Indian Ethos & Business Ethics

UNIT 1

Prof. Sujeet Subhash Tambe

B.E(Chemical), M.M.S(Operations),
UGC-NET(Management), SET(Management), Ph.D (Pursuing)

Navsahyadri Group of Institutes, Faculty of Management – MBA

Savitribai Phule Pune University
 Ethos
Oxford defines ethos as :

“The characteristic Spirit and Beliefs of

community/ people” which distinguishes one
culture from the other.
Indian ethos is drawn from the Vedas, the
Ramayana, Mahabharat, the Bhagwadgita, and
Upnishads.
Ethos vs. Ethics

Ethos is a discipline that examines one’s morality or the

moral standard of the society.
Where as ;
Ethics means expected standards in terms of your personal
and social welfare. It includes honesty, morality,
responsibility etc.
Indian Ethos in Management

'Indian Ethos in Management' refers to the values and

practices that the culture of India (Bharatheeya Samskriti)
can contribute to service, leadership and management.
These values and practices are rooted in Sanathana
Dharma (the eternal essence), and have been influenced
by various strands of Indian philosophy.
What is Indian Ethos For Management?

It means application of principles of management revealed in our ancient wisdom

described in Upanishades and Gita. The following basic principles of management are as
per ancient Indian Wisdom and Insight :
– Each Soul is a Potential God
– Holistic Approach
– Equal Importance to Subjectivity/Objectivity
– Karma Yoga (selfless work)
1. Each Soul is a Potential God A human being has a soul, a spark of Divine. The
Divide resides in the heart of a person. The Divine means perfection in
knowledge, wisdom and power. Therefore, a human being has immense
potential power or energy for selfdevelopment. The partnership of God and
Man can bring about extraordinary or miraculous result. Indian wisdom
indicates that productivity of human being is more important than plant
capacity. Hence, management is helping ordinary people to produce
extraordinary results.

2. Holistic Approach Holistic approach in Management is based on spiritual

principle of unity, oneness, non-dual or Advaita concept. Under this principle of
unity, the universe is an undivided whole where every particle is connected with
every other particle. Hence, entire Humanity is ONE. Management must
recognise Oneness of Humanity. Respect the Divine in all beings.
3. Equal Importance to Subjectivity/Objectivity Indian ethos for management distinguish subject and object.
Subject is subtle and intangible. Object is gross or concrete, and tangible or invisible. Human and ethical values
or qualities such as courage, vision, social awareness, fearlessness and clear mind, truth, etc are subjective,
subtle and intangible concept. These represents divine wealth. Inner resource of human being are more
powerful than external resources. Eg- Japan could prosper in industry, business and trade due to optimum
utilisation of inner resources. Japan does not have coal, mineral and petrolieum. ‘Creator is subjective. Creation
is objective’. Therefore, manager must develop third eye, the eye of vision, intuition, foresight and such other
divine qualities or values. This is the essence of Indian ethos for management.

4. Karma Yoga (selfless work) It is yoga of moral endeavour, self-less service to others. It brings about union of
human being with the Divine. Work is done as workship to the Divine in human beings who is also all pervading
in the universe(which is just a projection of the Divine). Gita evolves moral and ethical theory of human conduct
and expounds the art of right living- the doctrine of duty with discipline and devotion without attachment to
work and agency. Do your duty without ego and without calculations of gain or loss. Let not the fruit of action
motivate you. Let not the fruits divert your concentration on work. Pour your heart and soul in the performance
of your assigned duty. Concentrate your attention only on your present job.
Components of Indian ethos

Indian believe:
• 1. Ego sublimation rather than ego assertion
• 2. Sacrificing spirit rather than fighting spirit
• 3. Team achievement rather than individual achievement
• 4. Spiritual attainment rather than material prosperity
• 5. Self control rather than outside control
• 6. Concept of duties rather than concept of rights
• 7. Yielding rather than dominating
• 8. Concern for this age world and improvement
• 9. Respect for and search for all truth whatever be its source
Need of the Indian ethos
Management attitude

Humanizing organization

Interiorizing (self) management

Self introspection

Brain stilling

Stepping back

Self dynamising meditation

Role of intuition (feeling)

