Module-2: Ethics and It's Applications

-Dr. Shweta Patel

Sub Topics: Values, Types and Formation of Values, Values and Behaviour, Business Ethics
and Values, Values of Indian Manager, Ethical Decision Making, Management process and
ethics, Application of ethical issues from Vedas in management, Relevance of ethics and values
in businesses.
Meaning of Ethics:
The word Ethics is derived from the Greek word ‘ethos’ which means character or conduct.
Ethics is also called as moral philosophy or philosophical thinking about morality. This
morality has been further elaborated as action and behaviour which is concerned with ‘good’
or ‘evil’, of traditions, groups or individual.
Applications of Ethics
Ethics is applied in various fields such as:
• Business (Business Ethics) – e.g., treating customers fairly, avoiding false
advertising.
• Medical Ethics – e.g., patient confidentiality, informed consent.
• Legal Ethics – e.g., honesty in representing facts, client confidentiality.
• Environmental Ethics – e.g., corporate responsibility to reduce pollution.
• Technology Ethics – e.g., data privacy, responsible AI use.

Importance of Values And Ethics in Business

Ethics is important not only in business but in all aspects of life because it is the vital part and
the foundation on which the society is build. A business/society that lacks ethical principles is
bound to fail sooner or later. Ethics refers to a code of conduct that guides an individual in
dealing with others.
Business Ethics is a form of applied ethics that examines ethical principles and moral or ethical
problems that can arise in business environment. It deals with issues regarding the moral and
ethical rights, duties and corporate governance between a company and its shareholders,
employees, customers, media, government, suppliers and dealers. Henry Ford said, “Business
that makes noting but money is a poor kind of business”. Ethics is related to all disciplines of
management like accounting information, human resource management, sales and marketing,
production, intellectual property knowledge and skill, international business and economic
system. As said by Joe Paterno once that success without honor is an unseasoned dish. It will
satisfy your hunger, but won’t taste good.
In business world the organization’s culture sets standards for determining the difference
between good or bad, right or wrong, fair or unfair. “It is perfectly possible to make a decent
living without compromising the integrity of the company or the individual, wrote business
executive R. Holland, “Quite apart from the issues of rightness and wrongness, the fact is that
ethical behavior in business serves the individual and the enterprise much better in long run.”,
he added. Some management guru stressed that ethical companies have an advantage over their
competitors. Said Cohen and Greenfield, “Consumers are used to buying products despite how
they feel about the company that sells them. But a valued company earned a kind of customer
loyalty most corporations only dream of because it appeals to its customers more than a
product”. The ethical issues in business have become more complicated because of the global
and diversified nature of many large corporation and because of the complexity of economic,
social, global, natural, political, legal and government regulations and environment, hence the
company must decide whether to adhere to constant ethical principles or to adjust to domestic
standards and culture.
Managers have to remember that leading by example is the first step in fostering a culture of
ethical behavior in the companies as rightly said by Robert Noyce, “If ethics are poor at the
top, that behavior is copied down through the organization”, however the other methods can be
creating a common interest by favorable corporate culture, setting high standards, norms,
framing attitudes for acceptable behavior, making written code of ethics implicable at all levels
from top to bottom, deciding the policies for recruiting, selecting, training, induction,
promotion, monetary / non-monetary motivation, remuneration and retention of employees.
“Price is what you pay. Value is what you get” – Warren Buffet. Thus, a manager should treat
his employees, customers, shareholders, government, media and society in an honest and fair
way by knowing the difference between right or wrong and choosing what is right, this is the
foundation of ethical decision making. REMEMBER: GOOD ETHICS IS GOOD BUSINESS.
Values and ethics in simple words mean principle or code of conduct that govern transactions;
in this case business transaction. These ethics are meant to analyze problems that come up in
day to day course of business operations. Apart from this it also applies to individuals who
work in organizations, their conduct and to the organizations as a whole. We live in an era of
cut throat competition and competition breeds enmity. This enmity reflects in business
operations, code of conduct. Business houses with deeper pockets crush small operators and
markets are monopolised. In such a scenario certain standards are required to govern how
organizations go about their business operations, these standards are called ethics. Business
ethics is a wider term that includes many other sub ethics that are relevant to the respective
field. For example there is marketing ethics for marketing, ethics in HR for Human resource
department and the like. Business ethics in itself is a part of applied ethics; the latter takes care
of ethical questions in the technical, social, legal and business ethics.
Origin of Business Ethics
When we trace the origin of business ethics we start with a period where profit maximization
was seen as the only purpose of existence for a business. There was no consideration
whatsoever for non-economic values, be it the people who worked with organizations or the
society that allowed the business to flourish. It was only in late 1980’s and 1990’s that both
intelligentsia and the academics as well as the corporate began to show interest in the same.
Nowadays almost all organizations lay due emphasis on their responsibilities towards the
society and the nature and they call it by different names like corporate social responsibility,
corporate governance or social responsibility charter.
In India Maruti Suzuki, for example, owned the responsibility of maintain a large number of
parks and ensuring greenery. Hindustan unilever, similarly started the e-shakti initiative for
women in rural villages. Globally also many corporations have bred philanthropists who have
contributed compassion, love for poor and unprivileged. Bill gates of Microsoft and Warren
Buffet of Berkshire Hathaway are known for their philanthropic contributions across globe.
Many organizations, for example, IBM as part of their corporate social responsibility have
taken up the initiative of going green, towards contributing to environmental protection. It is
not that business did not function before the advent of business ethics; but there is a regulation
of kinds now that ensures business and organizations contribute to the society and its well
being. Nowadays business ethics determines the fundamental purpose of existence of a
company in many organizations. There is an ensuing battle between various groups, for
example between those who consider profit or share holder wealth maximization as the main
aim of the company and those who consider value creation as main purpose of the organisation.
SOURCES OF BUSINESS ETHICS

