Business Ethics, Nature, Scope

Business ethics refers to the moral principles and standards that guide behavior in the world of commerce. It involves applying values such as honesty, fairness, integrity, responsibility, and respect in business practices and decision-making. Business ethics ensures that companies operate lawfully, transparently, and with accountability toward stakeholders including customers, employees, investors, and society at large. It goes beyond profit-making to consider the impact of corporate actions on the environment, community, and human rights. Upholding business ethics builds trust, enhances reputation, promotes long-term sustainability, and helps prevent unethical practices such as fraud, corruption, and exploitation.

Nature of Business Ethics:

  • Normative in Nature

Business ethics is primarily normative, meaning it prescribes how businesses ought to behave. It deals with moral standards and principles that guide the conduct of individuals and organizations in business situations. Rather than just describing behavior, it sets benchmarks for what is right or wrong, fair or unfair. These norms influence decisions related to honesty, justice, transparency, and accountability. The normative nature of business ethics helps in shaping corporate policies, codes of conduct, and ethical frameworks that promote responsible and sustainable business practices, ensuring companies act not just legally, but morally as well.

  • Dynamic and Evolving

Business ethics is not a static concept—it evolves over time in response to changing societal values, economic developments, legal systems, and global challenges. Ethical expectations today are much broader than in the past, as businesses are now held accountable not just for profit, but also for social and environmental impacts. For example, issues such as climate change, diversity, and digital privacy have become significant ethical concerns in recent years. This dynamic nature of business ethics demands that companies regularly review and update their ethical practices and policies to remain relevant and aligned with stakeholder expectations.

  • Universal Applicability

The principles of business ethics apply universally, regardless of the size, nature, or location of the business. Whether it’s a multinational corporation or a local enterprise, ethical behavior is expected across all sectors and industries. Values like honesty, integrity, and respect are considered fundamental and relevant globally, despite cultural and regional variations. Although local customs may differ, core ethical standards help ensure fairness and accountability in all business environments. Universal applicability promotes consistency and trust, especially in global operations where multiple cultures and legal systems intersect, encouraging ethical globalization and responsible corporate citizenship.

  • Based on Moral Values

At its core, business ethics is grounded in fundamental moral values such as fairness, justice, responsibility, compassion, and integrity. These values serve as the foundation for ethical behavior and guide individuals and organizations in making morally sound decisions. Ethical business practices are not just about complying with rules but also about doing what is right, even when there’s no external pressure or legal obligation. When businesses uphold moral values, they foster trust and loyalty among stakeholders, contribute to the greater good of society, and enhance their long-term sustainability and reputation in the marketplace.

  • Balances Profit with Responsibility

One of the key aspects of the nature of business ethics is the balance between profit-making and ethical responsibility. While businesses are driven by the objective of maximizing profits, business ethics ensures that this goal is pursued without harming people, society, or the environment. Ethical companies do not exploit workers, deceive customers, or pollute ecosystems for financial gain. Instead, they adopt fair trade, responsible sourcing, and sustainable practices that reflect their commitment to doing well by doing good. This balance strengthens stakeholder relationships and supports long-term success over short-term profiteering.

  • Influences Business Decision-Making

Business ethics plays a crucial role in shaping decisions at all levels—from top executives to frontline employees. Ethical considerations influence decisions related to marketing, finance, human resources, operations, and corporate governance. For example, ethical decision-making might involve choosing suppliers who follow fair labor practices, avoiding misleading advertising, or ensuring data privacy for customers. A strong ethical framework encourages managers and employees to act responsibly and promotes a culture of integrity within the organization. It also reduces the risk of scandals, legal issues, and reputational damage.

  • Enhances Corporate Image and Trust

Ethical conduct enhances a company’s reputation and helps build long-term trust with customers, investors, employees, and the community. When businesses operate transparently and consistently uphold ethical standards, they gain a positive public image that differentiates them from unethical competitors. In the age of social media and digital communication, unethical behavior is quickly exposed, making ethics a critical factor in maintaining brand loyalty and stakeholder confidence. A good ethical record also attracts talent, investors, and partners, contributing to sustainable growth and profitability.

Scope of Business Ethics:

  • Ethical Issues in Corporate Governance

Business ethics plays a crucial role in ensuring transparency, accountability, and fairness in corporate governance. Ethical governance involves responsible decision-making by the board of directors, adherence to regulatory norms, fair treatment of shareholders, and prevention of fraud and corruption. It ensures that company leaders act in the best interests of stakeholders rather than for personal gain.

  • Ethics in Human Resource Management (HRM)

HRM deals with ethical concerns like equal opportunity, diversity and inclusion, fair wages, employee rights, workplace safety, and non-discrimination. Ethical HR practices foster trust, motivation, and productivity among employees. Issues like harassment, bias in recruitment, and unethical layoffs also fall under this scope.

  • Ethics in Marketing

Business ethics applies to truthful advertising, fair pricing, product safety, and responsible communication. Misleading advertisements, manipulative promotions, or false labeling are unethical practices. Ethical marketing respects consumer rights and promotes transparency and fairness in product promotion and delivery.

  • Ethics in Finance and Accounting

Financial integrity is vital for stakeholder trust. Ethical issues in this area include accurate financial reporting, transparency in financial statements, insider trading, and avoidance of fraud or embezzlement. Ethical financial practices ensure investor confidence and compliance with legal standards like GAAP or IFRS.

  • Ethics in Production and Operations

This includes ensuring product quality, worker safety, ethical sourcing of materials, and environmental responsibility. Businesses are expected to produce goods safely and sustainably, without harming workers, customers, or the environment. Issues such as child labor or unsafe manufacturing processes are key concerns.

