Business Ethics - 3

BUSINESS ETHICS WAY TO INSTITUTIONALIZE

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INSTITUTIONALIZING ETHICS WITHIN ORGANIZATION  VISION

& MISSION STATEMENT  ETHICALSTANDARDS AND CODES  ETHICS TRAINING  OMBUDSMANSHIP  ETHICS COMMITTEES  ETHICS AUDIT  LEADERSHIP AND COMMITMENT 2

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VISION STATEMENT

To be the happiest place on earth”  Disneyland “ Restoring patients to full life”  Medtronic “ To be the world’s best quick service restaurant”  McDonald 3

MISSION STATEMENT  The

mission statement should be a clear and succinct representation of the enterprise's purpose for existence. It should incorporate socially meaningful and measurable criteria addressing concepts such as the moral/ethical position of the enterprise, public image, the target market, products/services, the geographic domain and expectations of growth and 4 profitability

MISSION STATEMENT

Encompasses both the purpose of the company as well as the basis of competition and competitive advantage 

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Means to realize the organizational vision

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MISSION STATEMENT 

The following are some examples of mission statements from real enterprises.

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(3M) "To solve unsolved problems innovatively"

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(Mary Kay Cosmetics) "To give unlimited opportunity to women."

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(Merck) "To preserve and improve human life."

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(Wal-Mart)" To give ordinary folk the chance to buy the same thing as rich people."

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(Walt Disney)"To make people happy." 6

Mission Statement     

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Customers - who are firm’s customers Product & Services - what are the firms major product & services Markets – geographically where does the firm competes Technology – is the firm technologically current? Concern for survival, growth & profitability– Is the firm committed to growth and financial soundness? Philosophy – What are the basic beliefs, values, aspiration, and ethical priorities of the firm? Self-concept – what is the firm’s distinctive competence or major competitive advantage? Concern for Public Image – is the firm 7 responsive to social, community and

VALUES 

Merck, a company that produces pharmaceutical products and provides insurance for pharmacy benefits, publicly states the following values.

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Corporate social responsibility Unequivocal excellence in all aspects of the company Science-based innovation Honesty & integrity Profit, but profit from work that benefits humanity

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CODE OF CONDUCT AND ETHICAL STANDARDS

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Personal Conduct and Protection of Firm’s Reputation            

Compliance with the Law • Protection of organization’s Interests • Company Policies and Procedures • Delegated Authority Levels • Intellectual Property Procedures • Confidential Information • Accuracy and Integrity of Company Records • Electronic Media Use • Efficient Use of Resources • Conflict of Interest • Insider Trading • Stealing or Misappropriation

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VALUES Walt Disney, an entertainment business states their values as follows.  No cynicism  Nurturing and promulgation of "wholesome American values"  Creativity, dreams and imagination  Fanatical attention to consistency and detail  Preservation and control of the Disney 11 "magic"

Conducting Firm’s Business  Free

Competition, Anti boycott, Embargo and Trade Control Laws  • Improper Benefits, Gifts and Entertainment  • Dealing with Advisors and Regulatory Bodies  • Protection of Private Information  • Media Statements  • Equal Employment Opportunity and Workplace Harassment 12  • Ethical Behaviour

PROCEDURES ETHICAL TRAINING The first thing that all firms should have is written procedures that outline their ethics training program. Acceptable procedures will address:  the topics that will be included in the training program;  by whom the training will be provided;  the format of the training, e.g., classroom instructions, software, etc.;  the frequency with which the Member expects its employees to obtain ethics training; and  how the firm will document that it has followed its written procedures. 13

ETHICAL TRAINING CONTENTS 

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An explanation of the applicable laws and regulations and rules of self-regulatory organizations; The individual’s obligation to the public to observe just and equitable principles of business; How to act honestly and fairly and with due skill, care and diligence in the best interest of customers and the integrity of the markets; How to establish effective supervisory systems and internal controls; Obtaining and assessing the financial situation and investment experience of customers; Disclosure of material information to customers; and Avoidance, proper disclosure and handling14 of conflicts of interest.

ETHICAL TRAINING CONTENTS     

Organization’s code of conduct diversity] Gender related harassment Respect for individual Other related issues

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ETHICAL COMMITTEE (EC)  The

mission of the Institutional Ethics Committee (IEC) is to provide a multidisciplinary forum for the analysis and discussion of ethical standards effecting employees, customers and other stakeholders’ interest.  This mission is fulfilled through the Committee's advisory, educational, policy development, and service functions 16

ETHICAL COMMITTEE (EC)  commitment

to promotion of high ethical standards in all of its operations  cultivate a pluralistic and democratic exchange of ethical values and concerns and to critically analyze that discussion for opportunities to enhance the ethical integrity of the Institution 17

ETHICAL COMMITTEE (EC)  is

charged with assisting the Institution in conducting its customers’ care and business operations within a consistent ethical framework.  assisting the Institution in the integration of ethical values into practice, policy, relationships, and organizational activities.

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ETHICAL COMMITTEE (EC)  identify,

understand, coordinate and facilitate essential ethical principles and their practice throughout the Institution.  Structure: Representation from all groups in the organization

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ETHICAL AUDIT INTERNAL VS EXTERNAL

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OMBUDSMANSHIP

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LEADERSHIP AND COMMITMENT

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QUESTIONS / ANSWERS SESSION

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