CORPORATE GOVERNANCE INTRODUCTION TO BUSINESS

Transcript:CORPORATE GOVERNANCE INTRODUCTION TO BUSINESS:
CORPORATE GOVERNANCE INTRODUCTION TO BUSINESS ETHICS MEANING OF BUSINESS ETHICS Business ethics is nothing but the application of ethics in business. Business ethics is the application of general ethical ideas to business behaviour. It refers to the set of moral values or standards or norms which govern the activities of a businessman, Ethical busimess behaviour facilitates and promotes good to society, improves profitability, fosters business relations and employee productivity. Unethical practices are creating problems to businessman and business units, The life and growth of a business unit depends upon the ethics practised by a businessman. Business ethics is developed by the passage of time and custom. A custom differs from one business to another. Ifacustom is adopted and accepted by businessman and public, that custom will become an ethic. Business ethics is applicable to every type of business. ELEMENTS OF BUSINESS ETHICS (1) Top Management Commitment: Ton management has a very important role to gus dhe enire organisation towards ethical behaviour. The CEO and other top le managers must be openly and strongly committed towards ethical conducts and gui people working at middle and low level to follow ethical behaviour. (2) Publication of a "Code" : Generally ethical organisations define ac set of ethics for all the emplovees in the organisation. These principles are defined in written document called code. These ethics cover various areas such as health and safe in the work place, fair dealing in selling and marketing activities, etc. (3) Establishment of Compliance Mechanism: To make sure that actual decisions mati with a firm’s ethical standards, suitable mechanism should be es tablished e.g. corport ethics in training, recruitment, selection, etc. The employees of the organisation ma be free to report about the matters of unethical behaviour in the organisation. (4) Involving Employees at All Levels: While making ethical programmes and polio employees must be involved because these have to be practised by them only. Forming small groups of employees the ethical policies can be discussed by them and can examine their attitude towards these policies. (5) Measuring Results: Although it is very difficult to measure the ethical results but it m be verified and andited that how far work is being carried on according to ethi standards. From time to time the top level must meet the employees to set the futu plan of action. CORPORATE ETHICS (1) Value System: Business ethics is concerned with morality in