Core Principles in

Business Operations
1. FAIRNESS
2. ACCOUNTABILITY
3. TRANSPARENCY
4. STEWARDSHIP

1. fairness

 Refers to the level of even-handedness in dispensing Justice whereby claims are

recognized in the order of their legal and contractual priority
 Impartial and just treatment or behavior without favoritism or discrimination.
 The quality of making judgments that are free from discrimination.
 Treat others the way you like to be treated.
 Share and take turns.
 Follow the rules.

Justice
 means giving each person what he or she deserves or, in more traditional terms,
giving each person his or her due.
 Usually has been used with reference to a standard of rightness.
 The moral fabric that binds modem societies and civilizations. It is a concept
based upon morals and ethics and what is morally correct is seen as just.
 "justice for all"

Principles of Justice
 The most fundamental principle of justice-one that has been widely accepted
since it was first defined by Aristotle more than two thousand years ago- is the
principle that equals should be treated equally and unequal unequally."
 In its contemporary form, this principle is sometimes expressed as follows
"Individuals should be treated the same unless they differ in ways that are
relevant to the situation in which they are involved."

Different Kinds of Justice

 1. Distributive Justice refers to the extent to which society's institutions ensure that
benefits and burdens are distributed among society's members in ways that are fair
and just.
2. Retributive or Corrective Justice refers to the extent to which punishments are
fair and just.
3. Compensatory Justice refers to the extent to which people are fairly
compensated for their injuries by those who have injured them: just compensation
is proportional to the loss inflicted on a person

Equity – The quality of being fair or impartial, fairness, impartiality.

Equality – The state or quantity of being equal.

2. Accountability

 is the obligation of an individual or organization to account for its activities, accept

responsibility for them, and disclose the results in a transparent manner.

CORPORATE ACCOUNTABILITY
 refers to the act of being accountable to the stakeholders of an organization.

ACCOUNTABILITY VS RESPONSIBILITY

 ACCOUNTABILITY
 Being responsible for what you do and being able to give a satisfactory
reason for it or the degree to which this happens
 Cannot be shared with another

 RESPONSIBILITY
 Having a duty to work for or help someone who is in a position of
authority over you
 Can be shared and done since it is imposed upon you

 encompasses the obligation to report, explain, and answer for resulting consequences.
 It also has a strong connection to Expectations.

3. Transparency

 Transparency, in a business or governance context, is honesty and openness.

Two main pillars of good corporate governance:

1. Transparency; and
 2. accountability

 refers to the lack of hidden agendas and conditions.

 refers to the minimum degree of disclosure to which agreements, dealings, practices,
and transactions are open to all for verification
 means unimpeded visibility as all transactions are subject to scrutiny.

CORPORATE TRANSPARENCY
 Describes the extent to which a corporation's actions are observable by outsiders.
 This is a consequence of regulation, local norms, and the set of information,
privacy, and business concerning corporate decision-making and operations
openness.

4. Stewardship

 was originally made up of the tasks of a domestic steward, from stig(house, hall) and
weard, (ward, guard, guardian, keeper).
 Refers to the household servant's duties for bringing food and drink to the castle dining
hall
 Stewardship is an ethics that embodies responsible planning and management resources.

COMMERCIAL STEWARDSHIP
 tends to the domestic and service requirements of passengers on ships, trains,
airplanes, or guests in restaurants.

 CEOS / CHIEF EXECUTIVE OFFICER denotes the concept that "as steward", you
try to leave the company in better shape for your successor than it was handed over to
you by the predecessor.

PRODUCT STEWARDSHIP
 refers to the understanding, controlling, and communicating of a product's
environmental, health, and safety-related effects.

Role Business responsible stewards

 Governments, international institutions, transnational organizations, organized
labor, and civil society
 Standards, procedures, and expectations for the business.

According to Michael Josephson, attorney, and founder of the Joseph and Edna
Josephson Institute for the Advancement of Ethics,

 Ethical behavior in business people has a built-in sense of what is right or wrong.
He says: "it is the need to win, to be clever, and to be successful in other people's eyes
that sometimes causes people to sacrifice the fundamental ideals"