ETHICAL VALUES IN MANAGEMENT PRACTISE

Swami Bodhananda

This note was written by Pujya Swamiji in one of His
correspondences with PN Subramanian, CEO of BRF-ML, in 1995


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Subjective value has a meaning beyond the ego and Prakrti, beyond the Freudian Eros, beyond personal desire fulfillment. When Yajnavalkya says "all are dear for one's own sake' he seeks to point out the spiritual fulfillment. The words 'relative' or 'contextual' do not imply that there are no universally perceived and agreed upon values which are intrinsic-beyond the immediate, and which are pursued for their own sake. Atmanastu mokshartham jagat hitaya cha-Individual freedom and fulfillment is not opposed to, lokasamgraha, the welfare of the world. According to modern management customer satisfaction is the highest profit. The harmony between individual fulfillment and social well-being is implied in the Karma Yoga ideal, of serving the world as Lord's manifestation.

Dynamics of Action: [diagram not inserted here--please contact info@sambodh.org]

A B A-Macrocosmic-Isvaranugraha by following the law
Dharma
Yajna
B-Microcosmic- conditioning factors
(subjective and genetic)-Prarabdha turned into an asset by yajna karma
Karma
C-Self-effort-education, knowledge, will, ambition . . .as present personal effort


In this dynamics variables and uncertainties are many. The projection of the result of an action is difficult.

Here individual choice and group decisions are made based on the following:

a) Scriptures-the law of the land, custom, culture and religious teachings-
tasmat sastram pramanam te (Bhagavad Gita 16:24)

b) Advice of Experienced and Wise men, who are catholic in vision and are devoid of pettiness and jealousy- adha te karma vijikitsa vrtta vijikitsa va syat
ye tatra brahmana samadarsinah yukta
ayuktah aluksha dharmakama syat

(Taittiriya Upanishad)

c) One's own conscience-etat vimrsya yedhecchasi tata kuru
(Bhagavad Gita 18:63)

d) Total surrender to the leader-nimitta matram bhava savyasachin
(Bhagavad Gita 10:34)

e) To keep the end beneficiary of your action in mind-Gandhiji's ideal


Goals:

An organization has 6 goals:
1) Profit
2) Customer satisfaction
3) Continued growth
4) Quality
5) Worker satisfaction
6) Market Share

These goals are composite and cannot stand apart. Profit is a quantifiable and tangible goal. No organization can pursue any other goals on the face of mounting losses.

PROFIT [diagram not inserted here--please contact info@sambodh.org]

CUSTOMER
SATISFACTION QUALITY

MARKET SHARE

This is also a dynamic concept and the variables are changing and not static.

But Profit will always be at the apex or in the center of business goals. Transparency in dealings, quality production, speed, innovation, service to the customer, enrichment of the worker, social responsiveness etc. will enhance the competitiveness and profitability of the organization.

Reasons for unethical practices:

1) Lack of competition and market mechanisms.
2) Unimaginative impractical laws and restrictions in pursuance of uneconomic and non-productive goals: e.g.: socialism, svadesi, reservation of jobs without social investment in education and health.
3) Emphasis on wealth sharing than wealth creation.
4) Democratic and egalitarian ambitions of people in the context of economic and social/caste backwardness.

Therefore, apart from building individual character and organizational culture, an open, transparent, competitive, wealth generating society is to be created. To the extent we move towards it to that extent corruption and unethical practices will decrease. At least the oppressive character of corruption will be lessened. The highly corrupt economies of the world-Japan, Italy-are fast growing economies too.

Conflict between Manager as a Person and Executive:

In a highly corrupt and backward economy like India, with innumerable legal and bureaucratic bottlenecks, economic wisdom and moral sensitivity could come into direct conflict. In such occasions managers will have to take a practical though morally and ethically sensitive decisions.

Rama killed Vali hiding behind a tree. Krishna could be accused of unethical practices in the battlefield of Kurukshetra. Managers should have a dharmika lakshmana rekha, a tripwire, beyond which they would not go. The welding of practical considerations and ethical sensitivity is done in the heart of the managers. And it is an ongoing process.

The reasons that you have identified for corruption, tax evasion, avoiding PF etc. are exhaustive provided we read them in the proper context. A third world government promulgating first world social security laws for business and industry cannot expect full compliance-hence tax evasion, avoiding PF, pollution etc. I don't think government departments avoid taxes or PSUs avoid PF. Because they fall back on tax payer's money.

I would say corruption is good economics and bad morality. It is the economic grease for the engine of a dysfunctional economy.

Analyze the phenomenon of corruption in this background. Let us concentrate on understanding the phenomenon than condemning it.

The solution to the problem lies in leadership, organizational culture and a growth oriented, wealth generating, open, competitive market economy, with democracy and spiritual values.

The New Principles of Training should Include:

1) The Law of Brahma: Individual is the field of infinite potentialities.

2) The Law of Dharma: Every individual by action interacts with the society and environment, and vice versa, and creates unending ripples and consequences-the interdependence of independent units.

3) The Law of Karma: Every individual action creates subtle impressions in the individual psyche backward and forward-reprogramming his destiny and background-choice maker-responsibility

4) The Law of Maya: There is constant flux. There is need for innovation and change, renunciation, detachment and continuous improvement.

5) The Law of Yajna: There is the need for teamwork, sharing, giving, synergy etc. what we give come back to us in thousand fold. There is need for circulation.

6) The Law of Yoga: There is a balance of forces and factors-rootedness in the core/center-flexible regarding periphery.

7) The Law of Janma: There is recreation, reinvention, evolution, devolution, degradation, going back and forth on the ladder of Karma.

If you don't grow and evolve, you will decay and perish.
So, keep growing!