Fairness,

Accountability and
Transparency
 > A company that applies the principles of
fairness, accountability and transparency, will
usually outperform other companies.
> Companies who implement these principles
into working environment life will ensure
corporate success and economic growth.
> They are the basis on which companies can
grow
 FAIRNESS
Is perhaps one of the hardest, yet most important, to practice on a
consistent basis. Fairness refers to equal treatment.
The fairer the entity appears to stakeholders, the more likely it is that it
can survive the pressure of interested parties.
Although the underlying concept of fairness is simple, almost
instinctive, its application in real life proves extremely complex.
 Fairness in business refers to the value of treating people
with a standard of performance that is consistent and equal
based on commitments.
*It means giving customers reasonable value for their money.
*It also means providing unbiased work environment where employees have
identical opportunities to good benefits and working conditions
*Caring for community members and business partners with similar level of
fairness expected from them is also vital.
 Common examples of
unfairness
• Taking credit for another’s work
• Shifting blame
• Inequitable allocation of work load
• Promotions of the less competent for political reasons
Unfairness could also be felt when
there are double standards. Some do
less work, and they do isn’t good.
Others come in late, miss deadlines,
and make mistakes. Yet they get the
same raise as anyone.
 Fairness is concerned with actions, processes, and
consequences that are morally right, honorable, and
equitable. In essence, the virtue of fairness establishes
moral standards for decisions that affect others. Fair
decisions are made in an appropriate manner based on
appropriate criteria.
 Accountability
Refers to the obligation and responsibility to give an
explanation or reason for the company’s actions and
conduct.
It also has a strong connection to expectations.
( Employees who do not meet the expectations of their
supervisor are held accountable for their actions and
must answer for their inability )
 Accountability is crucial in ensuring high performance within an
organization. However, mangers must clearly communicate their
expectations to the person who is responsible for specified action or
task. Clear communication of expectations and well defined goals is
very effective tool in enhancing performance at every level of
organization.
Both subordinates and supervisors should have a clear idea
of how their projects should be handled and delivered.

Employees need to clearly understand their role in the

company and what they are responsible for accomplishing.

Accountability is applicable not just for profit-oriented

company, but also to non-profit organizations.

All non-profits have the obligation to provide some

community benefit
 Transparency
Means openness, a willingness by the company to provide clear
information to shareholders and other stakeholders.
It ensures that stakeholders can have confidence in decision-
making and management processes of a company.
For instance, a company to be called transparent has to open and
willing to disclose financial performance figures which are truthful
and accurate.
 Across all industries, transparency has never been more important
to a successful business model.
A good example of the concept of transparency is a restaurant
sitting where the cooks and customers and consumers could literally
see each other during the food preparation and eating experience.
 1. respect
A transparent business demonstrates respect for both
employees and customers. (Even outsiders)
 2. Positive Public
Perception
Scandal often triggers some companies to
become transparent.
 3. Staff involvement
Staff members with no idea about business may assume, contribute in
spreading gossip, or if not be unconvinced and fearful regarding the
condition of the company and security of their jobs.
4. Customer Service
Customer service can get better through
transparent business operations.
 5. Image management
It is easy to manage the public perception of a
company by being open and transparent.
Codes of Right
Conduct
Common Good Vs.
Greatest Good
 Common Good
• Is that principle that whatever serves the most
number of members in a community is considered
good.
• Is usually whatever rules or actions are required to
reduce the disharmony in the community.
 Greatest Good

