NAME : ASHWINI DILIPKUMAR SAWANT.

CLASS : M.COM (SEMISTER II)

COURSE NAME : ACCOUNTING & AUDITING
ROLL NO. : 1070
NAME OF THE COLLEGE : MAHARSHI DAYANAND COLLEGE
OF ARTS, COMMERCE & SCIENCE
PAREL, MUMBAI NO.:400 012.
SUBJECT : STRATEGIC MANAGEMENT
PROJECT NAME : CORPORATE CULTURE AND ETHICS
AND PARLE G COMPANY.










STRATEGIC MANAGEMENT
MASTER OF COMMERCE
ACCOUTING & AUDITING
Semester 1I
(2013-2014)
Submitted,
In partial fulfilment of the requirements for the
Award of degree of master of commerce Accounting & auditing
Submitted by,
ASHWINI DILIPKUMAR SAWANT.
ROLL NO.: 1070

Under the guidance of


MAHARSHI DAYANAND COLLEGE OF ARTS, COMMERCE & SCIENCE
PAREL, MUMBAI - 400 012.


MAHARSHI DAYANAND COLLEGE OF ARTS, COMMERCE & SCIENCE
PAREL, MUMBAI 400 012.

CERTIFICATE
This is to certify that Ms. / Mrs. ASHWINI DILIPKUMAR SAWANT.
Of M. COM Accounting & Auditing (2013- 2014) has successfully completed the
Project on STRATEGIC IMPLEMENTATION & PARLE G COMPANY.
Under the guidance of


Course Coordinator Principal


Project Guide / Internal Examiner


External Examiner



DECLARATION
I ASHWINI DILIPKUMAR SAWANT
Student of M. COM. (Accounting & Auditing) Semester 1I (2013 2014)
Hereby declared that i have completed the project on CORPORATE
CULTURE AND ETHICS AND PARLE G COMPANY
The information submitted is true &
Original to the best of my knowledge.


Signature of Student.
Ashwini Dilipkumar Sawant.
ROLL NO .: 1070



ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported
me during the writing of this book.
My deepest thanks to Lecturer, the Guide of
the project for guiding and correcting various documents of mine with attention and care. He
has taken pain to go through the project and make necessary correction as and when needed.
I express my thanks to the Principal of, MAHARSHI DAYANAND
COLLEGE OF ARTS, COMMERCE & SCIENCE, PAREL, MUMBAI NO. : 12
for extending his support.
I would also thank my Institution and my faculty members without whom this
project would have been a distant reality. I also extend my heartfelt thanks to my family and
well wishers








INDEX








1. CONCEPT OF CORPORATE CULTURE
Corporate culture is the collection of beliefs, expectation and values learned and shared by
an organization's members and transmitted from one generation of employees to another.
The organization's culture generally reflects the values and beliefs of the founder(s) and the
mission of the firm. It gives a sense of identity to the organization's members - This is who
we are. This is what we stand for. The main features of organizational culture are as
follows:
1. Organizational culture is a combination of social, cultural, physical, psychological,
and other conditions within an organization.
2. It influence the motivation, attitudes, behaviour and performance of the members of
an organization.
3. It gives a separate identity to the organization as compared to other organizations
as each organization has its own set of values, beliefs, practices customs etc.
4. The organizational culture evolves over a fairly long period of time.
5. It can be relatively stable over a period of time. However, there can be changes in
the organization culture, with a change in top management, or management's
philosophy.
6. It is invisible and abstract, although it is perceived and experienced by the the
members of an organization.
7. Organization culture can bring name and goodwill to the organization.
8. It can provide opportunities and threats to its members.

2. CORPORATE CULTURE AND STRATEGY
1. PERSONAL VALUES AND BUSINESS ETHICS
The personal values are imbibed from parents, elders, and teachers. As an individual grows,
values are adapted and refined in the light of new knowledge and experiences. In an
organization, values are imparted by the founder or by a dominant personality - mostly the
chief executive. Such values remain for fairly a long time, even when the founder or the
dominant personality is not there in the organisation Ethics specify what is good or bad,
right or wrong, proper or improper from social point of view. Business ethics relates to
behaviour and actions of corporations relating to business. According to Robert Gurinner
"Business ethics may be defined as those principles, practices, and philosophies that
are concerned with moral judgments and good conduct as they are applicable to
business situation."














3. Features of Business Ethics
The following are some of the important features of business ethics:
1. Ethical Values:
Business ethics is concerned with morality in business. In today's world, business
community forms a large part of the society and its actions (like right or wrong, legal or
illegal) are bound to have a direct impact on the well being and welfare of the society.
Business affects society in terms of what it does, i.e. what products is supplies.
2. Relative term:
Ethics is a relative term i.e. the concept of morality and immorality differs from one
individual to other or society. What is moral in one society may be immoral in other.
For example, taking or giving bribe is considered as unethical in our society but may be
a routine affair or just ignored by society in some other countries.
3. Interest of society:
Business ethics implies that the business should do first good to the society and then to
itself. Business is an important institution and has a social responsibility to protect the
interest of all those groups like employees, share holders, consumers who contribute to
the success of business.
4. Business society relationship:
business ethics set the terms and standards to understand business society relationship.
It indicates what society excepts from business and what it thinks about business.
5. Provides framework:
Like an individual, business is also bound by social rules and regulations. Business is
excepted to confine its activities within the limits of social, legal, cultural and economic
environment.
6. Systematic study:
Business ethics is a systematic study of business policies and actions that have an
impact on human beings and the society. For example, a company that cares for better
natural environment will pursue those plans and policies that protects environment wi ll
pursue those plans and policies that protects environment.
7. Code of conduct:
Business ethics, like code of conduct or professional ethics provides guidelines to
regulate business activities on legal, moral, social, and ethical principles.
8. Guiding principles:
business ethics are the guiding principles which helps to differentiate good or bad, right
or wrong, proper or improper business decision and actions.
9. Universal application:
business ethics has universal application. It is applicable to all business units in all
countries whether large or small.












