Business Ethics & CSR PDF

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Praxis Business School

Prof.Raj Kiran Syam

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business ethics corporate social responsibility ethical dilemmas professional ethics

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This document provides an overview of business ethics and corporate social responsibility, including the nature, significance, and resolution processes for ethical dilemmas. It also covers ethical concerns in government and offers a framework for resolving ethical dilemmas. Key concepts such as administrative discretion, corruption, and nepotism are explained. The document includes discussions on ethical dilemmas in the workplace.

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BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY NOTE: This is for reference only. Recommended books should be read for better understanding. Syllabus Unit IV: Ethical Dilemma: Nature, significance; dilemma resolution process; important areas of managerial dilemmas, Types of Dilemmas, Potter’...

BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY NOTE: This is for reference only. Recommended books should be read for better understanding. Syllabus Unit IV: Ethical Dilemma: Nature, significance; dilemma resolution process; important areas of managerial dilemmas, Types of Dilemmas, Potter’s Box, Ethical concerns in Government. UNIT -IV ETHICAL DILEMMA Ethics are the moral standards and principles by which entities (individuals and organizations) govern their behaviors and decision-making. When these standards and principles conflict with each other in a decision-making situation, an ethical dilemma may occur. An ethical dilemma (ethical paradox or moral dilemma) is a problem in the decision-making process between two possible options, neither of which is absolutely acceptable from an ethical perspective. Ethical dilemmas are especially significant in professional life, as they frequently occur in the workplace. Some companies and professional organizations (e.g., CFA) adhere to their own codes of conduct and ethical standards. Violation of the standards may lead to disciplinary sanctions. Almost every aspect of business can become a possible ground for ethical dilemmas. It may include relationships with co-workers, management, clients, and business partners. An ethical dilemma takes place in a decision-making context where any of the available options requires the agent to violate or compromise on their ethical standards. We observe that ethical dilemmas can be characterized by the following three elements: 1. The agent must be faced with a choice or the need to make a decision. 2. The agent must have more than one course of action available. 3. The agent recognizes that all available courses of action require them to compromise on some personally held ethical standard or value. Ethical standards are the moral frameworks that individuals and organizations use to guide their decision-making and differentiate between right and wrong. Companies and 1 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY professional organizations may adopt their own ethical standards and require that employees/members adopt those standards as part of their personal business ethics. Common ethical practices in the workplace include:  Telling the truth  Taking responsibility for one’s actions  Following company policies  Fulfilling professional obligations  Following through on commitments  Following the law  Acting in the best interests of shareholders  Acting in the best interests of customers  Acting in one’s own best interests  Treating others equally  Conducting sustainable business practices  Maximizing profits  Avoiding layoffs Ethical dilemmas happen because ethics are inherently contradictory. Employees may face situations where compromising on telling the truth or following the law seems to serve other valued goals, such as maximizing profits or avoiding layoffs. NATURE/CHARACTERISTICS OF ETHICAL DILEMMA There is a right and wrong choice. In an ethical dilemma, you must decide between doing the right thing and the wrong thing. This is true even if you aren’t sure yet what the right thing is! Sometimes the right choice is very clear, but sometimes it requires more work to figure it out. If you’re dealing with a regular dilemma or an everyday problem, there may not necessarily be a choice that is wrong or right. Someone (or something) could be hurt. In an ethical dilemma, someone or something could be harmed if the wrong decision is made. However, that harm doesn’t just refer to physical pain—it can also mean being emotionally hurt. This could happen if the wrong decision causes someone to be upset, offended, or insulted. The hurt could also refer to harm that a business’s reputation or financial situation might encounter if someone makes an unethical decision. Imagine that you work on a project with a classmate, and then the classmate takes all the credit for your work. Your classmate isn’t being respectful, and now your grade will likely suffer. Or imagine that you don’t want to get blamed for a mistake you made at work, so you tell your boss that your coworker made the mistake. This isn’t honest, and your coworker will get in trouble. On the other hand, if you have two job offers and you’re trying to decide which job is the best one for you, this isn’t an ethical dilemma. It might be a tough decision for you, but no one is likely to be harmed. 2 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY They often deal with what’s legal. A large part of ethical behavior is following the law. For example, if someone is considering stealing money, that’s an ethical dilemma because there is a right and wrong choice—and one choice is clearly illegal. That doesn’t mean that simply doing what’s legal is enough, though! There are many behaviors that are technically legal but that may still be untrustworthy, dishonest, or otherwise unethical. Few other characteristics are:  Honestly there are more than three of such a contra virtual subject.  