Ethics in general refers to a system of good and bad, moral and immoral, fair and unfair. It is
a code of conduct that is supposed to align behaviors within an organization and the social
framework. But the question that remains is, where and when did business ethics come into
being? Primarily ethics in business is affected by three sources - culture, religion and laws of
the state. It is for this reason we do not have uniform or completely similar standards across
the globe. These three factors exert influences to varying degrees on humans which ultimately
get reflected in the ethics of the organization. For example, ethics followed by Infosys are
different than those followed by Reliance Industries or by Tata group for that matter. Again
ethical procedures vary across geographic boundaries.

Religion- It is one of the oldest foundations of ethical standards. Religion wields varying
influences across various sects of people. It is believed that ethics is a manifestation of the
divine and so it draws a line between the good and the bad in the society. Depending upon the
degree of religious influence we have different sects of people; we have sects, those who are
referred to as orthodox or fundamentalists and those who are called as moderates. Needless to
mention, religion exerts itself to a greater degree among the orthodox and to lesser extent in
case of moderates. Fundamentally however all the religions operate on the principle of
reciprocity towards ones fellow beings!

Culture -Culture is a pattern of behaviors and values that are transferred from one
generation to another, those that are considered as ideal or within the acceptable limits. No
wonder therefore that it is the culture that predominantly determines what is wrong and what
is right. It is the culture that defines certain behavior as acceptable and others as unacceptable.
Human civilization in fact has passed through various cultures, wherein the moral code was
redrafted depending upon the epoch that was. What was immoral or unacceptable in certain
culture became acceptable later on and vice versa. During the early years of human
development where ones who were the strongest were the ones who survived! Violence,
hostility and ferocity were thus the acceptable. Approximately 10,000 year ago when human
civilization entered the settlement phase, hard work, patience and peace were seen as virtues
and the earlier ones were considered otherwise. These values are still pt in practice by the
managers of today. Still further, when human civilization witnessed the industrial revolution,
the ethics of agrarian economy was replaced by the law pertaining to technology, property
rights etc. Ever since a tussle has ensued between the values of the agrarian and the industrial
economy!
Law -Laws are procedures and code of conduct that are laid down by the legal system of the
state. They are meant to guide human behavior within the social fabric. The major problem
with the law is that all the ethical expectations cannot be covered by the law and specially
with ever changing outer environment the law keeps on changing but often fails to keep pace.
In business, complying with the rule of law is taken as ethical behavior, but organizations
often break laws by evading taxes, compromising on quality, service norms etc.