  • Environmental Ethics

Companies have a responsibility to reduce environmental harm through sustainable practices. Ethical concerns include pollution control, resource conservation, waste management, and carbon footprint reduction. Businesses are expected to align with global standards like ESG (Environmental, Social, and Governance) goals.

  • Ethics in International Business

Multinational corporations face challenges due to varying ethical standards across countries. Business ethics in this area involves respecting local cultures, avoiding bribery or exploitation, ensuring fair labor practices, and complying with international trade regulations.

  • Ethics in Information Technology and Data Privacy

With the rise of digital business, ethics now includes data protection, cybersecurity, and consumer privacy. Companies must handle data responsibly, seek proper consent, and ensure information is not misused or leaked.

  • Consumer Protection

Ethical business practices require honesty in customer dealings, product disclosures, quality assurance, and complaint resolution. Protecting consumer rights builds long-term loyalty and a positive brand image.

  • Corporate Social Responsibility (CSR)

CSR represents a business’s ethical obligation to contribute to societal development beyond profit-making. It includes activities like education support, community welfare, healthcare, and disaster relief. Ethics in CSR emphasizes genuine commitment, not just publicity.

Characteristics of Business ethics

(i) A Discipline:

Business ethics are the guiding principles of business function. It is the knowledge through which human behaviour is learnt in a business situation.

(ii) Ancient Concept:

Business ethics is an ancient concept. It has it origin with the development of human civilization.

(iii) Personal Dignity:

The principles of ethics develop the personal dignity. Many of the problems of ethics arise due to not giving dignity to individual. All the business decisions should be aimed by giving dignity to the customers, employees, distributors, shareholders and creditors, etc. otherwise they develop in immorality in the business conducts.

(iv) Related to Human Aspect:

Business ethics studies those activities, decisions and behaviours which are concerned with human aspect. It is the function of the business ethics to notify those decisions to customers, owners of business, government, society, competitors and others on good or bad, proper or improper conduct of business.

(v) Study of Goals and Means:

Business ethics is the study of goals and means for the rational selection of sacred objects and their fulfillment. It accepts the principles of “Pure goals inspire for pure means” and “Means justifies the end”. It is essential that goals and means should be based on morals.

(vi) Different from Social Responsibility:

Social responsibility mainly relates to the policies and functions of an enterprise, whereas business ethics to the conduct and behaviour of businessmen. But it is a fact that social responsibility of business and its policies is influenced by the business ethics.

(vii) Greater than Law:

Although the law approves various social decisions, but the law is not greater than ethics. Law is usually related to the minimum control of social customs whereas ethics gives importance to individual and social welfare actions.

Crisis Management

A sudden and unexpected event leading to major unrest amongst the individuals at the workplace is called as organization crisis. In other words, crisis is defined as any emergency situation which disturbs the employees as well as leads to instability in the organization. Crisis affects an individual, group, organization or society on the whole.

Characteristics of Crisis

  • Crisis is a sequence of sudden disturbing events harming the organization.
  • Crisis generally arises on a short notice.
  • Crisis triggers a feeling of fear and threat amongst the individuals.

Reason of Crisis

Crisis can arise in an organization due to any of the following reasons:

  • Technological failure and Breakdown of machines lead to crisis. Problems in internet, corruption in the software, errors in passwords all result in crisis.
  • Crisis arises when employees do not agree to each other and fight amongst themselves. Crisis arises as a result of boycott, strikes for indefinite periods, disputes and so on.
  • Violence, thefts and terrorism at the workplace result in organization crisis.
  • Neglecting minor issues in the beginning can lead to major crisis and a situation of uncertainty at the work place. The management must have complete control on its employees and should not adopt a casual attitude at work.
  • Illegal behaviors such as accepting bribes, frauds, data or information tampering all lead to organization crisis.
  • Crisis arises when organization fails to pay its creditors and declares itself a bankrupt organization.

Crisis Management

The art of dealing with sudden and unexpected events which disturbs the employees, organization as well as external clients refers to Crisis Management.

The process of handling unexpected and sudden changes in organization culture is called as crisis management.

Need for Crisis Management

  • Crisis Management prepares the individuals to face unexpected developments and adverse conditions in the organization with courage and determination.
  • Employees adjust well to the sudden changes in the organization.
  • Employees can understand and analyze the causes of crisis and cope with it in the best possible way.
  • Crisis Management helps the managers to devise strategies to come out of uncertain conditions and also decide on the future course of action.
  • Crisis Management helps the managers to feel the early signs of crisis, warn the employees against the aftermaths and take necessary precautions for the same.

Essential Features of Crisis Management

  • Crisis Management includes activities and processes which help the managers as well as employees to analyze and understand events which might lead to crisis and uncertainty in the organization.
  • Crisis Management enables the managers and employees to respond effectively to changes in the organization culture.
  • It consists of effective coordination amongst the departments to overcome emergency situations.
  • Employees at the time of crisis must communicate effectively with each other and try their level best to overcome tough times. Points to keep in mind during crisis
  • Don’t panic or spread rumours around. Be patient.
  • At the time of crisis the management should be in regular touch with the employees, external clients, stake holders as well as media.
  • Avoid being too rigid. One should adapt well to changes and new situations.

Types of Crisis

The crisis is of different types and nature and implies different responses and thereby different means of its management. The following are the major types of Crisis:

  1. Financial Crisis

Financial Crisis occurs when the business is hit with the crisis financially. An example of a financial crisis is a business not having funds to pay its dues such as paying dividends, interests, making repayments of loans, etc. Such a crisis arises when the business incurs losses over considerable periods of time or when due to lack of accountability loses consumers’ trust among other situations.

This crisis is handled by mobilizing requisite funds as a short term solution and in taking major financial decisions such as restructuring, changing business operations, etc as long term solutions.

