ENGAGING WORK CULTURE ON SIME DARBY’SCORPORATE VALUE- “INTEGRITY”

GROUP 4(LIGHT BLUE)

PRESENTED BY:

KHOO KIM KIATMOHD NASRUL FIKRI BIN ABD RAHIMMOHD RIZAL BIN KISMATH BATCHAMOHD ZAKI BIN MOHD ZOHIRNURUL HAWA BINTI ZULKEFLYNURUL BALQIS BINTI NAZRIRAIHANA BINTI ABDULLAHSHARIFAH NAZIRAH BINTI SYED ABDUL HAMID

TABLE OF CONTENT

CONTENT PAGE

ABSTRACT i v

CHAPTER ONE : INTRODUCTION

1.1 What is Integrity? 2

1.2 Integrity in Business Context 2

CHAPTER TWO: IMPORTANCE OF INTEGRITY

2.1 The Value of Integrity 4

2.2 The True Nature of Integrity 5

CHAPTER THREE : METHODOLOGY OF INTEGRITY INITIATION

3.1 7 Principles of Business Integrity 6

3.2 Necessities of Integrity 8

CHAPTER FOUR : ENGAGING INTEGRITY IN SIME 10

DARBY WORK CULTURE

CHAPTER FIVE : CONCLUSIONS 12

REFERENCES 13

ABSTRACT

Integrity is one of the core values in Sime Darby working culture that is being

practiced in order to enhance organization success and achievement. Nowadays, we are

living in a very competitive business environment. It is inevitable that unethical action

will be taken in order to achieve desired results. Nonetheless, business environments that

emphasize integrity in their work culture will always attain recognition and awards.

Despite the principle of business integrity is ambiguous in nature, many big organizations

have a clear understanding of it and this includes Sime Darby itself which had

successfully engaged integrity in their work culture. As a result, Sime Darby

continuously contributes value to customer and well being of communities in which it

operates. Similarly, through the Management Apprenticeship Programme (MAP)

organized by Sime Darby which cultivates the working culture of integrity that is much

focused in their syllabus. Part of the program focused to instil integrity values in the

participants.

CHAPTER 1: INTRODUCTION

It has been drilled in our mindset the importance of integrity whereby without it,

an organization will eventually collapse. For instance, history has shown us that despite

once being an established organization like ENRON could collapse instantly due to lack

of integrity among their leaders and shareholders. This United States' seventh largest

corporation issued a statement drastically revising its stated profits over the past three

years. Within a month, the company was forced to declare bankruptcy where it is the

largest bankruptcy in business history and numerous charges surfaced that the company

had engaged in a repeated pattern of un-ethical and perhaps illegal practices. As a result

of the massive fraud at ENRON, shareholders lost tens of billions of dollars and many

ENRON executives, Arthur Anderson an auditing firm (that was once a BIG FIVE) for

ENRON and certain bank officials were charged. Hence, it is obvious the integrity

practiced in ENRON is questionable. Additionally, this unethical act has created domino

effect phenomena whereby a number of innocent party have to pay a hefty price namely

organization such as Arthur Anderson has to be declared bankruptcy. When the truth

reveals itself, it is difficult to ignore business ethics as an issue. Hence, the significance

of practicing integrity in an organization at all levels are justified if we wish to prevent a

history like ENRON to repeat itself again especially in our nation.

Consequently, we come out with the importance of why we need integrity in,

Sime Darby. It is necessary to implement integrity in order to achieve a stable yet

successful organization. We will also explain the value of integrity which upholds the

good qualities that Sime Darby posses.

There are 7 principles of business ethics that can implemented by Sime Darby

which would be recognizing the customers, getting opinions and feedback for

improvement, gaining customer trust, well-organized marketing, be a responsible

community contributor, maintain record keeping and respect others.

Example that can be shown from the above 7 principles, Sime Darby has already

implemented to be a responsible community contributor. Throughout the talent

management practices, Sime Darby strives to promote a performance culture and

accountability. This is also true in rewarding practices. Sime Darby believes in the

importance of adequately rewarding high performers and achievers.

Implementing integrity is very comprehensive. Here is a sample of some of the

benefits. The Management Apprenticeship Programme is one of the latest social

corporate responsibilities that Sime Darby organized. The benefits from this programme

enhances the branding name, giving back to community, develop talents and others.

