- is the product of multiplying the

likelihood of an event by the impact

of its occurrence.
 1. GAINING THE GOODWILL OF THE
COMMUNITY

The goodwill that socially responsible

activities create can make it easier for
corporations to conduct their business.
A companies viewed as harmful to
their community may suffer a
disadvantage.
2. CREATING AN ORGANIZATION
THAT OPERATES CONSISTENTLY:
Meets the needs of the following:
1. Stakeholders-Shareholders
2. Employees
3. Customers
4. Suppliers
5. Community
The need to emphasize workplace issues that effect:
 3. To Produce Good business

1. Produce safe and effective

products.
2. Provide excellent service
3. Develop and maintain strong
employee relations
4. Operate in a fair and ethical
manner
Bad ethical environment destroys:
Employee commitment to organizational goals
and objectives
1. Creates low morale
2. Fosters poor performance
3. Diminish employee involvement in
corporate improvement initiatives
4. Builds indifference to the organizations
needs.
 Improving Corporate Ethics:
1. Appointing a corporate ethics officer

Corporate ethics can be broadly define to

include ethical conduct, legal compliance
and corporate social responsibility.
 The primary functions of a corporate
ethics policy include:
1. Setting standards
2. Building awareness
3. Handling internal reports
 Improving Corporate Ethics:
2. Ethics officers come from diverse back
grounds such as:

1. Legal staff
2. Human resources
3. Finance
4. Auditing
5. Line security
6. Line operations
 Specific Responsibilities include:

1. Complete oversight of the ethics function

2. Collecting and analyzing data
3. Developing and interpreting ethics policy
4. Developing and administering ethics
education and training
5. Overseeing ethics investigation
 Improving Corporate Ethics:
3. Ethical Standards set by Board of
Directors

Board of Directors
• -is responsible for the careful
and responsible management of
an organization.
 Improving Corporate Ethics:
4. Establishing a Corporate code of Ethics

• A code of ethics highlights an

organization’s key ethical issues
and identifies the overaching
values and principles that are
important to the organization and
it decision making
 4. TO PROTECT THE ORGANIZATION AND ITS
EMPLOYESS FROM LEGAL ACTION:

The code frequently includes a set of formal:

1. Written statements about the purpose of
the organization, its values, and principles
that guide its employee’s actions.
2. An organization’s code of ethics applies to
its directors, officers, and employees.
3. Focus employees on areas of ethical risk
relating to their role in the organization,
provide guidance to help.
4. Helps ensure that employees abide by the
law follow necessary regulations, and behave
in an ethical manner.
CONDUCTING SOCIAL AUDITS
Companies conduct social audits of their
policies and practices.

REQUIRING EMPLOYEES TO TAKE ETHICS

TRAINING
-encourages employees to act responsibly and
ethically.
5. TO AVOID UNFAVORABLE PUBLICITY

7 Steps in ETHICAL DECISION MAKING

1. Get the facts
2. Identify stakeholders and their positions
3. Consider the consequences of your
decisions.
4. Weigh various guidelines and principles.
5. Develop and evaluate options.
6. Review your decision
7. Evaluate the results of your decision
THANK YOU FOR LISTENING