...Corporate Ethics: The Moral element of business : Corporate Ethics: The Moral element of business Defining Ethics : Defining Ethics Understanding of right and wrong Ability to distinguish between the right and the wrong. Integral part of life Running a business is a part of life Corporate Ethics : Corporate Ethics Based on principles of integrity and fairness Focuses on - Stakeholders, and employees. Quality of product and services Customer satisfaction. Community and environment Corporate Ethics are implemented to- : Corporate Ethics are implemented to- Define the framework of the acceptable behavior. Follow high standards of practice. Create benchmarks for self evaluation. Enhance sense of community. Create transparency in the business activities. Foster higher standards of business ethics. Comply with government laws and norms. Who is responsible for ethics in the company? : Who is responsible for ethics in the company? “Everyone” An ethical problem can’t be resolved unless it’s first recognized as a ‘dilemma’ : An ethical problem can’t be resolved unless it’s first recognized as a ‘dilemma’ Reward or punishment to ethical integrity and moral courage decide the act of an individual Corporate ethics: The global perspective : Corporate ethics: The global perspective Study by Columbia University 1990 Half of 1,000 business executives admitted being rewarded for taking action on the job that they considered unethical. One in three reported that refusing to take...
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...Corporate Social Responsibility and Ethics Stephen M Russell University of Phoenix International Marketing MK 571 Mr. Danny Rubick June 13, 2011 Abstract Ethics is sometimes described as a body of standards or human conduct that governs the behavior of individuals and groups. Corporate social responsibility (CSR) is the way a company manage the business processes to produce and overall positive impact on society. The three levels of this CSR are economic, legal and ethical. A company needs to be more than economically and legally responsible, it must include ethics and these ethics must be above the bare minimum legal requirements. (Gehrke, 2008) You hear of labor issues, environmental issues and the one this paper will discuss is government corruption. Many companies allow governments to be corrupt and they are allowed to steal from their own people. Such is the case in Nigeria, so PUR Packets will need to be aware of this dilemma and work closely with the government to make sure all business is legal, economical and ethical. Corporate Social Responsibility and Ethics Corporate Social Responsibility is a form of self regulation, conscious attempts and self efforts undertaken by an organization for enhancement of operations. CSR is usually part of a business model and should be part of the marketing strategy. CSR in its best element promotes public interest encouraging community growth and development, and it eliminates practices that harm that...
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...Ethics KEY TERM and WHY YOU ARE INTERESTED IN IT Ethics is the key term chosen this week to research, secondary to the significant relevance ethics plays in all aspects of life. As a child, it was emphasized what was right and wrong, good and bad, to be the best one can be, and to make sure the decisions that are made are based on a common set of values and principles. As an adult, the adherence to these values has played a fundamental role in my own success as a business leader in my profession. EXPLANATION OF KEY TERM The general definition of ethics is ”the discipline dealing with what is good and bad and with moral duty and obligation” (Satterlee, 2009, p. 48). Every culture in the world will have some form of ethics and the society would have a set of values or moral duties and obligations. In some instances, these values may become law. Many of these moral values are based on a religion; for example, Christianity refers to the Ten Commandments, which forms a set of values. Some ethics are secular in nature. In business, ethics plays a major role on how companies act in relation to their core values. A world viewpoint would look at international business ethics as compared to domestic business ethics. The international business ethics would focus on the culture of that society along with their values and core beliefs. With our growing global economy, it is important to understand the ethical duties and obligations for businesses wishing to conduct business...
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...“What is "business ethics"?” Peter F. Drucker Drucker’s work takes a look at what is business ethics and what is not business ethics as it pertains to some of the major approaches taken by philosophers throughout time. No matter what the place in time the code of ethics as it pertains to Western tradition is based solely on one principle. That principle is “There is only one code of ethics, that of individual behavior, for prince and pauper, for rich and poor, for the mighty and the meek alike.” Drucker P. F. (1981). Given this principle what is business ethics or even ethics at all with given the implications that behavior which is neither immoral nor illegal for an individual would be immoral or illegal if committed by business? There seems to be a lack of compatibility with what ethics is supposed to be and business ethics. For example a person handing his money over to a mugger threatening physical harm isn’t considered unethical although the mugger is a criminal but in the business world paying off union racketeers to prevent disruption is considered to be unethical practice. The confusion around ethics in general and business ethics continues when we start looking at other business systems outside of the United States. Take for example the Japanese and German who consider the appointing of a counselor who was previously a distinguished civil servant based on the recommendation of his colleagues is essential to the public interest. However, if this practice were to...
