BUSINESS ETHICS – UNIT III: Human Values and Indian Ethos in Management

Focusing on values and ethics in the workplace, this unit discusses human values, workplace culture, and the role of Indian ethos in managerial decisions. It connects traditional Indian principles like Dharma, Nishkama Karma, and Trusteeship to modern management practices, emphasizing ethical leadership, teamwork, and conflict resolution.

1. BUSINESS ETHICS UNIT – III
VALUES AT THE WORKPLACE
Values at the workplace are the fundamental beliefs, principles, and standards of behavior
that guide how individuals and organizations operate, make decisions, and interact with one
another. They act as a moral compass, shaping the culture of an organization and influencing
how employees work together, handle challenges, and serve customers.
Key Features of Workplace Values:
1. Guiding Principles – They help employees understand what is expected of them in
terms of behavior and decision-making.
2. Cultural Foundation – Values shape the overall culture of the workplace (e.g.,
teamwork, respect, or innovation).
3. Consistency – They ensure employees act in line with the company’s mission and
vision.
4. Motivation & Engagement – Shared values create a sense of belonging, pride, and
commitment.
Common Examples of Workplace Values:
• Integrity – Acting honestly and ethically.
• Respect – Valuing diversity, opinions, and contributions of others.
• Accountability – Taking responsibility for one’s actions.
• Collaboration/Teamwork – Working together toward shared goals.
• Excellence – Striving for high standards and continuous improvement.
• Innovation – Encouraging creativity and new ideas.
• Customer Focus – Prioritizing customer needs and satisfaction.
• Work-Life Balance – Promoting employee well-being.
COMPONENTS OF HUMAN VALUES
Human values are the core principles and standards that guide human behavior, decision-
making, and interactions in both personal and professional life. They represent what is
considered important, right, and desirable.
Main Components of Human Values:
1. Integrity (Truthfulness & Honesty)
o Being truthful, transparent, and consistent in thoughts, words, and actions.
o Builds trust and credibility.

2. 2. Respect (Dignity & Equality)
o Treating others with fairness, empathy, and consideration.
o Acknowledging diversity and human dignity.
3. Responsibility (Accountability & Duty)
o Taking ownership of one’s actions and fulfilling obligations to society, work, and
family.
4. Compassion (Empathy & Kindness)
o Understanding and sharing the feelings of others.
o Supporting those in need with care and concern.
5. Fairness (Justice & Equality)
o Acting without bias, favoritism, or discrimination.
o Ensuring justice in personal and social dealings.
6. Commitment (Dedication & Loyalty)
o Being dedicated to goals, relationships, and duties.
o Upholding promises and long-term values.
7. Courage (Moral Strength & Perseverance)
o Standing up for what is right, even in difficult situations.
o Facing challenges with confidence and resilience.
8. Spirituality (Inner Peace & Purpose)
o Seeking meaning in life beyond material success.
o Practicing values like tolerance, humility, and harmony.
Thus, the components of human values combine ethical, emotional, social, and spiritual
dimensions of life, guiding people to live with integrity, respect, responsibility, compassion,
fairness, commitment, courage, and purpose.
IMPORTANCE OF VALUES IN THE WORK ENVIRONMENT
Values are the guiding principles that shape behavior, decisions, and relationships at the
workplace. They influence how employees interact with each other, handle challenges, and
contribute to organizational goals.
1. Builds Trust and Integrity
• Values like honesty and transparency help create a trustworthy work culture.
• Example: When management communicates openly, employees feel secure and
motivated.

3. 2. Improves Teamwork and Collaboration
• Respect, fairness, and empathy encourage better cooperation among employees.
• Teams work together more smoothly when guided by shared values.
3. Guides Ethical Decision-Making
• Values act as a moral compass in tough situations.
• Example: Choosing not to engage in unfair trade practices, even if profitable.
4. Enhances Employee Motivation and Commitment
• When employees feel that the company’s values match their own, they are more
engaged, loyal, and satisfied.
• Example: Companies that value work-life balance have happier and more productive
employees.
5. Shapes Positive Organizational Culture
• Strong values create a culture of respect, accountability, and innovation.
• This culture attracts talent and improves overall performance.
6. Improves Customer Relationships
• Organizations driven by values like responsibility and service build strong customer
trust.
• Example: Tata Group’s reputation for ethical business attracts loyal customers.
7. Ensures Long-Term Success and Sustainability
• Values like responsibility and commitment ensure sustainable growth beyond short-
term profits.
• Example: Companies investing in eco-friendly practices gain long-term reputation
benefits.
INDIAN ETHOS IN SHAPING MANAGERIAL DECISIONS
Indian ethos refers to applying Indian cultural values, philosophies, and ethical principles to
business and management practices. It draws inspiration from sources like the Vedas,
Upanishads, Bhagavad Gita, Arthashastra, Ramayana, and Mahabharata, focusing on holistic
growth, ethical conduct, and harmony.
ROLE OF INDIAN ETHOS IN MANAGERIAL DECISIONS
1. Holistic Approach
o Managers make decisions considering not just profits but also people, society,
and environment (the principle of Lokasangraha – welfare of all).

