1. Business Ethics
Code of Ethics

2. Business Ethics
• The standards of conduct and moral values
governing actions and decisions in the work
environment.
– Social responsibility.
– Balance between what’s right and what’s profitable.
• The moral values that governs business behaviour
and restraints companies from pursuing the
interest of the shareholder at the expense of all
other considerations

3. Stakeholders
• People and groups that supply the business
with its productive resources and have a claim
on its resources
– Shareholder
– Suppliers
– Distributors
– Employer
– Employee
– Customer

5. Relations in a Business
• Employer-Employer Relations
• Employee-Employer Relations
• Company-Customer Relations
• Company-Shareholder Relations
• Company-Community/Public Interest

6. Ethical Issues
• Honesty – communication & behaviour consistent
with facts
– Disclosure of information
– Promises/commitments
– Laws and professional standards
– Representation of others like shareholders
• Unfair Competition
– Refrain from bribes and excessive gifts
– Avoid quid pro quo transaction (what for what?)
– Comply with anti-trust laws (pricing, monopolistic
practices)

7. • Just Compensation
– Respect intellectual property
– Treat employees fairly
• Respecting rights of others
– treat others with fairness and respect regardless of:
• Age, Religion, Ethnic group, Sex, Economic status
– Respect the community you operate in by paying fair
share of economic costs
– Respect others and future generations by treating the
environment well

8. Valuing of Ethical Behaviour
• Better Information
– Trust from investors
– Lower costs for audits, controls, investigations
– Better allocation of resources
– Customers will be more loyal
– Lower costs from suppliers
– Attracting and retaining better employee
• Better Competition
– Lowers cost of business economy
– Leads to a better decision making
– Improve competitive nature of a country’s economy

9. • Just compensation
– Creates a more vibrant, entrepreneurial economy
– Attracts and retains better employees
• Rights of others
– Draws upon talents of wider set of individuals
– Develops long-term respect from the community
– Maintains the environment for long term value to
all