4. I mportance Of Business Ethics And Values
The need for business ethics is more felt in recent years than over before. The following
points outline the significance of business ethics.
1. Survival of business:
business needs to follow ethical values for its own good and survival. A firm
can have short term and quick gains by resorting to unethical means and
disregarding social welfare. However, such firms grow first and are out of
business faster. On the other hand, organisations doing business ethically have
continued to survival and proper for a longer time.
2. Protection of consumer rights:
the application of business ethics will help to confer and implement consumer
rights. This will enhance the strength of individual consumer against the
powerful business community. Business ethics can be used to check
malpractices like adulteration, unfair trade practices and to make the working of
business consumer oriented.
3. Consideration of society interest:
Those firms, which follow business ethics in the society, would make every
possible effort to produce goods and services not only in the interest of the
consumers, but also in the interest of the society. These firms whould look into
out only the customers well being, but also welfare of the society.
4. Interest of small scale industry:
Business ethics is necessary to safe guard the interest of small scale business
firms. The tendency of big business units is always to dominate the market and
drive away the small and medium scale units from the market.


5. Better relation with the member of the society:
Business ethics is needed to develop good relation between business and
society. The relationship of business with society has various dimension such as
its relation with shareholders, employees, consumers, distributors, competitors
and government. Ethics is needed to maintain good relation among the firms on
one side and between the firm and social groups on other. Business ethics will
help to promote and protect the interest of various groups, associated with
business activities.
6. Mutual benefit:
Business ethics benefits the business firm as well as the society. The business
firm that adopts business ethics get good name in the society. It may be able to
increase confidence in the minds of the buyers who in turn would help to
improve the sales of the firms. The society can also gain due to ethical practices
on the part of the business.
7. Other Benefits:
a. Business ethics will help the firm to expand and grow.
b. It can motivate the employees to perform better.
c. It can develop customer loyalty.
d. It can help to obtain funds easily from the investors, etc.





5. IMPACT OF VALUES AND ETHICS ON CORPORATE STRATEGY
The corporate strategy is greatly affected by the values, ethics, and motives of the people
who are involved in its formulation process. In formulating corporate strategy, managers
cannot isolate their feelings, and preferences from economic considerations. Normally,
there is a tendency on the part of mangers to impose their preference and priorities in the
process of strategy implementation.
Corporate strategy is affected by personnel values of the chief executive and of the key
executives , right from the stage of setting objectives. For instance, a chief executive with
high profit orientation would give priority to those areas which generate higher rate of
return while setting objectives, whereas a chief executive with high social orientation
would give greater importance to social factors or areas while setting objectives.
The personal values and perceptions of top executives are reflected in operational policies
framed to execute the strategy. For instance, a participate leader would encourage his
subordinate to take part in framing suitable policies required to implement the strategy,
whereas a dominant autocratic leader would himself frame the policies and impose them on
his subordinates to implement the strategy.









6. Reconciliation - The Conflict of Personal Values and Strategy
There is often a conflict between personal values and rational business strategy. For
strategy to be effectively implemented in the organizations there is a need for commitment
and support on the part of top executives including the chief executives. Therefore,
personal
values and preferences of the top executives must be given considerations and a strategy
based on rational considerations needs to be modified. Such a modification in the strategy
would receive support from the top executives as far as its implementation is concerned, as
they know that their values and preferences are in taken into account.
In any organization there is a need to reconcile between the rational economic
strategy and the personal values and preferences of the key executives of the organization,
and also the conflict among the key executives. The conflict can be resolved by making an
attempt to analyse the values and preferences of different executives and then to apprise
them of such analysis so that they be may fully aware of the prejudices and biases, which
influence their behaviour. Such analysis may help the executives to do way with certain
values and preferences, which are not conducive for the growth of the organization. For
instance, in one the organizations, a new chief executive was appointed, who was born and
brought in posh environment, wanted rich interiors and exteriors of the company's head
office, involving huge sum of money, was finally convinced by the finance director that
such heavy spending would drain company's funds and that the company may face acute
cash crunch.
Reconciliation of conflicts among individual values and preferences for the formulation and
implementation of strategy needs imagination, and cooperative spirit on the part of
executives. They must sort out their differences, and modify their values and preferences in
the interest of the organization. One of the best alternatives is to appoint an external expert
to frame sound economic strategy with the support of the top executives of the
organization, and the top executives should not unduly influence upon the external expert
of their personal values and preferences. However, it is to be noted that if personal values
and preferences are vital to the interest of the organization, then such values must
considered in framing and implementing the strategy of the organization.




















