View
16
Download
0
Tags:
Embed Size (px)
Citation preview
Business Ethics Corporate Governance For
Pakistan
Presentation on:
Presented to:
Sir. Rao Akmal Ali [email protected]
GROUP MEMBERSName Roll No.
Ayesha Yaseen Group Leader 36
M. Akthar Farhan 02
Mubashar Ali 23
Sidra Kanwal Kiran 11
Habib Ur Rehman 17
MBE-4th Semester(Session-2013-2015)
Department of EconomicsBZU Multan
Ethics Policy
Avoidance of conflict of interest at all levels.
Honesty and integrity.
Fairness in dealing with everyone.
Acting in good faith.
Compliance with law.
Encouraging ethical reporting: whistleblowing.
Pakistani Scene
Companies are not willing to be ethical.
Those that are willing cannot afford to be ethical.
Those that can afford, are not allowed by the situation.
One has to bribe even to get one’s rights.
Rectifying The Situation
1. Principal Causes:
Company policies
Unethical industrial climate
Rampant corruption in government
2. Solution:
Bigger companies should start; others will follow.
Gradually the business climate will change.
Once business is honest; government will have to get honest.
Professional Codes
Lesser force than law.
Professional associations e.g. ICAP force their
members to follow ethics, or face expulsion.
Professionals work for companies and force
companies to follow ethics.
Industrial associations also exhort their members to
be ethical.
Internal Code The most compelling reason for a company to be ethical is
its own board.
A company can become ethical only if its board is willing to
face the consequences and pay the price of honesty.
Setting up a formal policy on ethics is essential.
Ethics should be part of everything that a company does.
Doing certain things in name of ethics is not enough.
The Concept of Business Ethics
1.Planning & Leadership
Aim at doing the right thing
2.Organizing
Do it the right way
3.Control
Do it for the right reason
Evolution of Business Ethics
1.Business
Historically not known to be ethical.
Profit before any thing else.
2. Ethics
Religious influence.
Social influence.
Why Business is Being Ethical Now?
Stricter laws and regulations.
Watch dogs.
Realization that ethics is
profitable.
Handling These Causes
1. All these causes can be handled by a good management
team by:
Fairness and equal treatment of all employees.
Reasonable load of work.
Reasonable targets.
Good HR practices.
Aspects of Corporate Unethical Behavior
Bribery
Coercion
Conflict of interest: company & others
Tax evasion
Insider trading
Lack of regard for the society
How to Enforce Ethics in a Company?
Decide to be ethical.
Ethical decision making as norm for all
operations.
Draw up a formal Ethics Policy and let it be part
of normal operational manuals.
ADVANTAGES OF BUSINESS ETHICS
Improve in image
Higher productivity
Access to more and cheaper capital
Helps society; society helps company
Every one is a winner
IMPACT ON EMPLOYEES
IMPACT ON EMPLOYEES
If the company is honest, employees tend to be
honest as well. This means better work
environment, better productivity, higher efficiency.
Honest companies have lesser frauds and thefts.
Ethical companies attract better quality of staff.
Ethical companies are able to retain good staff.
CHARACTERISTICS OF AN ETHICAL ORGANIZATION
Formal code of ethics.
Regular interaction with stakeholders.
Obsessively fair to all.
Managers responsible individually; do not
hide behind collective responsibility charade.
Employee see a purpose in their work.
Non-bureaucratic procedures.
ROOTS OF INDIVIDUAL UNETHICAL BEHAVIOR
Pressure of work and family life.
Poor communication between company and
employees.
Poor leadership of the company.
Heavy work load; long working hours.
Undue pressure / targets.
Politics, favoritism.
Personal traits & circumstances.