4. 2. Ethical Foundation
o Decisions are guided by dharma (duty and righteousness) rather than short-
term gains.
o Promotes integrity, fairness, and transparency.
3. Trust and Relationship Building
o Focuses on trust, loyalty, and mutual respect in employer-employee and
business relationships.
o Encourages a family-like workplace culture.
4. Selfless Leadership
o Inspired by the Bhagavad Gita’s concept of Nishkama Karma (selfless action
without attachment to results).
o Managers act as trustees rather than exploiters of resources.
5. Long-Term Orientation
o Decisions are made with sustainability and continuity in mind, not just
immediate results.
6. Employee Well-being
o Emphasizes Seva (service) and Karuna (compassion), ensuring employee
welfare, motivation, and work-life balance.
7. Unity in Diversity
o Promotes inclusive decision-making by respecting diverse ideas, backgrounds,
and cultures.
8. Spiritual Dimension
o Encourages inner peace, stress management, and value-driven leadership.
o Decision-making is influenced by clarity of mind and moral consciousness.
CONCEPT OF INDIAN ETHOS IN MANAGEMENT
The concept of Indian ethos in management refers to applying the principles, values, and
wisdom from Indian culture, philosophy, and scriptures (such as the Vedas, Upanishads,
Bhagavad Gita, Arthashastra, Ramayana, and Mahabharata) to modern business and
managerial practices.
It emphasizes that management is not just about profits and efficiency, but also about ethics,
values, social responsibility, and holistic development.
CORE IDEAS OF INDIAN ETHOS IN MANAGEMENT:

5. 1. Work as Worship (Karma Yoga)
o Work is not just for material gain, but an offering to society and the divine.
o Principle: “Yogah Karmasu Kaushalam” (Excellence in action is Yoga – Bhagavad
Gita).
2. Duty (Dharma) before Self
o Managers should focus on righteousness, fairness, and fulfilling responsibilities
over personal benefit.
3. Selfless Action (Nishkama Karma)
o Perform duties without selfish attachment to rewards.
o Encourages ethical decision-making and long-term growth.
4. Trusteeship Concept
o Wealth and resources are held in trust for the welfare of society.
o Propagated by Mahatma Gandhi: “Businessmen are trustees of society.”
5. Holistic Development
o Focus on balancing material success with spiritual well-being and social
harmony.
6. Collective Welfare (Lokasangraha)
o Management decisions should aim at the welfare of all — employees,
customers, stakeholders, and society.
7. Simplicity and Harmony
o Advocates simple living, high thinking, and harmony between man, nature, and
organization.
8. Spiritual Leadership
o A manager is not just a controller but also a guide, motivator, and servant
leader.
PRINCIPLES OF INDIAN ETHOS IN MANAGEMENT
Indian ethos in management is guided by values and philosophies from the Vedas,
Upanishads, Bhagavad Gita, Ramayana, Mahabharata, Arthashastra, and teachings of leaders
like Mahatma Gandhi. These principles combine ethics, spirituality, and holistic growth with
modern managerial practices.
1. Work is Worship (Karma Yoga)
• Work should be performed with sincerity and dedication as a form of worship.

6. • Principle: “Yogah Karmasu Kaushalam” – Excellence in action is Yoga (Bhagavad Gita).
• Managerial Application: Managers should motivate employees to focus on quality and
excellence in their work.
2. Nishkama Karma (Selfless Action)
• Perform duties without attachment to personal rewards or selfish motives.
• Principle: Duty comes first, results are secondary.
• Managerial Application: Managers should work for organizational and social good, not
just personal profit or recognition.
3. Dharma (Righteousness / Ethical Duty)
• Every action and decision must be guided by righteousness and fairness.
• Principle: Ethics and values are above short-term gains.
• Managerial Application: Business decisions should be lawful, transparent, and morally
correct.
4. Trusteeship Concept
• Wealth and resources are not for personal ownership but held in trust for society’s
welfare.
• Mahatma Gandhi’s idea of trusteeship.
• Managerial Application: Organizations should use profits responsibly, focusing on CSR,
sustainability, and community welfare.
5. Lokasangraha (Collective Welfare)
• Management decisions should aim for the welfare of all – employees, customers,
shareholders, and society.
• Principle: “Sarve Bhavantu Sukhinah” (Let all be happy).
• Managerial Application: Policies should balance profit-making with employee well-
being and environmental responsibility.
6. Holistic Approach to Management
• Human life is not just material but also spiritual.
• Principle: Balance between Artha (wealth), Dharma (ethics), Kama (desires), and
Moksha (spiritual liberation).
• Managerial Application: Companies should encourage work-life balance, stress
management, and value-based leadership.
7. Spiritual Leadership

