Morality and Ethics in Corporate World

7/29/2019 Morality and Ethics in Corporate World

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Morality and Ethics in Corporate World

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Introduction:

In todays world of development the company form of

organisation is said to be the most beneficial one and after availing

the development how to sustain the same is of much significance.

Two important principles that could help one sustain the same are

Morality & Ethics.

Defination:

Morality :

It is differentiation of intentions, decisions and actions

between those that are good and those that are bad.

Ethics :

It is a branch of philosophy that involves systematizing,

defending, and recommending concepts of right and wrong

conduct.

So in order to develop an organisational structure that has a

strong resistivity in the competitive edge, it must have the above

said to principles at its base.Although morality and ethics have no major point of

difference among themselves. The word ethics has the word

ethos which means character at its root whereas the word

mos which means customs is at the root of Moral. Although


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there is not much difference between the words moral & ethics we

can have a good point in differentiating character & customs for

deriving at what is good and what is bad.

Many people have misconception that ethics is based on

religion but what is ethics is not defined in any of the religion but

is what an individual has in his/her mind and what he thinks about a

particular thing and classifies it into either good or bad.

We still could make out a small point that philosophy in

morality is ethics that is, morality can be derived out of ethics.

Therefore ethics can be considered as the parent of morality.

Talking about morality and ethics in the context of a

corporate world, it is must that a company that has development of

themselves and the development of the country as its final mission

it is surely got to have Morality and Ethics as is Milestone.

In todays world economy there are many companies who claimthat their morals and ethics are strong enough so as to guide the

entire organisation and the nation as well.

The principle of trusteeship as defined by Mahatma Gandhi is

a businessman has to act only as a trustee of the society for

whatever he has gained from the society. Everything finally

belongs to the society. Therefore it is the duty of all the business

entrepreneurs and the corporate entities to inculcate the feelingof returning the society what they want and in all the ways as is

desirable.

Arguments in favour of business ethics:


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1.Ethics helps to promote a strong public image :

An organisation that pays attention to its ethics can portray a

strong and positive image to the public. People see suchorganisation as valuing people more than profit and striving to

operate with the integrity and honour.

2.Strong teamwork and greater productivity :

Ongoing attention and dialogue regarding values in the workplace

builds openness, integrity and community, all critical ingredients of

strong teams in the workplace. Employees feel a strong alignmentbetween their values and those of the organization resulting in

strong motivation and better performance.

3.Improved society :

A few decade ago, children and workers were ruthlessly exploited.Then society reacted and demanded that businesses place high

value on ethics, fairness and equal rights resulting in framing of

anti-trust laws, establishment of government agencies and

recognition of labour unions.

4.Easy acceptance of change :

At times when the organization has to change because of thechange in the way a society works ethics works out to be good

guiding compass so as to guide the entire organisation the entire

cycle of change.


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5.Ethics can help reduce criminal acts of omission and thus helps

the entity reduce the amount of fines that it is required to pay in

case there are no ethical principles in the organisational structure.

6.Ethics help managing values associated with the entire

organisation :

With the help of the ethics at the base of the organisational

structure the business entity is surely going to face less issues

relating to fluent business administration and will surely help

solving business related problems at a faster speed. And thus add

into the success of the entire organisation and as said by gandhiji

to the entire society as well.

Arguments against business ethics:

1. Wastage of money and resources :-

The business structure and the organisation has to deal with many

other peoples and entities such as suppliers, customers,

government and many other also who will surely like that the

business entity with whom they deal with has a good moral andethical values so as to entertain good relationship with that

business enterprise so as to have a good overall image and thereby

add to the success of the organisation and also to the individual

knowledge and success.


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2. Misconception regarding ethics :

Many a times peoples have a misconception in their mind that

ethics are based on different religions and has to be the same inall the people of same religion but it is not the same. The ethics as

discussed above is what an individual thinks is good or bad and how

he classifies a particular thing into good or bad. Which as per the

scientific terminology is what different between all the peoples of

the society and there are very less chances of the said being the

same therefore there is a misconception which discourages ethical

principles and ethical people.

