Ethics and

31

nd Ethical Pract

31 December 2012

actices in

Ethics and Ethical Practices in BRAC

Prepared for

Prof. Neaz Ahmed

Course Instructor

H501: Managing People at Work

Prepared by

Faisal Mahboob Rahman ZR-14

Rashed Ahsan ZR-17

Ahsan Azhar Shopan ZR-54

MBA 47D

Institute of Business Administration

University of Dhaka

December 31, 2012

Letter of Transmittal

December 31, 2012

Mr. Neaz Ahmed

Professor

Institute of Business Administration

University of Dhaka

Sir:

We are pleased to inform you that we have completed the report as per your instruction, on

the theme “Ethical Practices in an Organization”, as a requirement of the course, H501:

Managing People at Work. The title of our report is “Ethics and Ethical Practices in BRAC”.

We are really thankful for the opportunity to work on this report as it allowed us to get a

thorough understanding of HRM practices and helped us to gain practical insights about

ethical practices.

We will be very happy to address any further queries in this regard.

Thanking you,

Faisal Mahboob Rahman

ZR-14

Rashed Ahsan

ZR-17

Ahsan Azhar Shopan

ZR- 54

MBA 47D

Institute of Business Administration

University of Dhaka

Table of Contents

Executive Summary ............................................................................................................ v

Introduction ........................................................................................................................ 1

1.1 Background ............................................................................................................... 1

1.2 Objectives ................................................................................................................. 1

1.3 Scope......................................................................................................................... 1

1.4 Methodology ............................................................................................................. 1

1.5 Limitations ................................................................................................................ 2

Code of Ethics...................................................................................................................... 3

2.1 General ...................................................................................................................... 3

2.2 Importance ................................................................................................................ 4

2.3 Development & Administration ................................................................................. 4

2.3.1 Issues to consider for a Code of Ethics .............................................................. 5

2.3.2 Action steps ...................................................................................................... 5

2.4 Dissemination ............................................................................................................ 6

2.5 HRM and Code of Ethics ........................................................................................... 6

The Organization ................................................................................................................ 7

3.1 BRAC ....................................................................................................................... 7

3.1.1 History .............................................................................................................. 7

3.1.2 Vision ............................................................................................................... 9

3.1.3 Mission ............................................................................................................. 9

3.1.4 Values ............................................................................................................... 9

3.1.5 Objectives ....................................................................................................... 10

3.1.6 Operations ...................................................................................................... 10

3.1.7 Scaling up in Asia and Africa .......................................................................... 11

3.2 BRAC Human Resource Division ............................................................................ 11

3.2.1 Goals .............................................................................................................. 11

3.2.2 Objectives ....................................................................................................... 12

3.2.3 Operational Units ............................................................................................ 12

Survey Analysis ................................................................................................................. 16

Conclusions and Recommendations ................................................................................. 18

References.......................................................................................................................... 19

v

Executive Summary

An institution's Code of Ethics must reflect the organization's policies, controls and

processes. While it may be tempting to short-cut the process by "borrowing" policies from

other institutions under the guise of following "best practices", unless those policies, controls,

and processes adequately reflect an institution's unique organization and business practices,

the Code will not be effective in providing guidance or offering protection. The Code of

Ethics serves as a framework for ethical decision making within an organization.

The scope of the study was based on the ethical practices an organization follows. The

organization chosen for this report was BRAC and the report focused on the state of ethics in

the organization. The study further investigates if BRAC has any documented guidelines on

ethics and if so, how strongly do they adhere to the guideline.

