ETHICS AND ENTERPRISE EXCELLENCE ,BY MAMUTTY CHOLA.CEO,ZAMS HR CONSULTANTS.

“Just as character matters in people, it matters in organizations,” says Justin Schultz, a corporate psychologist in Denver

Ethic means habit, custom, inclination and character . Ethic is derived from Greek word ethos.One of the biggest problems we human beings face is lack of integrity, moral and ethical values in our conducts in all walk of our lives

The moral is  the sum total the ethical values. Lack of ethics in our conducts is the genesis of all problems in our  lives .Ethics are not things which can be bought in life.It has to be cultivated,internalized and institutionalized   to became a part of our lives in whatever we  feel, thing and do.

The process of sowing of the seeds of moral and ethical values must start from home , educational institution and work place and society at large.Unless theses values are internalized  as part of character, nation will suffer since no one can rise above ones’ .we all are products of environment.Ethics is not one day affairs but birth to death imperatives.

Therefore ,ethics are   omnipresent and omnipotent in our lives.It permeates and affects  us  all as human beings ;be a parents, children, teachers , preachers, public , saints,workers,managers, lawmakers, judges, rulers , and finally ,society, states and nation at large .

What is its Purpose?

Ethics are concerned with all sorts of moral decisions; how to lead an ethical life, rights and responsibilities, right and wrong language, what is good and bad and so on. Contemporary notions of ethics have been handed on from philosophy, religions, and universal global cultures. Ethics are debated in topics such as human rights, right to life, and professional behaviors.

In a business, an ethical philosophy guides an organization in its activities and decisions and the firm’s value may affect its productivity, reputation, and bottom line.

Among employees ethical behaviors ensure work is completed with integrity and honesty and employees who are  ethical adhere to policies and rules while working to meet the aims of the enterprise. An ethically positive, healthy work culture enhances morale among employees. To be productive in their current job performance.

BUILDING BLOCKS  OF ETHICAL WORK EDIFICE

·     Set deadlines for delivering even small tasks,

·     Prioritize tasks and set the most important ones in the morning, 

·     Avoid procrastination,

·     Avoid negative talk and gossip,

·     Keep a balance and deliver consistent high performance work,

·     Develop good work habits; do it right,do it now habits.

 Is there a difference between Ethics and morality in business?

Ethics focuses on the decision-making process for determining right and wrong, which sometimes is a matter of weighing the pros and cons or the competing values and interest. Morality is a code of behavior usually based on religious tenets, which often affect our ethical decisions.

Morals come from within. One's own internal compass. Ethics are more extrinsic rule sets to guide us all.Ethics relates to one’s believe and what one says and one believes - morality is what one does. Integrity is what one will have if one’s ethics matches one’s morality.

Ethics deals with codes of conduct that define company’s policies in the workplace and morality is the standards that we individually set for ourselves in regards to right and wrong.

Ethics is a map of how one makes choices. Morality is an established code that can be used to judge behavior.

I think of ethics as something that is changeable, dependent on circumstances or the understanding/norms of the time a decision is made far example, for major misconduct  either to sack or demote . Morality is more of an inherent truth that doesn't change, or changes very little.Like imposing punishment proportionate to the offence committed

CORE ELEMENTS OF A STRONG WORK ETHIC

 Of course men are born free but not equal even in nature .It is therefore ,difficult to define the elements of good work ethics, as it is such an individualistic approach and thinking. What may be good work ethics for me may not be the same for you. Much depends upon how each organization or person looks at work ethics and the moral values that each follows. What moral values you practice in daily life will define your attitude towards work and your work ethics. But there are a few common elements that are universally followed and employers look for it in their employees ;inter alia :Honesty, Integrity, Impartiality/Fairness, Alertness, Openness, Respect for others, Reliability and Dependability, Determination,Dedication, Accountability, Confidentiality, Responsibility, Legality, Competence, Professionalism, Humility and Initiative.

Deviation from ethical conducts have serious implications whatever may be one’s standing in the company,He may be worker, supervisor,manager, or a chief executive or owner.In case of juniors and administrative functionaries the consequences are loss of business, and dismissal of the concerned person.And in case of senior management personnel including owners the organisation face the existential challenges with other collateral damages to stakeholders

Here I wish to share share few corporate examples both global and Indian where the actions of top management resultant in moral turpitude and frauds and eventual closure of the enterprises

Global examples.

More and more news stories are breaking about CEOs are forced to resign or sentenced to prison for their roles amid accusations of ethics breaches and lack of integrity as per Forbes :

·       Renault-Nissan-Mitsubishi Alliance Chairman/CEO Carlos Ghosn has been charged over allegations that he failed to disclose close to $80 million in additional compensation for 2010 to 2018, hiding them with deferral schemes as well as personal investment losses he managed to transfer to Nissan in 2008.

