Ethics: Its Relation with Indian Scriptures and Busines Essay Example
Ethics: Its Relation with Indian Scriptures and Busines Essay Example

Ethics: Its Relation with Indian Scriptures and Busines Essay Example

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  • Pages: 11 (2986 words)
  • Published: March 9, 2017
  • Type: Essay
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The topic of "Business ethics", which has long been relegated to the background in business literature and educational syllabi, has recently begun to rise in prominence. The term "ethics" was once dismissed as nonessential by business enthusiasts, but its discussion is now often viewed as crucial to a company's prosperity. Up until the 1990s, business ethics were perceived by Indian corporations as nothing more than a branch of charity.

Despite significant charitable contributions from major corporations such as the Tatas and Birlas, it wasn't until the arrival of multinational corporations (MNCs) in India that the concept of business ethics expanded beyond philanthropy. The term 'ethics' originates from the Latin 'ethicus' and Greek 'ethikos,' both implying character or manners. This can be further extrapolated to express the process of organizing, advocating, and establishing right and wrong conduct principles. Therefore, ethics could be

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characterized as the study of morality, ethical principles, and acknowledged behavior rules.

The actions or behaviors of an individual often reflect their character. These behaviors can be grouped as 'good' or 'evil'; 'right' or 'wrong'; 'moral' or 'immoral'. They may also fall under amoral, suggesting they disconnect from the realm of morality. Consider a gas station owner whose business involves selling gasoline and diesel for profit; this could be characterized as amoral behavior. But if he dishonestly blends gasoline with kerosene to sell to customers, such conduct is deemed immoral. Hence, labels like ‘right,’ ‘wrong,’ ‘moral,’ and ‘immoral’ are recognized as moral assessments.

Ethical judgments necessitate ethical norms that measure human behavior. Therefore, ethics can be described as 'the study of an individual's character shown through correct or incorrect behavior or action. Philosophers perceive ethics as a

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system of moral guidelines and the processes for implementing them. It concerns values connected to human behavior in terms of the correctness and incorrectness of specific actions and the positivity and negativity of the motives and goals of such actions. Others view evolving ethical beliefs as a 'State of Act' (legal issues), meaning what is considered an ethical norm today frequently becomes a law or regulation.

The term business refers to a fundamental economic entity used by individuals in contemporary societies for the production and distribution of goods and services. It also involves the application of moral considerations, known as business ethics, to various business endeavors. The intersection of ethics and profitability is where business ethics asserts that a business can be both profitable and ethical. However, until the previous decade, this concept was challenged. As businesses grew, so did the necessity for ethical conduct, leading to the increased importance of practicing business ethics.

Nowadays, there's an increasing emphasis on the implementation of moral practices in business transactions and the ethical influence of business choices. Humans possess the capacity to make decisions. When offered a choice between good and bad or right and wrong, a person selects one choice by discerning among the presented alternatives. This idea applies to businesses too, as businesses are run by people, they should be capable of distinguishing between ethical and non-ethical decisions in the operations.

Hence, companies also possess options or different paths, like prioritizing profits, boosting sales volume, offering benefits to employees, and showing consideration for society. However, profit-earning and social responsibility might not be able to exist hand in hand at certain times. The reason being, entrepreneurs might ignore their

social obligations in the pursuit of profits. For instance, a chemical company motivated by profits may delay its investment in social welfare initiatives such as Effluent Treatment Plant (ETP), despite the fact that industrial waste left in the environment is detrimental to public health.

Thereby, it proves challenging to optimally enhance both financial gains and social duty. This circumstance leads to a management issue. Managers find themselves in the position of having to select between the company's profits and societal considerations. Occasionally, companies struggle to justify their actions from an ethical perspective. For example, a bank's choice to digitize its services for immediate quality customer service can result in clerical roles becoming obsolete. The ethical response is job relocation or retraining for alternate job roles.