• Is the principle that there is a standard that people

must cooperatively strive for to maximize the
harmony in the community.
 Codes of Right Conduct
• Every organization must have a code of right conduct. A code has a value just
like an internal guideline and an external statement of corporate values and
commitments.
• In addition, a code is a fundamental guide and reference for employees to
support everyday decision making.
• A code is a statement of shared values that prescribed for right action.
A good code, like a good moral theory, should encompass internal
consistency. Accordingly, what is right for one person will be right
for another, in every one, or at least most situations.
There are two types of
moral theory namely
consequentialist and
non-consequentialist.
 Consequentialist
• Focuses on the outcomes of actions, settling on
whether or not an action is good by knowing the
results. Utilitarianism is a common theory under this
kind. “The greatest good for the greatest number,” is
a familiar phrase that shows this attitude.
 Non-Consequentialist
• A theory centers on the principle that a action is good based on the principle
follow and regardless of the results of the action. Deontological approach is
an example of this theory. Deontological, means for duty or obligation from
the Geek word “deontos”. A phrase that shows the attitude using this
approach is “People have an obligation to respect the rights oh the
individual.”
In trying to clarify what “right action” is, codes of conduct
are often a combination of both deontological and
utilitarian approaches. They are expressions of the
deontological approach, in that they are saying, “Here are
the principles to stand for.”. Yet they have a utilitarian
flavor in that they say, “Everyone will be more contented if
all observe the same standards.”
 There is a third approach to defining right action,
neither consequentialist nor non- consequentialist,
which is called virtue theory. Here, one decides that
“the right thing to do” is based on an idea of how a
virtuous person would behave in such a situation.”
The fourth approach that of care ethics, is unusual.
Here, instead of intellectual analysis, right action
consist consists of feeling from the heart. This
simply means that what makes an action right is how
greatly the action will increase the network of caring
relationships.
 Utilitarianism
Utility is any net benefits produced by an action. The principle of utility
affirms that actions or behaviors are right if they encourage happiness or
pleasure, wrong if they generate unhappiness or pain.
Utilitarianism calls to produce the best consequences
which appears to be a simple. However,
utilitarianism is complex because this single principle
has to reflect on three things namely what is good,
whose well being it is intended and the actual consequences.
 1. What is good
Jeremy Bentham equated utilitarianism to a
view called hedonism. Hedonism means the only
thing that is good in itself is pleasure and
happiness.
 2. Whose well-being
Utilitarian logic can be used both for moral reasoning
and rational decision-making. In addition, it can also be
used for discussions on the interest of different persons
and groups.
a. Individual self-interest
b. Groups
c. Everyone affected
 3. Actual consequences or
foreseeable consequences
Utilitarian's opposed the idea that judgements of right and
wrong should be based on the actual consequences or
their foreseeable consequences.
 Deontology
Is an approach that focuses on the rightness or wrongness of actions
themselves. Thus, to a deontologist, whether a situation is good or bad
depends on weather the action that brought it about was right or wrong.
What makes a choice “right” is its conformity with moral norm. Right is
more significant that good.
 Other type of Deontology
• 1. Divine command theory – God has declared that it is right
• 2. Natural right theory – every person has basic right
• 3. Contractarian Ethics – Social contract
• 4. Pluralistic Deontology – seven prime duties ( W.D. Ross)
a. Duty of beneficence – to help other people to improve their conditions like increase
their pleasure, improve their character, and so on
b. Duty of non-maleficence – to avoid harming other people
c. Duty of justice – to ensure people get what they deserve
d. Duty of self – improvement – to improve oneself
e. Duty of reparation – to recompense someone if one has acted wrongly towards
them.
f. Duty of gratitude – to return favors that others have done
g. Duty of fidelity – to keep promises both explicit and implicit promises, including the
implicit promise to tell the truth.
 Virtue Theory
Virtue ethics dates back to the ancient Greek thinkers and is
therefore the oldest type of ethical theory in Western philosophy.
Plato discussed four key virtues which are wisdom, courage,
temperance and justice. The first systematic explanation of
virtue ethics was written down by Aristotle in his famous work
Nichomachean Ethics.
 Care Ethics
Ethic of care is centered on the interdependence of all individuals. It considers
the reality that certain communities and people are weaker than others, and
strong ones should give more concern to the weaker community depending
on how they are affected by their choices.
ON WRITING CODES
OF RIGHT CONDUCT
 Externally, a code serves several important
purposes:

•1. Compliance
•2. Marketing
•3. Risk Mitigation
Inclusions in a Code
of Right Conduct
 Guidelines for writing an ethics code:
• Be plain about the objectives that the code is planned to achieve.
• Obtain support and ideas for the code from all levels of the organization
• Be conscious of the most recent developments in the laws and regulations that concern the industry
where the organization belongs.
• Write as plainly and undoubtedly as possible, Keep away from legal terminology and clear generalities.
• Act in response to real-life questions and situations.
• Supply resources for additional information and guidance
• In all its forms, make it user-friendly since ultimately a code is a failure if it is not applied.
 The most common sections to include in a code of right
conduct are:
• Ethical principles – workplace behavior and respect for all people
• Values – an honest, unbiased and unprejudiced work environment
• Accountability - taking responsibility for own actions, ensuring appropriate use of
information, exercising diligence and duty of care obligations and avoiding
conflicts of interest.
• Standard of conduct – complying with the job description, commitment to the
organization and proper computer, internet and email usage
• Standard of practice – current policies and procedures and business operational
manual
• Disciplinary actions – complaints handling and specific penalties for any violation
of the code.
 Provisions of the
Code
Code provisions are the exact standards of
behavior and performance expectations that an
organization selects to emphasize and tackle in
the code.