7. • A manager is not just a controller but also a guide and motivator.
• Principle: Lead by example with humility, service, and compassion.
• Managerial Application: Ethical leadership inspires trust and loyalty in employees.
8. Simplicity and Harmony
• Advocates simple living, high thinking, and harmony between human beings, nature,
and organizations.
• Managerial Application: Sustainable practices, minimal wastage, and eco-friendly
business operations.
Hence, the principles of Indian ethos in management emphasize selfless work, ethics,
collective welfare, trusteeship, holistic development, and spiritual leadership.
They ensure that businesses not only achieve financial success but also contribute to social
harmony, ethical governance, and sustainable growth.
INDIAN ETHOS IN RESOLVING WORKPLACE CONFLICTS
Indian ethos provides ethical, spiritual, and value-based guidance from Indian philosophy
(Vedas, Upanishads, Bhagavad Gita, Ramayana, Mahabharata, Arthashastra) that managers
can use to resolve conflicts fairly and harmoniously.
1. Applying the Principle of Dharma (Righteousness & Duty)
• Approach: Encourage employees to act according to their responsibilities and fairness,
not personal bias.
• Application: In team disputes, a manager ensures decisions are guided by fairness and
organizational duty rather than favoritism.
• Example: Promoting an employee based on merit (Dharma), not personal influence.
2. Practicing Nishkama Karma (Selfless Action)
• Approach: Managers act without selfish motives, focusing on organizational harmony.
• Application: While resolving conflicts, the manager avoids personal gain and ensures
justice for all.
• Example: A manager settling a sales-team bonus dispute by aligning it with team
contribution, not personal preference.
3. Adopting Samatva (Equality and Balance)
• Approach: Treat all parties fairly, maintaining balance and equality.
• Application: Manager listens to all employees equally before making a decision.
• Example: In workload disputes, tasks are divided fairly, ensuring balance for everyone.

8. 4. Using the Concept of Lokasangraha (Collective Welfare)
• Approach: Focus on overall team and organizational welfare rather than individual
victory.
• Application: Encourage compromise or win–win solutions that benefit the whole
group.
• Example: Resolving inter-departmental conflicts by promoting collaboration instead of
competition.
5. Practicing Forgiveness and Compassion (Karuna)
• Approach: Managers encourage empathy and forgiveness instead of revenge.
• Application: In cases of misconduct, corrective measures are taken rather than harsh
punishments, allowing learning.
• Example: Allowing an employee who made a mistake to improve instead of immediate
termination.
6. Promoting Dialogue and Harmony (Samanvaya)
• Approach: Encourage open communication, patience, and listening to different
perspectives.
• Application: Use meetings or mediation to resolve disputes constructively.
• Example: Organizing dialogue sessions to settle conflicts between project teams.
7. Practicing Trusteeship (Wealth/Resources for Common Good)
• Approach: Resources and benefits are considered as belonging to the organization and
society, not individuals.
• Application: In salary or resource conflicts, the manager ensures fair distribution
keeping organizational interest first.
• Example: Allocating project funds fairly instead of favoring a single department.
Thus, a manager can apply Indian ethos by practicing dharma (fairness), nishkama karma
(selfless action), samatva (equality), lokasangraha (collective welfare), karuna (compassion),
samanvaya (dialogue), and trusteeship. This ensures that workplace conflicts are resolved in
an ethical, fair, and harmonious way, promoting both employee satisfaction and organizational
growth.
WHISTLEBLOWING
Telling the truth about wrongdoing inside an organization.

