What is good/bad ethics

Taking personal responsibility for economic and ethical performance of corporations -

Business Ethics Articles - impact of corporate governance scandals on business ethics
debate
Failure in business ethics is a real threat to the future of every corporation. business ethics
as an issue is a hundred times more powerful than the internet or globalisation and can
destroy your business in a week. To make matters worse, standards of business ethics are
changing rapidly in response to random events which capture public imagination. In
business ethics, what was good is becoming bad and what was considered bad is now
good. Standards for business ethics that have worked for decades are looking old
fashioned or immoral while other practices that raised questions are becoming totally
acceptable.
So what is going to happen next in business ethics? How can corporations use business
ethics to restore confidence and protect themselves against tomorrow's headlines? What
will be the new "Gold Standard" for business ethics and corporate governance? How
much further than legal minimum requirements for business ethics should corporations
go to ensure sustainable success?
* When business ethics goes wrong who gets blamed?, * Impact of media allegations of
dishonesty, fraud or corruption of senior executives or directors - and how to protect
business ethics reputation , * Why goalposts for business ethics will go on changing, and
how to get ready, * Urgent need for all business ethics to be whiter than white, with
unquestionable corporate governance and risk management, * Ensuring business ethics
compliance - board duties of care and responsibility in the future?, * Defining clear areas
of business ethics responsibility of boards and directors, * Using business ethics to
balancing interests of different constituencies and stakeholders, * Why we have to
separate board scrutiny role from management power, * Ethical / society responsibilities
of directors and large investor "owners" , * Independence of audit, nomination and
remuneration committees?, * "Duty of curiosity" by directors to ask very awkward and
sensitive questions, * Improving quality and flow of information within a corporation's
governing structure
WHY WE GOT IN SUCH A MESS, Free market ideology was that corporations were
kept responsible to customers, shareholders, workers and society by customer and
investor behaviour, seen in share price. Millions of individual "voters" in the market
place ensured they behaved. "Bad" corporations were punished by selling. "Good"
corporations" were rewarded by buying. "Market forces will sort it all out". This ideology
weakened the idea of business ethics and accountability.
WHY WE STILL CAN'T TRUST THE NUMBERS, * Conflicts of interest remain in all
audits even where consulting links are abolished, - Concerns that some auditors are
looking for jobs in the companies they audit, - Auditors under pressure to get next year's
audit business , - Old accounting standards do not always give fullest picture, -
Globalisation and e-technology are making reliable audits extremely difficult
EXPECT MORE CONFLICTS OF INTEREST AMONG GLOBAL AUDITORS,
Consolidation at top end of professional service organisations means global players are
running out of firms to approach to provide independent advice over large complex deals,
* Conflicts of interest are growing rapidly - made worse by the collapse of Arthur
Andersen, with companies in danger of representing the interests of more than one party ,
* Expect future accusations of breaks in "Chinese walls"
TRUST TAKES YEARS TO WIN AND HOURS TO LOSE, System of business ethics
must win trust of the international community, * Steps to rebuilding trust in the
corporation, - T ransparent - totally open, going beyond current requirements or
expectations, - R esponsible - clearly acting in the broader and longer term interests of
all, - U ncompromising - total commitment to highest moral positions, - S uccessful -
great results combining excellence in all areas with strong values, - T emperate - taking
care to avoid major risks, wild decisions and extravagance
CEO CONFLICTS OF INTEREST MUST BE DEALT WITH, * Making decisions that
benefit the CEO at expense of the future of the company, made worse by the large stock
options given and other triggered incentives, , * Hiding how much the CEO takes - non-
recording of stock options as an expense, overly-complex complex reporting
ACCOUNTABILITY CONFLICTS FOR STAFF, The fundamental issue at the heart of
many recent scandals, * "I did what I was told" - , * So who do you serve? Your boss?
The boss of the boss? CEO? Board? Shareholders? Customers interests? General public?
Courts of law? Your own conscience?, * Extreme pressures on employees to toe the
official line, * Harassment and threats by people representing huge power
HOW CONSULTANTS AND ADVISERS GET COMPROMISED, Who is the
consultant or adviser accountable to if things are discovered?, * To the individual who set
up the arrangement and is asking for the advice (who may be part of the problem)? His or
her boss? The CEO? The board? The shareholders? The government? Consumers? The
public? Who do you tell and when?, * What are the limits of confidentiality in
consultancy?
