Ethics and nd Ethical Pract actices in

31 December 2012

Ethics and Ethical Practices in BRAC

Prepared for Prof. Neaz Ahmed Course Instructor H501: Managing People at Work

Prepared by Faisal Mahboob Rahman Rashed Ahsan Ahsan Azhar Shopan ZR-14 ZR-17 ZR-54

MBA 47D

Institute of Business Administration University of Dhaka

December 31, 2012

Letter of Transmittal

December 31, 2012

Mr. Neaz Ahmed Professor Institute of Business Administration University of Dhaka

Sir:

We are pleased to inform you that we have completed the report as per your instruction, on the theme Ethical Practices in an Organization, as a requirement of the course, H501: Managing People at Work. The title of our report is Ethics and Ethical Practices in BRAC.

We are really thankful for the opportunity to work on this report as it allowed us to get a thorough understanding of HRM practices and helped us to gain practical insights about ethical practices.

We will be very happy to address any further queries in this regard.

Thanking you,

Faisal Mahboob Rahman ZR-14

Rashed Ahsan ZR-17

Ahsan Azhar Shopan ZR- 54

MBA 47D Institute of Business Administration University of Dhaka

Table of Contents

Executive Summary ............................................................................................................ v Introduction ........................................................................................................................ 1 1.1 Background ............................................................................................................... 1 1.2 Objectives ................................................................................................................. 1 1.3 Scope......................................................................................................................... 1 1.4 Methodology ............................................................................................................. 1 1.5 Limitations ................................................................................................................ 2 Code of Ethics...................................................................................................................... 3 2.1 General ...................................................................................................................... 3 2.2 Importance ................................................................................................................ 4 2.3 Development & Administration ................................................................................. 4 2.3.1 Issues to consider for a Code of Ethics .............................................................. 5 2.3.2 Action steps ...................................................................................................... 5 2.4 Dissemination ............................................................................................................ 6 2.5 HRM and Code of Ethics ........................................................................................... 6 The Organization ................................................................................................................ 7 3.1 BRAC ....................................................................................................................... 7 3.1.1 History .............................................................................................................. 7 3.1.2 Vision ............................................................................................................... 9 3.1.3 Mission ............................................................................................................. 9 3.1.4 Values............................................................................................................... 9 3.1.5 Objectives ....................................................................................................... 10 3.1.6 Operations ...................................................................................................... 10 3.1.7 Scaling up in Asia and Africa.......................................................................... 11 3.2 BRAC Human Resource Division ............................................................................ 11 3.2.1 Goals .............................................................................................................. 11 3.2.2 Objectives ....................................................................................................... 12 3.2.3 Operational Units ............................................................................................ 12 Survey Analysis ................................................................................................................. 16 Conclusions and Recommendations ................................................................................. 18 References.......................................................................................................................... 19

Executive Summary
An institution's Code of Ethics must reflect the organization's policies, controls and processes. While it may be tempting to short-cut the process by "borrowing" policies from other institutions under the guise of following "best practices", unless those policies, controls, and processes adequately reflect an institution's unique organization and business practices, the Code will not be effective in providing guidance or offering protection. The Code of Ethics serves as a framework for ethical decision making within an organization.

The scope of the study was based on the ethical practices an organization follows. The organization chosen for this report was BRAC and the report focused on the state of ethics in the organization. The study further investigates if BRAC has any documented guidelines on ethics and if so, how strongly do they adhere to the guideline.

