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According to the dictionary, the term ethics has a variety of different meanings. One of its meanings is: "the principles of conduct governing an individual or a group”. We sometimes use the term personal ethics, for example, when
referring to the rules by which an individual lives his or her personal life. We use the term accounting ethics when referring to the code that guides the professional conduct of accountants. A second—and more important—meaning of ethics, according to the dictionary, is: Ethics is "the study of morality." Ethicists use the term ethics to refer primarily to the study of morality, just as chemists use the term chemistry to refer to a study of the properties of chemical substances. Although ethics deals with morality, it is not quite the same as morality. Ethics is a kind of investigation— and includes both the activity of investigating as well as the results of that investigation —whereas morality is the subject matter that ethics investigates. Business ethics is a form of Applied Ethics hat examines ethical principles and moral or ethical problems that arise in a business environment.
Business Ethics – Ethical concepts
Ethical subjectivism – what is right or wrong depends on the individual. Ethics is entirely a personal matter. Ethical relativism – Set of principles depends on each society and the values of
society – no universal rules. Consequentialism – act is ethical if it maximizes happiness Ethics of virtue – Emphasis on the role of individual traits Ethical dilemmas in business – conflict between organization’s economic performance and its social performance. NATURE of ETHICS – Ethics deals with human behavoiour. Ethics is more of a normative science – it guides us. Ethics deals with human conduct and is voluntary.
Morals Rules or duties that govern our behavior – eg. Do not tell lies Ends or goals sought by us – e.g health, happiness Study of morality and its application to decisions
Values Business Ethics
Business Ethics - Introduction
Business ethics can be both a normative ie. Prescriptive. As a corporate practice and a career specialization, the field is primarily normative. A normative study is an investigation that attempts to reach normative conclusions—that is, conclusions about what things are good or bad or about what actions are right or wrong. In short, a normative study aims to discover what should be. A descriptive discipline. In academia descriptive approaches are also taken. A descriptive study is one that does not try to reach any conclusions about what things are truly good or bad or right or wrong. Instead, a descriptive study attempts to describe or explain the world without reaching any conclusions about whether the world is as it should be. Ethics deals with Human conduct in various situations – Overt problems which are clear and reprehensible (corruption , theft) and Covert problems which are complex ( hostile acquisitions, lay-offs)
Business Ethics - Morality
Moral standards can be distinguished from non-moral standards using five
characteristics: 1. Moral standards deal with matters that can seriously injure or benefit humans. For example, most people in American society hold moral standards against theft, rape, enslavement, murder, child abuse, assault, slander, fraud, lawbreaking, and so on. 2. Moral standards are not established or changed by authoritative bodies. The validity of moral standards rests on the adequacy of the reasons that are taken to support and justify them; so long as these reasons are adequate, the standards remain valid. 3. Moral standards, we feel, should be preferred to other values, including selfinterest. This does not mean, of course, that it is always wrong to act on self-interest; it only means that it is wrong to choose self-interest over morality 4. Moral standards are based on impartial considerations. The fact that you will benefit from a lie and that I will be harmed is irrelevant to whether lying is morally wrong. 5. Moral standards are associated with special emotions and a special vocabulary (guilt, shame, remorse, etc.).
and friends and asks: What do these standards imply for the situations in which I find myself? Do these standards really make sense? What are the reasons for or against these standards? Why should I continue to believe in them? What can be said in their favor and what can be said against them? Are they really reasonable for me to hold? Are their implications in this or that particular situation reasonable? Ethical decisions differ according to individual’s perspective. church. Just. Ethical decisions normally have a multitude of solutions. Proper and acceptable. Therefore. whether they are supported by good reasons or poor ones. Equitable and just. a person starts to do ethics when he or she takes the moral standards absorbed from family. It asks how these standards apply to our lives and whether these standards are reasonable or unreasonable—that is.Business Ethics+Morality Ethics is the discipline that examines one's moral standards or the moral standards of a society. . Good for all concerned. Fair. Profit in business is OK – but ‘only profit’ is not O.K An IDEAL ETHICAL DECISION – Right morally.