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...49The term ‘Clause 49’ refers to clause number 49 of the Listing Agreement between a company and the Stock Exchanges on which it is listed. The Listing Agreement is identical for all Indian Stock Exchanges, including the NSE and BSE. This clause is a recent addition to the Listing Agreement and was inserted as late as 2000 consequent to the recommendations of the Kumar Mangalam Birla Committee on CG constituted by SEBI in 1999. Clause 49, when it was first added, was intended to introduce some basic CG practices in Indian companies and brought in a number of key changes in governance and disclosures (many of which we take for granted today). In late 2002, the SEBI constituted the Narayana Murthy Committee to “assess the adequacy of current corporate governance practices and to suggest improvements.” Based on the recommendations of this committee, SEBI issued a modified Clause 49 on October 29, 2004 (the ‘revised Clause 49’) which...
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...A HISTORY OF BUSINESS ETHICS The history of “business ethics” depends on how one defines it. Although the term is used in several senses and varies somewhat for different countries, its current use originated in the United States and became widespread in the 1970s. The history of business ethics in the United States can be viewed as the intersection of three intertwined strands. Each of these in turn can be divided into at least two related branches. The first strand, which I shall call the ethics-in-business strand, is the long tradition of applying ethical norms to business, just as it has been applied to other areas of social and personal life. This strand can be divided further into the secular and the religious branches. The second strand is the development of an academic field, which has been called business ethics. It also has two main branches, one being the philosophical business-ethics branch, which is normative and critical, and the other the social-scientific branch, which is primarily descriptive and empirical. The third strand is the adoption of ethics or at least the trappings of ethics in businesses. This again subdivides into the integration of ethics into business and business practices on the one hand and the commitment to corporate social responsibility on the other. Business ethics was introduced into Europe and Japan in the 1980s although the term did not translate easily, and the development in each country varied from that in the United States because...
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...the International Business Ethics Gabriela Dubcová* ABSTRACT The ethics triangle: national law, culture and political economic system. Key factors of current ethics issues in an international environment. The most visible changes in environment dimensions. Principles of international business ethics. Current ethics challenges in international environment. Common issues of the international business ethics. Comparison of ethical standards in different cultures. Accelerating development of globalization and assimilation between Europe and the USA. Differences between Europe, the United States and Asia in the business ethics perspective. Development processes of global business ethics. Levels of global business ethic level. Principle of normative guidelines for business conduct of multinational corporations. Current functioning of institution engaged in the international business ethics. Key words: The ethics triangle; Current ethics issues; International business ethics; Ethical standards; Global business ethics; Institution engaged in the International Business Ethics. JEL classification: K2, M1 Introduction The present economic situation in the globalized world generates very efficient processes in international companies with large profits for managers but with a relevant risk in economic and noneconomic ambit to eliminate any negative impacts of the crisis from one country to another. In this case, it is necessary to enact and apply ethics principles in international...
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...TERM PAPER Deteriorating Ethics and Values in Organizations: In the face of Indian Reality - VATSAL DUSAD 2010TT10971 ”Integrity has no need of rules.” --Albert Camus Ethics and Values in the context of organizational culture have been a topic of intense research and arguments over a long period of time, and it has also been recognized as a very important aspect of organizational behavior. In this paper, I would be discussing the deteriorating ethics and values in organizations. I would begin with elaborating what ethical culture means, then taking it over to highlighting its need, pondering over the reasons -‐ so as to why unethical culture prevails and then study about ethical leadership. I would like to conclude by, bringing it to Indian context and laying down a discussion -‐ on how prominent and prevalent is this issue in our own land. There has been a sudden rash of corporate scandals and the...
