STEN 1000 Chapter Notes - Chapter 5: Institute For Operations Research And The Management Sciences, Whistleblower, Financial Statement
20 Jun 2018
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CHAPTER 5 – ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Ethics in Management
Ponzi scheme – a type of investment fraud that involves the payment of purported returns to
existing investors from funds contributed by new investors
What is ethics? [
Analysed at 2 levels – the individuals and the culture of the organization within which
individuals work.
1. Ethics and the individual:
- Ethics – a reflection of the moral principles or beliefs about what an individual views as
being right or wrong
- The challenge of ethics is that it is very personal - hard to assess the ethical boundaries
within which an individual will operate
- Influences to one’s ethical behaviour – individual motivations, cultural and environmental
upbringing, personal pressure, lack of information or ignorance
- For some ethics is based solely on legality (if it is legal, it is ethical), or on fairness (if I am
in an unfair situation I can act unethically), or is because of misinterpretation of what
society values
- Dilemma: each of is has a different interpretation of what is acceptable or non-acceptable
behaviour
- In most cases it’s not the ethics themselves, but the violations … loss of trust
Formation of out ethical interpretation – 4 fundamental sources - Ethics wheel – (fig. 5.1):
1. Societal
- Societal interpretation
- Societal conditioning
- Legal and regulatory guidelines (Sarbanes-Oxley, SEC, OSC)
2. Individual
- Personal values
- Spiritual influences
- Past experiences, past environments
- Cultural influences
3. Professional
- Professional designation and
association influences
- Industry practice (GAAP, IASB,
IFCA)
4. Business Culture
- Pressure to meet company
objectives, form supervisors
- Structure of “reward” systems
- Corporate “ethics” guidelines
- Stakeholder influences
Document Summary
Chapter 5 ethics and corporate social responsibility. Ponzi scheme a type of investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Analysed at 2 levels the individuals and the culture of the organization within which individuals work: ethics and the individual: Ethics a reflection of the moral principles or beliefs about what an individual views as being right or wrong. The challenge of ethics is that it is very personal - hard to assess the ethical boundaries within which an individual will operate. Influences to one"s ethical behaviour individual motivations, cultural and environmental upbringing, personal pressure, lack of information or ignorance. For some ethics is based solely on legality (if it is legal, it is ethical), or on fairness (if i am in an unfair situation i can act unethically), or is because of misinterpretation of what society values.
