1) Building Ethical Organisational CultureWhat is Organizational Culture?A system of shared meaning held by members that distinguishes the organization from other organizations. It is the basic pattern of shared assumptions, values and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization. Organizational culture passes down from long serving staff to new hires and becomes embedded in how the organization operates. Thus, organizational culture is influenced and impacted not just by written regulations, rules and policies, but also by the unwritten code of ‘how we really do things around here.’ Ethical Organizational CultureAn ethical organizational culture is what guides decision-making when no one is looking; it is what staff will rely on when there is no rule in place to address the dilemma being faced; it is what supports open discussion of difficult situations it is what sustains trust when information is unclear or facts are not known. An ethical organizational culture builds staff loyalty, fosters a sense of responsibility to deliver results through ethical means as well as to protect the image and reputation of the organization. It also promotes the commitment needed to manage the organization’s most difficult challenges or to adapt to new circumstances. Why Ehtical Organisational Culture Corporate wrongdoing and scandals can wipe millions off the value of businesses as well as wreck reputations that have taken decades to build. Any boss who still doubts the importance of prioritising building an ethicalculture should note that customers and employees are increasingly choosing ethical business with and work for. companies to do In the 2010 ‘Ethics in the Workplace’ Survey (available to subscribers at sallybibb.com)the majority of respondents said that they believed it was important to have an ethical culture. But what exactly is an ethical organisational culture and how do you build one. Ethical organisations are characterised by leaders who role model integrity,open and honest communication, an atmosphere where people speak up about wrongdoing and a pride in high ethical standards. Beyond the code of conduct – eight steps to building an ethical organisational culture1. The right leader: An organisation can never be ethical unless its bosses role model ethical behaviour and set the standards. They have to be clear about their values and demonstrate them in actions as well as words. 2. A clear purpose and strategy: Harvard Business School professor Michael Beer researched the difference between companies that achieve high performance levels over long time periods and those that fail when they reach a certain size. He analysed the companies that failed in the 2009 financial crash and suggested three core reasons; the companies lacked a higher purpose (they were focused on short term gains not long term value), they did not have a clear strategy and they badly mismanaged risk. 3. A focus on doing the right thing :For an ethical culture to prevail, employees also need to feel responsible and accountable for their actions. In the ‘Ethics in the Workplace’ survey , 70% of respondents believed that it is important that employees feel responsible for and committed to ethical practice. However only just over 40% believed that employees in their organisations actually did feel responsible. Without a sense of personal accountability people can blame their boss, the organisation or someone else. Creating an environment where people are expected to stand up for what they believe is right and take responsibility is crucial. Without it there can be no ethical culture as small and large daily wrongdoings will go unchecked. 4. Hiring the right people : Hiring people with the right values as well as the right skills and knowledge is important. Interviews and assessment processes should explore what people have done in certain situations as well as asking them about their rationale for their actions. 5. Firing the wrong people : If you don’t fire people for wrongdoing you send a message that behaving ethically does not matter all that much. Actions speak louder than words and people become very cynical if they see senior managers espouse one thing and do another. 6. Run ethical training courses. It can be difficult to spot an ethical situation in the first place, let alone knowing the best way to tackle it. All employees need to have the knowledge and skills to identify and tackle ethical situations as well as the ‘permission’ to raise concerns when they have them. Running mandatory ethics training for everyone in the company signals that ethics is a high priority. 7. ‘Reward’ people for doing the right thing and challenge them when they do the wrong thing. It can take a lot of courage to raise concerns about the actions of colleagues. People need to be encouraged to do so by being rewarded in the form of appreciation from management including a positive mark in their performance appraisal. People often don’t challenge wrongdoing for fear of ostracism from colleagues and management. They need to be actively encouraged to do so. 8. Tolerate mistakes (but not when they are made repeatedly). If people are afraid to make mistakes they will either always ‘play it safe’ (which is not always good for the business) or cover any errors up for fear of ‘punishment’. One company gives an annual award for the best mistake made last year – it is the mistake from which the corporation learned most. It co Model for Ethical Culture building- 62 different cultures Developed a classification of cultural dimensions – identified nine cultural dimensions Model provides information on what is universally accepted as good and bad leadership.tough confrontational and competitive Future Orientation Performance Orientation Human Orientation .2) CULTURAL DIMENSIONS GLOBE PROJECT- Research on the relationship between culture and leadership resulted in the GLOBE research program. GLOBE Project – Global Leadership and Organizational Behaviour Effectiveness. GLOBE study is a major study with broad applicability. Model