of Business Ethics: Teleological and Deontological Theories

The theories of business ethics can be divided into two categories:
1. Teleological theories, and
2. Deontological theories.
1. Teleological Theories:
The term ‘teleological’ is derived from the Greek word ‘telos’ which means an end. According to
teleological theories the Tightness of an action is determined solely by its consequences rather
than by any feature of the action itself. Actions that result in greatest possible balance of good or
evil are considered ethical. Thus, teleological theories are based on the concept of goodness.
Now the question is which is good and what is evil. In classical utilitarianism, pleasure is
regarded good, and pain is considered evil. In broader terms, goodness is human well-being.
Bentham and Mill explained the doctrine of utilitarianism:
i. The Principle of Utility:
Jeremy Bentham (1748-1832) explains this principle as follows:
“By the principle of utility is meant that principle which approves or disapproves of every action
whatsoever, according to the tendency which it appear to have to augment or diminish the
happiness of the party whose interest is in question – or, what is the same thing in other words, to
promote or to oppose that happiness.”
Thus, the consequences of an action are measured in terms of the pleasure and pain caused to
different individuals. Bentham suggested a procedure called hedonistic calculus for this purpose.
Bentham’s theory is criticised for two reasons. First, it is not always possible to measure in
quantities the pleasure and pain caused by an action. Second, pleasure does not constitute human
well-being. Even pigs are capable of pleasure and his theory is criticised as a ‘pig philosophy’ fit
only for swine.
According to critics, one absurd consequence of Bentham’s principle is that it would be better to
live the life of a satisfied pig than that of a dissatisfied human being such as Socrates. For human
beings, friendship and aesthetic enjoyment are as good as pleasure.
ii. The Principle of Utilitarianism:
John Stuart Mill (1806-1873) modified the principle of utility by recognising that pleasures differ
in their quality which is an important as the quantity of pleasure. Mill concluded, “It is better to
be a human being dissatisfied than a pig satisfied; better to be Socrates dissatisfied than a fool
satisfied. And if the fools, or the pig, are of a different opinion, it is because they know only their
side of the question.”
Thus, there are two forms of utilitarianism:
(a) Action utilitarianism under which an action is right if and only if it produces the greatest
balance of pleasure over pain for everyone. For example, telling a lie or breaking a promise is
right if its consequences are better than those of any alternative course of action. Thus, classical
utilitarianism does not require observing rules such as “Tell the Truth.”
(b) Rule Utilitarianism under which an action is right if and only if it confirms to generally
accepted rules and produces the greatest balance of pleasure over pain.
Act utilitarianism is simple and easily understood. But rule utilitarianism is morally more sound
and does not require calculating the consequences of each action.
The principle of utilitarianism consists of the following elements:
(1) Consequentialism – The Tightness of any action depends solely on its consequences.
(2) Hedonism – Pleasure alone is good.
(3) Maximisation – A right action is one that creates greatest amount of net pleasure.
(4) Universalism – Everyone’s consequences are alike.
Advantages of Teleological Theories:
These are as follows:
(i) Teleological theories are consistent with the ordinary moral reasoning. Utilitarianism why
telling the truth, keeping promise, and other acts which provide some benefit are morally
relevant.
(ii) Teleological theories provide an objective and precise method for moral decision-making. A
decision maker can choose the right course of action by calculating and comparing the
consequences of different alternatives.
(iii) Economists assume that people seek to maximise their utility or welfare. The economic
theory is based on the ethical theory of utilitarianism.
Limitations of Teleological Theories:
They are as under:
(i) Teleological theories do not consider the basic obligations. Parents have obligations to their
children and they must provide for their children even when the money could be more beneficial
for orphans.
(ii) It is not possible to measure and compare the goodness/badness of various actions.
(iii) Teleological theories disregard rights and justice. For example, the right of free speech
entitles us to speak freely but restrictions on this right might lead to better consequences.
Similarly, discrimination violates the basic principle of justice. But preferential rights are often
given to women and minorities.
2. Deontological Theories:
The term ‘deontological’ is derived from the Greek word ‘deon’ which means duty. Duty or
obligation is the fundamental concept in deontological theories.
According to deontological theories certain actions are right not due to some benefit to self or
others but due to their basic nature or the rules underlying them. For example, bribery by its very
nature is wrong irrespective of its consequences.
Similarly, the Golden Rule “Do unto others as you want them do unto you” appeals to human
dignity and respect for others.
W.D. Ross, the 20th century Britisher philosopher has given the following moral rules:
(i) Duties of Fidelity — to keep promises, both explicit and implicit, and to tell the truth.
(ii) Duties of Reparation — to compensate people for injury that we have wrongfully inflicted on
them.
(iii) Duties of Gratitude — to return favours that others do for us.
(iv) Duties of Justice — to ensure that goods are distributed according to people’s merits.
(v) Duties of Beneficence — to do whatever we can to improve the condition of others.
(vi) Duties of Self-improvement — to improve our own condition with respect to virtue and
intelligence.
(vii) Duties of Non-maleficence — to avoid injury to other.
Thus, deontological theories refute the argument that consequences determine what we ought to
do. Actions are right or wrong not because of their consequences but because of our duty or
obligation.
Deontological theories have the following merits:
(i) Deontological theories make sense in cases in which consequences are irrelevant. It appears
more sensible to care for relations than for consequences. For example, it is the duty of a
manufacturer to honour the warranty on a defective product even when the cost of doing so is
more than the benefits.
(ii) Another merit of deontological theories is that they consider the role of motives in evaluating
actions. For example, two people give equal amounts to charity. Here their benefit is the same.
But the action of the person who denoted due to genuine concern for poor is better than that of
the person who donated to impress others. Thus, the motive with which actions are done
determine their Tightness.
Deontological theories suffer from the following weaknesses:
(i) Deontological theories fail to provide a precise criteria to understand our moral obligations
and to resolve moral conflict.
(ii) Ross gave no order of priority among his rules and when these rules are in conflict there is no
guide. For example, telling the truth or keeping a promise may cause harm to someone.