A questionnaire survey was conducted at the HR division of BRAC. Upon analyzing the

survey it has been found that BRAC has a very well developed written Code of Ethics. The

organization ensures that the employees know the Code and certify to respect it. BRAC has a

Learning Division specialized in conducting training programs for employees on various

aspects including ethical practices. However, the training on ethical practices are organized

on need base rather than on regular intervals. BRAC may arrange such training on regular

intervals (annually or semiannually). The Code should also be reviewed on regular basis to

ensure it is up-to-date. BRAC has separate ethical guidelines for home-country and host-

country nationals which is very important for a multinational organization to continue its

operations successfully in different countries. The organization allows anonymous reporting

of misconduct which is very encouraging for employees to report misconducts they have

witnessed or faced. However, the organization should protect the complainers more

effectively. Although, BRAC employees usually do not seem to engage in extreme unethical

practices, such as accepting bribes or falsify, but they do regularly pad expenses, misbehave

with fellow employees and sometimes show negligence at work. The HR Division should

take initiatives to prevent employees from such misconducts. According to the findings, it is

assumed that the Code of Ethics in BRAC is effective and is expected to show good prospect

in terms of ethical standard in the organization.

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Introduction

1.1 Background

At its simplest, ethics is a system of moral principles. They affect how people make decisions

and lead their lives. Ethics is concerned with what is good for individuals and society and is

also described as moral philosophy.

An institution's Code of Ethics must reflect the organization's policies, controls and

processes. While it may be tempting to short-cut the process by "borrowing" policies from

other institutions under the guise of following "best practices", unless those policies, controls,

and processes adequately reflect an institution's unique organization and business practices,

the Code will not be effective in providing guidance or offering protection. In this study a

real life organization, BRAC was selected in order to know about its HRM practices with a

focus on the State of Ethics and Ethical practices.

1.2 Objectives

� To analyze the State of Ethics and Ethical Practices in BRAC.

� To gain idea about overall Human Resource Management Practice in BRAC.

� To identify the role of management regarding the administration of ethical practices.

1.3 Scope

The scope of the study was based on the ethical practices an organization follows. The

organization chosen for this report was BRAC and the report focused on the state of ethics in

the organization. The study further investigates if BRAC has any documented guidelines on

ethics and if so, how strongly do they adhere to the guideline.

1.4 Methodology

Information was collected from both primary and secondary sources.

Primary Data Sources

� Primary data was collected from the employees of Human Resource Division of

BRAC.

� Face to Face interview and questionnaire was used to collect primary data.

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Secondary Data Sources

� Data was collected from the Official website of BRAC

� Data was also collected from different related publications & websites.

1.5 Limitations

This report had the limitation of focusing on only one organization so overall picture of the

state of ethics in today’s organization cannot be deduced. Since ethics is abstract in the sense,

different people have different interpretation of it and so concrete comparisons were difficult.

The study also had the following limitations:

� The organizational secrecy about confidential information was the main hindrance for

proper data collection, more information from the firm can help to broaden the area of

the work.

� Unavailability of enough relevant records and information.

� Secondary information was not up to date.

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Code of Ethics

2.1 General

A Code of Ethics is the collection of the rules, principles, values, and employee expectations,

behavior, and relationships that an organization considers significant and believes are

fundamental to their successful operation. A Code of Ethics enumerates those standards and

values that make an organization remarkable and that enable it to stand out from similar

organizations.

Depending on the regulator, there may be specific requirements for contents in a Code of

Ethics. In general, at a minimum, the Code should contain policies on: conflicts of interest,

insider trading, gifts and hospitality, information security and privacy, recordkeeping,

cooperation with investigations and audits, and, of course, a "whistleblower" provision. The

whistleblower provision establishes procedures whereby employees can report, without fear

of reprisal, suspected illegal or unethical activities by others within the organization. And, in

light of current events, it would be wise to include in the Code the company's policies

regarding political activities, particularly those concerning lobbying and political

contributions.

The Code should set forth the process for its administration, including mechanisms to

disclose and document any potential conflicts of interest or to obtain waivers from any

particular policy or provision. It should also provide guidance to assist employees and ethics

program management in evaluating specific circumstances, with the standard for behavior

being: if all the facts and circumstances regarding the matter were made public, would the

employee involved and the organization be proud to be associated with the activity?

Additionally, the Code should provide referrals to resources on where to go for further

information or guidance. One may want to consider having a separate Code of Ethics for the

board of directors. There are many transactional components within an organization's Code

that may not have applicability to outside directors, and conversely, there may be additional

requirements that pertain only to board activities. Similarly, it may be appropriate to extend

certain provisions of the Code beyond employees, to vendors, contract workers, service

providers, counter-parties or related organizations.

