Module III: Code of Ethics:

• Principle of Ethics • Compliance based and values based code of ethics • Professional
obligation • Role of regulatory authority • Respect for Privacy • Confidentiality • Inform
Consent and debriefing

3.1 What is the Code of Ethics?

The code of ethics is a set of rules, not enforced by law but by social pressure that
defines how an individual should behave in the workplace. Generally, it includes
norms such as treating others with respect and avoiding taking unfair advantage of
them. There are different variations to this code depending on what industry you
work in and what company you work for.
A Code of ethics is vital to a business because they ensure that every employee and
person involved in the company is accountable for their actions. They govern what
is morally and ethically right or wrong, which means employees should always feel
confident that they’re making moral decisions as part of the company’s management
team or as an individual contributor. If the code isn’t up-to-date, it can lead to
wrongful conduct.
The code also needs to be clear enough so that anyone who encounters it
understands exactly what is expected of them. Companies should discuss these rules
with any potential new hires before they accept the job offer. It may seem like this
will take more time, but it will save time down the road if there are no
misunderstandings on either side.

The core purpose of a code of ethics is to contribute to the sustainable development of

an organization. It makes an entity align with the universally accepted human rights
standards and established understanding of ethical values.

Furthermore, it prevents unethical behavior and reinforces organizational values.

Apart from this, the goals of a code of ethics are described below.

1. Ensure Legal Compliance: Adhere strictly to relevant legislation.

2. Create a Predictable Environment: Create a predictable and consistent
ethical environment.
3. Enforce Ethical Rules: Recognize the need for enforcing ethical rules and
guidelines.
 4. Provide Guidelines for Stakeholders: Provide clear ethical guidelines for the
behavior of stakeholders, including employees and suppliers.
5. Reassure Ethical Stance: Reassure stakeholders about the organization’s
ethical stance and intent.

There are three main types of codes of ethics:

1. Compliance-based code of ethics

This type of code focuses on following the law and avoiding illegal activities. It is
often found in heavily regulated industries, such as finance and healthcare.
Compliance-based codes typically outline specific rules and procedures that
employees must follow.

2. Value-based code of ethics

This type of code goes beyond just following the law and focuses on upholding the
organization’s core values. Value-based codes often address issues such as honesty,
integrity, respect, and fairness. They may also address social responsibility and
environmental sustainability.

3. Profession-specific code of ethics

This type of code applies to members of a particular profession, such as doctors,

lawyers, or engineers. Profession-specific codes typically address the ethical
obligations that professionals have to their clients, colleagues, and the public.

In addition to these three main types, codes of ethics can also be categorized by their
focus:
4. Content-Focused Codes

Content-focused codes lay out specific rules, providing a clear guide for employees
on ethical behavior within the organization. These codes ensure everyone knows
what’s expected, fostering a shared understanding of ethical conduct.

5. Output-Focused Codes

Output-focused codes look beyond internal operations, focusing on how a business’s

actions impact society. These codes highlight the external outcomes, promoting a
sense of social responsibility and encouraging businesses to contribute positively to
their communities.

6. Transformation-Focused Codes

Transformation-focused codes go beyond rules. They evaluate how well the code
changes employee behavior. These codes aim to create a positive shift
in organizational culture, encouraging employees to internalize ethical values. They
mostly foster a culture of integrity and responsibility.

3.2 Professional Obligations

Professional obligations encompass the duties, responsibilities, and ethical

expectations placed upon individuals within a given profession. These obligations
ensure that professionals act with integrity, competence, and accountability,
ultimately contributing to the efficiency and ethical functioning of organizations
and industries.

Key Aspects of Professional Obligations

1. Job Responsibilities and Performance: Professionals are expected to fulfill their

designated roles effectively. This includes:
- Completing assigned tasks accurately and on time.
- Meeting performance benchmarks and organizational goals.
- Adapting to new challenges and problem-solving proactively.
- Demonstrating reliability and consistency in work output.

