VALUE, ETHICS, MORALTHE EMERGING CHALLENGE

Amit NayakPraveen Prajapati

Ravi Pal Singh

V A L U E S

E T H I C S

MORALS

CLOSED

CLOSED

CLOSED

CLOSED

FRAUD

CLOSED

CLOSED

SCANDAL

LAYOUT

INTRODUCTIONSTAKEHOLDERS THEORYMISCONDUCTCHALLENGESMACRO, MICRO AND PERSONAL LEVELTHE KEYCONCLUSION

INTRODUCTION

WHAT ARE THESE

VALUES Our fundamental beliefs e.g. honesty, integrity, compassion, courage, honour, responsibility, patriotism, respect, fairness etc. ETHICS

It is about our actions and decisions. The ethics of our decisions and actions is defined socially, not individually.

MORALSIt is attribute to a system of beliefs e.g. excellence, quality, safety, service etc.

WHY IMPORTANT

FORBES TOP 100 COMPANIES1987

• ONLY 39 EXIST• 18 REMAIN IN TOP 100

WITHRETURN <20 % MARKET OVERALL

1997

Standard & Poor's 500-stock index 1957

• ONLY 74 REMAINED • ONLY 12 OUTPERFORMED

THE S&P 500 1997

AVERAGE CEO TENURE IN THE U.S. IS 10.5 YEARS1990 AVERAGE CEO TENURE IN

THE U.S. IS 4.2 YEARS2000

???companies without good ethics, morals and values are more likely to underperform

WHY IMPORTANT

BUSSINESSETHICS

SOCIALACCELERATEDCITIZENSAGE

POLICIESRESPONSIBILITY ADVANTAGE

APPROACHED

COM

PEN

SATI

ON CONCERNINGANSWERSBASIC CERTAIN

APPROACEHD ATTACK

AREA

S

RULE

PRINCIPLESCONTESTED

CHAR

TERS

COMPANY

MORALPHILOSOPHY

CONFORMINGCO

NSP

IRAC

Y

COMMITMENT

SERVICES

ACTIONS BENEFIT

APPR

OAC

H

BENEFICIAL

CRIM

E

BAIT

RELATIONSAVOID

CODE

S

ALLEGEDLY

CONSUMER

ACADEMICCOMMUNITY

CONTRIBUTIONS

ALSO

ATTE

MPT

ING

AMONGCONFLICTS

VALUESPROFITABILITY

STRENGTHLEGALLY CORRECT

CUSTOMER LOYALTYSTABILITY

RECOGNITION

WEAKNESSSMALL RATE OF GAIN

HIGHER COSTHIGHER OVERHEADS

VIRTUAL RESULTS

OPPORTUNITYPROMOTE CONFIDENCE

ACCOUNTABLESUSTAINABLETRANSPARENT

THREATBOTTLENECKS

ORTHODOXDECELERATES GROWTH RATE

LOSS OF SELF INTEREST

SWOT

STAKEHOLDERS THEORY

OWNERSExcellent profits

EMPLOYEES Secure jobExcellent wages

MANAGEMENT Happy workersProfits

CUSTOMERSHigh quality productsExcellent customer service

CITIZENSPay corporate taxesNo pollutionOffer good wages

SUPPLIERPlentiful business

MISCONDUCT

• MISREPRESENTING HOURS/VOLUME WORKED• MISUSE OF ORGANIZATIONAL ASSETS• SEXUAL HARASSMENT• STEALING/THEFT• BRIBES OR KICKBACKS• WITHHOLDING NEEDED INFORMATION FROM EMPLOYEES,

CUSTOMERS, VENDORS OR PUBLIC• FORGED REPORTS/FALSIFYING RECORDS

MISCONDUCTUNETHICALIMMORALAGAINST VALUES

CAUSES of MISCONDUCT

•PRESSURE•FEAR•GREED•CONVENIENCE•BOSS’S DIRECTIVES•AGGRESSIVE BUSINESS/OBJECTIVES

•ORGANIZATION SURVIVAL•MEETING SCHEDULE•BE A TEAM PLAYER•OTHERS DO IT•RESISTING COMPETITIVE THREATS•ADVANCING CAREER

CHALLENGES

MACRO, MICRO & PERSONAL

MACRO

MICRO

PERSONAL

COMPANY

MANAGEMENT

EMPLOYEE

ETHICS

MORALS

VALUES

MISCONDUCT

NTPC CHALLENGES

COMPANY LEVEL

•FUEL SECURITY•CAPACITY ADDITION•PRIVATE PLAYERS•ENVIORNMENTAL COMPLIANCE•RENEWABLE ENERGY

MANAGEMENT LEVEL

•LAND ACQUISITION•EMPLOYEE SATISFACTION•SUSTAINABILITY•CORPORATE SOCIAL RESPONSIBILITY•GRIEVANCE REDRESSAL•STAKEHOLDERS RIGHTS•STATUTORY FINANCIAL NORMS•NEW ABT

