BUSINESS ETHICS

AND GOOD
GOVERNANCE

15
Modul ke:

CORPORATE SOCIAL RESPONSIBILITY

Fakultas
Ekonomi dan Dr. Irfan Noviandy Aulia, S.E.,S.I.Kom., M.M.,CHRP
Bisnis
Program Studi
Magister
Manajemen
 FUNDAMENTAL

. Should ethics officers guarantee confidentially to those who report

wrongdoing and should they violate that confidence to protect the firm
from prosecution?

What facts would you want to know before making this

decision?
 CULTURE

Distribute a code of
Potential Answers conduct

Core

Communicate
responsibilities in Email all employees
annual / quarterly regularly
meeting
 STRUCTURE

Compliance and Managers within

ethics officer functional

Goals

Report and audit Guideline

comitte
 POLICIES

Practise

Expectations for
Law/Regulations behavior

Opportunity
All Risk
COMMUNICATION AND TRAINING

Annual meeting for

employees

Annual report for

shareholders
ISSUES MANAGEMENT

Internal/Eksternal

Critical Issues
Web based format

Standards

Contribution Email program

Designed Person
 DETAIL

Consistent process for

issues withina
Consistent process for particular domain
all issues that can be (employment,
fully explained and finansial,
demonstrated environmental etc)
but not for all relevant
domains
 EVALUATION

Perform periodic Retain outside

Perform annual
benchamking with consultans to
internal audit
industry peers perfoms external

Measure and keep Ethics issues over

records of time for use in
compliance improving controls
 EVALUATION

Process has no
ongoing , day to day
Process lacks
No process component only
independence
widely spaced
periodic audits
 POTENTIAL

We use our
We use outside risk
We use our outside external
management or
counsel auditor/some
ethics consultans
other auditor
METHODOLOGY

An Who do
emerging the codes
consesus cover?

Is reporting
required or
encouraged?
 MODELS CORPORATE SOCIAL
RESPONSIBILITY
• Primary responsibility of management
maximize profit within the law ” Management
Capitalism”
• Business is embended within a web of social
relationship of mutual rights and responsible.
Business managers have responsibilities to a
range of stakeholders
• Social responsibility is integrated directly into
the mission and purpose of the corporations
( e.q. Benefit Corporations)
 ECONOMIC MODEL OF CRS
• Limits a firms social responsibility to the
minimal economic responsibility of producting
goods and services and maxmizing profits
within the law
• The view that business exists within a web of
social relationships. The stakeholder model
views business as a citizen of the society in
which it operate and like all members of society
business must conform to the normal range of
ethical duties and obligations that all citizens
face.
STAKEHOLDER THEORY

A model

Business managers
have ethical
responsibility to Responsibility its of
range of managers is to

Corporate Social
stakeholders that go stockholders
beyond narrow view
that the primary
 REFERENCE

• Hartman, Laura P., Mcdonald, Chris, Desjardins, Joseph

R.. (2015). Business ethics : decision making for personal
integrity & social responsibility (3rd ed.)
• Fernando, A. C.. Business Ethics and Corporate
Governance, Second Edition. India. Pearson. 2012.
• LoRusso,, James Dennis. Spirituality, Corporate Culture,
and American Business: The Neoliberal Ethic and the
Spirit of Global Capital (Critiquing Religion: Discourse,
Culture, Power), London. Bloomsbury. 2017
 Terima Kasih
Dr. Irfan Noviandy Aulia, S.E.,S.I.Kom., M.M.,CHRP