underscores complexity of leadership process and how culture influences it.9D cultural model Findings emerge from a well developed research design-Used quantitative methods to study the responses of 17.000 managers in 950 organizations. Nine cultural dimensions- Assertiveness. collective distribution of resources and collective action Power Distance Uncertainty avoidance Description- Assertiveness—Degree to which people in a culture are determined. and kind to others. Performance orientation—Degree to which organization or society rewards group members for improved performance and excellence Humane orientation—degree to which a culture encourages and rewards people for being fair. and delaying gratification. Gender differentiation /egalitarianism—Degree to which organization or society minimizes gender role differences & promotes gender equality . Gender differentiation In group collectivism. confrontational. altruistic. and aggressive in their social relationships Future orientation—Degree to which individuals in a culture engage in planning. generous. caring.pride. loyalty and cohesiveness in organizations and families Collectivism. investing. assertive. and laws to make things more predictable. and procedures to avoid uncertainty. APPLICATIONS Help understand own cultural biases & preferences Help understand what it means to be a good leader. In-group collectivism—The degree to which people express pride. collective distribution of resources and collective action. Institutional collectivism—The degree to which an organization or society encourages collective action. Model provides information on what is universally accepted as good and bad leadership. some high some low . Help communication across cultural and geographic boundaries. organization. and cohesiveness in their organizations and families. or group relies on established social norms. structures. Power distance—The degree to which power is stratified or degree to which members of a group expect and agree that power should be shared unequally Uncertainty avoidance—Extent to which a society. loyalty. The use of rules. rituals. Hofstede’s Cultural Dimensions Power Distance: ◦ Inequality is fundamentally good ◦ Everyone has a place. Denmark and Sweden) ◦ People are responsible for themselves ◦ Individual achievement is ideal ◦ No emotional dependence on organizations and groups Collectivism in India. Pakistan.◦ Most people should be dependent on a leader ◦ Powerful should have privileges ◦ Powerful should not hide their power Uncertainty Avoidance ◦ Conflict should be avoided ◦ Deviant people and ideas should not be tolerated ◦ Laws are very important ◦ Experts and authority are mostly correct Individualism: ( US. Indonesia Masculinity: ◦ Gender roles should be clearly distinguished ◦ Men are assertive and dominant ◦ Machismo or exaggerated maleness is good ◦ Men should be decisive ◦ Work takes priority over family ◦ Advancement money and success are important . Canada. Australia. developed by Fons Trompenaars and Charles Hampden-Turner. Sequential vs Synchronic Relationship with the Environment 7. Universalism Versus Particularism . This model of national culture differences has seven dimensions : Relationships with people: Universalism vs particularism Individualism or Collectivism Specific vs diffuse Neutral Vs. Affective Achievement Vs Ascription Perspective on Time 6.TROMPENAARS’ FRAMEWORK- Trompenaars' model of national culture differences is a framework for cross cultural communication applied to general business and management. Internal vs External Control Explanation… 1. and China. Scandinavia. Individualism Versus Collectivism (The Individual Versus The Group) Individualism :People believe in personal freedom and achievement. and each relationship. They believe that you make your own decisions. rules. Their response to a situation may change. Germany. Latin-America. Australia. followed in countries in Latin-America. Followed in U. Canada. They try to deal fairly with people based on these rules. and that you must take care of yourself. Canada. the U.K. but rules come before relationships. Particularism : People believe that each circumstance. in exchange for loyalty. and obligations. and who's involved. the Netherlands. Followed in Russia. Followed in U. Specific (How Far People Get Involved Versus Diffuse .S. based on what's happening in the moment. New Zealand.K. and Japan Contd… 3. The group provides help and safety.. Africa.S. and Switzerland collectivism : People believe that the group is more important than the individual. 2. values. dictates the rules that they live by. The group always comes before the individual.. the U.(Rules Versus Relationships) Universalism: People place a high importance on laws. followed in France. whether they are at work or meeting socially. at work. and that their relationships with others will be the same. Followed in Russia.. Followed in U. the Netherlands. although good relationships are important. People don't reveal what they're thinking or how they're feeling. and they base your worth accordingly.. even spontaneously. As a result. Followed in U. Reason influences their actions far more than their feelings. followed in U. Neutral Versus Emotional (How People Express Emotions) Neutral: People make a great effort to control their emotions. Australia .K.. they believe that relationships don't have much of an impact on work objectives. no matter who you are. Achievement Versus Ascription (How People View Status) Achievement : People believe that you are what you do. Finland. India. the U. In these cultures. Contd… 5.. and China 4. These cultures value performance. and. and Germany Emotional : People want to find ways to express their emotions.K. Spain.Specific: People keep work and personal lives separate. Canada. and countries in Latin-America. They believe that good relationships are vital to meeting business objectives. Germany Diffuse : People see an overlap between their work and personal life.S.S. Sweden. it's welcome and accepted to show emotion. People spend time outside work hours