Code of Ethics

Ethical codes as statements of the norms and beliefs of an organization and as the ways in which organizational leaders want others to think. The intention is to encourage ways of thinking and patterns of attitudes that will lead towards the wanted behavior.

At best, a code reflects the covenant( an agreement ) that an organization has made to uphold its most important values, dealing with such matters as : Its Commitment to employees, Its standards for doing business and Its relationship with the community.

Organizations need to formulate codes of ethics to: 1. Be a socially responsible organisation, 2. Provide guidelines for employees behaviour, 3. Comply with the law and government guidelines, 4. Establish a better corporate culture, 5. Avoid conflict of interest, 6. Make proper use of company assets and property, 7. Safeguard information; and

 Need for a Code of Ethics

1. 2. 3. 4. 5. 6.

To act as a philosophical basis To shape ethical behavior for self regulation For improving self image To take moral responsibility To provide inner strength.

A code of ethics (code) serves as a central guide to

support day-to-day decision making at work.

It clarifies the cornerstones of your organization--

its mission, values and principles helping your staff understand how these cornerstones translate into everyday decisions, behaviors and actions.
The codes are actually structured to liberate and

empower people to make more effective decisions with greater confidence.

Codes are Designed to . . .

1. Raise ethical expectations (aspirational provisions) 2. Legitimize dialogue about ethical issues (communication provisions) 3. Encourage ethical decision-making (judgment provisions) 4. Prevent misconduct provide a basis for enforcement (accountability and enforcement provisions)

The Google code of conduct

The Google code of conduct, for example,

summarizes its ethical views as "Don't be evil" on its Investor Relations web page. The detailed code states the contractors and temporary workers to follow it. Other rules within the code include: avoid conflicts of interest, respect co-workers and clients, don't retaliate against someone who reports wrongdoing and protect confidential information.

Code of conduct for Non Profit Organisation

Because nonprofits aren't expected to make money

like corporations, their codes of conduct focus on how the organizations can better achieve their missions. Nonprofits often place more value on service to their communities. An international group of medical organizations worked on the creation of a code of conduct in 2008. The "Code of Conduct for Health SystemsStrengthening" explains how medical organizations should work with vendors, treat patients, work with local governments and improve medical training.

Kraft
The Kraft code of ethics contains just 10 short rules of ethical

behavior that all employees must follow. Theintroduction to the Kraft code of ethics suggests that employees should let values guide their actions in all cases. The code also stresses that if something seems wrong, it should be addressed directly. The code includes a speaking-up policy that requires employees to speak up if they are aware of any violations of the code, even those they have committed themselves. The 10 rules are: Make food that is safe to eat; market responsibly; treat people fairly; respect the free market; compete fairy; respect the environment; deal honesty with the government; keep honest books and records; never trade on inside information; give Kraft Foods your complete business loyalty.

Colgate-Palmolive
The Colgate-Palmolive code of ethics is a long

document, but is broken down into individual areas of conduct. The code is intended as a guide to all daily business interactions and is used in conjunction with the company's business practice guidelines. The code covers 10 areas, including: Our Relationship with Each Other; Our Relationship with the Company; Our Relationship with Consumers; Our Relationship with Government and the Law; Our Relationship with Society and Our Relationship with the Environment.

The North Carolina State University

Universities and high schools create codes of

conduct to govern student behavior. The codes cover such issues as plagiarism, drug use and fighting. The North Carolina State University student code of conduct states students can participate in the school's private disciplinary courts. It also requires students to avoid helping other students cheat in classes, hazing, acting disorderly or setting off fireworks on campus.

What is in a Code of Ethics? The Code Content

Memorable title
Leadership letter Table of contents Introduction-prologue Core values Code provisions-substantive matters Information and resources

Memorable Title
The title should communicate the content clearly and at the same time be memorable enough to grab the attention of its readers. Be creative. Develop a thematic title for your code. Some examples include : SHRMs - Code of Ethical and Professional Standards in Human Resource Management, Pricewaterhouse Coopers -The Way We Do Business The World Bank Groups- Living Our Values. The title of your code should inspire ethical behavior.

The leadership letter

The leadership letter provides a frame for the document and demonstrates your organizations commitment -- from the top toward the creation of an ethical culture.
It should explain how a code can be used by the employees and outline the reasons for its focus.

