Professional Documents
Culture Documents
Finaal of Buiseness Ethics
Finaal of Buiseness Ethics
Principles of ethics: Specific boundaries for behavior that are universal and absolute -
-Freedom of speech, civil liberties
Organizational and Global Ethical Culture: Ethical culture describes the component
of corporate culture that captures the values and norms that an organization defines as
appropriate conduct 1: Creates shared values Goal is to 2: Minimize need for enforced
compliance 3: Maximize utilization of principles/ ethical reasoning.
1: Utilitarian approach – moral behavior produces the greatest good for the greatest
number 2:Individualism approach – acts are moral when they promote the individual’s
best long-term interests 3: Moral rights approach – moral decisions are those that best
maintain the rights of those affected, including free consent, life and safety 4: Justice
approach – decisions must be based on standards of equity, fairness, and impartiality;
(esp. important in HR management)
CRITICISM OF MORAL RELATIVISM: 1.A culture thinking something is moral does not
make it moral (slavery) 2. It is not consistent with moral language which tends to be
absolute 3. All cultures tend to believe in universal principles 4. There are no separate
cultures (Bosnia, Somalia, Cambodia) 5.Cultural traditions are bounded by physical
laws (outlawing sex).
Dealing with ethical and cultural relativism: The counter-point to relativism is:
something is wrong since there is a wide variety of other beliefs and values contrary to
the action 1.Basic human Right 2.Virtue Ethics.
2: Justice theory : A Theory of Justice is a 1971 work of political philosophy and ethics
by John Rawls, in which the author addresses the problem of distributive justice (the
socially just distribution of goods in a society
3: rights theory: The concept of rights based ethics is that there are some rights,
both positive and negative, that all humans have based only on the fact that they are
human. ... That is, natural rights are those that are moral while conventional are those
created by humans and reflect society's values.
4: Egoism theory: The concept of rights based ethics is that there are some rights,
both positive and negative, that all humans have based only on the fact that they are
human. ... That is, natural rights are those that are moral while conventional are those
created by humans and reflect society's values.
Highlight issues rather than the term “corporate governance” but begin to use the term
in articles and explain what it means.
Poor corporate governance can lead to: 1.Corruption and Fraud 2.Conflicts of
interest 3.Interference between family problems and the company 4.Tax evasion or
money-laundering 5.Poor treatment of employees 6.Disregard for the environment
Good Board Practices Clearly defined roles and authorities Duties and
responsibilities of Directors understood Board is well structured appropriate
composition and mix of skills
Main important points : 1: role of the board >>decision making 2: functions of the
board>> selecting evaluating and compensation the plan 3: qualification >>no board
member of more then two companies 4: independence of directors 5: size of board
>>should b appropriate but minimum 5 : committees a: audit b:management
development c: governance and public affairs d:technology and industrial affairs 6:
independence of committee members 7: self-evaluation 8: board leadership