BUSI NESS ETHI CS Busi nes s et hi cs i s not hi ng but t he appl i cat i on of et hi cs i n busi ness . Busi ness et hi cs i st he appl i cat i on ofgener alet hi cali deas t o busi ness behavi or .Et hi calbusi nessbehavi orf aci l i t at esandpr omot esgoodt osoci e t y , i mpr o v e spr o fit abi l i t y ,f os t e r sbus i ne s sr e l at i o nsand e m mp pl o y e e pr oduc t i v i t y . Theconceptofbusi nesse t hi cshascomet omean v ar i oust hi ngst ov ar i ous peopl e,butge ner al l yi t ‘ s comi mi ng t o know whati tr i ghtorwr wr ong i nt he wor kpl aceand doi ngwhat ‘ sr i ght-t hi si si nr egar dt oeffect sofpr oduct s/ s e r v i c e sandi nr e l at i o ns hi pswi wi t hs t ake ho l de r s . Busi nesse t hi csi sconcer nedwi t ht hebehavi orofabusi nessma man i ndoi nga busi ness.Une t hi calpr act i ces ar e cr eat i ng pr obl ems t o busi nessman and busi nessuni t s.Thel i f eand gr owt h ofa busi nessuni tdependsupon t he et hi cspr act i ce d by a busi ness man.Busi nes s et hi csar e dev el oped by t he passageoft i meandcust om m. .A cust om di ffer sf r om onebusi nesst oanot her . I fa cus t om i s adopt ed and acce pt ed by busi nes sman and publ i c,t hat cust om wi l lbecome mean et hi c.Busi nesset hi csi sappl i cabl et oever yt ypeof busi ness.Thesoci alr esponsi bi l i t yofa busi nessr equi r est heobser vi ngof busi nesse t hi cs.Abusi nessmanshoul dnoti gnor et hebusi nesse t hi cswhi l e assumi ng soci alr esponsi bi l i t y .Busi nesset hi csmeans t he behavi ourofa busi nessman whi l e conduct i ng a busi ness,by obser vi ng mo r al i t yi n hi s busi nessac t i vi t i es. Accor di ngt oWheel erBusi nessEt hi csi san ar tandsci encef ormai nt ai ni ng harmo moni ousr el at i onshi pwi t hsoci et y ,i t svari ousgroupsandi nst i t ut i onsas wel l as r eor gani z i ng t he mo r al r esponsi bi l i t y f or t he r i ght ness and wr ongnessofbusi nessconduct . Accor di ng t o Rogene.A.Buc hhol z ,― Busi ness e t hi cs r ef er st or i ghtor wr ongbehavi ouri nbusi nessdeci si ons― . Busi ness Et hi cs or Et hi cal s t andards ar et he pr i nci pl es,pr act i ces and phi l osophi es t hat gui de t he busi ness peopl ei nt he day t oday busi ness dec i si ons.I tr el at es t ot he behavi our ofa busi nes sm ma an i n a busi ness si t uat i on.Theyar econcernedpri mari l ywi wi t ht hei mpact sofdeci si onsoft he soci et ywi t hi n and out si det hebusi nessorg ani z at i onsorot hergr oupswho ke e pi nt e r e s ti nt hebus i ne s sac t i v i t i e s.Bus i ne s se t hi c sc anbes ai dt obe g i n wher et he l aw ends.Busi ness e t hi cs i s pr i mar i l y concer ned wi t ht hose i ssuesnotcov er ed by t hel aw,orwher et her ei sno defini t econse nsuson whe t hersome t hi ngi sr i ghtorwr ong
I MPORTANCEOF OFBUSI NESSETHI HI CS Ther emaybemanyr easonswhybusi nesse t hi csmi ghtber egar ded asan i ncr easi ngl yi mport antar ea ofst udy ,whet her as st udent si nt er es t ed i n
eval uat i ng busi ness act i vi t i es,or as manager s seeki ng t oi mpr ove t hei r de c i s i onmaki ngs ki l l s . I ti sgener al l yvi ewedt hatgoodbusi nesset hi cspr omot egoodbusi ness. 1Thepowerandi nfluenceofbusi nessi nsoci et yi sgre at ert han everbef ore . Busi nes se t hi cs hel ps us t o under s t and why t hi si s happeni ng,whati t s i mpl i cat i onsmi ghtbe,andhow wemi ghtaddr esst hi ssi t uat i on. 2Busi nesshast hepot ent i alt opr ovi deamaj orcont ri but i on t ooursoci et i es, i nt er ms ofpr oduci ng t he pr oduct s and ser vi cest hatwe want ,pr ovi di ng empl oy ment , pay i ng t axes, and ac t i ng as an engi ne f or economi c deve l opmentandt her ebyi ncr easest hegoodwi l l . 3 Busi nes s mal pr act i ce s hav et he pot ent i alt oi nfli ctenormous har m on i ndi vi dual s,oncommuni t i esandont hee nvi r onment .Thr oughhel pi ngust o under st andmor eaboutt hec ausesandconse quence soft hesemal pr act i ce s, busi nesse t hi cshel pst ocr eat emut ualt r us tandconfidencei nr el at i onshi p. 4 The demands bei ng pl ace d on busi nes st o be e t hi calby i t sv ar i ous st akehol der sar econs t ant l ybecomi ngmor ecompl exand mor echal l engi ng. Busi nes se t hi cs pr ovi des t he means t o appr ec i at e and under s t and t hes e c hal l enge s mor e cl ear l y ,i n or der t hat firms can mee tt hes ee t hi cal e xpe c t at i o nsmo r ee ffe c t i v e l y . 