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...The Importance Of Corporate Ethics and Values: Building a Sustainable Strategy Model for Effective Implementation of Good Corporate Governance within a State-Owned Enterprise in South Africa. A Research Study Presented to the Graduate school of Business Leadership University of South Africa In Fulfillment of the Requirements for the MASTERS DEGREE IN BUSINESS LEADERSHIP UNIVERSITY OF SOUTH AFRICA Prepared by Lazarus Docter Mokoena (called Bonga) [Student No: 0555-418-7] Tel: 011-217 1187 (Work); 011-679 5486 (Home) Cell: 082 466 6896 SUPERVISOR: PROFESSOR M.H. CROSBIE FINAL RESEARCH REPORT November 2005 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................. 4 CHAPTER 1 ............................................................................................... 8 1. 1.1 1.2 1.3 1.4 1.5 1.6 INTRODUCTION................................................................................. 8 ESKOM’s COMPANY BACKGROUND ................................................ 8 ESKOM’s BUSINESS CONDUCT POLICY .......................................10 PURPOSE OF THE RESEARCH .......................................................12 PROBLEM STATEMENT .................................................................14 IMPORTANCE AND BENEFITS OF STUDY .....................................17 RESEARCH PROPOSITIONS AND HYPOTHESIS ...........................18 1.6.1 Propositions ...................................
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...IMPORTANCE OF BUSINESS ETHICS published: Sunday | April 11, 2004 [pic] [pic] FITZ-RITSON and LOPEZ Ayanna Kirton, Staff Reporter IN RECENT years the term 'business ethics' has taken on new relevance in the wake of accounting scandals that have discredited some of the world's largest and well-respected companies. The list includes WorldCom (now MCI), Tyco International, Parmalat, and Enron whose financial executives have faced charges and possible jail time for financial misdeeds. Now, the Business Roundtable (BRT) aims to restore public confidence in Corporate America with a US$3 million initiative to educate future CEOs on business ethics. According to an article published by Business Week, on January 14, 2004, the BRT, an association of 150 chief executive officers of leading United States companies, announced it was creating a new business-ethics centre. The Business Roundtable Institute for Corporate Ethics will be housed at the University of Virginia's Darden Graduate School of Business Administration. The BRT hopes to deflect criticism of CEO excesses by developing a business school ethics curriculum as well as train executives and conduct research. Ethics education and training are important elements in the creation of ethically sensitive business cultures. In a presentation on Jamaican Business Ethics, Dr. Michael Witter, senior lecturer and head of the Department of Economics at the University of the West Indies (UWI), said to understand business ethics, a clearer understanding...
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...responds to whom? Corporate Culture and the question of communicating Responsibility Ludger Heidbrink, Peter Seele Working Papers des CRR Nr. 2/2007 ISSN 2190-5398 www.responsibility-research.de Who responds to whom? Corporate Culture and the question of communicating Responsibility Ludger Heidbrink, Peter Seele Nr. 2/2007 ISSN 2190-5398 2 Who responds to whom? Corporate Culture and the question of communicating Responsibility Prof. Dr. Ludger Heidbrink Prof. Dr. Dr. Peter F. Seele CRR (Center for Responsibility Research) Kulturwissenschaftliches Institut, Essen Outline There are as many opinions on business and ethics as there are statements. In this paper we present the major positions in this ongoing and increasing debate and categorize them according to their ratio as business or ethics, business and ethics and finally ethics in business. In this paper we also present the view, that ethical issues are not separated but connected from business in terms of making profit. We also argue against a strong normative idea of business ethics claiming social responsibility as objective for corporations. After introducing the most common concepts to manage ethics (Corporate Social Responsibility (CSR) and Corporate Citizenship (CC)), we identify Corporate Culture as crucial parameter to combine business and ethics by the notion of responsibility. Spheres of corporate responsibility: formal and informal institutions The wording in corporate ethics is of major...
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...Introduction Codes of ethics Code of ethics is widely accepted in an organization or company. Many business adopted code of ethics at this present days. So, its adaptors are steadily increasing over past two decade. The research of Mark John Somers characterized codes of ethics into several themes representing distinct lines of inquiry. One theme concern in promoting ethical behavior in organization and second one is prevalence; which mean which codes have been adopted in specific countries. (e.g white and Montgonery, 1980) or industries (e.g Berenbeim, 1992). And the last is emergent theme which concerns the influence of codes of ethics on employee in an organization. Codes of ethics define moral idea essence of an organization or company. A code need to be simple and easy to understand that unites employee regardless of their particular religious, sex, location, race and ethnicity. The tone of code is important. There are six moral values of codes of ethics review by corporate, global codes of ethics, Business ethics are as follows: * Trustworthiness * Responsibility * Respect * Caring * Fairness * Citizenship Codes of conduct A code of conduct expands on the principles embodied in code of ethics. Codes of conduct have to address all the legal expectation and ethical risks suit to organization or company or job title. Codes of conduct have to be revising when the issues arise in the organization. The NYSE address seven topics of codes they...
