primbondh/ April 30, 2022/ business ethics

The types of real-world problems studied include business decisions’ effect on climate change, on depletion of natural resources, on employee welfare, and on the welfare of local and wider communities. This involves balancing the interests of shareholders against those of other stakeholders and balancing short term against long term interests. The module critically evaluates corporate social responsibility strategies and concepts of the firm as an organisation of stakeholders. The importance of transparency, the role of whistleblowers, and the nature of bribery are also discussed. The concepts of ethical behavior and corporate social responsibility have come to the fore in recent years in both developed and developing countries as a result of growing sense of corporate wrongdoing. The idea that business enterprises have some responsibilities to society beyond that of making profits for shareholders has been around for centuries.

This, in turn, reduces profit which might not be an issue for large companies who can afford to allocate costs. Strong business ethics are also an attractive quality, which means other investors are more likely to be interested in investing their money into the company, keeping its share price high and protecting it from takeover. It can also give businesses a competitive edge with regards to employee recruitment, particularly among the younger generation.

business ethics

But the development, implementation and maintenance of ethical practices can limit a company’s freedom to maximise profit. This is because companies can have practices in place, such as child labour and low wages, which help to maximise profit. But although these practices are legal in those countries, they’re also incredibly unethical and will obviously never be tolerated by a company following ethical practices. Business ethics are beneficial for the company by attracting customers, investors and employees).

Module Learning Outcomes

We assembled an Investigations Triage Committee, which reports to the Board and assess all allegations of wrongdoing and has an active role in investigations and monitors their progress and results. We have established a Third Party Risk Committee, chaired by our Chief Financial Officer, and made up of our CFO, our two COOs, and the Group General Counsel. This Committee has oversight of our third-party risk profile, ensures Petrofac only engages with approved third parties, reviews high risk engagements and evaluates the risk and proposed mitigation. Our compliance regime is championed, supported, and overseen at local, divisional and Board level, and supplemented by regular independent verification. We have a well-developed, comprehensive compliance and governance regime at Petrofac.

  • Confidential reporting is managed day-to-day by the Group Head of Internal Audit in order to facilitate independent investigations where required.
  • I can only hope that it builds a solid foundation for future research, fostering a better understanding that trust is vital to innovation and delivery of health technologies across the globe.
  • The concepts of ethical behavior and corporate social responsibility have come to the fore in recent years in both developed and developing countries as a result of growing sense of corporate wrongdoing.

For large companies, they may establish specific codes of ethics for individual departments and have one general code of ethics that everyone must abide by. We are a diverse team who recognise that through regulation and litigation, corporate power can be challenged or used to further social and environmental objectives and to promote human rights. We conduct our business in accordance with all applicable laws and regulations and in an ethically responsible manner. It sets out the key principles that we are all committed to upholding and which line management are responsible for communicating and implementing.

School Of Finance And Management

Plus, it means they can be comfortable knowing they’re not indirectly contributing to unethical practices. Whatever the industry, an ethical way of doing business can be that company’s USP . Customers feel better about parting with their money if they know the goods will have been produced ethically and responsibly. Oversight of our anti-bribery and corruption programme is provided by our Chief Ethics Officer who provides quarterly briefs of the programme status to the Chief Executive Officer and the Risk & CSR Committee. We also provide more in-depth anti-bribery training for those in higher risk roles,.

Module Will Run

Within the Code we provide guidance to ensure employees are aware of, and understand, their ethical and legal responsibilities, and cover issues relating to employees, customers, shareholders and the community. Employees are given support on a range of topics such as diversity; safety; managing information; anti-bribery and corruption; and the environment. To ensure good business ethics and social responsibility, many companies establish an ethics management program that aligns with their mission, vision, and values. A corporate ethics program is designed to teach employees the values and policies which set the behavioural standard for those who work and in and around the company. It shows that companies are putting greater attention on adopting ethics programs, adding them into a broader environmental, social, and governance framework.

This independent function reports to the Board’s Audit Committee through the Finance function. It is actively testing our policies, tracks mitigation and remediation, and organises cross-departmental calls to ensure timely reporting of any potential issues. Join us for this BEN meeting where Antonia Simpson and Anne-Violaine Monnie-Agazzi will share experiences from their own companies and lead a discussion on best practices we might all seek to adopt. Our corporate governance initiatives strive to ensure the highest levels of independence, disclosure and transparency. Tutorials will use planned exercises, debates & case‑studies to deepen understanding of the main ethical concepts & their application. As the world globalises and resources deplete, these issues have become more complex.

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