1

Summary

Ethics Class 01 - Jatin Gupta

INTRODUCTION TO ETHICS, INTEGRITY AND APTITUDE (05:05 PM)

TOPICS UNDER ETHICS IN GOVERNANCE (05:11 PM)

• Syllabus Points:

• Dimensions of ethical governance

• Code of ethics and code of conduct

• Probity in governance

• Corruption and its related issues.

• Public service delivery

• Utilization of public funds.

• Corporate governance.

• Rules, regulations, and Laws in ethical decision making

• Ethics in International relations.

• Sources for Ethics in Governance:

• UPSC PYQs 2013 onwards.

• Class Notes.

• Toppers copies for reference. (Available on the VISION IAS Platform)

• VISION IAS Value Addition Material for Ethics.

• Ethics in Governance Report (Second Administrative Reforms Commission)

• Lexicon book

• For Examples, refer to the PM Awards for Excellence in Public Administration, Padma
Awards, Indian Express Awards for Governance, Better India Website, Current Affairs, etc.

VALUES (05:47 PM)

• Values:

• Values are intrinsic beliefs of an individual or a group that guide and motivate one's
behaviour, attitude, and actions.

• Every individual or community has a different set of values to which he or she gives
importance some of the values are considered universal in nature and are held in high regard
by different communities across the world.

• For Example, Truthfulness, Honesty, Courage, Helpfulness, and Compassion.

 • Spatial and Temporal differences in Values:

• Values vary spatially and temporally.

• For Example, It may not be wrong to wear an undergarment printed with the national flag of
the United States of America. Still, it may be considered as objectionable and disrespectful in
India.

• Generally people are predisposed to adopt the values they are raised with.

• They also believe that those values are 'Right' because they are the values of their particular
culture and may not necessarily apply to other cultures.

• Ethical decision-making often involves 'Weighing values against each other' and choosing
which values should be elevated.

FOUNDATIONAL VALUES OF CIVIL SERVICES (06:02 PM)

• Foundational values are those values and principles that form the very basis of the
functioning of any organisation.

• In other words, They form the core identity of an organization.

• They permeate the entire work culture of the organization from the top to the bottom.

• They are usually determined by the leadership of the organization and guide the internal and
external behaviour of that organization.

• For Example, The discipline and punctuality of the Indian Armed forces, the employee
centricity of the TATA's, Innovation, and risk-taking for Google.

SOURCES OF FOUNDATIONAL VALUES TO CIVIL SERVICES (06:19 PM)

• AIS Conduct Rules, 1968.

• Central Services Conduct Rules, 1964.

• Constitution of India.

• Historic events from the Freedom struggle.

• Judgements delivered by Constitutional courts.

• Views/Opinions of the Philosophers.

• Spiritual and religious texts.

• Laws legislated by the parliament and state legislatures.

• Public Services Code Bill, 2007.

• 'Nolan Committee Report' on Civil services values.

• UN's Code of Conduct for public officials.

SIGNIFICANCE OF FOUNDATIONAL VALUES TO THE CIVIL SERVICES (6:52 PM)

• Civil servants enjoy wide 'discretionary powers' and by following the foundational values
they can limit the misuse of these powers at the expense of the public interest.
 • By following and adopting the foundational values, we can reestablish the lost trust
between the government and the citizens.

• They can help in ensuring uniformity and consistency in the decision-making and the actions
of the civil servants.

• Civil servants often face ethical dilemmas during the course of their work and relying on
foundational values can help them in resolving these dilemmas in a speedy and effective
manner.

• Laying down the foundational values and following them diligently can help in achieving the
desired objectives of the civil services and the idea of good governance.

• Often in society people have preconceived notions and values and civil servants must know
how to overcome them by prioritizing the public interest. In such circumstances
foundational values become handy.

SYMPATHY, EMPATHY, AND COMPASSION (7:09 PM)

• 'Sympathy' refers to a situation where an individual recognizes the pain and suffering of
other individuals'

• Empathy on the other hand is putting oneself in the shoes of others as if it is one's pain.

• In Empathy an individual engages himself cognitively rather than only recognizing the pain
superficially.

• Compassion means taking action to relieve the pain and suffering an individual is
experiencing.

• Compassion is a four-step process:

• 1) Being aware of someone's feelings or suffering.

• 2) To be moved emotionally by someone's suffering or feelings.

• 3) Developing a desire to resolve someone's suffering.

• 4) Taking necessary steps to resolve someone's suffering.

• Compassion shows the 'highest level of kindness' when a person is ready to endure pain for
the sake of others.

• It requires a person to be self-aware and attentive to the needs of others and to be

committed to the same.

• Quote: Dalai Lama says "Love and Compassion are necessities and not luxuries and without
them, humanity can not survive."

SIGNIFICANCE OF COMPASSION IN CIVIL SERVICES (7:22 PM)

• All the other values are meaningless without 'Compassion'

• In fact, The very purpose of the civil service is to 'relieve the pain and suffering of others'
which can not be achieved without compassion.

• To maintain the people's trust showing empathy and compassion is of utmost importance.
 • We are often victims of stereotypes in society which can prevent us from effectively helping
others, Such a situation may be overcome by inculcating empathy and compassion.

• Over a period of time civil servants become armchair advisors such attitudes can be kept in
check by inculcating empathy and compassion.

• It can provide a purpose to go any length to address the problems of people.

• It can play a crucial role in ensuring citizen-centric administration.

INCULCATING COMPASSION IN CIVIL SERVANTS (7:42 PM)

• Organizing regular field visits for civil servants.

• Cultivating interests in the culture of others through activities such as Bharat Darshan, India
Day, etc.

• Organizing role-play activities such as the one conducted at the National Police Academy.

• Organizing activities such as 'Janta Darbar' to get a first-hand perspective of the problems of
the people.

• Organizing sensitivity training for civil servants throughout the course of their careers.

OBJECTIVITY (07:50 PM)

• Objectivity refers to making decisions on the basis of facts and figures and not as per an
individual's preconceived notions and prejudices.

• It means not getting influenced by personal feelings and opinions.

• The opposite of objectivity is subjectivity, which means making decisions on the basis of
one's biases.

• Lacking objectivity may often result in wrong policy decisions and justification of the same
would become very difficult.

TOPIC FOR THE NEXT CLASS: FOUNDATIONAL VALUES FOR CIVIL SERVICES (To be Continued...)

Summary

Ethics_JG Class 02

THE CLASS STARTED WITH A BRIEF OVERVIEW OF THE PREVIOUS TOPICS (01:07 PM)

IMPORTANCE OF OBJECTIVITY IN CIVIL SERVICES (01:08 PM)

• Civil servants often take decisions without the benefit of hindsight and objectivity helps in
ensuring that the 'decision-making is more accurate' in nature, Not only that they can justify
their decisions at a later stage if the decision was made as per the careful analysis.

• 'Enforcing the accountability' of the civil servants also becomes easier if decision-making is
objective in nature.

• Recruitment in government is often affected by nepotism and favouritism, taking an

objective approach in such matters would promote 'merit and fairness' in such matters.
 • It 'limits the use of discretionary powers' therefore resulting in corruption.

WAYS TO INCULCATE OBJECTIVITY IN CIVIL SERVICES (01:17 PM)

• Drawing and elaborating standards operating procedures and guidelines to be followed by

the members of the department.

• Improving the quality of data available within the government through surveys and
statistical exercises.

• Using data analytics tools to make decisions within the government.

• Seeking feedback from the citizens on service delivery mechanisms.

• Social Audit can be a powerful mechanism for inculcating objectivity in civil services.

• For Example: In MGNERA ,we have institutionalized the Social Audit mechanism.

• We may evolve the comprehensive 'Code of Conduct' to be followed diligently by the civil
servants.

• For Example, KPI(Key Performance Indicators)/KRA (Key Performance Areas) are usually set
up in big corporations and can be replicated in civil services.

SOME OF THE CHALLENGES WITH OBJECTIVITY (01:41 PM)

• Being objective at all times is 'not desirable', especially at the cost of empathy and
compassion.

• It may lead to situation where the civil servant may ignore the genuine
concerns/considerations of the citizens.

• Taking an objective approach can be challenging especially because of 'lack of availibility of

coherent data' in the government.

• Human beings by their very nature are partisan and biased, therefore remaining objective at
all the times can be challenging.

• Objectivity may not be useful in certain situations especially while resolving the ethical
challenges.