9. It is when an employee or insider reports unethical, illegal, unsafe, or harmful activities
happening in a company to higher authorities, regulators, or even the public.
Example:
If a worker finds out their company is dumping toxic waste into a river and reports it to the
pollution control board, that is whistleblowing.
In short: Whistleblowing = Speaking up to stop wrong practices for the good of people, the
company, or society.
TYPES OF WHISTLEBLOWING
1. Internal Whistleblowing
o Reporting wrongdoing to someone inside the organization (like HR, manager,
or compliance team).
o Example: An employee reports misuse of company funds to the finance head.
2. External Whistleblowing
o Reporting misconduct to outside authorities (like police, government agencies,
media, NGOs).
o Example: Informing the pollution control board about a factory polluting a river.
3. Personal Whistleblowing
o Reporting something wrong that personally affects the whistleblower.
o Example: An employee reports harassment at the workplace.
4. Impersonal Whistleblowing
o Reporting wrongdoing that affects others or the public, not the whistleblower
directly.
o Example: Reporting a company for selling expired medicines.
5. Open Whistleblowing
o The whistleblower reveals their identity when reporting the wrongdoing.
o Example: A safety officer openly reporting unsafe practices in a factory.
6. Anonymous Whistleblowing
o The whistleblower keeps their identity hidden while reporting.
o Example: Sending an unsigned email to authorities about company fraud.
7. Government Whistleblowing
o Reporting corruption, misuse of power, or unethical practices within
government offices.

10. o Example: A government officer exposing bribery in a tender process.
COMPONENTS OF WHISTLEBLOWING
Whistleblowing is the act of reporting unethical, illegal, or harmful practices within an
organization to authorities, stakeholders, or the public. It serves as a safeguard to maintain
accountability and transparency.
Key Components:
1. The Whistleblower
o The individual (employee, ex-employee, contractor, or stakeholder) who
exposes wrongdoing.
o Motivated by ethical duty or concern for public interest.
2. The Wrongdoing
o Unethical or illegal act such as corruption, fraud, environmental harm,
harassment, discrimination, or safety violations.
3. The Wrongdoer
o The individual, group, or organization engaged in misconduct.
4. The Recipient (Authority or Audience)
o The body/person to whom the wrongdoing is reported (e.g., management,
regulatory agencies, media, or legal authorities).
5. The Disclosure Process
o The formal or informal way in which information is revealed.
o Could be internal (to management, HR, compliance) or external (to regulators,
courts, media, NGOs).
6. Protection Mechanism
o Safeguards against retaliation (like dismissal, demotion, harassment).
o Many countries have Whistleblower Protection Laws.
7. Outcome/Impact
o Corrective action taken (policy change, legal action, improved safety,
accountability).
Example of Whistleblowing:
• In 2016, a former employee of Wells Fargo Bank (USA) exposed that employees were
creating millions of fake customer accounts to meet sales targets.

11. • This led to massive fines, resignation of top executives, and reforms in banking
practices.
WHISTLEBLOWING IT’S ETHICAL REFORMS
CASE STUDY: WHISTLEBLOWING AND THE SATYAM COMPUTERS SCAM
Background of the Scam
• Company: Satyam Computer Services Ltd. (once India’s 4th largest IT company).
• Year Exposed: 2009.
• Scandal: Chairman Ramalinga Raju admitted that he had manipulated company
accounts for years, inflating profits by about ₹7,000 crore (~$1.5 billion).
• False revenue, fake invoices, and non-existent assets were shown to attract investors
and keep stock prices high.
• It was often referred to as “India’s Enron.”
Role of Whistleblowing
• While Raju’s public confession brought the scam into the spotlight, internal auditors,
employees, and later independent whistleblowers had already raised red flags about
irregularities in financial reporting.
• Whistleblowers pointed to:
o Fictitious bank statements.
o Inflated employee numbers (company claimed ~53,000 employees but
actually had fewer).
o Overstated profits and cash balances.
Though some warnings were ignored initially, the growing pressure from auditors, board
members, and whistleblowers led Raju to finally confess in January 2009.
Ethical Reforms Triggered by the Scam
The whistleblowing and exposure of the fraud led to major ethical reforms in India’s corporate
governance:
1. Stricter Corporate Governance Norms
o The scam exposed weaknesses in board oversight.
o Result: SEBI (Securities and Exchange Board of India) and the Ministry of
Corporate Affairs tightened disclosure and audit requirements.
2. Stronger Role of Independent Directors

12. o Independent directors are now expected to actively monitor financial integrity
and corporate ethics.
3. Mandatory Whistleblower Policies
o Listed companies in India were required to implement formal whistleblower
mechanisms to protect employees who report fraud.
4. Auditor Accountability
o Greater scrutiny of external auditors (PricewaterhouseCoopers was heavily
criticized for its failure in detecting fraud).
5. Creation of National Financial Reporting Authority (NFRA)
o Established to oversee accounting and auditing standards in India.
6. Acquisition of Satyam (Corporate Rescue)
o To protect employees and clients, the Indian government facilitated Satyam’s
acquisition by Tech Mahindra, which rebranded it as Mahindra Satyam (later
merged with Tech Mahindra).



