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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 organizations 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 dont 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
dont 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-

2) CULTURAL DIMENSIONS
GLOBE PROJECT-

Research on the relationship between culture and leadership resulted in the GLOBE
research program. GLOBE study is a major study with broad applicability.

GLOBE Project Global Leadership and Organizational Behaviour Effectiveness- 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, 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.

Model underscores complexity of leadership process and how culture influences it.

Nine cultural dimensions-

Assertiveness- tough confrontational and competitive


Future Orientation
Performance Orientation
Human Orientation

Gender differentiation
In group collectivism- pride, loyalty and cohesiveness in organizations and families
Collectivism- collective distribution of resources and collective action
Power Distance
Uncertainty avoidance
Description-

AssertivenessDegree

to which people in a culture are determined, assertive,

confrontational, and aggressive in their social relationships

Future orientationDegree to which individuals in a culture engage in planning, investing,


and delaying gratification.

Performance orientationDegree to which organization or society rewards group members


for improved performance and excellence

Humane orientationdegree to which a culture encourages and rewards people for being
fair, altruistic, generous, caring, and kind to others.

Gender

differentiation /egalitarianismDegree to which organization or society

minimizes gender role differences & promotes gender equality

In-group collectivismThe degree to which people express pride, loyalty, and cohesiveness
in their organizations and families.

Institutional collectivismThe degree to which an organization or society encourages


collective action, collective distribution of resources and collective action.

Power distanceThe degree to which power is stratified or degree to which members of a


group expect and agree that power should be shared unequally

Uncertainty avoidanceExtent to which a society, organization, or group relies on


established social norms, rituals, and procedures to avoid uncertainty. The use of rules,
structures, and laws to make things more predictable.

APPLICATIONS

Help understand own cultural biases & preferences


Help understand what it means to be a good leader.
Help communication across cultural and geographic boundaries.
Model provides information on what is universally accepted as good and bad
leadership.

Hofstedes Cultural Dimensions Power Distance:

Inequality is fundamentally good

Everyone has a place, some high some low

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, Canada, Australia, Denmark and Sweden)

People are responsible for themselves

Individual achievement is ideal

No emotional dependence on organizations and groups

Collectivism in India, Pakistan, 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

TROMPENAARS FRAMEWORK-

Trompenaars' model of national culture differences is a framework for cross cultural


communication applied to general business and management, developed by Fons
Trompenaars and Charles Hampden-Turner.
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. Sequential vs Synchronic

Relationship with the Environment


7. Internal vs External Control

Explanation
1. Universalism Versus Particularism

(Rules Versus Relationships)

Universalism: People place a high importance on laws, rules, values, and obligations. They try
to deal fairly with people based on these rules, but rules come before relationships.
Followed in U.S., Canada, the U.K, the Netherlands, Germany,

Particularism : People believe that each circumstance, and each relationship, dictates the rules
that they live by. Their response to a situation may change, based on what's happening in
the moment, and who's involved.
Followed in Russia, Latin-America, and China.

2.

Individualism

Versus

Collectivism

(The Individual Versus The Group)

Individualism :People believe in personal freedom and achievement. They believe that you
make your own decisions, and that you must take care of yourself.
Followed in U.S., Canada, the U.K, Scandinavia, New Zealand, Australia, and Switzerland

collectivism : People believe that the group is more important than the individual. The
group provides help and safety, in exchange for loyalty. The group always comes before the
individual.
followed in countries in Latin-America, Africa, and Japan

Contd
3.

Specific
(How Far People Get Involved

Versus

Diffuse

Specific: People keep work and personal lives separate. As a result, they believe that
relationships don't have much of an impact on work objectives, and, although good
relationships are important, they believe that people can work together without having a
good relationship.
Followed in U.S., the U.K., Germany

Diffuse : People see an overlap between their work and personal life. They believe that
good relationships are vital to meeting business objectives, and that their relationships with
others will be the same, whether they are at work or meeting socially. People spend time
outside work hours with colleagues and clients.
Followed in Russia, India, and China

4.