In order to prosper and maintain longevity, any company must find an equilibrium between its societal responsibilities and financial goals. These responsibilities might be multifaceted and expensive to fulfill. However, for the corporation to uphold ethical standards, it needs to meet its societal obligations grounded on ethical theories. Various theories that are regularly mentioned in ethical discussions include: 1. Ethical Subjectivism - The moral appropriateness of a decision is often contingent on the situation of the individual making it.

While sharing identical ethical norms, two people may perceive distinct choices as suitable, provided their respective situational environments vary. Ethical subjectivism posits that an individual's notions of ethical rightness or wrongness are contingent on the ethical precepts they adopt. Essentially, to adherents of ethical subjectivism, ethical correctness or incorrectness is purely personal. The drawback of this standpoint is its lack of limiting criteria concerning the forms of ethical principles a person can select.

Though

individuals may adhere to their chosen principles, it doesn't necessarily mean that these principles carry an ethical backbone. In order to establish the ethicality of one's beliefs, they should be substantiated with rationalizing that can endure public examination. At this point, ethics moves beyond being a mere personal affair. Secondly, proponents of ethical relativism posit that there isn't a universal moral code applicable everywhere. Each society creates its own moral framework, rendering any comparisons between the ethics of different societies incongruous.

In the same way that subjectivists are unable to critique the behaviours of others, relativists cannot judge the actions of societies different from their own. This belief system held by relativists eliminates the chance for cross-cultural dialogues on moral matters. In their view, the sole viable forms of ethical engagements between nations and societies are through tolerance or conflict. However, what relativism overlooks is the potential existence of substantial evidence suggesting that a moral custom might be founded on incorrect beliefs, flawed logic, etc.

It is crucial to voice objections against certain practices, even when they are relevant to a different community. Consequentialism encompasses two key notions - the rendering of importance to a value and its maximization. As an illustration, if happiness is judged as a core value, then an action is deemed ethical only when it amplifies happiness. An activity that fails to foster happiness is not morally justified. Move to the philosophy of virtue ethics, it accentuates individual characteristics. It investigates those attributes that promote better, virtuous lives for individuals from a moral implication perspective. Actions based on virtues are performed deliberately, not accidentally.

Furthermore, actions reflecting virtue are not pursued for selfish

gains or to yield maximum pleasure. Virtues such as bravery, acceptance, kindness, and truthfulness are among a few examples. Moral education holds immense significance as it aids individuals to become virtuous through instruction and imitation of virtuous personas. Institutions like family, religious bodies, educational facilities, along with other legal and societal entities play a crucial role in imparting virtue enabling the teaching of virtues. Ethical guidelines are just as significant in this context.

Hence, it's crucial to take into account both virtues and ethical principles concurrently. We could argue that individuals possessing virtues but lacking ethical principles can be seen as ethically inept, while ethical principles devoid of virtuous individuals are hollow. 5. Ethical quandaries in business Ethical dilemmas provide a problem for managers as they typically denote a clash between a corporation's financial success and its social responsibility. For any corporation, social responsibility encompasses various duties like safeguarding employment and controlling pollution.

Due to the significant costs that might be associated with undertaking these responsibilities, institutions frequently find it impractical to overlook them. As a consequence, they commonly fixate on financial outcomes, gauged by revenue, expenses, and profits. Therefore, fostering a constructive outlook towards conflict resolution is vital. Since an enterprise is managed by individuals, confirming ethical conduct at a personal level is critical. Only then can the entirety of an organization's response be morally acceptable through the combined actions of its members.

Owing to its increasing importance, the topic of business ethics has garnered substantial attention. The necessity for this study is propelled by the fact that all businesses thrive within societal boundaries and thus, should play a part in ensuring societal welfare. In order to

retain their market presence, businesses need to earn the loyalty of their customers and fulfill their social responsibilities. The increase in a business's size draws more public attention due to its significant influence on the community. Consequently, company managers strive to uphold a positive company image in the perception of the public.

The belief suggests that companies, regardless of size, must adhere to ethical practices and fulfill their societal responsibilities in order to sustain long-term. Critics argue that as economic bodies, businesses should not concern themselves with ethical or moral matters. Certain specialists maintain that a business' primary goal is to create products and services and maximize shareholder profits. They argue that economic guiding principles are what determine business performance.