Key Ethical Lesson
The Satyam scam shows how whistleblowing acts as a safeguard in exposing unethical
practices. Without it, fraud could have continued, damaging not only shareholders but also
employees, clients, and India’s global IT reputation.
Whistleblowing here ultimately led to better transparency, stronger corporate laws,
and a culture of ethical accountability in Indian companies.
KEY FEATURES OF A STRONG CORPORATE CULTURE TO THE CURRENT BUSINESS SCENARIO
The key features of a strong corporate culture to today’s business scenario where
organizations face rapid technological changes, global competition, sustainability pressures,
and evolving workforce expectations.
Key Features of a Strong Corporate Culture & Their Application
1. Clear Vision and Mission
o Application: Companies like Tesla and Infosys thrive by aligning employees with
a shared purpose — sustainability and innovation for Tesla, and digital
transformation for Infosys.

13. o In today’s uncertain markets, a strong vision helps employees focus on long-
term goals despite short-term challenges.
2. Core Values and Ethics
o Application: Firms emphasize integrity, transparency, and fairness to win
customer trust (e.g., Tata Group known for ethical business practices).
o In the age of social media, unethical behavior is quickly exposed, making values
more critical than ever.
3. Employee Engagement and Empowerment
o Application: Companies like Google or Swiggy promote open communication,
flexible work policies, and skill development.
o This leads to higher innovation and retention, especially in hybrid and remote
work environments.
4. Adaptability and Innovation
o Application: Start-ups and e-commerce giants like Amazon and Flipkart
continually innovate with AI, automation, and data analytics to stay ahead.
o A culture that embraces change is essential in the digital economy.
5. Customer-Centric Approach
o Application: Businesses like Apple or Reliance Jio build culture around
delivering superior customer experiences.
o In a competitive landscape, customer trust and loyalty become survival factors.
6. Collaboration and Teamwork
o Application: Cross-functional teams are now common in companies like
Microsoft, where developers, marketers, and analysts collaborate to launch
products faster.
o Virtual teamwork tools (Zoom, Teams, Slack) strengthen collaboration in global
operations.
7. Accountability and Responsibility
o Application: Companies now integrate Environmental, Social, and Governance
(ESG) values, holding themselves accountable to society.
o Example: Unilever focusing on sustainable sourcing and carbon reduction.
8. Recognition and Reward Systems

14. o Application: Firms like Zappos and HCL Technologies foster recognition-driven
cultures, motivating employees with both financial and non-financial rewards.
o This improves morale and encourages innovation.
Hence, A strong corporate culture today means being vision-driven, ethical, innovative,
customer-focused, collaborative, accountable, and employee-friendly. In the current business
scenario of global competition, digital disruption, and social responsibility, culture is not just
about internal harmony but a strategic advantage for long-term success.
BASIC PRINCIPLES OF HUMAN VALUES IN TOTAL QUALITY MANAGEMENT (TQM)
Total Quality Management (TQM) is not only about improving products and processes but also
about developing a value-driven culture in the organization. Human values provide the ethical
and moral foundation for TQM.
Total Quality Management (TQM) is a management philosophy that focuses on continuous
improvement of processes, products, and services by involving everyone in the organization
with the goal of achieving customer satisfaction.
Key Features of TQM:
1. Customer Focus – Meeting and exceeding customer expectations.
2. Continuous Improvement (Kaizen) – Ongoing effort to improve processes and reduce
waste.
3. Employee Involvement – Quality is the responsibility of all employees.
4. Process-Oriented Approach – Focus on improving the process, not just the end
product.
5. Integrated System – All departments work together for common quality goals.
6. Fact-Based Decision Making – Using data and analysis to drive improvements.
7. Strong Leadership Commitment – Leaders set the tone for quality culture.
PRINCIPLES OF HUMAN VALUES IN TQM:
1. Integrity (Honesty & Transparency)
o In TQM, honesty in reporting data, processes, and outcomes ensures trust in
quality improvement efforts.
2. Respect for People (Dignity & Fairness)
o Employees at all levels must be treated with dignity. Respect encourages
teamwork, participation, and creativity.
3. Responsibility & Accountability

