Business Ethics Corporate Governance

BUSINESS ETHICS
&
CORPORATE GOVERNANCE

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AGENDA
• Understanding Ethics
• Managing Business Ethics
• Corporate Social Responsibility
• Complexity of Ethical Issues
• Ethical Leadership
• Evaluation of Corporate Governance
• Internal & External Corporate Governance mechanisms
• Corporate Governance Ratings
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Scams

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Values
• Fundamental beliefs
• Principles for good, right and just
• Evaluate something vis-à-vis a
Standard
• Integrity, Patriotism, Fairness

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Morals
• Values attributing to a system of beliefs • Values derived from a higher authority • Religious system or political system

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Understanding Ethics
• Greek word “ethos” meaning character • Right and wrong conduct
• Studies moral behavior and how one should act
• a set of concepts and principles that guide us in determining what behavior helps or harms others
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Business Ethics
• Study and examination of moral and social responsibility in relation to
- business practices
- decision-making in business

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Ethical Business Practices (1 of 2)

• Investors:
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Ensuring safety of their money and timely payment of interest.

• Employees:
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Provision of fair opportunities in promotions and training, good working environment and timely payment of salaries.

• Customer:
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Complete information of the service and product should be made available.
Personal information of
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Ethical Business Practices (2 of 2)

• Competition:
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Unscrupulous tactics, competitor bashing and wrong methods should be avoided while handling competitors. • Government:
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Rules and regulations regarding taxes, duties, restrictive and monopolistic trade practices and unlawful activities like corruption and bribing should be adhered to.

• Environment:
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Polluting industries should ensure compliance
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Ethical Absolutism
• Certain actions are absolutely right or wrong
• Consequences or intentions are irrelevant • Eg. Stealing
• A principle which never ought to be violated OCS