Pharma sector to create 1,34000 number of jobs in 2016

The industry currently employs about 5.5-5.7 lakh people and has contributed significantly in creating a rich talent pool of researchers, scientists, doctors and project managers.

India Skills Report 2016, a joint initiative of PeopleStrong (India’s leading platform based multi-process HR Outsourcing and Recruitment Process Outsourcing & HR Technology Company), Wheebox (Global Talent Assessment Company), in collaboration with Confederation of Indian Industry, LinkedIn (World’s largest professional network) & Association of Indian University (AIU) forecasts an overall increase of 14.5% in the hiring intent from the current year to the next year. The pharma & healthcare sector has seen maximum hiring with an increase of over 20% in the hiring numbers as compared to last year which was 7.2%. The sector will create 134000 number of jobs in this year.Thus, hiring in India’s pharmaceutical industry is picking up and set to firm up in the next quarter.

The industry currently employs about 5.5-5.7 lakh people and has contributed significantly in creating a rich talent pool of researchers, scientists, doctors and project managers. This increase can be attributed to the initiatives by govt of India as well investment in the pharma, life science and healthcare sectors is showing a positive sign. Moreover, Indian pharma industry is likely to be in the top 10 global markets in value terms by 2020.

The maximum hiring in Pharma & healthcare will be seen in Karnataka, Kerala &Tamilnadu with employers preferring to hire B.Pharma & M.Pharma respectively. The employers prefer to hire freshers (33.6%) &5 years work experience candidates (32%) having skilled domain expertise in the age group of 22-25 years. The need of skilled manpower in the pharmaceutical industry ranges widely from R&D, Quality Assurance (QA), Intellectual Property (IP), manufacturing to even sales and marketing. What the pharma industry needs is to have better policies to retain and nurture the existing talent and equip them with necessary skills. However, this sector is emerging as a popular choice amongst Gen Y, since the nature of work, primarily treating patients and research for new drug discoveries plays an integral role in meeting their key career aspirations.

The sector still prefers to look for candidates through job portals (25%) & HR consultants 18.75%). In comparison to last year sourcing of candidates has slightly decreased through Job portals 22% and Consultants 15%.

credit: http://hrkatha.com/news/596-pharma-sector-to-create-1-34000-number-of-jobs-in-2016 

How does HR fare against other functions?

When on equal footing with leaders from other functions, where do HR leaders stumble?

Click on the image to enlarge

HR is often pitted against other functions of the organisation, especially on its strategic role in the overall growth of the company. Its responsibilities include growing the strength of an organisation’s talent, while gauging any risks to the health of its workforce.

DDI, a global talent management consultancy, has drawn a parallel between the several functions of an organisation, such as engineering, sales, operations, marketing, IT and finance. It has used two assessment reference points: an in-depth behavioural simulation of leadership skills and a detailed personality test.

The study reveals that the main competence of HR leaders seems to be building organisational talent. The other strengths of the HR function lie in coaching and developing others, compelling communication, cultivating networks, influencing others and leading teams.

However, when it comes to being customer focussed, that is, attentiveness to internal and external customers and end users, it lags far behind the other functions, such as engineering, sales, marketing and IT. On this parameter, HR is at par with the operations and finance functions.

However, when it comes to being business savvy and having financial acumen, it is far behind the finance function.

In terms of global acumen, HR lags behind sales, marketing and operations.

In fact, when pitted against marketing—a department which has an external role to play like HR— the latter still has to match up on parameters, such as compelling communication, customer focus, financial acumen, global expertise and also an entrepreneurial bent of mind.

In terms of personality traits of the HR function, it has interpersonal sensitivity, and to some extent, sociability but lacks ambition and inquisitiveness.

Sales, operations and marketing are considered to be more ambitious, while engineering, sales and IT are believed to be more inquisitive. This implies that HR is not only less likely to exhibit a passion for growth, but may not even question why this is holding it back. When it comes to being sociable, HR is behind the sales and marketing functions, but ahead of engineering.

Looking across the full skill profile, the single function most distinct from HR is engineering, followed by marketing and finance. HR’s profile is most similar to operations, followed by sales and IT. Perhaps the most important consequence of HR’s profile is its under-representation in leader–candidate pools. HR leaders are increasingly rare among those who are considered for higher level roles. And, HR leaders who are considered have a distinct profile from those who are not.

