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Ethics and csr at accenture


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detail project work on the csr and ethical activities at accenture

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Ethics and csr at accenture

  1. 1. A PROJECT REPORT ON CSR & ETHICS SUBMITTED TO: Prof. Venkatesha Murthy SUBMITTED BY: Dwijraj Jodha 2013B16 Mohit Singhal 2013B28 Gulam Dhalla 2013B30 Pratik Sadhu 2013B32 Shekhar Dahiya 2013B49 Varun Varshney 2013B64 Siddharth Bhardwaj 2013B69 1|Page
  2. 2. TABLE OF CONTENTS: Topic Page No Accenture Overview……………………………………………………………………. 3 Accenture's Ethics and Compliance Program……………………………………….. 4 CSR practices in the Accenture………………………………………………………. 7 Past CSR Activities Undertaken …………………………………………………….. 9 Major Allegations faced by Accenture……………………………………………….. 12 Major Controversies faced by Accenture in the recent past………………………… 13 Financial Analysis Of Accenture Initiative………………………………………….. 14 Field Research………………………………………………………………………… 18 References:……………………………………………………………………………… 20 2|Page
  3. 3. Accenture At a Glance Industry: Computer Services Founded: 1995 Country: Ireland CEO: Pierre Nanterme Employees: 259,000 Sales: $30.09 B Profile Accenture is engaged in providing management consulting, technology and outsourcing services. The Company's business is structured around five operating groups, which together consists of 19 industry groups serving clients in industries globally. The Company's segment includes Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources. Accenture helps organizations assess how to maximize their performance and works with them to achieve their vision. We develop and implement technology to improve our clients’ productivity and efficiency – and may run parts of their business. Ultimately, it enable clients to become high-performance in businesses. Top Leadership Pierre Nanterme Chairman & CEO Marjorie Magner Lead Director 3|Page
  4. 4. Accenture's Ethics and Compliance Program Operating with integrity every day is the Accenture Way. Accenture’s commitment to doing business ethically and legally is the foundation for the company’s culture, which is shaped by our six core values– Client Value Creation One Global Network Respect for the Individual Best People Integrity Stewardship Stewardship Fulfilling our obligation of building a better, stronger and more durable company for future generations, protecting the Accenture brand, meeting our commitments to stakeholders, acting with an owner mentality, developing our people and helping improve communities and the global environment. Best People Attracting, developing and retaining the best talent for our business, challenging our people, demonstrating a “can-do” attitude and fostering a collaborative and mutually supportive environment. Client Value Creation Enabling clients to become high-performance businesses and creating long-term relationships by being responsive and relevant and by consistently delivering value. One Global Network Leveraging the power of global insight, relationships, collaboration and learning to deliver exceptional service to clients wherever they do business. Respect for the Individual Valuing diversity and unique contributions, fostering a trusting, open and inclusive environment and treating each person in a manner that reflects Accenture’s values. Integrity Being ethically unyielding and honest and inspiring trust by saying what we mean, matching our behaviors to our words and taking responsibility for our actions. 4|Page
  5. 5. Accenture’s Ethics & Compliance program is designed to foster the highest ethical standards and a commitment to compliance with the law and policy, prevent, detect, report and address any allegation of misconduct, and comply with applicable laws and standards. Accenture has adopted a framework designed to achieve these objectives, which includes Visible support of our senior leadership, Regular and periodic risk assessments, Written standards and controls, On-going training and communications, Auditing, monitoring, and response procedures. High Performance delivered- ethically When it comes to ethics and ethical values, Accenture believes that in order to excel, a high performance organization’s foundation must be built on strong ethical standards even in dire economic times. Implying these words to actions Accenture happens to be one of the most ethical firms consistently. A report by Ethisphere states that Accenture is On World’s Most Ethical Companies for 3 years consecutive. Word all over is the same. Going through various employee forums/blogs and interviewing Current and previous employees, collecting their valuable viewpoints we wish to confirm that Accenture holds true to its words that Accenture is based on solid ethical foundations internally externally. 5|Page