EMPLOYEE LEVEL

•MANAGING ETHICS IN THE WORKPLACE•JOB SATISFACTION AND WORKING CONDITIONS•TRANSPARENCY OF EVALUATIONS•INSIDERS TRADING •SALARY AND PERKS•GRIEVANCES•GIFTS

PMS

THE KEYEconomical Approach

Ethical Approach New Initiatives/Laws

MACRO LEVEL

ENVIRONMENTAL CONCERN

ENVIRONMENTAL CONCERN

CO2 EMISSIONS ??SOX EMISSIONS ??NOX EMISSIONS ??

FLY ASH ??etc.

To become a 128,000 MW company by 2032

ENVIRONMENTAL CONCERN

•PERSONAL ADOPTION OF PLANTATION ITS PERIODIC REVIEW AND AUDIT.•RAISE THE NORMS OF ENVIRONMENT TO EXTREME

LEVELS•RENEWABLE ENERGY SOURCES

ECOFRIENDLY LIGHTING

VAPOUR ABSORPTION AC SYSTEM

•SPONSOR PROJECTS FOR DEVELOPMENT OF BY PRODUCTS FROM GREEN HOUSE GASES OR FOR THEIR CONTAINMENT.

PROACTIVE ENVIRONMENTAL

CONCERN TO

STAY AHEAD THE BUSINESS

MICRO LEVEL

CSR & SUSTAINABILITY

CSR & SUSTAINABILITY

AIR COOLED CONDENSER

CSR & SUSTAINABILITY

•EXTENDING CSR ACTIVITIES TO COAL MINES.•COTTAGE INDUSTRY-TAILORING•GO PAPER-LESS•SUPER SPECIALITY HOSPITALS.

???

DALIMSS

VIDYUT PARISHAD

VIVEKANAND

SCHOOL UNIFORMS HERE

PERSONAL LEVEL

ETHICAL BEHAVIOUR AT WORKPLACE

MANAGING ETHICS IN THE

WORKPLACE

>Develop a code of ethics.>Communicate code & bake it into culture top-down. >Treat ethics as a process.> Ethics coordinators >Ethical awareness programmes > Guidelines for the family members of senior managers.

Benefits of Managing Ethics in the

Workplace

>Improves society.

>Maintains a moral course in

Turbulent times.

>Cultivates employee teamwork,

productivity,

>Morale and development.

>Promotes strong public image.

>It is the RIGHT thing to do!

CONCLUSION

•Business has been a prime mover in providing wealthy, healthy, rational life and exciting world.•Values, ethics and moral are important not only in business but in all aspects of life because it is an essential part of the foundation on which of a civilized society is build.•A business or society that lacks values, ethics and morals is bound to fail sooner or later.•It is required to search out those vulnerable situations in which misconduct may crawl in if careful, thoughtful reflection is not given to.•Let these creep top to down in an organization in due course of time.

REFRENCES

•NTPC 38TH ANNUAL REPORT(20013-20014).•FOURTH REPORT-SECOND ADMINISTRATIVE REFORMS COMMISS ION•ETHICAL ISSUES IN BUSINESS & CORPORATE GOVERNANCE A CASE STUDY OF NTPC-RAMAGUNDAM-HAREESH REBELLY, VIJENDER RAGIDI•VALUES & ETHICS IN BUSINESS-DISCUSSION SESSION #80, KELLEY SCHOOL OF BUSINESS.•ETHICAL CHALLENGES OF INTERNATIONAL MANAGEMENT-DR. SATYENDRA SINGH•PROFESSIONAL ETHICS IN SCIENCE AND ENGINEERING, ENVIRONMENTAL ETHICS-GORDANA DODIG-CRNKOVIC•ETHICAL ISSUES AND CHALLENGES-DR. ELIJAH EZENDU.•THE ECONOMICS OF ETHICAL BEHAVIOUR AND ENVIRONMENTAL MANAGEMENT-.STEVEN G.M. SCHILIZZI•THE CHALLENGES OF BUSINESS ETHICS – MANAGEMENT AND THE QUESTION OF ETHICS-ANTON JAMNIK

Transforming lives

http://ntpc.co.in/

Thank You

When wealth is lost, nothing is lost; when health is lost, something is lost; when character is lost, all is lost.

