Topic 2 ETHICAL THEORIES IN BUSINESS


 On the second week of the class , we learned about chapter 2 which is Ethical theories in business.

In this chapter 2 we got to know about the foundation for ethical solutions to the difficult situations people encounter in life and also we study about the ethical theory in business which is a foundation for ethical solutions to the difficult situations in business situations.

In concerning the rightness or wrongness of actions there are two broad categories of ethical theories  and approach which is Consequentialist and Non -Consequentialist. 

Referring  about Ethical theories in business.

   

    In conclusion on the second chapter we learn about foundation for ethical solutions and about ethical theory in business

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Topic 5 : The Value of Work & Employee

What is concept value of work  ???

Ø  Along with producing goods & services,  providing employment is the most  important social       function of business.
Ø  Work is very important in life and yet it is also viewed as burdensome
Ø  Work can provide :
a)       opportunities for  valuable,
b)      meaningful & uplifting human  activities &
c)       it also can be dehumanizing, degrading & oppressive

 Categories of Workplace Value

•           Agreement to perform to the best of their ability and their behaviour must be in alignment with the companies core values and expected ethical conduct

•          Displaying honest behavior at all times

•          Employees are expected to be accountable for their actions and their assigned        responsibilities.

•          It is important for employees to be team players

•          Employees must not only treat others with respect, but exhibit appropriate behavior in all facets of the job. 

     Human potentials that work can fulfill:

a)       Exercises freedom in making choices

b)      Provides the occasion for developing talents

c)       Creates own society & culture & thereby creates own  identity

d)      An expression of human nature as social beings

Concept of Employees Responsibilities

1) Obey a lawful, reasonable order within the terms of the contract of employment.

2) Cooperate with the employer.

3) Serve faithfully.

Responsibilities of Employees

1) To personally do the work they were hired to do.

2) To avoid putting themselves or other in danger.

3) To be loyal

1) Self interest - Focus on actions or activities that are advantage to individual or organization.

2) Moral obligation - An obligation arising out of consideration of right and wrong.

Conflict of Interest Defined

a) A situation in which a person is in a position to derive personal benefit from actions or decisions made in their capacity.

b) A situation in which a person or organization a person or organization is involved in multiple interests, financial interest or otherwise one of the which could possibly corrupt the individual or organization.

How to manage conflict of interest???

1)Disclosure to the funding agency

2)Monitoring research by an independent reviewer

3)Modification of the research plan

4)Disqualification from participant in the portion of research affected by the financial interests

5)Divestiture of the financial interests 

6)Severance of relationships that create the conflict

7)The institution may notify the external agency that the University unable to manage an actual or potential conflict of interest

Effects of Conflicts of Interest

a)For saver/lender/owners:Conflicts of interest cost saver/lendre/owners financially (one client's loss)

b)For economy: Conflicts of interest reduce the quality of information and increase asymmetric information problems.

- Less funds flow into the financial system due to high uncertainty and risk, and funds are not allocated efficiently.

c)For financial service firms: The exploitation of a conflict interest result in

- Large gaints for some members of the financial firm who exploit the conflicts of interest.

- Reduction in the value of the financial service firm as a whole due to loss of clients.


What is responsbilities for manager?????

Entrusted with a leadership role, a manager is responsible for overseeing a department or group employees within a specific organisation or company. Across every sector, managers contribute to businesses in significant ways, which are reflected in company profits, organisation, and overall workplace morale.

AGENCY VIEW OF EMPLOYEE RESPONSIBILITIES

RECRUITMENT refers to the process of attracting,screeening and slecting a qualified person for a job.

CAREER ADVICE - Provision of support,usually on a one to one or small group basis,whereby individuals are able to understand and interpret career information in their personal situation.

ADMINISTRATIVE DUTIES - Every company regardless of the industry has adminstrative duties that need to be hndled in order for the company to remain organized and run efficiently.

Topic 4: Corporate Governance & Corporate Social Responsibility

CORPORATE GOVERNANCE & CORPORATE SOCIAL RESPONSIBILITY

What is corporate governance?

• Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals.
• The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. 

Why study corporate governance?

• Enhance the performance of companies.
• Enhance access to capital.
• Enhance long term prosperity.
• Impact of society as a whole.

Corporate governance purposes

• Promote the trust of an investor.
• Good corporate governance has a positive link to economic development and good corporate performance.
• Funds will flow to entities which are seen to have internationally accepted standards of corporate governance.

Parties to corporate governance

• Employees
• Government
• Creditor
• Shareholders
• Board of directors
• Vendors

Ethics and corporate governance

• Rights and equitable treatment of shareholder.
• Protection of interest of other stakeholders.
• Role and responsibilities of the board.
• Integrity and ethical behavior.
• Disclosure and transparency.

Good corporate governance

• Accountability of both internal and external.
• Recognition of stakeholders and shareholders rights.
• Ongoing financial scrutiny and control.
• Transparency and openness.
• Legal compliance.

Accountability 

• Ensure that management is accountable to the board.
• Ensure that Board is accountable to shareholders.

Fairness

• Protect shareholders/ stakeholders rights.
• Treat all shareholders/ stakeholders including minorities, equitably.
• Provide effective redress for violations.

Transparency 

• Ensure timely, accurate disclosure on all material matters, including the financial situation, performance, ownership, and corporate governance.

Compliance 

• The process by which an organisation ensures that it observes and complies with the external statutory laws and regulations. 

Financial Audit 

• Effective monitoring of company's expenditure-and ultimately the exercise of effective control over it.

CORPORATE SOCIAL RESPONSIBILITY

Definition: CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. 

The Pyramid Of Social Responsibility

TOPIK 3: CORPORATE CULTURE AND ETHICAL LEADERSHIP.

On the topic we can understand about Corporate Culture, Element, Function and Impact.

They are 8 element for corporate culture. Which is:

• Method of problem solving and conflict resolution.
• Rules and policies 
• Incentives and reward system
• Physical layout of work place
• Leadership style
• Reporting line and authority
• Mode and channels communication 
• Tempo/time of work

The functions of organizational culture include stability, behavioral moderation, competitive advantage and providing a source of identity. Organizational culture is a term that describes the culture of many different kinds of groups.

The impact of corporate culture is risk, employee retention, incentive pay, focus.

In conclusion,The culture within an organization is very important, playing a large role in whether it is a happy and healthy environment in which to work. In communicating and promoting the organizational ethics to employees, their acknowledgement and acceptance of it can influence their work behavior and attitudes.

watch short video below for better understanding ⇓

On the first day of class, we learned about topic 1 which is Concept of values, moral and ethics.

On the topic 1 we understand the differences between the values, moral and ethics of the other person. If there is conflict between these, then they probably have it hidden from themselves and you may carefully use these as a lever.

Beware of transgressing the other person's moral, as this is particular how they will judge you.

Talking about professional ethics puts you on high moral platform and encourages the other person to either join you or look up to you.

   On the second week of the class , we learned about chapter 2 which is Ethical theories in business.

In this chapter 2 we got to know about the foundation for ethical solutions to the difficult situations people encounter in life and also we study about the ethical theory in business which is a foundation for ethical solutions to the difficult situations in business situations.

In concerning the rightness or wrongness of actions there are two broad categories of ethical theories  and approach which is Consequentialist and Non -Consequentialist. 

Referring  about Ethical theories in business.

   

    In conclusion on the second chapter we learn about foundation for ethical solutions and about ethical theory in business.