, HOW THE MEDIA CAN BE COMPROMISED, * Media investigation should be a
powerful corrective force, exposing wrong-doing, but media depends on advertising.
Dangers of alienating big funders of media companies., * Media is also sensitive to news
manipulation and lobbying, including benefits for journalists writing stories, * Need for
transparency - declaring interests of journalists and editorial team including those of the
owner(s)
HOW GOVERNMENT CAN BE COMPROMISED, * Lobbying budget in US greater
than GDP of 57 nations, * Over 100 lobbyists per Member of Congress, * $5bn a year
industry designed to create new laws or regulations, change existing ones, limit corporate
liability, create barriers to entry for competitors, change who gets elected, * Potential for
corrupting the democratic purpose, * US Government shell-outs to business are worth
more than $300bn a year, * Selective tax breaks, trade policies and spending programmes
are all sensitive areas, * Risk of corruption and danger of distorting free market
HOW CORPORATIONS CAN OUT-GUN GOVERNMENT LAWYERS, *
Government will increasingly target corporations as well as individuals with legal action,
* Large corporations have deeper pockets than legal budgets of government, * They often
get better quality representation from huge heavy-weight teams
"SUCCESS PLUS" - Doing great things in the right way, Success itself is being
redefined - fundamental rethink about the purpose of corporations. Corporate
responsibility will be far more widely interpreted. REAL SUCCESS will be everything
we have previously taken for granted in high performing companies PLUS the highest
ethical standards in all areas.
BUILDING A BETTER WORLD - core value and universal slogan , Corporations will
be expected in future to "build a better future" - not only for their shareholders but also
for their customers, workers, business partners, community, nation and the wider world.
Those with effective business ethics based on this core value will have an added
competitive advantage: attracting and retaining talent and generating positive reactions in
the marketplace.,
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company directors pay, ethical fund investors. Social values of people have been
changed, as people are generally educated compared to the past. The increasing amount
of pollution and exploitation that exist in the daily life affect quality of life. Their
consuming patterns are transforming dramatically due to pollution alertness. As the
result, business culture is challenged by this alteration. The main worry that is hoisted by
the society is the relationship of businesses with environment which is social
responsibility. A term entitled sustainable development has been created. According to
World Commission on Economic Development (Bansal, 2001), sustainable development
is the merging of the needs of the present and the future. This essay will argue businesses
are growing increasingly aware of the social responsibility and that a business can still be
environmentally responsible and make profits in the same time.
Facing crisis of resources depletion, businesses are becoming more aware of social and
environmental responsibility. This can be observed with the execution of sustainable
development frameworks by businesses at different level.
Business awareness of social responsibilities can be evaluated through their different
levels of commitments. Hierarchy of ethical behavior (Raiborn and Payne, 2001)
demonstrates intensity of business participation in the sustainable development that is
broken into four core levels attainments: basic, currently attainable, practical and
theoretical levels. Each level is gradually more concern with sustainable development
than the previous levels.
At the basic level, businesses accomplish minimal ethically acceptable behaviors which
only fulfill legal responsibility which is necessitated by laws. Money spent on
environmentalism is viewed as a cost as an investment. (Raiborn and Payne, 2001)
Businesses discern at currently attainable level would accomplish activities above legally
mandated and focus on the public image of "environmentally friendly". By doing
sustainable development, they thirst for certain short-term benefits, such as cost
diminution, revenue enhancement and reputation improvement. (Raiborn and Payne,
2001)
Followed by current attainable level is practical level which is slightly different from
current attainable degree. Businesses identify the need for environmentally friend
products and production methods. They are motivated by a true concern of the
environment. (Raiborn and Payne, 2001)
Last, the highest ethical behavior order is theoretical level that is an arduous task to
accomplish. Businesses regard sustainable development as a fundamental part of their
business strategy and core values. They are motivated by the long run environment
protection and cost efficient. (Raiborn and Payne, 2001)
Practical and theoretical levels truly assist sustainable development, as they are honestly
concern with the environment. They are not unfeasible to achieve. Body Shop is a
business manifestation contributes in practical level. They sell no animal testing products
which is favorable in market that turns environmentalism into profit. (Raiborn and Payne,
2001) In addition, BMW obligate sustainable development to core commission that
deliver an inventive scheme of product takeback activities to protect environment by
reducing physical wastes and recycling components. The company spotlights on the
future constraints that need of sustainable development to win competitors regardless
development of leading position. That is a proactive example of business operating at
theoretical level assist in building market advantage and leadership position in
automobile disassembly. (Day, 1998)
Businesses can still be environmentally responsible and make profits in the same time
through the adoption of various sustainable development approaches. The main driving
factor for firm fulfills sustainable development is profit-generating. The benefits
associated with sustainable development are lower risk, building competitive advantage
and stakeholder dedication. (Bansal, 2001)
The rewards combined with sustainable development can be divided into short-term and
long term benefits. In short term, company bestead lessen risk and lower production cost.