A questionnaire survey was conducted at the HR division of BRAC. Upon analyzing the survey it has been found that BRAC has a very well developed written Code of Ethics. The organization ensures that the employees know the Code and certify to respect it. BRAC has a Learning Division specialized in conducting training programs for employees on various aspects including ethical practices. However, the training on ethical practices are organized on need base rather than on regular intervals. BRAC may arrange such training on regular intervals (annually or semiannually). The Code should also be reviewed on regular basis to ensure it is up-to-date. BRAC has separate ethical guidelines for home-country and hostcountry nationals which is very important for a multinational organization to continue its operations successfully in different countries. The organization allows anonymous reporting of misconduct which is very encouraging for employees to report misconducts they have witnessed or faced. However, the organization should protect the complainers more effectively. Although, BRAC employees usually do not seem to engage in extreme unethical practices, such as accepting bribes or falsify, but they do regularly pad expenses, misbehave with fellow employees and sometimes show negligence at work. The HR Division should take initiatives to prevent employees from such misconducts. According to the findings, it is assumed that the Code of Ethics in BRAC is effective and is expected to show good prospect in terms of ethical standard in the organization.

Introduction
1.1 Background At its simplest, ethics is a system of moral principles. They affect how people make decisions and lead their lives. Ethics is concerned with what is good for individuals and society and is also described as moral philosophy.

An institution's Code of Ethics must reflect the organization's policies, controls and processes. While it may be tempting to short-cut the process by "borrowing" policies from other institutions under the guise of following "best practices", unless those policies, controls, and processes adequately reflect an institution's unique organization and business practices, the Code will not be effective in providing guidance or offering protection. In this study a real life organization, BRAC was selected in order to know about its HRM practices with a focus on the State of Ethics and Ethical practices.

1.2 Objectives To analyze the State of Ethics and Ethical Practices in BRAC. To gain idea about overall Human Resource Management Practice in BRAC. To identify the role of management regarding the administration of ethical practices.

1.3 Scope The scope of the study was based on the ethical practices an organization follows. The organization chosen for this report was BRAC and the report focused on the state of ethics in the organization. The study further investigates if BRAC has any documented guidelines on ethics and if so, how strongly do they adhere to the guideline.

1.4 Methodology Information was collected from both primary and secondary sources.

Primary Data Sources Primary data was collected from the employees of Human Resource Division of BRAC. Face to Face interview and questionnaire was used to collect primary data.

Secondary Data Sources Data was collected from the Official website of BRAC Data was also collected from different related publications & websites.

1.5 Limitations This report had the limitation of focusing on only one organization so overall picture of the state of ethics in todays organization cannot be deduced. Since ethics is abstract in the sense, different people have different interpretation of it and so concrete comparisons were difficult. The study also had the following limitations: The organizational secrecy about confidential information was the main hindrance for proper data collection, more information from the firm can help to broaden the area of the work. Unavailability of enough relevant records and information. Secondary information was not up to date.

Code of Ethics
2.1 General A Code of Ethics is the collection of the rules, principles, values, and employee expectations, behavior, and relationships that an organization considers significant and believes are fundamental to their successful operation. A Code of Ethics enumerates those standards and values that make an organization remarkable and that enable it to stand out from similar organizations.

Depending on the regulator, there may be specific requirements for contents in a Code of Ethics. In general, at a minimum, the Code should contain policies on: conflicts of interest, insider trading, gifts and hospitality, information security and privacy, recordkeeping, cooperation with investigations and audits, and, of course, a "whistleblower" provision. The whistleblower provision establishes procedures whereby employees can report, without fear of reprisal, suspected illegal or unethical activities by others within the organization. And, in light of current events, it would be wise to include in the Code the company's policies regarding political activities, particularly those concerning lobbying and political contributions.

The Code should set forth the process for its administration, including mechanisms to disclose and document any potential conflicts of interest or to obtain waivers from any particular policy or provision. It should also provide guidance to assist employees and ethics program management in evaluating specific circumstances, with the standard for behavior being: if all the facts and circumstances regarding the matter were made public, would the employee involved and the organization be proud to be associated with the activity? Additionally, the Code should provide referrals to resources on where to go for further information or guidance. One may want to consider having a separate Code of Ethics for the board of directors. There are many transactional components within an organization's Code that may not have applicability to outside directors, and conversely, there may be additional requirements that pertain only to board activities. Similarly, it may be appropriate to extend certain provisions of the Code beyond employees, to vendors, contract workers, service providers, counter-parties or related organizations.

