Indian Ethos, Business Ethics & CSR for Sustainable Management

Posted on Feb 21, 2026 in International Business Economics

Indian Ethos: Meaning and Key Concepts

Meaning: Indian ethos refers to the core values, beliefs, spirituality, culture, and philosophy that shape Indian society. It emphasizes unity in diversity, spirituality, moral living, harmony with nature, and self-realization.

Key Concepts

• Dharma – Right duty
• Karma – Action & consequence
• Moksha – Liberation
• Ahimsa – Non-violence
• Vasudhaiva Kutumbakam – The world is one family

Characteristics of Indian Ethos

• Unity in diversity
• Spiritual and philosophical thinking
• Tolerance and harmony
• High moral and ethical values
• Rituals, traditions and customs
• Strong family and community bonds
• Respect for elders and teachers
• Art, music, dance and literature
• Environmental consciousness
• Continuity with adaptability

Need for Indian Ethos

Indian ethos is needed to:

• Preserve cultural identity
• Promote unity in diversity
• Provide an ethical framework
• Support spiritual growth
• Create social harmony
• Protect the environment
• Improve personal well-being
• Preserve traditions
• Offer global wisdom

Purpose of Indian Ethos

• Spiritual awakening
• Moral and ethical guidance
• Social unity
• Cultural preservation
• Environmental protection
• Personal peace
• Knowledge and wisdom
• Global harmony

Relevance in Modern Society

Indian ethos helps in:

• Ethical behaviour
• Inclusive society
• Mental peace and stress control
• Sustainable living
• Leadership and governance
• Social harmony
• Global understanding

UNIT 2 — Salient Features and Workplace Application

Salient Features

• Unity in diversity
• Spirituality and philosophy
• Dharma and Karma
• Respect for elders
• Ahimsa
• Festivals and celebrations
• Art and culture
• Hospitality (Atithi Devo Bhava)
• Adaptability

Indian Ethos in the Workplace

Indian ethos creates:

• Respect and inclusivity
• Ethical behaviour
• Work-life balance
• Mentoring culture
• Teamwork
• Recognition of employees
• Spiritual and mental well-being
• Social responsibility

Holistic Decision-Making

A holistic approach means:

• Thinking about the whole system
• Considering all stakeholders
• Long-term impact
• Ethical responsibility
• Continuous learning

Managers must look beyond profit and consider people, society, and sustainability.

UNIT 3 — Indian Work Ethos

Meaning

Indian work ethos is the Indian way of working, based on duty, discipline, ethics, respect, and commitment.

Core Values

• Hard work (Karma)
• Respect for authority
• Teamwork
• Loyalty
• Adaptability
• Relationships
• Mentorship
• Work-life balance

Importance of Indian Work Ethos

It leads to:

• High productivity
• Strong ethics
• Employee loyalty
• Better teamwork
• Long-term success
• Mental well-being
• Sustainable organisations

Case Examples

• Organic Farming – Sustainability based on Ahimsa
• ITC – Triple bottom line (people, profit, planet)
• TCS – Learning, empowerment, growth

UNIT–I : Indian Ethos (Scriptural Foundations)

Meaning: Indian ethos refers to the moral, spiritual, and philosophical system of self-management and governance based on scriptures like the Vedas, Upanishads, Gita, Mahabharata, Bible, and Quran. It guides ethical living, leadership, motivation, and harmony.

Core Features

• Divinity of the human being – Every person has divine potential
• Balance – Between material and spiritual life
• Work–life harmony
• Pure consciousness – Basis of trust and cooperation
• Character over knowledge
• Whole-man approach
• Work is worship
• Duty over rights
• Knowledge of creator and creation
• Excellence through self-motivation

Need and Relevance

Indian ethos is needed for:

• Holistic living
• Internal motivation
• Welfare of all (Yajna spirit)
• Unique work culture
• Evenness of mind
• Self-development
• Concentration
• Strong value system

Key Philosophical Ideas

• Atmano Mokshartham Jagat Hitaya Cha – Self-development plus social good
• Yogah Karmasu Kaushalam – Excellence in action
• As you think, so you become
• Cooperation brings prosperity
• See divinity in all

Principles Practised by Indian Companies

• Inner spiritual strength
• Holistic view of life
• Importance of intuition
• Selfless work (Karma Yoga)
• Excellence without attachment
• Cooperation and teamwork

Requisites for Indian Ethos

• Value-based management
• Human-centred organisation
• Self-management
• Self-introspection
• Silent mind (meditation)
• Stepping back before decision
• Intuition-based leadership

