1. Morality & Rationality in Organizations
PGDM

2. Organization Culture
Forms basis of rules, procedures and protocol of psychological and behavioral guides
Three main elements
Basic values, attitudes and beliefs of the organization
Organizational goals, policies, structures and strategies which are shaped by these basic values, attitudes and beliefs
Organizational way of doing things

3. Organizational Values
Found in mission statements, code of ethics
State what organization stands for and describe the ethical perspective of organization leaders
Desired Values of a Business Organization
Fairness
Harmony
Cooperation
Continuous improvement
Courtesy
Humility
Adjustment
Gratitude
Assimilation

4. Types of Organization Holistic Balanced Manipulative Ethical Concern
High
Holistic
Balanced
Ethical
Concern
Manipulative
Exploitative
Economic concern
Low
High

5. Corporate Code of Ethics
Ethical codes are statements of norms and beliefs of an organization and ways in which organizational leaders want others to think

6. Need to formulate Codes Of Ethics
Shaping Ethical Behavior
Self-Regulation
Improving Self Image
To provide Inner Strength
Avoid conflict of Interest
To be socially responsible
Comply with law and govt. guidelines
Establish better corporate Culture
Safeguard Propriety information
Avoid Insider Trading

7. Implementing Code of Ethics
Management Involvement and Supervision
Constant consciousness of these codes
Stressing code values during Training
Recognition for conduct exemplifying desired values and standards
Ombudsmen or other designated persons assigned for this purpose
Periodic auditing to assure compliance
Well defined and fair enforcement procedures
Thorough concentration on high risk jobs in terms of violation of code values and standards

8. Critical Elements in Implementation
Clarity
Commitment of Top Management
Quality Policy
Customer Care
Building Systems
Communication
Human Resource Policies
Employee Training
Ethics Workshops

9. Ethics workshops An overview of company’s code of ethics
Discussion of several case that illustrate the code
Discussion of some cases that involve dilemmas not covered by code
Explanation of any assistance that company provides when faced with a dilemma
Discussion of factors that employees believe impede ethical behavior in their departments

10. Stages of Ethical Consciousness in Business
First Stage
Law of Jungle: business Decisions are driven by “might is right”
Business ills are common at this stage
Second Stage
Anything for Profit: believe “anything goes as long as one does not get caught by the law”
Bribery to government, tax evasion etc are common
Third Stage
Profit maximizing in short term: Believe that “good business is good ethics”- to maximize profits within constraints of law

11. Stages of Ethical Consciousness in Business
Fourth Stage
Profit maximizing in Long term: Shift in focus from business to ethics- “sound ethics is good business” in long run. Here firms create post of ethics officer to supervise ethical aspect of business
Fifth Stage
Stakeholder concept- Companies concentrate on social and economic mission
Focus on philanthropy
Focus is to create mutual relationships between companies and society

12. Stages of Ethical Consciousness in Business
Sixth Stage
Corporate Citizenship: Higher level of ethical consciousness
Belief that business can be healthy only if society around it is healthy and no other institution including government has resources to bring this transformation except Business Organizations
Entrepreneurs seek to achieve social objectives such as promoting community health, employing handicapped people, etc