2.2 Importance All sorts of organizations require a Code of Ethics. Companies develop a Code of Ethics to promulgate principles and ethics that will make them attractive to customers, employees, and other stakeholders. Non-profits create a Code of Ethics for these reasons and to ensure that employees and clients understand and trust their mission of service. Professional associations develop Codes of Ethics for similar reasons and to suggest ethical behavior across an industry and in the professional behavior of its members.

An effective Code of Ethics establishes the ethical expectations for employees and management alike, and sets forth the mechanisms for enforcement and consequences of noncompliance. When the Code is perceived as an integral component of the organization's culture, is understood, followed and enforced, it can provide protection for the organization from the actions of a "rogue employee" under the Standard Guidelines. It prevents unjust treatment: Since wrongdoing is prevalent in all cultures and societies, a good code of ethics will not allow for any kind of inequality. It promotes goodness for everyone: A good code of ethics will uphold the best interest of everyone around. It brings out the best in individuals: Individuals will strive for a better environment to live in when there is a good code of ethics in place. It holds us socially responsible: A good code of ethics makes individuals in a society responsible for the people and things around them. It brings out higher standards: A good code of ethics will bring out excellence in everyone around and allow the culture to function better as a whole.

2.3 Development & Administration A Code of Ethics is written by an executive team; developed by a cross section of employees from various functions; or designed by organization development, corporate communications, marketing, supplier relationships, and / or Human Resources staff, depending on the organization and its internal mode of operation and management style.

In some companies the general counsel has oversight and administrative responsibility. In others, the responsibility rests with Human Resources, Risk Management, Audit, or Compliance. In other organizations, a special Ethics Committee is empowered specifically 4

for purposes of oversight and enforcement. Regardless, of where the accountability lies organizationally, the important considerations in choosing an administrator are: 1) Accountability is clearly assigned. 2) The designated administrator has the organizational stature necessary to facilitate enforcement. 3) It is assigned to someone who does not have a propensity to engage in illegal or unethical activities.

Important components of the administration of the Code include initial and on-going training and awareness efforts, with visible executive management participation and support; employee acknowledgment of receipt, understanding, and compliance with the Code; standards for documentation of exceptions; standards for investigation of suspected or reported wrongdoing; consistent enforcement; and, finally, periodic review of the Code to ensure that it is comprehensive and reflects the current organizational structure and business practices.

2.3.1 Issues to consider for a Code of Ethics

Employment conflicts and whether employees may work for other companies. Relationships of employees with other businesses in the market area. Acceptable types and value of gifts to give and receive. Reward and compensation systems. Work quality and productivity expectations. Representation of the institution (loyalty) outside of work.

2.3.2 Action steps

Reviewing the Code of Ethics. If there is none, steps must be taken immediately to develop a Code of Ethics.

Working from the top down and the bottom up. Finding out what the Board of Directors and Senior Management expect from staff. Also finding out what staff thinks the prevailing ethics standards are in the institution. If there is a gap, steps must be taken to close it.

Scheduling time for a Board briefing; attaching the article to the Board materials. Trying to leave time for discussion so that one can find out what the Directors expect.

Reviewing and comparing the institution's marketing materials and sales programs with the stated Code of Ethics. Looking for stress points. Then finding out whether these stress points are managed or result in problems of an ethical nature.

Looking at the most recent compliance audits and examination reports for issues relating to ethics.

Reviewing and revising the Code of Ethics. Using a team whenever possible. Making sure that the management of the Code is ongoing and active.

Asking the ultimate question: if all the facts and circumstances regarding the matter were made public, would the employee involved and the organization be proud to be associated with the activity? If the answer is yes, the job is well done.