Choice between equally undesirable alternatives.  Different courses of action possible.  Involves value judgments about actions or consequences.  Data will not help resolve issue. CAUSES OF DILEMMA Understanding the different causes of ethical dilemmas will help you in coming up with the best solutions to these problems while improving your chances of avoiding future incidents. Here are some of the most common reasons why ethical dilemmas exist in both the individual and organizational levels. 1. Ignorance There are situations wherein unethical practices are being done by some people because they are not aware that such acts are considered unethical. While ignorance cannot be considered as an excuse for inappropriate behavior, it does happen from time to time. There are many reasons why such ignorance exists, including lack of education, cultural norms, and the like. When people are not aware that such acts are wrong, they tend to continue the acts. 2. Discrimination Discrimination is also one of the most important causes of inappropriate corporate behavior. There are different types of discrimination, and they can involve variables such as race, sex, nationality, age, and sexual orientation. This has historically caused some of the most unethical acts known to man. While increased social awareness and campaigns have greatly reduced the number of ethical violations in general, people and organizations still commit discrimination in business, both intentional and otherwise. 3. Management Pressure One major cause of ethical dilemma in business is management pressure. 3 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY In a business setting, being able to meet goals set by management is an overriding need that pervades all levels of the organization. Individuals of different roles within the business often face a difficult choice, especially during difficult situations. They ask questions like: should they continue to follow appropriate protocols at the risk of loss, or should they bend the rules as needed to comply with the bottom line? So, when under pressure from management, people may become more prone to committing ethical violations. 4. Personal Ambition Personal ambition is one of the biggest reasons why individuals run into ethical dilemmas and occasionally decide on choosing the less ethical path. Whether you are the owner of multiple businesses or an employee at the bottom of the organizational chain, everyone has their own ambitions. Oftentimes, to fulfill these ambitions, one ends up making a choice that might not be the most ethically appropriate. 5. Leadership The progress of an entire business organization is partly dependent on the type of leaders these organizations have. Leaders are tasked with making the decisions for the group, weighing all matters including ethical considerations. Leadership (or the lack of it) can greatly determine if a business will be run ethically or not. Thus, leaders in the business world should be trained in business ethics so they know exactly what they should do should dilemmas arise. TYPES OF ETHICAL DILEMMAS Ethical dilemmas come in different types. The distinctions between these types are often important for disagreements about whether there are ethical dilemmas or not. Certain arguments for or against their existence may apply only to some types but not to other types. And only some types, if any, may constitute genuine ethical dilemmas. Epistemic vs Ontological In epistemic ethical dilemmas, it is not clear to the agent what should be done because the agent is unable to discern which moral requirement takes precedence. Many decisions in everyday life, from a trivial choice between differently packaged cans of beans in the supermarket to life-altering career-choices, involve this form of uncertainty. But unresolvable conflicts on the epistemic level can exist without there actually being unresolvable conflicts and vice versa. 4 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY The main interest in ethical dilemmas is concerned with the ontological level: whether there actually are unresolvable conflicts between moral requirements, not just whether the agent believes so. The ontological level is also where most of the theoretical disagreements happen since both proponents and opponents of ethical dilemmas usually agree that there are epistemic ethical dilemmas. This distinction is sometimes used to argue against the existence of ethical dilemmas by claiming that all apparent examples are in truth epistemic in nature. In some cases, this can be shown by how the conflict is resolved once the relevant information is obtained. But there may be other cases in which the agent is unable to acquire information that would settle the issue, sometimes referred to as stable epistemic ethical dilemmas.  Self-imposed vs World-imposed The difference between self-imposed and world-imposed ethical dilemmas concerns the source of the conflicting requirements. In the self-imposed case, the agent is herself responsible for the conflict. A common example in this category is making two incompatible promises, for example, to attend two events happening at distant places at the same time. In the world-imposed case, on the other hand, the agent is thrown into the dilemma without being responsible for it occurring. The difference between these two types is relevant for moral theories. Traditionally, most philosophers held that ethical theories should be free from ethical dilemmas, that moral theories that allow or entail the existence of ethical dilemmas are somehow flawed. In the weak sense, this prohibition is only directed at the world- imposed dilemmas. This means that all dilemmas are avoided by agents who strictly follow the moral theory in question. Only agents who diverge from the theory's recommendations may find themselves in ethical dilemmas. But some philosophers have argued