The current study strives to examine business ethics through the prism of Indian scriptures and their relevance in the commercial world. Indian Scriptures have often been a conduit for business ethics in a country like India, which is recognized for its strong values and moral code. This diverse nation is a melting pot of numerous religions, cultures, languages, belief systems, and social backgrounds. It can be observed that numerous ancient scriptures, penned by legendary figures from various religious inclinations, convey similar ideologies. All their teachings and writings serve as a roadmap for "Effective and Ethical Management" in the contemporary world, where the central objective becomes "making profit" at any cost. In this environment, where the common perception is that one can either be ethical or conduct business; these lessons from sacred texts and other scriptures present an apt rebuttal, indicating how Ethics and Business can coexist harmoniously.

1. The Ramayana: It's not hard to draw parallels between

modern management principles and Lord Rama's teachings from the 'Ramayana'. Lord Rama epitomizes the concept of "value-based leadership". His approach to handling challenges provides valuable lessons for managers. When questioned by Vibhishana about defeating a vast army with limited resources, he uses the metaphor of a chariot.

In his analogy, the chariot's four wheels represent character, courage, ethics, and valor, while the four horses symbolize zeal, power, vitality, and enthusiasm. The reins of the chariot - forgiveness, empathy, consistency, and balance - control these attributes. Further, tools like knowledge, strategy, intellect, skills, dedication, and ego restraint act as weapons that can lead us to victory in any conflict. Thus, emotional intelligence that encapsulates all these elements is seen as the key to overcome any opposition.

It's essential to remain uniform in your dealings with various individuals, regardless of their identity or background. The Ramayana presents examples of effective and ineffective leadership through characters like Rama, Sugriva, and Vibhishana. An efficient leader, like Rama or Sugriva, can even get his adversaries to cooperate, as demonstrated by Angad (who, despite being son to a rival defeated by Rama), contributed in combat. This exemplifies superior management skills. In contrast, an ineffective leader like Ravana consistently disregarded advice from his own team members, inclusive of Vibhishana, resulting in the loss of the battle and his reign.

The modern management principles can be seen in various aspects such as the "High Motivation" that Jamvant offers to Hanuman when he forgets his abilities; the "SWOT Analysis" done by Hanuman in assessing the strengths, weaknesses, opportunities, and threats of the Lankan army when he was entrusted with delivering Rama's message to Goddess Sita. Furthermore, the

"Strategic Alliance" between Lord Rama and Sugriva reflects contemporary teamwork where Rama aids Sugriva in restoring his lost kingdom, while Sugriva assists by providing resources and in the search for Sita and the conquest of Ravana.

Companies operate based on relationships, and this is depicted by Lord Rama in the Ramayana, demonstrating that a manager who is capable of fostering positive relationships with staff, clients, and all those the organization interacts with, can achieve incredible success for the business. Similarly, The Holy Quran also establishes guidelines and frameworks for achieving predetermined outcomes. It provides several ayats that give guidance on how to implement ethical principles in modern business operations. The fundamental requirement is to display obedience and respect towards authority.

People entrusted with a responsibility must comply with all lawful and sensible instructions and execute their jobs properly, as directed by the Holy Quran in this verse: [4:59] 'Follow Allah, His Messenger, and those in authoritative positions among you. The significance of "collective deliberation" and "collaborative effort" is also highlighted by the Quran. As indicated in the subsequent verse: [3:159] 'overlook (their shortcomings), and plead for (God's) mercy for them: and involve them in matters (of importance).

After making a decision, put your trust in God. It is widely recognized that God favors those who have faith in Him. Moreover, the Holy Quran introduces the idea of "equal opportunities", akin to modern management techniques which uphold that every individual within an entity should be granted equal chances for development, participation, and rightful compensation. This concept is further emphasized in this verse: 'O mankind, we have created you from a single pair of a male and female, and made

you into nations and tribes that you may identify one another'.

