Corporate culture and ethics

NAME : ASHWINI DILIPKUMAR SAWANT

CLASS : M.COM (SEMISTER I)

COURSE NAME : ACCOUNTING & AUDITING

ROLL NO. : 1070

NAME OF THE COLLEGE : MAHARSHI DAYANAND COLLEGE

OF ARTS, COMMERCE & SCIENCE

PAREL, MUMBAI NO.:400 012

SUBJECT : STRATEGIC MANAGEMENT

PROJECT NAME : CORPORATE CULTURE AND ETHICS

AND PARLE G

STRATEGIC MANAGEMENT & TATA STEEL

MASTER OF COMMERCE

ACCOUTING & AUDITING

Semester 1

(2012-2013)

Submitted,

In partial fulfilment of the requirements for the

Award of degree of master of commerce Accounting & auditing

Submitted by,

ASHWINI DILIPKUMAR SAWANT.

ROLL NO.: 1070

Under the guidance of

MAHARSHI DAYANAND COLLEGE OF ARTS, COMMERCE & SCIENCE

PAREL, MUMBAI - 400 012.

MAHARSHI DAYANAND COLLEGE OF ARTS, COMMERCE & SCIENCE

PAREL, MUMBAI – 400 012.

CERTIFICATE

This is to certify that Ms. / Mrs. ASHWINI DILIPKUMAR SAWANT.

Of M. COM – Accounting & Auditing (2012- 2013) has successfully completed the

Project on STRATEGIC MANAGEENT & TATA STEEL

Under the guidance of

Course Coordinator Principal

Project Guide / Internal Examiner

External Examiner

DECLARATION

I ASHWINI DILIPKUMAR SAWANT

Student of M. COM. (Accounting & Auditing) Semester 1 (2012 – 2013)

Hereby declared that i have completed the project on STRATEGIC

MANAGEMENT & TATA STEEL The information submitted is true &

Original to the best of my knowledge.

Signature of Student.

Ashwini Dilipkumar Sawant.

ROLL NO .: 1070

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported

me during the writing of this book.

My deepest thanks to Lecturer, the Guide of

the project for guiding and correcting various documents of mine with attention and care. He

has taken pain to go through the project and make necessary correction as and when needed. 

I express my thanks to the Principal of, MAHARSHI DAYANAND

COLLEGE OF ARTS, COMMERCE & SCIENCE, PAREL, MUMBAI NO. : 12

for extending his support.

I would also thank my Institution and my faculty members without whom this

project would have been a distant reality. I also extend my heartfelt thanks to my family and

well wishers

CONCEPT OF CORPORATE CULTURE

Corporate culture is the collection of beliefs, expectation and values learned and shared by an

organization's members and transmitted from one generation of employees to another. The

organization's culture generally reflects the values and beliefs of the founder(s) and the

mission of the firm. It gives a sense of identity to the organization's members - This is who

we are. This is what we stand for. The main features of organizational culture are as follows:

Organizational culture is a combination of social, cultural, physical, psychological, and

other conditions within an organization.

It influence the motivation, attitudes, behaviour and performance of the members of an

organization.

It gives a separate identity to the organization as compared to other organizations as each

organization has its own set of values, beliefs, practices customs etc.

The organizational culture evolves over a fairly long period of time.

It can be relatively stable over a period of time. However, there can be changes in the

organization culture, with a change in top management, or management's philosophy.

It is invisible and abstract, although it is perceived and experienced by the the members of

an organization.

Organization culture can bring name and goodwill to the organization.

It can provide opportunities and threats to its members.

CORPORATE CULTURE AND STRATEGY

1. PERSONAL VALUES AND BUSINESS ETHICS

The personal values are imbibed from parents, elders, and teachers. As an individual grows,

values are adapted and refined in the light of new knowledge and experiences. In an

organization, values are imparted by the founder or by a dominant personality - mostly the

chief executive. Such values remain for fairly a long time, even when the founder or the

dominant personality is not there in the organisation Ethics specify what is good or bad, right

or wrong, proper or improper from social point of view. Business ethics relates to behaviour

and actions of corporations relating to business. According to Robert Gurinner "Business

ethics may be defined as those principles, practices, and philosophies that are concerned

with moral judgments and good conduct as they are applicable to business situation."

Features of Business Ethics

The following are some of the important features of business ethics:

1.Ethical Values:

Business ethics is concerned with morality in business. In today's world, business community

forms a large part of the society and its actions (like right or wrong, legal or illegal) are

bound to have a direct impact on the well being and welfare of the society. Business affects

society in terms of what it does, i.e. what products is supplies.

2. Relative term:

Ethics is a relative term i.e. the concept of morality and immorality differs from one

individual to other or society. What is moral in one society may be immoral in other.

For example, taking or giving bribe is considered as unethical in our society but may be a

routine affair or just ignored by society in some other countries.

3.Interest of society :

Business ethics implies that the business should do first good to the society and then to

itself. Business is an important institution and has a social responsibility to protect the

interest of all those groups like employees, share holders, consumers who contribute to

the success of business.

4.Business – society relationship:

business ethics set the terms and standards to understand business – society relationship.

It indicates what society excepts from business and what it thinks about business.

5. Provides framework:

Like an individual, business is also bound by social rules and regulations. Business is

excepted to confine its activities within the limits of social, legal, cultural and economic

environment.

6. systematic study:

Business ethics is a systematic study of business policies and actions that have an impact

on human beings and the society. For example, a company that cares for better natural

environment will pursue those plans and policies that protects environment will pursue

those plans and policies that protects environment.

