Professional Documents
Culture Documents
SUMMARY
Ingersoll-Rand (India) Limited is a part of the Ingersoll Rand Company, a global
innovation and solutions provider with powerful brands and leading positions within its
markets. Ingersoll-Rand (India) Limited has its presence in India since 1921.
Ingersoll Rand code of conduct describes its commitment to lawful and ethical conduct
wherever they do business. The code of conduct framed by the company covers
exhaustively the situation under which legal or ethical issues may arise, under which
how an employee must act.
The spirit of the code of conduct lies in the genesis of the company’s core values of
Integrity Respect, Teamwork, Innovation and Courage. The code of conduct is the
minimum standard of conduct which is to be scrutinized by a number of stakeholders.
And all employees are expected to act with the highest business ethics in all Ingersoll
Rand transactions.
This paper outlines the policy framework under which Ingersoll Rand formulated their
code of conduct.
“Good ethics and governance are not just "moral" or "compliance" issues. In the long
term, they are essential behavioral traits for the organization that strengthen the brand
equity and help ensure stable growth.”
Introduction
Company Profile
Ingersoll-Rand (India) Limited is a part of the
Ingersoll Rand Company, a global innovation and
solutions provider with powerful brands and leading
positions within its markets. Ingersoll-Rand (India) Limited has its presence in India
since 1921. The company established its first manufacturing plant in India in 1965 and
became a public limited company in 1977.Today Ingersoll-Rand has manufacturing
facilities in Ahmadabad that is ISO 9001:2008 certified and in Sahibabad that is ISO
9001:2000, ISO 14001:2004 & OHSAS 18001:2007 Certified. Ingersoll Rand products
are widely appreciated in the market for their superior quality and reliability. With a
strong sales presence in over 15 locations across the country and a strong national
distributor network, Ingersoll-Rand (India) Limited is a dominant player in its business of
providing solutions for the Infrastructure development, Industrial Solutions and Climate
Control markets. It is amongst the country's largest exporters of engineered goods.
Ingersoll Rand believes that their success lie in when all its employees work towards a
common purpose and common values. A culture which is consistent act in the best
interest of their customers, shareholders, communities and themselves.
Their culture is based upon a set of core value:
Integrity
We act in the highest legal and ethical standards in everything we do
Respect
We communicate and act in ways that respect and value the worth of all people,
cultures, viewpoints and backgrounds
Teamwork
We work together and share resources to provide greater value to our customers,
employees, business partners and shareholders
Innovation
We use our diverse skills, talents and ideas to develop innovative, imaginative and
creative solutions to challenges
Courage
We speak up for what is right and take measured risks so our company can thrive
Scope of the paper
CODE OF ETHICS: Ingersoll Rand India
This paper reviews the code of conduct norms laid down by Ingersoll Rand India with
the following objectives:
2. To identify existing rules and regulations that aided Ingersoll Rand India in preparing
its code of conduct.
Ingersoll Rand India code of conduct is based on Ingersoll Rand Global code of
conduct, it describes their commitment to lawful and ethical conduct wherever they do
business. The code of conduct reflects Universalist ethics like honesty, integrity and
responsible conduct which are accepted and recognized by business with diverse
culture.
The code of conduct are made available on Ingersoll Rand Global corporate website in
many international languages like Arabic, Chinese , Czech, Dutch , English , French,
German, Hungarian, Indonesian , Italian, Japanese, Korean, Malay, Polish, Portuguese,
Russian, Spanish, Thai, Turkish.
Established an Ethics and Governance Policy for the company, through discussions
with the senior management team; benchmarking it with the policies of best-practice
companies. Writing it out in a plain, easy to understand language.
Publishing the Policy, along with a Code of Conduct for the employees. Illustrating the
code with typical examples of what the employee should do, when faced with day-to-
day ethical dilemmas. In other words, demystify corporate jargon, and make the policy
user-friendly.
CODE OF ETHICS: Ingersoll Rand India
Communicating the policy widely and repeatedly. Starting with all meetings with a
slide on it; holding refresher training programmes; get all employees to sign; and make
it part of the new employee orientation.
Seting the example from the top; practice the policy consistently and visibly. This is
critical, the ultimate fate of the policy depends on this.
Circulating the policy amongst customers and suppliers. To make it easier for the
employees to follow the policy.
Taking swift and fair action on reported violations, after due verification.
Reviewing the policy at regular intervals, to make sure it stays current with changing
regulatory and market requirements.