Organisations need to recognise which of these assumptions about HR are accurate and which are overblown. On the basis of this, organisations need to build partnerships that connect HR with functions possessing complementary strengths. HR can both learn from and advise these groups on key skills.

© 2015 HR Katha

credit: http://hrkatha.com/news/574-how-does-hr-fare-against-other-functions

Alind Sharma joins Pfizer as head-HR

A chemical engineer and IIM Ahmedabad alumnus, Sharma was earlier director-HR at Monsanto.

Alind Sharma has joined Pfizer as senior director, human resources. He moves in from Monsanto, where he was director-HR for more than three years. His updated LinkedIn profile confirms this development.

Sharma has primarily been a pharma person who started his career with Ranbaxy Labs. He spent more than six years with the company before moving to Glenmark Pharmaceuticals. He rose from the ranks and became senior vice-president, HR in the eight years that he spent there. He also worked for a year at Tata International as head-HR.

A chemical engineer and IIM Ahmedabad alumnus, Sharma’s experience spans close to two decades.

Human resource is an integral part of a pharmaceutical company, where brand building and selling happens primarily through people.

This year has seen two of the largest pharmaceutical companies getting a bigwig as the HR head.

First, it was Yashwant Mahadik who joined Sun Pharma from Philips, as executive vice president and global CHRO. At Philips, Mahadik was global head of HR business transformation, IT & operations.

Then, Prabir Jha, group CHRO, Reliance Industries joined Cipla as global CHRO.

This is yet another senior-level movement in the HR function of the pharma sector.

© 2015 HR Katha

Credit: http://hrkatha.com/news/530-alind-sharma-joins-pfizer-as-head-hr

Parting letter from Prabir Jha on his last day at Reliance

Prabir Jha, president and Group CHRO, Reliance Industries was a true people’s person. On his last day at work, he bids adieu with a heartwarming letter. Excerpts

Parting letter from Prabir Jha on his last day at Reliance

Prabir Jha, president and Group CHRO, Reliance Industries was a true people’s person. On his last day at work, he bids adieu with a heartwarming letter. Excerpts

Prabir Jha, president and Group CHRO, Reliance Industries put it in his papers on Tuesday, July 28. Today will be his last day at Reliance.

In his last heartwarming letter to his collegues at Reliance, he says that the development has moved very fast and that he will leave Reliance at the end of day.

He regretted that he may not be able to see, speak, hug and thank each of his colleagues in person.

However, he mentioned that the team at Reliance has been the most amazing one to have had the opportunity to lead and be part of.

“What we have achieved over the last two years has been truly remarkable. We have moved mountains at a lightning speed. The world has stood up and applauded this HR makeover,” he wrote in the letter.

“I want to put on record that none of this would have happened unless each of you had put your shoulder to the wheel. I am inspired by your resolve and effort. I am so proud of your collaboration. I am so grateful for your trust and support to make us get to where we have,” he added.

He referred to this parting as circumstantial, something which was completely personal. “But each of you will remain a friend forever. I am sure with the mountains and boulders moved, you will continue to lay the expressway that is worthy of the corporation. I shall always applaud at your future successes from wherever I shall be among the crowds,” he said.

He ended with quote by Ralph Emerson which was always there in front of him in his office at Makers, “To laugh often and much, to win the respect of intelligent people and the affection of children, to earn the appreciation of honest critics and endure the betrayal of false friends, to appreciate beauty, to find the best in others, to leave the world a bit better, whether by a healthy child, a garden patch....to know even one life has breathed easier because you have lived.” This is to have succeeded.

© 2015 HR Katha
Credit: http://hrkatha.com/news/319-parting-letter-from-prabir-jha-on-his-last-day-at-reliance

Tata Steel, Tata Power & Wipro continue to be high on ethic

Tata Steel, Tata Power & Wipro continue to be high on ethics

Wipro has been on the list consistently since 2012. Tata Steel has also won for the fifth time but not in a row, as it was not part of the list in 2014.

Three Indian companies — Tata Steel, Tata Power and Wipro — have made it to the list of the world’s top ethical companies, once again. These three companies share the space with 131 other organisations including PepsiCo, Ford and LinkedIn from across 21 countries.

