INTRODUCTION TO ETHICS

CORPORATE CULTURE &

CORPORATEGOVERNANCE
Outline
• Introduction to Ethics
• Introduction to Corporate Governance
• Corporate Culture
• Case Study

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Philippians 3:12-14
Gospel Reading

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Philippians 3:12-14
Gospel Reflection
‘God does not always call the equipped, but he always equips the called.' Let us stepped out to serve God
and He will do the rest.
As author Warren Wiersbe said, "Denying that we can accomplish God's work is not humility; it is the worst
kind of pride.
“If you are waiting until you become better, brighter, or more ready, you are probably relying on yourself
more than God.
When your greatest desire is to love others as Christ leads, you practice the humility that is needed to risk
making mistakes.
 
Let us ask God help us in order to clear our understanding of His calling without any confusion so we can
follow Jesus.
May He give us the grace to increase our wisdom to discern His will for our lives.
Let us pray in Jesus name, Amen.

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Module Learning Outcomes
At the end of this module you should be able to:
•Understand the basic principles on Corporate Culture, Corporate Governance and
Ethics.
•Connect Corporate Culture to Ethics
•Complete the Enabling Assessment in the form of Oral & Written Report applying the
topics learned in this module

Course Learning Outcomes  Topic Learning

Outcomes 

CLO1. Equip one’s self to contribute TLO1. Understand the

in decision-making while ‘doing the importance of company
right thing’ (ethics) without culture and values in
sacrificing any business success of organization
opportunities and investment
issues 
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What is Ethics?

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• Ethics
• Ethics or moral philosophy is a branch of philosophy that
"involves systematizing, defending, and recommending concepts
of right and wrong behavior".
• Ethical behavior is essential for successful business in today’s
global marketplace.
• Ethical behavior is about doing the right things for the company,
the employees, the community, the government, and the natural
environment.
• It requires companies to act in ways that stakeholders consider
honest and fair.

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Components of Ethical Behavior

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Ethical behavior
• Ethical behavior is essential for successful business
in today’s global marketplace.
• Ethical behavior is about doing the right things for
the company, the employees, the community, the
government, and the natural environment.
• It requires companies to act in ways that
stakeholders consider honest and fair
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• Ethics- are moral principles and values that govern the behavior of
people, firms, and governments regarding right and wrong
• Corporate Social Responsibility (CSR) -operating a business in a manner
that meets or exceeds the ethical, legal, and commercial
expectations of customers, shareholders, employees, and the
communities where the firm does business.
• Sustainability means meeting humanity’s needs today without harming
the ability of future generations to meet their needs.
• Corporate governance is the system of procedures and processes by
which corporations are managed, directed, and controlled. It provides
the means through which the organization’s directors and managers
undertake ethical behavior, corporate social responsibility, and
sustainability.

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What is Corporate
Governance?

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• What is Corporate Governance?

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OECD Principles of Corporate Governance
• Organization for Economic Co-operation and Development (OECD) An
intergovernmental organization (based in Paris, France) which provides
a forum for discussion and cooperation among the governments of
industrialized countries committed to democracy and the market
economy.
• OECD Principles (Ivan, 2015) are divided into six sections, as follows:  
1. Providing a basis for corporate governance framework taking into
account the promotion of some principles of transparency and efficiency
of markets, which should be in harmony with the legislation and clearly
formulate the separation of responsibilities between supervisors,
authorities of normalization and implementation;
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• OECD Principles of Corporate Governance
2. Shareholders’ rights and the key functions of ownership pursuing
protection and guarantee of shareholders’ rights;
3. Shareholders’ fair treatment, ensuring a fair and adequate treatment
within corporate governance, including for foreigners and minority
shareholders, stipulating the need to reward all shareholders if their rights
are violated;
4. Shareholders’ role in corporate governance is seen as a means of
creating value and jobs through cooperation between shareholders and
companies, corporate governance recognizing the shareholders’ rights,
stipulated by law

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OECD Principles of Corporate Governance
5. Accurate and timely reporting and transparency should be provided in
corporate governance in order to obtain a clear image of the organization
in terms of performance, capital, financial position and its governance;

• 6. Responsibilities of the board of administration must be clearly defined

in corporate governance to ensure effective strategic guidance to entities
and to allow effective monitoring of executive management by the board
of administration, by assuming its responsibilities.
•
 

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What is Culture?

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What is Culture?
The values, beliefs, customs, arts, and other products of human
thought and work that characterize the people of a given society.
What is Corporate Culture?
• Shared pattern of beliefs, expectations and meanings
• Unspoken persuasive standards and expectations
• Influences and guides thinking and behaviors

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Cross-cultural risk
A situation or event in which a cultural misunderstanding puts some human value at
stake.

Cross-cultural risk
A situation or event in which a cultural misunderstanding puts some human value at stake.

tural risk
A situation or event in which a cultural misunderstanding puts some human value at stake.

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Dimension
• Socialization
The process of learning the rules and behavioral patterns
appropriate for living in one’s own society.
• Acculturation
The process of adjusting and adapting to a culture other than
one’s own.

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Colors

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Language
The world has approximately 7,000 active languages, including more than 2,000 in each of Africa and Asia.
Most of these languages have only a few thousand speakers. Just 23languages are spoken by half the
world’s population.

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Religion
Religion is a system of common beliefs or attitudes concerning a being or a
system of thought that people consider sacred, divine, or the highest truth
and includes the moral codes, values, institutions, traditions, and rituals
associated with this system.
Religious concepts of right and wrong have played a key role in the
development of ethical values and social responsibility. Almost every culture
is underpinned by religious beliefs.
(Christianity, Islam, Hinduism, Buddhism, Confucianism, Judaism)

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Models & Explanation
Hofstede’s Research on National Culture
• Individualism vs Collectivism
• Power Distance
• Uncertainty Avoidance
• Masculinity vs Femininity
• Long-Term Vs Short-Term Orientation
• Indulgence vs Restraint

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Managerial Implications
Cultural Orientation of Managers/Leaders
• Ethnocentric orientation
-Using our own culture as the standard for judging other cultures.
• Polycentric orientation
-A host-country mind-set in which the manager develops a strong
attachment to the country in which she or he conducts business.
• Geocentric orientation
A global mind-set by which the manager can understand a business or
market without regard to country boundary

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How to acquire cross-cultural
competence?
 Acquire factual knowledge about the
other culture and try to speak the
language.
 Avoid cultural bias
 Develop cross-cultural skills

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Compliance and Value Based Culture

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 References

Call number or e-
provider
HF 5387 .H255 Laura H., Joseph D, & Chris M. (2018) Business Ethics: Decision
2018 Making for
Personal Integrity & Social Responsibility. McGraw Hill
Academic Raluca Ivan. (2015). An Internal Audit Perspective on Differences
Journal between European Corporate Governance Codes and OECD
(EBSCOhost) Principles. Academic Journal of Economic Studies, 1(4), 80–90.
Online Website Groysberg, B., Lee, J., Price, J., & Cheng, J. Y.-J. (2018). The Leader's
Guide to Corporate Culture. Retrieved from Harvard Business
Review: https://hbr.org/2018/01/the-culture-factor
International Business by
Cavusgil, Knight, Riesenberger, International Business, 2021 by
Pearson Education, Inc. or its affiliates. All Rights Reserved
 
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ThankYou
Module Author:
Ms. Rochelle Maloles

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