Business Ethics – Business Ethics and Profits

Frequently the impression of most people is that ethics and profits are mutually opposed to one
another, and that if a company is ethical, it can forget about making profits. People also
frequently seem to believe that a profitable company must necessarily be unethical. This is like
saying that a company can make profits only through unethical means. Nothing can be more
further from the truth.
There are examples galore, from the pages of history, where not only have ethical companies
made profits, but more importantly, it is only ethical companies which discharged its social
responsibilities, that have survived competition and turbulent changes through the years and have
contributed to Social Welfare and have continued to flourished undiminished.
‘Profit is a dirty word’, said Jawaharlal Nehru, in the 1950’s while referring to the public sector
companies. Even private companies making profits were viewed with disdain by the public.
Their dealings were suspect in the eyes of the upright moral citizens of that time. This was
mainly because of the distorted view of business that society had during that time.
With the wide spread interest in business activities since then, with the introduction of business
and management education all over the world, and with the rapid widening of the market place
and the astronomical growth of consumerism worldwide, the value of profit has been given its
deserved place.
Today, not only is profit not a dirty word, in fact, every company is expected to justify its
existence in the marketplace, through the profit it generates. It has been felt that any company
which cannot make profits even for its own operations has no right to exist in the marketplace
and should be wiped out.
A sick and loss making company is a liability and a burden to society-it cannot discharge its
responsibilities to the society, it cannot meet its welfare commitment to its employees, indeed it
cannot even compensate its workforce for their efforts, it cannot generate revenue for its
shareholders, it cannot meet consumer demands adequately and cannot do all those things that a
healthy responsible organisation is required and expected to do. Hence, profit is today viewed as
a measure of the success of the company and its justification for sustained existence, growth and
diversification.
In fact, considered from all angles, it is unethical, not to make profit. It is unethical, for a
company, to make losses. Because, a company which cannot make profits and makes losses,
misutilises scarce national resources cannot pay back creditors, does not make wealth for its
shareholders, make huge liabilities, upsets the economy, promotes inefficiency and most
importantly, cannot, at any cost discharge its social responsibility, meet its welfare commitments
and jeopardises the future of its employees.
Such a loss-making company becomes a nuisance and a burden to the economy and has no right
to exists in the marketplace. Moreover, it has no business to force its employees into economic
insecurity, which is highly unethical.
Thus, instead of profits being contradictory to ethics, business ethics dictates that the first
responsibility of business is to remain profitable and generate revenue for the shareholders and
the society. Rather, it is unethical, not to make profits.
Hence, the first and foremost ethical obligation of every business is to make profits for its
shareholders, for its employees, for its creditors and most importantly, for itself, so that it can
discharge its social responsibilities and welfare commitments. But, how much profits to make,
the means and methods of making it, and at what cost-that is the ethical question.
Business Ethics – 10 Major Determinants of Business Ethics
The major determinants of business ethics may be listed thus:
Determinant # 1. Family, School and Religion:
The formation of ethics begins early in life. As a child one learns about what is good and bad
from parents. Through their reinforcing actions, (rewarding good behaviours), parents inculcate
high or low ethical standards among children. Schools and Religion also greatly influence the
formation of ethical values (such as truthfulness, honesty, sincerity, tolerance, etc.) at an early
age.
Determinant # 2. Peers, Colleagues and Superiors:
In the company of good friends, the child realises the importance of high ethical standards in life.
If he wishes to make friends with peers who steal, smoke and use drugs, he will probably accept
those behaviours as ethical. Colleagues in an organisation, too, shape the value system of an
individual. He adopts the attitudes, beliefs and values of the group to which he belongs.
Likewise, most people yield to pressure from superiors in doing things that many consider
unethical otherwise.
Determinant # 3. Experiences in Life:
Experiences in life teach many lessons. These could be bitter or sweet, depending on the ability
of a person to reach goals. If a person is not given a ‘pat on the back’ for good behaviour while
others earn rewards for bad behaviour, the person will probably alter both, ethical standards and
behavioural responses, in future.
Determinant # 4. Values and Morals:
People who value material possessions in life may not have strong ethical standards regarding
behaviours that lead to accumulation of personal wealth. On the other hand, people who place a
premium on quality of life will probably have strong ethics while competing with others for
various things in life.
Determinant # 5. Threatening Situations:
An employee threatened with losing a permanent job may resort to unethical acts to save his job.
To meet pre-determined targets, many Bank managers sanction loans to individuals with
practically no creditworthiness. A housewife may practically beat a thief to death, when
threatened with the prospect of losing her ornaments or child. Situations like these, force people
to change their ethics and respond in an unexpected manner.
Determinant # 6. Organisational Demands:
There is growing research evidence to show that managers at top, middle and first level have
compromised their personal principles to meet an organisational demand. Corporate goals are
paramount and exert considerable pressure on executives to change their ethical views.
Determinant # 7. Legislation:
Laws are generally passed in response to social demands. Factors, such as low ethical standards,
corruption in public life, absence of social responsibility, exploitation, sexual harassment, etc.,
often force people to demand legislative protection. A practice can be made illegal, if society
views it as being unethical. For example, if contributions to political parties by companies are
being viewed as excessive and unethical, the practice can be banned.
Determinant # 8. Government Rules and Regulations:
Government regulation regarding product safety, working condition, statutory warnings (on
cigarettes and other harmful products), etc., are all supported by laws. These offer guidelines to
managers in determining what are the acceptable standards and practices.
Determinant # 9. Industry and Company Ethical Codes of Behaviour:
Many times specific guidelines are provided to managers by the company’s ethical codes of
behaviour. One important question in such cases is whether individuals within the organisations
are really governed by the code of ethics or provide only lip service to the guidelines.
Determinant # 10. Social Pressures:
Social forces and pressures have considerable influence on ethics in business. Society, in the
recent past, has demonstrated how a special status can be conferred on backward castes;
boycotted products, and severe action to prevent the construction of nuclear power plants. Such
actions by different groups in society may, in fact, force management to alter certain decisions by
taking a broader view of the environment and the needs of society.