. all in their own name.Business vs. MNC -Operating in more than one country at once produces a new set of ethical dilemmas. As an organization. institutions. This is an important study since businesses are some of the most influential institutions within modern society. own and sell property." and (c) employees who provide labor and who do the basic work related directly to the production of goods and services. Ethics Business ethics is a specialized study of right and wrong applied to business policies. and enter into contracts. the modern corporation consists of (a) stockholders who contribute capital and who own the corporation but whose liability for the acts of the corporation is limited to the money they contributed. and behaviors. Modern corporations are organizations that the law treats as immortal fictitious "persons" who have the right to sue and be sued. (b) directors and officers who administer the corporation's assets and who run the corporation through various levels of "middle managers.
Only companies that are likely to survive in a competitive marketplace are those that place profit maximization above everything else. Business is a part of moral structure and moral ethics INTEGRATION VIEW – Talcott Parsons – combine business with ethical behaviour as both are inter-related . Social problems should be tackled by government and not business UNITARIAN VIEW – business has a major role in serving society and ushering social welfare. only those activities that increase profitability and shareholder value should be encouraged.Relationship between Business & Ethics Philosophers and others disagree about the purpose of a business ethics in society. Thus. suggest that the principal purpose of a business is to maximize returns to its owners. or in the case of a publicly-traded concern. because the consequences of failing to do so could be very costly in fines. or company reputation. SEPARATIST VIEW :-Adam Smith views for example. loss of licensure.Profit without deception / fraud.. its shareholders.self-interest would still require a business to obey the law and adhere to basic moral rules. under this view. Milton Freidman .
if retaliation is a real threat then such behavior will impose costs that are greater than ethical behavior would have been in the first place. there is no reason to exempt business activity from ethical scrutiny. Though a business might get away with unethical behavior much of the time. it does clearly show that it is not a drag on profits. could be carried out in an ethical vacuum. Business is a cooperative activity whose very existence requires ethical behavior. A good example is the current GLOBAL MELTDOWN where all of us suffer due to non ethical behavoiur . but even though it cannot demonstrate that ethical behavior is always more profitable. Even self-interested organizations have a good reason to be ethical in their business dealings: it is in their own long-term best interests. One interesting argument actually claims that ethical considerations are consistent with business activities such as the pursuit of profit. business included. Indeed. the argument claims that ethical companies are more profitable than other companies. Another more developed argument points out that no activity. Perhaps the most fascinating argument for bringing ethics into business is the prisoner's dilemma. The data is mixed on this question.Arguments For Business Ethics One argument points out that since ethics should govern all human activity. The prisoner's dilemma demonstrates that cooperation is more advantageous than continuously trying to take advantage of others at least when we will meet these others again.
They make three general objections. Second.Arguments Against Business Ethics Some people object to the entire notion that ethical standards should be brought into business organizations. Third. they claim that employees. . nothing more than obeying the law. they argue that the pursuit of profit in perfectly competitive free markets will. they say that obeying the law is sufficient for businesses and that business ethics is. essentially. ensure that the members of a society are served in the most socially beneficial ways. by itself. First." are obligated to serve their employers single-mindedly. as "loyal agents. in whatever ways will advance the employer's self-interest.
however. People are not always responsible for their wrongful or injurious acts: moral responsibility is incurred only when a person knowingly and freely acts in an immoral way or fails to act in a moral way. they are directed at determining whether a person or organization is morally responsible for having done something wrong.Moral Responsibility and Blame Moral responsibility is directed not only at judgments concerning right or wrong. Sometimes. . Ignorance and inability to do otherwise are two conditions. that completely eliminate a person's moral responsibility for causing wrongful injury. Ignorance and inability do not always excuse a person. called excusing condition. that ignorance does not excuse the wrongful injury. When one deliberately keeps oneself ignorant to escape responsibility.
The person did so of his own free will. 3. or failed to prevent it when he could and should have. the more serious the injury. . Circumstances that minimize (but do not remove) a person's involvement in an act. In addition to the excusing conditions. Circumstances that leave a person uncertain (but not unsure) about what he or she is doing.Moral Responsibility and Blame A person is morally responsible for an injury or a wrong if: 1. The extents to which these mitigating circumstances can diminish an agent's responsibility depend on the seriousness of the injury. there are also three mitigating factors that diminish moral responsibility. 2. 3. The person did so knowing what he or she was doing. 2. They are: 1. the less the mitigating circumstances will diminish responsibility. Generally. Circumstances that make it difficult (but not impossible) for the person to avoid doing it. The person caused or helped cause it.
