...Topic 1: Business codes are the most effective instrument for preventing unethical behavior in the workplace. Business codes are widely used globally to prevent unethical means in the organization, an increasing number of companies have adopted business code ethics, 52.5% of Fortune Global 200 companies in 2004 (Kaptein, 2004) compared to 87% of Fortune Global 200 companies in 2008 (KPMG, 2008). Business codes are a set of official document disclosed by and for a business firm to guide the behavior of managers and employees (Kaptein and Schwartz, 2008). The business code prescribed are related to matters such as human rights, labor conditions, ecological environment, confidential information, conflict of interests, fraud, corruption, product quality, profits, sexual harassment and competitions (Kaptein, 2011). Business codes ethic (BCE) are the fundamentals for corporate social responsibility (CSR) which are used to appraise companies for ethical performances and citizenship. Organizations with excellent CSR are rewarded with fame and reputations (Patick M., 2011), thus leading to better sales and company’s stock price (Ron Robins, 2011). However, business code and CSR appraisal can only prevent unethical behavior in the organization to a certain extent. For example, 15% of Ernst & Young’s executives were prepared to commit unethical conducts to win businesses even though the company implemented business codes (Christopher M., 2012). In this context, business codes without strong...
Words: 297 - Pages: 2
...industry. Riordon Manufacturing is a conscious organization with high ethical standards. There are several ethical issues Riordon Manufacturing faces in the daily operations of the business. The three important ethical issues with Riordan manufacturing is code of conduct, commitment of safety for the employees, community and society, and safety for the environment. The Code of Conduct Code of Conduct is a critical piece of business ethic practices. The code of conduct is based on the principles and values of the organization. Corporate codes of conduct are a practical corporate social responsibility (CSR) instrument commonly used to govern employee behavior and establish a socially responsible organizational culture (Erwin, 2011, p. 535). Riordon Manufacturing is aware that codes of conduct affect the organizational culture by governing the actions and conduct of employees through the promotion of ethical business practices, thereby avoiding legal consequences. Riordon has invested in training programs to educate the employees of business ethics, and practices of their organization. Because of the diversity of the workforce at Riordon, management has to prepare an effective code of conduct, workplace standards, and regulations for all its employees to follow (Brenkert, 2010, p. 703). The code of conduct also ensures that the company is performing ethically within and outside the organization and ensures the organization is performing ethically internally and externally...
Words: 808 - Pages: 4
...http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) Table of content 1. Question 1 1. Introduce to Corporate Governance 2. Governance makes a Difference 3. Failures of Corporate Governance 4. Failures in Major companies 5. Reform of Corporate Governance 6. Conclusions 2. Question 2 1. Introduce to Cadbury Report 2. Conclusions 3.0 References Question 1 Based on the above it has been stated that “the problem is not a failure to comply with rules but a failure in governance practice”. Do you agree and why? (10 Marks) Introduce to Corporate Governance Corporate governance looks at issues pertaining to transparency, integrity, effectiveness and accountability in the management of the affairs, and all other activities of an organization. Management is concerned with the company’s operations, functions and financial performance; hence, corporate governance aims to involve the quality assurance of the operation of the board itself. The concern is for the welfare, good performance, corporate ethics and morality, as well as social and public responsibility for the good corporate citizenship. Corporate governance also involves in system to ensure that the organization’s obligations to its major stakeholders. The relationship among the many stakeholders and the way of corporation is directed and governed is therefore created. Stakeholders might include customers, employees, creditors...
Words: 8715 - Pages: 35
...A code of professional conduct is an essential factor that contributes to an effective business environment, and overall business success. In accounting, a code of conduct is vital due to the sensitivity and exposure of confidential information. When there’s a lack of compliance to the code of ethics, there is a greater chance/opportunity for crimes to begin to engage. Some examples of the biggest crimes in regards to businesses involve the Enron case, a case concerning an energy company declaring bankruptcy after keeping huge debts off their balance sheet (para. 10). This also caused a lot of chaos in the stock market. Another case is the one involving WorldCom, where assets were inflated, which eventually lead to the internal auditing department uncovering fraud (para. 17). These cases display why a code of conduct is essential in the business environment. The American Society of CPA’s (AICPA) has a professional code of conduct that Certified Public Accountants (CPA) must abide by while engaging in their practice. The code of conduct consists of rules a CPA should adhere by when engaging in services with their respective client(s). It also explains how to appropriately handle certain situations. If a CPA violates the code of professional conduct, they are subject to disciplinary actions, which in include being terminated as a CPA, suspension, and having your wrongful action posted to the website for a certain amount of time allowing people of the public to view. The AICPA...