7. Code of conduct:

Business ethics, like code of conduct or professional ethics provides guidelines to regulate

business activities on legal, moral, social, and ethical principles.

8. Guiding principles:

business ethics are the guiding principles which helps to differentiate good or bad, right or

wrong, proper or improper business decision and actions.

9. Universal application:

business ethics has universal application. It is applicable to all business units in all

countries whether large or small.

Importance Of Business Ethics And Values

The need for business ethics is more felt in recent years than over before. The following

points outline the significance of business ethics.

1. Survival of business:

business needs to follow ethical values for its own good and survival. A firm can

have short term and quick gains by resorting to unethical means and disregarding

social welfare. However, such firms grow first and are out of business faster. On

the other hand, organisations doing business ethically have continued to survival

and proper for a longer time.

2. Protection of consumer rights:

the application of business ethics will help to confer and implement consumer

rights. This will enhance the strength of individual consumer against the

powerful business community. Business ethics can be used to check malpractices

like adulteration, unfair trade practices and to make the working of business

consumer oriented.

3. Consideration of society interest:

Those firms, which follow business ethics in the society, would make every

possible effort to produce goods and services not only in the interest of the

consumers, but also in the interest of the society. These firms whould look into

out only the customers well being, but also welfare of the society.

4. Interest of small scale industry:

business ethics is necessary to safe guard the interest of small scale business firms.

The tendency of big business units is always to dominate the market and drive

away the small and medium scale units from the market.

5. Better relation with the member of the society:

business ethics is needed to develop good relation between business and society.

The relationship of business with society has various dimension such as its relation

with shareholders, employees, consumers, distributors, competitors and

government. Ethics is needed to maintain good relation among the firms on one

side and between the firm and social groups on other. Business ethics will help to

promote and protect the interest of various groups, associated with business

activities.

6. Mutual benefit:

Business ethics benefits the business firm as well as the society. The business

firm that adopts business ethics get good name in the society. It may be able to

increase confidence in the minds of the buyers who in turn would help to improve

the sales of the firms. The society can also gain due to ethical practices on the part

of the business.

7. Other Benefits:

a. Business ethics will help the firm to expand and grow.

b. It can motivate the employees to perform better.

c. It can develop customer loyalty.

d. It can help to obtain funds easily from the investors, etc.

IMPACT OF VALUES AND ETHICS ON CORPORATE STRATEGY

The corporate strategy is greatly affected by the values, ethics, and motives of the people who

are involved in its formulation process. In formulating corporate strategy, managers can not

isolate their feelings, and preferences from economic considerations. Normally, there is a

tendency on the part of mangers to impose their preference and priorities in the process of

strategy implementation.

Corporate strategy is affected by personnel values of the chief executive and of the key

executives , right from the stage of setting objectives. For instance, a chief executive with

high profit orientation would give priority to those areas which generate higher rate of return

while setting objectives, whereas a chief executive with high social orientation would give

greater importance to social factors or areas while setting objectives.

The personal values and perceptions of top executives are reflected in operational policies

framed to execute the strategy. For instance, a participate leader would encourage his

subordinate to take part in framing suitable policies required to implement the strategy,

whereas a dominant autocratic leader would himself frame the policies and impose them on

his subordinates to implement the strategy

Reconciliation - The Conflict Of Personal Values And Strategy

There is often a conflict between personal values and rational business strategy. For

strategy to be effectively implemented in the organizations, there is a need for commitment

and support on the part of top executives including the chief executives. Therefore, personal

values and preferences of the top executives must be given considerations and a strategy

based on rational considerations needs to be modified. Such a modification in the strategy

would receive support from the top executives as far as its implementation is concerned, as

they know that their values and preferences are in taken into account.

In any organization there is a need to reconcile between the rational economic

strategy and the personal values and preferences of the key executives of the organization,

and also the

conflict among the key executives. The conflict can be resolved by making an attempt to

analyse the values and preferences of different executives and then to apprise them of such

analysis so that they be may fully aware of the prejudices and biases, which influence their

behaviour. Such analysis may help the executives to do way with certain values and

preferences, which are not conducive for the growth of the organization. For instance, in one

the organizations, a new chief executive was appointed, who was born and brought in posh

environment, wanted rich interiors and exteriors of the company's head office, involving huge

sum of money, was finally convinced by the finance director that such heavy spending would

drain company's funds and that the company may face acute cash crunch.

Reconciliation of conflicts among individual values and preferences for the formulation and

implementation of strategy needs imagination, and cooperative spirit on the part of

executives. They must sort out their differences, and modify their values and preferences in

the interest of the organization. One of the best alternatives is to appoint an external expert to

frame sound economic strategy with the support of the top executives of the organization, and

the top executives should not unduly influence upon the external expert of their personal

values and preferences. However, it is to be noted that if personal values and preferences are

vital to the interest of the organization, then such values must considered in framing and

implementing the strategy of the organization.

SOCIAL RESPONSIVENESS AND STRATEGIC MANAGEMENT

Business is basically an economic activity, but in modem world it cannot concentrate only

on profit maximization. It is a group effort, as there is participation, directly or indirectly, of

the employees, customers, society, government, shareholders etc. Business can not function

independently and depend on the society for supply of raw materials, capital, labour, and

other requirements. Business is a part of society and has to follow and operate within the

limits of the environment, and, rules and regulations prescribed by the society.