Business Ethics – Advantages of Managing Ethics in Workplaces

(i) Significant improvement to society- By applying business ethics, many social evils can be
eliminated like child labour, harassment to employees etc.
(ii) Cultivate strong team work and productivity- Business ethics helps in building openness,
integrity and a sense of oneness amongst all employees. Employees become motivated as they
feel strong alignment between their values and those of organisation.
(iii) Support employee growth- It supports the employees in facing the entire situation whether
good or bad.
(iv) Insurance policy – It ensures the employees that all the policies are legal and all the
employees are treated equally in the organisation.
(v) Avoid penal action- Ethical problems if detected at earlier stage helps in avoiding penal
action and lower fines for the organisation.
(vi) Helps in quality management, strategic planning and diversity management.

What is ethical management?

Ethical management is the process of accounting for morals while overseeing an organization.
This practice allows managers to prioritize the well-being of employees, customers and the
community while considering the company's bottom line. By adhering to the company's core
values and making challenging decisions on a case-by-case basis, an ethical management team
promotes principles like honesty and fairness.
Like other moral deliberations, ethical management can have gray areas where the
decision-making process is more complicated than right versus wrong. For instance, consider a
manager who discovers a manufacturing plant taking shortcuts to make a product. The shortcuts
resulted in reduced labor costs, but the manager realizes that the company's increased profits are
likely only temporary. By reporting the manufacturing plant, the manager maintains product
standards and ensures overall customer satisfaction.

Benefits of ethical management in business

Ethical management in business can:

Promote productivity

Employees under ethical management teams are often more productive. They may replicate the
moral behavior of their leaders, encouraging them to work harder and promote the company's
values. Ethical management can also facilitate positive relationships between employees and
boost overall morale.

