Ethic and Governance

1. What is ethic? moral ethic? in business?

1. What is ethical in business?

3. Ethical Governance what issues can be included ?

4. Presentation of an Ethical Pattern

5. Analyse of case study (all together)

6. Proposition of situations to apply the ethical pattern (group)

WHY AN ETHICAL PATTERN?E T H I C

M A S T E R Y

M O R A L

Purpose = Discussion and Decision.

Different scales from « I » ( individual) « you » ( the other one in front of me) to « all together » (collectif, as the company, the group…)

Prudence = Company continual improvement goal

Necessary for groups and organisation deliberation and decision making.

Internal to external OR external to internal obligations

3 

Ethic and Moral Life

Reflexion Influence

Ethic in Work and Business

Wider World

+

the aim : to determine better for yourself what

is ethical and what is unethical.

What is ethical anyhow?

There is no absolute rule of

what is ethical and what isn't.

'fair' to fair-minded people,

especially those

affected by the

situation

Ethic in business

5 

For you regarding

your internal Values

For company regarding Society

expectations

Be profitable

Be a good global corporate citizen

Be ethicalObey the law

Do what is required by global capitalism

Do what is expected by global stakeholders Do what is required

by global stakeholders

Do what is desiredby global stakeholders

Be a good citizen or organisation !

Organisations

Meanings

Leaders / ManagersEmployee

EthicsBribes

Whistle-blowing

Conflicts of loyalty

Conflicts of

interest

Ethic everywh

ere in business

Issues of honesty and integrity - Company values

Issues of honesty and integrity - Company values

• Warren Buffet once told a group of business students : “I cannot tell you that honesty is the best policy. I can’t tell you that if you behave with perfect honesty and integrity somebody somewhere won’t behave the other way and make more money. But honesty is a good policy. You’ll do fine, you’ll sleep well at night and you’ll feel good about the example you are setting for your coworkers

and the other people who care about you.”

• If you work for a company that settles for its employees’ merely obeying the law and following a few internal regulations, you might think about moving on. If you’re being asked to deceive customers about the quality or value of your product, you’re in an ethically unhealthy environment.

Ethic in the business world

• Is it okay to accept a pair of sports tickets from a supplier?

• Can I buy office supplies from my brother-in-law?

• Is it appropriate to donate company funds to my local community center?

• If I find out that a friend is about to be

fired, can I warn her?

• Will I have to lie about the quality of the goods I’m selling?

• Can I take personal e-mails and phone calls at work?

• What do I do if I discover that a coworker is committing fraud?

Bribes or small gifts of appreciation?

• But when is a gift unacceptable?

• When is it really a bribe?

• If it’s okay to give a bottle of wine to a corporate client during the holidays, is it okay to give a case of wine?

• If your company is trying to get a big contract, is it appropriate to send a gift to the key decision maker?

• If it’s all right to invite a business acquaintance to dinner or to a ball game, is it also all right to offer the same person a fully paid weekend getaway?

• There’s often a fine line between a gift and a bribe. The questions that

we’ve just asked, however, may help in drawing it, because they raise key issues in determining how a gesture should be interpreted:

• the cost of the item, the timing of the gift, the type of gift, and the connection between the giver and the receiver.

• If you’re on the receiving end, it’s a good idea to refuse any item that’s overly generous or given for the purpose of influencing a decision. But because accepting even small gifts may violate company rules, the best advice is to check on company policy.

Conflicts of interest

• Conflicts of interest occur when individuals must choose between taking actions that promote their personal interests over the interests of others or taking actions that don’t.

• What should you do? You should probably disclose the connection to your boss, who can then arrange things so that your

personal interests don’t conflict with the company’s.

• In this category insider trading, it’s some not unethical but it’s illegal, and you could go to jail for it.

Conflicts of loyalty - Exemple

• Sometimes you find yourself in a bind between being loyal either to your employer or to a friend or family member.

• Perhaps you just learned that a coworker, a friend of yours, is about to be downsized out of his job. You also happen to know that he and his wife are getting ready to make a deposit on a house near the company headquarters.

• From a work standpoint, you know that you shouldn’t divulge the information. From a friendship standpoint,

though, you feel it’s your duty to tell your friend. Wouldn’t he tell you if the situation were reversed? So what do you do?

• As tempting as it is to be loyal to your friend, you shouldn’t. As an employee, your primary responsibility is to your employer.

• You might be able to soften your dilemma by convincing a manager with the appropriate authority to tell your friend the bad news before he puts down his deposit.

Whistle-blowing

• Whistle-blower is an individual who exposes illegal or unethical behavior in an organization.

Ethical Issues in HR

Ethical Issues in HR

Contracts and job

description

Performance Appraisal

Privacy Issues

Discrimination

Employment Issues

Restructuration

Cash and compensatio

n Plans

Occupational

Health and Safety at workplace

This P4 model is not to be confused with the traditional Four P's of Marketing which is a different thing. For attribution purposes this model was created by Alan Chapman and first published on this website in April 2006.

the character or personality of a good ethical organisation, or manager or leader.

(purity /principles)

(versus profit)

means honesty, uprightness - it's from the

Latin word « probus », meaning good.

