RELATION BETWEEN ETHICS AND CORPORATE EXCELLENCE

Virendra Kharbale Sudhir Tardekar Darpan Gawade

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WHAT IS ETHICS/BUSINESS ETHICS

Derived from Latin word ethicus meaning character Business ethics refers to application of ethical judgement to business activities

A business that makes nothing but money is a poor business - Henry Ford

WHAT IS CORPORATE EXCELLENCE

Corporate Excellence is defined as the ability of the company to outsmart Competitors consistently over a long period of time.

POINTS TO BE REMEMBERED WHILE PREPARING ETHICAL BUSINESS BEHAVIOR MODEL

(a) EXCELLENCE THROUGH MANUFACTURING :I) Products of high quality II) Products with enhanced features III) Products at the right price.

ACHIEVING EXCELLENCE BY BEING ETHICAL

b) EXCELLENCE THROUGH MARKETING MIX : In the ever changing, highly competitive business field new directions have to be shown in order to strive & ultimately to achieve corporate excellence.

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 objectives and strategies must match with HR strategies. Since the change is the fundamental element in achieving corporate excellence, change management is to be backed by human resources of the firm. The change can be facilitated by means of HR activity- Training. Hence the training programmes in the new age business organizations should focus on - Team work, leadership, initiation, interpersonal communication.

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 of accounts

ACHIEVING EXCELLENCE BY BEING ETHICAL

Other factors include

BUSINESS

PROCESS REENGINERING
and Redesign

Restructure

GROWTH SUSTAINABLE DEVELOPMENT

Be

consistent and not rapid

CORE
Use

COMPETENCE

your unique strength to get competitive advantage

ACHIEVING EXCELLENCE BY BEING ETHICAL

Other factors include

RESOURCE UTILIZATION
Human,

physical and financial resources, new technologies

E-COMMERCE
facilitates

the continuum relation between the company and the customer

ACHIEVING EXCELLENCE BY BEING ETHICAL

Other factors include

CRM

(CUSTOMER RELATIONSHIP MANAGEMENT)

to achieve corporate excellence the organizations should try to develop strong Customer Relationship Management.

SOCIAL
E.g.

CONSCIOUSNESS

introducing ecologically friendly products or services

POWER-ETHICAL V/S UNETHICAL

Ethical- Positive

Unethical-Negative

Leading Influencing

Coercing Forcing

Selling
Persuading

Hurting
Crushing

EXAMPLES OF ETHICAL ACTIVITIES

Transparency with clients and customers No insider trading All employees should get fair treatment

INFLUENCE OF ETHICS AND COMPLIANCE

Leading with Ethics and Compliance ensures your position as a key strategic advisor to senior leadership at your company through sessions on power and influence, change and culture, and transformational leadership.

PROGRAM DESIGN FACTOR ASSOCIATED WITH ETHICAL COMPLIANCE

For a company
Goals, objectives, mission and vision of the organisation The product or service provided by the organisation Transparency and truthfulness about matter to be disclosed

For an employee
Behavior towards colleagues Behavior towards work Behavior towards clients and customers

PROGRAM DESIGN FACTOR ASSOCIATED WITH ETHICAL COMPLIANCE

Continuously reviewed and improved Should not be kept stagnant Educating and follow up is necessary to avoid confusion and chaos Establishing disciplinary mechanism to ensure its compliance

POSITIVE OUTCOME FROM ETHICAL COMPLIANCE

WHAT IS CODE OF CONDUCT

A Code of Conduct is a written collection of the rules, principles, values, and employee expectations, behavior, and relationships that an organization considers significant and believes are fundamental to their successful operation.

WHAT IS CODE OF CONDUCT

A Code of Conduct enumerates those standards and values that make an organization remarkable and that enable it to stand out from similar organizations. The Code of Conduct serves as a framework for ethical decision making within an organization.

REASONS FOR ADOPTING CODE OF CONDUCT

A code is an open disclosure of the way an organization operates. It provides visible guidelines for behavior. A code is also a tool to encourage discussions of ethics and to improve how employees/members deal with the ethical dilemmas, prejudices and gray areas that are encountered in everyday work

REASONS FOR ADOPTING CODE OF CONDUCT

A code is meant to complement relevant standards, policies and rules, not to substitute for them. Codes of conduct offer an invaluable opportunity for responsible organizations to create a positive public identity for themselves which can lead to a more supportive political and regulatory environment and an increased level of public confidence and trust among important constituencies and stakeholders.

HOW TO DEVELOP CODE OF CONDUCT

A code should promote culture that:

encourages

employees to internalize the principle of integrity and practice it, and encourages employees to do the right thing by allowing them to make appropriate decisions.

SUGGESTIONS BASED ON TODAY'S BEST PRACTICES ON HOW TO WRITE A CODE

Write the code in a way that all employees can understand. Circulate the code internally to all employees on a regular basis (annually, at a minimum). Require everyone to acknowledge that he or she has read it, understands his or her responsibility to comply with it, and will report through appropriate channels any observed violations.. Circulate the code externally to institutional investors and other constituents.

SUGGESTIONS BASED ON TODAY'S BEST PRACTICES ON HOW TO WRITE A CODE

Publish the code in the company's annual report and on its Web site. Conduct periodic employee training on the code and "audits" of the staff's understanding of it. Require periodic compliance self-assessments of selected employees using appropriate code provisions.

WHAT IT INCLUDES

A statement by the CEO that the organization is committed to conducting business with integrity, in accordance with the highest ethical standards and in compliance with all applicable laws, rules and regulations. This establishes the required "tone from the top. Practical examples of situations an individual might encounter, and guidance to help clarify how the code should be applied in each case.

WHAT IT INCLUDES

A discussion of the roles the organization's policies, structure, risk management and internal controls play in ensuring compliance with the company's ethical standards, including the role of personal accountability for adhering to the code.

Recognition of the company's responsibilities to shareholders, employees, customers and other stakeholders.

WHAT IT INCLUDES
Prohibitions on and/or required disclosures related to conflicts of interest and restrictions on the use of confidential/proprietary information. Corporate guidelines, including policies on expenses, asset usage, vacations, insider trading, etc.

EMOTIONAL HIJACKING

What is Emotional Hijacking

Emotional

hijacking is a state when an individual's cognitions are overpowered by his/her emotions. It is usually referred to in the context of aggression or fearfulness.

EMOTIONAL HIJACKING

What are the possible outcomes of Emotional Hijacking

Anger

and frustration negativity within the atmosphere severe mood swing Effect persons mental as well physical health

THANK YOU