Business Ethics - Topic Twelve Business Ethics Craig...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
BUSINESS SCHOOL Topic Twelve: Business Ethics Craig Mellare
Background image of page 1

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

View Full DocumentRight Arrow Icon
This lecture In this lecture we will discuss the following issues: 1. What is Business Ethics? 2. Who cares about ethics in business? 3. Professional Ethics – CFA code of practice 4. Market Manipulation 5. Some examples of unethical business practices - What were the consequences?
Background image of page 2
What is Business Ethics? Shaw et al (2009:5) characterise business ethics (or moral philosophy) as the simple question: - “How are we to relate to each other in order to ensure that our individual and collective well-being is enhanced.” Ethics is not about conformity to the law, ethics is about voluntarily conforming to what is good/right/acceptable behaviour. John D. Rockefeller was quoted as saying that the ideal employee would have the following qualities: - “[He] must know how to glide over every moral restraint with almost childlike disregard [and have], besides other positive qualities, no scruples whatsoever, and [be] ready to kill off thousands of victims – without a murmur.” (Shaw et al 2009:38) 3
Background image of page 3

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

View Full DocumentRight Arrow Icon
The Three C’s of ethical business 1. Compliance - With rules (including the law), principles of morality, the customs and expectations of the community, the policies of the company and general concerns such as fairness 2. Contributions - Through the value and quality of the business products or services, providing employment, and through prosperity and usefulness of the business activities to the community. 3. Consequences (of actions) - Both inside and outside the company, both intended and unintended, including to the reputation of the company and industry. 4
Background image of page 4
Who cares about ethics? Interested stakeholders include (but are not limited to): - Government/Regulators - Response to GFC, Sarbanes–Oxley Act, etc - Employees - Whistleblowers, high turnover, etc - Customers/Clients - Reputational effects - Local Community - Political pressure - Shareholders - Ethical Investment Trusts, etc - Professional Bodies - Professional integrity, independence, etc 5
Background image of page 5

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

View Full DocumentRight Arrow Icon
Professional Ethics - CFA Code of Ethics Members of CFA Institute (including CFA charterholders) and candidates for the CFA designation (“Members and Candidates”) must: - Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets. - Place the integrity of the investment profession and the interests of clients above their own personal interests. -
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/09/2012 for the course FINC corporate taught by Professor Kim during the Three '11 term at University of Sydney.

Page1 / 21

Business Ethics - Topic Twelve Business Ethics Craig...

This preview shows document pages 1 - 7. Sign up to view the full document.

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