Project Report

On

“Code of Conduct & Business Ethics”

at

mjunction Services Ltd, Kolkata

By

Name :- Sripu Nair

Roll Number :- 520852135
LC Code :- 01842
Course: --MBA (4th Sem)

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 GUIDANCE CERTIFICATE

This is to certify that Miss. Sripu Nair, Roll Number– 520852135 of Sikkim Manipal
University, DE has undertaken the Project Title “Code of Conduct & Business
Ethics” under my guidance at mjunction services ltd, Tata Centre, 1st Floor, 43,
J.L Nehru Road, Kolkata– 700071.

Organizational Seal Mrs. Sanchita

Bandopadhyay
Ehtics Councellor
Mjunction
Services Ltd

[External Guide’s Signature]

Mr S.K Haldar
Faculty
Sikkim Manipal
University

2
 [Internal Guide
Full Signature]

3
 ACKNOWLEDGEMENT

At the onset, I would like to thank the organization mjunction services ltd for
providing me the opportunity to do the project on “Code of conduct & Business
Ethics”

I am grateful to my organization guide Mrs Sanchita Bandopadhyay Ethics

Councellor, who gave me an opportunity to get exposure to the working of the
organization, for his valuable guidance at each stage of the project.

I express my profound gratitude to my faculty guide, Mr S.K Halder who helped me

with his guidance during the project.

Sripu Nair

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 EXECUTIVE SUMMARY

Project Tile :-

Business Ethics and Code of Conduct

Purpose and Methods undertaken :-

The purpose was to give the importance of ethical value and code of conduct in
the organization and then continuously obey and maintain the rule of the ethical
conduct.

Recommendation :-

Emphasis on Corporate Governance – Ethics team

Code of conduct will be sent to Stakeholders (Clients, suppliers, bidders)
Induction sessions, Awareness sessions, publishing articles in house magazines –
Ethics & Content team.
Inviting renowned leaders to share ethical values
COC hoardings in all our offices- Marketing team
Ethical values to be included in our brand book, corporate film - Marketing team
Holding dramas/skits/debates – Fun team
To institutionalize negative impact on appraisal for violation of COC – HR

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6
 UNDERSTANDING ETHICS

Ethics :

Ethics involves learning “what is right or wrong”, and then doing the right
thing. It is considered to be the “Science of Conduct”

Business Ethics :

The concept has come to mean various things to various people, but generally it’s
coming to know what is right or wrong in the workplace and doing the right. This
course in business ethics is not primarily about how to stay out of jail, although
legal concerns will be given some coverage. Neither is it devoted to simple
functional calculations of how to take the moral and other values of your potential
customers or employers/employees into account for marketing purposes, although
some of these considerations will be touched upon, as well. The import of the
course is to cover what it means to say that businesses and professionals ought to
engage or not engage in particular activities with reference to value claims other
than the ledger's bottom line.

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Students will thus come to comprehend the various bases from traditional
philosophical and theological sources for discerning professional, ethical practices.
Application of these studies will follow, with individual and team-oriented case
studies that highlight contemporary ethical conundrums in business and technology
settings, nationally and globally.

In other words attention to ethics in the work place is Business Ethics which
helps retain a strong moral compass.

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Broad Areas of Business Ethics:

• 1. Managerial mischief:--Madsen and Shafritz, in their book "Essentials of

Business Ethics" (Penguin Books, 1990) further explain that "managerial
mischief" includes "illegal, unethical, or questionable practices of individual
managers or organizations, as well as the causes of such behaviors and
remedies to eradicate them." There has been a great deal written about
managerial mischief, leading many to believe that business ethics is merely a
matter of preaching the basics of what is right and wrong. More often,
though, business ethics is a matter of dealing with dilemmas that have no
clear indication of what is right or wrong.

• 2. Moral mazes.:-- The other broad area of business ethics is "moral mazes
of management" and includes the numerous ethical problems that managers
must deal with on a daily basis, such as potential conflicts of interest,
wrongful use of resources, mismanagement of contracts and agreements, etc

- potential conflicts of interest,

- wrongful use of resources,
- mismanagement of contracts and agreements, etc.

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Business Ethics is Now a Management Discipline

Business ethics has come to be considered a management discipline, especially

since the birth of the social responsibility movement in the 1960s. In that decade,
social awareness movements raised expectations of businesses to use their massive
financial and social influence to address social problems such as poverty, crime,
environmental protection, equal rights, public health and improving education.
An increasing number of people asserted that because businesses were making a
profit from using our country's resources, these businesses owed it to our country
to work to improve society. Many researchers, business schools and managers have
recognized this broader constituency, and in their planning and operations have
replaced the word "stockholder" with "stakeholder," meaning to include employees,
customers, suppliers and the wider community.

The emergence of business ethics is similar to other management disciplines. For

example, organizations realized that they needed to manage a more positive image
to the public and so the recent discipline of public relations was born.
Organizations realized they needed to better manage their human resources and so
the recent discipline of human resources was born. As commerce became more
complicated and dynamic, organizations realized they needed more guidance to
ensure their dealings supported the common good and did not harm others -- and
so business ethics was born.

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Note that 90% of business schools now provide some form of training in business
ethics. Today, ethics in the workplace can be managed through use of codes of
ethics, codes of conduct, roles of ethicists and ethics committees, policies and
procedures, procedures to resolve ethical dilemmas, ethics training, etc.

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 10 Myths About Business Ethics

Business ethics in the workplace is about prioritizing moral values for the
workplace and ensuring behaviors are aligned with those values -- it's values
management. Yet, myths abound about business ethics. Some of these myths
arise from general confusion about the notion of ethics. Other myths arise from
narrow or simplistic views of ethical dilemmas.

1. Myth: Business ethics is more a matter of religion than management.

Diane Kirrane, in "Managing Values: A Systematic Approach to Business

Ethics,"(Training and Development Journal, November 1990), asserts
that "altering people's values or souls isn't the aim of an organizational
ethics program -- managing values and conflict among them is ..."

2. Myth: Our employees are ethical so we don't need attention to

business ethics.

Most of the ethical dilemmas faced by managers in the workplace are

highly complex. Wallace explains that one knows when they have a
significant ethical conflict when there is presence of a) significant
value conflicts among differing interests, b) real alternatives that are

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 2. Myth: Our employees are ethical so we don't need attention to
business ethics.

Most of the ethical dilemmas faced by managers in the workplace are

highly complex. Wallace explains that one knows when they have a
significant ethical conflict when there is presence of a) significant
value conflicts among differing interests, b) real alternatives that are
equality justifiable, and c) significant consequences on "stakeholders"
in the situation. Kirrane mentions that when the topic of business
ethics comes up, people are quick to speak of the Golden Rule,
honesty and courtesy. But when presented with complex ethical
dilemmas, most people realize there's a wide "gray area" when trying
to apply ethical principles.

3. Myth: Business ethics is a discipline best led by philosophers,

academics and theologians.

Lack of involvement of leaders and managers in business ethics

literature and discussions has led many to believe that business ethics
is a fad or movement, having little to do with the day-to-day realities
of running an organization. They believe business ethics is primarily a
complex philosophical debate or a religion. However, business ethics
is a management discipline with a programmatic approach that
includes several practical tools. Ethics management programs have
practical applications in other areas of management areas, as well.
(These applications are listed later on in this document.)

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 4. Myth: Business ethics is superfluous -- it only asserts the obvious: "do
good!"
Many people react that codes of ethics, or lists of ethical values to
which the organization aspires, are rather superfluous because they
represent values to which everyone should naturally aspire. However,
the value of a codes of ethics to an organization is its priority and
focus regarding certain ethical values in that workplace. For example,
it’s obvious that all people should be honest. However, if an
organization is struggling around continuing occasions of deceit in the
workplace, a priority on honesty is very timely -- and honesty should
be listed in that organization’s code of ethics. Note that a code of
ethics is an organic instrument that changes with the needs of society
and the organization.

5. Myth: Business ethics is a matter of the good guys preaching to the

bad guys.
Some writers do seem to claim a moral high ground while lamenting
the poor condition of business and its leaders. However, those people
well versed in managing organizations realize that good people can
take bad actions, particularly when stressed or confused. (Stress or
confusion are not excuses for unethical actions -- they are reasons.)
Managing ethics in the workplace includes all of us working together
to help each other remain ethical and to work through confusing and
stressful ethical dilemmas.

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 6. Myth: Business ethics in the new policeperson on the block.

Many believe business ethics is a recent phenomenon because of

increased attention to the topic in popular and management
literature. However, business ethics was written about even 2,000
years ago -- at least since Cicero wrote about the topic in his On
Duties. Business ethics has gotten more attention recently because of
the social responsibility movement that started in the 1960s.

7. Myth: Ethics can't be managed.

Actually, ethics is always "managed" -- but, too often, indirectly. For

example, the behavior of the organization's founder or current leader
is a strong moral influence, or directive if you will, on behavior or
employees in the workplace. Strategic priorities (profit maximization,
expanding marketshare, cutting costs, etc.) can be very strong
influences on morality. Laws, regulations and rules directly influence
behaviors to be more ethical, usually in a manner that improves the
general good and/or minimizes harm to the community. Some are still
skeptical about business ethics, believing you can't manage values in
an organization. Donaldson and Davis (Management Decision, V28, N6)
note that management, after all, is a value system. Skeptics might
consider the tremendous influence of several "codes of ethics," such
as the "10 Commandments" in Christian religions or the U.S.
Constitution. Codes can be very powerful in smaller "organizations" as
well.