COURAGE AND FEARLESSNESS (01:57 PM)

• Courage means 'doing one's duty without considering the consequences'.

• It refers to the ability to take decisions and actions and stick to one's values and principles
despite a possibility of unfavourable outcomes.

• According to Nelson Mandela, "Courage is not the absence of fear but the triumph over it"

• Courage is the first of human qualities because it guarantees adherence to other values. It
helps individuals in taking ethically correct decisions however tough the situations and the
circumstances.

TOPIC FOR THE NEXT CLASS: COURAGE AND FEARLESSNESS (To be Continued...)

1
Summary

Ethics_JG Class 02 A

THE CLASS STARTED WITH A BRIEF OVERVIEW OF THE PREVIOUS CLASS (05:07 PM)

IMPORTANCE OF COURAGE FOR CIVIL SERVICES (05:12 PM)

• It helps them 'to stay firm on their core values' and principles irrespective of hardships.

• Civil Servants often face numerous temptations as part of their work, courage allows them
to 'make the right decisions'

• 'A leader leads by example' and for that courage is of utmost importance.

• Financial irregularities have become part and parcel of the government system and to expose
them one needs courage.

• Policy-making often results in failure and only a courageous individual has the 'ability to
identify mistakes and rectify them'

• Civil servants often make unpopular decisions and only courage can help them in making the
decisions.

• Courage is important to ensure a well-functioning society as Napoleon had once said "The
world suffers a lot not because of the violence of the bad but because of the silence of the
good"

• Ways of inculcating courage in Civil Servants:

• Implementing a 'Strong Whistleblower law' so that the wrongdoing within the government
is exposed without fear of repercussions.

• Making the process of appointment, posting and transfers apolitical nature by establishing
mechanisms such as a Civil Services Board.

• We may consider providing fixed tenure for important postings.

• Recognizing and 'rewarding the acts of courage' shown by civil servants.

• Laying down a comprehensive 'Code of Ethics for the Ministers' to reduce their day-to-day
interference in the functioning of the administration.

• An 'Independent constitutional body such as UPSC' may be given a bigger role in deciding
the appointments, and postings of civil servants.

DEDICATION TO PUBLIC SERVICE (05:36 PM)

• It is the quality to be able to apply one's time and attention entirely to the cause of public
service.

• It refers to 'commitment, passion and a personal urge to do something for the public
good' without any external stimulus or without any external force.

• In other words, It refers to internalising the cause of public service or public good.

• It is often dedication and commitment are confused with each other but dedication refers to
the highest form of commitment where a person is 'willing to go beyond the call of duty'
 • Commitment on the other hand is more of an obligation fulfilled by a person as a part of his
duties.

• Importance of Dedication to Public Servants:

• A Civil servant's job is 24*7 and a person can sustain in such a job only if one is dedicated to
the cause of public service.

• Civil servants often work in hostile conditions and under severe resource constraints only
dedication to public service can help in overcoming such situations.

• The very purpose of civil services is to act as agents of development and any such
developmental efforts require dedication.

• Ways to inculcate dedication in civil Servants:

• 'Rewards and recognition' to the best-performing officers to create inspiration for others.

• 'Organizing regular training sessions' and providing exposure through field visits to sensitise
the civil servants towards the challenges faced by the citizens.

• Inspiring the young civil servants through anecdotes, examples and stories of exemplary civil
servants from the past.

• We may adopt a 'Performance-linked approach' as is done in the private sector.

IMPARTIALITY AND NON-PARTISANSHIP (06:21 PM)

• Even though 'impartiality' and 'Non-partisanship' are considered synonymous with each
other, both of them are different from each other.

• Impartiality refers to 'the act of not supporting an individual or group over others', an
impartial civil servant would give a fair chance to others without allowing his biases to creep
into his actions'

• Non-partisanship has a special meaning that conveys 'apolitical behaviour' by a civil servant.

• A civil servant is expected to remain neutral and execute the policies irrespective of who is in
power.

• Political parties may change hands but a civil servant should be willing to serve and provide
technical advice to the political executives, keeping himself away from the politics of the day.

• Significance of Impartiality to Civil Services:

• It is crucial for maintaining the trust between the Citizens and government institutions, a
number of problems such as naxalism have emerged precisely due to the breakdown of faith
in the government institutions.

• India is a diverse society with varying interests and therefore the civil servants are expected
to remain neutral while implementing the policies and serving the people.

• In India numerous conflicts exist between communities, in such situations civil servants
should remain neutral otherwise they would be inclined to protect the interests of the
groups or communities they are biased towards.
 • Civil servants are bound by the constitution of India and provisions such as Article 15 cast an
obligation on them to remain neutral.

• Significance of the Non-Partisanship in Civil Services:

• If the civil services are not neutral they can not lend their wholehearted support to the
reforms introduced by political executives.

• In a democracy the most important decisions are taken by the people and the
representatives of the people and civil servants should only be tools for the implementation
of those decisions.

• Only when a civil servant is non-partisan can he/she show courage to suggest alternative
policies to the political executives.

• Civil servants need to be non-partisan to maintain public confidence in the apolitical

character of the civil services as an institution.

• Challenges to Political Neutrality:

• Lack of independent institutions for posting and transfers.

• Opaque nature of functioning of civil servants resulting in nexus between politicians,

bureaucrats and capitalists.

• The inter and intra-service rivalry results in groupism and partisan behaviour by the civil
servants.

• Politicians tend to compromise the neutrality of the bureaucracy for their own motives.

• Ways to inculcate the Non-Partisanship and Political Neutrality:

• Make the 'Postings and transfers as apolitical' as possible.

• 'A mandatory cooling-off period' should be prescribed before taking up further government
appointments, private sector jobs or political positions after quitting the services.

• A 'Comprehensive code of conduct' should be formed to regulate the acceptance of gifts

from individuals and organizations.

• The Second ARC recommended objectively defining the relationships between the civil
servants and ministers to minimize interference in the day-to-day functioning of civil
services.

TOLERANCE (07:23 PM)

• Tolerance means 'giving respect to the views of others irrespective of whether they are in
conflict with one's views or not'

• Tolerance is respect, acceptance and appreciation of and rich diversity of our culture.

• Tolerance involves the rejection of dogmatism, and absolutism and therefore promoting a
healthy environment for discussion and deliberations.

• Significance of Tolerance in Civil Services:

 • Freedom of Speech and expression is necessary for any democracy and crucial for driving
growth in society.

• It can be protected only if tolerance is given importance.

• As Voltaire said "I disapprove what you say, but I will defend to the death your right to say
it"

• It is important to protect the multireligious, multiethnic and multilingual characteristics of

society.

• The courage to fight for the rights of others especially for the rights of the marginalized
comes from the value of tolerance.

• Tolerance ensures more accurate decision-making and helps in avoiding impulsive decision-
making.

• It plays a crucial role in promoting social capital.

• Tolerance creates a society in which people feel valued and respected and in which there is
enough room for every person with their views and thoughts.

• It also allows scope for individuality.

• All India Civil Servants need to serve culturally different sections of society and for this
tolerance is really important.

• Ways to inculcate 'Tolerance' in Civil servants:

• Exposure to different traditions, and cultures through activities such as 'Bharat Darshan' and
cultural events celebrating the diversity of India.

• Encouraging a culture of debate deliberations and discussions.

• During the training to drill the value tolerance at a young age.

• Code of conduct must prescribe certain strict rules on discriminatory behaviour.

• Organizing team sports events to encourage teamwork among the civil servants.

• Regularly organizing field visits and encouraging interactions with people from different
sections of society.

INTEGRITY AND HONESTY (07:56 PM)

• Integrity is the wholesome value and to have integrity one needs to be honest.

• Honesty is having a truthful approach towards one's own actions, thoughts and expressions.

• Integrity is adherence to values and principles even when no one is watching.

TOPIC FOR THE NEXT CLASS: INTEGRITY AND HONESTY (To be Continued...)

Summary

Ethics_JG Class 03
OVERVIEW OF THE PREVIOUS CLASS (05:04 PM)

INTEGRITY (05:06 PM)

• Often Integrity and honesty are confused with each other but both of them are different in
certain aspects. Honesty refers to the quality of being truthful and sincere in one's conduct.
It is an external concept and does not guarantee the highest standards of behaviour.

• Integrity on the other hand is the mother of all values and refers to steadfast adherence to
values and principles irrespective of place and circumstances. It means following the highest
standards of behaviour and consistency in one's actions and thoughts. Integrity has the
following aspects :

• a)Choosing the right conduct.

