Business Ethics - A Way To Success

Business Ethics The Way to Future Success

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The External Environment

Suppliers

Customers

The Organization Public Pressure Groups

Competitors

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Organizational Stakeholders

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ORGANIZATIONAL ETHICS ETHICS Study of decision

ETHICAL BEHAVIOUR Conduct that is considered “right” or “good” in the context of a governing moral code

making within the framework of a system of moral standards

UNETHICAL BEHAVIOUR Conduct that is considered “wrong” or “bad” in the context of a governing moral code 14

What is Ethics? (in business and professional fields) 

Ethics = process of determining how one should balance the interests of various stakeholders, taking into account moral values/ principles

Competitors

Supplier s

Customer s Profession

Environmen t Employer

Fellow workers Own interest

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Problems Identification        

Conflicts of interest Bribery Gifts and Gratuities improper use of company resources Management dishonesty practices Responsibility Preferential treatment Falsification … 16

How do these malpractice affect a company?

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How do these malpractice affect a company?  Costly  Risky

– Tarnishing one’s reputation – Incurring civil damages, administrative fees, criminal sanctions – May cause the firm fading away with the corrupt officials 18

How do these malpractice affect a company? 

They affect the firm itself ‒ Corruptive practices are imported ‒ Employees are not motivated to care about quality ‒ The company is no longer able to develop

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How do these malpractice affect a company? 

Deadly impact on national economy – Diminishes the ability to compete at international market – Makes economy unstable

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How do these malpractice affect a company?  Prevent

investors from making investments into national markets thereby – Limiting growth and development – Weakening the country’s ability to compete for global capital – Creating a “black PR” for the country 21

What is the role businesses can play in combating unethical practices?

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What is the role businesses can play to combat unethical practices?

 Good

governance

 Corporate

social responsibility (CSR)

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What is good governance?  Participation

(gender equality, due regard

to minorities)  Rule of law (compliance)  Transparency (disclosure of information)  Responsiveness (stakeholders are served in a satisfactory and timely manner)

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What is good governance?  Consensus

oriented (employees and employers try to act in the best interest of all concerned)  Equity and inclusiveness (employees feel to be part of the company)  Effectiveness and efficiency (best use of resources)  Accountability (feeling responsibility before those who may be affected by the company’s decisions) 25

What is CSR ? “CSR is about how companies manage the business processes to produce an overall positive impact on society.”

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What is CSR?  "Corporate

Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large 27

SOLUTION Business ethics: The way to put end to unethical practices

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Business Ethics: Common Values:  Honesty  Integrity  Respect  Trust  Responsibility

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Some reasons of having business ethics  To

define acceptable behaviors  To promote high standards of practice  To provide a benchmark for members to use for self-evaluation  To establish a framework for professional behavior and responsibilities  As a mark for occupational maturity 30

Benefits of managing ethics programmes  Cultivate

strong teamwork and productivity  Support employee growth and meaning  An insurance policy – they help ensure that policies are legal  Help avoid potential misconduct 31

Benefits for managing business ethics programmes  Help

manage values associated with quality management, strategic planning and diversity management  Promote a strong public image  Strengthens coherence and balance of the organization’s culture And, the last but the most … 32

Why ethics ? Why now ?  Globalization

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– Global values – Global believes – Global behavior

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