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Chapter 16

The document discusses the challenges faced by Indian corporations in maintaining ethical standards, highlighting obstacles such as company policies, an unethical industry climate, and government corruption. It outlines various unethical practices prevalent in India, including bribery and insider trading, while emphasizing the importance of ethics for credibility and better decision-making. Additionally, it references the managerial ethos of Indian tradition and its potential to guide ethical behavior in organizations.

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5 views12 pages

Chapter 16

The document discusses the challenges faced by Indian corporations in maintaining ethical standards, highlighting obstacles such as company policies, an unethical industry climate, and government corruption. It outlines various unethical practices prevalent in India, including bribery and insider trading, while emphasizing the importance of ethics for credibility and better decision-making. Additionally, it references the managerial ethos of Indian tradition and its potential to guide ethical behavior in organizations.

Uploaded by

mrfrankcastleisback
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

PART 3: Creating an Ethical Organization

Chapter 16: Ethics and Indian Business

(Refer: Chapter 13 of Textbook)


Corporations in India cannot afford to be ethical
Three major obstacles to ethical behaviour (Arun Monappa,1977)

Company policies

Unethical Industry climate

Corruption in government
Corporations in India cannot afford to be ethical
The other factors affecting ethical dilemmas of Indian corporations are:
 socio-cultural factors such as the sense of hospitality (not inviting a business associate could be
construed as impolite; and once invited, showering him or her with gifts is an accepted custom) and
reciprocity
 the psychological fear of losing jobs
 lax government structures and regulations
 sanctions and discriminations in a society uncertainties and fears about the future
 strong family traditions and laws of inheritance in which parents want to leave substantial assets to
their progeny
 overall scarcity of resources and the difficulty of amassing wealth through normal and legitimate
means
 an inequitable and scorching tax system (almost an unbelievable 97.75 per cent in terms of both direct
and indirect taxes at the highest bracket in the 1960s and 1970s) which discourage hardworking and
honest tax-payers and lead them to bribe tax-collectors;
 a belief that business and ethics are irreconcilable
 a tendency to adopt an easy option when confronted with difficult ethical choices
Unethical Issues in India
 Bribery
 Corruption
 Black Money
 Coercion
 Insider trading
 Tax evasion
 Conflicts of interest
 Pollution
Why should Indian business be ethical?
 Ethics responds to the best in us
 Values create credibility for the company with the public
 Values give management credibility with its employees
 Values help better decision making
Some questionable business practices
 Software piracy
 Nepotism
 Sharing of insider information
 Gift-giving
 Power distance
 Export of hazardous goods
 Firing of older employees
 Marketing unhealthy products in domestic markets
 Injury to environment
 Dishonesty in advertising
 Marketing unhealthy products
 Padding expense accounts
Managerial ethos of Indian Tradition : Levels of ethical focus
 Traces economic organization and managerial ideas from Ancient Indian
sources
 Levels of ethical focus in Indian traditional wisdom literature

Furthur reading: 37. Managerial ethos of Indian Tradition


Managerial ethos of Indian Tradition: Behavioural anchors in
organizational life

Furthur reading: 37. Managerial ethos of Indian Tradition


Level of guna dynamics in organizations

Furthur reading: 37. Managerial ethos of Indian Tradition


Managerial ethos of Indian Tradition: Seven Pillars of wisdom
 Traces economic organization and managerial ideas from Ancient Indian
sources

Furthur reading: 37. Managerial ethos of Indian Tradition


Managerial ethos of Indian Tradition: Holistic Ethical framework
based on the Indian tradition

Furthur reading: 37. Managerial ethos of Indian Tradition

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