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2.2 Importance

All sorts of organizations require a Code of Ethics. Companies develop a Code of Ethics to

promulgate principles and ethics that will make them attractive to customers, employees, and

other stakeholders. Non-profits create a Code of Ethics for these reasons and to ensure that

employees and clients understand and trust their mission of service. Professional associations

develop Codes of Ethics for similar reasons and to suggest ethical behavior across an industry

and in the professional behavior of its members.

An effective Code of Ethics establishes the ethical expectations for employees and

management alike, and sets forth the mechanisms for enforcement and consequences of

noncompliance. When the Code is perceived as an integral component of the organization's

culture, is understood, followed and enforced, it can provide protection for the organization

from the actions of a "rogue employee" under the Standard Guidelines.

• It prevents unjust treatment: Since wrongdoing is prevalent in all cultures and

societies, a good code of ethics will not allow for any kind of inequality.

• It promotes goodness for everyone: A good code of ethics will uphold the best interest

of everyone around.

• It brings out the best in individuals: Individuals will strive for a better environment to

live in when there is a good code of ethics in place.

• It holds us socially responsible: A good code of ethics makes individuals in a society

responsible for the people and things around them.

• It brings out higher standards: A good code of ethics will bring out excellence in

everyone around and allow the culture to function better as a whole.

2.3 Development & Administration

A Code of Ethics is written by an executive team; developed by a cross section of employees

from various functions; or designed by organization development, corporate communications,

marketing, supplier relationships, and / or Human Resources staff, depending on the

organization and its internal mode of operation and management style.

In some companies the general counsel has oversight and administrative responsibility. In

others, the responsibility rests with Human Resources, Risk Management, Audit, or

Compliance. In other organizations, a special Ethics Committee is empowered specifically

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for purposes of oversight and enforcement. Regardless, of where the accountability lies

organizationally, the important considerations in choosing an administrator are:

1) Accountability is clearly assigned.

2) The designated administrator has the organizational stature necessary to facilitate

enforcement.

3) It is assigned to someone who does not have a propensity to engage in illegal or unethical

activities.

Important components of the administration of the Code include initial and on-going training

and awareness efforts, with visible executive management participation and support;

employee acknowledgment of receipt, understanding, and compliance with the Code;

standards for documentation of exceptions; standards for investigation of suspected or

reported wrongdoing; consistent enforcement; and, finally, periodic review of the Code to

ensure that it is comprehensive and reflects the current organizational structure and business

practices.

2.3.1 Issues to consider for a Code of Ethics

• Employment conflicts and whether employees may work for other companies.

• Relationships of employees with other businesses in the market area.

• Acceptable types and value of gifts to give and receive.

• Reward and compensation systems.

• Work quality and productivity expectations.

• Representation of the institution (loyalty) outside of work.

2.3.2 Action steps

• Reviewing the Code of Ethics. If there is none, steps must be taken immediately to

develop a Code of Ethics.

• Working from the top down and the bottom up. Finding out what the Board of Directors

and Senior Management expect from staff. Also finding out what staff thinks the

prevailing ethics standards are in the institution. If there is a gap, steps must be taken to

close it.

• Scheduling time for a Board briefing; attaching the article to the Board materials. Trying

to leave time for discussion so that one can find out what the Directors expect.

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• Reviewing and comparing the institution's marketing materials and sales programs with

the stated Code of Ethics. Looking for stress points. Then finding out whether these stress

points are managed or result in problems of an ethical nature.

• Looking at the most recent compliance audits and examination reports for issues relating

to ethics.

• Reviewing and revising the Code of Ethics. Using a team whenever possible. Making

sure that the management of the Code is ongoing and active.

• Asking the ultimate question: if all the facts and circumstances regarding the matter were

made public, would the employee involved and the organization be proud to be associated

with the activity? If the answer is yes, the job is well done.