  1. Technological Crisis

The technological crisis occurs as a result of break downs in the common scientific and technological tools and appliances that we use in a business. If the servers of Facebook get overloaded and all the user accounts and details are thereby deleted then such a crisis will be a technological crisis.

Common technological crisis includes software failure, industrial accidents, etc. The usual means of management would include primarily mitigating the losses and stopping the effects of the failure from affecting more people or elements.

The next step would include trying to gain back what was corrupted or lost with the help of experts in the field and would also involve finding the source and reason for the crisis.

  1. Crisis of Malevolence

All businesses compete with each other. But some competitors take such extreme steps that they, in fact, try to go below the belt and ruin the other business for their own success. The crisis that happens as a result of the extreme tactics employed by a competitor or a miscreant to ruin the business is known as a crisis of malevolence.

These crises include those which are created by hacking into a company’s server, tampering with their products, etc. The measures include finding the source and minimizing the damage as soon as possible with identifying who perpetrated the crisis.

  1. Natural Crisis

Natural Crisis refers to those that are created as a direct result of a natural event such as a volcano or earthquake etc. These crises are completely out of management’s hands and cannot be prevented, unlike the other crisis. The crisis management steps include evacuating the area and taking mitigating actions as precautions such as building Earthquake resistant buildings, preparing evacuation plans, etc beforehand.

Crisis of Organisational Misdeeds

Crisis of Organisational Misdeeds includes:

  1. Crisis of Deception
  2. Crisis of Skewed Management Values
  3. Crisis of Management Misconduct

Factor influencing Business Ethics

Business Ethics is quality of being useful or desirable. It is commonly used to all things which people regard as good, desirable and just. We generally make value judgments on many matters like good, skilled, unskilled, bad etc. The statements are comparative. We have few terms generally used with different meaning at times not correctly.

These words and their means are:

(i) Norms:

Norms of expectations of a proper behaviour in a society. These are not requirements or must. Example: We in India treat elder with respect. When we address our teacher we say ‘Sir’.

(ii) Beliefs:

Ethical codes of thought. Belief is an abstract thinking process. Here there is no action as in norms. Beliefs support norms. Example: Thinking saving money, or energy.

(iii) Ethos:

Characteristics of a community or of a culture. Code of values by which a group or a society lives. Example: Generosity of a group.

(iv) Moral:

Concerns regarding principles of right and wrong. Example: It is always right to tell truth.

(v) Morality:

It is the standard that an individual or a group that knows that is good, what is right and which is proper. Example: Since last decade political morality is decreasing in India.

(vi) Moral norms:

Are expectations of society a level of morals in the society. Example: Do not harm innocent man.

(vii) Moral values:

Are desired level of morals. Usually these are statements, regarding describing moral features. Example: Honesty is best policy.

(viii) Moral behaviour:

Moral behaviour is a study of right and wrong in human behaviours.

Values of managers:

Business is driven by values. Values guide what a business manager should do and how the stakeholder reaction to these action. Following a set of good values a value system can be built in the organisation business thus can create good, services, employment of larger value.

A manager while accepting the values the considerations are:

(a) The values should be universal.

(b) Maximum good to greatest number of people.

The manager should be pragmatic in his approach. This comes by his experience and skill in knowing as to how a decision works in a given situation. Manager should have a feel of what is good for highest number. Manager should also evaluate the value built up in his control.

Some Factors

The individual’s personal code of behavior: The personal Code of Behavior is the result of the complex environment that influences one’s life.

The ethical standards imposed on a manager by his superiors also influence him in his decisions as to the morality of behavior. If the superior condones unethical activities such as padding expenses accounts, the subordinate is encouraged to look upon this activity as an acceptable practice.

The policies of the company also influence the determination of ethical conduct. Standards of behavior in an industry are often influenced greatly by the dominant firms in that industry. The authors of the company policy obviously have an effect that is decisive.

The ethical climate of a country. If, it is poor, then only giant corporations and large undertakings can stand competition and be viable; a small concern is apt to go bankrupt, since business is concerned with employment of a large number of persons, it has the obligation to see that it adheres to an ethical atmosphere. However, considerable differences occur among managers as to what is ethical or unethical; and business truly lacks a Code of Ethics.

Importance of Business Ethics

Long-term growth: sustainability comes from an ethical long-term vision which takes into account all stakeholders. Smaller but sustainable profits long-term must be better than higher but riskier short-lived profits.

Cost and risk reduction: companies which recognise the importance of business ethics will need to spend less protecting themselves from internal and external behavioural risks, especially when supported by sound governance systems and independent research

Anti-capitalist sentiment: the financial crisis marked another blow for the credibility of capitalism, with resentment towards bank bailouts at the cost of fundamental rights such as education and healthcare.

Limited resources: the planet has finite resources but a growing population; without ethics, those resources are repleted for purely individual gain at huge cost both to current and future generations.

Corresponds to Basic Human Needs:

The basic need of every human being is that they want to be a part of the organisation which they can respect and be proud of, because they perceive it to be ethical. Everybody likes to be associated with an organisation which the society respects as a honest and socially responsible organisation. The HR managers have to fulfill this basic need of the employees as well as their own basic need that they want to direct an ethical organisation. The basic needs of the employees as well as the managers compel the organizations to be ethically oriented.

Credibility in the Public:

Ethical values of an organisation create credibility in the public eye. People will like to buy the product of a company if they believe that the company is honest and is offering value for money. The public issues of such companies are bound to be a success. Because of this reason only the cola companies are spending huge sums of money on the advertisements now-a-days to convince the public that their products are safe and free from pesticides of any kind.