1.1 What is Integrity?

According to Webster’s Dictionary, integrity is “a firm adherence to a code of

moral or artistic values.” Integrity goes hand-in-hand with character and honesty.

Integrity is what compels you to do the right thing all the time. It makes you do the small

things when nobody is looking, simply because you know it’s the right choice to make.

1.2 Integrity in Business Context

In business, the organization should have a commitment on the integrity and high

ethical standards and to compliance with applicable governmental laws, rules and

regulations. The success depends on maintaining the trust and confidence of the

individuals and groups of people who rely on the organization and with whom they do

business. The organization can accomplish this objective by conducting their self

honestly, with consideration for others, with respect for professional obligations, and with

regard for legal and regulatory requirements.

Conducting the business and the employees with integrity enables the

organization to create a supportive work environment, helps the organization attract and

retain customers and employees, and promotes the financial success. When the

organization acts with integrity, they protect their individual reputations as well as the

reputation of their company. Acting with integrity demonstrates the organization respect

for their investors and shareholders and will help them avoid or reduce penalties, fines

and liabilities.

CHAPTER 2: IMPORTANCE OF INTEGRITY

Integrity is a mirror revealing the truth about an individual or a corporation. It

involves walking the talk—not just talking it. On a personal level, integrity is measured

by what an individual does and does not do when no one is looking. Do they hold to their

values, beliefs, and ethics? Or do they compromise and do the opposite of what they

believe is right.

Integrity is the same at the corporate level. Corporate reports, filings, and

stakeholder communications state one thing when in reality the corporation is doing

something else. This inconsistency comes as a result of ignorance, market/management

pressure, or an outright willingness to deceive. Within corporations it may be the result of

one individual or a campaign of several seeking to violate an organization's governance

principles, risk posture, compliance obligations, culture, and ethical practices.

Integrity is violated when corporate policies and procedures are thrown out the

window in the quest for personal or corporate gain. From an organization's perspective,

personal and corporate integrity are two sides of the same coin. In order for a corporation

to have integrity, it must have an ethical environment with employees and business

partners willing to follow and enforce corporate culture, policies, and procedures. From

an individual's perspective, an employee or partner wants to make sure they are working

with a corporation aimed at doing the right thing and in sync with their personal values

and beliefs.

Likewise, if business integrity is actually being practised it signifies that the

organization is showing respects to all their stakeholders and shareholders.

2.1 The Value of Integrity

According to Webster’s Dictionary, integrity is “a firm adherence to a code of

moral or artistic values.” integrity goes hand-in-hand with character and honesty.

Integrity is what compels people to do the right thing all the time. It makes people do the

small things when nobody is looking, simply because you know it’s the right choice to

make.

An organization is built in integrity. An individual with flawed character will not

last in good organizations. Likewise, good people will not stay for long in bad

organizations. It’s a shame, however, that more people in today’s society don’t possess

or don’t show integrity. If more people were to practice integrity, the world would

definitely be a better place. It would especially help individuals, as they would not be

living with guilt or regret for not making what they knew to be the right choice. Integrity

is definitely a good characteristic to possess, but not too many people do.

2.2 The True Nature of Integrity

According to Alan K. Simpson once believe the following saying that “If you

have integrity, nothing else matters. If you don’t have integrity, nothing else matters”.

Without integrity at the helm of a company, a business is usually short-lived. In fact,

when business integrity is present throughout the deepest layers of a company and not

just at its surface, it becomes the heart and soul of the company’s culture and can mean

the difference between a company that succeeds and a company that falters.

Furthermore, the consequence of global competition means that customers will

simply not consider a company that shows any less than the highest level of integrity.

Since there is a wealth of competitive companies easily available and accessible via the

Internet, there is in fact no need to accept anything less than the best.

CHAPTER 3: METHODOLOGY OF INTEGRITY INITIATION

In an effort to build upon a foundation of integrity, the first requirement would be

to establish excellent rapport with clients. Based on study, the best and most practiced

method for achieving rapport is by way of Relationship Marketing. Just as it sounds,

Relationship Marketing is founded on the single and most critical characteristic, known

as “Integrity.” However, achieving true integrity with clients often leaves many an

entrepreneur bewildered, grasping for techniques and strategies that guarantee their

futures. But integrity is not something that can be grasped and then simply used. Integrity

in its essence must be so ingrained within the nature of an individual, its company and the

team members, that it remains steadfast no matter what. Without question, others sense it

and find it very attractive.

