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ETHICS VOCABULARY
Ethics
Values-based conduct Discretionary decisions grounded in values
Values
Standards/norms for good, right and fair conduct Examples: respect, integrity, responsibility, accountability, fairness
Compliance
Rule-based conduct (following laws, regulations, rules) Ethics codified
Ethical dilemma
Values clash
Ethical reasoning
Using values-based reasoning to solve ethical dilemmas
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Religion
Animals and natural environment
Personal relations
Education
Organisations
Science
ETHICS
Sport
Politics Art
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QUESTION 2
For what is the board responsible?
All stakeholders
Stakeholder (vs shareholder) model of corporate governance
Governance of ethics
A companys ethics performance needs to be actively governed and managed By means of a ethics programme
Principle 1.1: The board should provide effective leadership based on an ethical foundation.
ETHICAL LEADERSHIP
Ethics of governance
Corporate governance requires that the company is run ethically through effective ethical leadership
Strategic direction Board sets tone at the top Control Board delegates operational aspects of ethics management
License to operate
ETHICAL LEADERSHIP
Ethical leaders
Set the tone at the top Make ethics explicit Legitimise ethics discourse Are ethical role models Encourage ethical conduct in others Hold others accountable for the ethics of their conduct
2. Accountability
Board able to justify its decisions
3. Fairness
Board considers interests of all stakeholders fairly 4. Transparency Board discloses information in manner that allows for meaningful analysis of the companys actions
Devotes serious attention to affairs of company; acquires all relevant information needed for effective control and direction
3. Competence
Courage to take risks associated with directing a successful sustainable enterprise and to act with integrity
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Principle 1.2: The board should ensure that the company is and is seen to be a responsible corporate citizen.
Principle 1.3 The board should ensure that the companys ethics is managed effectively.
Proactive: Building
Trust Reputation
Defensive: Preventing
Fraud, corruption, theft Cartels, insider trading Conflicts of interest
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ETHICS IN ORGANISATIONS A Ethics is not an optional add-on to STATEMENT normal business, nor it is a soft issue.
All business strategies and operations have an ethical dimension that we cannot escape as we cannot escape our own shadow. Ethics holds enormous risks for companies, but more importantly creates reputational and competitive opportunities.
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