2.4 Dissemination

A Code of Ethics should be published and disseminated to its employees, and to existing and

potential stakeholders such as members of the board of directors, customers, partners,

vendors, suppliers, potential employees and the general public.

2.5 HRM and Code of Ethics

Human resource management (HRM) consists of all the activities undertaken by an enterprise

to ensure the effective utilization of employees toward the attainment of individual, group,

and organizational goals. An organization's HRM function focuses on the people side of

management. It consists of practices that help the organization to deal effectively with its

people during the various phases of the employment cycle.

HR professionals play three roles in the area of workplace ethics. One role is monitoring:

they must observe the actions of organizational members to ensure that all individuals are

treated fairly and legally. Second, HR professionals investigate complaints bearing on ethical

issues, such as sexual harassment or violations of employees' privacy rights. Third, HR

professionals serve as company spokespeople by defending the company's actions when

confronted by a regulatory agency or the media.

Furthermore, HR professionals should act ethically themselves. When faced with ethical

dilemmas, HR professionals must be willing to take a strong stand, even if it means putting

their jobs at risk. If they choose to turn a blind eye, they become part of the problem and thus

must assume some of the blame.

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The Organization

3.1 BRAC

BRAC, based in Bangladesh, is the largest non-governmental development organization in

the world, measured by the number of employees and the number of people it has helped.

BRAC employs over 100,000 people, roughly 70 percent of who are women, reaching more

than 126 million people. The majority of BRAC staffs (over 90000) is in Bangladesh, with its

headquarter being in Dhaka, the national capital. Established by Sir Fazle Hasan Abed in

1972 soon after the independence of Bangladesh, BRAC is present in all 64 districts of

Bangladesh as well as in Afghanistan, Pakistan, Sri Lanka, Uganda, Tanzania, South Sudan,

Sierra Leone, Liberia, Haiti and The Philippines as of 2012.

The organization is 70-80% self-funded through a number of commercial enterprises that

include a dairy and food project and a chain of retail handicraft stores called ‘Aarong’. BRAC

maintains offices in 14 countries throughout the world, including BRAC USA and BRAC

UK. BRAC have won numerous international awards for turning problems into successful

solutions.

BRAC has organized the isolated poor and learned to understand their needs by finding

practical ways to increase their access to resources support their entrepreneurship and

empower them to become agents of change.

3.1.1 History

Known formerly as the “Bangladesh Rehabilitation Assistance Committee” and then as the

“Bangladesh Rural Advancement Committee” (currently, BRAC does not represent an

acronym), BRAC was initiated in 1972 by Sir Fazle Hasan Abed at Sulla in the district of

Sylhet as a small-scale relief and rehabilitation project to help returning war refugees after the

Bangladesh Liberation War of 1971. In nine months, 14 thousand homes were rebuilt as part

of the relief effort and several hundred boats were built for the fishermen. Medical centers

were opened and other essential services were ensured. At the end of 1972, when the first

phase of relief work was over, BRAC turned towards long-term development needs and re-

organized itself to focus on the empowerment of the poor and landless, particularly women

and children.

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By 1974, BRAC had started providing micro credit and had started analyzing the usefulness

of credit inputs in the lives of the poor. Until the mid 1970s, BRAC concentrated on

community development through village development programs that included agriculture,

fisheries, cooperatives, rural crafts, adult literacy, health and family planning, vocational

training for women and construction of community centers. A Research and Evaluation

Division (RED) was set up by BRAC in 1975 to analyze and evaluate its activities and

provide direction for the organization to evolve. In 1977, BRAC shifted from community

development towards a more targeted approach by organizing village groups called Village

Organizations (VO). This approach targeted the poorest of the poor – the landless, small

farmers, artisans, and vulnerable women. Those who own less than half an acre of land and

survive by selling manual labor were regarded as BRAC’s target group. That same year

BRAC set up a commercial printing press to help finance its activities. The handicraft retail

chain called Aarong, was established the following year.