with colleagues and clients. they believe that people can work together without having a good relationship. Ascription : People believe that you should be valued for who you are. present. Russia. they focus their actions on others. This includes how they work with teams and within organizations. At work or in relationships. and the U. and they avoid conflict where possible. and the U. or their environment. Argentina. and staying on schedule. External Control People believe that nature. Internal (How People Relate to Their Environment) Versus External Control Internal Control People believe that they can control nature or their environment to achieve goals. and future as interwoven periods. They often work on several projects at once. title.. People often need reassurance that they're doing a good job.K. Synchronous Time : People see the past. the U. the U. Sequential (How People Manage Time) Time Versus Synchronous Time Sequential Time : People like events to happen in order. Followed in France. controls them. They place a high value on punctuality. followed in Israel. Italy.S. New Zealand." and people don't appreciate it when their schedule is thrown off..S. and position matter in these cultures.K. they must work with their environment to achieve goals. Australia. planning (and sticking to your plans). In this culture. and Saudi Arabia . and Saudi Arabia 6. followed in China. "time is money. and Mexico Contd… 7. and these roles define behavior. followed in Japan. Power. and view plans and commitments as flexible. followed in Germany. Japan. . included views of US.3) INTERNATIONAL CODES OF CONDUCT: CAUX ROUND TABLE & ARCTURUS CAUX Round Table Principles for Business Conduct • Founded in 1986 by Frederick Phillips. European and North American business leaders meeting in Caux. The first international ethics code for business Developed in 1994 by Japanese. • The CRT advocates implementation of the CRT Principles for Business. • World standard expressed for measuring business behavior. • The principles apply fundamental ethical norms to business decision making. Japan and European countries. The Caux Principles are grounded in two basic ethical ideals: kyosei and human dignity. • • • • • • Drawn form Minnesota Principles – developed by Minnesota Centre for Corporate Responsibility. The Japanese concept of kyosei means living and working together for the common good – enabling cooperation and mutual prosperity to co-exist with healthy and fair competition. Switzerland Aimed to set a global benchmark against which individual firms could write their own codes and measure the behavior of their executives. former President of Phillips Electronics and Oliver Giscard d’Estaing. former Vice-Chairman of INSEAD business school in Paris. CAUX Round Table General Principles: TOWARDS WORLDWIDE BUSINESS The responsibilities of business are beyond shareholders and towards stakeholders. Economic and social impact of business to world commission . environmental and cultural integrity and the prevention of bribery and corruption. Competitors Communities. Owners investors. Caux Round Table Principles for Stakeholder Constituencies under the following topics: Customers. Employees. The Caux Principles aim to operationalize the twin values of living and working together and human dignity by promoting free trade. Suppliers. not simply as the means to the fulfillment of others’ purposes or even majority prescription.• • • Human dignity relates to the sacredness or value of each person as an end. ..g. support for terrorists. Remedy their dissatisfaction Health and safety of the customer and quality of his or her life not impaired by the work Ensure human dignity in goods or service offered. gun running. Beyond the chapter of law and towards a spirit of trust. Respect the integrity and culture of customers . bribery. drug trafficking CAUX Round Table General Principles: Towards Shareholders Provide highest quality of product services etc. money laundering. Respect for rules Support multinational trade (GATT/World Trade Organization) Respect for environment Avoidance of illicit operations e. at a reasonable price. Health and dignity of worker to be borne in mind. Towards Towards Employees Investors .CAUX Round Table General Principles: Work conditions to be fair and improved consistently. share all but classified information Listen and act when grievances are received In conflicts – “good faith” negotiation and not legal tangle No discrimination on any ground Ergonomics – in practice Update their skills and knowledge Sensitive problems to be tackled amicably CAUX Round Table General Principles: Fair and competitive return on capital by efficient management. Open in dealings. CAUX Round Table Pricing to be fair No coercion or litigation Long-term stability General Principles: CAUX Round Table General Principles: Towards Competitors Compete on quality or innovation Compete on positive brand equity Fair and open marketing and pricing No abuse of market power Towards Suppliers . Disclose relevant information except “classified” Conserve. protect and increase owners’ assets Respect their complaints for solutions. cultural and civic needs of society How to measure CSR relationships Use Caux Round Table Risk Assessment questionnaire “Arcturus” Confidential tool designed to help Board of Directors. No use of government/politics to gain market power No acquisition of commercial information by unethical means No violation of anti-monopoly and similar laws No illicit payments to obtain a competitive advantage CAUX Round Table General Principles: Towards Community Respect and maintain human rights Good corporate citizenship through charitable donations to educational. CEOs and Senior Managers Arcturus evaluates a firm’s conduct against the aspirations of the CRT Principles for Business . shareholders. competitors. executives. employees. What is Arcturus The Arcturus Corporate Responsibility Assessment Survey provides companies with a 360-degree self assessment of their corporate responsibility and sustainability performance