7. SOCIAL RESPONSIVENESS AND STRATEGIC MANAGEMENT
Business is basically an economic activity, but in modem world it cannot concentrate
only on profit maximization. It is a group effort, as there is participation, directly or
indirectly, of the employees, customers, society, government, shareholders etc. Business
can not function independently and depend on the society for supply of raw materials,
capital, labour, and other requirements. Business is a part of society and has to follow and
operate within the limits of the environment, and, rules and regulations prescribed by the
society.
There is a need to have social responsiveness in strategic management. This is because
greater social responsiveness means good business. Normally the top management takes the
major decisions in respect of social responsibility. The decisions in respect of social
responsibility are based on the personal values, views, opinions and business ethics of the
top management. Having decided to adopt social responsibility , the top management
should involve social responsiveness in all the phases of implementation and strategy
evaluation will be affected by social responsiveness. The strategist must consider the social
responsibility towards various group in strategic management.








8. Case study
ABOUT PARLE G COMPANY
Parle Products has been India's largest manufacturer of biscuits and confectionery, for
almost 80 years. Makers of the worlds largest selling biscuit, Parle-G, and ahost of other
very popular brands, the Parle name symbolize quality, nutrition and great taste. With a
reach spanning even the remotest villages of India, the company has definitely come a very
long way since its inception. Many of the Parle products - biscuits or confectioneries, are
market leaders in their category and have won acclaim at the Monde Selection, since 1971.
With a40% share of the total biscuit market and a 15% share of the total confectionary
market in India, Parle has grown to become a multi-million dollar company. While to
consumers it's a beacon of faith and trust, competitors look upon Parle as an example of
marketing brilliance. In 1929 a small company by the name of Parle products emerged in
British dominated India. The intent was to spread joy and cheer to children and adults alike,
all over the country with its sweets and candies. The company knew that it wouldnt be an
easy task, but they decided to take the brave step. A small factory was set up in the suburbs
of Mumbai, to manufacture sweets and toffees. A decade later it was upgraded to
manufacture biscuits as well. Since then, the Parle name has grown in all directions, won
international fame and has been sweetening peoples lives all over India and abroad. Apart
from the factories in Mumbai and Bangalore Parle also has factories in Bahadurgarh in
Haryana and Neemrana in Rajasthan, which are the largest biscuit and confectionery plants
in the country. Additionally, Parle Products also has 7manufacturing units and 51
manufacturing units on every nation dreams of a better tomorrow. And every nations
tomorrow lies in the hands of its children; children who make the nation proud in every
aspect; the young geniuses who shape the future of the nation. So its important to nourish
these young minds, for after all its a question of the nations future
Filled with the goodness of milk and wheat, Parle G is a source of strength for both body
and mind. Treat yourself to a packet of Parle -G to experience what has nurtured and
strengthened the minds of millions of genius Indians for over 65years.It s more than just a
biscuit. A meal substitute for some, a tasty and healthy snack for many others. Consumed
by some for the value it offers, and many others forit s taste. Little wonder that its the
Largest selling Biscuit Brand in the world. Quality Hygiene is the precursor to every
process at Parle.
From husking the wheat and melting the sugar to delivering the final products to the
supermarkets and store shelves nationwide, care is taken at every step to ensure the best
product of long -lasting freshness. Every batch of biscuits and confectioneries are
thoroughly checked by expert staff, using the most modern equipment hence ensuring the
same perfect quality across the nation and abroad. Concentrating on consumer tastes
and preferences, the Parle b rand has grown from strength to strength ever since its
inception. The factories at Bahadurgarh in Haryana and Neemrana in Rajasthan are the
largest biscuit and confectionery plants in the country. The factory in Mumbai was the first
to be set up, followed soon by the one in Bangalore, Karnataka. Parle Products also has 14
manufacturing units for biscuits and 5 manufacturing units for confectioneries, on contract.









Pack Sizes available:
16.5G,
38.5G,
60.5G,
82.5G,
99G,
209G,
313.5G,
418G,
825G















9. VALUES AND ETHICS
INTRODUCTION
Values and ethics are central to any organization; those operating in the national security
arena are no exception. What exactly do we mean by values and ethics? Both are extremely
broad terms, and we need to focus in on the aspects most relevant for strategic leaders and
decision makers. What we will first discuss is the distinctive nature of ethics for public
officials; second, the forces which influence the ethical behavior of individuals in
organizations; and third, explore the actions strategic leaders can take to build ethical
climates in their organizations.

THE CHARACTER OF VALUES AND ETHICS
Values can be defined as those things that are important to or valued by someone. That
someone can be an individual or, collectively, an organization. One place where values are
important is in relation to vision. One of the imperatives for organizational vision is that it
must be based on and consistent with the organization's core values. In one example of a
vision statement we'll look at later, the organization's core values - in this case, integrity,
professionalism, caring, teamwork, and stewardship
- were deemed important enough to be included with the statement of the organization's
vision. Dr. John Johns, in an article entitled "The Ethical Dimensions of National Security,"
mentions honesty and loyalty as values that are the ingredients of integrity. When values
are shared by all members of an organization, they are extraordinarily important tools for
making judgments, assessing probable outcomes of contemplated actions, and choosing
among alternatives. Perhaps more important, they put all members "on the same sheet of


