SlideShare a Scribd company logo
Business Ethics Initiatives taken by
WIPRO
• Integrity Manual: Derived from the ‘WIPRO
values’ and defines the way Wiproites should
conduct Business with their customers.
• It guides Wiproites through the tough choices
they may face in the daily execution of their
role and helps create confidence in the minds
of the customers, investors, suppliers and
society at large
WIPRO SOS
• ‘WIPRO SOS’ has introduced a helpline which
comprises senior members of the company
like Chairman Azim Premji. They are always
available for guidance on any moral, legal or
ethical.
• Using this helpline, a senior manager revealed
to the management that he had inflated a
travel bill and opted to leave the company.
WIPRO’S OMBUDSPROCESS
• On 15th aug,2003 Wipro introduced a process
called the Wipro’s Ombudsprocess.
• If an employee discovers information which he
believes shows serious malpractice,
impropriety, abuse or wrongdoing within the
organization, this information would be
disclosed internally without fear of reprisal.
Business practices not so ethical
• Capital one terminated its contact with Wipro
Spectramind (Wipro’s BPO) after agents were
caught misleading customers during sales
calls. Wipro’s quality assurance team which
evaluates agent performance was asked to
stand back for two weeks every month so that
agents could carry undetected.
• This also led to termination of helpdesk
contract with Lehman Brothers.
World Bank barred Wipro Technologies
• Wipro Technologies had been banned in June
2007 for four years for "providing improper
benefits to bank staff." World Bank staffers said
the benefits included stock offered to the bank's
former chief information officer, Mohammed
Muhsin, who left the World Bank in 2005
• The four-year ban imposed in July 2007 to
investors was not disclosed by Wipro. It only
revealed the news now because of new
disclosure rules.
Conclusion
• Above analysis of cases shows that both ethical and
unethical practices may co-exist within the company.
• But studies show that Wipro focuses clearly on ethical
issues and has the right intent to curb non-ethical issues. As
a result, Recognized by the Ethisphere Institute, as one of
the 2013 World's Most Ethical Companies, for the second
year in a row.
• There have been cases of unethical practices by individual
employees like the financial fraud by an employee
transferring funds amounting to $14 m to his personal
account . In such cases,Wipro needs to strengthen its
corporate governance procedures and inculcate good
values in the employees by promoting initiatives like
Ombudsprocess.
• Further, Government needs to introduce a robust anti-fraud
policy The Department of Corporate Affairs in consultation
with ICAI, ICSI and ICWAI should develop laws which come
down heavily on breach of trust and fraud.
• All agent employments must be thoroughly scrutinized.
• Penalties must be made stiffer.
• The conviction rate in corporate frauds, currently under a
pathetic 5 per cent, must be improved. If an auditor fails in
his/her duty in India, he/she now faces a ridiculous penalty
of INR 10,000 and a maximum of 2 years imprisonment,
whereas the US law prescribes imprisonment for 20 years.
• Audit methods should be improved and incentives be
offered to whistle-blowers.

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Business ethics initiatives taken by wipro

  • 1. Business Ethics Initiatives taken by WIPRO • Integrity Manual: Derived from the ‘WIPRO values’ and defines the way Wiproites should conduct Business with their customers. • It guides Wiproites through the tough choices they may face in the daily execution of their role and helps create confidence in the minds of the customers, investors, suppliers and society at large
  • 2. WIPRO SOS • ‘WIPRO SOS’ has introduced a helpline which comprises senior members of the company like Chairman Azim Premji. They are always available for guidance on any moral, legal or ethical. • Using this helpline, a senior manager revealed to the management that he had inflated a travel bill and opted to leave the company.
  • 3. WIPRO’S OMBUDSPROCESS • On 15th aug,2003 Wipro introduced a process called the Wipro’s Ombudsprocess. • If an employee discovers information which he believes shows serious malpractice, impropriety, abuse or wrongdoing within the organization, this information would be disclosed internally without fear of reprisal.
  • 4. Business practices not so ethical • Capital one terminated its contact with Wipro Spectramind (Wipro’s BPO) after agents were caught misleading customers during sales calls. Wipro’s quality assurance team which evaluates agent performance was asked to stand back for two weeks every month so that agents could carry undetected. • This also led to termination of helpdesk contract with Lehman Brothers.
  • 5. World Bank barred Wipro Technologies • Wipro Technologies had been banned in June 2007 for four years for "providing improper benefits to bank staff." World Bank staffers said the benefits included stock offered to the bank's former chief information officer, Mohammed Muhsin, who left the World Bank in 2005 • The four-year ban imposed in July 2007 to investors was not disclosed by Wipro. It only revealed the news now because of new disclosure rules.
  • 6. Conclusion • Above analysis of cases shows that both ethical and unethical practices may co-exist within the company. • But studies show that Wipro focuses clearly on ethical issues and has the right intent to curb non-ethical issues. As a result, Recognized by the Ethisphere Institute, as one of the 2013 World's Most Ethical Companies, for the second year in a row. • There have been cases of unethical practices by individual employees like the financial fraud by an employee transferring funds amounting to $14 m to his personal account . In such cases,Wipro needs to strengthen its corporate governance procedures and inculcate good values in the employees by promoting initiatives like Ombudsprocess.
  • 7. • Further, Government needs to introduce a robust anti-fraud policy The Department of Corporate Affairs in consultation with ICAI, ICSI and ICWAI should develop laws which come down heavily on breach of trust and fraud. • All agent employments must be thoroughly scrutinized. • Penalties must be made stiffer. • The conviction rate in corporate frauds, currently under a pathetic 5 per cent, must be improved. If an auditor fails in his/her duty in India, he/she now faces a ridiculous penalty of INR 10,000 and a maximum of 2 years imprisonment, whereas the US law prescribes imprisonment for 20 years. • Audit methods should be improved and incentives be offered to whistle-blowers.