Moral Responsibility and Blame How do moral obligations apply to business organizations? Can companies be held accountable for what they do.S Defense department for deployment in missiles / nuclear bombs without adequate testing Gun sales in U.S. by companies to criminals (without verification) who use it for murders . or are the individuals who make up the company the ones we must hold accountable? National Seminductors case – selling critical computer parts to U.
Short term profit maximization within legal constraints. Stakeholder concept.profit is the only goal. Law of the jungle – might is right. 4. 6.Stages of Ethical consciousness Ethical standards vary from country to country Sequence of growth of ethical consciousness 1. Corporate citizenship – business can be healthy only if the society around it is healthy . 3. Anything for profit. Long term profit maximization – sound ethics is good business. 2. 5.
Metaethics – Study of the 3. practical and public. psychological and linguistic issues. Normative Ethics – a ‘ORIGIN’ and ‘MEANING” of ethical concepts -deals with the philosophical. cloning. insider trading. Deontological theory and Virtue ethics . The Golden rule Moral principles should be prescriptive. Applied ethics – deals with specific and controversial issues like abortion. Three theories guide us on how to act in a situation:Teleological theory. universal. branch of ethics that guides your conduct Eg.Ethical Theories – 3 subject areas Ethical theories help us to explore our dilemmas and give us some norms for decision making 1. overriding. tribal people displacement etc. 2.
“science”) is a theory of morality that derives duty or moral obligation from what is good or desirable as an end to be achieved. logos. TELOS = chief aim or end of life Also called Consequentialist or Utilitarianism theories – action is morally correct if the consequences are more favourable than unfavourable. Good and bad – for whom? .Teleological / Utilitarianism ethical theory – Focus on consequences (Ends) Teleological ethics (Greek telos. First list the good and bad consequences and if good > bad then OK. Another way of looking at consequentialism is referred to as "the ends justify the means". “end”.
2.” To determine what the moral thing to do on any particular occasion might be. You must determine what alternative actions are available.Teleological ethical theory “An action is right from an ethical point of view if and only if the sum total of utilities produced by that act is greater than the sum total of utilities produced by any other act the agent could have performed in its place. there are three considerations to follow: 1. You must estimate the direct and indirect costs and benefits the action would produce for all involved in the foreseeable future. 3. You must choose the alternative that produces the greatest sum total of utility. .
It also fits in with the intuitive criteria that many employ when discussing moral conduct. Utilitarianism can explain why we hold certain types of activities. for example. to be immoral: it is so because of the costly effects it has in the long run. that when the government is trying to determine on which public projects it should spend tax monies.Teleological ethical theory Utilitarianism is attractive to many because it matches the views we tend to hold when discussing governmental policies and public goods. such as lying. Most people agree. . the proper course of action would be for it to adopt those projects that objective studies show will provide the greatest benefits for the members of society at the least cost.
To calculate these costs and benefits. factory. or public park) by figuring whether its present and future economic benefits outweigh its present and future economic costs. This type of analysis is used to determine the desirability of investing in a project (such as a dam. . discounted monetary prices are estimated for all the effects the project will have on the present and future environment and on present and future populations. Finally. but for many it means operating in such a way that one produces the most one can with the resources at hand. we can note that utilitarianism fits nicely with a value that many people prize: efficiency.Teleological ethical theory Utilitarianism is also the basis of the techniques of economic cost–benefit analysis. Efficiency can mean different things to different people.
demonstrates just how closely the weighing of costs and benefits can be done. . Utilitarian measurement implies that all goods can be traded for equivalents of each other. People see these things in different ways. There are five major problems with the utilitarian reliance on measurement: Comparative measures of the values things have for different people cannot be made-we cannot get into each others' skins to measure the pleasure or pain caused. Some benefits and costs are impossible to measure. they know that this is largely impossible. and this can be problematic.Teleological ethical theory Though utilitarianism offers a superficially clear-cut method of calculating the morality of actions. it relies upon accurate measurement. when measurements are difficult or impossible to obtain. It is unclear exactly what counts as a benefit or a cost. How much is a human life worth. not everything has a monetary equivalent. shared or common-sense judgments of comparative value are sufficient. Therefore. Utilitarians defend their approach against the objections raised by these problems by saying that though ideally they would like accurate measurements of everything. Ford and its infamous Pinto. However. for example? The potential benefits and costs of an action cannot always be reliably predicted. so they are also not adequately measurable.
