Reference no: EM133052673

India's Tata Steel, one of the largest steel makers in the world, is serious about ethics. As evidence of that fact, consider the following:

-The company sponsors an annual Ethics Month featuring ethics pledges, online quizzes, film festivals, and other events that commemorate and reinforce corporate values: integrity, unity, responsibility, pioneering, and excellence.

-Tata hired an ethics officer at the senior management level before many other large corporations.

-Leaders were appointed to oversee implementation of the firm's code of ethics in each department and were rewarded for their efforts.

-When rolling out the code of conduct, awareness programs were held for the families of executives. Ethics staff hoped that family members would feel a stronger ethical connection to the company and would encourage employees to follow the ethics code.

-Tata's board fired a CEO, in part, because he didn't uphold the ethical standards of the company.

-Company officials publicly honor "reputation champions" who demonstrate exemplary ethical behavior.

-The firm publicizes code violations and disciplinary actions (but not the names of offenders) to the workforce.

-Tata was the first company in India to conduct a social audit.

-In 75 years, the steel maker has not suffered labor unrest.

-Tata engages in a wide variety of social programs addressing everything from rural development and marginalized communities to family planning and sports activities.

-The steel manufacturer is regularly named to the world's list of most ethical companies for its ethics compliance program, corporate citizenship, governance, leadership, and reputation.Tata Steel's ethical commitment can be traced back to Tata Group founder Jamsetji Tata, who started the company in 1868. Tata believed that business should serve society:

We do not claim to be more unselfish, more generous or more philanthropic than other people but we think we started on sound and straightforward business principles, considering the interests of the shareholders our own, and the health and welfare of the employees, the sure foundation of our success.

1. Tata family members helped carry forward the founder's ethical legacy over the next 150 years. Today, company leaders continue to take ethical inspiration from Jamsetji Tata. They tie their code of ethics to his values and ideals. Their stated goal is to remain true to his vision. The firm's Ethics Month is held in July, which is the month of Tata's birthday. The founder's words and picture appear on the website.

Tata Steel's ethical stance has not made it immune to moral miscues. Two of Tata's British executives were charged with falsifying quality reports. Company officials are accused of failing to protect retirees in Britain. Environmental groups criticized the firm for helping build a port next to a sensitive Indian wetland. Despite the setbacks, however, ethics continue to matter at Tata Steel. Jamsetji Tata's values and ethos appear to be embedded in the firm's DNA.

Questions:

-What other companies are known for their outstanding ethical reputations?

-How do you determine if an organization is serious about ethics? Have you been a member of such an organization?

-How important is an organization's ethical culture when deciding whether to take a job offer?

-If you were assigned to organize an Ethics Month at your organization, what kinds of activities would you plan?

-Do you think publicizing code violations and punishments is an effective way to deter ethical misbehavior?

-Should other companies follow the lead of Tata and brief the families of their employees on their codes of ethics? Would such an approach be effective in Western societies?