Words: 1130 - Pages: 5
...AND EXCHANGE COMMISSION SEC Building, EDSA, Greenhills Mandaluyong City SEC Memorandum Circular No. 6 Series of 2009 REVISED CODE OF CORPORATE GOVERNANCE Pursuant to its mandate under the Securities Regulation Code and the Corporation Code, the Securities and Exchange Commission (the “Commission”), in a meeting held on June 18, 2009, approved the promulgation of this Revised Code of Corporate Governance (the “Code”) which shall apply to registered corporations and to branches or subsidiaries of foreign corporations operating in the Philippines that (a) sell equity and/or debt securities to the public that are required to be registered with the Commission, or (b) have assets in excess of Fifty Million Pesos and at least two hundred (200) stockholders who own at least one hundred (100) shares each of equity securities, or (c) whose equity securities are listed on an Exchange; or (d) are grantees of secondary licenses from the Commission. Article 1: Definition of Terms a) Corporate Governance – the framework of rules, systems and processes in the corporation that governs the performance by the Board of Directors and Management of their respective duties and responsibilities to the stockholders; b) Board of Directors – the governing body elected by the stockholders that exercises the corporate powers of a corporation, conducts all its business and controls its properties; c) Exchange – an organized market place or facility that brings together buyers and sellers, and executes...
Words: 6584 - Pages: 27
...CODE OF ETHICS Compliance is the responsibility of all the Company’s directors, officers, managers, and employees.(Capital One,2011). One is responsible for learning the details of the policies, procedures, laws and regulations applicable to one's job and for seeking guidance when needed. It is important to avoid misconduct that violates the law, this Code, or Company policies, but also the appearance of impropriety. The point, which a subject is not explicitly explained in this Code, does not relieve an employee of their responsibility to maintain the highest ethical standards under all circumstances. If one has any concern about whether their actions or inactions could violate a law, it should be discussed with their manager. While no Code of Ethics can or should replace thoughtful behavior or common sense, it can help cultivate a culture that values and rewards honesty, integrity, and accountability. (Avon, n.d.). The principles detailed in the Code will guide in “doing the right thing” and in preserving the Company’s reputation for acting with integrity at all times. TRADE REGULATION Most states have enacted trade regulation laws to ensure fair competition. These laws prohibit price-fixing and other "anti-competitive agreements, deceptive acts, and unfair competitive methods." (Pension Consulting, n.d.). Some forms of joint activities are legally permissible, but others are not. Under no circumstances, should you illegally or improperly...
Words: 2229 - Pages: 9
...Elizabeth Electronics Ethics Case Introduction: Elizabeth Electronics is facing an issue that can cause the business to lose its credibility and reputation. The company has received many complaints from customers regarding its LCD TV’s products. Our employees are violating the code of ethics, causing the company’s TVs to overheat after a period of time approximated to be one year and two months, after the one year warranty expires. After investigations, we discovered that some materials were causing this problem to arise. Employees covered up this issue during testing to ensure a fast production and strength their ability to compete with other companies. However, the company received many negative comments and bad views from the media, and lost many customers as a result. People who are conducting any sort of business should follow a moral code known as business ethics. We are responsible to follow this code of ethics and should never cheat under any circumstances. Business ethics are applied in almost every business to ensure that a certain level of trust will exist between the customers and the business. Integrity, Honesty, fidelity, charity, responsibility, and self-discipline are some values that are considered as part of the Business ethics. We have to take responsibility and rectify this Issue in order to improve our image and our ethical performance Our priority now is to initiate a well implemented ethical program in order to improve the ethical culture of...
