INFT3800-Professional Practice in IT

4.1 Overview In Topic 4 we will introduce the topic of Corporate Values, Culture and Governance. This topic continues to explore issues of ethical and professional behaviour, although this week we focus on the corporate environment in which ICT professionals work. Do you have a values statement at your current workplace, or at a client's workplace? Is there a values statement at the educational institution where you completed your graduate or undergraduate studies? In the space of an average workday or personal day make a note of how many values, visions and corporate statements you come into contact with. Start off with your local shopping centre, coffee house, grocer, pharmacist, bottle shop, supermarket, and look at printed receipts, promotional materials, posters, or websites. If corporations are prominently displaying their values and tying them explicitly to their service and products, then there must be significant worth or capital attributed to such displays. Can you think of some reasons for companies to do this? Might it have something to do with securing consumer confidence, the creation of a harmonious workplace environment, or is it more to do with transparent processes, or maybe even a certification process? There is no 'right' answer and in fact, there may be a number of reasons for companies to be internally and externally explicit about their corporate values and culture. 4.2 Corporate Values Often when a major corporation fails, enough people are affected for the questions to be asked. "Has the business world lost its values?" and "How did the situation get this far before it was noticed?" Values determine organizational behaviour and form the basis for codes of conduct. In this way they are similar to how ethical principles and values determine our personal behaviour. Many organizations have written values that sound impressive and desirable; the problem may be that they don't live by them (For Example: Think about how organizations deal with conflicts of interest). An organisation's values cannot be evaluated only by the values statements displayed on their websites, in their brochures or hung on foyer walls to impress clients. What is important is the set of values an organization follows in conducting business. We encourage you to be sceptical about the role of values in some organizations. Corporate Values Impact on Business Having good values and living by them is what good ethics, sustainability and professionalism is all about. Remember that in terms of ethical, sustainable professional practices, it is never enough to just say you will do something, even if you have the best of intentions of doing so. The best ethical and sustainable professional practices put their values and codes into practice. They are being active and doing or performing corporate values, statements and codes means all who participate, whether an individual employee, the corporation, client, or other stakeholders can all hold clear expectations and have confidence in the promises, function and delivery of service and products. Corporate values can play a key role in organizational survival, stability and success. Business ethics are founded in corporate values. Without a base of shared values throughout an organisation, there can be no agreed code of conduct or of ethical behaviour. Shared Values At this point you might like to stop and consider what is meant by the "sharing of values in an organisation". Think about an organisation you belong to. This could be your current PE Course, classmate, and tutor, your badminton club, toastmasters, your community of faith, or your online gaming group. Now list the kinds of commonalities or shared understandings that are needed in order to play an enjoyable game of badminton, make/listen/appreciate a speech, practice your faith in community, engage in a successful campaign in Eve Online. You quickly realise that we do all these things (to different degrees of success or enjoyment) in relation with others. The aspect of relationally is crucial to all that we do as humans. Of course, to do things well, we need to cooperate with others and communicate effectively. In ICT and business, we do this by being clear about the shared values we can agree upon and conduct our businesses through. Watch https:// youtu.be/f_0VzzqKvbQ 4.3 Corporate Culture Introduction A corporate culture, that is, a corporate way of practice, always exists in an organization even if it has not been formally described and communicated. A coherent culture promotes a sense of unity and purpose in an organisation. A strong culture needs two things: An organisation's leaders need to determine what it is that makes the organization different. The differences needs to be communicated throughout the organization. Corporate culture is about leadership and communication. To get some further insight into what culture is read Herb Kellehers thoughtful article A Culture of Commitment: Read A Culture of Commitment Author: Herb KelleherRead More Another useful way to think about leadership and its effects can be seen in this YouTube video titled, Engage Your Team by Ken Wright. In this video, Wright talks about the motivational aspects of leaders in creating a corporate culture through engagement with other people. Watch https:// youtu.be/IZA94smSkQg Culture is about how an organisation does things: "it's how we do things here." Many IT projects are about supporting organisational change with technology, so you need to be aware of cultural issues (recall we saw this topic detailed in Topic 3's YouTube Clip by ACS past-President Phillip Argy). You may be involved with a project which is required simply to service an organization's growth. Organisations also do not stay unchanged with time; they adapt to changes and influences including, but not limited to, local and distant demographics, consumer preferences, new competitors, government legislation, the availability of resources, technological progress, politics, and more. Two questions you may want to ask yourself time and time again throughout