A study on formal ethics training in Indian organizations

In today's era of globalization, where Indian conglomerates are going abroad and foreign companies are investing heavily in India, business ethics are becomingan important prerequisite for doing business in the domestic as well as global arena. Indian organizations have to recognize the importance of ethical practices and corporate governance for their long term sustainability. When organizations do not nurture policies that foster and maintain ethical conduct, employees may indulge in behavior that would lead to undesirable consequences for consumers, employees, organization and the society at large. Most of the Indian organizations see ethics in a vague manner, unclear and unplanned about what they have to do. The ethics training/programis inadequate unless each and every employee is extensively trained about what, how and why of it. Ethics training should be much more than just a few lectures or seminars on code of conduct. Formal ethics training helps in reducing consumer loss, tarnishing of brand image and huge litigation costs. This study analyzes the theoretical framework of the formal ethics training program and the current status of formal ethics training program in Indian organizations. It also suggests a model for formal ethics training in Indian organizations.