Business Ethics Corporate Governance For

Pakistan

Presentation on:

Presented to:

Sir. Rao Akmal Ali akmal_rao@hotmail.com

GROUP MEMBERSName Roll No.

Ayesha Yaseen Group Leader 36

M. Akthar Farhan 02

Mubashar Ali 23

Sidra Kanwal Kiran 11

Habib Ur Rehman 17

MBE-4th Semester(Session-2013-2015)

Department of EconomicsBZU Multan

Ayesha YaseenRoll No.36

Ethics Policy

Avoidance of conflict of interest at all levels.

Honesty and integrity.

Fairness in dealing with everyone.

Acting in good faith.

Compliance with law.

Encouraging ethical reporting: whistleblowing.

Pakistani Scene

Companies are not willing to be ethical.

Those that are willing cannot afford to be ethical.

Those that can afford, are not allowed by the situation.

One has to bribe even to get one’s rights.

Rectifying The Situation

1. Principal Causes:

Company policies

Unethical industrial climate

Rampant corruption in government

2. Solution:

Bigger companies should start; others will follow.

Gradually the business climate will change.

Once business is honest; government will have to get honest.

Muhammad Akhtar FarhanRoll No: 02

How to Enforce Ethics

Law

Industrial and professional codes

Internal codes

Wanting to be ethical

Law

Words of law and spirit of law.

Law cannot create honesty.

Law cannot cover everything.

Professional Codes

Lesser force than law.

Professional associations e.g. ICAP force their

members to follow ethics, or face expulsion.

Professionals work for companies and force

companies to follow ethics.

Industrial associations also exhort their members to

be ethical.

Internal Code The most compelling reason for a company to be ethical is

its own board.

A company can become ethical only if its board is willing to

face the consequences and pay the price of honesty.

Setting up a formal policy on ethics is essential.

Ethics should be part of everything that a company does.

Doing certain things in name of ethics is not enough.

Mubashar AliRoll No: 23

What is Ethics?

Doing the right thing.

Doing it the right way.

Doing it for the right reason.

The Concept of Business Ethics

1.Planning & Leadership

Aim at doing the right thing

2.Organizing

Do it the right way

3.Control

Do it for the right reason

Evolution of Business Ethics

1.Business

Historically not known to be ethical.

Profit before any thing else.

2. Ethics

Religious influence.

Social influence.

Why Business is Being Ethical Now?

Stricter laws and regulations.

Watch dogs.

Realization that ethics is

profitable.

Sidra Kanowal KiranRoll No.11

Handling These Causes

1. All these causes can be handled by a good management

team by:

Fairness and equal treatment of all employees.

Reasonable load of work.

Reasonable targets.

Good HR practices.

Aspects of Corporate Unethical Behavior

Bribery

Coercion

Conflict of interest: company & others

Tax evasion

Insider trading

Lack of regard for the society

How to Enforce Ethics in a Company?

Decide to be ethical.

Ethical decision making as norm for all

operations.

Draw up a formal Ethics Policy and let it be part

of normal operational manuals.

HABIB-UR-REHMANROLL NO.17

ADVANTAGES OF BUSINESS ETHICS

Improve in image

Higher productivity

Access to more and cheaper capital

Helps society; society helps company

Every one is a winner

IMPACT ON EMPLOYEES

IMPACT ON EMPLOYEES

If the company is honest, employees tend to be

honest as well. This means better work

environment, better productivity, higher efficiency.

Honest companies have lesser frauds and thefts.

Ethical companies attract better quality of staff.

Ethical companies are able to retain good staff.

CHARACTERISTICS OF AN ETHICAL ORGANIZATION

Formal code of ethics.

Regular interaction with stakeholders.

Obsessively fair to all.

Managers responsible individually; do not

hide behind collective responsibility charade.

Employee see a purpose in their work.

Non-bureaucratic procedures.

ROOTS OF INDIVIDUAL UNETHICAL BEHAVIOR

Pressure of work and family life.

Poor communication between company and

employees.

Poor leadership of the company.

Heavy work load; long working hours.

Undue pressure / targets.

Politics, favoritism.

Personal traits & circumstances.