your career are: What happens as organisations grow? Can the corporate culture that the founders created remain unchanging, or should corporate culture evolve? With these two questions in mind, take a moment to watch this short YouTube video titled "Ideas for Your World: The New Zealand Experience". In this YouTube, a number of New Zealand corporations discuss the way a positive and dynamic corporate culture has enhanced their local, national and international profile. You will notice that the defining characteristics centre around identifying core values, and drawing on them to form not only corporate culture, but to promote different ways of engaging competitively. Their methods for shaping their corporate identities spill out enthusiastically to all aspects of the professional workplace. Lastly, their success in shaping a dynamic corporate culture rely heavily on excellence in both leadership and communication. Watch https:// youtu.be/NsfSrd1BfJI 4.4 Corporate Governance ICT professionals need to be aware of what corporate governance is, what IT governance is, why governance is important, how it differs from both management and compliance, and who is involved in making decisions about it. It is worth stopping to briefly reflect on your understanding of what each of these concepts refers to, as well as if you can identify any examples that are closer to your experience as an ICT professional (For example: at your internship, your workplace, your university, corporations in the media, etc) Governance is about control, accountability, responsibility, and authority. It is about rules and regulations, about who sets the rules and how compliance is monitored. There are various forms of governance. For example, the Board members of an organisation must ensure compliance with certain legal rules and regulations. If not, the Directors are liable for that non-compliance. Governance can also be understood in ethical terms insofar as it defines the beliefs, values and morals of an organisation, which in turn determine the organisations culture and set what is and is not acceptable behaviour. There is a link between corporate values and ethics (see Week 3) and governance. There is also a need to ensure that compliance does not limit innovation. It is a balancing act and the balance needs to be addressed when designing a governance framework. Corporate governance is the highest level of governance. Professional must be able to link governance of key assets, like ICT, back to corporate governance. Effective governance determines behaviour in the use of ICT. Corporate Values and Governance Corporate values are about defining suitable behaviours. At this point, you might like to look up the "Use of ICT Policy" at your internship, workplace or educational institution. 1. Did you realise this policy is in part, a way to shape your behaviour to align it with corporate values? 2. To what degree does your corporation or institution police this document? 3. Are you aware of the consequences of breaching them? 4. Do you agree with this (or any other policy, rule or regulation) in a professional capacity (or even a personal one)? 5. What do you imagine might happen if you disagreed with it? There is also a link between governance and values and we have already seen that there is a link between values and ethics. Although we are exploring IT governance in this module, you need to see where it fits in the overall governance framework. As an example of these links between values, ethics, and IT governance, The Australian Stock Exchange (ASX) defines corporate governance as: the system by which companies are directed and managed. It influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimised. And states that: Good corporate governance structures encourage companies to create value (through entrepreneurism, innovation, development and exploration) and provide accountability and control systems commensurate with the risks involved. Tip The ASX has a range of excellent resources covering a wide range of ASX related governance issues, including various constitutions and charters, as well as policies. These provide good working examples of the importance of clear communication and leadership in creating and maintaining governance and complying with legal requirements under the broader themes of ethics and professionalism. Read Corporate social responsibility Author: ASXRead More (Links to an external site.) P R E V I O U SN E X T 4.5 Corporate Ethics & Social Responsibility Performing a Corporate Social Responsibility Analysis In Topic 3 when we looked at ethics and professionalism, you saw how the ACS Code of Ethics expects you to behave ethically at all times. This means if you are managing an ICT project you must ensure that the project is ethically sound, and managed ethically. If it is not, then you should inform the organisation, stating the ethical breaches. Following the Global Financial Crisis, it is no longer possible for Board members to claim ignorance or poor controls. They can be held personally liable for bad business practices. If the company is not prepared to act ethically, then you should refuse to work on the project. Now you are going to examine your RMP from a social and ethical perspective. For this we will consider, Corporate Social Responsibility (CSR) which is still an emerging topic, which means that in your professional career, you may eventually add to it. This paper looks at using the principles of corporate social responsibility as a means of managing risk management. Read Using The Principles Of Corporate Social Responsibility In The Process Of Risk Management And Accountability Author: UNISARead More (Links to an external site.) Three Dimensions of CSR and Analysis Examine your project and answer the questions provided under each dimension. Principles of CSR Principle Meaning Consider Institutional Legitimacy Companies are responsible for earning and maintaining a 'licence to operate' granted by society. Would the technology I develop be welcomed by society? Public Responsibility Companies are responsible for solving