Firms can lessen risk in short term by complying law and regulations. Through carried
out legislative responsibility, they can avert government monetary punishments on non-
compliance. MacMillian is outstanding evidence shifting its environmental awareness
results in earning benefits. Being criticized by consumers and government in the past,
they adjusted focus on the long-term benefits by replacing cut-off trees with establishing
tree plantations. The cost of operation fell by ten percent due to plantation measure.
(Bansal, 2001)
Taking sustainable development organization will benefit from increasing productivity
from lower production cost and enhancing efficient allocation of resources in short term
financial advantage. (Bansal, 2001) 3M's Pollution Prevention Pays program is the first
successful example which was presented by Bansal (2001). It adopted strategies that
create many different ideas to decrease its production cost and to improve pollution level.
He also mentioned that 3M did not make losses for preventing pollution and as it
minimized cost at the same time. Gradually, low production cost and efficient allocation
of resources will develop competitive advantages for the firm that company will avail in
long term benefits.
Companies in long term will engage internal reward with adopting sustainable
development. As goodwill is built due to adopting sustainable development, the
psychological needs of employees is improved caused lower absenteeism, reduced labor
turnover and easier recruitment. The various advantages discussed above, business can
acquire advantages from different dimensions. (Bansal, 2001)
Two paths suggested by Bansal (2001), business can balance social responsibility and
profit making process by implementing practical and theoretical behaviors; they are
product stewardship and process improvement.
Firm implement product stewardship would involve both short-term and long-term
benefits, for instance, better goodwill and high profit generation; however, it is the most
risky approach. Product stewardship involves building process efficiency and product
enhancement (Day 1998).
Process efficiency provides short-term benefits to firm that operation cost will reduce due
to waste reduction. Product enhancement focuses on the long-term benefit that helps in
extending product durability and service intensity can maintain sustainable development.
(Day 1998) These tasks are complex to achieve because it involved with large capital.
Xerox is an example of product enhancement that recommended the method of recycling
products. This company used materials which could be reused and recycled therefore it
concentrated on the product design and the process improvement. The purpose of its
action was to expand the life of products for environmental protection (Bansal, 2001).
Moreover, social responsibility can be implementing through more environmentally and
socially process improvement which lead to increase customer support. Starbucks case
illustrated by Bansal (2001) is a significant model of improvements in manufacturing
processes. It advocates fair trade policy to protect coffee producers getting a fair price for
harvests. It is an example of theoretical behavior too. In addition to protection coffee
farmers' right, the action done by Starbucks have the positive outcome to the coffee
industry. The action helps them build the competitive advantages over their competitor
which led to tough market positioning.
To conclude, businesses are typically motivated by profit arising from the operating
process. Their ethical behaviors are directly connected to future environmental
developments behaviors. With sense of recognition trend of sustainable development,
companies are more aware social and environmental development than the past through
observed daily practice. It is a tough task for small business to achieve sustainable
development; I recommend small firms can move their ethical behaviors along with their
business growth by centralizing the short term vision to long term vision. Although
taking these responsibilities may sound stressful, actually profit could still be made. The
examples of 3M, Xerox and MacMillan Bloedel have proven that just using appropriate
strategies could protect the environment and get revenues. Thus, all businesses should
always concern about and fulfill their social responsibilities

Corporate Social Responsibility or CSR covers all aspects of corporate governance. It

includes information on how companies conduct their business in an ethical way, taking
account of their impact economically, socially, and environmentally. CSR includes
relationships with employees and customers. Increasingly companies have to take
account of how their actions impact on society. Branding or creating an image has
become an important way to add value but it also bring scrutiny to the forefront.