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 8. Myth: Business ethics and social responsibility are the same thing.

The social responsibility movement is one aspect of the overall

discipline of business ethics. Madsen and Shafritz refine the definition
of business ethics to be: 1) an application of ethics to the corporate
community, 2) a way to determine responsibility in business dealings,
3) the identification of important business and social issues, and 4) a
critique of business. Items 3 and 4 are often matters of social
responsibility. (There has been a great deal of public discussion and
writing about items 3 and 4. However, there needs to be more written
about items 1 and 2, about how business ethics can be managed.)
Writings about social responsibility often do not address practical
matters of managing ethics in the workplace, e.g., developing codes,
updating polices and procedures, approaches to resolving ethical
dilemmas, etc.

9. Myth: Our organization is not in trouble with the law, so we're ethical.
One can often be unethical, yet operate within the limits of the law,
e.g., withhold information from superiors, fudge on budgets,
constantly complain about others, etc. However, breaking the law
often starts with unethical behavior that has gone unnoticed. The
"boil the frog" phenomena is a useful parable here: If you put a frog in
hot water, it immediately jumps out. If you put a frog in cool water
and slowly heat up the water, you can eventually boil the frog. The
frog doesn't seem to notice the adverse change in its environment.

10. Myth: Managing ethics in the workplace has little practical relevance.
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 Managing ethics in the workplace involves identifying and prioritizing
values to guide behaviors in the organization, and establishing
associated policies and procedures to ensure those behaviors are
conducted. One might call this "values management." Values
management is also highly important in other management practices,
e.g., managing diversity, Total Quality Management and strategic
planning.

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 10 Benefits of Managing Ethics in the Workplace

Many people are used to reading or hearing of the moral benefits of attention to
business ethics. However, there are other types of benefits, as well. The
following list describes various types of benefits from managing ethics in the
workplace.

1. Attention to business ethics has substantially improved society.

A matter of decades ago, children in our country worked 16-hour

days. Workers’ limbs were torn off and disabled workers were
condemned to poverty and often to starvation. Trusts controlled some
markets to the extent that prices were fixed and small businesses
choked out.

Price fixing crippled normal market forces. Employees were

terminated based on personalities. Influence was applied through
intimidation and harassment. Then society reacted and demanded
that businesses place high value on fairness and equal rights. Anti-
trust laws were instituted. Government agencies were established.
Unions were organized. Laws and regulations were established.

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 2. Ethics programs help maintain a moral course in turbulent times.

As noted earlier in this document, Wallace and Pekel explain that

attention to business ethics is critical during times of fundamental
change -- times much like those faced now by businesses, both
nonprofit or for-profit. During times of change, there is often no clear
moral compass to guide leaders through complex conflicts about what
is right or wrong. Continuing attention to ethics in the workplace
sensitizes leaders and staff to how they want to act -- consistently.

3. Ethics programs cultivate strong teamwork and productivity.

Ethics programs align employee behaviors with those top priority

ethical values preferred by leaders of the organization. Usually, an
organization finds surprising disparity between its preferred values
and the values actually reflected by behaviors in the workplace.
Ongoing attention and dialogue regarding values in the workplace
builds openness, integrity and community -- critical ingredients of
strong teams in the workplace. Employees feel strong alignment
between their values and those of the organization. They react with
strong motivation and performance.

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 4. Ethics programs support employee growth and meaning.

Attention to ethics in the workplace helps employees face reality,

both good and bad -- in the organization and themselves. Employees
feel full confidence they can admit and deal with whatever comes
their way. Bennett, in his article "Unethical Behavior, Stress Appear
Linked" (Wall Street Journal, April 11, 1991, p. B1), explained that a
consulting company tested a range of executives and managers. Their
most striking finding: the more emotionally healthy executives, as
measured on a battery of tests, the more likely they were to score
high on ethics tests.

5. Ethics programs are an insurance policy -- they help ensure that

policies are legal.
There is an increasing number of lawsuits in regard to personnel
matters and to effects of an organization’s services or products on
stakeholders. As mentioned earlier in this document, ethical
principles are often state-of-the-art legal matters. These principles
are often applied to current, major ethical issues to become
legislation. Attention to ethics ensures highly ethical policies and
procedures in the workplace. It’s far better to incur the cost of
mechanisms to ensure ethical practices now than to incur costs of
litigation later.

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 A major intent of well-designed personnel policies is to ensure ethical
treatment of employees, e.g., in matters of hiring, evaluating,
disciplining, firing, etc. Drake and Drake (California Management
Review, V16, pp. 107-123) note that “an employer can be subject to
suit for breach of contract for failure to comply with any promise it
made, so the gap between stated corporate culture
and actual practice has significant legal, as well as ethical
implications.”

6. Ethics programs help avoid criminal acts “of omission” and can lower
fines.
Ethics programs tend to detect ethical issues and violations early on
so they can be reported or addressed. In some cases, when an
organization is aware of an actual or potential violation and does not
report it to the appropriate authorities, this can be considered a
criminal act, e.g., in business dealings with certain government
agencies, such as the Defense Department. The recent Federal
Sentencing Guidelines specify major penalties for various types of
major ethics violations. However, the guidelines potentially lowers
fines if an organization has clearly made an effort to operate
ethically.

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 7. Ethics programs help manage values associated with quality
management, strategic planning and diversity management -- this
benefit needs far more attention.

Ethics programs identify preferred values and ensuring organizational

behaviors are aligned with those values. This effort includes recording
the values, developing policies and procedures to align behaviors with
preferred values, and then training all personnel about the policies
and procedures. This overall effort is very useful for several other
programs in the workplace that require behaviors to be aligned with
values, including quality management, strategic planning and diversity
management. Total Quality Management includes high priority on
certain operating values, e.g., trust among stakeholders,
performance, reliability, measurement, and feedback. Eastman and
Polaroid use ethics tools in their quality programs to ensure integrity
in their relationships with stakeholders. Ethics management
techniques are highly useful for managing strategic values, e.g.,
expand marketshare, reduce costs, etc. McDonnell Douglas integrates
their ethics programs into their strategic planning process. Ethics
management programs are also useful in managing diversity. Diversity
is much more than the color of people’s skin -- it’s acknowledging
different values and perspectives. Diversity programs require
recognizing and applying diverse values and perspectives -- these
activities are the basis of a sound ethics management program.

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 8. Ethics programs promote a strong public image.

Attention to ethics is also strong public relations -- admittedly,

managing ethics should not be done primarily for reasons of public
relations. But, frankly, the fact that an organization regularly gives
attention to its ethics can portray a strong positive to the public.
People see those organizations as valuing people more than profit, as
striving to operate with the utmost of integrity and honor. Aligning
behavior with values is critical to effective marketing and public
relations programs. Consider how Johnson and Johnson handled the
Tylenol crisis versus how Exxon handled the oil spill in Alaska. Bob
Dunn, President and CEO of San Francisco-based Business for Social
Responsibility, puts it best: “Ethical values, consistently applied, are
the cornerstones in building a commercially successful and socially
responsible business.”

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 9. Overall benefits of ethics programs:

Donaldson and Davis, in “Business Ethics? Yes, But What Can it Do for
the Bottom Line?” (Management Decision, V28, N6, 1990) explain that
managing ethical values in the workplace legitimizes managerial
actions, strengthens the coherence and balance of the organization’s
culture, improves trust in relationships between individuals and
groups, supports greater consistency in standards and qualities of
products, and cultivates greater sensitivity to the impact of the
enterprise’s values and messages.

10. Last - and most – “formal attention to ethics in the workplace is

the right thing to do.”

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 Description of a Highly Ethical Organization

Mark Pastin, in The Hard Problems of Management: Gaining the Ethics Edge
(Jossey-Bass, 1986), provides the following four principles for highly ethical
organizations:

1. They are at ease interacting with diverse internal and external

stakeholder groups. The groundrules of these firms make the good of
these stakeholder groups part of the organizations' own good.
2. They are obsessed with fairness. Their groundrules emphasize that
the other persons' interests count as much as their own.
3. Responsibility is individual rather than collective, with individuals
assuming personal responsibility for actions of the organization. These
organizations' groundrules mandate that individuals are responsible to
themselves.
4. They see their activities in terms of purpose. This purpose is a way
of operating that members of the organization highly value. And
purpose ties the organization to its environment.

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 Doug Wallace asserts the following characteristics of a high integrity
organization:

1. There exists a clear vision and picture of integrity throughout the

organization.
2. The vision is owned and embodied by top management, over time.
3. The reward system is aligned with the vision of integrity.
4. Policies and practices of the organization are aligned with the
vision; no mixed messages.
5. It is understood that every significant management decision has
ethical value dimensions.
6. Everyone is expected to work through conflicting-stakeholder value
perspectives.

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 Ethics Management Programs: An Overview

About Ethics Management Programs :

Organizations can manage ethics in their workplaces by establishing an ethics

management program. Brian Schrag, Executive Secretary of the Association
for Practical and Professional Ethics, clarifies. "Typically, ethics programs
convey corporate values, often using codes and policies to guide decisions
and behavior, and can include extensive training and evaluating, depending
on the organization. They provide guidance in ethical dilemmas." Rarely are
two programs alike.

