1. Professional Ethics and Social
Responsibility for
Sustainability
PRESENTATION BY:
AKANSHA TYAGI
RIYA JAIN
RUCHIKA CHAUHAN
ANCHAL SAHARAWAT
2. Professional
Ethical
Codes
A professional code of ethics is a set of
principles designed to help professionals
distinguish right from wrong to govern their
decision-making.
A code of ethics and professional conduct
outlines the ethical principles that govern
decisions and behaviour at a company or
organization. They give general outlines of
how employees should behave, as well as
specific guidance for handling issues like
harassment, safety, and conflicts of interest.
3. •It can foster an environment of trust, ethical
behavior, integrity, and excellence.
•Every employee play by the same rules and
behaves in a certain way toward one another,
productivity tends to grow as conflicts and
confusions disappear from the workplace.
•Companies that pay strong attention to ethics also
find it easier to establish lasting partnerships both
within and outside their industry.
•The recent so called Weinstein effect, which is
term that is used to describe a worldwide wave of
sexual abuse allegations against film producer
Harvey Weinstein, which eventually gave rise to
#MeToo campaign. After it spent months looking for
a buyer or investor, The Weinstein Company was
eventually forced to file for bankruptcy because
nobody wanted to touch it.
4. The components of
the code of
professional ethics:
. 1. INTEGRITY AND HONESTY
•Be honest and transparent when you act in ways that
impact other people
•Organizations don’t tolerate malicious, deceitful or
petty conduct.
• An employee’s behaviour should contribute to the
organizational goals.
•Stealing from the company or other people is illegal
5. 2. RESPECT FOR OTHERS
•It’s mandatory to respect everyone you
interact with.
•Be kind, polite and understanding.
•Respect others’ personal space, opinions
and privacy.
•If someone, be it customer, colleague or
stakeholder, is offensive, demeaning or
threatening to a person, the code of ethics
guidelines shall be referred for support.
3.JUSTICE
•Give everyone equal opportunity and speak
up when someone else doesn’t.
•be fair: Don’t show favouritism toward
specific employees and be transparent.
• If you think the company was wrong in a
specific instance, don’t try to cover it up or
accuse the other side. Discuss with the
management to find solutions that can
benefit both sides.
6. • Align your action with organizational
objectives.
• Occur whenever your interest in a
particular subject leads you to actions,
activities or relationships that undermine
the company.
•E.g. if an employee uses dubious methods to
get competitor and raise their sales record,
their action will have a positive impact on
the company’s revenue, but it put us at a
legal risk.
7. 5. TEAMWORK
• Working well with others is a virtue,
rather than an obligation.
•Employees should also be ready to
collaborate with and help others.
•All members within an organization
should be generous with their
expertise and knowledge.
6. COMPETENCE &
ACCOUNTABILITY
•We all need to put a healthy amount of effort in
our work because we’re all responsible for the
organization’s success. also because slacking off
affects our colleagues.
• Incomplete or slow working might hinder other
people’s work or cause them to shoulder the
burden themselves. This creates conflict with
the respect and integrity principles of self and
others.
•Employees must take responsibility for their
actions. They shall be allowed to take
responsibility and come up with ways to fix
their mistakes wherever possible.
8. •An employee shall follow all laws which apply to the
organization. For example, accountants and medical
professionals have their own legal restrictions and
they must be fully aware of them.
•When preparing contracts, clauses, disclaimers or
online copy that may be governed by law (such as
consent forms), make sure to verify from the legal
counsel before finalizing anything.
•Organizations have confidentiality and data
protection policy that cover the employees. They must
not expose, disclose or endanger information of
customers, employees, stakeholders or our business,
and always follow the cyber security policy, too.
9. Whistle blowing
• Whistle blowing basically is done by an
employee where he finds that the ethical
rules are broken knowingly or
unknowingly and an imminent danger for
the company, consumers or the public.
• The whistle blowing needs a relook at the
same work and requires breaking with the
very group that the whistle-blower viewed
as critical to financial success of the group
and the company or very survival of the
company.
• The decision of whistle blowing may
involve destabilizing one’s life and placing
the entire organization under scrutiny.
10. • The attempt of an employee or former employee of
an organisation to disclose what he or she believes
to be wrong doing in or by the organisation.
• Whistle blowing can be
internal,
external,
personal, and
impersonal
• Whistle blowing goes against the strong bonds in
Indian companies and culture norms of showing
loyalty.
• The whistle blower may not only lose his or her job
but may also experience negative effect on his
career and personal life. The pressure on the
whistle-blower may range from outright
termination to more subtle pressures.
11. The conditions in which whistle
blowing is morally justified are:
A product or policy that will
commit serious and
considerable harm to the
public.