Truly, from Allah's perspective, the most esteemed individual is the one who exhibits the greatest "righteousness". Moreover, pertaining to the "Elimination of wastage", Quran verse [17:26] articulates: 'Allocate rightful dues to your kinfolk, the needy, and wayfarers. Nonetheless, refrain from squandering resources - be they money, time, health, skills or prospects - like a spendthrift. The Holy Bible also emphasizes that comprehending what constitutes right and wrong behaviors forms the foundation of corporate ethics alongside demonstrating respect for stakeholders.

Business Ethics are greatly influenced by the doctrines of Jesus Christ and the Ten Commandments as conveyed in the Bible. This can be evidenced through certain Biblical passages. The verse, "Do unto others as you would have them do unto you", teaches businesses that they must interact with their stakeholders, through their business actions, with the same level of dignity and honesty that they would want reciprocated. "Love your neighbor" is another directive, where neighbors, in a business context, are construed as individuals working within the organization and hence regarded as the nearest "neighbors" of the business.

In this context, 'love' denotes the foundation of a familial, culturally-rich environment that many companies aim to create in their offices. Successful businesses owe their achievements to the ethical relationships established with their staff. Commandments like "Thou shalt not bear false witness" and "Thou shalt not steal" allude to the significance of honesty and trust. Scholars unanimously emphasize these values as crucial in forging business relationships. The criticality of honesty extends to various business aspects such as advertising, marketing, and finance.

Furthermore, the influence of the Bible on corporate ethical standards is

largely dependent on the leadership within an organization. It's not just about integrating moral principles into the firm's code of conduct, but also making certain that these values are continually implemented. 4. The Bhagavad Gita: This sacred text encapsulates the philosophies, teachings, and virtues imparted by Lord Krishna to Arjuna during the war of Mahabharata.

The Bhagavad Gita thoroughly examines contemporary business notions like vision, leadership, motivation, work excellence, goal realization, comprehension of work's core essence, work ethos, individual traits, decision-making and planning. A prime illustration of this is the choice presented to Duryodhana and Arjuna between Lord Krishna's vast army or his wisdom; with Duryodhana selecting the former and Arjuna favoring wisdom. This highlights the concept that in terms of "resources", it is crucial for a manager to wisely choose and optimally utilize them as exemplified by Arjuna.

The Gita imparts valuable knowledge on the concept of "dedication to duty" via the principle of detachment. It explains that our focus on potential rewards may detriment the quality of our current tasks due to anxieties about the future. This is encapsulated in the well-known Shloka 47 from chapter 2 in the Bhagvad Gita, ("Karmanya Vadhikaraste ma phleshu kadaachan, / ma Kampala heturbhrma te sango astav akamani") which advises that one should only concern themselves with carrying out their responsibilities, not with the outcomes or results.

Sri Krishna in Chapter 16 of the Gita, states that the outcome of your actions should not be the driving force behind them and you should not abstain from acting. He elaborates on two types of work ethics. The first being daivi sampat or divine work culture, which embodies values such as fearlessness,

purity, self-discipline, sacrifice, honesty, self-denial, serenity, non-critical mindset, non-greediness, gentleness, humility, and lack of envy and arrogance. On the other hand, asuri sampat or demonic work culture represents traits like egotism, confusion, desire-driven actions, inappropriate execution of tasks and work that lacks a service-oriented approach.

The core idea stresses that simply possessing a strong "work ethic" is insufficient, using the example of a hardened criminal who might also have an impressive work discipline. The focus should be on a "work ethic" shaped by "ethics at work". This point echoes Henry Fayol's principle, "putting collective interest above personal interest", which is beautifully reflected in Shlokas 31-38 of Chapter 2 where Lord Krishna instructs Arjuna to battle "not for personal gains or gratification, but for the benefit of many".

Krishna assures that individuals who carry out good deeds never ultimately face sorrow, commenting on transient setbacks, "No benefactor ever culminates in distress". All actions yield consequences; positive actions generate favorable results, while negative ones only spawn negativity. Hence, individuals should consistently behave virtuously for deserving rewards. Besides aiding people in self-realization, the Gita extols Karma – implying that the human effort in action (Karma Yoga) surpasses the abdication of action (Karma Sanyasa).

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