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BBA 1st Year Business Ethics Gandhian Philosophy of Wealth Management Short Question Answer

equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness

In other words, they are relating indisputable, external, observable, natural, unquestjona self-evident laws: “We hold these Truths to be self-evident” The key to a healthy society is to get the social will, the value system, aligned with correct principles. You then have the compass needle pointing to true north – true north representing the external or the natural law – and the indicator says that it is what we are building our value system on : they are aligned.

But if you get a sick social will behind the political will that is independent of principle, you could have a very sick organization or society with distorted values. For instance, the professed mission and shared values of criminals who rape, rob and plunder might Sound very much like many corporate mission statements using such words as “teamwork” “cooperation,” “loyalty,” “Profitability,” “innovation,’ and creativity” The problem is that their value system is not based on a natural law.

Figuratively, inside many corporations with lofty mission statements, many people are being mugged in broad daylight in front of witnesses. Or they are being robbed of self-esteem, money, or position without due process. And if there is no social will behind the principles of due process, and if you can’t get due process, you have to go to the jury of your peers and engage in Counterculture sabotage.

In the movie 1’en Commandments”, Moses says to the Pharaoh, “We are to be governed by God’s law, not by you” In effect he’s saying, “We will not be governed by a person unless that person embodies the law. In the best societies and organizatjo5 natural laws and Principles govern – that’s the Constitution – and even the top people must bow to the principle. No one is above it.

Q.1O. Write a short note on “Indian corporate leaders and trusteeship”.

Or What L Philosophy of trusteeship? (2013)

Ans. Indian Corporate Leaders and Trusteeship: One of the most inspiring examples of corporate trusteeship, in modern times, comes from Infosys, particularly from its former CEO and current chief mentor, Narayana Murthy. His rationale for creating this company along with a small group of people (better sharing of wealth in society), the involvement of employees in the company’s fortunes (through ESOPs) and his contentment with a mere 7% of company stock (he prefers it that way) reflect a deep-rooted commitment towards trusteeship. Other notable examples include the house of the Tata’s with their Corporatjzed initiatives for socio-corporate benefits; the “WIPRO Cares” Foundation, with a targeted corpus of Rs 100 crore for primary education; and the Birla foundation with its focus on socio-economic improvement in the lives of the people touched by the corporation. The possibility of feel-good exercises induced with an eye on the bottom-line cannot be ignored. Yet, corporate meeting rooms are increasingly discovering a match between the long-term interests of the company and their Willingness to expand their focus to all categories of stakeholders. As the roles of wealthy CEOS and influential Policy-makers continue to gain public scrutiny, the question that management must Periodically ask themselves is: Does our existence lead to any benefits for the society?

Q.11. Give the guidelines for dealing with ethical dilemmas.

Ans. Following are the guidelines that can help a manager to deal with ethical dilemmas:

(1) Do you think it is right? (Don’t worry about legal status. Every thing which is legal is neither always ethical nor is every ethical decision always legal. Ethics transcends legality.

(2) Is it beneficial?

(i) To whom?

(ii) How much?

(3) Is it harmful?

(i) To whom?

(ii) How much?

(You should not be considering your own benefit/harm. You are out of this benefit/loss calculation. Ethics are profit/loss neutral as far as you are concerned. When in dilemma, it is about people around you).

Further Guidelines for Dealing with Ethical Dilemmas:

(1) Would you be willing to allow others to do what you are considering?

(2) Would you like your family to know?

(3) Would you like your decision printed in the newspaper?

(4) Have you consulted others who are objective and knowledgeable?

Ethical Responsibilities : To be ethical, an organization should seek a higher standard than merely obeying the law:

(1) Act with equity, fairness, and impartiality.

(2) Respect the rights of individuals.

(3) Act for the common good.

Q.12. Give a brief note on stakeholders’ theory.

Ans. Stakeholders’ Theory : Loyalty and psychological contract and cultural relativism in stakeholders theory is a diametrically opposite view of Friedman’s theory of 1970. Friedman thought that “social responsibility” was some kind of mask for socialism, and called it a “fundamentally subversive doctrine in a free society” and has said that “in such a society, there is one and only one social responsibility of business —to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game”. In contrast stakeholders theory basically recognizes that the corporation has some duties in relation with groups other than stockholders (Freeman, 1997). However, the theory faces groups’ claims. Besides this, different groups are in different positions to defend their interests; therefore, balancing their claims seems to be a major difficulty. Despite its problems, the stakeholders theory has helped to communicate the idea that big corporations are not allowed to ignore the present historic circumstances, because their actions have enormous impact on the entire society.

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