• b)Openly declaring one's stance.

• c)Acting consistently with the choice made even if it is inconvenient to do so.

• EXAMPLES

• 1)Gandhiji withdrew from the Non-cooperation movement after the Chauri Chaura incident
even though the movement was at its peak as he believed in the value of Non-violence and
was not ready to compromise despite unfavourable results.

• 2)Field Marshal Manek Shaw denied going to war with Pakistan even if it meant resigning
from the services.

• Integrity implies adherence to several values including honesty, Therefore one can say that
honesty is a necessary though not a sufficient criteria for integrity. To be a person of integrity
one has to be honest, But being honest alone does not ensure integrity.

• MORAL INTEGRITY

• If your actions align with your values, It is moral integrity. It means you judge the actions of
the other by the same moral standards as you judge your actions.

• INTELLECTUAL INTEGRITY

• If your actions align with your knowledge, It is an example of intellectual integrity. You don't
deny something you know to be true just because doing so would benefit you.

• It does not imply stubbornness but rather the ability to accept one's own mistake.

• When you act in accordance with professional values, standards and norms in a consistent
manner even when you face criticism or allurements.

IMPORTANCE OF INTEGRITY FOR CIVIL SERVICES (05:50 PM)

• Civil servants with intellectual integrity would be aware of the ground reality and would
learn from his/her mistakes and not live under the false presumption.

• It would help the civil servants address stereotypes and judge others by certain preconceived
notions.

• Civil servants possess wide discretionary powers and in the absence of integrity they may
exercise them for personal gains and political purposes.
 • Civil servants with integrity enjoy greater credibility in the eyes of the public and therefore
are more likely to be heard and followed by the citizens.

• Civil servants are supposed to inspire and lead others without integrity they would not enjoy
the respect of others.

• Public officials need to show integrity so that they are not shy or being held accountable by
others.

• India suffers due to the limited availability of resources and integrity can help in ensuring the
efficient utilisation of the same.

2ND ARC DEFINATION OF INTEGRITY (06:03 PM)

• According to the 2nd ARC, Integrity means that civil servants should be guided solely by the
public interest in their official decision-making and not by any financial or other
consideration either for themselves, their families or their friends.

• They must be responsible towards their duties and obligations and try to make optimum
utilisation of public money, deal impartially with the public, comply with the laws, show
transparency in their actions and uphold the idea of justice.

INCULCATING INTEGRITY INTO THE CIVIL SERVICES (06:09 PM)

• Assigning mentors to young civil servants at the early stages of their careers, So that they can
learn to deal with adverse situations with utmost integrity.

• Integrity should be an important criterion in deciding the prospects, promotions and the ACR
of the civil servants.

• Young civil servants should be provided ethics training that should cover topics such as
dealing with conflict of interest, blowing the whistle on corruption within the department
etc.

• Exemplary punishment for corrupt civil servants and changes in corruption laws to ensure
their effective enforcement.

• Inculcation of values and ethics in society at an early age with the help of family and school.

• Making ethical conduct an important criterion for the selection of civil services. The
personality test stage should include psychometrics and other evaluations to judge the
integrity of other candidates.

• Providing incentives for honest and ethical behaviour displayed by the civil servants. For
example: We may introduce a reward scheme that recognises efforts made to expose
corruption within the government.

ETHICAL DILEMMA IN CIVIL SERVICES (06:22 PM)

• An Ethical dilemma is a situation in which a choice has to be made between two morally
valid options and it is difficult for the decision-maker to choose one path.

• It's a situation where one has to choose between two sets of values that are equally
justifiable and each of those choices can have a significant impact on the stakeholders
involved.
 • Civil servants often face ethical dilemmas during their work and in such situations, societal
and personal guidelines may not provide a satisfactory answer.

• The standards to be applied while resolving the ethical dilemmas cannot be based on
religion, Social norms, Personal feelings and even laws, rules and regulations.

• EXAMPLES

• 1)Confidentiality versus corruption.

• A civil servant faces the dilemma of keeping some information confidential when
wrongdoing is informed where exposing it may conflict with their duty as a civil servant to
maintain strict confidentiality.

• If environmental guidelines provide that the industry must establish a waste treatment plant
the exorbitant cost involved may result in mass layoffs and create economic difficulties.

• 2) Direction from superior vs personal values.

• A Police officer who believes in non-violence and a dialogue-based approach has been asked
by a senior to use a lathi charge on a group of students protesting.

• 3)Public opinion vs expert opinion (06:58 PM)

• Often civil servants have to face conflicts in balancing public opinion and knowledge from
experts in making decisions that affect the public.

• 4) Wistleblowers' dilemma

• A civil servant may face the dilemma of keeping the information confidential where
wrongdoing is involved and exposing it may conflict with their duty to maintain strict
confidentiality, compromise the interest of their department and also expose them to
potential retaliation.

• 5)Budgetary constraints v/s essential service to the citizen

• A civil servant often needs to balance budgetary constraints with public demand for essential
services such as health education etc.

• 6)Personal values v/s professional values

• Advocate fighting heinous crime case of his client, His values are against such actions and
crimes.

• 7)Neutrality vs directions provided by the political executives

• In Normal circumstances, Civil servants must uphold neutrality and remain unbiased but they
may land up in a dilemma when they face pressure from political leaders and parties.

APPROACH FOR RESOLVING THE ETHICAL DILEMMAS IN PUBLIC SERVICES (07:12 PM)

• STEP 1

• Identification of options available in the situation.

• analysing the consequences of choosing one option over the other.

• STEP 2
 • One must identify both the positive and negative consequences associated with a particular
option.

• STEP 3

• Identification of stakeholders.

• However mere identification of the stakeholder is not enough and it should be

supplemented by the following questions:

• a)Who would benefit from choosing that course of action?

• b)Who would be negatively affected as a result of that course of action?

• c)What would be the short-term and the long-term effects of the decision taken?

• d)After considering the above question which option would present the best combination of
maximisation of benefits and minimisation of harms?

• e)Analysing the actions based on certain moral principles such as honesty, Integrity,
Transparency, compassion etc.

• f)Analysing if the options chosen violate any ethical principles.

• g)Evaluating the root causes that led to the dilemma and addressing the same so that such a
situation does not emerge in the future.

TOOLS OR STANDARDS TO RESOLVE THE ETHICAL DILEMMAS (07:25 PM)

• Gandhiji's talisman so that the interest of the poor and marginalised are given the first
priority.

• Constitutional values and principles to ensure that one's actions conform to the
constitutional goals.

• Relying upon the code of ethics to judge the alternatives from the perspective of
foundational values of civil services.

• Analysing the options from the perspective of a consequentialist approach to maximise the
good for the maximum number of people.

• Taking the deontological approach that ensures that one follows one's duties irrespective of
the consequences.

• Taking the virtue-based approach where moral values and principles are given the highest
importance.

ETHICAL GOVERNANCE (07:40 PM)

• It refers to governance i.e. carried out while keeping ethical concerns in mind, One can say
that ethical governance is a step ahead of good governance as it seeks to realise certain
universally desirable ethical values and not merely values of administrative efficiency.

• Some of the elements of the ethical governance are as follows:

• a)Compassion

• b)Impartiality
 • c)Selflessness

• d)Dedication to public service

• e)Transparency.

• f)Accountability.

The topic for the next class: Challenges to the Ethical governance in India.

Summary

Ethics_JG Class 04

CHALLENGES TO ETHICAL GOVERNANCE IN INDIA (01:06 PM)

• Political challenges

• Excessive political interference in policy-making exercises where the emphasis is on populist

considerations rather than elements of ethical governance.

• Even the civil servants are more concerned about impressing their political bosses rather
than focusing on ethical considerations of administration.

• The political executive often expects civil servants to perform tasks contrary to this principle
of ethical governance.

• Since, they enjoy the power to control the appointments, postings, and transfers.

• Institutional challenges

• The concept of career civil services compromises dedication to public service resulting in
complacency among the civil servants.

• Civil servants enjoy wide discretionary power which often comes without checks and
balances resulting in issues.

• The economic model adopted after independence vested excessive power in a centralised
form of government creating conducive conditions for misuse of power.

• The civil services by their very nature focus on preserving and enlarging their powers rather
than focusing on service of public interest.

• Societal challenges

• Society has witnessed a significant decline in morals and values and as a result, the civil
servants focus more on the accumulation of wealth and material resources than the cause of
public service.

