Corporate ethics refers to principles of integrity, fairness and ethical behavior in business. An ethical company considers stakeholders like employees, customers, community and the environment. While generating profits, companies must establish frameworks for acceptable behavior and high ethical standards. Everyone in a company is responsible for upholding ethics. However, some business executives prioritize short-term gains over integrity, and unethical behavior is sometimes rewarded while refusing it carries penalties. Companies need to manage ethics carefully to maximize ethical assets, prevent wrongdoing and build trust.

1. Corporate Ethics: The Moral element of business

2. 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

3. Corporate Ethics Based on principles of integrity and fairness Focuses on - Stakeholders, and employees. Quality of product and services Customer satisfaction. Community and environment

4. 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.

5. Who is responsible for ethics in the company? “ Everyone”

6. 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

7. 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.

8. 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

9. 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.

10. 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.

11. 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

12. Does Satyam’s story tell the myth and reality of Indian corporate ethics?

13. 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.

15. Ethics in Curriculum

17. USA teaches ethics or corporate ethics! Ethics or business ethics should be made compulsory for all students.

18. 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

20. 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

21. 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

22. 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

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