BT Group: an Analysis of the Organisations Code of Conduct - Essay Example

? BT Group: an Analysis of the Organisation’s of Conduct Contents Introduction 3 Critical Analysis ofthe Code 3 Description of BT Group’s Code of Conduct 3 Analysis of the Code 5 Strengths: 6 Weaknesses: 7 Component 1: Principles 8 Component 2: Human Rights 9 Component 3: Privacy and Confidentiality 9 Conclusion 10 10 References 12 Introduction BT Group is known as one of the leaders in global communications services that caters to the needs and demands of diverse clientele in the United Kingdom as well as in almost 170 nations (BT Group, Our company, 2012). The organisation provides services that focus on fixed line, mobile, broadband, TV products and network IT (BT Group, Our company, 2012). As a global organisation, it is paramount that all its branches comply with and adhere to a set of ethical, moral and legal standards as a basis for all decision-making processes. In reference to this, the current paper presents a critical analysis of BT Group’s Business Practice and Code of Ethics. Critical Analysis of the Code Description of BT Group’s Code of Conduct BT Group’s code of conduct and adherence to ethical standards are outlined in the organisation’s statement of business practice as published in a document entitled ‘The Way We Work’ (BT Group, A code of practice, 2009). The discourse is presented and divided according to the organisation’s business principles and their relationships to various stakeholders. In providing the guidelines and details of the organisation’s relationships with these stakeholders, they have enumerated their aspirational specific commitments. Likewise, BT has explicitly noted regulations in terms of resolving conflicts, providing assistance through offering confidential advice, reporting concerns, addressing human rights, and in disseminating relevant information relating to company policies and principles, as well as in monitoring adherence to these guidelines (BT Group, 2009). The organisation’s code of ethics is presented separately and is entitled A Code of Practice for BT People (BT Group, A code of practice, 2005). This code is structured into two parts: (1) information to all personnel; and (2) information to other people doing business with BT (BT Group, A code of practice, 2005). The first part is entitled ‘BT Undertakings Code of Practice’ (BT Group, ‘BT Undertakings code of practice’, 2005) and was reportedly endorsed by Ofcom in 2005. The code contains information which includes: a general overview of BT’s Undertakings and Equivalence as a central tennet. Thus, ‘Openreach will provide its services to other parts of BT in exactly the same way as it does to other companies that provide communications’ (BT Group, ‘BT Undertakings code of practice’, 2005, p. 3). It also contains regulations on sharing information, and commercial policy stipulations that contain information on current and future thrusts relating to Openreach and Wholesale’s major products and activities (BT Group, ‘BT Undertakings code of practice’, 2005). Concurrently, part two of BT’s Code of Practice explicitly contains guidelines for people in the following categories: (1) Openreach; (2) BT Wholesale; (3) BT Innovate and Design; (4) BT Operate; and (5) BT Ireland (BT Group, ‘BT Undertakings part two’, 2005). Similar sub-headings appear under these general categories wherein specific and explicit guidelines are enumerated according to the following: general overview, sharing commercial information and customer confidential information, influencing commercial policy, the statement of requirements policy, and other pertinent information distinct to each category (BT Group, ‘BT Undertakings part two’, 2005). Likewise, the organisation’s official website has included other codes of practice that are applicable to different stakeholders, as shown below: BT customer complaints code; BT code of practice for residential customers and small businesses; BT privacy policy; Audiovisual content information – Good practice principles; BT's Sales and Marketing approach (BT Group, 2005). The customer complaints code specifically informs the customer about instructions regarding the manner through which they can relay their complaints; the action that BT will take and the time frame; and finally, when the proposed action is to be implemented, and should the customer remain unsatisfied, the code indicates what other courses of action can be taken. The code of practice which is applicable to residential customers and small businesses discloses that the following information is detailed: Enumeration of main services offered; Provision of contact information; Provision of billing information; Explanation of options for bill payments; Explanation of filing complaints; and Enumeration of major features of ‘specific services such as BT broadband and Voice over Internet Protocol’ (VoIP) (BT Group, 2011, par. 3). The organisation’s privacy policy contains relevant information about what the BT Group actually is and what their privacy policy covers. It also stipulates the personal information which needs to be collected by the company, as well as the extent to which such personal information is shared with other affiliates. Other pertinent information that customers need to know regarding their personal information, privacy and confidentiality is contained in the privacy policy section (BT Group, n.d.). The audiovisual content information and good practice principles contain twenty-six guidelines in addition to enumerating five good principles of practice that should be conformed to by key players in the audiovisual market. Finally, the code of practice which is relevant to sales and marketing provides guidelines for customers who have been subjected to mis-selling or slamming, a situation whereby customers alledge that they have been ‘transferred to another phone company without their knowledge or consent’ (BT Group, Our sales and marketing practices, n.d., par. 1). Analysis of the Code According to Sullivan (2012, par. 1), an organisation’s code of conduct and ethical behaviour ‘are the set of behavioural rules employees should follow to ensure the company's values are reflected in all business dealings’. It was likewise indicated that the most crucial need for codes of conduct are to ensure that laws are not violated and that employees are provided with the most conducive working environment given that clear guidelines are in place to do what is right. According to the stipulated key components that must be an integral part of the code of ethics, the following were explicitly noted: values, principles, management support, personal responsibility and compliance (Sullivan, 2012). Concurrently, in Blowfield and Murray’s (2008, p. 24) book entitled Corporate Responsibility, the authors noted that there were prominent areas of corporate responsibility activity in contemporary times, related to diverse endeavors which include compliance with laws, adherence to ethical standards, investments in community, philanthropy work, preservation and conservation of the environment, adherence to and observation of human and animal rights, sustainability issues, labor and customer rights, anti-corruption, and clear corporate governance. As such, the code of practice and ethics published by BT Group can be evaluated in terms of its ability to incorporate these relevant key components, as well as the prominent areas of corporate responsibility, which will be presented in detail in the following sections. Strengths: Overall, the organisation’s code of practice exemplifies the following strengths: It is comprehensively presented and is intensive in certain details. It is effectively structured through its division of the code into parts according to the user or stakeholders’ interests. It has been created fairly recently and therefore, the contents are deemed applicable to contemporary times. The language is easy to comprehend across various cultures and international spheres. The statement of business practice, ‘The Way We Work’, is accessible and available in eleven different languages. It can be accessed easily as the prompts are available through the online medium. For assistance and confidential advice, the code stipulates different options for contacting authorised personnel and officers through the provision of effective links and indicating contact numbers. The reporting and monitoring of concerns and issues regarding violations associated with the code of practice are noted to be paramount; and it is explicitly emphasised that ‘for BT employees, failure to conduct business in line with these principles may ultimately result in disciplinary action up to and including dismissal’ (BT Group, 2009, p. 10). Weaknesses: Due to the presentation of categorising the code according to users’ interests, comprehensibility and unity can be compromised, especially in the case of users who need to access the code in its entirety, such as auditors, directors and senior executives. Viewing the code in sections affords only extremely limited access to the whole code of practice in terms of realising which corporate values, principles, and goals are to be achieved from adhering to these specified areas, and in terms of fully understanding the essence of corporate responsibility and adherence to ethical standards. Their published statement of business practice ‘The Way We Were’ is not paginated and therefore, renders difficulties for users to appropriately cite and identify relevant issues and concerns. Some complex concerns such as the ‘commercial information and customer confidential information