Elements of Indian Ethos

• Truth and integrity
• Quest for perfection (quality)
• Joy in work

Role in Management

Indian ethos:

• Builds trust
• Reduces conflict
• Promotes ethical behaviour
• Improves performance
• Ensures quality
• Develops self-reliance

Management Lessons from Scriptures

From the Vedas

• Teamwork
• Responsibility
• Share credit
• Healthy competition
• Character building
• Loyalty
• Ethical decision-making

From the Mahabharata

• Convert weakness into strength
• Team responsibility
• Ground reality awareness
• Strategy and vision
• Risk-taking
• Commitment

From the Bible

• Fair wages
• Business planning
• Honesty in taxes
• Charity
• Hard work

From the Quran

• Obedience to authority
• Team consultation
• Equal opportunity
• Quality commitment
• Honouring contracts

From Kautilya

• Ethics plus economics
• Accounting control
• Prevention of misuse of power
• Long-term strategy

Ethics vs Ethos

UNIT–II : Work Ethos

Meaning

Work ethos means the beliefs, attitudes, and behaviour of employees that decide how work is done in an organization.

Levels of Work Ethos

Basic Level

• Discipline
• Punctuality
• Moral behaviour
• Respect

Top Level

• Commitment
• Accountability
• Loyalty
• Sense of belonging

Steps to Build Strong Work Ethos

• Professionalism
• Respect
• Dependability
• Dedication
• Determination
• Accountability
• Humility

Factors Responsible for Poor Work Ethos

• Politics over performance
• Fear of speaking up
• Suppression of ideas
• Poor working conditions
• Low moral standards
• Lack of commitment
• Lack of discipline

UNIT–II : Values

Meaning

Values are lasting beliefs about what is right, good, and desirable.

Features of Values

• Shape behaviour
• Guide decisions
• Build character
• Maintain social harmony

Values for Indian Managers

• Honesty
• Accountability
• Quality
• Reliability
• Teamwork
• Discipline
• Tolerance
• Commitment

Value-Based Management (VBM)

Management based on:

• Integrity
• Compassion
• Ethics
• Social responsibility

Contemporary Leadership and Organizational Systems

Contemporary Approaches to Leadership

Modern leadership has shifted from rigid authority to adaptive, ethical, and people-centred leadership.

Key Features

• Adaptability – Handles rapid technological and market changes
• Employee engagement – Improves morale, loyalty and retention
• Innovation & creativity – Encourages new ideas and digital growth
• Ethical leadership – Builds trust, transparency and reputation
• Inclusivity & diversity – Better decisions and innovation
• Well-being focus – Work-life balance and low stress
• Sustainability & CSR – Long-term growth and social responsibility

Important Leadership Types

• Transformational Leadership – Inspires change and innovation
• Servant Leadership – Focuses on employee welfare
• Agile Leadership – Fast, flexible decision-making
• Adaptive Leadership – Works in VUCA environments (Volatile, Uncertain, Complex, Ambiguous)
• Ethical & Authentic Leadership – Integrity, honesty, trust

Joint Hindu Family Business (JHFB)

A unique Indian business system governed by Hindu law, not the Partnership Act.

Meaning: A business run by a Hindu undivided family, managed by the Karta.

Key Features

• Membership by birth or marriage
• Managed by the Karta (eldest male)
• Karta has unlimited liability
• Other members have limited liability
• Permanent existence
• Governed by the Hindu Succession Act

Two Systems

Leadership Qualities of Karta

• Strong decision-maker
• Balances tradition and innovation
• Responsible for family and business welfare

Karma Philosophy and Corporate Karma

Karma Philosophy

Karma means action and its consequences.

Key Ideas

• Good actions → Good results
• Bad actions → Bad results
• Aim of life → Moksha (liberation)

Nishkama Karma

Selfless action without attachment to results. Principles:

• Selfless service
• Detachment from rewards
• Spiritual growth
• Social welfare

Corporate Karma

Application of karma in business. Ethical companies gain trust and sustainability; unethical companies face reputation and operational loss.

Law of Karma in Management

Indian Motivation System and Educational Models

Indian Motivation System

Four Yogas

• Gyan Yoga – Knowledge
• Bhakti Yoga – Devotion
• Karma Yoga – Action
• Raja Yoga – Meditation

Purusharthas (Life Goals)

• Dharma – Duty
• Artha – Wealth
• Kama – Desire
• Moksha – Liberation

Theory of Rin (Debts)

• Deva Rin – To nature
• Rishi Rin – To sages
• Guru Rin – To teachers
• Pitr Rin – To parents

Ancient Motivation Methods

• Saam – Persuasion
• Daam – Reward
• Dand – Punishment
• Bhed – Competition

Gurukul System

Ancient Indian education model based on the Guru–Shishya relationship.

