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Transcript of ethical culture in a company
CONTENTS
INTRODUCTION
Objective of the study
Scope of the study
Limitation of the study
Data collection
INDUSTRY ANALYSIS
COMPANY ANALYSIS
THEORETICAL ASPECTS
DATA ANALYSIS
DATA INTERPRETATION
Findings
Suggestions
Conclusion
BIBLIOGRAPHY
INTRODUCTION
When most people think of ethics (or morals), they think of rules for
distinguishing between right and wrong, such as the Golden Rule ("Do unto others as you
would have them do unto you"), a code of professional conduct like the Hippocratic Oath
("First of all, do no harm"), a religious creed like the Ten Commandments ("Thou Shalt
not kill..."), or a wise aphorisms like the sayings of Confucius. This is the most common
way of defining "ethics": ethics are norms for conduct that distinguish between or
acceptable and unacceptable behavior.
Given the importance of ethics for the conduct of research, it should come as no
surprise that many different professional associations, government agencies, and
universities have adopted specific codes, rules, and policies relating to research ethics.
Objective of the study:
The objective of the study is
To know what is code of conduct the employees in the organization follow.
To understand what is ethical culture in an organization.
To know what is the impact of the ethical policies on employees, customers,
suppliers.
INDUSTRIAL ANALYSIS:
IT SECTOR
Over the past decade, the Information Technology (IT) industry has become one of
the fastest growing industries in India, propelled by exports (the industry accounted for
more than a quarter of India’s services exports in 2004-05). The key segments that have
contributed significantly (96 percent of total) to the industry’s exports include – Software
and services (IT services) and IT-enabled services (ITeS) ie business services. Over a
period of time, India has established itself as a preferred global sourcing base in these
segments and they are expected to continue to fuel growth in the future.
These segments have been evolving over the years into a sophisticated model of
operations. Indian IT and ITES companies have created global delivery models (onsite-
near shore-offshore), entered into long term engagements with customers, expanded their
portfolio of services offerings, built scale, extended service propositions beyond cost
savings to quality and innovation, evolved their pricing models and have tried to find
sustainable solutions to various issues such as risk management, human capital attraction
and retention and cost management.
A key demand driver for the Indian IT services and ITeS industry has been
the changing global business landscape which has exerted performance pressures
on multinational enterprises. According to the Nasscom-Deloitte study, the
IT/ITES industry's contribution to the country's GDP has increased to a share of
5.2 per cent in 2007, as against 1.2 per cent in 1998. Further, the IT and BPO
industries are poised to clock revenues worth US$ 64 billion by the end of fiscal
year 2008, registering a growth of 33 per cent with exports expected to cross US$
40 billion and the domestic market estimated to clock over US$ 23 billion,
according to a study. Simultaneously, the Indian IT services market is estimated to
remain the fastest growing in the Asia Pacific region with a CAGR of 18.6 per
cent, as per a study by Springboard Research.
India's IT growth in the world is primarily dominated by IT software and services
such as Custom Application Development and Maintenance (CADM), System
Integration, IT Consulting, Application Management, Infrastructure Management
Services, Software testing, Service-oriented architecture and Web services.
Outsourcing
A research by Gartner forecasts India as the undisputed leader in the
outsourcing space in the year 2008. The country's IT exports have, in fact, come
quite far, starting from a few million dollars in the early 1990s. The Government
expects the exports turnover to touch US$ 80 billion by 2011, growing at an
annual rate of 30 per cent per annum. No wonder, twenty-nine India-based
companies have been listed among the best 100 IT service providers in a new
survey carried out with a view to assist business heads of major outsourcers
identify reliable, innovative and tech savvy partners. . India's IT potential has
attracted multinationals to grab a share of the pie and cash in on the IT boom. India
offers a market with very high returns for multinationals flocking to invest in their
India units. Also, the increase in purchasing power and the rapid business
expansion of the small and medium enterprises (SMEs) holds promise for global
information technology (IT) giants who look at a 100 per cent year-on-year growth
in their small and medium businesses (SMBs) market in India.