IMPORTANCE OF ETHICS
Most of us would agree that it is ethics in practice that makes sense; just having it carefully
drafted and redrafted in books may not serve the purpose. Of course all of us want businesses
to be fair, clean and beneficial to the society. For that to happen, organizations need to abide
by ethics or rule of law, engage themselves in fair practices and competition; all of which will
benefit the consumer, the society and organization.
Primarily it is the individual, the consumer, the employee or the human social unit of the
society who benefits from ethics. In addition ethics is important because of the following:
1. Satisfying Basic Human Needs: Being fair, honest and ethical is one the basic human
needs. Every employee desires to be such himself and to work for an organization that is fair
and ethical in its practices.
2. Creating Credibility: An organization that is believed to be driven by moral values is
respected in the society even by those who may have no information about the working and
the businesses or an organization. Infosys, for example is perceived as an organization for
good corporate governance and social responsibility initiatives. This perception is held far
and wide even by those who do not even know what business the organization is into.
3. Uniting People and Leadership: An organization driven by values is revered by its
employees also. They are the common thread that brings the employees and the decision
makers on a common platform. This goes a long way in aligning behaviors within the
organization towards achievement of one common goal or mission.
4. Improving Decision Making: A man’s destiny is the sum total of all the decisions that
he/she takes in course of his life. The same holds true for organizations. Decisions are driven
by values. For example an organization that does not value competition will be fierce in its
operations aiming to wipe out its competitors and establish a monopoly in the market.
5. Long Term Gains: Organizations guided by ethics and values are profitable in the long
run, though in the short run they may seem to lose money. Tata group, one of the largest
business conglomerates in India was seen on the verge of decline at the beginning of 1990’s,
which soon turned out to be otherwise. The same company’s Tata NANO car was predicted
as a failure, and failed to do well but the same is picking up fast now.
6. Securing the Society: Often ethics succeeds law in safeguarding the society. The law
machinery is often found acting as a mute spectator, unable to save the society and the
environment. Technology, for example is growing at such a fast pace that the by the time law
comes up with a regulation we have a newer technology with new threats replacing the older
one. Lawyers and public interest litigations may not help a great deal but ethics can. Ethics
tries to create a sense of right and wrong in the organizations and often when the law fails, it
is the ethics that may stop organizations from harming the society or environment.

Values, Types and Formation of Values

What are Values?
Values are fundamental beliefs and ideals that guide individuals or groups in determining what
is important or unimportant to them. They shape how people view and interact with the world,
influencing their behavior, motivations, perceptions, and personality. Serving as a framework,
values help prioritize what matters most and often drive decision-making. Since values differ
from one person to another, they play a crucial role in how individuals engage with the world
around them.
For example, honesty might be a value for one person, leading them to always tell the truth,
while community might be a value for another, emphasizing the importance of working
together and supporting one another. Values can encompass a wide range of concepts, including
fairness, loyalty, respect, and responsibility, among others. These values guide our daily actions
and help us form our personal and social identities.
➢ Values defined as beliefs that guide actions and judgment across a variety of situations.
➢ Values represent basic convictions that a specific mode of conduct is personally or
socially preferable to an opposite mode of conduct. (Businessman is expected to give
true information about his product rather than making false claims) — Rokeach
➢ The word value derived from French word ‘valoir’ means worth, merit, usefulness,
importance of a thing.

Importance of Values
Values play a crucial role in shaping our lives and guiding our actions. Here's
how they help us:
Decision-Making:
Values act as a compass that directs our choices. When faced with decisions, big or small,
values help us determine which path aligns best with what we believe is right and important.
This leads to more consistent and principled decisions.
Example: Imagine you value environmental conservation. When deciding which car to buy,
this value might lead you to choose an electric vehicle over a gasoline-powered one, reflecting
your commitment to reducing your carbon footprint.

Behavior and Consistency:

By adhering to a set of values, we maintain a consistent approach in our behavior. This
consistency helps in building trust and predictability in relationships, whether personal or
professional.
Example: If integrity is a core value for someone, they consistently tell the truth and keep their
promises, regardless of the situation. This behavior builds trust among peers and colleagues.

Sense of Identity:
Values are a key component of our identity. They reflect who we are and what we stand for,
differentiating us from others and helping to define our unique character.
Example: A person who values creativity might pursue a career in the arts and engage in
creative hobbies like painting or writing. These choices reflect and reinforce their identity as a
creative individual, shaping how they see themselves and how others perceive them.

