Ethical Issues and Challenges

Ethical Issues and Challenges Dr. Elijah Ezendu FIMC, FCIM, FIIAN, FBDI, FAAFM, FAAPM, FCCM, FSSM, MIMIS, MITD, MIAP, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC

Stakeholders of Corporate Environment
Shareholders
Employees
Customers
Suppliers
Creditors
Governmental Agencies
Community
Special interest Groups

Ethical Issues 1
Developing ethical culture
Eliminating conflict of interest
Enhancing cross-cultural ethics
Boosting fraud prevention
Aligning risk management to Corporate Governance
Equitable action to every shareholder
Fostering acceptable values in inter-organisational relationships

Ethical Issues 2
Unbiased relationship with employees
Appropriate disposition to acquisition and use of intellectual property
Observance of acceptable standards in finance
Adherence to genuineness of proposition in sales, marketing and representation
Application of technology for improving human race
Effective use of acceptable production and assurance technique

Ethical Issues 3
Promoting gender equality at work
Participating in community development
Accepting full responsibilities for its action
Prohibition of bribery

Causes of Unethical Practices
Greed
No Time
No Experience
Breakdown of control
Deficient Education
Circle of Influence
Poor organisational culture
Absence of Requisite Risk Management
Gamble
Lack of Integrity

Ethical issues in a society recline on the levers of values, beliefs and idiosyncrasies of people who act or stand perceived as role influencers or action models therein.

Rest’s Model of Ethical Action

Approaches for Handling Ethical Predicament
Utilitarianism
Communal Acceptation
Religiosity
Religiophilosophy
Personal Virtue
Deontology
Integrated Corporate Ethical Framework

Utilitarianism
This is an ethical doctrine based on value of usefulness to all concerned thereby yielding the highest level of happiness. Thus its not focused on the desire of few people in a society.

Communal Acceptation
This approach hinges on the finality of action by a community for a particular purpose, albeit the fundamental goal could be the happiness of a person or few people who used positions as great power influencers to induce followers or protégé in the direction of self aggrandizement or minority satisfaction.

Religiosity
The application of doctrines enshrined in a particular religion as the only permissible framework for ascertainment of right & wrong.

Religiophilosophy
This highlights admixture of doctrines of an imbibed religion and the basic beliefs in addition to principles of a group of people with the aim of obtaining a framework that conciliates both sides of the coin.

Personal Virtue
The practice of evolving individual character to a point of effectiveness by reinforcing one’s values with the culture of a community, firm, group or association.

Deontology
The generic method of assessing the level of morality which a particular action or activity represents in order to categorise it as right, wrong, permissible or mandatory.

Integrated Corporate Ethical Framework
This involves the development of an inclusive framework that serves as a hallmark of value excellence for an organisation or association by mixing well-assessed values and principles of immediate operating communities, professional bodies and global institutional benchmarks.

Common Rationalizations Used to Justify Unethical Conducts
If it’s necessary, it’s ethical
If it’s legal and permissible, it’s proper.
I was just doing it for you
I’m just fighting fire with fire
It doesn’t hurt anyone
It can’t be wrong
It is not for myself
It is a fair compensation for I lost
It does not affect my judgment
Source: Shirley Egan

Types of White Collar Crime 1
Bank Fraud
Blackmail
Bribery
Cellular Phone Fraud
Computer Fraud
Counterfeiting
Credit Card Fraud
Embezzlement
Environmental Schemes
Extortion
Forgery
Weights and Measures

Types of White Collar Crime 2
Health Care Fraud
Insider Trading
Insurance Fraud
Investment Schemes
Kickback
Larceny/Theft
Money Laundering
Racketeering
Securities Fraud
Tax Evasion
Telemarketing Fraud
Welfare Fraud
Source: National Check Fraud Center

“ Computer fraud can be defined as the use of a computer to gain unauthorized access to information or perform activities with the explicit goal of gaining material goods at the expense of others through criminal means.”
- ComputerFraud.com

“ An act involving misuse of computer or data therein, so as to illegitimately take over fund, material or property or valuable thing, or to bring about loss."
- Elijah Ezendu, Computer Fraud

“ Computer crime involves the use of a computer resource for the purpose of illicitly gaining goods or resources, or causing harm to another entity. For example fraud, theft, child pornography, virus, and unauthorized access. Whereas computer fraud is a subset of computer crime involving the use of electronic resources to present fraudulent or misrepresented information as a means of deception. For example online auction fraud, identity theft, and phishing.”
- Kunz & Wilson, Computer Crime & Computer Fraud

Types of Computer Fraud
Computer Manipulation
Computer Forgery
Desktop Counterfeiting

Computer Manipulation
Input Manipulation
Programme Manipulation
Output Manipulation

Computer Forgery
This is illegal alteration of documents in a computer in order to cause misrepresentation thereby defrauding an entity.