Credibility with the Employees:

When employees are convinced of the ethical values of the organisation they are working for, they hold the organisation in high esteem. It creates common goals, values and language. The HR manager will have credibility with the employees just because the organisation has creditability in the eyes of the public. Perceived social uprightness and moral values can win the employees more than any other incentive plans.

Better Decision Making:

Respect for ethics will force a management to take various economic, social and ethical aspects into consideration while taking the decisions. Decision making will be better if the decisions are in the interest of the public, employees and company’s own long term good.

Profitability:

Being ethical does not mean not making any profits. Every organisation has a responsibility towards itself also i.e., to earn profits. Ethical companies are bound to be successful and more profitable in the long run though in the short run they can lose money.

Protection of Society:

Ethics can protect the society in a better way than even the legal system of the country. Where law fails, ethics always succeed. The government cannot regulate all the activities that are harmful to the society. A HR manager, who is ethically sound, can reach out to agitated employees, more effectively than the police.

Emotional Honesty

Emotional honesty means being able to express your emotions and feelings to another person. It requires an awareness of what your true feelings are and what others’ true feelings are as well.

If we are emotionally honest with ourselves, we get to know our true selves better, which can lead to greater self-acceptance.

Being emotionally honest is not always easy. It can be particularly challenging for people who lack the capacity to self-reflect. Such people often end up unhappy, and their negative feelings can manifest in chronic anger, depression, and similar emotions.

In my experience, one of the main reasons many people (and if I’m being honest, men) have difficulties being emotionally honest is because they’re afraid to be vulnerable in relationships. The best relationships are not necessarily those with the least conflict. Rather, they set themselves apart by the depth of their emotional intimacy. While there are other factors, the ability to be vulnerable and authentic strengthens the deep sense of connection felt by intimate partners.

Authentic relationships cannot stand the test of time without emotional honesty. It’s only when we fully connect to our true selves and feelings that we can share ourselves with another person. To do this, we must get in touch with what we are feeling, communicate it to our partner, and reveal our deepest feelings and emotions.

For a relationship to be healthy and sustainable, emotional honesty needs to be met with emotional honesty. That is, both people in the relationship need to reveal their true selves and feelings. If one of the partners puts up walls, that makes it impossible for them to speak their emotional truth. It’s also likely an indication that they don’t trust themselves or their partner.

The benefits of emotional honesty are immeasurable. Indeed, what could be more fulfilling than living your truth and sharing it with someone close to you? If also puts you on a path towards authenticity and moves you away from superficiality and meaninglessness.

Emotional honesty can be defined as the ability to communicate our feelings and needs in an honest and respectful way. It means we are aware of our feelings and take the time to experience them instead of masking them with alcohol, drugs, food, and the like. While it isn’t sexy or even comfortable at times to focus on emotional honesty, it does lead to some pretty amazing results in most areas of our lives.  So if emotional honesty and living an authentic life is on the “to do” list this year, the following twelve points may help pave the way…

  1. Promotes Authenticity

Harder than lifting double our body weight over our heads, being emotionally honest is one of the most challenging things we can do.  Who wants to admit they hate their job or are unhappy with their spouse? Who wants to feel anything other than the happiness and joy?

Unfortunately, we can’t ignore our negative feelings; they will bubble up at some point, be it tomorrow or years from now, in the form of chronic anger, stress, depression, and the like. By taking an emotional inventory, we are moving towards living an authentic life and promoting a deeper sense of intimacy with the important people around us.

  1. Promotes Self-Awareness

To be able to share our true emotions with others we must begin by enhancing our self-awareness.  Our default response when asked “How are you today”, is usually something like “fine” or “good”, but fine and good aren’t emotions. Taking the time to ask ourselves how we are feeling may be a clue to why we are yelling at the driver in front of us or eating chocolate fudge ice cream straight out of the container (not that there’s anything wrong with that).

Emotional self-awareness can not only help to explain why we do the things we do, but can help us connect to our feeling selves and expand our emotional vocabulary beyond just “fine” or “good”.  With practice, we can identify and experience a feeling more efficiently without experiencing the angry outbursts or bouts of depression that come with lack of acknowledgment.

  1. Reduces Stress

How much negative energy does it take to push down our frustration and anger? How many times do we choose to bite our lip and not speak up only to have an angry outburst days later? Emotional dishonesty is a great way to ensure a heavier stress load (and all the negative health outcomes that result).

By learning the skills necessary (i.e. assertive communication) to respectfully share our feelings with others we not only reduce our stress in the long run, but demonstrate a higher level of respect and value within our relationships.

  1. Enhances Relationships

Nothing can create an enhanced sense of intimacy and trust as much as emotional honesty can. From professional to personal relationships, being honest with self and others is a not only a component of emotional intelligence but necessary for effective workplace leadership.

Personal relationships can suffer if we are unable to express what we need. Unfortunately, this lack of honesty within a relationship can result in resentment and anger overtime leading to the end of the relationship.  Emotional honesty can not only bring us closer to those we love, but lead to happier and more fulfilling relationships (and who doesn’t want that)!

  1. May Promote Acceptance

There are times when we get ourselves in a situation we aren’t that happy about. For example, our spouse takes a job in another town due to work and uproots the family in the process. Many of us may choose to “make the best of it” or “think positively” which, in turn, only helps to push down those emotions that need to be acknowledged.

Through emotional honesty, we are forced to sit with those negative feelings and move through them rather than ignore them or trying to think on the bright side. The result may lead to an acceptance of what we can’t change and making changes to things we can (i.e. like our perception of the move).

  1. May Promote Change

Unlike choosing acceptance, emotional honesty can also promote change once we get real with the origins of our feelings. The changes may be as small as changing our route to work to avoid the traffic or as big as changing careers, towns, or spouses.

