Corporate

Ethics
Group- 03
 01
Corporate Ethics
 Definition

Corporate ethics can be defined in several

ways: conceptually, operationally, officially,
and actually…
 02
Status of corporation
 Definition

A corporation's status can refer to its standing in the state where it was incorporated,
or to the tax classification it elects with the Internal Revenue Service. Generally,
states broadly categorize businesses incorporated under their laws as active or
inactive. The status of a corporation refers to its legal standing and level of
recognition in the eyes of the law.
 Types
Some common types of corporate statuses include:

Inactive Delinquent
Active

Dissolved Non-profit
 03
Collective responsibility
 Definition

Collective responsibility is widely applied in corporations, where the entire

workforce is held responsible for failure to achieve corporate targets (for example,
profit targets), irrespective of the performance of individuals or teams which may
have achieved or overachieved within their area.

Collective responsibility refers to a situation where individual members of a group

are held responsible for the group’s actions as a whole. Once a position has been
agreed and voted on then, members must abide by that position.
.
 04
Corporate Ethical Decision
Making
 Definition

Making ethical business decisions requires discipline. It is a method for locating and
dealing with problems in a commercial setting. Of course, that happens in a lot of
other circumstances. Making ethical business decisions also cannot be reduced to
only "doing the right thing." More is involved than that.
 Step

1 Define the Problem Clearly 4 Evaluate Your Potential

Solutions

2 Do Your Research 5 Come to a Decision

3 Consider Your Options 6 Implement Your Decision

and Evaluate Its Effects
 05
PLUS Ethical Decision-
Making Process
 Model

Having a step-by-step system for making ethical decisions is key to making sure you
consider all of your options. In addition to that, be sure to use the PLUS model for
evaluating your ethical dilemmas, according to Status.
 PLUS Model

Policies and
Procedures Universal

Legal Self
 06
Ethical Extent of Access to
Corporate Information
What should be the Ethical extent of access
to corporate information?

The extent of access to corporate information that is considered ethical can vary
depending on the specific context and industry. However, in general, access to
corporate information should be limited to those who have a legitimate business
need for it, and who are authorized to access it.
 Some Ethical Principles

Need-to-know Transparency
principle principle

Confidentiality Data security

principle principle
 07
Ethical Rational of
Restructuring and Takeover
 What is Corporate Restructuring?

Corporate restructuring is the process of reorganizing a company's management,

finances, and operations to improve the efficiency and effectiveness of the company.
Changes in this area can help a company increase productivity, improve the quality
of products and services, and reduce costs.
 Restructuring Strategies to Consider

Reverse Merger

Mergers and
Acquisitions Divestiture
(M&A)
 08
Ethics and Corporate
Governance
 Corporate Governance

Corporate governance, according to Investopedia, “is the system of rules, practices,

and processes by which a firm is directed and controlled” and is usually managed by
a company’s board of directors. The four P’s, or key categories of corporate
governance, are people, process, performance, and purpose.

Corporate governance rules are important because they outline a company’s ethical
beliefs and provide a working roadmap for a company's objectives and activities. In
short, these plans affect and influence every aspect of a company’s daily operations
and management.
 What is the role of ethics in corporate
governance?
Doing so encourages positive behaviors that lead to long-term business success and
sustainability. It also helps companies gain increased trust, the intangible—but very
valuable—social and cultural currency by which companies can:

Become authorities in the space to drive business and capture market share
1

2 Garner repeat business

3 Gather support, funding, and positive public opinion

 09
Corporate Ethical Virtues
Model
 Corporate Ethical Virtues Model (CEVM)

The Corporate Ethical Virtues Model (CEVM) is a framework developed by Alejo

Jose G. Sison, a professor of ethics and corporate social responsibility, to guide
companies in developing a strong ethical culture. The model identifies seven ethical
virtues that companies should cultivate in order to promote ethical behavior and
decision-making:
 The model identifies seven ethical virtues that companies should
cultivate in order to promote Ethical Behavior And Decision-making

01 Integrity

02 Responsibility
03 Empathy
04 Respect
05 Trustworthiness
06 Citizenship
07 Courage
 There are other models of ethical virtues that have been
developed for the corporate environment. Here are a few
examples:

The Ethical Decision-

Making Model (EDM)

The Ethical Leadership The Ethical Culture

Model Model
 09
Factors That Lead to
Questionable Unethical
Practice
 Unethical Behavior
There are several factors that can contribute to questionable and unethical practices
in the corporate environment. Here are some examples:

False Communications

Collusion

Gifts and Kickbacks

Unethical Behavior

Conflict of Interest

Unethical practices in the Health

Care Sector

Insider Trading
 10
Factors that lead to
Questionable Unethical
Practice
There are several factors that can contribute to questionable and
unethical practices in the corporate environment. Here are some
examples:

Pressure to meet financial targets

Lack of oversight and accountability

Toxic company culture

Why Do Employees Make Unethical Decisions?

Pressure to Succeed

Employees Are Afraid to Speak Up

Lack of Training

There’s No Policy for Reporting

 -Team
Thank You