2.4 Dissemination A Code of Ethics should be published and disseminated to its employees, and to existing and potential stakeholders such as members of the board of directors, customers, partners, vendors, suppliers, potential employees and the general public.

2.5 HRM and Code of Ethics Human resource management (HRM) consists of all the activities undertaken by an enterprise to ensure the effective utilization of employees toward the attainment of individual, group, and organizational goals. An organization's HRM function focuses on the people side of management. It consists of practices that help the organization to deal effectively with its people during the various phases of the employment cycle.

HR professionals play three roles in the area of workplace ethics. One role is monitoring: they must observe the actions of organizational members to ensure that all individuals are treated fairly and legally. Second, HR professionals investigate complaints bearing on ethical issues, such as sexual harassment or violations of employees' privacy rights. Third, HR professionals serve as company spokespeople by defending the company's actions when confronted by a regulatory agency or the media.

Furthermore, HR professionals should act ethically themselves. When faced with ethical dilemmas, HR professionals must be willing to take a strong stand, even if it means putting their jobs at risk. If they choose to turn a blind eye, they become part of the problem and thus must assume some of the blame. 6

The Organization
3.1 BRAC BRAC, based in Bangladesh, is the largest non-governmental development organization in the world, measured by the number of employees and the number of people it has helped. BRAC employs over 100,000 people, roughly 70 percent of who are women, reaching more than 126 million people. The majority of BRAC staffs (over 90000) is in Bangladesh, with its headquarter being in Dhaka, the national capital. Established by Sir Fazle Hasan Abed in 1972 soon after the independence of Bangladesh, BRAC is present in all 64 districts of Bangladesh as well as in Afghanistan, Pakistan, Sri Lanka, Uganda, Tanzania, South Sudan, Sierra Leone, Liberia, Haiti and The Philippines as of 2012.

The organization is 70-80% self-funded through a number of commercial enterprises that include a dairy and food project and a chain of retail handicraft stores called Aarong. BRAC maintains offices in 14 countries throughout the world, including BRAC USA and BRAC UK. BRAC have won numerous international awards for turning problems into successful solutions.

BRAC has organized the isolated poor and learned to understand their needs by finding practical ways to increase their access to resources support their entrepreneurship and empower them to become agents of change.

3.1.1 History Known formerly as the Bangladesh Rehabilitation Assistance Committee and then as the Bangladesh Rural Advancement Committee (currently, BRAC does not represent an acronym), BRAC was initiated in 1972 by Sir Fazle Hasan Abed at Sulla in the district of Sylhet as a small-scale relief and rehabilitation project to help returning war refugees after the Bangladesh Liberation War of 1971. In nine months, 14 thousand homes were rebuilt as part of the relief effort and several hundred boats were built for the fishermen. Medical centers were opened and other essential services were ensured. At the end of 1972, when the first phase of relief work was over, BRAC turned towards long-term development needs and reorganized itself to focus on the empowerment of the poor and landless, particularly women and children.

By 1974, BRAC had started providing micro credit and had started analyzing the usefulness of credit inputs in the lives of the poor. Until the mid 1970s, BRAC concentrated on community development through village development programs that included agriculture, fisheries, cooperatives, rural crafts, adult literacy, health and family planning, vocational training for women and construction of community centers. A Research and Evaluation Division (RED) was set up by BRAC in 1975 to analyze and evaluate its activities and provide direction for the organization to evolve. In 1977, BRAC shifted from community development towards a more targeted approach by organizing village groups called Village Organizations (VO). This approach targeted the poorest of the poor the landless, small farmers, artisans, and vulnerable women. Those who own less than half an acre of land and survive by selling manual labor were regarded as BRACs target group. That same year BRAC set up a commercial printing press to help finance its activities. The handicraft retail chain called Aarong, was established the following year.

