Corporate Ethics
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Corporate Ethics

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Corporate Ethics Corporate Ethics Presentation Transcript

  • Corporate Ethics: The Moral element of business
  • Defining Ethics
    • Understanding of right and wrong
    • Ability to distinguish between the right and the wrong.
    • Integral part of life
    • Running a business is a part of life
  • Corporate Ethics
    • Based on principles of integrity and fairness
    • Focuses on -
    • Stakeholders, and employees.
    • Quality of product and services
    • Customer satisfaction.
    • Community and environment
  • Corporate Ethics are implemented to-
    • Define the framework of the acceptable behavior.
    • Follow high standards of practice.
    • Create benchmarks for self evaluation.
    • Enhance sense of community.
    • Create transparency in the business activities.
    • Foster higher standards of business ethics.
    • Comply with government laws and norms.
  • Who is responsible for ethics in the company? “ Everyone”
  • An ethical problem can’t be resolved unless it’s first recognized as a ‘ dilemma’ Reward or punishment to ethical integrity and moral courage decide the act of an individual
  • Corporate ethics: The global perspective
    • Study by Columbia University 1990
    • Half of 1,000 business executives admitted being rewarded for taking action on the job that they considered unethical. 
    • One in three reported that refusing to take unethical action resulted in penalties. 
  • The inferences
    • Overemphasis on immediate gains can cascade down the organization.
    • Sending message to staff to generate cash flow, supersedes all other objectives, including personal integrity. 
    • This message carries more weight than official proclamations of values, and codes of ethics
    • Corporate directors need to minimize a company’s ethical liabilities and maximize its ethical assets
  • How to maximize the ethical assets?
    • Recognizing the company’s need to manage corporate ethics
    • The dangers of taking it for granted.
    • Supporting management to prevent or protect against unethical activities
    • Developing strategies to raise the ethical standard in the organization.
    • Build trust as a competitive lead.
  • Approaches to Bring a Code of Corporate Ethics to Life
    • Emphasize values, in creating the code of corporate ethics supported by rules.
    • Employees should be Educated about the corporate ethics code to make it relevant and real.
    • Reinforce the code within and beyond the organization.
    • Encourage employees to become active participants in upholding the corporate. ethics code and its values.
    • Gather feedback, measure effectiveness and continually improve the code of conduct.
  • Case: Infosys Technologies
    • Have a distinctive work culture and value system.
    • Great importance on customer delight, leadership, integrity, transparency, fairness and pursuit of excellence.
    • Open door policy.
    • Value employees and encourage them to make decisions about their own work.
    • Treated as a flat organization when it comes to communication and information sharing
  • Does Satyam’s story tell the myth and reality of Indian corporate ethics?
  • Corporate Ethics: Individual’s Perspective
    • Signs of ethical deterioration.
    • In business, people have made immoral millions
    • In government, public officials are involved in bribery.
    • In education, cheating scandals among students are common.
    • under-the-table payments for admission
    • People believe that they have to cheat to win.
    • They believe that nice guys finish last.
  •  
  • Ethics in Curriculum
  •  
  • USA teaches ethics or corporate ethics! Ethics or business ethics should be made compulsory for all students.
  • Corporate ethics: Management perspective
    • What is included in corporate ethics?
    • Purpose of the Business
    • People
    • Society
    • Government
    • Environment
    • Factors to be kept in mind
    • Involvement of The Senior Management
    • Involvement of The Employee
    • Picking The Well Tested Model
  •  
  • Management of ethics; an important function of the board
    • Accountable for corruption or impropriety in a company.
    • Board’s decisions on resource allocation, performance targets or promotions always trump official statements of ethical values.
    • Whistleblowers are to be given protection
    • Influence the ‘pressures’ which the CEOs handle in managing ethics
  • Principals for ethically run Business
    • Principle 1 – Productivity Is Much More Important Than Profitability
    • Principle 2 – The Customer Is Not Sheep That Can Be Sheared
    • Principle 3 – The Buyer's Domain Is More Important Than the Middlemen's Domain
    • Principle 4 – Be Diplomatic With Your Competitors
    • Institute of Business Ethics: www.ibe.org
    • Business in the Community : www.bitc.ie
    • ACCA (includes Ireland news): WWW. ACCAGLOBAL.COM
    • Institute of Chartered Accountants in England & Wales: www.iceaw.com/bettermarkets
    • Hermes Pension Management Ltd: www.hermes.com
    • Dow Jones Sustainability Index: www.sustainability-indexes.com
    • FTSE4 GOOD Index: www.ftse4good.com
    • Ethical Research Services: www.eiris.org
    • Ethics Resource Centre: www.ethics.org
    • Wikipedia: www.wikipedia.org/wiki/business_ethics
    • Spitzer Centre for Ethical Leadership: www. spitzercentre.org
    USEFUL WEBSITES
  • Thank you for listening Patiently