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Lecture VI

Ethics & Accountability.

Ammar Latifammar@iqraisb.edu.pk

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Lecture VI ~ * What is (self) accountability, transparency in terms of personal & professional ethics. (cornerstone), new buzzword sustainability.* Corporate codes of conducthttp://www.corpgov.net/forums/commentary/entine1.html* Caselet – above link* Methods of diminishing unethical behaviour in a corporation (public pressure groups, codes, committees etc.)

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Lecture VI ~ Accountability.

* What is accountability in terms of an ethical viewpoint?* Personal accountability?* Professional accountability?* Corporate accountability?

– Ideas?* Links with >

– Transparency?– Sustainability?

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Lecture VI ~ Discussion. * Discussions on definitions:

– Accountability.• Obligation of an individual, firm, or

institution to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner. It also includes the responsibility for money or other entrusted property.

– Transparency.• Corporate Transparency is a term that

reflects the idea that the more information disclosed about organizational activities

in a more timely fashion to a wider public the better it is.

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Lecture VI ~ Discussion.

– Sustainability.• Refers to the long term maintenance of systems according to environmental, economic & social considerations.

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Lecture VI ~ * Taking a closer look at global activities, one can easily identify ____________ as the dominant actors on the global stage.* ____ own the mass media which determines much of our information and entertainment intake.* They supply global products, they pay people’s salaries, and they pay (directly or indirectly) much of the taxes that keep governments running. * Furthermore, one could argue that ____ are economically more powerful than many governments.

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Lecture VI ~

* For example, the GDP of Denmark is about the same as the turnover of General Motors. However, whereas the Danish government has to be accountable to the Danish people and must face elections on a regular basis, the managers of General Motors are formally accountable only to the relatively small group of people who own shares inthe company.

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Lecture VI ~

* The communities in the USA, Brazil, or Germany that depend directly on General Motors’ investment decisions however have next to no influence on the company and, unlike a regional or national gov't,General Motors at least in principle is not accountable to these constituencies.

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Lecture VI ~ * What does all this mean in practice?

– As economic activities get deterritorialised it is increasingly difficult for gov'ts to control them.

* Calls are getting louder for corporate accountability.

– Anti globalisation protests. – Public opinion.– Pressure groups.

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Lecture VI ~ The impact of globalisation on different

stakeholder groups.

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Lecture VI ~ Corporate Sustainiability.

* Rio Earth Summit '92 the general mood is agreement on the concept of sustainability.* Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

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Lecture VI ~ Three components of sustainability.

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Lecture VI ~ * The triple bottom line.

– Economic line.– Environmental line.– Social line.

* Considers more than the average bottom line.

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Lecture VI ~ Sustainiability statements.

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Lecture VI ~ Caselet. * Caselet: Corporate Codes of Conduct.* Discussion on the article presented.* Marks given are based on contribution to class.

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Lecture VI ~ Preventing Unethicality.

* Two schools of thought:– Self-censuring.– Externalised censuring.

* Is it better to trust to people & to allow them to police their own actions, or* or is it better to leave that to an outside authority?* Which is more ethical? Discuss.

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Lecture VI ~ title.... * Ethics Management Programs are an example of striving to allow people to be able to look at themselves and judge their own actions in an ethical light.* Abuses of authority?* Ethics tools to prevent breaches of an ethics code.

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Lecture VI ~ Ethics Management Programs.

* Organizations can manage ethics in their workplaces by establishing an ethics management program.* "Typically, ethics programs convey corporate values, often using codes and policies to guide decisions and behavior, and can include extensive training and evaluating, depending on the organization. They provide guidance in ethical dilemmas." * Rarely are two programs alike

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Lecture VI ~

* There are numerous benefits in formally managing ethics as a program, rather than as a one-shot effort when it appears to be needed. Ethics programs:

· Establish organizational roles to manage ethics· Schedule ongoing assessment of ethics

requirements· Establish required operating values and

behaviors· Align organizational behaviors with operating

values

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Lecture VI ~

· Develop awareness and sensitivity to ethical issues

· Integrate ethical guidelines to decision making· Structure mechanisms to resolving ethical

dilemmas· Facilitate ongoing evaluation and updates to

the program· Help convince employees that attention to

ethics is not just a knee-jerk reaction done to get out of trouble or improve public image.

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Lecture VI ~ Guidelines for Ethics management in the

workplace. * The organisation's chief executive must fully support the program.* Consider establishing an ethics committee at board level.* Consider establishing an ethics management committee.* Consider appointing an ethics officer.* One person must ultimately be responsible for the entire ethics program.

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Lecture VI ~ Ethics Tools.

* Code of Ethics.* Codes of Conduct.* Policies.* Procedures.* Ethical dilemma resolution.* Training.* Carrot or the stick?

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Lecture VI ~ * Impromptu 5 minute presentation topics:

– Computing & Technology,– Medical,– Environmental,– Developmental,– Academic,– Sport,– Political (local & int'nl).– Advertising.