3. Attitude of peoples :

The attitude of the people in common parlance is what hinders the

person who are already thinking in the correct direction and thus

discourages such persons in the society and therefore the

progress of the society in the correct manner restricts resulting

into bad management of an enterprise or an organisation whichwould further result into flaws in the management framing

achievable objectives and achievable targets which the enterprise

has the capabilities achieving.

Coming to the monetary benefits that a business organisation

will get by the way of following good moral & ethical values so as to

get the organisation at its base are as follows:Loyal customers :

The organisation that runs its daily managerial activities by some

pre defined ethics and morals will have the customers who would


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like such characteristics and such principles because such factors

are liked by each and every type of human beings which would thus

result into loyalty among the society.

Easy achievement of the predefined targets:

The ethics and morality among the organisational environment

would surely result into making loyal customers and thereby making

a targeted sector of the economy who are always there to help you

in achieving the enterprises objectives and goals.

Easy targeting of new market segments :

The ethics of the organisation if liked by each and every people of

the society than it will automatically result into easy targeting of

the market segment which already has another competitor working

out there.

Good source of advertisement :

It is always said that there is no other best source of marketing

and advertisement as the source of mouth publicity. Talking about

mouth publicity it is the type of advertisement where the current

customers of the organisation do the publicity by appreciating out

qualities to other customers and other segmentd of the market.

Extra quality :

The organisation that works by keeping ethics and moral as its

pillars will surely have an upper hand over other organisations in

the same filed or segment of the market thus helping us

generating a good surplus over what other organisations in the


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same field. Which would thus result into a good awareness among

the society thereby creating good amount of extra qualities

incomparison to other organisation of the society.

Building confidence in the employees :

The employees if such organisation would stay ahead of all the

employees of the other enterprise and thus would generate a good

amount of confidence in them because of the superiority they have

in comparison to other organisations.

There are several other advantages over and above the onesmentioned herein above which would be adding like a feather in the

hat or like adding a cherry on the cake.

Remedial measures so as to ensure accurate working on ethics:

Independent director :

In the current companies bill 2012, which was presented andpassed in the lok sabha had insertion of a new provision which

stated that every company has to have one independent

organization. who would work independently and the one who would

be having no influence on the others and also on the working of the

organization.

The above mentioned provision was inserted so as to ensure

that each and every corporate form of organisation has a person

who is there to ensure accurate and best way of working and

running the organisation.


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The main reason for such provision is although for a whole lot

of new problems being faced by the organisation we can surely say

that one reason for introducing such provision is so as to ensure

proper functioning of the organisation in an ethical and based onsome moral principles as are framed by the organisation and easy

achievement of such targets and objectives.

The director of the organisation is as per the rules of this

provision required to have one director who works completely

independently and for the betterment of the organisation and not

as all the other directors do in conformity so as to ascertainfulfilment of the organisational targets and goals.

The duties and rights of such management representative is

already underlined and predefined as per the provisions of the

companies act 1956 which will maintain the code of conduct of such

independent directors resulting into better control over the

management procedures of the organisation and better and easier

fulfilment of its targets.

Creation of committee who works on ethics only :

The organisation really needs a committee who has the work

of framing the ethical principles and seeing to it that the same

have been and are being followed by the management so as to

ensure a good working of the organisational structure and anexcellent accomplishment of the institute and enterprise as well.

Thus a committee which has maintenance of the ethical

principles and morals are a must for the organisation so as to

ensure utilisation of the resources and securing optimum and the


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best possible position for the entire organisation and for the

society as a whole.

Insertion into the object clause :The organisation must have a clause inserted into its object

clause of the memorandum of organisation and articles of

association so as to ensure that object of the organisation is

fulfilled along with all the ways which are ethical and moral so as to

ensure the successful working and successful management of the

organisation and attain the targets as are pre determined and easy

management of the same.

Therefore we can conclude that if proper steps have been

taken by the business enterprises and if appropriate actions have

been taken properly than the organisation is surely going to

flourish in its daily functioning and will surely have a long term

benefit which no other organisation would be having.

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Morality and Ethics in Corporate World

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