that this requirement is too weak, that the moral theory should be able to provide guidance in any situation. This line of thought follows the intuition that it is not relevant how the situation came about for how to respond to it. So e.g. if the agent finds herself in the self-imposed ethical dilemma of having to choose which promise to break, there should be some considerations why it is right to break one promise rather than the other. Utilitarians, for example, could argue that this depends on which broken promise results in the least harm to all concerned. Obligation vs Prohibition An obligation is an ethical requirement to act in a certain way while a prohibition is an ethical requirement to not act in a certain way. Most discussions of ethical dilemmas focus on obligation dilemmas: they involve two conflicting actions that the agent is ethically required to perform. Prohibition dilemmas, on the other hand, are situations in which no course of action is allowed. It has been argued that many arguments against ethical dilemmas are only successful in regard to obligation dilemmas but not against prohibition dilemmas.  Single-Agent vs multi-Agent Ethical dilemmas involve two courses of action that are both obligatory but stand in conflict with each other: it is not possible to perform both actions. In regular single-agent cases, a 5 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY single agent has both conflicting obligations. In multi-agent cases, the actions are still incompatible but the obligations concern different people. For example, two contestants engaged in a competition may have both the duty to win if that is what they promised to their families. These two obligations belonging to different people are conflicting since there can be only one winner.  Other types Ethical dilemmas can be divided according to the types of obligations that are in conflict with each other. For example, Rushworth Kidder suggests that four patterns of conflict can be discerned: "truth versus loyalty, individual versus community, short term versus long term, and justice versus virtue". These cases of conflicts between different types of duties can be contrasted with conflicts in which one type of duty conflicts with itself, for example, if there is a conflict between two long-term obligations. Such cases are often called symmetric cases. The term "problem of dirty hands" refers to another form of ethical dilemmas, which specifically concerns political leaders who find themselves faced with the choice of violating commonly accepted morality in order to bring about some greater overall good. STEPS IN RESOLVING ETHICAL DILEMMA Ethical dilemmas can be resolved through effective decision-making. Since we are so often called upon to make independent judgments, it is important to incorporate the NADSP Code of Ethics within our daily practice. Many ethical dilemmas can be resolved easily with consultation and reflection. However, some issues cannot. Therefore, to help make it easier to solve difficult ethical dilemmas, consider a framework from which to work. The College of Direct Support has provided an approach to ethical decision-making with the NADSP Code of Ethics. This is called the RIGHT Decision Method. RIGHT Decision Method steps: 1. Recognize the ethical dilemma. 2. Identify points of view. 3. Gather resources and assistance. 4. Have a plan. 5. Take action based on ethical standards. Sometimes there really is a “right” way to make decisions under difficult conditions. The RIGHT Decision Method gives us tools to make sound ethical decisions and resolve ethical dilemmas. RIGHT is an acronym that stands for each step of the decision-making process: R: Recognize the ethical dilemma. The first step is recognizing the conflicting obligations and clearly stating the dilemma. It is important to recognize and use the NADSP Code of Ethics as you begin with this step. You may consider — 6 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY In what ways is the Code of Ethics applicable to this issue? I: Identify points of view. The second step is identifying points of view in the situation. This means considering the viewpoint of the person receiving services, your colleagues, other parties involved, and the NADSP Code of Ethics. Restating the problem clearly to someone else can also help you check out whether you have interpreted the situation accurately. It is important to understand how the person receiving supports feels. Consider — What does the person receiving support expect? Then think about others who are involved in the situation and how they feel. What do these individuals want or need? G: Gather resources and assistance. The third step is gathering resources and assistance that might help you figure out what to do. Now that you have an accurate understanding for the problem and various perspectives, this step encourages you to consider other people who may be able to assist you. You may also need to find important information. For example — Are there agency policies that could be considered? What do these documents say? Are there any laws or regulations in the state that may influence your decision-making? Is this a situation where legal advice is needed? Does the person have a legal representative who must be involved? Are there community resources that might help resolve the problem? H: Have a plan. The fourth step means that you are ready to make your decision. Formulating a plan will help you decide the best way to put your ideas into action. Once you have considered the following issues, write a plan down and identify step-by-step actions that you plan to take — Whom must you speak to first? What will you say? What preparations will you make? What steps can you take to ensure the best possible outcome for your decision? How might people react? T: Take action based on ethical standards. The fifth and final step is implementing the plan you developed in the manner you decided. Then, it is important to monitor its