The role of HR in an overseas operation would be to ensure CSR is embedded in an
organization’s culture to make a change to actions and attitudes, and the support of the
top team is critical to success. HR is also responsible for the key systems and processes
involved with delivery of the CSR program. Through HR, CSR can be given credibility
and aligned with how businesses run. CSR could be integrated into processes such as the
employer brand, recruitment, appraisal, retention, motivation, reward, internal
communications, diversity, coaching and training.
Corporate social responsibility is not solely about doing the right thing, but it also offers
direct business benefits. Having a reputation as a responsible business places a halo over
organizations, because many consumers prefer to buy from ethical businesses (i.e.:
business to business, business to supplier, business to customer). Moreover, a good
reputation makes it easier to recruit good employees as well as reduces the risk of sudden
damage to reputations and sales.
In my opinion, corporate social responsibility is some instances can reflect an oxymoron,
because the central concept and duty of corporations is to maximize shareholder wealth –
sometimes in disregard to consumers’ well-being. According to Martin (2002), “the
interests of shareholders and those of the larger community are not always opposed, of
course. Corporations often willingly engage in socially responsible behavior precisely
because it enhances shareholder value. They choose to undertake philanthropic activities
such as supporting local museums or soup kitchens because management believes such
activities create goodwill among customers in excess of their price tag.” Thus, many
corporations practice social responsibility. For example, the NBA with their commitment
to feeding the hungry and other charities is a prime example of a mega-corporation
getting involved and taking social responsibility.
I researched the CSR information for two organizations, Dynacare Laboratories and
Medical Diagnostic Laboratories (LapCorp) , LLC. LabCorp’s website presented limited
information but the following statement,As LabCorp continues to experience steady
positive growth and build upon its industry leading scientific expertise, we remain
committed to the sound principles of corporate governance. Our corporate governance
standards not only dictate our internal conduct they also guide our external business
practices with customers, shareholders, scientific partners, as well as other companies
within our industry. LabCorp is committed to building upon its history of corporate
integrity, and the highest standards of honesty and reliable business conduct. At LabCorp
we work to nurture an ethical culture within our company and maintain a workforce that
firmly embraces our company Standards of Business Conduct. Dynacare has several
documents laying out their CSR approach, of those the most interesting was their
“VALUES”. Is Good Ethics Good Business?
While it might seem difficult for a business to practice good ethical conduct and still be
successful, consumer advocates for good ethical business practice have established that
the successful business is a "good business"ﾝ founded on good ethics. In considering the
pros and cons of good ethics within the business place, it is imperative to understand; 1)
what good ethical practice is, 2) how good ethical practice relates to good business
practice, and 3) what the distinction is between good ethics and bad ethics in relation to
business practices.
Good ethical practice is the process of consistently behaving in a manner that is
beneficial to all people. The concept differs from good moral practice, in that it begins
with notably high moral values, yet extends beyond personal characteristics and immoral
consequences. To express ethical integrity, one must question the reasoning of a
situation, rather than the right or wrong of it. These beneficial considerations guide the
person to a discerned understanding, rather than simply accepting the customary codes.
Arriving at a virtuous ethical decision requires the individual to examine choices that are
good for all people. Conversely, bad ethical thought processes are likely to occur when
individuals are aware of the traditional moral codes; however, they feel that superior
benefits are somehow deserving to them. This selfish disregard of the good of all people
leads to a type of corrupt ethical reasoning. The result is a perfusion of infectious
thinking.
The relation between good ethical practice and good business practice follows suit.
Ideally, individuals within the company transfer a good ethical thought process to action,
since these individuals cannot disconnect their personal ethics from their organizational
ethics (5). It is essential, however, to establish good ethical practice as the foundation of
good business rather than merely an application. Furthermore, good business practice
encompasses the idea that the enterprise is a member of a business society and the
surrounding community expressing concern for the well being of others. When a
company believes that they are a part of the "big picture"ﾝ or a part of the "family"ﾝ of
other businesses, they are more likely to feel responsible for the care of the "big picture"ﾝ
or "family"ﾝ (39). Although a solid foundation and a belief in community values support
good business practice, the difficulty arises when a situation presented requires decisions
to be selected from alternatives that are neither entirely right nor entirely wrong. These
types of decisions require the organization to revert to considering the good of all people
and accepting a decision that is made to the best of their ability.