the happiness of everyone and not the happiness of any particular person.This form of utilitarianism holds that what matters is the aggregate happiness. ethical egoism may license actions which are good for the agent. Cost – benefit analysis Altruism . but it is generally seen as detrimental to general welfare.consequences for the individual agent are taken to matter more than any other result. Using the theories .Ethical altruism can be seen as a consequentialist ethic which prescribes that an individual take actions that have the best consequences for everyone except for himself. Utilitarianism .Teleological ethical theory – consequences for whom? Egoism – Agent focused ." and whose ethics can be summed up in the phrase: Live for others Eg.Compare the actions of a driver of a car who sees an accident victim but does not attend him because of the consequent harassment he might have to face from police . This was advocated by Auguste Comte. Thus. who coined the term "altruism.
according to social status. Theories of distributive justice need to answer three questions: 1. What goods are to be distributed? Is it to be wealth. future). meritocratic. according to need? . sentient beings. respect. the members of a single society. Distributive justice concerns what is just or right with respect to the allocation of goods in a society. Between what entities are they to be distributed? Humans (dead.Distributive justice – John Rawls views Another Teleological approach to ethical decision making based on concept of fairness. nations? 3. living. some combination of these things? 2. power. What is the proper distribution? Equal.
Principle of equal liberty – Citizens liberties must be 1. right to hold property. and Principle of fair equality of opportunity – everyone should be given equal opportunity to qualify for the more privileged positions in society. .Rawls views – Justice as fairness Rawls’s two principles of justice: 1. freedom from arbitrary arrest etc. protected from invasion by others and must be equal to those of others. freedom of speech. Basic liberties – right to vote. Social and economic inequalities are to be arranged so that they are both Difference principle .to the greatest benefit of the least advantaged.
social statuses. is a form of fairness: an impartial distribution of goods. Rawls asks us to imagine ourselves behind a veil of ignorance which denies us all knowledge of our personalities.You do not know whether you are going to be affected or benefited – now decide in this situation . moral characters. talents and life plans. and then asks what theory of justice we would choose to govern our society when the veil is lifted – this will force us to be impartial and look after the good of all.Rawls views – Veil of Ignorance In his A Theory of Justice. wealth. and especially distributive justice. John Rawls used a social contract argument to show that justice. Decision without knowledge of the implications .
Compensatory justice is concerned with compensating people for what they lose when harmed by others. .Justice and Fairness There are three categories of issues involving justice: Distributive justice is concerned with the fair distribution of society's benefits and burdens. 2. Retributive justice refers to the just imposition of penalties and punishments 3. 1.
. concern. we have an obligation to exercise special care toward the people with whom we have valuable. According to this method. Compassion.The Ethics of Care This is central to the point of view known as the ethics of care. and kindness are all sentiments or virtues that normally manifest this dimension of morality. love. close relationships. an approach to ethics that many feminist ethicists have recently advanced. friendship.
g Ten Commandments . For example. freedom of consent and right to privacy. Immanuel Kant famously argued that we had a moral duty to always tell the truth. even to a murderer who asks where the would-be victim is.Deontology – Deno = Duty Deontological theories hold that we have a duty to perform or refrain from certain types of actions and that this duty derives from the nature of the act itself. a deontologist might argue that we should stick to our duty regardless of the consequences. Consequently. rather than from the consequences produced by the action. Golden Rule – act upon others as you would like others to act upon you Prescription of Universal laws – Kant recognized universal rights such as freedom of speech. Let justice be done though the heavens fall! is one of its slogans Duty to God. Duty to self and Duty to others What you do not wish done to yourself. do not do to others. Religion as a basis for deontology– e.
Generosity. sharp disagreement on this question!! Aristotle categorized the virtues as moral and intellectual. Truthful. one must have an account of what the human purpose is. justice. In the West virtue ethics was the prevailing approach to ethical thinking in the ancient and medieval periods.Courage. and always has been. The virtue of a knife. A virtue is a habit or quality that allows the bearer to succeed at his. Character development . Aristotle . and temperance. the most important of which were sophia (theoretical wisdom) and phronesis (practical wisdom). an outcome which can be reached by practicing the virtues. for example.Virtue ethics Virtue theory is a branch of moral philosophy that emphasizes character. Wittiness . There is. fortitude. Thus to identify the virtues for human beings. among the virtues of a racehorse is speed. rather than rules or consequences. as the key element of ethical thinking. The moral virtues included prudence. Self control. Aristotle identified nine intellectual virtues. Friendly. is sharpness. her.describes that state achieved by the person who lives the proper human life. or its purpose. Gentle. Modest.