success using the success indicators you identified in the planning process to help you reflect on your decision — 7 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY What worked well and why? What did not work well and why? What would you do differently after you have evaluated your outcomes? IMPORTANT AREAS OF MANAGERIAL DILEMMAS 1. Conflicts between employees. Individual differences in employees’ abilities, temperaments and work styles can frequently lead to tension and problems on the job. When coworkers clash, you face a dual dilemma — you must deal with the immediate issue as well as prevent fall-out that could negatively affect the rest of your staff. Meet individually with every employee involved and, without assigning blame, restate the situation as you see it. Give each person the chance to give his or her side of the story. Listen as objectively as possible, even if you disagree with certain viewpoints. Then, encourage the parties to collectively brainstorm ways to resolve the problem. Emphasize that your goal is not to decide who’s right and who’s wrong, but to help the team work together more harmoniously. Although you should guide the discussion, make sure they understand that it is their responsibility to reach agreement. If the conflict proves to be intractable, you may ultimately have to reassign or transfer one or more of the individuals. 2. Low morale. Many factors can cause a decline in morale, including a downsizing or uncertainty about a company’s future. When employees are demoralized, they are likely to fall into a self- perpetuating cycle of inefficiency and low productivity. Turnover may increase as staff members seek more secure jobs elsewhere. As a manager, you must take decisive action to reverse such trends and bolster spirits. Meet with your staff and acknowledge that the company has been through a difficult period. Thank them for persevering and continuing to do their best. If you honestly can, reassure them that the situation has stabilized. If this is not the case or if you are not in a position to comment, avoid making promises you won’t be able to keep as your staff may be further demoralized by assertions that eventually prove to be untrue. On an ongoing basis, remember to always recognize and reward good performance. A simple thank you for public comment about a job well done can help boost lagging morale. 3. Performance problems. Most managers have at least one staff member who doesn’t perform up to his or her potential. The best strategy for dealing with this dilemma is to hold periodic performance reviews. 8 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY Schedule a private meeting with the employee and review recent activity. Start by recognizing instances when the person exceeded expectations and explain why you value this type of behavior. Then discuss problematic areas. Together with the individual, establish performance goals and discuss how to monitor progress. Set up another review session as a check-point. There will be times when no amount of monitoring can reverse weak performance. When you don’t see an appreciable change after ample time and numerous efforts to assist the worker, termination may be the best option. An under-performing employee is generally an unhappy one, and this can negatively impact the rest of your staff. 4. Chronic tardiness/absenteeism. Most employees are late or absent from time to time, but if one of your employees comes in late with alarming regularity or has a high frequency of absence, you must take action. Meet privately and say that you’re concerned about the situation. Give him or her a chance to explain the tardiness or absences — a compelling personal reason (family problems or a medical condition, for example) may be the root cause. If that’s the case, express your support and discuss ways that the person can still meet his or her job-related responsibilities. If the employee has no reasonable explanation, reiterate the company policy and state that habitual tardiness or absence will not be tolerated. Be prepared to take the necessary disciplinary action if the problem persists. 5. A top performer hands in her resignation. When one of your most talented, valuable employees breaks the news that he or she has decided to accept a position elsewhere, your first instinct may be to make a counter offer or try to persuade him or her to stay. But if an employee is determined to move on, neither of these strategies will have an effect. Although it’s difficult to lose a good staff member, you must realize that people’s professional and personal goals change over time. Ask if the employee would be willing to stay on long enough to help train a replacement. At the very least, he or she should tie up as many loose ends as possible and provide you with a final status report on unfinished projects. Conduct an exit interview, being sure to ask what made the employee decide to leave. Pay close attention to the answer in case it points to a situation you have the power to change (for example, the individual felt there were no further opportunities for advancement). Finally, request their new contact information, so that the person remains part of your professional network. No business is immune from dilemmas that, if not handled wisely and in a timely fashion, could cause decreased productivity, low employee morale and diminished profitability. But by responding strategically, you’ll find that such problems arise less frequently and pose little threat to your company’s continued stability and success. 