a.

Ethical Concepts
Ethics is the branch of philosophy that is used to evaluate human actions. Some basic
ethical concepts in business are as follows:
1. Ethical subjectivism:
This concept emphasizes that the ethical choice of the individual decides the rightness
or wrongness of his behaviour.
2. Ethical relativism:
According to this concept, no principle is universally applicable and so it would be
inaccurate to measure the behaviour of one society with another’s principles or
standards. Relativism overlooks the fact that there may be enough evidence to believe
that an ethical practice is based on false belief, illogical reasoning, and so on.
3. Consequentialism:
Consequentialism is based on two ideas: the concept of value and the maximization of
value. If, for example, honesty is considered a value, an act is considered ethical only if
it maximizes this value. An act, which does not maximize the said value, is not ethically
permissible.
This concept stresses that ethical values can be developed from the concepts of reason
as all rational individuals possess the ability to reason. We may, for example, end up
causing pain unknowingly while trying to create happiness. Therefore, the ethical value
of an action cannot be determined by its consequences. Instead, it is in the motive that
lies behind the particular action.
4. Ethics of virtue:
This concept emphasizes those traits that give the individual a sense of satisfaction
from ethical point of view. Virtuous acts like courage, honesty, tolerance and generosity
are done as a way of living and not by chance.
5. Whistle blowing:
Whistle blowing refers to the attempt of an employee to disclose what he or she
believes to be illegal behaviour in or by the organization. From one point of view, this
seems to deceive the principle of honesty in business ethics, as it is taken for granted
that the employees of an organization need to be loyal to its workings. However, when
loyalty to one’s organization in particular is perceived to be harming one’s general
loyalty to mankind, the act of whistle blowing is justified. Failure on the part of the
management of the organization to fulfil its social obligations calls for whistle blowing.
It is the responsibility of the whistle blower to be careful about revealing the
organization’s secrets and to consider the harm it may cause to his colleagues and
shareholders. The steps that should be taken into consideration by the whistle blower
are:
a. Ascertain the gravity of the situation before whistle blowing.
b. Scrutinize the purpose.
c. Authenticate and keep a record of the concerned information.
d. Determine the type of offence and to whom it should be reported.
e. Assert your claim in a proper way.
f. Stick to the facts.
g. Determine if the whistle blowing need be external or internal.
h. Decide if the whistle blowing should be anonymous or otherwise.
i. Make sure to follow proper rules in reporting the offence.
j. Consult a lawyer (if required).
k. Anticipate and document vengeance.

6. Ethical dilemmas in business:

An organization’s ethical problems indicate a conflict between its economic and social
performance. This results in a dilemma for managers. Since people handle business, it
is a crucial requirement to check and ascertain ethical behaviour at a personal level.
This will confirm ethically correct responses from the organization to the mutual actions
of individuals.

Ethical Models

Ethical models can be used to define ethical situations and manage ethical dilemmas
that may occur in the organizations. The Golden Rule Model and The Right-driven or
Kantian model are two operational models that have emerged from the work of
philosopher Immanuel Kant.

1. The Golden Rule Model

This model originated from the New Testament—specifies people should treat others in
the same manner that they themselves would like to be treated. It is a fundamental
principle found in every culture and religion and it is the most important basis for the
modern concept of human rights. It is also called the ethics of reciprocity as it
stimulates an individual to put oneself in the other person’s shoes and then evaluate
how one would wish to be treated in that particular situation. This proves that this rule
is absurd without identifying the receiver and the situation. The ethics of reciprocity
should not be confused with revenge or penalizing justice. The ethics also mentions
that one has the freedom to do anything as long as those activities do not harm
anyone. If this golden rule is applied to every anomaly, then many unethical
consequences may result in causing harm to others and perfectionists may charge
others with critical analysis, which may lead to harassments. Different people have
different ideologies, beliefs and may belong to different cultural heritages. This
difference is the reason behind the different people’s behaviour towards various
situations.