Desktop Counterfeiting
This deals with designing and developing counterfeits or modified forms of documents, cheques and certificates by means of desktop publishing skills.

“ Internet fraud is a form of fraud which uses any component of the Internet to accomplish the intended fraudulent activity.”
- National White Collar Crime Center, USA

“ The term ‘Internet fraud’ refers generally to any type of fraud scheme that uses one or more components of the Internet - such as chat rooms, e-mail, message boards, or Web sites - to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to other connected with the scheme.”
Source: US Department of Justice

“ Internet auction fraud was by far the most reported offense, comprising 44.9% of referred complaints. Non-delivered merchandise and/or payment accounted for 19.0% of complaints. Check fraud made up 4.9% of complaints. Credit/debit card fraud, computer fraud, confidence fraud, and financial institutions fraud round out the top seven categories of complaints referred to law enforcement during the year.”
Source: Internet Crime Complaints Center

Tools Used for Internet Fraud
Email
Chat rooms
Websites
Message Boards
Portals
Web Application

Types of Internet Fraud 1
Credit/Debit Card Fraud
Business Deceit
Recruitment Deceit
Freight Forwarding Scam
Counterfeit Cheque Scam
Advance Fee Fraud
Non-Delivery of Goods/Service Fraud

The successful integration of fitting ethical framework into organisations and the society at large shall provide the right platform for building effective action against challenges of unethical practices.

Exercise
An organisation intends to boost its corporate governance through effective ethical practices. State appropriate recommendations.

Dr. Elijah Ezendu is a multidisciplinary professional whose business experience mounts through diverse fields. He is a Certified Management Consultant, licensed by International Council of Management Consulting Institutes which has a Special Consultative Status in United Nations Economic and Social Council. As a result of his strides in management consulting, he received Merit Award for Excellence in Consulting. He is concurrently Senior Partner, Shevach Consulting; Director of Strategy and Development, Fortuna; Lead Assessor and Member of Governing Council, Institute of Management Consultants; Director of Training, International Council of Business Development Professionals; Member of Marketing Committee, International Council of Management Consulting Institutes; Member of Training Development and Delivery Committee, International Association of Software Architects; Honorary Global Advisor, International Project Management Commission; as well as Visiting Lecturer & MBA Programme Coordinator (Nigeria), Regent Business School, South Africa. He holds a doctoral degree in Management from St. Clements University, British West Indies. He is a Chartered Manager certified by Canadian Institute of Management, Canada and holds numerous professional qualifications including Master Project Manager; Project Manager E-Business; Fellow, Institute of Management Consultants; Fellow, Certified Institute of Cost Management; Fellow, Institute of Business Development; Fellow, American Academy of Financial Management; Fellow, Institute of Internal Auditors; Fellow, Society of Sales and Marketing; Member, Nigerian Institute of Training and Development; Member, Institute of Analytics Professionals; Associate, Chartered Institute of Personnel Management of Nigeria; Associate, Chartered Institute of Arbitrators (Nigeria). He is a Certified Business Development Analyst and Competitive Intelligence Professional. Additionally, he is an information technology management professional certified by Institute for the Management of Information Systems, UK along with Microsoft Corporation, USA and stands as a Member of International Association of Software Architects. He is an outstanding motivational speaker with a knack for recalibration of positive influence; and a world-class consultant, who has functioned as Speaker/Facilitator at myriad programmes of professional institutes, international development organisations, private and public firms including extra-governmental agencies and institutions. He is a prolific writer and author who had served as Editor-in-Chief, Cost Management Journal; Part-Time Lecturer & External Examiner (MBA Programme), Ladoke Akintola University of Technology; Director of MBA Programme (Nigerian Outreach), Management Institute of Canada; Chief Operating Officer, Rohan Marine; Second Vice President and Member of Governing Council, Certified Institute of Cost Management; Director of Programmes and Member of Governing Council, The Institute of Business Development; Director, Refined Shipping; and Examiner to various Professional Institutes.

Merci Beaucoup For additional information: Dr. Elijah Ezendu elezendu@yahoo.com, 234 8033024596

Ethical Issues and Challenges

by Elijah Ezendu on May 02, 2010

Accessibility

Categories

Tags

Upload Details

Usage Rights

1 Embed 18

Statistics

Ethical Issues and Challenges — Presentation Transcript