The distinction between good and bad ethical practices within the business environment
is not always clear. While ethical business practices usually directly effect the bottom
line, bad business practice may not always be financially detrimental to the company
(43). Hopefully, most disrespecting organizations find that bad business ethics are much
more damaging than a badly run business. In Moral Issues in Business, "The Three C's of
Business Ethics"ﾝ epitomizes the distinction between good and bad ethics within business
practice. These ethical considerations include 1) compliance of rules, laws and policies,
and the customs of the society, 2) the contributions that can be made to society through
the business, and 3) the consequences of the business activity (37). Organizations that do
not apply good business practice such as the "Three C's"ﾝ will ordinarily be unsuccessful
in building a trusting clientele. Consequently, business ethics can be strong preventative
medicine.
Regardless if the consumer of a business is a government entity, a hospital, a corner
market or an elderly woman, and regardless if the commodity is a service or a product,
these customers are advocates of good business practices. This has been shown
throughout history as countless regulations and standards are regularly developed to
protect consumers from unethical business practice. The business that establishes its
foundations on ethical grounds is likely to promote consumer convicThere are several
factors that shape diversity in my workplace.

Diversity can be a beneficial attribute or can cause dilemmas in the workplace. At This
‘n’ That all the various factors of diversity are present, embraced and accepted. All of our
staff at This ‘n’ That has value for one another and are seen as equals. This allows for
unproblematic diversity in our workplace. The main factors that create diversity in my
workplace are age, race, and religion. My organization has employees from the age of 19
years old to the oldest of 67 years. I have yet to see that gap in age cause any conflict, if
anything the age difference allows for constructive criticism and encourages growth as an
organization. Race and religion allow for different view points which help form our
workplace in an optimistic way. Diversity is about learning from others who are different
(Schmidle, 2009). Diversity is dignity and respect for all, and about establishing settings
and practices that encourage learning from others and capture the advantage of diverse
perspectivestion and likewise find success.

Contents
Business Ethics compared in three countries: U.S.A., Hong Kong, and Russia.
1.Introduction
2.Issues
3.Importance of issues
4.Advantages/disadvantages of the presence or lack of business ethics
5.Safety, ethics, welfare
6.Comparison of ethical business in several countries
7.Conclusion--Which country is the leader of business ethics
Three Main Issues:
1.What is the current knowledge and participation of each country of business ethics?
2.How do the countries use business ethics to their advantage?
3.What is the International Code of Ethics?
A Code of Ethics is a business or an organization's policy applicable to all its activities
and relationships. It should identify principal responsibilities its stockholders,
shareholders, employees and communities. Its main function is to provide guidance in
cases of moral dilemmas. Many corporations have implemented codes of conduct that
define unacceptable behavior and serve as a guideline for the practice of ethical conduct.
This is a step in the right direction, but it is not enough for an organization merely to have
written codes of ethics. Many business organizations are also taking a more proactive
position in the area of promoting the practice of ethical behavior. To reinforce the
organization's values and standards, ethics training programs should be held on a regular
basis rather than being a one-shot deal. Business ethics should be practiced in every
country around the world. The United States, Hong Kong and Russia are several
countries that will be mentioned that practice business ethics.
In The United States, business ethics is a topic that businesses are becoming more aware
of. An article in USA Today Magazine in January 1998,states, "Companies are
discovering the value of ethics". The discussion of ethics in the business world goes hand
and hand with the term, profit. It was thought that the more ethical a business is, the less
profitable it is; the more profitable, the less ethical. In recent times, there is a positive
relation between ethics and profit. Ethics serves as a foundation for the success of
businesses. An ethical company provides a moneymaking opportunity and can be the
source of a competitive advantage.
Employee and customer theft is a major problem for businesses, as a shrinking on the job
and declining work ethic. A culture in which drug abuse certainly does not help minimize
the problem of theft, businesses are ultimately forced to administer drug-screening tests.
