Business Ethics

The Way to Future

Success

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The External Environment

Suppliers Customers

The
Organization

Public
Pressure Competitors
Groups

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Organizational Stakeholders

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 ORGANIZATIONAL ETHICS

ETHICS
Study of decision

ETHICAL making within the

UNETHICAL
framework of a system of
BEHAVIOUR BEHAVIOUR
moral standards
Conduct that is
Conduct that is
considered
considered
“right” or “good” in
“wrong” or “bad” in
the context
the context
of a governing moral
of a governing moral
code
code

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 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

Supplier Environmen
s t
Competitors
Employer

Customer Fellow workers

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Profession Own interest
Problems Identification
 Conflicts of interest
 Bribery
 Gifts and Gratuities
 improper use of company resources
 Management dishonesty practices
 Responsibility
 Preferential treatment
 Falsification
…
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 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

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 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?
 Preventinvestors 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

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 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)
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 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

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 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

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 Benefits of managing
ethics programmes

 Cultivatestrong teamwork and

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

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 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 …

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 Why ethics ? Why now ?

 Globalization :
– Global values
– Global believes
– Global behavior

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