Management attitude:
Top management must have firm belief in values-oriented holistic management of
business. The management is called upon to meet expectations of all stakeholders, e.g.,
employees, customers, citizens and shareholders and fulfill the social responsibility. Profit
is earned through service and satisfaction of all these interested parties
Humanizing organization:
There are three aspects of humane organisation : 1. Inter-personal relations 2. Man-
machine equation and 3. Inner management- mental and spiritual. An organisation can
create best inter-personal relations based on promotion from within, equality, autonomy,
self-esteem and fraternal affection. Unity, harmony and effective communication can
assure team spirit and team work in an organisation.
Interiorizing (self) management:
Self management: The manager is first a man and then a manager. The manager should
first learn to manage and control himself. Without selfmanagement and control, how can
he manage and control others? The first need is to understand and know himself. This is
a course in the subjective system of management.
Self introspection
We have to embark upon self-study, self analysis and self criticism to locate areas of friction and
disharmony. We should prepare a balance sheet of our own strengths and weaknesses. our
mind and heart may indicate weak spots. By regular introspection we would find out solution to
problem so that the concerned parts of our being can be persuaded and guided to play the
desired role.

Brain stilling (Decision-making in silence)

The western management resorts to brain-storming, i.e., loud thinking by
managers for decisions to solve management problems. The Indian insight
advocates a better alternative in the form of brain-stilling. For rational and
enduring decisions, silent mind is a much more effective medium to get sound
and lasting solution to all management problems. By this method the manager
and his employees come into contacts with the inner mind or higher
consciousness for arriving at proper solution to their
Stepping back
The stepping back or drawing back into yourself is another device of learning to go deep within
and look; you can remain quiet and call on the inner consciousness force and wait for a while
for an answer. Then you know exactly what to do. Remember therefore, that you cannot receive
the answer before you are very peaceful. The stepping back from a situation for a while enables
you to control and even master the situation. When you have a problem to solve, when you are
caught in a difficulty, try this method. ‘Never decide anything, never speak a word, never throw
yourself into action without stepping-back.’

Self dynamising meditation

A dynamic meditation is meditation of transforming of lower consciousness into higher
consciousness. Hence we call it transforming meditation. It opens the third eye of wisdom
through insight. Through meditation, in a silent and calm mind, you are able to contact this
centre or higher conciousness. This is called consciousness approach to management, a process
of ‘within to without’ management. The management and workers must have absolute faith or
trust on the Supreme’s Infinite Power. Our inner being has the true knowledge. It says, “ I know,
I cannot give reasons, but I know.”
Role of intuition (feeling)
Intuition is the act of coming to direct knowledge or certainty without reasoning or inferring. It
is immediate cognition by the inner mind and when fully developed is efficient and effective for
taking prompt and sound decisions. Intuition skills enable one to cope with confidence the
fluctuating environment and rapid changes. Faith is Prerequisite to develop and realize the
power of intuition.

In the scheme of management as per Indian ethos, the inner

mind and the inner aspects of man are emphasised and the inner
being has to develop for manifestation in the physical. In the
management process consciousness is the approach, harmony is
the tool and perfection is the aim. Centralisation of authority is
meant to diffuse and decentralise functions and the power to
perform them.
Insights into Indian ethos

Indian ethos provides that "Business" need not be regarded evil, tainted and
unethical. Business is sacred. It is a matter of attitude, approach and level of
management consciousness. One can do business, make money, earn profit, build
up property and even then it can be managed with due recognition to human
and ethical values and respecting all persons in the enterprise and in the society
as human beings. Indian ethos demands subjective management system, giving
due importance to virtues like compassion, honesty, co-operation etc.
Managerial effectiveness under Indian
ethos in management
Basic of Western management Management Based on Indian
difference ethos
Belief Production, productivity, profit at any cost Material gain, with belief in achieving human and
social welfare also
Guidance Management guided by mind only, led Management by consciousness power beyond mind,
away by ego and desire, soulless i.e., soul. Interiorized management
management
Emphasis Worker development, management of Development of man, integrated growth, harmony,
others, profit maximization. Human being happiness and health, Management of self
given only lip sympathy
Tools 5Ms as resources- men, money, materials, Men, machines, materials and methods as conscious
machines, markets. Science and partners all having consciousness whether manifested
technology information for decision or dormant. Information and intuition for decision.
marking Ethics and values combined with skills
Basic of Western management Management Based on Indian
difference ethos
Problem Conflict resolution by negotiation, Conflict resolution through integration and
solving compromise, arbitration, liquidation synthesis on
of differences only for a temporary stressing super ordinate common goals so that
period. No reference to higher enduring harmony and unity is assured. Self
consciousness introspection, stepping back aids the search for
solution