Neutral

Versus

Emotional

(How People Express Emotions)

Neutral: People make a great effort to control their emotions. Reason influences their
actions far more than their feelings. People don't reveal what they're thinking or how
they're feeling.
Followed in U.K., Sweden, the Netherlands, Finland, and Germany

Emotional : People want to find ways to express their emotions, even spontaneously, at
work. In these cultures, it's welcome and accepted to show emotion.
followed in France, Spain, and countries in Latin-America.
Contd
5.

Achievement

Versus

Ascription

(How People View Status)

Achievement : People believe that you are what you do, and they base your worth
accordingly. These cultures value performance, no matter who you are.
followed in U.S., Canada, Australia

Ascription : People believe that you should be valued for who you are. Power, title, and
position matter in these cultures, and these roles define behavior.
Followed in France, Italy, Japan, and Saudi Arabia

6.

Sequential
(How People Manage Time)

Time

Versus

Synchronous

Time

Sequential Time : People like events to happen in order. They place a high value on
punctuality, planning (and sticking to your plans), and staying on schedule. In this culture,
"time is money," and people don't appreciate it when their schedule is thrown off.
followed in Germany, the U.K., and the U.S.

Synchronous Time : People see the past, present, and future as interwoven periods. They
often work on several projects at once, and view plans and commitments as flexible.
followed in Japan, Argentina, and Mexico
Contd
7.

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. This
includes how they work with teams and within organizations.
followed in Israel, the U.S., Australia, New Zealand, and the U.K.

External
Control
People believe that nature, or their environment, controls them; they must work with their
environment to achieve goals. At work or in relationships, they focus their actions on
others, and they avoid conflict where possible. People often need reassurance that they're
doing a good job.
followed in China, Russia, and Saudi Arabia

3) INTERNATIONAL CODES OF CONDUCT: CAUX ROUND TABLE & ARCTURUS

CAUX Round Table Principles for Business Conduct

Founded in 1986 by Frederick Phillips, former President of Phillips Electronics and Oliver
Giscard dEstaing, former Vice-Chairman of INSEAD business school in Paris.

The CRT advocates implementation of the CRT Principles for Business.

The principles apply fundamental ethical norms to business decision making.

World standard expressed for measuring business behavior.

Drawn form Minnesota Principles developed by Minnesota Centre for Corporate


Responsibility, included views of US, Japan and European countries.
The first international ethics code for business

Developed in 1994 by Japanese, European and North American business leaders meeting in
Caux, Switzerland
Aimed to set a global benchmark against which individual firms could write their own
codes and measure the behavior of their executives.
The Caux Principles are grounded in two basic ethical ideals: kyosei and human dignity.

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.

Human dignity relates to the sacredness or value of each person as an end, not simply as
the means to the fulfillment of others purposes or even majority prescription.
The Caux Principles aim to operationalize the twin values of living and working together
and human dignity by promoting free trade, environmental and cultural integrity and the
prevention of bribery and corruption.
Caux Round Table Principles for Stakeholder Constituencies under the following topics:

Customers.

Employees.

Owners investors.

Suppliers.

Competitors

Communities.

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

Beyond the chapter of law and towards a spirit of trust.

Respect for rules

Support multinational trade (GATT/World Trade Organization)

Respect for environment

Avoidance of illicit operations e.g.. bribery, money laundering, support for terrorists.,
gun running, drug trafficking

CAUX

Round

Table

General

Principles:

Towards

Shareholders

Provide highest quality of product services etc. at a reasonable price.

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.

Respect the integrity and culture of customers

CAUX

Round

Table

General

Principles:

Work conditions to be fair and improved consistently.

Health and dignity of worker to be borne in mind.

Open in dealings, 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.

Towards

Towards

Employees

Investors

Disclose relevant information except classified

Conserve, protect and increase owners assets

Respect their complaints for solutions.

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

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, 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, CEOs and Senior Managers

Arcturus evaluates a firms conduct against the aspirations of the CRT Principles for
Business

Arcturus identifies current and emerging issues in order to launch targeted improvement
initiatives.