2. Ethical and Moral Conduct: Ethics play a crucial role in professional obligations.
Professionals must:
- Maintain honesty and transparency in their work.
- Avoid conflicts of interest that may compromise their integrity.
- Uphold confidentiality, particularly in sensitive industries like healthcare, law,
and finance.
 - Refrain from engaging in unethical behavior such as fraud, deception, or
workplace misconduct.

3. Compliance with Laws, Policies, and Regulations: Every profession has legal
and regulatory frameworks that govern it. Professionals must:
- Follow industry-specific laws (e.g., data protection laws in IT, financial
regulations in banking).
- Adhere to workplace policies regarding conduct, safety, and procedures.
- Stay updated on legal changes that may affect their profession.
- Report violations or unethical practices when necessary.

4. Accountability and Responsibility: Being accountable means taking ownership

of one's actions, including:
- Accepting mistakes and working towards corrective measures.
- Providing accurate reports and documentation as required.
- Being responsible for decisions that impact colleagues, clients, or the
organization.

5. Professional Development and Continuous Learning: To remain competent in

their field, professionals should:
- Pursue ongoing education, certifications, and training.
- Keep up with industry trends, new technologies, and best practices.
- Engage in self-improvement and skill enhancement.
- Seek mentorship and networking opportunities to grow professionally.

6. Respect and Collaboration in the Workplace: A professional must foster a

positive work environment by:
- Treating colleagues, clients, and subordinates with respect and fairness.
- Communicating effectively and professionally.
- Resolving conflicts constructively and maintaining a cooperative spirit.
- Embracing diversity and inclusion within the workplace.

7. Commitment to Excellence and Quality: Delivering high-quality work is a

fundamental obligation in any profession. This includes:
- Striving for precision and attention to detail.
- Taking initiative to improve work processes.
- Ensuring customer or client satisfaction.
- Maintaining high standards in service, production, and execution.

Why Professional Obligations Matter

Adhering to professional obligations:
- Builds trust between employees, employers, and clients.
- Enhances workplace efficiency and productivity.
- Protects professionals from legal and ethical risks.
 - Strengthens the reputation of individuals and organizations.
- Encourages a culture of responsibility and growth.