·       TI’s CEO Brian Crutcher was ousted after just seven weeks as CEO and 22 years of working his way up in TI for undisclosed personal behavior ethics violations. Just prior to becoming CEO he had sold more than $20M in vested equity

·       Equifax’s data breach, which exposed the personal details of up to 143 million U.S. customers – or nearly half of the U.S. population –prompts CEO Richard Smith to abruptly step down, and Equifax’s shares fell more than 30% in seven days

·       Enron, The company’s failure in 2001 represents the biggest business bankruptcy ever while also spotlighting corporate America’s moral failings.And while Enron won't be the last case of corporate malfeasance, its tumultuous tale did initiate a new age in business ethics.In Enron, altogether, 16 former Enron execs including Skilling had been sentenced to prison.While Enron may be the crown jewel of corporate prosecutions, it was preceded by guilty verdicts for top execs at Adelphia Communications, Tyco International and WorldCom.

Indian examples:

Among the companies faced crisis of closure in the recent past in India  for lack ethical practices, inter alia were Satyam, Kingfissure airlines,IL&FS Nocil and many more And more than hundreds of NPA companies both in public sector and private sectors .widely reported in national media are a sad commentary indeed .

Financial criteria are not the sole yardsticks to evaluate whether a company is ethical or unethical .Some of the leading companies in the corporate world have acquired the position of eminence by following unethical practices.Names are well known in the corporate world .

That is the reasons companies despite excellent financial showing failed to earn a place in the list of  most ethical companies as per the global norms except two from among the 15,27lac listed companies in India.It speaks volume about unethical environment we operate.A direct reflection on our poor ethical work ethos in the country.A sad reflection of national character indeed.No wonder we being the 7th largest economies in the world are considered one the most corrupt countries from ease of doing business!!

When coming Indian to situation, top 10 Indian Companies in 2017 Forbes Global 2000 List of which only two companies;Tata Steel & Wipro is in list of World’s Most Ethical Companies for 2017 included among 124 honorees gloably

The assessment for the World’s Most Ethical Company is based on the Ethics Quotient (EQ) designed by the Ethisphere Institute whereby the criteria / methods followed are:

·     Ethics and compliance – 35%

·     Corporate citizenship and responsibility – 20%

·     Culture of ethics – 20%

·     Governance – 15% Leadership, innovation and reputation

The World’s Most Ethical companies has the responsibility to encourage ethical business standards across the world .Almost two-thirds of 100 venture capital (VC) investors — 64% — polled in an IBM study claim ‘unethical business conduct’ is a major reason for startups failing in India

The key to creating a just and ethical corporate culture is to breed fair and lasting business principles. Indeed, companies will be measured by the traditions they build and the way in which they manage their relationships with shareholders, communities and employees.

Leading With Ethics

In today’s high-visibility world with the constant social media attack, it’s more important than ever to ensure that, as a leader, your ethical message is consistent. Anyone out there can talk the talk, but if you don’t truly believe in the importance of ethical behavior in your business operation , it will become apparent to your employees, your peers and to the people occupying the top positions in the organisation 

To be an ethical leader in corporate arena, you must demonstrate ethical behavior — not just when others are looking, but all the time and over time. Consistently doing what's right, even when it's difficult, should be an integral part of a leader’s value systems ingrained in the company culture/,makeup. If you behave in an ethical manner when you’re in the spotlight, but avoid responsibility, cut corners and value profit above people behind closed doors, it is inevitable you’ll be found out.Therefore if you say truth all the time, you need not remember any thing goes the saying.

The negative effects of failing to uphold ethics-based leadership and behavior are legion. A recent example is Airlines,steel sector, telecom Banking sector ICICI, large numbers of PSU BANKS. under CBI LANCE .The genesis of Public sector banks being NPA net is the consequences of corrupt lawmakers  almost 43% of them have criminal background!!

If you model ethical behavior, you can have a positive effect on your organization — even if you only start with your own department or team. The trust that ethical leadership builds is infectious. When you consistently act in an ethical manner, you’ll earn respect, and your integrity will serve as a model for others in the organization.

Out of lakh ; only two companies qualified to be recognised  most ethical companies goes to show a in poor light India’s work ethics.

In India corruption is neither face based , nor need but it is greed based,Only those who do not get chance to deviate do not deviate !!!

       CONCLUSION

Today the notion of ethics is extremely widespread. They are an important part of our personal and our working life. With a positive work ethic, individuals can become more focused and responsible regarding their work. The individual can also cultivate a sense of achievement, and this too, has positive effects on their career development, and also on the culture and productivity within the enterprise.

As we have seen, ethics are fundamentally the modus operandi of activity and any work or task where one keeps in mind the synergy and harmony of co-workers involved which is simply one’s demeanor with respect to others, and towards work.

However no individual, family, community, or nation can progress on the path of excellence unless their value systems are deeply rooted in moral and ethics .The fountain head of  all right feelings, thoughts and actions!Here roles of family, educational institutes and work place are decisive.It s an on going process from womb to tomb!!No human activities are exempt.Deviation will be recipe for self destruction without exception.

Pepole’s power being seamless therefore must be nurtured deep in the ethical values for evolution of right work culture for organizational excellence.