Words: 1182 - Pages: 5
...ethical business behaviour to build a strong public image to garner the support of consumers and employees. Although practicing good business ethics has many benefits, it remains as a constant challenge for organisations, as the potential for unethical behaviour is illimitable. In recent years, the cases of corporate misconduct in Singapore have been on the rise. In June 2011, Deputy Prime Minister Teo Chee Hean announced that commercial crimes, including fraud and cheating, rose by 13% as compared to 2010 (Othman, 2012). As most organisations have established codes of ethics to guide their employees regarding their ethical responsibilities, the imperative issue here is how effective is the code of ethics in regard to instilling ethical behaviour. In this essay, we will firstly look at the definition of ethical behaviour and an overview of the ethics program. Next, the effectiveness of the code of ethics and the criteria for it to be effective will be addressed. Lastly, a conclusion will be made to determine if the code of ethics is the most effective method for instilling ethical behaviour. Ethical Behaviour in Organisations Ethics as according to Wood, et al. (2006) can be defined as a behavioural code that explains what is good and right, as opposed to bad and wrong at any given situation. It is essentially a system of moral duty and obligation based on the values of the individual. Business ethics refers to the principles and standards in a business setting...
Words: 2402 - Pages: 10
...initiatives which will result in improvements in operational performance of the company. Sears Holdings Corp. follows all the risk factors that could adversely affect their business, which are the results of operations and financial condition. The management determines the actions to take to try to cut down the risks which can negatively impact their business. Yes, Sears Holding Corp. conduct the audits in accordance with the Public Company Accounting Oversight Board (United States) standards. Those standards require that the entity should do planning and should perform the audit in order to obtain reasonable assurance about whether the financial statements of the entity are free of any material misstatement or not. Yes, the internal audit function has a charter. It helps the Board in overseeing the various functions-...
Words: 611 - Pages: 3
...benefits that the customer will be able to receive. We will build this relationship over time, using advertising in addition to all other communications, including the way employees are trained to interact with customers. FTGE will focus on the company’s short term goals by building a customer base and getting the word out about our services. We want to let the consumers know that they can leave the shopping to us and rest assured that all of the freshest and finest ingredients that are needed to prepare their meals will be delivered right to their door without the hassle of stopping in traffic when they are just ready to get home to end their day. 2. Discuss how the effectiveness of the advertising will be measured. There are several ideas that we have to use to determine the effectiveness of our advertising. Once a sale is completed online and delivered to the consumers’ address of choice, we will send an online survey to the email address provided in the transaction and promote a coupon referring to a certain dollar amount good for use on their next purchase. Also, while we are...
Words: 985 - Pages: 4
...The University of Pikeville Business Administration Program Assignment for Couse: BUS 583 Contemporary Issues in Business Submitted to: Dr. Kossuth M. Mitchell Submitted by: Devon Akers, Jan Hunt, Kandi Justice and Ray Justice Date of the Submission: April 10, 2013 Title of Assignment: Case Decision Making Paper- Red Cross CERTIFICATION OF AUTHORSHIP: We certify that we are the authors of this assignment and that any assistance we received in its preparation is fully acknowledged and disclosed herein. We have also cited any sources from which we used data, ideas or words, either quoted directly or paraphrased. We also certify that this assignment was prepared by us specifically for this course. Student’s Signatures ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ Table of Contents Definition of Problems 3 The Lack of Ethical Culture and Stakeholder Orientation 4 Low Board’s Professionalism 5 Poor Trust and Excessive Emphasis on Marketing 5 Identification of Possible Action Alternatives 6 Analysis of Each Alternative 7 Doing Nothing 7 Hiring a New Board of Directors 7 Developing a New Code of Conduct 8 Developing a New Organizational Strategy to Reconstruct...