In 1979, BRAC entered the health field by establishing a nation-wide Oral Therapy Extension

Program (OTEP), a campaign to combat diarrhea, the leading cause of the high child

mortality rate in Bangladesh. Over a ten-year period 1,200 BRAC workers went door-to-door

to teach 12 million mothers the preparation of home-made oral saline. Bangladesh today has

one of the highest rates of usage of oral rehydration, and BRAC’s campaign cut down child

and infant mortality from 285 per thousand to 75 per thousand. This initial success in scaling

up propelled rapid expansion of other BRAC programs such as Non Formal Primary

Education which BRAC started in 1985 – a model that has been replicated in about a dozen

countries.

In 1986 BRAC started its Rural Development Programme that incorporated four major

activities – institution building including functional education and training, credit operation,

income and employment generation and support service programs. In 1991 the Women’s

Health Development program commenced. The following year BRAC established a Centre

for Development Management (CDM) in Rajendrapur. Its Social Development, Human

Rights and Legal Services program was launched in 1996 with the aim to empower women

with legal rights and assist them in becoming involved with community and ward level

organizations. In 1998, BRAC’s Dairy and Food project was commissioned. BRAC launched

an Information Technology Institute the following year. In 2001, BRAC established a

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university called BRAC University with the aim to create future leaders and the BRAC Bank

was started to cater primarily to small and medium enterprises.

In 2002 BRAC launched a program called Challenging the Frontiers of Poverty Reduction –

Targeting the Ultra Poor (CFPR-TUP) designed specifically for those that BRAC defines as

the ultra poor - the extreme poor who cannot access conventional microfinance. The same

year BRAC also went into Afghanistan with relief and rehabilitation programs. It was the

first organization in Bangladesh to establish, in 2004, the office of an Ombudsperson.

3.1.2 Vision

A world free from all forms of exploitation and discrimination where everyone has the

opportunity to realize their potential.

3.1.3 Mission

BRAC’s mission is to empower people and communities in situations of poverty, illiteracy,

disease and social injustice. Its interventions aim to achieve large scale, positive changes

through economic and social programs that enable men and women to realize their potential.

3.1.4 Values

• Innovation - BRAC has been an innovator in the creation of opportunities for the poor to

lift themselves out of poverty. It value creativity in programme design and strive to

display global leadership in groundbreaking development initiatives.

• Integrity - BRAC values transparency and accountability in all our professional work,

with clear policies and procedures, while displaying the utmost level of honesty in our

financial dealings. We hold these to be the most essential elements of our work ethic.

• Inclusiveness - BRAC committed to engaging, supporting and recognising the value of

all members of society, regardless of race, religion, gender, nationality, ethnicity, age,

physical or mental ability, socioeconomic status and geography.

• Effectiveness - BRAC's values efficiency and excellence in all its work, constantly

challenging itself to perform better, to meet and exceed programme targets, and to

improve and deepen the impact of its interventions.

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3.1.5 Objectives

BRAC believes that poverty is a system and its underlying causes are manifold and

interlinked. Some of these linkages are obvious, for example, a day’s wage forgone because

of illness or resources lost to a natural disaster. Others play a more indirect role in

perpetuating poverty, such as lack of awareness about laws and rights can lead not only to

outright exploitation, but also encourage a lack of accountability on the part of the state to

cater to its most vulnerable citizens.

In order for the poor to come out of poverty, one must have the tools to fight it across all

fronts. BRAC have, therefore, developed support services in the areas of human rights and

social empowerment, education and health, economic empowerment and enterprise

development, livelihood training, environmental sustainability and disaster preparedness.

Gender equality, respect for the environment and inclusivity are themes crosscutting all of

BRAC activities. To ensure that BRAC employees are always learning and that their work is

always relevant, BRAC have put in place training, research and monitoring systems across all

their activities and financial checks and balances in the form of audits. As a knowledge

centre, BRAC have opened their doors to the wider public in an effort to develop national

capacity in Bangladesh through BRAC University.

3.1.6 Operations

The majority of BRAC’s work is in Bangladesh. Their low cost, innovative solutions to the

daily problems facing poor families have been scaled up to reach every village in

Bangladesh.

