ETHICS : A BASIC FRAMEWORK

H A R V A R D B U S I N E S S S C H O O L 9 - 3 0 7 - 0 5 9

SYNDICATE GROUP 6 - SLEMBA1 BPOM 2020

SYNDICATE GROUP 6
M E M B E R

Ely Rahmawati - 29320072

Novia Hestiningrum - 29320158
Perdhana Ari Sudewo - 29320108
Rahajeng Puput Aryani - 29320130
Rahma Yulianti - 29320191
Terry Yessi Evelin - 29320031

SLEMBA1 BPOM 2020

FOREWORD
The Note prepared by : Professor Lynn Sharp Paine

The Note reflects contributions from :

• Professors Joseph L. Badaracco, Jr.
• Joshua D. Margolis
• Thomas R. Piper
• Sandra Sucher
• other members of the Leadership and
Corporate Accountability teaching group

SLEMBA1 BPOM 2020

 QUESTIONS

01 02 03
Name three most
How does the
What are the key useful questions you
concepts of
principles that would use to test the
Duties, Rights,
must be upheld ethical judgement of
Best Practice and
as Standards for an action!
Commitments
Corporate Give an example at a
related to
Conduct? situation faced by
Ethics?
BPOM.

SLEMBA1 BPOM 2020

HOW DOES THE CONCEPTS OF DUTIES, RIGHTS, BEST
PRACTICE AND COMMITMENTS RELATE TO ETHICS?

D U T I E S

D
• mandatory
• what to do and no to do
• written into law or otherwise codified (policy and
codes of organization conduct)
• may give rise to criticism/blame even punishment

SLEMBA1 BPOM 2020

HOW DOES THE CONCEPTS OF DUTIES, RIGHTS, BEST
PRACTICE AND COMMITMENTS RELATE TO ETHICS?

R I G H T S

R
• in tune with moral duties
• dependent on other people and related to our duties
• written into codes of organization conduct or formal
codes such as the Universal Declaration of Human
Rights
• can cause for blame and punishment/ compensation

SLEMBA1 BPOM 2020

HOW DOES THE CONCEPTS OF DUTIES, RIGHTS, BEST
PRACTICE AND COMMITMENTS RELATE TO ETHICS?

B E S T P R A C T I C E

BP
• standards of excellence (idelas, values, aspirations)
• not always mandatory
• he deferent between behavior that is ethically
required and behavior that is good but not
mandatory is not always clear
• The point in implementing is acceptance or
agreement by other people, in organizations or
stakeholders.

SLEMBA1 BPOM 2020

HOW DOES THE CONCEPTS OF DUTIES, RIGHTS, BEST
PRACTICE AND COMMITMENTS RELATE TO ETHICS?

C O M M I T M E N T S

C
• rooted in an individual’s personal values and beliefs,
the culture and practices of the organization, or the
needs of the larger society
• related to personal or organization branding
• can affect self-concept or reduce the trust of other
people or society

SLEMBA1 BPOM 2020

HOW DOES THE CONCEPTS OF DUTIES, RIGHTS, BEST
PRACTICE AND COMMITMENTS RELATE TO ETHICS?
Is the action consistent
with your duties? DUTIES

Does it respect the rights of

Does it reflect best practice?
affected parties?
BEST
PRACTICE ETHICS RIGHTS

COMMIT
MENT Is it compatible with your
own deeply held
commitments (core value)?
HOW DOES THE CONCEPTS OF DUTIES, RIGHTS, BEST
PRACTICE AND COMMITMENTS RELATE TO ETHICS?
C O R R E L A T I O N
• Duties, Rights, Best Practice and Commitments are tools of Ethical Standards to help
identifying “Stakeholders” and create Alternatives of actions – may be more than one
• There is always impact and consequences of actions :
1. Who is making the decisions ?
2. Who is affected by the decisions ?
• Anyone that can affect or is affected by a decision (Stakeholders) :
1. Leader / Boss
2. Family, Friends, Colleagues
3. The public
4. YOU
• Conflict of interest can threaten our impartiality —> “inappropriate” self-interest
SLEMBA1 BPOM 2020
WHAT ARE THE KEY PRINCIPLES THAT MUST BE UPHELD AS
STANDARDS FOR CORPORATE CONDUCT?

1. Fiduciary Principle: Act in the best interests of 5. Dignity Principle: Respect the dignity of all
the company and its investors. people.
2. Property Principle: Respect property and the 6. Fairness Principle: Deal fairly with all parties.
right of those who own it. 7. Citizenship Principle: Act as responsible
3. Reliability Principle: Keep promises, members of the community.
agreements, contracts, and other commitments. 8. Responsiveness Principle: Be responsive to the
4. Transparency Principle: Conduct business in a legitimate claims and concerns of others.
truthful and open manner.
SLEMBA1 BPOM 2020
NAME THREE MOST USEFUL QUESTIONS YOU WOULD USE
TO TEST THE ETHICAL JUDGEMENT OF AN ACTION!

Visibility Generality Legacy

Would I be comfortable if
Would I be comfortable Is this how I’d like my
this action were described
if everyone in a similar leadership to be
on the front page of a
situation did this? remembered?
respected newspaper?

SLEMBA1 BPOM 2020

ETHICAL JUDGEMENT OF AN ACTION

Visibility Generality Legacy

Consider how our Consider what would Decision maker’s
actions may be happen if our actions own future self-
viewed by others became the general evaluation
practice

SLEMBA1 BPOM 2020

 GRATIFICATION
E X A M P L E : I N S P E C T I O N T O T H E D R U G & F O O D F A C I L I T I E S

No provision that the owner of the facility
must give something to the officer, or that the
officer asks the owner of the facility to ask for
something.
Visibility
Generality
Legacy The main focus is the implementation of
supervisory duties, giving (within
reasonable limits and not requested) does
not affect the results of the examination

The giving is seen from the point of view of

reasonableness and whether all inspectors
get it, and by taking into account the SLEMBA1 BPOM 2020
customs of the environment for the facility
SLEMBA1 BPOM 2020

THANK
YOU
Syndicate Group 6