Ethical Culture in a Company

INDUSTRIAL ANALYSIS: IT SECTOR

Over the past decade, the Information Technology (IT) industry has become one of the fastest growing industries in India, propelled by exports (the industry accounted for more than a quarter of India’s services exports in 2004-05).

The key segments that have contributed significantly (96 percent of total) to the industry’s exports include – Software and services (IT services) and IT-enabled services (ITeS) ie business services. Over a period of time, India has established itself as a preferred global sourcing base in these segments and they are expected to continue to fuel growth in the future. These segments have been evolving over the years into a sophisticated model of operations.

Indian IT and ITES companies have created global delivery models (onsite-near shore-offshore), entered into long term engagements with customers, expanded their portfolio of services offerings, built scale, extended service propositions beyond cost savings to quality and innovation, evolved their pricing models and have tried to find sustainable solutions to various issues such as risk management, human capital attraction and retention and cost management. A key demand driver for the Indian IT services and ITeS industry has been the changing global business landscape which has exerted performance pressures on multinational enterprises.

According to the Nasscom-Deloitte study, the IT/ITES industry’s contribution to the country’s GDP has increased to a share of 5. 2 per cent in 2007, as against 1. 2 per cent in 1998. Further, the IT and BPO industries are poised to clock revenues worth US$ 64 billion by the end of fiscal year 2008, registering a growth of 33 per cent with exports expected to cross US$ 40 billion and the domestic market estimated to clock over US$ 23 billion, according to a study. Simultaneously, the Indian IT services market is estimated to remain the fastest growing in the Asia Pacific region with a CAGR of 18. per cent, as per a study by Springboard Research.

India’s IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services. Outsourcing A research by Gartner forecasts India as the undisputed leader in the outsourcing space in the year 2008. The country’s IT exports have, in fact, come quite far, starting from a few million dollars in the early 1990s.

The Government expects the exports turnover to touch US$ 80 billion by 2011, growing at an annual rate of 30 per cent per annum. No wonder, twenty-nine India-based companies have been listed among the best 100 IT service providers in a new survey carried out with a view to assist business heads of major outsourcers identify reliable, innovative and tech savvy partners. . India’s IT potential has attracted multinationals to grab a share of the pie and cash in on the IT boom. India offers a market with very high returns for multinationals flocking to invest in their India units.

Also, the increase in purchasing power and the rapid business expansion of the small and medium enterprises (SMEs) holds promise for global information technology (IT) giants who look at a 100 per cent year-on-year growth in their small and medium businesses (SMBs) market in India.

Growth: According to the global infotech analyst International Data Corporation, the Indian IT and ITeS market is estimated to grow at the rate of over 16 per cent to become a US$ 132 billion industry, significantly, the domestic market alone is expected to become over US$ 50 billion, with a CAGR of about 18. per cent. Simultaneously, the IT and ITeS exports are estimated to more than double to US$ 78. 62 billion in 2012. The Indian IT and ITeS industry had recorded a growth rate of 22. 4 per cent in 2007 to become a US$ 60. 57 billion industry, US$ 49. 47 billion in 2006.

COMPANY ANALYSIS ORACLE FINANCIAL SERVICES SOFTWARE LIMITED

Oracle Financial Services Software Limited provides comprehensive IT solutions exclusively to the financial services industry worldwide. They have serviced over 825 customers in more than 130 countries through their portfolio of products and services.

Oracle Financial Services Software Limited’s de-risked revenue model continues to deliver consistent results despite changing global economic conditions. The company is not overly dependent on any one country or geographical region and has a diversified revenue stream from a widespread customer base. Oracle Financial Services Software Limited solutions – Addressing the entire financial services space through a comprehensive portfolio of products, IT services, consulting and knowledge process outsourcing services.

Oracle Financial Services offerings are part of Oracle’s solutions for banking Oracle Financial Services Software, a majority-owned subsidiary of Oracle, is a leading provider of banking solutions. Oracle FLEXCUBE is a complete banking product suite for retail, consumer, corporate, investment and asset management, and investor servicing. Oracle Daybreak helps banks reduce risk and increase productivity throughout the consumer-lending cycle. Oracle Reveleus delivers a suite of analytical applications for multi-jurisdictional Basel II compliance and risk management.