Create a positive reputation for the company

A company's reputation has a significant impact on whether customers and vendors decide to
patronize it. Ethical organizations tend to obtain positive press that helps them build essential
partnerships with the public and other organizations in the industry. By maintaining its
reputation, an organization can increase its sales and maintain mutually beneficial relationships

Facilitate community well-being

While profits are important, it's just as essential for a company to facilitate community
well-being. This social responsibility allows it to build a good reputation and create a lasting
legacy. Ethical companies tend to champion causes that concern their audiences, whether directly
or indirectly. For instance, even if a company doesn't donate to environmental organizations, it
might choose to partner with an eco-friendly supplier to reduce waste.

Examples of ethical management

Here are some examples of ethical management:

Example 1

Two employees who practice different religions get into an argument over their beliefs. Their
manager's religious beliefs align closely with one of the employees', but the manager is careful
not to express any bias. They inform each employee of the importance of respecting others'
beliefs and help them develop their communication skills so that they can continue working on
the same team.

Example 2

A company develops a new product and researches different vendors to source raw materials.
The first vendor produces environmentally-friendly raw materials. The second vendor doesn't,
but its materials are a little cheaper. After consulting with their colleagues, an executive decides
the extra cost of the first vendor is worth maintaining the company's commitment to the
environment.

Example 3

A news story exposing an employee for unethical behavior goes viral. The company remains
transparent about the problem by addressing it in a press conference and updating the public on
the progress of the investigation. By apologizing for any harm and enacting steps to prevent
future incidents, the company retains the public's trust.

How to implement an ethical management plan

Here's how to implement an ethical management plan:

1. Identify the organization's values

Identifying the organization's values can give you a foundation to use for an ethical management
plan. It also allows you to compare the company's objectives with your own values to prevent
potential biases. Consider consulting the company's website and asking executives about the
company's overarching values. If the values are unclear, you might suggest a campaign to clearly
define the company's mission.

2. Hire the right employees

Organizations can foster their values through a positive culture, but it's ideal to start with a good
foundation. Hiring employees whose values align with the organization's can make it easier to
establish a legacy of honesty and responsibility. During the recruiting and interviewing process,
try to highlight the company's values to attract and retain compatible candidates.

3. Promote a positive company culture

Management teams emulate the company's values and encourage others to do the same via a
positive company culture. It's ideal to start promoting relevant values during orientation, as it
welcomes employees and encourages them to practice good behavior. You can also conduct
diversity training, schedule team-building activities and distribute rewards to those who embody
the company's values.

4. Emphasize respect, transparency and procedural fairness

Approaches vary based on the organization's values, but most management teams put employees,
customers and society above the bottom line. They can achieve this goal by respecting
employees and encouraging everyone to do the same. Ethical management teams practice
procedural fairness and remain transparent about their actions to guarantee impartial treatment.

5. Practice ethical behavior outside of work

Management teams set an example for their employees and represent the company even when
they're off the clock, making it important for you to practice ethical behavior outside of work.
Your actions can positively reflect on the company and demonstrate your ability to be consistent.
Practicing ethical behavior outside of work is as simple as using social media appropriately and
keeping your personal and professional relationships separate. If you want to be more ambitious
with your ethical behavior outside of work, consider volunteering for a cause that aligns with the
organization's values.

Ethical principles in business

Here is a list of basic ethical principles in business you can apply in the workplace.

Creation of ethical practices

Companies must do more than hope for their organization to operate ethically. Leaders should
develop a defined code of ethics for their business practices and share this with all employees.
Consider using a consulting firm to help craft a thorough and specific set of ethical practices.
Explaining exactly what is expected of employees reduces stress and confusion.

Implementation of ethical practices

Beyond writing a code of ethics, companies must include protocols to implement and enforce
these policies. Consider regular training on the company's practices that incorporates scenarios
that team members can discuss and work through. You can also create a recognition program and
incentives for those who display high ethical standards.

Compliance

The most basic level of ethical business practices is compliance with any laws related to your
business. From international trading regulations, state tax codes and local building ordinances,
companies must ensure all practices adhere to these guidelines. Often, legal regulations can serve
as the beginning framework for an organization's code of ethics. By starting at the macro level,
companies can use these industry regulations as an outline to devise more specific policies and
procedures.

Honesty

Honesty requires a commitment to telling the truth, regardless of the consequences. Honesty
encourages trust among colleagues and between a business and the public.

Everyone in an organization's sphere benefits from honesty. Employees want to work for honest
leaders, business owners want honest employees, and clients want to do business with honest
partners. This means sharing favorable and unfavorable news with the same candor and
directness, leading to a reputation of reliability.

Integrity

Having integrity means adhering to a set of moral standards at all times, even if no one is aware
of your choices. Others notice when you live and work with integrity, which leads to respect and
confidence in your decisions.

