Good Governance and Ethics Module 17 PDF

GOOD GOVERNANCE AND ETHICS MODULE 17 Transparency means making sure everyone is aware of what is going on throughout the Introduction organization at all times. Governan...

GOOD GOVERNANCE AND ETHICS MODULE 17 Transparency means making sure everyone is aware of what is going on throughout the Introduction organization at all times. Governance describe the overall Records and processes are transparent and management approach through which available to the shareholders and senior executives direct and control the stakeholders in the practice of good entire organization. Using a combination of governance. management information and hierarchical management control structures. 3) Responsiveness - is a requirement of good governance. It is simply means that It is typically involves goodhearted people organizations and their processes need to who bring their ideas, experiences and be planned in a manner that serves the best preferences and other human strengths and interests of all stakeholders within a shortcomings to the policy-making. practical and realistic period of time. It is the combination of two inseparable What is good governance? elements which are value and speed. Good governance is doing good business. Value is any information in the form of An ideal concept which is difficult to achieve questions, data, insights, research, context in its totality. and case studies that a company can offer and that allows its buyer in moving closer to It is achieved through continuous discussion making a decision so that all of the considerations involved in assuring that stakeholder interests are Speed is the time it takes to give the addressed and reflected in policy initiatives. demanded information to a customer. Good governance in its generic 4) Consensus oriented - Good approach is the efficient, transparent and governance requires knowing the broad equitable delivery of goods and services as consensus about the best interest of the entire stakeholder group and how this can well as the policy- making by means of be achieved in a particular way. exercising authority. Making decision through consensus manner It is a normative principle that offers well- allows a group to produce a solution greater managed and well-allocated resources, to than anvone member could reach alone. provide the needs to the collective problems of people. 5) Equity and Inclusiveness - is based on the idea that all members of an organization or society must feel the sense of Basic elements of Good Governance: belongingness and must not have the impression of being excluded from the 1) Rule of law - is the protection of human typical group. rights and civil liberties particularly those of minorities by the independent, unbiased and Inclusivity means individuals are expected principled law enforcement agencies. to be treated with respect, dignity, collegiality and kindness. In the corporate world, members of the Employees feel being included when board should be fair and impartial in their they experienced both: collaborations and in their decision-making in practice of the rule of law. a) A sense of uniqueness that they are acknowledged and appreciated for their specific attributes and contributions. 2) Transparency -Good governance requires transparency of the b) A sense of belonging that they are decision-making process to make certain received and treasured as member of their that information is easily and freely workgroups and among their co-workers. obtainable to those who will be affected by such decisions as well as the outcomes Employees experience a sense of resulting by the decisions taken. exclusion when they feel:  Ethics is about directing human conduct a) Degraded, dismissed or discounted for using the standards of right and wrong that the exceptional qualities they bring to the tells people what must be done based on company. rights, obligations, benefits to society, fairness or specific virtues. b) Treated like outsiders because of their differences such gender, race/ethnicity, The primary objective of ethics is to ensure nationality, age, religion, sexual orientation, good governance especially in various job role or formal position of power. countries where there is a spread of democracy. 6) Effectiveness and Efficiency - is vital in good governance. From lowest ones to Values are an individual's judgment or top management including the BOD must standard of behavior. They are another be responsible in conducting their duties individual factor that affects ethical behavior. ertectively and efficiently. Morals are another individual characteristic 7) Accountability - is a key requisite of that can affect an individual's ethics. Morals good governance. are the rules people develop as a result of cultural norms and values and are Institutions such as government agencies, traditionally, what employees learn from civil society and the private sector ought to their childhood, culture, education, religion be accountable to one another as well as to and others. They are usually described as the public and to their institutional good or bad behavior. stakeholders, who is accountable for whatever decisions or actions should be Individuals Influences on Ethical documented in policy statements. Behavior Several individual and situational factors An organization is accountable to those who that may affect a person's ethical behavior will be affected by its decisions or actions at work. Individual factors affecting ethics whether they are internal or external to an organization. Ethics defines bad behavior from good. It is formed starting from early childhood and Ex: BOD accountability extends to the continue until a person becomes an adult. groups and individuals such as the shareholders, stakeholders, vendors, In the workplace, ethics works well and in employees and the general public who may consistency with the manner the business be affected by their decisions and actions. world sees morality and values. 