together are sometimes called “restricted information”’ (BT Group, BT undertakings code of practice, 2005, p. 5). These are noted to require further advice and consultation with authorised personnel from legal, regulatory or compliance teams, which can be intimidating and daunting. An overall assessment of the organisation’s code of practice reveals that the key components which are explicitly present within their code include the following: principles, human rights, and privacy policies, among others. Likewise, as is identified by the prominent areas of corporate responsibility, as outlined by Blowfield and Murray (2008), BT Group’s Code of Practice emphasises conformity to business ethics, legal compliance, commitment to workers’ rights and welfare, market relationships and corporate governance. Through segregating the guidelines according to the user, e.g. personnel versus customers, BT Group provides greater opportunity to access those regulations that are evidently applicable to the user. This enables facets which are beneficial to those who require information and access to guidelines, and therefore prevents confusion and tendencies for accessing voluminous data which is not needed by the user. Thus, the structure is contributory to its effectiveness and enables highlighting the guidelines which can be most useful to the group seeking assistance and help. Component 1: Principles It is clearly stipulated under ‘The Way We Work’ that the principles which guide BT practitioners in their various corporate undertakings include the following: conformity to the law and legal regulations, to compete fairly, not accepting gifts (inducement), avoiding conflicts of interests, making commitments, managing risks, protecting the organisation’s assets, ensuring confidentiality of information, abiding by effective communication, respecting diversity, abiding by conformity to health and safety requirements, and protecting the environment (BT Group, 2009). Concurrently, the company’s values are specifically defined as ‘trustworthy (we do what we say we will), helpful (we work as one team), inspiring (we create new possibilities), straightforward (we make things clear), and heart (we believe in what we do)’ (BT Group, Our vision, strategy, and values, 2012, p. 1). Therefore, it can be deduced that the principles indicated are consistent with the organisation’s values in terms of providing support and conformity to ethical, legal, and moral standards that take into consideration the paramount interests of various stakeholders. For instance, the value of being trustworthy is enjoined to that of being fufilled by the organisation’s employees through abiding by the principles of complying with legal requirements, competing fairly, avoiding conflicts of interests and ensuring confidentiality of information (also through following privacy policies). Likewise, working as a team, or manifesting the value associated with being helpful, can potentially be achieved through the principles of making commitment, avoiding conflicts, managing risks, and ensuring that the assets of the organisation are protected, as needed. All of these principles follow the prominent areas of corporate responsibility as noted by Blowfield and Murray (2008), which is corporate governance and management support. Component 2: Human Rights In all endeavours, it is of paramount concern to observe and abide by adherence to human rights. Thus, BT Group’s ‘The Way We Work’ has clearly stipulated guidelines which emphasise conformity to human rights through disclosing that: BT upholds the UN Convention on Human Rights and the ILO Convention both in relation to its employees, its third party suppliers and supply chain…Following the ILO Convention - there is no forced, bonded or involuntary prison labour and workers are not required to lodge "deposits" or their identity papers with BT or its third parties or suppliers and are free to leave their employer after reasonable notice (BT Group, 2009, p. 10) The right of every employee to personal expression and to select according to personal values and preferences is subject to the guidelines noted in the company’s code of practices, as well as to policies and procedures disseminated and communicated therein. Organisations’ codes of conduct should abide by the universal regulations governing respect and equal access to rights accorded to all people, regardless of cultural orientation, ethnicity or race. Component 3: Privacy and Confidentiality The organisation’s code of practice which covers privacy policy is commendable given the extensive and comprehensive information provided therein. It initially establishes the rationale for designing regulations which guard the personal information of customers, as deemed crucial in their specific field of endeavour. Accordingly, BT Group