Business Ethic & Ethical

Behavior
Ethics is the analysis of right and wrong, and its
associated responsibility.
Approaches for Right & Wrong Decision:
 The Consequences

 The motivation of the parties concerned

 Guiding Principles – Treat others as you would

like to be treated
 Duties – Based on the religious code
 Key Values – The importance of human right 1
Ethical Areas
Ethics can be divided in to three
categories
 Meta Ethics

The study of what is ethical behavior

 Normative Ethics

How to arrive at practical standards of

ethical behavior
 Applied Ethics

Applying ethical ideas to specific

controversial issues
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Importance of the Business
Ethics
FOR ORGANIZATION FOR INDIVIDUAL
 Good ethics should be  Consumer & employee
seen as a driver of has evolved in the recent
profitability years
 An ethical framework is  Consumer may choose to
part of good corporate purchase ethical items
governance and suggest  Employees will not blindly
well run business
accept orders to act in a
 Investor are re assured
manner which unethical
about company approach to
risk management
 Employees will be
motivated in the knowledge
they operate in env of good
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corporate behavior
Criteria for Ethical Decision
Making
 Is it legal
 Is it contrary to our company’s adopted
code of ethics
 Is it contrary to any other legal code of
ethics like ACCA code of ethics
 Would you mind other people knowing
what you have decided – for example if it
was tomorrow news paper or you have
justify the decision of your mother
 Who is effected by the decision
 Would the decision be regarded as fair
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Codes of Ethics & Code of
Conduct
Most companies especially large
companies have approached business
ethics issue by formulating a set of
internal policy and instructing employees
to follow them. Often ethic officers
(compliance officers) are appointed to
monitor the application of the policies and
to be able to discus the ethical dilemma
with employees who approached them.
The policy can either be the broad
generalizations ( corporate ethics
statement) of contains specific detailed
rules (corporate ethics code) 5
 IFAC Code of Ethics
Fundamental Principles

Integrity
Objectivity
Confidentiality
Professional Behavior
Professional Competence & Due Care

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ACCA Code of Ethics & Conduct
Fundamental Principles

Integrity
Objectivity
Confidentiality
Professional Behavior
Professional Competence & Due Care