Some typical content areas for the leadership letter may include:
Why does your organization need a code? Why now? What is the ethical/legal context in which your organization operates? What are some of the challenges that your employees face, and how can this code of ethics be a helpful document for everyone at all levels? What are the major trends facing your organization that will impact and affect the code and its implementation? What kind of example might this code set for others?

Table of Contents
A table of contents is there at the beginning of the code. A table of contents can give employees a quick overview of key code provisions and resources, thereby making the document as a whole more accessible and readable.

Introduction-Prologue
An introduction can be used to expand upon some issues not fully addressed in the leadership letter. Ideally, it should provide an expanded explanation for the code and its purpose.

1. Why is this code? Is it mandatory and applies to

everyone
2. What is the purpose of the code?

Be clear about the purpose and objectives that the code is intended to accomplish.
Is it meant to provide guidelines for decision-making in areas of managerial/officer discretion? Is the codes purpose to capture the spirit or ethos of the organization? Does it attempt to define and protect its culture?

3. What is the scope of the code? Jurisdiction: To whom does this code apply? What does it address? Definition: What aspects of organizational activity and impact are to be included in the code? Measurement and Verification: How should organizational performance in these areas be measured, and how should the accuracy of this information be verified? Accountability and Reporting: To whom should the organization be accountable for its performance, and how should this information be made public?

Statement of Values Core Values

Fundamental to an effective code, the organization needs to identify and express its values and those values need to feature prominently in the code not simply as a list. The code should explain what those values mean and reinforce their importance in the context of the organization and the work it does. In essence, employees need clear definitions of organizational values to better understand and apply them. When possible, tie t the values to individual code provisions. For example, if diversity is one of your organizations key values, it could be tied to a provision outlining the anti-harassment policy.

Code Provisions
As weve discussed, codes can be brief or comprehensive depending on the objective.
They address a wide variety of issues, ranging from legal and regulatory concerns to relations with the organizations staff and the application of the organizations values.

 What are the principal laws and regulations

applicable to our organization? What has gone wrong in the past? What else could go wrong? What guidance do we need to offer our employees? Where are there gray areas? What do we need to clarify or confirm?

Information and Resources

This section is critical. It will direct the employees to other resources (internal to the organization and externally) should they have a question, need to seek further clarification or simply want more information on the code provisions. It should include specific statements such as how to access the organizations ethics office (or person responsible for ethical issues) and provide details on your enforcement policy and mechanisms.

Saint-Gobain Glass India

Saint-Gobain Glass India (SGGI), a

subsidiary of Compagnie de SaintGobain, manufactures and markets a wide variety of flat glass products and solutions.

Code Of Conduct For Employees of Saint Gobain Glass India

General Standards of Conduct

We expect all our employees to conduct their business dealings honestly, openly, fairly, diligently and courteously and in a manner that enhances the image of the Group/ Company. All employees should be aware of all policies and procedures applicable to the Group/ their Company and abide by them to the fullest extent.

Equal Opportunities for All

Unless local laws or regulations require us to do

otherwise, we will recruit people solely on merit and reward people on the basis of their performance and potential without discrimination on grounds of age, race, caste, ethnic origin, religion, political or other opinion, gender, sexual orientation, marital status, or disability/disease unrelated to the role. No employee of the Group will discriminate between others based on any of the above grounds or on the basis of any other personal prejudices or biases.

Enabling Work Environment

The Group respects the rights and dignity of all employees. We aim to establish clear values and objectives so that all employees understand and are committed to the aims of the Group and clearly see their roles within it. We will seek to create a challenging environment of empowerment and continuous learning, to recognize individual and team contributions, and to reward competitively, relative to performance.

It is expected that all employees in the Group treat the people they interact with, both within and outside the Group, with respect and in a manner that their self esteem and dignity are maintained at all times. The Group is committed to provide a work environment free of unlawful harassment. Sexual harassment and harassment based on age, race, religion, caste, ethnic origin, disability unrelated to the role, marital status, sexual orientation, pregnancy/ childbirth, or any other is prohibited. No employee will indulge in or condone harassment of any kind. Our policy on sexual harassment spells out further details on this particular type of harassment

Conflict of Interest
The term conflict of interest describes any circumstances that could cast doubt on our ability to act with total objectivity with regard to the Groups/ Companys interests.No employee will be involved in any arrangement or circumstances, including family or other personal relationships, which might discourage him/her from acting in the best interest of the Group/Company.