based on the individual assessments of directors. and community . social and governance risks and opportunities to enhance long-term business profitability and value. employees. It enables companies to identify and prioritize environmental. suppliers. of a company to assess and diagnose various risks and opportunities. first published by the Caux Round Table in 1994. Arcturus identifies current and emerging issues in order to launch targeted improvement initiatives. The Arcturus executive questionnaire can be completed in about 60 minutes and the Arcturus full questionnaire can be completed in about 30 minutes per stakeholder. etc. Arcturus comprises 49 questions structured to assess performance and risks for key stakeholders .. management team. What is diagnosed is the extent to which a company has fulfilled its duties under the seven general CRT Principles and promoted its relationship with each of its stakeholder constituencies.customers. senior executives and/or employees. The diagnosis will allow management to consider issues the company is confronted with from the different perspectives of all stakeholders. Risks and opportunities are diagnosed from the perspective of the CRT seven general principles and the stakeholders groups.and against the Caux Round Table Principles for Business. An inventory process asking questions of board members. . of Japan recently completed its first use of Arcturus (known in Japan as CSR Innovation). This assessment process served as the basis for its new focus on implementing CSR globally. Pre interviews) Step II-Data Collection: Executives & employees answer 49 questions.(Evaluation /Assessment) Step IV-Extraction of Issues: Identifying issues-strengths & weaknesses of the company Step V-Reporting Data collection – Completing the Arcturus inventory worksheet . Arcturus: A five step process Step I-Pre Research & Customization: Company research by Arcturus team to understand company history and values(Annual report.Nissan Motor Co. Sustainability report . Step III-Investigation & Analysis: Responses to the 49 questions and the interview content to be examined and analyzed. Eg. Measured outcomes create new goals for corporate improvement. Environment Laws. organizational or governmental levels. Each respondent scores the company in each of the 49 areas of investigation. for the benefit of the natural environment and (or) humans. Awareness of issues impacting the company is collected in quantitative form on a 0 to 8 point scale and in qualitative form by written comments on activities. The CRT staff and project team facilitate the inquiry process. on individual. 4) Environment Protection- Environmental protection is a practice of protecting the environment. Each respondent adds qualitative comments on key areas of concern. Environmental Pollution- . policies and concerns which is called language data.Human pollution may harm the environment and the focus of pollution laws is to limit or prevent humans damaging the environment. Protection of the environment is needed due to various human activities. sulphur dioxide. • Water Pollution : is caused due to discharge of waste water from industrial and commercial waste into surface waters. PollutionPollution is defined (Environmental Protection act 1990) as “ the release into the environment medium of any process or substances which are capable of causing harm to man or any other living organism supported by the environment. industrial noise and high intensity sonar. nitrogen oxides. Types of Pollution- • Air Pollution : It is caused by the release of chemicals and particulate matter into the atmosphere. Causes of Pollution- • Air pollution can be caused by both human and anthropogenic sources. It can be said that pollution is the result of our social development through the means of science. Gaseous pollutants are usually produced by industry and motor vehicles. • Soil Pollution : occurs due to release of chemicals by spill or underground leakage. • Emissions from motor vehicles are one of the leading causes of air pollution.etc. • Noise Pollution : includes roadway noise. untreated discharge of domestic sewage. Gaseous pollutants include carbon monoxide. Pollution is the product of our scientific achievements being applied for the improvement of human facilities. aircraft noise.It is a popular issue after World War II. CFCs. eutrophication. • Thermal Pollution : is the change of temperature in the natural water bodies caused by human influence. . chemicals into flowing surface waters and disposal of waste and leaching into ground water. petrochemical plants. coal-fueled power plants. burning and spraying of pesticides and herbicides. 1927 . fuel. 2002 Environment (Protection) Act. 1980 Indian Forest Act. heavy metals and non-degradable chemical compounds into fresh or ocean waters. Humans are the primary cause of global warming since 1950s. large live stock farms. solid hospital wastes. They also can be untreated or partially treated sewage water. incinerators. Ordinary landfills are the source of chemical substances entering the soil environment. metals. The sources of these can be industries. Soil contaminants include chlorinated hydrocarbons. factories producing PVC. Some Environmental Protection Laws Air (Prevention and Control of Pollution) Act. chemical. plastics and other heavy industry. 1986 Forest Conservation Act. Pollution from agriculture comes from clear felling. nuclear waste disposal. Water pollution can be caused by discharge of toxic pollutants like pesticides. heavy metals. oil refineries. heavy metal. hospital wastes. lead. 1981[2] Biological Diversity Act.• • • • • Pollution sources that are stationary include chemical plants. 2010 Protection of Plant Varieties and Farmers' Rights Act of 2001 Public Liability Insurance Act. 2002 Wildlife Protection Act of 1972 Noise Pollution Act Hazardous waste Handling and management act. 1991 The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act. which assures the citizens of India the right to a healthy environment. 