• Even society has become more tolerant of unethical conduct and behavior and this has
further disincentivized civil servants to focus on ethical behaviours.

• Some 'smart people' believe that ethical values are utopian and they have no relevance such
thinking has led to the overall decline of values.

• Corruption is being accepted and even being glorified.

 • Operational challenges

• In bureaucracy, secrecy is the norm and transparency is an exception.

• Therefore resulting in a lack of accountability and breeding corruption.

• Administrative procedures are complicated in nature and designed to avoid errors in

decision-making.

• It leads to a lack of accountability and excessive delays in decision making so much so making
governance inaccessible to the common man.

• Civil servants often tend to develop a lack of empathy and compassion due to the
hierarchical nature of bureaucracy that creates distance between citizens and civil services
and as a result, they drifted from the main goals of governance.

Question: Several people believe that ethical governance is a utopian idea in India and faces significant challenges. Ex

CODE OF ETHICS AND CODE OF CONDUCT (01:59 PM)

• Code of Conduct:

• It refers to a specific set of guidelines provided to the members of an organization

concerning how they should conduct themselves in certain specific situations.

• One can say that the code of conduct defines the dos and don'ts for the civil servant.

• They are like a set of negative instructions provided to civil servants.

• All India Services lays down the following standards of behavior by the civil servants.

• They should not take part in political activities or any organization associated with political
activity.

• They are supposed to remain sober and not appear in public spaces in a state of intoxication
and use drinks and drugs in access.

• They should observe the existing policies and laws regarding crime against women.

• They should manage their financial matters in such a manner to avoid insolvency.

• No member should give or take dowry.

• Members should not directly or indirectly engage in any trade or business or any other
employment or participate in making sponsored media or any such program.

• Civil servants may accept from near relatives gifts on celebratory occasions but must report
it to the government if they are in value above rupees 25,000.

• Civil servants cannot accept without permission, from outsiders, if the value of gifts exceeds
rupees 10,000.

• Code of Ethics:

• It is a loose set of principles that should guide the behavior of the civil servants.

• They are a general set of principles that ensure ethical conduct on their behalf.
 • Unlike the Code of Conduct, they do not have a legal backing but rather a moral force behind
them.

• E.g. Code of Ethics may prescribe that civil servants should follow transparency and
accountability in the functioning of their office but it is not legally enforceable if one does
not do so.

DIFFERENCE BETWEEN CODE OF ETHICS AND CODE OF CONDUCT

• Nature:

• Code of Ethics is generic in nature and code of conduct is more specific.

• Enforceability:

• There is no punishment for not following the code of ethics as they only have a moral
sanction behind them whereas the code of conduct can be enforced by the specific
department.

• Focus area:

• Code of Ethics focuses on compliance with values and principles whereas conduct focuses on
compliance with rules and regulations.

• Time:

• Enforcing a code of ethics can ensure long-term sustainable changes in the behavior of civil
servants whereas a code of conduct only guides the behavior of the civil servants over a
short time.

• Explicit

• A code of ethics is implicit and provides general guidance in specific situations.

• Whereas COde of conduct is explicit providing specific guidelines in specific situations.

SIGNIFICANCE OF CODE OF ETHICS AND CONDUCT (02:50 PM)

• Civil services are often accused of having a poor work culture that can be reaffirmed by
following a code of ethics and code of conduct diligently.

• Sustaining ethical behavior within organizations becomes more achievable when internal
accountability mechanisms are prioritized over external enforcement, as a conscientious
adherence to a robust code of ethics fosters a culture of diligence and responsibility.

• Civil servants are entrusted with the resources of the community and following the codes
would create a culture of honesty and integrity.

• Therefore ensuring effective utilization of resources.

• These codes ensure that civil servants respect the human rights and dignity of individuals
and do not engage in discrimination and abuse of power.

• Civil servants often face ethical dilemmas and without such codes, their behavior would be
driven by individual morals resulting in a lack of consistency and uniformity in actions.
 • These codes can ensure that civil servants will perform their duties with integrity,
compassion, and accountability.

• Therefore effectively addressing the trust deficit between the citizens and the government.

LIMITATIONS

• Enforcement of the Code of Conduct depends upon departmental discretion whereas the
Code of Ethics has no legal enforceability at all.

• It therefore results in a situation, where these codes are not taken seriously and there is little
accontability for violating them.

• The code of ethics is too vague and subjective therefore the enforcement is individual-
centric.

• Additionally in a diverse country such as India, social and cultural norms can influence ethical
behavior.

• Many civil servants are not aware of these codes and do not receive adequate training to
enforce them.

• No added incentives are provided for following these codes nor do they have a significant
impact on career progression and promotion.

• The code of ethics does not define which principles would apply in which circumstances, on
the other hand, the code of conduct has limited application in different situations.

• It is often said that the erosion of moral values has happened to such an extent in the civil
service that these codes would have a negligible impact on probity in governance.

• It is difficult to adhere to these codes and values in present circumstances where excessive
political interference in administrative matters has become a routine practice.

SUGGESTIONS/WAY AHEAD (03:26 PM)

• In the future, the code of ethics and code of conduct should take into consideration the
existing legal measures related to ethical problems in government departments.

• These codes should include a warning to public officials that they should not assume any
unethical activity not covered specifically by the code is permissible.

• They must be an outcome of discussion held within the department since no externally
enforced code can ever achieve the desired objectives.

• Several people suggest that these codes should be made legally enforceable in the courts,
such a move may not be very effective as it would lead to unnecessary litigation, and delays
and also affect the flexibility to adjust according to the change in circumstances.

• Not only that human beings by nature are likely to show more respect to a loosely enforced
code over a firmly organized legal body.

• Public Service Authority consisting of prominent citizens and reputed civil servants may be
given the task of overseeing the implementation of these codes.
• Civil Society Organizations must be involved in the process of designing these codes in the
future.

• Public Service values and ethics must be inculcated through regular training programs.

• E.g. IIPA has introduced a two-week course on ethics and administration for senior
administrators.

• A reward mechanism as an incentive can be considered to ensure the effective

implementation of these codes.

• 2nd ARC Recommendations:

• 2nd ARC proposed the enactment of a service code in the form of a Public Service Code Bill
in 2007.

• That would provide legal backing to the Code of Ethics.

• Similar laws have been enacted in countries such as Poland and Australia.

• The second ARC suggested that the code should be divided into three levels:

• Level 1: A clear statement of values should be provided that a civil servant should observe
which would act like the preamble to the code.

• Some of these values include patriotism, upholding national pride, allegiance to the Indian
constitution, etc.

• Level 2: It should include the broad principles that should govern the behavior of all civil
servants.

• These principles should help the department to draw a public service code for ethics in
consultation with the Public Services Authority.

• Some of these principles are as follows, Every public service employee:

• Shall discharge official duties with competence, accountability, and impartiality.

• Should have the opportunity to grow professionally and develop leadership capabilities.

• Should avoid the misuse of official positions and use public money with utmost care.

• Should serve as an instrument of good governance and promote socio-economic

development with due regard for the diversity of the nation but without discrimination, on
grounds of religion, sex, etc.

• Level 3:

• It would consist of a specific code of conduct providing a list of acceptable and

nonacceptable behaviors to be termed as the Public Service Management Code.

• It should be drawn based on the following principles:

• To establish public services as professional merit-based institutions for promoting good

governance.

• Mechanisms and incentives to maintain a high level of productivity, efficiency, and

excellence.
 • Should emphasize promoting the sustainability of public service keeping in view the finances
of the government.

The topic for the next class: Code of Ethics for Ministers/Judges, Corruption, etc.

Summary

Ethics_JG Class 05

PRINCIPLES THAT SHOULD GUIDE THE FORMULATION OF CODE OF ETHICS FOR MINISTERS (05:21
PM)

• Ministers should adhere to the principles of collective responsibility enshrined in Art 75 (3).

• They must ensure that no conflict arises or appears to arise between their public duties and
private and political interests.

• They must uphold the political impartiality of the civil servants and not ask the civil servants
to do what would clash with their official duties & responsibilities.

• Ministers must comply with the requirements laid down by the Parliament from time to
time.

• Ministers must ensure that public money should be used only for public purposes with
utmost care & economy.

• Ministers must not use government resources for the Party or political purposes.

• Ministers must function in a manner to serve as instruments of good governance & to

provide services to the public at large.

• They must act objectively, impartially, and in a fair and just manner.

