Abstract
Issue connected with business ethic s have recently acquired prominence in the global scenario in general and in the Indian context in particular but there are hardly any studies that delve into the issues of ethical behaviour in Indian organizations. The situational approach in ethics places heavy emphasis on the role of external environment/culture of an organization in ethical behaviour of the individuals. In line with this argument, die present study focuses on ethical behaviour of managers in public and private Vector organizations. Responses of 319 managers reveal that there are some differences in the nature of decisions (ethical or unethical) that the managers make in these two types of organizations. Results are analysed for the design of control systems in these two types of organizations.