  6. 6. Accenture has developed a framework accordingly which includes: on-going training and communications written standards and controls, auditing, monitoring, and response procedures proper support of senior leadership regular and periodic risk assessments The ground rules: Every year Accenture publishes its own: Accenture Code of Business Ethics, Zero Tolerance Policy, social media policy. Besides this it holds up a business ethics and compliance programs whose objectives are: foster the highest ethical standards and a commitment to compliance with the law and policy, prevent, detect, report and address any allegation of misconduct, and (iii) comply with applicable laws and standards. Another program that has been recently introduced is Training on Respecting the Confidential Information and Intellectual Property of Others which every employee needs to address to whose objectives are: Recognize the confidential information and intellectual property of others, and the restrictions on its use. Understand how misuse of this information can have severe monetary and reputational risks and consequences for business, and individuals. Avoid negative outcomes by following best practices, policies and legal obligations. 6|Page
  7. 7. CSR practices in the Accenture Corporate Citizenship Corporate citizenship is fundamental to Accenture’s character and the way we run our company as a high-performance business. It is anchored in our core values, our Code of Business Ethics and, ultimately, reflected by our people who live and work in communities around the world. From Skills to Succeed to the environment, Accenture and our people do things the Accenture Way, creating longterm value for the communities where we live and work and, ultimately, increasing competitiveness for both business and the world as a whole. Skills to Succeed Skills to Succeed draws on one of Accenture’s core competencies—training talent—to help address the need for skills that open doors to employment around the world. It is a key aspect of how we embed corporate social responsibility into our business. We exceeded our original Skills to Succeed goal and increased our impact: by 2015, we plan to equip 500,000 people globally with the skills to get a job or build a business. 500,000 by 2015 Environment They run and grow their business on an environmentally sustainable basis, cultivating eco-efficient practices that include energy management and resource conservation. Environment leads across geographies actively manage and monitor our resource conservation and energy, water and waste management practices. Because more than 80 per cent of ironment our environmental footprint consists of carbon emissions generated from air travel and electricity, they are committed to addressing both of these as we work to improve our environmental performance. 7|Page
  8. 8. Energy management They proactively manage energy use throughout the locations. Since fiscal 2009, their energy efficiency programs have helped us save approximately 250,000 Megawatt hours of electricity, which also avoided nearly 160,000 tons of carbon. In addition, in fiscal 2012, • Accenture's global ISO 14001 certification was renewed for the 66 sites in scope, including five new sites. • Leadership in Energy and Environmental Design (LEED), • Building Research Establishment Environmental Assessment Method (BREEAM) and Green Star 6.To reduce our use of office electricity; we began implementing Remote Energy Monitoring (REM) technologies in fiscal 2010, prioritizing high-consumption locations. Communities and Giving Accenture Development Partnerships is a group within Accenture that provides strategic advice and technical and project management support to nonprofit organizations, nongovernmental organizations, foundations and donor organizations operating in the development sector.. Accenture employees who volunteer and are chosen for this program accept a salary reduction while serving on assignments ranging from three to six months, primarily in developing countries. Disaster Relief Recent examples of our disaster relief efforts include the following: Following the devastation caused by Typhoon Haiyan, Accenture and its people mobilized support of more than $US2 million to aid disaster relief and reconstruction efforts in the Philippines In the wake of the earthquake and tsunami devastating Japan in March 2011, Accenture coordinated an employee giving campaign, directing more than US$700,000 in donations toward the Japanese Red Cross Society Earthquake and Tsunami Disaster Relief fund. Following the series of floods that hit Queensland in December 2010, Accenture facilitated multi-country employee giving toward the Australian Red Cross campaign, and mobilized 8|Page
  9. 9. local employee volunteering initiatives to assist with the cleanup at the local level. Accenture Relief provided during uttrakhand disaster PAST CSR ACTIVITIES-UNDERTAKEN They have tie ups with IDA INDIA:: which is a non-profit grass root level animal protection organization, dedicated towards establishing and defending the rights of all non - human living creatures. In Defense of Animals, India was born on 31st October 1996. Immediately the project of neutering of street dogs was taken up. The frequent visits include spending time with the animals and distribution of goodies Tieups with an NGO “Hope Foundation” as a part of CSR initiative.HOPE foundation is a compassionate but non-sectarian charity in India that changes lives by harnessing the compassion and commitment of dedicated staff and volunteers to deliver sustainable, highimpact, community-based services to the poor and needy. 9|Page