5.Busi nesset hi cscan hel pt oi mpr oveet hi caldeci si on maki ngbypr ovi di ng manage r s wi t ht he appr opri at e knowl edge and t ool st hat al l ow t hem t o corr ect l yi dent i f y ,di agnose,anal yse,and pr ovi de sol ut i ons t ot he et hi cal pr obl emsanddi l emmast heyar econf r ont edwi t h. 6Abusi nesscanpr osperont hebasi sofgoodet hi calst andardsandi thel ps t or e t ai nt hebus i ne s sf o rl o ngy ear s . 7Busi nesset hi cscan pr ovi deuswi t ht heabi l i t yt oassesst hebenefit sand pr obl emsassoci at edwi t hdi ffer entwaysofmanagi nget hi csi nor gani zat i ons. 8I nt heageofcompl exi t yi n busi nessfil eds,compet i t i on i si ncr easi ngday bydayGoode t hi cals t andar dhel pst hebusi nesst of acet hec hal l enges
CHARACTERI STI CSOFBUSI NESSETHI CS
Et hi c alv al ue s,t r ans l at e di nt oac t i v el anguag ee s t abl i s hi ngs t andar dsorr ul e s desc r i bi ng t he ki nd ofbehavi oran et hi c alper son shoul d and shoul d not engagei n,ar ee t hi c alpr i nc i pl es.Thef ol l o wi ngl i s tofpr i nc i pl esi nc or por at et he c har ac t e r i s t i c sand v al ue st hatmo s tpe opl eas so c i at ewi t he t hi c albe hav i o r . Et hi c alde c i s i o nmaki ngsys t e mat i c al l yc o ns i de r st he sepr i nc i pl e s.
Et hi c ale x e cut i v e sar eho ne s tandt r ut hf uli nal lt he i rde al i ng s 1.HONESTY. and
t hey do not del i be r at el y mi sl ead
or de cei v e ot her s by
mi s r e pr e s e nt at i o ns ,o v e r s t at e me nt s ,par t i alt r ut hs ,s e l e c t i v eo mi s s i o ns ,o r anyot hermeans.
2.I NTEGRI TY.Et hi cale xecut i vesdemonst r at e per sonali nt egri t y and t he cour age oft hei rconvi ct i ons by doi ng whatt heyt hi nk i sr i ghte ve n when t her ei sgr eatpr essur et odoot herwi se;t heyar epri nci pl ed,honorabl eand upr i g ht ;t he ywi l lfig htf o rt he i rbe l i e f s .The ywi l lno ts ac r i fic epr i nc i pl ef o r expedi ency ,behypocri t i cal ,orunscrupul ous. hi cal execut i ves are 3. PROMI SEKEEPI NG & TRUSTWORTHI NESS.Et wor t hy oft r us t .The y ar e candi d and f or t hcomi ng i n suppl yi ng r el ev ant i nf ormat i on and cor r ect i ngmi sappr ehensi onsoff act ,and t heymakeever y r easonabl e effort t of ul fil t he l et t er and spi r i t of t hei r pr omi ses and commi t ment s. The y do not i nt er pr e t agr eement si n an unr easonabl y t echni calor l egal i st i c manner i n or der t or at i onal i ze noncompl i ance or cr eat ej ust i ficat i onsf orescapi ngt hei rcommi t ment s. Et hi calexecut i vesar ewort hyoft rust ,demonst r at efidel i t yand 4.LOYALTY. l oyal t yt o per sonsand i nst i t ut i onsbyf ri endshi pi n adver si t y ,supportand dev ot i on t o dut y; t hey do not use or di sc l ose i nf or mat i on l ear ned i n confidence f or per sonal advant age.The y saf eg uar dt he abi l i t yt o make i ndependent pr of es si onal j udgment s by sc r upul ousl y av oi di ng undue i nfluencesand confli ct sofi nt er est .Theyar el oyalt ot hei rcompani esand col l eagues and i ft hey dec i de t o acceptot herempl oyment ,t hey pr ovi de r easonabl e not i ce, r espect t he pr opr i et ary i nf ormat i on of t hei rf ormer empl oyer ,and r ef uset oengagei n anyact i vi t i est hatt akeundueadvant age oft he i rpr e v i ouspos i t i ons .
5.FAI RNESS. Et hi calexecut i vesand f ai rand j usti n al ldeal i ngs;t heydo note xer ci se powerarbi t r ari l y ,and do notuse over r eachi ng nori ndecent means t o gai n or mai nt ai n any advant age nor t ake undue adv ant age of anot her ’ s mi st akesordi fficul t i es.Fai rper sons mani f es ta commi t mentt o j us t i ce,t heequalt r eat mentofi ndi vi dual s,t ol er ancef orand accept anceof di ver si t y ,t het heyar eopenmi nded;t heyar ewi l l i ngt oadmi tt heyar ewr ong and,wher eappr opri at e,changet hei rposi t i onsandbel i ef s.
hi calexecut i vesar ecari ng,compassi onat e, 6.CONCERN FOR OTHERS.Et benev ol entandki nd;t he yl i ket heGol denRul e, hel pt hosei nneed,andseek t o accompl i sh t hei rbusi nessobj ect i ve si n a mannert hatcausest hel east harm andt hegr eat estposi t i vegood.