music" with regard to what all members as a body consider important. The Army, in 1986,
had as the theme for the year "values," and listed four organizational
Values
-Loyalty, duty, selfless service, and integrity-and four individual
Values
- Commitment, competence, candor, and courage. A Department of the Army pamphlet
entitled
Values: The Bedrock of Our Profession Spent some time talking about the importance of
values, and included this definition: Values are what we, as a profession, judge to be right.
They are more than words-they are the moral, ethical, and professional attributes of
character . . . there are certain core values that must be instilled in members of the
U.S.Army-civilian and uniformed soldier alike. These are not the only values that should
determine our character, but they are ones that are central to our profession and should
guide our lives as we serve our Nation What does "generally considered to be right" mean?
All one needs to do is to look at the positive values of society and the organizations one
belongs to, and what is right or wrong should be evident. There is another aspect to be
considered, however, and that is the influence of societal or organizational norms. Norms
are the unstated rules, usually informally reached by the members of a group, which govern
the behaviour of the group's members. Norms often have a greater effect on what is and
isn't done by the members of a group than formal rules and regulations. The reason norms
are important for a discussion of ethics and values is that norms may allow or even
encourage certain behaviour as "OK" that is not in keeping with society's or an
organization's stated values. When there is a disconnect between stated and operating
values, it may be difficult to determine what is "right." An example might be a company
that has among its stated values to treat everyone with dignity and respect, but whose norms
have permitted and perhaps even encouraged a pattern of sexual harassment over a number
of years. Do those in the organization know that the behaviour is wrong, but condone it
nevertheless? Is it clear to the Bosnian Serbs that ethnic cleansing is unethical and wrong,
or would it fall under the mantle of behaviour that is considered to be acceptable in that
society? Listen to the arguments in support of ethnic cleansing that have been made, and
you will find that many of the perpetrators argued that they did nothing wrong, and were
only righting previous wrongs done to them.


















10. THE PUBLIC TRUST
If ethics and morality are important for groups and organizations, they should also be
important for public officials, and for very much the same reasons. YorkWillbern, in an
article entitled "Types and Levels of Public Morality," argues for six types or levels of
morality (or ethics) for public officials. By public officials, he means those who are in
policy making positions in public institutions; in other words, strategic decision makers in
the government, including the national security arena. The six levels he differentiates are:
basic honesty and conformity to law; conflicts of interest; service orientation and
procedural fairness; the ethic of democratic responsibility; the ethic of public policy
determination; and the ethic of compromise and social integration.
WILLBERN'S LEVEL OF PUBLIC MORALITY
ETHIC OF COMPROMISE AND SOCIAL INTEGRATION
ETHIC O F PUBLIC POLICY DETERMINATIO
ETHIC OF DEMOCRATIC RESPONSIBILITYSERVICE ORIENTATION
AND PROCEDURAL FAIRNESS
CONFLICT OF INTEREST
BASIC HONESTY AND CONFORMITY TO LAW

BASIC HONESTY AND CONFORMITY TO LAW.
"The public servant is morally bound, just as are other persons, to tell the truth, to keep
promises, to respect the person and the property of others, and to abide by the requirements
of the law" (Willbern). In many ways, this level only describes the basic adherence to moral
codes that is expected of all members of a group or society. There are some basics of
behaviour that are expected of all if a society is to function for the collective good.
For public officials, there is an additional reason why it is important to adhere to these basic
moral codes and laws: they have more power than the average member of the society, and
hence more opportunity for violation of those codes or laws. There also is the negative
example that misconduct by public officials provides.

CONFLICT OF INTEREST.
This relates to public officials, because it deals with the conflict between advancing the
public interest, which a public official is charged to do, and advancing one's self-interest.
The duty here is to ensure that the public interest comes first, and that one does not advance
his own personal interest at the expense of the public. Willbern uses embezzlement of
public funds, bribery, and contract kickbacks as examples of pursuing personal interests at
the expense of those of the public. The requirements for public officials to divest
themselves of investments that might be influenced by the performance of their duties (or
put them in trust)and to recues themselves in situations where they have a personal interest
are designed to help public officials avoid conflicts of interest. Ultimately, it still comes
down to the individual making an ethical decision. Avoidance of conflict of interest is often
difficult because it is often hard to separate personal and public interests, and because
individuals as private citizens are encouraged to pursue private interests through any legal
means. One of the areas where there is the greatest potential for conflicts of interest is
where public officials deal with private organizations which are pursuing their private
interests, and where any decision by a public official on allocation of resources will favour
some private interest. The fields of government contracting and acquisition are two areas
where the possibility of conflicts of interest is high.


11. SERVICE ORIENTATION AND PROCEDURAL FAIRNESS.
This level relates closely to the last, and deals with the responsibility of public officials to
ensure their actions serve the public, and that the power they wield is used only for that
purpose. It is easy to abuse the power that comes with public office. Procedural safeguards
are designed to prevent that abuse. The moral obligation of public servants is to follow
established procedures, and not to use their power to circumvent those procedures for their
own convenience or benefit. Power must be used fairly and for the benefit of the public.
One can again think of examples of public officials who have violated this moral charge by
using their influence and power for their own benefit or for the benefit of special interest
groups, or who have circumvented established procedures for their own benefit or
convenience. One frequent example is the use of government vehicles or aircraft for
nonofficial business. These first three levels of public morality share one important
characteristic: they all relate to the behaviour or conduct of public officials. These three
levels are the areas that get most of the attention in discussions of ethics; this is where
public officials are most likely to get in trouble. However, there are three additional levels
of public morality equally important. These deal with the content of what public officials
do, "the moral choices involved in deciding what to do, in pursuing the purposes of the
state and the society" (Willbern).