15. o Everyone in the organization is responsible for quality. TQM emphasizes that
quality is everyone’s job, not just management’s.
4. Commitment & Dedication
o TQM requires long-term commitment to quality goals. Human values of loyalty
and dedication support continuous improvement.
5. Compassion & Empathy
o Understanding customer needs and employee concerns leads to better service
and employee engagement.
o “Customer is the king” aligns with empathy-driven decision-making.
6. Justice & Fairness
o Fair recognition and reward systems build trust and motivate employees to
participate actively in quality processes.
7. Trust & Cooperation
o TQM thrives on teamwork, open communication, and mutual trust between
management and employees.
8. Self-Discipline (Moral Responsibility)
o Employees take pride in doing the job right the first time, reflecting personal
responsibility and discipline.
IMPACT OF HUMAN VALUES IN TOTAL QUALITY MANAGEMENT (TQM)
Human values provide the ethical and moral foundation for Total Quality Management. They
help ensure that TQM is not just about technical improvements but also about people-
centered, ethical, and sustainable growth.
1. Integrity (Honesty & Transparency)
• Ensures accurate reporting of data and quality standards.
• Builds trust between management, employees, and customers.
2. Respect for People (Dignity & Fairness)
• Promotes teamwork and employee participation in quality processes.
• Encourages creativity and open communication.
3. Responsibility & Accountability
• Emphasizes that quality is everyone’s responsibility.
• Increases commitment to doing work right the first time.
4. Commitment & Dedication

16. • Supports the long-term vision of continuous improvement.
• Encourages employees to stay motivated and aligned with organizational goals.
5. Compassion & Empathy
• Helps organizations understand and meet customer needs better.
• Improves employee morale and reduces workplace conflicts.
6. Fairness & Justice
• Creates trust through fair evaluation, recognition, and rewards.
• Motivates employees to contribute fully to quality initiatives.
7. Trust & Cooperation
• Builds a culture of teamwork and collaboration.
• Strengthens coordination across departments for process improvement.
8. Self-Discipline & Moral Responsibility
• Encourages employees to maintain high standards in their own work.
• Reduces errors and waste, leading to better quality outcomes.
KEY VALUES REQUIRED IN A TQM ENVIRONMENT
1. Integrity (Honesty & Transparency)
o Employees and managers must report processes, results, and problems
honestly.
o Example: Toyota openly recalls defective cars instead of hiding issues, building
long-term trust.
2. Customer Focus
o The organization should prioritize customer satisfaction and continuous
feedback.
o Example: Amazon uses customer reviews and data to improve services and
delivery standards.
3. Teamwork and Cooperation
o TQM requires collaboration across all departments and levels.
o Example: Infosys encourages cross-functional quality circles where employees
suggest process improvements.
4. Continuous Improvement (Kaizen)
o Everyone should aim for small, consistent improvements in work processes.

17. o Example: Japanese firms like Toyota use Kaizen to reduce waste and enhance
quality daily.
5. Accountability and Responsibility
o Each employee should take ownership of their role in delivering quality.
o Example: At Tata Steel, employees follow “Do it right the first time” philosophy
to minimize errors.
6. Respect for People (Fairness & Dignity)
o Employees are seen as valuable assets whose creativity and participation
improve quality.
o Example: Wipro involves employees in decision-making through open feedback
systems.
7. Innovation and Learning
o TQM thrives on new ideas and problem-solving approaches.
o Example: Apple invests heavily in R&D and encourages employee-driven
innovation for product excellence.
8. Commitment and Dedication
o Leaders and employees must stay committed to long-term quality goals, not
just short-term profits.
o Example: Maruti Suzuki invested in advanced technology and training
programs to improve product reliability.
ETHICAL LEADERSHIP
Ethical leadership means leading with honesty, fairness, integrity, and respect for others. An
ethical leader not only focuses on achieving business goals but also ensures that decisions are
morally right, socially responsible, and people-centered.
In simple words: Ethical leadership is “doing the right thing while leading others, even when
it’s difficult.”
It is about setting a positive example, building trust, and guiding the team with values, not
just rules.
Characteristics of Ethical Leadership
1. Integrity
o Always being honest and consistent in words and actions.
o Example: Admitting mistakes instead of covering them up.

