bss ethics

1. REPORTING ETHICAL
PERFORMANCE
CHAPTER 21
Business Ethics
1Chapter 21

2. LEARNING OBJECTIVES
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At the end of this chapter students will be able to
discuss and illustrate the:
1.The reasons for reporting ethical performance
2.The target audience of the report
3.Measuring ethical performance and activities
related to it
4.Methods used in reporting ethical performance

3. INTRODUCTION
The final stage in the process of managing ethics is to
measure and report accurately on ethical performance.
Measuring and reporting on the ethical performance of a
company closes the loop in terms of a corporate
governance framework for managing ethics.
This chapter introduces ethical reporting and other types
of non-financial reporting.
The current trend is to integrate reporting on ethical
performance with reporting on the social, economic and
environmental performance of the company, also
referred to as sustainability reporting or triple bottom-
line reporting.
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4. REASONS FOR REPORTING
Assists the company in identifying risk areas, determining effective
strategies and ultimately in improving financial performance.
Ethical reporting also leads to enhanced stakeholder relationships,
improved risk management because of an increased understanding of
non-financial risks, as well as improved investor relations
The benefits of ethical reporting
Improved financial performance.
Enhance stakeholder relationship
Improved risk management
Improved investor relations
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5. TARGET AUDIENCE
An ethical report is prepared for the
benefit of all the stakeholders of a
company
Companies who produce good ethical
reports therefore usually also have
successful stakeholder engagement
processes in place
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6. MEASURING ETHICAL
PERFORMANCE
MEASURING ETHICAL PERFORMANCE
Using The AccountAbility 1000 Process Model
(AA1000)
Activities in AA1000 Standard
 Planning
 Accounting
 Reporting
 Auditing
 Embedding
 Stakeholder Engagement
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7. Measuring Ethical Performance
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8. The AAA1000 Model
The model guides the process of engaging
with stakeholders in the following areas:
Identification of issues and priorities
Definition of performance metrics and
targets
Process of accounting, auditing and
reporting.
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9. Business Ethics Chapter 21
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Reporting Ethical Performance
An increasing
companies are
making use of
the guidelines
provided by
Global
Reporting
Initiatives (GRI)

10. CONCLUSION
Ethical reporting is the final stage in the
process of governing and managing an
organization’s ethical performance.
It ensures that discipline is instilled into this
process
Not only does it provide essential feedback on
the organization’s ethical performance, it also
provides the basis upon which planning for
improved ethical performance can be done.
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