Wipro has been on the list consistently since 2012. Tata Steel has also won for the fifth time but not in a row, as it was not part of the list in 2014.

The list of the world’s most ethical companies was first instituted in 2007 and two Indian corporates — Hindustan Unilever and Tata Steel had found themselves on it.

During 2008–10, no Indian corporate could make it to this list. However, in 2012, HDFC was featured as the only Indian company in the list.

Out of the 131 countries selected this year, surprisingly 99 are from the US. However, it doesn’t imply that the world’s most ethical companies are based out of the US.

There are also four companies from the UK, three entries from France, India and Japan and two entries from Australia, Ireland and Switzerland. There were just single entries from the rest of the participant countries.

Since Ethisphere’s launch in 2007, the world has undergone dramatic expansion in terms of political and regulatory complexity. There has been a perceived and real ‘shrinking’ across markets. Companies and their executives are taking the leadership role around standards of behaviour. Issues, such as corporate citizenship, transparency, diversity, governance, and measurable values-based-leadership have come to form the foundation of the sustainable enterprise.

Companies will be increasingly rewarded financially for their efforts to attract and retain the best employees, and to operate with integrity and clarity of purpose. Ethisphere will continue to focus on creating the standards that correlate business integrity with performance.

After winning this accolade, Indra Nooyi, Chairman and CEO, PepsiCo says, “PepsiCo’s longstanding commitment to transparency, engagement and the highest ethical conduct has always propelled our business forward. These qualities are embodied by Performance with Purpose—our belief that profitable companies of the 21st century will be those that align the needs of their business with the needs of the world around them.”

“This honour reflects the hard work of men and women across PepsiCo whose integrity enables our success, and I want to thank Ethisphere once again, for recognising their achievements,” she adds.

Ethisphere recognises companies that not only promote ethical business standards and practices internally, but also exceed legal compliance minimums and shape future industry standards by introducing best practices. It rates the companies on the basis of their EQ (Ethical Quotient).

For the uninitiated, the EQ score is derived through a proprietary matrix of relationships between answers to given questions and a set of complex formulas based on demographic qualifiers.

The framework of EQ comprises a series of multiple-choice questions that capture a company’s performance in an objective, consistent and standardised manner. The information collected is not intended to cover all aspects of corporate governance, risk, sustainability, social responsibility, compliance or ethics. Rather, it is a comprehensive sampling of definitive criteria of core competencies.

The EQ framework and methodology has been determined, vetted and refined by expert advice and insights gleaned from Ethisphere’s network of thought leaders and from the World’s Most Ethical Companies Methodology Advisory Panel.

The EQ framework consists of five core categories, of which the weightage for the ethics and compliance programme is 35 per cent, while CSR, culture of ethics, governance and leadership, and innovation and reputation have 20 per cent, 20 per cent, 15 per cent and 10 per cent weightage, respectively.

The body reviews documentation submitted by the participant companies, conducts additional research and requests extra information and documentation from the companies.

They also perform reputational and legal reviews to determine any outstanding or historical issues.

External data sources, such as SEC filings, the RepRisk Index, Glassdoor, and global news outlets, among other sources are also consulted.

Compliance or ethics issues will be reflected in a company’s leadership, innovation and reputation scores. Seriously deficient scores in these categories will prevent a company from being selected as a 2016 World’s Most Ethical Company.

EQ scores are often adjusted on the basis of the documentation review and independent research. Each candidate then receives a ‘validated’ score that may be higher or lower than the initial ‘self-reported’ score. If verification of certain aspects of self-reported performance does not take place, the resulting scores may be discounted.

© 2015 HR Katha

Credit: http://www.hrkatha.com/news/634-tata-steel-tata-power-wipro-continue-to-be-high-on-ethics

Books by T. V. Rao

Books of Talam Venkateswara Rao 

(includes authored, edited, singly, jointly, and different editions)