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, senior executives and/or employees. It
enables companies to identify and prioritize environmental, social and governance risks
and opportunities to enhance long-term business profitability and value.

Arcturus comprises 49 questions structured to assess performance and risks for key
stakeholders - customers, employees, shareholders, suppliers, competitors, and community
- and against the Caux Round Table Principles for Business, first published by the Caux
Round Table in 1994.

An inventory process asking questions of board members, executives, management team,


employees, etc., of a company to assess and diagnose various risks and opportunities.

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.

Risks and opportunities are diagnosed from the perspective of the CRT seven general
principles and the stakeholders groups.

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.

The diagnosis will allow management to consider issues the company is confronted with
from the different perspectives of all stakeholders.

Measured outcomes create new goals for corporate improvement.

Eg- Nissan Motor Co. 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.

Arcturus:

five

step

process

Step I-Pre Research & Customization: Company research by Arcturus team to


understand company history and values(Annual report, Sustainability report , Pre
interviews)

Step II-Data Collection: Executives & employees answer 49 questions.

Step III-Investigation & Analysis: Responses to the 49 questions and the interview
content to be examined and analyzed.(Evaluation /Assessment)

Step IV-Extraction of Issues: Identifying issues-strengths & weaknesses of the company

Step V-Reporting

Data

collection

Completing

the

Arcturus

inventory

worksheet

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, policies and concerns
which is called language data.

Each respondent scores the company in each of the 49 areas of investigation.

Each respondent adds qualitative comments on key areas of concern.

The CRT staff and project team facilitate the inquiry process.

4) Environment Protection-

Environmental protection is a practice of protecting the environment, on individual,


organizational or governmental levels, for the benefit of the natural environment and (or)
humans.

Protection of the environment is needed due to various human activities.

Environment Laws- Human pollution may harm the environment and the focus of
pollution laws is to limit or prevent humans damaging the environment.

Environmental Pollution-

It is a popular issue after World War II. It can be said that pollution is the result of our social
development through the means of science. Pollution is the product of our scientific
achievements being applied for the improvement of human facilities.
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.

Types of Pollution-

Air Pollution : It is caused by the release of chemicals and particulate matter into the
atmosphere. Gaseous pollutants include carbon monoxide, sulphur dioxide, CFCs, nitrogen
oxides,etc. Gaseous pollutants are usually produced by industry and motor vehicles.

Noise Pollution : includes roadway noise, aircraft noise, industrial noise and high
intensity sonar.

Soil Pollution : occurs due to release of chemicals by spill or underground leakage.

Water Pollution : is caused due to discharge of waste water from industrial and
commercial waste into surface waters; untreated discharge of domestic sewage, chemicals into
flowing surface waters and disposal of waste and leaching into ground water; eutrophication.

Thermal Pollution : is the change of temperature in the natural water bodies caused by
human influence.

Causes of Pollution-

Air pollution can be caused by both human and anthropogenic sources.

Emissions from motor vehicles are one of the leading causes of air pollution.

Pollution sources that are stationary include chemical plants, coal-fueled power plants,
petrochemical plants, oil refineries, nuclear waste disposal, large live stock farms,
incinerators, factories producing PVC, metals, plastics and other heavy industry.
Pollution from agriculture comes from clear felling, burning and spraying of pesticides and
herbicides. Humans are the primary cause of global warming since 1950s.
Soil contaminants include chlorinated hydrocarbons, heavy metals, solid hospital wastes,
lead, fuel. Ordinary landfills are the source of chemical substances entering the soil
environment.
Water pollution can be caused by discharge of toxic pollutants like pesticides, heavy metals
and non-degradable chemical compounds into fresh or ocean waters.
The sources of these can be industries, chemical, heavy metal, hospital wastes. They also
can be untreated or partially treated sewage water.

