Introduction to Corporate Governance: Meaning Importance, Issues & Introduction to Ethics: Nature of Business Ethics

What is Ethics?
Ethikos (Greek) custom / character A code of behaviour considered correct The treating of moral questions Business Ethics
Labour practices Free & fair trade Health Euthanasia Animal welfare Environment Genetic modification Human cloning

Is Ethics a Science?
Science systematically builds & organises knowledge in the form of testable explanations & predictions about the universe Classification of Science.xlsx Ethics philosophy a normative science Normative science norms of human conduct Ethics involves systemizing, defending and recommending concepts of right and wrong behaviour

The Primary & Secondary Traits Character Ethic vs. Personality Ethic
Review of success literature of the past 200 years The first 150 years, success based on Character Ethic Integrity Humility Fidelity Temperance Courage Justice Patience Industry Simplicity Modesty Golden Rule One should treat others as one would like others to treat oneself

Last 50 years, taken over by the Personality Ethic

Public image Attitudes & behaviours Skills & techniques Human & public relations techniques Positive mental attitude Communication skills Influence techniques Necessary but secondary wealth without work, instant relationships without deep trust. The Law of Nature

Values & Principles

Our mental maps (paradigms):
Reality the way things are Values the way things should be

Principles Natural Laws gravity Values a gang of thieves can share values Principles are fundamental, enduring, permanent, self evident, universal Principles are the territory, values are the map

Principles
Integrity Honesty Human dignity Service Excellence Potential to develop and to grow Patience Nurturance Encouragement

Principles of Personal Ethics

Personal values what one regards as desirable Application of these values personal ethics Respect for the rights of others Honest; law-abiding Fairness; no exploitation Protecting others from harm

Professional Ethics
Impartial; objective Openness; full disclosure Confidentiality; trust Due diligence; duty of care Committed to professional responsibilities Avoid conflict of interest

Business Ethics
Application of ethical ideas to business Ethical problems arise due to:
Selfishness Pressures on profits Personal values clashing with personal goals Cross cultural contradictions Bribery and corruption

Corporate Governance
A set or rules that govern the administration of companies An entire system with codes, values, rules & structures to control the goals and goal performance of companies, and also a method by which to evaluate the working of an organisation in terms of how rights of various parties are defined and distributed Transparency Integrity Full disclosure (financial, non-financial) Protection of stake-holders interests