Business Ethics Corporate Governance Fiduciaries l Duty of

Business Ethics

Corporate Governance ¡ Fiduciaries: l ¡ Duty of Diligence: l ¡ Persons placed in positions of trust who use due care and loyalty in acting on behalf of the best interest of the organization. A duty of care to make informed and prudent decions. Duty of loyalty; l All decisions should be in the interests of the corporation and its stakeholders.

¡ Conflict of Interest: l ¡ When a person in a powerful authority uses the position to obtain personal gain usually at the expense of the organization. Bo. D and Officers’ compensation !

¡ To remove the opportunity for employees to make unethical decions; developed formal systems of accountability, oversight, and control are knwn as corporate governance.

¡ Accountability: l l ¡ How closely workplace decisions are aligned with a firm’s stated strategic direction. Alco compliance with ethical and legal considerations. Oversight: l A system of checks and balances that limits employees’ and managers’ opportunities to deviate from policies and strategies and that prevent unethical and illegal activities.

¡ Control: l Process of auditing and improving organizational decisions and actions.

¡ Collusion; l l A secret agreement between two parties for a fraudulent, illegal, or deceitful purpose. Deceitful purpose; “any sort of trickery, misinterpretation, or a strategy to lead others to believe one truth but not the entire truth”

Honesty ¡ ¡ “Tell the truth to the best of your knowledge without hiding anything”. Confucius l l l ¡ Li Yi Ren Absence of honesty = ?

Fairness ¡ Being just, equitable and impartial l Equity Reciprocity Optimization

Integrity Being whole, sound and in an unimpaired condition. ¡ Uncompromising adherence to ethical values. ¡ Unwillingness to deviate from standards of behaviour. ¡