There is a need to have social responsiveness in strategic management. This is because

greater social responsiveness means good business. Normally the top management takes the

major decisions in respect of social responsibility. The decisions in respect of social

responsibility are based on the personal values, views, opinions and business ethics of the top

management. Having decided to adopt social responsibility , the top management should

involve social responsiveness in all the phases of implementation and strategy evaluation will

be affected by social responsiveness. The strategist must consider the social responsibility

towards various group in strategic management.

Case study

ABOUT PARLE ² G

Parle Products has been India's largest  manufacturer of biscuits and

confectionery, for almost 80 years. Makers of the world’s largest selling biscuit, Parle-G,

and ahost of other very popular brands, the Parle name symbolize quality, nutrition and

great taste. With a reach spanning even the remotest villages of India, the

company has definitely come a very long way since its inception. Many of the

Parle products - biscuits or confectioneries, are market leaders in their category

and have won acclaim at the Monde Selection, since 1971. With a40% share of the total

biscuit market and a 15% share of the total confectionary market in India, Parle

has grown to become a multi-million dollar company. While to consumers it's a

beacon of faith and trust, competitors look upon Parle as an example of

marketing brilliance. In 1929 a small company by the name of Parle products

emerged in British dominated India. The intent was to spread joy and cheer to

children and adults alike, all over the country with its sweets and candies. The

company knew that it wouldn’t be an easy task, but they decided to take the

brave step. A small factory was set up in the  suburbs of Mumbai, to manufacture

sweets and toffees. A decade later it was upgraded to manufacture biscuits as

well. Since then, the Parle name has grown in all directions, won international

fame and has been sweetening people’s lives all over India and abroad. Apart from the

factories in Mumbai and Bangalore Parle also has factories in Bahadurgarh in Haryana

and Neemrana in Rajasthan, which are the largest biscuit and confectionery

plants in the country. Additionally, Parle Products also has 7manufacturing units

and 51 manufacturing units’ on Every nation dreams of a better tomorrow. And

every nation’s tomorrow lies in the hands of its children; children who make the

nation proud in every aspect; the young geniuses who shape the future of the

nation. So it’s important to nourish these young minds, for after all it’s a

question of the nation’s future

Filled with the goodness of milk and wheat, Parle G is a source of strength for

both body and mind. Treat yourself to a packet of Parle -G to experience what has nurtured

and strengthened the minds of millions of genius Indians for over 65years.It·s

more than just a biscuit. A meal substitute for some, a tasty and healthy snack

for many others. Consumed by some for the value it offers, and many others

forit·s taste. Little wonder that its  the Largest selling Biscuit Brand in the world.

Quality Hygiene is the precursor to every process at Parle.

From husking the wheat and melting the sugar to delivering the final products to

the supermarkets and store shelves nationwide, care is taken at every  step

to ensure the best product of long -lasting freshness. Every batch of biscuits and

confectioneries are thoroughly checked by expert staff, using the most modern

equipment hence ensuring the same perfect quality across the  nation and abroad.

Concentrating on consumer tastes and preferences, the Parle b rand has grown

from strength to strength ever since its inception. The factories at Bahadurgarh

in Haryana and Neemrana in Rajasthan are the largest biscuit and confectionery

plants in the country. The factory in Mumbai was the first to be set up, followed

soon by the one in Bangalore, Karnataka. Parle Products also has 14

manufacturing units for biscuits and 5 manufacturing units for confectioneries,

on contract.

Pack Sizes available:

16.5G,

38.5G,

60.5G,

82.5G,

99G,

209G,

313.5G,

418G,

825G

VALUES AND ETHICS

INTRODUCTION

 Values and ethics are central to any organization; those operating in thenational security

arena are no exception. What exactly do we mean by valuesand ethics? Both are

extremely broad terms, and we need to focus in on theaspects most relevant for

strategic leaders and decision makers. What we willfirst discuss is the distinctive

nature of ethics for public officials; second, theforces which influence the ethical

behavior of individuals in organizations; andthird, explore the actions strategic

leaders can take to build ethical climates in their organizations.

THE CHARACTER OF VALUES AND ETHICS

 

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. One place

where values are important is in relation to vision. One of the imperatives for

organizational vision is that it must be based on and consistent with the

organization's core values. In one example of a vision statement we'll look at

later, the organization's core values - in this case, integrity, professionalism,

caring, teamwork, and stewardship

- were deemed important enough to be included with the  statement of the

organization's vision. Dr. John Johns, in an article entitled "The Ethical

Dimensions of National Security," mentions honesty and loyalty as values that

are the ingredients of integrity. When values are shared by all members of an

organization, they are extraordinarily important tools for making judgments,

assessing probable outcomes of contemplated actions, and choosing among

alternatives. Perhaps more important, they put all members "on the same sheet of

music" with regard to what all members as a body consider important. The Army, in

1986, had as the theme for the year "values," and listed four organizational

Values

-Loyalty, duty, selfless service, and integrity-and four individual

Values

- Commitment, competence, candor, and courage. A Department of the Army

pamphlet entitled

Values: The Bedrock of Our Profession Spent some time talking about the

importance of values, and included this definition: ‘Values are what we, as a

profession, judge to be right. They are more than words-they are the moral, ethical,

and professional attributes of character . . . there are certain core values that must be

instilled in members of the U.S.Army-civilian and uniformed soldier alike. These

are not the only values that should determine our character, but they are ones

that are central to our profession and should guide our lives as we serve our

Nation What does "generally considered to be right" mean? All one needs to do is to look

at the positive values of society and the organizations one belongs to, and what is

right or wrong should be evident. There is another aspect to be considered, however, and

that is the influence of societal or organizational norms. Norms are the unstated

