2. WHAT IS ETHICS
Ethics involves a discipline that examines good
or bad practices within the context of a moral
duty.
Moral conduct is behavior that is right or
wrong.
Business ethics include practices and
behaviors that are good or bad.
3. BUSINESS ETHICS
This is The study of proper business policies
and practices regarding controversial issues
such as, corporate governance, insider trading,
bribery,
discrimination,
corporate
social
responsibility .
OR
Business ethics are implemented in order to
ensure that a certain required level of trust
exists between consumers and various forms of
market participants with businesses.
5. SOURCES OF ETHICAL NORMS
Fellow Workers
Fellow Workers
Family
Regions of
Country
Profession
The Individual
Conscience
Friends
The Law
Employer
Religious
Beliefs
Society at Large
5
6. IMPROVING ETHICS IN ORGANIZATION
Senior management
Ethics training
Self-analysis
7. IMPORTANCE OF ETHICS IN BUSINESS
Attract customers to the firm's products, thereby boosting sales
and profits.
Make employees want to stay with the business, reduce labour
turnover and therefore increase productivity.
Attract more employees wanting to work for the business,
reduce recruitment costs and enable the company to get the
most talented employees.
Attract investors and keep the company's share price high,
thereby protecting the business from takeover.
8. GLOBAL AWARD FOR GOOD ETHICAL PRECTICS
Nearly 5,000 companies were nominated–or
nominated themselves–to be considered this year.
The 2012 list, which includes 145 organizations, is
the longest since the award’s inception in 2007.
http://www.forbes.com/sites/jacquelynsmith/2
012/03/15/the-worlds-most-ethicalcompanies/2/
11. WHAT IS CORPORATE GOVERNANCE
The system of rules, practices and processes by
which a company is directed and controlled.
Corporate governance essentially involves balancing
the interests of the many stakeholders in a company these include its shareholders, management,
customers, suppliers, financiers, government and the
community.
12. BENEFITS OF GOOD CORPORATE GOVERNANCE
Improved Reputation
Fewer Fines, Penalties, Lawsuits
Decreased Conflicts and Fraud
Enhanced Performance
Access to Capital
Better Standards
Better Talent Utilization
13. CORPORATE GOVERNANCE IN ORGANIZATION
ITC
Core principals
Trusteeship:
Transparency:
Empowerment and Accountability:
Control:
Ethical Corporate Citizenship:
14. Ensuring timely flow of information to the Board
and its Committees to enable them to discharge
their functions effectively.
A sound system of risk management and
internal control.
Transparency and accountability.
Compliance with all the applicable rules and
regulations.
Fair and equitable treatment of all its
stakeholders including employees, customers,
shareholders and investors.
16. ENRON CORPORATION A CASE OF BAD
CORPORATE GOVERNANCE
Enron was formed in 1985 following a merger between Houston Natural Gas
and Omaha-based Inter North. Kenneth Lay, who had been the chief executive
officer (CEO) of Houston Natural Gas, became Enron's CEO and chairman, and
quickly rebranded Enron into an energy trader and supplier.
By 1993, Enron had set up a number of limited liability special purpose
entities that allowed Enron to hide its liabilities while growing its stock
price.
In August of 2001, shortly after the company achieved $100 billion in
revenues, then-CEO Jeff Skilling unexpectedly resigned, prompting Wall
Street to question the health of the company.
