business ethics strama
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Business EthicsAbigan, PaulIgot, Sarah
What is business ethics?
set of principles of conduct within organizations that guide decision making and behavior
“Good business ethics is a prerequisite for good strategic management; good ethics is just good business!”
Business Ethics and Strategists
There is a rising tide of consciousness about the importance of business ethics
Strategists (e.g. CEOs and business owners) are individual primarily responsible for ensuring that high ethical principles are espoused and practices in an organization.
All strategy formulation, implementation and evaluation decisions have ethical ramifications
Business Ethics and Strategists
being unethical can be expensive (examples: fake medical study, misleading advertising and labeling, causing environmental harm, poor product or service safety, padding expense accounts, insider trading, dumping banned or flawed products in foreign markets, not providing equal opportunities to women and minorities, overpricing, moving jobs overseas, sexual harassment)
Code of Business Ethics
Examples of unethical activities that plague online commerce:
1. internet fraud
2. hacking into company computers
3. spreading viruses
4. identity theft
Code of Business Ethics
due to ethical issues related to product safety, employee health, sexual harassment, AIDS in the workplace, smoking, acid rain, affirmative action, waste disposal, foreign business practices, cover-ups, takeover tactics, conflicts of interest, employee privacy, inappropriate gifts, security of company records has accentuated the need for strategists to develop a clear code of ethics
Code of Business Ethics
A document that provides behavioral guidelines that cover daily activities and decision within an organization
merely having a code of ethics is not sufficient to ensure ethical business behavior
periodic ethics workshops are needed to ensure that the code is read, understood, believed and remembered
punishments for violating and reward for upholding a code can reinforce the firm's business ethics
Ethics Culture and Role of Strategists and Managers
ethics cultures needs to permeate in an organization
many organizations have developed a code-of-conduct manual outlining ethical expectations and giving examples of situations that commonly arise in business
Whistle-Blowing – policies that require employees to report any unethical violations they discover or see in the firm
Heidi Mendoza – Carlos Garcia Plunder case
George Rabusa – Pabaon controversy
Jun Lozada – NBN-ZTE controversy
Clarissa Ocampo – Jose Velarde Erap Plunder Case
Vidal Doble – Hello Garci scandal
Local examples of whistleblowing
Ethics Culture and Role of Strategists and Managers
Ethics Culture and Role of Strategists and Managers
strategists take the moral risks of the firm, thus they are responsible for developing, communicating, and enforcing the code of business ethics for their organization
managers also have an integral part, to provide ethics leadership by constant example and demonstration.
Because managers are in the position to influence and educate people, it is their responsibility to develop and implement ethical decision making
“Trees die for the top.” - no one should ever become a strategist unless he or she is willing to have his or her character serve as the model for subordinates
Ethics and Strategic Decision Making
history has proven that the greater the trust and confidence of people in the ethics of an institution or society, the greater is its economic strength
more and more firms believe that ethics training and an ethics culture create strategic advantage
ethics training programs should include messages from CEO or business owners emphasizing ethical business practices. The development and discussion of codes of ethics, and procedures for discussing and reporting unethical behavior
Ethics and Strategic Decision Making
firms can align ethical and strategic decision making by incorporating ethical considerations into longterm planning, integrating ethical decision making into performance appraisal process, encouraging whistle-blowing, monitoring departmental and corporate performance using ethical issues
Bribery
Bribery
Bribery is the act of offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty
Bribe is gift bestowed to influence a recipient's conduct (can be money, good, right in action, property, preferment, privilege, emolument, object of value, advantage, or merely a promise or undertaking to induce or influence the action, vote or influence of a person in a official or public capacity
Bribery under Philippine constitution
Can be found in:
Revised Penal Code TITLE VII
CRIMES COMMITED BY PUBLIC OFFICERS
Chapter 2 MALFEASANCE AND MISFEASANCE IN OFFICE section 2
http://www.dpwh.gov.ph/about_us/reforms/graft_n_corruption/pdf/Revised%20Penal%20Code1.pdf
Love affairs at work
many firms have policies that prohibit relationships between superior and subordinate
other firms require individuals to inform their supervisors whenever there is a romantic relationship begins with a coworker
Love affairs at work
for european firms, romantic relationships are viewed as personal matters and most firms have no polices but they are increasingly adopting explicit, American style sexual harassment laws (example of an explicit, american style sexual harassment law?)
Example: World Bank regard sexual relations between managers and an employee as “de facto conflict of interest which must be resolved to avoid favoritism.” World Bank President Paul Wolfowitz was forced to resign due to a relationship he had with a bank staff (year?)