BRAC operate social enterprises that are strategically connected to its development

programs, and form crucial value chain linkages which increase the productivity of its

members’ assets and labor, and reduce risks of their enterprises. These enterprises, ranging

from agriculture to handicrafts, also help to make people increasingly self-reliant.

BRAC provides more than just microfinance. BRAC use the microfinance groups as a social

platform to deliver scaled-up services in health, education, business development and

livelihood support. These are all critical components needed to ensure that poor people can

break the cycle of poverty.

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3.1.7 Scaling up in Asia and Africa

BRAC has substantial operations in a growing number of Asian and African countries.

BRAC works in countries where it can achieve a major impact on reducing poverty and

improving livelihoods. Since 2002, BRAC have been using its experience to energies and

accelerate poverty alleviation efforts in other countries. BRAC deliver microfinance, health,

education, agriculture and livestock services based on our integrated approach in Bangladesh.

BRAC programs can be scaled up quickly to a national level and are low cost, effective and

adaptable.

3.2 BRAC Human Resource Division

From the early stages of its evolution, the Human Resource Division (HRD) has been

working with a goal to maximize job satisfaction, enhance transparency and ensure

procedural justice for all employees. As one of the world’s largest Development

Organizations, BRAC has a wide variety of multifaceted development programs. A large

number of qualified, potential and committed staff is required to attain the organization’s goal

and to operate these programs effectively. HRD has to provide extensive effort to ensure that

the staff are appraised properly and are also provided with due services and entitlements in

time. HRD tries to ensure an environment where the staff are nurtured and considered as

absolute resources. To this end, HRD is committed to guarantee the assignment of right

people in the right place at the right time, to flourish human potentials and provide a decent

work environment. The HRD at BRAC Head Office comprises of about 70 employees with a

Director being the head of the division and is divided into several operational units.

3.2.1 Goals

HRD is a strategic partner of BRAC, working with to achieve the following goals:

• Ensure procedural justice.

• Intensify transparency along with equality.

• Facilitate such an organizational environment where individual’s potentials &

competencies are flourished and innovation.

• Organizational changes as well as quality are promoted.

HRD is working persistently to achieve total quality by ensuring a trustworthy, dynamic and

esteemed working environment.

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3.2.2 Objectives

• Excel BRAC’s culture and values to enable an environment of right-based human

organization.

• Facilitate finest level of staff development.

• Develop a competent workforce to institute gender justice and diversity - where staff is

encouraged for best possible contribution, irrespective of class, religion, ethnicity, cast,

ability, age and sex.

• Develop Performance Appraisal system to recognize good work as well as enhance

quality and accountability.

• Keep the Management updated by preserving and disseminating updated staff's

information.

• Regularize and increase easy access to HR related information and services of all staffs.

• Policy formulation/revision, implementation and monitoring.

3.2.3 Operational Units

Policy, Compliance and Development (PCD)

Policy and Capacity Development section works towards the development of Human

Resources Policies & Procedures (HRPP) and its proper implementation. Staff development,

create awareness about rights, entitlements and responsibilities of staff, publication,

communication and presentation of HRD activities within and outside the organization are

also part of responsibility.

Objectives of PCD

o Organizational Development

o Staff Development

Major activities of PCD

o Formulation of new policies and revision of existing policies and procedures

o Prepare and disseminate circulars

o Prepare and update different types of formats

o Conduction of HRPP orientation

o Publication of HR Report and Bulletin

o Conduct training and development related activities

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o Organize BRAC Orientation for new staff of Head Office

o Conduct Exit Interviews

o Update designation

o Organize meetings and maintain the record of minutes

o Organize Exposure Visit

o Prepare and disseminate section/unit wise progress reports

o Organize social events

o Communicate and coordinate with different programs of BRAC

o Process procedural activities related to national and international training, travel and

higher study programs

o Preparation of different analytical reports

HR Field Operations Management (HRFOM)

Earlier, all HR related work used to be carried out from Head Office. At that time it was very

hard to provide HR services to every staff in the right time because the staffs are scattered in

different field offices. That is why BRAC decided to decentralize its HR Division. In April

2005, BRAC has brought some changes in the functions of HR management such as

decentralization, setting up an HRFOM section and established 11 HR Field Offices. In order

to render better quality services to the staffs, HRD gradually extended HR Field Offices; the

total number of field office is now 41 (working under 09 zones & 04 clusters).

