Scope of Ethics Management

After understanding the basic concept of Ethics Management as a managerial function to regulate the conduct of employees through the code of conduct, let us now understand its scope. The scope of Ethics Management is wider than other managerial functions in an organization. An ethics officer should have knowledge of other managerial functions like HR, Finance & Audit, Operations/Production, etc. In every organization, there is a need for performing full time ethics functions. The officers entrusted with such functions must have a thorough knowledge of the mission of every department in the organization. When there is no full-time ethics officer, the other managerial staff should perform the ethics managerial functions in their respective departments.

Public places

Ethics Management is not confined merely to the place of work but also to the public places where the employee concerned has to interact with peoples of other walks of life.  The other managerial functions are confined only to the place of work or to the places where the jurisdiction of the organization is in force.  Ethics Management pervades all managerial functions.

Ethics beginning at home

Employees have to practice ethics at home and their ethical conduct extends to their places of work. The moral character of employees which is revealed at home does not change in the place of work. Parents at home are the ethics teachers for their children studying or working.  Parents have to keep an eye on their children in their places of education or in their places of work. When the young people take up careers in government, bank, MNC, etc, parents have to take initiative to interact with them about their work environment. Even if the parents are not well educated, they can inculcate virtues of honesty into their children. They should know how they spend their salaries, how they interact with their bosses or with the clients. Young civil servants or young police officers are prone to become corrupt at the initial phase of their employment. When employees get on-the-job training or undergo management development programs in their offices, parents or elders in families should mould employees at home.  Home becomes their workshop for practicing ethics management.

A manager or an officer addicted to vices like drinking may be efficient at work. But in the long run he would become a great liability for the organization until and unless he is transformed through counseling sessions at work place. We should root out his aptitude for covetousness of money or bribery in the budding stage. Ethics Management thus begins at home and at the school/college class room. The class room continues to be a part of the employee’s development where the management teaches him ethics and values. 

Applies to all categories

Ethics Management applies to all employees, from Board to workers or from a Minister to a peon in Ministry. It has to trickle down from top to bottom. All including the Board Directors and the lowest paid employees are equal in an organization. All including Ministers, bureaucrats, officers and employees at the working levels in government are equal. Ethics Management in its punitive function does not discriminate anyone on the grounds of status, seniority and pay.

In the Central Government, the Central Public Sector Undertakings and the Central autonomous organizations, the code of conduct for employees begins with three types of conduct and it is enjoined upon all employees from top to bottom to maintain absolute integrity and to maintain absolute devotion to duty and to do nothing which is unbecoming of a Government/Public Servant. If the employee concerned does something in a public place other than his/her work place which is unbecoming of a Govt. /Public servant, he/she is deemed to have committed misconduct.  Mostly, we may not find this provision in the code of conduct in the private sector.  Ethics Management thus extends to public places where the employee even in the private sector is supposed to behave in a proper manner or ethically. There should be provision in the code of conduct for employees in the private sector for taking punitive action against the erring employees.

Extends to external stakeholders

Apart from top management and employees, Ethics Management extends to vendors/contractors, share holders, customers, etc.  It studies the behavior of vendors, etc. and frames necessary guidelines for regulating their action ethically.

Unwritten code of conduct

In the Central Govt., the Central Public Sector Undertakings/Banks and the Central autonomous bodies, there is a written code of conduct, known as Conduct, Discipline & Appeal Rules.  The code of conduct contains certain dos’ and don’ts. Additions and amendments are being made to the same every now and then.  Vigilance Management in these organizations deals with the misconduct committed by employees who violate the written code of conduct. The Vigilance Management has no jurisdiction over areas where there is no written code of conduct. But the Ethics Management has jurisdiction over areas where there is no written code of conduct. The code of ethics is written on human hearts. It works in a realm higher than the written code of conduct.

Ethics Vs Law

Ethics wins where law fails. These days, there is a clamor for stringent laws against corruption, rape, etc.  But there is no guarantee that the offenses would come to an end once such stringent laws incorporating severe punishments for the wrong doers are passed by the legislature.  Ethics Management  deals with the root of problems instead of merely dealing with problems after occurrence.  Prevention is better than cure.  The scope Ethics Management is wider than written law or written code of morals.

Decentralization of power

Ethics Management decentralizes power and authority in every organization.  It is a democratic function whereby decision is taken and authority delegated at every level.  In Indian Corporate Sector, either in Government or in private sector, superiors desire to hold authority as they want to work in authoritarian culture. A Manager has to delegate his authority to his subordinate to accomplish certain assignments instead of expecting his subordinates to look to him for instructions/decisions.  The work culture that involves delegation of powers or authority does result in job satisfaction motivation and morale of employees. 

Delegation of powers or authority results in saving time and developing and grooming successors or second line leaders.  It motivates the working level managers to work hard and to excel.  The top management by delegating powers to lower managerial officers can concentrate on policy matters and on essential tasks.

In the Central Public Sector, there is provision for delegation of powers but in fact officials or executives do not exercise their delegated powers.  The subordinate officials initiate proposals and get the approvals of the Heads of the Departments without exercising their powers fearing witch-hunt by their Vigilance Departments.  The Vigilance Department which is supposed to be the ally of the decision making officials harasses them attributing motives to their decisions.  In the private Sector, decision making process is fast.  Though there are good systems and procedures in a public sector company, there is delay in decision making process whereas in a private sector company, there is a quick decision making process but there is a dearth of sound systems and procedures.  The private sector management lacks in proper systems and procedures and in formal delegation of powers, though decisions are being taken at all levels.  If any decision goes wrong in a private sector company, then responsibility is fixed on the official who has taken the decision. 

(The author may be contacted on his email id: jobanbalagan@gmail.com)