3.3 12 FUNDAMENTAL PRINCIPLES OF ETHICS

1. Honesty
Honesty is an essential value required to conduct business in an ethical manner.
Honesty requires you to be candid with your consumers, business partners and co-
workers. An honest company avoids dishonest business practices like under-
measurement, over-invoicing, pushing substandard products and making misleading
statements. To effectively put the principle of honesty into practice, a company is
required to be honest with its employees first. That sends a strong indication to the
employees that the company really wants them to be honest.
2. Integrity
Integrity refers to moral soundness as reflected by your thoughts and actions.
Maintaining integrity requires you to be principled and scrupulous even if you lose an
opportunity to make quick money. It may also require inner strength and courage to
side with what you think is right despite great pressure from others. Possessing
integrity helps you gain the trust and respect of others. A company that focuses on
developing integrity in its employees and management often finds it easy to
incorporate other ethical principles in its operations.
3. Trustworthiness
Trustworthiness mainly comes from the quality of keeping your promise. You
become trustable when you make sincere efforts to fulfil your commitments and
promises. This also implies that a trustworthy person tries to comply with an
agreement as understood by the parties instead of looking for loopholes to escape its
compliance. Trustworthiness helps build a healthy relationship with your customers,
vendors and other stakeholders. It can also help a company gain more business over
time.
4. Loyalty
It is common for a company to expect its employees to be loyal to it. But, companies
may also integrate this principle into their code of ethics with an intention of being
loyal to their employees and customers. For example, a company that is loyal to its
employees may consider layoffs and job cuts as the last option after exploring all
other methods of cost-cutting. Similarly, employees can be loyal to their organisation
by avoiding conflict of interest and maintaining the confidentiality of sensitive
business information.
5. Fairness
Another essential principle of ethics is to be fair in your dealings. It prevents one from
gaining undue advantage from others' unfavourable situations. Fairness also requires
that you treat others equally, irrespective of their caste, class, creed, gender, religion
or belief. An ethical company treats its employees fairly and provides them with equal
opportunities for advancement. Similarly, the company is also required to treat its
customers fairly.
6. Empathy
Empathy is the quality of understanding others' feelings. In a business context, it
includes caring about employees, customers and other stakeholders. Ethical
businesses consider the impact of their decisions on all the stakeholders concerned.
They try to achieve their business objectives with minimal negative consequences on
others, especially in terms of emotions, health and finance. For example, if a company
discovers that one of its products is potentially harmful, it would put the customers'
well-being over its profitability and recall the product from the market.
7. Respect
Ethical businesses and professionals treat others with respect and dignity. They are
courteous in their behaviour irrespective of who they are dealing with. They strive to
treat others the way they would expect others to treat them.
8. Compliance
Ethical businesses comply with the law of the land. For example, an ethical company
would avoid making unscrupulous adjustments in the sales figures to reduce its Goods
and Services Tax (GST) liability. Compliance with the ethical codes may also prevent
employees from taking shortcuts to make quick profits through unethical actions.
9. Pursuit of excellence
Ethical companies are committed to excellence in whatever they do. They try to add
value through their product or service instead of simply focusing on profits. For
example, an ethical company trying to develop a Covid-19 vaccine would be more
concerned about the efficacy of the vaccine rather than looking at it as yet another
opportunity to make money.
10. Leadership
Ethical businesses and executives strive to be positive role models for others. They
exemplify honour and accept personal accountability for their decisions. They try to
create an environment of healthy growth and principled reasoning by helping, guiding
and inspiring others.
11. Reputation
Ethical companies value their reputation. They may want their employees to conduct
in a manner that builds and protects their reputation. While they may be careful about
the management's words and actions, they may also take affirmative steps to improve
their employees' morale and conduct.
12. Responsibility
All businesses have certain obligations towards their employees, customers, partners
and society. An ethical business understands its responsibilities well. They would
want their employees to meet the expectations others have from the business.
The principle of responsibility pervades all aspects of the company's operations. For
example, it is the responsibility of the company to protect the visitors to its website.
Similarly, the business also needs to ensure that the customers making advance
payments get timely delivery of goods. As a responsible employee, you are required
to think about how your actions can affect others associated with your company.
3.4 Regulatory Bodies in India are government-established agencies that oversee
various sectors, ensuring compliance with laws and maintaining standards. These
bodies, such as the Reserve Bank of India (RBI) and the Securities and Exchange
Board of India (SEBI), play a critical role in governance by enforcing regulations,
promoting transparency, and protecting public interest.

Role and Significance of Regulatory Bodies in Governance:

• Ensuring Financial Stability: Regulatory bodies like
the RBI maintain financial stability by controlling inflation, managing interest
rates, and overseeing banking operations. They play a crucial role in
safeguarding the economy from financial crises.
For example: The RBI’s role in managing the liquidity crisis during
the COVID-19 pandemic through measures like the moratorium on loan
repayments highlights its importance in economic governance.
• Promoting Fair Competition: The Competition Commission of India
(CCI) ensures that markets remain competitive by preventing monopolies and
regulating anti-competitive practices. This fosters a healthy business
environment, benefiting consumers and businesses alike.
For example: The CCI’s intervention in breaking up the cement cartel in 2012,
which was inflating prices, demonstrates its role in maintaining market
fairness.
• Protecting Consumer Interests: Regulatory bodies like the Food Safety and
Standards Authority of India (FSSAI) ensure that products meet safety
standards, protecting consumers from harmful products. They enforce
regulations that manufacturers must comply with, ensuring public safety.
For example: FSSAI’s regulations on food labeling and packaging have
significantly improved consumer awareness and safety, ensuring that food
products are safe for consumption.
• Overseeing Environmental Protection: The Central Pollution Control Board
(CPCB) monitors pollution levels and enforces environmental regulations to
protect public health and the environment. This ensures that industries operate
sustainably, minimizing environmental damage.
For example: CPCB’s role in monitoring air quality and taking action against
polluting industries during the severe pollution episodes in Delhi highlights its
importance in environmental governance.
• Enhancing Accountability and Transparency: Regulatory bodies
like SEBI ensure that the securities market operates transparently, protecting
investors from fraud and manipulation. They enforce strict disclosure
norms and regulations that promote trust in the financial system.
For example: SEBI’s actions during the Satyam scandal in 2009, including
reforms to corporate governance,
reinforced transparency and accountability in the securities market.
• Ensuring Legal Compliance: Regulatory bodies enforce laws and regulations,
ensuring that industries comply with legal standards. This prevents
malpractices and protects the interests of stakeholders.
For example: The Insurance Regulatory and Development Authority of India
(IRDAI) ensures that insurance companies adhere to legal standards,
protecting policyholders’ interests.
Impact of Regulatory Bodies on Public Administration:
• Streamlining Administrative Processes: Regulatory bodies
introduce standardized procedures and guidelines, streamlining administrative
processes and ensuring consistency in governance across sectors.
For example: The Telecom Regulatory Authority of India (TRAI) has
streamlined the process of telecom licensing and spectrum allocation,
improving efficiency in the telecommunications sector.