THE ETHIC OF DEMOCRATIC RESPONSIBILITY
Given that public officials are operating within a democratic system, they either are elected
by the people or appointed by an elected official. This confers upon them the obligation to
carry out the will of the people. However, public officials also have the responsibility to
make moral choices consistent with their own values, and that may be in conflict with what
they perceive to be the will of the people. Willbern contends that the public official acts
according ng to his or her own judgment, rationalizing that it would be the will of the
people if they were well enough informed on the issue. To give one example of this level of
public morality, consider whether or not the representative in Congress is morally bound to
support policies and legislation which his constituents overwhelmingly support but he
personally opposes.

THE ETHIC OF PUBLIC POLICY DETERMINATION.
This level involves the most difficult ethical choices, because it concerns making moral
judgments about public policies. The responsibility is to make moral policies; the difficulty
is in determining how moral a policy is. Public policies almost always deal with very
complex issues, where ethical choices are rarely clear, and it is often difficult to determine
if a policy is right or wrong.
For example, many public policies deal with the distribution of limited resources. Is it right
or wrong to slash funding for one program, or to increase funding for another? In almost
any decision, there will be winners and losers, and there will be some benefit for some and
cost to others. "Right" and "wrong" may not apply. Equity and fairness are important
considerations, but not always easy to discern. The determination of how much funding to
provide for national security, and which social programs to fund, involves ethical choices
of the most difficult type. What is the difference between equality and equity? Consider the
controversy around affirmative action programs: are they examples of moral public
policies?

THE ETHIC OF COMPROMISE AND SOCIAL INTEGRATION.
This final level deals with an area not as salient as some of the others. It deals with the
necessity for compromise in a society. A society with irreconcilable differences on
fundamental issues will be torn apart. Hence, it becomes amoral obligation of public
officials to engage in give and take, working toward compromise in the policies they
develop. One often sees legislators in our political system establishing positions where they
may not get all they want from particular legislation, but will settle for some of what they
want. Willbern contends that compromise, rather than standing on principle, is moral,
because without compromise there will be discord and conflict, and disintegration rather
than integration of the society. Public officials are given the trust of the public to develop
and carry out policies that are in the public's best interest. Living up to this trust has a
significant impact on the national will; public confidence is essential to the exercise of
national power. Public officials have a moral duty to act in a trust worthy manner. Why,
then, do individuals behave unethically? One reason is the complexity of the issues leaders
deal with, and the difficulty in many instances of determining which the most ethical
alternative is. There are several systemic factors. One is the competition for scarce
resources. It is easy to slip into unethical acts to gain a competitive advantage in the race
for position or power. A second is conflicting loyalties, which Johns labels "the most
troublesome ethical dilemma facing public officials." The Iran Contra affair is a case of
unethical behaviour on the part of North, Poindexter, Secord, and Mc Farlane because of
misplaced loyalty to the executive chain of command. Johns also identifies systemic factors
in groups and teams which can lead to unethical behaviour. One is groupthink, which can
occur in a homogeneous group with a strong leader. A second is the presence of ideologues:
individuals who view their own extreme positions as "right" and any opposing positions as
wrong." A third is the organization's response to dissent. There are few incentives for
"whistleblowers" or those who try to expose unethical behaviour in organizations.
Organizational norms encourage "going along" and discourage questioning the unethical
actions of others. This can quickly compromise ethical standards in any organization.




















12. CAUSES OF UNETHICAL BEHAVIOR
INDIVIDUAL
COMPLEXITY OF STRATEGIC ISSUES OBSCURES ETHICS
COMPETITIONFOR SCARCE RESOURCES/ POWER/POSITION
CONFLICTING LOYALTIESGROUPGROUPTHINKPRESENCE OF
IDEALOGUESNEGATIVE ORGANIZATIONAL RESPONSE TO DISSENT
ETHICS IN PRACTICE
Kenneth R. Andrews, in "Ethics in Practice," contends that there are three aspects to
ethical behaviour in organizations: the development of the individual as an ethical person,
the effect of the organization as an ethical or unethical environment, and the actions or
procedures developed by the organization to encourage ethical behaviour and discourage
unethical behaviour.
INFLUENCES ON ETHICAL BEHAVIOR
PRIOR DEVELOPMENT OF INDIVIDUAL AS ETHICAL PERSON.THE
ORGANIZATION AS AN ETHICAL ENVIRONMENT.PROCEDURES THAT
ENCOURAGE ETHICAL BEHAVIOR. Most of an individual's ethical development
occurs before entering an organization. The influence of family, church, community, and
school will determine individual values. The organization, to a large extent, is dealing with
individuals whose value base has been established. This might imply that ethical
organizations are those fortunate enough to bring in ethical individuals, while unethical
organizations brought in unethical people. But it is not that simple. While the internalized
values of individuals are important, the organization has a major impact on the behaviour of
its members, and can have a positive or negative influence on their values. One example of
the development of ethical individuals is the service academies. In their admissions
processes, the academies attempt to get individuals of good character with the values
integral to the military profession. However, the academies also recognize that their core
values may be different than those prevalent in society, and they devote considerable effort
to the development and internalization of their core values. As is evident from periodic
breaches of integrity at the academies, e.g., cheating scandals, these attempts to instil core
values do not always succeed. There are three qualities individuals must possess to make
ethical decisions. The first is the ability to recognize ethical issues and to reason through
the ethical consequences of decisions. The ability to see second and third order effects, one
of the elements of strategic thinking, is very important. The second is the ability to look at
alternative points of view, deciding what is right in a particular set of circumstances. This is
similar to the ability to reframe. And the third is the ability to deal with ambiguity and
uncertainty; making a decision on the best information available.
ATTRIBUTES FOR ETHICAL DECISIONS
SEEING SECOND- AND THIRD-ORDER CONSEQUENCES-"WARGAMING"
ETHICALCONSEQUENCES OF DECISIONS
SEEING ALTERNATIVE POINTS OF VIEW-REFRAMING
DEALING WITH AMBIGUITY AND UNCERTAINTY-MAKING DECISIONS WITH
BEST INFORMATION AVAILABLE
As important as these individual characteristics are, the influence of the organization is
equally important. The ethical standards that one observes in the organization will have a
significant effect on individual behaviour. "People will do what they are rewarded for
doing" (Andrews). The organization has its greatest impact in the standards it establishes
for ethical and unethical conduct in its formal reward systems. Informal norms also have a
strong influence on individuals' behaviour as do the actions of the leaders of the
organization.