The company has adopted a whistle blower policy as a mechanism for employees to
report to the management any concerns about unethical behaviour, actual or suspected
fraud or violation of the company’s code of conduct. This policy also affirms that all
employees can report their concerns to the audit committee.
Ingersoll Rand has a 24/7 ethics helpline for employees who wish to seek guidance or
to report concerns or discussing the issue with a manager, supervisor, HR
CODE OF ETHICS: Ingersoll Rand India
Ingersoll Rand has a set of separate ethics helpline numbers for countries in which they
do business like Brazil, China, Czech Republic, France, Germany, India, Ireland, Italy,
Mexico, Russia, Spain, Turkey, United Kingdom, United States.
SEBI: Companies Act, Code of Conduct (hereinafter referred to as "the Code") has
been framed and adopted by Ingersoll Rand (hereinafter referred to as "the Company")
in compliance with the provisions of Clause 49 of the Listing Agreements entered into
by the Company with the Stock Exchanges.
SEBI: Prohibition of Insider Trading Regulation 1992, as amended, the company has
adopted a code of conduct for prevention of insider trading with effect from August 1,
2002. This code of conduct is applicable to all directors and such employees of the
company who are expected to have access to company’s unpublished price sensitive
information.
Secretarial Audit: As stipulated by SEBI regulations, the company secretary carries out
the secretarial audit to reconcile the total admitted capital with National Securities
Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSl) and
the total issued and listed capital. This audit is carried out every quarter and the report
is submitted to the stock exchanges as well as placed before the Board of Directors.
The audit confirms that the total listed and paid up capital is in agreement with the
aggregate of the total number of shares in dematerialized form and total number of
shares in physical form.
Recommendations:
Ingersoll Rand has a very clearly and exhaustively defined code of conduct. Based on
the secondary data and personal interview taken from IR India representatives, the
following recommendations can be made to Ingersoll Rand India.
CODE OF ETHICS: Ingersoll Rand India
Ingersoll Rand India has its branches in Mumbai, Kolkata, Delhi, Bangalore, Sahibabad,
Chennai and Ahmadabad but the code of conduct listed on the website is in English and
not in the national language Hindi or any other local language. Also on the corporate
website the code of conduct is available in different languages but not in an Indian
language. Since IR has its operations is India since 1921, it’s important that the code of
conduct should be listed in Indian national language for all the stakeholders to believe
and value.
CODE OF ETHICS: Ingersoll Rand India
Annexure 1
Q1. Global human rights policy has aided Ingersoll Rand to formulate its code of
conduct, are there any more international policies adopted by Ingersoll Rand?
Q2. Ingersoll Rand has a common Corporate Compliance Policy globally. The values,
ethics, models of governance and laws vary from country to country. How difficult is it to
implement the code of conduct in a dynamic environment? What are the specific
challenges you face in India?
Q3. Ingersoll Rand has a Helpline to address employee grievance regarding the code of
conduct. Is the Helpline also open to other stakeholders of the company?
Or
Does Ingersoll Rand have a consumer grievance cell to address issues related to code
of conduct of the
company?
Q4. How does the feedback mechanism employeed to monitor and address complaints
from stakeholder on issues related to Code of conduct work?
Q5. Does Ingersoll Rand India promote freedom of association for its employees?
Q6. The Code of Conduct establishes a frame work for senior level member of Ingersoll
Rand India. How does Ingersoll Rand India ensure that the knowledge of code of
conduct is passed down to the lower level members of the company?
Q7. Why isn’t the code of conduct posted in our native language on the website of
Ingersoll Rand India?
Q8. How does Ingersoll Rand Code of conduct address the needs/benefits all the
stakeholders of the company?
Q9. What are the internal control mechanisms employed by the company to avoid
leakage of confidential information?
CODE OF ETHICS: Ingersoll Rand India
Reference:
Ingersoll Rand, 2010, Our Code of Conduct: A guide to legal and ethical standards for
all employees
Ingersoll Rand, 2010, Ingersoll Rand Global Human Rights Policy [Online] Available
at: http://company.ingersollrand.com/aboutus/corpgov/Documents/Ingersoll%20Rand%
20Global%20Human%20Rights%20Policy.pdf [Accessed 21Oct 2010].
Raghavan, Anchal, 2006, Ethics and Governance — Next global frontier for India Inc
[Online] Available
at: http://www.thehindubusinessline.com/2006/07/15/stories/2006071501151200.htm
[Accessed 18 Oct 2010].