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1. Unit-5

2.  Corporate : A corporation is a legal entity
created under the laws of a state designed to
establish the entity as a separate legal entity
having its own privileges.
 Ethics : Concept such as good and evil, right
and wrong, virtue and vice, justice, etc.

3.  Corporate ethics ( also called business ethics)
is a form of applied ethics or professional
ethics that examines ethical principles and
moral or ethical problems that arises in a
business environment. It applies to all aspects
of business conduct and is relevant to the
conduct of individuals and entire organizations.

4. The broad area dealing with the way in which
a company behaves towards, and conducts
business with, its internal and external
STAKEHOLDERS, including employees,
investors, creditors, customers, and
regulators. In certain national systems
minimum standards are required or
recommended in order to eliminate potential
conflicts of interest or client/employee
mistreatment.

5.  Trading practice
 Customers
 Government
 Stakeholders
 Employees
 Tax payments
 Fairness

6.  Complying with the laws and rules of the countries
and regions where business is conducted and
engaging in fair practices in the light of social ethics.
 Aiming to become a sensible corporate citizen, and
striving for harmony with society.
 Disclosing information in a timely fashion, and
engaging in honest and transparent communications.
 Protecting the irreplaceable earth and contributing to
the preservation of the environment.
 Respecting fundamental human rights and
individuality, and building up a corporate culture with
a broad vision which fosters the spirit of corporate
ethics.

7.  ASK QUESTIONS - on the investment in which he wishes to apply his savings, on the
transaction and the financial agents involved.
 BE AWARE OF THE OPPORTUNITIES FOR INVESTMENT - once the amount to be
invested has been decided, along with the horizons for the application and the
investor's risk profile, the financial agent should make clear what opportunities for
investment exist; the agent's assessment should take into account the sum of capital
the investor has available and the degree of risk he is prepared to face.
 BE INFORMED OF THE RULES WHICH GOVERN THE MARKET IN WHICH HE IS
INVESTING - the financial agent should provide all the necessary information on the
investment which has been chosen, its operational ability and practices prevailing in
the market; the agent should also declare the legal and regulatory guarantees to
which the investor can resort if the particular rule(s) is not properly carried out.
 MAKE HIS CHOICE COUNT - in other words, the investor's wishes should be
respected. Once the investment to be made has been resolved, the financial agent
is not entitled to apply the funds to a different operation from that chosen by the
investor.
 ENJOY ACCESS TO INFORMATION - this means to request and receive information
from the company or the fund being studied by the investor, so that he can decide
where to make the application of funds (by being able to look at accounting records
and financial information, company documents, the names of the controlling
interests and the directors) through consulting the department of shareholders in
the company, the Exchange on which the share will be negotiated and, moreover,
the CVM. All these facilities are geared to enabling the investor to make a decision
while thoroughly aware of the risks and costs involved.

8.  BE INFORMED OF THE RETURNS AND RISKS OF THE APPLICATION - once
the investment has been chosen, the investor requires to be notified by
the financial agent as clearly as possible on the returns yielded by it and
the chance (risks) that the hoped for returns will not actually come to
fruition. The definition of the investor's risk profile is a crucial factor in
directing the application with a surer hand.
 BE AWARE OF THE COSTS ARISING FROM INVESTMENT - no investment is
entirely free from related costs. It is the role of the financial agent to
clarify the costs attached to the application which the investor will have
to pay, just as the investor will need to know the liquid value of the
transaction. The investor should refuse to pay any figure which had not
been previously revealed or settled.
 READ THE CONTRACT FIRST - in other words, be thoroughly aware of the
contract which is associated with the chosen investment. This terms of
this contract should be set out in a clear fashion and the financial agent
will be expected to comply with the rules it contains.
 RECEIVE DOCUMENTATION TO PROVE THE INVESTMENT - once the type
of investment to be made and the sum of funds involved have been
resolved, the financial agent is obliged to provide the investor with a
document (detailing the characteristics of the investment and the sums
involved) to vouch for his application. There is a further obligation to
inform the investor of the verifying documents which will have to be
forwarded to the institutions with which the investor deals, as a
guarantee that his wishes will be respected.

9.  RECEIVE THE BONDS AND / OR SECURITIES
STEMMING FROM THE OPERATION - once the
operation has been performed, after liquidation the
investor should immediately receive the bonds (or, if
they are papers, appropriate proof) and securities
associated with the application, sale or redemption.
 BE INFORMED OF RIGHTS ACCRUING FROM THE
INVESTMENT MADE - the financial agent should
inform the investor of the complementary benefits
connected with the investment. For example, in the
case of shares, the agent should point out the
existence of dividends, bonuses, split and reverse
splits. In the case of ordinary shares, it is important
to explain such matters as voting rights, etc.
 TO COMPLAIN - TO MAKE RIGHTS COUNT! - if rules in
force are not observed, the investor is entitled to
take a complaint without any reservations or fear of
adverse reaction to the contracted agent, institution,
stock exchange, over-the-counter market or to the
CVM, the regulatory agency responsible for the
inspection of the market in securities.

