Code of Ethics Week 8

Code of Ethics

• A code of ethics is a set of principles or guidelines outlining acceptable behaviors and practices within a profession, organization, or group.
• Key principles include:
  • Respectful behavior: treating others with courtesy, respect, and professionalism, and avoiding behavior that could be perceived as discriminatory, harassing, or offensive.
  • Integrity: acting honestly, ethically, and transparently in all dealings, and avoiding conflicts of interest or situations that could compromise one's integrity.
  • Confidentiality: respecting privacy and confidentiality of information, especially when dealing with sensitive or personal data.
  • Compliance with laws and regulations: adhering to all applicable laws, regulations, and organizational policies, and reporting any violations or potential violations promptly.
  • Professional competence: commitment to maintaining and enhancing professional knowledge and skills, ensuring that work is performed competently and in accordance with best practices.
  • Impartiality and objectivity: avoiding bias or actively engaging with stakeholders, considering their perspectives, and integrating their concerns into decision-making processes.

Corporate Governance

• Approaches to corporate governance include:
  • Board-centric approach: strengthening board effectiveness, independence, and accountability.
  • Ethics and values-based approach: emphasizing integrity, honesty, and ethical behavior as foundational elements of corporate governance.
  • Compliance-oriented approach: prioritizing compliance with legal and regulatory requirements as the primary objective of corporate governance.
  • Risk-based approach: recognizing the importance of risk management in governance, focusing on identifying, assessing, and managing risks that could impact the organization's performance, reputation, or viability.
  • Principles-based approach: establishing broad principles and guidelines for governance rather than detailed rules.
  • Rules-based approach: relying on specific regulations, laws, and codes of conduct to govern corporate behavior.
  • Integrated reporting approach: enhancing transparency and accountability by integrating financial and non-financial information into corporate reporting.
  • Continuous improvement approach: acknowledging that corporate governance is an ongoing process, emphasizing the importance of continuous learning, adaptation, and improvement.

Stakeholder Theory

• Key principles of stakeholder theory include:
  • Broad definition of stakeholders: any individuals or groups who can affect or be affected by the organization's actions.
  • Stakeholder interests and needs: recognizing that different stakeholders have diverse interests, needs, and expectations from the organization.

Stewardship Theory

• Stewardship theory suggests that managers are motivated by:
  • Intrinsic motivation: factors such as pride in their work, a sense of responsibility, and a desire to contribute to the organization's success.
  • Alignment of interests: managers acting in the best interests of shareholders and the organization as a whole, rather than solely in their own self-interest.

Learn about the principles and guidelines of a code of ethics, including respectful behavior and integrity, in a professional setting.