Growth:
According to the global infotech analyst International Data Corporation,
the Indian IT and ITeS market is estimated to grow at the rate of over 16 per cent
to become a US$ 132 billion industry, significantly, the domestic market alone is
expected to become over US$ 50 billion, with a CAGR of about 18.4 per cent.
Simultaneously, the IT and ITeS exports are estimated to more than double to US$
78.62 billion in 2012. The Indian IT and ITeS industry had recorded a growth rate
of 22.4 per cent in 2007 to become a US$ 60.57 billion industry, US$ 49.47 billion
in 2006.
COMPANY ANALYSIS
ORACLE FINANCIAL SERVICES SOFTWARE LIMITED
Oracle Financial Services Software Limited provides comprehensive IT solutions
exclusively to the financial services industry worldwide.
They have serviced over 825 customers in more than 130 countries through their
portfolio of products and services. Oracle Financial Services Software Limited's de-
risked revenue model continues to deliver consistent results despite changing global
economic conditions. The company is not overly dependent on any one country or
geographical region and has a diversified revenue stream from a widespread customer
base.
Oracle Financial Services Software Limited solutions – Addressing the entire financial
services space through a comprehensive portfolio of products, IT services, consulting and
knowledge process outsourcing services.
News Facts (Oracle Financial Services Software Limited)
Oracle Financial Services Software Limited was previously known as I –
flex solutions
This approval follows the earlier approval of the name change by the Board
of Directors and the Shareholders of the Company.
The new name reflects the company's close strategic and operational
alignment with its parent, Oracle Corporation, which owns 81 percent of the
company.
Oracle is the largest enterprise software company and counts 20 of the top 20 banks and
insurance companies among its more than 8,500 financial services customers across 145
countries.
Oracle Financial Services offerings are part of Oracle's solutions for banking
Oracle Financial Services Software, a majority-owned subsidiary of Oracle, is a leading
provider of banking solutions. Oracle FLEXCUBE is a complete banking product suite
for retail, consumer, corporate, investment and asset management, and investor servicing.
Oracle Daybreak helps banks reduce risk and increase productivity throughout the
consumer-lending cycle. Oracle Reveleus delivers a suite of analytical applications for
multi-jurisdictional Basel II compliance and risk management. And the Oracle Mantas
Behavior Detection Platform is the industry's most comprehensive solution for anti-
money laundering, detecting risk, and enhancing customer relationships.
The decade-old relationship between i-flex and Oracle Financial Services Software
Limited was further strengthened in 2005 at a strategic level. In August 2005, Oracle
Corporation announced that it would buy Citigroup’s 41 percent equity interest in Oracle
Financial Services Software Limited and floated an open offer to purchase up to an
additional 20 percent ownership from existing shareholders. Oracle has expanded it’s
investment in Oracle Financial Services Software Limited to become a majority
stakeholder in the company.
Together, i-flex and Oracle Financial Services Software Limited offered the most
comprehensive product footprint for Banking, Capital Markets and Insurance available in
the market today. The depth of the product offerings combined with the global reach and
world-class expertise in successfully delivering solutions for financial services industry
make this partnership the most potent combination in the industry today.
ETHICAL CULTURE:
Ethics have begun to play a very important role in the study of organizational
behavior and in the relations between organizations and the environments in which the
organizations work. It has been recognized that behaving efficiently and effectively. It is
not always easy to differentiate between ethical and unethical behavior. The ethical
dimensions of an action vary from person to person and situation to situation. What may
seem unethical in one scenario may be perfectly acceptable and even desirable in another
scenario.
Definition of Ethical Culture:
Ethical culture is usually defined as the documented systems and procedures that
articulate a shared perception of the organization’s values, of what behavior is right and
what behavior the organization expects from its members in certain situations.
Organizations usually articulate this ethical culture in written form or formal structures,
such as:
Codes of ethics.
Client characters.
Organizational rules.
