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The Combined Use of Formal and Informal Ethics Training in the Indian IT Companies

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Abstract

The Indian IT industry, an important contributor to global GDP, is recognized for its low-cost and high quality performance. Additionally, ethical performance is an imperative, to compete in today’s world. This study attempts to investigate the effectiveness of the present state of ethics training in the Indian IT sector. First, we have conceptualized a theoretical framework, the Perception of Ethics Training in Employees and Organisations (PETINEO), to underline the importance of the perception toward ethics with respect to individual ideologies and organizational values. Second, we have studied the statistical relationships among various components of this model. Third, under the rubric of PETINEO, we have examined the effectiveness of ethics training programs for Indian IT companies. Our results suggest that the combination of formal and informal approaches to ethics training has stronger impact on ethical decision-making than the use of any one of them in isolation.

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Notes

  1. 1.

    These are views expressed by respondents in the open-ended question. It was an optional question.

    The question was, ‘Discuss in brief the benefits of the ethics training (formal as well as informal) at professional as well as at personal level’. The answers are provided as ‘insights from respondent’, it helped us to know facts from the ‘horse’s mouth’.

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Author information

Authors and Affiliations

  1. Alliance University, Bengaluru, India

    Pratima Verma & Siddharth Mohapatra

Authors
  1. Pratima Verma
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  2. Siddharth Mohapatra
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Corresponding author

Correspondence to Pratima Verma .

Editor information

Editors and Affiliations

  1. Indian Institute of Management Bangalore, Bangalore, India

    S. Raghunath

  2. University of Otago, Dunedin, New Zealand

    Elizabeth L. Rose

Appendix 1

Appendix 1

Scales Used

PRESOR scale—Perceived role of ethics and social responsibility (The items related to CSR and those having very less factor loading were removed)

(Singhapakdi et al., 1996)

  1. 1.

    Being ethical is the most important thing a firm can do.

  2. 2.

    Corporate planning and goal setting sessions should include discussions of ethics.

  3. 3.

    The most important concern for a firm is making profit, even if it means bending or breaking the rules.

  4. 4.

    The ethics of a firm is essential to its long-term profitability.

  5. 5.

    The overall effectiveness of a business can be determined to a great extent by the degree to which it is ethical.

  6. 6.

    To remain competitive in a global environment, business firms will have to disregard ethics.

  7. 7.

    Ethics and profitability can be compatible.

  8. 8.

    If survival of a business enterprise is at stake, then you must forget about ethics.

  9. 9.

    Efficiency is much more important to a firm than whether or not the firm is seen as ethical.

  10. 10.

    Ethics matters till stakeholders are happy.

Individual ideologies (Forsyth, 1980 ).

  1. 1.

    A person should make certain that their actions never intentionally harm another even to a small degree.

  2. 2.

    Risks to another should never be tolerated, irrespective of how small the risks might be.

  3. 3.

    The existence of potential harm to others is always wrong, irrespective of the benefits to be gained.

  4. 4.

    One should never psychologically or physically harm another person.

  5. 5.

    One should not perform an action which might in any way threaten the dignity and welfare of another individual.

  6. 6.

    If an action could harm an innocent other, then it should not be done.

  7. 7.

    Deciding whether or not to perform an act by balancing the positive consequences of the act against the negative consequences of the act is immoral.

  8. 8.

    The dignity and welfare of people should be the most important concern in any society.

  9. 9.

    It is never necessary to sacrifice the welfare of others.

  10. 10.

    Moral actions are those which closely match ideals of the most ‘perfect’ action.

  11. 11.

    There are no ethical principles that are so important that they should be a part of any code of ethics.

  12. 12.

    What is ethical varies from one situation and society to another.

  13. 13.

    Moral standards should be seen as being individualistic; what one person considers to be moral may be judged to be immoral by another person.

  14. 14.

    Different types of moralities cannot be compared as to ‘rightness’.

  15. 15.

    Questions of what is ethical for everyone can never be resolved since what is moral or immoral is up to the individual.

  16. 16.

    Moral standards are simply personal rules which indicate how a person should behave, and are not to be applied in making judgments of others.

  17. 17.

    Ethical considerations in interpersonal relations are so complex that individuals should be allowed to formulate their own individual codes.

  18. 18.

    Rigidly codifying an ethical position that prevents certain types of actions could stand in the way of better human relations and adjustment.

  19. 19.

    No rule concerning lying can be formulated; whether a lie is permissible or not permissible totally depends upon the situation.

  20. 20.

    Whether a lie is judged to be moral or immoral depends upon the circumstances surrounding the action.

Corporate ethical values (Hunt et al., 1989)

  1. 1.

    Managers in my company often engage in behaviors that I consider to be unethical. (R)

  2. 2.

    In order to succeed in my company, it is often necessary to compromise one’s ethics. (R)

  3. 3.

    Top management in my company has made it known in no uncertain terms that unethical behaviors will not be tolerated.

  4. 4.

    If a manager in my company is discovered to have engaged in unethical behavior that results primarily in personal gain (rather than corporate gain), he or she will be promptly reprimanded.

  5. 5.

    If a manager in my company is discovered to have engaged in unethical behavior that results primarily in corporate gain (rather than personal gain), he or she will be promptly reprimanded.

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Verma, P., Mohapatra, S. (2017). The Combined Use of Formal and Informal Ethics Training in the Indian IT Companies. In: Raghunath, S., Rose, E. (eds) International Business Strategy. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-54468-1_17

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