Good Governance &

Social Responsibility
Course/Subject Description:
This is a 3-unit business administration course that focuses on the basic
concepts, principles, frameworks and practices of good governance and
social responsibility. It analyses the business framework that guides
good governance practice and social responsibility. It also presents a
discussion of more important laws affecting business ethics
including the much needed values and moral standards that would
strengthen personal and organizational behaviour. It combines
theory with field experience aimed at inspiring young leaders to
become responsible citizens and entrepreneurs.
What is Ethics?
- Ethics can refer broadly to moral principles, one often sees it applied to
questions of correct behavior within a relatively narrow area of activity. Tends to
suggest aspects of universal fairness and the question of whether or not an action
is responsible.

- Ethics or moral philosophy is a branch of philosophy that "involves

systematizing, defending, and recommending concepts of right and wrong
behavior". The field of ethics, along with aesthetics, concerns matters of value;
these fields comprise the branch of philosophy called axiology.
What is Business Ethics?
- Business ethics is the study of appropriate business policies and practices
regarding potentially controversial subjects including corporate governance,
insider trading, bribery, discrimination, corporate social responsibility, and
fiduciary responsibilities. The law often guides business ethics, but at other
times business ethics provide a basic guideline that businesses can choose to
follow to gain public approval.
- Business ethics refers to implementing appropriate business policies and
practices with regard to arguably controversial subjects. Some issues that
come up in a discussion of ethics include corporate governance, insider
trading, bribery, discrimination, social responsibility, and fiduciary
responsibilities.
 4 Business Ethics
➔ Utilitarian Approach ➔
Deontological Approach ➔
Virtue Ethics
➔ Communitarian Ethics

Utilitarian Approach
The Utilitarian Approach assesses an
action in terms of its consequences or
outcomes, the net benefits and costs to
all stakeholders on an individual level.
It strives to achieve the greatest good
for the greatest number while creating
the least amount of harm or preventing
the greatest amount of suffering
Deontological Approach

- In moral philosophy,
deontological ethics or
deontology is the normative
ethical theory that the morality
of an action should be based on
whether that action itself is right
or wrong under a series of rules,
rather than based on the
consequences of the action.
Virtue ethics

- Virtue ethics is person

rather than action based: it
looks at the virtue or moral
character of the person carrying
out an action, rather than at
ethical duties and rules, or the
consequences of particular
actions.
Communitarian Ethics
 - Communitarianism refers to
the rejection of an “isolated self
with rights, interests, values, and
ends independent of social
context," and instead suggests
that people have duties and
responsibilities as citizens.
 12
Ethical
Principles
1. Honesty
Ethical executives are honest and truthful in all their dealings and they do not
deliberately mislead or deceive others by misrepresentations, overstatements,
partial truths, selective omissions, or any other means.

2. Integrity
Ethical executives demonstrate personal integrity and the courage of their
 convictions by doing what they think is right even when there is great pressure to
do otherwise; they are principled, honorable and upright; they will fight for their
beliefs.
3. Promise-Keeping &
Trustworthiness
Ethical executives are worthy of trust. They are candid and forthcoming in
supplying relevant information and correcting misapprehensions of fact, and they
make every reasonable effort to fulfill the letter and spirit of their promises and
commitments.

4. Loyalty
Ethical executives are worthy of trust, demonstrate fidelity and loyalty to persons
and institutions by friendship in adversity, support and devotion to duty; they do
not use or disclose information learned in confidence for personal advantage.
5. Fairness
Ethical executives and fair and just in all dealings; they do not exercise power
arbitrarily, and do not use overreaching nor indecent means to gain or maintain
any advantage nor take undue advantage of another’s mistakes or difficulties.

6. Concern for others

Ethical executives are caring, compassionate, benevolent and kind; they like the
Golden Rule, help those in need, and seek to accomplish their business
objectives in a manner that causes the least harm and the greatest positive good.
7. Respect for others
Ethical executives demonstrate respect for the human dignity, autonomy, privacy,
rights, and interests of all those who have a stake in their decisions; they are
courteous and treat all people with equal respect and dignity regardless of sex,
race or national origin.

8. Law abiding
Ethical executives abide by laws, rules and regulations relating to their business
activities.
9. Commitment to excellence
Ethical executives pursue excellence in performing their duties, are well
informed and prepared, and constantly endeavor to increase their proficiency in
all areas of responsibility.

10. Leadership
Ethical executives are conscious of the responsibilities and opportunities of their
 position of leadership and seek to be positive ethical role models by their own
conduct and by helping to create an environment in which principled reasoning
and ethical decision making are highly prized.
11. Reputation and Morale
Ethical executives seek to protect and build the company’s good reputation and
the morale of its employees by engaging in no conduct that might undermine
respect and by taking whatever actions are necessary to correct or prevent
inappropriate conduct of others.

12. Accountability
Ethical executives acknowledge and accept personal accountability for the
ethical quality of their decisions and omissions to themselves, their colleagues,
their companies, and their communities.
Why is it
considered
important?
Challenging Business Environment
The challenge of Globalisation

Globalisation is the interaction of companies and businesses on a world wide

global scale. Understanding the basic overview of the global economy as it
changes is extremely helpful for managerial and business level applications. The
main challenge faced by businesses is that businesses are faced with the challenge
of localizing products and services effectively and efficiently in a way that
minimizes the adverse cultural and environmental effects caused by this rapid
global expansion to maintain an ethical operation.
Challenging Business Environment
 The challenge of Diversity
With globalisation comes and enormous percentage of cross-cultural
relationships and domestic diversity. Globalization has created higher potential
value in approaching diverse markets and demographics. Because of this,
understanding how to manage a diverse community internally has now become a
priority for management.

Challenging Business Environment

The challenge of Ethics and Governance

Ethics is at the core of corporate governance, and management must

reflect accountability for their actions on a global community scale.
Business itself cannot be ethical: only the managers and corporate
strategists can implement ethics within the framework of the business
strategy. Corporate ethics and shareholder desires for profitability are not
always aligned, and it is the responsibility of executive management to
ensure ethics supersede profitability.

In