3.1 The 7 Principles of Business Integrity

At its core, integrity begins with a company leader who understands the qualities

of integrity which then filters down throughout the company into every department and

every member’s approach and attitude.

In recent research performed by the Institute of Business Ethics- an organization

which is among the world’s leaders in promoting corporate ethical best practices, it was

found that companies displaying a “clear commitment to ethical conduct” almost

invariably outperform companies that do not display ethical conduct. According to

Philippa Foster Black, the Director of the Institute of Business Ethics, not only is ethical

behaviour in the business world the right and principled thing to do, but it has been

proven that ethical behaviour pays off in financial returns. These findings deserve to be

considered as an important tool for companies striving for long-term prospects and

growth.

The following 7 Principles of Business Integrity are the basics of integrity and a

good starting off place to consider. By integrating each of these principles within a

company environment, the result will be nothing short of a major rebirth of the enterprise.

Principle 1: Recognize that customers/clients want to do business with a company

they can trust; when trust is at the core of a company, it is easy to recognize. Trust

defined is assured reliance on the character, ability, strength, or truth of a business.

Principle 2: For continuous improvement of a company, the leader of an

organization must be willing to open up to ideas for betterment. Ask for opinions and

feedback from both customers and team members and your company will continue to

grow.

Principle 3: Regardless of the circumstances, do everything in your power to gain

the trust of past customers and clients, particularly if something has gone awry. Do

what you can to reclaim any lost business by honouring all commitments and

obligations.

Principle 4: Re-evaluate all print materials including small business advertising,

brochures and other business documents making sure they are clear, precise and

professional; most important make sure they do not misrepresent or misinterpret.

Principle 5: Remain involved in community-related issues and activities thereby

demonstrating that your business is a responsible community contributor. In other

words, stay involved.

Principle 6: Take a hands-on approach in regard to accounting and record keeping,

not only as a means of gaining a better feel for the progress of your company, but as

a resource for any “questionable “ activities; gaining control of accounting and

record keeping allows you to end any dubious activities promptly.

Principle 7: Treat others with the utmost of respect. Regardless of differences,

positions, titles, ages, or other types of distinctions, always treat others with

professional respect and courtesy.

While it is most certainly an integral and positive step for a small business to

recognize the significance of integrity as a tool for achieving its desired outcomes, that is

only the beginning. What must truly be recognized for true success is that while certain

precise universal principles lead to business integrity, it is in the overall mindset of the

company and the unfailing implementation of these key elements that an enterprise is

truly defined. A small business that instils a deep-seated theme of integrity within its

strategies and policies will not only be evident among customers, associates and partners,

but its overall influence cannot help but to result in a profitable, successful company. By

recognizing the value of integrity, and following each of the aforementioned 7 principles

for achieving integrity, your success cannot be far off.

3.2 Necessities of Integrity

In our fast paced work culture, manned by technology savvy generation in a

globally competitive environment, quality and productivity became the battle cry of

corporations to stay in business. Though this is not necessarily bad, an equally important

ingredient to succeed is seemingly taking the back seat.

Knowledge and Skill--- two competencies, through the years, were given much

emphasis by the corporate world. As long as the job is done, the sales target is met;

attitude, character and habits of employees became secondary in importance.

When evaluating employees for promotion, leaders are at times in dilemma to

choose between a technically competent guy with a not so good character and a

trustworthy candidate but still lacking in skill. When the demand to fill the office is

immediate, can a business unit afford to wait? Which choice is more expensive? The

investment cost to train a trustworthy guy or the losses that may result from character

flaw? We know that skills and knowledge deficiency can be addressed by a training

program, is there an organizational intervention that can address character problem?

According to Richard Dortch, integrity involves everything about the wholeness

of our inner person, our heart, mind and will. Integrity simply means singleness:

Singleness of our purpose, singleness of our will, singleness of our hearts. There is no

dividing of the truth that splits the wholeness of what we are about. According to Mr.

Dortch further explained that the prevailing duplicity in a person's professional and

private life is a manifestation of an eroding integrity.

CHAPTER 4: ENGAGING INTEGRITY IN SIME DARBY WORK

CULTURE

Integrity in essence, calls for honesty and transparency in everything that we do.