CORRUPTION (05:34 PM)

• As per the World Bank, Corruption refers to the abuse of public funds or public office for
private gains.

• According to the Prevention of Corruption Act of 1988, no specific definition of corruption

has been provided but some of the activities that are termed as corrupt are as follows-

• Acceptance of illegal gratification as a motive for doing or not doing an official act.

• Favoring or disfavouring a person

• Obtaining a valuable thing without consideration.

• Obtaining monetary advantage from a person without serving any public interest.

• Obtaining resources or property disproportionate to the income.

• According to this law, the focus is on gratification or other pecuniary advantage.

• However, there is a range of activities that are detrimental to public interest which is not
covered under this law as a corrupt act.
• Thus there is a need to expand the definition of corruption under the act.

• Use and abuse of confidential information for private purposes.

• Favoring relatives & friends in awarding contracts.

• Conflict of interest such as accepting outside employment during working in the Civil
Services.

• Wasting public money by spending exorbitantly on private luxuries.

• Gross perversion of constitutional provisions and democratic values.

• Interference in decision-making to secure positions and promotions for one's supporters.

• Manipulation in the purchase of machinery, property, and equipment for government

departments.

• Protecting the incompetence of subordinates due to favoritism.

• Factors leading to the rise of Corruption in India- (06:09 PM)

• Historical factors-

• Colonial legacy has played an important role in shaping our attitudes towards corruption.

• During the colonial rule, it was considered acceptable to steal from the British as it drained
India of its resources.

• But despite independence, this attitude has not undergone any change.

• The British administrative system was excessively corrupt & since the legacy of that system
continues to operate in India, the problem of corruption has not been addressed effectively.

• Institutional factors-

• The concentration of vast discretionary powers in the hands of the state as a legacy of the
License Raj era has ended up promoting a rent-seeking attitude in the bureaucracy.

• In India, corruption is a low-risk and high-reward activity primarily due to an ineffective

criminal justice system.

• Civil servants often carry a low image of themselves, and in such situations, they make peace
with corrupt behavior as it suits their self-image.

• The system has collapsed to such an extent that even the young and honest officers are not
able to retain idealism for a long time.

• Honest civil servants are often served with adverse consequences, therefore demoralizing
them significantly.

• Government procedures are extremely complicated and cumbersome making it difficult to

avail government services easily.

• As a result, citizens try to find easy ways to get around the system.

• Societal factors-
• Lack of spirit of democracy where the civil servants often show the same arrogance and
hubris shown by colonial rulers.

• Prevalent economic inequality in the society is also cited as a justification for corruption.

• Ethics have been severely compromised even in the field of education.

• Eg: Copying in examinations has become a standard practice.

• At times, even the question paper and marks are on sale.

• Therefore, a new generation brought up under such influences does not inspire much
conflict.

• With increased materialism in society, there has been an overall decline in the morals and
values of society and as a result, corruption has become a part & parcel of life.

• Political factors-

• The increased role of money and muscle power in the elections where politics has become a
business and politicians try and recover the money spent after assuming power.

• Since assuming power has become the most important factor in politics, political parties do
not refrain from indulging in horse trading for which money needs to be earned through
corrupt sources.

• Collusive and Coercive Corruption- (07:05 PM)

• In Coercive corruption, the victim is forced to be involved in a corrupt act to avail a

government service.

• The bribe giver is a victim of extortion because if he does not submit to the demand of the
public officials then he would end up losing a lot more than the bribe itself.

• Even though smaller in magnitude than Collusive corruption it results in the exploitation of
the downtrodden and the marginalised.

• A citizen is sucked into a vicious cycle of corruption to avoid harassment, loss of opportunity
& loss of work due to non-compliance with the demand of a bribe.

• This money or bribe is often termed speed money.

• Such corruption occurs largely due to a lack of vigilance in public offices, absence of fear of
the law & lack of awareness related to legal rights among the citizens.

• An ineffective criminal justice system and the absence of fear of the law also contribute to it.

• One may also attribute it to a supply-demand mismatch in the government services & due to
excessive discretion that has been placed in the hands of the public servants.

• In Collusive corruption, both the bribe-giver and the bribe-taker cheat the society.

• At times, the bribe giver is more guilty than the bribe taker.

• It is often referred to as top-down corruption.

• It usually occurs at higher levels of government.

• Because of the volume involved, it is often termed as big-ticket corruption.

• Some scholars believe that centralization of power along with unprecedented growth in the
private sector is a major cause for such type of corruption.

• This is because of the increased competition private players try to outgrow each other at the
cost of public resources.

• Kickbacks received as a part of government procurement are one of the forms of such
corruption.

• Collusive corruption is more harmful than Coercive corruption? (07:33 PM)

• It is easy to define Coercive corruption.

• Eg: According to PoCA, 1988-> acceptance of illegal gratification by a public official is an

offense.

• The law offers protection to the bribe giver if he/she accepts that he offered a bribe & is
willing to cooperate with the government agencies.

• On the other hand, it is difficult to establish proof of Collusive corruption as both the bribe
giver and the taker stand to gain from the transaction.

• Also, the traps laid down by anti-corruption agencies are more effective in cases of Coercive
corruption.

• Collusive corruption is no doubt difficult to expose but at the same time, it is extremely
difficult to monitor Coercive corruption considering the huge size of government machinery
in India.

• The amount of money and resources involved in Collusive corruption is huge & therefore
implies a greater loss to the nation.

• On the other hand, Coercive corruption affects the citizens directly & impacts the lowest
strata of society the most.

• Coercive corruption can be difficult to tackle as it becomes a way of life & gradually people
develop tolerance towards it.

• On the other hand, Collusive corruption affects public expenditure on various welfare
programs and erodes the faith of the citizens in democratic institutions.

• Effects of Corruption- (07:44 PM)

• Economic-

• Tax collection suffers as most of the money generated through corrupt means is smuggled
out to safe havens.

• It discourages foreign investment since the ease of doing business is directly affected as a
result of corruption.

• Crony capitalism and favor of specific entities distort the level playing field and adversely
affect small businesses.

• It stifles the spirit of entrepreneurship and innovation in the economy.

 • It lowers compliance with regulations, therefore, reducing the quality of government services
and infrastructure.

• Even public health infrastructure suffers due to lower standards of health services & drug
production.

• Societal-

• It drains the society of moral, ethical, and mental energy including the will of the honest
which stands against the wrongs in the society.

• It destroys social capital and people end up becoming more distrustful of each other.

• The welfare schemes and programs suffer & as a result, the benefits are not able to reach
the lowest strata of the society.

TOPICS TO BE DISCUSSED IN THE NEXT CLASS- EFFECTS OF CORRUPTION, OTHER FORMS OF

CORRUPTION

Summary

Ethics Class 06

THE CLASS STARTED WITH A BRIEF OVERVIEW OF THE PREVIOUS TOPICS (01:05 PM)

EFFECTS OF CORRUPTION (01:08 PM)

• Effects on Politics:

• It leads to the 'erosion of faith' in institutions of democracy.

• It undermines the legacy of the elected government and reduces the importance of values
such as public trust.

• It will increase the 'criminalization of politics' as well as increase the role of 'money' and
'muscle power' in the elections.

• Effects on Administration:

• It reduces the accountability of government officials to the citizens, therefore further

encouraging corrupt behaviour.

• Vicious cycle of Secrecy and corruption:

Secrecy leads to -> Lack of Accountability ---> Lack of Accountability leads to corruption.----> leads to furthe

• It results in misconduct by agencies such as the police, who work with the sole intention of
obtaining financial benefits at times. Therefore, Affecting investigation and prosecution and
rendering the criminal justice system ineffective.

• Public administration becomes ineffective resulting in the diversion of funds, meant for the
poor and marginalized.

• Effects on Environment:
 • It can have detrimental effects on the environment since the officials who are given the
responsibility of enforcing the environmental regulation may often overlook the same due to
bribery or similar other reasons.

VARIOUS FORMS OF THE CORRUPTION (01:28 PM)

• Bribery:

• It is payment offered by a citizen or business either voluntarily or on demand of a public

servant to exercise his powers while performing official duties in the favour of the bribe giver.

• Patronage:

• It refers to the favouring of the supporters of the government or a political party, the
government appointments and positions.

• Nepotism:

• The relatives of the appointing authority to the government positions are favoured over
other capable candidates.

• Cronyism:

• Benefits are extended to individuals or groups that provide economic and material resources
to specific politicians and political groups.

