GOVERNACE, BUSINESS ETICS, RISK

MANAGEMENT AND INTERNAL CONTROL

THE COMPANY’S
CODE OF ETHICAL
CONDUCT
PRESENTED BY: GROUP 4
 OVERVIEW
The Company’s Code of Ethical Conduct and
its major contents.

Divulging of confidential information and

trade secrets

Personal use of company vehicles and

equipment

Unauthorized commissions and consulting

fees
 OVERVIEW
Conflicts of interest and outside business of
officers and employees

Reimbursement of personal expenses

Prohibition of bribery
 THE COMPANY’S CODE OF
ETHICAL CONDUCT

There are no hard and fast rules in

formulating a company’s code of ethical
conduct. The ethical code is best
determined by evaluating which would be
suitable to the company’s nature of
business, size, products and services and
other factors. Nonetheless, business ethics
must be established and applied in the
workplace.
 THE COMPANY’S CODE OF
ETHICAL CONDUCT

After the implementation of the Company’s

Code of Ethical Conduct to the stakeholders
of the company, compliance is required. The
purpose is to deter unethical behaviors and
actions by the other stakeholders and
achieve corporate cultures that drive
people in the company to perform things
legally and ethically consistently.
 01 03 05
Company Ethical principles Process for
profile adapted by the identifying the
company threats or risks
02 04 of ethical acts

Objectives of the List of

code of ethical instances of
conduct unethical acts
 06 08 10
Process for Reporting ethical Approval of the
determining issues and code of ethical
whether threats concerns conduct
are significant 07 09
Resolving ethical Sanction for
conflicts violation of the
code of ethical
conduct
 GOVERNACE, BUSINESS ETICS, RISK
MANAGEMENT AND INTERNAL CONTROL

UNETHICAL BEHAVIORS
AND UNETHICAL ACTIONS
 DIVULGING OF CONFIDENTIAL
INFORMATION AND TRADE SECRETS

Corporate officers and employees are prohibited from disclosing or divulging to

anyone, family member or otherwise, confidential information pertaining to the
company and trade secrets.

Confidential information would include monetary information on internal

accounting reports, and bank accounts of the company among others.

Trade secrets would include product ingredients and secret processes.

As a preventive measure, many companies implement hefty sanctions such as

termination and the filing of cases against erring corporate officers and
employees who are found to divulge and use, for their own gain, confidential
information and trade secrets.

Access to information of officers and employees who have already retired is

removed to prevent them from obtaining and disclosing confidential matters
about the company.
 PERSONAL USE OF COMPANY
VEHICLES AND EQUIPMENT

Company vehicles and equipment must only be used for official purposes.

Corporate officers and employees shall not use company vehicles for family
vacations and other personal purposes.

To implement this, many companies use global positioning system (GPS)

devices to keep track and monitor the location of company vehicles.
 UNAUTHORIZED COMMISSIONS AND
CONSULTING FEES

Payments of commissions are to be accepted only by company officers and

employees when duly authorized.

It is not customary for suppliers to provide commissions to company officers on

account of their approval of certain contracts.

Company personnel shall also refrain from collecting consulting fees from the
employing organization for services rendered. This is because they are employees
of the company and are already being remunerated in the form of compensation.
CONFLICTS OF INTERESTS AND OUTSIDE
BUSINESS OF OFFICERS AND EMPLOYEES

A conflict of interest arises if a member of the board is a shareholder of the

construction company which won in the bidding process, unless if he/she inhibits in
the selection and approval process.

To address this unethical act, many companies require all personnel to declare and
report all business interests on an annual declaration form.

Many companies implement a vendor accreditation process to ensure that only

vendors with good track record in the delivery of quality materials are accepted

Through the accreditation process, the shareholders and officers of the vendors will be
known and will be compared with the employees’ annual declaration of business
inetrests to spot a potential conflict of interest.
 REIMBURSEMENT OF PERSONAL
EXPENSES

Company officers are often reimbursed for business expenses that they have
incurred in the performance of their official duties.

However, there are cases when these officers submit official receipts for personal
expenses to be included in their reimbursements.

Examples:
An employee might treat a friend to lunch and claim they discussed a
prospective business relationship.

An employee might take a family vacation and request reimbursement for

travel and hotel expenses by submitting actual receipts and a false expense report.
 PROHIBITION ON BRIBERY

Bribery is the giving or offering of any item of value to influence the actions of a
government official or personnel.

All payments made to a government agency should be evidenced by a

government official receipts.

Specific policies against bribery should be included in the company’s code of

ethical conduct.

Example:
A company gives bribes to a government official so that its business
license will be approved.
 “
UNETHICAL BEHAVIOR
SIGNIFICANTLY INCREASES
THE COST OF DOING BUSINESS
-FRANK SONNENBERG-
GOVERNACE, BUSINESS ETICS, RISK
MANAGEMENT AND INTERNAL CONTROL