(purity /principles)enables the other potentially conflicting aims

to be harmonized so that the mix is

sustainable, ethical and successful

encompasses profit, encouraging

consideration of the various aims

that all businesses must balance

with the need to make a profit.

The Ten Principles of UN Global Compact:Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2: make sure that they are not complicit in human rights abuses.

Labour Standards Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

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My values and morale ?

Third parts values ?

Company Values ?

Identify and clarify the situation

Identify Ethical dilemma

Questions

Be careful!Multiple aspects

Build a positive and ethical choice

Communicate

1 2 3 4 5 6

How to involve services or persons?

Is It Ever OK to Break aPromise?

A story together - Situation Analyse

Make an ethical choice : it’s to be wised !We are expecting from you to propose or to find some feasible solutions and to argument them

The justification of final choice should be presented in a positive manner and you should have anticipate and know the consequences of this choice for the company

Validation have been made by interested parties involved with a transparente impartial process. You should demonstrate reciprocity and exemplarity in it

Proposition of situations to apply the ethical pattern1.I work on a production line. I’ve noticed some defective finished goods. A

machine may be generating some quality problems. I told my superior but she took any measure. I know that the production schedule is very tight. What should I do?

2.My colleague from marketing has shown me a proposal for a body lotion with an extremely thin young model. It’s distasteful in the least and could lead us to accusation of encouraging girls to starve themselves in pursuit of an unhealthy physique. She said I am over-sensitive and everything is ready to launch.

3.Someone told me confidentially that one of ny supplier is under investigation following allegation of forced labour. Th supplier has not me anything during last audit and everything was good. This supplier is far from my market. I have to time to go back for an audit now.

4.I’ve heard that one of our main competitor will be launching a new product shortly that could have serious implications of our sales and marketing strategies. My manager ask me to hire someone to sort through their trash in search of clues and information about this new strategy. I am not sure that I want to do it?

5.I’m been really impressed with the quality of work from a particular supplier. And I want to invest in his company. Is there any conflict of interest with my job?

Proposition of situations to apply the ethical pattern

6.My wife is looking for a job and she will hire by one of our competitor. We don’t speak of work at home. And I don’t want to interfere in my wife’s professionnel life. But some of my colleague has suggested that I am in a compromising situation. What should I do?

7.One of my team is dating his subordinate for a couple of months. They were pretty discret at work but some one found out, rumors are running out of the team. I’m not supposed to know officially. What should I do?

8.I am negotiating an increase in our shelf-space with a customer. My contact is refusing to examine the contrat, arguing that our competitor are « nicer » to him. I have the impression he wants me to give him a gift but he has not asked me for anything specific.

9.I’m setting up a new office. Someone told me to hire a « local consultant » to help get quicker the necessary authorization. But he cost many a lot of money to hire him. What can I do?

10.My ex- manger left the company but we are still friend and he invite me for a dinner. During my visit, I found out that I still have lots fo files from the company. What advise can you give me ?

Proposition of situations to apply the ethical pattern11.I have a blog and often write some stories. I would like to write about what is

happening during my professional trips and events. But I read in the company code of ethic that privacy and data protection are an important part of our business. So can I write about it?

12.I have access to products that I can purchase in our company store. Some of my friends ask me to sell them with no mark-up. Can I sell them at market prices?

13.When I am alone with my manager, he can stop saying jokes about our feminine colleagues. I know he is a nice mam but I am not confortable with poor taste jokes or homophobe / sexistes jokes. What can I do to stop him ?

14.I share the same religious convictions wit a group of my colleagues. During lunch time they invite me to pray with them. What should I do?

15.My direct manger is a woman very strong personality. When things are happening as she wants, she can humiliate people and these affect the morale of the whole team and its performances. What can I do about it?

16.I was visiting one of our small unit which is very profitable and efficient. During the visit I realize that they don’t have any treatment for control or water discharges. When I ask the manager, he told be that he hasn’t get any problem with the local authorities and I am not an environmental expert. What should I do ?

Proposition of situations to apply the ethical pattern17.The hospital at which I volunteer each week is asking everyone to help

recruiting new volunteers, and would like me to get my company more involved. I know that several of my colleagues might be interested. Should I speak to them directly ?

18.As a manager I thing that it is important to develop a real team spirit and to take time to integrate new arrivals. Because my past experiences showed me that quality services are better after . On other hand the new CEO have given strict goals to reach and financial obligations. This semester 2 news guys arrived and the oldest of the team is leaving. What should be my priority?

19. In my team a young mother need to leave earlier even afternoon to pick up her child. She is taking files at home to work at night. The new code of ethic only authorize managers with specific accreditation to keep confidential company data at home. Can I still cover her?

20.After long and difficult negotiation, this new customer accept our contrat. I am very happy and announced it to everyone in the company as it will bring a lot money and increase y bonus. But the day of the signature, my customer discreetly ask me to pay through a min of accounts, using complex combinations. What should I do?

21.I am about to go to maternity leave and I am concerned about what will happen when I come back and my future career opportunities. I heard by my colleague my post may disappear. To who should I speak and what should I say ?