Compliance procedure.
Policies and systems.
Reward and incentive programs.
There are also other formal systems used to reinforce ethical culture such as disciplinary
and enforcement mechanisms, ethics training and training in the organization’s values,
objectives and strategic goals. Informal mechanisms include expectations about
obedience to legitimate authority, peer behavior and other ethical norms.
Promoting an ethical culture by rewarding ethical activities and by giving signals to
employees/advisers that the organization expects certain types of behavior in certain
situations, can be a positive force on individual behavior and decision-making6. Reward
and incentive programs can be used in particular for this purpose.
The ethical context of an organization can influence its operations, the decision-
making of its members and their behavior in many ways.
First, the ethical context of an organization plays a major role in addressing
specific unethical behavior particularly in advisers.
Second, poor ethical decision-making and unethical behavior can be a function
of a weak organizational system where acceptable ethical behavior is not clearly
defined and an ethical culture is not promoted.
It is possible to integrate compliance systems with the ethical context to assist the
organization to manage both regulatory and reputation risk. To do this, the
organization needs to decide what values it seeks to champion and what
decision-making processes it will promote to support these values.
Responsible officers or compliance managers can begin this process by taking a
number of steps:
1.Understand what the existing ethical climate is;
2. Identify the firm’s values, priorities and decision-making processes;
3. Review how the firm articulates its ethical culture and the documents and
systems it uses to do so;
4. List the particular ethical risks or issues that the organization faces;
5. Compare this to the organization’s existing ethical climate and culture;
6. Will the existing ethical context allow the organization to ensure those risks
are minimized or will it exacerbate those risks?
7. Determine whether the organization’s ethical context fits with the
organization’s values and strategic aims;
8. Consider any potential conflicts that might arise between the existing ethical
context and the company’s goals;
9. Design a strategy for changing or strengthening the ethical climate and ethical
culture so as to ensure alignment.
In performing these steps, a number of questions should be asked, including:
1. Does the organization have a values statement/code of conduct?
2. Is it clear and does it really set out the organization’s values and what it
believes in?
3. Does it align with organizational vision and support goals, strategy and desired
behaviors?
4. Does the organization’s induction and training programs instruct staff on
organizational values and ethical decision-making?
5. What percentage of staff believe management adhere to organizational
policies and codes of conduct?
Changing the ethical culture and climate
From a practical perspective, an organization can begin to strengthen/change its
ethical context immediately by:
♦ Implementing training in ethical decision-making;
♦ Revising or developing a formal organizational Code of Ethics;
♦ Changes in how employees and advisers are monitored and supervised;
♦Altering company policies and procedures, including manuals, performance
objectives, recruitment and termination processes, and incentive and reward
systems, to ensure they are consistent with organizational values.
It may be that alignment has been achieved. For example, the organization may
have a law and codes climate which predominates and which is clearly articulated
in the organization’s documents, systems and training. This climate may also be
appropriate given the extent to which financial service organizations and
financial advisers are governed by government regulation and professional
standards.
However, as markets, regulations and strategic goals change so do the ethical
risks to the organization. In turn, the ethical context may need to change, as it
may no longer match the new demands on the organization. The existing ethical
climate and culture of the firm might also be working against the organization’s
ability to meet objectives, thus requiring change.
DATA ANALYSIS:
Oracle Financial Services Software Limited believe that the concepts of Code,
Character and Conversation provide a good framework for thinking about infusing ethics
into organization culture
Code of conduct and ethical policies in Oracle Financial Services Software Limited
policy is that all decisions on behalf of the Corporation adhere to the highest standard of
integrity. In many circumstances, this imposes a greater than is established by law of
regulation.
The Oracle Financial Services Software Limited code of conduct and ethical policies are
the basis for ethical behavior in their business dealings with customers, regulators and
communities in which they operate.
Code of conduct:
The Oracle Financial Services Software Limited code of conduct provides a
framework of Oracle Financial Services Software Limited’s values and ethical
standards. The following principles must be applied in their day to day business.
