7/26/2019 Business Ethics & Corporate Governance- session 02.ppt

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PUBLIC FINANCIAL MANAGEMENT TRAINING PROGRAM(PFMTP)

Business Ethics and Corporate Goernan

7/26/2019 Business Ethics & Corporate Governance- session 02.ppt

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Today’s outline

 

An overview of Business Ethics

Ethical principles in Business

Moral Development and Reasoning

Business ethics and Morality in

international Context

Ethics Theory and ractice

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An overview of Business Ethics

Business ethics !also corporate ethics" is a form of applied ethics or

professional ethics that examines ethical principles and moral or ethical

pro#lems that arise in a #usiness environment$

%t applies to all aspects of #usiness conduct and is relevant to the conduct of

individuals and entire organi&ations$

Business ethics refers to contemporary standards or sets of values that govern

the actions and #ehaviour of an individual in the #usiness organisation$ Ethical issues include the rights and duties #etween a company and its

employees' suppliers' customers and neigh#ors' its fiduciary responsi#ility to

its shareholders

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Ethica! princip!es in Business

Fairness in tradin" practices# tradin" conditions# $nancia! contractin"# sa!es practiceconsu!tanc% serices# ta& pa%'ents# interna! audit# e&terna! audit and e&ecutie co'

a!so a!! under the u're!!a o $nance and accountin"*

 This area o usiness ethics usua!!% dea!s +ith the duties o a co'pan% to ensure thand production processes do not need!ess!% cause har'*

Potentia! e'p!o%ees hae ethica! o!i"ations to e'p!o%ers# ino!in" inte!!ectua! proprotection and +hist!e,!o+in"*

 Mar-etin" ethics ino!es pricin" practices# inc!udin" i!!e"a! actions such as price $&!e"a! actions inc!udin" price discri'ination and price s-i''in". Certain pro'otiona!hae dra+n $re# inc!udin" "reen+ashin"# ait and s+itch# shi!!in"# ira! 'ar-etin"# s Ethica! and !e"a! issues inc!ude/ Patent inrin"e'ent# cop%ri"ht inrin"e'ent# trade'inrin"e'ent# Patent and cop%ri"ht 'isuse# su'arine patents# io!o"ica! patents# patent# cop%ri"trade'ar- tro!!in"# E'p!o%ee raidin" and 'onopo!i0in" ta!ent# Bioprospectin"# iopi

industria! espiona"e# di"ita! ri"hts 'ana"e'ent.

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  Moral Development and Reasoning

 "

People with integrity value other principles, including honesty, respect, personal

responsibility, compassion, and dependability. These qualities are integrated into

the Six Pillars of Character offered by the osephson !nstitute, a nonprofit

organiation that develops and delivers services and materials to increase ethical

commitment. The pillars are#

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Sets of moral Reasoning!

 Trust+orthinessRespect

Responsii!it%

Fairness

Carin"

Citi0enship

1The oerridin" princip!e that %ou hae indiidua! is %ou hae to 'a-e the ri"ht decisi

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(ometimes it is very difficult to apply ethical issues #ecause a decision may

easier' #ut it is not right$ (o it ta)es more of a personal challenge to do the

right decision$*

 +ocal context situation

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Business ethics and Morality in

international Context

%f it does not come from the top leadership' it will not permeate through the

rest of the organi&ation, Employees loo) to their top leaders for the #ehaviors

they are expected to model$

Ethical #usiness practices are not necessarily the most profita#le methods in

the short term' #ut they are essential for long-term organi&ational survival,

An ethical manner can create positive #usiness results$ A #usiness

environment that promotes and upholds strong values is usually a happier and

more productive wor)place where customers receive good service so they

)eep coming #ac)$

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Business ethics and Morality in

international Context

%n addition to wor) #ehavior' ethical principles should guide our personal and professlives$

.Being ethical re/uires loo)ing at universal values and that is the decision matrix peocan use in their #usiness and personal lives'

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Business ethics and Morality in

international Context

0onesty

%ntegrity

romise-1eeping 2 Trustworthiness

+oyalty

3airness

Concern for 4thers

Respect for 4thers

+aw A#iding

Commitment to Excellence

+eadership

Reputation 2 Morale Accounta#ilit

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Thinking outside of the box

Morals are how you treat people you )now$ Ethics are how you treat

people you don’t )now$

5our morality is what ma)es you a good wife or hus#and' dad or

mother$ A good daughter or son$ A good friend$ Even a good

employee or #oss to the people you )now personally in the company$

5our ethics are what ma)es you a good politician$ %t is what ma)es

you a statesman$ %t is also what ma)es you a good' humane CE4 of

any large company$

Discussion6

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  Ethics Theory and ractice

7or) together in small groups to develop a shared language of ethical values'

apply that language to a series of real-life dilemmas in +i#eria$

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Assignment

5ou have 8ust arrived in +i#eria to esta#lish another #ranch of your #usiness' %f th

/uestiona#le action is a common local practice' would you li)e to conduct #usine

without engaging in unethical practices9

Please address issues that are preailing in iberia and ho" it could be

addressed#

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  $ood for thought!

+ive so that when your children thin) of fairness' caring' and integrity' they

thin) of you$ 0$ :ac)son Brown' :r$

7ith integrity' you have nothing to fear' since you have nothing to hide$ 7ith

integrity' you will do the right thing' so you will have no guilt$ ;ig ;iglar

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  T0E E<D

  T0A<1(6