9 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY ETHICAL CONCERNS IN GOVERNMENT For a public official who try to function as a professional, the demands of law, his duty, impartiality, due process, provides a productive ground in which ethical dilemmas arises. Whistle blowers face this problem because their disclosure may institute a crime when the on-going misbehavior is severe. Ethical standards are not organized, so there are always chances that dilemma arises and discrepancies always occur about appropriate behavior. It can be shown in other studies that an ethical dilemma arises in a situation when the choices or behavior is undesirable and presents harmful ethical consequences. Right or wrong is not clearly recognizable. Mainly, Ethical Dilemmas Faced by Public Servants are as follows: 1. Administrative discretion 2. Corruption 3. Nepotism 4. Administrative secrecy 5. Information leaks 6. Public accountability 7. Policy dilemmas Administrative Discretion Public bureaucrats are not just facilitators of public policy. They make decisions relating to the lives of citizens, for example, about taxes, survival and the dismissal of people. In doing so they exercise discretion. The main concern is that they should make decision to avoid ethical dilemmas. In other words, the promotion of general welfare depends on the use or exploitation of administrative discretion. It is factual that within the rules and regulations laid down by legislature and within the prescribed procedures, there is plenty of opportunity for the public official to use his discretion. When faced with alternatives the choice of the public official poses an ethical problem, the choice may be acceptable to only a small section of society. The problem is that the selection of one path of action from among several alternatives is often made on the basis of personal preference, political or other associations, or even personal embellishment, thus ignoring identified facts and thus the possibility of rational decision making. It could well be that all the prescribed rules, regulations and procedures are adhered to but that the discretionary choice may be regarded as unprincipled or even fraudulent. Corruption In government offices, corruption is major issue. The majority of bureaucrats maintain the high standards required by public office and are enthusiastic to promoting the general welfare. The moral standards of public officials are, however, directly related to society as a 10 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY whole. If the public accepts that in order to secure a quick response from a public official some monetary or other incentive is necessary, and the official accepts the incentive, then the standards of ethical conduct of officials and the public are in fact in harmony from the point of view of the public. The corruption of public officials by private interests is usually indirect, for example, favours by the public to the official under obligation and he gradually substitutes his public loyalties to those doing him favours. The ethical dilemma that faces the public officer with regard to corrupt practices as result of private interests primarily concerns his reaction to the situation. If a corrupt practice or an attempt to corruption is exposed, it is quite possible that the official’s personal loyalties or party political relationships may be in conflict with his official responsibilities. Administrative Secrecy In government offices, another major ethical dilemma is the secret conduct of public business. This is especially so because confidentiality can provide an opportunity to cover up unethical behaviour. Secrecy is an ally of corruption and corruption is always practiced in secret way. It is generally recognized that in a democracy, the people have a right to discern the working of the government and it would be in the interest of the public for the administration of public affairs to be conducted openly. Nepotism It is very common practice in government offices. Nepotism is the appointment of relations and/or friends to public positions and consequently, overlooking the merit principle, may lead to the declining of the quality of the public service. This upsets trust and resulting in unethical management, owing to the ability of a select few to weaken control measures on account of their personal relationship with the policy-maker, and by reason of their not being easily dismissed or replaced by others. It occurs in private and government sector both. Private-sector companies that involve in nepotism risk internal displeasure. Workforces may stop giving their best and accept a career at their current level. Worse, they may move on to another position where upward mobility is possible. In either case, the current company loses. Another by-product of nepotism in the private sector is its potential to dilute the talent pool by inserting less-qualified personnel into positions that suit others better (W. Davis Folsom, Rick Boulware, 2009). It can be said that those who are appointed with the view that they will conform to the standards and views of their appointing authority could prove to be problematic. The favored treatment of one individual over another, without taking into account the relative merit of the respective individuals, signifies nothing but victimization of an individual. Information Leaks It has been seen that government official are so careless that there are cases of information leak. Official information is often a sensitive nature such a pending tax increases, rezoning land, cost-cutting of staff that disclosure of the information can lead to turmoil, corrupt practices or, for some individuals, improper financial gains. Leaking official information at a 11 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY date prior to the public announcement thereof is a defilement of procedural prescriptions and can result in an ethical dilemma. Public Accountability Public officials have great responsibility to implement key public policies. They ought to be accountable for their official actions to their superiors, the courts and the public. It is however, possible for them to hide behind prescribed procedures, the cloak of competence and even political office-bearers. Policy Dilemmas Policy makers in government bodies are often challenged by conflicting responsibilities. They have definite loyalties to their bosses, but also to society. They