1974 Wild Life (Protection) Amendment Act. National Green Tribunal Act. 1989 National Green Tribunal Act. . 2010 (NGT) is an Act of the Parliament of India which enables creation of a special tribunal to handle the expeditious disposal of the cases pertaining to environmental issues. It was enacted under India's constitutional provision of Article 21. 2010 National Green Tribunal Act. 2006 Water (Prevention and Control of Pollution). An Act to provide for the establishment of a National Green Tribunal for the effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources including enforcement of any legal right relating to environment and giving relief and compensation for damages to persons and property and for matters connected therewith . To protect the forests and wildlife in the country. To improve the quality of life by protection of environment. To appoint environment officers to check environmental pollution To co-ordinate the activities of the various regulatory agencies already in existence. for conferring on and assigning to such Boards powers and functions relating thereto and for matters connected therewith. control and abatement of air pollution. to take appropriate steps for the preservation of the natural resources of the earth which.Objectives Providing for the protection and improvement of the environment Preventing environmental pollution in all its forms To tackle specific environmental problems that are peculiar to different parts of the country. . for the establishment. in which India participated. 1981 An Act to provide for the prevention. of Boards. with a view to carrying out the aforesaid purposes. WHEREAS decisions were taken at the United Nations Conference on the Hum an Environment held in Stockholm in June. include the preservation of the quality of air and control of air pollution. Air (Prevention and Control of Pollution) Act. among other things. 1972. Gives power to board for ensuring that there are proper systems for prevention of air pollution. “the prevention and control of air pollution at its source is the primary responsibility of State and local governments. . Among other reforms. Amendments created features to let industries make choices on the best way to reach pollution cleanup goals. 1972 The Wildlife Protection Act. Before 1972.” Objectives Protect and enhance the quality of air resources. India only had five designated national parks. Protect public health and welfare while fostering a beneficial productive capacity. control and abatement of air pollution . the Act established schedules of protected plant and animal species. 1972 is an Act of the Parliament of India enacted for protection of plants and animal species. Prevention. Wildlife Protection Act. It extends to the whole of India. hunting or harvesting these species was largely outlawed. 2003 have made punishment and penalty for offences under the Act more stringent. 1927 The Indian Forest Act. for the establishment. THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT. It also defines the procedure to be followed for declaring an area to be a Reserved Forest. The most famous one was the Indian Forest Act of 1878. Takes Step To Check Deforestation . what are the acts prohibited inside a Reserved Forest. Indian Forest Act. 1927 was largely based on previous Indian Forest Acts implemented under the British. birds and plants. to regulate movement and transit of forest produce. and for matters connected therewith or ancillary . It extends to the whole of India. and duty leviable on timber and other forest produce. It defines what is a forest offence. except the State of Jammu and Kashmir which has its own wildlife act The 2002 Amendment Act which came into force in January. or significant wildlife. The act aims to prevent and control water pollution and to maintain/restore wholesomeness of water by establishing central and state pollution control board to monitor and enforce the regulations Jharkhand Forest (Business Standard) Dept. a Protected Forest or aVillage Forest. 1974 An Act to provide for the prevention and control of water pollution and the maintaining or restoring of wholesomeness of water. with a view to carrying out the purposes aforesaid. and penalties leviable on violation of the provisions of the Act. of Boards for the prevention and control of water pollution. Both the 1878 act and the 1927 one sought to consolidate and reserve the areas having forest cover. The Act provides for the protection of wild animals. The state government initiated the scheme in the villages of the wildlife inhabited areas to check illegal felling of trees in the forest. The Jharkhand forest department has taken up a move to check deforestation by providing Liquefied Petroleum Gas (LPG) connection in the villages with subsidy.73 million hectares . According to a source of the state forest department. 2007 Forest survey data • Madhya Pradesh: 7.6 million hectares • Odisha: 4. The villagers of these forests used to collect wood from the reserve forest areas for cooking purposes. According to this scheme the villagers can take LPG connection paying 25 per cent of the amount required for the connection and the balance to be borne by the government.68 million hectares 2013 Forest survey data• Madhya Pradesh: 7.64 million hectares • Arunachal Pradesh: 6. the forest wealth especially saal trees reduced 50 per cent within last 10 years due to illegal felling.8 million hectares • Chhattisgarh: 5.75 million hectares • Arunachal Pradesh: 6.83 million hectares • Maharashtra: 4. 06 million hectares • Odisha: 5.03 million hectares • India’s five states with largest area under forest cover .• Chhattisgarh: 5.6 million hectares • Maharashtra: 5. Business Ethics Management It is the direct attempt to manage ethical issues and problems through special policies. committees Ethics consultant Ethics education and training Stakeholders dialogue. Components Mission or value statement Code of ethics Reporting and/or advice channels Risk analysis and management Ethics managers. officers. accounting and reporting Hierarchy : .5) Ethics Committee.Ethics Officers and Ethics Managers. practices and programs. partnership & consultation Auditing. . including the assurance that discipline is uniformly applied. Monitor and audit compliance. 