Corporate Ethics - 1

8/8/2019 Corporate Ethics - 1

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Corporate Ethics: The Moral element

of business


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Corporate Ethics

Based on principles of integrity andfairness

Focuses on - Stakeholders, and employees.

Quality of product and services

Customer satisfaction. Community and environment


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Corporate Ethics are implemented

to-

Define the framework of the acceptablebehavior.

Follow high standards of practice.

Create benchmarks for self evaluation.

Enhance sense of community.

Create transparency in the businessactivities.

Foster higher standards of businessethics.

Comply with government laws and norms.


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Who is responsible for ethicsin the company?

Everyone


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An ethical problem cant be resolved

unless its first recognized as a

dilemma

Reward or punishment toethical integrity and moralcourage decide the act of

an individual


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Corporate ethics: The global

perspective

Study by Columbia University 1990

Half of 1,000 business executives

admitted being rewarded for takingaction on the job that theyconsidered unethical.

One in three reported that refusingto take unethical action resulted inpenalties.


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The inferences

Overemphasis on immediate gains cancascade down the organization.

Sending message to staff to generate

cash flow, supersedes all other objectives,including personal integrity.

This message carries more weight thanofficial proclamations of values, andcodes of ethics

Corporate directors need to minimize acompanys ethical liabilities and maximizeits ethical assets


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How to maximize the ethical assets?

Recognizing the companys need tomanage corporate ethics

The dangers of taking it for granted. Supporting management to prevent

or protect against unethicalactivities

Developing strategies to raise theethical standard in the organization.

Build trust as a competitive lead.


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Approaches to Bring a Code of

Corporate Ethics to Life

Emphasize values, in creating the code ofcorporate ethics supported by rules.

Employees should be Educated about thecorporate ethics code to make it relevant andreal.

Reinforce the code within and beyond theorganization.

Encourage employees to become activeparticipants in upholding the corporate. ethics

code and its values. Gather feedback, measure effectiveness and

continually improve the code of conduct.


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Corporate ethics: the Indian

Perspective

Indian business culture puts a premiumon favors, friendship and clanship.

Friendship is highly valued, whetherbased on multigenerational familyfriendships, school friendships or personalfriendships.

The Western concept of conflict of interest

does not always mesh well with theIndian value of loyalty.


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Case: Infosys Technologies

Have a distinctive work culture and valuesystem.

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 itcomes to communication and informationsharing


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Does Satyams story tell the myth

and reality of Indian corporate

ethics?


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Corporate Ethics: Individuals

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.


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Ethics in Curriculum


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USA teaches ethics or corporateethics!

Ethics or business ethicsshould

be made compulsory forall students.


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Corporate ethics: Management

perspective

What is included incorporate ethics?

Purpose of theBusiness

People

Society

Government Environment

Factors to be keptin mind

Involvement ofThe SeniorManagement

Involvement ofThe Employee

Picking The WellTested Model


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Management of ethics; an important

function of the board

Accountable for corruption or improprietyin a company.

Boards decisions on resource allocation,performance targets or promotionsalways trump official statements of ethicalvalues.

Whistleblowers are to be given protection

Influence the pressures which the CEOshandle in managing ethics


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Principals for ethically run Business

Principle 1 Productivity Is Much More ImportantThan Profitability

Principle 2 The Customer Is Not Sheep That CanBe Sheared

Principle 3 The Buyer's Domain Is MoreImportant Than the Middlemen's Domain

Principle 4 Be Diplomatic With Your Competitors


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Thank you for listening Patiently

Corporate Ethics - 1

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