When the employee identifies
a serious threat or harm to the
consumers, employees, other
stakeholder, state and things
against his or her moral
concern.
No action is taken in spite of
best efforts of the employees
to remedy the situation of
unethical actions.
The employee must have
documented evidence that is
convincing to a reasonable
level.
Valid reasons to believe that
revealing the wrongdoing to
the public will result in the
changes in the organisation
are necessary to remedy the
situation.
12. • Under what circumstances and against what type of
activities can an employee below whistle against his
seniors or employer is important. It can be treated
as questionable loyalty. How to treat it depends
upon the way it is presented and the broad minded
attitude of the management.
• An employee will be in a moral dilemma whenever
he finds that his employer is doing immoral act and
will be in confusion of future course of his action. In
Indian conditions there are various examples where
an employee complains for violation of act and
loose the job in the process.
• Due to fear of losing the job many employees avoid
or delay whistle blowing. Most of them do it safely
after changing the job. This sometime could be too
late to alert the authorities concerned.
13. EXAMPLES
Ratna Ala is the 36-year-old son of a shepherd from Morvi district in
western Gujarat. Ala was blind since birth, but Braille made him an
able. When RTI act came in 2005 and he got to learn about it via
radio, he filled an RTI seeking information about a two-kilometre
stretch of the road that connected his village to the highway.
The road was in shambles, but the reply that he got shocked him. In
reply, he learnt that on paper, the road had been repaired twice in the
last two years. He handed over the reply to media and soon the road
was repaired. Since then, Ala became an RTI activist and unearthed
many scams.
For example, in 2007, he prevented officials who were giving 281
acres of the village grazing land to a clock factory without permissions
from the state government. In 2011, he exposed 154 bogus names in
voting of Sarpanch election in his village whereas, in 2014, he busted
a illegal mining racket, withstanding threats to life and refusing bribes.
14. • Next is an example of Lalit, a civil engineer by
qualification, blew the lid off widespread corruption
in MGNREGA in Palamu, Jharkhand. He had
become a threat to contractors and corrupt
government officials. He undertook social audit of
NREGA with the help of economist and before he
could unearth the scam he was murdered.
• The Chhatarpur Police found his body at Kandaghati
in Chhatarpur on May 15, 2008. His mutilated body
and a belt around his neck suggested he was
strangled and his face smashed to deform it beyond
recognition. The police buried the body as
unidentified the same day.
This shows how following one’s ethics brought that
person’s life to a horrendous end.
15. Following instances show how freedom of
speech is misutilised by the whistle blowers:
• In case of disclosing business secrecy, inventions, future
plans and some specific specialised practices which may
be confidential and of exclusive company usage.
• Whenever an employee remarks are irrelevant to the
organisations work and product.
• In case of wrong accusations which cannot be proved
and which are made in vengeance only end up
demoralizing the employees.
• When an employee is complaining against transfer,
demotion or discharge when such action is taken on the
basis of routine performance appraisal.
16. Precautions before Whistle Blowing:
Be clear about your intensions and likely consequences. Go ahead
only if you are convinced that the situation warrants whistle blowing.
Compile documents to support your case. Do not depend upon
hearsay.
Allegations should be stated appropriately with documents and to be
sent to the right person/ position.
Preferably take the internal route. If this does not work then try
external route.
Whistle blowing can be done openly or anonymously. If identity is
disclosed we should be prepared to face the consequences.
17. The three main reasons people give for not
reporting are:
• fear of the consequences (legal, financial, reputational)
• the belief that nothing will be done, that it will not make any
difference
• uncertainty about how, where and to whom to report
Protecting whistleblowers from unfair treatment, including
retaliation, discrimination or disadvantage, can embolden people
to report wrongdoing and increase the likelihood that wrongdoing
is uncovered and penalised.
Companies, public bodies and non-profit organisations should
introduce mechanisms for internal reporting.
Employers should organise grievance redressal systems. This will
help employees to come forward with grievances. The committee
will attend the grievance and resolve them with the help of top
management. The external whistle blowing also can be taken up
by the grievance committee.
18. The following action will
reduce or prevent
external whistle
blowing:
• Create an effective internal grievance system so
that both present and past employees have no
reasons to complain.
• Appreciate employees and even adopt reward
system for solving problems though grievance
redressal system.
• Keep special officers in each unit to study and
evaluate wrong doings by various employees.
• Punish with heavy fines or retrenchment of
employees who indulge in unlawful and corrupt
practices.
20. What is corporate social responsibility?
Acting in an ethical manner is the
concern of businesses for the welfare of
society. It consists of obligations beyond
those required by law or union contract.
This definition makes two important
points:
First, CSR is both voluntary and law
abiding.
Second, the obligations of corporate social
responsibility are broad. They extend
beyond investors in the company to
include workers, suppliers, consumers,
communities, and society at large.
