Business Ethics
6th
Semester
Lecturer: Hidayat Ullah
Sharif
2
Definition:
A Code of Conduct is a formal document that outlines acceptable and unacceptable
behavior, standards, and principles for employees within an organization. It defines
internal behavioral expectations, relationships, responsibilities, and professional
boundaries.
Main Components:
1)Integrity 2) Respect 3) Compliance with Law 4) Confidentiality 5) Conflict of
Interest Prevention 6) Anti-Corruption Rules 7)Proper Use of Company Resources
Code of Conduct
3
Purpose:
1) To create an ethical and healthy work environment.
2) To provide clear behavioral guidelines for employees.
3) To support monitoring, discipline, and accountability.
4) To protect the organization’s reputation.
Example:
“No employee may use company resources for personal purposes, and all conflicts
of interest must be reported.”
4
Definition:
An Ethics Officer is a professional appointed by the organization to implement,
monitor, train, and resolve issues related to ethical standards. In many
organizations, the official title is Chief Ethics and Compliance Officer (CECO).
Duties and Responsibilities:
1. Developing ethics programs
2. Conducting ethics training for employees
3. Receiving and reviewing ethical complaints or violations
4. Ensuring compliance with laws and the Code of Conduct
5. Monitoring ethical risks within the organization
6. Reporting ethical issues to senior management
Ethical Officers
5
Value of Ethics Officers:
 Prevention of corruption and misconduct
 Reduction of legal risks
 Increased transparency and stakeholder trust
6
Path-Goal Theory
According to this theory, a leader must clarify the path to achieving goals, remove
obstacles, and motivate employees by providing guidance, support, and resources.
In short: Leadership is about clearing the way for followers to achieve success.
Four Leadership Styles:
1. (Directive Leadership) Provides clear rules, expectations, timelines, and
procedures Best when tasks are complex and employees lack experience.
2. (Supportive Leadership) Friendly, caring, and focused on employee well-
being Best for stressful, dangerous, or tedious work environments.
3. (Participative Leadership) Involves employees in decision-making Best
when employees are experienced and knowledgeable.
4. (Achievement-Oriented Leadership) Sets high goals, expectations, and
standards Best for skilled and highly motivated employees.
Purpose of the Path Goal Theory:
 To simplify the path toward achieving goals
 To eliminate obstacles
 To increase employee confidence and motivation
Situational Leadership
There is no single best leadership style. A leader must adjust his/her style according to
the readiness level of employees.
FACTORS INFLUENCING THE LEVEL OF CONFLICT
 Stakes
 Emotional Involvement
 Power Imbalance
 Communication
 History

Business Ethics.p 8,9,10.pptxBusiness Ethics.p 8,9,10.pptx

  • 1.
  • 2.
    2 Definition: A Code ofConduct is a formal document that outlines acceptable and unacceptable behavior, standards, and principles for employees within an organization. It defines internal behavioral expectations, relationships, responsibilities, and professional boundaries. Main Components: 1)Integrity 2) Respect 3) Compliance with Law 4) Confidentiality 5) Conflict of Interest Prevention 6) Anti-Corruption Rules 7)Proper Use of Company Resources Code of Conduct
  • 3.
    3 Purpose: 1) To createan ethical and healthy work environment. 2) To provide clear behavioral guidelines for employees. 3) To support monitoring, discipline, and accountability. 4) To protect the organization’s reputation. Example: “No employee may use company resources for personal purposes, and all conflicts of interest must be reported.”
  • 4.
    4 Definition: An Ethics Officeris a professional appointed by the organization to implement, monitor, train, and resolve issues related to ethical standards. In many organizations, the official title is Chief Ethics and Compliance Officer (CECO). Duties and Responsibilities: 1. Developing ethics programs 2. Conducting ethics training for employees 3. Receiving and reviewing ethical complaints or violations 4. Ensuring compliance with laws and the Code of Conduct 5. Monitoring ethical risks within the organization 6. Reporting ethical issues to senior management Ethical Officers
  • 5.
    5 Value of EthicsOfficers:  Prevention of corruption and misconduct  Reduction of legal risks  Increased transparency and stakeholder trust
  • 6.
    6 Path-Goal Theory According tothis theory, a leader must clarify the path to achieving goals, remove obstacles, and motivate employees by providing guidance, support, and resources. In short: Leadership is about clearing the way for followers to achieve success. Four Leadership Styles: 1. (Directive Leadership) Provides clear rules, expectations, timelines, and procedures Best when tasks are complex and employees lack experience. 2. (Supportive Leadership) Friendly, caring, and focused on employee well- being Best for stressful, dangerous, or tedious work environments. 3. (Participative Leadership) Involves employees in decision-making Best when employees are experienced and knowledgeable. 4. (Achievement-Oriented Leadership) Sets high goals, expectations, and standards Best for skilled and highly motivated employees.
  • 7.
    Purpose of thePath Goal Theory:  To simplify the path toward achieving goals  To eliminate obstacles  To increase employee confidence and motivation Situational Leadership There is no single best leadership style. A leader must adjust his/her style according to the readiness level of employees.
  • 8.
    FACTORS INFLUENCING THELEVEL OF CONFLICT  Stakes  Emotional Involvement  Power Imbalance  Communication  History