Strategic leaders must understand that their actions, more than words alone, will determine
the operating values in the organization. The influence of the organizational context is
underscored in "Why Be Honest If Honesty Doesn't Pay?" In this article, Bhide and
Stevenson note that there often are no economic or other incentives to encourage ethical
behaviour and discourage unethical behaviour. They contend that it most often is the
dishonest individual who gets ahead, and that cases where unethical behaviour was
punished are far outweighed by those in which there either were no consequences or
unethical behaviour was rewarded. The Gordon Ghekkos of the world (the unethical
corporate executive played by Michael Douglas in the movie "Wall Street") often get
ahead, because they rarely are held to account for their actions. While these observations
might lead one to a cynical view of ethics in organizations, Bhide and Stevenson come to a
different conclusion. They see room for optimism despite the lack of financial gain for
ethical behaviour, or the absence of negative consequences for unethical behaviour. Their
reasoning is based in the fact that so many people do behave ethically, in spite of the
apparent lack of gain. Ethical behaviour must be intrinsically rewarding; and most people
behave ethically because it's the right thing to do. People are guided by their personal value
systems. They often "choose the harder right instead of the easier wrong" specifically
because of their intrinsic values of what is right. hide and Stevenson make this caveat: We
should remember, however, that this...works only as long as most of us live by an
honourable moral compass. Since our trust isn't grounded in self-interest, it is fragile. And,
indeed, we all know of organizations, industries, and even whole societies in which trust
has given way either to a destructive free-for-all or to inflexible rules and bureaucracy.
Only our individual wills, our determination to do what is right, whether or not it is
profitable, save us from choosing between chaos and stagnation.

13. ETHICAL RESPONSES
Chaloupka, in "Ethical Responses: How to Influence One's Organization," asserts that
organization members have only three choices when confronted with unethical behaviour:
exit, voice, or loyalty.
Exit
is the most direct response: if you can't live with behaviour that does not meet your own
ethical standards, leave. However, exit is not only a direct response; it is a final one, so the
personal and organizational consequences must be considered. The most important personal
consequences are the costs. Where do you go from there? What other options are available?
How marketable are you? Can you afford the financial loss? There are specific
organizational consequences as well. Will the ethics of the organization's leaders change?
Will they do business with someone else who doesn't have the high standards you do? In
leaving, one gives up the ability to influence the organization directly. When considering
exit, one must ask, Could I have had more of an impact by remaining in the organization
and trying to change it from within?"
Voice
This means expressing discomfort with and opposition to the observed unethical behaviour.
To whom do you voice your objections? The obvious choice is your supervisor. But what if
your supervisor condones the unethical behaviour, or worse, is its source? You may be
jeopardizing your position, and maybe your membership in the organization. A second
choice is to go to senior management. This also has potential risk. The senior leadership
may be condoning or even directing the unethical behaviour. This action may bring your
loyalty into question. If so, your objections may be covered up or ignored, and you may end
up being forced out of the organization. On the other hand, it may be that the senior
leadership is unaware of the unethical behaviour, and you may have initiated an
organizational response eliminating unethical behaviour and restoring ethical standards. A
third option is to go public, to engage in "whistle blowing." This is also risky, because it
can lead to reprisals with negative consequences. The level of risk depends on the
commitment of the organization to high ethical standards and on its willingness to
encourage whistle blowing in its own best interests. Many organizations have shown
commitment to ferreting out unethical individuals and maintaining high ethical standards by
establishing procedures for anonymous reporting of ethical breaches and safeguards to
protect whistleblowers. Exit and voice may be combined. An individual resigns in protest
and goes public with his or her reasons for leaving. This leaves the individual vulnerable to
the label of an employee who quit before being fired, but it also can lead to increased
credibility as someone acting on conviction in spite of personal cost. Exit combined with
voice is most effective if taken by someone at the upper levels of the organization. An
organization can more easily ignore the "exit +voice" of a lower level employee than it can
the resignation of a strategic leader, followed immediately by a press conference. The
widely publicized resignation of former President Bush from the National Rifle Association
over what he viewed as extreme actions is an example of exit combined with voice. It
undoubtedly had a much greater effect on the NRA than the resignation of someone less
well known and respected. The resignation of James Webb as Secretary of the Navy is
another example of effective exit combined with voice.
Loyalty
The final response to unethical behaviour in an organization is loyalty. This is the
alternative to exit. Instead of leaving, the individual remains and tries to change the
organization from within. Loyalty thus discourages or delays exit. Loyalty also may
discourage public voice, since being loyal to the organization means trying to solve
problems from within without causing public embarrassment or damage. Loyalty can also
encourage unethical behaviour, particularly in organizations which promote loyalty above
all. These organizations discourage exit and voice, and basically want their members to" go
along" with organizational practices. An interesting question is, "Can an individual be loyal
to an organization by engaging in exit or voice as a response to unethical
behaviour?"Chaloupka maintains that both exit and voice must exist for continued
organizational effectiveness. Additionally, an organization cannot maintain high ethical
standards without mechanisms for eliminating unethical behaviour. Also, loyalty is not
always a virtue. Loyalty should be predicated on the organizations ethical demonstration
that it is worthy of loyalty. If the organization condones unethical behaviour,
it relieves the individual of any responsibility to be loyal.