Features

• Holistic education
• Moral and spiritual training
• Discipline and simplicity
• Learning through service
• Strong teacher-student bond

Difference: Gurukul vs Modern Education

12 Laws of Karma (Summary)

Cause & effect, Creation, Humility, Growth, Responsibility, Connection, Focus, Giving, Here & now, Change, Patience & reward, Significance.

Indian Ethos and Personality Development

Indian ethos develops personality through:

• Dharma (duty)
• Karma (selfless action)
• Swabhava (self-nature)
• Purushartha (balanced life goals)

Practices:

• Yoga and meditation
• Self-reflection
• Ethical living
• Continuous learning

UNIT–I : Business Ethics

1. Meaning of Ethics

Ethics refers to the moral principles that guide what is right or wrong in human behaviour.

2. Business Ethics

Business ethics means the written and unwritten moral rules that guide business behaviour toward employees, customers, shareholders, government, and society. It is a “Code of Conduct” that ensures profit is earned without harming others.

3. Definitions

• Business ethics is the study of standards of business behaviour that promote human welfare (Kirk Hanson).
• The application of ethical values to business behaviour (IBE).
• The study of how decisions affect people (R. E. Freeman).

4. Importance of Business Ethics

Business ethics:

• Builds trust and goodwill
• Improves employee loyalty and productivity
• Enhances company reputation
• Attracts customers and investors
• Reduces conflicts and corruption
• Ensures long-term success

Like Buddha’s honeybee, business should take profit without harming society.

5. Nature of Business Ethics

• A code of conduct
• Based on moral and social values
• Protects stakeholders
• Provides guidelines
• Voluntary in nature
• Relative (differs by country and culture)
• A modern concept

6. Role of Ethics

• Studies what is right and wrong
• Helps in moral judgement
• Guides decision-making
• Sets standards of conduct

Moral vs Immoral vs Unmoral

Moral → Right; Immoral → Wrong; Unmoral → No moral sense.

7. Purpose of Business Ethics

Business ethics ensures long-term benefit, trust among stakeholders, sustainable decisions, and balance between profit and values. Ethical behaviour equals what makes sense in the long run.

8. Elements of Business Ethics

• Code of Ethics
• Ethics Training
• Ethics Coach
• Confidential Reporting System

9. Advantages of Business Ethics

• Attracts and retains talent
• Builds investor confidence
• Improves customer loyalty
• Enhances brand image
• Increases productivity
• Ensures business stability

10. Building Moral Culture in an Organization

Requires:

• Ethical leadership
• Trust and transparency
• Employee participation
• Empathy and fairness
• Open communication

Moral culture always starts from the top management.

11. Indian Ethos in Ethics

Indian ethics is based on the Vedas, Upanishads, Ramayana, Mahabharata and values of truth, duty, compassion, and universality. It promotes spiritual and moral living.

12. Indian and Global Ethical Values

Ethical managers must show:

• Honesty
• Integrity
• Trustworthiness
• Loyalty
• Fairness
• Concern for others
• Respect
• Law-abiding nature
• Excellence
• Leadership
• Accountability

UNIT–II : Ethical Theories

1. Consequential Theory

An action is right or wrong based on its results. Example: Utilitarianism – greatest good for the greatest number.

Principles

• Right action = best consequences
• Goal = maximize happiness
• No act is always right or wrong — it depends on results

Types

• Act Consequentialism – Judges each action separately
• Rule Consequentialism – Follows rules that give best results
• Negative Consequentialism – Minimize harm

2. Non-Consequential Theory

Rightness depends on duty, rules, and rights, not only results.

Includes: Kant’s theory (duty & universal rules), Natural law theory, Virtue ethics.

3. Ethical Dilemma

Occurs when:

• A choice must be made
• Multiple options exist
• Every option violates some moral principle

No perfect solution exists.

Business Ethics: Core Values and Issues

1. Meaning of Business Ethics

Business ethics are the moral principles that guide how a business behaves. It involves choosing what is right over wrong in business decisions. Ethics is a branch of philosophy dealing with good, bad, right, wrong, and justice.

