BUSINESS ETHICS INDIA RUSSIA Heini, Laura, Elisa, Sebastiaan
India - भ रत गणर य Population of 1,198,003,000 Became independet 15.8.1947 (UK) Democracy Hinduism accounts for 80.5% of the population of India (Census, 2001) (13% Islam, 6,5% other) Built on the pillars of Dharma (Way of life) Artha (Wealth & Prosperity) Kaam (Desires) Moksha (Nirvana) 10 Elements of Dharma: Patience, Control over desires, Forgiveness, no stealing, physical and spiritual cleanliness, control over sense organs, wisdom, education and learning, truthfulness and anger management. Form the basis of the ethical framework of Hinduism
Russia Population of 142,008,838 Orthodox religion Beliefs: Trinity Sin, salvation & the incarnation Ressurection Bible, holy tradition and the patristic consensus Territorial expansion and doctrinal integrity The Theotokos and the saints Communism > Democracy (?) Short history of business
Business Ethics in India Organization > business strongly hierarchical Religion strongly affecting individuals Hard working employees easy to get them work overtime Corruption is a great problem Complicated trade and financial rules
Tata Best known for manufacturing small and cheap cars in India Community iniatives, Environment policies, etc. Employee asking JRD Tata about Tax avoiding: "But sir, it is not illegal." JRD asked: "Not illegal, yes. But is it right? Tata Motors has a whistle blowing policy: http://ir.tatamotors.com/pdf/whistleblower-policy.pdf However Criticized
Indian Council of Fair Business Practices (CFBP) Code of Fair Business 1. To charge only fair and reasonable prices and take every possible step to ensure that the prices to be charged to the consumer are brought to his notice. 2. To take every possible step to ensure that the agents or dealers... do not charge prices higher than fixed. 3. In times of scarcity, not to withhold or suppress stocks of goods with a view to hoarding or profiteering. 4. Not to produce or trade in spurious goods of standards lower than specified. 5. Not to adulterate goods supplied. 6. Not to publish misleading advertisements. 7. To invoice goods exported or imported at their correct prices. 8. To maintain accuracy in weights and measures of goods offered for sale. 9. Not to deal knowingly in smuggled goods. 10. Providing after-sales service where necessary or possible. 11. Honoring the fundamental rights of the consumers Right of Safety, Right to Choose, Right to Information and Right to be Heard. 12. Discharging social responsibilities and the responsibility to protect the environment and nature s infrastructure. 13. Ensuring that the product-warranty is offered in simple, unambiguous and concise language, highlighting the rights of the consumer under it.
Ethical principles in Russia Law. Businessman should obey legal norms, the rest values are beyond his activity. Clan. Moral norms (responsibility, decency, fidelity) are obligatory for businessmen among his business partners and are not obligatory among the competitors. Reputation. Moral and legal norms are obligatory for all business actors. Businessmen can take part in discussing new norms but should follow only working regulations. Social problems (environment, education, etc) are in public administration competence. Charity. Businessman should help to solve social problems in private manner. Charity is understood as activity beyond business interests. Social responsibility. Businessman should have free will to assume additional obligations to make his business better: for example, he should follow environmental prescriptions and set up more strong norms independently.
M. Khodorkovsky: "the main problem for national business now is not the high taxes or bureaucracy, but the low level of business ethics. "Russian companies try to transform into transnational corporations but they are regarded outside the country as fully corrupted and competing with the help of dirty methods. (Business Ethics in Modern Russia and Sustainable Economy, Alexei Sidorov)
How it often goes in Russia? "Older people have an ethics problem. By that, I mean they have ethics. To survive, I can break a law if I need to and if the risks aren't too large. Older people wouldn't even think in such a way." Dimitri Zotov, explaining why young people are in high professional demand in the new Russia,Wall Street Journal, p.a5, Col.1, 8/2/93.
How Russian students see it? "There are clear and uniform standards of right and wrong by which everyone should be judged. Agree 56.15% No Opinion 2.68% Disagree 41.80% "The only difference between Enron and most other big companies is that Enron got caught." Agree 44.52% No Opinion 26.85% Disagree 28.64% (http://findarticles.com/p/articles/mi_m0fcr/is_1_39/ai_n13620072/?tag=content;col1)
Similarities between cultures Hierarchical organizations Loyalty and friendships highly valued Education considered important Flexible time frames Considered to be emerging market
Russia vs. India
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