ce lecture 1- introduction to corporate ethics

8/6/2019 CE Lecture 1- Introduction to Corporate Ethics

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Introduction to Corporate

Ethics


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Corporate Ethics Subject

Synopsis

This course looks at theories, principles and moral

reasoning of corporations practices.

Business Ethics is a normative endeavour that deals

with how managers and other employees ought to act to

certain situations whether within the organization itself

or with external public.

It impacts a better understanding and acknowledgement

of what is morally right and wrong.


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Time-table for Corporate Ethics

Lectures, May Semester, 2011

Group 1:

Mondays - 10 - 11 a.m. (Block 21 Level 2 Room 12

Tuesdays - 3 - 5 p.m. (Block 14, Level 2, Room 9)

Group 2:

Mondays - 3 - 4 p.m. (Pocket D Lecture Theatre D4)Wednesdays 12-2 p.m. (Pocket D LectureTheatre D2)


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Course Outcomes of

Corporate Ethics

1. Explain basic ethical concepts and principles that isrelevant to resolving moral issues in business.

2. Identify moral issues involved in the managing of

business in local and global context.

3. Discuss what constitutes ethical and unethical practices

in business organization and changing workplace.

4. Describe their reasoning and analytical skills to apply

ethical concepts to business decisions.


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ETHICS AND ITS

IMPORTANCE


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Learning Outcomes

At the end of this lecture, students will be able to:

1) outline the importance of ethics in life.

2) identify the universally accepted good

and bad values.

3) elaborate on PET

RONAS shared values and brandessence.


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ETHICS

We often ask ourselves some

questions: How should I live my life?

What sort of person should I strive to be?

What values are important for me in life?

What standards or principles should I live by?

Exploring these issues immerses one in the study of

right and wrong or moral reasoning.

It leads one to the study of ethics.


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What is ethics?

The standards of moral behaviour, i.e.

behaviour that is accepted by society

as right versus wrong (Nickels,2006).

Ethics begins with each of us. It is

related to our upbringing which isinfluenced by culture and religion.


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Ethics deals with individual character

and the moral values that govern and

limit ourconduct.

It investigates questions of right and

wrong, duty and obligation, and moral

responsibility.

(William H. Shaw)


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What is the difference between Morality and

Ethics? More often, morality is used interchangeably with the term ethics.

However, many scholars proposed clear differences between the two terms.

Morality is concerned with the norms, values and beliefs embedded in social

processes which define right or wrong for an individual or a community

( Shaw, 2008)

Ethics ,on the other hand are concerned with the study of morality and the

application of reason to elucidate specific rules and principles thatdetermine right or wrong for a given situation ( Crane and Matten, 2007).

These rules are called ethical theories (Crane and Matten, 2007).


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Where do moral standards come from?

According to Shaw (2008), rationally, we learn and adapt to theethics and moral principles through our :

- upbringing

- socialization (i.e. the behaviour around those around

us)

- experiences and our critical reflections on those

experiences (self reflection)

- the explicit and implicit standards of ourculture

We also learn ethics from religious teachings.All religion providesits believers with a strong composition of conduct, part of whichinvolves moral instructions, values and commitments.


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For example, the Islamic term corresponding to theconcept of ethics, though different scope and nature isilm al-akhlaq.

Al-Akhlaq is derived from the root word khuluq, whichmeans to create, to shape and to give form.

Accordingly, ilm al- Akhlaq, as a branch of knowledgeis a science which deals with the ways to maintain

virtues at their optimum level, i.e. to avoid wrongdoingandto do what is rightanddesirable ( McDonough,1984)


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Universally Accepted Basic Moral ValuesUniversally Accepted Basic Moral Values

Good valuesGood values

Integrity HonestyIntegrity Honesty

Respect for human life CourageRespect for human life Courage

Self controlSelf control

Bad valuesBad values

CheatingCheatingCowardiceCowardice

CrueltyCruelty


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Virtue Standards and definitions.Virtue Standards and definitions.