Some Environmental Protection Laws

Air (Prevention and Control of Pollution) Act, 1981[2]

Biological Diversity Act, 2002

Environment (Protection) Act, 1986

Forest Conservation Act, 1980

Indian Forest Act, 1927

National Green Tribunal Act, 2010

Protection of Plant Varieties and Farmers' Rights Act of 2001

Public Liability Insurance Act, 1991

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights)
Act, 2006

Water (Prevention and Control of Pollution), 1974

Wild Life (Protection) Amendment Act, 2002

Wildlife Protection Act of 1972

Noise Pollution Act

Hazardous waste Handling and management act, 1989

National Green Tribunal Act, 2010

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, which assures the citizens of India the right to a healthy environment.

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

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.

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.

To protect the forests and wildlife in the country.

Air (Prevention and Control of Pollution) Act, 1981

An Act to provide for the prevention, control and abatement of air pollution, for the
establishment, with a view to carrying out the aforesaid purposes, of Boards, for conferring
on and assigning to such Boards powers and functions relating thereto and for matters
connected therewith.

WHEREAS decisions were taken at the United Nations Conference on the Hum an
Environment held in Stockholm in June, 1972, in which India participated, to take
appropriate steps for the preservation of the natural resources of the earth which, among
other things, include the preservation of the quality of air and control of air pollution;

It extends to the whole of India.

the prevention and control of air pollution at its source is the primary responsibility of
State and local governments.

Objectives

Protect and enhance the quality of air resources.

Protect public health and welfare while fostering a beneficial productive capacity.

Prevention, control and abatement of air pollution .

Gives power to board for ensuring that there are proper systems for prevention of air
pollution.

Amendments created features to let industries make choices on the best way to reach
pollution cleanup goals.

Wildlife

Protection

Act,

1972

The Wildlife Protection Act, 1972 is an Act of the Parliament of India enacted for
protection of plants and animal species. Before 1972, India only had five
designated national parks. Among other reforms, the Act established schedules of protected
plant and animal species; hunting or harvesting these species was largely outlawed.

The Act provides for the protection of wild animals, birds and plants; and for matters
connected therewith or ancillary . It extends to the whole of India, except the State
of Jammu and Kashmir which has its own wildlife act

The 2002 Amendment Act which came into force in January, 2003 have made punishment
and penalty for offences under the Act more stringent.

Indian Forest Act, 1927

The Indian Forest Act, 1927 was largely based on previous Indian Forest Acts
implemented under the British. The most famous one was the Indian Forest Act of 1878.
Both the 1878 act and the 1927 one sought to consolidate and reserve the areas having
forest cover, or significant wildlife, to regulate movement and transit of forest produce, and
duty leviable on timber and other forest produce. It also defines the procedure to be
followed for declaring an area to be a Reserved Forest, a Protected Forest or aVillage
Forest. It defines what is a forest offence, what are the acts prohibited inside a Reserved
Forest, and penalties leviable on violation of the provisions of the Act.

THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT, 1974

An Act to provide for the prevention and control of water pollution and the maintaining or
restoring of wholesomeness of water, for the establishment, with a view to carrying out the
purposes aforesaid, of Boards for the prevention and control of water pollution.

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.

Takes

Step

To

Check

Deforestation

The Jharkhand forest department has taken up a move to check deforestation by providing
Liquefied Petroleum Gas (LPG) connection in the villages with subsidy.

The villagers of these forests used to collect wood from the reserve forest areas for cooking
purposes.

The state government initiated the scheme in the villages of the wildlife inhabited areas to
check illegal felling of trees in the forest.

According to a source of the state forest department, the forest wealth especially saal
trees reduced 50 per cent within last 10 years due to illegal felling.

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.

2007 Forest survey data

Madhya Pradesh: 7.64 million hectares

Arunachal Pradesh: 6.8 million hectares

Chhattisgarh: 5.6 million hectares

Odisha: 4.83 million hectares

Maharashtra: 4.68 million hectares

2013 Forest survey data

Madhya Pradesh: 7.75 million hectares

Arunachal Pradesh: 6.73 million hectares

Chhattisgarh: 5.6 million hectares

Maharashtra: 5.06 million hectares

Odisha: 5.03 million hectares

Indias five states with largest area under forest cover

5) Ethics Committee,Ethics Officers and Ethics Managers.