7.RESPECT FOR OTHERS. Et hi calexecut i vesdemonst r at erespectf ort he human di gni t y ,aut onomy ,pri vacy ,r i ght s,and i nt er es t s ofal lt hose who haveast akei nt hei rdeci si ons;t heyar ecourt eousandt r eatal lpeopl ewi t h e qualr e s pe c tanddi g ni t yr e g ar dl e s sofs e x,r a c eornat i onalor i g i n.
8.LAW ABI DI NG. Et hi cale xecut i vesabi deby l aws,rul esand r egul at i ons r e l at i ngt ot he i rbus i ne ssac t i v i t i e s.
9.COMMI TMENT TO EXCELLENCE. Et hi calexecut i vespur sueexcel l ence i n per f ormi ngt hei rdut i es,arewel li nf ormed and pr epared,and const ant l y e nde av o urt oi nc r e as et he i rpr o fic i e nc yi nal lar e a sofr e s pons i bi l i t y .
10.LEADERSHI P.Et hi c ale x e cut i v e s ar ec ons c i o us o ft he r e s po ns i bi l i t i e s and opport uni t i es oft hei rposi t i on ofl eader shi p and seek t o be posi t i ve e t hi calr ol e model s by t hei r own conduct and by hel pi ng t o cr eat e an envi r onmenti n whi chpr i nci pl edr easoni ngandet hi caldeci si on maki ngar e hi g hl ypr i z e d.
11.REPUTATI ON AND MORALE.Et hi calexecut i ves seek t o pr ot ectand bui l dt he company’ s good r eput at i on and t he mor al e ofi t ’ s empl oy ees by engagi ng i n no conduct t hat mi ght under mi ne r espec t and by t aki ng what ev eract i onsar enecessar yt ocor r ectorpr e v enti nappr opr i at econduct ofo t he r s . Et hi calexec ut i vesacknowl edgeandacceptper sonal 12.ACCOUNTABI LI TY. account abi l i t yf or t he et hi calqual i t y oft hei r deci si ons and omi ssi ons t o t hemsel ves,t hei rcol l eagues,t hei rcompani es,andt hei rcommuni t i es.
PRI NCI PLESOFBUSI NESSETHI CS ThePr i nci pl esofbusi nesse t hi csdev el oped bywel lknown aut hor i t i esl i ke Cant t ,J.S. Mi l l ,Her ber tSpencer ,Pl at o,Thomas Garr et ,Woodr ad,Wi l son e t car easf ol l o ws
ednes sofmeansandends :Thefir 1.Sacr standmosti mport antpr i nci pl es ofbusi nes se t hi csemphasi z et hatt he means and t ec hni quesadopt ed t o se r v et hebusi nes sendsmus tbesacr edandpur e. I tmeanst hatagoodend c anno tbeat t ai ne dwi t hwr o ngme ans ,e v e ni fi ti sbe ne fic i alt ot hes oc i e t y . o do any evi l 2.Nott :I ti sunet hi calt o do a maj orevi lt o anot herort o onesel f,whet hert hi sevi li sameansoranend. nci pl e ofpr oport i onal i t y:Thi 3.Pri s pr i nci pl e suggest st hatone shoul d make pr operj udgmentbef or edoi nganyt hi ngso t hatot her sdo notsuffer f r om anyl ossorri skofevi l sbyt heconduct sofbusi ness. oper at i on i n evi l s:I 4.Non cotcl ear l ypoi nt soutt hatabusi nessshoul d wi t hanyonef ordoi nganye vi lact s. t hat oper at i on wi t h ot her s 5.Co Thi s pr i nci pl es s t at es t hatbusi ness shoul d hel pot her sonl yi nt hatcondi t i onwhenot herdeservesf orhel p i ci ty:Accor 6.Publ di ngt oW.Wi l son,anyt hi ngt hati sbei ngdoneort obe done,shoul d bebr oughtt ot heknowl edgeofev er yone.I fev er yoneknows, noneget sopport uni t yt odoanunet hi calact . val entpri ce:Accordi 7.Equi ngt oW.Wi l son ,t hepeopl ear eent i t l edt oget goodsequi val entt ot heval ueofmoneyt hathewi l lpay. ver salval ue:Accor 8.Uni di ng t ot hi s pr i nci pl et he conductofbusi ness . shoul dbedoneont hebasi sofuni ver salval ues 9.Human di gni t y:Aspert hi spr i nci pl e,man shoul d notbet r eat ed asa f act orofpr oduct i onandhumandi gni t yshoul dbemai nt ai ned. ol ence:I 10.Non vi fbusi nessman hur t st he i nt er est s and r i ght s oft he soci et y and expl oi t st he consumerby over l ooki ng t hei ri nt er est st hi si s e qui v al e ntt ov i o l e nc eandune t hi c alac t .
