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why
an asset?
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A “clean” image attracts both customers and investors
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There is a direct co-relation between ethical
conduct and job satisfaction
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Most Fortune 500 companies have established ethics offices
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‘Value courses’ are an essential part of executive training
programmes in top global organisations
Organisational
ethics and moral standards have gained more prominence in the corporate
culture of today, compared to how things were during the last couple
of decades. More than 35 percent of Global 2000 firms have high-level
ethics officers to enforce organisational values, while most Fortune
500 companies have established ethics offices. Training in corporate
and customer ethics is slowly but surely being recognised as must,
particularly where IT is central to the business.
For
all ‘enlightened’ organisations, today commercial success
means much more than the profit margin, it is the image of the company,
the goodwill it generates in the market that determines its success
in the truest sense of the word. Furthermore, it is also a known
fact that only those companies can attract the brightest and the
best talent which portray a “clean” image. They consider
it a matter of pride to be associated with the organisation and
have a greater sense of belonging. Studies have also proved that
there is a direct co-relation between ethical conduct and job satisfaction.
It is in fact one of the greatest motivating factors. Wherever the
top management gives strong support to ethical conduct, it increases
an employee’s identification with the company. For the 21st
century employees, remuneration does not just come in the form of
material rewards but also inner needs like a strong sense of values
and familial culture at the workplace.
 Hema
Ravichander, senior vice president-human resource development, Infosys
Technologies, says, “We at Infosys have a distinctive work
culture and value system. Our value system anagrammed as C-LIFE,
places a great deal of importance on customer delight, leadership,
integrity, transparency, fairness and pursuit of excellence. Infosys
also has an open door policy. We value our employees and encourage
them to make decisions about their own work. Even though we are
a 10,000-plus work force, we have a flat organisation when it comes
to communication and information sharing.”
While
most top global companies are incorporating corporate responsibility
and value courses as a part of their executive training modules,
in India it is still a novel phenomenon. At Infosys however all
the new incumbents have to go through “values workshops”
that are led by senior Infoscions. “Case studies, artefacts
and standardised presentations are used for this. In addition, we
have an email id where employees can send in queries or seek clarifications
on values and their practice. A senior Infoscion responds to their
concerns,” informs Ravichander, adding emphatically, “we
believe that it is very important to identify values, articulate
them and strongly reinforce them through action.”
Evidently,
a corporate code of conduct can only be implemented in an organisation
if senior personnel are held accountable about its objectives. Furthermore,
there should be a direct communication channel between the employees
and the concerned office. A violation must be investigated and stringent
action taken. At GTL Limited, while there are no formal training
programmes on ethics, if somebody is not found meeting the standards,
he/she is pulled up and has to go through an induction programme.
Instances of lapses are dealt with severely.
“Drastic
measures have been taken against a few senior people who have violated
ethical norms. When those who have been around for 10 years are
not absolved, others notice it and this trickles down to the rest
of the employees,” says Raja Sekhar Reddy, vice president-HR
strategy, GTL Limited. The chances of lapses are of two types: firstly,
through vendors—when internally payments are taken under the
table; secondly, while acquiring orders from customers (PSUs and
government departments), which have legalised such forms of payment.
“We generally avoid working with such organisations and have
been adhering to the principles of corporate governance for the
last five years and this January the CII awarded us the ISO 9002
standard for accounts, tax, inventory and HR practices,” points
out Reddy. He reminds that in terms of long-term growth of any organisation
it is necessary to have high ethical standards. Transparent and
“clean” corporate behaviour attracts both customers and
investors. “The customers trust us. We have no products, all
our orders are based on promises. The investors have to believe
in us and our practices.” And this is obviously ensured by
a belief in the values which the organisation represents. Earlier,
ensuring ethical practices was considered as a responsibility of
the HR department, today interestingly it is everybody’s business.
The aim is not just to set down laws but to create a corporate culture.
High
ethical standards are now recognised as an asset for a company (though
“goodwill” is not considered as a balance-sheet item),
and unethical behaviour is a liability. It cannot be denied that
financial loses are brought about on account of additional expenses
incurred to stay above the law, however in the long-run it is suitably
balanced by non-financial advantages like the reputation of the
company.
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