Feature

Why ethics policy is a necessity

Vinutha V on how effective implementation of ethics policies can aid an organisation’s business growth.

Information technology is the most fundamental area of ethical concern for business in today’s scenario. The information age is the one we live in today, and with it comes the age of ethics. Information technology companies require their own code of conduct or ethics policy. This is because this sector involves a large pool of information data and the violation of the same may hit the business itself. Few years ago, ‘License Raaj’ dominated the economic sector in India. On the other hand, when the IT sector boomed, it wanted to come out with its own norms and standards in the way it dealt with its customers, suppliers and governments. It started working in two ways—IT companies were mainly associated with international customers and partners, who also laid emphasis on ethics and transparency in business. The other is the ‘knowledge workers’ of the IT sector aimed to bring in social changes by way of implementing and practising ethics policies.

When we deal with the new technologies introduced every day, we need to decide what we must consider ethical and unethical. We must take care of all factors so that the use of the information, readily available to many, is not abused. Ethics are a personal code of behaviour. They represent an ideal we strive toward because we presume that to achieve ethical behaviour is appropriate, honourable and desirable—both on a personal level and within the groups we belong to. Transparency and honesty are the building blocks of any ethics policy, and the reason why the IT sector has raised above the bar is just because it practises these thoroughly.

Need to fill in policy vacuums

It’s not just the IT sector, in the recent past even the non-IT sector such as manufacturing also started following the footsteps. But in the IT sector, changes or implementation of new things can be brought faster. “The concept of being financially honest was emphasised in IT companies to a greater extent. Both Indian and international software companies started operations sticking to certain principles and importance on ethics policies was one of those,” says Hari Iyer, Culture Officer, Sasken Communi-cations.

Additionally, these companies began thinking on bringing positive changes in the society. As we stand on the top of the information age, the social and ethical implications of information technology are enormous and mostly unknown. “IT is developing so rapidly that new possibilities emerge before the social consequences can be fathomed. New social or ethical policies for the information age, therefore, are urgently needed to fill the rapidly multiplying ‘policy vacuums,’ which is a complex social process that will require active participation of individuals, organisations, and governments—and ultimately the world community,” says Uday Kiran, Head, HR, Altair Engineering.

Focus on transparency and honesty

IT firms do stress on their business ethics, corporate governance and transparency of operations. Unfortunately, the ethics policies are limited to financial dealings to a larger extent. Mental or intellectual honesty is not given the due importance. For instance, when people are given a joining date, they do not turn up. Instead, they bargain it for a better offer. This kind of intellectual dishonesty can affect the business of the company. But, none of the companies is tackling this to avoid losses, complains Iyer. Well-articulated ethics follow the formulation of policies. Each company needs to develop its own unique code of ethics based on the core values of the business. But at the bottom-line, formulation of ethical policies should be based on transparency and honesty with the staff. Providing clear and fair terms of treatment to all employees is just the beginning. It is a highly complex process to follow, and acquainting employees with the company’s ethics involves a 360-degree approach.

“The holistic approach of our way of informing employees includes written standards and procedures, training and communication, visible support of senior leadership, appropriate oversight and delegation of authority, auditing and monitoring, consistent enforcement and discipline, and response and prevention,” says Rahul Varma, India HR Director, Accenture.

The core values should serve as a compass to guide the decision making at a company and individual level. It is necessary to ensure that the company will operate with the highest ethical standards and achieve the vision to become one of the leading companies, bringing innovations to improve the way the world works and lives.

IT is developing so rapidly that new possibilities emerge before the social consequences can be fathomed Uday Kiran Head, HR Altair Engineering	Our holistic approach for informing employees includes written standards and procedures, training and communication... Rahul Varma India HR Director Accenture

Freedom with responsibility

IT companies give a lot of room for openness and advocate a non-hierarchical work environment. At the same time, companies should stand for data or intellectual property of customers not being violated in any form. Certain agreements that are part of the ethics policies such as Non-Disclosure Agreement, Non-Contamination of IP (Intellectual Property) and whistle blowing policy, are aimed to secure information of the company and its customers. The situation here poses major challenges as the implementation and monitoring require a lot of involvement.

It is imperative to regularly analyse and monitor whether the policies set by the company are going down well with its employees or not. “The code emphasises critical areas particular to our organisation and business model while highlighting aspects of conduct that are imperative for all employees. Our employees periodically certify their compliance with our Code of Business Ethics,” says Varma. Along with the support of safeguarding technology including firewall and e-mail tracking, IT employers strongly keep watch on employees’ access controls.

It may require approvals for just copying of CDs. On knowing any loopholes or violation of code of ethics, companies go to the extent of removing or blacklisting employees.

To foster the highest ethical standards amongst their workforce, organisations need to be effective in preventing, detecting and appropriately reporting and addressing any allegation of misconduct and violations.

For business growth

Effective ethical policies in place are holistic approach to the business growth. A sophisticated ethical policy aids in recruiting and retaining top quality people. They support fostering a more satisfying and productive working environment for employees. Adds Iyer, “Companies with high ethics can directly or indirectly help in building the image by attracting best working force, investors and reputation.”

It can be stated that ethical policies are a mirror of a company’s reputation within the community in which it operates.

Maintaining the trust of employees to ensure continued self-regulation is challenging for any company. This can be easily tackled through these policies by providing ethical guidance and resources for employees before making difficult decisions, and aligning the work efforts of staff with the company’s broader mission and vision.

vinutha@expresscomputeronline.com