This document discusses whether listed companies should have an ethics officer. It begins by defining listed companies and noting regulations requiring them to have a code of ethics. It then provides examples of unethical behavior at Toyota and Chevron to illustrate the need for ethics oversight. The roles and responsibilities of an ethics officer are outlined, including risk assessment, policy development, training, and investigating reports of issues. Data is presented showing companies with ethics programs have a stronger reputation. In conclusion, the benefits of an ethics officer, such as building trust and integrating business objectives with compliance, outweigh the costs of hiring one and maintaining an ethics program.

1. SHOULD EVERY LISTED
COMPANY HAVE AN
ETHICS OFFICER?
Presented by:
Sairam T A
Anu Bala
John Thomas
Meenatchi S
Vignesh S

2. Listed company
 Company whose shares are traded on an official
stock exchange
 Listed companies drive the Stock Exchange.
 Clause 49 I (D) of the Listing Agreement with the
stock exchanges requires companies to institute a
code of ethics for the Board and senior
management and affirm compliance to the
same on an annual basis.
 Company officials who observe the law may
avoid stiff personal penalties, both monetary and
potential jail time.

3. What is an Ethical Issue?
A problem or situation that requires
a person or organization to choose between
alternatives that must be evaluated
as right (ethical) or wrong (unethical)

4. Example:
In 2010, Toyota ignored information about safety and
delayed investigating possible recalls. In 2009, they
learned about sticking pedals and faulty brakes;
instead of addressing the issue, they added side
airbags. In some cases, Toyota faced accusations of
hiding evidence for hundreds of cases involving death
and rollovers, putting their drivers and passengers at
risk.

5. Chevron has attempted to avoid millions of dollars'
worth of taxes plus 18 years' worth of unethical business
practices. When they dumped billions of gallons worth
of toxic waste into Ecuadorian rainforest, they were
sued and tried to deny their involvement even though
there was plenty of solid evidence.

6. Who is an Ethics officer?
 Someone who aligns the practices of a
workplace with the stated ethics and beliefs of
that workplace, holding people accountable
to ethical standards

7. Role of an Ethics officer
 Risk/cultural assessment
 Program design/update
 Develop policies and procedures
 Communication, training, and implementation
 Ongoing self-assessment, monitoring, and
reporting

8. Need of an Ethics Officer
 To provide assistance with meeting regulatory
compliance
 To improve the company's reputation and public
perception
 To provide a mechanism for reporting issues
 A quality ethics officer will be able to thoroughly
and discreetly investigate claims of unethical and
improper behavior when they are reported
 Establish an ethical corporate climate

9. Ethisphere Institute
 The Ethisphere Institute, the global leader in
defining and advancing the standards of ethical
business practices, announced the 2016 World’s
Most Ethical Companies®
. The latest list includes
131 companies representing more than 45
industries spanning 21 countries and five
continents.

10. World’s Most Ethical
Companies: 2016
Company Industry Country Rank
National Australia
Bank
Banking Australia #1
Teachers Mutual
Bank
Banking Australia #2
The Rezidor Hotel
Group
Lodging &
Hospitality
Belgium #3
Tata Steel Limited Metals,
Minerals &
Mining
India #13
Wipro Limited Information
Technology
Services
India #15

11. What should you, as an
Ethical Officer do?
You can ask yourself question such as:
 Do I dare take an outside opinion? Am I
courageous enough to hear that opinion and
face up to what that implies?
 How readily do my subordinates agree to my
positions? Do they agree all too readily?
 Is my ambition only for myself? Does it have a
larger purpose?
 Am I honestly making reasoned arguments and
reaching a conclusion or rationalizing a pre –
reached conclusion?

12. Benefits of having an Ethics Officer
 Can create a climate of integrity and excellence.
 Minimize subjective and inconsistent
management standards.
 Build public trust and enhance business
reputations.
 Can integrate a company's business objectives,
culture and compliance initiatives.
 Especially true for IT security personnel because of
their access to sensitive information as well as the
responsibility to protect it.

13. Cost incurred :
 Hiring of an ethics officer, providing salary, wages
etc.
 Developing, implementing and maintaining an
ethics compliance program within organization.
 Ethics policies need to be continually updated to
reflect changes in workplace.
Cost reduction :
 Can reduce the costs associated with fines and
lawsuits.
 Can reduce the costs that may arise due to the
mistrust between employees.
Hence, Benefit is greater than Cost in case of having
an ethical officer.

14. Thank You