1. HRD, OD and Institution Building: Essays in Memory of Udai Pareek. New Delhi: Sage Response Books, 2016 Edited jointly with Dr. Anil K Khandelwal. (http://www.amazon.in/Hrd-Od-Institution-Building-Essays/dp/9351509915/ref=sr_1_fkmr0_2?ie=UTF8&qid=1457928376&sr=8-2-fkmr0&keywords=HRD+OD+and+Institution+Building+T+V+Rao+and+Anil+Khandelwa)
2. Effective People: New Delhi: Random House, 2015 (http://www.amazon.in/s/ref=nb_sb_ss_i_2_16?url=search-alias%3Daps&field-keywords=effective+people+t+v+rao&sprefix=Effective+people%2Caps%2C543) 
3. Performance Management: Towards Organizational Excellence: New Delhi: Sage Response Books, 2016,  (http://www.amazon.in/s/ref=nb_sb_noss?url=search-alias%3Daps&field-keywords=Performance+management+T+V+Rao)
4. HRD Audit: Evaluating the Human resources Function for Business Improvements, 2^nd edition, New Delhi: Sage -Response Books, 2014 (http://www.amazon.in/HRD-Audit-Evaluating-Resource-Improvement/dp/8132119673/ref=sr_1_1?s=books&ie=UTF8&qid=1457929558&sr=1-1&keywords=hrd+audit+t+v+rao)
5. Organization Development: Accelerating Learning and Transformation: New Delhi: Sage: Response Books, 2011 (S. Ramnarayan & T V Rao) (http://www.amazon.in/Organization-Development-Accelerating-Learning-Transformation/dp/813210739X/ref=sr_1_1?s=books&ie=UTF8&qid=1457929629&sr=1-1&keywords=Organization+Development+S+Ramnarayan)
6. The Power of 360 Degree Feedback: Developing Leadership the India Way: 2^nd edition, jointly with Dr. Raju Rao, New Delhi: Sage- Response Books, 2014 (http://www.amazon.in/Power-360-Degree-Feedback-Effectiveness/dp/813211969X/ref=sr_1_1?s=books&ie=UTF8&qid=1457929853&sr=1-1&keywords=The+Power+of+360+Degree+Feedback) 
7. 100 Managers in Action: New Delhi: Tata McGraw-hill, 2012 (with Charu Sharma)
8. Entrepreneurship: A South Asian Perspective by D. F. Kuratko and T. V. Rao: New Delhi: Cengage Learning, 2012
9. Nurturing Excellence: Indian Institute of Management, New Delhi: Macmillan, (Co-authored with Vijaya Sherry Chand, 2011)
10. Managers who Make a Difference: New Delhi: IIMA Book Series, 2010 Random House. (Second edition 2016 with added chapters)
11. Life after 360 Degree Feedback and Assessment and Development Centres; Editors T. V. Rao, Nandini Chawla and S. Ramnarayan): New Delhi: Excel Books, 2010 
12. HR Best Practices; New Delhi: Steel Authority of India (jointly with Nisha Nair, Neharika Vohra, and Atul Srivastava), 2009.
13. HRD Score Card 2500; New Delhi: Sage, Response Books, 2008
14. Hurconomics; New Delhi: Oxford & IBH, 2008 Republished by Pearson Education: New Delhi, 2011..
15. The Power of 360 Degree Feedback; (Jointly with Mr. Raju Rao), New Delhi: Response Books, Sage, 2005. (Won Two awards as best Management book of the Year: DMA and ISTD)
16. The Future of HRD; New Delhi: Macmillan India, 2003
17. HRD in Asia: First Asian Research Conference on HRD; (jointly with Ramnarayan, Udai Pareek, AAhad Usman Gani) Academy of HRD, New Delhi: Oxford and IBH, 2003.
18. HRD Audit; New Delhi, Response Books, Sage Publications, 1999
19. Institutionalization of Innovations in Education; Ahmedabad: Swiss Agency for Development Cooperation & TVRLS, 1999  (With Jaya Indiresan and M G Jomon)
20. Changing Teacher Behaviour through Feedback; Hyderabad: ICFAI, 2006, (With Udai Pareek)
21. Training for Education Managers; New Delhi: Macmillan, 2005 (With Udai Pareek)
22. 360 Degree Feedback and Assessment & Development Centers; (edited by T V Rao and Nandini Chawla) New Delhi: Excel Publications, 2005
23. Performance Planning and Review Manuals; Ahmedabad: TVRLS, 2005
24. HR @ Heart of Business; (edited by TV Rao, A Gangopadhyay, RSS Mani), New Delhi: Excel Publications, 2002.
25. Performance Management and Appraisal Systems; New Delhi: Response Books, 2004
26. 360 Degree Feedback and Performance Management Systems; (Editors T V Rao, Gopal Mahapatra, Raju Rao and Nandini Chawla) Volume 2, Excel Publications: New Delhi 2002.
27. 360 degree Feedback and Performance Management systems Volume 1; (Editors: T V Rao and Raju Rao), Excel Publications: New Delhi, 2000.
28. Organizational Renewal in NGOs: Experiences and Cases; (Co-author with Uma Jain), Hyderabad: Academy of HRD, 1996