RELEVANCE OFVALUES I N MANAGEMENT I nt hegrowi ngageofcompl exi t i escorporat emustat t achgr eati mport ancet o cust omerval ues,sharehol derval ues,empl oyeeval ues,soci et alval uesand l eader shi p val ues.Accor di ngt o Dr . At hr eya― val uebased managementi sa good r eci pef orl ongt er m successofa corpor at e.Li vi ngon pri nci pl esand v al uesi samus tf orev er ycor por at emanager― Val ues and e t hi cs ar et he ke y el eme nt sf or t he success ofa busi ness. Or gani zat i on i sj usta composi t eofi ndi vi dual sand t hatt heval uesoft he o r g ani z a t i o n ar eonl ya de r i v at i v eand i nf e r e nc ef r o m t hec ol l e c t i v ev al ueof
i ndi vi dual s.Human val uesbasedon spi ri t ualr eal i t yconst i t ut et hebedr ock andf oundat i ont obui l dt hee t hi calandmor aledi ficeofmanagementont op. Manage ment mus t wor k co nt i nuousl yt o dev el op or gani z at i onal v al ues . Exce l l entor gani z at i onsmusthaveval uesandi ti st hedut yofmanagement t o shapeval uest hatar eserv i ceori ent ed and et hi cal .Val uesarepr evi ous r emi nder st hatt hei ndi vi dualobeyt o br i ng or derand meani ng i nt ot hei r per sonalval ues.Wi t houtval uest her ei snogui del i nef ordi r ect i on.Thekey i ngredi entofanycul t ur ei sval ues.Of t en mi sunder st ood,val uesar esi mpl y pr ef er ences and pr i ori t i es,whi ch r eflect what ‘ s mor ei mport ant .I n al l o r g ani z a t i o ns ,v al ue sar eatwo r ke v e r yda y . I fan o r g ani z a t i o nv al ue s pr o fit ,pr o duc t i v i t y and q ual i t yi twi l lpr e f e rt o oper at ei n a way t hatpr i ori t i ze s act i on and behavi or t hatre flect st hose v al ues.Anot heror gani z at i on t hatv al uesi nnov at i on,r esear c h and l ear ni ng wi l lpr ef er t o oper at ei n a way t hatpr i or i t i z es act i on and behavi or t hat r eflect st hose val ues. For ei t her or gani z at i on, i ft he val ues t hat are i nfluenci ng dai l y behavi orand act i ons arenotal i gned wi t ht he st r at egi es t hent hei rperf ormanceandr esul t swi l lsuffer .
ETHI CALMANAGEMENT To cr eat ean e t hi calor gani z at i on cer t ai ns t epsar et o bet aken.Et hi calor unet hi calbehavi orofi ndi vi dualempl oyee si si nfluenced i nt he wor kpl ace bot h by t hei r own mor al de v el opme nt and t he i nfluence t hat t he or gani z at i on cul t ur e ex er t s on t hem.They ar ei nfluenced by a gr oup of f or ces t hat sur r ound t hem such as t hei r pee r s,t hei r super vi sor s,and super i or s,t her ewar d sy st em,gr oup nor ms,companyval uesand pol i ci es andt hemanneroft hei ri mpl ement at i on.Et hi calbehavi orc an bedev el oped andmanagedi n anumberofways .Thepi vo t alr ol et omanageanddev el op e t hi cal behavi or among empl oy ees l i es wi t h t he human r esour ce management of t hat or gani z at i on. Human r esour ce management depar t ment can exe cut e t hi s t hr ough t r ai ni ng, co mmuni cat i on and di sci pl i ne.Thebi gorgani zat i onswhi ch ar eet hi cal l ycommi t t ed,assi gn t he pr i mar y t as k of managi ng and moni t or i ng e t hi cal behav i or t o HRM depar t ment .I n someot heror gani z at i ons,t her emaybeet hi csofficer swho ar eent rust ed wi t ht heresponsi bi l i t yt obri nget hi csandmanaged et hi csi n e v e r yende av o ro ft he i ro r g ani z a t i o n.
STRUCTUREOFETHI CSMANAGEMENT
Ever yonewhoi sent r ust edt omanageet hi csi nt hi sor gani zat i oni sboundt o pr epar e a sound e t hi calpro gr amme whi ch shoul di ncl ude t he f ol l owi ng component s: 1.Formalcodeofconduct 2.Et hi cscommi t t ee 3.Et hi calcommuni cat i on 4.AnEt hi cofficewi t hEt hi caloffice r s 5.Et hi csTr ai ni ngPr ogr amme 6.Adi sci pl i narysyst em 7.Est abl i shi nganombudsper son. 8.Moni t ori ng
1.Codeofconduct Seve r alor gani zat i onst hathaveunder t aken t oi mpl ementet hi calbehavi orat t hei rwor kpl aceshavest art edt hepr ocesswi t hdevel opi ngandi mpl ement i ng codes ofconductf ort hei rempl oy ees .Codesofconductar es t at ement sof or gani z at i onalv al ues .I tcompr i se s oft hr ee el ement s such as a code of et hi cs,a codeofconductand st at ementofval ues.a codeofconducti sa wr i t t en document ,i nspi r at i onali n cont ent s and speci fies cl ear l y whati s acce pt abl e orunacce pt abl e behavi oratwor kpl aceand beyond , when t he empl oyeesrepr esentt hei ror gani zat i onsout si de.I n gener alt hecodeshoul d r eflectt hemanagement sdesi r et oi ncorpor at et heval uesandpol i ci esoft he or gani zat i on.Thest at ementofval uesenvi sagesbyt hemanagementt oserv e t hepubl i candnormal l yaddr essest hes t akehol der sgr oups.