A virtue ethicist. A deontologist might argue that lying is always wrong. would focus less on lying in any particular instance and instead consider what a decision to tell a lie or not tell a lie said about one's character and moral behavior. a consequentialist may argue that lying is wrong because of the negative consequences produced by lying — though a consequentialist may allow that certain foreseeable consequences might make lying acceptable. and from virtue ethics.The three theories compared Consequentialism is usually understood as distinct from deontology. however. AN EXAMPLE COMPARING THE THREE THEORIES – ‘LYING’ For example. which focuses on the character of the agent rather than on the nature or consequences of the action itself. regardless of any potential "good" that might come from lying. . in that deontology derives the rightness or wrongness of an act from the character of the act itself rather than the outcomes of the action.
 . or the use of human embryos in research. for example. Environmental ethics is concerned with questions such as the duties of humans towards landscapes or species. or the duty of 'whistleblowers' to the general public as opposed to their employers. As such. it is a study which is supposed to involve practitioners as much as professional philosophers. is concerned with identifying the correct approach to matters such as euthanasia. Moves the consideration of business ethics from the morality of the economic system in general to the morality of specific practices within our system Bioethics. or the allocation of scarce health resources.Applied ethics It is a term used to describe attempts to use philosophical methods to identify the morally correct course of action in various fields of human life. Business ethics concerns questions such as the limits on managers in the pursuit of profit.
South African leaders. were not convinced by Caltex's arguments. 3. American oil company operating in South Africa during that time. Rather than focusing on the financial assistance they were giving the South African government. even at the cost of economic hardship. such as Archbishop Desmond Tutu. Caltex' s management did not agree. which they saw as racist and immoral. 2. they pointed to the positive effects their operations had on black workers. saying that comfort under an immoral regime was not preferable to freedom. A large number of Caltex stockholders opposed the company's operations in South Africa.Apartheid-era South Africa and Caltex 1. He supported the shareholder resolutions. . and introduced a series of shareholder resolutions requiring Caltex to leave South Africa.
The shareholders' argument referred to the unjust policies of the apartheid government and the fact that these policies violated the civil rights of black citizens. 6. and caring.Apartheid-era South Africa and Caltex 4. The point of this example is to show how a real moral debate in business works. . The arguments on both sides appealed to moral considerations and four basic types of moral standards: utilitarianism. 5. On the other side. rights. Caltex's management made utilitarian arguments and arguments about caring: it was in blacks' best interests to have Caltex jobs. justice. and Caltex had a duty to take care of these workers as best it could.
best value for money – best at lowest cost Follow the rules established by society Follow business ethics principles LEGAL ANALYSIS ETHICAL ANALYSIS . efficient and effective use of resources.Applied ethics Ethical theories lay down moral standards that provide a reference point and help managers to take acceptable decisions. Ethical decisions are complex and should strike a balance between multiple factors. Multiple analysis framework:ECONOMIC ANALYSIS Limited resources.
retailers. Dynamics of market system is needed to allocate goods/services. theft and bribery lead to misallocation of resources LACK OF TRUST and hamper the functioning of the market system . 2. deceptive information.Ethics and the Market system Right to own private property Right to own a car and sell it to another for money. If private property is not protected then ‘theft’ takes place and there will be no suppliers of goods and services Buy what I want provided I can pay for it. Unethical behaviors like coercion. to enable making the right choice Freedom of choice Product Information 1. Access to information is required to make choice Provided by manufactures. wholesalers etc.
also called the Silver Rule) ‘Do not do to others that which we do not want them to do to us’ . Is it fair ? To the various stakeholders? Thou shall not be ashamed when found The Golden Rule or ethic of reciprocity is a maxim.Applied ethics – Ethical decision making Is the decision legal ? Yes then go ahead. or morality that essentially states either of the following: One should treat others as one would like others to treat oneself (positive form) One should not treat others in ways that one would not like to be treated (negative/prohibitive form. ethical code.