• Improving Service Delivery: By enforcing standards and monitoring

compliance, regulatory bodies improve the quality of services provided by
both public and private sectors, enhancing public welfare.
For example: The Medical Council of India (MCI) regulates medical
education and practice, ensuring that healthcare services meet national
standards, thereby improving public health outcomes.

• Promoting Accountability: Regulatory bodies hold organizations accountable

for their actions, ensuring that public administration is transparent and that
officials and institutions are answerable to the public.

• Facilitating Policy Implementation: Regulatory bodies play a key role in

implementing government policies, ensuring that they are
effectively translated into action and achieving the desired outcomes.

• Encouraging Innovation and Adaptation: By setting standards and fostering

a competitive environment, regulatory bodies
encourage innovation and adaptation within industries,
driving progress and modernization in public administration.

For example: The RBI led National Payments Corporation of India (NPCI) has
driven innovation in digital payments, promoting financial inclusion and
modernizing India’s payment systems.

Regulatory bodies play a vital role in governance, ensuring that industries operate
within legal and ethical boundaries while promoting transparency, accountability,
and public welfare. As India moves forward, the continued strengthening of these
bodies will be essential to adapting to new challenges, fostering sustainable
development, and maintaining public trust in governance systems.

3.5 Respect for Privacy

Privacy in the workplace is a critical aspect of the employer-employee relationship,

influencing both legal and ethical considerations. In the contemporary digital age,
where technology plays a pivotal role in daily business operations, maintaining a
balance between employee rights and employer responsibilities regarding privacy is
essential. This article explores the intricacies of privacy in the workplace, delineating
the rights of employees and the corresponding responsibilities of employers.
Employee Rights:

1. Right to Privacy:
Employees have a fundamental right to privacy, encompassing personal and sensitive
information. This extends to personal belongings, electronic communications, and
activities within the workplace.

2. Electronic Communications:
Employees maintain a reasonable expectation of privacy in their electronic
communications, such as emails and text messages. Employers should establish clear
policies regarding the monitoring of these communications to ensure compliance with
applicable laws.

3. Personal Belongings:
Personal items brought into the workplace, such as bags, purses, or personal
electronic devices, are generally considered private. Employers should respect the
personal space of employees and avoid unwarranted searches.

4. Medical and Health Information:

Information related to an employee’s health and medical history is sensitive and
protected by various privacy laws. Employers must handle such information with the
utmost care and only share it on a need-to-know basis.

5. Employee Monitoring:
While employers have the right to monitor workplace activities to ensure productivity
and security, there are limits to such surveillance. Employees should be informed
about any monitoring practices, and the scope of surveillance should be reasonable
and transparent.

