BUSINESS ETHICS

Macro, Corporate, Individual

Levels of Business Ethics

Sole Proprietorship

Unincorporated business with one owner paying personal income tax on profits

Partnership

Formal arrangement by two or more parties to manage and share profits

Limited Partnership (LP)

Partnership with a general partner overseeing the business

Corporation

Legal entity separate from owners, with For-Profit and Not-For-Profit types

For-Profit Organization

entity whose main goal is to make money or generate profit

Not-For-Profit Organization

an organization with a purpose to further a social cause and provide a public benefit

Cooperative

Organization owned and run jointly by members sharing profits or benefits

Corporate Governance

System directing and controlling a firm

Business Owner, Management and Employees, Customer, Suppliers, Investor, Government, Community

Who are the Stakeholders

Business Owner

“shareholder”, wants fair return on investments

Management and Employees

wants fair compensation for work and proper safe workplace

Customer

wants good value of products and services

Suppliers

wants fair competition and good price

Investor

wants a reliable information and payment

Government

wants a legal and ethical governance

Community

wants social responsibility

Fairness, Accountability, Trasnparency

The core principles of good governance

Fairness

each decision made requires balancing the interest of different stakeholders

Accountability

acceptance of responsibility

Transparency

quality of being easily seen through or understood

Direct Communication

individual speaks their mind clearly and honestly

Admitting Mistakes

someone takes responsibility for their actions and doesn't try to shift blame

Employee Conduct, Equal Opportunity, Attendance and Time Off, Computer Use, Non Competition, Finance and Accounting

Common practices in business organization

Policy

Rules or guidelines for organization and employees to achieve specific goals

Procedure

Instructions on how a policy is followed

Employee Code of Conduct

Sets duties and responsibilities for employees

Finance

accounting policies deal with how money is handled in the company and how acquisitions and liabilities are recorded

Accountability

well managed finance department should have a clear guidelines on purchase, petty cash disbursement and recording

Ethical Issue

a problem requiring evaluation of right or wrong actions

Conflict of Interest

Influence on business decisions for personal gain

Whistle-Blowing

Employee disclosure of illegal or unethical practices

Honesty and Integrity

telling the truth and adhering to deeply felt ethical principles in business decision

Loyalty vs Truth

business people expect employees to be loyal and truthful but ethical conflicts may arise

Bribery

accepting money/ gifts in return for preferential treatment

Overreaching or Fraud

making profit at expense of client

Financial Interest in The Case

being financially involved in the litigation of the client

Gifts

accepting more than nominal value

Intimate Relationship

dating current and probably former client

Sexual Harassment

unwanted sexual conduct and it can happen anywhere, at any time

Unwanted Flirting

pressing someone after being told to stop

Cat Calling

telling someone they have nice legs or to smile

Forced Overtime

generally, no one should be compelled to work overtime in excess of the mandatory eight hours on any given day against his/her well being

Business Ethics

the moral principles and business values that govern the way businesses and individuals engage in business activity

Corporate Culture

Shared values, attitudes, and beliefs in an organization

Sole Proprietorship, Partnership Corporation

Forms of Business Organization

Values

principles or standards of behavior: one’s judgment if what is important in life

Beliefs

conviction or acceptance that something exists or is true, especially without proof

Team Oriented Culture

believes that if employees are happy, the more productive they become

Elite Culture

only hires qualified individuals who are meant to lead the way

Horizontal Culture

everyone gets to pitch their ideas or has a voice

Conventional Culture

they work in  traditional manner and has a dress code

Code of Ethics

Sets company's mission, vision, objectives, and responsibilities

Mission Statement

description of company’s culture, values, and purpose.

Vision Statement

description of the desired future of for the company

team oriented culture

elite culture

horizontal culture

conventional culture

what are the corporate culture

Bribery

Conflict of Interest: (examples)

1. overreaching or fraud

2. financial interest in the case

3. gifts

4. intimate relationship

Sexual Harassment: (examples)

1. unwanted flirting

2. cat calling

3. touching without consent

4. sexual favors

5. crude gestures or jokes

Forced Overtime

ethical challenges in doing the business