CodeofEt hi cs Ev er yt i mea ne w busi nes si sl aunc hedanywher ei nt hewor l d ,whe t hera oneman oper at i on oraf ul lbl ownbr i ck–and-mort arcor por at eent er pr i se, t he owner s mus t adopt a code of e t hi cs f or t he busi ness. For smal l busi nesses t he code i s usual l y unwr i t t en. And some t i mes not ev en di scussedanddeci dedupon,butst i l lacodeexi st s.Lar gerbusi nessesof t en havewr i t t encodesofet hi csandempl oyee saret wi nedi nt hem andr equi r ed t oadher et ot hecode.Acodeofet hi csi sabuzz wor dt oempl oyeest oobserv e et hi calnormsandf ormst hebasi sf orr ul esofconduct .I ti scompr ehensi ve enough t o cove rt heent i r eschemeofor gani zat i onalet hi csexpect ed t o be f ol l owed by ev er yone i nt he company .I t usual l y speci fies me t hods f or r e por t i ngv i ol at i ons ,di s c i pl i nar yac t i o nf orv i ol at i onsandas t r uc t ur eoft he duepr ocesst obef ol l owed.
Acodeofe t hi csi nbusi nessi sj us tasi mpor t antasasoundmar ke t i ngpl an, asol i dfinanci alst r at egy,andanorgani zedbusi nesspl an. A codeofe t hi csmus tsummar i z et hebel i ef sandv al uesoft heor gani z at i on. Thosebel i ef sand v al uesshoul d becomei nt er nal i z ed byal lempl oy eesand used r egul arl yi n al lbusi ness pr act i ces,no mat t ert he t ype ofbusi ness. Owner s ofbusi nesse st hatr out i nel y engage i n unet hi calpr act i cescannot hel pbutpasst hoseval uesandpri nci pl esal ongt ot heot herpeopl ewor ki ng i nt he busi nes s.Smal lbusi nes se s sufferev en mor e,because une t hi cal behavi or and ac t i ons ar e easi er f or cus t ome r st ot ake not i ce of .Once cust omer sbecomeawar et hatabusi nessdoesnothavehi gh et hi cali deal s, t he ywi l lt aket he i rbus i ne s se l s e whe r e . Codes ofe t hi cs var y among busi nes se s,and al so f r om one co unt r yt o anot her , .When busi nessgr owsl ar geenough t oexpand i t soper at i onsi nt o o t he rc ount r i e s ,I ti sc r i t i c alt o hi r et al e ntt o as s i s ti nt r ai ni ng e xi s t i ng per sonnelwi t hr egar dt ot he i nt egri t y ,under st andi ng,r esponsi bi l i t y ,and cul t ur al norms of t he count r y wher et he new oper at i on i sl ocat ed. Al l empl oye esmustbe t r eat ed equal l y ,and any i ss uesofi nequal i t y mustbe de al twi t hqui c kl y ,f ai r l y ,andi namanne rt hati ssat i s f ac t or yt oal l . Today ,mor et han ev erbef or e,consumer spay a gr eatdealofat t ent i on t o cor por at egover nanceand pr operbehavi orofbusi ness esand t hei rowner s. Bec auset hemar ket pl acei sflooded wi t h numer ousvar i at i onsoft hesame busi nesses,pr omi sesmus tbef ul fil l edandt hepr i ceandqual i t yofpr oduct s mustbe equalt o whati s adver t i sed,oranot herbusi nesswi l lst ep i nt o del i ve r . Ther ef or e a code of e t hi cs wher e unart i cul at ed or f or mal l y document ed–i svi t alt oensuri ngt hatabusi nesswi l lsucceed. A codeofe t hi cst hati sbot h definesandact edupon i spar toft hebusi ness cul t ur eofev er ysucce ssf ulbusi ness,andmustbecomet hemant r aofev er y busi nessowner .Gr owi nga flour i shi ngbusi nesst hr ough t heuseofsound et hi calpri nci pl eswi l lr eapnotonl yt hebenefit sofgrownandpr osperi t y ,but al s ot hes at i s f ac t i onofbe i ngabl et os l e e ps oundl yatni g ht . 2.Et hi cscommi t t ee Et hi cscommi t t eei sf ormedi n manyor gani zat i ons.Theyarewhol l ydev ot ed at wor k pl ace s.Thes e commi t t ee s can r i se concer ns of e t hi calnat ur e; pr epar e or updat e code of c onduct , and r es ol v ee t hi cal di l emma i n o r g ani z a t i o ns .t he yf o r mul at ee t hi c alpo l i c i e sandde v e l o pe t hi c als t andar ds . The commi t t ee ev al uat es t he compl i ance oft he or gani z at i on wi t ht hese et hi calnor ms.Themember s oft he et hi calcommi t t eeshoul d be se l ect ed f r om t hose per sons who hav e knowl edge i nt hei ri ndus t r y ,t hei rcode of e t hi cs and communi t y s t andar ds. The commi t t ee member s ar e al so consc i ous about t he co r por at e cul t ur e and e t hi cal co nci se of t he o r g ani z a t i o n.