BUILDING AN ETHICAL CLIMATE
How can the strategic leaders of an organization build an ethical climate? Andrews
suggests a number of steps that foster corporate ethics.
First are the actions of the strategic leadership and the way they deal with ethical issues.
The pattern of top leaders' behavior determines organizational values. A second step is
to make explicit ethics policies. Ethical codes are one common example. The next step is to
increase awareness of how to apply those ethical codes. Training on how to deal with
situations with an ethical dimension, and how to anticipate situations that involve ethical
choices, can go a long way toward ethical institutional practices. Another step to increase
the salience of ethics is to expand the information system to focus on areas where ethics
may come into play. Knowing what actually is going on in the organization is essential to
understanding the ethical principles which govern behaviour. The information system
should also support ethical behaviour, and allow the strategic leader to know when or where
there are potential ethical breaches so that corrective action can be taken. The real danger is
that when unethical behaviour is unnoticed, or not punished, members will assume it
is condoned by the organization's leadership.























14. VALUES
At the next level of culture are values
.Values underlies and to a large extent determines behaviour, but they are not directly
observable, as behaviours are. There may be a difference between stated and operating
values. People will attribute their behaviour to stated values.

ASSUMPTIONS AND BELIEFS
To really understand culture, we have to get to the deepest level, the level of
Assumptions and beliefs
. Schein contends that underlying assumptions grow out of values, until they become taken
for granted and drop out of awareness. As the definition above states, and as the cartoon
illustrates, people may be unaware of or unable to articulate the beliefs and assumptions
forming their deepest level of culture. To understand culture, we must understand all three
levels, a difficult task. One additional aspect complicates the study of culture: the group or
cultural unit which "owns" the culture. An organization may have many different cultures
or subcultures, or even no discernible dominant culture at the organizational level.
Recognizing the cultural unit is essential to identifying and understanding the culture.
Organizational cultures are created, maintained, or transformed by people. An
organizations culture is, in part, also created and maintained by the organizations
leadership. Leaders at the executive level are the principle source for the generation and re-
infusion of an organization's ideology, articulation of core values and specification of
norms.
Organizational values
Express preferences for certain behaviours or certain outcomes.


Organizational norms
Express behaviours accepted by others. They are culturally acceptable ways of pursuing
goals. Leaders also establish the parameters for formal lines of communication and message
content-the formal interaction rules for the organization. Values and norms, once
transmitted through the organization, establish the permanence of the organization's culture



















15. STRATEGIC VISION
A specialist was hired to develop and present a series of half-day training seminars on
empowerment and team work for the managers of a large international oil company. Fifteen
minutes into the first presentation, he took a headlong plunge into the trap of assumption.
With great intent, he laid the ground work for what he considered the heart of
empowerment-team-building, family, and community. He praised the need for energy,
commitment, and passion for production.
At what he thought was the appropriate time; he asked the group of 40 managers the simple
question on which he was to ground his entire talk: "What is the vision of your company?"
No one raised a hand. The speaker thought they might be shy, so he gently encouraged
them. The room grew deadly silent. Everyone was looking at everyone else, and he had as
inking sensation in his stomach. "Your company does have a vision, doesn't it?" he asked.
A few people shrugged, and a few shook their heads. He was dumbfounded. How could any
group or individual strive toward greatness and mastery without a vision? That's exactly the
point. They can't. They can maintain, they can survive; but they can't expect to achieve
greatness.









CORE BELIEFS AND VALUES
Just as they underlie organizational culture, beliefs and values are a critical part of guiding
philosophy and therefore vision. One CEO expressed the importance of core values and
beliefs this way: I firmly believe that any organization, in order to survive and achieve
success, must have a sound set of beliefs on which it premises all its policies and actions.
Next, I believe that the most important single factor in corporate success is faithful
adherence to those beliefs. And, finally, I believe [the organization] must be willing to
change everything about itself except those beliefs as it moves through corporate life.
(Collins and Porras 1991)Core values and beliefs can relate to different constituents such as
customers, employees, and shareholders, to the organization's goals, to ethical conduct, or
to the organization's management and leadership philosophy. Baxter Healthcare
Corporation has articulated three
Shared Values: Respect for their Employees, Responsiveness to their Customers, and
Results for their Shareholders the has been studied from the point to point view of Parle
biscuits; mainly Parle-G and Parle Hide & Seek.










