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Corporate Governance & Business Ethics

Here are the key considerations and steps in addressing this ethical dilemma: 1. The company's code of conduct prohibits accepting gifts from suppliers to avoid any real or perceived conflict of interest or quid pro quo expectations. 2. While the gift giver is a long-time friend, they are also a major supplier to your company, so the gift could undermine the integrity and objectivity of business decisions. 3. Returning the gift with a polite explanation of the company policy maintains high ethical standards and avoids any issues down the line. It also preserves the personal friendship separate from the professional relationship. 4. Potential consequences of keeping the gift could include disciplinary action if discovered, damage to the company's reputation for integrity, or

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Jhilik Pradhan
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41 views

Corporate Governance & Business Ethics

Here are the key considerations and steps in addressing this ethical dilemma: 1. The company's code of conduct prohibits accepting gifts from suppliers to avoid any real or perceived conflict of interest or quid pro quo expectations. 2. While the gift giver is a long-time friend, they are also a major supplier to your company, so the gift could undermine the integrity and objectivity of business decisions. 3. Returning the gift with a polite explanation of the company policy maintains high ethical standards and avoids any issues down the line. It also preserves the personal friendship separate from the professional relationship. 4. Potential consequences of keeping the gift could include disciplinary action if discovered, damage to the company's reputation for integrity, or

Uploaded by

Jhilik Pradhan
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CORPORATE GOVERNANCE & BUSINESS

ETHICS
Understanding Ethics (6)
Deciding what is the Right Thing To Do ?
• Ethics is nothing but the basic concepts and fundamental
principles of “RIGHT” human conduct. It is knowing what is
the right thing to do when faced with a dilemma or temptation.
• When the issue involves “Right vs Wrong” you have layers of
rules, guidelines, laws, to guide action (cases of responding to
temptation)
• Far more significant when two core values run into conflict- and
now ethics becomes about “Right vs Right”-- when you are
caught between two conflicting right things and can’t do both
together
• Or, when decisions have to be made in the grey zone – between
good & bad, right & wrong – when nothing is clear
• Views on these will determine your code of personal ethics
Right choices - What makes them difficult?
1. Most common ethical problems involve gray areas—activities that are on
the fringes of what is right and wrong. Sometimes even the recognition
that an ethical issue exists is not clear.
2. People vary in their capacity for moral judgment—in their ability to
recognize moral issues, and in the importance they place on differing
values.
3. People tend to rationalize, suppress or re-interpret information that casts
doubt on already held beliefs or actions.
4. The context plays a major role in the decision making process.
5. Those in leadership positions often have a high degree of confidence in
their own judgment. This can readily lead to arrogance, over-optimism,
and an increased commitment to choices that turn out to be wrong.

Dilemma situations invariably may involve dirtying your hands –


attempt should be to see how this can be minimized.
Business Ethics …various definitions
• Ability of businesses to differentiate between right and wrong, to
do the right thing.
• Critical examination of how people & institutions should behave in
the world of commerce.
• Set of corporate values and principles by which businesses
function.
• Some boundaries set by law, but many areas where businesses have
to make their own judgments. The manner in which they make
these judgments.
Dilemmas may also arise when ‘personal ethics’ or personal values and
business ethics conflict.
In the end, business ethics is only the ethics of individual business
men and women
Ethical Decision Making Tree.

Yes Is the action Do it


ethical? Yes

Does it maximize No
Yes shareholder value? Don’t do it

No
Is the proposed Don’t do it
action legal? No

If you don’t take


action – would it
Do it
No Don’t do it be wrong?

Yes
Case : Personal relationships & Co policy
You have recently joined a Company, as Head of Purchase, which
has a Code of Conduct that clearly specifies that no gifts are to be
accepted from any suppliers, clients, customers etc.
One of your very old friend also happens to be a major supplier of
some components to this Company.
During Diwali, as per past practice and custom, he sends a basket of
expensive electronic gadgets and assorted foodstuffs to your home,
with a card that reads – “With best wishes on this festive occasion;
Hope you and the family enjoy the goodies”
What would you do? Reasoning?
What can be the possible consequences of your decision?

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