rules, usually informally reached by the members of a group, which govern the

behaviour of the group's members. Norms often have a greater effect on what  is

and isn't done by the members of a group than formal rules and regulations. The

reason norms are important for a discussion of ethics and values is that norms

may allow or even encourage certain behaviour as "OK" that is not in keeping

with society's or an organization's stated values. When there is a disconnect

between stated and operating values, it may be difficult to determine what is

"right." An example might be a company that has among its stated values to

treat everyone with dignity and respect, but whose norms have permitted and perhaps

even encouraged a pattern of sexual harassment over a number of years. Do those

in the organization know that the behaviour is wrong, but condone it

nevertheless? Is it clear to the Bosnian Serbs that ethnic cleansing is unethical

and wrong, or would it fall under the mantle of behaviour that is considered to be

acceptable in that society? Listen to the arguments in support of ethnic cleansing

that have been made, and you will find that many of the perpetrators argued that

they did nothing wrong, and were only righting previous wrongs done to them.

THE PUBLIC TRUST

 If ethics and morality are important for groups and organizations, they should

also be important for public officials, and for very much the same

reasons. YorkWillbern, in an article entitled "Types and Levels of

Public Morality," argues for six types or levels of morality (or ethics) for public

officials. By public officials, he means those who are in policy making positions

in public institutions; in other words, strategic decision makers in the

government, including the national security arena. The six levels he

differentiates are: basic honesty and conformity to law; conflicts of interest;

service orientation and procedural fairness; the ethic of democratic

responsibility; the ethic of public policy determination; and the ethic

of compromise and social integration.

WILLBERN'S LEVEL OF PUBLIC MORALITY

 ETHIC OF COMPROMISE AND SOCIAL INTEGRATION

ETHIC O F PUBLIC POLICY DETERMINATIO

ETHIC OF DEMOCRATIC RESPONSIBILITYSERVICE ORIENTATION

AND PROCEDURAL FAIRNESS

CONFLICT OF INTEREST

BASIC HONESTY AND CONFORMITY TO LAW

BASIC HONESTY AND CONFORMITY TO LAW.

 "The public servant is morally bound, just as are other persons, 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" (Willbern). In many ways, this level only describes the

basic adherence to moral codes that is expected of all members of a group or

society. There are some basics of behaviour that are expected of all if a society

is to function for the collective good.

For public officials, there is an additional reason why it is important to adhere to

these basic moral codes and laws: they have more power than  the average

member of the society, and hence more opportunity for violation of those codes

or laws. There also is the negative example that misconduct by public officials

provides.

CONFLICT OF INTEREST.

This relates to public officials, because it deals with the conflict between

advancing the public interest, which a public official is charged to do, and

advancing one's self-interest. The duty here is to ensure that the public interest

comes first, and that one does not advance his own personal interest at the

expense of the public. Willbern uses embezzlement of public funds, bribery, and

contract kickbacks as examples of pursuing personal interests at the expense of

those of the public. The requirements for public officials to divest themselves of

investments that might be influenced by the performance of their duties (or put

them in trust)

and to recuse themselves in situations where they have a personal interest are

designed to help public officials avoid conflicts of interest. Ultimately, it still

comes down to the individual making an ethical decision. Avoidance of conflict

of interest is often difficult because it is often hard to separate personal and

public interests, and because individuals as private citizens are encouraged to

pursue private interests through any legal means. One of the areas where there is the

greatest potential for conflicts of interest is where public officials deal with private

organizations which are pursuing their private interests, and where any  decision

by a public official on allocation of resources will favour some private interest.

The fields of government contracting and acquisition are two areas where the

possibility of conflicts of interest is high.

SERVICE ORIENTATION AND PROCEDURAL FAIRNESS.

This level relates closely to the last, and deals with the responsibility of public

officials to ensure their actions serve the public, and that the power they wield is used only

for that purpose. It is easy to abuse the power that comes with public office.

Procedural safeguards are designed to prevent that abuse. The moral obligation

of public servants is to follow established procedures, and not to use their power

to circumvent those procedures for their own convenience or benefit. Power must

be used fairly and for the benefit of the public. One can again think of examples

of public officials who have violated this moral charge by using their influence

and power for their own benefit or for the benefit of special interest groups, or

who have circumvented established procedures for their own benefit or

convenience. One frequent example is the use of government vehicles or aircraft

for nonofficial business. These first three levels of public morality share one

important characteristic: they all relate to the  behaviour or conduct of public

officials. These three levels are the areas that get most of the attention in

discussions of ethics, this is where public officials are most likely to get in

trouble. However, there are three additional levels of public morality equally

important. These deal with the content of what public officials do, "the moral

choices involved in deciding what to do, in pursuing the purposes of the state and

the society" (Willbern).

THE ETHIC OF DEMOCRATIC RESPONSIBILITY

Given that public officials are operating within a democratic system, they either

are elected by the people or appointed by an elected official. This confers upon

them the obligation to carry out the will of the people. However, public officials

also have the responsibility to make moral choices consistent with their own

values, and that may be in conflict with what they perceive to be the will of the

people. Willbern contends that  the public official acts according ng to his or her

own judgment, rationalizing that it would be the  will of the people if they were

well enough informed on the issue. To give one example of this level of public

morality, consider whether or not the representative in Congress is morally

bound to support policies and legislation which his  constituents overwhelmingly

support but he personally opposes.

THE ETHIC OF PUBLIC POLICY DETERMINATION.