Decision Brain storming (round table approach) Brain stilling (entering the room of timeless silence)
making

Development Physical, vital and mental only. Integrated development, whole man approach,
Soul or spirit ignored. Material breath
development only, even at the cost of control and meditation emphasized. Human
man and nature enrichment and total quality

Approach External behavior. Mental, material, Noble attitudes. Inner guidance, team spirit, total
selfish only- soulless harmony, global good
Business ethos principles practiced by Indian Companies
Indian companies are guided by certain rules of conduct in the form of ethical and moral standards. Some
of the business ethos principles, practiced by Indian companies are listed below

1. Principle of `sacrifice’
An individual is trained by the principle of `sacrifice’ through the process of `give and take’
policy. A person, who is willing to sacrifice part of his bread or effort, commands a superior
place in the organization.
2. Principle of `harmony’
An individual is trained in such a way that to avoid conflicts and friction one should be
guided by certain set of moral conducts and principles.
3. Principle of `non-violence’
This principle protects an organization from strikes and lockouts and unnecessary
avoidable conflicts.
4. Principle of `reward’
The one who performs well are encouraged to do so. This implies that the activities of
individuals need to be monitored and encouragement in the form of `rewards’ may
cultivate the spirit of higher productivity among groups.
5. Principle of `justice’
The one who works hard is `rewarded’ and the one who fails to do so is `punished’. This is
essence the principle of Justice.
6. Principle of `taxation’
The one who is taxed more is encouraged to stay fit for a longer period by proper
appreciation and encouragement. This principle applies to individuals who are
hardworking and productive.
7. Principle of `Integrity’
An integrated mind is more productive. Groups are encouraged to stay united in
order to
Application of Indian Ethos to Management

– Indian ethos provides that „Business‟ need not be regarded evil,

tainted and unethical. Business is sacred. It is a matter of attitude,
approach and level of management consciousness. One can do
business, make money, earn profit, build up property and even then it
can be managed with due recognition to human and ethical values and
respecting all persons in the enterprise and in the society as human
beings. Indian ethos demands subjective management system, giving
due importance to virtues like compassion, honesty, co-operation etc.
 Teaching from major Indian Scriptures
Scripture Scripture Description
Description
The Vedas There are four Vedas viz. Rig-Veda, Yajur-Veda, Sama-Veda, and Atharva-Veda.
The
primary thought in the Vedas is a mystic conception of the universe. The whole
effort of the Veda is directed towards one goal – to achieve union of the
individual Self (Atman) with the world Self (Brahma).
Upanishads The Vedanta seeks to know the ultimate reality (Brahman) and the cause behind
everything. In this pursuit it seeks to detach from the “Maya” and the material world
and unite with Brahman (God or supreme consciousness).
Bhagavada Gita It is a poem which depicts lessons on spirituality and ethics through a dialogue
between
Lord krishna and the warrior Arjuna who is at a great crisis of his life. The
karma Yoga, Samkhya Yoga, Bhakti Yoga and the notion of three Gunas
(Sattwa, Rajas, Tamas) have very important implications in the context of
Scripture Scripture Description
Descriptio
n
Ramayana It depicts the duties of relationships, portraying ideal characters like the ideal father,
ideal servant, the ideal brother, the ideal wife and the ideal king. Apart from this,
the Ramayana also teaches how the temptation for lust can bring a powerful and
well established man’s doomsday.
Buddhism (1) The founder of this school was Gautam Sidhhartha who later became Lord
Gautam
Buddha. The Buddhism is based on the four noble truths: (i) Suffering exists; (ii)
There is a cause of the suffering; (iii) Suffering can be eradicated; (iv) There is a
means for eradication of that suffering. Buddha establishes that everything on the
earth is non- permanent. And, nothing on earth is self. Hence everything on this
earth is “anatta” or not-self. Finally, Buddha taught the eightfoldpath to liberation
from all suffering.
Patanjali Yoga It represents a form of personal discipline where we integrate the body and the soul,
the
individual self (Atman) with the Universal self (Brahman). According to Patanjali,
Yoga is the control of the modifications of the mind. It is mind that leads to or to
Quality of work life and Indian Ethos

