Improving Ethical Behaviour
Improving Ethical Behaviour
Improving Ethical Behaviour
ETHICAL
BEHAVIOUR
GROUP 2
Content
• Ethics- A definition
• Examples of Unethical Behaviour
• Corporate Governance
• How to deal with ethical issues
• Best practices
• Ethics in decision making
• Rules for ethical decision making
• Corporate social responsibility and citizenship
• Benefits of corporate citizenship
• Summary
• References
Improving Ethical Behaviour 2
Ethics- A definition
WorldCom
• The largest financial fraud in U.S.
history
• Overstated its income by more
than $9 billion
• CEO was granted $400 million in
loans with the approval of BOD
• Forced into bankruptcy
Enron
• Grew to be one of the largest
companies in U.S. in 15 years
• Involved in a huge accounting
scandal
• Largest Chapter 11 bankruptcy
filings in U.S. history
• Deceptive accounting practices,
employees lost retirement
savings, while executives
received multimillion-dollar
bonuses
Ethics training
• involve the discussion and analysis of ethical dilemmas
• helpful in providing employees with the tools to make the right decisions
Whistle blowing
• Common method for detection of occupational fraud is employee tips
• Employee’s disclosure to the media or government of a company’s un- ethical
activities
Hewlett-Packard
• Recognized internationally for its out-
standing corporate governance and ethics
• Set high ethical standards to which
employees are expected to adhere
• Honesty in communicating within the
company
• Responsibility for words and actions
• Compassion in relationships with our
employees
• Citizenship in observance of all the laws
Starbucks
• Committed to 100% sustainably sourced
coffee
• C.A.F.E. (Coffee and Farmer Equity Practices)
• Quality, Economic transparency, Social
responsibility, and Environmental leadership
• Uses third parties to verify that its sourcing
is ethical
• Now recognized as the industry standard for
ethical sourcing
• Shining example for North America’s coffee
industry
Relevance of and
Ethics are your ethical issue in the
personal standards of Cognitive process eyes of individual,
right and wrong work group,
organisation
• Utilitarian rule
• Moral rights rule
• Justice rule
• Practical rule
Firms will adhere to fair selling tactics, produce quality products, and price their
products fairly. They will obey laws regarding business practices.
Environmental impact
• Firms ensure that their impact on the environment is at a minimum
• using environmentally sound manufacturing processes
• producing products that do not damage the environment
In the business setting, ethics are the standards of moral values and conduct that
govern decisions made and actions carried out in the work environment. Ethics in an
organisation cannot be ignored or put back. Companies can enhance their ethical
behaviour both internally and externally. Corporate governance can help in creating
standards and providing training. CSR can facilitate organisations to look forward to
various issues and impacts related to ethical behaviour. Ethics can also improve decision
making abilities using effective ethical rules. Companies are realizing that in order to
achieve sustainability, they must become more socially aware and ethically conscious in
the business climate.