Code of Ethics for Indian Industry by NHRC

New Delhi, January 11th, 2013

A recent study by the National Human Rights Commission on corporate social responsibility says that Indian industries' criteria for social and ethical aspects are yet to reach the desired level of sophistication and comprehensive coverage. According to it, 'Corporate Ethics' are much needed to stress the importance of sustainability, social development, stakeholders, consumer satisfaction and service orientation in place of profit orientation.

The study is based on data collected from diverse sectors of 20 industries in different geographical locations of the country in the year 2012. This resulted in an exhaustive report in the shape of "Code of Ethics for Indian Industry".

It was found that a large number of managers (89 per cent) were not aware of details like extent of spending on the corporate social responsibility. Almost 50 per cent of the organizations lacked in transparency, as they did not disseminate their policies to the workers. But all the participating organizations loudly spoke about the issue of corruption and stated that it had become, "a low-risk, high profit business". Interestingly, the Indian industries have a well-developed mechanism to measure performance on the economic and ecological parameters.

The Code of Ethics, derived out of the study, strongly advocates for equal opportunities to all qualified employees, regardless of their race, caste, gender, religion etc for their inclusive growth and welfare. It is required that companies strive for providing a safe, healthy, clean and ergonomic working environment for their employees and indirect workers.

It emphasizes upon the implementation of policies consistent with the laws; development of an atmosphere, wherein whistle-blowers' rights are respected and employees are allowed to raise their concerns to the top management without fear and intimidation.

The study was conducted to understand the functioning of the Indian industry and their prevailing practices and knowledge about the corporate social responsibility and business ethics. It attempts to understand the range and quantity of ethical issues that reflect the interaction of profit-maximizing behavior with non-economic concerns of an industry.

NHRC's effort in parameterising the Code of Ethics for Indian Industry is aimed at providing the industry some guiding principles to make a positive dent on the business and human rights to ensure improvement in social, economic and cultural values of society.

The twelve points of the Code of Ethics cover 'Inclusive Business', 'Accountable Business', 'Transparent Business Standards', 'Commitment to Professed Quality and Representation Accuracy', 'Fair Competition', 'Equal opportunities employer', 'Upholding of Employee Human Rights', 'Health, Safety and Environment', 'Corporate Citizenship', 'Stakeholder Representation', 'Business Association' and 'Conflict of interest'. Detailed report is available on the NHRC website.

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