1 Why work? – To purify my mind and heart and to become wise. To

provide public benefit.
2.What is work? – To nurture each other. My work is a for of yagna,
sacrifice. I develop the spirit of sacrifice. It is a worship of the Divine.
3.How to work? – With the spirit of renunciation, i.e.. Tyag and to serve
others. I must work without self-interest.
4.Spirits of work : Excellence in work. Perfection in work and quality of
output.
• Triguna theory has its roots in Bhagvadgeeta
(chapter 17).
• Bhagvadgeeta is one of the most important
books of Indian philosophy.
• Triguna theory is a composite framework of
tri-dimensional personality to aid the
understanding of the mental make-up of the
person.
⚫the term guna refers to the inherent
energy or tendency with which ‘prakriti’ is
created & with which human mind
functions.
⚫The individual is vital collection of
powerful energies which drives people to
work.
⚫The dynamism of prakriti is due to the
continuous flux of three
qualities(gunas):
i) sattva (balanced),
ii) rajas (passionate),
⚫ These three gunas in
different proportions
influence the mental
& intellectual caliber
of every individual.
Guna indicates the
attitude
with which human
mind functions.

⚫ Dominance of
guna determines
the
individual’s
personality.
⚫It is the ‘spiritual quality’.
⚫Steady, calm mind. Non-violent, has inherent
desire to be good & caring.
⚫Capable of vast knowing & deep
understanding.
⚫Work done as a duty w/o expecting for fruits.
⚫Free from attachment to objects.
⚫Not affected by success or failure.
⚫Non-egoistic, firm, enthusiastic.
⚫Clear understanding of desirable &
undesirable, dutiful & undutiful actions.
⚫Free from doubts. Control on self.
⚫Pure mind.
⚫Don’t hurt others.
⚫Forgiveness, wisdom & faith.
⚫Help needy people.
⚫Pays homage to divine & spiritual
values.
⚫Pray god w/o expecting fruits.
⚫It is an ‘active quality’.
⚫Greed, restlessness.
⚫Desire to acquire things & attachment
to acquired things.
⚫Rajas guna binds person to bodily activities
& selfish interest.
⚫Thrust for more & more.
⚫Filled with joy in success & sorrows
in failures.
⚫Do good activities for gain of respect,
fame, money, etc.
⚫Help others for self-gains.
⚫Full of desires, passions & attachments.
⚫Goal oriented.
⚫Distorted picture of right or wrong.
⚫Bold, authoritative.
⚫It is the ‘material quality’.
⚫Arises from hope & illusions.
⚫Attachment to myth, immorality & rest.
⚫Revengeful, win by demolishing others.
⚫Actions are directed for their own
welfare.
⚫No consistency of purpose, brilliance
of thought, tenderness of emotions.
⚫Views world as if it exists for him alone.
⚫Narrow & limited vision.
⚫Careless & irresponsible actions because of
some delusory misconception of the goal.
E.g._ smoking, drinking, etc.
⚫No self control, stubborn, arrogant.
⚫Creates disputes & quarrels.
⚫Wrong judgment of ethical & non-ethical.
⚫These three types of personalities
are explained in bhagvadgeeta.
⚫Apart from these we see combination
of these gunas in people.
⚫A careful study of guna provides the
capacity of detecting within ourselves the
most powerful tendency that rises up to rule
our mental life at any given moment. A true
knowledge of gunas helps to meet subjective
problems more effectively.
 "OSHA" model
The roots of the "OSHA" model can be traced to Sankhya philosophy
In this philosophy, prakriti (nature) is characterised by existence of three gunas (substance - attributes),
namely sattava (essence), rajas (energy) and tamas (inertia).
The sattava, refers to purity, and illumination and it binds one to bliss.
Rajas, springs from craving and attachment and it binds one to action.
Tamas, literally meaning darkness arises out of ignorance (ajanna) and delusion (moha) and it leads one
to negligence and indolence.
A man’s behaviour is influenced by the dominance of a particular type of guna. A sattavik person is one
whose buddhi (intellect) is not clouded by passion. Such a person is free from passion and is essentially
good. The rajasik type is guided by desire and passion and is ever active to conquer and consolidate his
position. He is always full of energy and is guided by Trishna, i.e. the thirst for things not yet acquired.
The tamasika person is indolent and lacks initiative.
Thus, sattava is the substance - attribute of purity and illumination, rajas that of activity and attachment,
and tamas that of indolence and delusion. The theory of gunas also suggests that a person can achieve
sattava state by controlling the rajasik and tamasik elements in him. It also suggests that every person
has the ability to achieve the sattava state.
Chapter XIV of Gita presents the essential attributes of the three gunas.
Characteristics and Effects of Gunas