7. 3. 5. 3.Make recommendations on improving the existing compliance mechanisms.Be the final voice concerning interpretations regarding the organization's ethics and compliance standards and procedures. 4. Communicate the organization's ethics and compliance standards and procedures. Assume responsibility for overall compliance with those standards and procedures. 2. Take the steps necessary to ensure that the organization learns from its experiences. 2. Oversee the use of due care in delegating discretionary responsibility.Oversee the use of due care in delegating discretionary responsibility. ensuring the effectiveness of that communication. Oversee enforcement. . as a minimum. Ethics Officers Ethics officers should. of the organisation in which they serve. Possible Roles for An Ethics Committee 1. 6. but preferably as an executive.Take the position that the committee is the responsible authority for ethics compliance in its area of jurisdiction. 4.Ethics Committees 1.Chaired by an external advisor and includes key management from headquarters and group operations. be appointed as senior managers. Contribute to the continuing definition of the organization's ethics and compliance standards and procedures. 5. as well as allows the ethics officer to effectively discharge his/her responsibilities. He/she also needs to be seen as a type of symbolic leader and somebody who is respected as the ethical benchmark. corporate magazines and brochures. Being an executive of an organisation and having a seat on the executive committee. Ethics Manager . Ethics Officers The ethics officer needs to: establish an ethics function within the workplace. assists in setting and integrating the ethical tone and strategy of the business from the top down. plus stakeholders. integrate ethical behaviour and decision making criteria in the organisation’s reward system. design and implement a communication strategy for ethics. conduct ethics training for all employees including senior and executive management. market ethics throughout the organisation in newsletters. He lends credibility to the function. and monitor and report on ethics performance by the company. to the board and/or ethics (social and ethics) committee. screen savers on desktops and by way of posters in canteens and other common spaces. Aside from being a specialist in the field of business ethics who possesses the ability to influence others to act or behave in a specific manner. A Code of conduct is a set of rules outlining the responsibilities of or proper practices for an individual. Principles. values. They have a duty to respond quickly and appropriately to minimize the impact of suspected ethical violations. industries. and . procedures and systems of an organization in a way that contributes to the welfare of its key stakeholders. 6) CODE OF ETHICS What is a Codes of Ethics Codes of ethics are voluntary statements that commit organizations. or rules of behavior that guide the decisions. or professions to specific beliefs. values. Managers hold positions of authority that make them accountable for the ethical conduct of those who report to them. party or organization. standards. and actions and/or that set out appropriate ethical behavior for employees. Managers also monitor the behaviour of employees in accordance with the organization's expectations of appropriate behaviour. Managers make themselves available as a resource to counsel and assist employees who face ethical dilemmas or who suspect an ethical breach. They fulfil this responsibility by making sure employees are aware of the organization's ethical code and have the opportunity to ask questions to clarify their understanding. Typically Codes talk about expectations to: obey the law. conflicts of interest. “Constitution” of the organization Significance of Code of Conduct Code of Conduct is the standard of expected ethical behaviour for the company's management and employees. competition and fair dealing among other things . bribery. insider trading. respects the rights of all constituents affected by its operations. preserving confidential information. corporate opportunities. It is about holding oneself to the highest standards of ethical business behaviour. Similarly. Whilst most traditional professions such as medicine.Professional groups also often have their own guidelines for appropriate conduct for their members. . purchasing or engineering to have their own codes. but basically these codes seek to identify and encourage ethical behaviour at the level of the individual organization. and that manufacturing processes are environmentally responsible’. it is now also increasingly common for other professions such as marketing. Sometimes they are called codes of conduct or codes of principle. the electronics industry has developed a code of conduct ‘to ensure that working conditions in the electronics industry supply chain are safe. that workers are treated with respect and dignity.These are specific to a single organization . Industry codes of ethics – As well as specific professions. including Dell. at the international level. law and accountancy have long – standing codes of conduct. Hewlett Packard and IBM. 3. in many countries the financial services industry will have a code of conduct for companies and/or employees operating in the industry. For example. particular industries also sometimes have their own codes of ethics . Professional codes of ethics . The code of conduct was developed by a number of companies engaged in the manufacture of electronics products.Types of Ethical Codes Organizational or corporate codes of ethics . Intel. the US. a collaboration of various business leaders from Europe. Cisco. Content of codes of ethics. For example. companies wishing to use the Fairtrade Mark must meet international Fairtrade standards which are set by the FLO. the international certification body. coalitions. Samsung and Sony. Programme or group codes of ethics – Finally. Microsoft. Possibilities for global codes of ethics. General Observations for being ineffectiveness of Code of Conduct .grouping of organizations also establish codes of ethics for those participating in specific programmes. Code of Ethics focuses on four main issues : Prevalence of corporate codes of ethics. and Japan resulted in the development of a global code of ethics for a business called the CAUX Roundtable principle of Business. For instance. It has since been adopted by a range of multinationals such as Apple. or other sub. Fairtrade Labelling Organizations International. Logitech. certain programmes. 