Business ethics lecture 2

Business Ethics


Corporate Governance


Fiduciaries:
 Persons

placed in positions of trust who use
due care and loyalty in acting on behalf of
the best interest of the organization.



Duty of Diligence:
A

duty of care to make informed and
prudent decions.



Duty of loyalty;
 All

decisions should be in the interests of the
corporation and its stakeholders.




Conflict of Interest:
 When

a person in a powerful authority
uses the position to obtain personal
gain usually at the expense of the
organization.



BoD and Officers’ compensation !




To remove the opportunity for
employees to make unethical
decions; developed formal systems
of accountability, oversight, and
control are knwn as corporate
governance.




Accountability:
How closely workplace decisions are aligned
with a firm’s stated strategic direction.
 Alco compliance with ethical and legal

considerations.




Oversight:


A system of checks and balances that limits
employees’ and managers’ opportunities to
deviate from policies and strategies and
that prevent unethical and illegal activities.




Control:
 Process

of auditing and improving
organizational decisions and actions.