CODE OF CONDUCT OR ETHICS FOR A MANAGER OR CEO

• Integrity – being morally upright, difference between professional and mercenary

• Impartiality- fair treatment to issues, unprejudiced manner• Responsive to public interest- very important• Accountability- responsibility for all actions, accountable to stakeholders• Honesty – no cheating, stealing, free from untruthfulness• Transparency- being frank, their actions should be understood to all.

ROLE OF THE CHIEF EXECUTIVE OFFICER OF A COMPANY

1. The Chief Executive Officer shall, at all times, conduct himself or herself in an honest and ethical manner, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships.

2. The Chief Executive Officer is responsible for full, fair, accurate, timely and understandable disclosure in the public, including both written and oral disclosures, statements and presentations.

3. It shall be the responsibility of the Chief Executive Officer to promptly bring to the attention of the Company’s Board or Audit Committee any material information of which he or she may become aware

4. The Chief Executive Officer shall not, directly or indirectly, take any action to coerce, manipulate, mislead or fraudulently influence any independent, public or certified public accountant engaged in the performance of any audit or review of the financial statements of the Company:

5. The Chief Executive Officer will bring to notice significant deficiencies or control weaknesses likely to adversely affect the Company’s ability to record, process, summarize and report financial information.

6. The Chief Executive Officer shall promptly bring to the attention of the Company’s appropriate authority any information he or she may have concerning any violations of this Code of Ethics.

7. The Chief Executive Officer shall bring to notice any criminal misconduct to the appropriate legal authorities for prosecution.

Ethical Problems faced by managers/ CEO’s

• Ethical problems in business represents a direct conflict between the economic performance of an organization and social obligations.

• Hence the manager is put in a dilemma of choices. He has to :

1. Protect the loyal employees

2. Aim at organizational goals

3. Maintain the competitiveness of the organization

4. Bring efficiency in production

5. Improve the financial performance of the employees

The performance of the organization depends on the company’s vision statement and CEO of the company. But the performance of the manager depends on how well he manages his dilemmas. In this context 7 failures of managers/CEO’s on ethical issues have been identified:

1. Blindness: He does not see the problems around him. This may be due to ignorance, lack of analytical ability, deliberately seeing the other way.

2. Muteness: He does not talk ethics/ he simply speaks but does not follow.

3. Inconsistent: He does not follow uniformity

4. Paralytic: he is unable to take decisions because of fear

5. Hypocrisy: He does not stick to values. He delegates his responsibilities to others.

6. Schizophrenia: (Psychotic disorder characterized by distortion of reality) He has different set of values for different situations.

7. Complacency: He thinks that he can do no wrong. He is satisfied with himself

Impact of CEO on business culture

1. Manipulative: Policies are short term and amoral. Means are justified by their end results

2. Bureaucratic: Rule book is followed, human side is totally ignored.

3. Professional: corporate culture is followed, organization is lead by consensus decision

4. Effective: Promotion of leadership skills and self actualization in members. Moral decisions are taken.