4. Effectiveness of codes of ethics. Majority of employees are ignorant of the code of conduct. Copies of the codes are not made available to staff. Code of conduct is obsolete. Code of conduct is just on paper not being practiced. Senior managers never practice what the code of conduct says. Too many inconsistencies and impartiality in administering code of conduct have made it unsuccessful.com . Lack of adequate and regular education of employees about code of conduct affected its practice. and in the best interests of Amazon. The language of the code of conduct is too difficult to comprehend.com employees should always act lawfully. The administrative culture does not encourage good behaviour Companies and their Code Of Ethics: Amazon’s Code of Conduct or Ethics In performing their job duties. Code of conduct has brought about very little or no change into the behaviour of public servants. Amazon. ethically. And if you have a question or ever think that one of your fellow Googlers or the company as a whole may be falling short of our commitment. Trust and mutual respect among employees and users are the foundation of our success. It’s about providing their users unbiased access to information. and should be. Google’s Code of Conduct or Ethics “Don’t be evil. The Google Code of Conduct is one of the ways we put “Don’t be evil” into practice. don’t be silent. Unilever’s Code of Conduct or Ethics We conduct our operations with honesty. It’s built around the recognition that everything we do in connection with our work at Google will be. measured against the highest possible standards of ethical business conduct. We shall similarly respect the legitimate interests of those with whom we have relationships. integrity and openness and with respect for the human rights and interests of our employees. and attract loyal users. acting honorably and treating each other with respect.” Googlers generally apply these words to how they serve their users. We want – and need – to hear from you. But “Don’t be evil” is much more than that. 7) MISSION AND VISION . build great products. but for setting a higher bar for ourselves and helping us to manage through the inevitable grey areas that arise in the workplace. Our Code is the playbook for not only complying with the law. we’ve re-designed our Code of Conduct to bring the way we do business into even sharper focus. But it’s also about doing the right thing more generally – following the law. We set the bar that high for practical as well as aspirational reasons: Our commitment to the highest standards helps us hire great people. LinkedIn’s Code of Conduct or Ethics To help reinforce the importance of LinkedIn's culture and values. focusing on the needs and giving them the best products and services that they can. and they are something we need to earn every day. g.g. This helps senior managers and employees understand that values and ethical standards are integral to all company operation and planning. MISSION AND VISION CAN LEAD A COMPANY IN BECOMING ETHICAL Many companies build ethical values and goals into their mission or vision statements. It is what an organization wants to be.VISION Vision is the ultimate aim which an organization wants to achieve. . It is the dream or mental picture towards which the organization is moving. same NGO have mission of “ providing food and jobs for the homeless and unemployed or poor. NGO working for the poor might have vision of “ A world without poverty. It is what an organization is.. Vision helps in setting a benchmark for ethics and mission helps in achieving that. For e. MISSION Mission is the path through which the organization will achieve its goal. For e.. It is how the organization exit the current position and work to achieve the goal. and not simply an "add-on” to be considered after important decisions have been made. its mission and value describes principle which helps in being ethical. Provide a great work environment and treat each other with respect and dignity. its mission and vision statement describes 6 guiding principles that helps this organization in being ethical. Starbucks. Embrace diversity as an essential components in the way we do business. leaders and board to do the right thing. Pursue growth in harmony with the global community through innovative management. They create the common understanding of what the organization means and expects when it requires employees. Apply the highest standards of excellence to the purchasing. Toyota. roasting and fresh delivery of our coffee. For instance. Develop enthusiastically satisfied customers all of the time. . Recognize that profitability is essential to our future success. Contribute positively to our communities and our environment. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities. Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world. but it can nevertheless be a tool for emancipation. There are two aspects to ethics: Being able to determine what is right or wrong. Culture and Ethics – • Cooperation is easier and conflicts are limited when people share convictions.