have liberty to act on behalf and in the interest of others, but they must be answerable to others, their superiors and society for their actions. The official’s obligation to respect the political process may conflict with his view on how the objects of policy making are treated. It can be understood that the dilemma of the public official is the clash between his opinion of the public interest and the requirements of law. Other Problem Areas: Besides these areas of possible conflict, other problem areas from which ethical dilemmas may arise such as the political activity of public servants resulting in divided loyalty on the part of those officials who commiserate with the views of a specific political party. Other more understated ethical problems, such as the abuse of sick leave privileges, extended tea breaks and the violation of office rules in general. Process of resolving an ethical dilemma in administration: An ethical dilemma is visualized as intricate matter for the executives of both public and private companies and demanding than a problem of what it appears to be. These dilemmas cannot be solved based on its initial status of presentation. The decision maker faces a several challenging situation in which he faces mutually exclusive alternatives that choosing one option means opposing the other that is equally significant (Rapoport, 1960). The reason is that dilemmas, unlike problems, cannot be solved in the terms in which they are initially presented to the decision-maker. Nevertheless, a dilemma is also dealt properly by modifying and reformulating all the options in an organized and intelligible manner. To resolve ethical dilemmas, a sequence of logical reasoning sets is proposed to assimilate and rearrange the process of dealing with ethical dilemmas. They are: 12 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY Accountability The faithfulness of the administration to the ministers is grounded on their responsibility to be answerable and responsible to the legislature who is accountable to the will of the people and their general interest. It is then an essential ethical duty bearing on civil servants to show a spirit of impartiality and discretion and keep their own personal preferences out in the performance of their duties and responsibilities. The rule of law and the principle of legality The rule of law is central and universal to politics and society. Respect and obedience to the principle of legitimacy is an important requirement to exercise authority. Law establishes the minimum standard for ethics. Unprincipled conduct clearly leads to violation of law. Thus for enforcement, law should be priority in case of dilemma. Professional integrity: In administrative job, knowledge and expertise should be used with certain standards defining professional ethics such as, avoiding corruption in the delivery of services. Responsiveness The government openness to its citizens is major issue in political economy. In this regard, ethical reasoning in state action involves those public institutions be responsive to society and pay attention to the requirements and demands of the people, facilitating access to services and creating an supporting environment for sustainable human and social progress. POTTER’S BOX FOR ETHICAL DILEMMA 13 Prof.Raj Kiran Syam BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY As former British PM Anthony Eden said, “Corruption has never been compulsory.” Yet, a lot of public servants resort to corruption. Many believe all bureaucrats demand bribes (which is not the case). But as you plan on entering the public services, you must be wondering how you will be able to resist yourself from working unethically and not succumbing to pressure. Ralph Potter Jr., a professor at Harvard University, introduced the Potter Box of Moral Reasoning which can help anyone in taking ethical and justified decisions. Read on to know more about the Potter Box and how it can prove to be useful in decision making. There are four aspects to be taken into account to ensure one takes ethical decisions, as put forth by Prof. Potter. These steps can be repeated to ensure that there eventually is no conflict between any two aspects. “The Potter Box advocates the division of ethical reflection into four main steps: first two of these steps seek to generate the relevant information, and the latter two are normative or prescriptive.” The four aspects to be taken into account are as follows: Facts: Take into consideration all the facts at hand. It is important that one does not hide any realities or rope in personal judgments. This step helps one understand the problem at hand precisely. Values: When it comes to values, one needs to evaluate which values are more important in the given situation. This helps the examiner in determining conflicting viewpoints. Once the values have been determined, it gets easier for one to chalk out potential plans to solve the issue. Principles: We should all be aware of these 5 principles put forth by famous philosophers - Aristotle’s Golden Mean, Immanuel Kant’s Categorical Imperative, JS Mill’s Principle of Utility, John Rawl’s Veil of Ignorance, and the Judeo-Christian point of view of the person as an end. By deciding upon which principles can be applied in a given situation, the examiner is well-prepared to understand the problem as well as solve it. Loyalties: Finally, the inclinations of the examiner also become important. One must sort out the conflicting loyalties, if applicable. Not having clarity with respect to one’s loyalties can prove to be detrimental further on. The 5 loyalties that one can have are towards their own conscience, towards their followers, towards an organization, towards colleagues, or towards society. For example, a news reporter might find it more important to ensure that the privacy of individuals is protected, over the right to information of the viewers. 14 Prof.Raj Kiran Syam

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