In 1979, BRAC entered the health field by establishing a nation-wide Oral Therapy Extension Program (OTEP), a campaign to combat diarrhea, the leading cause of the high child mortality rate in Bangladesh. Over a ten-year period 1,200 BRAC workers went door-to-door to teach 12 million mothers the preparation of home-made oral saline. Bangladesh today has one of the highest rates of usage of oral rehydration, and BRACs campaign cut down child and infant mortality from 285 per thousand to 75 per thousand. This initial success in scaling up propelled rapid expansion of other BRAC programs such as Non Formal Primary Education which BRAC started in 1985 a model that has been replicated in about a dozen countries.

In 1986 BRAC started its Rural Development Programme that incorporated four major activities institution building including functional education and training, credit operation, income and employment generation and support service programs. In 1991 the Womens Health Development program commenced. The following year BRAC established a Centre for Development Management (CDM) in Rajendrapur. Its Social Development, Human Rights and Legal Services program was launched in 1996 with the aim to empower women with legal rights and assist them in becoming involved with community and ward level organizations. In 1998, BRACs Dairy and Food project was commissioned. BRAC launched an Information Technology Institute the following year. In 2001, BRAC established a

university called BRAC University with the aim to create future leaders and the BRAC Bank was started to cater primarily to small and medium enterprises.

In 2002 BRAC launched a program called Challenging the Frontiers of Poverty Reduction Targeting the Ultra Poor (CFPR-TUP) designed specifically for those that BRAC defines as the ultra poor - the extreme poor who cannot access conventional microfinance. The same year BRAC also went into Afghanistan with relief and rehabilitation programs. It was the first organization in Bangladesh to establish, in 2004, the office of an Ombudsperson.

3.1.2 Vision A world free from all forms of exploitation and discrimination where everyone has the opportunity to realize their potential.

3.1.3 Mission BRACs mission is to empower people and communities in situations of poverty, illiteracy, disease and social injustice. Its interventions aim to achieve large scale, positive changes through economic and social programs that enable men and women to realize their potential.

3.1.4 Values Innovation - BRAC has been an innovator in the creation of opportunities for the poor to lift themselves out of poverty. It value creativity in programme design and strive to display global leadership in groundbreaking development initiatives. Integrity - BRAC values transparency and accountability in all our professional work, with clear policies and procedures, while displaying the utmost level of honesty in our financial dealings. We hold these to be the most essential elements of our work ethic. Inclusiveness - BRAC committed to engaging, supporting and recognising the value of all members of society, regardless of race, religion, gender, nationality, ethnicity, age, physical or mental ability, socioeconomic status and geography. Effectiveness - BRAC's values efficiency and excellence in all its work, constantly challenging itself to perform better, to meet and exceed programme targets, and to improve and deepen the impact of its interventions.

3.1.5 Objectives BRAC believes that poverty is a system and its underlying causes are manifold and interlinked. Some of these linkages are obvious, for example, a days wage forgone because of illness or resources lost to a natural disaster. Others play a more indirect role in perpetuating poverty, such as lack of awareness about laws and rights can lead not only to outright exploitation, but also encourage a lack of accountability on the part of the state to cater to its most vulnerable citizens.

In order for the poor to come out of poverty, one must have the tools to fight it across all fronts. BRAC have, therefore, developed support services in the areas of human rights and social empowerment, education and health, economic empowerment and enterprise development, livelihood training, environmental sustainability and disaster preparedness.

Gender equality, respect for the environment and inclusivity are themes crosscutting all of BRAC activities. To ensure that BRAC employees are always learning and that their work is always relevant, BRAC have put in place training, research and monitoring systems across all their activities and financial checks and balances in the form of audits. As a knowledge centre, BRAC have opened their doors to the wider public in an effort to develop national capacity in Bangladesh through BRAC University.

3.1.6 Operations The majority of BRACs work is in Bangladesh. Their low cost, innovative solutions to the daily problems facing poor families have been scaled up to reach every village in Bangladesh.