This level involves the most difficult ethical choices, because it concerns making

moral judgments about public policies. The responsibility is to make moral

policies; the difficulty is in determining how moral a policy is. Public policies

almost always deal with very complex issues, where ethical choices are rarely

clear, and it is often difficult to determine if a policy is right or wrong.

For example, many public policies deal with the distribution of limited resources.

Is it right or wrong to slash funding for one program, or to increase funding for another?

In almost any decision, there will be winners and losers, and there will be some

benefit for some and cost to others. "Right" and "wrong" may not apply. Equity

and fairness are important considerations, but not always easy to discern. The

determination of how much funding to provide for national security, and which

social programs to fund, involves ethical choices of the most difficult type. What

is the difference between equality and equity? Consider the controversy around

affirmative action programs: are they examples of moral public policies?

THE ETHIC OF COMPROMISE AND SOCIAL INTEGRATION.

 This final level deals with an area not as salient as some of the others. It deals

with the necessity for compromise in a society. A society with irreconcilable

differences on fundamental issues will be torn apart. Hence, it becomes a moral

obligation of public officials to engage in give and take, working toward compromise in

the policies they develop. One often sees legislators in our political system

establishing positions where they may not get all they want from particular

legislation, but will settle for some of what they want. Willbern contends that

compromise, rather than standing on principle, is moral, because without

compromise there will be discord and conflict, and disintegration rather than

integration of the society. Public officials are given the trust of the public to

develop and carry out policies that are in the public's best interest. Living up  to

this trust has a significant impact on the national will; public confidence is

essential to the exercise of national power. Public officials have a moral duty to act in a

trust worthy manner. Why, then, do individuals  behave unethically? One reason

is the complexity of the issues leaders deal with, and the difficulty in many

instances of determining which the most ethical alternative is. There are several

systemic factors. One is the competition for scarce resources. It is easy to slip

into unethical acts to gain a competitive advantage in the race for position or

power. A second is conflicting loyalties, which Johns labels "the most

troublesome ethical dilemma facing public officials." The Iran Contra affair is a

case of unethical behaviour on the part of  North, Poindexter, Secord, and Mc

Farlane because of misplaced loyalty to the executive  chain of command. Johns

also identifies systemic factors in groups and teams which can lead to unethical

behavior. One is groupthink, which can occur in a homogeneous group with a strong

leader. A second is the presence of ideologues: individuals who view their own

extreme positions as "right" and any opposing positions as “wrong." A third is

the organization's response to dissent. There are few incentives for

"whistleblowers" or those who try to expose unethical behaviour in

organizations. Organizational norms encourage "going along" and discourage

questioning the unethical actions of others. This can quickly compromise ethical

standards in any organization.

CAUSES OF UNETHICAL BEHAVIOR 

 INDIVIDUAL

COMPLEXITY OF STRATEGIC ISSUES OBSCURES ETHICS

COMPETITIONFOR SCARCE RESOURCES/ POWER/POSITION

CONFLICTING LOYALTIESGROUPGROUPTHINKPRESENCE OF

IDEALOGUESNEGATIVE ORGANIZATIONAL RESPONSE TO DISSENT

ETHICS IN PRACTICE

 Kenneth R. Andrews, in "Ethics in Practice," contends that there are three

aspects to ethical behaviour in organizations: the development of the individual

as an ethical person, the effect of the organization as an ethical or unethical

environment, and the actions or procedures developed by the organization to

encourage ethical behaviour and discourage unethical behaviour.

INFLUENCES ON ETHICAL BEHAVIOR 

 PRIOR DEVELOPMENT OF INDIVIDUAL AS ETHICAL PERSON.THE

ORGANIZATION AS AN ETHICAL ENVIRONMENT.PROCEDURES THAT

ENCOURAGE ETHICAL BEHAVIOR. Most of an individual's ethical

development occurs before entering an organization. The influence of family,

church, community, and school will determine individual values. The

organization, to a large extent, is dealing with individuals whose value base has

been established. This might imply that ethical organizations are those  fortunate

enough to bring in ethical individuals, while unethical organizations brought in

unethical people. But it is not that simple. While the internalized values of individuals are

important, the organization has a major impact on the behaviour of its members, and can have

a positive or negative influence on their values. One example of the development of

ethical individuals is the service academies. In their admissions processes, the

academies attempt to get individuals of good character with the values integral to

the military profession. However, the academies also recognize that their core

values may be different than those prevalent in society, and they devote

considerable effort to the development and internalization of their core values.

As is evident from periodic breaches of integrity at the academies, e.g., cheating

scandals, these attempts to instillcore values do not always succeed. There are

three qualities individuals must possess to make ethical decisions.The first is the

ability to recognize ethical issues and to reason through theethical consequences

of decisions. The ability to see second and third ordereffects, one of the elements

of strategic thinking, is very important. Thesecond is the ability to look at

alternative points of view, deciding what is rightin a particular set of

circumstances. This is similar to the ability to reframe.And the third is the ability

to deal with ambiguity and uncertainty; making adecision on the best  information

available.

ATTRIBUTES FOR ETHICAL DECISIONS

 SEEING SECOND- AND THIRD-ORDER CONSEQUENCES-"WARGAMING"

ETHICALCONSEQUENCES OF DECISIONS

SEEING ALTERNATIVE POINTS OF VIEW-RE FRAMING

DEALING WITH AMBIGUITY AND UNCERTAINTY-MAKING DECISIONS

WITH BEST INFORMATION AVAILABLE

As important as these individual characteristics are, the influence of the

organization is equally important. The ethical standards that one observes in the

organization will have a significant effect on individual behaviour. "People will

do what they are rewarded for doing" (Andrews). The organization has its

greatest impact in the standards it establishes for ethical and unethical conduct in

its formal reward systems. Informal norms also have a strong influence on

individuals' behaviour as do the actions of the leaders of the organization.