Loyalty

Remaining faithful to business partners, coworkers and clients demonstrates your commitment.
When you prove your alliance and honor these agreements even when profits may suffer, you
develop lasting partnerships and a firm foundation for future success. This can extend to
maintaining relationships with suppliers, sharing a promotion opportunity with coworkers in
your department or honoring financial commitments to the community.

Fairness

Being fair in the workplace involves treating everyone the same, from assistants and interns to
the CEO. Fairness also means avoiding preferential treatment and encouraging everyone to share
their thoughts and ideas. The workplace should promote inclusion and equity in-house as well as
to clients and customers. Fairness in the workplace creates a unified environment where
employees feel comfortable, which increases engagement.

Fairness should encompass the following areas:

● Hiring new employees

● Promoting team members
● Delegating tasks
 ● Reviewing performance

Respect

Treating others with respect is a cornerstone of business ethics. Each team member deserves a
voice and the ability to share opinions and ideas in a supportive environment. Workplaces that
promote individual respect can experience enhanced collaboration and teamwork among
employees.

Showing respect includes:

● Listening to clients and coworkers with an open mind

● Showing kindness and courtesy
● Remaining polite even during disagreements
● Refraining from personal attacks
● Monitoring your nonverbal communication, including body language and facial
expressions

Trustworthiness

Trustworthy workers keep their word to customers, colleagues and business partners. Honoring
commitments proves that others can count on you, making you a trusted employee and coworker.
Trustworthiness also involves being dependable and meeting your obligations.

You can demonstrate trustworthiness at work by:

● Arriving on time
● Meeting deadlines
● Showing up to scheduled meetings
● Demonstrating consistency in words and actions

Responsibility

Being responsible in the workplace means taking ownership of your tasks. Responsibility
includes thinking about how your actions can affect those around you and making choices that
consider other people. Employers and employees depend on responsible workers to make the
best decisions without requiring constant supervision. Being responsible demonstrates maturity,
capability and discipline.

Accountability
Accountability is an important way for employees to be held to a company's ethical standards. If
the majority of team members support a business's ethical code, they will expect others to behave
in the same fashion. This creates a culture of high moral expectations that encourages all team
members to act ethically in areas such as:

● Managing time
● Using company resources
● Producing an appropriate quantity and quality of work

A business can also be held accountable by the public for its actions. With numerous ways to
connect with companies—email, online reviews, social media—consumers can easily
communicate their support or opposition to a company's actions. This accountability encourages
businesses to act efficiently and ethically.

Compassion

People who display compassion genuinely care about the well-being of others. In business,
compassion can work at the highest level as organizations become involved in charitable causes
and interpersonal interactions between colleagues. Compassion involves taking the time to
understand the thoughts and feelings of another person.

People want to work in an environment where they feel valued and cared for, and people want to
do business with companies that display compassion towards consumers and the community.
Consider these examples of compassion in the workplace:

● A restaurant holds a fundraiser for a local child in the hospital

● A group of employees organizes a meal delivery schedule for a coworker who has lost a
loved one
● Company leaders schedule a day off for workers after a particularly busy season

Social consciousness

As the world becomes increasingly connected, social issues receive more and more attention.
Consumers look for businesses that use their platform to bring awareness to and support change
on social issues. Socially conscious business practices include:

● Following fair trade practices

● Working with business partners and suppliers that source ethically grown products
● Paying fair wages

Customers prefer to do business with companies that take these extra steps to make a positive
impact on society.
Environmental consciousness

The global climate crisis remains a focus for business owners, employees and clients. Ethical
business practices include making choices to limit or reduce your negative impact on the
environment, such as:

● Reducing carbon emissions from transportation and factories

● Limiting trash and waste production
● Encouraging energy-saving practices
● Creating more sustainable, cost-saving strategies

Transparency

Creating transparency in the workplace is one way to promote ethical operations. Whether
granting access to colleagues or customers, sharing your actions is an added layer of
accountability that helps workers adhere to ethical guidelines. With the technology available to
make your practices available, consumers expect this level of authenticity.

Some companies may offer financial transparency to investors or employees to show how the
company runs. Transparency can also refer to organizational structure, criteria for hiring and
firing and addressing mistakes when they occur. For example, if a business must raise prices, it
can communicate the reasons directly and honestly to consumers. This openness is another way
to develop trust among employees and customers.

What is integrity? 

Integrity is the characteristic of being honest and having strong moral principles. Employers look
for employees with integrity because it is one of the fundamental values that determines personal
character and career performance. Integrity is the foundation for building trust in effective
interpersonal relationships, and for any organization to operate effectively, there should be trust
among coworkers.