18. 2. Fairness and Justice
o Treating all employees equally, without bias or favoritism.
o Example: Promoting based on merit, not personal connections.
3. Respect for Others
o Listening to employees’ views and valuing their contributions.
o Example: Encouraging open discussions before making decisions.
4. Accountability
o Taking responsibility for one’s own actions and decisions.
o Example: A manager accepting blame for a team failure.
5. Transparency
o Being open about policies, decisions, and processes.
o Example: Clearly explaining why layoffs are happening rather than hiding the
truth.
6. Empathy and Compassion
o Understanding and caring for employees’ needs and problems.
o Example: Supporting staff during personal or health crises.
7. Role Modeling (Leading by Example)
o Setting high ethical standards through personal behavior.
o Example: A leader arriving on time to encourage punctuality.
8. Long-Term Perspective
o Making decisions for sustainable growth, not just short-term profits.
o Example: Investing in eco-friendly practices even if they cost more now.
CODE OF CONDUCT FOR MAINTAINING CORPORATE ETHICS
A Code of Conduct is a set of principles, rules, and guidelines that define acceptable behavior
and responsibilities of employees, managers, and stakeholders in an organization. It ensures
that business is conducted with integrity, fairness, and accountability.
KEY COMPONENTS OF A CORPORATE CODE OF CONDUCT
1. Integrity and Honesty
o Employees must be truthful in communication, financial reporting, and
dealings.
o Example: Infosys insists on accurate reporting and bans misrepresentation in
its code of ethics.

19. 2. Compliance with Laws and Regulations
o Organizations must follow local, national, and international laws.
o Example: Tata Group strictly complies with environmental, labor, and taxation
laws in all countries it operates.
3. Respect in the Workplace (Anti-discrimination & Harassment)
o All employees should be treated with dignity regardless of gender, caste,
religion, or nationality.
o Example: Google introduced strict anti-harassment policies after employee
protests in 2018.
4. Fair Dealing and Avoidance of Conflict of Interest
o Employees must not use their position for personal gain or make biased
decisions.
o Example: Coca-Cola requires disclosure of any financial or personal interests
that may influence decision-making.
5. Confidentiality and Data Protection
o Sensitive company, customer, and employee information must be protected.
o Example: Apple enforces strict confidentiality rules to protect its product
designs and customer data.
6. Corporate Social Responsibility (CSR) and Sustainability
o Organizations should operate ethically with respect to society and the
environment.
o Example: Unilever’s "Sustainable Living Plan" reduces carbon footprint and
promotes fair trade practices.
7. Accountability and Transparency
o Decisions must be transparent, and employees should take responsibility for
their actions.
o Example: Satyam Scam (2009) highlighted lack of accountability; after that,
SEBI required stricter disclosure norms.
8. Fair Competition and Anti-Bribery Practices
o Companies must compete ethically, without corruption, bribery, or unfair
practices.

20. o Example: Siemens AG implemented a strong anti-bribery code after being fined
in a global corruption scandal.
9. Whistleblower Protection
o Employees should feel safe reporting unethical behavior without fear of
retaliation.
o Example: Wipro has a whistleblower policy allowing employees to report
misconduct anonymously.
Importance of a Corporate Code of Conduct
• Promotes trust and reputation among stakeholders.
• Prevents legal issues and scandals.
• Ensures long-term sustainability and ethical culture.
• Guides employees in difficult ethical decisions.
Hence, a Code of Conduct acts as a moral compass for an organization. By embedding values
like honesty, compliance, fairness, respect, accountability, and sustainability, it prevents
misconduct and strengthens corporate ethics.
MANAGERIAL LEADERSHIP VALUES
Managerial leadership values are the set of ethical principles, beliefs, and moral standards
that guide how managers and leaders influence, motivate, and direct their teams toward
organizational goals. These values shape the decision-making style, behavior, and
relationships of leaders with employees, customers, and stakeholders.
In simple words: They are the moral compass that managers use to lead people fairly,
responsibly, and effectively.
Key Managerial Leadership Values:
1. Integrity – Being honest and consistent in words and actions.
2. Accountability – Taking responsibility for decisions and outcomes.
3. Respect – Valuing employee dignity, diversity, and contributions.
4. Fairness – Making impartial and just decisions without bias.
5. Empathy – Understanding and considering the feelings and needs of employees.
6. Commitment – Dedication to organizational goals and team success.
7. Transparency – Open communication about policies, goals, and challenges.
8. Service Orientation – Leading with the mindset of serving employees, customers, and
society.

21. 9. Innovation and Learning – Encouraging creativity and continuous improvement.
10. Sustainability and Responsibility – Balancing profits with social and environmental
well-being.