10. 1.Inform and educate yourself:
 Read thoroughly all sales literature, prospectuses,
and/or other offering documents, when available,
before making any investment.
 Carefully consider all investment risks, fees, and/or
other factors explained in these documents.
 Make certain that you understand the relationship
not only between your investment objectives and the
risks and returns on your particular investments but
also between your particular investments and your
investment objectives.
 You need to remember at all times that every
investment has some degree of risk and that it is
possible to lose money -- some or all -- on any
investment.

11. 2.Communicate with your financial representative:
 Provide completely accurate information about your
financial status, investment goals, and risk tolerance
when seeking investment advice, so that Fidelity can
provide you with appropriate recommendations.
 Seek out whatever information you need or want
from a Fidelity Representative by proactively asking
any questions you have about your account, a specific
transaction, risk exposures, potential conflicts of
interest, and, of course, commissions, sales charges,
and other fees.
 Notify Fidelity promptly whenever there is a
significant change in your investment objectives, risk
tolerance, income, net worth, or liquidity needs.
 Review your portfolio holdings on a regular basis, and
whenever your financial circumstances change. You
may want to make appropriate changes based on your
investments' performance and your current
objectives.

12. 3. Keep your accounts current :
 Have cash or available margin-buying power
in your investment account, or transfer funds
into that account, to ensure payment for
securities purchases by the settlement date.
If you are paying by check or funds transfer,
you should always make payments directly to
Fidelity Investments.
 Review all transaction confirmations and
account statements or reports carefully and
promptly. You should report any errors or any
questions you have to a Fidelity
Representative immediately.

13. 4.Use the right resources :
 Consult an attorney or a tax advisor for
specific tax or legal advice.
 Keep in mind that you are fully responsible
for your investment decisions.
 Consider carefully the validity and reliability
of investment information obtained from all
sources, especially unsolicited information
obtained over the Internet.
 Understand that neither our guidance nor the
opinions of outside securities analysts should
ever be interpreted as a guarantee of future
performance or rate of return.

14.  Investors are often known as shareholders or
members of the company. They contribute to
the equity capital, have the voting rights in
every matter and are entitled to get
dividend. Protection of investors means
safeguard and enforcement of the rights and
claims of a person in his role as an investor.

15.  In today's socially conscious environment, employees and
customers place a premium on working for and spending
their money with businesses that prioritize corporate
social responsibility (CSR).
 CSR is an evolving business practice that incorporates
sustainable development into a company's business model.
It has a positive impact on social, economic and
environmental factors.
 Katie Schmidt, the founder and lead designer of Passion
Lilie, said CSR can positively impact your business by
improving your company image, building your brand and
motivating you as a business owner.
 "What the public thinks of your company is critical to its
success," Schmidt told Business News Daily. "By building a
positive image that you believe in, you can make a name
for your company as being socially conscious."

16.  As the use of corporate responsibility expands, it
is becoming extremely important to have a
socially conscious image. Consumers, employees
and stakeholders are beginning to prioritize CSR
when choosing a brand or company. They
are holding corporations accountable for
effecting social change with their business
beliefs, practices and profits.
 "A robust CSR program is an opportunity for
companies to demonstrate their good corporate
citizenship … and protect the company from
outsized risk by looking at the whole social and
environmental sphere that surrounds the
company," said Jen Boynton, CEO of B Targeted
Marketing Co.

17.  To illustrate how critical social responsibility
has become, previous research by Cone
Communications found that more than 60% of
Americans hope businesses will drive social
and environmental change in the absence of
government regulation. Nearly 90% of the
consumers surveyed said they would
purchase a product because a company
supported an issue they care about. More
importantly, roughly 75% will refuse to buy
from a company if they learn it supports an
issue contrary to their own beliefs.

18.  Consumers aren't the only ones who are drawn to
businesses that give back. Susan Cooney, head of
global diversity, equity and inclusion at Symantec,
said that a company's sustainability strategy is a big
factor in where today's top talent chooses to work.
 "The next generation of employees is seeking out
employers that are focused on the triple bottom line:
people, planet and revenue," said Cooney. "Coming
out of the recession, corporate revenue has been
getting stronger. Companies are encouraged to put
that increased profit into programs that give back."
 In addition to a better company image, Schmidt said
sustainable development can help your business
financially. For example, using less packaging and less
energy can reduce production costs.

19.  Recognizing how important socially responsible efforts are to their
customers, employees and stakeholders, many companies now focus on a
few broad CSR categories:
 Environmental efforts: One primary focus of corporate social
responsibility is the environment. Businesses, regardless of size, have
large carbon footprints. Any steps they can take to reduce those
footprints are considered good for both the company and society.
 Philanthropy: Businesses can practice social responsibility by donating
money, products or services to social causes and nonprofits. Larger
companies tend to have a lot of resources that can benefit charities and
local community programs. It is best to consult with these organizations
about their specific needs before donating.
 Ethical labor practices: By treating employees fairly and ethically,
companies can demonstrate their social responsibility. This is especially
true of businesses that operate in international locations with labor laws
that differ from those in the United States.
 Volunteering: Attending volunteer events says a lot about a company's
sincerity. By doing good deeds without expecting anything in return,
companies can express their concern for specific issues and commitment
to certain organizations.