Guna   Characteristics Effects

Sattava purity, fineness, happiness, bliss, virtue goodness, tranquillity

Rajas activity, passion greed, pride, attachment delusion, confusion,

spiritual

Tamas darkness, inertia, grief, ignorance, bankruptcy inertness

Values

Generally, value has been taken to mean moral ideas, general

conceptions or orientations towards the world or sometimes
simply interests, attitudes, preferences, needs, sentiments and
dispositions.
 Values Definition – What is Values?
Values defined in Organizational Behavior as the collective conceptions of what is
considered good, desirable, and proper or bad, undesirable, and improper in a culture.
Some common business values are fairness, innovations and community involvement.

According to M. Haralambos, “A value is a belief that something is good and desirable”.

According to R.K. Mukherjee, “Values are socially approved desires and goals that are
internalized through the process of conditioning, learning or socialization and that become
subjective preferences, standards, and aspirations”.

According to Zaleznik and David, “Values are the ideas in the mind of men compared to
norms in that they specify how people should behave. Values also attach degrees of
goodness to activities and relationships”
The characteristics of values are:
These are extremely practical, and valuation requires not just techniques but also an understanding of the
strategic context.
These can provide standards of competence and morality.
These can go beyond specific situations or persons.
Personal values can be influenced by culture, tradition, and a combination of internal and external factors.
These are relatively permanent.
These are more central to the core of a person.
Most of our core values are learned early in life from family, friends, neighborhood school, the mass print, visual
media and other sources within the society.
Values are loaded with effective thoughts about ideas, objects, behavior, etc.
They contain a judgmental element in that they carry an individual’s ideas as to what is right, good, or desirable.
Values can differ from culture to culture and even person to person.
Values play a significant role in the integration and fulfillment of man’s basic impulses and desire stably and
consistently appropriate for his living.
They are generic experiences in social action made up of both individual and social responses and attitudes.
They build up societies, integrate social relations.
They mold the ideal dimensions of personality and depth of culture.
They influence people’s behavior and serve as criteria for evaluating the actions of others.
They have a great role to play in the conduct of social life. They help in creating norms to guide day-to-day
behavior.
Sources of values are;
Family: Family is a great source of values. A child leams his first value from his family.
Friends & peers: Friends and peers play a vital role in achieving values.
Community or society: As a part of society, a person leams values from society or
different groups of society.
School: As a learner, school and teachers also play a very important role in introducing
values.
Media: Media such as – Print media, Electronic media also play the role of increasing
values in the mind of people.
Relatives: Relative also helps to create values in the minds of people.
Organization: Different organizations and institutions also play a vital role in creating
value.
Religion.
History.
Books.
Values in Workplace

Values can strongly influence employee conduct in the workplace. If an

employee values honesty, hard work, and discipline, for example, he will
likely make an effort to exhibit those traits in the workplace.

This person may, therefore, be a more efficient employee and a more positive
role model to others than an employee with opposite values.

Conflict may arise, however, if an employee realizes that his co-workers do

not share his values.

For example, an employee who values hard work may dislike co-workers who
are lazy or unproductive without being reprimanded.

Even so, additional conflicts can result if the employee attempts to force his
own values on his co-workers.
Values help to guide our behavior. It decides what we think as for
right, wrong, good, or unjust.

Values are more or less permanent in nature. They represent a

single belief that, guides actions and judgment across objects and
situations. They derived from social and cultural mores.
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