2. The Kantian Model

This model is based on the hypothesis that everybody has some fundamental rights in
this ethical universe. So any action is ethically correct if it reduces the stakeholders’
collective violation of rights. This model willingly provides assistance in the internal
audit review and helps in managerial decision-making. Kant did not believe that any
outcome was good from its origin. According to him good is not always intrinsic. He did
not believe in ‘good’ character traits like ingenuity, intelligence and courage. In fact, he
used the term ‘good’ to describe ‘goodwill’, by which he meant the resolve to
perform the act purely in accordance with one’s duty.
If the actions are predetermined, then they cannot be described as free and moral. He
believed that to act morally, freedom is required. According to Kant there are two
concepts of duty. According to one concept, duty is just following orders imposed by
others. The other concept is that duty is internal and can be imposed on oneself. He
considered that inclinations constitute motivation whereas others believed that it was
the physical world that acted as motivation.
But Kant believed that the sources of the physical world might be unreliable, passive
and phenomenal. Sometimes, man’s mind is over-clouded by sorrows due to his lack of
sympathy from others but he still has the power to help those in distress. He no longer
needs any support as he is sufficiently occupied with his own inclinations, making him
indifferent to the sufferings of others. He becomes adaptive to his sufferings with the
help of the patience and endurance he has developed in due course of time. This
begins to show his worth of character and temperament.
Most of us live by rules most of the time. Some of them are called categorical
imperatives that are unconditional commands which bind everyone at all times. There
are two types of imperatives: hypothetical imperative, which is to say that if one wants
to achieve success then he should work in a freeway and not bind himself to his
inclinations; and categorical imperative, for example, the imperative to always tell
the truth as it is unconditional and can be applied at all times.
Kant also introduced maxims, which are subjective rules that guide actions and help an
individual to act according to the relevant description. There is sufficient generality in
description. All actions have maxims like:
1. Never lie to your colleagues.
2. Never act in a manner that would make your family or organization ashamed of
you.
3. Always work hard to be the best performer.
4. It’s acceptable to cheat if the pattern demands it.
 b. Ethical Values and Actions

Ethical values and actions are an integral part of ethical societies. Ethical actions in the
ethical society refer to the initiatives taken by the people to show their commitment
towards building a better life for them and for their children. Ethical actions are also
termed as the categorical imperative actions. The whole world is created by action and
is meant for action. The future life depends on the actions performed by the people.
Ethical actions are the activities performed by the social, national or personal group.
The people in these groups perform the activities in a spirit of service and commitment.
The dimensions of ethical actions can be divided into two major categories. These
categories are:
1. Community service:
Community service aims at helping the organizations and the people in the community.
The organizations in the Southwest and Northwest regions are providing humanitarian
action to the population affected by the socio-political upheavals come under this
category.
2. Social issues support:
Social issues support aims at giving emotional and physical support to organizations and
the people in the society. Social issues support can come in different forms. These
forms are:
a. Emotional support
b. Informational support
c. Instrumental support
d. Personal feedback
e. Sharing view points

Types of Ethical Actions

Ethical actions can be of two types. These types are:

 a. Destructive actions.
b. Constructive actions.

a. Destructive actions.
Destructive actions are those that can harm the people performing the actions as well
as others. It is very difficult for people to find out which actions are harmful. Some
actions can cause damage in one situation and the same actions can be useful in some
other situation.

b. Constructive actions

Constructive actions are also considered as desire-prompted duties. Constructive

actions are always done by people who consider it their responsibility or duty to
perform these actions. These actions can be performed either daily or on some special
time. These actions always provide a result that is purposeful and self-determined.
Constructive actions can be of three different types. These types are:
a. Obligatory actions:
These actions can be performed by any type of person in the society. These actions do
not affect any special category of people. Every man, society and the universe would be
affected by these actions.
b. Prohibited actions:
Prohibited actions do not prove to be of worth for the people. The non-performance of
prohibited actions is also obligatory.
c. Optional action:
Optional actions are also called hypothetical imperative actions. These actions prove to
be beneficial to human beings and are also performed by the people to secure their
personal benefits.
Therefore, ethical actions are responsible for performing the obligatory and optional
actions successfully and avoiding the prohibited actions.
Characteristics of Ethical Actions

The different characteristics of ethical actions are:

a. Ethical actions are not only activities to serve others but also the inner
temperament of the mind.
b. Ethical actions give importance to helping others.
c. Ethical actions are not the instrumental value but the intrinsic value.
d. Ethical actions are performed for prosperity, success and sound decisions.
e. Ethical actions are used to avoid prohibited constructive actions and to promote
obligatory and optional actions.
f. Ethical actions are performed as duties or responsibilities of individuals.

Morality

People should be self-disciplined in order to carry out ethical actions successfully.

