Infusing Values and Ethics in an Organization

Nishith Tikkha

Introduction

Values and ethics are central to any organization. And, both are extremely broad terms.

Values can be defined as those things that are important to or valued by someone. That

someone can be an individual or, collectively, an organization. Values are ideals craved by

human being for the betterment of the society and mankind as a whole. Corporate values are

the sum of desirable traits for the benefit of the employees and the organization in a

symbiotic relationship which helps them sail through times -- good and bad.

Ethics are the ways of behaving righteously. Ethics are do’s and don’ts. Ethics are the

beacons for a person to tread upon in rough weather.

Values and ethics are closely intertwined. The relationship can be defined in a simple

sentence: values determine what is right and what is not, and doing that which is right or

wrong is what we mean by ethics.

It is experience that often leads organizations to develop beliefs about what is of value for the

common good of the stakeholders. The most important objective for a human being is to

improve his karma for his own sake or for the sake of the society.

Ethics in the way organizations go about their business is important to customers and

stakeholders, who are becoming increasingly aware of - and increasingly discriminating

against - companies which fail to meet their criteria.

Values

There are three types of values in the context of an organization:

1. Espoused Values

These values do not actually represent organizational culture. They portray what the

organization wishes to display. These values are required for generating goodwill.

2. Enacted values

These are the true values that set the course at the workplace. These are guiding rules that

help avoid conflict of interest situations in the daily roles of the participants.

3. Cherished Values

These are the values, in general, cherished by everyone -- immaterial of race or religion.

These values become lighthouses in ways more than one. Values are hallmark of

leadership

Ethics

Compare the working conditions of today with the times of the Pharaohs or the Romans.

Findings suggest that thousands of slave labour perished in the construction of the awe-

inspiring pyramids. Colour and race determined who the master was and who the slave. In

western countries, children because of their small size were employed to clean the soot from

inside chimneys. Many such children perished from lung disease. Women would not be

employed in factories.

Times changed and society demanded that businesses place a premium on fairness and equal

rights. Labour laws were instituted. Government watch-dogs were established. Unions were

formed. Laws and regulations like the MRTP were introduced.

Ethics is a personal choice and having ethics is doing the morally correct thing when no one

is watching. Good ethics come into play in situations that tempt to steal without the

possibility of getting caught. A person should have the inclination to improve his karma for

his own sake or for the sake of the society.

What causes unethical behaviour and deviation from values

There are several reasons that can influence persons to stray from the path of righteousness.

These exist broadly on the personal level and the collective one.

A new employee brings with him his own set of values and ethics that may have been a result

of his upbringing. Then the issue might be of such strategic importance to the company or the

individuals own prospects that eating the devil’s apple might be too tempting.

The group in which one works too influences ones thinking. The organization’s response to

dissenters may include very little by way of incentives. In such companies "going against the

stream” or “rocking the boat” is looked down upon and even at the same time exposing the

unethical actions of others is frowned upon. In such situations, employees quickly learn to

stay afloat, or they don't survive for long.

The pitfall of this is that if the top management itself deviates from the companies’ ethics

program, the company as a whole will not only suffer from doing things less effectively, but

also could lead to employees losing trust in the actions of the top team.

The recent collapse of the much revered financial institutions of the US came about possibly

due to unethical behaviour. The top officials, in carrying out their investment businesses,

either pandered to the individual wishes of the CEO or lied about the safety in the real estate

business. The stakeholders’ interests were compromised and this was reflected in the stock
prices which reduced to a fraction of their worth a few months ago. The trust accumulated

through decades was lost in a couple of months.

What propagates unethical behaviour is that employees are quick to find out that they serve

'at the pleasure' of the boss. There will always be someone who toes the line and is ready to

render useless the one who refuses to perform an unethical action.

Infusing values and ethics

Ethics always say, ‘Not I, but thou’.1

A recent IBM TV advertisement goes like, “We have a room to innovate in, when we decide

to innovate.” So do many corporate have an ethics program and a glorified manager

overseeing it but not all in the organization know how to get all employees into the loop.

Formulation of ethics follows a continuous learning curve for it is only with experience that

organizations develop beliefs about what creates value for the stakeholders. Building a

conducive climate depends primarily upon the actions of top management and the way they

deal with ethical issues.

Other steps follow by making clear ethics policies and creating awareness on their

application:

• The strongest message can emanate only from the top when ethical behavior is backed to

the hilt.

• The same holds true when breach of ethical behavior is not pardoned.

• Considering that a new employee brings with him his own set of values and ethics that

may have been a result of his upbringing, the selection process assumes great importance.

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Swami Vivekanand
• People will do what they are rewarded for doing and hence, there should be a consistent

incentive system for practicing ethical behavior. People will be honest if they know that

honesty will be rewarded.

• Individual deeds of upholding Company values and their ethical behavior in the face of

enticement or threat can be publicised via grapevine or in addresses, with the top leaders’

endorsement.

• Buildings or conference halls can be named after the values viz. Integrity Hall and the

theme depicted with pictures, slogans or caricatures.