"All organizations have ethics programs, but most do not know that they do,"
wrote business ethics professor Stephen Brenner in the Journal of Business
Ethics (1992, V11, pp. 391-399). "A corporate ethics program is made up of
values, policies and activities which impact the propriety of organization
behaviors."

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 Bob Dunn, President and CEO of San Francisco-based Business for Social
Responsibility, adds: "Balancing competing values and reconciling them is a
basic purpose of an ethics management program. Business people need more
practical tools and information to understand their values and how to
manage them."

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 Benefits of Managing Ethics as a Program

There are numerous benefits in formally managing ethics as a program, rather

than as a one-shot effort when it appears to be needed.

Ethics programs:

 Establish organizational roles to manage ethics

 Schedule ongoing assessment of ethics requirements
 Establish required operating values and behaviors
 Align organizational behaviors with operating values
 Develop awareness and sensitivity to ethical issues Integrate
ethical guidelines to decision making
 Structure mechanisms to resolving ethical dilemmas
 Facilitate ongoing evaluation and updates to the program
 Help convince employees that attention to ethics is not just a
knee-jerk reaction done to get out of trouble or improve public image

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 8 Guidelines for Managing Ethics in the Workplace

The following guidelines ensure the ethics management program is operated in a

meaningful fashion:

1.Recognize that managing ethics is a process.

Ethics is a matter of values and associated behaviors. Values are
discerned through the process of ongoing reflection. Therefore, ethics
programs may seem more process-oriented than most management
practices. Managers tend to be skeptical of process-oriented
activities, and instead prefer processes focused on deliverables with
measurements. However, experienced managers realize that the
deliverables of standard management practices (planning, organizing,
motivating, controlling) are only tangible representations of very
process-oriented practices. For example, the process of strategic
planning is much more important than the plan produced by the
process. The same is true for ethics management. Ethics programs do
produce deliverables, e.g., codes, policies and procedures, budget
items, meeting minutes, authorization forms, newsletters, etc.
However, the most important aspect from an ethics management
program is the process of reflection and dialogue that produces these
deliverables.

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 2. The bottom line of an ethics program is accomplishing preferred
behaviors in the workplace.

As with any management practice, the most important outcome is

behaviors preferred by the organization. The best of ethical values
and intentions are relatively meaningless unless they generate fair
and just behaviors in the workplace. That's why practices that
generate lists of ethical values, or codes of ethics, must also
generate policies, procedures and training that translate those
values to appropriate behaviors.

3. The best way to handle ethical dilemmas is to avoid their occurrence

in the first place.

That's why practices such as developing codes of ethics and codes of

conduct are so important. Their development sensitizes employees
to ethical considerations and minimize the chances of unethical
behavior occurring in the first place.

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 4. Make ethics decisions in groups, and make decisions public, as
appropriate.

This usually produces better quality decisions by including diverse

interests and perspectives, and increases the credibility of the
decision process and outcome by reducing suspicion of unfair bias.

5. Integrate ethics management with other management practices.

When developing the values statement during strategic planning,

include ethical values preferred in the workplace. When developing
personnel policies, reflect on what ethical values you'd like to be most
prominent in the organization's culture and then design policies to
produce these behaviors.

6. Use cross-functional teams when developing and implementing the

ethics management program.

It’s vital that the organization’s employees feel a sense of

participation and ownership in the program if they are to adhere to its
ethical values. Therefore, include employees in developing and
operating the program.

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 7. Value forgiveness.

This may sound rather religious or preachy to some, but it’s probably
the most important component of any management practice. An
ethics management program may at first actually increase the number
of ethical issues to be dealt with because people are more sensitive to
their occurrence. Consequently, there may be more occasions to
address people’s unethical behavior. The most important ingredient
for remaining ethical is trying to be ethical. Therefore, help people
recognize and address their mistakes and then support them to
continue to try operate ethically.

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 8. Note that trying to operate ethically and making a few mistakes is
better than not trying at all.

Some organizations have become widely known as operating in a

highly ethical manner, e.g., Ben and Jerrys, Johnson and Johnson,
Aveda, Hewlett Packard, etc. Unfortunately, it seems that when an
organization achieves this strong public image, it's placed on a
pedestal by some business ethics writers. All organizations are
comprised of people and people are not perfect. However, when a
mistake is made by any of these organizations, the organization has a
long way to fall. In our increasingly critical society, these
organizations are accused of being hypocritical and they are soon
pilloried by social critics. Consequently, some leaders may fear
sticking their necks out publicly to announce an ethics management
program. This is extremely unfortunate. It's the trying that counts
and brings peace of mind -- not achieving an heroic status in society.

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 6 Key Roles and Responsibilities in Ethics Management

Depending on the size of the organization, certain roles may prove useful in
managing ethics in the workplace. These can be full-time roles or part-time
functions assumed by someone already in the organization. Small organizations
certainly will not have the resources to implement each the following roles
using different people in the organization. However, the following functions
points out responsibilities that should be included somewhere in the
organization.

1. The organization's chief executive must fully support the program.

If the chief executive isn't fully behind the program, employees will
certainly notice -- and this apparent hypocrisy may cause such
cynicism that the organization may be worse off than having no formal
ethics program at all. Therefore, the chief executive should announce
the program, and champion its development and implementation.
Most important, the chief executive should consistently aspire to lead
in an ethical manner. If a mistake is made, admit it.

2. Consider establishing an ethics committee at the board level.

The committee would be charged to oversee development and
operation of the ethics management program.

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 3. Consider establishing an ethics management committee.

It would be charged with implementing and administrating an ethics

management program, including administrating and training about
policies and procedures, and resolving ethical dilemmas. The
committee should be comprised of senior officers.

4. Consider assigning/developing an ethics officer.

This role is becoming more common, particularly in larger and more

progressive organizations. The ethics officer is usually trained about
matters of ethics in the workplace, particularly about resolving
ethical dilemmas.

5. Consider establishing an ombudsperson.

The ombudsperson is responsible to help coordinate development of

the policies and procedures to institutionalize moral values in the
workplace. This position usually is directly responsible for resolving
ethical dilemmas by interpreting policies and procedures.

6. Note that one person must ultimately be responsible for managing

the ethics management program.

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Ethics Tools: Codes of Ethics

About Codes of Ethics

According to Wallace, "A credo generally describes the highest values to

which the company aspires to operate. It contains the `thou shalt's. A code
of ethics specifies the ethical rules of operation. It's the `thou shalt not's." In
the latter 1980s, The Conference Board, a leading business membership
organization, found that 76% of corporations surveyed had codes of ethics.
Some business ethicists disagree that codes have any value. Usually they
explain that too much focus is put on the codes themselves, and that codes
themselves are not influential in managing ethics in the workplace. Many
ethicists note that it's the developing and continuing dialogue around the
code's values that is most important.

Occasionally, employees react to codes with suspicion, believing the values

are "motherhood and apple pie" and codes are for window dressing. But,
when managing a complex issue, especially in a crisis, having a code is
critical. More important, it's having developed a code. In the mid-70s,
Johnson and Johnson updated their credo in a series of challenge meetings.
Bob Kniffin, Vice President of External Affairs, explains, "We pored over each
phrase and word.

37
 We asked ourselves, `Do we still believe this?' Our meetings resulted in some
fine tuning, but basically we didn't change the values. The meetings infused
the values in the minds of all of us managers." Many believe this process
guided them in their well-known decision to pull Tylenol bottles off the
shelves and repackage them at a $100 million expense. Kniffin offers some
sound, practical advice. "In a crisis, there's no time for moral conclusions.
Get those done beforehand. But also realize there's no substitute for sound
crisis management. For example, have a list of people with fundamental
knowledge, such as who transports your products where and when."

38
 Developing Codes of Ethics

Note that if your organization is quite large, e.g., includes several large
programs or departments, you may want to develop an overall corporate
code of ethics and then a separate code to guide each of your programs or
departments.

Also note that codes should not be developed out of the Human Resource or
Legal departments alone, as is too often done. Codes are insufficient if
intended only to ensure that policies are legal. All staff must see the ethics
program being driven by top management.

Note that codes of ethics and codes of conduct may be the same in some
organizations, depending on the organization's culture and operations and on
the ultimate level of specificity in the code(s). Optional: Also see in the Free
Management Library at http://www.managementhelp.org:

39
 1. Organizational Culture - review to get a basic
understanding of "personalities" of organizations

2. Strategic Planning - specific to developing a

Values Statement

3. Valuing Diversity- to consider that there are

other values and perspectives

Consider the following guidelines when developing codes of ethics:

1. Review any values need to adhere to relevant laws and regulations;

This ensures your organization is not (or is not near) breaking any of
them. (If you are breaking any of them, you may be far better off to
report this violation than to try hide the problem. Often, a reported
violation generates more leniency than outside detection of an
unreported violation, particularly per the new Federal Sentencing
Guidelines.) Increase priority on values that will help your
organization operate to avoid breaking these laws and to follow
necessary regulations.

40
 2. Review which values produce the top three or four traits of a highly
ethical and successful product or service in your area, e.g., for
accountants: objectivity, confidentiality, accuracy, etc. Identify which
values produce behaviors that exhibit these traits.