By taking the time to ask ourselves the big questions and getting to the roots of our feelings, we may be saving ourselves the pain, discomfort, and chronic disease that comes from the staying the same.

  1. Requires Patience

As children, many of us are quick to learn to stifle the crying and anger and put on a happy face to be rewarded. As adults, this lack of emotional authenticity can lead to negative health and relationship outcomes. Taking a course in communication or reading the latest self-help book is great, but it is only through practice and patience that one can hone in on this skill.

For those who desire a positive change to their working and personal relationships, learning the skills is important but being patient with ourselves in putting them into practice is paramount to success.  One suggestion may be to find those people who are “easier” to practice on and work up to the harder ones later.  It may include writing down our feelings first and practicing what to say and how to say it.  There are many books published on the subject and offer worksheets to help us become real with ourselves and those around us.

  1. Make No Promises

If one is emotionally honest, she may enjoy a higher quality of life and the positive health benefits that come from it. Unfortunately, committing ourselves to becoming an emotionally honest and assertive communicator does not promise those around us will reciprocate.

Relational outcomes may or may not be positive depending upon how the receiver hears the message.  It is one thing to work on our own “baggage” and learn how to communicate our needs to others, it another thing to expect others to do that (hard) work as well.

  1. Strengthens Our Courage

Courage is not about being fearless but pressing on despite the fear. Emotional honesty promotes courage because it demands a level of openness that can create a sense of vulnerability. It takes courage to present our real selves to others for fear we won’t be loved (or liked) if we reveal our more prickly bits.

Let’s face it; it is easier to pretend to be happy, agreeable, and positive than to show our real feelings. Just like anything else, overtime being more aware and honest with our feelings will become second nature and (bonus) may promote others to do the same. 

  1. May Influence Others

One of the biggest underappreciated benefits of emotional honesty is the effect it has on those around us.  From friends and family to work colleagues, when we allow ourselves to “put it out there” and be honest with our feelings and needs, there is a good chance a few others may follow.

Those leaders who are comfortable with showing vulnerability and emotions (in a professional yet human manner) demonstrate a level of humanity that isn’t present in those that strap on the same happy face day in and day out. 

  1. The Key to Good Health

By burying our true emotions and selves we invite more negative feelings and more stress into our lives.  If emotional honesty can decrease our stress level it will also reduce the physiological effects that come with chronic stress.

As with exercise and eating well, being emotionally authentic and open with ourselves and others will strengthen our immune system, lower our heart rate and blood pressure, and provide us with all the good stuff that comes with a heightened quality of life!

  1. Needs Constant Attention

When it comes to muscular strength we all know if we don’t use it we will soon lose it. The same can be said for the practice of emotional honesty.  Just like any behavior change, it takes a while before it is second nature and, even then, it can still take effort.

Although it may take some time to reap the benefits (like exercise) once they show up, it may become clear that it is easier to maintain emotional honesty than it is to revert back to wearing that mask.

Flexibility and Purity of Mind

You should seek to promote flexibility in your organization. You can do this by encouraging your employees to find new ways of doing business that are better. You should also be brave enough to do away with policies that do not work, because there are advantages that come with promoting flexibility in your organization.

Enhanced Competitiveness

One of the problems with an organization that is rigid and mechanistic is that it cannot adapt. Whatever challenges that come along will strain the organization. Eventually, a challenge will come along that’s so massive that the organization may falter.

One of the factors that seriously alters the playing field is technology. When technology comes along that is disruptive, companies that initially had an advantage find themselves at a disadvantage. They need to figure out ways in which they can use the old technology, which will refine their former business practices so that they can then regain their competitive edge.

An organization that is flexible will respond to changes by evolving. The most flexible organization does not fight change; a flexible organization accepts change as an inevitable part of the business environment, so it learns to maximize its opportunities whenever change comes along.

Improved Efficiency

A flexible company will be willing to try new methods and processes, even when the old processes seem to work just fine. Flexibility in business means that you don’t live by the maxim, “If it ain’t broke, don’t fix it.” Instead, a flexible company will look for ways to find something that works more efficiently than what you already have.

Let’s start with your company policy. As a flexible company, you should be willing to review and refine your corporate policies so that you will encourage innovation, so that you can then find more-efficient and more-effective methods. This is a key factor in how important it is to have flexibility in operations management.

As time progresses, this culture of constantly experimenting and improving your processes will mean that your company becomes more efficient, so that it can enjoy higher revenues and reduced costs.

Your Scheduling Becomes More Flexible

The most flexible organizations offer their employees a more diverse range of options. These organizations make it easier for their employees to lead personal lives that are more fulfilling, while also enabling the employees to meet their work commitments.

One factor that can help is to allow your employees to telecommute – or at least, to offer them a flexible work schedule. This would be a boon to your employees, since it would benefit those who have families or other responsibilities.

Another example of a flexible organization is that you could consider allowing job sharing, so that you could split one job among two employees, who each work part-time, rather than having one employee who works full-time. You will be allowing the two job-sharing employees to have more flexibility in their scheduling, thereby enabling them to become more productive.

When you accommodate your employees’ needs like this, you enable your employees to become more loyal to your company, so that it becomes easier for you to retain your best employees who might otherwise have left the company, had your company offered only a rigid schedule.

Better Team Building

When your management structure is flexible, you will get the most out of your workforce, depending on their individual talents. No two people are the same, so no two employees have exactly the same skill sets. A good manager knows how to bring people together who have differing talents and then to unite them under a single cause.

When you unite your team so that their skills complement each other, you have a flexible unit that can handle a diverse range of issues. They become able to take on any challenge that comes their way, and in so doing, they enable the organization to become more effective.