And the Oracle Mantas Behavior Detection Platform is the industry’s most comprehensive solution for anti-money laundering, detecting risk, and enhancing customer relationships. The decade-old relationship between i-flex and Oracle Financial Services Software Limited was further strengthened in 2005 at a strategic level. In August 2005, Oracle Corporation announced that it would buy Citigroup’s 41 percent equity interest in Oracle Financial Services Software Limited and floated an open offer to purchase up to an additional 20 percent ownership from existing shareholders.

Oracle has expanded it’s investment in Oracle Financial Services Software Limited to become a majority stakeholder in the company. Together, i-flex and Oracle Financial Services Software Limited offered the most comprehensive product footprint for Banking, Capital Markets and Insurance available in the market today. The depth of the product offerings combined with the global reach and world-class expertise in successfully delivering solutions for financial services industry make this partnership the most potent combination in the industry today.

ETHICAL CULTURE

Ethics have begun to play a very important role in the study of organizational behavior and in the relations between organizations and the environments in which the organizations work. It has been recognized that behaving efficiently and effectively. It is not always easy to differentiate between ethical and unethical behavior. The ethical dimensions of an action vary from person to person and situation to situation. What may seem unethical in one scenario may be perfectly acceptable and even desirable in another scenario.

Definition of Ethical Culture: Ethical culture is usually defined as the documented systems and procedures that articulate a shared perception of the organization’s values, of what behavior is right and what behavior the organization expects from its members in certain situations. Organizations usually articulate this ethical culture in written form or formal structures, such as:

• Codes of ethics.
• Client characters.
• Organizational rules.
• Compliance procedure.
• Policies and systems.
• Reward and incentive programs.

There are also other formal systems used to reinforce ethical culture such as disciplinary and enforcement mechanisms, ethics training and training in the organization’s values, objectives and strategic goals. Informal mechanisms include expectations about obedience to legitimate authority, peer behavior and other ethical norms. Promoting an ethical culture by rewarding ethical activities and by giving signals to employees/advisers that the organization expects certain types of behavior in certain situations, can be a positive force on individual behavior and decision-making6.

Reward and incentive programs can be used in particular for this purpose. The ethical context of an organization can influence its operations, the decision-making of its members and their behavior in many ways. First, the ethical context of an organization plays a major role in addressing specific unethical behavior particularly in advisers. Second, poor ethical decision-making and unethical behavior can be a function of a weak organizational system where acceptable ethical behavior is not clearly defined and an ethical culture is not promoted.

It is possible to integrate compliance systems with the ethical context to assist the organization to manage both regulatory and reputation risk. To do this, the organization needs to decide what values it seeks to champion and what decision-making processes it will promote to support these values. Responsible officers or compliance managers can begin this process by taking a number of steps:

1. Understand what the existing ethical climate is;
2. Identify the firm’s values, priorities and decision-making processes;
3. Review how the firm articulates its ethical culture and the documents and systems it uses to do so;
4. List the particular ethical risks or issues that the organization faces;
5. Compare this to the organization’s existing ethical climate and culture;
6. Will the existing ethical context allow the organization to ensure those risks are minimized or will it exacerbate those risks?
7. Determine whether the organization’s ethical context fits with the organization’s values and strategic aims;
8. Consider any potential conflicts that might arise between the existing ethical context and the company’s goals;
9. Design a strategy for changing or strengthening the ethical climate and ethical culture so as to ensure alignment.

In performing these steps, a number of questions should be asked, including:

1. Does the organization have a values statement/code of conduct?
2. Is it clear and does it really set out the organization’s values and what it believes in?
3. Does it align with organizational vision and support goals, strategy and desired behaviors?
4. Does the organization’s induction and training programs instruct staff on organizational values and ethical decision-making?
5. What percentage of staff believe management adhere to organizational policies and codes of conduct?