VALUES OF MANAGERIAL LEADERSHIP
Values of managerial leadership are the fundamental beliefs, principles, and ethical
standards that guide how managers and leaders influence, motivate, and direct their teams
toward achieving organizational goals.
In simple words: They are the moral compass of leaders that shape decision-making,
behavior, and relationships in business.
CORE VALUES OF MANAGERIAL LEADERSHIP
1. Integrity
• Meaning: Being honest, ethical, and consistent in actions.
• Application in Business: Builds trust with employees, customers, and stakeholders.
• Example: Ratan Tata is known for integrity; Tata Group refused to bribe officials even
when it cost them business.
2. Accountability
• Meaning: Taking responsibility for one’s decisions and results.
• Application in Business: Leaders admit mistakes and correct them instead of blaming
others.
• Example: Satya Nadella (Microsoft CEO) accepted failures in some projects and
pushed for learning from them, which improved innovation culture.
3. Respect for People
• Meaning: Treating all employees with dignity, fairness, and equality.
• Application in Business: Encourages teamwork and diversity.
• Example: Infosys promotes inclusivity and respects employee well-being through fair
HR practices.
4. Fairness & Justice
• Meaning: Making impartial decisions without bias or favoritism.
• Application in Business: Promotes merit-based promotions and ethical dealings.

22. • Example: Google revised pay and promotions policies after employee protests to
ensure fairness.
5. Empathy & Compassion
• Meaning: Understanding and caring for the needs of employees and customers.
• Application in Business: Builds loyalty and morale.
• Example: During COVID-19, HCL Technologies supported employees with healthcare,
remote work, and counseling.
6. Commitment & Dedication
• Meaning: Staying devoted to organizational goals and team success.
• Application in Business: Leaders inspire employees to achieve excellence.
• Example: Elon Musk’s dedication at Tesla motivated teams to push boundaries in
electric vehicles.
7. Transparency
• Meaning: Open communication and clarity in decisions.
• Application in Business: Builds trust and reduces rumors/conflicts.
• Example: Unilever openly shares sustainability goals and progress reports with
stakeholders.
8. Innovation & Learning
• Meaning: Encouraging creativity, adaptability, and continuous learning.
• Application in Business: Ensures competitive advantage in fast-changing markets.
• Example: Apple fosters innovation by empowering employees to think differently.
Hence, the values of managerial leadership—integrity, accountability, respect, fairness,
empathy, commitment, transparency, and innovation—are essential for building trust,
motivating employees, creating customer loyalty, and ensuring long-term success.
REFERENCES
▪ Indian Ethos in Management – Wikipedia
https://en.wikipedia.org/wiki/Indian_Ethos_in_Management Wikipedia
▪ “Indian Ethos for Management: an Analytical Study” (Journal article)
https://journal.iujharkhand.edu.in/Nov2017/Indian-Ethos-for-Management-An-
Analytic-Study.html IJU Journal
▪ MBA Knowledge Base: Indian Ethos for Modern Management
https://www.mbaknol.com/business-ethics/indian-ethos-for-modern-management/
MBA Knowledge Base

23. ▪ Indian Ethos – Himadri Barman (PDF on principles of Indian Ethos)
https://himadri.cmsdu.org/documents/indianethos.pdf Himadri Barman
▪ Panch Siddhanta: Five Principles of Indian Ethos & Indian Management
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3210955 SSRN
or available via ResearchGate:
https://www.researchgate.net/publication/320009561_Panch_Siddhanta_Five_Princip
les_of_Indian_Ethos_and_Indian_Management_Towards_Vedanta-In-Practice
ResearchGate
▪ Indian Ethos in Management – Management CessEdu
https://management.cessedu.org/indian-ethos-management-0 Prabandhan
▪ Scandal at Satyam: Truth, Lies and Corporate Governance (Wharton / UPenn)
https://knowledge.wharton.upenn.edu/article/scandal-at-satyam-truth-lies-and-
corporate-governance/ Knowledge at Wharton
▪ A Review on Satyam Computer Failure: Lessons for Corporate Governance (SSRN /
academic)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3370291 SSRN
▪ Unethical Creative Accounting Culture at Satyam – Case Study (ResearchGate)
https://www.researchgate.net/publication/305210546_Unethical_Creative_Accountin
g_Culture_at_Satyam_Computers_Limited_A_Case_Study_of_India%27s_Enron
ResearchGate
▪ Reporting misdemeanors in the workplace – Article on whistleblowing & its role
https://www.sciencedirect.com/org/science/article/pii/S1754273121000032
ScienceDirect
▪ CGBE Corporate Governance & Business Ethics (PDF)
https://ncas.nirmalacollege.edu.in/frontend/web/NAAC/C1/1.3.1/PROFESSIONAL_ETH
ICS.pdf ncas.nirmalacollege.edu.in