All decisions and actions must conform to all applicable laws, regulations
and corporate policies.
Business must only be secured for Oracle Financial Services Software
Limited on the basis of their belief in competitive market systems and the
appropriateness of earning a profit by providing their customers with
effective service.
Individuals must be trustworthy and honest in all actions and relationship
in behalf of Oracle Financial Services Software Limited.
Situations where personal interests conflict, or appear to conflict, with the
interests of Oracle Financial Services Software Limited, or its customers
must be avoided and prudently dealt with.
The results of each action or decision must be fair and even handed to all
parties to the transaction or event, in both the short term and long term.
Each decision or action must be appropriate, in terms of both their sense of
integrity and the security of others. It should seem appropriate even if
published in a major newspaper.
Human dignity and esteem must be respected in all of their dealings with
others.
Communication must be honest and accurate. Confidentiality must be
maintained where appropriate and necessary.
Ethical conduct should be acknowledged and valued by all employees and
agents of Oracle Financial Services Software Limited.
ETHICAL POLICIES:
Oracle Financial Services Software Limited follows the ethical policies which
amplify the principles set out in the Oracle Financial Services Software Limited
code of conduct. These policies apply to anyone acting on the behalf of Oracle
Financial Services Software Limited, its subsidiaries, and affiliates over which
Oracle Financial Services Software Limited exercises direct or indirect control.
Employees and directors of these entities must understand the Code of Conduct
and Ethical policies and comply with them in the discharge of their Oracle
Financial Services Software Limited related responsibilities. Supervisors and
managers have additional responsibility to help their staff understand and
apply these values and to maintain an environment that promotes consistent
compliance.
Oracle Financial Services Software Limited encourages employees to report
concerns and suspected violations of a law, regulations or corporate policy.
If, as a part of the employees activities on behalf of Oracle Financial Services
Software Limited, they have any concerns or issues, there is a mechanism to
report these matters or seek assistance. There are two steps.
Step one is to define the nature of their concern or issue.
After that they should contact any of the people or functions listed step 2.
STEP 1 STEP 2
Ethical policy regarding customers of Oracle Financial Services Software
Limited company:
They carefully select their customers with whom they conduct business.
Oracle Financial Services Software Limited does not do business with
drug traffickers, money launderers and other criminals. They seek to build
sustained, comprehensive relationships with their customers and
counterparties and recognize the importance of continuity of the people
Define your concern
Report your concern
What causes your concern?
Who is involved?
Supervisor or next level of management
Group Head
When did it happen? Chief Compliance
Where did it occur?
Executive Management Office
and priorities, which Oracle Financial Services Software Limited brings to
these relationships, and consistent of purpose and presence.
At all times the confidentiality of information about customers will be
maintained.
Oracle Financial Services Software Limited do not offer or make
payments, other inducements or provide lavish entertainment to
government officials or customers in order to sell the products or services.
They do offer promotional gifts to their large classes of customers. (eg.,
credit card and consumer account opening promotions)
Oracle Financial Services Software Limited makes sure that other their
legitimate associations permitted by law, their employees should not
discuss or enter into arrangements with competitors.
Ethical policies to investors:
All assets (including the goodwill of the company) and facilities owned by
the company are used solely foe Oracle Financial Services Software
Limited business. They must not be used for personal benefit or personal
consumption except where permitted or authorized by Oracle Financial
Services Software Limited in line with the local market practices and laws.
Each of the Oracle Financial Services Software Limited employees is
responsible for safeguarding Corporate assets under their control. Assets
include physical property, intellectual property (computer programs and
models)
The data and records should managed accurate and complete all times.
If any one of Oracle Financial Services Software Limited employees
violates these rules then the respected person is subjected to disciplinary
action, termination of employment and/or legal proceedings.
Ethical policies regarding employees:
Oracle Financial Services Software Limited seek to recruit, develop and
retain the most talented people. Oracle Financial Services Software
Limited and its employees must continually take positive action to ensure
equal opportunity in employment and a business environment free of
discrimination.