  10. 10. About SAKAAR OUTREACH: They carry out voluntary work for Sakaar Outreach which is involved in the advancement of women and children from educationally and economically challenged sections of society. Sakaar Outreach is working towards empowerment of women through education, HIV/AIDs and healthcare. They have parivartan committee which has worked for the nourishment of underprivileged kids specially in the area of ,councling sports,monetary and non monetory help 10 | P a g e
  11. 11. Tree plantation Drive in Accenture Cook & Sell event is being organized to lend a helping hand for the HELPAGE People 11 | P a g e
  12. 12. Major Allegations faced by Accenture. Norman Rille and Neal Roberts. Rille, a former manager for Accenture and Roberts have filed the lawsuit in 2004 in U.S. District court for the eastern district of Arkansas for a case of Kickbacks given by IT companies and Vendors to Accenture to provide them confidential information about Government customers for which Accenture was consultant. Avanade which is the joint venture between Microsoft and Accenture was sued by ScanSource company in 3 Jan, 2013 which sales barcode scanners , portable data collection terminals. The reason behind this was as Avanade provided AX –ERP system (Enterprises Resource planning ) to complete the jobs of ScanSource but according to ScanSource it was not able to meet the requirement and Avanade lied about it which led to higher losses for Scansource. Accenture Gurgaon , India staff filed a case of sexual harassment against team leader and Hr manager in Nov 2013. She has also decided to petition National Commission for Women to intervene on her behalf. In reaction to this , Accenture Spokesperson has said that investigation is in process and whoever is found of guilty would be expelled and penalized severely. On August 2011, Accenture analyst employed at Chicago office was found dead on his desk and he was unnoticed for 4 days which led to allegation against Accenture as evil empire. Resolutions taken by Accenture: In first allegation mentioned above , Accenture Paid U.S. $63.675 Million to Settle False Claims Act Allegations filed by Whistle-blowers. Rest of three allegations are under investigation. 12 | P a g e
  13. 13. Major Controversies faced by Accenture in the recent past 1. Headquarters in a tax heaven In 2002 Accenture was identified by the General Accounting Office of the U.S.A as a publicly traded federal contractor that was incorporated in a tax haven country. Accenture was incorporated in Bermuda and is criticized for being a U.S. based company trying to avoid U.S. taxes. Even before its incorporation in Bermuda, Accenture was operating as a series of related partnerships and corporations controlled by its partners through a mechanism of contracts with a Swiss coordinating entity. 2. Loss of sensitive data In 2007, Accenture was involved in a high profile case concerning loss of sensitive data being used in the development of a government information system for the states of Ohio and Connecticut in U.S.A. The information was stored on a backup computer tape. The data on the stolen tape included social security numbers of all state employees, details of state lottery winners who had not cashed their winnings, bank account details of state agencies, all of which could total to billions of taxpayer dollars. The computer tape with the sensitive information was stolen from the car of an intern with the company. The intern who refused to resign claiming he was being made a scapegoat, was fired by the company. 3. Movement of jobs outside the U.S. Accenture being a U.S. based company was criticized for moving a lot of jobs outside the U.S. to countries like India and the Philippines. This has helped the company to reduce cost and increase profit margins in outsourcing deals with major U.S. companies but has resulted in the loss of work and employment for U.S. citizens. As of today, Accenture employs more people in India than in the U.S. 4. Sexual Harassment Scandal In 2013 a 27 year old former employee of Accenture in Gurgaon alleged that she was sexually harassed by senior colleagues. Among those were her team leader and HR Manager. She claimed that she was handed her termination letter in September because she had raised her voice against the harassment. 13 | P a g e