A manager who is too rigid won’t do this. He will try to force square pegs through round holes. putting his employees into roles where their abilities are not effective and their weaknesses are magnified. The result is that they will become less productive, thereby making the organization less productive as a result.

Better Continuity During Uncertainty

One of the characteristics of a flexible organization is that it is prepared for uncertainty. By having its workforce distributed among different places and working using different media, the organization is better able to handle uncertain conditions that would make it difficult for a centrally located organization to cope. Such things as storms, tornadoes, and other natural disasters make it difficult for rigid organizations to adapt and maintain continuity.

A flexible organization will also be able to deal with uncertainty in economic and technological environments. Such a company should have measures in place, in the event of changes in technology, regulation, or even the economy.

Your Environmental Impact Is Reduced

When you install flexible work schedules and you leverage the power of the internet to enable your employees to work remotely, you have fewer buildings to maintain. Your employees also have to do a lot less commuting to and from work, which means your organization’s carbon footprint will also be reduced.

Another thing about flexible organizations is that they use technology, which is electronic, so that they do not have much paperwork. They also reduce the amount of office supplies they use. This also reduces the carbon footprint of the organization, thereby making it more environmentally friendly.

Hiring Costs and Turnover Costs Are Reduced

Of course, when your organization is flexible, it will accommodate your employees’ needs and schedules, which means that they will have a healthier work-life balance, and they will be more satisfied with their jobs. Such satisfied employees will be more likely to stay with your company.

You will get to hold on to your best employees and enjoy increased productivity from them. Also, you won’t have to deal with a high turnover, which happens when employees aren’t satisfied with an organization, so you will not need to fill vacant positions as frequently, so you will save on hiring costs.

Your Organization Will Grow Faster

A more-flexible organization will grow more quickly than a rigid organization, because it is always seeking processes and methods that work better than those it currently has. Such an organization will also utilize technology, which will enable its employees to work remotely and to collaborate virtually. Such teamwork tends to be more productive than other work structures, while also costing much less to maintain.

A flexible organization will also identify more opportunities in the environment and will take advantage of these opportunities, thereby enabling itself to profit in environments in which more-rigid companies wouldn’t be able to prosper.

There are too many benefits of a flexible organization to list, but these are most of them. When you enable your company to become adaptable, it is able to evolve with the times, and it will survive longer, becoming continually more prosperous.

Purity of Mind

Purity of Mind. That’s the goal many aim for when they set out on the path of practicing mindfulness and meditation.

But the one mistake they often make, and which they continue to make, while pursuing this goal is that they continue to remain attached to their existing desires, and worse, they continue to form another types of desires all the time.

As long as your mind is filled with any kind of desire no matter how big or small that desire may be how can you say that you have a pure mind?

A pure mind, by its very definition, means a mind that is free of all impurities, and these impurities are nothing but all those desires that you hold up in your mind.

If your mind is pure then it won’t have any desires, and if there are desires then your mind isn’t pure. It’s as simple as that.

However, we won’t be wrong to think that our mind can have different levels of purity. A person with fewer desires should have a purer mind than one with many desires. Right?

So, even if you think that you can’t give up all your desires in life, and I do understand that we all need at least a few basic desires in order to survive and live in this world, what you can do is try to give up as many of these desires as you possibly can from your life.

Besides the number of desires that you have in you, another factor that decides how much purity of mind you have is how intense is the nature of your desires.

You may have only a few desires, or even just a single desire, but if those desires are so intense within you that you keep thinking about them all the time, then that may actually be worse than having several little desires.

So, if you seek purity of mind, the two things you need to work upon are, first, to reduce the number of desires you have and, second, to reduce the intensity of the desires that you have.

Practice these two things in your daily life, and it will be enough to take you closer towards achieving a pure mind some day.

Now, talking about desires, it’s easy for me to tell you to give up your desires, and it’s easy for you to read and understand this. But what’s difficult for both of us is to actually practice this in our daily lives.

Once a desire gets attached to your mind, it becomes hard to detach it and let it go.

So, in reality, before we even begin to work upon removing our existing desires, we should first try not to form any new desires in our mind.

Otherwise, what’s the use of taking so much effort to remove one desire, if you are only going to replace it with another one. If you continue to form one desire after another throughout your life, you will never become free from them, and that also means that you will never become free of suffering.

By not allowing yourself to form any new desires, you at least make sure that you don’t further fall back in your path to achieve purity of mind.

As far as your existing desires are concerned, there is no other way except to try to live your life without indulging in them. I know how hard it can become to live so, but for better or for worse, that’s the only way there is.

When you try to give up your desires, you will find that some desires are easier to give up than others. The ones that are the toughest to give up are those that are deeply ingrained within us, and those that we have let ourself indulge in for the longest period of time.

There are a few basic desires present in all of us because of the nature of our very own body and mind: the desire for food, power, wealth, lust, fame and praise.

More often, it’s some form of these basic desires that are the toughest to give up.

This is because these desires, over a period of time, have formed such a tight grip on our mind that we can’t imagine living our life without them.

For those who only believe in seeking some form of pleasure in their life all the time, even the idea of living their life without any desire seems scary and impossible to them. They may even think that their life has no meaning without their desires.

But what they don’t realize now, and, unfortunately, what they’ll only realize when it’s already too late, is that the only thing these desires lead them to is suffering.

Even when you don’t see this suffering, even as you feel immensely happy in chasing your desires, what you fail to see is that this suffering always exists behind every desire that you chase.

The reason you don’t see, or become aware of, your suffering is that your desires make you think only of the joy that you can have now, and not of the pain that you’ll face tomorrow because of them; they make you think only of the temporary and not of the permanent; they make you think only of yourself and not of the world around you.

To overcome your suffering, you must uproot the very seeds of all these desires so that they are never born again.