Motivation and Purpose:

Values provide motivation and give us reasons to act in certain ways. They imbue our actions
with purpose and meaning, making our daily tasks and long-term goals feel more significant
and rewarding.
Example: If a teacher values education and lifelong learning, they might feel motivated to
continually update their teaching methods and knowledge. This not only enriches their own life
but also enhances their students' learning experiences, providing a sense of fulfillment.

Conflict Resolution:
Values can help resolve conflicts by providing a framework through which to evaluate the
options and decide on an action that is most in line with what we deem important. This can lead
to fairer outcomes and better handling of interpersonal disputes.
Example: In a workplace dispute where team members have different ideas about a project,
those who value teamwork and collaboration might propose a compromise that incorporates
elements from each idea. This approach respects everyone's contributions and moves the
project forward.

Cultural Understanding and Cooperation:

Shared values can strengthen social bonds and promote cooperation within a community or
organization. Understanding and respecting differing values can also enhance cross-cultural
interactions and reduce conflicts.
Example: In a multicultural office, understanding and respecting diverse values such as respect
for elders in some cultures can improve interactions. For instance, younger employees may
show deference to older colleagues during discussions, fostering a harmonious work
environment.

Stress Management:
When our actions are aligned with our values, we are likely to experience less internal conflict
and stress. Living in accordance with our values creates a sense of stability and satisfaction.
Example: Someone who values family highly might choose a job with flexible hours over a
more demanding, higher-paying job. This decision reduces stress as it aligns with their value
of spending time with family, leading to greater life satisfaction.
Types of Values
Values can be categorized in several ways. One influential classification is by
psychologist Milton Rokeach, who divided values into:

1. Terminal Values
These are end-goals or life-long objectives that individuals strive to achieve.
Terminal Value Description Example in Life
A Comfortable Prosperous life with basic and Owning a home, good income,
Life luxury needs met travel freedom
Equality Equal opportunity for all Supporting gender or caste
equality reforms
Freedom Independence and free choice Choosing your career or life
partner freely
Inner Harmony Peace of mind and spiritual well- Practicing meditation, self-
being reflection
National Protection of the country from Supporting defense reforms or
Security enemies army welfare
True Friendship Deep, meaningful relationships Long-term trustworthy bonds
with friends
Salvation Spiritual fulfillment or liberation Pursuing religious or spiritual
practices

2. Instrumental Values
These are preferred modes of behavior or means to achieve terminal
values.
Instrumental Description Example in Life
Value
Honesty Truthful behavior Not lying on a job resume
Responsibility Dependability and Meeting work deadlines sincerely
accountability
Ambition Goal-oriented and motivated Setting clear career targets
Politeness Courteous interaction Using respectful language with
colleagues
Courage Willingness to take risks Reporting corruption despite fear
Helpfulness Willing to assist others Supporting a colleague with their
task
Self-Control Resisting temptation and Avoiding impulsive reactions in
impulses conflict

3. Other Types of Values

Here’s a consolidated table with additional categories of values relevant to
society, culture, and professions:
Type of Value Definition Examples
Personal Values Individual beliefs guiding daily Loyalty, gratitude, hard
behavior work
Cultural Values Shared beliefs within a Collectivism in India,
culture/society punctuality in Japan
Moral Values Values that define right vs. wrong Compassion, justice, non-
violence
Religious Values Values derived from spiritual or Faith, charity, devotion
religious beliefs
Professional Ethical standards and behaviors Confidentiality in law,
Values expected in a profession neutrality in media
Social Values Promote the well-being of the Secularism, patriotism,
community or nation equality
Political Values Beliefs about governance and Democracy, justice, liberty
society
Universal Human Common to all cultures, based on Truth, love, peace, respect
Values human dignity and rights for life

Examples in an Indian Context

Value Type Indian Example
Terminal Value Inner Harmony – Popular due to spiritual teachings of Gita
Instrumental Value Respect for Elders – Considered essential behavior
Personal Value Hard Work – Valued in the context of education and careers
Cultural Value Joint Family System – Reflects collectivist culture
Moral Value Ahimsa (Non-violence) – Rooted in Jain and Gandhian thought
 Religious Value Seva (Service) in Sikhism
Professional Value Duty and Dharma in public services
Social Value Swachh Bharat Abhiyan – Cleanliness as a civic responsibility