People with integrity typically adhere to a code of ethics in which they do or say things when
they believe it’s the right time to do so. A person with integrity places a high value on
relationships with customers, coworkers and stakeholders, and is usually dependable and
trustworthy.

How to demonstrate integrity in the workplace

Here are some common ways you can demonstrate integrity in the workplace:
 1. Arrive on time and ready to work. Let managers and coworkers know if you might be
late so they can prepare for your absence. This way, you can build your integrity by being
dependable and trustworthy.
2. Show respect for others at all times, even if you disagree with them. You can maintain
your own opinions, but still listen and consider what they say and respond with respect. If
you show respect for others, they will show respect for you.  
3. Hold yourself accountable for your actions. If you make a mistake, take responsibility
and explain how you plan to fix it. This is another way to demonstrate your respect for
others. 
4. Follow and enforce company policies. Many company policies help employees work
well together, fostering better relationships. Following standard company policies can
assist in your ability to excel within the workplace.
5. Complete your work to the best of your abilities. You should always try to complete
your work correctly and on time to build your dependability. If you need help finishing a
task, ask another coworker or your manager for help. 
6. Respect personal and company property. Treat the property of others as if it were your
own, and that includes company property. Return items that belong to others and avoid
the use of other personal or company property for personal use.

Examples of integrity in the workplace

People with integrity attract others because they are trustworthy and dependable. They are honest
and honorable, even when there are no observable consequences. These are the people that
employers look for and are very desirable as hires. It can be easier to cultivate by following some
of the examples to be more successful in your career:

● Building trust
● Increasing respect
● Showing dependability
● Acknowledging coworkers
● Making effective decisions
● Forming relationships
● Taking responsibility
● Increasing cooperation
● Leading others

Building trust

John realizes that some of the equipment needed for a display booth relating to a work event will
not arrive on time because he had entered the wrong date on the delivery order. He could easily
accuse the delivery company of the mistake as similar incidents had happened before. However,
John goes to work and arranges an expedited delivery that would only be a few hours late. He
later informs his supervisor of the mistakes with a sincere apology. The supervisor expresses
appreciation for John’s efforts.

Increasing respect

Trudy has been seeking a promotion for months and readily steps forward when the department
head asks for volunteers for a new marketing campaign. The assignment involves more duties
Trudy can handle along with her regular workload. Trudy is still determined and brainstorms
solutions with more experienced colleagues. She works with help from Joe in another
department, and they get the project completed on time. Trudy gives credit to Joe for helping her,
increasing the respect of the department head and Joe. 

Showing dependability

Marci realizes her car battery is dead and will not make it to work on time. She immediately calls
her supervisor to inform them of the issue and tells them she’ll try to get to work as soon as
possible. Since it’s the busy season at work, Marci knows her team members need her. She has
the next day off, so she plans to replace her car battery then. Then she reviews the bus schedule
and chooses the appropriate route to get to work.

She arrives to work 30 minutes late and stays 30 minutes after her shift to complete some
unfinished tasks. Marci’s coworkers and supervisor are grateful for her efforts to come to work,
even after a challenge.  

Acknowledging coworkers

Naomi’s manager, Kevin, praises her for a project that Naomi did not complete. Naomi could
easily accept the praise, but tells Kevin that it was Carol who designed the forms, and she should
be recognized for her creativity. With her honesty, Naomi shows she is a person with integrity,
impressing her manager. Carol also received the praise she deserved for her work, increasing her
respect for Naomi. 

Making effective decisions

After writing code for a new application for six months, Doug realized that he would be late with
deliverables. Instead of adding open-source modules that could complete the job but wouldn’t
offer the same customization, Doug involves the rest of the team in the process. Through the
assistance of the brainstorming session, Doug is able to complete the application complete with
the needed components. He remembers to give credit to the rest of his team, too. 

Forming relationships
In the marketing department, Michael and Ellen needed to make a decision regarding the
allocation of funds for the next quarter. Michael was of the opinion that they spend a large chunk
of the budget on a major marketing campaign at the beginning of the quarter, while Ellen
believed there would not be enough time to plan and execute the campaign. Eventually, Ellen
and Michael agreed to postpone Michael’s campaign to the following quarter when they would
have ample time for planning and executing.

Taking responsibility

Joey’s team missed a critical deadline for an important deliverable. Joey was upset and worried
but assumed the responsibility for missing the delivery instead of assigning blame. At the next
team meeting, they addressed all the problems and made revisions to the policies and procedures
to avoid the same issues in the future. Though the team was grateful for Joey taking
responsibility, they knew they needed to try harder to meet the next deadline. 

Increasing cooperation

Andre and Sophie, the supervisor, meet for a biweekly discussion regarding work progress.
Andre reveals that he is struggling with several issues that include a heavy workload and having
to attend several daily meetings. Sophie introduces a new process where meetings last no more
than 30 minutes and follow a strict agenda. She also implements group conferencing so that team
members can communicate easier and faster. 