Employer Responsibilities:

1. Privacy Policies:
Employers are responsible for establishing clear and comprehensive privacy policies
that outline the company’s stance on privacy and the extent to which employee
activities may be monitored. These policies should be communicated effectively and
made accessible to all employees.

2. Consent and Notice:

Employers should obtain informed consent from employees before collecting any
personal information. Providing notice about the types of data collected, the purposes
for which it is used, and any third parties involved is crucial in maintaining
transparency.

3. Data Security:
Employers have a duty to safeguard employee data from unauthorized access,
disclosure, or use. Implementing robust cyber security measures, encryption, and
access controls can help protect sensitive information. In India, this has to be in
compliance with the Digital Personal Data Protection Act of 2023.

4. Compliance with Laws:

Employers must stay informed about and comply with relevant privacy laws and
regulations, such as the General Data Protection Regulation (GDPR) or the Health
Insurance Portability and Accountability Act (HIPAA), depending on the nature of
the business and the data collected. However, compliance with GDPR and HIPAA is
not made mandatory in India yet.

Presently, a patient’s personal information, including health information, is treated as

sensitive personal data or information (SPDI) under the Information Technology
(Reasonable Security Practices and Procedures and Sensitive Personal Data or
Information) Rules 2011 and is expected to be protected more than personal data.

With the advent of Digital Personal Data Act, 2023, stricter laws to monitor digital
data have been introduced and compliance with them is mandatory.

5. Balancing Rights and Interests:

Employers should strike a balance between protecting their legitimate interests, such
as ensuring a secure work environment and maintaining productivity, and respecting
the privacy rights of employees. Unreasonable or invasive monitoring practices may
lead to legal and ethical concerns.

3.6 Confidentiality
Confidentiality is crucial to many work environments. It plays an essential role in
protecting individuals, maintaining business security and safeguarding private data.
Confidentiality is a valuable soft skill that employers seek as it helps organisations
meet legal compliance requirements and build trust and credibility with customers and
partners.

The importance of confidentiality is extremely high in most businesses, workplaces

and careers. Being able to handle personal details, data and other private information
ethically is vital for companies to operate, retain the public's trust and meet specific
compliance laws and regulations. While the exact nature of confidentiality may
change, its fundamentals remain the same. For example, confidentiality for a doctor
may involve keeping medical information safe and secure. In contrast, confidentiality
for a marketing company may include trade secrets or the safe storage of personal
data for marketing lists and databases.

Confidentiality of information is the process of keeping information provided by an

individual secure and private, with no opportunity for anyone to access it without
permission. An example of confidentiality of information would be the trade secrets
of a business, where information keeping a business competitive requires adequate
protection. Confidentiality of information covers the full spectrum of data that a
business or practice could receive from an internal or external source.

Confidentiality is important in all workplaces, but there are specific roles and jobs
where having strong skills in confidentiality is extremely important. For example, a
role that handles private information about clients, such as a lawyer, would have a
greater commitment to confidentiality. Here are some examples of confidentiality in
specific careers:

HR confidentiality
HR consultants and professionals have significant responsibilities relating to
confidentiality in the workplace. As an individual with access to sensitive data for
employees, including their medical history, payroll and personal address, it is crucial
for HR professionals to maintain a high standard of confidentiality with others in the
workplace. HR professionals are responsible for managing and updating employee
information and storing it securely and confidentially.

Accountant confidentiality
Accountants handle sensitive financial information as a part of their daily tasks. Part
of an accountants' responsibility is complying with codes of practice to act in the best
interests of their clients. For example, clients may provide sensitive information about
their financial details and plans. The accountant then stores this information safely
and confidentially to ensure their clients' private details are not disclosed to anyone
else.

Therapist confidentiality
Therapists and other mental health professionals work directly with individuals to
provide private, professional services, maintaining confidentiality and putting
appropriate boundaries in place as required to build trust and help clients feel safe.
For example, a therapist may have details about a specific incident or event in an
individual's life. Ethically, it's their responsibility to keep these details safe, secure
and not to share them with anyone else without explicit permission to do so.