No employee or his/her family member will act as a broker or on behalf of a third party in transactions involving or potentially involving his/her company.
Employees or their family members will not have any financial interest in any outside enterprise which is currently doing business or seeks to do business with or is a competitor of his/her Company. If the employee comes to know that his/her Company is doing business with any organisation/ individual with which he/she is directly or indirectly involved for example, through a relative he/she is obliged to bring it to the notice of his Department Head or Head-HR through a written letter/ mail.

 An employee should not be the final decision maker for any business contract or arrangement with any organisation wherein his/her relatives/ close friends are employed in key positions. In the event an employee finds himself / herself in a position of having to decide on such a contract or arrangement, he/she should refrain from taking such a decision and refer the matter to his/her superior for taking a decision, clearly informing his/her superior of his/her relationship with key personnel in the concerned organisation.

It is obligatory for an employee to declare that he/she is related to any other employee of the Group/Company as soon as he/she discovers it, through a written letter/ mail to the Head HR.

Employees shall not exploit for their own personal gain opportunities that are discovered through the use of corporate property, information or position.
No employee shall solicit or promote any personal / public cause or organization/ association during working hours.

Payments, Gifts & Entertainment

The Group/Company will not make any contribution of company funds, property or services to a political party or religious organization, or to a candidate for or holder of any Government office. No employee will offer any gifts, favors or entertainment to others that are:
not consistent with customary business practice.

excessive in value and / or could be construed as a bribe or pay-off. in violation of applicable laws or ethical standards. such that public disclosure could embarrass the Group/Company or oneself.

Usage of Groups/Company's Assets

Protecting the Groups/Company's assets is a key

responsibility of every employee. Care should be taken to ensure that assets are not misused, misappropriated, loaned to others, or sold or donated or mortgaged, without appropriate authorization. Employees may not use Group/Company assets for personal use, nor may they allow any other person to use Group/Company assets. Every employee is personally responsible for all Company funds over which he or she exercises control. Company funds must be used only for business purposes. Every employee must take reasonable steps to ensure that the Company receives good value for Company funds spent and must maintain accurate and timely record of expenditure.

Compliance
All required information shall be made accessible to the

Company's auditors and other authorized persons and government agencies. False or misleading entries, unrecorded funds or assets, or payments without appropriate supporting documentation and approval are strictly prohibited and violate Company policy and the Law. There shall be no willful omissions of any company transactions from the books and records, no advance income recognition and no hidden bank accounts and funds. No employee in any way will cause the companys accounts or other records to not clearly describe and properly state the true nature and timing of a business activity or transaction.

Procurement Practices
The Group's policy is to purchase supplies based on need, quality, service, price and terms and conditions. Suppliers should be selected based on merit, price, quality and performance. The Group's policy is to, as a rule, select significant suppliers or enter into significant supplier agreements through a competitive bid process.

Under no circumstances should any Group/Company employee, agent or contractor attempt to coerce suppliers in any way. All supplier agreements must be reviewed after a 3 year period and fresh bids invited to confirm the competitiveness of the existing supplier agreement.

Relations with Customers

The Group recognizes that our customers are of paramount importance and the Group will prosper only to the extent that we meet and exceed the needs of our customers. All employees will at all times :Recommend to customers, products that are most appropriate for their needs from the Groups/Companys range of the products.

Ensure that products supplied to customers are as per the stated quantity and specifications.
Endeavour to meet delivery commitments to customers and inform customers well in advance in the event of inability to meet delivery commitments for unavoidable reasons. Promptly respond to all queries from customers. Handle all customer complaints promptly and fairly.

Free and Fair Competition

Employees of the Group may not, knowingly, make false or misleading statements regarding its competitors or the products of its competitors, customers or suppliers. Participating with competitors in a trade association or in a standards creation body is acceptable when the association has been properly established, has a legitimate purpose, and has limited its activities to that purpose.