AbilityAbility Being dependable and competentBeing dependable and competent

AcceptanceAcceptance -- Making the best of a bad situationMaking the best of a bad situation

AmiabilityAmiability-- Fostering agreeable social contextsFostering agreeable social contexts

ArticulatenessArticulateness Ability to make and defend ones caseAbility to make and defend ones case

AttentivenessAttentiveness-- Listening and understandingListening and understanding

AutonomyAutonomy Having a personal identityHaving a personal identity

CaringCaring Worrying about the wellWorrying about the well--being of othersbeing of others

CharismaCharisma-- Inspiring othersInspiring others

CompassionCompassion-- SympatheticSympathetic

Cool headednessCool headedness -- Retaining control and reasonableness in heatedRetaining control and reasonableness in heated

situationssituations CourageCourage-- Doing the right thing despite the costDoing the right thing despite the cost

DeterminationDetermination Seeing a task through to completionSeeing a task through to completion

FairnessFairness-- Giving others their due, creating harmonyGiving others their due, creating harmony


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Virtue Standards and definitions.. cont.Virtue Standards and definitions.. cont.

GenerosityGenerosity-- Sharing, enhancing others wellSharing, enhancing others well--beingbeing

GGraciousnessraciousness-- Establishing a congenial environmentEstablishing a congenial environment

GratitudeGratitude Giving proper creditGiving proper credit

HeroismHeroism-- Doing the right thing despite the consequencesDoing the right thing despite the consequences

HonestyHonesty-- Telling the truth, not lyingTelling the truth, not lying

HumilityHumility Giving proper creditGiving proper credit

HumourHumour-- Bringing relief, making the world betterBringing relief, making the world better

IndependenceIndependence-- getting things done despite bureaucracygetting things done despite bureaucracy

IntegrityIntegrity-- Being a model of trustworthinessBeing a model of trustworthiness JusticeJustice treating others fairlytreating others fairly

LoyaltyLoyalty Working for the well being of an organizationWorking for the well being of an organization

PridePride-- Being admired by othersBeing admired by others

PrudencePrudence-- Minimizing company and personal lossesMinimizing company and personal losses

ResponsibilityResponsibility-- Doing what it takes to do the right thingDoing what it takes to do the right thing

Shame (capable of)Shame (capable of) Regaining acceptance after wrong behaviourRegaining acceptance after wrong behaviour

TrustTrust DependableDependable

SpiritSpirit AppreciatingAppreciating a larger picture in situationsa larger picture in situations SaintlinessSaintliness-- Approaching the ideal in behaviourApproaching the ideal in behaviour

ToughnessToughness-- Maintaining ones positionMaintaining ones position

TrustworthinessTrustworthiness-- Fulfilling ones responsibilitiesFulfilling ones responsibilities

WittinessWittiness-- Lightening the conversation when warrantedLightening the conversation when warranted

ZealZeal Getting the job done right; enthusiasmGetting the job done right; enthusiasm

Reference : Jennings, Marianne M, page 8)Reference : Jennings, Marianne M, page 8)


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What is Integrity?What is Integrity?

Being upright and honest.Being upright and honest.

Integrity relates to honesty and goodness, wholeness and unityIntegrity relates to honesty and goodness, wholeness and unity

(Oxford(OxfordDictionary)Dictionary)

A person of integrity upholds ethical principles.A person of integrity upholds ethical principles.

Dr.Dr. DanialDanial Zainal Abidin, in his public lecture to UTP students inZainal Abidin, in his public lecture to UTP students inJuly,2008 saidJuly,2008 said Integrity in Islam isIntegrity in Islam is TaqwaTaqwa..

TaqwaTaqwa iis a comprehensive word found in the Quran that carries thes a comprehensive word found in the Quran that carries themeaning of fear (God consciousness), respect, and reverence for God.meaning of fear (God consciousness), respect, and reverence for God.

LiguisticallyLiguistically,, TTaqwaaqwa means protection or shield from what is harmful.means protection or shield from what is harmful.

An individual withAn individual with TaqwaTaqwa willwill sincerely obey the rules of Allah and besincerely obey the rules of Allah and begrateful to Him.grateful to Him.


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Integrity (continue.)Integrity (continue.)

A person of integrity will consistently consider his dignity, image andA person of integrity will consistently consider his dignity, image and

reputation before undertaking an action and always strives to do good deeds.reputation before undertaking an action and always strives to do good deeds.

DonaldDonald ZaudererZauderer listed thirteen (13) specificlisted thirteen (13) specific behavioursbehaviours that can help identifythat can help identify

the level of integrity in individual actions (the level of integrity in individual actions (StanwickStanwick andand StanwickStanwick, 2009)., 2009).

