RELATIONSHIP BETWEEN ETHICS &

CORPORATE EXCELLENCE

Unit -5

Dr M.B Atherya, Mgt Guru emphasized that values of

Atithi Devo Bhava (Customer is the god) Guna (Quality)

Athmanirbharta (Self reliance)

helps not only in surviving but also helps in attaining Corporate excellence

Business ethics helps in achieving corporate excellence and

helps the organization to establish culture of their own

Corporate Excellence

It is defined as the ability of the company to outsmart competitors consistently over a long period of time. Successful organizations are different from excellent organizations.

Ways Of Achieving Corporate Excellence

I.

Organizational Culture / Corporate Culture

It is the set of values, dominant beliefs and guiding norms of behavior for its employees. It is the climate, the mental attitude shared by the members of the organisations.

Values are the bedrock of any corporate culture. The corporate culture that is created must be value based.

7 Features Of Organizational Culture

1. Innovation & risk taking

2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation

6. Aggressiveness
7. Stability

Functions Of Organizational Culture

1. It plays a boundary defining role i.e. creates a distinction between one organization an others 2. It conveys a sense of identity 3. It facilitates the generation of commitment to something larger than ones individual self interest.

4. It enhances social system stability. It is the social glue that hold

the organization together by giving standards for what employees should say and do

5. It serves as a sense making and control mechanism that

guides and shape the attitudes & behavior of employees.

Ways for Creating an ethical organizational culture

Be a visible role model Communicate ethical expectations

Provide ethical training

Visibly reward ethical acts and punish unethical ones Provide protective mechanisms

II. Corporate Mission Statement

It consist of its long term vision of what it seeks to achieve and reasons for its existence. It incorporates the ethical values that the organization strives to use in order to achieve corporate excellence. In order to get corporate excellence the organization would

need to balance ethical values and mission with commercial

considerations. TISCO (Tata Iron and Steel Company Limited) is the first

company to conduct Social Audit.

Social various

Audit

is

The

process

of code

evaluating of

firm's and

operating

procedures,

conduct,

other factors to determine its effect on a society.

The goal is to identify what, if any, actions of the firm have impacted the society in some way.

A social audit may be initiated by a firm that is seeking

to improve its cohesiveness or improve its image within the

society.

Mission Statement Of Coca Cola

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

III. Code of ethics

It is a statement of the norms and beliefs of an organization.

Codes of ethics make an employee aware of his moral

duties towards the organization but these codes cannot help to solve managerial dilemmas between social and

economic performance.
The ethics code of Johnson & Johnson is called as credo.

Credo Of

The company believes that their first responsibility is to Doctors, nurses, mothers, patients and all others who use

their products and services. Then they list responsibilities

towards

Employees Communities Responsibility to be good citizen.

IV. Total Quality Management

It is a technique propounded by Corsby.TQM defined as Management approach of an organization, centered on quality, based on participation of all its members and aiming at long term success through customer satisfaction and benefits to all members of the organization and to society The core concepts of TQM are Customer focus Continuous improvement Defect prevention Universal responsibility (Quality is everyone's responsibility)

V. Corporate Governance
Corporate governance is about how an organization is managed, its
corporate and other structures, its culture, its policies and the ways in which it deals with its various stakeholders.

Corporate governance is the overall control of activities in a

corporation. Good governance means the company is run for the benefits of stakeholders in it.

C.G is a process to ensure that the company is managed to suit the best interest of all stakeholders (internal: promoters, workmen External: shareholders, customers)

It is a conscious , deliberate and sustained efforts on the part of corporate entity to strike a balance between its own interest & the interest of various constituents on the environment in which it is operating

How a sound ethical environment in a company may be created & corporate scandals may be avoided.

Ensure that employees are aware of their legal and ethical

responsibilities

Providing a communication system between the management and employees so that any one in the company can talk and

sort out the

Ensuring fair treatment to those who act as whistle blowers. (Whistle blowers are people who tells someone in authority about something illegal that is happening in a government department or a company.