3. Identify values needed to address current issues in your workplace.

Appoint one or two key people to interview key staff to collect

descriptions of major issues in the workplace. Collect descriptions of
behaviors that produce the issues. Consider which of these issues is
ethical in nature, e.g.., issues in regard to respect, fairness and
honesty. Identify the behaviors needed to resolve these issues.
Identify which values would generate those preferred behaviors.
There may be values included here that some people would not deem
as moral or ethical values, e.g., team-building and promptness, but
for managers, these practical values may add more relevance and
utility to a code of ethics.

4. Identify any values needed, based on findings during strategic

planning.
Review information from your SWOT analysis (identifying the
organization's strengths, weaknesses, opportunities and threats). What
behaviors are needed to build on strengths, shore up weaknesses, take
advantage of opportunities and guard against threats?

41
 5. Consider any top ethical values that might be prized by stakeholders.
For example, consider expectations of employees, clients/customers,
suppliers, funders, members of the local community, etc.

6. Collect from the above steps, the top five to ten ethical values which
are high priorities in your organization (see item #7 below for
examples).

7. Examples of ethical values might include (the following list is the "Six
Pillars of Character" developed by The Josephson Institute of Ethics, 310-306-
1868):

a) Trustworthiness: honesty, integrity, promise-keeping,

loyalty

b) Respect: autonomy, privacy, dignity, courtesy,

tolerance, acceptance

c) Responsibility: accountability, pursuit of excellence

42
 d) Caring: compassion, consideration, giving, sharing,
kindness, loving

e) Justice and fairness: procedural fairness, impartiality,

consistency, equity, equality, due process

f) Civic virtue and citizenship: law abiding, community

service, protection of environment

43
 Ethics Tools: Codes of Conduct

About Codes of Conduct

"Codes of conduct specify actions in the workplace and codes of ethics are
general guides to decisions about those actions," explains Craig Nordlund,
Associate General Counsel and Secretary at Hewlett Packard. He suggests
that codes of conduct contain examples of appropriate behavior to be
meaningful.

The Conference Board found that codes of conduct are increasingly

sophisticated and focused at lower levels in companies. Departments
frequently have their own codes. Be careful, though. An organization could
be sued for breach of contract if its practices are not in accord with its
policies. That’s why legal departments should review codes of conduct and
other ethics policies. Also, that’s why it’s critical for organizations to review
their policies at least once a year to ensure they are in accordance with laws
and regulations.

Optional: also see in the Free Management Library at

http://www.managementhelp.org:
1. Employee Law - review major issues and topics to discern what
behaviors to avoid in the workplace
2. Policies (Personnel) - review more specifics about what behaviors
to avoid Developing a Code of Conduct

44
 Corporate Code of Conduct

Note that if your organization is quite large, e.g., includes several large
programs or departments, you may want to develop an overall corporate
code of conduct, and then a separate code to guide each of your programs
or departments. Consider the following guidelines when developing
corporate codes of conduct:

1. Identify key behaviors needed to adhere to the ethical values

proclaimed in your code of ethics, including ethical values derived
from review of key laws and regulations, ethical behaviors needed in
your product or service area, behaviors to address current issues in
your workplace, and behaviors needed to reach strategic goals.

2. Include wording that indicates all employees are expected to conform

to the behaviors specified in the code of conduct. Add wording that
indicates where employees can go if they have any questions.

3. Obtain review from key members of the organization. Be sure your

legal department reviews the drafted code of conduct.

45
 4. Announce and distribute the new code of conduct(unless you are
waiting to announce it along with any associated policies and procedures). Ensure
each employee has a copy and post codes in each employee's bay or office.

5. (Note that you cannot include preferred behaviors for every possible
ethical dilemma that might arise.)

6. Examples of topics typically addressed by codes of conduct

include:preferred style of dress, avoiding illegal drugs, following
instructions of superiors, being reliable and prompt, maintaining
confidentiality, not accepting personal gifts from stakeholders as a
result of company role, avoiding racial or sexual discrimination,
avoiding conflict of interest, complying with laws and regulations, not
using organization's property for personal use, not discriminating
against race or age or sexual orientation, and reporting illegal or
questionable activity. Go beyond these traditional legalistic
expectations in your codes -- adhere to what's ethically sensitive in
your organization, as well. (Note that, as with codes of ethics, you
may be better off to generate your own code of conduct from scratch
rather than reviewing examples from other organizations.)

46
47
 Company Overview

mjunction services limited operating at the cutting edge of Information

Technology and the Internet, is a 50:50 venture of SAIL and TATA Steel.
Founded in February 2001, it is today not only India's largest eCommerce
company (having eTransacted worth over Rs.30,800 crores till date) but also
runs the world's largest eMarketplace for steel. The steel and coal supply
chain in India has been transformed by mjunction, which has ushered in
Efficiency, Transparency and Convenience to the way steel and coal, is
bought and sold. Similar transformational change is being sought to be made
in the automobile industry and in the sale of fixed priced branded products
with the launch of autojunction and straightline respectively.

Business volume of the company in terms of Transaction Value has soared

from Rs 94.35 crores in FY'02 to Rs 10,314 crores in FY'08, registering a
spectacular CAGR of 116%. mjunction's growth has not only been in terms of
transactional value, revenue and profits. In the space of just 6 years, it has
established a national footprint with offices at 11 locations all over the
country. Starting out with a team of less than six people at inception, today
more than 360 people from different professional and academic backgrounds
are working on growing the company at a scorching pace.

48
 Today, mjunction offers a wide range of selling, sourcing and knowledge
services across diverse industry verticals that empower businesses with
greater process efficiencies. The selling and sourcing services that mjunction
offers do not just stop here, they go all the way to provide fulfillment
services like inspection, logistics and finance. mjunction has service offerings
spanning the entire eCommerce spectrum and operates through -
metaljunction.in, buyjunction.in, coaljunction.in, autojunction.in,
straightline.in and mjunctionedge.

Our Vision

We will through the use of Information Technology and the Internet,

transform the way our Clients conduct Commerce, adding value to their
operations, at every step.

The processes and systems that we design and develop will not only be the
best-in-class in delivering operational efficiency, but, would also be
innovative, fair and transparent to generate and deliver long-term
sustainable value to our clients, the industry and community.

We will overcome geographical boundaries and any other constraints, which

may have restricted regional and inter regional commerce, in our endeavor
to be the largest and the most efficient total solution provider in facilitating
commerce globally.

49
We will attract the finest knowledge workers, to join our team, by creating an
exciting and engaging environment.

Our Mission

"We will transform the supply chains, of select industries, to bring about efficiency
and transparency to the way goods and services are bought and sold."

Our Quality Policy

"We are committed to create value for our stakeholders by continually improving
our systems and processes through innovation involving all our employees."

Our Values

Client Focus: We strive to exceed customer expectations for value

and service. We will build and maintain customer relationships and
ensure long-term satisfaction.

Excellence: We constantly strive to achieve the highest possible

standards in our day-to-day work and in the quality of the services
we provide.

Innovation: We are motivated to produce creative solutions that

meet our clients' specific needs and situations. New methods, fresh
ideas, and a dedication to continuous learning characterize our
work. Integrity: We act with integrity and conduct our business
fairly, with honesty and transparency.

50
 Respect: We know that successful interactions are only possible
through a mutual regard for the intelligence, talents, and expertise
that each of us possesses. We are committed to cultural sensitivity
in our work and relationships. We treat our clients as partners, and
we expect openness, honesty and hard work from ourselves

Teamwork: We honor the dignity and value of individuals working

as a team.

51
 mjunction today – Achievements

 India’s largest ecommerce platform

 Transacted over Rs.30,000 Crores

 metaljunction - World’s largest steel emarketplace

 5 million tonnes of steel sold

 coaljunction – India’s leading coal esales platform

 Over 10 million tonnes of coal sold

 More than 9,500 active buyers across India

52
Our Growth

Growth in Number of Clients

2001 - 02

2 Clients

2006 – 07

34 Clients

Growth in Number of Bidders

2006—07

950 Bidders

53
2006 - 07

9500 Bidder
Bidders

54
55
56
57
58
 Financial Growth

59
 Sigh…
We had 16 concerns in FY 06-07

What was wrong?

• Tampering of attendance system / proxy swiping / false information

using w3 portal
• Switching off mobiles after office hrs without valid reason
• Harrasment
• Utilising office time, infrastructure for chatting or using official ID for
sending bogus emails to groups
• Indiscipline

The management of mjunction never supports unethical acts and no mercy is

shown to an individual even if the individual is a top performer.
Violation to the COC may lead to serious consequences leading to the extent
of suspension or termination of employment.

60
 Happenings…

• New Ethics Counsellor & Lady Ethics Coordinator appointed

• To strengthen the value of ethics, a team was formed to cater to every

division and function.

• The COC was redefined to suit our industry with the changing time and meant
for ALL junctionites

• Published & uploaded in our websites.

• Induction session for every new junctionite.

• Awareness sessions started for associates

• Acknowledgement to the new COC started for junctionites

• Counseling junctionites w.r.t Gift policy, Concurrent employment,

harrasment etc.