29. Organization Development: Interventions and Strategies; (Co edited with S Ramnaryan and Kuldeep Singh), New Delhi: 1998, New Delhi: Response Books
30. Pioneering Human Resources Development: The L&T System; Ahmedabad, Academy of HRD, 1998 (Co-author)
31. Redesigning Performance Appraisal System; 1996, Tata McGraw Hill, New Delhi
32. Human Resources Development: Experiences, Interventions Strategies; 1996, Sage Publications, New Delhi
33. Performance Appraisal and Review: Trainers Manual, Operating Manual and Skills Workbook; Learning Systems, New Delhi, 1978
34. Designing and Managing Human Resources Systems; Oxford& IBH Publications, New Delhi, 1981, 1991, 2003 (Co-author) (This book has won ESCORTS award as best management book in 1982)
35. Performance Appraisal: Theory and Practice; AIMA-Vikas Management Series, New Delhi, 1984 (Also translated into Bhasha Indonesia by PPM, Jakarta).
36. Recent Experiences in Human Resources Development; Oxford and IBH, New Delhi (edited by T.V. Rao and D.F. Pereira)
37. Alternative Approaches and Strategies of HRD; (edited by T.V. Rao, K.K. Verma, E. Abraham and A. Khandelwal), Rawat Publications, Jaipur, 1987
38. Excellence Through Human Resource Development; (editors M.R.R. Nair and T.V. Rao), New Delhi, Tata McGraw Hill, 1990
39. Designing Entrepreneurial Skills Development Programmes; London, Commonwealth Secretariat, 1990 (co-author)
40. The HRD Missionary; New Delhi, Oxford and IBH, 1990 (Second edition: 2009 TVRLS)
41. Readings in HRD; New Delhi, Oxford and IBH, 1991
42. Career Planning and Promotion Policies;  Ahmedabad, Academy of HRD, 1982 (co-author)
43. Appraising & Developing Managerial Performance; AHRD Publication, 1996, reprinted at New Delhi: Excel Books, 1999
44. Institution Building in Education and Research: From Stagnation to Self-Renewal; (Eds. R.J. Matthai, Udai Pareek and T.V. Rao), All Indian Management Association, New Delhi, 1977.
45. Adult Education for Social Change; Manohar Publications, New Delhi, 1980 (co-author)
46. Handbook for Trainers in Educational Management with special reference to Asia and Pacific; UNESCO, Bangkok (Co-author) 1981
47. Management Processes in Universities; New Delhi: Oxford & IBH (PSG Monograph 1, Indian Institute of Management, Ahmedabad 1978, co-author with R.J. Matthai and Udai Pareek)
48. Behavioural Sciences Research in Family Planning; Tata McGraw Hill, New Delhi, 1974 (co-author)
49. Doctors in Making; Sahitya Mudranalaya, Ahmedabad, 1976
50. Managing Family Planning Clinics; Asian and Pacific Development Administration Centre, Kaula Lumpur, Malaysia, 1977 (co-author)
51. Change Agents in Family Welfare: An Action Research in Organized Industry; Academic Book Centre, Ahmedabad, 1978 (co-author with Pramod Verma)
52. Developing Entrepreneurship: A Handbook for Policy Makers, Entrepreneurs, Trainers and Development Personnel; Learning Systems, New Delhi, 1978 (co-author)
53. Identification and selection of Entrepreneurs; (Eds. T.V. Rao and T.K. Moulik), Indian Institute of Management, Ahmedabad, 1979
54. Developing Motivation Through Experiencing; Oxford and IBH Publications, 1982 (co-author with Udai Pareek)
55. Entrepreneurial Skill Development Programmes in Fifteen Commonwealth Countries: An Overview; Commonwealth Secretariat, London, 1991
56. Handbook of Psychological and Instruments; Samasthi Publications, Baroda, 1974 (co-author)
57. Stewart Maturity Scale: Indian Adaptation; Manasayan, New Delhi, 1976
58. Sales Styles Diagnosis Exercises; Learning Systems, New Delhi, 1976
59. Behaviour Processes in Organizations; Oxford and IBH Publications, New Delhi, 1981 (Co-author with Udai Pareek and D M Pestonjee)
60. Measuring and Managing Organizational Climate; Ahmadabad: Academy of HRD, 1996 (With Dalpat Sarupriya and Dr. Sethumadhavan)
61. Selected Readings in HRD; New Delhi: Tata McGraw Hill, 1998 ( with Singh, Kuldeep & Nair, Baburaj)
62. HRD Philosophies and Concepts: The Indian Perspective; Ahmedabad: Academy of HRD, 1994 (with  Abraham, E & Nair, Baburaj V. Eds.)
63. HRD in the New economic Environment; New Delhi: Tata McGraw Hill, 1994 (co-edited with Silveira, D. M., Srivastava, C. M. and Vidyasagar, Rajesh)
64. Competency Mapping Education Kit (4 Volumes), Ahmedabad: TVRLS, 2005.