• The Internal Corporate Communications department can be vital to spreading the

message of values and ethics, particularly in large organizations. This can be done by

making available readily accessible information about internal policies and procedures as

well events affecting the organization.

• One of the benchmarks of ethical business dealings is transparency. The ones affected

have the right to know what decision has been taken and how it affects their interests.

• Programs which disseminate the organization’s beliefs and what it perceives ethical

behavior have to be an integral part of the annual training calendar. They encourage and

provide the right opportunity to the participants to vocalize their thoughts in an informal

setting. This would otherwise not be possible at the workplace. Post such trainings,

employees develop frankness in discussing the behavior which they observe at their

workplaces.

• The Head of IT can also be a vital player in building up a knowledge warehouse which

stores the decisions and actions taken in previous dilemmas.

• However, the best medicine to this date remains the prevention of occurrence of

dilemmas in the first place by having exhaustive predefined procedures.

Values and Ethics in Public Bodies

The author having worked both in the private sector and then in Maharashtra Finance &

Accounts Services and now in a public sector enterprise – ONGC, has observed marked

differences. The methods of infusing values and ethics, listed above, are common to all

organisations – public, private, not-for-profit, etc. However, when it comes to public services

or public enterprises there are more than a few key differences.

For public officials – ministers or government employees-- there are many reasons for

upholding ethics and values:

1. They have more power than the common man of RK Laxman.

2. They have more opportunity for violation of those codes or laws.

3. They have the power to spend money which actually belongs to the public.

4. They serve as examples to the society at large.

"The public servant is morally bound to tell the truth, to keep promises, to respect the person

and the property of others, and to abide by the requirements of the law"2

The values which servants of the public are supposed to espouse are

1. Maintaining political neutrality and transparency

2. Putting public money to effective use. The most difficult choices involve determination of

how much budget to provide for national security, which social programs to fund, etc.

3. Acting in a manner that will stand up to public scrutiny.

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York Willbern
4. Acting at all times in such a way as to uphold the public trust by taking all decisions in

the public interest and not advance own personal interest by way of means such as

corruption and kick-backs or favours.

5. Deciding recruitments on the basis of merit.

6. In a country like India with a multitude of religions and castes -- respect for diversity

Public enterprises have to be even more vigilant in infusing the importance of values and

ethics in their employees because they deal with the public and are entrusted with effective

utilization of public funds. Again training comes in handy whether it be at the time of

induction or in later life. Serving or retired officials can serve as live knowledge warehouses

in such training programs.

Having a written code of conduct which is reviewed every year too is an important part.

Constituting special Ethics Cells, which obtain feedback from persons who have dealings

with public officials serve equally well. However, the basis of their existence should not be

“to catch a thief” but to act as a preventive medicine.

Ethical training is a continuous process, and no one can say that he has learned too much.

Benefits of values and ethics in the organization

The management’s quest for an organization based on a strong set of values and ethics

ultimately helps pave the way for employees’ personal upliftment. More results can then be

expected to follow:

• Loyalty, cohesiveness & belongingness to the organization helps in arresting attrition

and brings about zeal to give their self to the organization. Employees forget about

self and work with the ideals cherished by the organization.

• Duty consciousness enhances performance and arrests absenteeism thereby increasing

productivity.

• Values and ethics give the employees direction as to which decision is in consonance

with company policy.

• Reducing incidences of corruption is much easier and simpler and results in saving

precious time, energy and money on investigation and punishment.

• Openness and exchange of knowledge

• Every employee of an organization which places a premium on ethics becomes an

ambassador of the image of organization. This improves goodwill among customers

and stakeholders.

• An organization with a good public image attracts better qualified new entrants and

helps in retaining them.

• Ethics and values remove possible irritants and improves their mental health by

creating congenial working environment. The end result is stress-free employee

satisfaction.

• Enhancement in work culture creates an environment of mutual respect and trust

amongst the worker-worker, worker-manager.

• Mutual trust is the outcome of good values and helps with change management. The

mutual trust generated makes change acceptable as everybody believes that their trust

will not be betrayed and no harm is intended with the change. The trusting

environment improves their health and eliminates work related stress.

• An organization with ethics and values is blessed with improvement in employees

behaviour pattern.

• Infusion of ethics and values results in elimination of elements of friction and a

consequential reduction in IR issues and confrontation.

 • A positive change is witnessed in the environment of the organization, be it work,

social gathering, cultural events, sports or even canteens and shop floors.

Conclusion

The dream of a corporate nirvana cannot be achieved without good moral ethics and values.

Just like a family with good values sails through bad patches, organizations too can hope to

sail through bad times on the boat of corporate ethics and values.

References

1. The MANAGEMENT and ETHICS OMNIBUS by SK Chakraborty

2. HUMAN SOCIETY IN ETHICS AND POLITICS by Bertrand Russell

Author : NISHITH TIKKHA

Qualification : MBA, LL.B, MIR&PM

Working as : Manager (HR)

Address : Well Stimulation Services, ONGC, Chandkheda Campus,

Ahmedabad-380005

e-mail ID : adit94@gmail.com

Phone: +919426614928

079- 23294266 (off)

079- 23296416 (Fax)