• Misappropriation of Funds:

• Funds meant for public purposes are 'siphoned off' to private accounts.

• Kickbacks:

• Officials share misappropriated funds from their organization, allocated to an entity involved
in corrupt bidding processes and where the portion of these funds is channelled back into
the accounts of concerned officials.

WAYS TO TACKLE THE CORRUPTION (01:40 PM)

• A) Legal measures:

• Section 7 of the Prevention of Corruption Act must be amended to include the offence of
'collusive bribery', It may be defined as a transaction in which the outcome of the transaction
leads to a loss for the state or the public.

• The definition of Bribery must be expanded to include acts such as 'wasting public money,
obstruction of justice, gross violation of constitutional provisions, etc'

• 'Prior sanction' should not be necessary in those cases of bribery where the accused has
been caught red-handed or in those cases where an official possesses assets
disproportionate to known sources of income.

• Corruption must be made a 'high-risk' and 'no-gain activity'

• All the ill-gotten money must be confiscated and should be put up for public use.

• To ensure a speedy trial of corruption cases, hearings should be held on a day-to-day basis
and specific courts must be designated to build expertise in such areas.
• We may also consider amending criminal law to limit the time of trial in corruption cases.

• An amendment should be made to the Whistle Blowers Protection Act to protect the
anonymity of whistleblowers.

• B) Institutional measures:

• At present the Lokpal is dysfunctional and there is a need to revive the provisions related to
it to ensure consistency with the commitment made at UN Convention Against Corruption.

• We may also constitute 'Local body ombudsman' for a group of districts to investigate the
corruption charges against the local body functionaries.

• The Provisions of the Delhi Special Police Establishment Act,1946 must be amended to free
the CBI from government control.

• The prosecution in corruption cases should be carried out by panelled lawyers to be chosen
by the Attorney General after consulting the Lokpal.

• C) Administrative Measures:

• An embargo must be put on post-retirement benefits/assignments for the top position

holders in all the national and sensitive institutions.

• All appointments at public offices, particularly at high positions should be ensured that no
person with doubtful integrity gets appointed.

• 'Risk profiling' should be carried out for all government jobs to determine the offices are
vulnerable to high risk of corruption.

• Government organization should 'streamline their processes' and should be suitably

rewarded for this.

• 'Department manuals' should be revised to reduce the discretionary powers vested in the
hands of the civil servants.

• Complete adoption of IT and e-governance to implement the concept of 'Paperless

Governance'

• The government should make it mandatory to sign an 'Integrity Pact'

• For Example, ONGC has signed an MoU with CVC and Transparency International to act as
an 'Independent External Monitor (IEM) for Integrity Pacts.

• D) Political Measures:

• There is a need to increase the 'transparency in the funding of political parties' by bringing
them under the ambit of the RBI.

• Suitable amendment should be introduced in the electoral bond schemes to curb instances
of 'Crony Capitalism'

• We may also consider introducing state funding of elections, a measure that has been
successful in several other countries.

• E) Societal Measures:
 • Fundamental duties must be brought to life by imparting value education.

• Active involvement of Civil Society organizations to highlight the cases of corruption.

• To keep a vigil on the government functionaries.

• A mechanism should be developed to tackle the objections raised with respect to corruption
in the media.

• Since social sanctions are far better at tackling corruption, society should create a deterrent
effect.

WORK CULTURE (03:14 PM)

• Definition:

• 'Work Culture' refers to a 'Collective set of values and beliefs of an organization and its
employees'

• It determines the manner in which the employees of the organization interact with each
other as well as their attitude towards the clients and other partner agencies.

• Strong Work Culture:

• An organization is considered to have a 'Strong Work Culture' if the employees adhere to the
'values' and 'rules' of the organization.

• The work culture of an organization determines which achievements are given importance
by the leadership of the organization.

• Work Culture also determines how the external individual perceives an organization.

• The work culture reflects the 'philosophy of an organization that it usually formed over a
long period of time and is often deeply influenced by the founders of the organization'

• For Example,

o Google promotes a work culture of innovation and creativity where the employees are encou

o Intel focuses on employee development and capacity building through various training progra

o Amazon on the other hand is known for a work culture that emphasizes a lot on achieving stiff
balance of its employees.

o 'TATA Group of Companies' is known for its 'Employee Centricity'

• Characteristics/Traits of 'Healthy Work-Culture':

• There will be 'Work-life Balance' is in contrast to the 'Hustle work culture'

• The organization prioritizes dignity, respect for each other and integrity in the workplace.

• It focuses on the well-being of its employees and the policies are 'Employee-Centric' to a
large extent.
• The 'Spirit of teamwork' is given a lot of importance and it is expected that the organization
will work in unison to achieve the common objectives.

• It focuses on promoting healthy competition among its peers.

• It promotes a 'Culture of Inclusivity' where the employees are treated with utmost respect
irrespective of their social background, religious belief, ideology, etc.

• It promotes 'Democratic Decision Making' and a flat hierarchical structure.

• Characteristics/Traits of 'Toxic Work Culture':

• The organization has a 'culture of negativity' and employees have low moral and motivation.

• There is a 'lack of clarity regarding their roles' especially due to poor communication from
the top.

• 'Office Politics' is a common phenomenon, where employees are often logged into a power
struggle with each other.

• The organization witnesses a 'High attrition rate' and is not able to retain employees for a
long period.

• Such organizations promote the fear of failure, 'Failure is Discouraged' and employees are
put under excessive pressure to achieve positive outcomes at all times.

• Traits/Characteristics in Indian Civil Services:

• Civil services over-emphasised the 'Culture of secrecy' where transparency is usually an

exception, Even the Second ARC Report has mentioned it has one of the biggest problems in
the functioning of the civil services.

• Civil servants often try to hide the 'reasoning behind their policy decisions' and the
'outcomes of those decisions'

• It not only results in a 'trust deficit with citizens' but also leads to nepotism, corruption, and
loss of accountability.

• 'Undue emphasis on rules and regulations' and complicated procedures, Civil servants often
overemphasise rules and regulations rather than adopting 'problem problem-solving
approach' resulting in undue delays and a lack of empathy and compassion.

• Civil Servants are often 'status quoist' in nature and therefore resist any reform or changes.

• They 'Lack the initiative to take innovative steps' and as a result is difficult to introduce new
changes such as the adoption of technology.

• They suffer from an 'Attitude of Complacency', which may be attributed to time-bound

promotions and the concept of career civil services not only that civil services are often
'reactive' in nature rather than being 'proactive', Therefore, policy-making is
often 'myopic' in nature.

• 'Insensitivity': Civil servants are often criticised for their insensitivity towards the problems
and issues, It often originates from the hierarchical nature of the services that insulates them
from the 'ground reality'.
TOPIC FOR THE NEXT CLASS: POSITIVE TRAITS OF THE CIVIL SERVICES IN INDIA.

Summary

Ethics Class 07

OVERVIEW OF THE PREVIOUS CLASS (01:10 PM)

CHARACTERISTICS OF A DESIRABLE WORK CULTURE IN CIVIL SERVICES (01:12 PM)

• 1) It should promote responsiveness and compassion towards the citizens especially weaker
sections of the society.

• 2) It should promote self-esteem and pride in one's work to ensure motivation towards one's
work.

• 3) The task at work should be assigned properly so that accountability can be fixed effectively
at the workplace.

• 4) Civil services should promote a learner attitude, especially towards acquiring new skills to
deal with the challenges of the 21st century.

• 5) It should focus on the simplification of rules and procedures or minimisation of

discretionary powers in the hands of the civil servant.

• 6) Civil service should lead by example, show the necessary leadership trade and be willing
to make changes in themselves before they set out to transform society.

IMPORTANCE OF HEALTH WORK CULTURE IN THE CIVIL SERVICES (01:26 PM)

• 1) It can help in reducing conflicts among individuals or various departments during the
course of their work.

• 2) In a healthy work culture employees enjoy a higher motivation level and attrition rates are
considerably lower.

• 3) It can enable individuals and teams to become self-organised in turn improving the quality
of work and productivity.

• 4) It can result in an increased loyalty towards the goals of the organization where the
employees are always eager to help each other to achieve the common objectives.

• 5) In the civil services, employees can become more considerate and compassionate towards
the problems of the citizens.

