Business Ethics & Integrity Services
eye
for
INTEGRITY APRIL
2002
Making Exceptions While every organization must frame rules that apply to all, there are times when exceptions have to be made. In this connection it is worth asking whether there is an ethical way of making exceptions to the rule? Indeed there is! First, while making the rule, care should be taken that the rule is neither unrealistic nor blatantly unfair. It should not, without adequate justification, lack uniformity in application. Very often there is an unseemingly haste in fashioning a rule without taking into consideration certain ground realities. But once a rule is made it should be adhered to, and that should be the aim of all rule makers. They should think of all kinds of possible objections to a rule before it is formulated, but after it is put down, then it has to be strictly observed in letter and spirit. Alongside with this, it is equally important to devise as to how exceptions to the rule will be handled, should the occasion for doing so come up. Such rules need to be made well in advance well before the actual need to make an exception arises. Rules for making exceptions should be based on the following guidelines: 1. Seeking exception must not be made easy. Sanction must be sought at a very high level. Taking the matter to such senior levels will itself be an inhibiting factor in seeking exceptions. The further advantage is that all relevant decision makers concur to a very specific exception to a certain rule. This meets the criterion of transparency. 2. On no account should exceptions to the rule break the law of the land. 3. Finally, no exceptions to the rule should tamper with the integrity of records. By making room for exceptions to the rule in this manner, it is possible to meet the twin objectives of uniformity and fairness.
Write back to us your views and if you would like to receive a soft copy of Eye for Integrity please send your e-mail address to eforintegrity@in.kpmg.com. _____________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________ This monthly issue is provided to you by KPMG – Business Ethics & Integrity Services. Contact Dr. Dipankar Gupta, at 4B, DLF Corporate park, DLF City, Phase – III, Gurgaon – 122002, or call at (91-124) 6549191 with your questions and comments. Visit us at our website at
http://www.in.kpmg.com All information contained here is of a general nature and is not intended to be an opinion of the Firm. Although we endeavour to ensure its timeliness and accuracy, no one should act upon it without appropriate professional advice after a thorough examination of the facts of the particular situation.