Business Ethics: The Indian Reality

Volume 14, Number 4 Article by Rajneesh Krishna and Atul Tandan December, 2002

Business Ethics: The Indian Reality :

Business ethics in an organisation originates from an interplay of its structure and culture, the compulsions of its business category and the culture of the societal system surrounding it. In India, business ethics have evolved from the origins of industry in the last quarter of the 19th century, through its consolidation during the British Raj based on the values of the European Renaissance: individualism, equality, democracy, liberalism and centrality of work. The Western industrial organisation was implanted in India, where the dominant values were holism (performance of group over individual), hierarchy and continuity. Work was not a tool to realise one’s self but a means to fulfil family and caste responsibility. The resultant cultural conflict is reflected in the area of business ethics as well. While in Western countries managers have to decide between interest (organisational and/or self) and ethics, Rajneesh Krishna and Atul Tandan spell out the additional layer of conflict that gets added in India in deciding what is ethical — according to modern organisational values or traditional societal values. The teaching and practice of business ethics in India is thus a complicated and multi layered task.

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