Morality refers to the concept of human action which pertains to matters of right and
wrong. Individuals who oppose with determination inducement towards the wrong
spend a good moral life.
Ethical actions should be performed as a community standard rather than as an
individual responsibility. Individuals in a society can perform three types of ethical
actions. These actions are:
1. Morality:
Morality actions are performed to secure the future of others.
2. Religion:
Religion is the collection of ethical actions that can affect a group or society.
3. Civil law:
Civil law actions are a collection of ethical actions that can be used to change or control
the behaviour of an individual in society.
Therefore, morality can be defined as the collection of concepts and attitude that can
be used by a culture or a group in society to control or change the behaviour of an
individual. Different societies or cultures have their different opinions on morality.
Morality can be applied to the generality or the part of the fields in which the personal
opinions of the individual have some relation or reference to other individuals. These
individuals may belong to some other community too. Therefore, morality can exist in
isolation or in a generic society.
There exist different types of groups or societies having different views on behaviour.
Some groups put heavy restrictions on behaviour and some groups allow the individuals
to be self-determined. Morality can also be defined as the personal ethical behaviour
that an individual creates for himself. The terms ‘morality’ and ‘ethics’ have a strong
relationship with each other.
Morality refers to moral character or standards. Morality is used to analyse the
behaviour of the individual and the standards of conduct. Ethics is used to refer to the
formal study of these standards. Morality can be considered as ethics in action.
The mind is responsible for the thoughts and feelings of individuals. The existence of
individuals and their activities is only due to their mind. The feelings and opinions of
persons depend on their mind. A person having a good mind has good feelings and a
person having a disturbed mind has disturbed feelings. Professor Gardner suggests five
types of minds. The ethical mind is one of them. The others are disciplined mind,
synthesizing mind, creating mind and respectful mind. The ethical mind of a person is
affected by the nearby surroundings and culture. Ethical minds can be of two types.
These are:
a. Subjective mind:
The subjective mind faces motivation from the different objects of the world. This type
of human mind is also called the outer mind.
b. Objective mind:
This type of mind reacts to the encouragement received from the outside world. This
type of human mind is also called the inner mind.

The objective mind of the human being is under the control of the subjective mind. The
objective and subjective minds of human beings are separated by layers of egoistic
desires. The confidence of an individual depends on the distance between these two
minds. The greater the distance between these two minds, the more confused is the
person. If the distance between the two minds is large, then the objective mind does
not receive any message from the subjective mind. If the mind is in a state of
confusion, then the mind of the individual becomes nervous, unsteady and confused.
Thus, the person loses his morale. If the emotions of the person are separated from his
mental power, then the objective mind would not be under the control of the subjective
mind. This situation can make a man wild and come to some unintelligent conclusions.
Each person should try to decrease the distance between the subjective mind and the
objective mind. This can only be accomplished by training the mind. Each person should
be able to identify support that will maintain mental energy, intellectual vision and
physical patience to spend the ethical action life.
Training of the mind can be accomplished by two methods. These methods are:

1. Art of disengagement:
Mental disengagement can only be developed by developing a mind that is free from
abstracted and fractional feelings and is more concentrated. Every person should
identify his role and keep the subjective and objective mind steady to fulfil his role. The
mind of the person should be integrated so as to keep him aware of each situation. The
integrated mind does not allow the individuals to cross the boundaries of his current
role.
2. Self-denial:
Self-denial is an inner characteristic of a person; by which he does not let any
extraneous thoughts enter his mind so as to achieve something. This is one of the
methods to train the mind. Some examples of self-denial are the state of mind of a
student before an examination, and the state of mind of a dancer before the
performance.

Self-development

Self-development is the responsibility and duty of the individuals to learn and develop
themselves. Individuals can use the process of assessment, reflection, and take
necessary action to achieve self-development. Self-development is the only way for
individuals to update their skills and knowledge in order to face the new problems that
emerge in life. Self-development also determines one’s future career direction. Some of
the characteristics of self-development are:
1. The person undergoing self-development does not depend on the support of the
outside world. Such type of person becomes self-sufficient. Self-development in
individuals makes them independent.
2. Self-development brings in the feature of objectivity in individuals. Such a
feature gives individuals an impersonal attitude.
3. A self-developed person looks happy in life. His inner nature looks full of cheer
and joy. He will not be depressed and miserable.
4. A self-developed person becomes dynamic, active and brighter in life.
5. A self-developed person is more lovable.
Self-development Methods

Individuals can use different methods for self-development. Some of the methods are:
1. Path of action:
The path of action states that people should only perform their job and should not care
for the fruits or results. This is also the Indian philosophy. Ethical actions are a way to
perform one’s duties or responsibilities in an unselfish manner.
2. Path of knowledge:
The path of knowledge means to move towards acquiring knowledge. The path of
knowledge also eliminates the distance between the subjective mind and the objective
mind. Thus, the path of knowledge makes a man confident and self-developed.
3. Path of discrimination:
The path of discrimination assists a person to identify his inner faults. The person has
to transform the inner motives and mental attitudes to train the mind. The path of
discrimination forces individuals to control the emotions of attachment, fear and anger.
4. Path of sacrifice of wealth:
The path of sacrifice of wealth refers to donations of wealth in charities without a
consequence in mind. This feature makes people more positive towards life and helps
individuals overcome greed.
 5. Path of self-control:
Self-control is an internal characteristic of individuals. Self-control can be of five types.
These are:
a. Non-injury
b. Truthfulness
c. Non-stealing
d. Celibacy
e. Non-acceptance of gifts

6. Path of mind-control:
The path of mind-control consists of concentration and meditation. Concentration refers
to focusing on the object on which one is working. Devotion to God helps in achieving
concentration. Meditation refers to the state of the body in which the person feels
relaxed and the mind is more focused. Therefore, meditation helps in achieving
concentration.