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BY SUJITH BHASKAR R

Initiatives to maintain Organizational Ethics

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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.

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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.

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Continued

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.

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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.

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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.

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Continued

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

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GODREJ AND

MAHINDRA & MAHINDRA

Few Examples of some Organization maintaining Ethics

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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.

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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.

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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.

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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

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Continued

Trust

Team Work

Openness and transparency

Discipline

Confidentiality of Information & Assets

Communications

Compliances with laws

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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.

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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.

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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.

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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.

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Legal and Other Compliances

Conduct business as a responsible citizen & follow the applicable legal framework of the country in which the company operates.

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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.

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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.”