Karma Yoga, Proactive

Karma yoga is one of the main paths of yoga that a practitioner can follow. The name comes from the Sanskrit term meaning “action” or “deed.” Therefore, it is the path of action, or selfless service towards others. It is considered by some that practicing karma yoga is the most effective way to develop spiritually.

Karma yoga is an ancient concept. The path of karma yoga is described in the Hindu sacred text, the Bhagavad Gita. It is also taught by zen teachers.

The intention when practicing karma yoga is to give selflessly for the good of others without thought of one’s self or attachment to the results of one’s actions. Acting in this way is considered the right way to approach service and it is said to purify the mind.

Karma yoga is relevant to all yogis because, to some extent, everyone must undertake some actions during their lifetime. By practicing karma yoga, all of these actions, even the most mundane, can become part of one’s spiritual path. Practicing karma yoga also means to fully accept one’s dharma, or life’s duty, and to let go of selfish desires. In doing so, one sublimates the ego.

Volunteering one’s time and effort is often used as an example of karma yoga, but, actually, all of the actions one undertakes can be karma yoga. It is considered the attitude to the action, rather than the action itself, which makes something karma yoga. This means acting with the right motives, in the right way, to the best of one’s ability, but surrendering attachment to the outcome. Some teachings recommend using chanting and mantras before and during the actions in order to develop the right mindset and approach to giving selflessly during one’s service.

  1. Sanchitta

This is accumulated past actions or karmas waiting to come to fruition. Sanchitta is the storehouse of every action you have ever done, in all the lifetimes you have ever lived. These are all of the unresolved past actions waiting to reach resolution.

  1. Parabda

This is the present action: what you are doing now, in this lifetime and its result.

  1. Agami

Future actions that result from your present actions are called agami karma. As you attempt to resolve past karma, you unavoidably create new karmas that you may or may not be able to resolve in your present life. If you don’t resolve them now, they will go into the storehouse to be resolved in a future life.

Today I want us to focus on Parabda karma. What are the present actions of how you move, breath, walk, talk, think impacting the next present moment? In other words, what are you doing today that demonstrates you are taking 100% responsibility for your life?

Proactive

Reactive Compliance: Measuring Activity

Many E&C programs, particularly those focused on Reactive Compliance, measure activity metrics, such as:

  • Trainings Completed
  • Policies Attested
  • Cases Reported
  • Disclosures offered

These activity metrics provide no insight into the effectiveness of the E&C program. A lot of these companies measuring these types of KPIs are primarily focused on defensive action: the annual Code of Conduct attestation and Code of Conduct Trainings are prime examples of a regulatory defense perspective.

Proactive Ethics: Measuring Effectiveness

In comparison to this we have seen wickedly effective E&C programs measure:

  • Employee Engagement
  • Ratio – Open Door vs Web/Call Centre
  • Ratio – Anonymous vs Disclosed
  • Root Cause Analysis
  • Sentiment Analysis
  • Benchmarking (Internal & External)

Personal ethics Introduction, Meaning

Personal ethics is the code of ethical guidelines that guide you in your personal and professional life. They often develop from your core values and work ethic into actionable goals used in a variety of challenging situations. Your personal ethics can, and likely will, contain common ethical guidelines that other people share, but they will vary in their level of importance and how to maintain them.

Some common personal ethics include:

  • Integrity
  • Selflessness
  • Honesty
  • Loyalty
  • Equality and fairness
  • Empathy and respect
  • Self-respect

Personal ethics are moral guidelines that can help you through tough situations and make the best decisions. You are likely to use your personal ethics to develop your career and handle many different workplace scenarios. You can develop a clear and effective personal ethics statement that outlines the values you practice in professional settings. In this article, we discuss what personal ethics is, describe how to write a statement and provide a sample to help you craft your own.

What are personal ethics?

Personal ethics is the code of ethical guidelines that guide you in your personal and professional life. They often develop from your core values and work ethic into actionable goals used in a variety of challenging situations. Your personal ethics can, and likely will, contain common ethical guidelines that other people share, but they will vary in their level of importance and how to maintain them.

Some common personal ethics include:

  • Integrity
  • Selflessness
  • Honesty
  • Loyalty
  • Equality and fairness
  • Empathy and respect
  • Self-respect

Personal ethics statement

A personal ethics statement is a written declaration of your closely held ethical principles.

Personal ethics statements can be developed for several reasons, including:

College applications: Many colleges are asking for written personal ethics statements from applicants to better understand the qualities and characteristics of prospective students. These statements can help students stand out from the other applicants when their personal ethics align with that of the university or college. Plus, many colleges are making it a requirement in the application process so they can take a closer look at behavior and motivations.

Job applications: Some companies are also asking for personal ethics statements because jobs are becoming more competitive. Personal ethics statements can be a part of the process for any job, but it is most common for leadership positions. Companies frequently look to improve and shape the quality of leadership within they have, which results in asking candidates to detail their personal ethics and apply them to their work and leadership potential.

Performance evaluations: Companies also ask for personal ethics statements at performance reviews to deeply analyze employees’ actions and how they implement the company’s—and their own ethics while on the job. These statements can be very telling since they show whether an employee understands the ethical implications of their actions and are working toward better alignment with the company’s values.

Personal ethics are moral guidelines that can help you through tough situations and make the best decisions. You are likely to use your personal ethics to develop your career and handle many different workplace scenarios. You can develop a clear and effective personal ethics statement that outlines the values you practice in professional settings. In this article, we discuss what personal ethics is, describe how to write a statement and provide a sample to help you craft your own.