The expenses for the drug tests incur great costs for the businesses. Employees with the
right values would not need to take the drug testing, thus the company would save
money. Consequently, employers will try to hire employees who statistically are more
likely to be honest. Ethical behavior is like a virtuous cycle between the customers,
employees, and suppliers. As a company builds trust, customers, employees and suppliers
are less likely to act immorally. Another benefit of ethical behavior is that it provides a
solution to what theorists call "collective action problems". A way to tackle the problem
is to provide incentive so that the cost-benefit ratio is reversed. In certain situations,
production of goods or services requires a team effort so that the individual contribution
of each team member cannot be isolated or measured. Any team member who acts in a
purely self-interested manner would free ride off the others. The benefits of group
activity are optimized only when free riding does not take place. When team members or
work associates are bounded by trust and respect a common value will be present.
Another benefit of ethical behavior is that it preserves the social capital that makes a free
market possible. A market coexists with many other institutions in society, including: the
family, the church, and the political, criminal justice, and educational systems. Each of
these institutions contributes toward making capitalism possible: The court system
enforces contracts; the political system provides monetary stability; and the educational
system trains future employees and prepares them for the workforce. Corporate
misconduct raises the cost and reduces the amount of social capital. The more
businesspeople try to avoid the terms of their agreement, the greater the number of
disputes that end up in court. Increased government activity adds to the cost of
government. A market system needs moral capital as well. If capitalism is to be
successful, there must be a widespread acceptance of certain moral norms, such as truth
telling, and fair play. "As more and more people abandon these moral forms, the social
capital that makes market activity possible, is depleted", as stated by Norman Bowie.
Bowie also states, "America is obsessed with quarterly reports -one that forces managers
to focus on the short run, rather than the long run." If corporations took the moral point of
view, they would focus on meeting the needs of their stakeholders and focus on providing
secure work for their employees and quality products for customers. If this were done,
profits would follow. American capital differs from the capitalism in other countries.
Ethical behavior can lower costs, increase productivity, and preserve the social capital
that makes capitalism possible. It is in the nations' interest to ensure that American
capitalism is a leader in ethics as well as in product development. To help promote
mutual understanding between the people of Hong Kong and foreign countries, as well as
the development of business relationship, several major foreign countries have
established their own chamber of commerce. "More recently, the ICAC and six chambers
of commerce joined hands to boost corporate education as a way of increasing awareness
of ethics in business." The result was the founding of the Hong Kong Ethics
Development Center in 1994.
Among those foreign chambers of commerce, the American Chamber of Commerce has
been playing an active role in promoting worker welfare and safety, and business ethics.
The American Chamber of Commerce was an active participant in the establishment of
the Hong Kong Ethics Development Center. "The American Chamber of Commerce is
the only foreign chamber of commerce which incorporates the codes of conduct as part of
their position paper." Although the basis brief of Hong Kong Independent Commissions
Against Corruption (ICAC) is to fight corruption, it also helps firms devise codes of
ethics. To those international firms with an attempt to set up their Codes of Conduct in
Hong Kong, the ICAC provides some advice regarding the basic concepts and contents.
Honesty, integrity and social responsibility must be included in the Codes of Conduct.
A study surveyed 197 second-year students who attended an international business course
in an institution in Hong Kong, both at the beginning and the end of the term. Active
learning about business ethics displayed significant effects on later ethical reasoning and
judgment. A proactive finding is that business students learned business ethics to a lesser
extent than did other students. The relative ignorance of business students needs special
concern for enhancing their awareness of business ethics.
Although female students were significantly more ethical in exhibiting judgments than
male students, they learned about business ethics to a lesser extent. Female students
should be of particular concern for promoting their ethical development through business
ethics education.
"Known as an amoral society, Hong Kong tends to be at risk for problems of business
ethics." "A study found that business students in Hong Kong were less ethical toward
customers than Taiwanese and Japanese counterparts." With the help of The American
Chamber of Commerce and the Hong Kong Ethics Development Center, the people of
Hong Kong will be on their way to succeed in becoming a more ethical nation. Perhaps,
the surveys taken in the future will show outstanding results from Hong Kong's ethical
improvements.
The Hong Kong Institute of Land Administration has established their own code of
ethics, which have twelve guidelines, which are as follows:
1.This Code is meant to ensure the professional competence and integrity of all members
in providing their services to the client or the general public.
2.Members should devote their utmost effort to become competent by qualification and
experience to perform services, which they are appointed to take. Furthermore, they have
to constantly update and upgrade themselves in new developments, law and technologies
to cope with the changing demand, practice and procedures, and Government policies.
3.Members have a duty to contribute towards the improvement of professional standards
and the training of their staff as well as any other people interested in the profession
through career development, lectures or running courses, etc.