Confidentiality skills examples

Confidentiality skills can be difficult to define, as they mean different things in
different environments. Nonetheless, some soft skills can help ensure that you meet
the necessary codes and standards of confidentiality in a range of roles. Examples of
skills that can support confidentiality include:
Attention to detail
Having strong attention to detail can help to ensure you follow the necessary steps
and processes in line with GDPR, DBS and internal codes of practice. Noticing
problems as they arise and ensuring follow-through on confidentiality processes as
due diligence is vital to maintaining high confidentiality standards. Soft skills in
attention to detail can help you focus on the task to keep compliance on point.
Professionalism
Professionalism is a valuable confidentiality skill as it places a specific set of
standards and requirements on day-to-day work. Focusing on professionalism in the
workplace can help to keep confidentiality concerns at the forefront, ensuring all
criteria are met in every part of the role. Acting professionally can also help build
trust in clients, partners and employees by demonstrating the high standards you keep.
Discretion
Discretion is a soft skill that benefits many careers where confidentiality is important.
For example, discretion in both HR and medical roles is crucial as you access private,
personal data about employees or patients. Being able to show discretion helps build
trust and consistently provides a good standard of confidentiality with a person-first
approach.
Computer literacy
Computer literacy and an understanding of cybersecurity are vital skills for many
roles involving confidentiality. With most data and information now included in an
online database or dedicated software, it's important to know how to use a computer
safely to access confidential information. Understanding how to protect that
information and keep data free of breaches is extremely valuable.

Informed Consent and Debriefing

In psychology, research, and professional practice, informed consent and *debriefing*

are fundamental ethical principles that ensure respect for individuals and their
autonomy.

1. Informed Consent
Informed consent is the process by which individuals voluntarily agree to participate
in research, therapy, or professional services after receiving all relevant information
about potential risks, benefits, and their rights.

Key Elements:
- Competence: The participant or client must have the mental capacity to make a
decision.
- Disclosure: The professional must provide clear, understandable information about
the purpose, procedures, risks, benefits, and alternatives.
- Understanding: The individual must comprehend the information provided.
- Voluntariness: Consent must be given freely, without coercion or undue influence.
- Documentation: In many cases, written consent is required, especially for research
or medical treatments.

Key Principles:
1. Respect for Autonomy: Obtaining informed consent and providing debriefing
demonstrate respect for individuals' autonomy and decision-making capacity.

2. Transparency: Providing clear and accurate information about the research,

treatment, or other activity.

3. Trust: Building trust between individuals and researchers, healthcare providers, or

other professionals.

Debriefing
Definition: Debriefing is the process of providing participants with a full
explanation of a study or procedure after their involvement, especially if
deception was used. It is crucial in research ethics and therapeutic contexts.

Key Purposes:
- Clarification: Explains the true nature of the study or intervention.
- Deception Resolution: If deception was used in research, debriefing ensures
participants understand why it was necessary.
- Emotional Support: Helps participants process any psychological impact of their
participation.
- Right to Withdraw Data: Participants may have the option to withdraw their data if
they feel uncomfortable post-debriefing.

Debriefing:

1. Clear Explanation: Providing a clear and concise explanation of the activity and its
outcome.

2. Opportunity for Questions: Providing individuals with the opportunity to ask

questions and seek clarification.

3. Feedback: Gathering feedback from individuals about their experience and using it
to improve future activities.

4. Support: Providing support and resources to individuals as needed.

Consequences of Non-Compliance:

1. Loss of Trust: Failure to obtain informed consent or provide debriefing can lead to
loss of trust between individuals and researchers, healthcare providers, or other
professionals.
2. Legal Liability: Failure to obtain informed consent or provide debriefing can lead
to legal liability.

3. Professional Sanctions: Failure to obtain informed consent or provide debriefing

can lead to professional sanctions, such as loss of licensure or certification.

Conclusion
Both informed consent and debriefing are essential to ethical practice in research and
professional services. They protect individuals’ rights, promote transparency, and
maintain trust between professionals and participants or clients.