Billy Graham

APPENDICES

ENRON

•In just 15 years, Enron grew from nowhere to be America's seventh largest company, employing 21,000 staff in more than 40 countries.•Enron lied about its profits and stands accused of a range of shady dealings, including concealing debts so they didn't show up in the company's accounts.•The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation.•Enron was cited as the biggest audit failure and it lead to the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world.

SATYAM COMPUTERS

•The Satyam Computer Services scandal was a corporate scandal that occurred in India in 2009 where chairman Ramalinga Raju confessed that the company's accounts had been falsified. •The Global corporate community was shocked and scandalised when the chairman of Satyam, Ramalinga Raju resigned on 7 January 2009 and confessed that he had manipulated the accounts by US$1.47-Billion.•In February 2009, CBI took over the investigation and filed three charge sheets (on April 7, 2009, November 24, 2009 and January 7, 2010), which were later clubbed into one.

LEHMAN BROTHERS

•Financial services firm Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008. The filing remains the largest bankruptcy filing in U.S. history, with Lehman holding over $600 billion in assets.•In March 2010, the New York attorney general Andrew Cuomo later filed charges against the bank's auditors Ernst & Young in December 2010, alleging that the firm "substantially assisted... a massive accounting fraud" by approving the accounting treatment.•On April 12, 2010, a New York Times story revealed that Lehman had used a small company, Hudson Castle, to move a number of transactions and assets off Lehman's books as a means of manipulating accounting numbers of Lehman's finances and risks.

SAHARA

•Fully convertible debentures of Sahara India Real Estate and Sahara India Housing Investment were issued during 2008-2011 garnering Rs 17,400 crore from 30 million investors which was not found to be in compliance with the requirements applicable to the public offerings of securities. •SEBI ruled an order on 23 June 2011 directing the two companies to refund the money with interest to the investors. •Sahara group took the matter with Securities Appellate Tribunal (SAT). But SAT held the SEBI findings to be correct. •Sahara group approached the Supreme Court in August 2012. During the hearing, the apex court asked the group to repay an amount of over Rs 24,000 crore to SEBI within 90 days. But, suddenly Sahara said it had repaid most of the money over the last one year and an amount of just over Rs 5,000 crore was pending. •Sahara chief was eventually arrested on 28 February 2014 by Uttar Pradesh police on a Supreme Court's warrant.

RELIANCE POWER

•Reliance Power is developing a 4,000 MW project at Sasan and was allotted three captive coal blocks to fuel the project, which was bid for at a fixed rate to supply power. •State auditor has said Reliance Power gained Rs 29,000 crore in undue benefit from a government decision, allowing the power producer to use surplus coal from its captive block for another project it was not meant for.

SPEAK ASIA

•An online business survey firm that collected thousands of crores of rupees from over 24 lakh investors, asking them to fill surveys and guaranteeing to quadruple their income in one year, Speak Asia was accused of running a Ponzi scheme. A criminal case was registered against the firm in 2011, some accounts frozen and its business shutdown. •The Economic Offences Wing (EOW) despite promising to file a watertight case hasn’t yet filed a chargesheet in the case, even with the Bombay High Court rapping it for clubbing all the cheating cases together, leading to a delay. Speak Asia’s panelists have still not been refunded their money and its key management personnel are absconding, with no convictions made till date.•Harender Kaur, Manoj Kumar Sharma, Tarak Bajpai & others are involve in scam of Rs. 2000 and more.

BLOCKBUSTER

•Blockbuster, the former king of video rentals, filed under Chapter 11 with an outline of a reorganization plan on September 23, 2010. The company listed assets of $1.02 billion and debt of $1.46 billion.•The company, which had about 3,000 stores, seeks to shutter 110 underperforming stores by the end of March. Since the bankruptcy filing last year, Blockbuster has rejected leases on 220 locations, most of which were closed beforehand, and by the end of 2010 had closed another 72 stores.•In 2005, Blockbuster launched a marketing campaign describing changes in its late fees policy and offering "No Late Fees" on rentals. The program sparked investigations and charges of misrepresentation in 48 states and the District of Columbia, as state attorneys general including Bill Lockyer of California, Greg Abbott of Texas, and Eliot Spitzer of New York argued that customers were being automatically charged the full purchase price of late rentals and a restocking fee for rentals returned after 30 days.