BRAC operate social enterprises that are strategically connected to its development programs, and form crucial value chain linkages which increase the productivity of its members assets and labor, and reduce risks of their enterprises. These enterprises, ranging from agriculture to handicrafts, also help to make people increasingly self-reliant.

BRAC provides more than just microfinance. BRAC use the microfinance groups as a social platform to deliver scaled-up services in health, education, business development and livelihood support. These are all critical components needed to ensure that poor people can break the cycle of poverty. 10

3.1.7 Scaling up in Asia and Africa BRAC has substantial operations in a growing number of Asian and African countries. BRAC works in countries where it can achieve a major impact on reducing poverty and improving livelihoods. Since 2002, BRAC have been using its experience to energies and accelerate poverty alleviation efforts in other countries. BRAC deliver microfinance, health, education, agriculture and livestock services based on our integrated approach in Bangladesh. BRAC programs can be scaled up quickly to a national level and are low cost, effective and adaptable.

3.2 BRAC Human Resource Division From the early stages of its evolution, the Human Resource Division (HRD) has been working with a goal to maximize job satisfaction, enhance transparency and ensure procedural justice for all employees. As one of the worlds largest Development Organizations, BRAC has a wide variety of multifaceted development programs. A large number of qualified, potential and committed staff is required to attain the organizations goal and to operate these programs effectively. HRD has to provide extensive effort to ensure that the staff are appraised properly and are also provided with due services and entitlements in time. HRD tries to ensure an environment where the staff are nurtured and considered as absolute resources. To this end, HRD is committed to guarantee the assignment of right people in the right place at the right time, to flourish human potentials and provide a decent work environment. The HRD at BRAC Head Office comprises of about 70 employees with a Director being the head of the division and is divided into several operational units.

3.2.1 Goals HRD is a strategic partner of BRAC, working with to achieve the following goals: Ensure procedural justice. Intensify transparency along with equality. Facilitate such an organizational environment where individuals potentials & competencies are flourished and innovation. Organizational changes as well as quality are promoted.

HRD is working persistently to achieve total quality by ensuring a trustworthy, dynamic and esteemed working environment. 11

3.2.2 Objectives Excel BRACs culture and values to enable an environment of right-based human organization. Facilitate finest level of staff development. Develop a competent workforce to institute gender justice and diversity - where staff is encouraged for best possible contribution, irrespective of class, religion, ethnicity, cast, ability, age and sex. Develop Performance Appraisal system to recognize good work as well as enhance quality and accountability. Keep the Management updated by preserving and disseminating updated staff's information. Regularize and increase easy access to HR related information and services of all staffs. Policy formulation/revision, implementation and monitoring.

3.2.3 Operational Units Policy, Compliance and Development (PCD) Policy and Capacity Development section works towards the development of Human Resources Policies & Procedures (HRPP) and its proper implementation. Staff development, create awareness about rights, entitlements and responsibilities of staff, publication, communication and presentation of HRD activities within and outside the organization are also part of responsibility.

Objectives of PCD o Organizational Development o Staff Development

Major activities of PCD

o o o o o o

Formulation of new policies and revision of existing policies and procedures Prepare and disseminate circulars Prepare and update different types of formats Conduction of HRPP orientation Publication of HR Report and Bulletin Conduct training and development related activities 12

o o o o o o o o o

Organize BRAC Orientation for new staff of Head Office Conduct Exit Interviews Update designation Organize meetings and maintain the record of minutes Organize Exposure Visit Prepare and disseminate section/unit wise progress reports Organize social events Communicate and coordinate with different programs of BRAC Process procedural activities related to national and international training, travel and higher study programs

Preparation of different analytical reports

HR Field Operations Management (HRFOM) Earlier, all HR related work used to be carried out from Head Office. At that time it was very hard to provide HR services to every staff in the right time because the staffs are scattered in different field offices. That is why BRAC decided to decentralize its HR Division. In April 2005, BRAC has brought some changes in the functions of HR management such as decentralization, setting up an HRFOM section and established 11 HR Field Offices. In order to render better quality services to the staffs, HRD gradually extended HR Field Offices; the total number of field office is now 41 (working under 09 zones & 04 clusters).