DOES THE WORK CULTURE DIFFER FROM ONE COUNTRY TO THE OTHER (01:36 PM)

• The social culture and the traditions in different countries have, Some of the practices in
different countries are as follows:

• AMERICAN WORK CULTURE

• They tend to place a high priority on results and achievements. The work culture is highly
individualistic and competitive and short-term results are often given a lot of importance.
 • Employees are expected to work beyond the office hours and deliver results at times they do
not enjoy protection within the organisations resulting in uncertainty and insecurity,
producing a highly competitive environment with less collaboration between peers.

• GERMAN WORK CULTURE

• German organizations tend to use formal titles and are rigid when it comes to punctuality.

• There is no expectation of working overtime and the employees are expected to be at work
on time and leave when the clock strikes 5.

• Socialising, gossiping and chit-chatting are not encouraged at the workplace. A lot of
emphasis is given to performing the task with diligence. Work-life balance is given the
highest importance with a generous number of leaves.

• SCANDINAVIAN WORK CULTURE

• The well-being of the employees is given utmost priority, They have shorter work weeks
ranging from 32-36 hours on average.

• They enjoy longer vacations and five weeks of paid leave in a year is a common
phenomenon.

• Organisations often focus on a flat hierarchy and they encourage autonomy and independent
decision-making.

• JAPANESE WORK CULTURE (01:58 PM)

• The work culture tends to focus on cooperation within the teams and emphasis on mutual
respect for each other.

• Even though teamwork is extensively promoted, Organizations tend to focus more on

processes than the results.

• Contrary to the German work culture, The employees are expected to socialise outside the
work.

TRAITS THAT CIVIL SERVANTS CAN LEARN FROM THE WORK CULTURE OF PRIVATE ORGANIZATIONS
(02:07 PM)

• Establishing a clear communication channel within the organization to discredit the informal
channel of communication.

• Adopting a flat structure in the organization and promoting democratic decision-making.

• Emphasising customer satisfaction and seeking continuous feedback to improve the public
service delivery.

• Private organizations work on the principle of rewarding and recognising the best
performers, government organizations should also incorporate similar principles in their
work culture.

• Private organizations often evolve standard operating procedures and focus on the time-
bound execution of the projects.

• Evolving standard guidelines within government organizations can also pay rich dividends.
 • Government organizations may consider adopting objective annual assessment methods
such as KPI, KRA, OKR etc.

CREATING A POSITIVE WORK CULTURE (02:22 PM)

• Creating or formalising the vision of the organization can help in attracting the right people
and building a shared sense of purpose within the organization.

• Employing people after assessing the cultural fit and in case a team member does not
behave following the organization's work culture, The leadership should work closely with
them to adjust their outlook and attitude according to the work culture.

• Leaders must focus on promoting trust and empathy among the employees. Not only that
they should be open to feedback from the rest of the team, and actively listen to the
concerns of others and show appreciation for their achievements.

• Dedicated spaces must be created at the workplace to foster socialisation.

• Employees should be provided with support for providing physical and mental health.

• Providing training and opportunities for personal development to the team members.

• The leadership must show their commitment to the values of the organization through their
actions and decisions.

UTILISATION OF PUBLIC FUNDS (03:04 PM)

• PRINCIPLES TO GOVERN UTILISATION OF FUNDS

• Public funds should be spent only for public purposes and the objective criteria should be
evolved to determine the priorities of the Government.

• Funds should be spent following the law made by the Legislature.

• Utilization of public funds should be driven by outcomes rather than inputs and outputs.

• Decision-making criteria behind the utilization of funds should be made public to ensure
greater accountability.

• Timely release of funds as per pre-decided schedule to avoid delayed execution.

• The government's approach towards the utilization of public funds must be inclusive so that
the problems of the most marginalized sections of society are given high priority.

ISSUES ASSOCIATED WITH UTILISATION OF PUBLIC FUNDS (03:31 PM)

• 1)Underutilization of funds

• It often results in what is termed a "March Rush" where the Administrative Agencies try to
spend a large portion of funds indiscriminately so that they don't lapse at the end of the
Financial Year.

• Delay in fund flow is one of the major factors causing underutilisation

• 2)Mis-allocation of funds

• Political parties often misuse Public Funds for Political advertisements. This ends up
promoting narrow political interests rather than general Public Interests.
 • For example: UP government advertising in Delhi is a sheer waste of resources.

• Freebies culture and its negative repercussions.

• 3)Misappropriation of funds.

• Misappropriation is the syphoning of funds.

• Out of every 1 rs spent only 15 paise is reached to the intended beneficiaries.

• Please refer to the Handouts as well as suggested by the faculty.

The topic for the next class: Challenges to public service delivery, Corporate governance.

Summary

Ethics Class 08

A BRIEF OVERVIEW OF THE PREVIOUS CLASS (1:07 PM)

UTILIZATION OF FUNDS (1:10 PM)

• Often, the availability of Public Funds alone is considered an important factor in deciding the
performance of the government in delivering services to the citizens

• Effective and efficient utilization of funds is equally important for a resource-starved country
such as India

• It is important that the money spent by the government is only for the benefit of the people
and is spent under the authority of law

• The government is only the custodian of public funds and not the owner and therefore it has
an added responsibility to ensure judicious and effective utilization of public funds

• Principles governing optimal utilization of public funds

• Money should be spent in accordance with the law

• Public funds should only be spent for public purposes and objective criteria should be
followed to determine the priorities

• Outcome-driven utilization, not just inputs/outputs

• Money spent should confirm accountability and control standards

• Timely fund releases to avoid delays

• Transparency to let the citizens know the basis of decisions taken and outcomes achieved

• Inclusive approach prioritizing marginalized sections

• Issues involved

• Underutilization

• "March Rush" owing to delays in fund release because of a complex process

• Delays in fund release and implementation

 • Delay in finalization of plans

• Frequent changes in fund flow mechanisms and fund-sharing agreements, lists of targeted
beneficiaries, and eligibility criteria

• Rigid guidelines causing suboptimal use

• Mis-allocation

• Political misuse for advertisements and irresponsible distribution of freebies

• Misplace priorities, thus ignoring essential areas

• Misappropriation

• Misuse of public funds for personal use

• Inefficient project implementation with leakages

• Redtapism and policy paralysis causing cost overrun

• Note: Refer to the handout for detail

PUBLIC SERVICE DELIVERY AND QUALITY OF SERVICE DELIVERY (1:54 PM)

• Public service delivery refers to the mechanism through which services are provided by the
State to the citizens

• It may happen through two modes:

• 1. Directly through the government machinery

• 2. Indirectly through various agencies and partners who work along with the government

• Some of the key public services delivered by the government include healthcare, education,
waste management, law and order enforcement, infrastructure development, etc.

• Quality of Service Delivery

• Quality of service delivery is a marker/indicator of how satisfied the citizens are with the
quality and standards of services provided by the government.

• One may call it a comparison between the expectations of citizens and the performance
shown by the public servants.

• Quality service delivery implies the following things:

• 1. Services are to be delivered in a timely, efficient, and effective manner showing adequate
care and foresight

• 2. Following the highest standards of professional ethics and morality

• Standards for measuring the quality of service delivery

• Reliability:

• Ability to provide a service in an accurate and dependable manner

• It also includes developing competence within the organization to deliver these services
 • Assurance:

• The courtesy shown by the service provider and the ability to convey trust so that the
customer can feel secure

• Tangible:

• It refers to the physical appearance of the equipment, products, and communication

material given by the service provider

• Empathy:

• The ability to provide individualized attention to the customers and show due care toward
their concerns

• Responsiveness:

• The willingness to help the customers including ensuring round-the-clock accessibility to the
customers

• Challenges of public service delivery

• Poor awareness among people about their rights

• Over-emphasis on procedures rather than the results

• Apathy and high-handedness shown by the government officials

• Note: Refer to the handout for detail

CORPORATE GOVERNANCE (3:16 PM)

• It is defined as a set of systems, processes, and principles that ensure that the functioning of
a corporate entity is beneficial to all the stakeholders in the long run

• Stakeholders would include everyone ranging from the Board of Directors, Management,
Shareholders, Customers, Employees, and society

• It is it duty of the management of the company to protect the trust and the interest of all the
others

• Independent Directors

• They are outside directors or non-executive directors of a company

• They are supposed to be appointed in publicly listed companies only and are charged with
the responsibility of protecting the interest of minority shareholders

• As per the Companies Act 2013, the role of independent directors includes the following

• Safeguarding corporate values such as transparency, accountability, and responsibility in the

best interest of all the stakeholders

• Bring an objective view in the evaluation of the performance of the board and management

• Scrutinize the performance of the management in meeting the agreed objectives

• Safeguarding the interest of all the stakeholders, particularly the minority shareholders
 • Determine the appropriate level of remuneration for executive directors and senior
management and wherever necessary recommend the removal of executive directors

• They are supposed to balance the conflict of interest of various stakeholders

• Ensure the integrity of financial information so that fraud and corruption can be prevented

• Appointment of Independent Director

• The appointment procedure shall be independent of company management and the board
must ensure an appropriate balance of skills, experience, and knowledge.