Formation of Values
Values are formed through a complex interplay of individual experiences, cultural influences,
education, and social interactions. The development of personal values begins early in life
and continues to evolve and mature throughout a person’s lifetime. Here are the key processes
and influences in the formation of values:
1. Family Influence
Family is typically the first and most influential source of value formation. Children absorb
the values of their parents and other family members through daily interactions, observation,
and explicit teachings. These may include beliefs about right and wrong, religious values,
work ethics, and attitudes towards various social issues.
2. Cultural and Social Environment
The broader cultural context in which an individual grows up plays a significant role in
shaping their values. This includes the norms, traditions, and values of their community,
ethnic group, or nation. Cultural values are often imparted through stories, rituals, and
community activities, reinforcing certain ideals and expectations.
3. Education
Formal and informal education significantly influence value formation. Schools not only
provide knowledge but also foster the development of social values such as fairness, justice,
respect for authority, and teamwork. The curriculum, the ethos of the educational institution,
and interactions with teachers and peers all contribute to this process.
4. Peer Influence
As individuals grow, especially during adolescence, peers become a critical influence on
value formation. Peer groups can reinforce or challenge family and cultural values, often
pushing individuals towards forming their own set of beliefs and principles.
5. Experiences
Personal experiences, including challenges, successes, and failures, also shape values. For
example, someone who has experienced injustice may place a high value on fairness and
equality. Similarly, positive experiences with diversity can foster values of inclusiveness and
respect for different cultures.
6. Religious and Spiritual Beliefs
Religion and spirituality often provide a comprehensive set of values and ethical guidelines
that individuals may adopt. These can be influential in shaping one’s views on a wide range
of issues from morality to the meaning of life.
7. Media Influence
In the modern world, media is a powerful influencer of values. Television, movies, music,
books, and, increasingly, social media shape perceptions about what is desirable, normal, or
prestigious.
8. Personal Reflection and Growth
As people mature, they reflect on their experiences and teachings, sometimes adopting new
values or re-evaluating old ones. This reflection is often influenced by personal goals,
aspirations, and the desire to live a life that is consistent with one’s deepest beliefs.

Essential for managers: Values are essential for managers in any organisation. Thus, by
considering the absolute necessity for management to work seriously for developing the
trans-cultural human values in managers, the management functions can be performed
in the best manner.
➢ Credibility among stakeholders: It builds up credibility among the stakeholders. Some
individuals directly affect the decisions of the organisation. Stakeholders include
customers, suppliers, employees, etc. Implementation in values such as transparency
can help in integrating the credibility of organisation with the stakeholders.
➢ Promotion of basic human values: Trans-cultural values nurture the basic human
values. A manager knows that his decisions can affect thousands of individuals.
Therefore, there should not be any bias place. One should not think of individual
interests only. The work should be done on the basis of the cooperation with each
other.
➢ Helpful in decision making: It helps in taking effective and accurate decisions. another
point of importance is that Trans-cultural values helps the managers in taking more
effective decisions, the managers are in interest of public, their employees and the
company’s long term good.
➢ Profit earning: With the help of trans-cultural values, companies will earn profits. A
company inspired by trans-cultural values will be profitable one. Value driven
companies are sure to be successful in the long run, though in short run, they many
seem to lose money.
➢ Management credibility with employees: These values establish the credibility with
the employees. Trans-cultural values are supposed to be common language fro
congregating the leadership and its populace under one objective. Organisational
values as perceived by the employees as genuine create a common goals values and
culture. o Clear objectives: These values help in establishment of clear objectives. The
organisation should clarify the objectives of the company so that even a lay man can
understand them. If the objectives are not clear, then the lower management cannot
achieve the objectives efficiently.
➢ Self discipline: Trans-cultural values also inculcate the self-discipline. It is very
important in controlling one’s mind before controlling the mind of others. A manager
should be properly be disciplined and this includes even small gestures like arriving
on time at organisation, optimum use of working hours, and not wasting time.
Management Process:Functions like planning, organizing, staffing,
directing, and controlling.
Integration of Ethics in Management:
Function Ethical Application
Planning Ensuring sustainable and socially responsible goals
Organizing Fair distribution of roles and responsibilities
Staffing Equal opportunity in hiring and promotions
Directing Motivating with honesty, avoiding manipulation
Controlling Transparent performance evaluation, fair disciplinary
action

Application of ethical issues from Vedas in management, Relevance of ethics

and values in businesses.