the problems they cause, and for helping with problems related to their operations. Is the benefit greater than the risk? Managerial Discretion Managers are responsible for behaving ethically and in favour of socially responsible outcomes. Is my work and behaviour ethical and socially responsible? Processes of CSR Process Activity Consider Environmental Assessment Scanning the environment, gathering information, adapting to changing conditions. Have I asked the right questions? Stakeholder Management Engaging in dialogue with key stakeholders, collaborative problem- solving, corporate social performance reporting, corporate partnerships. Have I asked the right questions of the right people? Issues Management Anticipating issues, managing crises. Have I been thorough in thinking this through and prepared as well as I can? Outcomes of Corporate Behaviour P Outcome Meaning Consider Social impacts ...Of products and services, policies and programs. Will the software/services I provide work to benefit the company and society? Social Programs Formal policies that guide company behaviour and legal compliance, informal company culture and values. Does the software/services take into account all relevant legislation and compliance requirements? Social Policies Discretionary activities directed at specific goals. Can I take my knowledge into the community to enhance the reputation of my company and support the community in which my company operates? R E V I O U SN E X T R E V I O U SN E X T 4.6 ICT Governance & Regulation Introduction So far we have been discussing standards, but it is also important that ICT professionals keep themselves informed about any laws which may impact their activities. These may be broad business laws such as Occupational Health and Safety (OH&S). Some examples of other current applicable legislation can be found here:download We can think of compliance as being in two forms, regulatory/legislative and ethical. Both are relevant to work as an ICT professional we will look at how and why. Compliance in Australia In Australia compliance in general is determined by the Australian Standard on Compliance AS3806 - 2006 (Links to an external site.) (Links to an external site.) which defines compliance as "adhering to the requirements of laws, industry and organizational standards and codes, principles of good governance and accepted community and ethical standards". The standard recommends that organisations implement a compliance program to manage the risks associated with the compliance obligation. A compliance program is "a series of activities that when combined are intended to achieve compliance". Read what Allan Fels, former chief of the Australian Competition and Consumer Commission has to say. Answer the questions based on the reading: Is compliance a big deal? Does it really matter? Why should you be interested in compliance? Read Compliance programs the benefits for companies and their stakeholders Author: Allan FelsRead More (Links to an external site.) We learn from the definition above that compliance is about "laws, industry and organizational standards and codes. A recent example of Organizational Health & Safety and regulatory/legislative compliance can be found in this YouTube video on "Communications Compliance and Safety". In this YouTube video, Brendon Woods addresses the 2013 Comms Connect audience about the need for compliance for mobile and wireless technologies. At 31 minutes in length, this video is longer than the usual ones used to demonstrate key points, but it offers a broad sweep across OH&S on the ground for technicians, as well as specific changes to regulatory/legislative acts in Australia. The first 10 minutes are sufficient to put the content in context for you. There is also an excellent synopsis of his talk on the YouTube website underneath the video. Watch https:// youtu.be/3STdefHu6mk 4.7 IT Governance Introduction What is IT Governance and how does it relate to Corporate Governance? A succinct start on this is provided by ServiceXen. This short introduction provides a basic definition of the difference between management and governance which is often confused by those looking at IT Governance for the first time. Read IT Governance vs. Corporate Governance vs. IT Management Author: ServiceXenRead More (Links to an external site.) Australian Standards for IT Governance An important and implicit concern is the link between information technology and present and future business objectives. The video Imagine a World without Standards is a documentary on the importance of global standardisation. It is quite long (18 mins) but the first 2 minutes are worth viewing for the context of the International Standards Organisation (ISO), and help to place both Standards Australia, as well as corporate governance (including ethics and compliance), into perspective. Watch https:// youtu.be/TaxWfz_MB2A View Standards Australia Website Author: Standards AustraliaRead More (Links to an external site.) Building on the Australian Standard, AS 8015:2003 Corporate Governance of Information and Communication Technology, and an earlier release, the ISO released its current ISO/IEC 38500:2015 - Information technology - Governance of IT for the Organisation which now guides corporations around the world in their Governance of ICT. Please note you are not expected to purchase these standards at this stage, but should know from where they can be sourced. Your organisation may already have copies of these standards, or may be willing to purchase them. According to the Standard: "ISO/IEC 38500:2015 provides guiding principles for members of governing bodies of organizations [. . .] on the effective, efficient, and acceptable use of information technology (IT) within their organizations." View ISO/IEC 38500:2015 - Information technology - Governance of IT for the Organisation Author: International Organization for StandardizationRead More (Links to an external site.) View Australian Standard AS8015 Author: Ramin CommunicationsRead More (Links to an external site.) P R E V I O U SN E X T P R E V I O U SN E X T