-- possess humilitypossess humility

-- maintain the ability to be concerned about the greater goodmaintain the ability to be concerned about the greater good

-- be truthfulbe truthful

-- fulfill commitmentsfulfill commitments

-- strive for fairnessstrive for fairness

-- take responsibilitytake responsibility

-- have respect for individualhave respect for individual-- celebrate the good fortune of otherscelebrate the good fortune of others

-- develop othersdevelop others

-- reproach unjust actsreproach unjust acts

-- be forgivingbe forgiving

-- extend self to othersextend self to others


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What is Self Control?What is Self Control?

The ability to control human behaviour orThe ability to control human behaviour or

desires through the exertion of will.desires through the exertion of will.

Ones ability to remain calm and not show hisOnes ability to remain calm and not show his

emotions by being impulsive, angry or overemotions by being impulsive, angry or over--

reactive when faced with a conflict, crisis orreactive when faced with a conflict, crisis or

unfavourableunfavourable situation.situation. A self controlled person is normally emotionallyA self controlled person is normally emotionally

stable and patient when handling a problem.stable and patient when handling a problem.


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What is Courage?What is Courage?

It is doing the right thing despite the cost. It is the ability to faceIt is doing the right thing despite the cost. It is the ability to facedanger, pain etc without showing fear.danger, pain etc without showing fear.

According to Aristotle, it is the virtue of responding to fear with aAccording to Aristotle, it is the virtue of responding to fear with areasonable amount of daring. ( Boatright, 2007)reasonable amount of daring. ( Boatright, 2007)

A courageous person is usually someone with good drive, confidentA courageous person is usually someone with good drive, confidentand possesses a high sense of achievement and motivation.and possesses a high sense of achievement and motivation.

A courageous person will also not hesitate to respond toA courageous person will also not hesitate to respond tounfavourable situations when he sees injustice happening aroundunfavourable situations when he sees injustice happening around

him.him.

He is forward looking and accepts change as part and parcel of hisHe is forward looking and accepts change as part and parcel of hislife.life.


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Code of EthicsCode of Ethics

A code is a statement of principles,A code is a statement of principles,policies or rules that guides behaviour.policies or rules that guides behaviour.

Code of Ethics is defined as a social,Code of Ethics is defined as a social,religious or civil code of behaviour andreligious or civil code of behaviour andprinciples of conduct that are consideredprinciples of conduct that are considered

correct, especially those of a particularcorrect, especially those of a particulargroup, profession or individual.group, profession or individual.

Hanks (1979:502)Hanks (1979:502)


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PETRONAS Shared Values

Loyalty

Loyalty to Nation and Corporation

Professionalism

Committed, Innovative and Proactive and Always striving forExcellence

Integrity

Honest and Upright

CohesivenessUnited in Purpose and Fellowship


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Petronas Brand Essence

Energy Receive, Energy Return,

Aspiring People Everywhere

trusted

enriching

passionateprogressive


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As students ofUTP and PETRONAS scholars who are potentialemployees of PETRONAS Group of Companies, how do demonstratethe PETRONAS Shared Values and brand essence?

- Shared Values - loyalty , professionalism, integrity,

cohesiveness

- Brand Essence - Energy Receive, Energy Return,

Aspiring People Everywhere

- trusted, enriching, passionate, progressive


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Applying ethics in the business world

Is ethics important in the business world?

Yes, it is important for business people to be ethical as being ethical inbusiness is actually no different than being ethical in private life.

Today, business managers have many reasons to be concerned withethical standards of their organizations.

The lessons learned from the collapse of Enron, Arthur Anderson, etc.The consequences of unethical behaviour and unethical businessinstitutions are too serious to be ignored. (Desjardins, page 3)

The only reservation would be that business issues are not easilyaddressed by ordinary ethical reasoning. (Boatright, page 5)

How can ethics be integrated within business?

Which ethics should guide business decisions?

(Desjardins, page 3)


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Business and Organizational Ethics

Business Ethics is the study of what constitutes right or wrong, orgood and bad, human conduct in a business context.

The word business in our context means an organization whoseobjective is to provide goods and services for profit.

Businesspeople are those who participate in planning, organizing ordirecting the work of business.

One distinguishing feature of business is its ECONOMIC character.In the world of business, we interact with each other not as family

members of friends but as buyers and sellers, employers andemployees, etc.

In the study ofCorporate/Business Ethics, however, we will take abroader view of dwelling on issues that arise anywhere thatemployees and employers come together. For e.g. discrimination,

whistle-blowing, unjust dismissal, health and safety hazards, etc.

ce lecture 1- introduction to corporate ethics

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