3. Predictability – eliminates unforeseen actions or risks.Trust Three elements of Trust:1. Faith – belief that one will continue to be dependable and predictable. It is an informal agreement concerning behavior . 2. When Trust is built through experience it is a good risk reducing mechanism. Dependability – assurance that a person will perform as expected. Customers. Business should build up trusted relationships with all its stakeholders to survive and succeed. Macro (global) norms and Micro (Community) norms. Employees. .An organization that fulfills the social contract has performed well. Examine the Impact of unethical behavior on trust in business relations with – Suppliers. Integrative Social Contract theory – Thomas Donaldson and Thomas Dunfee developed it based on principles of hyper norms (universal norms).
Rights.Integrating Utility. and Caring Four main kinds of basic moral considerations: Utilitarian standards . These sorts of standards must be employed when evaluating actions whose distributive effects differ in important ways. so we are forced to consider the net social benefits and social costs consequent on the actions (or policies or institutions) by which we can attain these objectives.must be used when we do not have the resources to attain everyone's objectives. Moral reasoning of this type forces consideration of whether the behavior respects the basic rights of the individuals involved and whether the behavior is consistent with one's agreements and special duties.must be employed when our actions and policies will substantially affect the welfare and freedom of specifiable individuals. Justice. Standards of justice . Standards that specify how individuals must be treated . .indicate how benefits and burdens should be distributed among the members of a group.
especially those of dependency. there is not yet any comprehensive moral theory to show when one of these considerations should take precedence. Unfortunately. and caring involved in a given moral judgment. One simple strategy for ensuring that all four kinds of considerations are incorporated into one's moral reasoning is to inquire systematically into the utility.Integrating Utility.indicate the kind of care that is owed to those with whom we have special concrete relationships. particularly persons with whom one has close relationships. rights. and Caring Standards of caring . . Standards of caring are essential when moral questions arise that involve persons embedded in a web of relationships. justice. Rights. Justice.
2. According to the first theory. Ethics and corporate governance. the culture and values of an organization play an important role in developing an ethical organization. Theory of corporate moral excellence – Corporate culture. corporate values and Ethical behavior (espoused vs values in practice) Ethics and stakeholders theory. Nature of ethical organization is judged based on 3 theories:1.Ethical Organization and Corporate Code Ethical organizations are ones that follow ethical behavior. The second theory states that the behavior of the management towards its stakeholders plays a pivotal role in building an ethical organization. 3. good governance is necessary for building an ethical organization . And according to third theory.
responsibility. FOCUS on policy and decision making which is ethical and value driven . STAKEHOLDER THEORY – pay attention to needs and rights of all stakeholders. credo.Ethical organization – how to build? CORPORATE MORAL EXCELLENCE Espoused values expressed in company statements. authority. power. CORPORATE GOVERNANCE – large cos. org. procedures and processes. goals around these values and org. Michael Hoffman – basic values. code of ethics (refer Johnson & Johnson Credo) Align espoused values to values in practice. Are similar to large states – the system by which corporations are directed and controlled should be similar to how a State is managed – accountability. The need to constantly monitor ethical behavior and align reward systems to ethical behavior.
Johnson & Johnson .
He swears he got it legally.Code of Conduct – why needed? Imagine that one day someone in your organization walks in with a copy of your chief competitor's bid on a big contract. you have a code of conduct that might give your employees help with some of these situations. Should she do it? These cases have two things in common: how they're handled can dramatically help or hurt your organization. but you aren't sure. but she can make them by concealing from a customer that the product he's interested in will be made obsolete by a new line in six months. But how would you want the people in your company to handle these situations? What have you done to let them know what they should do? What have you done to help them? major corporations. . And whether he did or didn't. Are you going to use it in developing your bid? Or what if someone in sales is up against some very tough quarterly objectives. and they're ethical issues. it's still proprietary information.
corporate credos. compliance certificates etc.Org.Corporate Code Policy statements that lay down a company’s ethical standards. structure. Development involves identifying key behaviors. Individual dimension. review by top management. Compliance codes. communication and periodic updating. Motivation and Communication. Coordination. management statements. Ethics committee . Implementation. Group /peer influence and org. strategies for ethical leadership etc.
Relations with stakeholders What values do codes communicate? 1. verification 4. Transparency 4.Corporate Code What issues are covered by general governance codes? 1. Fairness 2. Disclosure. Accountability 3. Fair treatment of shareholders 2. The role of the board of directors and board members 3. Responsibility . reporting.
How can one enforce a governance code? Law Regulation Listing rules Comply or explain Ratings and rankings Recognition/reward systems .