16. PARLE G THE EVOLUTION
Has been a strong household name across India. The great taste, high nutrition,
And the international quality makes Parleg a winner. No wonder, its theundisputed leader in
the biscuit category for decades. It is consumed by people of all ages, from the rich to the
poor, living in cities & in villages. While some have it for breakfast, for others it is a
complete wholesome meal. For some its the best accompaniment for chai, while for some
its a way of getting charged whenever they are low on energy. Because of this, Parle-G
is the worlds largest selling brand of biscuits. Launched in the year 1939, it was one of the
first brands of Parle products. It was called Parle Glucose Biscuits mainly to cute that it was
a glucose biscuit. It was manufactured at the Mumbai factory, Vile Parle and sold in units
of half and quarter pound packs.

Functional Departments of the Organization
1. Marketing Department
2. Finance Department
3. HR & Personnel Department
4. Production Department
5. Engineering Department
6. Quality Department
7. R & D Department
8. Sales & Dispatch Department




17. Growth and Development of The Organization
Over the years, Parle has grown to become a multi-million US Dollar company. Today,
Parle enjoys a 40% share of the total biscuit market and a 15% share of the total
confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and
Krackjack and confectionery brands, such as, Melody, Poppins, Mango bite and Kismi,
enjoy a strong imagery and appeal amongst consumers. Then the Parle representatives
includes the production officer and the
operationshead made students exposed to the production unit followed by themanufacturin
g unit and packaging. The extensive distribution network, built over the years, is a major
strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the
most remote places and in the smallest of villages with a population of just
500.The Parle marketing philosophy emphasizes catering to the masses. Weconstantly
endeavour at designing products that provide nutrition & fun to the common man. Most
Parle offerings are in the low & mid-range price segments.
Thisisbasedonour cultivated understanding of the Indian consumer psyche. The value-for-
money positioning helps generate large sales volumes for the products. However, Parle
Products also manufactures a variety of premium products for the up-market, urban
consumers. And in this way, caters a range of products to a variety of consumers. In
nutshell, the Parle name conjures up fond memories across the length and breadth of the
country.





18. Market profile of the organisation
Its a brand that has held its price line at Rs 4 for 25 years now -- the price was last raised
in 1994 by 25 paise. So, it's not for nothing that Parle-G is the worlds largest-selling
biscuit by volumes. Parle is, of course, not doing it for charity. Soaring input prices meant
it opted for reducing the weight of the biscuit than increasing the price -- first from 100 gm
to 92.5 gm in January 2008, and then to88 gm in January this year -- in line with other
biscuit-makers and FMCG players. It has 1600 crore turnover. Parle-G enjoys close to 70
per cent market share in the glucose biscuit category and probably has the deepest reach. It
reaches 2.5 million outlets, including villages with a population of 500 people, on a par
with Unilever's Lifebuoy,
ITC'scigarettes or mobile prepaid cards. It reaches 2.5 million outlets, includingvillages
with a population of 500 people, on a par with Unilever's Lifebuoy, ITC'scigarettes or
mobile pre-paid cards. It's also one of the few FMCG brands in
thecountry, whose customers straddle across income segments. The brand isestimated to be
worth over Rs 2,000 crore (Rs 20 billion),
and contributes morethan 50 per cent of the company's turnover (Parle Products is an unlist
edcompany and its executives are not comfortable disclosing exact numbers). Last fiscal,
Parle had sales of Rs 3,500 crore (Rs 35 billion).Competition has, of course, been trying to
wean away customers from Parle.Britannia relaunched its Glucose-D biscuit as Tiger in
1995 and boasts of 17-18per cent share, while ITC's Sun feast glucose has captured 8-
9 per cent,according to industry sources. Even Levers had forayed into this segment in
2003and launched a glucose biscuit branded as Modern, after it acquired
the bakerybusiness of Modern. There are strong regional brands, including Priya Gold
(west), Cremica (north) and Anmol (east)

19. CONCLUSION
Employee Engagement is the buzz word term for employeecommunication. It is a positive a
ttitude held by the employeestowards the organization and its values. It is rapidly gaining
popularity, use and importance in the workplace and impacts Organizations in many ways.
Employee engagement emphasizes the importance of employee communication on the
success of a business. An organization should thus recognize employees, more
than any other variable, as powerful contributors to a company's competitive
Position. Therefore employee engagement should be a continuous process of learning,
improvement, measurement and action. We would hence conclude that raising and
maintaining employee engagement lies in the hands of an organization and requires a
perfect blend of time, effort, commitment and investment to craft a successful endeavour.
Employee engagement is the sum total of the work place behaviour demonstrated by the
people. Such behaviour is characterized by:
1. Belief in the organization
2. Drive to work to make things better
3. Understanding of business context
4. Respect and support for others
5. Desire to learn new skills.
The level of employee engagement affects key results such as sales,
customer satisfaction, and innovation and employee turnover. An engaged workforce is
capable of delivering sustained differentiation and a significant competitive advantage.




20. REFERANCES