• The appointment shall be approved at the meeting of the shareholders

• The notice for the meeting should include a statement that in the opinion of the board, the
Independent Director proposed to be appointed fulfills the conditions under the Companies
Act

• Removal of Independent Director

• Removal is carried out as per a simple majority resolution of the Board of Directors

• Note: Refer to the handout for detail

Topics for the next class: Corporate Governance (Continued), Probity

Summary

Ethics_JG Class 09

OVERVIEW OF THE PREVIOUS CLASS (01:10 PM)

CHALLENGES CONCERNING THE CORPORATE GOVERNANCE IN INDIA (01:17 PM)

• 1) Most of the business continued to be controlled by the families despite going public as a
result, it is a common practice for the families and friends of the promoters to continue to be
appointed as board members.

• RESOLUTION

• We may adopt the rankings system to rank the diversity of corporate boards and publish
them for the investors and the other stakeholders.

• The founders, irrespective of their legal position, continue to influence key business
decisions significantly, and the corporate entities have failed to realise the importance of a
succession plan.

• It is in the best interest of such organizations to evolve a succession plan and implement it
effectively.

• 2) Often corporate entities have been found to work in the interest of a few powerful people
compromising the interest of other stakeholders. For example, No alarm was raised by the
board of directors over the faulty management practices prevalent at IL&FS, The head of
 ICICI bank approved loans to videocons without following the due diligence measures as she
had an indirect interest in videocon.

• RESOLUTION

• Corporate entities must adhere to strict principles of transparency and accountability in

letter as well as spirit.

• 3)Despite the presence of independent directors the functioning of the board has been
compromised time and again.

• The independence of such promoters' appointed directors is questionable.

• Not only that some independent directors have been removed merely because they did not
comply with the decisions of certain promoters.

• RESOLUTIONS

• The powers provided to the promoters with respect to the removal of directors should be
limited.

• SEBI has proposed the adoption of stricter transparency norms as well as an independent
mechanism for the removal of independent directors.

• 4)Corporate entities stand exposed to different risks due to faulty investments often made
due to vested interest, thereby exposing even retail investors to significant risk.

• RESOLUTION

• Corporate entities must evolve robust risk management policies to minimise such risk in the
future.

• Corporate entities have been guilty of exorbitant competition to senior executives even at
the cost of other stakeholders.

• Companies must consider framing fair remuneration policies that should also require the
approval of shareholders.

• 5)Corporate entities often fail to comply with disclosure and accountability norms. In certain
cases, violation of basic guidelines has been flouted which have remained unpunished and
even the independence of the auditors has been compromised.

• RESOLUTION

• To improve the accountability standards the entire board of directors must be present at the
general meetings to give the stakeholders an opportunity to interact with them as well as to
pose or to ask questions.

RECOMMENDATION OF KOTAK COMMITTEE WRT CORPORATE GOVERNANCE (01:50 PM)

• The Kotak committee has extensively examined the current state of affairs and
recommended sweeping changes that will help improve governance and enhance
investor confidence. Emphasis has been laid on strengthening the three gatekeepers—the
board, the auditors and the regulator.

• Please refer to the handout as suggested by the faculty.

CORPORATE SOCIAL RESPONSIBILITY (02:00 PM)

• CSR when investing money in philanthropic activities is a general perception, But CSR must
look beyond this and it should include some other things like a particular corporate entity to
promote business ethics, and follow compliance, and legal rules.

• CSR should also mean that a corporation should also play an important role in promoting the
work-life balance of the employee.

• CSR role must influence various players in the supply chain to adopt ethical and sustainable
business practices.

• They must go beyond legal compliance concerning environmental and sustainable solutions.

• They must make a positive impact on the life of a local community and support community
Empowerment.

• They must invest in the upliftment of the local community.

• Legal provisions related to CSR under the Companies Act 2013:

• Companies have a net worth of 500 crores or more (or)

• Companies having an annual turnover of 1000 crores or more (or)

• Companies having a net profit of 5 crores or more.

• According to the act,

• Companies must constitute a CSR committee of the board comprising 3 or more directors,
out of which at least 1 must be an independent director.

• The board should report the composition of the committee in its annual report.

• Any such company must spend at least 2% of its average annual profit of the last 3 years.

ADVANTAGES OF THE CSR ACTIVITIES (02:21 PM)

• Corporate social responsibility is based on the premise that a business can only thrive if it
operates within a thriving society. In that way, the business depends on the
community it operates within, and as such, has an ethical and moral responsibility towards
that community.

• Companies can play a great role in nation-building by way of similar activities like CSR.

CHALLENGES ASSOCIATED WITH CSR IN INDIA (02:28 PM)

• 85% of the CSR spending is focused on specific sectors such as health, education and
livelihood development leaving little or no resources for the other sectors.

• CSR spending is lopsided in geographical terms as well. A large part is focused on the western
and the southern parts of India resulting in unequal development.

• Corporate entities are often focused on merely spending the CSR funds and fulfilling the legal
requirements instead of achieving the desired social objectives.

• Often the local communities are not involved in the CSR projects which are primarily driven
by the priorities of the corporate sector.
 • Companies often end up channelling CSR funds to their NGOs and foundations therefore
defeating the entire purpose of the CSR.

PROBITY IN GOVERNANCE (03:04 PM)

• Probity in governance is a quality of having strong moral principles such as honesty,

transparency, accountability, and objectivity in the functioning of an organization.

• It is an essential element in governance and is an important requirement for an efficient and

effective governance system.

• An important aspect of ensuring probity in governance is the absence of corruption.

• Some of the other requirements include rigorous standards of transparency and

accountability, effective implementation of rules and regulations and adherence to the
highest standards of objectivity.

• IMPORTANCE

• 1)Ensures the effective utilisation of the resources.

• 2)To develop trust, credibility and social capital.

• 3)To fulfil the expectations of society.

• 4)To ensure the well-being of the marginalised strata of the society.

• 5)Help in establishing the model institution of governance.

• 6)To ensure citizen-centricity of the governance process.

• 7)Can help in attracting the best talent to the public sector

• MEASURES TO INCULCATE PROBITY IN GOVERNANCE

• 1)Effective implementation of RTI as well as suo motu disclosure to ensure openness and
transparency.

• 2)Civil servants must be trained to identify conflicts of interest and find effective solutions to
them keeping the public interest as a priority.

• 3)Social audit.

• 4)Autonomy of the investigative agency.

• 5)Deployment of technology.

ETHICS IN INTERNATIONAL RELATION (03:19 PM)

• Ethics in IR refers to the application of morality and principles in solving the various ethical
dilemmas that a country faces in the conduct of its International relations with various
countries.

• IMPORTANCE OR NEED FOR ETHICS IN IR

• 1)Absence of a common global authority to enforce ethical values and principles.

 • 2)Emerging global issues such as terrorism, refugee crisis, and climate change require
effective participation with ethical considerations by various countries.

• 3) Problems such as organised crime, drug trafficking, and alleviation of poverty and hunger
require a coordinated approach by various nations and only an ethical approach can help in
finding peaceful resolutions to such issues.

• 4)IR and diplomacy can have wide ramifications on faraway lands and therefore require
careful ethical analysis.

• VARIOUS MAJOR APPROACHES TO SOLVE ETHICAL DILEMMAS IN IR (03:39 PM)

• Realism: Most common approach in International Politics. It assumes IR is guided by national

self-interest. According to this approach, morality is not an important
consideration in a nation's actions. What motivates or guides a nation's actions is its self-
interest.

• Idealism: Ideals such as peace, human rights, and global justice. According to such people,
the goals and means of foreign policy should be based on morality.

• Principled Realism: Based on a combination of the first two approaches. According to this
approach, Foreign policy involves the pursuit of interests based on power as
well as fundamental moral values.

• Apart from the above content, Please refer to the handouts, Material and PYQ as suggested
by the faculty.

The ethics syllabus(Theory part) stands completed with this class.