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BY SUJITH BHASKAR R
Initiatives to maintain
Organizational Ethics
1
Introduction to Ethics
 Ethics is at the core of decision-making, yet it also is
an ever moving target of abstraction.
 To be most valuable, ethics must be adaptable to
situations of uncertainty and change.
 Ethical code must shed light and insight into how to
solve dilemmas, some of which are unique or
situationally too infrequent to be practical to code
solutions for individually.
2
Do ethics influence Organizational Behaviour?
 Schwartz identifies eight metaphors describing how
ethic codes seem to at least indirectly influence
decisions and behavior:
 As a "rule book", the code acts to clarify what behavior is
expected of employees.
 As a "sign post", the code can lead employees to consult other
sources to test whether certain behavior is appropriate.
 As a mirror, the code provides a way for employees to confirm
whether certain behavior is acceptable.
3
Continued
4
 As a magnifying glass, the code encourages the employee to
look more carefully at what is said and done.
 As a shield, the code can give support to employees in
challenging unethical requests.
 As a smoke detector, the code can help to warn of danger while
there is time to prevent harm.
 As a fire alarm, the code may motivate employees to report
violations.
 As a club, the code spells out the consequences of
inappropriate conduct.
An Effective Organizational Ethic Policy
 An effective organizational ethics policy can reduce
legal risk, reduce operational uncertainty, increase
organizational flexibility, and provide a foundation
for organizational culture and shared meaning.
 By increasing organizational flexibility, workers are
more able to handle unforeseen circumstances,
thereby reducing supervisory resource loads.
5
Elements necessary for an effective
organizational ethics policy
 Organization-wide involvement.
 Recognize diversity in individual and circumstance.
 Be Practical.
 Provide a degree of individual-initiative or
opportunity and self-esteem building.
 Use critical thinking and other functional problem
solving strategies.
6
Continued
7
 Ethics code maintenance should be ongoing.
 Consistency between policies and actions.
 Ethical leadership, fair treatment of employees, and
open discussion of ethics in the organization.
 Values based ethics
GODREJ
AND
MAHINDRA & MAHINDRA
Few Examples of some
Organization maintaining Ethics
8
Godrej
 It represents quality, integrity and trust.
 It is committed to the highest standards of business
ethics and integrity, as well as strict observance
and compliance with the laws and regulations
governing its business operations.
 The Company has enunciated a Code of Conduct to
clearly define the behavioral expectations of each
and every person engaged by the company including
permanent and temporary employees, and trainees.
9
Honesty and Integrity
 Perform duties with honesty, integrity and to the
best of the employees’ ability.
 Honour Corporate values, obey law, and take
responsibility for actions and consequences.
10
Conflict of Interests
 Should not engage in any business - financial or otherwise, outside
their jobs.
 Obtain prior permission if you wish to take up any activity which
requires involvement during working hours or for which they are to
be remunerated.
 Should not engage in any business relationship or activity that
might detrimentally conflict with the interest of the Company or the
Godrej Group or bring discredit to it.
 Must furnish information regarding employment of their close
relatives in companies belonging to competitors, customers and
suppliers of any of the Group Companies to their HR department.
 Permitted to belong to political parties, canvassing or politicking of
any kind is strictly prohibited on the company premises.
11
Gifts, Donations and Entertainments
 Respect/care & concern for people
 Prevention of sexual harassment & exploitation
 Health, safety & environmental protection
 Customer orientation
 Commitment to quality
 Learning Organization
 Dedication & Commitments
12
Continued
 Trust
 Team Work
 Openness and transparency
 Discipline
 Confidentiality of Information & Assets
 Communications
 Compliances with laws
13
Violation of Code of Conduct
 In the event of breach of any of the confidentiality
clauses an employee shall be liable for all damages
including actual damages and lost profits caused to
the Company, as well as termination of employment
without notice.
14
Mahindra & Mahindra
 The Mahindra companies are committed in seeking long
term success with no compromise on ethical business
standards.
 Highest standards of integrity, impartiality, equity &
objectivity.
 Management and employees are expected to remain
independent in any decisions.
 Business decisions should be taken in a manner that
supports full and open competition.
15
Employees at M&M
 All should get equal opportunities.
 Discrimination & harassment of any kind will be dealt with in the
most severe manner.
 Employees should exhibit highest level of ethics and integrity in
every sphere of activity.
 Innovation and well reasoned risk taking will be supported, but
performance will be demanded.
 Suggestions from the work force will be welcomed for the
betterment of any process.
 Company properties should be used for company business under
proper care and safeguards.
16
Products and Services
 Products and Services will be technologically
competitive.
 Comply with all standards & legislations applicable in the
country of sale.
 Mutually beneficial relationships of an enduring nature
will be built with customers.
 Speedy, Courteous & effective response to customer
needs and expectations.
17
Legal and Other Compliances
Conduct business as a responsible citizen
& follow the applicable legal framework of the
country in which the company operates.
18
Competition
 Expects to have vigorous, free and fair competition.
 Compete through inherent quality and excellence of
products and services, never through illegal,
unethical or unfair business practices.
 Respect competitors proprietary informations and
rights.
 Believe in a fair competition.
19
At the End
“There is nothing more difficult to plan,
more doubtful of success, more dangerous to manage
than the creation of a new system; For the initiator
has the enmity of all who would profit by the
preservation of the old institutions and merely
lukewarm defenders in those who would gain by the
new.”