They reward people based on corporate, relative and individual
performance, teamwork and results. There is no place for discrimination to
employees.
Safety of people in the workplace is a primary concern of Oracle Financial
Services Software Limited.
Oracle Financial Services Software Limited employs the relative of Oracle
Financial Services Software Limited employees as long as it does not
create a potential conflict or the appearance of a conflict of interest.
Employees of Oracle Financial Services Software Limited should not
accept gifts from customers or suppliers. In situations where refusing or
returning the gift is truly impractical or would adversely affect the
relationship they can accept but put it on public display.
Oracle Financial Services Software Limited encourages every employee to
take an active interest in governmental processes. However, any
participation in a potential process is done as an individual, not as a
representative of Oracle Financial Services Software Limited.
Ethical policies regarding suppliers:
It is a policy of Oracle Financial Services Software Limited to purchase all
equipment, supplies and services on the basis of quality, utility and price
offered by the vendor.
Oracle Financial Services Software Limited must not leave any vendor
with the impression that it is necessary or useful for the vendor to purchase
products or services offered by Oracle Financial Services Software
Limited or its subsidiaries.
DATA INTERPRETATION:
Findings:
Oracle Financial Services Software Limited ethical policies are complied
not only regarding employees but also customers, suppliers, investors.
Oracle Financial Services Software Limited ensures that employees are
made to know the ethical policies as soon as they enter the company.
Supervisors and managers are responsible to help their staff understand
and apply these values in their working environment.
Oracle Financial Services Software Limited takes decision on the basis of
ethical values so that it should not harm the parties involved in the
decision.
When there is a conflict between the employee concern and Oracle
Financial Services Software Limited ethical policy Oracle Financial
Services Software Limited has procedures to solve those conflicts which
help the employees as well as the organization.
The ethical policy regarding customers gives goodwill to Oracle Financial
Services Software Limited from customers. The customers have great
belief in their quality of service Oracle Financial Services Software
Limited provides them.
Investors of Oracle Financial Services Software Limited are ensured that
all the assets including tangible as well as intangible are maintained
properly which is complied in the ethical policies. All the matters
regarding the Oracle Financial Services Software Limited are accurate and
confidentially maintained.
The employees are happy with ethical policies regarding them because all
the policies relating them are in such a way that it protects the concerns of
the employees also. They are treated equally and the reward given to them
are based on their performance only.
Oracle Financial Services Software Limited ensures any activities
regarding the employees done outside the organization can be done unless
it does not affect the organization.
If the employees violate any rules or did any unethical activity they are
given immediate termination.
The main unethical activity considered is harassment.
The other unofficial unethical activities are comes to office after having
drunk, smoking in the prohibited areas of the organization.
The rules and regulations are very strict and employees fear to do any
unethical activities.
SUGGESTION:
Many of the employees were really not aware about the ethical policies even
inspite of the responsibility of the managers and supervisors duty to make them
aware about it. They should make sure that all the employees are aware about the
company’s ethical policies.
Trainings and seminars can be given to employees on ethical decision making.
The ethical policies can be revised once in a year as the organization grows to
keep up their goodwill and gain more reputation in this cut throat competition in
the world.
CONCLUSION
The ethical context of an organization plays a major role in addressing
specific unethical behavior in employees and advisors. Poor ethical decision-
making and unethical behavior in financial advisers can be exacerbated by a
weak organizational system where acceptable ethical behavior is not clearly
defined and an ethical culture is not promoted. An effective ethical context
should be contributing to the types of ethical choices and conduct that the
organization wants from its employees/ advisers; and the quality and
consistency of ethical decision-making. Ethical context of the organization for
which employee work can influence in the ability to meet its obligations, to
provide services in an efficient, fair and honest manner, its reputation within
the marketplace, and the quality of the advice that will be given to clients.
BIBLIOGRAPHY:
Organizational Behavior SHASHI K. GUPTA
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