  14. 14. FINANCIAL ANALYSIS OF ACCENTURE INITIATIVES Skills to succeed Accenture launched a new corporate citizenship initiative, which focuses on building the skills of the people and through it getting them employment, which will contribute to the economies of different nations. Accenture initiated this effort in 2009, and has promised to invest $100 million for the same for the period of 3 years (from fiscal year 2011 to 2013). Accenture invested $44.5 million of the same investment in year 2011 itself. Accenture focuses on enhancing skills and getting employment to 250,000 people across the world by 2015. The total number of initiatives around the world is 200+. Through the investment in year 2009, 2010 and 2011, Accenture has already provided employment to 160,000 people across the globe.. In 2011, Accenture committed $1.93 million for running programs in India. Various contributions by region across the globe, in terms of investment made are given below. 14 | P a g e
  15. 15. FY09 21,577 177,000 Revenues ( US $ millions) Global Workforce FY10 21,551 204,000 Skill to Succeed People equipped with skills FY11 25,507 236,000 162,000 Total Accenture and Accenture Foundations Contributions (US $ thousands) 48,286 34,127 44,506 Accenture Foundations Contribution (US $ thousands) 6,258 5,043 6,890 42,027 29,803 37,616 By Region (US $ thousands) Americas 11,283 2,725 6,519 Europe, Middle East, Africa Asia Pacific 21,875 1,692 15,342 2,008 16,110 5,303 7,177 9,008 9,683 12,497 28,040 1,490 9,025 18,444 1,614 13,516 22,285 1,815 Accenture Contribution (US $ thousands) Accenture Development Partnership - Global By Type (US $ thousands) Cash In-Kind Time Environment: Accenture also focuses on environmental concerns. They are concerned on the reduction of carbon footprint per employee. The carbon emission majorly comes from business travel, office energy use etc. In 2009 they had 25% reduction of carbon emission per employee and they wish to achieve 30% by 2011. They reduced their business travel by switching to telepresence next generation video conferencing technology, which required them to pay for it. They also introduced green building techniques and operations around the world. In 2010, through improved energy efficiency they saved 36,400,000kWh, which almost helped them save US $4.1 million. While in 2011, through initiative they saved 63,400,000 kWh which helped them save US $7.8 million. They also reduced landfills by 99%, through disposing laptops and computers (38000 or 173 metric tons) by responsible disposal vendor. 15 | P a g e
  16. 16. FY09 FY10 FY11 3.0 3.0 2.8 177,000 204,000 236,000 541,552 563,540 627,631 Air Travel 278,107 304,342 348,710 Other Business Travel 73,970 64,200 64,782 Office Electricity 176,323 182,328 204,036 Other Energy 13,152 12,670 10,103 Total Carbon emission per employee Global Workforce Total Carbon emission (metric tons) By Source People: Accenture also provides training to its employees. Accenture is also one of a few companies which have almost 35% of women workforce. Also they promote their employees to donate certain sum for giving back to community, like to Uttrakhand relief funds and Japan earthquake relief funds. FY09 Total Training Spending (US $thousands) Average training Hours per employee Employee Donations (US $ thousands) Women in workforce Women Newhires Women Senior Executives FY10 F11 794,218 591,229 810,387 67 9,918 42 8,612 36% 37% 16% 52 7,006 35% 34% 16% 35% 34% 17% Supply Chain Accenture prompts its suppliers to comply with the standards they follow. Also majority of their suppliers are either Minority owned business or women owned business. Like in India, Accenture works Self-employed Women’s Association of India (SEWA), which now supplies stationary to Accenture. 16 | P a g e
  17. 17. FY09 FY10 FY11 21577 21551 25507 Revenue (in millions) Total Procurement spend with diverse suppliers 16% 23% 266488 Total diverse procrement spend (in thousands) 21% 308535 408728 81907 114824 193085 65851 92461 81663 81223 123597 62004 26268 30823 30043 By Type (in thousand) Minority Owned business Women-Owned business Small Business Other type Business 17 | P a g e
  18. 18. Field Reserch. We have taken interview of two Accenture employee and what they feel about Accenture Ethics values and CSR activities : Interviewee: MR. Vivek Kumar Pande MR. Rahul Gupta Email: Email : Phone No: Phone No: Software Engineer at Accenture Gurgaon (DDC2) location. “Accenture is one of the most ethical companies I have ever encountered. I am proud to work here. It has high ethics , Great Industry, Great people. Specifically in my project , I am encouraged to secure client data. My project “Intertek” has been actively participating in CSR activities like helping underprivileged kids in their giving me all opportunities “Accenture iseducation, providing them to monetary and non monetary help to build work for society .In the through thehave their successful career past year I volunteered of NCR Based NGO Association of association for NGO :National “Salaam blind ,Hauz Khas Delhi. On ethics stand Baalak Trust.” “Accenture follow its core values very strictly ,and we are encouraged to complete all ethics training within due period of time through online portal Business Ethics through online medium. Please ”” Accenture is providing training in field of code of find below screenshot extract from Accenture Data Base. 18 | P a g e
  19. 19. References: sued_over_alleged_erp_project_failure/ sued_over_alleged_erp_project_failure/ 19 | P a g e
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