Thef ol l owi ngcommi t t eesar et obef or me d: i .Es t abl i s hi ngane t hi c sc ommi t t e eatt hebo ar dl e v e l Thecommi t t eewoul d bec har ged t o ov er seedev el opme ntand oper at i on of t hee t hi csmanage mentpr ogr amme. i i .Est abl i shi nganEt hi csManagementcommi t t ee Et hi cs Managementcommi t t ee woul d be c har ge d wi t hi mpl ement i ng and admi ni s t r at i ngan et hi csmanagementpr ogr amme,i ncl udi ngadmi ni st r at i ng andt r ai ni ngaboutpol i ci esandpr ocedur es,andr esol vi nget hi caldi l emmas. Thecommi t t eeshoul dbecompr i sedofseni orofficer s. 3.Et hi calcommuni cat i onsyst em The nexts t ep i st he es t abl i shmentofan effect i v ee t hi calcommuni cat i on sy s t em.Et hi calcommuni cat i on sy s t em pl acean i mpor t antr ol ei n maki ng an e t hi cs pr ogr amme succe ssf ul .I t shoul d al l ow empl oy ees t o make enqui r i es , ge t advi ce i f nee ded or r epor t wr ong doi ng. Et hi cal co mmuni cat i on sy s t em i s a nec es si t yt o educat e empl oy ee s about t he or g a ni z at i onse t hi c als t andar dandpol i c i e s .I thast hef ol l o wi ngobj e c t i v e s i . t ocommuni cat et heorgani zat i ons‘val uesandst andardsofet hi calconduct orbusi nesst oempl oyees. i i . t o pr ovi de i nf ormat i on t ot he empl oyee s on t he company‘ s pol i ci es and pr ocedur er egar di nget hi calconductofbusi ness. i i i . t o hel p empl oyee st o ge t gui dance and r esol ve ques t i ons r egar di ng compl i ancewi t ht hefir msst andar dsofconduct sandval ues . i v . t o setup t he means ofenqui rysuch as t el ephone hot l i nes,sugges t i on boxesandemai lf aci l i t i esf orempl oyeest ocont actwi t h andge tadvi cef r om c ompe t e ntaut ho r i t i e s . Al ongwi t ht hesemeansofcommuni cat i ont her ear eot herways,t hatcanbe used t o communi cat e an or gani z at i on‘ s mor alst andar ds t oi t s empl oy ees . Top manageme nt can communi cat et he e t hi cals t andar ds t ol ower l ev el manager sandt heyc an communi cat ei tt ooper at i onall ev el s.Somet i mest he org ani zat i on publ i shesnewsl et t er s.I tcan beusedt oexposecompany‘ scode oret hi cs.I fan or gani z at i on has br i efing and managementmee t i ng,t hes e can beuse d asa meansofco mmuni cat i ngval ues .Cer t ai n co mpani esuse at t r act i ve mul t icol ored post er st o publ i ci zet hei rcodes and et hi cs,t hese pos t e r sa r epl ac e di nmos tv i s i bl epl ac e soft heor g ani z a t i o n pr e mi s e s . 4.Et hi csoffi ceandoffi cer s Et hi csoffice sar et o be es t abl i shed t o communi cat eand i mpl emente t hi cs pol i ci es among empl oyee s oft he or gani z at i on.Fort hi s pur pose an et hi cs officeri st obeappoi nt ed.Theet hi csofficershoul ddev el op ar eput at i on f or c r e di bi l i t y ,i nt e gr i t y ,ho ne s t y and r e s po ns i bi l i t yt hr o ug he s t abl i s hme ntof suchet hi csmoni t ori ngbodi es. Funct i onsoft heet hi csoffi cer s
1.Et hi csofficer sar er esponsi bl ef orassessi ngt heneedsand r i skst hatan or gani zat i onwi dee t hi csprogr ammemustaddr ess. 2.Todevel opanddi st ri but eacodeofconductore t hi cs 3.Toconductet hi calt r ai ni ngpr ogrammef orempl oyees 4.To es t abl i sh and mai nt ai n a confident i alser vi ce t o answerempl oy ees que s t i o nsabo ute t hi c ali s s ue s . 5.To ensur et hat t he or gani z at i on i si n compl i ance wi t h gov er nment al r e gul at i ons 6.Tomoni t orandaudi tet hi calconduct 7.Tot akeact i ononpossi bl evi ol at i onsoft hecompany‘ scode 8.Tor evi ew andupdat ecodei nt i me 5.Et hi csTr ai ni ngPr ogr amme Toensur eagoode t hi calbehavi ori nt heor gani z at i ont heempl oyeesar et obe gi vent r ai ni ng.Fort hi spurposeacorporat eet hi calt r ai ni ngpr ogr ammei st o be de vi sed.The mai n obj ect i v e ofan e t hi calt r ai ni ng pr ogr am i st o offer assi st ancet o empl oyeest ounder st and t heet hi cali ssuest hatar el i kel yt o ari sei nt hei rwor k pl ace.When new empl oye esar et o be r ecr ui t ed,t he i nduct i ont r ai ni ngshoul dbear r angedf ort hem. Thi st r ai ni ng wi l lhel pt of ami l i ar i z e wi t ht he company‘ se t hi calcode of behavi or .I mpor t anceofabi di ngcodeshoul d bedeal twi t h att hei nduct i on mee t i ng.A wel ldev el oped and pr opert r ai ni ng pr ogr amme wi l lhel pt he empl oye es t o under st and t he or gani z at i ons pol i ci es and expect at i ons, i mpor t antand r el ev antr ul es ,bye l aws and r egul at i ons whi ch ar et o be compl i ed i nt he or gani z at i on by t he empl oy ee s.For t he succ es s oft he t r ai ni ng pr ogr ammes,t he se ni orex ec ut i v ef r om ev er y depar t mentmus t i nv o l v ef ul l yi nt het r ai ni ngpr o gr amme . 6.Di sci pl i narysyst em Codeofconductore t hi calbehavi orcodesshoul dbepr oper l yenf orc edi nt he or g a ni z at i on t o ac hi e v et heo r g ani z at i on‘ sobj e c t i v e s .A di s c i pl i nar ys y s t e m s ho ul dbee s t abl i s he dt ode alwi t he t hi c alv i o l at i o nspr o mpt l yands e v e r e l y .I f une t hi c albe ha vi ori sno tpr ope r l yde al twi t h,i twi l lt hr e a t e nt heent i r esoc i al sys t em t hat suppor t st he et hi cal behavi or of t he or gani z at i on. Whi l e enf or ci ng di sci pl i nes t o ensur ee t hi cal conduct , compani es shoul d be consi st ent ., i . e. ,t hecompanyshoul dadoptaf ai rat t i t udet owar dseveryone wi t houtanydi scr i mi nat i onorbi as. 7.Es t abl i shi ngan ombudspers on The ombudsper son i sr esponsi bl et o hel p coor di nat e dev el opme ntoft he pol i ci es and pr ocedur es t oi nst i t ut i onal i zemoralval ues i nt he workpl ace. Thi sposi t i onusual l yi sdi r ect l yr esponsi bl ef orr esol vi nge t hi caldi l emmasby i nt e r pr e t i ngpo l i c i e sandpr o ce dur e s .
