ADC INTRO Good Governance and Social Responsibility 2
ADC INTRO Good Governance and Social Responsibility 2
ADC INTRO Good Governance and Social Responsibility 2
Responsibility
Dr. A. Castor
Good Governance and Social Responsibility
Business allegations…
The ability to recognize and deal with complete business ethics issue
has become a significant priority in twenty first century companies.
In recent years, a number of well publicized scandals resulted in
public outraged about deception and fraud in business and
demand for improved business ethics and greater corporate
responsibility.
In recent investigations on German corporate giant Siemens
revealed systematic and well-coordinated use of bribery of foreign
government officials to get contracts and
business. The practice was so widespread that one observer remarked
that bribery is their business model. In the end, Siemens will pay more
than 6.7 billion in fines and fees in Germany and the United States and
more than 6 billion for internal investigations and reforms.
In China, the melamine in milk Scandal have claimed the lives of at
least four infants and caused illness in many babies. It also caused a
worldwide scare and did inestimable damage to the already
maligned trade in China.. The chairman of the maker of the tainted
milk is appealing a life sentence.
The iPhone was launched in Poland where demand for the gadget
was very low. As part of a marketing campaign, the country's largest
mobile operator Orange, paid dozens of actors to stand in queues
and pretend that they were ordinary people interested in getting
the phone.
Regardless of what an individual believes about a particular action,
if society judges it to be unethical or wrong, whether correctly or
not, that judgment directly affects the organization’s ability to
achieve its business goals.
Importance of Ethics in Business
• Ethical management, is the foundation of CSR in the workplace,
covers those ethical issues arising from the employer-employee
relationship, such as the rights and obligations justly owed between
them.
• Ethics concern an individual's moral judgements about right and
wrong. Decisions taken within an organisation may be made by
individuals or groups, but whoever makes them will be influenced by
the culture of the company.
What is Business Ethics?
• The system of moral and ethical beliefs that guides the
values, behaviors and decisions of a business organization
and the individuals within that organization.
• When the prevailing management philosophy is based on
ethical practices and behavior, leaders within an organization
can direct employees by example and guide them in making
decisions that are not only beneficial to them as individuals,
but also to the organization as a whole.
What is Business Ethics?
• Building on a foundation of ethical behavior helps create
long-lasting positive effects for a company, including the
ability to attract and retain highly talented individuals, and
building and maintaining a positive reputation within the
community.
• Running a business in an ethical manner from the top down
builds a stronger bond between individuals on the
management team, further creating stability within the
company.
Business Ethics Benefits
• The ethical operation of a company is directly related to
profitability in both the short and long term.
• The reputation of a business in the surrounding community,
other businesses and individual investors is paramount in
determining whether a company is a worthwhile investment.
If a company is perceived to not operate ethically, investors
are less inclined to buy stock or otherwise support its
operations.
Business Ethics Benefits
• With consistent ethical behavior comes an increasingly
positive public image, and there are few other
considerations as important to potential investors and
current shareholders.
• To retain a positive image, businesses must be committed to
operating on an ethical foundation as it relates to treatment
of employees, respecting the surrounding environment and
fair market practices in terms of price and consumer
treatment.
Business Ethics Benefits