& .Nutshell : Ethical organizational climate and culture rest on mission vision and values of the organization 8) CULTURE AND ETHICSEthics – • Ethics is a code of behavior that a society considers moral and appropriate for guiding relationship with one another. • Culture can obstruct progress. We therefore need to look for ethical principles that are shared worldwide. Commitment for doing what is right and good. good and bad. freedom of speech. hence. good or bad . • Culture is also a goal in itself: it gives meaning to our existence. • The same holds true for equal rights. • Effects Of Culture – • Determines how people communicate • Determines how people interact • Determines how people relate to one another • Guides day-to-day working relationships • Determines what is appropriate behavior • Determines how power and status are allocated • Cultural Ethics- . culture is the bedrock supporting every development. • Ethics are standards of right and wrong. but are also the objective of development. responsibility for future generations. and democracy: they stimulate progress. Ethics are concerned with what one ought to do to fulfill one’s moral duty. • Standards and values are an integral part of any culture. or those professionals to work effectively in cross-cultural situations.Code of Cultural Ethics – • There should be a process of actively developing and practicing appropriate. agency. and sensitive strategies and skills in interacting with culturally different persons. thereby producing better outcomes. agency. relevant. • There should be a set of congruent behaviors. and policies that come together in a system. policies. and attitudes used in appropriate cultural settings to increase the quality of services. . attitudes. practices. • There should be an integration and transformation of knowledge about individuals and groups of people into specific standards. or among professionals and enables that system. . nurturing traditions and culture.8) The International Partnership for the Satoyama Initiative (IPSI) is a partnership made up of 167 member organizations dedicated to working together to realize societies in harmony with nature. Based on knowledge and practices locally accumulated in such human-nature interactions over a long time. they have been increasingly threatened by rapid socio- . fuels. and other materials. production activities and their management mechanisms have created elaborate systems that have continued to support local communities by providing foods. people have developed ways to utilize and manage their surrounding natural environment to sustain and improve their daily lives and production activities such as agriculture. However. and maintaining ecosystems and biodiversity. In many parts of the world. forestry and fisheries. the maintenance and rebuilding of SEPLS in various localities – in other words.2 Three-fold approach The three-fold approach of the Initiative is intended to maintain and rebuild landscapes and seascapes in which land and natural resources are used and managed in a more sustainable manner by: - Consolidating wisdom on securing diverse ecosystem services and values. efficient and large-scale production systems that often cause environmental degradation and loss of cultures and traditions. and Integrating traditional ecological knowledge and modern science to promote innovations. is vital to the process. Exploring new forms of co-management systems or evolving frameworks of “commons. This new social mechanism would support and promote the maintenance and rebuilding of SEPLS. comprising human communities where the maintenance and development of socio-economic activities including agriculture and forestry align with natural processes. Understanding diverse ecosystem services and values that give rise to human well-being is an indispensable aspect of this approach. Many have been converted into more uniform. humans will be able to enjoy a stable supply of various natural assets well into the future. as is the consolidation of wisdom on securing these services. putting the sustainable use and management of natural resources into practice – should entail five ecological and socio-economic perspectives: - Resource use within the carrying capacity and resilience of the environment - Cyclic use of natural resources - Recognition of the value and importance of local traditions and culture . This includes not only landowners and local residents. Exploring new forms of co-management systems or evolving frameworks of “commons” while respecting traditional communal land tenure. it is important to explore ways and means for using and managing natural resources sustainably that benefit current and future generations.economic changes in recent years. 3. IPSI was established in 2010 in order to undertake and facilitate a broad range of activities to implement the concepts of the Satoyama Initiative by diverse stakeholders. It is also critical to create synergy between traditional knowledge and modern science in order to promote necessary innovations. This international effort promotes activities consistent with existing fundamental principles including the Ecosystem Approach. 3.3 Five Perspectives In following the above approach. but also various parties who also benefit from the relevant ecosystem services. Vision The vision of the Satoyama Initiative is to realize societies in harmony with nature. To tackle this critical issue.” while respecting traditional communal land tenure where necessary. Therefore. By managing and using biological resources sustainably and thus properly maintaining biodiversity. the Ministry of the Environment of Japan (MOEJ) and the United Nations University Institute for the Advanced Study of Sustainability (UNU-IAS: formerly the United Nations University Institute of Advanced Studies) jointly initiated the Satoyama Initiative. IPSI provides a platform for the Satoyama Initiative to promote activities to conserve and rebuild SEPLS with the ultimate goal of realizing societies in harmony with nature. .Multi-stakeholder participation and collaboration in sustainable and multi-functional management of natural resources and ecosystem services Contributions to sustainable socio-economies including poverty reduction. food security. sustainable livelihood and local community empowerment Using this approach.