Leading others

Josephine is a project manager for a construction company. She has been working with a client
that wants to build a large condominium that would take at least a year which could provide
employees with more pay in that amount of time. The employees are excited to start work, but
the client is slow in agreeing to a contract. They begin asking Josephine when they can expect to
begin working. 

Instead of making promises, she’s unsure she could meet to satisfy her team members, she gives
a straightforward answer, explaining a realistic timeline. Her employees are understandably
disappointed, but they respect her for giving a truthful response.

Spritual Core of Leadership

Spiritual leadership involves intrinsically motivating and inspiring workers through hope/faith in
a vision of service to key stakeholders and a corporate culture based on  the values of altruistic
love to produce a highly motivated, committed and productive workforce. The purpose of
spiritual leadership is to tap into the fundamental needs of both leaders and followers for spiritual
well-being through calling (life has meaning and makes a difference) and membership
(belonging); to create vision and value congruence across the individual, empowered team, and
organization levels; and, ultimately, to foster higher levels of employee well-being,
organizational commitment, financial performance, and social responsibility – the Triple Bottom
Line.

What is a Learning Organization?

Spiritual leadership is a model for organizational development/transformation designed to create

an intrinsically motivated learning organization that maximizes the triple bottom line. A learning
organization has the skills to create, acquire, and transfer knowledge, while modifying behavior
to reflect new knowledge and insights. In learning organizations employees are empowered to
achieve a clearly articulated organizational vision. Quality products and services that exceed
expectations also characterize learning organizations. This new learning organizational paradigm
is radically different from what has gone before: it is customer/client-obsessed, team-based, flat
(in structure), flexible (in capabilities), diverse (in personnel make-up) and networked (working
with many other organizations in a symbiotic relationship) in alliances with suppliers,
customers/clients and even competitors.

The employees of learning organizations are characterized by being open and generous
risk-takers who are capable of thinking in teams and motivating others to succeed. Furthermore,
they must be able to abandon old alliances and establish new ones, viewing honest mistakes as
necessary to learning and celebrating the noble effort, while exhibiting a “do-what-it-takes”
attitude versus a “not-my-job” attitude. Committed leaders at all levels act as coaches who
constantly strive to listen, experiment, improve, innovate, and create new leaders. The major
challenge for the learning organization is developing, leading, motivating, organizing, and
retaining people to be committed to the organization’s vision, goals, and culture.

Take a minute and see if your company is a learning organization by answering the following
questions:

1. Do you have an emotional bond with your stakeholders? Companies that prosper

over the long term exude genuine affection for their customers and employees by
providing a feeling of membership so that individuals feel understood and
appreciated.
2. Are you a fun place to work? The most productive companies tend to be the most
playful. You don’t have to be downbeat to be disciplined. People are committed to
an organization where they feel like part of the family and are highly regarded by
leadership.
3. Are you built to change? The only certainty in business today is that change must
become a core capability in organizations that prosper over the long term. The best
 organizations may look to the past as a source of inspiration, but they don’t allow it
to become an excuse for a lack of change. Instead, they pursue future productivity
through the implementation of innovative strategies.
4. Do you embrace the value of values? Today, more than ever, stakeholders demand
to know; What values do you stand for? The company with the clearest sense of
purpose wins. The heart of an organization’s success must include altruistic love – a
sense of wholeness, harmony, and well being embraced through care, concern, and
appreciation of both self and others.
5. Are you as disciplined as you are creative? In successful organizations there is no
contradiction between creativity and execution. Indeed, the most innovative
companies tend to be the most disciplined through a clear and compelling vision.
6. Do you use technology to change expectations and reshape your business? The
Internet has become the most powerful tool for business experimentation ever. It
transforms the learning 7
7. organization – how people work together and how organizations interact with
customers. There is no hope/faith in the economics of an organization disrupted by
the fear-led, bureaucratic, hierarchy that can’t keep pace in this chaotic
Internet-driven environment.
8. Have you built a company of leaders? The organizations with the most confident
and committed leaders, deepest in the ranks – Win! A learning organizations creates
empowered teams and gives them the resources and freedom to maneuver outside
the established hierarchy. It pushes decision-making authority deep into the ranks,
providing employees with a sense of purpose and belonging. In doing so everyone
has the opportunity to lead to the point that the distinction between leader and
follower becomes blurred.

What is Workplace Spiritualty and how does it fit in with religion?