Objectives of HRFOM

o To provide faster HR services at field level

o To create awareness about HR policy to all field staff and encourage to comply with

Policy

Major Activities of HRFOM

o Coordinate HR activities with different Programs. HR Officers are responsible to

communicate with field management, participate in their meetings, visit field, and

assist HO-HRD by providing necessary information

o Organize recruitment and selection processes in the field offices

o Ensure timely delivery of appointment & confirmation letter, provident fund (PF)

papers, transfer order, papers of joining after transfer(JAT) & ID card, etc

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o Assist new staff with their joining process by being present in the area and regional

offices

o Ensure the performance appraisal on timely and qualitative manner

o Coordinate and troubleshoot of IT related matters

o Counsel the staff regarding job security and benefits

o Update quarterly staff positions

o Communicate and coordinate with the field staff through attending meetings,

workshops and sharing information related to new changes in the HRPP

o Orientation on Human Resource Policies & Procedure, Gender & SHE policy to the

supervisors.

o Training as well as Need Assessment Workshops on gender policy

o Conduct orientation on Human Resource Policies & Procedure tothe BRAC staff

o Sessions on HRPP in BRAC Orientation Course

Performance Management Unit (PMU)

BRAC HRD has a Performance Management Unit which constantly works to provide a

complete scenario of staff performance to the top management. It works to expedite the

progression of the organization. PMU institutes a performance assessment system for staff

appraisal, which motivates the staff and his/her supervisors for improving their competencies.

Objectives of PMU

The Performance Management Unit ensures continuous improvement of the system, building

capacity of supervisors who appraise performance of staff, revising formats based on

practical requirements of PMS, facilitating assessment processes, implementing decisions

regarding awards, appreciation and giving transparent feedback on performance.

Major Activities of PMU

o Establishing the effective Performance Assessment System in the organization.

o Take decisions through Performance Management System Advisory Team and

reinforce the decisions.

o Organize Promotion process as per Human Resource Policy and Procedure.

o Collect Training Need Assessment on the basis of supervisors’ recommendation in

appraisal.

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o Enhance knowledge of all managers/supervisors about performance assessment

system through Performance Assessment System Training with the help of Field

Operations Management.

o Orient staff and supervisors with the performance management goal, objectives and

impact on the organization.

o Design, prepare and review of Performance Assessment System Training module and

materials.

o Revise performance appraisal form as per need.

o Position up gradation of internal staff.

o Prepare different types of report (routine and need base).

Recruitment & Selection Unit (RSU)

Recruitment & Selection recruits on the basis of staff demand given by different

programs/divisions.

Objectives of RSU

This section works with the aim of hiring and placing right person in the right place at the

right time.

Major Activities of RSU

o Receive approved requisition from Programs.

o Prepare and publish advertisement.

o Receive application through several sources.

o Sort the CVs according to the criteria.

o Create Database and plan for Selection.

o Confirm the exam center on the basis of the number of candidates.

o Coordinate with staff from other Programs for invigilating; checking scripts and viva

voce.

o Prepare the Question Papers and Answer Scripts.

o Carry out the examination, sort out results and circulate.

o Briefing selected candidates for pre - service training.

o Prepare deployment list for every selected candidate.

o Carry out the pre-service training.

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Survey Analysis

A questionnaire survey was conducted at the HR division of BRAC. Upon analyzing the

survey the following facts have been revealed about the ethical practices in BRAC.

BRAC has a written code of ethics. The code of ethics is disseminated to employees at

induction and through appointment letter. Thus every employee in the organization receives

the code of ethics. All employees are required to sign the appointment letter and code of

ethics in order to certify that they will respect the code of ethics. The code of ethics is

uniformly applied across all the departments and levels of management. As a multinational

organization, BRAC has different ethical guidelines for home-country nationals and host-

country nationals. The organization does not have an in-house advisor.