4.Members shall endeavor to co-operate with other professionals, disciplines and
individuals so as to achieve optimum results in respect of their tasks and assignments.
5.Members should not take part in any business, malpractice or any act of misbehavior,
which may cause an adverse effect on, or damage to the public image and reputation of
the Institute.
6.Members should not get involved in any suspected or known illegal dealings especially
in connection with their profession or duties. They have the obligation to uphold justice
in land administration and in providing their professional services.
7.In the event of any controversies occurred between members of the Institute, the
respective Committees of the Council, or the full Council of the Institute should settle
them either between themselves or without involving any non-member third party,
outside bodies or the public media to safeguard the professional reputation of the
Institute.
8.Members should not publicly criticize their fellow members of the Institute without the
explicit consent given and in a manner approved by the Chairman in Council Meeting.
9.No member shall injure falsely or maliciously, directly or indirectly, the reputation,
prospects or business of other members.
10.Any member charged under the prevailing laws of the Hong Kong Special
Administrative Region (HKSAR) in connection with his/her professional activities or
duties whether or not involving the Institute shall report the occurrence forthwith to the
Institute.
11.Members must disclose to their employers or clients any personal or conflicting
interest involved in the course of performing their duties or assignment. This also covers
any benefit gained from a third party even not in breach of their professional
responsibilities. If they are acting for their company, then any conflicting interest with
other client(s) shall be disclosed to the client.
12.Members must protect the privacy of any data provided by or belonging to their
clients for the sake of professional integrity as well as compliance with the relevant
legislation of the HKSAR.
"Internally, a Code of Ethics conveys to all staff a clear idea of the accepted conduct for
achieving business goals." It also helps maintain consistent standards of behavior
throughout the company. Externally, the Code of Conduct enhances a company's
reputation for fair and responsible dealing. "It also strengthens Hong Kong's reputation as
an international business center where honesty and fair play prevails." An effective Code
of Conduct reduces costs and enhances profits because: it reduces incidents of corruption
fraud and other malpractices, it reduces conflict if interests situations, it enhances the
trust of your customers, suppliers and contractors. It enhances the credibility of your
buyers and salespersons; it enhances the loyalty and goodwill of your employees and
other stakeholders. Individual companies as well as the Hong Kong business community
continue to enjoy a reputation of honesty and fair play. Another country that is practicing
business ethics is Russia. Although many people still view Russia as a corrupt country it
is trying to modernize in the business world as compared to Hong Kong and the United
States.
Corruption has become a way of life for Government officials in Russia. Bribe taking, in
fact, is a widespread practice throughout the Russian bureaucracy. A number of U.S. and
other Western businesses and businessmen routinely pay bribes to Russian Government
officials in order to conduct their businesses in Russia. "Indeed, the most prevalent crime
in Russia today is bribery". "Of those charged with bribery and corruption in Russia in
1993, over forty-two percent were Government officials and over twenty-five percent
were law enforcement officers". Not only do Russian officials routinely accept and even
demand bribes, they have also entered into an illicit partnership with organized crime and
with clandestine business groups. "Former Communist apparatchiks, who continue to
work within the Russian bureaucracy, exploit previously made black-marketers
relationships to profit in the new post-Revolutionary Russian system."
Not only does the Mafia kill and steal in Russia, it does so in the United States as well.
"The Russian Mafia is increasingly engaged in crime in the West." Mafia members are
involved in "theft, extortion, money-laundering, gun-trafficking, drug running,
prostitution, smuggling, loan sharking, contract killing and more. The U.S. Department of
Justice (DOJ) has established task forces to deal with the Russian Mafia in New York,
Los Angeles, and Miami. Thus, U.S. businesses that pay bribes and protection money in
Russia may be unintentionally financing Russian criminal activity back in the United
States. "Bribe-taking is standard practice among Russian Government officials, a fact of
which the Yeltsin Administration is well aware." In 1994, the Yeltsin Government
reported that seventy to eighty percent of private businesses were paying extortion money
to organized criminal gangs. Eighty percent of all U.S. businesses in Russia have bribed a
Russian government official at least once. It is not uncommon for businesses in Russia to
employ assassins in the collection of business debts. " In 1993, organized crime
controlled forty percent of the turnover in goods and services in Russia, according to the
Russian Ministry of Internal Affairs." Moreover, the growth of organized crime has
severely hampered the growth of private small businesses in the Country. The success of
Russian democracy represents a fundamental pillar of U.S. foreign policy. The U.S.
