Business Ethics Presentation An introductory overview of business ethics, morals and values in the workplace.
Introduction to Business Ethics Deﬁne business ethics Business ethics involves the moral principles and standards that guide behavior in the world of business. Importance of business ethics Business ethics promote public trust, long- term success, and ethical decision making. Key ethical issues Common ethical issues include bribery, insider trading, discrimination, and misleading advertising. Business ethics provides a moral compass for companies and enables trust, success and ethical decisions.
History of Business Ethics
“"The price of greatness is responsibility." - Winston Churchill” WINSTON CHURCHILL
Adam Smith Adam Smith (1723-1790) was a Scottish philosopher and political economist who is considered a founding father of modern economics. He is best known for his books 'The Theory of Moral Sentiments' and 'The Wealth of Nations', in which he laid the foundations for f ree market economics. Smith argued against mercantilism and government restrictions on trade, instead advocating for individual self-interest and f ree competition as drivers of economic prosperity. His ideas on the 'invisible hand' of the f ree market and the division of labor have been profoundly inﬂuential.
Our Ethics Team Jane Smith Director of Compliance John Doe Chief Ethics Ofﬁcer Bob Johnson Ethics Investigator
Acme Inc Acme Inc is a technology company known for its innovative products and commitment to ethical business practices. Acme's ethics program includes mandatory training for all employees, a strict code of conduct, and an anonymous hotline for reporting concerns.
Ethical Dilemmas Businessman choosing between money and ethics A businessman facing the decision to prioritize proﬁts over ethics, such as by cutting corners on safety or quality. Manager balancing employee needs with business needs A manager trying to balance doing right by employees while also meeting business targets and responsibilities. Whistleblower deciding whether to report misconduct An employee witnessing unethical or illegal activity at work and debating whether or not to report it.
Ethics Risk Management Process For top priority risks, the team develops detailed plans to prevent or minimize the risk from occurring. Develop mitigation plans Mitigation plans are executed, while continuing to monitor lower priority risks on an ongoing basis. Implement and monitor The team brainstorms and documents potential ethics risks in our business operations and relationships. Identify risks Each risk is evaluated based on likelihood of occurring and potential impact to the business and stakeholders. Assess risks The risks are ranked based on the risk assessment, with higher priority given to higher likelihood and impact. Prioritize risks
Implementing an Ethics Program Gain leadership commitment Leadership must fully support the ethics program for it to be effective. Leaders should communicate expectations and provide necessary resources. Perform ethics risk assessment Assess risks that may lead to unethical conduct and identify controls to mitigate those risks. Develop code of conduct Create a code of conduct outlining expectations for ethical behavior. Get approval from leadership and ensure employees understand it. Provide ethics training Conduct regular training for employees on ethics policies, expected behaviors, and how to handle ethical dilemmas. Enforce consistently Apply rules and discipline consistently across the organization. Make sure no one is considered exempt. Provide reporting mechanisms Implement conﬁdential reporting mechanisms for suspected misconduct without fear of retaliation. Audit and monitor Routinely audit processes and controls related to ethics. Track key metrics and incidents.
Ethics Codes Comparison A comparison of ethics code scores out of 100 92 Our Code 81 Competitor B 78 Industry Avg 85 Competitor A
The Costs of Unethical Behavior Unethical behavior like f raud, theft, and corruption can have major ﬁnancial costs for a business. One study estimated that U.S. organizations lose 5% of revenues each year to f raud, amounting to around $3.7 trillion lost annually. Employee theft alone costs U.S. businesses over $50 billion per year. Beyond direct ﬁnancial costs, unethical conduct can also lead to ruined reputations, loss of customers and partners, and expensive legal troubles.