8.Moni t ori ng
To become an e t hi cal pr ogr amme f r ui t f ul and successf ul , an effect i v e moni t or i ng commi t t eei st o be f or med.I tc an be moni t or ed t hr ough keen observat i on by et hi cs officer s,i nt ernalaudi t s,surve ys,i nvest i gat i onsand support i ngsy st ems. Advant agesofManagi ngEt hi csi nWor kpl ace 1.Si gni ficanti mpr ovementt osoci et y Appl i cat i on ofbusi nesse t hi cshel pst oav oi d manyevi l sf r om t hesoci e t y .I t i ncl udeschi l dl abour ,unscr upul ouspr i cefixi ng,har assmentofempl oyee s, povert yandst arvat i onofempl oyeeset c. 2.Cul t i vat est r ongt eam wor kandpr oduct i vi t y Et hi calpr ogr ammehel pst ot uneempl oye ebehavi ori n accor dancewi t ht he v al uespr ef er r ed byl eader soft heor gani z at i on.I thel pst obui l d openness, i nt egri t yandasenseofonenessamongal l .Empl oyeesf eelst r ongal i gnment be t ween t hei rv al ues and t hose oft he or gani z at i on and t he yr eactwi t h st r ongmot i vat i onandper f ormance. 3.Suppor tEmpl oyeeGr owt h Et hi cspr ogr ammehel p empl oyee st of acer eal i t y ,bot h good andbad i nt he or gani z at i on and t hemsel ve s.They f ee lf ul lconfidence t o admi tand deal wi t hwhat ev ercome st hei rway . 4.I nsur ancepol i cy Et hi c alpr o gr amshe l pt oe ns ur et hatpo l i c i e sar el e g al .Et hi c alpr i nc i pl e sar e of t en appl i ed t o cur r ent ,maj or et hi cali ssues and become l egi sl at i on.A maj or i nt ent of wel l desi gned per sonnel pol i ci es i st o ensur e et hi cal t r eat mentofempl oyees. 5.Avoi dPenalact i on Et hi calpr ogr amshel pt odet ecti ssuesandvi ol at i onsear l ysot hatt heycan ber epor t edoraddr essedwhi c hhel pst oav oi dsubsequentpenalact i onsand l owerfines. 6. Hel ps i n Qual i t y Management , Str at egi c pl anni ng and di ver si t y management Et hi cal pr ogr amme i dent i f y f avor i t e val ues and ensur e or gani z at i onal behavi or swhi c har eassoci at edwi t ht hosev al ues.Thi scompl e xeffor tcanbe al i gned wi t h val ues,i ncl udi ngqual i t ymanagement ,st r at egi cpl anni ngand di v er si t ymanagement
ROLEOFORGANI ZATI ON CULTUREI N ETHI CS An or gani z at i on cul t ur ecan pot ent i al l yi nfluencet hee t hi calconductoft he or gani zat i on.Or gani zat i on cul t ur ehas been i dent i fied as oneoft he mai n f act orwhi ch i nfluenced t heet hi calconductatwor kpl aces.An or gani zat i on can gui det heconductofi t sempl oyee sby embeddi nget hi calval uesi ni t s domi nantcul t ur e.
