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RELATION BETWEEN ETHICS AND
CORPORATE EXCELLENCE
Virendra Kharbale 26Sudhir Tardekar 19Darpan Gawade 24
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WHAT IS ETHICS/BUSINESS ETHICS
Derived from Latin word ethicusmeaningcharacter
Business ethics refers to application of
ethical judgement to business activities
A business that makes nothing but money is
a poor business- Henry Ford
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WHAT IS CORPORATE EXCELLENCE
Corporate Excellence is defined as the abilityof the company to outsmart Competitorsconsistently over a long period of time.
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POINTS TO BE REMEMBERED WHILE PREPARING
ETHICAL BUSINESS BEHAVIOR MODEL
(a) EXCELLENCE THROUGHMANUFACTURING :-
I) Products of high quality
II) Products with enhanced featuresIII) Products at the right price.
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ACHIEVING EXCELLENCE BY BEING ETHICAL
b) EXCELLENCE THROUGH MARKETINGMIX :-
In the ever changing, highly competitive
business field new directions have to beshown in order to strive & ultimately toachieve corporate excellence.
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ACHIEVING EXCELLENCE BY BEING ETHICAL
(c) EXCELLENCE THROUGH HRM:- Among all the organizational resources, the
human resources are the most vital and require
constant refinement. Organizational objectivesand strategies must match with HR strategies.Since the change is the fundamental element inachieving corporate excellence, changemanagement is to be backed by human resources
of the firm. The change can be facilitated bymeans of HR activity- Training. Hence the trainingprogrammes in the new age businessorganizations should focus on - Team work,leadership, initiation, interpersonal communication.
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ACHIEVING EXCELLENCE BY BEING ETHICAL
From Finance point of view
Transparency with customers and clients
No improper use of funds
Proper audits and maintenance of books ofaccounts
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ACHIEVING EXCELLENCE BY BEING ETHICAL
Other factors include
BUSINESS PROCESS REENGINERING
Restructure and Redesign
GROWTH SUSTAINABLE DEVELOPMENT
Be consistent and not rapid
CORE COMPETENCE
Use your unique strength to get competitiveadvantage
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ACHIEVING EXCELLENCE BY BEING ETHICAL
Other factors include
RESOURCE UTILIZATION
Human, physical and financial resources, new
technologies
E-COMMERCE
facilitates the continuum relation between thecompany and the customer
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ACHIEVING EXCELLENCE BY BEING ETHICAL
Other factors include
CRM (CUSTOMER RELATIONSHIPMANAGEMENT)
to achieve corporate excellence the organizationsshould try to develop strong Customer RelationshipManagement.
SOCIAL CONSCIOUSNESSE.g. introducing ecologically friendly products or
services
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POWER-ETHICAL V/S UNETHICAL
Ethical- Positive Unethical-Negative
Leading Coercing
Influencing Forcing
Selling Hurting
Persuading Crushing
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EXAMPLES OF ETHICAL ACTIVITIES
Transparency with clients and customers
No insider trading
All employees should get fair treatment
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INFLUENCE OF ETHICS AND COMPLIANCE
Leading with Ethics and Compliance ensuresyour position as a key strategic advisor tosenior leadership at your company through
sessions on power and influence, changeand culture, and transformational leadership.
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PROGRAM DESIGN FACTOR ASSOCIATED WITH
ETHICAL COMPLIANCE
For a company
Goals, objectives, mission and vision of theorganisation
The product or service provided by theorganisation
Transparency and truthfulness about matter to bedisclosed
For an employee
Behavior towards colleagues
Behavior towards work
Behavior towards clients and customers
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PROGRAM DESIGN FACTOR ASSOCIATED WITH
ETHICAL COMPLIANCE
Continuously reviewed and improved
Should not be kept stagnant
Educating and follow up is necessary toavoid confusion and chaos
Establishing disciplinary mechanism toensure its compliance
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POSITIVE OUTCOME FROM ETHICAL
COMPLIANCE
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WHAT IS CODE OF CONDUCT
A Code of Conduct is a written collection ofthe rules, principles, values, and employeeexpectations, behavior, and relationships that
an organization considers significant andbelieves are fundamental to their successfuloperation.
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WHAT IS CODE OF CONDUCT
A Code of Conduct enumerates thosestandards and values that make anorganization remarkable and that enable it to
stand out from similar organizations.
The Code of Conduct serves as a frameworkfor ethical decision making within an
organization.
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REASONS FOR ADOPTING CODE OF CONDUCT
A code is an open disclosure of the way anorganization operates. It provides visibleguidelines for behavior.
A code is also a tool to encouragediscussions of ethics and to improve howemployees/members deal with the ethical
dilemmas, prejudices and gray areas that areencountered in everyday work
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REASONS FOR ADOPTING CODE OF CONDUCT
A code is meant to complement relevantstandards, policies and rules, not to substitutefor them.
Codes of conduct offer an invaluable opportunityfor responsible organizations to create apositive public identity for themselves which canlead to a more supportive political and
regulatory environment and an increased levelof public confidence and trust among importantconstituencies and stakeholders.
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HOW TO DEVELOP CODE OF CONDUCT
A code should promote culture that:
encourages employees to internalize theprinciple of integrity and practice it, and
encourages employees to do the right thing byallowing them to make
appropriate decisions.
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SUGGESTIONS BASED ON TODAY'S BEST
PRACTICES ON HOW TO WRITE A CODE
Write the code in a way that all employees canunderstand.
Circulate the code internally to all employees on a
regular basis (annually, at a minimum). Requireeveryone to acknowledge that he or she has read it,understands his or her responsibility to comply with it,and will report through appropriate channels anyobserved violations..
Circulate the code externally to institutional investorsand other constituents.
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SUGGESTIONS BASED ON TODAY'S BEST
PRACTICES ON HOW TO WRITE A CODE
Publish the code in the company's annual reportand on its Web site.
Conduct periodic employee training on the codeand "audits" of the staff's understanding of it.
Require periodic compliance self-assessmentsof selected employees using appropriate codeprovisions.
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WHAT IT INCLUDES
A statement by the CEO that the organization iscommitted to conducting business with integrity,in accordance with the highest ethical standardsand in compliance with all applicable laws, rulesand regulations. This establishes the required"tone from the top.
Practical examples of situations an individualmight encounter, and guidance to help clarifyhow the code should be applied in each case.
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WHAT IT INCLUDES
A discussion of the roles the organization'spolicies, structure, risk management andinternal controls play in ensuring compliance
with the company's ethical standards, includingthe role of personal accountability for adheringto the code.
Recognition of the company's responsibilities toshareholders, employees, customers and otherstakeholders.
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WHAT IT INCLUDES
Prohibitions on and/or required disclosuresrelated to conflicts of interest and restrictionson the use of confidential/proprietary
information.Corporate guidelines, including policies on
expenses, asset usage, vacations, insider
trading, etc.
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EMOTIONAL HIJACKING
What is Emotional Hijacking
Emotional hijackingis a state when anindividual's cognitions are overpowered by
his/her emotions. It is usually referred to in thecontext of aggression or fearfulness.
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EMOTIONAL HIJACKING
What are the possible outcomes ofEmotional Hijacking
Anger and frustration
negativity within the atmosphere
severe mood swing
Effect persons mental as well physical health
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THANK YOU