Business Ethics Management

It is the direct attempt to manage ethical issues and problems through special policies,
practices and programs.

Components

Mission or value statement

Code of ethics

Reporting and/or advice channels

Risk analysis and management

Ethics managers, officers, committees

Ethics consultant

Ethics education and training

Stakeholders dialogue, partnership & consultation

Auditing, accounting and reporting

Hierarchy :

Ethics Committees

1.Chaired by an external advisor and includes key management from headquarters and group
operations.

2.Take the position that the committee is the responsible authority for ethics compliance in its
area of jurisdiction.

3.Be the final voice concerning interpretations regarding the organization's ethics and
compliance standards and procedures.

4.Make recommendations on improving the existing compliance mechanisms.


5.Oversee the use of due care in delegating discretionary responsibility.
Possible Roles for An Ethics Committee
1. Contribute to the continuing definition of the organization's ethics and compliance
standards and procedures.
2. Assume responsibility for overall compliance with those standards and procedures.
3. Oversee the use of due care in delegating discretionary responsibility.
4. Communicate the organization's ethics and compliance standards and procedures,
ensuring the effectiveness of that communication.
5. Monitor and audit compliance.
6. Oversee enforcement, including the assurance that discipline is uniformly applied.
7. Take the steps necessary to ensure that the organization learns from its experiences.

Ethics Officers

Ethics officers should, as a minimum, be appointed as senior managers, but preferably as an


executive, of the organisation in which they serve.

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.

He/she also needs to be seen as a type of symbolic leader and somebody who is respected as
the ethical benchmark.

Being an executive of an organisation and having a seat on the executive committee, assists
in setting and integrating the ethical tone and strategy of the business from the top down.

He lends credibility to the function, as well as allows the ethics officer to effectively
discharge his/her responsibilities.

Ethics Officers
The ethics officer needs to:

establish an ethics function within the workplace;


design and implement a communication strategy for ethics;
conduct ethics training for all employees including senior and executive management;
integrate ethical behaviour and decision making criteria in the organisations reward system;
market ethics throughout the organisation in newsletters, corporate magazines and brochures,
screen savers on desktops and by way of posters in canteens and other common spaces; and

monitor and report on ethics performance by the company, to the board and/or ethics (social
and ethics) committee, plus stakeholders.
Ethics Manager

Managers hold positions of authority that make them accountable for the ethical conduct of
those who report to them.

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.

Managers also monitor the behaviour of employees in accordance with the organization's
expectations of appropriate behaviour.

They have a duty to respond quickly and appropriately to minimize the impact of suspected
ethical violations.

Managers make themselves available as a resource to counsel and assist employees who face
ethical dilemmas or who suspect an ethical breach.
6) CODE OF ETHICS
What is a Codes of Ethics

Codes of ethics are voluntary statements that commit organizations, industries, or


professions to specific beliefs, values, and actions and/or that set out appropriate ethical
behavior for employees.

A Code of conduct is a set of rules outlining the responsibilities of or proper practices for
an individual, party or organization.

Principles, values, standards, or rules of behavior that guide the decisions, procedures and
systems of an organization in a way that

contributes to the welfare of its key stakeholders, and

respects the rights of all constituents affected by its operations.

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. It is about holding oneself to the highest standards of ethical
business behaviour;

Typically Codes talk about expectations to:


obey the law,
conflicts of interest,
insider trading,
preserving confidential information,
bribery,
corporate opportunities,
competition and fair dealing among other things

Types of Ethical Codes

Organizational or corporate codes of ethics - These are specific to a single organization .


Sometimes they are called codes of conduct or codes of principle, but basically these codes
seek to identify and encourage ethical behaviour at the level of the individual organization.

Professional codes of ethics - Professional groups also often have their own guidelines for
appropriate conduct for their members. Whilst most traditional professions such as medicine,
law and accountancy have long standing codes of conduct, it is now also increasingly
common for other professions such as marketing, purchasing or engineering to have their
own codes.