emphasises that ‘BT is registered under the data protection laws in the United Kingdom and takes all reasonable care to prevent any unauthorised access to your personal information’ (BT Group, Privacy policy, n.d., par. 6). As such, the organisation acknowledges the paramount concern with retaining privacy and confidentiality of its customers through informing them of relevant information relating to their disclosure of personal information, as required by the organisation. Sensitive personal information pertaining to credit checking and account management is expounded and justified as necessary to enable BT Group to undertake essential activities that ensure that evaluating the credit worthiness of customers’ application for needed services are appropriately conducted. Likewise, the verification of personal information was relayed to be crucial for protecting these clients from potential identity thefts and security frauds, as well as in enabling the organization to detect spurious applications as required by money laundering regulations (BT Group, ‘Privacy policy – credit checking’, n.d.). Likewise, customers who demand clarification, verification, or resolution to their inquiries regarding disclosure of personal information and ensuring privacy and confidentiality are provided with contact details. The organisation’s code, which details privacy policies, also informs customers of the kind of personal information that is needed, how long it will be retained, what other third parties will have access to it, and how BT Group protects personal details. The policy guidelines are consistent with Blowfield and Murray’s (2008) areas of corporate responsibility, wherein the code signifies conformity to business ethics, legal compliance, and human rights. Conclusion This paper has successfully presented a critical analysis of BT Group’s Business Practice and Code of Ethics by initially examining and describing, in detail, the different components and categories of the organisation’s code of practice, which embodies the guidelines and principles undertaken by shareholders, management and employees towards other stakeholders: customers, suppliers, government agencies and community members. In terms of clarity and detail, the BT Group has effectively presented those key components that demonstrate conformity to explicitly defined values and ethical, moral and legal standards. Aside from making the code available and accessible to various stakeholders, the success of its implementation and adherence to the principles and standards indicated therein lies in frequent monitoring to guarantee that all personnel, regardless of their position in the organisational hierarchy, abide by these regulations and that appropriate sanctions are imposed fairly and equitably. References Blowfield, M. and Murray, A., 2008. Corporate responsibility: a critical introduction. S.l: Oxford University Press. BT Group, 2005. A code of practice for BT people. [Online] Available at: http://www.btplc.com/Thegroup/RegulatoryandPublicaffairs/Codeofpractice/BTPeople/BTpeople.htm [Accessed 24 December 2012]. BT Group, 2005. BT Undertakings code of practice. [Online] Available at: http://www.btplc.com/Thegroup/RegulatoryandPublicaffairs/Codeofpractice/BTPeople/CoP_BTpeople_Part_one.pdf [Accessed 24 December 2012]. BT Group, 2005. BT Undertakings code of practice: part two. [Online] Available at: http://www.btplc.com/Thegroup/RegulatoryandPublicaffairs/Codeofpractice/BTPeople/CoP_BTPeople_part_two.pdf [Accessed 24 December 2012]. BT Group, 2009. The way we work. [Online] Available at: http://www.btplc.com/TheWayWeWork/Businesspractice/twww_english.pdf [Accessed 24 December 2012]. BT Group, 2011. Code of practice for residential customers and small businesses. [Online] Available at :http://www.btplc.com/Thegroup/RegulatoryandPublicaffairs/Codeofpractice/Consumercodeofpractice/ConsumerCodeofPractice.htm [Accessed 26 December 2012]. BT Group, 2012. Our company. [Online] Available at: http://www.btplc.com/thegroup/ourcompany/index.htm [Accessed 24 December 2012]. BT Group, 2012. Our vision, strategy and values. [Online] Available at: http://www.btplc.com/Thegroup/Ourcompany/Ourvalues/index.htm#vision [Accessed 27 December 2012]. BT Group, n.d. Our sales and marketing practices. [Online] Available at: http://www.btplc.com/Thegroup/RegulatoryandPublicaffairs/Codeofpractice/Salescodeofpractice/Salescodeofpractice.htm [Accessed 26 December 2012]. BT Group, n.d. Privacy policy. [Online] Available at: http://www2.bt.com/btPortal/application?pageid=pan_privacy_policy&siteArea=pan [Accessed 26 December 2012]. Sullivan, J., 2012. What are the key components of a code of ethics in business? [Online] Available at: http://smallbusiness.chron.com/key-components-code-ethics-business-244.html [Accessed 26 December 2012]. Read More