Words: 4100 - Pages: 17
...effective way to monitor those plans. As you are aware, consumers and partners want to work with companies they can trust, and having a program that will build management skills and effectively structure business controls is a great way to become transparent and build that trust. Overall, an effective ethics and compliance program will protect the organization by identifying and preventing inappropriate conduct while promoting adherence to the legal and ethical responsibilities of the organization. The core components of the proposed ethics program will include: * Establishing Standards and Procedures – this will include code of conduct, policies and procedures * Training and Education, to ensure employees are trained on the code of conduct, policies and procedures and other programs and objectives that are relevant to the program * Monitoring, Auditing and Evaluation establishing a system to detect and prevent unethical conduct and to ensure the system is effective and being adhered to. To close, with the establishment of an effective ethics programs will not only decrease potentially exorbitant fines, but reduce system vulnerability, improve the organization’s reputation and, increase employee commitment and trust. Introduction As personal, business and government activities continually advance technologically, as does criminal activity. Cybersecurity is a grave concern for corporate leaders. Cyber-attacks on a global scale are...
Words: 1669 - Pages: 7
...The Effectiveness of Code Reuse Aaron Gutterman PGR/211 10/25/2013 Ed Torres The Effectiveness of Code Reuse Code reuse in the real world is difficult because it is rare to find code that really is suitable to reuse. Code usually falls just short of doing what you need it to do, and (if it is coming from some external source) it usually comes with licensing tangles that prevent you from just fixing what you need to. Not to mention the business model that is based around providing a product that does the same thing as a competitor's product, but does it a little better. Security of Code Security is a very large concern for anyone who is writing code for a program. When a programmer writes a code for any program they must insure that the program is resistant to attack by malicious or destructive intruders . Secure coding helps protect a user’s data from theft or corruption. If a program is not properly secured it can provide access for an attacker to take control of a server or a user’s computer, resulting in anything from complete program failure to gaining personal information of anyone on a server or connected to the program . Every program is at risk, everyday programs are hacked into and exploited because of the error in the programs coding. On the other hand the level of security and user awareness has also gone up. One system that has seem impenetrable to any attacks is OSX. The reason that Apple has had so much success...
Words: 582 - Pages: 3
...demonstrate respect, responsibility, fairness, and caring, and are consistent with good citizenship. Ethics is effective in guiding the organizations objectives as they relate to the corporate strategy. The case study; is about the mercantile and ranching industry leader Babbitt Ranches for analyzes of the ethics within the family business as it relates to their corporate strategy. It was the challenge of President Bill Comdisco to lead the organization in new business opportunities that were inclusive of the companies long standing values. Mr. Cordasco recognized that the future of the organization was contingent upon meeting the needs of the multigenerational stakeholders. The article highlights several challenges that Babbitt Ranch experience in an attempt to align the organization's objectives with the organizational strategy through team decisions. Points of Agreement In 1988, the company was forced to debt finance stock buy from some of the third generation owners seeking liquation of their share of the business. The buyback creates debt for the organization, ultimately forcing the company to sell off most of the retail business in assets. I believe that this was a difficult decision for the stakeholders; yet I agree that it was the only acceptable alternative. Without the stock but out of some of the 3rd generation family stockholders the families ability to make...
Words: 1210 - Pages: 5
...Club IT, Part 1 Linda Shellgren BIS/219 April 3, 2011 Nabih Zourob Club IT, Part 1 Club IT is a downtown nightclub catering to all ages of people who enjoy different types of music. The music selection changes each month and includes local bands, world DJs, NYC bands, open mike, country, San Francisco bands, alternative, R&B, hip-hop, Latin, jazz, and folk (WileyPlus, 2009). The IT department maintains a computer-based Information Systems (IS) department because the system collects and maintains all data on a computer. The IT department will collect, process, store, analyze, and disseminate the company information to keep the owners up-to-date on the company’s revenue and expenses. The owners of Club IT are Ruben Keys and Lisa Tejada. Mission Statement The owners of Club IT mission statement is “We, Ruben and Lisa, offer you live music, DJ's, dance space and refreshments that suit your lifestyle. You are our friends, and we seek to build a community that meets regularly at Club IT" (WileyPlus, 2009). The remodeled club occupies about 6,000 square feet of space with a 600 square foot dance floor, seating for 220, a kitchen for appetizers and short orders, and a bar with four pour stations (WileyPlus, 2009). Information Services Club IT has a full description Internet website for customers to check out the facility before they arrive at the club. It also has an employee intranet available. The Information systems (IS) department will maintain...
Words: 1253 - Pages: 6