The Vedas are not just religious texts—they are repositories of universal truths and ethical
principles that can guide personal life, leadership, and corporate management. They offer
insights into how humans should behave, how power should be exercised, and how to achieve
holistic success—not just financial gains, but spiritual and social fulfillment too.
In today’s fast-paced and often morally ambiguous corporate world, these ancient teachings
provide a moral compass.

Key Vedic Ethical Concepts & Their Managerial Applications:

Vedic concept Meaning Application Example

Dharma Performing one’s Managers should A team leader

(Righteous Duty) responsibilities fulfill roles with ensures fair
ethically integrity, fairness, workload
and justice distribution and
equal opportunities
Satya Upholding truth in Transparency in Truthful
(Truthfulness) all dealings business operations, advertising; full
honest financial disclosure
communication to investors
Ahimsa (Non- Avoiding harm Ethical treatment of Eco-friendly
violence) through words, employees, packaging, zero
actions, thoughts customers, tolerance to
environment harassment
 Seva (Service) Selfless service to Focus on customer TATA Group’s
others service, CSR service-based CSR
initiatives, employee initiatives
welfare
Tyaga Letting go of Avoiding greed- A CEO choosing
(Renunciation) selfish interests driven decisions; long-term
focus on stakeholder sustainability over
welfare short-term profit
Aparigraha Not hoarding more Minimalist corporate Wipro’s emphasis
(Non- than necessary culture, resource on lean management
possessiveness) optimization and sustainability
Santosha Satisfaction with Avoiding unethical Not bribing officials
(Contentment) ethical success shortcuts for personal for contracts or
gain licenses

The VEDA Model is a framework for ethical business practices based on Indian ethos. It
emphasizes the importance of values, ethics, dharma, and action in business, providing a
comprehensive guide for companies to operate ethically and responsibly.
The Four Pillars of the VEDA Model
• Values: The VEDA Model emphasizes the importance of values such as honesty,
integrity, respect, and compassion in business. These values should guide all business
decisions and interactions.
• Ethics: The VEDA Model highlights the importance of ethical behavior in business.
Companies should strive to act ethically in all their dealings, ensuring transparency,
accountability, and fairness.
• Dharma: The VEDA Model emphasizes the concept of dharma, or duty, in business.
Companies should fulfill their responsibilities to all stakeholders, including employees,
customers, investors, and the community.A manager practices Dharma by making
decisions in the best interest of employees and customers, not just shareholders. For
example, during layoffs, ensuring fair compensation and emotional support.
• Action: The VEDA Model encourages companies to take action based on their values,
ethics, and dharma. Companies should strive to create positive social and environmental
impact through their actions.

Significance of the VEDA Model in the Indian Business Context

The VEDA Model is significant in the Indian business context because it aligns with the
Indian ethos of ethical business practices. The model emphasizes the importance of values,
ethics, and dharma, which are deeply ingrained in Indian culture. By adopting the VEDA
Model, companies can demonstrate their commitment to ethical business practices and build
trust with stakeholders.
The VEDA Model is a valuable framework for ethical business practices in the Indian context.
By prioritizing values, ethics, dharma, and action, companies can operate ethically and
 responsibly, creating positive social and environmental impact. As the Indian business
landscape continues to evolve, the VEDA Model remains relevant for guiding ethical business
practices and building trust with stakeholders.

Ethical Issues in Modern day world and its solutions in ancient Indian texts:
There are many ethical issues that are prevalent in the modern-day world, and ancient Indian
texts provide several solutions and principles that can help address these issues. Here are a
few examples:
1. Corruption: Corruption is a major ethical issue in many countries. Ancient Indian texts
emphasize the importance of honesty and transparency in business dealings, and warn against
engaging in corrupt practices. The concept of dharma, or ethical duty, can also help address
corruption by encouraging individuals to act in accordance with ethical principles and to
consider the impact of their actions on others.
2. Environmental degradation: Environmental degradation is a growing concern in many
parts of the world. Ancient Indian texts emphasize the importance of sustainability and the
responsible use of natural resources. The concept of ahimsa, or non-violence, can also be
applied to environmental issues by encouraging individuals to avoid practices that harm the
environment and to promote harmony with nature.
3. Exploitation of workers: Exploitation of workers is a major ethical issue in many
industries. Ancient Indian texts emphasize the importance of fair labor practices and the
treatment of workers with respect and dignity. The concept of artha, or the pursuit of wealth,
can also be balanced with the principles of dharma to ensure that workers are not exploited in
the pursuit of profit.
4. Social inequality: Social inequality is a major ethical issue in many societies. Ancient
Indian texts emphasize the importance of compassion and empathy towards others, and
encourage individuals to act in ways that promote the welfare of the community. The concept
of karma, or the belief in the consequences of one's actions, can also be applied to social
inequality by encouraging individuals to consider the impact of their actions on others.