For example, the organization may have a law and codes climate which predominates and which is clearly articulated in the organization’s documents, systems and training. This climate may also be appropriate given the extent to which financial service organizations and financial advisers are governed by government regulation and professional standards. However, as markets, regulations and strategic goals change so do the ethical risks to the organization. In turn, the ethical context may need to change, as it may no longer match the new demands on the organization.

The existing ethical climate and culture of the firm might also be working against the organization’s ability to meet objectives, thus requiring change.

DATA ANALYSIS

Oracle Financial Services Software Limited believe that the concepts of Code, Character and Conversation provide a good framework for thinking about infusing ethics into organization culture Code of conduct and ethical policies in Oracle Financial Services Software Limited policy is that all decisions on behalf of the Corporation adhere to the highest standard of integrity. In many circumstances, this imposes a greater than is established by law of regulation.

The Oracle Financial Services Software Limited code of conduct and ethical policies are the basis for ethical behavior in their business dealings with customers, regulators and communities in which they operate. Code of conduct: The Oracle Financial Services Software Limited code of conduct provides a framework of Oracle Financial Services Software Limited’s values and ethical standards. The following principles must be applied in their day to day business. All decisions and actions must conform to all applicable laws, regulations and corporate policies.

Business must only be secured for Oracle Financial Services Software Limited on the basis of their belief in competitive market systems and the appropriateness of earning a profit by providing their customers with effective service. Individuals must be trustworthy and honest in all actions and relationship in behalf of Oracle Financial Services Software Limited. Situations where personal interests conflict, or appear to conflict, with the interests of Oracle Financial Services Software Limited, or its customers must be avoided and prudently dealt with.

The results of each action or decision must be fair and even handed to all parties to the transaction or event, in both the short term and long term. Each decision or action must be appropriate, in terms of both their sense of integrity and the security of others. It should seem appropriate even if published in a major newspaper. Human dignity and esteem must be respected in all of their dealings with others. Communication must be honest and accurate. Confidentiality must be maintained where appropriate and necessary. Ethical conduct should be acknowledged and valued by all employees and agents of Oracle Financial Services Software Limited.

ETHICAL POLICIES

Oracle Financial Services Software Limited follows the ethical policies which amplify the principles set out in the Oracle Financial Services Software Limited code of conduct. These policies apply to anyone acting on the behalf of Oracle Financial Services Software Limited, its subsidiaries, and affiliates over which Oracle Financial Services Software Limited exercises direct or indirect control. Employees and directors of these entities must understand the Code of Conduct and Ethical policies and comply with them in the discharge of their Oracle Financial Services Software Limited related responsibilities.

Supervisors and managers have additional responsibility to help their staff understand and apply these values and to maintain an environment that promotes consistent compliance. Oracle Financial Services Software Limited encourages employees to report concerns and suspected violations of a law, regulations or corporate policy. If, as a part of the employees activities on behalf of Oracle Financial Services Software Limited, they have any concerns or issues, there is a mechanism to report these matters or seek assistance. There are two steps. Step one is to define the nature of their concern or issue.

Ethical policy regarding customers of Oracle Financial Services Software Limited company: They carefully select their customers with whom they conduct business. Oracle Financial Services Software Limited does not do business with drug traffickers, money launderers and other criminals. They seek to build sustained, comprehensive relationships with their customers and counterparties and recognize the importance of continuity of the people and priorities, which Oracle Financial Services Software Limited brings to these relationships, and consistent of purpose and presence.

At all times the confidentiality of information about customers will be maintained. Oracle Financial Services Software Limited do not offer or make payments, other inducements or provide lavish entertainment to government officials or customers in order to sell the products or services. They do offer promotional gifts to their large classes of customers. (eg. , credit card and consumer account opening promotions) Oracle Financial Services Software Limited makes sure that other their legitimate associations permitted by law, their employees should not discuss or enter into arrangements with competitors.

