BUSINESS ETHICS & CORPORATE GOVERNANCE

Presented by- Sunil & Abhishek

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.

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.

4

ETHICAL ISSUES IN BUSINESS

Employee-Employer Relations

Employee-Employee Relations

Company-Customer Relations

Company-Shareholder Relations

Company-Community/Public Interest

5

SOURCES OF ETHICAL NORMS

Fellow Workers

Family

Friends

The Law

Regions of Country

Profession

Employer

Society at Large

Fellow Workers

Religious Beliefs

The Individual

Conscience

IMPROVING ETHICS IN ORGANIZATION

Senior management

Ethics training

Self-analysis

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.

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/2012/03/15/the-worlds-most-ethical-companies/2/

ORGANIZATION WITH GOOD ETHICAL PRACTICES

CORPORATE GOVERNANCE

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.

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

CORPORATE GOVERNANCE IN ORGANIZATION ITC

Core principals Trusteeship:

Transparency:

Empowerment and Accountability:

Control:

Ethical Corporate Citizenship:

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.

ORGANIZATION WITH GOOD CORPORATE GOVERNANCE

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.

SOME MORE ORGANIZATION WITH BAD CORPORATE GOVERNANCE

CONCLUSION

THANK YOU