LESSON 5 : DECIDING WHAT IS RIGHT

An ethical dilemma is a situation in which two or more “right” values

are in conflict. For example – in the thought experiment, should
the Customer Service Officer serve the VIP or the student?

There are generally two approaches to deciding what is right in an

ethical dilemma.

APPROACH 1
The philosophical approach focus on prescriptive or normative ethical theories such as
Deontology, Teleology & Virtue that are designed to help the individual decide what they
should do in response to ethical dilemmas - to discuss in Module 3.
Pendekatan falsafah memberi tumpuan kepada teori etika preskriptif atau normatif seperti
Deontologi, Teleologi & Kebajikan yang dirancang untuk membantu individu memutuskan
apa yang harus mereka lakukan sebagai tindak balas kepada dilema etika - untuk
dibincangkan dalam Modul 3.

APPROACH 2
The psychological approach which focuses on what people actually do when faced with an
ethical dilemma such as Lawrence Kohlberg's theory of Cognitive Moral Development -
to discuss in Module 3.
Pendekatan psikologi yang memfokuskan pada apa yang sebenarnya dilakukan oleh
orang ketika menghadapi dilema etika seperti teori Lawrence Kohlberg mengenai
Pengembangan Moral Kognitif - untuk dibincangkan dalam Modul 3.

What is Ethical Behaviour and Management?

Apakah Perilaku dan Pengurusan Etika?

1 Ethical behaviour in business is behaviour that is consistent with the principles and
standards of business practices that society accepts as good and right.

-Tingkah laku etika dalam perniagaan adalah tingkah laku yang selaras dengan prinsip dan
standard amalan perniagaan yang diterima masyarakat sebagai baik dan betul.

 2
2 Management identifies appropriate or inappropriate behaviour (or conduct) and
communicates their expectations to employees through a code of conduct, ethical training
programmes, and ethical managerial leadership.
2 Pengurusan mengenal pasti tingkah laku yang sesuai atau tidak sesuai (atau tingkah laku)
dan menyampaikan harapan mereka kepada pekerja melalui tatakelakuan, program latihan
etika, dan kepimpinan pengurusan etika.

Ethical decisions by employees are influenced by individual and organisational factors.

Keputusan etika oleh pekerja dipengaruhi oleh faktor individu

dan organisasi.

LESSON 6 STRENGTHENING CONDUCT AND

CULTURE IN THE FINANCIAL INDUSTRY

Keeping to the highest standards of ethics and integrity is part of

being professional" - Bank Negara Malaysia

BNM has adopted a 2 pronged approach to influence the conduct of individuals within the
financial sector - BNM telah menggunakan pendekatan serampang 2 mata
untuk mempengaruhi tingkah laku individu dalam sektor kewangan

1. Organisational Factor -Cultivate a code of conduct that promotes honesty and integrity.

1. Faktor Organisasi - Membentuk kod tingkah laku yang memupuk kejujuran dan integriti

2. Individual Factor - Hiring of individual with integrity (Pre-screening of hire)

2. Faktor Individu - Pengambilan individu yang berintegriti (Pra-saringan pengambilan

pekerja)
 "The Deputy Governor said the ethical challenge for
leaders is designing situations that encourage
continuous ethical behaviour in people."

Wakil Gabenor mengatakan bahawa cabaran etika bagi para

pemimpin adalah merancang situasi yang mendorong tingkah
laku etika yang berterusan pada orang."

Transparency framework for enforcement actions:-

Kerangka ketelusan untuk tindakan penguatkuasaan: -

1. Remuneration - influencing behaviour

2. Attitudes towards speaking-up – clear and robust whistleblowing arrangements

1. Imbuhan - mempengaruhi tingkah laku

2. Sikap bersuara - pengaturan pemberitahuan pemberitahuan yang jelas dan tegas

LESSON 7 : BANKERS OR BANKSTER ?

ECONOMIST CALL US BANKSTER !