• Message through our house magazine -Beyond barriers

• To foster legal & ethical environment

– Manager (Legal) appointed

– Appointment of consultants & counsels.
– Compliance reviews by senior leaders

61
 the road ahead…

• Emphasis on Corporate Governance – Ethics team

• COC will be sent to Stakeholders (Clients, suppliers, bidders)

• Induction sessions, Awareness sessions, publishing articles in house magazines

– Ethics & Content team.

• Inviting renowned leaders to share ethical values

• COC hoardings in all our offices- Marketing team

• Ethical values to be included in our brand book, corporate film - Marketing

team

• Holding dramas/skits/debates – Fun team

• To institutionalize negative impact on appraisal for violation of COC – HR

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 Integrity is not about easy choices

Its about courage to make the right choices :

• Say no to your biggest customer or give up on failures
• Do the right thing immediately or postpone it for “Greater Good”
• Go for quick fix or teach values first
• Do what everybody is doing or do what you know is right
• Protect your career or do your duty
• Do the hard right or settle for easy wrong

The most effective moral leadership is

provided by people who work behind the
scenes for quiet victories and that is
“US”
No organisation can be honest with the
public if it is not honest or straight within.

Be an Ethics Champion

63
 CODE OF CONDUCT

We have adopted 16 Code of Conduct to govern us through the endeavor of

our journey to ethical governance.

1. National Interest
2. General Standards of Conduct
3. Use of Company’s Assets
4. Conflict of Interest
5. Financial Reporting & Records
6. Third Party Representation
7. Regulatory Compliance
8. Concurrent Employment
9. Citizenship
10. Gifts & Donations
11. Selection of Suppliers
12. Competition
13. Stakeholders
14. Government Agencies * Political non-alignment
15. Co-operation with other Associate companies
16. Ethical Conduct

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 1.National Interest

mjunction is committed in all its action to benefit the economic development of

the countries in which it operates and shall not engage in all activities to
the detriment of the Nation’s interests or those that will have any adverse
impact on the social and cultural life patterns of the citizens. mjunction
will conduct its business affairs in accordance with the economic
development and foreign policies, objectives and priorities of the
concerned nation of such goals at the international, national and regional
level as appropriate.

2. General Standards of Conduct

The company expect all Junctionites, agents and contractorsto exercise good
judgment to ensure the safety and welfare of junctionites, agents and
contractors and to maintain a cooperative, efficient, positive, harmonious
and productive work environment and business organization. If a
junctionite does not meet the company’s expectations of performance
and/or conduct, corrective action up to and including terminations may be
taken.It is within management’s discretion to determine what measures
would be appropriate under each circumstance.

65
 • Any activity that jeopardizes the good working relation between the
company, junctionite, suppliers, customers and bidders including
• Fighting, horesplay, boisterous conduct
• Verbally or physically threatening or intimidating other individuals.
• Falsification of company records.
• Dishonesty, theft, destruction or damaging of company property

• Failure or refusal to perform work assigned or non-compliance with

instructions given by the person in authority.
• Sleeping over work.
• Use of loud, abusive, profane or obscene language or racial epithets
while at work directed to any fellow junctionite, customer, bidder,
suppiler in person or on the telephone.
• Leaving workplace during office hours without the knowledge of the
reporting authority.
• mjunction is an equal opportunity employer and is committed to
providing
work environment free of discrimination and unlawful harassment.

66
 2A. Discrimination

mjunction’s goal is to employ, develop, promote and retain the

best people from all cultures and segments of the population based on
ABILITY because diversity in workplace promotes an environment where
each Junctionite is empowered to contribute to the overall success of
mjunction. There is no discrimination against any Junctionite or applicant
for employment because of age, race, religion, colour, sex, national
origin, ancestry, marital or veteran status. mjunction has zero tolerance
for discrimination of any kind.

2B. Unlawful Harassment

The Company’s Anti Harassment policy applies to all Junctionites and

protects them from harassment by co-workers, seniors, customers, bidders
and suppliers and any other individual that they may encounter at the
workplace.

Harassment includes but is not limited to

• Misconduct which creates a hostile work environment because of a

Junctionite’s race, caste, colour, sex, religion, national origin or age

•
•

67
 • Posting or showing of photographs, calendars, cartoons or any other
literature in soft and hard copy form which may be considered
derogatory based on appropriate material of an offensive nature.

• Communication of jokes which are of distasteful, racial, immoral,

sexual or sex biased nature.

• Any other conduct that MIGHT be considered offensive by a group of

Junctionites or an individual or which creates a hostile work
environment.

i. Sexual Harassment – Consists of unwelcome sexual advances, requests for

sexual favors or other physical acts of sexual or sex biased nature where
Submission to such conduct is explicitly or implicitly a condition
of employment (explicit shall mean definite, clearly stated, and implicitly
shall mean implied).

• a Submission to or rejection of such conduct is used as the

basis for employment decision.
• b Such behavior has the purpose or effect of unreasonably
interfering with an individual’s performance on the job or
creating an intimidating, hostile, or offensive work
environment.

•
•
•
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 •
•
• ii. Physical Harassment -Includes hitting, pushing or other aggressive
physical contact or threats of physical harm that are either implicit
or explicit.

• iii. Verbal Harassment -Includes derogatory or vulgar comments

or the distribution of written or graphic material regarding a
person’s sex, religion, caste, age, ethnic heritage, physical
appearance, or threatening physical harm or the distribution of
written or graphic material having such effects.

mjunction will not tolerate any form of retaliation against Junctionites who report
such violation of policy or cooperate in the investigation of such reports in
accordance with this policy.

2C. Drug and Alcohol Abuse

mjunction maintains an alcohol and drug free work place. Hence

misusing controlled substances or selling, manufacturing, distributing,
possessing, using or being under the influence of illegal drugs and alcohol
on the job is absolutely prohibited. This prohibition does not include
legally obtained medications or prescription drugs used as directed by a
medical practitioner, but same must be reported to the reporting
authority.

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 2D. Safety and Health
mjunction conducts its operations with highest degree of regard for the
safety and health of its people, suppliers, customers, bidders and the
society at large. It is the responsibility of each Junctionite to maintain a
safe workplace by complying with all the safety rules and regulations. We
maintain compliance with all local laws to help maintain secure and
healthy work surroundings.

2E. Dress code and other personal standards

As every Junctionite is a representative of mjunction in the eyes of the
public, Junctionites will report to work properly groomed, wearing
appropriate clothing which enhances self respect and makes an individual
presentable. Junctionites are expected to dress neatly and in the manner
consistent with the nature of the work performed.

2F. Business Travel and Expense claims

All business travels and expense claims made by Junctionites will be

consistent with the need of the business and will be pre-approved by ones
reporting head. One who approves such travels and expenses will be
responsible for the propriety and reasonableness of such expenditure.
Junctionites are expected to spend the Company’s money as carefully as
they would do their own.

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 3. Use of Company’s Assets
Protecting the assets belonging to mjunction is the key responsibility of
every Junctionite, agent, contractor customer and bidder engaged in
business with mjunction. Care will be taken that the assets are not
misappropriated, loaned to others, sold or donated without proper
authorization.

3A. Physical Access Control

To ensure privacy of communication, security of the Company’s
communication equipment and to safeguard Company assets from theft,
misuse and destruction, policies are developed covering physical access
control on a continuous basis. Every Junctionite has to comply with the
level of access control that has been implemented in the facility where a
Junctionite works on a temporary or permanent basis.

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 3B. Company Funds
Every Junctionite is personally responsible for all Company funds over
which he/she exercises control. It will be used only for Company’s
business purpose and under no circumstance for personal purpose.
Company must receive good value for Company fund spend and the
concerned individuals must maintain accurate and timely records of each
and every such expenditure.

3C. Electronic Communication Resources

It is the responsibility of every Junctionite to ensure that the electronic
communication devices provided to them by the Company for effective
and efficient performance of their job are used for business purpose only
(other than brief incidental uses for personal reasons), that the system is
operated in a cost effective manner, that the Company’s reputation is
protected and the Company is not subjected to any legal risk. Such
devices are provided by the Company not as perks but for the purpose of
communication; switching off these devices after office hours and on
holidays without valid reasons will be treated as violation of this code.

72
 All data stored on mjunction’s computers, including e-mail sent or
received on mjunction’s network is Company property and is not private.
Junctionites are not allowed to use Company resources to send receive,
access or save electronic information that is sexually explicit, promotes
hatred, violence, gambling, illegal purchase of drugs or weapons.
mjunction monitors computer use by junctionities including Internet and
email use. Monitoring is conducted for managing the Company’s computer
network, assurance of system security and verification that Junctionites
are complying with mjunction’s policy.

3D. Software
All software used by Junctionites to conduct Company business should
be appropriately licensed. Use of unauthorized copies of any software at
office, home or on the road is strictly prohibited as it may cause copyright
infringement and may expose the Company to potential civil and criminal
liability. All software installation of the Company will be done strictly by
the IT Department of the Company who will make periodical checks to
verify that only approved and licensed software has been installed.