A person’s spirit is the vital principle or animating force traditionally believed to be the
intangible, life-affirming force within all human beings. It is a state of intimate relationship with
the inner self of higher values and morality as well as recognition of the truth of the inner nature
of others. Today many individuals are struggling with what their spirituality means for their work
since this is where they spend vast majority of their waking hours. The office is now where more
and more people eat, exercise, date, drop their kids, and even nap. Many naturally look to their
organizations as a communal center because they lack the continuity and connection found in
other settings. Moreover, recent polls have found that American managers and leaders want a
deeper sense of meaning and fulfillment on the job – even more than they want money and time
off.
A Call for Workplace Spirituality

Because of this, a major change is taking place in the personal and professional lives of leaders
as many of them more deeply integrate their spirituality and their work. Many agree that this
integration is leading to very positive changes in their relationships and their effectiveness. There
is also evidence that workplace spirituality programs not only lead to beneficial personal
outcomes such as increased job satisfaction, and commitment, but that they also deliver
improved productivity and reduce absenteeism and turnover. Employees who work for
organizations they consider to be spiritual are less fearful, more ethical, and more committed.
And, there is mounting evidence that a more humane workplace is more productive, flexible and
creative. Most importantly for organizational effectiveness is the emerging research that that
workplace spirituality could be the ultimate competitive advantage. Because of this, there is an
emerging and accelerating call for spirituality in the workplace.

Workplace spirituality is not about religion or conversion, or about accepting a specific belief
system. Spirituality at work is about leaders and followers who understand themselves as
spiritual beings who have a sense of calling that provides meaning and purpose for their lives. It
is also about membership where people experience a sense of belonging, connectedness to one
another and their workplace community. It begins with the acknowledgement that people have
both an inner and an outer life and that the nourishment of the inner life can produce a more
meaningful and productive outer life that can have beneficial consequences for employee
well-being, corporate responsibility and sustainability, as well as financial performance – The
triple bottom line.

Religion and Spirituality

The respected Dalai Lama, in Ethics for the New Millennium, speaks to the relationship between
spirituality and religion.

Religion I take to be concerned with faith in the claims of one faith tradition or another, an
aspect of which is the acceptance of some form of heaven or nirvana.  Connected with this are
religious teachings or dogma, ritual prayer, and so on.  Spirituality I take to be concerned with
those qualities of the human spirit—such as love and compassion, patience tolerance,
forgiveness, contentment, a sense of responsibility, a sense of harmony—which brings happiness
to both self and others.

Spirituality as manifested through these qualities provides the foundation for most, if not all, of
the world’s spiritual and religious traditions. Both non-denominational spiritual practices and
world religions all are fundamentally based on hope/faith in a vision of love and service of
others. This explains what some people and organizations (e.g., Alcoholics Anonymous) mean
when they claim to be spiritual and not religious. Consequently, spiritual leadership can be
implemented and practiced with or without religious theory, beliefs, and practices. In our work
on leadership we have chosen to use the term spirituality to allow for its application to any
organization interested in implementing workplace spirituality. However, this is in no way meant
to imply that nondenominational or nontheistic spiritual practices are superior to the religious
traditions and their beliefs and practices.

How does the Spiritual Leadership Model work?

Spiritual leadership is an emerging paradigm within the broader context of workplace spirituality
designed to create an intrinsically motivated, learning organization.  Spiritual leadership
comprises the values, attitudes, and behaviors necessary to intrinsically motivate one’s self and
satisfy fundamental needs for spiritual well-being through calling and membership, which
positively influences employee well-being, sustainability and corporate social responsibility, and
financial performance – the Triple Bottom Line.

Essential to spiritual leadership is:

1. Creating a vision wherein leaders and followers experience a sense of calling so that
their lives have purpose, meaning and makes a difference, and
2. Establishing a organizational culture based on the values of altruistic love whereby
leaders and followers have a sense of membership, feel understood and appreciated,
and have genuine care, concern, and appreciation for BOTH self and others.

As shown in the figure below, the source of spiritual leadership is an inner life or spiritual
practice, such as spending time in nature, prayer, religious practice, meditation, reading, yoga, or
writing in a journal. An inner life practice positively influences spiritual leadership through the
development of hope and faith in a transcendent vision of service to key stakeholders that keeps
followers looking forward to the future. Hope/faith in a clear, compelling vision produces a sense
of calling – that part of spiritual well-being that gives one a sense of making a difference and,
therefore, that one’s life has meaning. Spiritual leadership also requires that the organization’s
culture be based on the values of altruistic love. Leaders must model these values through their
attitudes and behavior, which creates a sense of membership – that part of spiritual well-being
that gives one a sense of being understood and appreciated. The dimensions of spiritual
leadership and the process of satisfying spiritual needs then positively influence the key
individual and organizational outcomes that comprise the Triple Bottom Line.