Credit: http://hrdisleadfunction.blogspot.in/2016/03/books-by-t-v-rao.html?spref=tw

A woman doesn’t need to be a man to succeed at work

There are leadership differences between men and women, which make for gender diversity in the workplace.

Women comprise more than half the workforce. Yet, less than 20 percent of C-suite executives are women and only five percent of CEOs are women. A study by DDI identifies three personality differences between the two sexes — inquisitiveness, sensitivity and impulsiveness.

Does this mean, a woman should act more like a man at work to be more successful? “The quick answer is no—except when it comes to confidence,” says Tacy M. Byham, CEO, DDI.

“Women need to do a better job of declaring themselves and becoming their own advocates—speaking and acting confidently and mentally promoting themselves to a future-focussed role. With this mindset, their own behaviours change. This strengthens a woman’s impact and improves her ability to get that seat at the table,” she adds.

The study by DDI reveals that women are less confident and less likely to rate themselves as highly effective leaders as compared to men. On the contrary, men highly self-rate their own leadership skills and their ability to tackle management and business challenges.

As per the study, only 30 percent of women rate themselves amongst the top 10 per cent of leaders, in comparison to 37 per cent of men. At the senior level, 63 per cent of men rate themselves as highly-effective leaders compared to only 49 per cent of women.

Women were less likely to have completed international assignments, or played leadership roles across countries or geographically dispersed teams, all of which make up important development opportunities. Leaders who had access to global and more visible experiences are more likely to advance.

Normally, we tend to focus too much on differences, which are actually few and far between. The fact is that there is no disparity in competence levels between the two genders. Building high-performance cultures; engaging employees; cultivating a customer-focussed culture; creating alignment and accountability; enhancing organisational talent; building strategic partnerships and relationships, driving process innovation and driving efficiency, are all activities effectively handled by both men and women.

The research shows that men are 16 per cent more inquisitive than women, possibly due to their tendency to gravitate towards STEM (Science, Technology, Engineering and Mathematics) careers that reinforce inquiry.

Women are interpersonally more sensitive than men (13 percent more), which can be an advantage in cultures where leaders are valued for demeanor and interactions with others. Men are also more impulsive than women (11 per cent more), which could result from the reinforced ‘just do it’ attitude, where women are nurtured with the outlook ‘don’t do it unless you can do it right’.

The study reveals that the lowest number of women in leadership roles—15 to 30 per cent— are in the consumer products, transportation services, computer software, technology, chemicals, energy and utilities, construction, industrial manufacturing, automotive and transport industries.

And industries such as health care, education and retail industries, where women leaders are in large numbers (43-47 per cent) have more female-dominated workforces.

Industries with a moderate representation of women leaders include: food, banking and telecommunication services. The number of women employed and leading in an industry influences the opportunities for women, to advance and develop, and has implications for the future too. Industries with shortages of women in leadership suffer due to fewer role models and mentors to provide encouragement and guidance, to encourage younger generations into leadership roles.