Strategic leaders must understand that their actions, more than words alone, will

determine the operating values in the organization. The influence of the

organizational context is underscored in "Why Be Honest If Honesty Doesn't

Pay?" In this article, Bhide and Stevenson note that  there often are no economic

or other incentives to encourage ethical behaviour and discourage unethical

behaviour. They contend that it most often is the dishonest individual who gets

ahead, and that cases where unethical behaviour was punished are far outweighed by

those in which there either were no consequences or unethical behaviour was

rewarded. The Gordon Ghekkos of the world (the unethical corporate executive

played by Michael Douglas in the movie "Wall Street") often get ahead, because

they rarely are held to account for their actions. While these observations might

lead one to a cynical view of ethics in organizations, Bhide and Stevenson come

to a different conclusion. They see room for optimism despite the lack

of financial gain for ethical behaviour, or the absence of negative consequences

for unethical behaviour. Their reasoning is based in the fact that so many people

do behave ethically, in spite of the apparent lack of gain. Ethical behaviour must be

intrinsically rewarding; and most people behave ethically because it's the right thing

to do. People are guided by their personal value systems. They often "choose the

harder right instead of the easier wrong" specifically because of their intrinsic

values of what is right. hide and Stevenson make this caveat: We should remember,

however, that this...works only as long as most of us live by an honourable moral

compass. Since our trust isn't grounded in self-interest, it is fragile. And, indeed,

we all know of organizations, industries, and even whole societies in which  trust

has given way either to a destructive free-for-all or to inflexible rules and

bureaucracy. Only our individual wills, our determination to do what is right, whether

or not it is profitable, save us from choosing between chaos and stagnation.

ETHICAL RESPONSES

 Chaloupka, in "Ethical Responses: How to Influence One's Organization,"

asserts that organization members have only three choices when confronted with

unethical behaviour: exit, voice, or loyalty.

Exit

is the most direct response: if you can't live with behaviour that does not meet

your own ethical standards, leave. However, exit is not only a direct response; it

is a final one, so the personal and organizational consequences must be

considered. The most important personal consequences are the costs. Where do

you go from there? What other options are available? How marketable are you?

Can you afford the financial loss? There are specific organizational consequences as

well. Will the ethics of the organization's leader’s change? Will they do business

with someone else who doesn't have the high standards you do? In leaving, one

gives up the ability to influence the organization directly. When considering exit,

one must ask, “Could I have had more of an impact by remaining in  the

organization and trying to change it from within?"

Voice

.This means expressing discomfort with and opposition to the observed unethical

behaviour. To whom do you voice your objections? The obvious choice is your

supervisor. But what if your supervisor condones the unethical behaviour, or

worse, is its source? You may be jeopardizing your position, and maybe your

membership in the organization. A second choice is to go to senior management.

This also has potential risk. The senior leadership may be condoning or even

directing the unethical behaviour. This action may bring your loyalty into

question. If so, your objections may be covered up or ignored, and you may end

up being forced out of the organization. On the other hand, it may be that the

senior leadership is unaware of the unethical behaviour, and you may have

initiated an organizational response eliminating unethical behavior and restoring

ethical standards. A third option is to go public, to engage in "whistle blowing."

This is also risky, because it can lead to reprisals with negative consequences.

The level of risk depends on the commitment of the organization to high ethical

standards and on its willingness to encourage whistle blowing in its own best

interests. Many organizations have shown commitment to ferreting out unethical

individuals and maintaining high ethical standards by establishing procedures for

anonymous reporting of ethical breaches and safeguards to

protect whistleblowers. Exit and voice may be combined. An individual resigns

in protest and goes public with his or her reasons for leaving. This leaves the individual

vulnerable to the label of an employee who quit before being fired, but it also can

lead to increased credibility as someone acting on conviction in spite of personal

cost. Exit combined with voice is most effective if taken by someone at the upper

levels of the organization. An organization can more easily ignore the "exit

+voice" of a lower level employee than it can the resignation of a strategic

leader, followed immediately by a press conference. The widely publicized

resignation of former President Bush from the National Rifle Association over

what he viewed as extreme actions is an example of exit combined with voice. It

undoubtedly had a much greater effect on the NRA than the resignation of

someone less well known and respected. The resignation of James Webb as

Secretary of the Navy is another example of effective exit combined with voice.

Loyalty

.The final response to unethical behaviour in an organization is loyalty. This is

the alternative to exit. Instead of leaving, the individual remains and tries to

change the organization from within. Loyalty thus discourages or delays exit.

Loyalty also may discourage public voice, since being loyal to the organization

means trying to solve problems from within without causing public embarrassment or

damage. Loyalty can also encourage unethical behaviour, particularly in

organizations which promote loyalty above all. These organizations discourage

exit and voice, and basically want their members to" go along" with

organizational practices. An interesting question is, "Can an individual be loyal

to an organization by engaging in exit or voice as a response to unethical

behaviour?"Chaloupka maintains that both exit and voice must exist for

continued organizational effectiveness. Additionally, an organization cannot maintain high

ethical standards without mechanisms for eliminating unethical behaviour. Also,

loyalty is not always a virtue. Loyalty should be predicated on the organization’s

ethical demonstration that it is worthy of loyalty. If the organization

condones unethical behavior, it  relieves the individual of any responsibility to be

loyal.