73
 3E. Intellectual Property

It is the responsibility of every Junctionite to protect the proprietary

information of the Company as inappropriate disclosure of the same may
harm Company’s competitive position, violate laws or constitute breaches
of agreements of the Company. Proprietary information includes financial
data of mjunction, its customers, bidders or suppliers, source codes,
business procedures, roadmaps, customer list, bidder list, supplier list,
wage and salary data of the Junctionites, projected earnings of the
Company and other information as decided and communicated from time
to time. Documents may be “Confidential” or “Proprietary” even though
they are not labeled so. Junctionites will remain alert to inadvertent
disclosure of Proprietary information.

This obligation includes all confidential information of third parties which

the Company has rightfully received under Non Disclosure agreements.
Corporate Communications with the press, media and other external
agencies regarding the affairs of the Company may only be carried out by
the authorized representative as nominated by the Managing Director.

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 4. Conflict of Interest
It is expected that all Junctionites shall work together for the common
good of the Company and never make decisions based on self interest.
A conflict of interest occurs when our private interests interfere in any
way or even appear to interfere with the interests of mjunction as a
whole. It generally arises whenever an activity, association or relationship
might influence the exercise of judgement in mjunction’s best interest.

The main areas of such actual or potential conflict of interest would

include the following
? When a Junctionite takes action or has interests that may make it
difficult to perform his or her work objectively and effectively.
? The receipt of improper personal benefits by a member of his/her
family as a result of one’s position in the Company
? Any outside business activity that detracts an individual’s ability to
devote appropriate time and attention to his or her responsibilities with
the Company.
? The receipt of non-nominal gifts or excessive entertainment from any
person/company with which the Company has current or prospective
business dealings.

75
 Any significant ownership interest in any supplier, customer, bidder,
development partner or competitor of the Company.
? Any consulting or employment relationship with any supplier, customer,
bidder, business associate or competitor of the Company.
? Award of benefits such as increase in salary or other remuneration,
posting, promotion or recruitment of a relative of a Junctionite of the
Company where such an individual is in a position to influence the decision
with regard to such benefits.

Not withstanding that such or other instances of conflict of interest exist

due to any historical reasons, adequate and full disclosure by the
interested Junctionite should be made to the Company’s management. It
is also incumbent upon every Junctionite to make a full disclosure of any
interest which the Junctionite or the Junctionite’s immediate family,
which would include parents, spouse and children, may have in a company
or firm which is a supplier, customer, distributor of or has other business
dealings with his Company.

Every Junctionite who is required to make a disclosure as mentioned

above shall do so, in writing, to his immediate superior who shall forward
the information along with his comments to the person designated for this
purpose by the MD/CEO who in turn will place it before the MD/CEO
and /or the Board of Directors/Executive Committee appointed by the
Board. Upon a decision being taken in the matter, the Junctionite
concerned will be required to take necessary action as advised to
resolve/avoid conflict.

76
 If a Junctionite fails to make a disclosure as required herein and the
management of its own accord becomes aware of an instance of conflict
of interest that ought to have been disclosed by the Junctionite, the
management would take a serious view of the matter and consider
suitable disciplinary action against the Junctionite.

5. Financial Reporting and Records

mjunction will prepare and maintain its accounts fairly and accurately in
accordance with the accounting and financial reporting standards which
represent the generally accepted guidelines, principles, standards, laws
and regulations of the country in which the Company conducts its business
affairs. Internal accounting and audit procedures will fairly and accurately
reflect all of the Company’s business transactions and disposition of
assets. All required information shall be accessible to Company auditors
and other authorized parties and government agencies. There will be no
willful omissions of any records, no advance income recognition and no
hidden bank account and funds. Any willful material misrepresentation of
and / or misinformation on the Financial accounts and reports will be
regarded as a violation of the Code of Conduct apart from inviting
appropriate civil or criminal action under the relevant laws.

77
 ? No Junctionite will participate in creating records that have the effect
of misleading or concealing improprieties.
? Company financial reports, accounting reports, customer and bidder
invoices, sales reports, expense accounts and other such documents must
accurately and clearly represent the relevant facts or the true nature of
the transaction.
? Most forms of inaccurate reporting are illegal. These include listing of
fictitious expense on an expense account, intentional misclassifications,
assigning an inappropriate item to cost versus capital expenditure,
improperly accelerating or deferring expenses or revenues etc.

6. Third Party Representation

Parties which have business dealings with mjunction but are not members
of the Group such as consultants, agents, sales representatives,
distributors, contractors, suppliers, etc. shall not be authorized to
represent mjunction if their business conduct and ethics are known to be
inconsistent with the Code.

78
 7. Regulatory Compliance

Every Junctionite will in his/her business conduct, comply with all

applicable laws and regulations, both in letter and in spirit, in all the
territories in which he/she operates. If the ethical and professional
standards set out in the applicable laws and regulations are below that of
the Code then the standards of the code shall prevail.

8. Concurrent Employment
A Junctionite of mjunction shall not, without the prior approval of the
Managing Director of the Company, accept employment or a position of
responsibility (such as a consultant or a director) with any other company,
nor provide “freelance” services to anyone. In case of a wholetime
Director or the Managing Director such prior approval must be obtained
from the Board of Directors of the Company.

9. Citizenship

A Junctionite shall in his private life be free to pursue an active role in

civic or political affairs as long as it does not adversely affect the business
or interests of the Company.

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 10. Co-operation With Other Associate Companies

mjunction will co-operate with associate companies by sharing physical,

human and management resources as long as this does not adversely
affect its business interests and shareholder value. In the procurement of
products and services mjunction will give preference to another associate
company as long as it can provide these on competitive terms relative to
third parties.

11. Gifts and Donations

mjunction and Junctionites will neither receive nor offer or make, directly
or indirectly, any illegal payments, remuneration, gifts, donations or
comparable benefits intended to obtain business or un-competitive favours
for the conduct of its business. However, mjunction and Junctionites may
accept and offer nominal gifts which are customarily given and are of
commemorative nature for special events.

12. Selection of Suppliers

Suppliers play a significant role in the day to day functioning of mjunction
and hence will be selected and treated ethically and lawfully so that they
have an incentive to work with the Company. All Company purchases will
be based on need, quality, service, price and terms and conditions. The
Company policy is to select significant suppliers or enter into significant
supplier agreement through competitive process only.

80
 The confidential information of any supplier is entitled to the same
protection as that of any other third party. In certain cases where the
products or services have been designed or developed to mjunction’s
specifications, the agreement between the suppliers and the company will
contain restrictions on sale.

13. Competition
mjunction will fully strive for the establishment and support of a
competitive open market economy in India and abroad and shall co-
operate in the efforts to promote the progressive and judicious
liberalization of trade and investment by a country. Specifically,
mjunction will not engage in activities which generate or support the
formation of monopolies, dominant market positions, cartels and similar
unfair trade practices.
mjunction will market its products and services on its own merits and shall
not make unfair and misleading statements about competitors’ products
and services. Any collection of competitive information will be made only
in the normal course of business and shall be obtained only through legally
permitted sources and means.

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 14. Stakeholders

Stakeholders are our Company’s asset and it is the responsibility of every

Junctionite to remember that they should act with them in a manner that
helps to create value for them and build a relationship based on trust. The
goodwill of mjunction that results from it is our asset and all effort will be
made to preserve and enhance this reputation.
mjunction’s policy is to provide the best possible services to its
stakeholders. Credibility will depend on our ability to fulfill the
commitments made to them. Hence every time a Junctionite does not
meet a commitment some hard earned TRUST is lost.

? We need to give our commitments judiciously.

? Offers/Contracts made with them should be so framed that they are
clear on the offers made and the commitments they are considering.
? If unforeseen circumstances make it impossible to meet a commitment,
care should be taken for notification of the same in advance.
? All actions which may create confusion and abuse the trust of the
customer and bidders are strictly prohibited.
? All references to testimonials and endorsements made with them must
be truthful, currently applicable and authorized by mjunction.
? No attempt should be made to induce them to cancel a contract made
by them with another company.

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 ? Being a service provider, quality of our service is the backbone of our
business. Hence all queries of our stakeholders will be attended with
equal responsibility or courtesy.

14A. Confidential information of our stakeholders

While entering into business relationship with our stakeholders, mjunction
may come across their confidential information. Such confidential
information received from others will be handled as per the agreement
with them. Hence while accepting or coming across such confidential
information

? Appropriate non disclosure agreement will be signed with the party

offering the confidential information.
? Only information necessary to accomplish the purpose of receiving it,
such as a decision on whether to proceed to negotiate a deal should be
accepted.
? Terms and conditions agreed upon in the non disclosure agreement will
be strictly adhered to.
? The confidential information accepted through the non disclosure
agreement will be retained only long enough to complete the business
deal. Subsequently it will be destroyed.

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 15. Government agencies & Political non- alignment

mjunction will not offer or give any Company funds or property as

donations to any government agencies or their representatives, directly or
through intermediaries, in order to obtain official favour. mjunction is
committed to and supports a functioning democratic constitution and
system with a transparent and fair electoral system in India. mjunction
shall not support directly or indirectly any specific political party or
candidate for political office. mjunction shall not offer or give any
Company funds or property as donations, directly or indirectly, to any
specific political party, candidate or campaign.

16. Ethical conduct

Every individual of mjunction, including wholetime Directors and the

Managing Director, shall deal on behalf of the Company with
professionalism, honesty, integrity as well as high moral and ethical
standards. Such conduct will be fair and transparent and be perceived to
be as such by third parties. Each will be responsible for the
implementation of and compliance with the Code in his/her professional
environment. Failure to adhere to the Code of Conduct and ethics may
attract the most severe consequences including termination of job or
business contract.

