ACCT450_Lectures+1+&+2+(Chapters+1+&+2)

ACCT450_Lectures+1+&+2+(Chapters+1+&+2) -...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
Business & Professional Ethics Sessions 1 & 2 Ethics & Governance September 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Ethics is about right and wrong. Business Ethics is about right and wrong or appropriate behaviour in business. Governance is about setting or approving appropriate strategies, objectives & policies, ensuring their appropriate achievement & reporting to stakeholders to ensure their continuing support.
Background image of page 2
Learning Objectives Why are good ethics and good governance important? What constitutes good ethics and good governance? How can good ethics and good governance be instituted?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Recent Cases CITI Pacific PCCW Saga What are the ethical issues involved? Did these companies benefit from their behaviour?
Background image of page 4
Why are good ethics and good governance important? Stakeholder support Reputation management Risk management Compliance – SOX, governance guidelines
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Good Ethics & Governance – How Much Do They Matter? Guidance for behaviour risk reduction/management Portion of employees who will attempt to steal or commit a fraudulent act will be greatly reduced by good governance and ethics Never Always Always Will try if they think they Will try if they think they won’t get caught. won’t get caught. Governance determines extent
Background image of page 6
Shareholders Activists Governments Creditors Lenders Suppliers Customers Employees Corporation Others, including the Media, who can be affected by or who can affect the achievement of the corporation’s objectives Key Stakeholder Support is Vital to Success Governance Expectations Sustained Competitive Advantage Political Support Self Regulation, Mergers Efficiency Good Press
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A Stakeholder Is. .. Anyone who is affected by or can affect the objectives of the organization (Freeman, 1984) An organization must have the support of its primary stakeholders , to optimally achieve its strategic objectives
Background image of page 8
Global Business Ethics Value Chain GO CAUTION STOP CORPORATION ACTIONS BEHAVIOUR STAKEHOLDER SCREEN INFLUENCES Primary Other ACHEIVEMENT OF STRATEGIC OBJECTIVES Governance Mechanism Formulation of Strategic Objectives Customers Employees Capital Markets Current: Shareholders Lenders Environmentalists Host Communities Governments NGOs Media DETERMINANTS OF VALUE… DETERMINANTS OF VALUE… Success = f(Trust + Respect) CORPORATE CULTURE TOP MANAGEMENT SUPPORT STAKEHOLDER SYNERGIES CHARACTER GLOBAL MEDIA PERCEPTION OF: TRUST RESPECT RELATIVE IMPACT RELATIVE SALIENCE LOCAL CULTURE
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Stakeholder support depends on … Tylenol Firestone Tires Is your organization really selling trust?
Background image of page 10
Stakeholder Accountability … Success/Wealth Creation Depends On Relationships with (accountability to) Stakeholders Relationships depend upon Reputation Trust and Respect Values or hypernorms for most cultures Organizations cannot achieve their strategic objectives on a sustained basis unless they have the support of their key stakeholders .
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Success Depends Upon
Background image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 76

ACCT450_Lectures+1+&+2+(Chapters+1+&+2) -...

This preview shows document pages 1 - 13. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online