21. 2. Responsibility to
Employees
Keeping people employed and
letting them enjoy the fruits
of their labour is the finest
thing business can do for
society.
Beyond this, employers must
provide a clean, safe working
environment free from all
forms of discrimination.
Companies must strive to
provide job security as &
when possible.
ANY SETUP SHOULD UNDERSTAND THE GIVEN
RESPONSIBILITIES AT ATTRIBUTES OF CSR:
3. Responsibility to Customers
To be successful, a company
must satisfy its customers. A
firm must deliver what it
promises. Many consumers,
prefer to do business with
companies and brands that
communicate socially
responsible messages, utilize
sustainable business
processes, and practice
ethical business standards.
1. Responsibility to Society
A business provides a
community with jobs, goods,
and services. It also pays
taxes that support schools,
hospitals, and better roads.
Some companies have taken an
additional step to
demonstrate their commitment
to stakeholders and society
as a whole by becoming
Certified Benefit
Corporations, or B Corps for
short.
22. 6. Environmental Protection
The world’s forests are being destroyed
fast. Plant and animal species are
becoming extinct at the rate of 17
species per hour. Many companies have
become more environmentally
responsible. For example, Toyota now
uses renewable energy sources such as
solar, wind, geothermal, and water
power for electricity to run its
facilities.
5. Corporate Philanthropy
This includes cash contributions,
donations of equipment and products, and
support for the volunteer efforts of
company employees.
The contribution is intended to overcome
the distress of a natural disaster and
provide emergency relief.
American Express is a major supporter of
the Red Cross. The funds provided by
American Express enabled the Red Cross to
deliver humanitarian relief to victims of
disasters around the world.
4. Responsibilities to Investors
Companies’ relationships with
investors also entail social
responsibility. Eg, a social
investment fund might eliminate all
companies that make tobacco products,
liquor, weapons, or have a history of
being environmentally irresponsible.
Some ethical mutual funds will not
invest in government securities
because they help to fund the
military; others freely buy government
securities.
23. IMPORTANT TRENDS RELATED
TO ETHICS AND CORPORATE
SOCIAL RESPONSIBILITY
1. Changes in Corporate Philanthropy: Historically, corporate
philanthropy has typically involved companies seeking out
charitable groups and giving them money or donating company
products or services. The focus has shifted to strategic giving,
tying philanthropy and corporate social responsibility efforts
closely to goals and targets donations to the communities.
2. A Social Contract between Employer and Employee:
Now, organizations recognize that the social contract between
employer and employee is an important aspect of the workplace
and that both groups have to be committed to working together
in order for the organization to prosper.
The social contract can be defined in terms of four important
aspects: compensation, management, culture, and learning and
development.
24. 4. Sustainability: Sustainability is a concept derived from
environmentalism; it originally referred to the ability of a society or
company to continue to operate without compromising the planet’s
environmental condition in the future. Whether or not true sustainability
will be attainable in the near future, the development and promotion of
sustainability strategies has become an obsession for most large
corporations today. However, if we observe their actions rather than
their words, we may have cause for doubt.
3. The Growth Of Global Ethics And Corporate Social
Responsibility :
When the businesses expand into global markets, they must take
their codes of ethics and policies on corporate social responsibility
with them. These include respecting local practices and customs,
ensuring that there is harmony between the organization’s staff and
the host population, providing management leadership, and
developing a solid group of local managers who will be a credit to
their community. By fulfilling these responsibilities, the company will
foster respect for both local and international laws. Questions
involving child labour, forced labor, minimum wages, and workplace
safety can be particularly difficult in international operations and shall
be dealt with responsibility.
25. EXAMPLES
1. Godrej Consumer Products Limited: GCPL diverted 63 per cent of its
CSR budget to initiate medium to long-term livelihood recovery
programmes to support over 9000 nano entrepreneurs. GCPL achieved
zero waste-to-landfill and water positivity in the last financial year.It takes
back the post-consumer plastic packaging waste equivalent to the plastic
packaging it sends out.
2. Wipro Limited:During the last 12 months, Wipro has supported more than
1,561 projects covering humanitarian aid, integrated healthcare support, and
livelihoods regeneration, cumulatively reaching over 10 million by its
COVID-19 response.
3. Tata Power Company Limited:The company’s Adhikaar programme is an
interlinked socio-economic and scheme-based CSR initiative that aims to
inform, enable and empower marginalised communities. Teaming up with the
Rockefeller Foundation, the Tata Power Renewable Microgrid Limited
(TPRMG) was set up to enable access to reliable and renewable electricity for
25 million Indians. The program was awarded with gold at 9th ACEF Asian
Leaders Forum and Awards 2020 for ‘Excellence in CSR’.