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 Reporting Concerns

Every Junctionite will promptly report to the management any actual or

possible violation of the Code or an event he becomes aware of that could
affect the business or reputation of his or any other associated company.

Nonexclusivity

Nothing expressed in the Code of Business Conduct and Ethics can

represent all the policies and procedures Junctionites should follow. This
code of conduct does not provide a full comprehensive and complete
explanation of all the rules that Junctionites are bound to follow.
Junctionites have a continuing obligation to familiarize themselves with
all the applicable laws and Company policies and procedures.

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 The Ethics Team :
You are requested to report your concerns to:
Divisional & Functional Ethics Co-ordinators
• Mr. Nilanjan Nandan – autojunction, straightline, purchase, FMS
• Ms.Tania Chakraborti – metaljunction, Logistics
• Mr. Dilip Singhal – Finance & accounts, ejunction
• Ms. Sohini Chakrabarti –coaljunction, financial services, Marketing
• Mr. Raj Kumar Mitra – Content & conferences, EPS
• Mr. Kaushik Sarkar – buyjunction,technology, CRMT
• Ms. Satyavani Burra – Admin, HR, BE team, CBDT
• Mr. Anamul Haque – Jamshedpur
• Mr. Vijay Malpani – New Delhi
• Mr. Vikram Prasad – Chennai
• Ms. Sanjheli Chatterjee –Mumbai
• Mr. Arindam Ray – Stakeholder (bidder, supplier, client)

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 Examples of few Donts’

1. Utilizing office time and resources indulging into sending group e mails
using mjunction
ids or using MJ internet access.
2. Using official time and hardware for chatting or using any other
communication and
electronic media like mobile phones.
3. Switching off these devices after office hours and on holidays without
valid reasons
4. Tampering of Attendance System / Records (false emails/proxy)
5. Sexual harassment.
6. Fraud, Bribery, Disclosure of confidential information to external
members.
7. Misbehaviour

All these and as mentioned in COC will be deemed as violation of Code of

Conduct and
may lead to serious consequences leading to suspension or termination of
jobs also.

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 PROCESS TO REPORT A CONCERN

A simple, transparent mechanism has been instituted within the

organization for reporting
ethical issues and concerns under utmost confidentiality, which is as
follows:

• On becoming aware of any such concern or incident, the incident must be

reported immediately by the observer to the Divisional or Functional
Ethics Coordinator. Reports may be written or oral and maybe anonymous
as per whistle-blower policy.

• All complaints are investigated by a committee within a strict timeline.

Utmost confidentiality will be maintained and thorough investigation will
be conducted. While the process of fact documentation, investigation and
enquiry is taking place, the complainant will be protected from all
possible retaliation and intimidation.

• Wherever possible, endeavors are made by the Ethics Team to resolve the
issue through counseling.

• In extreme cases, a detailed report is submitted to the Managing Director

regarding the background of the case, enquiries conducted, detailed
findings, suggestions and reasoned recommendations for redressal.

•
•
•
•
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 •
•
• Subsequently, the Managing Director takes a decision in the matter or
appoints a committee from the EMT to take the most appropriate step
based on the recommendations.

On behalf of the Management & the Ethics team

mjunction’s Mission is to transform the supply chains, of selected industries,

to bring about efficiency and transparency to the way goods and services are
bought and sold.
Our Vision is to generate and deliver long term sustainable value to our
Customers, the Industry and Community by designing and developing
processes and systems that would not only be the best in class in delivering
operational efficiency, but would also be innovative, fair and transparent.
To achieve our vision and mission it is imperative that we follow the highest
standards of Corporate Governance, upholding our value system which is
based on integrity and business ethics.
The goodwill and reputation that mjunction has built up over the years has
been nurtured by the high individual and collective ethical standards that
have set for ourselves.

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90
 Policy on Information Security & Usage of IT Infrastructure

• This policy is designed to:

• Ensure a secure & efficient IT environment
• Ensure compliance with the best practices.
• Ensure security awareness across mjunction

Access to the IT facilities

Users of the IT facilities must be aware of the conditions on which access is

provided. Access to the IT facilities like intranet & internet is restricted to
authorised users, i.e. Employees, Associates & Trainees at mjunction.
Unauthorized & unlawful use of IT facility will breach this Policy and will be
dealt with as an offence.

Responsibilities of Users
Each user is responsible for:
• Maintaining strict confidentiality of every official information that may
come across him during his stint in the organization.
• Selecting and keeping a secure password for Lotus Notes, Intranet or any
other facility that may be extended to him during his stint.
• Passwords are not be shard and computers are to be logged off after
usage.

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 • Users must not compromise or attempt to compromise the security of any
IT facility belonging to mjunction or other organisations or individuals, nor
exploit or attempt to exploit any security deficiency using the IT facilities in
an ethical and lawful way, in accordance with Indian laws.
• Co-operating with other users of the IT facilities to ensure fair and
equitable access to the facilities.

Misuse of IT Facilities
The following will constitute misuse of IT facility at mjunction:
• Unauthorized access to accounts – Users are expressly forbidden
unauthorised access to accounts, data or files on mjunction IT facilities, or
on IT facilities belonging to other organisations.
• mjunction Logo – Users are not permitted to use the Company’s name or
logo on their personal web pages, e-mail, or other messaging facilities.
• Pornography – Users are not permitted to utilize the Company’s IT
facilities to access pornographic material or to create, store or distribute
pornographic material. It will not be a defence to claim that the recipient
was a consenting adult

• No Business Activities - Users are not permitted to run a business or to

publish a journal or magazine (unless authorised by the Company is writing)
by using mjunction IT facilities.
• Playing computer-aided games is not allowed on mjunction IT facilities.
• Sending Chain mails, or mass mails with political tones are not allowed
and would constitute misuse of IT Infrastructure.

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 Policy on Intellectual Property Rights

A) An executive shall within one month of taking up of his employment,

furnish the company with (a) list of all the patents taken out or applied for
by him individually or jointly with any other party in India or abroad; (b)
titles and nature of any invention in possession of the executive prior taking
up the appointment which shall be treated as confidential and regarded as
such for the purpose of the patent act and particularly section 38 of the
existing Indian Patents and Designs Act, 1911.

B) An executive shall not without the previous permission in writing, of the

company to be communicated within two months from the date of receipt
of an application from the officer, containing suitable particulars
regarding any invention asking for such permission apply for any patent,
exclusive privileges or the like protection in respect of any invention
under any protection invention under any enactment or law of India, or of
any other government or legislature for the time being in force and
applicable thereto. If such invention has been made or discovered by the
officer during any period of the service with the company, and if such
invention has any direct bearing on the work with which the officer of the
company is engaged, the company shall be entitled require the officer to
assign and transfer , any such invention or (at its option), the patent
exclusive privilege or the like protection own absolute and exclusive use.
Such options as aforesaid shall be exercised at any time between the date
of receipt of the application asking for permission as aforesaid referred to
this in the sub-clause and the expiry of six months after the officer shall
intimate to the company the grant of any such patent, exclusive privilege
of the like protection and in the event of such
93
 option being exercised, the officer shall assign to the company, the
invention or patent exclusive privilege or like protection as the case may be,
and sign all such deeds, assurances, applications documents and papers as
the company shall require to obtain the full benefit of the rights and options
vested in the company under clause.

C) If an executive applies for a patent without the permission of the

company as aforesaid, the company shall exercise its rights as if permission
had been obtained and rules governing the service of the executive shall be
deemed to have given sufficient rights entitling the company to exercise
such rights and executive admits such rights of the company.

D) The company shall at all times, be entitled (whether it shall exercise any
option vested in it by sub clause (B) or not) to the unqualified right to adopt
and use the said invention, without being obliged to salary any royalty or any
other consideration therefore, and further the officers shall not assign,
charge or in any way, transfer such patent, exclusive privilege or the like
protection obtained in respect of such invention without providing
unqualified use of free of charge to the company and shall on demand,
execute in the favor of the company such licenses , deed documents and
assurances for the purpose of enabling the company established its right to
such free usher and/or to exercise such free user as it may require. Provided
that if the company has not exercised the option vested in the sub clause (B)
or if the officer making the invention is of a rank below that of the Sr.
Executive, sub clause (D) shall not apply.

E) Breach of this rule shall be misconduct and the officers shall be liable to
punishment in accordance with these rules.

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 Gifts Policy

mjunction recognizes that exchange of gifts with people with whom we do

business with is not unusual and is considered acceptable. The receipt and
giving of gifts is part of normal social exchange. Such exchange is neither
irregular nor is it unusual.
However, the need is recognized for a stated policy setting caps on the value
of such gifts and for defining circumstances under which it would be
acceptable or not acceptable to retain gifts. The cardinal principle would be
that gifts should not be given or received either to obtain favours /
preferential treatment or in return for favors/ preferential treatment.
The policy will apply to all employees of mjunction as well as the associates
and advisors of the company.

1. Gifts could be either solicited or unsolicited. The Company, regardless of

the circumstances, does not permit the soliciting of gifts. This policy defines
the circumstances under which unsolicited gifts received can be accepted
and retained.

