On becoming a professional: The role of Ethics

Vasanthi SrinivasanChairperson Centre for Corporate

Governance and Citizenship

What is the difference between Ethics, morals and values?

What is Ethics?

What is Ethics and morality?• It is possible for a person to claim a high moral status,

either as a vegetarian, or as a truthful person, or as a good parent, and yet live with others who do not abide by such norms. On the other hand, it is not possible to be ethical alone. Ethics is setting up rules of interaction where other people matter. This is the reason why ethics demands transparency and accountability in public life. It becomes much more realizable as it is built into our conduct and is not an outcome of individual will power or exceptional conduct.

Dipankar Gupta, Sociologist at JNU

You can’t be value free

• Every time you make a decision, you are making a value choice

• e.g. A is promoted rather than B, because A is more efficient though B is more loyal

• “Objective” and “rational” decisions are also based on an implicit hierarchy of values

Norman Augustine’s four point checklist for ethical behaviour

• Is it legal?• If someone else did this to you, would you

think it was fair?• Would you be content if this were to appear

on the front page of your hometown newspaper?

• Would you like your mother to see you doing this?

Ethics @ IIMB

Which is of this is unethical?• Copying a paragraph from a book without acknowledging the

author• Making sure books are available in the library by deliberately

mis-shelving/hiding them or removing pages from them• Lying about personal circumstances for an extension • Obtaining and using an essay from a previous year’s student • Making up references to put in the bibliography• Not contributing a fair share to group work that is assessed

for a group mark (www.ldu.leeds.ac.uk/plagiarism/docs)

Ethics @ IIMB

• Copying – in assignments, exams, term papers – always wrong– Expect strict punishments if caught– Both source & actual copiers punished equally– In group assignments/projects, all members

get the same punishment– Be responsible: Do not leave

assignments/project reports on public computers

Ethics @ IIMB

• Plagiarism – Presenting the words or thoughts of another as one’s own – is unacceptable in the academic context– Do not copy and paste from the internet

without full citation (complete URL, date of download)

– While sourcing material from other articles/books, use footnote/endnote feature of MS-Word to link every quote to full reference of source

Ethics @ IIMB

• Attendance – No proxies, be on time– Sign the attendance sheet

• Professional behaviour– Preparation for class, group meetings– Keep your word (trust begets trust)– No free-riding– Punctuality

Ethics @ IIMB

• Community Responsibility– Treat common property carefully– Do not abuse positions of responsibility or trust– Follow hostel rules – guests, noise, no pets– Keep library books carefully

Ethics is Important…

BJ

• BJ was a high-profile student of PGP 1999-2001

• Graduate of one of the IITs• Did his summers at Lehman Brothers• Was found to have falsified information

about his performance at IIT• Debarred from placement• Not allowed on campus

MK

• MK was a PR in PGP 2001-03• Got excellent job offers – but they were

disproportionate to his academic performance• Found to have mis-stated CGPA in resume• Had tampered with CGPA in master-list• Job offers cancelled, graduation delayed• Because of his reputation, is unable to move

to larger companies

Indian banker dismissed in London

• <http://economictimes.indiatimes.com/articleshow/1376432.cms>

• Economic Times – India, January 18, 2006• Anshul Rustagi, 26, an MBA from IIM-Bangalore

and a rising star in the Deutsche Bank London, was dismissed on Monday for gross misconduct after a disciplinary hearing. A week ago, he had been suspended and was facing disciplinary action for allegedly overstating his profits by 30 million pounds.

Rustagi or Rusty as he was popularly known was reportedly dealing in a market for securities known as collateralised debt obligations, or CDOs.

Reports say that Rustagi dealt largely in iTraxx indices - derivatives that reflect a basket of credit default swaps. A colleague, managing the desk while Rustagi was on holiday, reportedly discovered the losses. ....

Beware ofthe Standard Excuses

“I didn’t know it was wrong”

“I didn’t think it would hurt anyone”

“Everyone else does it”

“It was the only way to get the job done”

What is my personal compass?

• Recognizing that what you are doing is unethical without rationalization and denial

• How do you know this??? Friends, acquaintances and peers (typically the phrases used are ”it doesn’t sound right” or “who is going to pay for this?”

• Start with “what is the worst that will happen if this is found out?”

• Use the three tests – mom test, newspaper test and mirror test

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What is in it for me by being ethical??

• Good sleep• Clear conscience • Long term respect• Credibility • Referrals in business and access in personal

life • Respect – this is earned never demanded • “it is good to be good”

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