ETHICAL DILEMMA & ADVOCACY AGAINST CORRUPTION & INITIATIVES TO IMPROVE BUSINESS ETHICS AND REDUCE CORRUPTION

Chapters 8, 9, 10

Ethical Dilemma

is a situation a person faces in which a decision must be made about the appropriate behavior

1.Obtain the relevant facts.

2.Identify the ethical issues from the facts.

3.Determine who is affected by the outcome of the dilemma and how each

person or group is affected.

4.Identify the alternatives available to the person who must resolve the

dilemma.

5.Identify the likely consequences of each alternative

6.Decide the appropriate action.

Resolving Ethical Dilemmas

Corruption

the abuse of private and public office for personal gain.

Corruption

Can be in many different forms including acts of bribery, embezzlement, nepotism, kickbacks and state capture.

bid rigging, fraud, or money laundering, extortion

Corruption is often associated with and reinforced by other illegal practices such as ________ (4 items).

General definition of Corruption

a form of dishonesty or criminal activity undertaken by a person or organization entrusted with a position of authority, often to acquire illicit benefit

1.Recipient and payers

2.Extortion

3.Lubricant of society

4.An ethical dilemma

5.Poverty alleviation

6.Culture

7.Kindness among friends

Characteristics of Corruption

1.Clear business process

2.Policy on gifts and entertainment

3.Declaration of conflict of interest

4.Convenient corruption reporting system

How to Prevent Corruption?

1.Anti-Graft and Corrupt Practices Act

2.Anti-Red Tape Act

3.Revised Penal Code

4.Anti-Money Laundering Act

5.The Act of Establishing a Code of Conduct and Ethical Standards for

Public Officials and Employees

6.The Government Procurement Reform Act

7.United Nations Convention Against Corruption

Effects to Curb Corruption Through Legislation

• Business Ethics is everyone’s responsibility - all parties must work together

• Ethical responsibility must be reinforced - among businesses and professionals toward customers

• Unethical practices remain widespread

• Collective action is necessary - to address unethical practices and promote ethical behaviour

Why Improve Business Ethics?

The Integrity Initiative Campaign

Launched in 2010 as a private sector-led campaign to strengthen ethical standards in business and was organized after the Ph received a grant from Siemens.

Strong corporate values

_______ help build stakeholder trust, protect the company’s reputation, and support long-term business success

Code of Conduct

a formal expression of an organization’s values and ethical standards. It guides leaders and employees in maintaining integrity, promotes responsibility and accountability, and ensures compliance with legal and other obligations

leads by example

The Unified Code of Conduct for Business (Integrity Initiative)

• Our top management _________ by consistently demonstrating the value of conducting business with integrity.