Download - Ethics and Ethical Practices in BRAC
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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