We will be fair and honest when dealing with our customers, partners and stakeholders,

and ensure that we consistently do what we say, and deliver on our promises to the

people that we deal with. A culture of good values is not formed overnight. It is a

combination of all our beliefs, actions and experiences that eventually, like building

blocks will form the strong foundation of Sime Darby.

Likewise, in Sime Darby itself, to uphold the core value of integrity the Key

Performance Indicator (KPI) is actually being used to evaluate employees. Hence,

employees that practiced integrity in their routine work culture shall be evaluated and the

end result that shows satisfactory performance he or she shall be handsomely rewarded.

Moreover, one of the practice of integrity in Sime Darby work culture that usually

been carried out would be, the leaders of Sime Darby often enough tells the story of

Mahatma Gandhi to coach their employees in order to stay transparent and honest all

time. One of an interesting story that we stumbled upon and wish to share would be the

"Leadership by example" as an approach in leading the human capital. The story below

often used to coach can best illustrate this point.

This is a story of Mahatma Gandhi counseling a child for removing a bad habit.

A lady reached Mahatma Gandhi with her 10 year old son. She told Gandhi, “Sir, my son

has a bad habit of eating a lot of jaggery (a special kind of Indian sweets). I have been

telling him to reduce eating jaggery but he does not listen to me. Mahatma ji, the whole

nation listens to you and you are a revered personality. I am sure my son too will heed to

your advice. Please tell him not to eat too much of jaggery."

Mahatma Gandhi thought for a while and asked the lady to bring her son again after a

week.

After a week, the lady again took her son to Mahatma. Mahatma Gandhi put his hand on

the head of the boy and told him, "My dear child, don't eat jaggery too much. It can be

harmful".

The conversation ended.

The bewildered lady asked the Mahatma, "Sir, this was simple. You could have told him

the same thing last week itself!! Why you made us come again after a week?”

Mahatma told the lady," I myself used to take jaggery till last week. I needed a weeks'

time to quit eating jaggery so that I could counsel your son with conviction".

The lady bowed in reverence to Mahatma Gandhi and took leave of him.

Additionally, another integrity work culture in Sime Darby would be Integrity in

Failure Management whereby it describes the strength to admit failure regardless of what

is at stake. According to Samuel Goldwyn, movie producer, once said, "I don't want any

yes-men around me. I want everybody around me to tell me the truth, even if it costs

them their jobs."

When our means to live is at stake, our tendency is to keep silent--either to cover

for our own mistake or tolerate the deviations and misdeeds of peers in the workplace.

Personal survival is more important than the truth, silence is misconstrued as innocence.

In most cases, people remained silent for fear that his/her own "skeletons" will be

revealed, or because of "peer pressure". In some cases, the reason for silence is

"situational ethics".

CHAPTER 5: CONCLUSIONS

As a summary to sum up all the points discussed above, according to Alan K.

Simpsons once again he mentioned “If you have integrity, nothing else matters. If you

don’t have integrity, nothing else matters”. Therefore it is justified and essential from

this report for an established conglomerate like Sime Darby to continuously educating

their employees on the significance of practicing integrity. Nevertheless, an analogy that

we would like to highlight would be an organization is only as good as the foundation it

is built upon, an organization must have a foundation that is as steady as a rock.

Likewise, it is significant to practice integrity in the organization in order to develop a

solid foundation. And with this foundation of integrity, an organization like SIME

DARBY is a step nearer in “developing a sustainable future”. Nevertheless, we hereby

would like to emphasize that by addressing Integrity as a work culture in Sime Darby, we

sincerely hope that this project is able to give a new perspective to younger generation as

a guide so that they are able to incorporate integrity value into their action in future.

REFERENCES

Mayo A. Shattuck II. (2009). Principles of Business Integrity. Constellation Energy.

John Sporleder. (2009). Leadership in the Workplace: The Importance of Integrity. http://www.typepad.com

Butler Shaffer. (2006). Why Integrity Matters. http://www.lewrockwell.com

Rebecca McClain. (2009). Why Integrity is Important. http://ezinearticles.com

Frank Vogal. (2006). Integrity and Culture: The Crucial and Most Difficult Challenge for Boards of Directors. Directors monthly.

Dirk G.Baur. (2008). Corporate Integrity. The Business School, Dublin City University Press.

Sime Darby Berhad. (2008). Our Brand Book. http://www.simedarby.com

Borden Timothy G. (2005). Enron: How Did This Happen. http://www.bookrags.com/research

http://en.wikipedia.org/wiki/Integrity