Government spends millions of U.S. tax dollars to promote democratic and market,
economic reforms in Russia. Meanwhile, U.S. businesses and businessmen who pay
bribes to Russian Government officials may be unwitting supporters of organized crime
in Russia. More importantly, bribery of Russian Government officials undercuts efforts to
create an open and democratic government in Russia. On the brighter side the Russian
Government is taking action to control the ethical standards of the country.
On November 8, 2000, the first Center for Business Ethics (CBE) in Russia was officially
registered in St. Petersburg. The new Center evolved out of the private sector voluntary
initiative, the "Declaration of Integrity in Business Conduct in St. Petersburg", supported
by over 130 leading companies in the community.
"The Center for Business Ethics has two founding partners: a US company "Sovereign
Ventures, Inc." and a Russian firm "Bronze Lion". The main counterpart of CBE is the
Ethics Resource Center (ERC), headquartered in Washington DC, with over 50 years
experience specializing in consulting businesses on corporate culture." The mission of the
newborn organization is to institutionalize ethical business in St. Petersburg. CBE
provides an anti-corruption toolbox for businesses from ever industry operating in the
region. Members of the new Center can obtain the following services: assistance in
development a company's code of conduct, advice on the effective ways of repudiation of
bribery, hints on fair tax payment, development of ethics training programs for
employees, publicity for ethical leadership, raising issues connected with business ethics
a given industry branch. They can also network with other ethical businesses and thereby
find natural partners for growth.
"The Center for Business Ethics is a response to demand from local and government
business leaders who founded the "Declaration of Integrity" for a non-profit organization
that could sustain a variety of new programs designed to create a culture of ethics
compliance in St. Petersburg." - says Matthew Murray, President of "Sovereign Ventures,
Inc.", who will also serve as the first President of the Board of CBE.
The team of business ethics experts working for the Center consists of several Russian
attorneys, a senior accountant and a journalist. They have been professionally trained by
in the US at the Ethics Resource Center or other organizations in international practices
of business ethics. The 6 experts include: Anna Ossipova (director), Anton Andreyev
(ethics consultant), Elena Fedyushina (ethics consultant), Alina Mitzkevich (ethics
consultant), Natalya Clark (PR manager), Oksana Trofimova (senior accountant). The
first project launched by the Center for Business Ethics is an "Island of Integrity"
designed to promote open tenders in the construction business and attract further
investment to St. Petersburg. "It has been less than one week since our Center was
opened, and the Open Society (Soros) Foundation has offered CBE a grant for the "Island
of Integrity". - Announced Anna Ossipova, Director of CBE- "It shows that the
momentum behind voluntary initiatives to undertake honest business is growing".
The Saint Petersburg Ethics Center proposed the development of the St. Petersburg
Ethics Center (SPEC). The organization's mission will be to help cultivate the social
capital or core values. SPEC will create the institutional framework to ensure
sustainability of business ethics initiatives in the city. It will locally develop and retain
important skills and capacities. The organization will serve as the legal framework to
raise local and international funds in support of its programs. It will become a resource
for the community at large, and the champion of the ethics dialogue in St. Petersburg.
Specifically, SPEC will initially undertake a variety of proactive business ethics and anti-
corruption initiatives and programs such as: Promoting the declaration of integrity;
providing training, education and technical assistance; fostering dialogue about ethics
education at the university and professional levels; assisting professional and trade
associations to develop codes of conduct, ethics programs and enforcement infrastructure
for their membership. Other programs include: increasing awareness about corruption
and the strategies to fight it; identifying concrete steps to encourage public-sector reform
and conduct research and generate new learning. "The new learning generated through
these activities will then inform the work of SPEC through the creation of culturally
relevant approaches and strategies for the other programs of the organization."
Government corruption in Russia is a historical burden on economic and political
modernization. Russia must find its own path to root out corruption, using the multitude
of positive values and ethical traditions found in Russian culture. They are beginning a
long-term process to integrate their strong moral traditions with international standards of
business ethics. The present project is designed to sustain these accomplishments by
developing and launching SPEC to institutionalize ethical business practices between
businesses and government officials in ST. Petersburg and other regions of Russia