Or gani z at i on cul t ur er ef er st oasys t em ofshar edmeani nghel dbymember s t hatdi st i ngui shest heorgani zat i on f orm ot heror gani zat i ons.I ti sa setof assumpt i ons,bel i ef s,val ues and nor ms t hatar e shar ed by or gani z at i on member s.I ti st he basi c pat t er n ofshar ed ass umpt i ons and val uest hat governsbehavi orwi t hi n apart i cul aror gani zat i on.I tcan becreat edbythe f ounderoft heor gani zat i on based on hi s orherv al uesand expect at i ons. Eg. JamshedgiTat ai n Tat aI ndus t r i es and Dhi r ubhai Ambanii n Rel i ance I ndust ri es.Each or gani zat i on t r i est odeve l op i t sown cul t ur ebased on t he v al uesofi t sf ounderwant st ot r ansmi ti nt hewor kpl ace. Or gani z at i on cul t ur er epr ese nt st hec ommon per ce pt i on shar edbymember s of an or gani z at i on. I ndi vi dual s wi t h di ffer ent backgr ounds i n an organi zat i on al t oget herhaveat endencyt odescri bet heorgani zat i on cul t ur e i n al mostsi mi l art er ms.The st r engt h ofan or gani zat i on cul t ur e has an i nfluence on et hi calbehavi or ofmanager s.I ft he cul t ur ei s st r ong and support s hi gh et hi cals t andar ds,i tshoul d have a ver y power f ulposi t i ve i nfluenceon amanager ‘ set hi calbehavi or ,I n aweak cul t ur emanager sar e morel i kel yt or el yonsubcul t ur alnormst ogui det hei rbehavi or . An effect i v e or gani z at i onalcul t ur e shoul d encour age e t hi calbehavi orand di scour ageunet hi calbehavi or .Thecor porat ecul t ur eofafir mi sevol vedby i t s peopl ei mbi bi ng val ues,good orbad whi ch i t st op exec ut i veshavean et hi caland soci alconsci ence,t han t heywi l l ,byt hei rt hought sand deeds, i nspi r et hei rsubordi nat est oexhi bi tt heseval ues,bot hi nsi deand out si de t he i rwo r kpl ac e .
HOLI STI C APPROACH FOR MANAGERSI N DECI SI ON MAKI NG Pr ofit maxi mi z at i on i st he gui di ng pr i nci pl ef or dec i si on maki ng i n an economi cs – based vi e w of manage ment . Exe cut i v es who f ol l ow t hi s
―r ‖ st a t i onal yl eofmanagementbel i evet hatobj ect i vesoft hebusi nesscan beac hi ev ed t hr ough pr eci seand cal cul at ed me ans.Thi sdomi nants t yl eof manage mentsome t i mesc oul d notpr oducet hedes i r edr es ul t sand i n suc h si t uat i on amoref orwar dt hi nki ngdeci si on maki ngst r at egycal l ed― hol i st i c
― appr oac h can be f ol l owed by manage ment . Hol i s t i c deci si on maki ng encour agesust obeawareofouract i onsand t hei ri mpacton t hewhol e;i t e ns ur e st hatwet aker e s po ns i bi l i t yandac c e ptac c ount abi l i t yf o rt he deci si onswemakeand empower sust o be partoft heongoi ngpr oc es sof change.I n or dert o pr ovi demanager swi t ht henece ss aryt ool st o manage moder n or gani z at i ons wi t h a vi ew t o bui l di ng l ongt er m sus t ai nabl e compet i t i veadvant age,i ti si mper at i vet hator gani zat i onsembr ace a mor e ho l i s t i cappr o ac ht opr o bl e ms ol v i ng .
A hol i s t i c appr oac ht akes i nt o accountany number ofdi ffer entf act or s. These manager s bel i e v e fir m v al ue i s der i v ed f r om ― soci al l y compl e x ‖,andt r esour cesandr el at i onshi ps heyar ebet t erunder st andt hei mpactof t he i rde c i s i o nson t heov e r al lc ul t ur eoft he i rc o mpany .Ho l i s t i cappr o ac ht o dec i si onmaki ngi sacompr ehensi vepl anni ngandmanage mentpr oce sst hat hel ps peopl et oi mpr ove t hei r qual i t y of l i f e and t hei r finances whi l e si mul t aneousl yr es t ori ngt heenvi r onmentonwhi chweal ldepend. I ti sapr ocesst hatal l owspeopl et omakedeci si ons,based on t hei rdeeper v al ues,whi c hwi l lbeeconomi cal l y ,soci al l yandenvi r onme nt al l ysound. Hol i s t i c Management addr es ses al lt he separ at e part s as an i nt egr at ed whol e, i ns t ead of as separ at e par t s. Hol i s t i c manageme nt i s a ne w f r amewor kf or dec i si on maki ng on al ll ev el st hat i s based on r es our ce managementoft hewhol e.Thi smet hod hel pst hedeci si on maker si dent i f y al lt he i mport antpeopl eand r esour cesr el at i ng t ot he i ssue athand and br i ngt heseel ement st oge t heri nt oane w ― Whol e epre sent ed byashort ‖,r ―st ‖.Wi at ementofpur pose t ht hi sbr oad hol i st i cgoali n pl ace,t hegroup has a benc h mar k by whi c ht he y can meas ur et hei rf ut ur e dec i si ons.A subsequentt es t i ng phase r eachesback t o of t en i gnor ed consi der at i ons t o makesur et hatnonearebei ngf or got t en. I n ho l i s t i cappr o ac h whi c hi sc har ac t e r i z e dbyat t e nt i o nt omul t i pl ef ac t o r s , i ncl udi ng r el at i onshi ps areseen as vi si onary .Hol i st i c managersar e mor e l i kel yt o have a posi t i ve i mpacton t hei r or gani z at i on by encour agi ng a gr eat erse nseofempl oye e opt i mi sm and i mpr ovi ng ove r al lper f or manceof t hefir m.I tmaysee m t hathol i st i cdeci si on maki ngmaycr eat ebet t erl ong t er mr esul t sf oracompanyt han t hemor et r adi t i onalr at i onalappr oach.The hol i st i cmanager sareseenasmorevi si onaryandl essaut ocrat i c.