3. Industry codes of ethics As well as specific professions, particular industries also


sometimes have their own codes of ethics .

For example, in many countries the financial services industry will have a code of conduct
for companies and/or employees operating in the industry.

Similarly, at the international level, 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, and that manufacturing processes are
environmentally responsible.

The code of conduct was developed by a number of companies engaged in the manufacture
of electronics products, including Dell, Hewlett Packard and IBM.

It has since been adopted by a range of multinationals such as Apple, Cisco, Intel, Logitech,
Microsoft,

Samsung

and

Sony.

4. Programme or group codes of ethics Finally, certain programmes, coalitions, or other


sub- grouping of organizations also establish codes of ethics for those participating in
specific programmes.

For example, a collaboration of various business leaders from Europe, the US, and Japan
resulted in the development of a global code of ethics for a business called the CAUX
Roundtable principle of Business.

For instance, companies wishing to use the Fairtrade Mark must meet international Fairtrade
standards which are set by the FLO, the international certification body, Fairtrade Labelling
Organizations International.

Code of Ethics focuses on four main issues :

Prevalence of corporate codes of ethics.


Content of codes of ethics.
Effectiveness of codes of ethics.
Possibilities for global codes of ethics.
General Observations for being ineffectiveness of Code of Conduct

Majority of employees are ignorant of the code of conduct;


Lack of adequate and regular education of employees about code of conduct affected its
practice;

Senior managers never practice what the code of conduct says;


Code of conduct is just on paper not being practiced;
Code of conduct has brought about very little or no change into the behaviour of public
servants;

Too many inconsistencies and impartiality in administering code of conduct have made it
unsuccessful;

Copies of the codes are not made available to staff;


The language of the code of conduct is too difficult to comprehend;
Code of conduct is obsolete;
The administrative culture does not encourage good behaviour
Companies and their Code Of Ethics:

Amazons Code of Conduct or Ethics


In performing their job duties, Amazon.com employees should always act lawfully, ethically,
and in the best interests of Amazon.com

Unilevers Code of Conduct or Ethics


We conduct our operations with honesty, integrity and openness and with respect for the
human rights and interests of our employees. We shall similarly respect the legitimate
interests of those with whom we have relationships.

LinkedIns Code of Conduct or Ethics


To help reinforce the importance of LinkedIn's culture and values, weve re-designed our
Code of Conduct to bring the way we do business into even sharper focus.
Our Code is the playbook for not only complying with the law, but for setting a higher bar for
ourselves and helping us to manage through the inevitable grey areas that arise in the
workplace.

Googles Code of Conduct or Ethics


Dont be evil. Googlers generally apply these words to how they serve their users. But
Dont be evil is much more than that. Its about providing their users unbiased access to
information, focusing on the needs and giving them the best products and services that they
can. But its also about doing the right thing more generally following the law, acting
honorably and treating each other with respect.
The Google Code of Conduct is one of the ways we put Dont be evil into practice. Its
built around the recognition that everything we do in connection with our work at Google
will be, and should be, measured against the highest possible standards of ethical business
conduct. We set the bar that high for practical as well as aspirational reasons: Our
commitment to the highest standards helps us hire great people, build great products, and
attract loyal users. Trust and mutual respect among employees and users are the foundation
of our success, and they are something we need to earn every day.
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, dont be silent. We want and need to
hear from you.

7) MISSION AND VISION

VISION

Vision is the ultimate aim which an organization wants to achieve.

It is what an organization wants to be.

It is the dream or mental picture towards which the organization is moving.

For e.g., NGO working for the poor might have vision of A world without poverty.

MISSION

Mission is the path through which the organization will achieve its goal.

It is what an organization is.

It is how the organization exit the current position and work to achieve the goal.

For e.g., same NGO have mission of providing food and jobs for the homeless and
unemployed or poor.

MISSION AND VISION CAN LEAD A COMPANY IN BECOMING ETHICAL

Many companies build ethical values and goals into their mission or vision statements. This
helps senior managers and employees understand that values and ethical standards are
integral to all company operation and planning, and not simply an "add-on to be considered
after important decisions have been made.

