1. What are business ethics?
„Business ethics‟ is the application of ethical values, such as integrity, fairness, respect and
openness, to business behaviour (Institute of Business Ethics). It relates to all activities of a
company, from how it develops, produces and delivers its products and services, to its
interactions with its customers, suppliers, employees and wider society. Embedding these values
and being seen to do so has become increasingly important to overall business success.
Why are business ethics important for companies?
Business stakeholders have higher expectations of how an organisation undertakes its activities.
Failing to live up to these expectations can impact upon a company‟s reputation, which can take
a long time to develop or rebuild but can be damaged in a short space of time. It can influence
current and prospective customers and the companies‟ business prospects; employee morale;
recruitment, particularly senior positions; and in comment in the media relating to companies,
the analyst community and in capital markets. Even where a company has done nothing to justify
an attack on its reputation, a negative perception will itself be seriously damaging over time.
Failure to be seen to implement acceptable ethical standards of conduct can also impact upon the
degree of regulation or legislation that might otherwise be introduced to constrain behaviour.
Standards of conduct may need to be above that required by law to avoid reputational damage.
Failure to comply with the law will always be unethical and damage reputation. But conduct may
not be contrary to the law yet still be considered to be unethical and cause damage to a
company‟s reputation. A company‟s concerns in relation to its reputation should extend beyond
those for which it is personally responsible under a legal liability, for its reputation can be
damaged by other high risk areas such as the actions of third parties, including advisers,
suppliers, contractors, and business partners in joint ventures.
Recent highly publicised investigations into allegations of unethical or corrupt behaviour at a
number of global companies has severely damaged business reputations. This was the case at
BAE Systems despite the SFO‟s investigation being dropped and no prosecution being brought.
Whether and to what extent any of these allegations are justified, many people still perceive
these companies as being overly secretive, defensive, and unwilling to deal with the serious
reputational issues they face.
The costs, both in terms of bottom line financials and, as significantly, in terms of management
time, business distraction and “loss of sleep” of responding to any investigation, leave alone
defending a prosecution, can be intolerable. Peace of mind at least and usually a substantial
saving in costs in the face of any such investigation can be achieved by the adoption of high
ethical standards and an equivalent and pervasive culture throughout the organisation with the
procedures in place to maintain them.

2. GLOBAL BUSINESS STANDARDS CODEX
A corporate Code of Conduct, sometimes also referred to as Code of Ethics, helps a company to
show to all involved parties, internal and external, the standards that govern its conduct, thereby
conveying its commitment to responsible practice wherever it operates.
As you know, there have been many recent legal and paralegal initiatives to promote or require
good conduct by corporations. Because there are now so many of these guidelines, it is not
simple to get an overview, so that you're able to quickly assess if your firm's Code of Conduct is
'world-class'. A useful article in the HBR of Dec 2005 by Professors Lynn Paine, Rohit
Deshpandé, Joshua D. Margolis, and Kim Eric Bettcher may help: it provides a useful overview
of all (?) things that should be considered in any Corporate Code of Conduct.
The authors suggest 8 governing ethical principles which taken together they call: The Global
Business Standards Codex (GBS Codex). These 8 principles to create or evaluate a Code of
Conduct and their most important aspects are:
1. The Fiduciary Principle (Diligence, Loyalty).
2. The Property Principle (Protection, Theft).
3. The Reliability Principle (Contracts Premises, Commitments).
4. The Transparency Principle (Truthfulness, Deception, Disclosure, Candor, Objectivity).
5. The Dignity Principle (Respect for the Individual, Health and Safety, Privacy and
Confidentiality, Use of Force, Association & Expression, Learning & Development,
Employment Security).
6. The Fairness Principle (Fair Dealing, Fair Treatment, Fair Competition, Fair Process).
7. The Citizenship Principle (Law & Regulation, Public Goods, Cooperation with
Authorities, Political Noninvolvement, Civic Contribution.
8. The Responsiveness Principle (Addressing Concerns, Public Involvement).

3. Code of Conduct or Ethics of News
Corporation
 The Fiduciary Principle:
The company is following the principal of Fiduciary. As the company
says
Trust is built on commitment. The Company is committed to our employees and our
stockholders. We also recognize our commitments to free markets and to the global community,
especially the public that consumes our content. These commitments form the foundation for
these Standards.
Trust in the Workplace
Our commitment to our employees we treat each other fairly and with
respect, establishing a high trust environment where people can do their
best work.
Trust in The integrity of our employees
Our commitment to our stockholders each of us employed at News
Corporation companies acts in the best interests of the Company and we
don‟t do anything that would bring the Company into disrepute.
Trust in our Business ethics – our commitment To The free market
We uphold rigorous accuracy and honesty in our financial records and in
our dealings with business partners, competitors and suppliers.
Trust in The law – our commitment To The global community
We comply with all applicable laws in the countries in which we do
business, and practice good citizenship.