2. Core Ethical Values in Business

• Honesty – Truthful dealings
• Fairness – Win–win treatment for all
• Integrity – Strong moral character
• Personal ethics – Foundation of business ethics

3. Why Ethics Matters to Business

Ethical and socially responsible businesses:

• Attract customers
• Increase sales and profits
• Retain employees
• Reduce labour turnover
• Attract investors
• Protect company reputation

4. Ethical Issues in Business

Modern business faces many ethical challenges: fairness, justice & honesty, employee rights, professional ethics, functional area ethics, profit vs morality conflicts. Wrong decisions damage goodwill and market position.

5. Business Function Ethics

(a) Marketing Ethics: Marketing should be transparent, honest, fair, and responsible. It must protect customers and stakeholders.

(b) Accounting Ethics: Financial statements must be true and fair. Manipulation of profits or losses is unethical.

6. Fundamental Ethical Issues

Integrity and trust are fundamental. Ethical companies build strong customer trust.

7. Major Ethical Problems

• Diversity Issues: Equal opportunity, respect for all employees, fair recruitment and promotion
• Decision-Making Issues: Protect employee rights, customer rights, fairness, and the common good
• Compliance & Governance: Follow environmental laws, safety laws, financial reporting rules, human rights laws
• Social Media Ethics: Employees’ online behaviour can harm the company; balance privacy and monitoring
• Workplace Harassment: No harassment is acceptable; sexualized or mental harassment damages work culture and leads to lawsuits

8. Advantages of Business Ethics

• Competitive advantage
• Goodwill
• Higher productivity
• Increased trust
• Better market share
• Positive word-of-mouth
• Customer preference for ethical brands (example: ITC eco-friendly products)

9. Disadvantages of Business Ethics

Limits profit maximization, may increase costs (compensation, pollution control, etc.), and may divert focus from short-term business goals.

10. Conclusion

Ethical business requires moral leadership, right decision-making, and concern for all stakeholders. Managers must integrate ethical wisdom with managerial wisdom to build a sustainable and respected organisation. Corporate Social Responsibility, strategy, globalization, sustainability, and best practices are essential.

From your PDF

Corporate Social Responsibility, Strategy, Globalisation and Sustainability

1. Corporate Social Responsibility (CSR) Meaning

CSR means that a company conducts business in an ethical, social, and environmentally responsible way, considering the impact on employees, society, environment, and stakeholders. CSR includes community development, employee and customer relations, environmental protection, and socially responsible investment (SRI).

Definition (WBCSD): CSR is the continuing commitment of business to behave ethically and contribute to economic development while improving the quality of life of employees, families and society.

Need and Importance of CSR

CSR helps in solving social problems, improving public image, building goodwill and trust, improving stock price, protecting consumers, supporting government, better employee relations, attracting investors and talent, reducing business risks, and supporting sustainable development.

Benefits of CSR

• Strong reputation
• Customer loyalty
• Better sales and contracts
• Investor confidence
• Long-term business value
• Competitive advantage

2. Strategy Meaning

Strategy is the plan to gain competitive advantage and achieve long-term success over competitors.

Strategic Management Process

• Environmental Scanning – Analyse internal and external environment
• Strategy Formulation – Decide best course of action
• Strategy Implementation – Put strategy into action
• Strategy Evaluation – Review performance and take corrective action

3. Approaches to CSR

4. Globalisation Meaning

Globalisation is the integration of economies, cultures, and markets through trade, technology, capital and movement of people. IMF aspects include trade and transactions, capital flow, migration, and knowledge sharing.

Effects of Globalisation

• Increase in international trade
• Growth of multinational companies
• Technological progress
• More outsourcing
• Strengthening of WTO, IMF, World Bank
• Greater movement of labour
• Growth of NGOs and global civil society

Importance of Globalisation

Expands trade opportunities, promotes economic growth, encourages outsourcing, improves communication and innovation, and supports global business.

5. Sustainability Meaning

Sustainability means meeting present needs without harming future generations. It includes environmental, economic, and social sustainability.

Principles of Sustainability

• Living within environmental limits
• Sustainable economy
• Strong and just society
• Using sound science
• Good governance

6. CSR Guidelines and Standards

Important international standards include: UN Global Compact, OECD Guidelines, GRI (Sustainability Reporting), AA1000, ISO 14001, SA8000, OHSAS 18001, CERES Principles, Transparency International, ILO Labour Standards, UN Human Rights Declaration, Millennium Development Goals.

7. Best Practices

Meaning: Best practice is a method or technique that consistently gives better results and is used as a benchmark.

Benefits

• Better quality
• Consistency
• Improved performance
• Customer satisfaction
• Reduced risk
• Sustainable business growth