No employee shall at any time or under any circumstances enter into an agreement or understanding, with any competitor concerning prices, discounts, other terms or conditions of sale, profits or profit margins, costs, allocation of product or geographic markets, allocation of customers, limitations on production, boycotts of customers or suppliers, or bids or the intent to bid. Group employees may not unlawfully use the information, material, products, intellectual property, or proprietary or confidential information of anyone including suppliers, customers, and business partners. Employees should never attempt to obtain a competitor's confidential information by improper means.

Environment, Health and Safety

Employees should consider the potential impact of the activities, products and services of the Group/Company on human health and environment and should take necessary measures, over and above legal requirements, to reduce such impact.

Group companies are expected to take particular care to adopt measures necessary to ensure the best possible protection against health and safety risks in the workplace. They should take steps to minimize the risk of accidents at the workplace, follow-up on application of these steps, check actual results against the applicable standards. All employees must follow all safety practices and procedures and use the personal protective equipment provided.

Group companies are expected to actively promote the protection of the environment.

How are Codes of Ethics Developed?

Why do we need a code of ethics? How do we develop a code of ethics? Who do we include in the process?

What is the overall cost of the initiative?

What is the time commitment? What is success?

Code of Ethics Development Process: A Model 12 Step Process

1. Decide on goals and meaning of success 2. Get leadership buy-In 3. Create a code development Task Force 4. Data intake and analysis-interviews and focus groups 5. Keep leadership informed 6. Draft your code of ethics 7. Submit code to leadership for review 8. Field test the code and make any final revisions 9. Have the code reviewed by your Legal Counsel 10. Obtain Board approval of final draft 11. Decide on a Communications and Education Strategy 12. Revise and update regularly

Guidelines for Writing an Ethics Code

Be clear about the objectives that the code is intended to

accomplish. Get support and ideas for the code from all levels of the organization. Be aware of the latest developments in the laws and regulations that affect your industry. Write as simply and clearly as possible. Avoid legal jargon and empty generalizations. Respond to real-life questions and situations. Provide resources for further information and guidance. In all its forms, make it user-friendly because ultimately a code fails if it is not used.

Organizational Ethical Codes for Employee

1.Demonstrate courtesy, respect, honesty and fairness in relationships with customers, suppliers, competitors, and other employees, 2.Comply with safety, health, and security regulations, 3.Do not use abusive language or actions 4.Follow proper code of dressing 5.Follow directive from superiors. 6.Be reliable in attendance and punctuality.

 Legalistic Ethical codes

1. Maintain confidentiality of customers, employees, and corporate records/ information. 2. Avoid outside activities, which conflict with or impair the performance of duties at work. 3.There is no place for friendship or persona] gain in decision making. 4.Do not accept bribe.

5. Any payment to business, person, political organization, or public official for unlawful or unauthorized purpose is unacceptable. 6. Comply with all relevant laws, regulations and policies in the conduct of business dealings. 7. Do not provide false or misleading information to the corporation, to its auditors or a government agency. 8. Do not use company property or resources for personal benefit or any other improper purpose 9. Employee is accountable for company funds over which he has control.

Customer Oriented Ethical Codes

1.Strive to provide products and services of the highest quality 2. Perform assigned duties to the best of capability while providing customer support. 3. Convey true claims for product and services

 Personal and Cultural Ethical Codes 1. Exhibit standards of personal integrity and

professional conduct,

2. Do not discriminate on religious, class caste, racial, ethnic or sexual considerations, 3. Report questionable, unethical, or illegal activities to superiors,

4. Seek opportunities to participate in social service and other cultural activities,

5. Conserve resources and protect the quality of environment.

How Codes can be made effective

1. Management involvement and supervision. 2. Constant consciousness of these codes. 3. Stressing code values during training. 4. Recognition for conduct exemplifying desired values and standards. 5. Ombudsmen or other designated persons assigned for this purpose. 6.Thorough concentration on high-risk jobs and areas in terms of violation of code values and standards. 7. Periodic auditing to assure compliance. 8. Well-defined and fair enforcement procedures.

 Some of the crucial elements in implementing

corporate code of ethics are 1. Clarity 2. Commitment of the Top Management 3. Quality Policy 5. Building Systems 6. Communication 7. Human Resource Policies 8. Employee Training

 In the business context, the stages of ethical

consciousness are as follows: Law of the Jungle Anything for profit Profit maximizing in the short term Profit maximizing in the long term Stakeholder concept Corporate Citizenship.