BUSINESS ETHICS AND

CORPORATE GOVERNANCE

ETHICAL
LEADERSHIP
AND CODE OF
CONDUCT
What is Ethical
Leadership?
 WHY PRACTISE
ETHICAL LEADERSHIP
MODELS ETHI CAL BEHAVI OR TO
THE ORGANI ZATI ON AND THE
COMMUNI TY.
BUI LDS TRUST
BRI NGS CREDI BI LI TY AND
RESPECT, BOTH FOR YOU AND
THE ORGANI ZATI ON.
CAN LEAD TO COLLABORATIO
CREATES A GOOD CLIMATE
WITHIN THE ORGANIZATION.
ETHICAL LEADERSHIP IS
SIMPLY THE RIGHT WAY TO GO.
ETHICAL LEADERSHIP AFFORDS
SELF-RESPECT.

HOW TO PRACTISE ETHICAL LEADERSHIP

DEFINE AND ALIGN YOUR

VALUES
HIRE PEOPLE WITH
SIMILAR VALUES
PROMOTE OPEN
COMMUNICATION
LEAD BY EXAMPLE
WAYS ETHICAL LEADERSHIP CAN AFFECT
AN ORGANIZATION

INCREASED SENSE OF BELONGING

IMPROVED RELATIONSHIPS WITH CUSTOMERS
SUPPORT IN TIMES OF CRISES
EMPLOYEE LOYALTY
BETTER MORALE
HIGHER STABILITY
HIGHER MOTIVATION
TRAITS OF
ETHICAL
LEADERS
Sets a great example

Respects everyone equally

Open communication

Fair mediation

Effective stress management

Zero tolerance of ethical

violations
 Ethical Leaders

ROS E MARCARI O GARY RI DG E ED SHAK

CF O of Pata g o ni a CEO of WD40 CEO of Di ck ' s

Sp orti ng Goods
KEY QUESTIONS FOR ASSESSING
YOUR APPROACH TO ETHICAL
LEADERSHIP
Do organizational values, standards of behavior, and organizational
support mechanisms reinforce and encourage integrity at all levels?
Does the leadership of the organization demonstrate high
standards of integrity?
Do they practice what they preach and set a good example?
Do directors and senior management provide a clear signal to other
employees and outside stakeholders that integrity is important to
the performance and reputation of the organization?
Does adhering to the principle of integrity override short-term gain?
Does the organization’s leadership ensure that strategy, policies,
information, and culture sustain a reputation for integrity?
Are the organization’s objectives and strategy in line with its
standards of business conduct? For example, does the strategy
impose unrealistic short-term performance targets that may
encourage behavior that lacks integrity?
Does the organization have a code of conduct that defines integrity
and outlines the behavior it expects directors, employees, and other
stakeholders to uphold?
Does the code and compliance program adhere to regulatory and
listing requirements, including for enforcement?
 NEED FOR AN ORGANIZATION TO DEMONSTRATE A COMMITMENT TO
INTEGRITY AND ETHICAL VALUES THROUGH FOCUS ON THESE 4 POINTS

1 2
SETTING THE TONE ESTABLISHING
AT THE TOP STANDARDS OF CONDUCT

the expectations of the board of directors

the board of directors and management at
and senior management concerning
all levels of the organizations demonstrate
integrity and ethical values are defined in
through their directives, actions, and
the entity’s standards of conduct and
behavior the importance of integrity and
understood at all levels of the organization
ethical values to support the functioning of
and by outsourced service providers and
the system of internal control.
business partners.
 NEED FOR AN ORGANIZATION TO DEMONSTRATE A COMMITMENT TO
INTEGRITY AND ETHICAL VALUES THROUGH FOCUS ON THESE 4 POINTS

3 4
EVALUATING ADHERENCE TO ADDRESSING DEVIATIONS
STANDARDS OF CONDUCT IN A TIMELY MANNER

processes are in place to evaluate the deviations of the entity’s expected

performance of individuals and teams standards of conduct are identified and
against the entity’s expected standards of remedied in a timely and consistent
conduct. manner.
CODE OF
CONDUCT
MEANING OF CODE OF CONDUCT

Management tool
Comprised set of rules
Affirmative or prohibitive statements
Provides guidance for handling different
business situations
SIGNIFICANCE OF CODE OF CONDUCT

Promotes good social and professional culture

These codes specify certain expectations regarding:
1. Obedience of law
2. Conflict of interest
3. Insider Trading
4. Preserving confidential information
5. Competition and fair dealing among other things
STEP 1: GATHERING INFORMATION
STEP 2: CREATING THE DRAFT STEPS OF
STEP 3: REVIEWING THE DRAFT FORMING A
STEP 4: FORMALLY ADOPTING THE CODE CODE OF
STEP 5: INTRODUCING THE CODE
CONDUCT
STEP 6: ENFORCING THE CODE
 Examples of Code of Conduct

Objectivity
Honesty
Encouraging others
Legal Compliance
Professional behaviour
Commitment
Some Real life examples
 Jainam Bid 03
THANK Shubham Dedhia
Maitri Desai
07
08

YOU Krisha Patel

Anay Shah
36
42
Yash Shah 43