BRAC carries out training on ethical work place conduct. Such training is conducted by the

middle to senior level management of Learning Division on need base through lectures, films

and videos, case analysis and role playing. Moreover, executive leaders regularly speak about

ethics and the importance of creating an ethical culture in management meetings or other

settings.

BRAC has the provision for anonymous reporting of ethical misconduct by employees that

they have witnessed or faced. It is found that employees in BRAC often report ethical

misconduct that they have witnessed or faced. BRAC protects its employees from retaliation

upon reporting instances of ethical misconduct. However, in some cases in the past,

employees who reported ethical misconduct faced unpleasant consequences by their co-

workers or supervisors such as adverse response from supervisor and barring from promotion

opportunities or pay increases.

The code of ethics specifies disciplinary measures for failure to comply with it. The

maximum severity of the discipline rendered is dismissal. However, whether the actions

would be taken silently or publicly depends on the case and people involved or related to it.

According to the BRAC HRD, training, counseling and punishment, all are effective methods

for creating respect for ethics among those who violate the code of ethics.

17

Compliance with ethical standards of behavior is monitored semiannually or on need base by

the senior and middle management of BRAC HRD. From past experiences, the HR Division

has found that BRAC employees regularly pad expenses (e.g. transport expenses). They also

often abuse company resources (e.g. internet abuse, use of customer database for personal

gain, revealing trade secrets to competitors, etc.) or fail to report co-worker’s violation of

code of ethics. They sometimes pass blames or show negligence at work. However,

employees seldom falsify or carry on personal business on company time and never accept

bribes/kickbacks from suppliers or vendors. Employees are given awards each year on the

basis of ethical behavior in order to encourage them to comply with the code of ethics and

recognize their good workplace conduct.

BRAC HRD recognizes lack of awareness of ethical standards as a very important factor

likely to cause employees to compromise ethical standards in the organization. It also detects

lack of effective ethics training and desire to further one’s career as important factors for the

same. Lack of consequences for violation of ethical standards and pressure to meet unrealistic

business targets are also considered somewhat important to the matter. However, peer

pressure is not assumed to be an important factor to make employees compromise ethical

standards in BRAC.

The code of ethics is reviewed and updated by the senior management on need base. The

organization considers the code of ethics as effective and sees good prospect in terms of

ethical standard in the organization. However, these claims are on the basis of their

complanee monitoring and other statistics which they do not wish to reveal in compliance to

their HR policy.

According to the BRAC HRD, the main challenge they face in enforcing the code of ethics is

to educate the employee regarding the code. The organization believes that more training and

campaigning should be arranged to create an ethical culture and ensure greater compliance

with ethical standards.

18

Conclusions and Recommendations

The Code of Ethics serves as a framework for ethical decision making within an organization.

It is the heart and soul of a company, and an in depth view of what an organization believes

and how the employees of an organization see themselves and their relationship with each

other and the rest of the world.

From the study, it has been found that BRAC has a very well developed written Code of

Ethics. The organization ensures that the employees know the Code and certify to respect it.

BRAC has a Learning Division specialized in conducting training programs for employees on

various aspects including ethical practices. However, the training on ethical practices are

organized on need base rather than on regular intervals. BRAC may arrange such training on

regular intervals (annually or semiannually). The Code should also be reviewed on regular

basis to ensure it is up-to-date.

BRAC has separate ethical guidelines for home-country and host-country nationals which is

very important for a multinational organization to continue its operations successfully in

different countries. The organization allows anonymous reporting of misconduct which is

very encouraging for employees to report misconducts they have witnessed or faced.

However, the organization should protect the complainers more effectively.

Although, BRAC employees usually do not seem to engage in extreme unethical practices,

such as accepting bribes or falsify, but they do regularly pad expenses, misbehave with fellow

employees and sometimes show negligence at work. The HR Division should take initiatives

to prevent employees from such misconducts.

According to the findings, it is assumed that the Code of Ethics in BRAC is effective and is

expected to show good prospect in terms of ethical standard in the organization.

19

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