2. The circumstances under which gifts might be received fall into various
categories.
I. Gifts received on New Year and other festive occasions.
II. Gifts received only on occasions of wedding of self or children.
III. Gift vouchers / gift cheques received in recognition of a professional
contribution made by the recipient, such as for making a presentation,
conducting a training programme/workshop for a professional and academic
institution etc.

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 IV.Gifts received on the occasion of a terminal event such as a transfer or on
Cessation of employment.

V. Gifts of any value received for any other reason (not stated in [i] to [iv],
approval to be taken from Ethics Counsellor or CEO.

Declaration regarding receipt of gift

In all instances, the recipient of a gift of more than the approved value, will
make a declaration, stating the description of the gift that has been
received, the estimated value of the gift and the circumstances under which
the gift was received and particulars of donor. Such declaration should be
submitted in the office of Ethics Counsellor within 15 days of the receipt.

Kind of Gift
A list of the kinds of gifts that might be received is provided below:
• Articles of only an edible nature for festive occasions in item 2 [i].
• Articles of use in an office, such as table clocks, stationery, desk
accessories on New Year only with company’s logo in item 2. [i]
• Gift worth upto Rs. 1 000/- for wedding only in item 2 [ii]
• Gift vouchers / Gift cheques only in the case of professional contribution
in item 2 [iii]

Circumstances under which gifts can be accepted:

• Receipt of Cash Gift: Only in the case of retirement or cessation of
employment, cash gift of Rs. 1, 000/- and more can be retained by
employees.

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 • However, in the case of transfers, collective gift in kind can be received.
The value limit is not applicable in such cases.

Gifts received in recognition of a professional contribution made by the

recipient, such as for making a presentation, conducting a training
programme /workshop for a professional and academic institution etc.
Where the receipt of gift is in gift vouchers and gift cheque and more than
Rs. 1, 000/-, the recipient will be permitted to retain the full amount
received, if prior permission is taken from the company. However,
information to the Ethics Counsellor should be given. No cash to be received.
Where the Company has borne expenses, such as travel or lodging, related
to the event and such expenses are reimbursed by the organisers, all such
reimbursements will be surrendered to the Company.

Receipt of gift from parties having business relationship with the Company
including gifts from sub ordinates. Gifts received from a donor where the
donor has a business relationship with the Company and could derive
benefits from the recipient should only be of a value up to Rs. 1,000/-
Illustrative categories of parties with business relationships with the
Company would be vendors, dealers, contractors, consultant bidders,
suppliers and clients etc. However, all such gifts should have donor’s
Company’s logo or business identity.

No gifts should be accepted from any person or party who is in default of the
company in any manner. By way of illustration, parties in default would be
parties from whom monies are overdue or parties with whom the Company is
engaged in litigation and parties against whom’ disciplinary action has been
taken. It is desirable that the recipient should check the status of the parties
from the Company Secretary to make sure that the provisions of the above
clause are not contravened.
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 It is recognised that at times gift exceeding the value caps contained in this
policy are to be received as the return of these gifts may cause
embarrassment. This situation may occur as a special case. In this situation
the recipient should surrender the gift at the earliest. The company will
decide the procedure for utilisation of such gifts.

The company considers it good practice to share gifts of edible nature, which
an employee is permitted to receive, with fellow employees. This principle
also holds good for certain other commodities where such sharing is possible.

Where an employee received gifts exceeding the value caps contain in this
policy, it would be advisable to return the gift to donor with a covering
letter thanking the donor for the same and quoting the relevant provision of
this policy. The draft of the letter as and when required may be obtained
from the Ethics Counsellor, mjunction.

In case of any clarification/interpretation of this policy the employee should

contact the Ethics Counsellor, mjunction.

Punishment for Misconduct

Depending on the gravity of the misconduct; an officer found guilty of
misconduct, shall be liable to any of the following punishments:
• Dismissal
• Discharge
• Demotion
• Warning in writing
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 • Suspension without salary
• Withholding annual increment
• Withholding Performance Linked Bonus.
Show cause notice shall be issued to for misconduct

Anti-Corruption Policy
It is the policy of the company that the employees of the company shall
comply strictly with all applicable legal requirements and all applicable laws
and regulations of the Government of India. The company shall not pay
money or give any other thing of value to any official of any Government for
the purpose of influencing any act or decision of such official in his official
capacity or for the purpose of inducting such official to use his influence
with any Government to affect or influence any act or decision of such
Government.
All employees should follow this policy.

• We pledge-to every Junctionite for Personal respect, fair compensation

and honest and equitable treatment to our Customers and Bidders,
Excellence in service and exceptional value with an unyielding
commitment to deliver the very best to our Suppliers, courteous and
ethical behavior and practices, respect for their interests and an open
door to build TRUST and GOODWILL that is the foundation of business
relationships.
• and to our Community a aonscious citizenship and a helping hand for
worthwhile causes.
• To this end, we have adopted the mjunction Code of Conduct to guide our
transactions with our colleagues, community, customers, bidders,
government, regulators and the society at large.
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 • While every care was taken to to make the Code of Conduct as
comprehensive and all-encompassing as possible, you will appreciate that
no code can address every situation. Given the complexity and constantly
changing nature of our work and our world, no book of hard and fast
rules, however detailed, can cover adequately all the dilemmas we face.
Hence every Junctionite is asked to exercise discretion, fair judgment and
leadership in making ethical business decisions. It is the responsibility of
every Junctionite to familiarize with mjunction’s Code of Conduct and use
it as a guidepost for his or her daily decision and action.
• Every Junctionite is accountable for his/her behavior, action and results.

Client Satisfaction Survey by Business Excellence(BE) Team in 2008

Business Relation with mjunction

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 J ust like any
other
supplier
20%

More like a
partner
80%

Listing Mechanisms
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7

5 5
2 5
12 7
12 5 12
24
12 2 10
31
17
17 14
12
17
12 12
14 29 14
10
31
26 26
24
24 17

12 17 5 10

12 29
24 21 5
14 17
5
5
2 2
2 2
People deputed Remote sites Technical team Online catelog Web template Cust. Edu web Accessability

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 Employee Satisfaction Survey by Business Excellence(BE) Team in 2008

Objective

• To determine current level of employee and associate well-being,

satisfaction and motivation;

• To identify priority opportunities for improvement; and

• To suggest action plans to improve level of employee and associate well

being, satisfaction and motivation.

Methodology
1. Off-line survey was conducted. Printed questionnaires were handed over
to all junctionites as per following categories:
(a) Head Office and (b) Outstation Offices
(1) AGM & Above; (2) Mgr & Dy Mgr; Asst Mgr; (3) Officer (4) Associates.

2. There were closed ended questions with a scale of 5:

(1) Strongly Agree (2) Agree Somewhat (3) Neutral (4) Disagree
Somewhat (5) Strongly Disagree.

3. There were open ended questions on Suggestions.

4. After providing reminders on deadline, feedback forms were collated

in Collection Boxes kept in H.O. and by courier from outstation offices to
ensure anonymity of response.

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 Response Rates

120

100
103
 Satisfaction survey Score

JSS Score – as per Location & Level

3.6

3.5
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 Good about Mjunction

• Professional culture. Teamwork.

• Bosses open to listening.
• Transparency in work. Ethical.
• TATA Group Company. SAIL.
• Growth. Vision.
• Good Office Infrastructure – Computers and Telephones.
• Fun, Sports, TIE teams.
• Sharing of company performance.
• Encourages new ideas.
• Timely salary & reimbursements

Even if there is any iota of doubt towards understanding the mjunction

value or to escalate any issue, please feel free to contact at
[email protected]
033-66106124, 66106160

Lets keep mjunction a ethical organisation.

It is our duty to protect

[email protected]

The journey continues forever…

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106
Finding

In the due course of the project, the major findings were as follows:--

1. Most of the employee specially female(Dress code) did not maintain the rule.

2. The recent upgradation of any conduct did not circulate to all employee
through mails or company’s website updation.

3. The outstation employee did not respect the company code of

conduct(Specially rules related to attendance policy)

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Recommendation:--

After carrying out the project of code of conduct and Business Ethics, I would
recommend the following

 Every employee should obey the ethical value

 Screen Potential Employee
 Integrating Model for Managing Ethical Behaviour
 Develop a meaningful code of ethics
 Provide ethics training

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BIBLIOGRAPHY

1. http://www.mjunction..in
2. 2 http://google.com

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Rocomendation

Code of business ethichs can be considered as a very important tool for building
"Family" in the organization. It is absolutely necessary in Georgia, I think, for the
followign reasons.

People form very strong and long-lasting groups based on friends and relatives in
Georgia. These are informal groups which do not consider the positions of separate
individuals in the society. The relations between the memebers of these informal
groups are very often much stronger than the relations within the organization.
This is why, I think, Georgians face unstable unions (politics, etc) and relatively
low loyalty to the organization. This is true in every sector of economy and the
politics as well.

Building code of ethics represent basis for building "corporate soul" and it is also
the first step to strengthen the relations within the formal groups - organizations.
The long-term implications may be "corporate soul" in the organizations and the
higher level of social responsibility in the Georgian society.

The question is do we have to loosen the traditionally strong informal groups to

reinforce the formal groups in the organization? I do not think it will have positive
effects. Then HOW do we build the code of ethics and Corporate Soul?

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