Ethical policies to investors: All assets (including the goodwill of the company) and facilities owned by the company are used solely foe Oracle Financial Services Software Limited business. They must not be used for personal benefit or personal consumption except where permitted or authorized by Oracle Financial Services Software Limited in line with the local market practices and laws. Each of the Oracle Financial Services Software Limited employees is responsible for safeguarding Corporate assets under their control. Assets include physical property, intellectual property (computer programs and models)

The data and records should managed accurate and complete all times. If any one of Oracle Financial Services Software Limited employees violates these rules then the respected person is subjected to disciplinary action, termination of employment and/or legal proceedings. Ethical policies regarding employees: Oracle Financial Services Software Limited seek to recruit, develop and retain the most talented people. Oracle Financial Services Software Limited and its employees must continually take positive action to ensure equal opportunity in employment and a business environment free of discrimination.

They reward people based on corporate, relative and individual performance, teamwork and results. There is no place for discrimination to employees. Safety of people in the workplace is a primary concern of Oracle Financial Services Software Limited. Oracle Financial Services Software Limited employs the relative of Oracle Financial Services Software Limited employees as long as it does not create a potential conflict or the appearance of a conflict of interest. Employees of Oracle Financial Services Software Limited should not accept gifts from customers or suppliers.

In situations where refusing or returning the gift is truly impractical or would adversely affect the relationship they can accept but put it on public display. Oracle Financial Services Software Limited encourages every employee to take an active interest in governmental processes. However, any participation in a potential process is done as an individual, not as a representative of Oracle Financial Services Software Limited. Ethical policies regarding suppliers: It is a policy of Oracle Financial Services Software Limited to purchase all equipment, supplies and services on the basis of quality, utility and price offered by the vendor.

Oracle Financial Services Software Limited must not leave any vendor with the impression that it is necessary or useful for the vendor to purchase products or services offered by Oracle Financial Services Software Limited or its subsidiaries. DATA INTERPRETATION: Findings: Oracle Financial Services Software Limited ethical policies are complied not only regarding employees but also customers, suppliers, investors. Oracle Financial Services Software Limited ensures that employees are made to know the ethical policies as soon as they enter the company.

Supervisors and managers are responsible to help their staff understand and apply these values in their working environment. Oracle Financial Services Software Limited takes decision on the basis of ethical values so that it should not harm the parties involved in the decision. When there is a conflict between the employee concern and Oracle Financial Services Software Limited ethical policy Oracle Financial Services Software Limited has procedures to solve those conflicts which help the employees as well as the organization.

The ethical policy regarding customers gives goodwill to Oracle Financial Services Software Limited from customers. The customers have great belief in their quality of service Oracle Financial Services Software Limited provides them. Investors of Oracle Financial Services Software Limited are ensured that all the assets including tangible as well as intangible are maintained properly which is complied in the ethical policies. All the matters regarding the Oracle Financial Services Software Limited are accurate and confidentially maintained.

The employees are happy with ethical policies regarding them because all the policies relating them are in such a way that it protects the concerns of the employees also. They are treated equally and the reward given to them are based on their performance only. Oracle Financial Services Software Limited ensures any activities regarding the employees done outside the organization can be done unless it does not affect the organization. If the employees violate any rules or did any unethical activity they are given immediate termination. The main unethical activity considered is harassment.

The other unofficial unethical activities are comes to office after having drunk, smoking in the prohibited areas of the organization. The rules and regulations are very strict and employees fear to do any unethical activities.

CONCLUSION

The ethical context of an organization plays a major role in addressing specific unethical behavior in employees and advisors. Poor ethical decision-making and unethical behavior in financial advisers can be exacerbated by a weak organizational system where acceptable ethical behavior is not clearly defined and an ethical culture is not promoted.

An effective ethical context should be contributing to the types of ethical choices and conduct that the organization wants from its employees/ advisers; and the quality and consistency of ethical decision-making. Ethical context of the organization for which employee work can influence in the ability to meet its obligations, to provide services in an efficient, fair and honest manner, its reputation within the marketplace, and the quality of the advice that will be given to clients.

BIBLIOGRAPHY

1. www. google.com
2. www. altavista. com
3. www. yahoo. com
4. www. iflex -solutions. com