20

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Initiatives to maintain organizational ethics

  • 1. BY SUJITH BHASKAR R Initiatives to maintain Organizational Ethics 1
  • 2. Introduction to Ethics  Ethics is at the core of decision-making, yet it also is an ever moving target of abstraction.  To be most valuable, ethics must be adaptable to situations of uncertainty and change.  Ethical code must shed light and insight into how to solve dilemmas, some of which are unique or situationally too infrequent to be practical to code solutions for individually. 2
  • 3. Do ethics influence Organizational Behaviour?  Schwartz identifies eight metaphors describing how ethic codes seem to at least indirectly influence decisions and behavior:  As a "rule book", the code acts to clarify what behavior is expected of employees.  As a "sign post", the code can lead employees to consult other sources to test whether certain behavior is appropriate.  As a mirror, the code provides a way for employees to confirm whether certain behavior is acceptable. 3
  • 4. Continued 4  As a magnifying glass, the code encourages the employee to look more carefully at what is said and done.  As a shield, the code can give support to employees in challenging unethical requests.  As a smoke detector, the code can help to warn of danger while there is time to prevent harm.  As a fire alarm, the code may motivate employees to report violations.  As a club, the code spells out the consequences of inappropriate conduct.
  • 5. An Effective Organizational Ethic Policy  An effective organizational ethics policy can reduce legal risk, reduce operational uncertainty, increase organizational flexibility, and provide a foundation for organizational culture and shared meaning.  By increasing organizational flexibility, workers are more able to handle unforeseen circumstances, thereby reducing supervisory resource loads. 5
  • 6. Elements necessary for an effective organizational ethics policy  Organization-wide involvement.  Recognize diversity in individual and circumstance.  Be Practical.  Provide a degree of individual-initiative or opportunity and self-esteem building.  Use critical thinking and other functional problem solving strategies. 6
  • 7. Continued 7  Ethics code maintenance should be ongoing.  Consistency between policies and actions.  Ethical leadership, fair treatment of employees, and open discussion of ethics in the organization.  Values based ethics
  • 8. GODREJ AND MAHINDRA & MAHINDRA Few Examples of some Organization maintaining Ethics 8
  • 9. Godrej  It represents quality, integrity and trust.  It is committed to the highest standards of business ethics and integrity, as well as strict observance and compliance with the laws and regulations governing its business operations.  The Company has enunciated a Code of Conduct to clearly define the behavioral expectations of each and every person engaged by the company including permanent and temporary employees, and trainees. 9
  • 10. Honesty and Integrity  Perform duties with honesty, integrity and to the best of the employees’ ability.  Honour Corporate values, obey law, and take responsibility for actions and consequences. 10
  • 11. Conflict of Interests  Should not engage in any business - financial or otherwise, outside their jobs.  Obtain prior permission if you wish to take up any activity which requires involvement during working hours or for which they are to be remunerated.  Should not engage in any business relationship or activity that might detrimentally conflict with the interest of the Company or the Godrej Group or bring discredit to it.  Must furnish information regarding employment of their close relatives in companies belonging to competitors, customers and suppliers of any of the Group Companies to their HR department.  Permitted to belong to political parties, canvassing or politicking of any kind is strictly prohibited on the company premises. 11
  • 12. Gifts, Donations and Entertainments  Respect/care & concern for people  Prevention of sexual harassment & exploitation  Health, safety & environmental protection  Customer orientation  Commitment to quality  Learning Organization  Dedication & Commitments 12
  • 13. Continued  Trust  Team Work  Openness and transparency  Discipline  Confidentiality of Information & Assets  Communications  Compliances with laws 13
  • 14. Violation of Code of Conduct  In the event of breach of any of the confidentiality clauses an employee shall be liable for all damages including actual damages and lost profits caused to the Company, as well as termination of employment without notice. 14
  • 15. Mahindra & Mahindra  The Mahindra companies are committed in seeking long term success with no compromise on ethical business standards.  Highest standards of integrity, impartiality, equity & objectivity.  Management and employees are expected to remain independent in any decisions.  Business decisions should be taken in a manner that supports full and open competition. 15
  • 16. Employees at M&M  All should get equal opportunities.  Discrimination & harassment of any kind will be dealt with in the most severe manner.  Employees should exhibit highest level of ethics and integrity in every sphere of activity.  Innovation and well reasoned risk taking will be supported, but performance will be demanded.  Suggestions from the work force will be welcomed for the betterment of any process.  Company properties should be used for company business under proper care and safeguards. 16
  • 17. Products and Services  Products and Services will be technologically competitive.  Comply with all standards & legislations applicable in the country of sale.  Mutually beneficial relationships of an enduring nature will be built with customers.  Speedy, Courteous & effective response to customer needs and expectations. 17
  • 18. Legal and Other Compliances Conduct business as a responsible citizen & follow the applicable legal framework of the country in which the company operates. 18
  • 19. Competition  Expects to have vigorous, free and fair competition.  Compete through inherent quality and excellence of products and services, never through illegal, unethical or unfair business practices.  Respect competitors proprietary informations and rights.  Believe in a fair competition. 19
  • 20. At the End “There is nothing more difficult to plan, more doubtful of success, more dangerous to manage than the creation of a new system; For the initiator has the enmity of all who would profit by the preservation of the old institutions and merely lukewarm defenders in those who would gain by the new.” 20