Unit II
Business and
Organizational Ethics
Liberalization 1/2
Dismantled
excessive regulatory framework
New
policy to save entrepreneurs from
unnecessary harassment to start
undertaking
Freed
large private organizations from
bureaucratic control
Freedom
from license raj led to influx of
newer firms/entrepreneurs
Liberalization 2/2
Cars
and white goods (refrigerators,
microwaves, washing machines etc.) dereserved
Enabled
the middle class to meet their
needs
License
still needed for:
Distillation and alcohol, hazardous chemicals,
sugar, coal and lignite, industrial explosives,
pharmaceuticals
Electronics, aerospace, defense etc.
Globalization
Integration
of Indian economy with world
economy
Permit trade free-flow
Permit capital free-flow
Technological development
Free movement of labor
Reduction of Import Duties
Encouragement of Foreign Investment
Encouragement of Foreign Technology
Assessment
Privatization 1/3
Process
of involving private sector in
the ownership or operation of a state
owned or public sector undertaking
Ownership
Measures:
Extent of ownership
Total (100%)
Joint-Venture
Liquidation
Workers Co-operative
Privatization 2/3
Organizational Measures: Government leav
Privatization 3/3
Operational
Measure:
Grants autonomy to public enterprises in
decision making
Incentives for workers and executives
Freedom to acquire inputs from markets to
reduce cost
Development of proper criteria for
investment planning
Permission to raise resources from capital
market to execute plans for
diversification/expansion
Corporate Code of Ethics
Be
a socially responsible organization
Provide guidelines for employees
behavior
Comply with the law and government
regulations
Establish a better corporate culture
Avoid conflict of interest
Make proper use of company assets
and property
Safeguard proprietary information
Need for Code of Ethics
To
act as a philosophical base
To
shape ethical behavior (TATA)
For
self-regulation (Army/Navy/Air Force)
For
improving self-image
To
take moral responsibility (Flipkart-Big Billion
Sale)
To
provide inner strength
Considerations for Code of
Conduct
Tailor
Made Code
Define Scope
Employee
Involvement
Stakeholder
Involvement
Outsource Job
Implementation
Enforcement
Education
Review-Revise-
Update
Types of Organizations
Examples
Foxconn
(Component manufacturer
for Apple)
China
Apple component manufacturers
Human Dignity violated
OCW-NMC-Veolia
Partnership)
Leasing
Re-structuring
Operationalization
(Public-Private
Formulating Code of
Ethics
Code
of Ethics are similar yet different
for all organizations
Not
simply connected to Ethics
Perceived
as important tool for
fostering ethical conduct
Not
very effective in a broad ethical
sense
The Tata Code of Conduct
(Tata Steel)
TCOC
Tata Code of Conduct The
values and principles, which have
Governed Tata Steels business for a
century, have been deployed through
the implementation of the Tata Code
of Conduct ( TCOC, often referred to as
the 'Code' ), which was first formally
articulated in 1998.
This was intended to serve as a guide
to each employee on the values,
ethics and business principles
expected of him or her in personal and
professional conduct.
In the context of Tata Steels
increasing global presence the Tata
Code of Conduct has been reviewed to
accommodate required and
appropriate modifications.
The business ethos of the Tata Code of
Conduct is deployed through a
specially formulated structure - the
Management of Business Ethics (MBE)
- which is based on four pillars:
LEADERSHIP - The Managing Director is
also Tata Steels chief ethics officer. A
designated Ethics Counsellor, supported by
Departmental Ethics Coordinators, reports
directly to the Managing Director and has
access to the Board of Directors.
COMMUNICATION AND AWARENESS Compliance to the Code is a condition of
service for all employees and is also a prerequisite for service for suppliers,
contractors and vendors, who must agree to
respect it. Employee seminars, compliance
training and ethics awareness workshops
are conducted at frequent intervals.
EVALUATION OF EFFECTIVENESS - The
MBE Program is evaluated and reviewed
and new initiatives as required are
introduced under the MBE Annual Business
Plan.
COMPLIANCE STRUCTURE - A number of
systems and processes based on zero
tolerance have been put into place to
ensure that governance standards are met.
Professional Code of Conduct 1/2
Personal
Code:
Be courteous, respectful, honest and fair
with customers, competitors and other
employees
Comply with safety, health and security
regulations
Mind your tongue and dress-code
Follow directives from superiors
Be reliable in attendance and punctuality
Professional Code of Conduct 2/2
Legal
Code:
Maintain confidentiality of information
No personal profit
Convey correct information only
Do not use company resources for
personal pleasure
Provide products and services of
highest quality
Comply with all relevant rules,
regulations and laws
Universal Code of Ethics
Certain
ethical conduct is universally
expected;
Highest standards of personal integrity and
professional conduct
Do not discriminate on the basis of religion,
caste, race, ethnic or sexual orientation
Report questionable, unethical or illegal
activities
Participate in social service and cultural
activities
Conserve resources to protect environment
Advantages of Code of
Ethics
A
written Code of Conduct will help in:
Clarifying company policies and unifying
work-force
Responding to Government regulations
Employee self-image and improving
quality of new recruits
Promoting excellence
Integrate culture and strengthen systems
Promotes open communication
Realize organizational objectives