Ancient Indian ethical texts, such as the Vedas, the Upanishads, the Bhagavad Gita, and the
Dharmashastras, provide a rich source of wisdom and guidance on ethical behavior and moral
principles. These texts emphasize the importance of honesty, fairness, compassion, selflessness,
and social responsibility in all aspects of life, including business and commerce. One of the key
themes in these texts is the concept of dharma, or ethical duty. Dharma emphasizes the
importance of acting in accordance with moral and ethical principles and taking responsibility
for one's actions and their impact on others. Other important themes include the pursuit of
knowledge, the importance of self-improvement, and the promotion of social welfare. These
ethical principles have influenced Indian society and culture for thousands of years and continue
to guide the behavior of individuals and organizations today. By applying these principles in the
business world and in society, we can promote ethical behavior, social responsibility, and the
creation of a more just and sustainable world.
 Examples of Ethical Business Practices:
1. TATA Group (India) – Ethical Legacy and Social Responsibility

Ethical Practices:
• Upholds integrity, transparency, and employee welfare.
• Spends over 60% of profits on community development through Tata Trusts.
• Never engages in political lobbying for unfair advantages.
Example:
During the 26/11 attacks at the Taj Hotel, the TATA Group took complete financial
responsibility for:
• Employees affected or killed (including contract staff).
• Education for children of victims.
• Medical treatment for the injured.
Key Values: Compassion, Duty (Dharma), Service (Seva)

2. Infosys (India) – Transparency and Corporate Governance

Ethical Practices:
• One of the first Indian companies to adopt stringent corporate governance and
independent auditing.
• Whistleblower protection policies in place.
• Focuses on fair HR policies and equal opportunities.
Example:
Infosys proactively discloses financial performance, ethical dilemmas, and cyber
incidents even before legal requirements.
Key Values: Satya (Truth), Responsibility, Fairness
3. Amul (India) – Cooperative and Farmer Empowerment

Ethical Practices:
• Owned by millions of dairy farmers under the Gujarat Cooperative Milk Marketing
Federation (GCMMF).
• Guarantees fair prices to farmers, empowering rural India.
• Ethical sourcing, hygiene, and transparency in supply chain.
Example:
Even during milk gluts or market crashes, Amul continues to pay stable rates to dairy
farmers, prioritizing social value over profit.
Key Values: Equity, Seva, Dharma

4. Unilever – Inclusive and Sustainable Business

Ethical Practices:
• Promotes the Unilever Sustainable Living Plan, reducing environmental footprint while
increasing social impact.
• Actively promotes diversity and inclusion within the workforce.
Example:
 Its brand runs handwashing awareness campaigns in rural India and Africa, reducing
disease without aggressively pushing product sales.
Key Values: Public Health, Service, Social Welfare

5. Mahindra & Mahindra – Ethics in Innovation and Employment

Ethical Practices:
• Practices inclusive hiring, including persons with disabilities.
• Invests in eco-friendly technology, like EVs (e.g., Mahindra Reva).
• Transparent tax disclosures and compliance.
Example:
Developed automated tractors and solar solutions with rural users in mind, promoting
affordable innovation.
Key Values: Innovation with ethics, Sustainability, Respect for all

6. Dr. Reddy’s Laboratories (India) – Patient-Centric Ethics

Ethical Practices:
• Prioritizes affordable healthcare and drug accessibility over high profit margins.
• Focus on ethical clinical trials and quality control.
Example:
Voluntarily recalled batches of medicines not meeting internal quality standards—
without waiting for external orders.
Key Values: Health as Seva, Integrity, Transparency