Objectives of HRFOM
o o

To provide faster HR services at field level To create awareness about HR policy to all field staff and encourage to comply with Policy

Major Activities of HRFOM

o

Coordinate HR activities with different Programs. HR Officers are responsible to communicate with field management, participate in their meetings, visit field, and assist HO-HRD by providing necessary information

o o

Organize recruitment and selection processes in the field offices Ensure timely delivery of appointment & confirmation letter, provident fund (PF) papers, transfer order, papers of joining after transfer(JAT) & ID card, etc

13

Assist new staff with their joining process by being present in the area and regional offices

o o o o o

Ensure the performance appraisal on timely and qualitative manner Coordinate and troubleshoot of IT related matters Counsel the staff regarding job security and benefits Update quarterly staff positions Communicate and coordinate with the field staff through attending meetings, workshops and sharing information related to new changes in the HRPP

Orientation on Human Resource Policies & Procedure, Gender & SHE policy to the supervisors.

o o o

Training as well as Need Assessment Workshops on gender policy Conduct orientation on Human Resource Policies & Procedure tothe BRAC staff Sessions on HRPP in BRAC Orientation Course

Performance Management Unit (PMU) BRAC HRD has a Performance Management Unit which constantly works to provide a complete scenario of staff performance to the top management. It works to expedite the progression of the organization. PMU institutes a performance assessment system for staff appraisal, which motivates the staff and his/her supervisors for improving their competencies.

Objectives of PMU The Performance Management Unit ensures continuous improvement of the system, building capacity of supervisors who appraise performance of staff, revising formats based on practical requirements of PMS, facilitating assessment processes, implementing decisions regarding awards, appreciation and giving transparent feedback on performance.

Major Activities of PMU

o o

Establishing the effective Performance Assessment System in the organization. Take decisions through Performance Management System Advisory Team and reinforce the decisions.

o o

Organize Promotion process as per Human Resource Policy and Procedure. Collect Training Need Assessment on the basis of supervisors recommendation in appraisal.

14

Enhance knowledge of all managers/supervisors about performance assessment system through Performance Assessment System Training with the help of Field Operations Management.

Orient staff and supervisors with the performance management goal, objectives and impact on the organization.

Design, prepare and review of Performance Assessment System Training module and materials.

o o o

Revise performance appraisal form as per need. Position up gradation of internal staff. Prepare different types of report (routine and need base).

Recruitment & Selection Unit (RSU) Recruitment & Selection recruits on the basis of staff demand given by different programs/divisions.

Objectives of RSU This section works with the aim of hiring and placing right person in the right place at the right time.

Major Activities of RSU

o o o o o o o

Receive approved requisition from Programs. Prepare and publish advertisement. Receive application through several sources. Sort the CVs according to the criteria. Create Database and plan for Selection. Confirm the exam center on the basis of the number of candidates. Coordinate with staff from other Programs for invigilating; checking scripts and viva voce.

o o o o o

Prepare the Question Papers and Answer Scripts. Carry out the examination, sort out results and circulate. Briefing selected candidates for pre - service training. Prepare deployment list for every selected candidate. Carry out the pre-service training.

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Survey Analysis
A questionnaire survey was conducted at the HR division of BRAC. Upon analyzing the survey the following facts have been revealed about the ethical practices in BRAC.

BRAC has a written code of ethics. The code of ethics is disseminated to employees at induction and through appointment letter. Thus every employee in the organization receives the code of ethics. All employees are required to sign the appointment letter and code of ethics in order to certify that they will respect the code of ethics. The code of ethics is uniformly applied across all the departments and levels of management. As a multinational organization, BRAC has different ethical guidelines for home-country nationals and hostcountry nationals. The organization does not have an in-house advisor.