BUILDING AN ETHICAL CLIMATE

 How can the strategic leaders of an organization build an ethical climate?

Andrews suggests a number of steps that foster corporate ethics.

First are the actions of the strategic leadership and the way they deal with ethical

issues. The pattern of top leaders' behavior determines  organizational values.

A second step is to make explicit ethics policies. Ethical codes are one

common example. The next step is to increase awareness of how to apply those

ethical codes. Training on how to deal with situations with an ethical dimension,

and how to anticipate situations that involve ethical choices, can go a long way toward

ethical institutional practices. Another step to increase the salience of ethics is to

expand the information system to focus on areas where ethics may come into

play. Knowing what actually is going on in the organization is essential to understanding

the ethical principles which govern behavior. The information system should also

support ethical behavior, and allow the strategic leader to know when or where thereare

potential ethical breaches so that corrective action can be taken. The realdanger is that

when unethical behavior is unnoticed, or not punished, memb erswill assume it

is condoned by the organization's leadership.

VALUES

 At the next level of culture are values

.Values underlie and to a large extent determine behaviour, but they are not directly

observable, as behaviours are. There may be a difference between stated and

operating values. People will attribute their behaviour to stated values.

ASSUMPTIONS AND BELIEFS

 To really understand culture, we have to get to the deepest level, the level of

Assumptions and beliefs

. Schein contends that underlying assumptions grow out of values, until they become

taken for granted and drop out of awareness. As the definition above states, and as the

cartoon illustrates, people may be unaware of or unable to articulate the beliefs

and assumptions forming their deepest level of culture. To understand culture, we

must understand all three levels, a difficult task. One additional aspect complicates

the study of culture: the group or cultural unit which "owns" the culture. An

organization may have many different cultures or subcultures, or even no

discernible dominant culture at the organizational level. Recognizing the cultural

unit is essential to identifying and understanding the culture. Organizational

cultures are created, maintained, or transformed by people. An organization’s

culture is, in part, also created and maintained by the organization’s leadership.

Leaders at the executive level are the principle source for the generation and re-

infusion of an organization's ideology, articulation of core values and

specification of norms.

Organizational values

 Express preferences for certain behaviors or certain outcomes.

Organizational norms

Express behaviours accepted by others. They are culturally acceptable ways of

pursuing goals. Leaders also establish the parameters for formal lines of

communication and message content-the formal interaction rules for the

organization. Values and norms, once transmitted through the organization,

establish the permanence of the organization's culture

 

STRATEGIC VISION

 A specialist was hired to develop and present a series of half-day training

seminars on empowerment and team work for the managers of a large international

oil company. Fifteen minutes into the first  presentation, he took a headlong plunge

into the trap of assumption. With great intent, he laid the ground  work for what he

considered the heart of empowerment-team-building, family, and community. He

praised the need for energy, commitment, and passion for production.

At what he thought was the appropriate time; he asked the group of 40 managers

the simple question on which he was to ground his entire talk: "What is the vision of

your company?" No one raised a hand. The speaker thought they might be shy, so he

gently encouraged them. The room grew deadly silent. Everyone was looking at

everyone else, and he had as inking sensation in his stomach. "Your company does have

a vision, doesn't it?" he asked.

A few people shrugged, and a few shook their heads. He

was dumbfounded. How could any group or individual strive to

ward greatness and mastery without a vision? That's exactly the point. They

can't. They can maintain, they can survive; but  they can't expect to achieve

greatness.

CORE BELIEFS AND VALUES

 Just as they underlie organizational culture, beliefs and values are a critical part

of guiding philosophy and therefore vision. One CEO expressed the importance

of core values and beliefs this way: I firmly believe that any organization, in

order to survive and achieve success, must have a sound set of beliefs on which

it premises all its policies and actions. Next, I believe that the most important

single factor in corporate success is faithful adherence to those beliefs. And,

finally, I believe [the organization] must be willing to change everything about

itself except those beliefs as it moves through corporate life. (Collins and Porras

1991)Core values and beliefs can relate to different constituents such as

customers, employees, and shareholders, to the organization's goals, to ethical

conduct, or to the organization's management and leadership philosophy. Baxter

Healthcare Corporation has articulated three

Shared Values: Respect for their Employees, Responsiveness to their Customers, and

Results for their Shareholders the has been studied from the point to point view of

Parle biscuits; mainly Parle-G and Parle Hide & Seek.

PARLE G – THE EVOLUTION 

Has been a strong household name across India. The great taste, high nutrition,

A n d   t h e   i n t e r n a t i o n a l   q u a l i t y   m a k e s   P a r l e - g   a   w i n n e r .   N o  

w o n d e r ,   i t ’ s   t h e undisputed leader in the biscuit category for decades. It is consumed

by people of all ages, from the rich to the poor, living in cities & in villages. While some

have it for breakfast, for others it is a complete wholesome meal. For some it’s the best

accompaniment for chai, while for some it’s a way of getting charged whenever they are low

on energy. Because of this, Parle-G is the world’s largest selling brand of biscuits. Launched

in the year 1939, it was one of the first brands of Parle products. It was called Parle Glucose

Biscuits mainly to cute that it was a glucose biscuit. It was manufac tu r ed a t t he

Mumba i f a c to ry , V i l e Pa r l e and so ld i n un i t s o f ha l f and quarter pound

packs.

Functional Departments of the Organization

1. Marketing Department 

2. Finance Department

3. HR & Personnel Department

4. Production Department

5. Engineering Department

6. Quality Department

7. R & D Department 

8. Sales & Dispatch Department

Growth and development of the organization

Over the years, Parle has grown to become a multi-million US Dollar company.