Benefits of having a personal ethics statement

There are many benefits to having a personal ethics statement both for your career. Defining your personal ethics makes it easier to talk about in a well-thought-out manner, which may improve your performance in an interview. Personal ethics statements also:

Help you understand your priorities. Having a clear understanding of what matters most to you can assist you in advancing your career. Defining your personal ethics statement can help you understand your priorities. If you prioritize putting other people’s needs first, then you are more likely to be happy in a job where you help people. If you prioritize doing a good job and being highly productive, then you may make a good business leader. These differences in your priorities can help you determine what type of job is best for you and what jobs you should avoid because of conflicts with your personal ethics.

Make decisions easier. Alongside clarifying your priorities, having a personal ethics statement can also make decisions easier. There are many situations where you will need to decide on the right course of action. This is especially true if you lead a team or are a high-level executive in your company. Having a list of criteria can make weighing your options easier.

Improve goal-setting. Once you know what you will and won’t focus on, you can use your personal ethics statement to set goals for your development. You can identify which values matter most to you and identify opportunities and future steps you should pursue.

Refine your leadership style. Creating a personal ethics statement is an effective way to help advance your career, especially when applying to a leadership position or a position that requires a strong set of personal ethics. Knowing what you value and what you stand for can help you decide on a leadership style that enables you to lead teams to progress and success.

Promote Happiness

The benefits of a happy staff are obvious and self-evident. Aside from the numerous studies that link employee happiness to greater productivity in the workplace a fact that any disgruntled employee could have told you for free an unhappy workforce simply makes for a miserable environment.

While misery may love company, companies do not reciprocate the feeling. A despondent staff can be exhausting to interact with and low energy in their output.

Existential appeasement

Clear objectives and vision for business: While in a perfect world everyone would work to his or her fullest capabilities everyday, life does not work this way. Often, the eternal recurrence of day-in day-out repetition traps employees in a Kafkaesque nightmare of meaningless drudgery.

Psychologists will tell you that well-defined goals engender a more disciplined work ethic. Defined goals provide employees with a sense of purpose and allow them to understand how their work contributes to the final product or service.

Work without context feels aimless and ultimately alienates the individual from the team and vision they should feel proud to be part of.

Transparency: Just as you should be upfront about the goals and vision of the company, you should also be transparent about the state of the company. According to an employee survey from TinyPulse, transparency is the “No. 1 contributor to employee happiness…”

Stressing over rumors of layoffs or fears of economic downturn only serve to disrupt an employee’s focus. Even if the only news you have to share is bad news, be honest. The result will be much better than the anxiety and passive aggression likely to arise from an uninformed and frightened staff.

Help employees define their professional narrative: Given the high mobility of younger employees, jumping from company to company, mentorship might seem like a relic of the distant past, but this is not true. If you work to build your employees, they will work harder for you. Loyalty breeds loyalty.

Help your employees see how the work they do benefits them. Whether this means asking them about their five-year plan over lunch or discussing with them possible next steps after they out-grow their current role, these discussions will alleviate any doubt about the meaning of their work in their own lives and the purpose they should feel doing it.

Flexibility

Allow employees to make their own schedule: The monotony of the 9 to 5 workday is unnecessary and old fashioned. Allowing your employees to make their own hours, and judging them not by time served but by productivity, will give your employees a rewarding sense of freedom.

Many progressive companies, such as Netflix, have adopted make your own schedule policies and research shows that allowing employees to do so increases productivity.

Work from home option: With most office jobs being computer-based nowadays, offering a work from home option to your employees is a great way to boost happiness. The trick here is to make sure that all employees have the same benefit, as those who do not receive the option to work from home are sure to become disgruntled.

Also, keeping it an option is best, as some people (likely more extroverted people) will not like the isolation of working from home, while others (likely more introverted people) will thrive outside the office.

It’s the little things.

Cut back on meetings: While meetings are a vital part of any organization facilitating communication and a free exchange of ideas too many meetings, or meetings without structure, can bog down the workday and waste time.

The good news is that keeping your employees happy is not an impossible feat. Aside from the common sense things, like growth opportunities, good benefits, clear communication and recognizing employee success, their are a few other moves you can make to keep your employees smiling and working hard.

  1. Put it in writing

A handwritten thank-you to your direct reports, colleagues or boss can be more meaningful than an email. Such an effort requires some stationery, a little extra time to craft and deliver, but is often appreciated by the recipient. Employers need to promote a positive culture that includes recognition and feeling appreciated to attract and retain great people.

  1. Conduct a teambuilding event

It could be a friendly Academy Awards or March Madness competition, an off-site volunteer event, or ropes course. Such activities can help staff learn more about their coworkers and boost morale in the workplace. Make sure it’s presented as optional or that there’s something for everyone; not everyone may be a movie buff or sports fan.

  1. Have a party

Celebrating coworkers’ milestones such as birthdays, anniversaries, baby showers or good work can build comradery and bring employees together, especially if it’s for a good cause. Be clear that contributions are voluntary, and remember that happiness comes from more than just a free lunch or annual holiday party. If people don’t feel valued by your firm, these perks won’t make much of a difference.

“The key for managers is to express gratitude and to be really specific about the particular effort the employee made,” Carter says, “because that’s when people feel seen and recognized.”

  1. Ask for inspiration

There’s no secret ingredient to increasing happiness levels in the office. What works for a small CPA firm might not fly at a larger organization. Sure, you have to pay people well, but creating a great place to work where employees have pride in what they do begins with you.

Unless you’re a mind reader, you’ll never know what instills pride and motivation in your employees, until you ask. Then, follow through. Follow-up on that feedback and empower your employees to create a better workplace.

  1. Give them a sense of empowerment

Engaging your staff by giving them a chance to make decisions on their own, or with minimal direction, improves workplace happiness by making them feel more valued. Let them flex their creative muscles and influence important decisions in their jobs.

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