Vision helps in setting a benchmark for ethics and mission helps in achieving that.

They create the common understanding of what the organization means and expects when it
requires employees, leaders and board to do the right thing.

For instance, Starbucks, its mission and vision statement describes 6 guiding principles that
helps this organization in being ethical.

Provide a great work environment and treat each other with respect and dignity.

Embrace diversity as an essential components in the way we do business.

Apply the highest standards of excellence to the purchasing, roasting and fresh delivery

of our coffee.

Develop enthusiastically satisfied customers all of the time.

Contribute positively to our communities and our environment.

Recognize that profitability is essential to our future success.

Toyota, its mission and value describes principle which helps in being ethical.

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.

Respect the culture and customs of every nation and contribute to economic and social

development through corporate activities in the communities.

Pursue growth in harmony with the global community through innovative management.

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.

Ethics are standards of right and wrong, good and bad. Ethics are concerned with what
one ought to do to fulfill ones moral duty. There are two aspects to ethics:

Being able to determine what is right or wrong, good or bad ,& ,


Commitment for doing what is right and good.
Culture and Ethics

Cooperation is easier and conflicts are limited when people share convictions. We
therefore need to look for ethical principles that are shared worldwide.

Standards and values are an integral part of any culture; hence, culture is the bedrock
supporting every development.

Culture can obstruct progress, but it can nevertheless be a tool for emancipation.

Culture is also a goal in itself: it gives meaning to our existence.

The same holds true for equal rights, responsibility for future generations, freedom of
speech, and democracy: they stimulate progress, but are also the objective of
development.

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-

Code of Cultural Ethics

There should be a process of actively developing and practicing appropriate, relevant,


and sensitive strategies and skills in interacting with culturally different persons.

There should be a set of congruent behaviors, attitudes, and policies that come together
in a system, agency, or among professionals and enables that system, agency, or those
professionals to work effectively in cross-cultural situations.

There should be an integration and transformation of knowledge about individuals and


groups of people into specific standards, policies, practices, and attitudes used in
appropriate cultural settings to increase the quality of services, thereby producing better
outcomes.

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.
In many parts of the world, 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, forestry and fisheries. Based on knowledge and practices locally accumulated in such
human-nature interactions over a long time, production activities and their management
mechanisms have created elaborate systems that have continued to support local communities by
providing foods, fuels, and other materials, nurturing traditions and culture, and maintaining
ecosystems and biodiversity. However, they have been increasingly threatened by rapid socio-

economic changes in recent years. Many have been converted into more uniform, efficient and
large-scale production systems that often cause environmental degradation and loss of cultures
and traditions. Therefore, it is important to explore ways and means for using and managing
natural resources sustainably that benefit current and future generations.
To tackle this critical issue, 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. This international effort promotes activities consistent with existing fundamental
principles including the Ecosystem Approach. 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.
Vision
The vision of the Satoyama Initiative is to realize societies in harmony with nature, comprising
human communities where the maintenance and development of socio-economic activities
including agriculture and forestry align with natural processes. By managing and using
biological resources sustainably and thus properly maintaining biodiversity, humans will be able
to enjoy a stable supply of various natural assets well into the future.
3.2 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,

and

Integrating traditional ecological knowledge and modern science to promote innovations,

Exploring new forms of co-management systems or evolving frameworks of commons


while respecting traditional communal land tenure.
Understanding diverse ecosystem services and values that give rise to human well-being is an
indispensable aspect of this approach, as is the consolidation of wisdom on securing these
services. It is also critical to create synergy between traditional knowledge and modern science in
order to promote necessary innovations. Exploring new forms of co-management systems or
evolving frameworks of commons, while respecting traditional communal land tenure where
necessary, is vital to the process. This includes not only landowners and local residents, but also
various parties who also benefit from the relevant ecosystem services. This new social
mechanism would support and promote the maintenance and rebuilding of SEPLS.
3.3 Five Perspectives
In following the above approach, the maintenance and rebuilding of SEPLS in various localities
in other words, 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

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, 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.

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