Today, Parle enjoys a 40% share of the total biscuit market and a 15% share

of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G,

Monaco and Krackjack and confectionery brands, such as, Melody, Poppins, Mango bite and

Kismi, enjoy a strong imagery and appeal amongst consumers. Then the Parle representatives

includes the production officer and the

operation’sh e a d   m a d e   s t u d e n t s   e x p o s e d   t o   t h e   p r o d u c t i o n  

u n i t   f o l l o w e d   b y   t h e manufacturing unit and packaging. The extensive

distribution network, built over the years, is a major strength for  Parle Products.

Parle biscuits & sweets are available to consumers, even in the most remote places and in

the smallest of villages with a population of just

500.T h e   P a r l e   m a r k e t i n g   p h i l o s o p h y   e m p h a s i z e s   c a t e r i n g   t o   t h e  

m a s s e s .   W e cons t an t l y endeavour a t de s ign ing p roduc t s t ha t p rov ide

nu t r i t i on & fun t o t he common man. Most Parle offerings are in the low & mid-range

price segments.

Thisisbasedonour   cu l t i va t ed  unde r s t and ing  o f   t he   Ind i an   consumer  p syche .  

The  va lue - fo r - money positioning helps generate large sales volumes for the products.

However, Pa r l e P roduc t s a l so manufac tu r e s a va r i e t y o f p r emium p roduc t s

f o r t he up - market, urban consumers. And in this way, caters a range of products to

a variety of consumers. In nutshell, the Parle name conjures up fond memories across the

length and breadth of the country.

Market profile of the organisation

It’s a brand that has held its price line at Rs 4 for 25 years now -- the price was

last raised in 1994 by 25 paise. So, it's not for nothing that Parle-G is the world’s largest-

selling biscuit by volumes. Parle is, of course, not doing it for charity. Soaring

input prices meant it opted for reducing the weight of the biscuit than increasing

the price -- first from 100 gm to 92.5 gm in January 2008, and then to88 gm in January this

year -- in line with other biscuit-makers and FMCG players. It has 1600 crore turnover. Parle-

G enjoys close to 70 per cent market share in the glucose biscuit category and p robab ly

ha s t he deepes t r e ach . I t r e aches 2 .5 m i l l i on ou t l e t s , i nc lud ing villages

with a population of 500 people, on a par with Unilever's Lifebuoy,

ITC'sc ig a r e t t e s   o r  mob i l e   p r e -pa id   ca rd s .   I t   r e a ches  2 .5  m i l l i on  ou t l e t s ,  

i nc lud ing villages with a population of 500 people, on a par with Unilever's Lifebuoy,

ITC'scigarettes or mobile pre-paid cards. It's also one of the few FMCG brands in

thecou n t r y ,  who se   cus tom er s   s t r add l e   a c r o s s   i nc ome   segmen t s .  The  

b r and   i s estimated to be worth over Rs 2,000 crore (Rs 20 billion),

and contributes moret h a n   5 0   p e r   c e n t   o f   t h e   c o m p a n y ' s   t u r n o v e r  

( P a r l e   P r o d u c t s   i s   a n   u n l i s t e d company and its executives are not comfortable

disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35

billion).Competition has, of course, been trying to wean away customers from

Parle.Britannia relaunched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-

18p e r   c e n t   s h a r e ,   w h i l e   I T C ' s   S u n   f e a s t   g l u c o s e   h a s   c a p t u r e d   8 - 9  

p e r   c e n t , according to industry sources. Even Levers had forayed into this segment in

2003and launched a glucose biscuit branded as Modern, after it acquired

the bakerybus ine s s   o f  Mod e rn .  The re   a r e   s t r ong   r eg iona l   b r a nds ,  

i nc lud ing  P r i ya  Go l d (west), Cremica (north) and Anmol (east)

CONCLUSION

E m p l o y e e   E n g a g e m e n t   i s   t h e   b u z z   w o r d   t e r m   f o r  

e m p l o y e e c o m m u n i c a t i o n .   I t   i s   a   p o s i t i v e   a t t i t u d e   h e l d   b y  

t h e   e m p l o y e e s t o w a r d s   t h e   o r g a n i z a t i o n   a n d   i t s   v a l u e s .  

I t   i s   r a p i d l y   g a i n i n g popularity, use and importance in the workplace and

impacts Organizations in many ways. Employee engagement emphasizes the

i m p o r t a n c e   o f   e m p l o y e e   c o m m u n i c a t i o n   o n   t h e  

s u c c e s s   o f   a business. An organization should thus recognize employees,

morethan   any  o the r   va r i ab l e ,   a s   power fu l   con t r i bu to r s   t o   a  

company ' s competitive position. Therefore employee engagement should be a

continuous process of learning, improvement, measurement and action. We

would hence conclude that raising and maintaining employee engagement lies in

t he hands o f an o rgan i za t i on and r equ i r e s a pe r f ec t b l end o f t ime , effort,

commitment and investment to craft a successful endeavour. Employee engagemen t i s

t he sum to t a l o f t he work p l ace behav iou r   demonstrated by the people. Such

behaviour is characterized by:·

1. Belief in the organization·

2. Drive to work to make things better ·

3. Understanding of business context·

4. Respect and support for others

5. Desire to learn new skills.

The level of employee engagement affects key results such as sales,

cu s tomer   s a t i s f ac t i on ,   and   i nnova t i on   and   emp loyee   t u rnove r .  An

engaged workforce is capable of delivering sustained differentiation and a

significant competitive advantage.