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...2010, ‘The business case for corporate social responsibility: a review of concepts, research and practice’, International Journal of Management Reviews, vol. 2, no. 2, pp. 85-105.Garriga, E. and Melé, D. 2004, ‘Corporate social responsibility theories: mapping the territory’, Journal of Business Ethics, vol. 53, no. 1-2, pp. 51-71. | Corporate Social Responsibility | 3 | Argandona, A. 1998, ‘The stakeholder theory and the common good’, Journal of business ethics, Vol. 17, pp 1093-1102.Burke, L. 1996, ‘How corporate social responsibility pays off?’, Long Range Planning, Vol.29, No 4, pp 495 – 502. | Corporate Social Responsibility | 4 | Morrison, J. 2011, The global business environment: meeting the challenges, 3rd ed., Palgrave Macmillan, Basingstoke. Palmer, A. and Hartley, B. 2009, The business environment, 6th ed., McGraw-Hill Higher Education, London. | The Economic Environment | 5 | Heywood, A. 2004,Political theory, 3rd ed., Palgrave Macmillan, New York. | The Economic Environment | 6 | Parkin, A. and Hardcastle, L. 2010, 'Government-business relations' in A. Parkin, J. Summers and D. Woodward (eds.), Government, politics, power and policy in Australia, 9th ed., Pearson Education Australia, Sydney, pp. 351-371.Ryan, N., Parker, R. and Brown, K. 2003, Government, business and society, 2nd ed., Pearson Education Australia, Frenchs Forest. | The Political Environment | 7 | Wiedenbaum, M. 2004, ‘Business and government in the global marketplace’...
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...Business ethics is the most debated topic of our times. The difference is between doing the right thing and the wrong thing. Business ethics are the philosophical core of any business and their outcome is crucial for economic development. Peter Cooper – the great American Investor says "I have always recognized that the object of business is to make money in an honorable manner. I have endeavored to remember that the object of life is to do good." Business ethics are more than moral values and principles that determine our conduct in the business world. It refers to the commercial activities, either with other business houses or with a single customer. They can be applied to all aspects of business; from generation of an idea to its sale. Business uses the society for its resources and functioning, thereby obligating it to the welfare of the society. While the objective of all business is to make profits, it should contribute to the interest of the society by ensuring fair practices. However, greed has led the present business scenario towards unethical business practices, legal complications and general mistrust. Code of Ethics Lot of organizations implement the code of ethics in their company polices, which they implement during induction and regular training. A Code of Ethics is generally a more blanket statement of values and beliefs that defines the organization. So what is it for? * Company's assets, funds and records * Conflict of interest ...
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... In a business context, customers, investors and shareholders, employees, suppliers, government agencies, communities, and others who have a “stake” or claim in some aspect of a company’s products, operations, markets, industry, and outcomes are known as stakeholders. 1. Stakeholders are influenced by business, but they also have the ability to affect businesses. 2. They apply their values and standards to many diverse issues—for example, working conditions, consumer rights, environmental conservation, product safety, and proper information disclosure—which may or may not directly affect an individual stakeholder’s own welfare. 3. They provide both tangible and intangible resources that are more or less critical to a firm’s long-term success. 4. Individual stakeholders that share similar expectations about desirable business conduct may choose to establish or join formal communities to advocate their values and expectations. 5. Stakeholders’ ability to withdraw—or to threaten to withdraw—valuable needed resources gives them power over businesses. B. Identifying Stakeholders 1. Stakeholders can be divided into two categories. a) Primary stakeholders are those whose continued association is absolutely necessary for a firm’s survival; these include employees, customers, investors, and stockholders, as well as the governments and communities that provide necessary infrastructure. b) Secondary stakeholders...
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