BRAC carries out training on ethical work place conduct. Such training is conducted by the middle to senior level management of Learning Division on need base through lectures, films and videos, case analysis and role playing. Moreover, executive leaders regularly speak about ethics and the importance of creating an ethical culture in management meetings or other settings.

BRAC has the provision for anonymous reporting of ethical misconduct by employees that they have witnessed or faced. It is found that employees in BRAC often report ethical misconduct that they have witnessed or faced. BRAC protects its employees from retaliation upon reporting instances of ethical misconduct. However, in some cases in the past, employees who reported ethical misconduct faced unpleasant consequences by their coworkers or supervisors such as adverse response from supervisor and barring from promotion opportunities or pay increases.

The code of ethics specifies disciplinary measures for failure to comply with it. The maximum severity of the discipline rendered is dismissal. However, whether the actions would be taken silently or publicly depends on the case and people involved or related to it. According to the BRAC HRD, training, counseling and punishment, all are effective methods for creating respect for ethics among those who violate the code of ethics.

16

Compliance with ethical standards of behavior is monitored semiannually or on need base by the senior and middle management of BRAC HRD. From past experiences, the HR Division has found that BRAC employees regularly pad expenses (e.g. transport expenses). They also often abuse company resources (e.g. internet abuse, use of customer database for personal gain, revealing trade secrets to competitors, etc.) or fail to report co-workers violation of code of ethics. They sometimes pass blames or show negligence at work. However, employees seldom falsify or carry on personal business on company time and never accept bribes/kickbacks from suppliers or vendors. Employees are given awards each year on the basis of ethical behavior in order to encourage them to comply with the code of ethics and recognize their good workplace conduct.

BRAC HRD recognizes lack of awareness of ethical standards as a very important factor likely to cause employees to compromise ethical standards in the organization. It also detects lack of effective ethics training and desire to further ones career as important factors for the same. Lack of consequences for violation of ethical standards and pressure to meet unrealistic business targets are also considered somewhat important to the matter. However, peer pressure is not assumed to be an important factor to make employees compromise ethical standards in BRAC.

The code of ethics is reviewed and updated by the senior management on need base. The organization considers the code of ethics as effective and sees good prospect in terms of ethical standard in the organization. However, these claims are on the basis of their complanee monitoring and other statistics which they do not wish to reveal in compliance to their HR policy.

According to the BRAC HRD, the main challenge they face in enforcing the code of ethics is to educate the employee regarding the code. The organization believes that more training and campaigning should be arranged to create an ethical culture and ensure greater compliance with ethical standards.

17

Conclusions and Recommendations

The Code of Ethics serves as a framework for ethical decision making within an organization. It is the heart and soul of a company, and an in depth view of what an organization believes and how the employees of an organization see themselves and their relationship with each other and the rest of the world.

From the study, it has been found that BRAC has a very well developed written Code of Ethics. The organization ensures that the employees know the Code and certify to respect it. BRAC has a Learning Division specialized in conducting training programs for employees on various aspects including ethical practices. However, the training on ethical practices are organized on need base rather than on regular intervals. BRAC may arrange such training on regular intervals (annually or semiannually). The Code should also be reviewed on regular basis to ensure it is up-to-date.

BRAC has separate ethical guidelines for home-country and host-country nationals which is very important for a multinational organization to continue its operations successfully in different countries. The organization allows anonymous reporting of misconduct which is very encouraging for employees to report misconducts they have witnessed or faced. However, the organization should protect the complainers more effectively.

Although, BRAC employees usually do not seem to engage in extreme unethical practices, such as accepting bribes or falsify, but they do regularly pad expenses, misbehave with fellow employees and sometimes show negligence at work. The HR Division should take initiatives to prevent employees from such misconducts.

According to the findings, it is assumed that the Code of Ethics in BRAC is effective and is expected to show good prospect in terms of ethical standard in the organization.

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