THE ECONOMIST – PAKAR EKONOMI

In 2008, prior to the global financial crisis, the bankers took every opportunity they can to
boost their KPIs. In some instances, many of them were unscrupulous which causes many to
go bankrupt. Pada tahun 2008, sebelum krisis keuangan global, para bankir mengambil setiap
kesempatan untuk meningkatkan KPI mereka. Dalam beberapa keadaan, banyak di antaranya
tidak bertanggungjawab yang menyebabkan ramai muflis.
However, these unscrupulous were not brought to justice even though they cause millions of

people to suffer during the global financial crisis. Namun, perkara tidak bertanggungjawab ini

tidak dibawa ke muka pengadilan walaupun menyebabkan jutaan orang menderita semasa

krisis kewangan global

THIS IS BECAUSE OF THE BANKER’S ACTION WAS MOSTLY LEGAL BUT

UNETHICAL!!

So, does being legal makes you an ethical person? Not necessary. It's not a
definite NO. Therefore, ETHICS deals with the situation that you are still legal but
unethical.

Oleh itu, adakah sah menjadikan anda orang yang beretika? Tidak perlu. Ini bukan TIDAK

pasti. Oleh itu, ETIKA menangani keadaan bahawa anda masih sah tetapi tidak beretika

MOVIE TIME
This movie is based on a true story showing how the financial crisis of
2007–2008 was triggered by the United States housing bubble where a
group of wily opportunists makes a fortune off of the U.S. economic crash
by sniffing out the situation in advance and betting against the banks.
Filem ini didasarkan pada kisah benar yang menunjukkan bagaimana krisis kewangan

2007–2008 dicetuskan oleh gelembung perumahan Amerika Syarikat di mana

sekumpulan oportunis yang cerdik membuat untung dari kemalangan ekonomi AS

dengan mengendus keadaan terlebih dahulu dan bertaruh bank-bank.

LESSON 8 : ETHICS AND THE LAW

ETHICS VS LAW
How to Define Ethics and Law?

 1

1 Law reflects society’s MINIMUM norms and standards of business conduct.

2 There is a great deal of OVERLAP between what’s legal & what’s ethical.

 3

3 Law-abiding behavior is generally believed to also be ethical.

 4

4 There are many particular situations not covered strictly by law that fall under the umbrella
of “ethical dilemmas.” - the GREY AREA.

 5
5 An Ethical Dilemma arises in a situation when each alternative choice or behavior is
undesirable because of potentially harmful ethical consequences. Right or wrong cannot be
clearly identified.

1 Undang-undang mencerminkan norma dan standard minimum perniagaan masyarakat.

2 Terdapat banyak OVERLAP antara yang sah dan apa yang beretika.

3 Tingkah laku yang mematuhi undang-undang umumnya dipercayai juga beretika.

4 Terdapat banyak situasi tertentu yang tidak dilindungi oleh undang-undang yang berada di

bawah payung "dilema etika." - KAWASAN GRAY.

5 Dilema Etika timbul dalam situasi di mana setiap pilihan atau tingkah laku alternatif tidak

diingini kerana akibat etika yang berpotensi berbahaya. Betul atau salah tidak dapat dikenal

pasti dengan jelas.

 What is The Grey Area?

 Business ethics can be said to begin when the law ends.

 Not all ethical issues are covered by the law - for example, there is no rule about
cheating on your boyfriend/girlfriend but it is considered morally wrong.
 Not all legal issues are ethical - for example, the law prescribes whether we should
drive to the right or left side of the road, but it is not an ethical decision.
 Not always a 'right answer': the grey areas of business ethics.

 • Etika perniagaan boleh dikatakan bermula apabila undang-undang berakhir.

 • Tidak semua masalah etika dilindungi oleh undang-undang - misalnya, tidak ada

peraturan tentang menipu teman lelaki / teman wanita anda tetapi dianggap salah

secara moral.

 • Tidak semua masalah undang-undang beretika - misalnya, undang-undang

menetapkan sama ada kita harus memandu ke kanan atau kiri jalan, tetapi itu bukan

keputusan etika.

 • Tidak selalu 'jawapan yang tepat': bidang etika perniagaan yang kelabu.
COMMON REASON FOR UNETHICAL BEHAVIOUR
1. REASON FOR UNETHICAL BEHAVIOUR :
- MISGUIDED LOYALTY
- PRESSURE TO MEET SET TARGET (KPIS)
- FEAR (NEED TO FEED FAMILY)
- SELF INTEREST / GREED AMBITION
- DO NOT CARE ABOUT ETHICAL VALUES

2. REASON FOR ETHICAL BEHAVIOUR :

- INTEGRITY
- FAIRNESS