Business Ethics & Corporate Governance

Presented by: Amna Nadeem

Ayesha Javed
Nayab Ibrar
Fazila Alamdar
Ethics & Business Ethics
Ethics
It is a branch of philosophy and is considered as normative since
because it is concerned with norm of human conduct.

Ethics is a conception of right and wrong behavior, defining for us when

our actions are moral and when immoral Ethics.

Business Ethics
Business is the art and discipline of applying ethical principles to
examine and solve complex moral dilemmas.

A business is considered to be ethical only if it tries to reach a trade off

between pursuing economic objective and its social obligations.

Presented by: Ayesha Javed

Corporate Governance

In narrow sense, corporate governance deals with maximizing

the shareholder’s wealth.

In broader perspective, it considers the welfare of the all

stakeholders and the society.

Utilitarianism

Ethics and
Ethical
Corporate
Considerations
Governance

Presented by: Ayesha Javed

Six Characteristics of an Ethical Business

Strong,
Ethical
Leadership
Concern
for People
& Core Value
Statement
Environ-
ment
Characteristics
of an Ethical
Business
Loyal
Relation-
Integrity
ships with
and
Employees
Fairness
and
Customers
Respect for
Employees
and
Customers
Presented by: Amna Nadeem
Importance of Business Ethics

Ethical is all about developing trust maintaining it fruitfully so that

the firm flourishes profitably and maintain good reputation. Trust
leads to predictability and efficiency of the business.

Unethical behavior is a way of acting that society disapproves of. It

is the behavior that is ‘bad’; ‘wrong’ in a particular setting.

It’s in the best interest of a company to operate ethically.

Trustworthy companies are better at attracting and keeping
customers, talented employees, and capital.

Presented by: Amna Nadeem

Categories of Code of Ethics for Employees

Category 1:
“Be a dependable organization citizen”
Category 2:
“Don’t do anything unlawful or improper that will harm the organization”
Category 3:
“Be good to customers and suppliers”
Category 4:
“Religion, Belief and Spirituality in the organization”

Presented by: Nayab Ibrar

 Business Ethics & Good Governance

 Most of the benefits received from business ethics are the goals
of corporate governance.

 Thus we can say that ethics have a strong impact on corporate

governance and the implementation of business ethics can
ensure good governance.

Efforts At The
Government Level

Clear cut policies & Strict penalty

working procedures provisions

Presented by: Nayab Ibrar

How Ethics Can Make Corporate Governance More
Meaningful?

 Good corporate governance should look at all stakeholders and not

just shareholders alone.
 Corporate governance is something WHICHCOMES FROM WITHIN!
 The provisions of companies act should be followed both in letter
and spirit.

Presented by: Nayab Ibrar

Specific Strategies Which Should Be Considered Include

 Effective laws which require civil servants

 Management approaches
 ‘Whistleblower’ protection law
 Ethics audits to identify risks to the integrity
 Human Resource Management strategies
 Content and rationale of Ethics Codes
 Effective external and internal complaint and redress procedures

Presented by: Fazila Almdar

Steps to Improve Ethical Performance

 Develop a code, and make ethical performance a strategic

priority
 Set the tone from the top.
 Engage, communicate and train your staff.
 Provide support routes for staff.
 Measure effectiveness of your ethics programmed.

Presented by: Fazila Almdar

CONCLUSION

Ethics are important not only in business but in all aspects of life
because it is an essential part of the foundation on which of a
civilized society is build. A business or society that lacks ethical
principles is bound to fail sooner or later.

The law is the government’s instrument of power. Building an

ethical workplace culture requires equal skills in policy-making
and relationship-building, and equal emphasis on procedures and
values.

Presented by: Fazila Almdar

Thank you