8) Participation in good governance - Individual factors that determine the requires equal participation by all groups ethical standards of a person consist of: with everyone having a role in the process of decision-making, either directly or 1) Stages of moral development is the through legitimate representatives. process wherein are able to develop their right attitudes and behaviors on how to treat ______________ other people in the society founded on social and culture norms, rules and laws. In reality, the development of morality differ MODULE 18 in every individual and culture. Introduction: 2) Personal values and morals Ethical standards of people are influenced Governance is vital on how organizations also by their individual values and morals. relate to each other and its stakeholders. With a lot of changes in managerial settings, Locus of control is an important variable that governance requires a highly competent, affects ethical behavior. well- informed and concerned administration. A person with an internal locus of control is confident that he controls all the events in Good governance cannot be successful in his life while one with an external locus of the absence of ethics and moral values. control has the belief that either tate or luck This topic will discuss the importance of or could be other people affects his life. ethics, values and moral in governance as well as the of Ethics. 3) Family influences Everything starts from the family. When Ethics, Values and Moral in Governance family members observe high ethical standard, children are more likely to develop the same. If they have unethical behaviors, most likely they would develop low ethical A) Issue-related is the importance of the standards. decision to the decision maker. 4) Peer influences Moral intensity is facing with conflicting Peers are those coworkers who are always ethical demands or differing ethical values around during the conduct of operations in in very difficult situations. the workplace. Sometimes an individual's decisions in life are influenced by the It is the amount that people observe an behaviors and attitudes of peers. issue as an ethical one. 5) Life experiences The higher the intensity, the more likely it is Life experiences of people help them that the decision maker will make an ethical evaluate whether their behaviors and rather than an unethical decision. attitudes are ethically correct, incorrect or acceptable. These experiences in life also The urgency of the problem being faced, the serve as guide to actions for individuals and time element needed to provide the help groups that form their principles of right and the comparative ethical sensibilities are behavior. part of the moral intensity. 6) Social norms Influences on moral intensity include: Ethical behavior could also be defined through local customs and traditions in a 1. Magnitude of consequences is the sum certain culture. What is normally acceptable of the harm or benefits that could be in one culture could be absolutely forbidden impacted as the consequence of a given another. action. Culture differs from country to another and 2. Social consensus is the degree that so are ethical practices. members of a society approve that an act is good or bad and the possibility of effect is 7) Religious beliefs the increase and decrease of moral intensity It is the belief that good deeds while on based on how likely people consider the earth are rewarded while bad deeds could results are. be penalized in the afterlife. 3) Temporal immediacy is the distance Obeying the commandments seriously is an between the time an action happens and important factor for a person to define his the start of consequences or the soonest overall ethical behavior. the results of any effect are likely to take place. 8) Upbringing also defines ethical behavior. People who were raised in a 4) Proximity refers to the emotional loving non-violent home environment tend intimacy decision-maker feels to those to show and act ethically. disturbed by the decision. Those who were raised in an abusive family 5) Concentration of effect is to whether are likely to demonstrate unethical behavior the effect is focused on a few people or may during their adult years. affect a lot of people in a small extent. 9) Laws Moral framing A frame of reference or point Many people do not break the law because of view refers to the way people look at a of the fear of being punished and given situation. The power of framing is not prosecuted. what is being said, but how it is said. In the Philippines, most laws determine how Moral muteness happens when ethical people should behave ethically. The level of decision-making suffers. It is usually takes crime done dictates the level of punishment place due to some concerns on perceived to be given. threats to: Situational influences on ethical a) Harmony is the belief that moral talk behavior would encourage conflict and retaliation. Basing ethical behavior from the situation means going against a principle and instead b) Efficiency is about the belief that moral making use of a comparable reason which talk could cloud issues which leads to a would justify it. more time- consuming decision-making. Two main situational factors that could c) Image of power and effectiveness influence ethical behavior Managers consider that their image will be hurt if they would be seen as someone idealistic or making decisions for ethical reasons. B) Context related Sometimes ethics take into consideration the particular background of an act when evaluating it whether right or wrong, rather than judging it based on absolute moral standards. This is known as context-related situation in ethical behavior. The following are the factors: 1) Reward - ethical decision-making can be affected when the basis of the reward is achievement. 2) Authority - Subordinates are just to follow instructions from their superiors. When senior managers create unethical decisions, their juniors are just expected to conform. 3) Bureaucracy - in an organization that has a bureaucratic set-up, most employees are likely to follow rules instead of reflecting about the ethics of decisions created. 4) Work roles - usually consists of a complete set of expectations of what to value, the manner of relating to other people and the approach of displaying behavior. 5) Organizational cultures - the norms of the group often define the standard or satisfactory behavior in an organization. This could mean that even an unethical behavior may be considered ethical if the group is amenable to it. 6) National context - every country practices different ways of ethics based on its culture. Culture is the basis for a decision to be considered as ethically right or not. Summary: Good governance cannot be successful in the absence of ethics and moral values. Individual factors that determine the ethical standards of a person consist of: stages of moral development, personal values and morals, influences, peer influences, life experiences, social norms, religious beliefs, upbringing and laws. Situational influences on ethical behavior like issue-related. Moral intensity is facing with conflicting ethical demands or differing ethical values in very difficult situations.