© 2015 HR Katha
Credit: http://www.hrkatha.com/news/632-a-woman-doesn-t-need-to-be-a-man-to-succeed-at-work

Wipro has been on the list consistently since 2012. Tata Steel has also won for the fifth time but not in a row, as it was not part of the list in 2014.

Wipro has been on the list consistently since 2012. Tata Steel has also won for the fifth time but not in a row, as it was not part of the list in 2014.

Three Indian companies — Tata Steel, Tata Power and Wipro — have made it to the list of the world’s top ethical companies, once again. These three companies share the space with 131 other organisations including PepsiCo, Ford and LinkedIn from across 21 countries.

Wipro has been on the list consistently since 2012. Tata Steel has also won for the fifth time but not in a row, as it was not part of the list in 2014.

The list of the world’s most ethical companies was first instituted in 2007 and two Indian corporates — Hindustan Unilever and Tata Steel had found themselves on it.

During 2008–10, no Indian corporate could make it to this list. However, in 2012, HDFC was featured as the only Indian company in the list.

Out of the 131 countries selected this year, surprisingly 99 are from the US. However, it doesn’t imply that the world’s most ethical companies are based out of the US.

There are also four companies from the UK, three entries from France, India and Japan and two entries from Australia, Ireland and Switzerland. There were just single entries from the rest of the participant countries.

Since Ethisphere’s launch in 2007, the world has undergone dramatic expansion in terms of political and regulatory complexity. There has been a perceived and real ‘shrinking’ across markets. Companies and their executives are taking the leadership role around standards of behaviour. Issues, such as corporate citizenship, transparency, diversity, governance, and measurable values-based-leadership have come to form the foundation of the sustainable enterprise.

Companies will be increasingly rewarded financially for their efforts to attract and retain the best employees, and to operate with integrity and clarity of purpose. Ethisphere will continue to focus on creating the standards that correlate business integrity with performance.

After winning this accolade, Indra Nooyi, Chairman and CEO, PepsiCo says, “PepsiCo’s longstanding commitment to transparency, engagement and the highest ethical conduct has always propelled our business forward. These qualities are embodied by Performance with Purpose—our belief that profitable companies of the 21st century will be those that align the needs of their business with the needs of the world around them.”

“This honour reflects the hard work of men and women across PepsiCo whose integrity enables our success, and I want to thank Ethisphere once again, for recognising their achievements,” she adds.

Ethisphere recognises companies that not only promote ethical business standards and practices internally, but also exceed legal compliance minimums and shape future industry standards by introducing best practices. It rates the companies on the basis of their EQ (Ethical Quotient).

For the uninitiated, the EQ score is derived through a proprietary matrix of relationships between answers to given questions and a set of complex formulas based on demographic qualifiers.

The framework of EQ comprises a series of multiple-choice questions that capture a company’s performance in an objective, consistent and standardised manner. The information collected is not intended to cover all aspects of corporate governance, risk, sustainability, social responsibility, compliance or ethics. Rather, it is a comprehensive sampling of definitive criteria of core competencies.

The EQ framework and methodology has been determined, vetted and refined by expert advice and insights gleaned from Ethisphere’s network of thought leaders and from the World’s Most Ethical Companies Methodology Advisory Panel.

The EQ framework consists of five core categories, of which the weightage for the ethics and compliance programme is 35 per cent, while CSR, culture of ethics, governance and leadership, and innovation and reputation have 20 per cent, 20 per cent, 15 per cent and 10 per cent weightage, respectively.

The body reviews documentation submitted by the participant companies, conducts additional research and requests extra information and documentation from the companies.

They also perform reputational and legal reviews to determine any outstanding or historical issues.

External data sources, such as SEC filings, the RepRisk Index, Glassdoor, and global news outlets, among other sources are also consulted.

Compliance or ethics issues will be reflected in a company’s leadership, innovation and reputation scores. Seriously deficient scores in these categories will prevent a company from being selected as a 2016 World’s Most Ethical Company.

EQ scores are often adjusted on the basis of the documentation review and independent research. Each candidate then receives a ‘validated’ score that may be higher or lower than the initial ‘self-reported’ score. If verification of certain aspects of self-reported performance does not take place, the resulting scores may be discounted.

© 2015 HR Katha

Source: http://www.hrkatha.com/news/634-tata-steel-tata-power-wipro-continue-to-be-high-on-ethics