4.  Property Principal
Corporation is following the principal of property As company says “We protect
The Company‟s reputation and asset “
Avoiding Risk to Reputation:
The Company‟s reputation is one of our most valuable assets. Therefore,
we are always careful to be sure that we don‟t do anything that would
harm that reputation, or that would otherwise bring the Company into
disrepute.
Personal Gain:
We do not improperly use Company property, information or position for
personal gain.
Protection of Company Assets:
We protect Company assets from theft, carelessness, waste and misuse,
and we respect the property rights of others.
Electronic Communications:
We comply with the Electronic Communications Policy applicable to our
business unit with regard to the appropriate use of Company systems and
employees‟ proper conduct of online activity.
Intellectual Property:
If an employee sees or suspects that Company intellectual property has
been infringed upon by an unauthorized party, he or she should report the
matter to the Legal Department immediately.

5.  The Transparency Principle
We protect our reputation for honesty, transparency and fair competition.
Our credibility is at the core of our success.
Providing Truthful and Complete Information in Financial Records
o We maintain accurate and complete financial records, and make
full, fair, accurate, timely and understandable disclosure in reports
and documents that we file with government regulatory bodies or
otherwise make publicly available.
o We each take responsibility for recording clear, accurate and
complete information on any and all Company records we produce.
o We immediately bring to the attention of a manager in Human
Resources or an attorney in the Legal Department any suspected
fraud or financial irregularity.
 The Reliability Principle (Contracts Premises, Commitments).
The News Corporation is following the principal of Reliability.
 Our Commitment
Equal Opportunity
Non-Discrimination
Harassment
Health and Safety
Accommodations for Individuals with Disabilities
Drug-Free Workplace
Data Privacy
Crisis Management
On Site Security

6. Maintaining Credibility
Fair Competition and Antitrust
Bribes and Kickbacks
Self-dealing
Truthful Statements to the Company
Misleading Others into Thinking
We Represent the Company
 The Dignity Principle
Health and Safety:
We observe all applicable health, safety, environmental and labor laws, an
strive for a safe and healthy work environment.
Privacy:
We respect the privacy rights of employees in how the Company handles
personal data, consistent with the Electronic Communications Policy
applicable to your business unit.
Equal Opportunity:
We maintain a strong policy of equal opportunity for all of our employees
and applicants for employment, and are committed to complying with all
of our obligations under applicable laws.
Accommodations for Individuals with Disabilities:
We make reasonable accommodations for qualified individuals with
disabilities in accordance with the applicable laws.

7.  The Fairness Principle
Our public communications and reports are full, fair, accurate, timely and
Understandable
Commitment to fair competition in the free market
Engaging In Fair Competition
We engage in fair competition in the free market, obeying all applicable
antitrust and competition laws in the countries in which we do business. These laws generally
forbid any understanding or agreement, written or verbal, implicit or explicit, between
competitors to engage in conduct that restrains competition.
Employees do not:
1. Discuss or agree with competitors on anything pertaining to the division or allocation
of markets, customers or territories;
2. Discuss or agree with competitors on the fixing or coordination of prices,
expenditures or material terms;
3. Discuss or agree with competitors or customers on the exclusion of other competitors
from the market, or, absent review and approval by the Legal Department, agree on
refusals to deal with customers or competitors.
 Be aware that exclusive dealing arrangements, bundling of goods and services,
and price discounting may create competition law issues under certain
circumstances. Any such contemplated practices must be reviewed in advance by
the appropriate attorney in the Legal Department.
 Be aware of potential antitrust concerns that may arise in conversations with
competitors, particularly at trade association meetings or industry events, which
are often highly scrutinized. If a competitor raises any of the above topics, you
must withdraw immediately from the conversation and contact the Legal
Department to report the conversation.

8.  Good Citizenship Principal
We take our corporate social responsibilities seriously. Specifically in the context of our
business, which is news, information and entertainment, we are always and everywhere
dedicated to advancing our core values of free inquiry, free speech and free expression
for all people.
As a Company, we are at all times truthful and accurate when dealing with government
entities or officials. If you are contacted by any governmental entity or authority,
immediately refer them to the Legal Department and inform your supervisor.
We adhere to all applicable trade, labor and other laws in the countries in which we do
business.
We comply with the environmental laws of the countries in which we do business, and in
all circumstances strive to abide by non-wasteful, non-polluting practices.
 The Responsiveness Principle
The company is following the principal of Responsiveness